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WORLDS COLLIDE How a decades-old, $10 naming-rights deal led to multimillion-dollar lawsuits at the World Trade Center PAGE 16

VOL. XXXIV, NO. 14 WWW.CRAINSNEWYORK.COM CUOMO’S THE LIST PLUS: PENN LARGEST CONNECTING THE POWER LOBBYING DOTS OF NYC’S PLAY FIRMS INFLUENCERS P. 12 P. 5 P. 14

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P001_CN_20180402.indd 1 3/30/18 7:54 PM APRIL 2 - 8, 2018 CRAINSNEW YORK BUSINESS

ON THE COVER

PHOTO: BUCK ENNIS

FROM THE NEWSROOM | AARON ELSTEIN | SENIOR REPORTER Going yard

THE POLLSTERS at Marist Col- lege say that the percentage of people who call themselves base- ball fans—44%, for those scoring at home—is the lowest in 10 years. As one who considers time spent at the ballpark the best time spent, I kind of wonder what the majority of Americans are think- ing. But I get it. For starters, too many games stretch on for too long. e lords of baseball are trying to speed things up by limiting the number of times players can congregate on the pitcher’s mound to discuss strat- P. 16 egy, dinner reservations or whatever it is they talk about. But I doubt games will really speed up until major league hitters put balls in play IN THIS ISSUE more oen and stop taking so many pitches. Meanwhile, ticket costs have spiked even as the number of games UP FRONT on free television has plunged. e majority of Los Angeles fans haven’t 3 EDITORIAL been able to tune in to the Dodgers since 2013 because of a dispute Calls for more stringent rent over how much cable companies must pay to carry games—and in regulation ignore the reality turn charge customers. I’m not sure why Dodgers management thinks 4 IN CASE YOU MISSED IT turning o fans is a good business strategy, but they didn’t ask me. Obama-mandated So here’s my pitch to the majority of Americans who say they disclosures reveal how much U.S. corporations EURIPIDES PELEKANOS, don’t like baseball: ere is still no better place to forget your troubles CEO, Bareburger employ foreigners P. than the ballpark, watching an exceedingly dicult game beautifully 14 played. Pretty much everyone seated around you is in a good mood, 5 POLITICS Leaked memo offers insight FEATURES and no one is talking politics. Not only do hot dogs denitely taste into the governor’s frustration better at a ballgame, but I understand this year the Yankees are selling over the lack of Penn Station 14 CONNECTING THE DOTS a huge tater tot covered with sour cream, cheese, scallions and bacon progress The rainmakers, relationships and clients that produce the on a stick, while the Mets are oering fried-chicken sandwiches. 6 ASKED & ANSWERED 10 biggest lobbying rms I rest my case. The president of the Italian American Museum 16 WORLD TRADE WAR on growth The battle over who owns the iconic site’s name 7 HEALTH CARE The ambitious transformation 20 GOTHAM GIGS HEALTH CARE SUMMIT of One Brooklyn Health A former beer maker perks up to locally roasted coffee MAY 2 8 REAL ESTATE Investing in Title insurance bill; Sunnyside 21 SNAPS Digital Health Innovation Yard; construction worker data Photos from the city’s biggest fundraisers and charity events Crain’s will highlight cutting-edge 9 WHO OWNS THE BLOCK FOR THE RECORD trends in digital health, provide Investors rustle up projects 22 Our tally of the week’s buys, a meeting ground for investors near Prospect Park busts and breakthroughs and startups and address the 10 VIEWPOINTS challenges facing both in this Gotta love tourism; 23 PHOTO FINISH increasingly important sector of digital-currency regulation Plans to return the TWA the region’s economy. is a con Terminal at JFK to its former OLIVER Jet Age glory—for hotel guests KHARRAZ, M.D., SHERATON NEW YORK 12 THE LIST CEO, Zocdoc TIMES SQUARE New York’s largest lobbying CORRECTIONS 8 a.m. to noon rms and why the top Updated articles about Crain’s 40 Under 40 [email protected]. two traded places honorees appear on CrainsNewYork.com.

Vol. XXXIV, No. 14, April 2, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire

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2 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018

P002_CN_20180402.indd 2 3/30/18 7:25 PM APRIL 2, 2018

AGENDAA system of perverse incentives for landlords and tenants alike

llegations last month that the Kushner Cos. harassed ten- ants into vacating rent-regulated apartments in three of its Queens buildings—after ling paperwork claiming they had no such units—triggered calls for the city to better Aprotect low-rent housing and its occupants. And not for the rst time; landlords have long been accused of crossing ethical lines to raise rents. Of course rules should be enforced, but this issue requires a broader dis- cussion about whether the system of constraining rents is achieving the goal of making New York aordable—and if not, whether it ever can. Consider that for decades the city has had extensive rent regulation and yet its housing crisis never seems to end. e system’s champions say the crisis persists because regulation is not extensive enough, even though it covers more than 1 million apartments. ey argue that if we keep units from leaving regulation and add more, the housing crunch would end. who make improvements to raise rents. at, in turn, motivates landlords But it wouldn’t. Apartments renting for less than market rate will always to do unnecessary work to increase long-term pro ts. Tenant advocates be snapped up. Who wouldn’t want to live in New York City at a discount? say the rent should go back down once the work is paid o, but then land- State law continues rent regulation as long as the vacancy rate remains lords would do the bare minimum, or less. e law also says that when a low, but it’s always going to be low if one- unit’s rent gets high enough, it can be dereg- third of the city’s dwelling units are below For decades the city has had ulated—why protect tenants who can aord market rate. Everyone who can’t get an arti- more than $2,700 per month?—but only cially low rent competes for the remain- extensive rent regulation, yet its if it’s vacant. Such rules can be a motive to ing two-thirds of city dwellings, driving up housing crisis never seems to end push tenants out. It’s a recipe for strife. their cost. e system created to solve the Tenants have perverse incentives too. housing emergency actually perpetuates it. If they earn too much they can be evicted, Money drives behavior. Rent regulation removes that incentive, then so they reject raises and hide income. Empty-nesters stay in large apart- layers on more rules to prevent the inevitable consequences. It’s an end- ments, denying them to families. Rational actions, like subletting, are ren- less loop. For example: Landlords have little reason to keep properties dered illegal. It’s past time to ask whether New York, San Francisco and a in top shape when someone will pay the regulated rent regardless. So to few other cities have rent regulations because they have the most brutal keep such housing from deteriorating, the law allows property owners housing markets, or if it’s the other way around. — THE EDITORS

FINE PRINT Following revelations that Facebook’s privacy policies allowed Cambridge Analytica, a political consultancy hired by the Trump presidential campaign, to mine the personal data of 50 million members, the stock of the social media company lost nearly $50 billion in value. That is more than the combined market capitalization of CBS, Twitter and The New York Times.

BY GERALD SCHIFMAN STATS

25 WORDS OR LESS INTO THE BREACH

DATA-SECURITY BREACHES, which state businesses must report to the attorney general, are on AND THE C I the rise. The 2017 Equifax hack was particularly damaging for New Yorkers.

People are extremely 2016–2017 growth in reported breaches “ Number of breaches reported in +132% price-sensitive. If we 2017, a 24% increase from the 1,583 previous year

could raise the price TY

by 75 cents, don’t Number of New Yorkers whose nancial records were exposed last +49% you think we would 8.2M year, 16 times more than in 2016 +32% have?” +23% —Daniel Ramot, co-founder and CEO of Number of New Yorkers whose -9% Via, on a proposed state surcharge on Social Security numbers were 8.5M exposed in the Equifax breach Personal Financial pooled rides in Manhattan Driver’s license Social Security Password/ account

SOURCE: State attorney general’s of ce BLOOMBERG

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20180402.indd 3 3/30/18 7:32 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer

EDITORIAL Pay ratios help reveal how managing editor Brendan O’Connor assistant managing editors Erik Engquist, a company does business Jeanhee Kim, Robin D. Schatz copy desk chief Telisha Bryan art director Carolyn McClain ORPORATE AMERICA wasn’t happy when the photographer Buck Ennis Obama administration ruled that companies must senior reporters Joe Anuta, Aaron Elstein, disclose how much more money their chief exec- Matthew Flamm, Daniel Geiger C reporters Will Bredderman, utive makes than their median-paid employee. “ e pay Jonathan LaMantia, Caroline Lewis ratio’s only ‘benet’ will be realized by special-interest data reporter Gerald Schifman groups, the media and micro-minority shareholders, which web producer Chris Kobiella columnist Greg David CEOS’ HIGH PAY isn’t news, but pay ratios are newsworthy. will use it to shame” rms, the Center for Executive Com- contributors Tom Acitelli, Yoona Ha, pensation declared. Miriam Kreinin Souccar In recent weeks companies have started publishing the ratio in compliance with the regulation. Citigroup, for to contact the newsroom: www.crainsnewyork.com/staff example, paid its CEO 369 times more than its median-paid employee. At Johnson & Johnson it was 434 times 212.210.0100 higher and at Philip Morris International 990 times as much. e data underscore that many CEOs get paid a 685 Third Ave., New York, NY 10017-4024 lot—which everyone knew. ADVERTISING But something more revealing has emerged: Companies doing similar things have vastly dierent pay scales. www.crainsnewyork.com/advertise advertising director Irene Bar-Am, For instance, median pay at Moody’s is about $60,000 but at Standard & Poor’s it’s less than $25,000. e median 212.210.0133, [email protected] earner at JPMorgan Chase makes $78,000 while his or her counterpart earns $48,000 at Citigroup. At Verizon it’s senior account managers Lauren Black, Zita Doktor, Rob Pierce, $126,000 and at AT&T it’s $78,000. Stuart Smilowitz One explanation is companies do have leeway in counting some employees while ignoring others for the senior marketing coordinator purposes of calculating the ratio. But the real takeaway is that, in the aggregate, median pay is much lower among Charles Fontanilla, 212.210.0145 [email protected] companies that employ a lot of people outside the United States. sales coordinator Devin Arroyo, Only 35% of Citi’s workforce is in North America, with most of the rest in Latin America or Asia, while 212.210.0701, [email protected] JPMorgan is a more U.S.-centric company. It’s a similar story at S&P, where only 25% of employees work in the CUSTOM CONTENT director of custom content U.S. About 36% of Philip Morris employees are in Indonesia, a nation where the average salary is $2,400. Patty Oppenheimer, 212.210.0711, Moving jobs oshore is nothing new. But considering how much the White House talks about American workers [email protected] being harmed by international trade, news of how many foreigners U.S.-based companies employ overseas is not custom project manager Danielle Brody, [email protected] what big corporations are looking to herald right now. — AARON ELSTEIN EVENTS www.crainsnewyork.com/events director of conferences & events Making bank DATA POINT Sellable syllables Courtney Williams, 212.210.0257, Last year’s securities industry bonuses Barry Diller’s InterActiveCorp has put [email protected] ACCORDING TO THE CENSUS averaged $184,220, state Comptroller dictionary.com and thesaurus.com on manager of conferences & events omas DiNapoli reported. New York’s BUREAU, NEW YORK CITY HAS the block. IAC acquired the 23-year- Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, average private-sector salary is $74,800. THE LONGEST AVERAGE ONE-WAY old sister websites in 2008. Investment [email protected] bank Allen and Co. is handling the sale. Ramping up COMMUTE IN THE U.S., AT 34.7 AUDIENCE DEVELOPMENT group director, audience development JetBlue’s Kennedy Airport terminal Marquee event MINUTES. THE NATIONAL AVERAGE Jennifer Mosley, [email protected] expansion will be led by Vantage Air- MoviePass, the Manhattan-based sub- port Group and RXR Realty, the airline IS 26.6 MINUTES. scription ticketing service, will be REPRINTS reprint account executive Lauren Melesio, announced. e project, estimated to integrated into Landmark eatres’ 212.210.0707 cost $2 billion to $3 billion, will add up ticketing system. Benets that the to 12 large gates. e airline is talking Bigger blue startup’s subscribers will have at Land- PRODUCTION production and pre-press director with the Port Authority about when it IBM, which had been subleasing from mark’s 53 national theaters include Simone Pryce can proceed. FanDuel 9,233 square feet at 19 Union advanced screening reservations and media services manager Nicole Spell Square West, signed a deal for 27,699 seat selection. — CHRIS KOBIELLA SUBSCRIPTION CUSTOMER SERVICE Beating traf c square feet on the ninth, 10th and 11th www.crainsnewyork.com/subscribe e Transportation Department added oors there for engineering and tech- [email protected] signs at 50 intersections allowing bicy- nology sta. e asking rent had been 877.824.9379 (in the U.S. and Canada). clists to get moving when pedestrians $80 per square foot. $3.00 a copy for the print edition; or $99.95 get green lights. e pilot program, in one year, $179.95 two years, for print Brooklyn, Manhattan and Queens, is Pedaling toward prison subscriptions with digital access. designed to decrease crashes. Lawrence White was convicted of Entire contents ©copyright 2018 credit card fraud and falsifying business Crain Communications Inc. All rights The city that needs more sleep? records at two Manhattan-based start- reserved. ©CityBusiness is a registered U.S. News and World Report, in con- ups that employed him. He stole more trademark of MCP Inc., used under license junction with the Aetna Foundation, than $500,000 through schemes as agreement. ranked the 500 healthiest American vice president of nance at stationary- CRAIN COMMUNICATIONS INC communities. None of the ve bor- bike company Peloton and at business- chairman Keith E. Crain oughs made the list. travel rm Rocketrip. Adieu to Le Grand Orange vice chairman Mary Kay Crain Fan favorite Rusty Staub died on president K.C. Crain Suite solution Strong vital signs Opening Day, March 29, at 73. senior executive vice president Chris Crain secretary Lexie Crain Armstrong The six-time All-Star’s 23 Major e city formalized what had been an Insurance startup Oscar Health secured editor-in-chief emeritus Rance Crain emergency-contingency practice of $165 million from Founders Fund and League seasons included stints chief nancial of cer Robert Recchia housing the homeless in commercial two branches of Google parent Alpha- with the Mets from 1972 to 1975 founder G.D. Crain Jr. [1885-1973] hotels. It plans to spend approximately bet. e company, co-founded in 2012 and 1981 to 1985. He shares two chairman Mrs. G.D. Crain Jr. [1911-1996] $1.1 billion during the next three years by Jared Kushner’s brother, Joshua, records: 25 pinch-hit RBIs and hits to place homeless people in hotel plans to invest in technology and in eight straight pinch-hit at-bats.

