Cooks Push Alternative to Fats

TOP STORIES REPORT Concrete demand BUSINESS OF LAW could harden into a How Bush has been construction crisis good for the ACLU PAGE 2 Plus: top firms ® PAGE 21 Financially pressed firms move to cash in on their leases with sublets VOL. XXII, NO. 44 WWW.NEWYORKBUSINESS.COM OCTOBER 30- NOVEMBER 5, 2006 PRICE: $3.00 PAGE 2 Steaming up the aisles at Duane Cooks push Reade with new line of sex aids alternative PAGE 3 Crain’s endorses Spitzer, Pirro and to fats ban Clinton on Nov. 7 ap images EDITORIAL, PAGE 10 ap images Restaurateurs will Top health officials clash on HIV use Board of Health testing; the GOP hearing to urge side of the story City Council to act THE INSIDER, PAGE 12 BY LISA FICKENSCHER

the city’s restaurant industry hopes to take advantage of a turf war between the Bloomberg administration and the City Council to weaken a controversial plan that ap images bloomberg newsbloomberg

would ban the use of artificial trans landov photo IN TROUBLE: Cleared specialists Kevin Fee, Donald Foley, Robert Scavone and Richard Volpe fats at eateries. OIL CANNED: Health chief Thomas Frieden (clockwise from top left) will probably be fined and could be barred from the industry. Restaurateurs will be out in appears to be taking a hard line on a ban. BUSINESS LIVES force today at a Board of Health HOTEL FAMILY AFFAIR hearing on the proposal, to both Live-iin general managers voice their opposition and suggest month to vote on whether to ratify enjoy the perks but at the that the measure be taken up by the the proposal. cost of privacy PAGE 43 city’s legislative body. They cite a “We understand that it’s a good Traders in limbo, multitude of objections to the thing to get rid of trans fat,” says measure, including the economic Louis Nunez, president of the La- hardships it would pose for small- tino Restaurant Association.“What AT DEADLINE despite acquittals er establishments, a shortage of al- See COOKS on Page 41 ternative oils and the difficulty of NATIONAL FINANCIAL PARTNERS making a switch by July 2007, the OPINION The media must start CORP. could be hurt by Eliot redemption on Oct. 6 when feder- proposed cutoff date. reporting the story right Page 11 Spitzer’s lawsuit alleging bid- Specialists cleared al prosecutors suddenly dropped The board will meet next rigging and anticompetitive of crimes can’t their case. Now, the trader who behavior in the life settlements used to take orders for blue-chip business. Previous probes have restart their careers stocks such as J.P. Morgan Chase already crimped NFP’s growth wants to return to work. (Crain’s, Oct. 16). An NFP amid crackdown “The government made a mis- unit called Advanced take and indicted an innocent At Condé Nast, it’s Settlements was named in five BY AARON ELSTEIN man,” says Mr. Foley’s attorney, of the 20 examples of Franklin Velie.“My client wants to fraudulent activity alleged in donald foley’s 17-year career as go back to the exchange.” print versus digital the New York state attorney a trader at the New York Stock Ex- Not so fast. While Mr. Foley general’s suit, which was filed change started to unravel a couple and three other traders have been last Thursday. UBS analysts of years ago. cleared of criminal wrongdoing, Magazines want believe that 4% of NFP’s In 2004, with a federal investi- they are still facing civil charges TRAFFIC JAM? revenue and earnings could be gation of illegal floor trading gain- from industry regulators for violat- more control over CondéNet’s Web destinations. “eliminated.” ing steam, he was fired by Bank of ing exchange rules. Indeed, Mr. online versions UNIQUE VISITORS America Corp. The next year, he Foley is confronting a formidable SITE (September 2006) THE WORLD SERIES HAS BEEN A was charged with brokering adversary in the NYSE, which is STRIKEOUT for Channel 5. 12,620 fraudulent trades and eager to demonstrate its regulato- BY MATTHEW FLAMM Epicurious.com 1,349,000 According to one media buyer, pocketing more than $310,000 in ry toughness to counter critics who Style.com 867,000 in recent weeks the local Fox illegal profits. say that it allowed the illegal trad- vogue magazine may be the epit- Concierge.com 698,000 station had been selling Mr. Foley—one of 15 traders ing to flourish in the first place. ome of chic, with its trend-defin- See AT DEADLINE on Page 2 indicted in 2005 in a wide-ranging “The traders have more trou- ing editor in chief Anna Wintour Men.Style.com* — crackdown—thought he had won bles ahead,” says David Robbins, a and its mammoth fall and spring *Falls below reporting cutoff of 340,000 unique visitors. Manhattan securities lawyer and issues that help make the title No. Source: Nielsen/NetRatings former compliance director at the 1 in the women’s fashion category. American Stock Exchange. “The Vogue’s online version, however, is stock exchange won’t be influ- another story. Ratings minimum reporting level enced by the outcome of the crim- As part of destination site of 340,000 unique visitors. ELECTRONIC EDITION inal cases.” Style.com, which includes content But neither Ms. Wintour nor The cases against Mr.Foley and from sister title W, the Vogue chan- Vogue Publisher Tom Florio is to See SPECIALISTS on Page 42nel falls below the Nielsen/Net See AT CONDÉ on Page 39 NEWSPAPER AT DEADLINE

Continued from Page 1 announced plans to relocate advertising packages in downtown, has found a new anticipation of the New York home on Maiden Lane. ESDC Mets playing in the series—and agreed to acquire a of getting ratings “at least 50% condominium at 125 Maiden higher” than the dismal Lane—between Pearl and numbers posted in the first four Water streets—for $376 a games.That means the station square foot from Time Equities will provide make-goods to Inc., according to a broker advertisers that didn’t get the familiar with the deal. In return, numbers they expected. Time Equities agreed to acquire According to Nielsen Media the state agency’s office Research, the first four games condominium at 633 Third had an average household rating Ave., between East 40th and of 10.9. Fox 5 declined to East 41st streets. comment. BURDENSOME COMPLIANCE SPECULATION IS GROWING THAT PROCEDURES ARE sparking THE STATE’S hospital closing broker defections and sluggish commission chaired by asset growth at Smith Barney, investment banker Stephen Investment News reports in Berger will issue its report well today’s edition.The firm’s before the Dec. 1 deadline for broker head count fell slightly recommendations.The in the third quarter to 13,076 commission’s regional advisory brokers, from 13,414 at the committees must provide their beginning of the year, following final recommendations on Nov. the acquisition of Legg Mason’s 15, while the last public meeting brokerage operations. In the THE POUR FARM: Joseph of the full commission is set for third quarter, net client asset Ferrara says boosting Nov. 20. However, Executive flows were $2 billion, off 67% production of concrete should be easy. But Director David Sandman from the level in the year-earlier delivering it won’t be. strongly denies that the report period. In contrast, Merrill

will be issued a moment before Lynch has added about 500 buck ennis its statutory date of Dec. 1. brokers this year.

THE CITY’S ECONOMIC THE CITY DEPARTMENT OF DESIGN DEVELOPMENT CORP. hired AND CONSTRUCTION led all Diamond Management and agencies in change orders last Technology Consultants to year, according to the annual list Saving concrete jungle conduct a study that will help of the top 100 city contracts to New York decide whether it be published by CityLaw on should build a citywide Wi-Fi Nov. 6.The number and value Number of huge projects citywide threatens supply network.The Chicago-based of change orders during consulting firm will have four construction is one measure of months to compile data on how well a city agency manages BY ERIK ENGQUIST usage of and demand for high- its projects, CityLaw says.The speed Internet service in the five journal, which is published by concrete can be a builder’s best friend—and worst enemy. It can represent 60% of a boroughs. New York Law School, says project’s bulk, yet just 2% of its cost. It can add three skyscraper floors in a week. But when it orders increased the city’s doesn’t arrive at a construction site, it can stop billion-dollar projects on a dime. THE EMPIRE STATE DEVELOPMENT building costs by 6% in fiscal CORP., which earlier this year 2006. ■ The prospects of costly delays, soaring prices and even criminal activity loom as construction is about to begin a dozen giant projects, with only half that many big concrete plants to feed them. Ground Zero construction alone might eat up the current output of two plants. A Bronx water filtration project could commandeer a third, and a Queens sewage plant a fourth. THIS WEEK IN CRAIN’S Then there are the new Yankees and Mets stadiums,new tunnels under the Hudson and East

VALERIE BLOCK ------11 rivers, a mammoth water tunnel, the Second Avenue subway, an expanded Javits convention See PRESERVING on Page 41 THE INSIDER------12

WEEK IN REVIEW ------14 NEIGHBORHOOD JOURNAL------15 Cashing in on midtown SMALL BUSINESS ------16 of space for whatever reason, it is a years and announced last month it REAL ESTATE DEALS------18 45 Companies market very opportunistic time,” says Paul would cut 8% of its U.S. workforce, REPORT: large blocks of space Glickman, an executive vice presi- is subleasing more than 70% of its dent at Cushman & Wakefield Inc. office space, or 128,000 square feet, BUSINESS OF LAW ------21 for top dollar; Among those looking to unload at 237 Park Ave. space is ABN Amro. The financial Marsh & McLennan Cos., the THE WEEKS AHEAD ------35 sign of equilibrium? services firm, which is considering a insurance broker whose margins CLASSIFIEDS ------40 move downtown, has put more than have been under pressure as a result BY JULIE SATOW 150,000 square feet on the market at of a kickback scandal, has reconfig- BUSINESS LIVES------43 55 E. 52nd St. Rents downtown are ured its offices into 800,000 square CORPORATE LADDER------45 six large blocks of space totaling running from $31 to $35 a square feet in a tower at 1166 Sixth Ave., over 1 million square feet have come foot, while sublease space at the vacating 315,000 square feet on four EXECUTIVE MOVES------46 47 on the market in prime midtown of- building on East 52nd Street is go- lower floors. BOB LAPE ------47 fice buildings over the past several ing for more than $90 a square foot. The New York Times Co.,which weeks.The surge in availability isn’t reported a 39% drop in income in vol. xxii, no. 44, october 30, 2006—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- a sign of a coming downturn, but Under pressure the third quarter, is marketing five icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address rather a signal that more companies other corporations, under fi- floors, or 155,000 square feet, at its changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a are trying to take advantage of his- nancial pressure, have more obvious new headquarters under construc- copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents toric high rents. reasons for putting space on the tion at 620 Eighth Ave. copyright 2006 by Crain Communications Inc. All rights reserved. “If a corporation or a landlord market. Revlon Inc., which has A Times spokeswoman says the has the ability to create a large block posted losses for eight consecutive See FIRMS on Page 41

2 | Crain’s New York Business | October 30, 2006 Steaming up the aisles drugstores a few years ago,the Man- Oak Hill Capital Partners bought Industry insiders expect Duane Duane Reade gets hattan-based chain now stocks a the chain two years ago and took it Reade to highlight its growing se- kinky with upscale wide range of textured and flavored private. lection of intimate wares with condoms, an array of scented mas- The new owners have been clos- product displays, perhaps at the line of erotic wares; sage oils, various lubricants that ing underperforming stores,remod- end of aisles, in the next few warm when rubbed and even small eling others and testing new beauty months. Such presentations usu- presentation pivotal vibrators that fit around the base of displays in an effort to win back cus- ally increase sales by more than a condom. tomers who switched to Walgreens 10%, says Mr. Daniels at Trojan. BY ELISABETH BUTLER Duane Reade isn’t the only drug- or CVS. Having a wide selection of store chain getting into the pleasure erotic products could help Duane Placement is key sexy feather ticklers and edible principle.CVS,Rite-Aid and heart- Reade gain an edge. the key to designing a retail honey dust may not be the first land behemoth Wal-Mart are carry- “Duane Reade has gotten cooler, section for intimate items will be to products that come to mind when ing more products in an effort to hipper and younger, but they still “make sure that everyone who is shoppers think of Duane Reade claim a share of the estimated $1.6 have a ways to go,”says Marshal Co- potentially interested in it knows drugstores. As of two weeks ago, billion market for romance aids. hen, chief analyst at trend-tracking about it,but don’t shove it in the face however,customers could find these firm NPD Group. of people who might be offended,” SEXUAL HEALING intimate items in all 250 of the New Yorkers have already shown says Greg Tribbe,creative director at A sampling of products at Duane Reade. chain’s locations. Shelved near ‘Having an a healthy appetite for sexual mer- Gilmore Group, a retail design con- Kama Sutra Strawberry & Cham- pharmacy sections, the upscale chandise. Toys in Babeland, which sulting firm in New York that has pagne Honey Dust $19.99 Kama Sutra line of sex aids also in- accessory operates two chic sex-accessory worked on similar projects. cludes lickable sweet almond mas- stores in the city, has seen sales rise Early sales results look good for Kama Sutra Body Soufflé Choco- sage oil and chocolate crème brûlée to go with sex by more than 20% annually for the the Kama Sutra products at Duane late Crème Brûlée $14.99 body soufflé. past eight years. Reade, says Beverly Pollington Sir- Sex sells, and it’s selling faster doesn’t mean The range of customers interest- jani, a senior vice president at Kama Astroglide Personal Lubricant than ever in the corner drugstore. ed in sex accoutrements is growing Sutra, which is based in Thousand 2.5 oz. $9.39 “Retailers are reacting to con- you’re a slut’ every year, says Rachel Venning, co- Oaks, Calif. K-Y Warming Liquid Lubricant sumer demand,” says Jim Daniels, owner of Babeland. The weekend kit, consisting of 2.5 oz. $7.89 vice president of marketing for Tro- “Having an accessory to go with five trial-size products priced at Durex Play Tingling Lubricant jan Condoms.“There is a market for sex doesn’t mean you’re a slut,” Ms. $20, has already become a favorite. 3.4 oz. $4.19 improving one’s sexual health and Venning says. “It’s a pretty normal Large gift tins, running at about pleasure.” part of life now.” $60, are slated to hit the chain’s Trojan Twisted Pleasure Lubri- But Duane Reade is pushing the Drugstores have traditionally shelves for Christmas and Valen- cated Condoms 12 ct. $13.99 Pushing the envelope envelope as the only chain selling stocked sex-related merchandise tine’s Day. indeed, Kama Sutra products, the pricier Kama Sutra line. near the pharmacy checkout—part- Kama Sutra chose Duane Reade Lifestyle Flavored Lubricated Condoms 12 ct. which are more typically found in The company needs to show ly out of discretion, but also to pre- “because it pretty much owns Man- $10.99 sex-toy shops and lingerie bou- more leg than its competition. vent theft. That means curious hattan,” Ms. Sirjani remarks. “We tiques, are just the latest addition to Duane Reade, which declined to shoppers who want to examine the figured the Manhattan customer LifeStyles 4Play Vibe 1 ct. Duane Reade’s ever-expanding ro- comment, has struggled to produce strawberry-flavored condoms more was sophisticated enough for our $8.99 mance department. profits during the past five years as closely must do so in front of a products.” Durex Play Vibrations In a departure from the basic sales growth slowed and national crowd. 1 ct. $8.39 condoms and K-Y Jelly found in competitors went after its business. That positioning may change. COMMENTS? [email protected]

BY THE NUMBERS Comptroller short list WINDFALL TIME venture capital firms invested a total of about $390 million in 56 area ernments. Mr. Hevesi was coasting at the top of Mr. McCall’s list. companies from June through September, 19% more than the year-earlier Search for successor to victory and a second term when “He certainly is a qualified per- period, according to the MoneyTree Report. Biotech outfits got most of the assumes Hevesi Mr. Callaghan accused him of us- son,” Mr. McCall says, adding that funds (35.4%), followed by software (25.2%) and telecommunications ing a state car and driver to chauf- he would prefer to see Mr. Hevesi (8.5%). SchoolNet topped the 35 companies in the group that are based in will survive election feur his ailing wife,Carol.The state stay on. “He’s been a decent and New York City. Ethics Commission supported the competent public official. He’s charges, and now several separate made one major mistake, which 10 largest third-quarter investments in NYC companies BY ANNE MICHAUD investigations are under way. he’s acknowledged. Going forward, I would hope people would new york democrats searching Brodsky’s credentials support him,but I don’t think that’s INVESTMENT for a state comptroller to replace the but if mr.hevesi wins the seat on going to happen.” COMPANY (IN MILLIONS) BUSINESS embattled Alan Hevesi are focus- Nov. 7 and then resigns—which Mr. Thompson is focused on SchoolNet $19.0 Data management for K-12 ing on Westchester Assemblyman most insiders expect—the matter running for mayor of New York Richard Brodsky, city Comptroller of replacing him will fall to the state City in 2009. Others say that he Imaginova $15.0 Science and technology site William Thompson and invest- Legislature. Mr. Brodsky would would welcome the opportunity to ment banker William Mulrow. have the edge as the chairman of an move up in politics without the risk SeaPass Solutions $11.5 Data management for Democrats are going on the as- activist Assembly committee that of a race. His office declined to insurance industry sumption that Mr. Hevesi will has exposed corruption and out-of- comment. hold his post in the upcoming elec- control spending at the state’s 290 Mr. Mulrow, 50, ran for state Send Word Now $10.5 Electronic emergency tion—an assumption that grew in- public authorities.Assembly Speak- comptroller in 2002 but lost the notification creasingly shaky last week. First, er Sheldon Silver would be inclined Democratic primary. He has since Democratic gubernatorial candi- to support one of his loyalists. worked for Gabelli Asset Manage- OrderMotion $8.5 E-commerce transaction date Eliot Spitzer withdrew his Mr. Brodsky, 60, says it’s too ment and for Citigroup. software endorsement of Mr. Hevesi. The soon to say whether Mr. Hevesi “He has the political bug and the Tremor Network $8.4 Online video advertising New York Times then called on vot- should be replaced. “On a political professional qualifications,” says a ers to elect little-known GOP can- and a human rights level, we need friend, David Alpert, treasurer of Genesis Networks $8.0 Online video delivery didate J. Christopher Callaghan. to hear the whole story,” he says. the state Democratic Party. His job as the former Saratoga Some, including former state Several other names are surfac- M5 Networks $7.8 Internet telephony County treasurer carried far less Comptroller H. Carl McCall, ing as potential replacements for responsibility. are promoting the candidacy of Mr. Hevesi. But the process “is ShopWiki $6.3 Online shopping The comptroller invests Mr. Thompson, 53, who is serv- scrambled eggs right now,”says Mr. Panther Express $6.0 Online content delivery $145 billion in public pension ing his second term as city comp- Alpert. funds and acts as a fiscal watchdog troller and manages an invest- Sources: PricewaterhouseCoopers; National Venture Capital Association over state agencies and local gov- ment portfolio of $85 billion. He is COMMENTS? [email protected]

October 30, 2006 | Crain’s New York Business | 3 IN THE MARKETS HIGHLIGHTS REEL ISE’s options bonanza +1.3% lures too many rivals The Bloomberg/ Mr. Repetto’s view is widely shared. Of ago Exchange. Meanwhile, Nasdaq re- Crain’s New Market trailblazer hurt the 13 brokerage analysts who follow ISE, cently announced plans to enter the activ- York Index by success as others four rate it a “sell” and nine a “hold,” ac- ity for the first time, and the impending rose 1.3% cording to Bloomberg merger of the two big to end the circle the business data. futures and options ex- week at ➡ ISE was co-found- changes in Chicago 354. The ed by Chief Executive will create a colossus. S&P 500 BY AARON ELSTEIN David Krell, a former The growing com- Index rose NYSE executive who petitive pressures are 0.6%, closing at n just nine years, International left the exchange in expected to take a big 1377. Securities Exchange Holdings 1997 after grandees bite out of ISE’s Inc. has graduated from obscure there decided they growth. Analysts pro- startup to the nation’s leading op- weren’t interested in ject earnings to be up tions marketplace. options trading. 44% this year but look RISERS IBy offering fast trading over sophisti- What a difference for the pace to drop to 5-DAY 1-MONTH 3-MONTH CLOSING cated computer networks, the Manhat- a decade makes. A 23% in 2007, accord- % CHANGE % CHANGE % CHANGE PRICE tan-based firm has been instrumental in powerful surge in op- ing to Reuters Funda- JetBlue Airways +12.2% +28.8% +13.2% $12.25 transforming the options business.Earn- tions trading helped mentals. Given that ings and sales soared as ISE seized a one- lift ISE’s net income outlook, ISE’s valua- Coach +10.6% +13.4% +41.6% $39.01 third share of trading, and its stock price to $40 million, or tion of 31 times next Maidenform +8.9% +12.7% +59.9% $21.30 has nearly tripled since the firm went $1.01 a share, on rev- year’s expected earn- Market cap $2 billion Avaya +7.7% +8.2% +40.7% $12.82 public last year, closing Friday at $51.55. enue of $149 million ings seems high to bears like Mr. Repet- The New York Times +6.0% +7.0% +10.3% $24.10 Sadly, no good idea on Wall Street in the first nine Trailing 12 months P/E 47 lasts long before being beaten into the months of 2006. That to, who thinks a mul- Options market share 32% ground. With rivals like the New York compares with per- tiple of 25 would be SINKERS Stock Exchange lustily eyeing the busi- share income of 68 more appropriate. 5-DAY 1-MONTH 3-MONTH CLOSING ness captured by the much smaller ISE, cents on revenue of Shareholders could % CHANGE % CHANGE % CHANGE PRICE the firm’s best days already seem behind $112 million in the year-earlier period. get lucky if ISE were acquired by anoth- Forest Labs -7.0% -4.9% +3.9% $47.88 it.Now would be an excellent time for in- Even more impressive, ISE’s profit mar- er exchange as part of the industry’s on- Weight Watchers -5.2% -0.9% +11.8% $44.33 vestors to cash in their chips and move on. gin is a robust 50%. going consolidation. But ISE rivals, in- “It’s going to get tougher from here,” With growth and margins like that, it’s cluding the Chicago Board Options Barr Pharmaceuticals -5.0% -2.6% +5.7% $50.70 says Sandler O’Neill & Partners analyst no surprise that ISE has attracted a host of Exchange, would probably make more Knight Capital -4.8% -0.1% +16.6% $18.36 Richard Repetto, who rates ISE a “sell.” imitators. The mighty NYSE re-entered tempting targets. Medco Health -4.8% -6.1% -8.3% $54.75 “The stock’s valuation is extremely high, the options business last year through its and more competition is looming.” merger with the all-electronic Archipel- COMMENTS? [email protected]

It Starts with Hello STOCKS TO WATCH CBS has eye on the prize as its shares A NY Manufacturer Management buyout outgain those of other major networks A NY Manufacturer of and supplier of of a NY Distributor Thermoplastic Products Industrial Lumber IT WAS ANOTHER surprisingly good of Office Furniture week for CBS. Shares of the owner of $6,000,000 and Fasteners $4,000,000 the top-ranked television network Line of Credit $3,850,000 gained 3.7%, outpacing those of Line of Credit Line of Credit ABC’s owner, Disney, and NBC’s parent, General Electric. CBS nearly beat its former corporate sibling, A Distributor of Custom Designer/Importer Viacom, which at the time of the breakup late last year was widely Metal Casings A Law Firm of Ceramic Housewares seen as the stock to watch. CBS has obtained a has obtained a has obtained a shares have gained 13% this year, $3,000,000 $1,000,000 $6,000,000 versus a small dip for Viacom. Line of Credit Line of Credit Working Capital Facility The business of providing Internet advertising services is scorching. One of the & Term Loan including Letters of Credit industry’s pioneers, 24/7 Real Media, is expected to confirm that fact this week by announcing record quarterly per-share earnings of 9 cents, more At Sterling, we understand that great deals start with Hello. than double its year-earlier profit. Much of the recent growth is coming from For the personal service you deserve call Europe and Asia, superhot markets in which 24/7 has been expanding aggressively. The shares have gained 36% so far this year. Ted Poor Jeffrey Fliegel Less than a month after Bank of Senior VP - Asset Based Lending Senior VP - Middle Market Banking America announced that it was 212.575.3473 212.575.4448 eliminating fees for trading stocks, [email protected] [email protected] investors have decided that maybe E*Trade can survive after all. Aided by a “buy” rating from Goldman Sachs on Monday, the stock rose 9% last week and is up almost 17% from recent lows. An additional lift was provided Friday by federal approval of 500 Seventh Avenue, New York, NY 10018 • www.SterlingNationalBank.com E*Trade’s plans to merge its banking and trading operations. Our Doors Are Open All The Way To The Top | Est. 1929 • NYSE: STL • Member FDIC charts: jennifer chiu

4 | Crain’s New York Business | October 30, 2006 A Business Card that earns free ﬂ ights on JetBlue? Now,that's a departure.

Introducing the JetBlue Business Card from American Express®. • Earn double Award Dollars on gas, car rentals, ofﬁ ce supplies and equipment, wireless phone charges and JetBlue ﬂ ights.1

• Save 5% automatically on JetBlue ﬂ ight purchases with the Card2 — just one of many OPEN beneﬁ ts.

• Plus, your TrueBlue points don’t expire when you use the Card.3

With your ﬁ rst purchase get: • $50 statement credit4 • 25 TrueBlue points, worth 1/4 of a free ﬂ ight 5 Carry the Love. SM Apply online at www.open.com/getjblue or call 1-866-GET-JBLUE.

1. You will receive double Award Dollars on purchases of wireless telephone services, automobile gasoline, car rentals, offi ce supplies and equipment and JetBlue fl ights, in each case not purchased at warehouse clubs, superstores or supermarkets. 2. 5% savings, which will appear as separate statement credits of 3% and 2%, is valid on air-only travel purchased directly from JetBlue reservations at 1-800-JETBLUE or www.jetblue.com. JetBlue Business Card accounts will receive a maximum annual savings of $2,000 per Card account. 3. The expiration date of all TrueBlue points in your TrueBlue Membership Account will be extended to be one year from any date you have a TrueBlue point credited to your TrueBlue Membership Account from one of the following activities: (1) Using your JetBlue Business Card Account for eligible purchases or (2) The primary account holder fl ying a JetBlue fl ight segment that is paid for with your JetBlue Business Card Account. Eligibility and timing are based upon the date the TrueBlue point is credited to your TrueBlue Membership Account from one of the above qualifying activities. 4. The $50 statement credit applies to the fi rst eligible purchase made between 7/1/06 and 7/1/07. The maximum discount available is $50 per account. 5. Customer is responsible for government taxes and fees that may apply to Award Travel. JetBlue Cardmember Agreement and TrueBlue Terms and Conditions apply. ©2006 American Express Company. Berlin Boston

BuenosAires Rockefeller Center

welcomes the following new tenants Chicago Chasm Lake Management NEW YORK,NEW YORK Frankfurt Services, LLC edited by Valerie Block October 30-November 5

London represented by Sinclair Li &

LosAngeles James Ackerson of CB Richard Ellis, Inc.

Madrid Where Spitzer always runs hard

Milwaukee Omrix Biopharmaceuticals, Inc. ew york attorney general Eliot Spitzer (left) may represented by be busy running for governor, but he still makes time Mark F.Lauzon of NewYork to jog around the reservoir in Central Park five days Cushman & Wakefield, Inc. N a week. Sometimes he slips quietly out of his Manhattan NorthernVirginia apartment at 5 a.m., careful not to disturb his sleeping wife. Maria Carvainis Agency,Inc. The hot politician often greets strangers he sees day after represented by day.“You don’t know their names, but you wave, and if you Jonathan Anapol of Paris don’t see them for a while you wonder where they’ve gone,” he Prime Manhattan Realty Philadelphia tells Runner’s World in an interview to appear in the magazine’s December issue, which hits newsstands on Tuesday. Mr. Spitzer, who ran the New York City Marathon in SanFrancisco 1983, won’t have time to join the masses in this year’s race. for leasing information, please contact: “Campaigning in itself is a marathon,” he says. Peter Brindley SaoPaulo Natalia Macias Gilbert executive director of the dippy” happiness. “Some people A third Foer Chinatown Partnership. “We have had some heavy times and tragedy. Todd Silverman Seattle comes of age support from the public, private It was a very turbulent era.” Blythe Kinsler and community sectors.” Commune, which got strong

SiliconValley Theodore Koltis the foer brothers aren’t really The top location under reviews after it was shown at film taking over the world of letters. It consideration is the intersection of festivals in 2005, makes its East just seems like they are. Freelance Baxter and Canal streets.The idea Coast premiere next month at

Sydney science writer Joshua Foer—kid has come up many times before, Manhattan’s Cinema Village. brother of novelist Jonathan Safran says Mr. Chen, “but this time

WashingtonDC Foer and New Republic magazine there is a greater hope.” editor Franklin Foer—is shopping Chelsea hosts his first book. According to one insider with Communal boutique inn knowledge of the negotiations, indigo, InterContinental Hotels offers for Moonwalking with New Yorkers Group’s latest boutique brand, is Einstein: A Journey into Memory when filmmaker Jonathan coming to Chelsea. Landowner and Mind have topped $800,000, Berman decided to make a and franchisee Fortuna Realty with six publishers bidding. documentary about Black Bear broke ground this Fittingly enough, Mr. Foer’s book Ranch, a Northern California month for a 120- will touch on how smart he is. commune started in the late room tower at 127 Moonwalking profiles the 1960s, he didn’t know that many W. 28th St. subculture of “memory athletes” of the New Yorkers who were The hotel, Long established who compete in national and among the commune’s founders which its managers international meets—a subject he were still out there—in more ways consider a more commitment first covered in a Slate.com article. than one. affordable Earlier this year, Mr. Foer, a recent In Commune, Mr. Berman alternative to W, Weiser LLP Yale graduate, entered the USA catches up with Richard Marley,a will open in 2008. Certified Public Accountants National Memory Championship Brooklyn resident turned Fortuna, run by and took the top prize. He even revolutionary who convinced hotelier Morris set a record for fastest members of The Monkees and Planned hotel Moinian, is investing memorization of a shuffled deck The Doors and others to put up $50 million in the of cards (one minute and 40 money to buy the former Black property, which will have spacious seconds). Mr. Foer’s agent, Elyse Bear Gold Mine. Also featured is rooms and spa-style showers. New York City to the 135 West 50th Street New York Cheney, did not return a call actor Peter Coyote, né Peter Cohon “The W, in my opinion, is New York, NY 10020 legal community seeking comment. from Englewood, N.J. positioned as an exclusive hotel. Tel 212.812.7000 The place is overrun by young There’s pounding music, low Fax 212.375.6888 Deadheads now, but its utopian lighting and guys with Armani Weiser provides a full-range of auditing, Chinatown’s idealism lives on in the film. Mr. suits on,” says Jim Anhut, Long Island tax, and consulting services to businesses 3000 Marcus Avenue new gateway Berman, who hired an intern from InterContinental’s senior vice Lake Success, NY 11042 and individuals in a variety of industries. Craigslist to finish editing his opus president of brand development Tel 516.488.1200 Services include: to enter San Francisco’s after he ran low on cash, says the for the Americas. “We’re more Fax 516.488.1238 ■ • Bankruptcy and insolvency Chinatown, visitors pass through counterculture wasn’t all “hippie- inclusive.” Westchester •Business and/or asset evaluations an elaborate archway. But New 660 White Plains Road York, which boasts the nation’s • Due diligence Tarrytown, NY 10591 largest Chinatown, has one of the BROADWAY BONANZA Tel 914.333.0555 • Fiduciary administration and accounting few in the country without a Fax 914.333.0556 • Litigation support delineating edifice.That’s about to AS THE BROADWAY SEASON reached its 21st week, box-office take • Mergers and acquisitions strategies New Jersey change. continued to rise. Gross revenues for the season to date jumped 7%, to 399 Thornall Street • Private foundation administration Hotel developer and owner $342.3 million, The League of American Theatres and Producers says. Edison, NJ 08837 and planning John Lam has agreed to build and Following are the five top-grossing shows for the week ended Oct. 22. Tel 732.549.2800 • Royalty and contract compliance fund an arch, which could cost as Fax 732.549.2898 Wicked $1,412,444 • State and local tax compliance much as $1 million. In addition, Jersey Boys $1,160,453 www.weiserLLP.com Democratic Councilman Alan Gerson, whose district includes The Lion King $1,092,744 For more information, contact Douglas Phillips at 212.375.6701. Chinatown, has earmarked city funds for the project. The Drowsy Chaperone $1,009,468 “Everything is aligned right The Color Purple $980,857

now,” says Wellington Chen, kolnik paul

6 | Crain’s New York Business | October 30, 2006 A search marketing tip by Search Master Steve.