GETTY IMAGES, ISTOCK rooms—an average of $174 per night. expand into four or ve cities annually.

4 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018

P004_CN_20180402.indd 4 3/30/18 7:39 PM POLITICS

Cuomo’s Penn power play fizzles before it starts Aides say leaked proposal was just a draft BY DANIEL GEIGER

ov. Andrew Cuomo repeatedly reminds of the Farley Post Oce build- constituents of his accomplishments when ing on Eighth Avenue into it comes to large infrastructure projects. a $1.6 billion western annex Replacing the Tappan Zee Bridge, re- known as Moynihan Station. Gbuilding LaGuardia Airport’s central terminal and He also oversaw the construc- completing the Second Avenue subway feature prom- tion of a new concourse on the inently in his personal narrative of a governor who west end of Penn Station, an gets things done—unlike his predecessors and his ongoing project to widen the HURRYING TO WAIT: counterparts in Washington, D.C. main Long Island Rail Road Years of talk have But one big project has stubbornly remained a concourse and the installa- done little for the plight of Penn blemish on Cuomo’s résumé. Despite several attempts, tion of LED lighting and dis- Station commuters. the governor has yet to get a Penn Station overhaul play screens. ose ideas have on track, leaving one failed to improve of the world’s busiest the majority of the its nearby real estate holdings to address several of the transit hubs a crowded The governor’s ideas station’s drab, cramped and antiquated station’s shortcomings. Questions have begun to per- dungeon for more than “have been great interiors, however, let alone address the colate on whether developing the block south of the 600,000 daily travelers. myriad service delays brought about by station should be part of the conversation. Gateway, Frustration—and temporary steps, but decades of infrastructure neglect. the $30 billion plan to build and repair rail tunnels perhaps desperation— the real issue now is Cuomo has oated more ambitious under the Hudson River and related infrastructure, over the intractability ideas, such as relocating the Garden’s includes a proposal to seize that block to build an ex- of the situation helps deciding what the plan Hulu eater and reconguring the west- tension of the station with additional tracks, without explain Cuomo’s ag- for Penn really is” ern edge of Penn Station into a grand en- which the full capacity of the new tunnels could not gressive attempt last trance with huge glass panes. at also be realized. Cuomo has failed to develop a consensus week to seize greater has failed to come to fruition, in part be- vision from these disparate ideas. powers to tackle the project. A bill Cuomo was seek- cause Amtrak, which owns the transit hub, controls “Penn Station is a very tough nut,” said Elizabeth ing to pass as part of the state’s budget would have that area. Goldstein, president of the Municipal Art Society. given Albany sweeping control of the neighborhood Meanwhile, as planners continue to argue wheth- “e governor’s ideas have been great temporary around Penn Station to spur real estate development er the Garden should be relocated as part of a big x, steps, but they don’t get at the really big picture. e

and pour the proceeds into transforming the station. Vornado has oated a new plan that would leverage real issue now is what the plan for Penn really is.” ■ BUCK ENNIS “I think the governor was very determined to move ahead with the project,” said Assemblyman Richard Gottfried, “and he wanted something that amounted to an immediate endorsement to do that.” Representatives of Cuomo, who is up for re-elec- tion this year, said the bill that leaked to the public $FFHOHUDWH

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20180402.indd 5 3/30/18 7:19 PM ASKED & ANSWERED NONPROFITS INTERVIEW BY MIRIAM KREININ SOUCCAR

JOSEPH SCELSA ITALIAN AMERICAN MUSEUM

ost Italian immigrants and the businesses they started have long left Little Italy, but the Italian American Museum is expanding its footprint Our budget was downtown to make sure they are not forgotten. about $250,000 MLed by its president, Joseph Scelsa, the museum in February “ a year, and it will closed on a deal to sell its three contiguous 3-story buildings on Grand Street to Nexus Building Development Group and Oved be closer to Group, which are developing a 25,000-square-foot residential $1 million in our building. The museum will own and occupy a condominium on new space” the ground oor. The institution, which opened on Grand Street in 2008, recently closed its doors to undergo an expansion to 6,500 square feet, more than four times its previous size.

What will this real estate deal allow the museum to do? We’ll have more galleries and an auditorium that can seat 60 peo- ple. We will be able to double the number of exhibits each year and keep our permanent collection on display. We have everything from sewing machines to pushcarts and lots of documentation, like ship tickets and letters, which tell the story of the immigrant experi- ence. We have the guns of Frank Serpico, the famous policeman who fought corruption in New York City.

How will the deal affect the museum’s nances? We bought the original buildings for $9.4 million with a $6 million mortgage. We are getting nearly $14 million for them, which will allow us to pay off the mortgage and the personal loans from our board members and build out the new space. We will have $1 million left over to get us through the rst year and fund new DOSSIER programs. WHO HE IS Founder and presi- What will your new budget be, and how will you fund it? dent, Italian American Museum Our budget was about $250,000 a year, and it will be closer to BORN Little Italy, Bronx $1 million in our new space. The museum is self-sustaining. We do RESIDES Mount Vernon fundraisers like an annual golf outing, which brings in more than $100,000 in one day. EDUCATION Bachelor’s in political science, Long Island University; master’s in social What about attendance? studies and master’s in guid- We get about 90,000 visitors a year and expect to quadruple our ance and counseling, Lehman numbers. We are still deciding on admission fees. College; master’s in sociology and education and Ph.D. in Why is this museum relevant? Who are your primary visitors? education, Columbia University About 40% of our visitors are tourists from all over the world. We THIRD GENERATION also get a lot of school groups. To study early immigration gives Scelsa’s grandparents came some perspective as to what is happening today. It’s a great story from Sicily and Calabria, but for everyone that we all struggled in the beginning, but today if your his parents were born in New family works hard, you become part of the American fabric. York. “I don’t speak uent Ital- ian because my grandparents The neighborhood has been gentrifying and is no longer the hub of the wanted us to be Americans, so it wasn’t spoken in the Italian community. How does that affect your traf c? house.” We came in 2008, so the neighborhood had already changed. We wanted a historic location where the immigrant experience came MANGIAMO! Scelsa’s favorite restaurants are Il from, like the Tenement Museum. The tour companies still stop on Gattopardo on West 54th my corner [Grand and Mulberry] every day since this is where the Street and Mario’s and epicenter of Little Italy was. Zero Otto Nove on Ar- thur Avenue in the You were a sociology professor at Queens College. Why did you leave? Bronx.

In 1999 I created an exhibit about the Italian-American experience BUCK ENNIS at the New-York Historical Society. It ran for three months, and thousands of people came. I realized this was a better way to tell the story of Italian immigration than trying to teach it in the classroom. ■

6 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018

P006_CN_20180402.indd 6 3/30/18 2:04 PM HEALTH CARE

One Brooklyn to deploy $664M to transform safety-net hospitals CEO LaRay Brown takes helm of ambitious new health system BY CAROLINE LEWIS

aRay Brown has Interfaith, told Crain’s she is intensive care unit and create Brooklyn magically aorded a mile-long to-do grateful for the infusion of additional operating-room us an opportunity to have a BROWN sees big opportunities list as CEO of One cash from the state. But she is ca pacity,” Brown said. “And in signicant expanse in budget.” despite big challenges. Brooklyn Health, now reckoning with the sheer order for Kingsbrook to begin In fact, the state is help- Lthe newly formed system scale of the plan: e health to do the work of repurposing ing the three hospitals ll the that unites Kingsbrook Jew- system has to get the ball roll- buildings for the medical vil- massive holes in their oper- Aer spending nearly 30 years ish, Interfaith and Brookdale ing on nearly 70 discrete infra- lage, it needs infrastructure ating budgets with a com- working in the city’s pub- University Hospital medical structure projects, many of improvements.” bined $250 million in annual lic hospital system, Brown centers. which are interdependent. assistance. became president and CEO e system, which grew out “ ere are a lot of mov- Operating on a shoestring Observers have expressed of Interfaith—and the rst of a state-commissioned study, ing parts,” Brown said, “and Despite Brown’s demand- skepticism that bringing black woman to run a private aims to transform health care everyday it seems like there ing new role, she is not plan- together struggling hospi- hospital in New York City—at in central Brooklyn and make are more.” ning to abandon her post at tals that primarily serve low- a time when the hospital was its local safety-net hospitals— One of the biggest under- Interfaith in the near future. income patients will somehow under immense pressure to which currently depend on takings will be to transform at’s not just because she allow them to shore up their bounce back from bankruptcy support from the state—more Kingsbrook Jewish Medical made a commitment to her nances. Although Brown and stave o closure. sustainable. One Brooklyn Center from a traditional colleagues at the hospital, she sees opportunities to leverage Challenges notwithstand- this year received a $664 mil- hospital into a medical vil- said, but also because the new the new health system’s size to ing, Brown sees an upside. lion commitment from Gov. lage with a mix of outpatient, health system is still operating save the hospitals money, she “It’s exciting,” she said. “Who Andrew Cuomo to help the emergency and post-acute- on a shoestring. isn’t going to be the one to shut gets the opportunity to have member hospitals improve care services. “We will be looking for down the skeptics. $664 million to really improve their facilities and build a “In order for Kingsbrook all of our senior sta to have “You can’t have unbridled health care? at’s rare any- robust primary care network. to no longer provide inpa- multiple roles because we are optimism,” she said. where these days and in par- Brown, who is also pres- tient medical-surgical services, still three safety-net hospi- But she also isn’t one to ticular in Brooklyn, where the

ident and chief executive of Brookdale has to expand its tals,” she said. “It’s not like One shy away from a challenge. need is so great.” ■ MEDICAL CENTER COURTESY OF INTERFAITH

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20180402.indd 7 3/29/2018 3:48:07 PM REAL ESTATE

Conflict of interest seen in title insurance reg rollback State senator’s husband earned income from industry rm BY JOE ANUTA

state lawmaker who stood of such gis as sports tickets, pricey legislation is how to lose money from a new meals and strip-club outings—given a bill would bene- title insurance regulation in the hopes of getting business refer- t my constituents,” co-sponsored a bill to undo rals—was being passed on to home- she said, “not my Athe reform, public records show. owners in their premiums. hu s b an d .” State Sen. Susan Serino’s husband, e Senate nonetheless voted to roll Without accom- Mark, earned $5,000 to $20,000 from back the department’s decision, rst in panying legislation in Poughkeepsie-based Real Property 2017 and again this year when it came the Assembly and a Abstract and Title Services in 2016, up during the new session. Insurers signature from Gov. according to nancial disclosures led argued that gi-giving builds relation- Andrew Cuomo, the with the Joint Commision on Public ships that bene t customers. bill failed to stop the Ethics. Several months later that com- “is bill passed in the Senate new rule from going pany and all other title insurers in the twice—unanimously—because it’s the into eect earlier this SERINO SAYS she targeted “regulatory overreach.” state were hit with a ban on gi-giving. right thing to do,” Serino said in a state- year, much to the cha- Industry representatives said the ment. “New York is the regulation cap- grin of the New York policy could cripple business, and state ital of the nation, and the bill aims to State Land Title Association. e trade A handful of state senators are Sen. James Seward agreed, introducing prevent regulatory overreach.” group has fought vigorously against the developers, such as George Amedore a bill in July to defang the new rules. gi ban, ling a lawsuit in February, Jr. A website for his family company, e legislation was co-sponsored by Lawmaker denies bene t and has found support in the Repub- Amedore Homes, indicates that the only two other senators: Marty Golden Serino’s husband is a lawyer who lican-controlled state Senate, which is rm’s attorney can order title insurance and Serino. does work for the Poughkeepsie-based home to many lawyers and real estate for condo buyers. A spokeswoman said “at seems like a pretty obvious title insurer, and Serino herself owns professionals whose businesses inter- most buyers get title insurance through conict of interest,” said Susan Lerner a real estate brokerage that represents twine with the title insurance industry their own attorney, and only in rare of Common Cause New York, a good- homebuyers. Her company’s website in various ways. cases does Amedore Homes refer buy- government group, adding that the reg- hosts explanatory articles about title Several legislators are real estate ers to outside lawyers it works with to ulations impact Serino’s “livelihood.” insurance written by the California brokers, according to nancial dis- obtain title insurance. e Cuomo administration’s mea- Land Title Association, a trade group, closure forms reviewed by Crain’s— Although those senators have less sure sought to curtail gis from title but Serino said that she does not have meaning they could potentially be on of a connection to title insurers, Lerner insurers to real estate brokers or law- a say in which title company is chosen the receiving end of gis from title said they could still have varying yers who oen recommend a title com- when her clients purchase a home, and insurers. Others work at law rms that degrees of conicting interest. pany to their home-buying clients. e that she has never received any bene t deal with real estate closings and refer “ey don’t have any incentive,” she state Department of Financial Services, from a title company. clients to particular title insurance said, “to make the title insurance com- which drew up the rules, said the cost “My only priority in considering companies. panies angry.” ■

DOB won’t track personal City taps team to plan data under new safety law Sunnyside Yard project Agency pledges to protect undocumented workers Architects at PAU to craft vision for 180-acre rail pit

BUILDINGS DEPARTMENT Commis- Department of Labor estimates there THE CITY HAS selected a team led by process told Crain’s that PAU has won sioner Rick Chandler said last week are 150,000 construction workers cur- architect Vishaan Chakrabarti to design the request for proposals that the city that the city will not collect nor retain rently employed in the city, and the Pew a master plan for the 180-acre Sunny- issued in November. the personal information of undocu- Research Center has suggested that 15% side train yard in Queens. Ocials hope e rm will be tasked with draw- mented construction workers who will to 33% of them are undocumented. the yard can be decked over with parks ing up a more speci c scheme for what be required to earn safety training cer- While the daunting details of imple- and tens of thousands of apartments. should be built and where, a process ti cation under a new law. menting the new law are still being Sunnyside Yard, the canyon of tracks ocials have estimated will take up to e department is busy hashing worked out Chandler said that private between Long Island City and Sunny- two years. out how to implement the new con- training providers will safeguard the side, has long been eyed as a develop- Because of the time needed to hash struction safety bill, which was pushed data needed to issue each trainee a ment site of epic proportions. e de out the daunting logistics of building through the City Council in Septem- unique ID number that can be tracked. Blasio administration released a study a deck and columns over an active rail ber. e law requires all construction e construction safety law’s rst in February 2017 showing that it would yard, the biggest decisions are likely workers to complete at least 40 hours requirement went into eect at the be possible to deck over 85% of the pit to happen years down the road, aer of safety instruction by 2020. Several beginning of March, mandating that to support commercial, retail, cultural, Mayor Bill de Blasio’s term ends in 2021. key elements of the program have not every worker have at least 10 hours residential and green-space develop- But the administration says that coming been nalized, including how to ensure of training under federal Occupa- ments. In one scenario outlined in that up with a set of blueprints now is cru- individual hard hats meet the threshold tional Safety and Health Administra- document, the nished product could cial to ensure that Amtrak, which owns while keeping the personal information tion guidelines. By the end of the year, net 24,000 apartments and come with a most of the yard, can consult those of undocumented workers from federal workers must have completed at least price tag of $19 billion, a cost and scope plans as it upgrades its own facilities. immigration authorities. 30 hours, even though the DOB has not on par with e Related Cos.’ Hudson “We remain on track with the orig- “How can you ensure privacy and at released the course requirements. Yards project on Manhattan’s West Side. inal schedule for this project,” a city the same time get the department the “I’m very much aware that the Chakrabarti’s rm, PAU, declined spokesman said in a statement. “We con- information it needs to act on enforc- industry needs to have some direction to comment, and the city’s Economic tinue to work closely with Amtrak, and ing the law with the goal of safety—not and needs to get some answers,” Chan- Development Corp. said that it has we will also engage community stake- the goal of turning people in?” Chan- dler said. “We are very stressed to get it not ocially designated a team. But holders before beginning any master-

NYSENATE.GOV dler said during a Crain’s forum. e out as quickly as we can.” — J.A. several sources with knowledge of the planning process.”— J.A.