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1Source: Nielsen//NetRatings, August 2006, U.S. Home/Work Combined; Nielsen//NetRatings @Plan, Fall 2006 2Source: Compete Conversion Benchmarking Study, June 2006. MSN led in four out of ﬁ ve categories. Categories are based on a selection of category sites. MSN led in B2B, Consumer Electronics, Retail, and Travel. MSN did not lead in Financial Services. © 2006 Microsoft Corporation. All rights reserved. Microsoft and MSN are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. BIG BUSINESS Money-service biz’s do-it-yourself bank Latin American residents of the Bronx rely on the money-transfer firms that First MSB hopes to serve. how long that relationship will last. would offer the same essential new rules have been put in place. Firms aim to set up “It’s been a real struggle,” says services that the big institutions once The growing burden of comply- Latin Americans living Bronx facility as Mr. Neuschatz, the Manhattan did. The Bronx-based bank would ing with those measures, designed in NY state 1.4 million large institutions exit company’s chief executive. “One take deposits from the money- to cut off funds being routed to ter- Amount remitted to home bank after another has pulled out of service businesses, clear their checks rorists, is a big reason that giant in- countries* $3.7 billion regulation-laden field the business.” and provide loans. The organizers stitutions like J.P. Morgan Chase, Faced with a lengthening list of filed applications last month with Citibank and Bank of America have Check-cashing companies banks that have withdrawn from state and federal banking authorities. stopped handling money-service in NY state 218 BY TOM FREDRICKSON handling their accounts,a few of the operations in recent years. Total value of checks cashed* city’s 73 money-transfer licensees Approval process no picnic “Of course,not all money-service $17 billion kevin neuschatz’s money-trans- and 487 check-cashing stores have winning those approvals will be businesses are involved in money *Estimate for 2006. mittal business, Choice Money banded together to take matters into tough, however. Since the terrorist laundering, but they are high-risk,” Sources: Inter-American Development Bank, Transfer Inc., is less than two years their own hands. attacks of Sept. 11, monitoring of says Ellen Zimiles, CEO of Man- NYS Banking Department old. But the firm is already on its The group is trying to form its the money-transfer business has hattan-based Daylight Forensic & third bank, and there’s no telling own bank, First MSB Bank, which been severely tightened and a host of Advisory,which specializes in fighting money laundering. “Big banks say they don’t want this business because it costs too much to monitor.” The 12 organizers of MSB are convinced that the need for such an institution is so great and the market so large that they can make money on the operation.Pending regulatory re- Committed. view,which is expected to take about six months,the founders will seek to raise roughly $15 million in capital. The group includes Mr. Neu- Experienced. schatz as well as a retired postal in- spector who concentrates on com- bating money laundering, and a CPA, an attorney and an insurance agent who all have ties to the indus- Trusted. try. Because of the founders’ knowl- ‘Offering services to agents is our Thank you to our clients, colleagues and big promise community for recognizing our performance. of success’

The American Lawyer’s “A-List” identified edge and experience, they believe that they would be ideal overseers of Jenner & Block as one money-service enterprises. of the top 20 law firms BTI Consulting Group’s Over the past year, the bank’s or- in the nation. survey indicated ganizers have developed and tested software that they say would allow corporate counsel The American Lawyer’s them to monitor the daily activities consider Jenner & Block “Litigation Department of shops offering check cashing or money transmission. a “go-to” law firm and of the Year” edition MSB’s organizers aim to benefit one of the “Power Elite.” recognized Jenner & Block their industry on two levels. as having one of the top Multipronged approach 06AMProperties Inc. ALM © 2006 five litigation departments first, they want to satisfy the financial needs of the city’s licensed in the country. check-cashing and money-trans- mittal firms. Second, they hope to provide loans and other financial products to many of the hundreds of storefront businesses that act as 06AMProperties Inc. ALM © 2006 agents for the money transmitters. Representatives of the bank would collect the cash generated by the stores’ transfer services and would have the chance to develop relationships that could carry over to the merchants’ other activities. “We see extending our services to the agents as our big promise of success,” says Harry Murphy, the retired CFO of a small Westchester bank and the CEO-elect of MSB. MSB is also designed to function as a community bank for residents of the Bronx’s University Avenue area, CHICAGO | DALLAS | NEW YORK | WASHINGTON, DC JENNER & BLOCK LLP | JENNER.COM which has little access to banks. COMMENTS? [email protected]

8 | Crain’s New York Business | October 30, 2006 Today’s Aetna

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©2006 Aetna Inc. Plans are offered by Aetna Life Insurance Company. Health insurance plans contain exclusions and limitations. *From BusinessWeek article,“How Good Is Your Online Nurse?,” February 20, 2006, copyright by The McGraw-Hill Companies, Inc., comparing member Web sites of the top three national insurers. 200680 VIEWPOINT Eliot Spitzer for governor editor in chief Rance Crain vice president, publishing director liot spitzer made his reputation by George Pataki’s disengaged and philosophically flexible Alair Townsend forcing the most powerful companies in governance has soured voters on any Republican candidate. publisher Jill Kaplan the securities business, the mutual fund Mr. Spitzer has shown antibusiness tendencies, such as EDITORIAL industry and the insurance sector to stop engaging in populist rhetoric against tax cuts for companies editor Greg David managing editor Richard Barbieri taking advantage of Americans for the and high-income people. On key issues, though, he has projects editor Cynthia Rigg benefit of insiders.The first speech he committed himself to actions that would help the state. deputy managing editors Valerie Block, Erik Ipsen gave as a candidate for governor endorsed Mr. Spitzer says he will not raise taxes. After some senior reporters Aaron Elstein, wide-ranging structural reforms that are needed to change waffling, he has strongly Lisa Fickenscher, Matthew Flamm, Albany, where special interests hold sway at the expense of endorsed the work of Tom Fredrickson, Samantha Marshall, E He is committed Anne Michaud, Miriam Kreinin Souccar the state’s citizens and future. And when confronted with the Berger commission, reporters Barbara Benson, Elisabeth Butler, the charge that all those who benefit from Albany’s to actions that which will soon Erik Engquist, Amanda Fung, Hilary Potkewitz, Julie Satow, Gale Scott dysfunction support his candidacy, he said, “The special would help announce a plan to restaurant critic Bob Lape interests are ahead of me, not behind me.’’ shrink the state’s overly art director Steven Krupinski deputy art directors Carolyn McClain, All that ails New York will remain unless the system that New Yorkers expensive hospital and Daniel Mednick concentrates power in too few hands is changed. Because of nursing home networks. staff photographer Buck Ennis copy desk chief Wendy Zuckerman his track record and commitment to reform, Crain’s endorses He has also said that copy editors Michele Arboit, Leslie Jay, Eliot Spitzer for governor. the Berger report will Thaddeus Rutkowski research editor Denise Southwood His opponent, Republican John Faso, is campaigning on mark the beginning, not associate research editor measures that are desperately needed to improve New York’s the end, of his efforts to reduce the cost of health care. He Adrianne Pasquarelli www.NewYorkBusiness.com competitive position: tax cuts, a Medicaid overhaul and has promised to back reforms to reduce workers’ comp costs. online editor Catherine Tymkiw broad-based reform of workers’ compensation. Mr. Faso has Eliot Spitzer has spurred fundamental changes at some of online reporter David Jones been fighting for those ideas for years and has done his best the nation’s largest companies. He is the best hope for EDITORIAL AND ADVERTISING OFFICES to build public support for them. But it is not his time. Gov. reforming Albany—his most difficult challenge yet. 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 Cable craincom nyk Fax 212.210.0499 Entire contents ©copyright 2006 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Crain’s choices for other races Inc., used under license agreement. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. COMPTROLLER CONTEST: A BLACK MARK says he will attack Medicaid fraud and corruption in Albany. $3.00 a copy, $59.79 one year, $109.79 two years. Democrat Alan Hevesi should not be re-elected as state Accomplishing either would require a principled and www.NewYorkBusiness.com comptroller. Unfortunately, New York’s moribund Republican determined effort. Last week, with his timid response to the ADVERTISING AND MARKETING Party could find only the former treasurer of upstate Saratoga Hevesi scandal, Mr. Cuomo confirmed the fears of many advertising director Vanessa Cognard business development manager County to challenge the longtime New York politician. It’s that his only concern is political advancement. Robert N. Grossman not possible to endorse either candidate, though a protest vote Republican Jeanine Pirro’s personal problems have account executives for Christopher Callaghan has some appeal. Andrew Carlin, Holly A. McKeown, Derek Reese, dominated this campaign.There are reasons for voters to be Jennifer Siniscalchi, William E. Squitieri, The position is a powerful one.The comptroller is the sole concerned. But she outlines a solid plan to attack Medicaid Brigitte Stieglitz trustee of the state pension fund, which has more than fraud, and she was a successful district attorney. western account manager Ellen Mazen (Los Angeles) 323.370.2477 $140 billion in assets. He monitors the state’s finances and In the end, it would not be best for all the important classified sales manager John Gallagher audits state agencies and local governments to make sure offices in state government to be held by Democrats. Crain’s newsletter product manager Catherine Evans Gittens they aren’t wasting taxpayer money.The revelation that Mr. endorses Ms. Pirro for attorney general. sales coordinators Lulé Haznedari, Hevesi used state employees to drive his wife and then tried CLINTON FOR SENATE Anita Perrino credit Pat Grondziak 313.446.6082 to cover up his actions is precisely the kind of conduct that he In what might be a first for a political advertisement, a marketing director MJ Snyder is supposed to expose. He has forfeited any right to the job. spot from Sen. Hillary Rodham Clinton captures the reason marketing assistant Jill H. Bottomley circulation manager Reginald Jordan It’s doubtful that the unknown Mr. Callaghan can actually she should be re-elected. “Six years ago, New Yorkers took a internet director Marc Minardo win the election. At some point, Mr. Hevesi almost certainly chance on Hillary Clinton,’’ the announcer says, “and she has NEW YORK PRODUCTION will be forced to resign.Then the Legislature—effectively delivered for the state.’’ production and pre-press director Assembly Democrats—will pick the new comptroller.The In her first term, Ms. Clinton has developed a solid Michael Corsi advertising production manager whole affair will be yet another black mark for Albany. understanding of both upstate and downstate issues and Suzanne Fleischman Wies PIRRO FOR ATTORNEY GENERAL worked hard on behalf of the state’s residents. Her positions PUBLISHED BY CRAIN COMMUNICATIONS INC. One would think that the most promising lawyers in New reflect the views of the vast majority of New Yorkers. chairman Keith E. Crain York would want to become attorney general after watching The Republican candidate, John Spencer, had a mediocre president Rance Crain secretary Merrilee Crain Eliot Spitzer turn the office into a national force. Instead, New record as mayor of Yonkers and is tied to one of the more treasurer Mary Kay Crain York voters must choose between two flawed candidates. disreputable downstate political machines. Crain’s endorses executive vp, operations William Morrow senior vp, group publisher Gloria Scoby Andrew Cuomo, the best of a lackluster Democratic field, Ms. Clinton for re-election. group vp, technology, circulation, manufacturing Robert C. Adams vice president/production & manufacturing David Kamis WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh Special report: Guide Special report: Special report: Special Special founder G.D. Crain Jr. (1885-1973) meetings and to Growing economic privately held report: report: chairman Mrs. G.D. Crain Jr. (1911-1996) conventions a Business development companies real estate small business Nov. 6 Nov. 13 Nov. 20 Nov. 27 Dec. 4 Dec. 11

10 | Crain’s New York Business | October 30, 2006 33 Benedict Place Greenwich, Connecticut

Many stories focus on the issue of choice, maintaining that consumers should be free to decide what they want to eat. If they like their fries with a dose of hydrogenated oils, let them have it. Of course, the debate isn’t really A rare opportunity... about choice, because most consumers don’t realize that the apple pie they just downed with their coffee contains the offending hydro- Major renovation planned for 130,000 square genated oils. The additive isn’t listed on menus (although it will have foot, Fortune 500 headquarters building to be, if the law takes effect). The media make short shrift of the real dilemma: It’s all about the Convenient to Greenwich Avenue and MetroNorth money. Restaurants use hydrogenated oils because they’re cheap- with spectacular views of Greenwich and the er and they last longer, so they Long Island Sound can be used to fry more fries. In turn, New Yorkers get cheaper food—and the city gets bigger doctor bills. World-class ownership and management The true targets of the proposed john h.john howard law are, of course, McDonald’s, Burger King, Dunkin’ Donuts and For more information on 33 Benedict Place, their ilk—fast-food joints that have become synonymous with obese please contact Frank Saphire or Bart Swenson, America. If the cheap cooking oils are banned, restaurants will have to Hines, 212.230.2300. Where’s the real use more expensive, and healthier, oils for their deep fryers. They may pass on the extra costs. skinny on trans fat? Maybe customers won’t get a dozen doughnuts when they pay for six. Warren Private Clients Or, to conserve the more expensive or all the rhetoricagainst trans fats,they’re not oils, greasy spoons might lighten up www.hines.com/www.willettcompaniesllc.com on the portions. Fewer fries with worse for you than the old-fashioned saturated fats that burger, perhaps? in lards and butter.” The good news, if such actions —The New York Times, Sept. 30, 2006 come to pass, is that higher prices “Though saturated fats,which are found in but- might make these fried foods less appealing, especially to the low-in- Fter and other animal fats, can clog your arteries, trans fats do so come families who are more likely to faster.” —The New York Times, Oct. 1, 2006 eat them regularly. Keeping the cost of food artifi- In the month since teurs insisting they cially low by using dangerous addi- the city’s health depart- don’t. All were in The tives may not be the best way to re- ment announced a plan New York Times alone. ward consumers. to ban trans fats from A public hearing on More sophisticated coverage of restaurants citywide, the the matter today is this important subject could help media has weighed in bound to generate a New Yorkers understand the de- frequently on the debate, new avalanche of sto- bate, so they can make an informed with widely divergent ries, causing confusion choice. 31 West Twenty-Seventh messages. A review of a to grow like a belly dozen stories on the sub- filled with french fries. Crain’s deputy managing editor FULL FLOOR OPPORTUNITIES ject finds some that agree New Yorkers can Valerie Block examines the media in a that trans fats are a health VALERIE be forgiven if they periodic column. Publishing director TOTALING 42,000 RSF risk,while others dismiss BLOCK have trouble deciding Alair Townsend returns next week their added dangers. whether to cork the with a look at New York government. Some stories say fried Crisco, as city Health She alternates on this page with editor ENTIRE FLOORS: 4, 5, 11 & 12 foods taste better when cooked with Commissioner Dr.Thomas Frieden Greg David, who examines politics, the fatty oils. Others quote restaura- suggests, or let the trans fats flow. the economy and journalism. 10,390 RSF EACH PART 2ND FLOOR: 4,116 RSF

CRAIN’S ONLINE POLL • High ceilings • 4 skylights available on 12th floor SHOULD NY STATE COMPTROLLER ALAN HEVESI LOSE HIS JOB? • New wood floors • New windows • Easy access to Penn MORE THAN TWO-THIRDS of the 780 Station, Grand Central, • Building modernization Union Square respondents to a NewYorkBusiness.com No, he eventually program including: Station and Madison poll say Comptroller Alan Hevesi should reimbursed the New lobby, elevator Square Park state and .32% Yes, he cabs & mechanicals lose his job now that a state Ethics publicly broke the Commission has ruled he broke the law apologized 68%. law and when he failed to pay the state nearly should be punished For leasing information, please $83,000 for using a state employee as his wife’s chauffeur. Jack Cohen Robert Gallucci Mitchell Konsker 212-841-5024 212-841-7872 212-841-7626 jack.cohen@ robert.gallucci@ mitchell.konsker@ cushwake.com cushwake.com cushwake.com For this week’s question: Go to www.NewYorkBusiness.com/poll to have your say. Bid selection to include quality GOP’S FASO Keeper of the flame REPUBLICAN GUBERNATORIAL candidate John Faso says THE INSIDER new york’s new “quality-based it’s important for him to beat the drum for the party’s by Erik Engquist and Anne Michaud selection” policy, adopted by the traditional agenda of tax cuts and a spending freeze, even in obscure Procurement Policy Board, the face of his 50-point poll deficit in the gubernatorial race. will let the city pick the best bid— Though he asserts that the race is “not over yet,” he says rather than simply the lowest—for that whether he wins or not, his candidacy is re-establishing architectural and engineering a GOP message of budget restraint, tax cuts and reform of

services. buck ennis Health heads differ on HIV testing Medicaid, workers’ compensation and other programs that John Faso The change, which takes effect make New York uncompetitive. The platform will keep the fforts to remove legal barriers to in December, brings the city in line party relevant, Mr. Faso says, adding that “elections are with the policy of New York and 44 part of a continuum.” routine HIV testing suffered a other states. It stemmed from a The candidate, who met last week with Crain’s editorial setback last week when state Health two-year lobbying effort by the board, wouldn’t say whether he’d carry the party’s torch as E American Council of Engineering Commissioner Antonia Novello (left) state chairman if he loses to Democrat Eliot Spitzer. endorsed existing laws requiring people Companies, the New York Building Congress and the American Meanwhile, Republican attorney general candidate who get tests to first have counseling Institute of Architects. Jeanine Pirro says that rival Andrew Cuomo doesn’t know

and sign consent forms. Under the current policy, in how to clean up corruption in Albany and that the proof is news daily Jeanine Pirro The decision puts her at which the lowest qualified bid must in his response to the growing scandal over Comptroller be chosen, some top-notch firms Alan Hevesi’s misuse of state workers. odds with New York City either refuse to bid or don’t assign Mr. Cuomo’s stump speech includes his plan to use the Tweed Law to hold Health Commissioner top people for a job.The result has officials liable for taxpayer losses. However, when asked about Mr. Hevesi’s Thomas Frieden, who been lower-quality work. use of a taxpayer-funded chauffeur for his wife, the candidate said that as AG wants patients’ written he would wait for a referral by the Ethics Commission. “The point of the Tweed Law is you don’t need a referral,” Ms. Pirro told consent for medical care daily news Con Ed awarding Crain’s editorial board last week. “My opponent doesn’t act; he doesn’t follow through.” to cover HIV testing. watch a video instead of requiring reduction contracts Though acknowledging that she’s behind in the race—various polls show In an op-ed published in the a meeting with a counselor has consolidated edison plans to her trailing by 13 to 21 points—Ms. Pirro says she is raising enough money to Spanish-language newspaper El resulted in a dramatic rise in award contracts shortly to be competitive and believes she will run strongly among women, upstaters Diario, Dr. Novello writes that testing and identifying people who companies promising to find ways and suburbanites. She has the Independence line and also expects to draw existing laws—as newly are HIV-positive. to permanently cut power demand unaffiliated voters. interpreted—will allow testing to HHC, however, says that it does by a total of 123 megawatts. The be increased while protecting not want advocates citing its utility is paying $112 million to confidentiality. experience as a reason to support bidders that will approach AIDS advocate Michael Kink of the status quo. Con Ed customers with savings by year’s end. A spokesman says the cost as little as $2,000 for a small Housing Works agrees with Dr. “We strongly support the technology: replacement chillers, first contracts were awarded to operation to as much as $20,000 Novello that there is no need to changes the [city] department of installation of distributed three firms in July 2003. for a large one. Peace of Mind change the laws. health is proposing to eliminate a generation, and energy-efficient Technologies is expected to refine Mr. Kink notes that recent separate written consent,” says an appliances, bulbs and motors. those numbers after it receives final efforts by the city’s Health and HHC spokesman. “The truth is we This is the second batch of load- DOH executive specifications for the proposal, Hospitals Corp. to streamline the could absolutely do much more if reduction contracts; Con Ed plans which awaits action in the City consent process by letting patients the law changed.” to call for a third round of bidding to get invitation Council. dennis whalen, the state Department of Health’s longtime STAY IN HISTORIC LUXURY No. 2 executive, is expected to be Housing group asked to stay on in a Spitzer administration. Mr. Whalen, who wants czar 1890 - 1900 - 1910 - 1920 - 1930 - 1940 - 1950 - 1960 - 1970 - 1980 - 1990 - 2006 is less than a year from retirement housing first, a coalition pushing age, has served under previous for housing reform statewide, is Democratic administrations. A urging gubernatorial candidate Eliot DOH spokesman says the Spitzer to name a housing czar if he department has no information is elected next month. about his plans. The group wants the state to spend $13 billion on housing over 10 years, but says the most No raise on tap important first step is to appoint a senior official to coordinate policy, in Albany which is currently balkanized the chances of a salary increase among state agencies. for legislators before 2009 appear to It also wants the housing and be dead. economic development “There are no discussions about departments to work together, a pay raise,” says a spokesman for its which occurred in the city after In 1945, guests of the Martinique Hotel got a most powerful supporter, Assembly Deputy Mayor Daniel Doctoroff front row seat for the VE-Day celebration Speaker Sheldon Silver.Gov.George began supervising them. Pataki and his likely successor, Eliot Housing First says that at the at nearby Times Square. Spitzer, both oppose a salary hike, very least, it has been able to get and Senate Majority Leader Joseph housing on Mr. Spitzer’s agenda. 530 luxurious guest rooms and suites and... Bruno said last week that it would Members have sidestepped some probably not be discussed this year. contentious issues, however, a truly unique event space accommodating 10 - 500 Any raise passed after Dec. 31 including how the money would be would not take effect until after the divided among regions. ■ next Legislature’s two-year term. Lawmakers currently earn $79,500 before lulus for committee or leadership positions. Costly cameras for nightspots ND 49 West 32 Street, New York, NY 10001 a consultant working with the

Telephone (212) 736-3800 Fax (212) 277-2703 New York Nightlife Association istockphoto www.radisson.com/martinique estimates that a proposal requiring BALKANIZED: Housing First wants one state clubs to install video cameras would official to oversee relevant agencies.

12 | Crain’s New York Business | October 30, 2006 “Bought bigger bug for van.” –Michael Vance, business owner

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Trosten, pleaded not guilty to ECONOMIC SPOTLIGHT charges that they defrauded investors.The bankrupt commodities firm sustained more than $1 billion in losses. NYSE buys SIAC stake nyse group inc. agreed to pay $40 million to buy out the American Stock Exchange’s 33% stake in the Securities Industry Automation Corp. NYSE will have full ownership of SIAC when the deal closes next month. Cornell rolls out fund-raising plan cornell university launched a $4 billion fund-raising campaign Sharp hike in taxi fares to help build a $650 million THE TAXI & LIMOUSINE COMMISSION unanimously approved biomedical research facility on its an 11% hike in fares after months of lobbying from cab Weill Cornell Medical College campus in Manhattan. Some of companies and drivers. That means the average taxi trip of the funds will be used to attract Economy Watch 2.8 miles will cost $9.60, starting in December. The rates new research projects. will also include a flat fee of $45 for trips to JOHN F. KENNEDY In September, NYC’s jobless rate hit its lowest point since February 1988, dip- AIRPORT from Manhattan—matching the airport-to- ping below the U.S. level. Area inflation posted its first drop since December. Medicaid charges Manhattan rate. Passengers’ cost while sitting in traffic new york state investigators AUGUST ’06 SEPTEMBER ’06 COMPARISON doubles to 40 cents a minute. indicted 13 individuals and five NYC jobless rate 5.1% 4.5% 4.6%1 companies on conspiracy and gettyimages NYC employment change +3,200 +1,200 +61,4002 fraud charges for allegedly NY area inflation change +0.4% -0.5% +3.3%3 defrauding the state’s Medicaid Bloomberg fights Icahn wins system. Attorney General Eliot 1-U.S. unemployment rate. 2-Change since December 2005. 3-Inflation rate for the latest Spitzer is seeking $21 million in 12-month period. movie piracy ImClone seat restitution. mayor michael bloomberg billionaire investor Carl NYC Hotel Stats Broadway Stats announced a crackdown on movie Icahn, who has been lobbying for IBM v. Amazon Occupancy and room rates climbed Attendance and gross kept their up- piracy; the effort includes the a management overhaul of in August, PKF Consulting reports. ward momentum in the week ended introduction of legislation that ImClone Systems Inc., was tapped international business The average room rate of $240.71 10/22—even though 14 shows saw would make piracy punishable by as the drugmaker’s chairman. In Machines Corp. filed two patent for the first eight months of 2006 drops in attendance and 12 posted up to a year in jail. In addition, related moves, Joseph Fischer infringement lawsuits against was well-above 2005 levels; losses in gross, says The League of landlords who allow piracy to resigned as interim chief executive Amazon.com. IBM claims that occupancy edged down to 84.2%. American Theatres and Producers. occur on their properties could and the company’s board named a Amazon violated five of its patents face legal action under nuisance committee to find a new CEO. covering technologies that govern abatement laws. how the site recommends products to customers, displays Michelin mix First guilty plea advertising and stores data. about 20% of the 526 restaurants in options scandal listed in Michelin comverse technology On the move Guide New York City Inc.’s former chief j.p.morgan chase & co. veteran 2007 are new to the financial officer, David William Harrison Jr. announced book since last year, Kreinberg, became the first plans to retire at the end of the when Michelin executive to plead guilty in year as the firm’s chairman. Chief published its first the widening scandal over Executive Jamie Dimon is directory of New the backdating of stock expected to take on the additional York City eateries. options. Under his plea deal, role. … L-3 Communications Only three Mr. Kreinberg agreed to Holdings Inc. named interim Capital IQ’s Weekly Deals Report restaurants—Jean testify against former Chief Executive Michael Georges, Le Comverse Chief Executive Strianese its permanent CEO, TRANSACTION SIZE Bernadin and Per Jacob “Kobi” Alexander, who ending a four-month search COMPANY (in millions) BUYER/INVESTOR TRANSACTION TYPE Se—received has fled to Namibia. following the death of co-founder Loral Space & Communications Inc. $300.0 MHR Fund Management GCI Michelin’s top score Frank Lanza. Manhattan of three stars. —from staff reports and Converium Reinsurance $295.0 National Indemnity Co. SB M&A Kraft spinoff bloomberg news reports (North America) Inc. altria group inc., parent Manhattan Jane Pauley sues company of cigarette maker Philip Right Media Inc. $45.0 Redpoint Ventures, Yahoo Inc. GCI Manhattan Morris and majority owner of over ad section Kraft Foods Inc., said it would FSBO Media Holdings Inc., $75.0 Atlantic Syndication Network Inc. SB M&A specific businesses and former nbc news anchor Jane finalize the spin off of its 88.6% selected assets Pauley, whose battle with bipolar stake in Kraft at its annual Uniondale, L.I. disorder is well-known, sued The meeting on Jan. 31. NABS Inc. $21.0 Integrated Logistics Solutions SB M&A New York Times over her Manhattan appearance in an advertising SIGA Technologies Inc. $9.0 Not disclosed GCI supplement for manufacturers of Ex-Refco execs Manhattan psychotherapeutic drugs. She Selected deals announced during the week of Oct. 15 for companies headquartered in metro New claim innocence York. GCI: Growth capital investment represents new money invested in a company for a minori- claims that the newspaper led her

ty stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing to believe that she was being refco’s former chief executive, newsbloomberg shares of a company without the participation of a financial buyer. interviewed for a news article Phillip Bennett, and its former LEAVING CHASE: William Harrison Jr. will jennifer chiu about mental health. chief financial officer, Robert leave J.P. Morgan Chase’s chairman post.

14 | Crain’s New York Business | October 30, 2006 NEIGHBORHOOD JOURNAL

dent. “You might have a house next to an auto body shop.” Queens tops in tasty street cuisine Though everyone agrees on the need to connect the upland area to dors are on the street and that most Stapleton projects in the works, but decade ago. Revitalization plans in- the waterfront, disputes have arisen Borough cleans up of them are in Queens. the study,co-sponsored by the Inde- clude building new housing,remak- over whether new housing should in Vendy Awards; —hilary potkewitz pendence Community Foundation, ing a park into a town square and be set aside for low-income resi- says a unified approach is needed.At sprucing up Bay Street, the area’s dents and whether putting condos Stapleton advocates least five city agencies are involved commercial spine. on what are now parking lots would S.I. base revamp in the effort to revive Stapleton. The City Council last week ap- hurt local retailers. seek mayor’s help Marilyn Gelber, a former city proved a plan for housing, retail, a Ms. Gelber says that though needs mayor commissioner who runs the ICF, is sports complex and farmers’ market many differences have been ironed ailed as the capital sponsors of a new study of Stat- calling for the mayor to assign a per- at the Homeport, but advocates say out,a leadership vacuum will hinder of street cuisine for en Island’s depressed Stapleton area son to oversee the initiative. upland Stapleton also needs work. progress. “We need someone out of years, Queens has are asking the Bloomberg adminis- Stapleton is a waterfront com- The area is “a hodgepodge that’s the mayor’s office to take the lead now made it official. tration to step up efforts to revital- munity that has struggled since the not well-thought-out,” says George here,” she says. In last week’s Vendy ize it. Numerous city agencies have Homeport naval base closed a Turner, an architect and local resi- —erik engquist HAwards—given to the best street food purveyors—Queens took two out of the four top slots, including No. 1. Out of about 50 nominees in the annual contest, which is sponsored HARBORSIDE FINANCIAL CENTER, JERSEY CITY, NJ by the Urban Justice Center’s Street Vendor Project,a dozen hailed from Queens—more than from any other borough, according to Sean Basinski, project director. The result came as little surprise to Mr. Basinski. Last month, the center released a detailed study of more than 100 New York street ven- “When we needed to diversify our midtown GOOD BITES: Samiul Haque Noor (left) was No. 1; Piedad Cano finished in the top four. offices, a move to dors, recording their income, country of origin and number of years in Harborside made the business. “Our research showed that vendors live in immigrant com- perfect business sense.” munities,” he says. “Queens is one big immigrant community.” In fact,according to census num- David Askren bers,half of the heads of households Managing Director, IXIS North America in Queens are foreign-born, and people from 100 different countries For IXIS North America, finding an office location with quick access to speak 167 languages there.No won- Manhattan was critical. But the firm also wanted to meet the needs of der almost 65% of the vendors in the its business, employees and bottom line. IXIS found all it was looking study live in the borough. for at Harborside Financial Center on the Jersey City waterfront. This year’s winner, Sammy’s Ha- lal Truck, specializing in spicy chick- • A premier, class A office complex with a high-tech infrastructure. en,is a classic example.The pushcart, • Just one, four-minute stop to downtown on the PATH train. owned by Pakistan-born Samiul Haque Noor, has become a culinary • On-site garage parking, restaurants, fitness club, shops and luxury beacon on 73rd Street and Broadway Hyatt hotel. in Jackson Heights, Queens. • An award-winning and responsive property management team. Piedad Cano, a Colombian na- • Exceptional economic incentives and cost-effective rents. tive whose cart has been a fixture in Elmhurst for two decades, finished When any company moves offices, it faces tough decisions. For IXIS in the top four. The Arepa Lady, as North America, choosing the ideal location was easy with Harborside. she’s known, sells her now-famous cornbread cakes—filled with To see why Harborside makes perfect sense for your business, cheese or meat—every weekday contact Mack-Cali today. evening beneath the No. 7 train overpass at Roosevelt Avenue and 79th Street. One of the big challenges for food vendors is getting a permit. The Department of Health and Mental Hygiene limits the number of carts in the city to 3,000. A two- year permit costs $6,000. New li- censes are awarded in a lottery as they become available. Harborside Financial Center, Jersey City, NJ “We know people who have been 83,000 sq. ft. available for lease. waiting eight or nine years for a per- Contact: Christopher DeLorenzo, 201-986-1463 [email protected] mit,” Mr. Basinski says. Tom Savoca, 201-261-0359 [email protected] The Street Vendor Project esti- www.harborsidefinancialcenter.com 2006 Mack-Cali mates that 6,000 unlicensed ven- ©

October 30, 2006 | Crain’s New York Business | 15 SMALL BUSINESS New retailers remake Brooklyn strip