8 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018

P008_CN_20180402.indd 8 3/30/18 7:44 PM WHO OWNS THE BLOCK

33 CATON PLACE Investors rustle up projects near Prospect Park’s southwest corner Brooklyn’s last stable to get an upgrade in an area once haunted by the Great Recession

BY TOM ACITELLI 51 CATON PLACE

John Quadrozzi Jr., president of the Gowanus Bay Terminal in Brooklyn’s Red Hook, bought rooklyn’s last remaining equine cen- the old Kensington Stables here for $1 mil- ter, which until recently was known lion in a December auction. The deal closed 312 CONEY ISLAND AVE./1 OCEAN PARKWAY as Kensington Stables, is set to receive in March. Minority stakeholders include his daughter and Walter Blankinship, the facili- The International Baptist Church owns these a much-needed makeover. It’s the ty’s former manager and the son of its for- properties, including a eld and a 27,000-square- Blatest in a string of projects to emerge since the mer owner. Quadrozzi renamed the facility foot building used for the church and its school. 2008 nancial crash stalled development in the Prospect Park Stables and plans to spend about $8 million renovating it, including add- Windsor Terrace and Kensington neighborhoods. ing a residential or commercial component. It e nancially strapped stable avoided the currently houses some 30 horses. familiar fate of redevelopment into housing, 320 CONEY ISLAND AVE./72 CATON PLACE thanks to community opposition spearheaded JEMB Realty, a private Manhattan-based rm led by Brad Lander, the local councilman. John by Chairman Morris Bailey and President Joseph Quadrozzi Jr., who bought the property at auction Jerome, acquired this parking lot from Calvary Pen- tecostal Church for $15.2 million in April. A couple in December, said he plans to maintain the stable, 58 CATON PLACE of years before, the church reportedly partnered built in 1931, for at least ve years. He renamed it Calvary Pentecostal owns with private developers to build a 9-story residen- Prospect Park Stables, its historical name. this 64,750-square-foot tial building on the site. Instead, it sold the lot to JEMB, which led plans with the city three months Another horse barn in the neighborhood was church building. ago to construct an 8-story, 157,600-square-foot not so lucky. In July 2005 developer Moshe Feller self-storage facility. bought the stable at 23 Caton Place in Windsor Terrace. He 33 CATON PLACE/23 CATON PLACE booted the horses and led plans for an 8-story, 107-unit condo- A private-equity fund led by invest- ment rm Emmes Asset Management 346 CONEY ISLAND AVE. minium. But the project soon ran bought this 126-apartment develop- into trouble. ment for $76 million in 2015. The Leviev Boymelgreen, a partnership e city led a stop-work order seller was investor Sam Boymelgreen. between Israeli billionaire Lev Leviev He nabbed the long-stalled condo and New York developer Shaya Boy- in April 2008 amid complaints of project in a foreclosure auction for melgreen, constructed this nine-oor, rushed construction and a walk- a reported $25 million and then 59-unit condominium tower, Park out by workers. A few months later nished it as apartments. Called Circle at Prospect Park, in the mid- Kestrel, the 8-story building remains 2000s. It opened in 2006. Boymel- Feller defaulted on a loan of more a rental, with available units starting green and Leviev severed business than $32 million. ree months at around $2,400 per month. ties toward the end of the decade aer that, Lehman Bros. collapsed amid nancial troubles for an appar- ently overextended Boymelgreen. In and nancing sources dried up for August 2016 state Attorney General many development projects, including 23 Caton. Eric Schneiderman barred Boymel- e nearly half-completed project would haunt green from trading in securities, including condos, for two years. that corner of Ocean Parkway and Caton Place for 22 CATON PLACE years as a stark reminder of an overzealous era. Finally, in 2013, Sam Boymelgreen, son of The Hudson Cos., a private real estate rm in Manhattan, developer Shaya Boymelgreen, snapped up the 378 CONEY ISLAND AVE. acquired this vacant lot for property in a foreclosure sale. He changed the $2.9 million in 2012. The com- A Long Island–based address to 33 Caton Place, dubbed the complex pany wrapped construction on limited-liability company Kestrel aer the bird of prey, converted it from a 7-story, 73-unit apartment managed by Harvinder building in 2015. Apartments condos to rental apartments and began leasing Singh bought this gas sta- rent for $2,000 or more tion from ExxonMobil for units in spring 2014. per month. $1.1 million in 2011. e project would herald the beginning of the area’s post-crash real estate revival. But the mile- stone was somewhat ironic. e elder Boymelgreen 713 CATON AVE. was one of the city’s most proli c developers The city’s School Construction before 2008, with some 2,500 new housing units Authority acquired this plot for in Manhattan and Brooklyn to his credit. Financial $8.8 million in 2011. The agency troubles and accusations of shoddy construction built a 5-story complex that now houses classes for an elementary led to legal challenges and a falling-out with school and a middle school. Boymelgreen’s longtime partner, Israeli billionaire Lev Leviev. ■ GOOGLE MAPS, BUCK ENNIS

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20180402.indd 9 3/30/18 1:41 PM VIEWPOINTS

New Yorkers lament the crowds, but it’s better to be wanted RECORD HIGHS The latest data show how popular the city has become Visitors Population 62.8M

TWO NUMBERS released a slowdown in new arrivals from other & Company predict- by the Census Bureau countries. ose trends are real. Nev- ed a decline in foreign in the past month say ertheless, every one of the boroughs visitors because of the 8.6M almost everything lost more people to other parts of the fallout from President there is to say about U.S. than moved in from other coun- Donald Trump’s travel re- New York’s relation- ties, according to an analysis from the strictions. We were both 36.2M ship to the rest of the Empire Center for Public Policy. For- wrong. Last year the num- world: It is that shin- eign immigration more than made up ber of international tour- 8.0M GREG DAVID ing city on the hill. for that loss in Manhattan and Queens ists increased by 3.4%, to 2000 2010 2016 Start with the lat- and reduced the migration de cit to a 13.1 million. Hotel oc-

est estimate of the city’s pop- modest number in the oth- cupancy and room rates SOURCES: Department of City Planning, ulation. More than 8.6 mil- er boroughs. Meanwhile, rose—quite a feat with so NYC & Company lion people now live in the what is called the natural in- many new hotels opening. ve boroughs. e increase crease—births outnumber- International visitors just is almost half a million since $4.2B ing deaths—led to big pop- can’t stay away from the bright lights. py about the consequences of these AMOUNT tourism 2010, yielding an average generates in city tax ulation gains. Immigrants e tourism numbers were so im- two numbers: a more crowded city, a annual gain that hasn’t been revenue annually get credit for that trend too, pressive that Moody’s Investors Ser- major housing crunch and too much seen since the early years of because they have more vice took special note of it in its weekly competition for restaurant reservations the 20th century. children per capita than na- credit update. Tourism generates $4.2 and entertainment and cultural events. Dig a little deeper and it turns out tive-born Americans. billion in city tax revenue, mostly from ey are also a major reason the city is the story is about immigrants. Lots of Tourism tells the same story. In ear- sales and hotel taxes, and accounts for prosperous. ■ attention has been focused on the in- ly 2015 I wrote that a strengthening 8% of the gross city product of almost crease in migration to the city from dollar was sure to curtail the growth $800 billion, Moody’s pointed out. GREG DAVID blogs regularly at elsewhere in the United States and on in overseas travel. Early last year NYC New Yorkers are sometimes unhap- CrainsNewYork.com.

As DC retreats, NY goes all-in on energy efficiency

Environmental efforts represent a huge business opportunity BY JEFFREY MURPHY

ith billions of dollars in In New York it is time to reconceive leadership stan- metro-area economic energy-system upgrades for buildings. dard, is becoming potential, energy e- A City Council bill signed into law by more prevalent in ciency is an increasingly Mayor Bill de Blasio in January makes residential build- lucrativeW eld with real long-term ben- the city’s energy codes among the na- ings and being e ts to public health and the environ- tion’s most aggressive, matching today’s examined more ment. In the absence of national leader- so-called stretch codes. A call for more closely by govern- ship on building the eciency industry ecient buildings, it will coax owners mental agencies and reducing carbon emissions, recent to upgrade HVAC systems, windows, and commercial moves by New York leaders look not roofs and building envelopes. developers. A WORKER installs only prescient but even bullish on busi- e city’s leading building owners Some rules have a unit that provides air conditioning nesses working to save energy. are already spending to improve ef- raised eyebrows, and heat. New York City’s rules on energy ef- ciency as well as indoor air quality, including a re- ciency have caused some confusion acoustics and other quality-of-life and quirement—mod- and consternation, yet they represent wellness measures. For property own- eled on restaurant a major business opportunity. On the ers behind the curve, deferred main- scores—that build- state level, Gov. Andrew Cuomo in tenance is draining dollars by making ing owners post eciency grades from operations and lead on environmental January committed to “a comprehen- operations inecient. A to F. But those objections oen miss issues. Many initiatives oer proof of sive and far-reaching energy-eciency At the same time, the city’s Local the big picture. concept for new city and state rules. initiative” to take eect on Earth Day, Laws 31 and 32 bolster eciency and e mayor’s underlying mission ese converging forces have dra- April 22. sustainability rules with measures that is to cut 80% of carbon emissions by matically raised businesses’ interest in e new policies will spark action, will make our public-sector buildings 2050. It’s a laudable aim that rms like proven approaches for complying with innovation, entrepreneurship and low- among the nation’s most ecient. Mu- mine support through industry initia- stringent energy-conservation rules, er utility costs. We know this from past nicipal properties will use half as much tives, such as the AIA 2030 Commit- including updating our codes and experience, as entities such as the New energy as a typical code-compliant ment, and through projects including meeting standards such as LEED and York State Research and Development building does today. It’s a valuable start. geothermal wells at St. Patrick’s Ca- passive house. Authority have documented their pos- On top of that, heavily insulated, thedral and our latest project, a ret- It makes one wonder: Why are the itive regional impact. Federal eciency tightly sealed buildings with heat- ro t of a Harlem townhouse to meet nation’s leaders moving in precisely the programs, now on the chopping block, exchanged, ltered, ventilated air are passive-house standards. opposite direction? ■ have done more public good than even not only more ecient, but they also We’re hardly alone. ousands of predicted. Fuel-eciency standards for have proved better for occupants’ New York business leaders, institutions Je rey Murphy is a founding partner of cars create jobs, as do renewable-energy health. So-called passive-house con- and universities are already joining the Murphy Burnham & Buttrick Archi-

ISTOCK initiatives. And there are more to come. struction, which is a global energy push to save energy, improve building tects, based in Manhattan.

10 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018

P010_P011_CN_20180402.indd 10 3/30/18 1:23 PM State’s rules on digital currency are the ultimate crypto-con Byzantine regulations sti e innovation and entrepreneurship BY RON KIM

n 2015 New York’s Department unilateral approval by one person in creations of unilat- of Financial Services superinten- the state is a major deterrent to getting eral agency action, dent, Benjamin Lawsky, imple- their business going here. ere is no but the state Legis- mented the nation’s strictest and bond market that specializes in under- lature could—with Imost convoluted regulations against writing for cryptocurrency exchanges, the governor’s signa- cryptocurrency exchanges. He then and all bond companies rely on credit ture—override these le state service to start his own pri- histories and credit scores to warrant onerous, convoluted vate consulting out t—e Lawsky surety bonds—otherwise they require regulations, which Group—which among other services ridiculously large cash collaterals up eectively block out advises cryptocurrency companies on front. In a nutshell, any surety require- scores of entrepreneurs from the mar- bond, the legislation would explore the arcane and convoluted regulations ment that relies heavily upon credit ket. e state has the opportunity to insurance mechanisms modeled aer he created. e set of Lawsky crypto- histories essentially redlines ethnic and create a productive regulatory frame- Securities Investor Protection Corp. currency regulations are now oen racial minorities, women, immigrants work, not just window dressing, that standards to indemnify individual referred to as the BitLicense. and other groups who have historically not only protects investors and con- investments. Within the 44 pages of regula- been shut out of mainstream credit sumers but fosters entrepreneurs from e BitLicense is a barrier to entry tions set forth without any legislative and nancing. all walks of life without burdening or that gives too much power to a state authority or input, perhaps the most favoring certain groups. agency incapable of auditing or mon- discriminatory requirement is related Lawmakers must act I and three other state Assembly itoring this industry by itself. As the to the need for surety bonds. Sec- To summarize: New York’s top members have introduced the New nancial capital of the world, New tion 200.9 (a) states: “Each licensee nancial regulator created byzantine York Cryptocurrency Exchange Act York needs to embrace innovation and shall maintain a surety bond or trust rules for an emerging industry and (A.9899), which would eliminate the entrepreneurs while protecting con- account in U.S. dollars for the bene- then le to start a company that prof- BitLicense and set new monitoring sumers and investors. ough cloaked t of its customers in such form and its from navigating those regulations, and auditing mechanisms modeled in the guise of needed regulation, the amount as is acceptable to the super- which happen to ensure only the aer the European Union’s Alternative BitLicense enriches a handful of people intendent for the protection of the wealthiest and best-connected compa- Investment Fund Managers Directive. while sidelining those who are already licensee’s customers.” nies can enter the market. is is bad at EU law requires hedge fund–type marginalized and less connected. ■ For startups owned by minori- for innovation, entrepreneurship and institutions to appoint a private depos- ties, women and immigrants, these the state’s economy as a whole. itory to monitor and audit the assets in Ron Kim, a Democrat from Queens, is a bond requirements and the need for e BitLicense requirements are the fund. Instead of requiring a surety member of the Assembly.