Jonas, owner of The Farm on an influx of younger, more affluent Restaurants, stores arrive; older ones Adderly, which opened in July. people drawn by the mix of reason- spruce up in diverse Flatbush neighborhood Welcome to Cortelyou Road in ably priced Victorian homes and the Flatbush section of Brooklyn, new co-ops. Frustrated that they etable casserole for the area’s vegans the seven-block-long commercial couldn’t find the services they need- BY JEAN ENDE and vegetarians, a special fish dish heart of an area that proudly bills it- ed,some of them have opened shops popular with both Jewish and Mus- self as one of the most ethnically di- such as Hairloom, a chemical-free ary jonas wants his lim families, and organic hot dogs verse in the city. There, new entre- salon that specializes in African- new restaurant to be a for the children of the young hip- preneurial arrivals like Mr. American hairstyles, and the Picket

place where the whole sters popping up in growing num- Jonas—with help from a revitalized Fence, a Continental eatery. jennifer chiu neighborhood feels bers in the area. merchants association—are trans- Other additions include Belle & welcome and well fed. “We’re always mindful of the forming the retail landscape. Maxie, a children’s toy and clothing ilies with young children; Latin GOn a recent day, he offered a veg- neighborhood’s diversity,” says Mr. In recent years, the area has seen store for the growing number of fam- Fever,which offers yoga,exercise and South American dance classes; and Vox Pop, a bookstore/café where the sign over the door reads, “Books, Coffee, Democracy.” Responding to change some olderestablishments have responded to all the changes by sprucing up their storefronts, expanding inventory or adding services. The Flatbush Food Co-op, a Cortelyou Road institution for 21 years, has expanded its hours and started a delivery service. New merchants are also making their mark by starting their own community groups and joining existing ones, such as the Cortelyou (Bells) Road Merchants Association.Long stagnant until two years ago, CoRMA has become the area’s leading advocate in the last year under the direction of Sander Hicks, owner of Vox Pop. “I started going to meetings, and every time I suggested something, someone said, ‘That’s a good idea, why don’t you do it,’”says Mr.Hicks. “Pretty soon, I was in charge.” CoRMA has vigorously waved the flag for the area. Last year, the group launched a Web site with photos and information about available commercial space. CoRMA also (Whistles) publishes a newspaper that promotes local merchants, supports politicians who promise to improve services in the area, and sponsors community events. One of Mr. Hicks’ current priorities is to try to lure a bank to the area, which has none. “The more people who come to this street, the better it should be for Oxford. Health care coverage with all the extras. everyone,” says Chelsi Meyerson, co-owner of The Picket Fence. Demand, but little supply similarly, Friends of Cortelyou Road has been reaching out to store What sets an Oxford product apart from the ordinary are the little extras – as well as the big extras. Starting owners in other areas.Jan Rosenberg, with the large number of plan designs we offer to help meet the needs of your business. And our localized head of Friends and co-owner of the year-old Brooklyn Hearth Realty, customer service. You’ll notice our strong relationships with local physicians and hospitals, in addition to wants to let owners know that “we’ve a renowned national network. We have an intelligent approach to medical management that helps keep our got lots of demand but little supply.” members healthy, while also helping to keep costs down. There’s also our popular and practical wellness The organization has also helped raise seed money for local businesses programs, where our members get extras like discounts on gym memberships. At UnitedHealthcare, we’re and has surveyed residents to find out proud to be able to offer Oxford products to you. To ﬁ nd out more about what makes Oxford right for what they would like to see. Answer: your business, call your broker. Or call 800-642-6877, or go to uhctoday.com/oxfordhealth. high-end stores, gyms, bookstores, adult clothing stores and ethnic gro- ceries—especially ones that feature Middle Eastern products. All told, in the past two years more than a dozen sleek new shops have replaced some of the drab storage facilities, decaying 99¢ stores and bodegas that had long dominated the area. © 2006 United HealthCare Services, Inc. Insurance coverage provided by or through United HealthCare Insurance Company of New York. Oxford’s HMO products are underwritten by Oxford Health Plans (NY), Inc., Oxford Health Plans (NJ), Inc. and Oxford Health Plans (CT), Inc. and Oxford’s insurance products are underwritten by Oxford Health Insurance, Inc. COMMENTS? [email protected]

16 | Crain’s New York Business | October 30, 2006 © 20 06 FedEx.

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over this,” says Spence Mehl, a senior vice president at Retail Consult- Tower Records’ retail space in play ing Services.The asking rent is $275 per square foot for the 11,000- Street at Lincoln Center and 692 responsible for leasing the Lin- square-foot ground floor. Brokers keep eye on Broadway at East Fourth Street. coln Center location. That site —elisabeth butler W. 66th, E. Fourth West Sacramento, Calif.-based includes 50,000 square feet of Tower Records is expected to vacate retail space on three floors. locations; Woolworth both locations by Jan. 1, and the Landlord Millennium Partners Woolworth condos staying commercial? stores are selling the last of their is asking for $350 per square CDs and DVDs. Because both foot for the 11,000-square-foot may be scrapped

s the music fades at properties are spacious, The Con- ground floor. gettyimages the owner of the landmark Wool- Tower Records, retail tainer Store, clothier H&M and Meanwhile, the 35,000- TOWER will vacate its 692 Broadway location. worth Building at 233 Broadway, brokers are eyeing the other major retailers are circling. square-foot downtown site is between Barclay Street and Park bankrupt company’s “We got a flurry of activity imme- being handled by Retail Con- Place, might shelve its plans to con- two biggest locations in diately,” says Gene Spiegelman, the sulting Services Inc., the Manhat- leasing all Tower Records locations. vert the building’s tower into luxu- Athe city: 1961 Broadway at West 66th Cushman & Wakefield Inc. broker tan-based company responsible for “The national [retailers] are all ry condominiums. The Witkoff Group, which acquired the Cass Gilbert-designed building for $155 million in 1998, plans to make a decision within the next 30 days. Witkoff has emptied the top of the building of tenants and was planning to turn the 29th through 57th floors into high-end housing units. But as the outlook for leasing downtown brightens, the firm is weighing whether to change course and market the space to office tenants. “Considering how strong the of- Great lawyers will find a way fice market is downtown, we have a responsibility to evaluate the pros- to turn the tables in your favor pect for retenanting it as an office building,” says Steven Witkoff, the company’s chairman. Mr. Witkoff, who owns the Woolworth Building with Rubin Schron and other investors, is also the developer of 55 Wall St., a luxury condo project. The Woolworth Building’s tower totals 150,000 square feet,but because of the “loss factor” from conversion into condominiums, there would only be 110,000 square feet available for sale as residential. —julie satow Baseball moves to top of lineup japanese Norinchukin Bank is moving eight floors down at 245 Park Ave. to make room for an expansion by Major League Baseball. The bank,which had been on the 29th floor, is leasing 36,300 square feet on the 21st floor of the 46-story building, between East 46th and East 47th streets. Major League Baseball, which expects revenues of more than $5 billion this year, will expand into the 29th floor for a total of 147,000 square feet. The sports league has occupied the 30th,

© 2006 Bingham McCutchen LLP visit bingham.com/solutions 31st and 34th floors for the past eight years. Completing the game of musical chairs, Xerox Corp., which occupies the 21st through 23rd floors, is downsizing and will vacate the 21st Boston floor to make room for the bank. Hartford “By moving Norinchukin, we London were able to accommodate both Los Angeles Major League Baseball and Xerox,” New York says Dennis Friedrich, U.S. presi- Orange County Legal insight. Business instinct. dent of owner Brookfield Proper- San Francisco ties. The deal will be finalized by Silicon Valley next year.“It will happen in a domi- Tokyo no effect,” he adds. Walnut Creek Washington The building is fully leased; the bingham.com average asking rent at nearby buildings on Park Avenue is $84, according to Cushman & Wakefield Inc. Cushman & Wakefield represented Norinchukin Bank. —julie satow

18 | Crain’s New York Business | October 30, 2006 BREAKBREAK FREEFREE FROMFROM HOTSPOTSHOTSPOTS

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BUSINESS OF LAW INSIDE Attorneys counter proposed ad bans with free-speech argument PAGE 25 Largest law firms in New York are ranked by number of area lawyers PAGE 26 New rules for e-discovery PAGE 32 Bush good for ACLU’s business Director focuses on issues connected to war on terror Special Registration for Men from BY HILARY POTKEWITZ Muslim Countries, no-fly lists, detention of non-enemy combatants when anthony romero took over and warrantless wiretaps. as executive director of the Ameri- It may be a trying time for civil can Civil Liberties Union in 2001, liberties, but it has been a great run he was a 36-year-old hotshot ready for the ACLU. Revenues have more to make his mark. than doubled over the past five years Fresh off a stint as an executive at and are projected to hit $28 million the Ford Foundation, he was the this year. The ACLU Foundation’s first Hispanic and openly gay man net assets grew 81% in the five-year appointed to the ACLU post. period, to more than $222 million. Among his top agenda items: Turn Membership has surged 91%, to up the volume at the ACLU and 573,000. If the ACLU were a pub- make its views more relevant in publicly traded company, most analysts lic debate. would be quite pleased with its per- Mr. Romero didn’t have to wait formance. long for his opportunity. “The membership bulge is really A week into his job, Sept. 11 driven by this tremendous sense of sparked an immediate national de- alarm about where the country is bate over civil liberties. It became going on spying and detention,”says clear that the ACLU’s reaction to Samuel Walker, professor emeritus the government’s new war on terror- of criminal justice at the University ism would define his legacy. of Nebraska and author of In De- “We weren’t lacking for things to fense of Civil Liberties: A History of do on Sept. 10,” Mr. Romero says. the ACLU. But after the attacks, he asked him- Membership data partly sup- self, “How do you step up in a way ports that statement. Donations STEPPING UP: that history is going to demand of spiked after the Patriot Act was Under Anthony Romero, the ACLU is you?” reauthorized in July 2005, as well as taking on the Bush The ACLU has thrust itself into when The New York Times ran front- administration. the spotlight by engaging President page stories about warrantless wire- George W.Bush in contentious bat- tapping and the ACLU’s lawsuit

buck ennis tles over the Patriot Act, the 2002 See BUSH GOOD on Page 24 Despite boom, rising costs put attorneys on defensive his 16 employees to lunch. He also hattan will cost at least double his Wage, rent hikes took them to a Yankees playoff current rent. eat profits even as game, and even bought “I’ve asked my office some Broadway tickets for UNDER manager and executive assis- legal market grows; his top performers. PRESSURE tants to save as much as pos- So why is he preparing sible,” says Mr. Bailey, who firms watch pennies for the worst in the midst of FIRMS step runs his own boutique firm. such growth? up marketing, “I have to assume that things BY TOMMY FERNANDEZ strengthen His costs are skyrocket- client ties will get tougher—I’ve even ADAM BAILEY ing.The lease on his 7,000- Pages 30-31 hired an investment firm to expects to pay it’s been another good year for square-foot office, for see how we can make more double his current real estate attorney Adam Bailey. which he pays $12,700 per month, from the money we already have.” rent for any new Revenues at his firm have doubled ends this year. He anticipates that It’s not only small firms that are space he leases.

over last year’s,so he regularly treats any new space he leases in Man- See RISING COSTS on Page 22 buck ennis

October 30, 2006 | Crain’s New York Business | 21 REPORT BUSINESS OF LAW

Link,chairman and managing partner of Cadwalader Wickersham & Rising costs put attorneys on the defensive Taft.“A wave of salary increases can have a significant impact on a firm’s bottom line,” he says. Continued from Page 21 grow, according to Citigroup Pri- “It’s a paradox; the industry is year. After five years of virtually no watching their pennies. This is the vate Bank’s law firm group. Few healthier than ever,” says Dan increases, salaries for first-year as- Valued associates new world order for New York City firms can ignore the fiscal worries DiPietro, managing director and sociates at the leading law firms and those increases trickle down law firms of every size: aggressive of rising overhead costs, fe- head of client relations of soared $20,000, reaching $145,000 to other firms. Legal recruiter belt-tightening and soul-searching rocious negotiations with UNDER Citigroup Private Bank’s law a year, with more experienced asso- Michael Lord says management during years of relative plenty. clients on fees and, for the PRESSURE firm group. “But it disguises ciates enjoying similar eye-pop- can’t afford to ignore these salary in- The pressure is on, even though largest firms,the first real as- the fact that some firms are ping raises. creases and other perks because as- revenues of the city’s corporate legal sociate salary hikes in over increasingly distancing them- Add benefits, administrative sociates are the backbone of produc- market grew at least 3% during the five years. selves in profitability from support, training and recruitment tivity and the good ones are heavily first six months of this year com- Consequently, even as the mar- others that are struggling.” expenses, and the cost of employing courted by competitors. pared with the year-earlier period ket expands, some firms are begin- Wage hikes are perhaps the one associate can run as high as “You never want to lose your as- and are expected to continue to ning to falter. biggest drain on profitability this $400,000 per year, says Robert sociates, especially the midlevel ones,” says Mr. Lord. “They’re gold.” The price of real estate is the next major headache for law firms, with rents jumping more than 25% © 2006 Continental Airlines, Inc. since 2002.Law firms are in a tough spot, because they need to be in pricey prestigious buildings in order to attract talent and impress OTHER AIRLINES FLY The expense of employing one associate ALL OVER THE WORLD. can go up to $400,000 a year THEY JUST DON’T LAND clients. To adapt, firms are making more efficient use of their space and moving as many back-office operations as they can to less expensive locations. IN AS MANY PLACES. John Hooper, partner in charge of the New York office of Edwards Angell Palmer & Dodge, says that because of the Internet, casework can be easily handled in multiple cities, such as Stamford, Hartford and Providence.Clients don’t mind, The most international destinations as long as the service remains the same. “We find that our clients appreciate these and other efforts to of any U.S. airline. control legal costs,” he says. Clients want more It’s not where you fly. It’s where you land. And we go to over 290 destinations in more lawyers have no choice but to than 45 countries. So if you do business around the world, we’ve got more consider these and other options go- lands in which to land. For reservations and information, ing forward.Cadwalader’s Mr.Link go to continental.com or call 1-800-523-FARE. says that clients now want volume discounts from their firms, per- Includes service operated by ExpressJet Airlines, Inc. d/b/a Continental Express. formance-related fees and regular cost updates. More clients are also allowing firms to bid for their accounts online. Meanwhile,clients of all sizes are moving business to smaller firms, such as Morrison Cohen,to take advantage of their cheaper rates: Mor- rison partners on average charge about $400 per hour, just slightly above the fees charged by associates at bigger law firms. Morrison Managing Partner David Scherl says that his firm has snagged more than two dozen ma- Work Hard. jor Wall Street accounts over the past three years due to this fact alone. “Clients increasingly want Fly Right. ® more rational fees,” says Mr. Scherl. “They want better value.”

COMMENTS? [email protected]

22 | Crain’s New York Business | October 30, 2006 Newmark Knight Frank Newmark Knight Frank is pleased to announce that is pleased to announce that

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North America • Europe • Asia-Pacific • South America • Africa www.newmarkkf.com We mean business. REPORT BUSINESS OF LAW Office and Retail Leasing Bush good for ACLU’s business Continued from Page 21 When discussing the organiza- troversy below deck. Finding value that others overlook. against the National Security tion, Mr. Romero sounds like a cor- “They’re marketing civil liberties Agency. porate executive, using phrases like as opposed to being civil libertari- “It’s like my daily Nielsen rat- “streamlining our operations” and ans,” says Norman Siegel, executive ing,” Mr. Romero says of the num- “coordinated strategies.” He refers director of the New York Civil Lib- ber of calls and donations following to the ACLU “brand.” erties Union from 1985 until 2001. the appearance of a big article. Past efforts were more ad hoc; To qualify for federal grants, for But the growth story isn’t a result different branches of the organiza- example, Mr. Romero complied of market demand alone. Mr. tion would work on issues inde- with a controversial mandate to Romero engineered a management screen ACLU employees for affilia- shakeup in his first year that includ- tions with groups suspected of aided firing the ACLU’s longtime ‘It’s like my daily ing terrorists. He floated a proposal Other Commercial Divisions: marketing firm.“They’d been doing to monitor employees’ e-mails. Development • Property Management • Asset Management it for 20 years, and it was stale,” he Nielsen rating,’ Management requested that di- NYS LICENSED REAL ESTATE BROKER says. rectors refrain from speaking to the Romero says media about internal disagree- Marketing push ments. As a result, two longtime mr. romero hired OMP, a Wash- of donations board members resigned this year. ington-based direct marketing firm “When I was there, we did what with experience on political cam- was right; very rarely did we worry paigns. OMP launched an aggres- about whether it was going to be sive direct mail effort and poured good for fund raising,” says Mr. money into the ACLU’s Web oper- pendently. When the ACLU files a Siegel, though he concedes that Mr. ation. It developed the organiza- lawsuit,it now launches a direct mail Romero’s strategy has led to finan- tion’s “Safe and Free” marketing campaign on the same issue—even cial success. campaign and beefed up spending putting another mailing on hold so on advertising. as not to confuse the message. Preserving the brand “There’s a more media-savvy ap- in business terms, it could be said proach,” Mr. Walker says. that the ACLU’s critics are con- Under Mr. Romero, the organi- cerned about preserving the brand. If all accounting firms are zation has built a television studio in Some members and former directors Manhattan to increase its media ap- have formed SavetheACLU.org and created equal, why are we pearances, developed a documen- agitated for Mr. Romero’s ouster, tary-style series on Court TV,called claiming that he’s compromised the one of the fastest Freedom Files, and Web-based ani- group’s principles. mated comic strips. It also stream- Mr. Romero and his supporters growing? lined its message. say disagreement is part of the “We decided to become com- ACLU’s pedigree. hat makes Amper one of the Crain's pletely focused on the discussion of “In a democratic body of outspo- WNew York Business fastest-growing the war on terror and its impact on ken, passionate civil libertarians, in- CPA firms and one of the largest firms in the civil liberties,” Mr. Romero says. evitably there’s going to be a certain US? It's the trust and confidence that That meant prioritizing ACLU boisterous group of people that de- thousands of clients have placed in us for battles, which has stirred up a feisty bate everything,” Mr. Romero says. more than 40 years. internal dispute. Critics accuse it of He’s not worried—probably be- giving short shrift to other issues— cause he’s presiding over the including certain free speech mat- ACLU’s most successful fund-rais- Amper meets the needs of law firms and ters and personal property rights— ing campaign ever.“We are a differ- attorneys with needs such as: that might alienate potential ent organization than we were five donors. years ago, and some members find An organization accustomed to change disconcerting.” Litigation and valuation services, leaving controversy in its wake is not including forensic accounting and expert necessarily comfortable with con- COMMENTS? [email protected] testimony Accounting and bookkeeping ACLU’S SEPT. 11 DOCKET Audits, compilations and reviews ALI V. RUMSFELD Lawsuit seeks to hold military leaders accountable for the Tax planning and return preparation torture and abuse of nine detainees held in Iraq and Afghanistan. Case will Wealth management be heard in federal court in Washington, D.C., on Dec. 8. EL-MASRI V. TENET Lawsuit on behalf of a German citizen seized in Macedonia and detained in Afghanistan by the CIA. Case was dismissed by a federal judge. ACLU’s appeal will be argued before the U.S. Court of Appeals for the For more information on how Amper can 4th Circuit in November. meet your needs, contact us today: ACLU V. DEPARTMENT OF DEFENSE Lawsuit seeks to obtain documents about torture and rendition. The government, having produced 100,000 pages, New York appealed a federal court order requiring the release of photos. Case will be Brian Karnofsky CPA argued before the U.S. Court of Appeals for the 2nd Circuit on Nov. 20. 6 East 43rd Street ACLU V. NATIONAL SECURITY AGENCY Challenge to NSA’s program of New York, NY 10017 warrantless surveillance. In August, federal judge in Detroit declared the 212.682.1600 program unlawful. Government’s appeal will be argued before the U.S. Court [email protected] of Appeals for the 6th Circuit. DOE V. GONZALES Challenge to the government’s use of so-called national security letters to obtain library records under the Patriot Act. The law prohibited librarians from identifying themselves as a letter’s recipient. Federal judge in Connecticut ruled in favor of ACLU in September 2005. Government appealed but dropped the case after Congress amended the Patriot Act.

Source: ACLU “Seeing Beyond the Numbers...” www.amper.com REPORT BUSINESS OF LAW NEW JERSEY SHELVES REGS OPPOSITION TO NEW LEGAL ADVERTISING RULES has been so fierce that the New Jersey court has—at least temporarily—shelved the regulations, calling Fighting ad crackdown for further study. At the heart of the New Jersey rules is a provision that would have barred the release of Super Lawyers and Best Lawyers. These directories use a variety of selection methods, such as interviewing lawyers, to determine Attorneys counter their Web sites with the disciplinary of the New York City Bar Associa- the top attorneys in a particular state. committee for review. This has tion, says his firm’s Web site has In some cases, the selected lawyers can buy advertisements in the proposed rules with drawn particular fire from large cor- 7,000 pages,typical of the size main- directories, which are stuffed in newspapers and distributed widely. Critics porate law firms. The powerhouse tained by other large firms.The Web argue that there is a clear conflict of interest when attorneys buy ads in lawyers don’t do much advertising, site makes changes daily. Under the free-speech argument publications that are supposed to celebrate the best legal minds. but they do run big Web sites. “We proposal, the entire site would have would have to file truckloads of pa- to be printed out every day and sent BY STAN LUXENBERG per that no one would look at,” says to the courts, says Mr. Keyko. David Keyko, a partner with Pills- flood of comments asking that the The new rules are not expected to be attorneys in new york are anx- bury Winthrop Shaw Pittman. More comments justices moderate their proposals, issued until January, at the earliest. iously awaiting a decision from the Mr. Keyko, who chairs the pro- because the office of Court Ad- the deadline for public comments state courts—and this time it’s per- fessional responsibility committee ministration has received such a has been pushed back,until Nov.15. COMMENTS? [email protected] sonal. The New York State Office of Court Administration is considering new rules that would ban legal advertisements that seem to promise huge settlements to accident victims, restrict other types of attorney Shifting gears? advertising and perhaps go as far as to regulate law firm Web sites. But true to the spirit of some of the ads,lawyers are not about to give

up without a fight. All Rights Reserved. LLP. Shapiro tein “The rules read as if there is no First Amendment protection,” says noted free speech advocate Floyd © 2006 Dicks Abrams, who has been hired by a group of plaintiff lawyers to look into any new restrictions. Mr. Abrams, a partner with Cahill Gordon & Rein- del, has threatened to sue if the justices go forward with their proposals. New York’s attempt to limit some forms of promotions is part of a growing effort around to country to reel in attorney advertising.An ethics committee appointed by the New Jersey Supreme Court recently proposed banning publication of Super Lawyersdirectories.In a similar vein, the Florida bar disciplined personal-injury lawyers who told accident victims to call (800) PIT-BULL. Sweeping list whether or not the rules violate the First Amendment, the New York court’s list of restrictions is extensive. Under the proposal, firms would not be able to use paid testi- monials—a provision that could end the long-running campaign where actor Robert Vaughn promotes Elmira personal-injury specialist Proudfoot Law Firm. Ads also would not be allowed to depict a judge or courthouse. No one could make statements that create the ex- pectation of success. Lawyers concede that some ad- Building momentum. vertising may be misleading.“If you pick a name like bulldog, you may be suggesting that you can achieve un- realistic results,” says Clifford P. Case III,a partner with Carter Led- yard & Milburn. EXPERIENCE INNOVATION. Loews Corporation did. But Mr.Case and other attorneys argue that the proposals are too Loews Corporation, a Fortune 500 company and one of the largest holding companies in the U.S., broad, stifling legitimate marketers recently expanded its domestic natural gas pipeline holdings when its Boardwalk Pipeline LLC along with the misleading hucksters. subsidiary acquired Gulf South Pipeline Company LP. To execute this complex $1.1 billion deal in Corporate lawyers staunchly oppose less than two months, Loews turned to Dickstein Shapiro for comprehensive legal counsel to a provision that would require communications not directly about a case navigate corporate, financial, tax, environmental, and regulatory obstacles. By adding Gulf South’s to carry the words “Attorney Adver- 8,000-mile interstate natural gas pipeline, gathering, and storage system, Loews continues to build tising” in red. The lawyers fear that and diversify its natural gas portfolio. they would have to put the red ink on newsletters and routine letters to clients, causing the papers to be thrown away as junk mail. WASHINGTON, DC | NEW YORK | LOS ANGELES | DICKSTEINSHAPIRO.COM Another stipulation would require firms to file material from

October 30, 2006 | Crain’s New York Business | 25 REPORT BUSINESS OF LAW

TOP FIRMS BOOST ATTORNEY COUNT law firms are like armies: They need boots on the ground to succeed. Indeed, the firms on Crain’s top 25 list boosted the number of attorneys de- ployed in the New York area by 3.7%. Firmwide, they increased their attorney count by 5.2%. A handful of firms experienced declines. The largest drop was at Shearman & Sterling; the ven- erable firm’s number of New York area lawyers slid 13.7% to 371. White & Case had the second- biggest decline, falling 9.8% to 434. Finally, perhaps one of the biggest developments concerned associates’ salaries: Most leading firms have hiked first-year pay to $145,000 this year from $125,000. jennifer chiu New York Area’s Largest Law Firms Ranked by number of area lawyers

2006 lawyer breakdown, by practice area2

2006 lawyer breakdown

2 4 2 NY area lawyers 2006 2006 NY area NY area Rank Firm/senior partner(s) in New York1 20062 20053 Partners Associates Of counsel Banking andBankruptcy commerceCorporate Entertainmentand securitiesExecutiveHealth compensation/benefits careIntellectualLabor property/new andLitigation employment mediaReal estateTax Trusts and Otherestatesparalegals5 personnel6 Skadden Arps Slate Meagher & Flom and Affiliates 737 734 187 537 13 71 27 259 13 12 7 41 15 200 39 43 8 2 251 1,886 1 4 Times Square; (212) 735-3000 www.skadden.com; Robert C. Sheehan

Paul Weiss Rifkind Wharton & Garrison 634 593 98 511 25 22 165 4 12 370 23 24 12 2 190 1,390 2 1285 Sixth Ave.; (212) 373-3000 www.paulweiss.com; Alfred D. Youngwood

Simpson Thacher & Bartlett 634 619 130 473 31 64 13 236 15 29 5 205 22 25 11 9 160 1,333 2 425 Lexington Ave.; (212) 455-2000 www.simpsonthacher.com; Philip T. Ruegger III

Weil Gotshal & Manges 604 594 162 408 34 43 71 185 66 11 156 20 40 12 85 1,374 4 767 Fifth Ave.; (212) 310-8000 www.weil.com; Stephen J. Dannhauser

Davis Polk & Wardwell 537 487 115 397 25 aaaaaaa aaaaa 157 1,325 5 450 Lexington Ave.; (212) 450-4000 www.dpw.com; John R. Ettinger

Debevoise & Plimpton 503 485 105 369 29 237 209 46 11 105 1,182 6 919 Third Ave.; (212) 909-6000 www.debevoise.com; Martin Frederic Evans

Proskauer Rose 484 471 133 310 41 130 11 126 160 23 24 10 61 1,056 7 1585 Broadway; (212) 969-3000 www.proskauer.com; Allen I. Fagin

Cravath Swaine & Moore 476 446 83 390 3 211 8 223 21 13 182 1,456 8 825 Eighth Ave.; (212) 474-1000 www.cravath.com; Robert D. Joffe

Sidley Austin 7 459 416 142 284 33 8 268 1 106 27 29 7 13 65 832 9 787 Seventh Ave.; (212) 839-5300 www.sidley.com; Joseph W. Armbrust, George J. Petrow

Sullivan & Cromwell 458 393 112 319 27 29 125 13 11 10 156 18 29 19 48 137 1,351 10 125 Broad St.; (212) 558-4000 www.sullcrom.com; H. Rodgin Cohen

Schulte Roth & Zabel 440 389 74 345 21 aa a aaaaaaa 63 859 11 919 Third Ave.; (212) 756-2000 www.srz.com; Executive Committee

Cleary Gottlieb Steen & Hamilton 435 440 83 320 32 aaa a aaaaaa 79 1,135 12 1 Liberty Plaza; (212) 225-2000 www.cgsh.com; Mark A. Walker

White & Case 434 481 109 299 26 aaaaa aaaaaaa 74 1,017 13 1155 Sixth Ave.; (212) 819-8200 www.whitecase.com; Duane D. Wall

Cadwalader Wickersham & Taft 415 382 68 284 63 9 29 176 2 14 97 57 25 6 92 924 14 1 World Financial Center; (212) 504-6000 www.cadwalader.com; Robert O. Link Jr.

Willkie Farr & Gallagher 398 383 94 282 22 5 30 157 10 27 2 107 32 16 11 1 66 929 15 787 Seventh Ave.; (212) 728-8000 www.willkie.com; Jack H. Nusbaum

Wilson Elser Moskowitz Edelman & Dicker 395 422 137 243 15 aaaa aaaaa aa 37 902 16 150 E. 42nd St.; (212) 490-3000 www.wilsonelser.com; Thomas W. Hyland

Continued on Page 28

26 | Crain’s New York Business | October 30, 2006

REPORT BUSINESS OF LAW

2006 lawyer breakdown, by practice area2

2006 lawyer breakdown

2 4 2 NY area lawyers 2006 2006 NY area NY area Rank Firm/senior partner(s) in New York1 20062 20053 Partners Associates Of counsel Banking andBankruptcy commerceCorporate Entertainmentand securitiesExecutiveHealth compensation/benefits careIntellectualLabor property/new andLitigation employment mediaReal estateTax Trusts and Otherestatesparalegals5 personnel6 Fried Frank Harris Shriver & Jacobson 381 405 93 266 22 22 158 14 6 114 40 17 7 3 130 965 17 1 New York Plaza; (212) 859-8000 www.friedfrank.com; Valerie Ford Jacob, Justin Spendlove

Kaye Scholer 374 354 101 223 50 32 31 53 2 52 7 143 35 9 7 3 82 834 18 425 Park Ave.; (212) 836-8000 www.kayescholer.com; Barry Willner

Shearman & Sterling 371 430 83 245 43 aaaaaaaaaaaaa 76 632 8 19 599 Lexington Ave.; (212) 848-4000 www.shearman.com; Rohan Weerasinghe

Latham & Watkins 365 342 77 277 11 a a a aaaa a aa a 50 670 20 885 Third Ave.; (212) 906-1200 www.lw.com; David A. Gordon

Milbank Tweed Hadley & McCloy 329 321 87 231 11 104 24 77 3 22 1 64 7 12 11 4 47 678 21 1 Chase Manhattan Plaza; (212) 530-5000 www.milbank.com; Mel M. Immergut

Greenberg Traurig 328 292 119 169 40 11 8 60 10 6 55 11 82 56 13 3 13 46 660 22 200 Park Ave.; (212) 801-9200 www.gtlaw.com; Richard A. Rosenbaum

Kramer Levin Naftalis & Frankel 317 299 99 177 41 8 31 65 4 46 7 91 38 10 7 10 63 719 23 1177 Sixth Ave.; (212) 715-9100 www.kramerlevin.com; Paul S. Pearlman

Jones Day 308 287 82 213 13 28 12 51 5 91 7 88 12 14 58 616 24 222 E. 41st St.; (212) 326-3939 www.jonesday.com; Dennis W. LaBarre

Clifford Chance U.S. 303 255 72 205 26 33 9 105 7 15 16 3 76 11 15 13 31 646 25 31 W. 52nd St.; (212) 878-8000 www.cliffordchance.com; Craig S. Medwick

New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain’s New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that the listings are complete. To qualify for this list, firms must have an office in the New York area. 89 firms were contacted for this list. All information was supplied by the firms. In case of tied figures, firms are listed alphabetically under the same ranking number. In the breakdown by practice area, if lawyers practice in more than one area, they are counted only once, under their predominant area of practice. Indicates that the firm has the practice but the number of lawyers is unavailable. All firms in the top 25 have New York area offices in Manhattan. 1-May indicate managing partner or other title. 2-As of Sept. 1, 2006; includes first-year associates starting this fall and winter who were hired on or before Sept. 1, 2006. 3-As of Dec. 31, 2005. 4-As of Sept. 1, 2006; includes first-year associates starting this fall and winter who were hired on or before Sept. 1, 2006. Includes counsel and special counsel. 5-As of Sept. 1, 2006. 6-Includes attorneys and staff as of Sept. 1, 2006, and incoming first-year associates. 7-Sidley Austin Brown & Wood changed its name to Sidley Austin effective Jan. 1, 2006. 8-As of Aug. 25, 2006. Research: Denise Southwood and Adrianne Pasquarelli All Crain’s business lists are available at www.NewYorkBusiness.com/lists.