FROM OUR READERS Your home: Nest egg or money pit? Differing views on buying a residence; the city’s tech future

ERIK ENGQUIST’S op-ed fortunate enough to pur- they don’t realize that on the growth of the personal data for a useful Economic Development “Your home is not an chase a home, in 20 years they have people’s nan- industry, “Tech Takes free service) to compa- Corp. just announced investment” (published you will have one that is cial lives in their hands. Over” (Feb. 26) forgot nies using the internet that it is partnering with March 12) is correct that nearly paid in full. If you Some areas’ homes to mention that New to create decentralized CoinDesk to host the a home is an illiquid had paid rent, you would are overvalued again, York City is home to the networks designed rst ever Blockchain asset and can cost quite a have a box full of rent like they were before the future of tech. without a third-party Week New York City, bit of money to maintain receipts. nancial crisis hit. Agents e article was a in the middle, in which May 11 to 17. Yet there over many years. He MICHAEL FAZIO will tell you, “Well, you’ll synopsis of the state users are incentivized via wasn’t a single mention is also on point in his PAST PRESIDENT get your money back of technology and the a common goal. Yes, I’m of blockchain or crypto- advice that homebuyers New York State Builders when you sell” or “is is industry writ large, talking about cryptocur- currency in the article. should not purchase a Research and Education the market.” I say, “at including its perceived rencies and blockchain. So who cares if New more expensive home in Foundation doesn’t make it right to problems—startups that And New York City is York City is the tech hub anticipation of leveraging buy at these prices.” are not yet pro table, poised to lead in this of the moment? With to make a greater pro t GREAT TO SEE someone else I saw it in 2004, 2005 jobs that don’t pay as next wave. our proven credibility in in the future. But his sees what I’ve been say- and 2006 … and I would much as Wall Street, etc. Consensys, arguably media and nance, and calculation does not take ing for years: Your home say people are crazy to at is factually accurate, one of the largest and our burgeoning block- into account 10 years of is not an investment! It’s buy now. I’m glad you but it is inconsequential. fastest-growing global chain community, we’re monthly rent payments actually a money pit. wrote about it. Great job! We are in the middle of blockchain companies, already well-positioned you would not have had I’ve been looking JOHN BENZINGER a shi in the industry, is based in Brooklyn. to be the hub for the to pay to a landlord. at buying a home in New Jersey from companies using Future\Perfect Ventures, technology of the future. I prefer to call Arizona, and these real the internet to create focused on investing in KAITLIN MCCREADY purchasing a home the estate agents—let’s just UNDERSELLING TECH centralized platforms and decentralized technology, Brooklyn opportunity to build a say they would sell their In claiming that the tech then monetize their large was founded in 2013 in Editor’s note: For more on nest egg. Remember, you kids if they could make scene is burgeoning, and network of users (see: Manhattan. And the city the city’s digital currency aren’t able to live in a a commission. at’s an that the future of our your Facebook account, and its partners are get- scene, see “Tales from the mutual fund. If you are awful thing to say, but business scene hinges where you give up ting in on it—the city’s crypto,” published Feb. 5.

CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send op-eds of 500 words or fewer to [email protected]. Please

include the writer’s name, company, address and telephone number. Crain’s reserves the right to edit submissions for clarity. ISTOCK

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 11

P010_P011_CN_20180402.indd 11 3/30/18 3:25 PM THE LIST NYC’S LARGEST LOBBYING FIRMS Ranked by total compensation

TRENDS

LAVISH LOBBYISTS Revenue for local lobbyists has climbed in each of the past seven years. The pace quickened in Mayor Bill de Blasio’s rst term and reached a high of $95.6 million collectively for both 2016 and 2017.

Total lobbyist compensation (in millions) $95.6 $95.6 $86.2 $71.9 $62.1 $62.7 $49.3 $53.3

BIG NAMES IN TOWN Suri Kasirer and James Capalino are the city’s top two lobbyists. Kasirer pocketed more 2010 2011 2012 2013 2014 2015 2016 2017 revenue in former Mayor Michael Bloomberg’s third term before giving way to Capalino & Co. in 2014–2016. Last year, Kasirer’s rm regained its lead. CLIENT CLIMB Kasirer Capalino & Co. Total compensation (in millions) The total number of clients for city lobbyists has also increased sharply in the $15 $11.5 past few years. The 2,288 entities who retained an outside lobbyist in 2017 represented a 77% increase compared to 2013. $12 Total clients 2,288 $9 $11.3 1,846 1,705 1,515 $6 1,376 1,291 1,112 $3

0 2010 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017 SOURCE: Of ce of the City Clerk                        
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12 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018

P012_P013_CN_20180402.indd 12 3/30/18 2:58 PM THE SCOOP WHY THE TOP LOBBYISTS TRADED PLACES /ŶĐŽŶŶĞĐƟŽŶǁŝƚŚƚŚĞĂĐƋƵŝƐŝƟŽŶŽĨ&ŝƌƐƚEŝĂŐĂƌĂ&ŝŶĂŶĐŝĂůŽƌƉŽƌĂƟŽŶďLJ<ĞLJŽƌƉ͕ĂŶĚƉƵƌƐƵĂŶƚƚŽĂŶ Kasirer supplanted Capalino & Co. as the ĂŐƌĞĞŵĞŶƚǁŝƚŚƚŚĞh͘^͘ĞƉĂƌƚŵĞŶƚŽĨ:ƵƐƟĐĞ͕<ĞLJĂŶŬEĂƟŽŶĂůƐƐŽĐŝĂƟŽŶŽīĞƌƐƚŚĞƉƌŽƉĞƌƟĞƐůŝƐƚĞĚ city’s most lucrative rm BY WILL BREDDERMAN ďĞůŽǁĨŽƌƐĂůĞ͕ĂƐƐŝŐŶŵĞŶƚŽƌƐƵďůĞĂƐĞƚŽŝŶƚĞƌĞƐƚĞĚĚĞƉŽƐŝƚŽƌLJŝŶƐƟƚƵƟŽŶƐŽīĞƌŝŶŐĚĞƉŽƐŝƚĂŶĚĐƌĞĚŝƚ ƉƌŽĚƵĐƚƐĂŶĚƐĞƌǀŝĐĞƐ͘dŚĞƐĞƉƌŽƉĞƌƟĞƐĂƌĞĐƵƌƌĞŶƚůLJƵƟůŝnjĞĚĂƐďĂŶŬďƌĂŶĐŚĞƐǁŚĞƌĞĞdžŝƐ Ɵ Ŷ ŐďƌĂŶĐŚ aybe it’s not so lonely at the top. ŽƉĞƌĂƟŽŶƐĂƌĞ͕ƐƵďũĞĐƚƚŽƌĞŐƵůĂƚŽƌLJĂƉƉƌŽǀĂů͕ĐĞĂƐŝŶŐĂƐŽĨƚŚĞĐůŽƐĞŽĨďƵƐŝŶĞƐƐŽŶ:ƵŶĞϭ͕ϮϬϭဒ͘ Between 2016 and 2017 Kasirer and <ĞLJĂŶŬEĂƟŽŶĂůƐƐŽĐŝĂƟŽŶ͕ƚŚƌŽƵŐŚůŽĐĂůďƌŽŬĞƌƐĚĞƐŝŐŶĂƚĞĚďĞůŽǁ͕ǁŝůůĞŶƚĞƌƚĂŝŶŽīĞƌƐŽŶƚŚĞƐĞ Capalino & Co. switched places in the ƉƌŽƉĞƌƟĞƐ ĨƌŽŵ ƋƵĂůŝĮĞĚ ĚĞƉŽƐŝƚŽƌLJ ŝŶƐƟƚƵƟŽŶƐ ĂŶĚ͕ ƐƵďũĞĐƚ ƚŽ ĞƉĂƌƚŵĞŶƚ ŽĨ :ƵƐƟĐĞ ĂƉƉƌŽǀĂů͕ revenue rankings of city lobbyists. Suri MKasirer’s company recaptured the top slot it held from ĨƌŽŵ ŶŽŶͲĚĞƉŽƐŝƚŽƌLJ ďŝĚĚĞƌƐ ƐŚŽƵůĚ ŶŽ ĐŽŵŵĞƌĐŝĂůůLJ ĂƉƉƌŽƉƌŝĂƚĞ ŽīĞƌƐ ĨƌŽŵ ƋƵĂůŝĮĞĚ ĚĞƉŽƐŝƚŽƌLJ 2006 through 2013, while James Capalino’s returned ŝŶƐƟƚƵƟŽŶƐďĞƌĞĐĞŝǀĞĚ͘

to the silver-medal status it had from 2010 until 2014. KeyBank Branch Lease Local Contact Company Branch Address City State Zip Close Interest džƉŝƌĂƟŽŶ Broker Phone Email Address eir earnings were remarkably close, with Kasirer’s Name $11.5 million edging Capalino’s $11.3 million—a dif- Name Date Date Name Number ference of just a few large accounts. ENY - Syracuse dŚĞ ĚĂŵƐ DĂŝŶ^ƚƌĞĞƚ͕ ůŝƐŽŶ ϱϭဒͲϳဒϱͲဒϮϬϬ Capalino went from having 346 clients in 2016 to ĚĂŵƐĞŶƚĞƌ Ez ϭϯϲϬϲ ϱͬϮϱͬϮϬϭဒ KǁŶ Eͬ ĂƌƚŵŽƵƚŚ ĂďƵƌŶƐŝĚĞΛĚĂƌƚĐŽ͘ĐŽŵ ĞŶƚĞƌ ZŽƵƚĞϭϭ ƵƌŶƐŝĚĞ džϯ 298 last year, reducing his haul by roughly $2.2 mil- ŽŵƉĂŶLJ dŚĞ ϭůŝŶƚŽŶ^ƚ͕͘ ůŝƐŽŶ ϱϭဒͲϳဒϱͲဒϮϬϬ lion. Among his high-rolling clients to not carry over dƵůůLJ dƵůůLJ Ez ϭϯϭϱဓ ϱͬϮϱͬϮϬϭဒ KǁŶ Eͬ ĂƌƚŵŽƵƚŚ ĂďƵƌŶƐŝĚĞΛĚĂƌƚĐŽ͘ĐŽŵ WKŽdžϲϯϬ ƵƌŶƐŝĚĞ džϯ from year to year were SJP Properties (which paid ŽŵƉĂŶLJ Capalino $135,000 in 2016), United Construction ƵīĂůŽ ZŝĐŚĂƌĚ: >ĞǁŝƐƚŽŶ ƵƐŚŵĂŶ & Development Group (which paid $102,586), For- ϭဓϬ^ŽƵƚŚ ^ĐŚĞĐŚƚĞƌ͖ WůĂnjĂƌŝǀĞ >ĞǁŝƐƚŽŶ Ez ϭϰϬဓϮ ϲͬϭͬϮϬϭဒ KǁŶ Eͬ tĂŬĞĮĞůĚ ϳϭϲͲဒϱϮͲϳϱϬϬ ƌƐĐŚĞĐŚƚĞƌΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ ϳƚŚ^ƚ dLJůĞƌ ƚďĂůĞŶƟŶĞΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ tis Property Group ($112,500), Matrix Development hƉ WLJƌĂŵŝĚ ĂůĂŶƟŶĞ Group ($104,516) and F&T Development ($300,000). ZŝĐŚĂƌĚ: ƵƐŚŵĂŶ ϰϮϭ^ĞĐŽŶĚ ^ĐŚĞĐŚƚĞƌ͖ Capalino explained that a number of clients in 2016 zŽƵŶŐƐƚŽǁŶ zŽƵŶŐƐƚŽǁŶ Ez ϭϰϬဓϮ ϲͬϭͬϮϬϭဒ KǁŶ Eͬ tĂŬĞĮĞůĚ ϳϭϲͲဒϱϮͲϳϱϬϬ ƌƐĐŚĞĐŚƚĞƌΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ ^ƚ dLJůĞƌ ƚďĂůĞŶƟŶĞΛƉLJƌĂŵŝĚďƌŽŬĞƌĂŐĞ͘ĐŽŵ WLJƌĂŵŝĚ were seeking one-time zoning allowances or property ĂůĂŶƟŶĞ dispositions from the city, while others stayed with the rm but did not pay for services last year. “We’re proud of our success in 2017,” a spokesper- son said. “Over the last few years, Capalino & Co. has invested heavily in its talent as well as the expansion of services—including a focus on traditional strategic KeyBank_6x6_4.2insertion.indd 1 3/5/2018 4:59:59 PM consulting—to provide more comprehensive services to companies and nonprots. ese eorts, along with the hard work of the sta, led to the rm’s success in 2017.” Ties that bind Some customers might have been put o by Capal- ino’s name getting caught up in several of Mayor Bill de Blasio’s debacles. e rm’s head represented one of the proprietors of the Rivington House, a Lower East Side hospice for AIDS patients that the admin- istration allowed a later owner to convert into luxury condos, resulting in Attorney General Eric Schneider- man subpoenaing the lobbyist. And some observers linked the mayor’s abandonment of his election-year promise to ght the closure of Long Island College YANKEES Hospital—which Fortis won a bid to purchase and redevelop—to his relationship with Capalino. On the other hand, media coverage oen credited Capalino’s winning those results to his administration PREMIUM ties, which can help attract clients. Kasirer, meanwhile, saw her client list swell from 164 in 2016 to 190 last year—boosting her bottom line by $1.2 million. Her rm landed fat contracts with Crown Castle International ($125,000), e Cayre Group ($105,000), Great Stone Development ($105,000), CRE Development ($84,000) and Oppor- tunity Charter School ($82,000). She even took on the $122,000 account of the controversial animal-rights group New Yorkers for Clean, Livable and Safe Streets, UNRIVALED ACCESS, UNPARALLELED SERVICE the organization that some credit with derailing for- mer City Council Speaker Christine Quinn’s 2013 LEGENDS SUITE • LEGENDS PREMIER • CHAMPIONS SUITE mayoral campaign. e group says its core mission is DELTA SKY360˚ SUITE • FORD FIELD MVP CLUB SEATS • JIM BEAM SUITE to save carriage horses from pulling tourists around. “For more than 20 years, New York’s largest com- panies, developers and not-for-prot organizations FOR MORE INFORMATION ON PREMIUM SEASON TICKETS have turned to us to help guide them through compli- (718) 508-3955 cated challenges,” Kasirer told Crain’s. “ ey rely on us for our team’s strategic insight, hustle and know- [email protected] how at every step in a public process or complicated WWW.YANKEES.COM/PREMIUM negotiation.” ■

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 13 ● ● LOBBYING Connecting● ● big paycheck requires a deep Rolodex. When a business, union or nonpro t hands a lobbyist ve or six gures, it is not just paying for charm. Big-dollar operators command such compensation because of their ● knowledge of government and politics—and connections to Akey elected ocials and power brokers. e 10 biggest lobbying rms in New York City have built their busi- the dots The histories, rainmakers, relationships and clients nesses on access and savvy. Here’s how they did it. that make these lobbying rms the city’s biggest BY WILL BREDDERMAN

2. James F. Capalino & Associates

FOR A FEW YEARS, Capalino was king. James Capalino’s eponymous rm surpassed Kasirer as the city’s top lobbyist in 2014, Bill de Blasio’s rst year as mayor, and the common assumption was that its rev- enues rose because of its chief’s ties with the mayor. A former campaign manager for Mayor Ed Koch, Capalino was an aggressive fundraiser and supporter of de Blasio in the 2013 primary, and word quickly spread that he enjoyed an open line of communica- tion with the new administration. JAMES CAPALINO e rm gave $10,000 to de Blasio’s Campaign for One New York—a now-shuttered nonpro t that eth- ics advocates decried as a “shadow government”—and two of his clients soon did the same. en, amid media reports of city actions favoring Capalino cli- ents, de Blasio declared in 2016 he would no longer correspond directly with his lobbyist friend. e next year Capalino fell back into second place. Still, Capalino remains one of the busiest rms in town, bringing in reams of small accounts alongside such big payers as e Georgetown Co., Industry City, Macklowe Properties, Magnum Real Estate and Midtown Equities. He maintains a team with deep roots in city government, including Susan Hink- son, former Board of Standards and Appeals commissioner, and former Scott Stringer aide Jesse Campoamor. e rm declined to comment for this article.

3. Pitta Bishop & Del Giorno

WHEN FORMER Councilwoman Melissa Mark- Viverito of East Harlem captured the council speakership in 2014, Crain’s ran a photo of this then-six-year-old rm’s founders on its cover. It SURI KASIRER was an acknowledgment of their eorts in secur- ing her the perch and of the bounty the company was poised to receive. e Staten Island rm’s 1. Kasirer annual harvest almost doubled between 2013 and 2016, when the speaker showered its clients SURI KASIRER, erstwhile aide to Gov. Mario Cuomo, started her rm in with public funds, as revealed by the New York 1995 as her husband, Bruce Teitelbaum, was rising through the ranks of Mayor Post and Daily News, and when one of its lobby- Rudy Giuliani’s administration. e power couple’s relationship and Kasirer’s ists joined her sta, as Crain’s reported. channels of communication with key city gures caught the notice of some But the real money is in the family business. good-government advocates as the Republican administration entered its twi- VINCENT PITTA Principal Vincent Pitta is the son of Vito Pitta, light. But Kasirer’s career was just dawning. By 2006 she had the most lucrative former Hotel Trades Council president, and the lobbying operation in town. e founder became one of the city’s biggest fund- brother-in-law of the powerful labor union’s raisers, amassing cash for Hillary Clinton, former Comptroller Bill ompson current leader, Peter Ward. e hotel workers union and aliates of its par- and many others. Meanwhile, her clientele grew to include some of the biggest ent organization, Unite Here, gave the rm $219,000 last year to represent its names in real estate, including El Ad, Extell and SL Green. interests to city authorities. She hasn’t slowed down. Last year Kasirer bundled $56,030 for Mayor Bill Like other rms on this list, Pitta Bishop & Del Giorno is a paragon of de Blasio’s re-election campaign. And this year one of her rm’s vice presidents, bipartisanship. Co-founder Robert Bishop is a Republican, and Conservative Jason Goldman, became new Council Speaker Corey Johnson’s chief of sta. James Molinaro, former Staten Island president, joined the team in 2014. Senior Vice President Julie Greenberg, for her part, served as Comptroller Scott It remains to be seen how the company will fare under the new council Stringer’s chief of sta during his time in the Assembly. regime. Hotel Trades helped usher Corey Johnson into the speakership, but Pit- “is is a business built on trust and reputation over the long haul,” Kasirer ta’s legal arm worked for his main rival, Manhattan Councilman Mark Levine. said. “Our team has decades of combined experience in government and advo- “Vincent Pitta has been a signi cant presence in governmental circles,” spokes-

COURTESY OF KASIRER, BUCK ENNIS, GETTY IMAGES cacy at all levels.” man Hank Sheinkopf said, “and expects to remain so through hard work.”

14 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018

P014_CN_20180402.indd 14 3/30/18 4:06 PM ● ● ●

4. Bolton–St. Johns tial race. In January the ment, drew from similar wells to collect $10,250 for Trump administration Johnson around the same time. Developers account gave Giuliani’s old job for almost two-thirds of Geto & de Milly’s clients. BOLTON–ST. JOHNS be- as U.S. attorney for the Avery Hall Investments, e Brodsky Organization, came known in the 1990s as Southern District of New DDG Partners (a major Johnson supporter outside the rm led by Mel Miller— York to Georey Berman, of Geto and de Milly’s bundling), Property Markets who had lost his Assembly a principal of Greenberg Group and Zeckendorf Development were among speakership because of a Traurig’s New York and the big names to hire the duo to push council mem- conviction subsequently New Jersey oces. It is an bers for zoning concessions last year. overturned—and Norman interim appointment, but e rm brought on Mark Benoit, a self-described Adler. e company had many expect President RUDY GIULIANI longtime friend of Mayor de Blasio’s dating to their EMILY GISKE an oce-sharing arrange- Donald Trump to for- years in the Dinkins administration, shortly aer the ment for a few years with mally nominate Berman mayor took oce in 2014. Armand D’Amato, brother for the powerful post. of Alphonse D’Amato, then senator. But it changed Greenberg Traurig’s legal prowess and connec- hands in the 2000s and has become an increas- tions have made it the go-to attorney for the Cuomo 9. Connelly McLaughlin & Woloz ingly big player in statewide aairs. Partner Giorgio campaign and a slew of other Democrats. De Rosa’s daughter Melissa is Gov. Andrew Cuomo’s Giuliani administration veteran John Mascialino chief of sta, while Emily Giske is a vice chair of the oversees the rm’s city lobbying operation, which A LOBBYIST for the Cuomo-controlled state Democratic Committee. last year took in fees from developers including yellow taxi indus- Giske is a longtime con dante of ex-Council Speaker Fetner, Jerey Gershon and Slate Property Group. try, Michael Woloz Christine Quinn, who runs homeless-shelter oper- Other top clients were the Hunts Point Market, the bundled a whopping ator Women in Need—one of Bolton–St. Johns’ West Village Houses co-op complex and mobile $231,915—more highest paying city clients. Giske brought on board technology rm Verifone. than any other fund- partner Mike Keogh, who had lost his longtime post raiser—for Mayor de as council nance director in 2007 amid a scandal Blasio in the month over taxpayer funds being allocated to fake charities 7. Davidoff Hutcher & Citron between when the for members’ later distribution. then-public advocate Bolton draws huge sums from Airbnb, Dart won the Democratic MICHAEL WOLOZ Container Corp. (whose foam food containers the POLITICOS’ EARS perked primary in Septem- mayor is trying to ban) and the waste-management up in January 2017 when ber 2013 and his and taxi industries. Unlike most of its peers, the rm this 42-year-old legal and victory in November. Woloz’s cash-gathering was does little fundraising for candidates at the city level, lobbying rm hired Keith substantially more subdued last year, amassing but it does operate a powerhouse political action Wright, Manhattan Demo- $16,650 for de Blasio and almost $5,000 for Scott committee, Bolt-PAC. cratic Party boss, fresh out Stringer, and distributing relatively meager amounts of the Assembly and aer among Corey Johnson and two of his rivals. an unsuccessful congres- “Lobbying is about eectively communicating KEITH WRIGHT 5. Constantinople & Vallone sional run. e Manhattan ideas and building trust and relationships over a long Consulting Democratic operation is period of time,” Woloz said. “We have been success- a shadow of the Queens ful, in large part, because we are trusted by elected and Bronx machines and of its former Tammany and community leaders to provide them with key PETER VALLONE SR. Hall glory. Still, Wright enjoys considerable sway facts and the best arguments on important issues.” joined his brother- over important party-run processes such as judicial Partner Martin McLaughlin is a former Koch in-law Anthony Con- nominations, appointments to the city Board of Elec- political aide. Lobbyist Kathleen Cudahy was an stantinople’s lobbying tions and the awarding of the party’s ballot line for attorney to former Speaker Vallone and a strategist business in 2002, when special elections to the state Legislature. In Septem- and adviser to former Mayor Bloomberg. Senior term limits nally ber, for example, he helped elevate former Assembly Vice President Je Rodus was deputy chief of sta forced Vallone from colleague Brian Kavanagh to the state Senate post to Melissa Mark-Viverito. e rm is in its 30th year. the council speakership abandoned by Daniel Squadron. aer 15 years. His name- Wright joined a team that included John “Sean” PETER VALLONE sake son succeeded him Crowley, brother to Rep. Joseph Crowley, the power- 10. Kramer Levin Naftalis in his Astoria-based ful Queens Democratic Party boss. e Crowley clan & Frankel seat, which he held has immense inuence over virtually all government until 2014, and is now a Queens County Civil Court aairs in the borough, and the congressman played judge. Another son, Councilman Paul Vallone, rep- a seminal role in handing the council speakership to CANTANKEROUS resents Bayside and surrounding neighborhoods. Corey Johnson. taxpayers might best One of the rm’s lobbyists, Keith Powers, was elected e company’s lobbying anchor is Sid Davido, know this rm for last year to represent the East Side of Manhattan. a veteran of the Lindsay administration who raised receiving $2.6 mil- e rm and its employees raised a bit less than $18,400 for Mayor de Blasio’s re-election and $9,100 lion of their money $15,000 for council candidates last year, plus more for Scott Stringer. Big 2017 accounts included real in February for their than $25,000 for Scott Stringer’s re-election bid, estate and investment trust iStar Financial, the pro– work representing $3,000 for Bronx Borough President Ruben Diaz Jr. charter school nonpro t Center for Educational Mayor de Blasio and $16,565 for Queens Borough President Melinda Innovation–Public Education Association and vot- through a pair of cor- Katz. e Daily News reported that Constantinople ing machine vendor Election Systems and Soware. ruption probes. But & Vallone utilized loopholes in disclosure law to the ties between the avoid reporting $16,350 it raised for Mayor Bill de rm and the mayor BARRY BERKE Blasio’s re-election campaign. 8. Geto & de Milly run deeper than that. e company advocates for TD Bank, Waste Partner Barry Berke Management, T-Mobile USA, private prison oper- ETHAN GETO—a city and held a fundraiser for de Blasio at Kramer Levin’s MILLY, CONELLY MCLAUGHLIN & WOLOZ, KRAMER LEVIN, AP PHOTOS, BLOOMBERG NEWS MCLAUGHLIN & WOLOZ, KRAMER LEVIN, AP PHOTOS, BLOOMBERG NEWS CONELLY MILLY,

ator Geo Group and scaolding and demolition state government old- oces during his rst run at Gracie Mansion and DE magnates Greg and Lawrence Blinn. timer—was the biggest subsequently became his campaign treasurer. Busi- bundler for Corey Johnson’s ness burgeoned for the rm while it was working for 2017 re-election campaign, the mayor and awaiting payment. e partnership, 6. Greenberg Traurig presciently pulling together GETO which had fallen o the Top 10 list aer 2013, surged $22,150 from an array of back in 2016 as media reports spotlighted its service AMERICANS became acquainted with this Miami- real estate executives for the to de Blasio. All but a few of its 43 lobbying accounts based law and lobbying titan in 2001 during the aspiring speaker back in July are real estate–related and fall under the purview of Jack Abramo scandal. But New Yorkers probably 2015. His business partner, partner Gary Tarno. Big 2017 clients included Plax- know it best as the rm that former Mayor Giuliani Michelle de Milly, a veteran all Realty, Witko and Jonathan Kalikow’s Gamma

jumped to in 2016 amid the heat of the presiden- of Empire State Develop- DE MILLY Real Estate. ■ JOHNS, GETO & COURTESY OF BOLTON–ST.