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Services provided by Empire HealthChoice HMO, Inc., and/or Empire HealthChoice Assurance, Inc., independent licensees of the Blue Cross and Blue Shield Association. REPORT BUSINESS OF LAW THE OLD GUARD NOT ALL FIRMS are eager to usher their marketing departments into Marketing executives make rain business development, however. “Some firms have brought in In-house experts and the position of chief marketing are emerging, and they are doing a dom to promote themselves. But for sales professionals,” says Robert officer was almost unheard-of. lot of targeted client research,work- years, firms limited their marketers Link, chairman of Cadwalader take bigger role in Things have changed mightily: ing with practice groups and help- to tasks such as creating brochures, Wickersham & Taft, which business development Thanks to a consolidation ing to identify leads,” says overseeing advertising agencies and represents financial institutions that’s spawned bigger,farther- UNDER Ms. Manton, who heads a handling internal communications. and elite corporations. “I don’t flung firms,marketing depart- five-person marketing team know of any great success stories BY STEVE GARMHAUSEN PRESSURE Nonworking model ments are not only gaining re- at Loeb & Loeb, a 250- with firms of our kind.” sponsibility for full-blown lawyer national firm with a “lawyers were the external sales But Bruce Alltop, chief when jennifer manton graduated image campaigns and online New York office. force,” says Bruce Alltop, chief mar- marketing officer of Mintz Levin in 1991 from the University of West branding, but they are increasingly Law firms have been building and keting officer of Mintz Levin Cohn Cohn Ferris Glovsky and Popeo and Virginia,she never considered work- pulling up a chair alongside firms’rain- refining their in-house marketing Ferris Glovsky and Popeo.“That’s a a veteran of Ernst & Young, says ing as an in-house marketer at a law makers as conduits of new business. staffs since a key U.S.Supreme Court model that doesn’t seem to work, in firm. The job was relatively new— “Business development people decision in 1977 expanded their free- my opinion.” that the accounting industry has successfully adopted the model, and that its use is inevitable in the legal industry. “I think law firms

Marketers’ evolution toward a business development role coincides with organizational changes at many firms: Rather than dividing themselves into specialties such as bankruptcy,intellectual property and securities, firms are increasingly forming teams to serve specific industries. Mintz Levin recently hired Karin Duncker, former executive director of the New York Biotech- nology Association,to lead business development in its life science and biotechnology area,says Mr.Alltop, who heads the firm’s 18-member marketing department. Strengthening relationships loeb & loeb also is adopting an industry-by-industry approach. As it does, Ms. Manton’s five-person marketing team is immersing itself in research aimed at helping lawyers broaden relationships with clients. “Competition is steep out there; firms want a lot of value, expertise and sophistication,” says Ms. Man- ton, chairwoman of the Legal Mar- YOUR LEGACY keting Association’s annual confer- ence committee.“This is about trying to entrench yourself with that client and learning everything you can.” Using research and analysis, Ms. Manton’s team might advise a lawyer to propose a year-ahead planning meeting with a big client, or send clients an article by the lawyer. “Our job is to help them figure out ways to nurture the relation- desire to leave life’s work to your family ship,” says Ms. Manton. Similar coaching takes place at desire to leave life’s work to the IRS Edwards Angell Palmer & Dodge,a 500-attorney national firm, says John Hooper, partner in charge of the 75-lawyer New York office. “I still think lawyers are uncom- He’s got your laugh. And your love of ice cream. So why not make sure he gets everything else you want him to have? fortable obtaining business,” says With more than 100 years of experience in the personal trust business, Northern Trust offers a breadth and depth of Mr.Hooper,who oversees the firm’s knowledge few can match. You’ll find our expertise second to none when it comes to philanthropy, asset management six marketing personnel. and sophisticated wealth transfer strategies. It’s your legacy, and whether it lives on through your family, community or favorite In order to measure the results of the marketer-as-business developer cause, Northern Trust will work as hard to preserve it as you did to create it. For more information, call Jeff Kauffman at approach,law firms are beginning to 212-339-7474 or visit northerntrust.com. create targets for revenue growth, client retention and new client recruitment, Mr. Alltop says. “As the legal profession begins talking to clients as businesspeople and acting like businesspeople,we’ll Private Banking | Asset Management | Financial Planning | Trust Services | Estate Planning Services | Business Banking focus on the top and bottom lines,” he says.

COMMENTS? [email protected]

30 | Crain’s New York Business | October 30, 2006 REPORT BUSINESS OF LAW STAYING CLOSE AS PART OF THEIR EFFORT to foster loyal relationships, some law A few companies take loyalty oath firms have created extranets to apprise corporate clients of legal Even longtime tionships rarely handle everything. rights and environmental issues. tionships, for fear that conflicts of developments. Phoenix-based mining company interest would prevent them from At Winston & Strawn, whose Phelps Dodge Corp. has been con- Task-specific pursuing more lucrative business. clients spread long-term clients include AMR nected with Manhattan-based De- “the practice of law by its nature “Some of the most successful Corp. and Lear Jet Inc., attorneys their work around bevoise & Plimpton for has moved to specialized ex- firms in the world pride themselves more than 70 years. It uses UNDER perience in certain areas, on representing different companies communicate with corporate BY JEREMY QUITTNER the firm primarily for trans- PRESSURE and this has a positive cost in different transactions, and they counsel on a site updated daily. actional matters, including benefit for us,” explains don’t appear to be that concerned “Communication is one of the the concept of enduring connec- mergers and acquisitions. Dave Colton, senior vice with client loyalty,”says Peter S.Pan- key things in a longtime relation- tions between law firms and corpo- Phelps Dodge also has president and general coun- taleo, managing partner for DLA ship,” says Barbara Sessions, rate clients may seem outdated, as relationships with about 125 other sel for Phelps Dodge. Piper’s office in New York. Winston & Strawn’s marketing senior partners readily switch firms law firms, some of which have Some firms aren’t especially inter- partner for business development. and companies eagerly cut legal concentrations in areas like water ested in cultivating long-term rela- COMMENTS? [email protected] costs. But decades-long relationships remain intact at some firms. For instance, Schiff Hardin has worked with glass manufacturer Owens Illinois Inc. for 25 years. In 1990, the firm opened an office in New York specifically to deal with a large asbestos case Owens faced. The location has grown to 35 lawyers. “Several of us lived in New York during the hottest couple of years of the litigation, and some of the partners moved their families there to be able to be more responsive,” says Bob Riley,a partner and manager in Schiff Hardin’s New York office. To retain legacy clients,law firms often open additional offices, expand their areas of expertise and even adjust billing policies. Many are using new technology to keep in closer communication with these clients. But loyal relationships are difficult to preserve when corporations tend to look for the best lawyer for a particular kind of work, as opposed to the best firm. “It seems to be the conventional view among consumers of legal services these days to go to the lawyer, not the firm,” says William T. Allen, director of the Pollack Center for Law and Business at New York University. Being there there are exceptions, of course. Reed Smith forged links with companies like United States Steel Corp. and Mellon Financial Corp. when they were still run by Andrew Carnegie and Andrew Mellon, re- spectively, more than 100 years ago. “Our approach to these clients is that we try to be there for them in as many areas as they need us to be and in as many locations,” says managing partner Gregory B. Jordan. The firm, based in Pittsburgh, has 98 lawyers in its New York office. To help accomplish that, Reed Smith merged with London-based law firm Warner Cranston in 2001, which gave Mellon access to Euro- pean legal expertise after it bought Dreyfus Corp.The merger was a bid to help Mellon make the transition from more traditional banking to global investments. “What the firm will do on a col- lective basis is to make sure its lawyers have the substantive skills that Mellon needs and that they are in geographies where those skills are needed,” says Carl Krasik, Mellon’s general counsel and secretary. Nevertheless, even firms that have maintained longstanding rela-

October 30, 2006 | Crain’s New York Business | 31 REPORT Deciphering new e-discovery rules Evidence policy leaves some things murky; more litigation expected

BY VICTORIA RIVKIN

it has been only a few years since e-mail and instant messaging became critical evidence in litigation. During that time,judges have made individual rulings on what electronic elements can be considered evidence and when they need to be

presented, which has resulted in a jennifer chiu lot of ambiguity. How electronic data discovery says. “There is a clear message that should be handled is expected to be- ignorance is not a defense.” come a lot clearer after Dec.1,when To search and produce hundreds new regulations go into effect for all of thousands of e-mails, lawyers are civil cases in federal courts nation- increasingly relying on electronic wide. data experts. “These rules are an effort to catch Because such discovery can ac- up with what’s going on with tech- count for 25% to 60% of the cost of nology in the real world,” says litigation, some larger firms are at- CRAIN’S BUSINESS BREAKFAST FORUM Michael P. Zweig, senior litigation tempting to do a portion of the work partner at Loeb & Loeb. in-house, according to Sean M. MEET DR. THOMAS FRIEDEN, But many lawyers are concerned Flynn, senior director for strategic that the new regulations are still too planning and corporate consulting NEW YORK CITY HEALTH COMMISSIONER! at Applied Discovery Inc. WEDNESDAY, NOVEMBER 15, 2006 WALDORF=ASTORIA 301 Park Ave. ‘There is a clear Going in-house some firms are designating a part- For more information or to register, go to newyorkbusiness.com and click on “Events”. message that ner or senior associate as the e-discovery specialist. Other firms are ignorance is creating e-discovery committees,or hiring IT experts or nonpracticing not a defense’ attorneys to act as litigation support, particularly for e-discovery. Areas of uncertainty in the new rules leave some people apprehen- sive, however. fuzzy and that the lack of clarity “The changes take away some could result in more litigation. ambiguity and add some ambiguity, One provision will push elec- as well,” says Scott M. Cohen, tronic discovery from the discovery Proskauer Rose’s practice support phase to the onset of the litigation. manager, who leads its e-discovery As soon as a case is filed, the two initiatives. sides will be required to agree on To this point, some judges have how electronic discovery will be gone as far as requiring that all elec- handled throughout the litigation tronic data be produced for discov- and present their agreement to the ery.The new rules give clients a pass judge. on data that are not “reasonably ac- The various measures “will affect cessible because of undue burden or the day-to-day practice of law fairly cost.” This language is ambiguous dramatically,” says Peter Bucci, and invites judges to make sub- partner in Chadbourne & Parke’s jective decisions, says Thomas intellectual property group. Quigley, head of the New York litigation department at Winston & More accountability Strawn. all this means that at the first hint For example, one provision gives of litigation—or even before—cor- companies and lawyers what is porate counsel must be knowledge- known as a “safe harbor” if electron- able about their clients’ information ic data were destroyed in good faith THAAT’S WHAAT WE DO, EVERY DAY.® With Special Counsel, the leading provider of legal staffing technology processes and proce- and in the process of routine opera- services nationwide, you can reach new heights. Whether you need attorneys, paralegals, or other (212) 218-7155 dures. tions. resources, we provide the most qualified professionals — from general workload management (800) 737-3436 For example, if during an initial “Although there will be less fear meeting with opposing counsel or of sanctions,this is still a limited safe and litigation support to project management for e-discovery and document review projects. And specialcounsel.com with specialized services like medical document review, deposition digesting, and court reporting, the judge, lawyers provide incorrect harbor, as the language here is left Special Counsel is the single place for all of your legal staffing needs — whether on a contract or information about a client’s proce- for interpretation,” Mr. Quigley dures for saving e-mail, they could says.“Some of the new language and direct hire basis. Call us today. be sanctioned. provisions will generate litigation in “There is far more accountabili- the near future.” ty for lawyers with regard to elec- ©2006 Special Counsel, Inc. All rights reserved. COMMENTS? A Member of the MPS Group tronically stored data,” Mr. Bucci [email protected] REPORT BUSINESS OF LAW Bullish Chicago firms slog toward growth in NY

Rosenthal is aiming for what Chair- ated a New York office with more Push to multiply man-elect Elliott Portnoy terms than 400 lawyers, still by far the attorneys in financial “very substantial growth” here. biggest among Chicago firms’ local offices.Executive Committee Chair- hub; little availability Instant presence man Tom Cole says Sidley has been the first wave of the invasion by adding litigation work to its domi- BY STEVEN R. STRAHLER the Midwestern forces hit a high nant corporate practice in New York. point in 2001, when Chicago’s Sid- A smaller deal the previous year under attack on their home turf, ley & Austin merged with Brown & did not go so smoothly. Winston & Chicago’s largest law firms are re- Wood.The transaction instantly cre- See BULLISH on Page 34 newing their assault on New York. But they are finding it slow going in the world’s most competitive legal market. “The marketplace is pretty well picked-over in terms of quality lawyers,” says Tyrone Fahner, chairman of Mayer Brown Rowe & Maw in Chicago. Many of the reasons behind the push are the same as they are for other law firms that have targeted New York: the demands of clients, the need for financial practices to rub shoulders with Wall Street, and the crucial role that the city plays for firms with global practices. “If you’re going to have a capital markets practice, you have to have a significant presence in New York,” says Peter Sacripanti, the partner in charge here for McDermott Will & ‘You’re not viewed the way you want with a 200-lawyer firm’

Emery. The firm, which recently moved to a larger office at 340 Madison Ave.,wants to push its roster to more than 250 lawyers from its current 160 as soon as possible. Mayer Brown plans to double its number of New York lawyers to more than 400 within a couple of years. “You’re not viewed the way you want to be viewed with a 200-lawyer The lawyers who love to tackle the firm in New York,” says Mr. Fahner. most complex legal matters in DC, “It’s perception and critical mass, Brussels, California, and London, more than anything else.” now love doing it in NYC, too. High hopes jenner & block, a litigation-oriented firm that opened up shop here last year, intends to boost its New York head count to more than 100, from about 20.This will help bolster WASHINGTON, DC CALIFORNIA LONDON BRUSSELS NEW YORK a growing corporate practice, says Greg Gallopoulos, national managing partner. www.crowell.com Also on the move is Kirkland & Ellis, which is taking two more floors at Citigroup Center; in June, it transferred top litigation partner David Bernick to New York. Sey- farth Shaw, having doubled the complex litigation • corporate number of New York attorneys to 85 antitrust • intellectual property in the past two years, will move next summer to The New York Times white collar • government contracts

Building. Sonnenschein Nath & I LOVE NEW YORK is a registered trademark/service mark of the NYS Department of Economic Development (NYSDED); used with permission. REPORT Often, the best investment advice is about what not to buy. Bullish Chicago firms

Continued from Page 33 Strawn’s acquisition of Whitman CHICAGO LAW REVIEW Breed Abbott & Morgan sparked an Local head counts for Chicago-based exodus of lawyers; some left by law firms with the most attorneys in NY. choice, and others were purged because of lack of productivity. Sidley Austin 402 After several rainmakers jumped Kirkland & Ellis 206 ship last year, Winston’s New York office suffered another blow:Robert Mayer Brown Rowe & Maw 204 Bostrom, former managing partner Katten Muchin Rosenman 176 of the local office,left in February to Winston & Strawn become general counsel of Freddie 151 Mac.Mr.Bostrom declined to com- McDermott Will & Emery 137 ment. Winston’s New York head Sonnenschein Nath count, once 240, is down to 160. & Rosenthal 130 “We shrank because we lost a Baker & McKenzie 108 Warren Buffett – number of good people,”says Chica- Chairman, Berkshire Hathaway go-based Winston Managing Part- 2005 data. Source: New York Law Journal Owner, CORT Furniture Rental ner Thomas Fitzgerald, who nevertheless believes he can grow the office at an annual clip of 10% to 15%. Seyfarth Shaw, for example, No one should be surprised that gravitates toward midsize clients If you look closely at your office furniture, you’ll probably notice, among other things, that it doesn’t appreciate. some Chicago firms failed to crack and specializes in real estate, litiga- So buying isn’t always the best idea. In fact, renting is not only often tax deductible, it also frees up cash flow, New York. tion and labor employment. which can be useful. For instance, you could buy other companies, as I did with CORT for Berkshire Hathaway. “I can’t conceive of a market chal- “We’re not Wachtell; we don’t After all, CORT rents only quality office and residential furniture. Their service is extraordinary. They deliver and lenge that is more difficult,”says law want to be Wachtell,” says Chair-

install orders within 48 hours. Considering its rather large upside, I give CORT a very strong recommendation. A BERKSHIRE HATHAWAY COMPANY firm consultant Ralph Savarese. As man J. Stephen Poor, referring to the chair of Washington, D.C.- Wachtell Lipton Rosen & Katz, the MANHATTAN FARMINGDALE based Howrey from 1983 to 2002, mergers-and-acquisitions specialist 711 Third Avenue 1644 Route 110 he ultimately decided against open- with the bluest of blue-chip corpo- CORT1.COM 212-867-2800 631-420-5802 ing an office here. “Smart entrants rate clients. into New York realize they have to target different markets,’’ he says. COMMENTS? [email protected]