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 15

P014_CN_20180402.indd 15 3/30/18 4:06 PM REAL ESTATE WORLD TRADE WAR The owner of the World Trade Center and the group created to promote it are battling over who controls the iconic site’s name BY AARON ELSTEIN

cott Ferguson fondly remembers working in the World Trade Center. “My o ce was on the fourth oor, overlooking the harbor,” he recalls. “In Halifax.” No one would ever confuse the Nova Scotia capi- Stal’s World Trade Center with the old Twin Towers, but the fact remains that scores of cities feature buildings called the World Trade Center, including Helsinki, Panama City, Bangalore and, until recently, Hackensack, N.J. e business of naming buildings the World Trade Center could fairly be described as monumental. Fergu- son is chief executive of the World Trade Centers Association, a nonprot that charges its more than 300 members an initiation fee of $250,000 and

FERGUSON’S group claims ownership of the World Trade Center name, but he refused to be photographed anywhere near the site itself. BUCK ENNIS

16 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018 MISSION annual dues of $12,500 CONTROL for the right to christen their building a World ONE WORLD Trade Center is now as much icon as asset. Trade Center. “e brand stands $5.8M for connecting people WORLD TRADE CENTER around the world and ASSOCIATION’S total creating economic, trade revenue in 2016 and investment oppor- tunities,” Ferguson said from his Lower Manhat- % tan o ce, which is not in the World Trade Center. 91 “With all the butting of PERCENTAGE of that heads around taxes and revenue spent on taris, that’s a positive salaries ($2.5M) and message.” legal fees ($2.8M) It may be a positive message, but in the eyes of the Port Authority of New York and New Jersey, which built and owns the World Trade Center site, Ferguson’s rm has no right to deliver it. e Port Authority says the WTCA has been wrongly prof- iting o the World Trade Center brand for decades and is demanding the name back. Aer nearly three years of duking it out in court, both sides have made their nal arguments and await a decision from a federal judge. e Port Authority contends in a court ling that Ferguson’s nonprot “presses a deeply counter- intuitive argument” that the authority, “which … disliked building.” in 2014 a record $1.6 billion worth of unrated bonds was statutorily empowered to build the World Trade “e buildings at rst didn’t fulll expectations,” were issued on behalf of the WTC. Center during the 1960s; built the World Trade Cen- said Chris Ward, a former Port Authority executive With control of a lucrative name at stake, the ter during the 1970s; occupied the World Trade Cen- director, “so it seemed in everyone’s benet to set up WTCA and the Port Authority declared war on each ter for decades; and rebuilt the World Trade Center an organization to promote the World Trade Center.” other in 2015, a few months aer the attorney gen- at great expense aer 9/11, does not own the World A year before retiring from the authority in 1987, eral nished his investigation. e nonprot brought Trade Center trademark. … is dees common Tozzoli acquired the complex’s naming rights and a trademark infringement suit aer the 1 World sense.” e agency declined to comment further. helmed the WTCA from an o ce on the 77th oor of Trade Center observatory began selling unlicensed Ferguson’s side insists the Port Authority is merely the north tower. e amazingly cheap $10 sale price merchandise. e authority countersued and led a trying to renege on a 1986 agreement in which it sold agreed to by his former employer remained a secret motion to dismiss part of the case; it was denied. the WTC’s naming rights—for a mere $10. until seven months aer Tozzoli died in 2013, when Ferguson, who became the WTCA’s CEO two “It is perhaps unremarkable that an agency best e Record newspaper in New Jersey revealed it. years ago, said he is focused on spreading the World known recently for concocting ‘tra c problems in at scoop also showed that in 2011, Tozzoli supple- Trade Center brand farther and wider. Aer all, the Fort Lee’ would conjure up such a baseless, similar mented his Port Authority pension with a $626,000 more buildings named World Trade Center, the illusion,” the nonprot chided in a legal ling. salary for one hour of work per week at his nonprot. harder it would be for the Port Authority to prove at the WTCA, with just about $6 million in Gov. Andrew Cuomo demanded an investigation. that it is the rightful owner of the name. annual revenue (see “Mission Control, above”), has “e World Trade Center has become a public “Five hundred members is within our reach,” he more than a puncher’s chance of prevailing against symbol of our city, state and nation,” Cuomo said, said, adding that his organization is looking to add a foe with more than $5 billion in 10 to 15 new ones each year and is revenue stands as a testament to its targeting developers in Midwest- founder, Guy Tozzoli, a former Port “AT FIRST, THE TOWERS DIDN’T FULFILL ern states and Asia, among other Authority o cial who was arguably EXPECTATIONS. IT SEEMED TO locations. “We’re not just a big-city the most important gure in the con- br an d .” struction of the original World Trade EVERYONE’S BENEFIT TO CREATE AN Although legal costs consumed Center. Tozzoli not only supervised nearly half of the WTCA’s revenue the development, but he also hired ORGANIZATION TO PROMOTE THEM” in 2016, according to a tax ling, the architect who designed the Twin Ferguson said his group can aord Towers, put the Windows of the the expense. It doesn’t really have a World restaurant on top of one and used the exca- adding that Tozzoli bought the naming rights with- choice, because losing in court would surely mean vated landll to create Battery Park City. out the approval of the Port Authority’s board or its the end of the organization. Ferguson said he would “He made it all happen,” said Eric Darton, author executive director. “It is troubling that an organiza- like to return the nonprot’s headquarters to the of Divided We Stand: A Biography of New York’s World tion has made millions of dollars o the sale of what World Trade Center. At least for now, though, rela- Trade Center. “Tozzoli was a New Jersey guy as com- in essence belongs to the public.” tions are so frosty that he refused to be photographed fortable talking to the merchants on Radio Row as he e attorney general’s investigation concluded in anywhere the tower was visible in the background. was to a Rockefeller.” 2015 with the WTCA returning to the state $184,000 Darton says the legal battle between the World in fees paid by the Port Authority between 1991 and Trade Center’s owner and its promoter highlights Buildings to brand 2011 for the World Trade Center name. e WTCA a conict at the heart of the development: It is an In 1969 Tozzoli launched what became the World also waived membership fees in perpetuity for the important part of New York’s skyline and history, and Trade Centers Association to promote interna- agency, which the attorney general’s o ce said “exer- the tower’s resurrection serves as an emphatic asser- FERGUSON’S group claims tional commerce and extend the brand of the World cised lax oversight” when selling the naming rights. tion of the city’s exceptional importance in global ownership of the World Trade It also acknowledged that guring out what had been commerce. Even so, from the start the site has been Center name, but he refused Trade Center which, aer opening in 1973, needed to be photographed anywhere all the help it could get. Millions of square feet of agreed to long ago was complicated by the fact that seen and marketed as a symbol of the power of trade near the site itself. o ce space in the Twin Towers remained vacant for many relevant documents were lost on 9/11. No to unite a fractured world. years, the result of the city’s deteriorating economy charges were led. Which view the judge nds most compelling will and the fact that many people didn’t want to work In the meantime, it had become clear that the World determine the outcome of this battle. in a building where reaching the high oors meant Trade Center brand was valuable. One sign: Although “What I see is two imbeciles ghting over some- changing elevators—twice. Architecture critic Paul many institutional investors won’t buy bonds unless thing much larger than they are,” Darton said. “e Goldberger dubbed the WTC “New York’s most they’re rst rated by Moody’s or Standard & Poor’s, situation is at once hilarious and absurd.” ■

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 17 TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected]

PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION of Wollman Notice of Qualification of BROOKFIELD NOTICE OF FORMATION OF 8870 LINK, Notice of Formation of POETIC Consultants LLC. Articles of Organiza- STRATEGIC REAL ESTATE PARTNERS III- LLC. Articles of Organization filed with GROUP LLC Arts. of Org. filed with tion filed with the Secretary of State of A L.P. Appl. for Auth. filed with Secy. of the Secretary of State of NY (SSNY) on Secy. of State of NY (SSNY) on 02/ New York (SSNY) on December State of NY (SSNY) on 02/14/18. Of- February 26, 2018. Office location: 06/18. Office location: NY County. 15th,2017. Location: Richmond Coun- fice location: NY County. LP formed in NEW YORK County. SSNY has been SSNY designated as agent of LLC ty. SSNY designated as agent for serv- Delaware (DE) on 07/11/17. Princ. of- designated as agent upon whom proc- upon whom process against it may ice of process on LLC. SSNY shall mail fice of LP: Brookfield Place, 250 Vesey ess against it may be served. The Post be served. SSNY shall mail process a copy of process to: Andriena Wollman St., 15th Fl., NY, NY 10281. Duration Office address to which the SSNY shall to c/o Adam Berkowitz, 1330 Ave. 55 Ionia Ave, Staten Island, N.Y. of LP is Perpetual. SSNY designated as mail a copy of any process against the of the Americas, 14th Fl., NY, NY 10312 Purpose: Any lawful purpose. agent of LP upon whom process 8870 LINK, LLC served upon him/her 10019. Purpose: Any lawful activity. against it may be served. SSNY shall is: 10091 Park Run Drive Ste 200 Las mail process to the Partnership at the Vegas, Nevada 89145.The principal ALL PRO OPERATIONS LIMITED LIABILI- Notice of Qualification of PINZ CAPITAL princ. office of the LP. Name and addr. business address of the LLC is: 10091 TY COMPANY, Arts. of Org. filed with SPECIAL OPPORTUNITES USA, LP Appl. of each general partner are available Park Run Drive Ste 200 Las Vegas, Ne- the SSNY on 01/23/2018. Office loc: for Auth. filed with Secy. of State of NY from SSNY. DE addr. of LP: Corporation vada 89145. Purpose: any lawful act or NY County. SSNY has been designated (SSNY) on 03/07/18. Office location: Service Co., 251 Little Falls Dr., Wil- activity. as agent upon whom process against NY County. LP formed in Delaware (DE) the LLC may be served. SSNY shall mington, DE 19808. Cert. of LP filed Notice of formation of KH 205 Smith on 02/27/18. Duration of LP is Perpet- mail process to: Fawwaz Ali, 451 Shep- with DE Secy. of State, Dept. of State, LLC. Arts of Org filed with Secy of State ual. SSNY designated as agent of LP herd Avenue, Brooklyn, NY 11208. Pur- Div. of Corps., John G. Townsend Bldg., of NY (SSNY) on 11/10/17. Office loca- upon whom process against it may be pose: Any Lawful Purpose. P.O. Box 898, Dover, DE 19903. Pur- pose: Any lawful activity. tion: NY Cnty. SSNY designated agent served. SSNY shall mail process to the upon whom process may be served and Partnership, 150 E. 52nd St., 29th Fl., Notice of Formation of BLUE BOAT DA- NOTICE of OF LAW OFFICES FORMA- shall mail copy of process against LLC NY, NY 10022. The regd. agent of the TA LLC Arts. of Org. filed with Secy. of TION OF JARRETT ADAMS, PLLC, Arts of to principal business address: 511 Ca- company upon whom and at which proc- State of NY (SSNY) on 03/15/18. Of- Org filed with Secy. of State of NY nal St. 6th Fl. NY, NY 10013. Purpose: ess against the company can be served fice location: NY County. SSNY desig- (SSNY) on 11/16/17. Office location: any lawful act. is Matthew Pinz, c/o Pinz Capital Man- nated as agent of LLC upon whom proc- NY County. SSNY designated agent agement, LP, 150 E. 52nd St., 29th ess against it may be served. SSNY upon whom process may be served and Notice of Formation of EGS CAPITAL, Fl., NY, NY 10022. Name and addr. of shall mail process to Corporation Serv- shall mail copy of process against PLLC LLC Arts. of Org. filed with Secy. of each general partner are available from ice Co., 80 State St., Albany, NY to 561 10th Ave, Unit 310, NY. NY, State of NY (SSNY) on 03/05/18. Of- SSNY. DE addr. of LP: 251 Little Falls 12207-2543, regd. agent upon whom 10036. fice location: NY County. SSNY desig- Dr., Wilmington, DE 19808. Cert. of LP and at which process may be served. nated as agent of LLC upon whom proc- filed with Secy. of State of the State of Purpose: Any lawful activity. Notice of Formation of VIPVR, LLC ess against it may be served. SSNY DE, 401 Federal St., Dover, DE 19901. Arts. of Org. filed with Secy. of State shall mail process to c/o Timothy P. Purpose: Any lawful activity. NOTICE OF FORMATION OF HUT CON- of NY (SSNY) on 02/12/18. Office lo- Terry, 667 Madison Ave., 24th Fl., NY, SULTING LLC. Articles of Organization cation: NY County. Princ. office of NY 10065. Purpose: Any lawful activity Notice of Formation of 174-176 1st Ave- filed with the Secretary of State of NY LLC: Attn: Prajit Gopal, 2373 Broad- nue Investors LLC. Arts. of Org. filed (SSNY) on 1/26/18. Office location: way, Apt. #1723, NY, NY 10024. Notice of Formation of ARTEMESIA SPE with Secy. of State of NY (SSNY) on 03 NEW YORK County. SSNY has been SSNY designated as agent of LLC LLC Arts. of Org. filed with Secy. of /14/18. Office location: NY County. designated as agent upon whom proc- upon whom process against it may be State of NY (SSNY) on 02/15/18. Of- SSNY designated as agent of LLC upon ess against it may be served. The served. SSNY shall mail process to fice location: NY County. SSNY desig- whom process against it may be Post Office address to which the the LLC at the addr. of its princ. of- nated as agent of LLC upon whom proc- served. SSNY shall mail process to: c/ SSNY shall mail a copy of any process fice. Purpose: Any lawful activity. ess against it may be served. SSNY against the LLC served upon him/her shall mail process to c/o Royalton Capi- o Highpoint Property Group, 20 West is: C/O HARUMI URATA-THOMPSON tal, LLC, 18 E. 48th St., 19th Fl., NY, 22nd St., Ste. 1601, NY, NY 10010, 200 WEST 54TH ST., APT. 7 NEW PARKER MARTIN VENTURES LLC filed NY 10017. Purpose: Any lawful activity. Attn: Drew Popkin. Purpose: any lawful YORK, NEW YORK 10019. The princi- Arts. of Org. with the NY Sect’y of activities. pal business address of the LLC is: C State (SSNY) on 2/5/2018. Office lo- Block Party Films LLC. Art. of Org. filed cated in NY County. SSNY has been /O HARUMI URATA-THOMPSON 200 with the SSNY on 01/16/18. Office: Notice of Qualification of KISMET LIFE designated as agent of the LLC upon WEST 54TH ST., APT. 7 NEW YORK, New York County. SSNY designated as LLC Appl. for Auth. filed with Secy. of whom process against it may be NEW YORK 10019. Purpose: any law- agent of the LLC upon whom process State of NY (SSNY) on 02/20/18. Office served. SSNY shall mail process to: ful act or activity against it may be served. SSNY shall location: NY County. LLC formed in Dela- 176 E. 71st St. Apt 10B, NY NY mail copy of process to the LLC, 140 W ware (DE) on 10/31/17. Princ. office of 10021. Purpose: any lawful act. Notice of Formation of PAUL ARNHOLD 70th St, Apt 3R, New York, NY 10023. LLC: 227 W. 77th St., Apt. 5B, NY, NY GLASS, LLC Arts. of Org. filed with Purpose: Any lawful purpose. 10024. SSNY designated as agent of Notice of Formation of TRIPLE D LEND- Secy. of State of NY (SSNY) on 03/ LLC upon whom process against it may ER LLC Arts. of Org. filed with Secy. of Notice of Qualification of ElliptiCurve 06/18. Office location: NY County. be served. SSNY shall mail process to State of NY (SSNY) on 03/23/18. Of- Capital Management LP Appl. for Auth. Princ. office of LLC: 500 W. 21st St., the LLC at the princ. office of the LLC. fice location: NY County. SSNY desig- filed with Secy. of State of NY (SSNY) #4A, NY, NY 10011. SSNY designated DE addr. of LLC: c/o Corporation Service nated as agent of LLC upon whom proc- on 01/09/18. Office location: NY Coun- as agent of LLC upon whom process Co., 251 Little Falls Dr., Wilmington, DE ess against it may be served. SSNY ty. LP formed in Delaware (DE) on 01/ against it may be served. SSNY shall 19808. Cert. of Form. filed with Jeffrey shall mail process to the LLC, Attn: 04/18. Princ. office of LP: 135 E. 57th mail process to Paul Arnhold at the W. Bullock, Townsend Bldg., Federal St., General Counsel, One Bryant Park, NY, St., 8th Fl., NY, NY 10022. Duration of princ. office of the LLC. Purpose: Any #4, Dover, DE 19901. Purpose: Any law- NY 10036. Purpose: Any lawful activity. LP is Perpetual. SSNY designated as lawful activity. agent of LP upon whom process ful activity Notice of Qualification of SOVEREIGN against it may be served. SSNY shall NOTICE OF FORMATION of JOEL J. BA- VALUE-ADD & INCOME STRATEGY, LLC mail process to Attn: Stephen L. NOTICE OF FORMATION OF Little Light- UER, M.D. PLLC. Articles of Organiza- Appl. for Auth. filed with Secy. of State Moskowitz, 225 E. 63rd St., Apt. 7C, house Licensed Behavior Analyst and tion were filed with the Secretary of of NY (SSNY) on 02/21/18. Office lo- NY, NY 10065. Name and addr. of Psychologist Support, PLLC. Articles of State of New York (SSNY) on 1/ cation: NY County. LLC formed in Dela- each general partner are available from Organization filed with the Secretary of 12/2018. Office location: New York ware (DE) on 02/01/18. SSNY desig- SSNY. DE addr. of LP: c/o Corporation NY (SSNY) on 2/26/2018. Office loca- County. SSNY has been designated as nated as agent of LLC upon whom Service Co., 251 Little Falls Dr., Wil- tion: New York County. SSNY has been agent of the LLC upon whom process process against it may be served. mington, DE 19808. Cert. of LP filed designated as agent upon whom proc- against it may be served. SSNY shall SSNY shall mail process to the LLC, c with Secy. of State of the State of DE, ess against it may be served. The prin- mail a copy of any process to the LLC c /o Sovereign Partners, LLC, 747 Third Div. of Corps., John G. Townsend Bldg., cipal business address of the PLLC and /o Levy, Stopol & Camelo, LLP, 1425 Ave., 37th Fl., NY, NY 10017. DE Federal & Duke of York Sts., Dover, DE the Post Office address to which the RXR Plaza, Uniondale, NY 11556-1425. addr. of LLC: 251 Little Falls Dr., Wil- 19901. Purpose: Any lawful activity. SSNY shall mail a copy of any process Purpose: For any lawful purpose. mington, DE 19808. Cert. of Form. against the PLLC is Dr. Ivana filed with DE Secy. of State, 401 Fed- Notice of Qualification of 30 PARK Krstovska-Guerrero, 99 Hillside Ave, Notice of formation of limited liability eral St., Ste. 4, Dover, DE 19901. PLACE UNIT 74A-1 LLC Appl. for Auth. Apt 16 J, New York, NY 10040. Pur- company (LLC). Name: 529, LLC. Arti- Purpose: Any lawful activity filed with Secy. of State of NY (SSNY) pose: Any lawful act or activity cles of Organization filed with Secretary . on 02/28/18. Office location: NY Coun- of State of New York (SSNY) on 11/ Notice of Formation of 174-176 1st Ave- ty. LLC formed in Delaware (DE) on 11/ 03/2017. NY office location: New York nue Sponsor LLC. Arts. of Org. filed 01/17. SSNY designated as agent of NOTICE OF FORMATION OF DANY & County. SSNY has been designated as with Secy. of State of NY (SSNY) on 03 LLC upon whom process against it may XANDER, LLC. Articles of Organization agent of the LLC upon whom process /14/18. Office location: NY County. be served. SSNY shall mail process to filed with the Secretary of State of NY against it may be served. The post of- SSNY designated as agent of LLC upon c/o Corporation Service Co., 80 State (SSNY) on 02/13/18. Office: NEW fice address to which the SSNY shall whom process against it may be St., Albany, NY 12207-2543. DE addr. YORK County. SSNY designated as mail a copy of any process against the served. SSNY shall mail process to: c/ of LLC: 251 Little Falls Dr., Wilmington, agent upon whom process against it LLC served upon him/her is Cayla o Highpoint Property Group, 20 West DE 19808. Cert. of Form. filed with DE may be served. SSNY shall mail a copy O’Connell, 263 Ninth Avenue 7D New 22nd St., Ste. 1601, NY, NY 10010, Secy. of State, John G. Townsend of any process to the LLC, 1636 3rd York, NY 10001. Purpose/character of Attn: Drew Popkin. Purpose: any lawful Bldg., 401 Federal St., Dover, DE Ave, STE 101 New York NY 10128. Pur- LLC: Any Lawful Purpose. activities. 19901. Purpose: Any lawful activity. pose: any lawful act or activity

18 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018 TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected]

PUBLIC & LEGAL NOTICES

Notice of Qualification of TG 29 HOSPI- Notice of Qualification of EMERGING Notice of Qualification of HARVEST Notice of Formation of YU-KING WONG TALITY, LLC Appl. for Auth. filed with VARIANT PARTNERS A LP Appl. for EDGE GLOBAL RISK PREMIA EQUITY, D. C., PLLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/ Auth. filed with Secy. of State of NY LP Appl. for Auth. filed with Secy. of Secy. of State of NY (SSNY) on 3/ 23/18. Office location: NY County. LLC (SSNY) on 02/16/18. Office location: State of NY (SSNY) on 03/05/18. Of- 13/18. Office location: NY County. formed in Delaware (DE) on 02/21/18. NY County. LP formed in Delaware (DE) fice location: NY County. LP formed in SSNY designated as agent of LLC upon Princ. office of LLC: 2 Pennsylvania Pla- on 02/12/18. Princ. office of LP: 3 Co- Delaware (DE) on 02/28/18. Princ. of- whom process against it may be za, 19th Fl., NY, NY 10121. SSNY des- lumbus Circle, 15th Fl., NY, NY 10019. fice of LP: Harvest Volatility Manage- served. SSNY shall mail process to: c/ ignated as agent of LLC upon whom Duration of LP is Perpetual. SSNY desig- ment, LLC, The Graybar Bldg., 420 Lex- o Yu-King Wong, 1441 Broadway, Ste. process against it may be served. nated as agent of LP upon whom proc- ington Ave., Ste. 2620, NY, NY 10170. 5052, NY, NY 10018. Purpose: to prac- SSNY shall mail process to c/o Corpo- ess against it may be served. SSNY Duration of LP is Perpetual. SSNY desig- tice the profession of Chiropractic. shall mail process to Attn: Santiago nated as agent of LP upon whom proc- ration Service Co., 80 State St., Alba- Jariton at the princ. office of the LP. ess against it may be served. SSNY ny, NY 12207-2543. DE addr. of LLC: Notice of Qualification of HIPPOCRATES Name and addr. of each general part- shall mail process to the Partnership, 251 Little Falls Dr., Wilmington, DE VENTURES, LLC Appl. for Auth. filed ner are available from SSNY. DE addr. Attn: Curtis F. Brockelman, Jr., 420 Lex- 19808. Cert. of Form. filed with DE with Secy. of State of NY (SSNY) on 03 of LP: c/o Corporation Service Co., 251 ington Ave., Ste. 2656, NY, NY 10170. Secy. of State, Div. of Corps., John G. /15/18. Office location: NY County. Little Falls Dr., Wilmington, DE 19808. Name and addr. of each general part- Townsend Bldg., 401 Federal St., Ste. LLC formed in Delaware (DE) on 03/ Cert. of LP filed with Secy. of State of ner are available from SSNY. DE addr. 4, Dover, DE 19901. Purpose: Any law- 07/18. SSNY designated as agent of the State of DE, Div. of Corps., John G. of LP: c/o Corporation Service Co., 251 ful activity. LLC upon whom process against it may Townsend Bldg., Federal & Duke of Little Falls Dr., Wilmington, DE 19808. Formation of First Tracks Management, be served. SSNY shall mail process to York Sts., Dover, DE 19901. Purpose: Cert. of LP filed with Secy. of State of LLC filed with the Secy. of State of NY c/o Corporation Service Co., 80 State Any lawful activity. the State of DE, Div. of Corps., John G. (SSNY) on 1/10/18. Office loc.: NY Townsend Bldg., Federal & Duke of St., Albany, NY 12207-2543. DE addr. County. SSNY designated as agent of of LLC: 251 Little Falls Dr., Wilmington, Notice of Formation of FP NEW CITY LLC York Sts., Dover, DE 19901. Purpose: LLC upon whom process against it may DE 19808. Cert. of Form. filed with Arts. of Org. filed with Secy. of State of Any lawful activity. be served. The address SSNY shall Secy. of State, Div. of Corps., 401 Fed- NY (SSNY) on 01/31/18. Office location: mail process to 750 Third Ave., 33rd eral St., Ste. 4, Dover, DE 19901. Pur- NY County. Princ. office of LLC: 270 Notice of Qualification of CS ADJACENT Fl., New York, NY 10017. Purpose: pose: Any lawful activity. Madison Ave., Ste. 1801, NY, NY INVESTMENT PARTNERS GP, LLC Any lawful activity. 10016. SSNY designated as agent of Appl. for Auth. filed with Secy. of State LLC upon whom process against it may of NY (SSNY) on 03/02/18. Office loca- NOTICE OF FORMATION OF Notice of Qualification of 30 PARK be served. SSNY shall mail process to tion: NY County. LP formed in Delaware ChampionsEdge, LLC. Articles of Or- PLACE UNIT 74A LLC Appl. for Auth. the LLC at the addr. of its princ. office. (DE) on 02/09/18. Duration of LP is ganization filed with the Secretary of filed with Secy. of State of NY (SSNY) Purpose: Any lawful activity. Perpetual. SSNY designated as agent State of NY (SSNY) on 2/16/18. Of- on 02/28/18. Office location: NY Coun- of LP upon whom process against it fice location: New York County. SSNY ty. LLC formed in Delaware (DE) on 05/ E. 8th St. Associates LLC-Arts. of Org. may be served. SSNY shall mail proc- has been designated as agent upon 31/17. SSNY designated as agent of filed with Secy. of State of NY (SSNY) ess to c/o CapitalSpring, 575 Lexing- whom process against it may be LLC upon whom process against it may on 2/1/18. Office location: NY Co. ton Ave., NY, NY 10022. Name and served. The post office address to be served. SSNY shall mail process to SSNY designated as agent of LLC upon addr. of each general partner are availa- which SSNY shall mail a copy of proc- c/o Corporation Service Co., 80 State whom process against it may be ble from SSNY. DE addr. of LP: Corpora- ess against LLC served upon him/her St., Albany, NY 12207-2543. DE addr. served. SSNY shall mail process to: c/ tion Service Co., 251 Little Falls Dr., is: 7014 13th Avenue, Suite 202, of LLC: 251 Little Falls Dr., Wilmington, o Myles Horn, 152 W. 57th St., NY, NY Wilmington, DE 19808. Cert. of LP filed Brooklyn, NY 11228. The principal; DE 19808. Cert. of Form. filed with DE 10019. Principal address: 152 W. 57th with Secy. of State, State of DE, Dept. business address of the LLC is 411 Secy. of State, John G. Townsend St., NY, NY 10019. Purpose: Any law- of State, Townsend Bldg., Dover, DE East 57th Street. Purpose: any lawful Bldg., 401 Federal St., Dover, DE ful activities. 19901. Purpose: Any lawful activity. act or activity. 19901. Purpose: Any lawful activity.

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 19 GOTHAM GIGS

MUNSON’S Brooklyn Roasting Co. has nine city locations.

BY LANCE PIERCE

Early riser builds a fresher cup Brooklyn Brewery alumnus switches to roasting coffee locally

im Munson had spent a decade in sales, opera- Trade–certied and connoisseur-quality beans. Munson tions and management at Brooklyn Brewery as that had traveled in Ethiopia, Nicaragua, Sumatra and other JIM MUNSON company revived interest in making and drinking impoverished coee-producing locales. “I wanted to do locally produced beer—leading a national trend. my part as someone in a consuming country to help those BORN Iowa City, Iowa J But Munson’s own lifestyle had changed. A er farmers out,” he said. RESIDES Williamsburg the birth of his rst daughter 18 years ago, he no He bought a $200,000 Kestrel coee-roasting machine EDUCATION Bachelor’s in political longer wanted to keep beer-drinker’s hours. and brought on a managing partner, Michael science, Williams College “I went to sleep with a beer in my hand and I went to Pollack. e plan was to roast high-end beans BADGE OF HONOR Inspired woke up to the smell of coee,” he said. “ with a sustainable pedigree in Dumbo and sell by the success of Milton Glazer’s Munson saw an opportunity in the coee sleep with them wholesale. But a er an early gig selling Brooklyn Brewery logo, Munson designed his with overlapping, multi- market. “Coee is unregulated, and people a beer and coee on the East River Ferry, the partners color letters spelling the brand’s drink more of it” than beer, he said. He le woke up soon realized they could build a retail busi- home borough. The hues have var- the brewery in 2001 to learn the coee busi- to the smell ness too. ey now have nine stores—eight ied but not the look. “Just like New ness, taking a position at Dallis Bros. Coee, in Brooklyn and one in Manhattan—and 230 York,” he said, “the colorful charac- of coffee ters change, but the outline doesn’t.” a third-generation coee roaster in Queens. ” wholesale customers including WNYC and His timing was excellent. Gourmet roast- the Brooklyn Academy of Music. “Coee sup- NAMESAKES Munson introduced ers from the West Coast and Chicago had begun to send ports the life of the mind,” Munson said. his daughters—now age 18 and 16—to coffee when they were tod- their specialty beans to coee shops in New York, but no Last year the company moved its headquarters to the dlers, and their love for it rivals his. similar roaster had percolated yet in the city. at was a Brooklyn Navy Yard, building out 19,000 square feet with The company’s espresso is named problem for local coee lovers. “Roasted coee doesn’t an automated roaster and room for classes and cupping after his older daughter, Iris. Maple travel well; it hates to y, and it hates time,” said Ken Nye, demonstrations. Munson said he expanded because he Shay, from Munson’s nickname for daughter Sasha Ray, is the only a- founder of pioneer Ninth Street Espresso. In 2008, a year believes he can build a signicant business in New York vored offering at Brooklyn Roasting a er Dallis sold its business to a Brazilian rm, Munson and because it makes sense to roast coee locally. stores. It’s a mix of coffee, cream was ready to start the Brooklyn Roasting Co. “Starting a coee company in your own city is good,” and maple syrup.

BUCK ENNIS He found his niche at the intersection of Fair he said. — CARA EISENPRESS

20 | CRAIN’S NEW YORK BUSINESS | APRIL 2, 2018

P020_CN_20180402.indd 20 3/30/18 7:45 PM SNAPS

Changing the world with the arts ArtsConnection held its annual bene t March 12 to celebrate 40 years of providing support to arts education programs in 120 city schools. Jordan Smith, winner of season nine of e Voice, entertained the 250 guests. Brian Williams, MSNBC host and event master of ceremonies, spoke about the arts as a path- way to understanding complex issues during challenging times.

Linda Janklow, founding chair of Honoree Richard Plepler, chairman and ArtsConnection, and Frank Hernandez, CEO of HBO; honoree Lisa Plepler, chair- principal of P.S. 49 in the Bronx and recipient woman of the board of ArtsConnection; and of the 2018 Janklow Award, during the event David Remnick, editor of e New Yorker at the Rainbow Room. It raised $1.3 million. and the evening’s special presenter.

Celebrating eight decades of contributions It is never too late to become a bookworm Literacy Partners held its annual Evening of Readings and gala dinner March 14 at Cipriani Wall Street. e event raised more than $1 million to help end adult illiteracy. Joni Evans, publisher, writer, editor and literary agent, was honored at the gala, and NBC News legal correspondent Cynthia e New Jewish Home held its h annual Eight Over Eighty bene t March 12 at the McFadden served as master Ziegfeld Ballroom. e event raised $1.1 million to support rehabilitation and health of ceremonies. care programs for 12,000 older individuals. Grammy-winning record producer Clive Davis, an event honoree, and Eva Mohr, senior global real estate adviser at Sothe- by’s International Realty, were among the guests.

Michael Luskin, a partner at Luskin, Stern & Eisler and chair of e New Jewish Home’s board of directors; Elizabeth McCormack, honoree and philanthropist; and Dr. Jeffrey Farber, president and CEO of e Honoree Randy Falco, president and CEO of Univision Communications, New Jewish Home. and Enrique Acevedo, Univision anchor and special correspondent, were among the guests.

BRIAN HATTON PHOTOGRAPHY, ANN BILLINGSLEY PHOTOGRAPHY, BFA ANN BILLINGSLEY PHOTOGRAPHY, PHOTOGRAPHY, BRIAN HATTON SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL [email protected].

APRIL 2, 2018 | CRAIN’S NEW YORK BUSINESS | 21

P021_CN_20180402.indd 21 3/30/18 2:20 PM FOR THE RECORD*

NEW IN TOWN of Manhattan plans to move from 530 Paramount Group, had a Studley represented the deal was $500 per square 629 W. 54th St. Fifth Ave. e asking rent broker. Warwick Capital tenant. foot. Sage Realty Corp. ■ Clyde’s Caribbean Bar e luxury automobile for the sublease, which will Management represented represented the landlord, 178 N. Eighth St., Brooklyn dealer led for Chapter run through mid-2024, the tenant. ■ Pergola signed a William Kaufman Organi- Chris Leacock, one-third 11 bankruptcy protection was $125 per square foot. 9,900-square-foot lease zation. CBRE brokered for of electronic music group March 9. e ling cites CBRE brokered for the ■ HaiDiLao signed a lease at 116 E. 16th St. e the tenant. Major Lazer, opened a bar estimated assets of $500,001 sublandlord, AlixPartners. for 12,000 square feet Mediterranean-themed and lounge specializing in to $1 million and liabili- Newmark Knight Frank at 38-18 Union St. e restaurant plans to open ■ Ralph & Russo agreed to Trinidadian cocktails. It ties of $1,000,001 to $10 represented the subtenant. Sichuan-style hot pot chain its second location. e take 5,800 square feet at 680 shares space with Pearl’s, a million. e creditors with is set to open its rst East asking rent was $40,000 per Madison Ave. e British Caribbean restaurant. the largest unsecured claims ■ Swavelle Mill Creek Fab- Coast location, at Flush- month. RKF brokered for haute couture retailer plans are Liberty Glass, owed rics agreed to take 13,700 ing Commons, in about a the tenant. e landlord, to open its rst store in the ■ Junie Bee Nails $12,265; Stream Cos., owed square feet at 300 Park year. e asking rent for Samco Properties, was city, between East 61st and 2330 Adam Clayton $11,800; and Oxford Health Ave. South. e upholstery, the 15-year deal was $75 represented in-house. 62nd streets. e asking Powell Jr. Blvd. Plans, owed $9,088. drapes and bedding maker per square foot. Colliers rent for the 15-year deal was Singer and dancer plans to move from 15 E. International handled the ■ Wells Fargo renewed its $1,500 per square foot. e Teyana Taylor opened a 26th St. e asking rent deal for the developers, lease for its 7,206-square- landlord, or Equities, was ’90s- inspired nail salon STOCK EXCHANGES for the 10-year deal was in a partnership between foot agship branch at represented in-house. Isaacs in Harlem. the $70s per square foot. F&T Group, Rockefeller 437 Madison Ave. e and Co. handled the deal for ■ Steven Madden (SHOO-O) Cushman & Wakeeld rep- Group and AECOM. Savills asking rent for the ve-year the tenant. ■ ■ The Cords & Co. CEO Edward Rosenfeld resented the landlord, Rock- 160 Spring St. sold 33,000 shares of com- rose Development Corp. e founders of mon stock for $45.82 per Newmark Knight Frank Happy Socks opened a share March 16 in a transac- represented the tenant. DEALS ROUNDUP corduroy-only clothing tion worth $1,512,060. He TRANSACTION SIZE BUYERS/ store in SoHo. now holds 479,007 shares. ■ Bravo inked a deal for TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE 10,092 square feet at 42 W. Orbotech Ltd./Clal Financial $3,511.1 KLA-Tencor Corp. SB M&A ■ The Phluid Project ■ Alcentra Capital 39th St. e construction Management Ltd; Renaissance 684 Broadway (ABDC-O) and engineering rm moved Technologies Corp. (Manhattan); e city's rst gender- Executive Vice President its headquarters from 14 E. Senvest Management LLC (Manhattan) inclusive clothing store Branko Krmpotic bought 38th St. last month. e ask- Stewart Information Services $1,206.6 Fidelity National Financial Inc. SB M&A debuted in NoHo. e shop 10,000 shares of common ing rent for the nearly eight- Corp./Basswood Capital Management LLC (Manhattan); is also an event venue. stock for $6.15 per share year deal was $44 per square Bulldog Investors LLC; Driehaus Capital March 20 in a transaction foot. e landlord, Adams Management LLC; Starboard Value LP worth $61,500. He now & Co., was represented (Manhattan) MOVES AND EXPANSIONS holds 14,000 shares. in-house. Coldwell Banker Barclays PLC $807.8 Sherborne Investors GCI Commercial Advisors repre- Management (Guernsey) LLC ■ Seamore’s ■ Yext (YEXT-N) sented the tenant. (Manhattan) 66 Water St., Brooklyn CFO Steven Cakebread sold Extant Components Group $525 TransDigm Group Inc. SB M&A Michael Chernow opened 10,000 shares of common ■ Noble Markets signed a Holdings Inc./Warburg Pincus LLC the fourth of his seafood stock for $12.27 per share sublease for 10,000 square (Manhattan) restaurants, in Dumbo. March 15 in a transaction feet at 532 Broadway. Canal Facilities/NRG Canal LLC $390.3 Stonepeak Infrastructure SB M&A worth $122,712. He now e banking platform and Partners (Manhattan) ■ The Ainsworth holds no shares. nancial tech rm plans 41 industrial warehouses and $358.9 Blackstone Real Estate SB M&A 121 Fulton St. to move from 30 Vesey St. two adjacent lots/FRP Holdings Inc. Advisors (Manhattan) e bar and restaurant Lee & Associates handled The Weinstein Co. Holdings $310 Lantern Entertainment LLC SB M&A opened its fourth location, REAL ESTATE the deal for the subtenant. LLC (Manhattan) in the Financial District. Spaces Commercial Real COMMERCIAL Weather Group Television LLC/Bain $300 Entertainment Studios Inc. SB M&A e American menu Estate represented the Capital Private Equity LP; includes the popular mac- ■ Anti-AIDS and -home- sublandlord, Iris.TV. e NBCUniversal LLC (Manhattan); and-cheese burger. lessness nonprot Hous- asking rent was in the high- The Blackstone Group LP (Manhattan) ing Works renewed the $50s per square foot. Rye Patch Gold Corp./Admiral Capital $156.5 Alio Gold Inc. SB M&A 41,000-square-foot lease on Co. Ltd.; Donald Smith & Co. Inc. BANKRUPTCIES its corporate oces at 57 RETAIL (Manhattan); Primevest Capital Corp.; Sun Valley Gold LLC; Van Eck Associates Willoughby St., Brooklyn. ■ Kushner Cos., CIM Corp. (Manhattan) ■ Barraja Inc. Savills Studley represented Group and LIVWRK signed d/b/a Thalia Restaurant the tenant. Newmark a deal for 40,470 square Fujian Seagull Aquatic Co. Ltd. $82.9 iFresh Inc. (Manhattan) (75%) SB M&A 250 W. 50th St. Knight Frank brokered for feet at 85 Jay St., Brook- Grofers India Private Ltd. $61.5 Individual investors; GCI e restaurant led for the owner, Meadow Part- lyn. e partners plan to SoftBank Corp.; Tiger Global Management LLC (Manhattan) Chapter 11 bankruptcy pro- ners. e asking rent was open a sales gallery in the tection March 13. e ling not disclosed. 250,000-square-foot space. 430-bed student development $56.4 AIG Global Real Estate Corp. SB M&A cites estimated assets of $0 e asking rent for the on Oxford Road in Bournemouth/ (Manhattan) Gilltown Ltd. to $50,000 and liabilities ■ Owl Rock Capital four-year deal was $150 per of $500,001 to $1 million. Partners signed a lease for square foot. e owners, Made.com Design Ltd. $55.3 Eight Roads Ventures Europe; GCI 399 Level Equity Management ere were no creditors 25,089 square feet at Triangle Assets and Glacier LLC (Manhattan); Partech Ventures with unsecured claims. Park Ave. e alternative Global Partners, were rep- asset manager plans to move resented in-house. Kushner Selected deals announced for the week ending March 22 involving companies in metro New ■ Harlem Market from 245 Park Ave. and into Cos. represented the tenants York. “SB M&A”: Strategic buyer M&A represents a minority or majority acquisition of exist- 2005 Third Ave. the entire 38th oor of the in-house. ing shares of a company without the participation of a financial buyer. “GCI”: Growth capital investment represents new money invested in a company for a minority stake. e fresh produce store 40-story building. e ask- SOURCE: CAPITALIQ led for Chapter 11 bank- ing rent was $125 per square ■ Bandier inked a deal for ruptcy protection March 19. foot. CBRE represented the 27,500 square feet at 670 GET YOUR NEWS ON THE RECORD e ling cites estimated landlord, Boston Proper- Broadway. e women’s * To submit company openings, moves or real estate deals, or to receive further assets and liabilities of ties. Cushman & Wakeeld activewear brand plans ABOUTinformation,THIS email SECTION [email protected]. $1,000,001 to $10 million. brokered for the tenant. to open its agship retail ere were no creditors location and oces at the For the Record is a listing to help businesspeople in New York nd opportunities, potential with unsecured claims. ■ Access Industries signed 77,500-square-foot NoHo new clients and updates on customers. Bankruptcy lings from the eastern and southern districts of New York are listed alphabetically. Stock transactions are insider transactions a sublease for 25,000 square building. e asking rent at New York companies obtained from Thomson Reuters and listed by size. Real estate ■ Manhattan Automotive feet at 40 W. 57th St. e was $300 per square foot. It listings are in order of square footage. d/b/a Alfa Romeo Fiat industrial investment rm was unclear if the landlord,

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Late check-in ew structures evoke the optimism and wonder of Eero Saarinen’s midcentury TWA terminal at John F. Kennedy Airport. Never mind that it did not keep up with the rapid advances in technol- Fogy that inspired its design. “It was functionally obsolete the day it opened” in 1962, said Tyler Morse, chief executive of MCR Development. Now, years a er the airline went bust and the Port Authority twice failed to repurpose the stunning cast con- crete structure—which was too small to adequately serve the giant planes, like Boeing’s 747, that came to dominate the skies—Morse’s  rm is transforming it into a $265 mil- lion hotel and conference center. Plans call for this main terminal to serve as the lobby, with 505 rooms housed in two new wings being built on each side. Every window will have seven-pane glass that, Morse claims, will give guests the quietest stay of their life despite airliners plying the tarmac nearby. MCR is going to great lengths to capture the feeling of the era. “From the uniforms on employees to the physical plant and the structure,” Morse said, “the building is going to look just like it did when it  rst opened.” — JOE ANUTA BUCK ENNIS

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P023_CN_20180402.indd 23 3/30/18 7:08 PM Kasirer is a full-service New York lobbying and Kasirer LLC 321 Broadway, 2d Floor government relations firm. We advocate on behalf New York, NY Suri Kasirer of a wide range of clients who seek local expertise 10007 Julie Greenberg in navigating the City. Genevieve Michel T: 212 285 1800 We advance our clients’ goals—building coalitions and Omar Alvarellos F: 212 285 1818 consensus and influencing decision-makers in the dynamic Taína Borrero kasirer.nyc political landscape that defines New York. Ilona Kramer [email protected] Peter Krokondelas And our team of professionals, whose careers intersect Chelsea Goldinger at politics, policy and government, achieve victory Omar Toro-Vaca on behalf of our clients with an unwavering commitment Jenna Lauter to the highest standard of ethics in the industry. Jonah Allon Jennie Frishtick Samantha Jones Saga Lisslö Fallon Parker Tracy Fletcher Kayann Imari Eleonora Nicaj Malené Walters Katie Wilson

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