34 | Crain’s New York Business | October 30, 2006 THE WEEKS AHEAD CRAIN’S BREAKFAST FORUM, NOV. 15

THIS WEEK’S EVENTS Entrepreneurship holds seminars on FRIEDEN OUTLINES CITY’S HEALTH CARE AGENDA OCTOBER 31 home-based business. 6:00 p.m. to 8:00 Direct Marketing Club of NY holds p.m., 55 Lexington Ave., room 2-140. NEW YORK’S ACTIVIST HEALTH COMMISSIONER, Thomas Frieden, will discuss his efforts to information session for nonprofits. 8:15 Free. (646) 312-4780 or improve public health at the next Crain’s New York Business breakfast forum, on a.m. to 10:00 a.m., Mercy College, 66 [email protected]. Wednesday, Nov. 15. W. 35th St., room 704. Fee: $24.50 NOVEMBER 3 The forum will be held at the Waldorf-Astoria, at 301 Park Ave. The event, which is members, $35 nonmembers. Seedco and Lower Manhattan Business (212) 337-0732. Solutions Center hold workshop on sponsored by Cushman & Wakefield, Aetna, Bank of America and the Partnership for New OCTOBER 31 keeping the books. 9:30 a.m. to 12:00 York City, will begin with a networking breakfast at 8 a.m. The program will begin promptly Metro New York Toastmasters Club p.m., 110 William St., fourth floor. Free. at 8:30 a.m. Dr. Frieden will make brief opening remarks; he will then be questioned by holds workshop. 6:15 p.m. to 8:00 p.m., (212) 618-8862 or [email protected]. Crain’s editor Greg David and Lisa Colangelo from the Daily News’ City Hall bureau. Time & Life Building, 1271 Sixth Ave., NOVEMBER 3 The cost of the program is $55 for those who reserve by Nov. 8 via credit card second floor. Free. (212) 581-9468 or Healthcare Financial Management (American Express, Visa or MasterCard only). After that, the cost will be $60. [email protected]. Association, metro NY chapter, holds NOVEMBER 1 seminar on corporate compliance. 8:30 To register, go to www.NewYorkBusiness.com and click on “Events,” fax a copy of your business card and credit card information to “Frieden Forum” at (212) 210-0499, or call the Social Media Services and helloWorld a.m. to 4:15 p.m., Information Builders, Thomas Frieden hold program on marketing a business 2 Penn Plaza, 24th floor. Fee: $125 Crain’s Events Hotline at (212) 210-0739. The registration deadline is 3 p.m. on Nov. 14. through technology and media. 6:00 members, $199 nonmembers. p.m. to 9:00 p.m., Oberia Dempsey Continued on Page 36 Multiservice Center, 127 W. 127th St., room 412. Fee: $10. (212) 281-2286 or [email protected]. NOVEMBER 1 B’nai B’rith Real Estate Unit holds lunch program on Manhattan’s housing market. 12:00 p.m. to 2:00 p.m., Cornell Club, 6 E. 44th St., Ivy Room. Fee: $55 in advance, $65 at door. (212) 885-7239 or [email protected]. NOVEMBER 1 Association of Fundraising Professionals, greater New York chapter, holds seminar on individual giving. 9:00 a.m. to 4:00 p.m., Foundation Center, 79 Fifth Ave., second floor. Fee: $150 members and $175 nonmembers in advance; additional $25 for all at door. (212) 582-8565 or [email protected]. NOVEMBER 1 92nd Street Y holds leadership workshop. 7:00 p.m. to 9:00 p.m., Makor Center, 35 W. 67th St. Fee: $30. Weʼve all seen the New York City skyline. (212) 601-1000. NOVEMBER 1 York College holds breakfast program with City Council Speaker Christine Quinn. 8:00 a.m. to 9:30 a.m., Academic Core Building, 94-20 Guy R. Brewer Blvd., faculty dining room, Jamaica, Weʼre more interested in your views. Queens. Free. (212) 838-2660, ext. 16, or [email protected]. NOVEMBER 2 Aetna Small Business Solutions, Harlem Chamber of Commerce and 1010 WINS hold breakfast seminar on small business success secrets. 8:30 a.m. to 10:30 a.m., Alhambra Ballroom New York, 2116 Adam Clayton Powell Blvd. Free. (212) 315-7024 or [email protected]. NOVEMBER 2 Score NYC holds seminar on restaurants and food services. 2:00 p.m. to 5:00 p.m., American Management Association, 1601 Broadway, eighth floor. Fee: $40 in advance, $50 at door. (212) 264-4507 or [email protected]. NOVEMBER 2 New York County Lawyers’ Association holds course on women in law. 6:00 p.m. Cohen & Perfetto: A personalized approach to real estate law. to 9:00 p.m., 14 Vesey St. Fee: $75 members, $95 nonmembers. Itʼs a simple, but profound, premise: Each client represents an important relationship. (212) 267-6646, ext. 215. And every one of those relationships demands our complete attention and dedication. NOVEMBER 2 At Cohen & Perfetto, this is the philosophy that drives us. We make the connections National Association of Black Accountants Inc., New York chapter, that build these relationships, adding depth and value to every partnership we forge, holds seminar on building a better and every transaction that transpires. Whether your needs involve real estate, govern- portfolio for long-term investment success. 6:00 p.m. to 9:00 p.m., AXA ment incentives, banking, zoning, or litigation, itʼs not just a deal to us: Itʼs your deal. Advisors, 1290 Sixth Ave. Free. Learn more at www.cohenperfetto.com. (212) 969-0560 or [email protected]. NOVEMBER 2 Leading Women Entrepreneurs of the World holds forum on separating fact from fiction. 9:00 a.m. to 5:00 p.m., Barnard Hall, 3009 Broadway. Fee: $149 in advance, $175 at door. 444 Madison Avenue, 5th Floor (913) 362-1210 or C New York, NY 10022 [email protected]. P COHEN & PERFETTO LLP Tel: 212-488-1300 Fax 212-813-0767 NOVEMBER 2, 9 Attorneys at Law Lawrence N. Field Center for www.cohenperfetto.com

More meetings online at www.newyorkbusiness.com Click on “Events”

October 30, 2006 | Crain’s New York Business | 35 THE WEEKS AHEAD

Continued from Page 35 NOVEMBER 6, 13, 20, 27 NOVEMBER 7 American Express, 200 Vesey St. Fee: marketing. 2:00 p.m. to 3:30 p.m., PC (516) 826-4472. Asian Women in Business holds small Association of Real Estate Women $35 members, $55 nonmembers. Learn, 71 W. 23rd St., Masonic Hall. business workshop series. 6:00 p.m. to holds lunch program on the High Line. (212) 279-5910, ext. 23, or Free. (888) 845-4544, ext. 363, or NOVEMBER 6-12 8:00 p.m., Institute for Women and 11:30 a.m. to 2:00 p.m., Club 101, 101 [email protected]. www.campaigner.com. NOVEMBER 6 Work, 16 E. 34th St., sixth floor. Fee: Park Ave. Fee: free for members, $110 NOVEMBER 9 NOVEMBER 9 New York Designs and CUNY hold $30 for series, $15 per class for nonmembers in advance, $120 Hodgson Russ holds corporate counsel Biba4Network holds networking course on creating a viable design members; $75 for series, $25 per class nonmembers at door. (212) 599-6181. seminar. 8:30 a.m. to 11:00 a.m., seminar. 6:30 p.m. to 8:30 p.m., business. 5:00 p.m. to 9:00 p.m., 45-50 for nonmembers. (212) 868-1368 or NOVEMBER 8 Harvard Club, 35 W. 44th St. Free. MetLife, 260 Madison Ave., 10th floor. 30th St., seventh floor, Long Island [email protected]. American Business Media holds (716) 848-1332 or Fee: $25. (917) 573-9808 or City, Queens. Fee: $60. (718) 663-8403 NOVEMBER 7 breakfast on how to jump-start a www.hodgsonruss.com. [email protected]. or [email protected]. Acordia holds networking reception. marketing effort. 8:30 a.m. to 10:30 NOVEMBER 9 NOVEMBER 9 NOVEMBER 6 7:30 a.m. to 8:30 a.m., 330 Madison a.m., Scholastic International, 557 South Bronx Overall Economic World Trade Center Shenzhen holds Women in Development holds lunch Ave., seventh floor. Free. Broadway. Fee: $95 members, $125 Development Corp. holds workshop on seminar on investment opportunities in program on how to ask anyone for any (212) 682-7500. nonmembers. (212) 661-6360, ext. 3332, construction opportunities with the Shenzhen. 11:00 a.m. to 2:00 p.m., amount for any purpose. 12:00 p.m. to NOVEMBER 7 or [email protected]. New York State Dormitory Authority. Doubletree Guest Suite, 1568 2:00 p.m., Princeton Club, 15 W. 43rd NYC Business Networking Group holds NOVEMBER 9 3:00 p.m. to 4:30 p.m., 555 Bergen Ave., Broadway, Hudson Ballroom. Free. St., second floor. Fee: $40 members, $50 reception. 6:00 p.m. to 8:00 p.m., Stone Arts & Business Council of New York third floor, Bronx. Free. (718) 732-7547. (212) 867-1717 or nonmembers. (212) 265-7650 or Creek, 140 E. 27th St. Free. holds workshop on market research NOVEMBER 9 [email protected]. [email protected]. (212) 471-8456 or [email protected]. basics. 9:00 a.m. to 12:30 p.m., Got Corp. holds seminar on e-mail NOVEMBER 9 Networking for Professionals holds lunch. 1:00 p.m. to 3:00 p.m., Icon, W Hotel-The Court, 130 E. 39th St. Fee: $39.90 members and $49.90 nonmembers if registered by Nov. 2; additional $5 for all thereafter. (718) 625-1369. NOVEMBER 11 Global Purchasing Cos. holds workshop on how to open and run a retail store. 10:00 a.m. to 5:00 p.m., 1133 Broadway, suite 245. Fee: $159. (212) 414-4001 or globalfashionbuys.com. NOVEMBER 13-19 NOVEMBER 13 American Business Women’s Association, NYC charter chapter, holds dinner program on promoting oneself in two minutes or less. 6:00 p.m. to 8:00 p.m., Domenico’s, 120 E. 40th St. Fee: $25 members, $35 nonmembers. (212) 698-7265 or [email protected]. NOVEMBER 14 Support Center for Nonprofit Management holds workshop on board chairs. 6:00 p.m. to 8:00 p.m., 305 Seventh Ave., 11th floor. Fee: $35. (212) 924-6744 or [email protected]. NOVEMBER 15 Net@Work holds seminar on combining sales skill and customer relationship management. 8:30 a.m. to 11:00 a.m., Worldwide Business Center, 575 Madison Ave., eighth floor. Free. Registration required. (212) 997-5200 or [email protected]. NOVEMBER 16 Nonprofit Group at Baruch College, School of Public Affairs, holds seminar for nonprofit leaders with Alair Townsend of Crain’s New York Business. 4:00 p.m. to 6:00 p.m., 135 E. 22nd St., At Softmart, we’re room 301. Free. Registration required. (646) 660-6743 or * [email protected]. NOVEMBER 16 World Golfs holds networking

– Crain reception. 5:30 p.m. to 7:30 p.m., Swing 46, 349 W. 46th St. Fee: $50. (201) 489-2240 or ESFJ IT [email protected]. NOVEMBER 16 * Extraverted – Sensing – Feeling – JudgingJud (Enthusiastic for IT) New York Society of Security Analysts holds program on the fixed-income We are perfectly suited for the IT world because ESFJs like to give ethical evaluations market. 5:30 p.m. to 8:00 p.m., and analyses to their customers. So regardless if you’re in the middle of negotiating a Bloomberg, 731 Lexington Ave. Fee: global software licensing agreement or putting an IT upgrade initiative together, you $75 members, $115 nonmembers. can rely on us for practical recommendations. (212) 541-4530, ext. 40. Find out more about ESFJs making clear and logical business decisions. —adrianne pasquarelli Call 800-382-5550 or email [email protected] TO LIST YOUR EVENT

Crain’s lists business meetings online and includes them in the print edition on a space-available basis. Events in New York City with admission fees of less than $300 are considered for the print publication.

**This is solely our interpretation of the Myers-Briggs Personality Types Listings can be submitted only through the Crain’s Web site. To submit a calendar listing, go to 800-382-5550 www.newyorkbusiness.com and click on “Events.” | www.softmart.com Sponsors have a choice of several free or paid listing options. All business events will be posted online within two business days.

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© 2006 Crain Communications Inc. “In the last three months alone, we have worked on 20 joint proposals At Condé Nast, it’s print versus digital with Gourmet,” she says. Ms. Chubb notes that individual Continued from Page 1 magazine sites are currently being blame. Since the mid-1990s, the relaunched with more content and online strategy for all of Condé features, including video, and that Nast’s magazines has been handled the company is trying out different by the parent company’s interactive business models. Wired Publisher division, CondéNet. In the Drew Schutte, for instance, will CondéNet world, Gourmet and Bon control digital advertising sales for Appétit share Epicurious.com, and Wired.com. Condé Nast Traveler is accessed through Concierge.com. Even solo Ways to save sites, such as Glamour.com, are run RUNNING DIGITAL SHOW: Condé Nast’s interactive division oversees Concierge.com, Epicurious.com, Glamour.com and other Web destinations. ms. chubb also insists that having a by the Internet division. centralized operation makes Web The arrangement is causing fric- development more efficient. “The tion in some quarters of the tony pub- become more business-oriented a 9% increase compared to the same online presence. technology platform is very expen- lishing empire.Magazine executives, since Charles Townsend took over period last year, according to TNS Officials at CondéNet insist that sive to build and maintain,”she says. who would speak only if granted as chief executive.But for Chairman Media Intelligence. their strategy is working.The desti- The arguments ring hollow with anonymity,say that with the center of S.I. Newhouse, earnings haven’t “We are in the final moments of nation sites, created to maximize some magazine staffers. The execu- gravity shifting toward the Internet, been the highest priority. His concluding a very satisfying year. online revenue by “owning” food, tives contend that the current sys- they no longer want their online nephew,Steven Newhouse,is chair- Our results show continued im- travel and fashion categories, are tem is outdated and doesn’t provide identities controlled by a separate di- man of Advance.net,which oversees provement in net operating income growing. Epicurious has been par- incentive to publishers to create on- vision that not only administers the CondéNet. performances across the breadth of ticularly successful. The site is line programs. They point to the sites but collects the ad revenue, too. Moving headlong onto the In- our portfolio,” Mr.Townsend stated among the top 10 in the food and way the soon-to-launch business ti- Insiders aren’t the only ones ternet—and committing major rein an e-mail. cooking category, according to tle Condé Nast Portfolio is develop- complaining. Media buyers eager to sources to it—was never a priority Nielsen/NetRatings. Though its ing its digital and print operations reach new audiences also want to see for the company,either.Condé Nast Growing frustration September number was down,it has together—independently of Condé- the digital and print sides unite. has not been subject to the investor even so, insiders’ frustration with had upward of 2 million unique vis- Net. They want the same opportu- “More and more agencies are pressures that have forced Time Inc. the divide between print and digital itors monthly for the last year. nities. looking for one-stop shopping,” to go into overdrive on its digital ex- is growing along with the dazzle of So far this year, page views for all “It’s like dealing with the Krem- says George Janson,director of print ecution. the Internet. Recent mega-deals for CondéNet sites are up 40% and ad lin to get anything done with for WPP Group’s Mediaedge:cia. What’s more, Condé Nast’s MySpace.com and YouTube.com revenue is up 32%, according to the CondéNet,” complains a magazine- “I’d like to see Condé Nast lead the lifestyle monthlies, directed mainly underscore the importance of the company, which does not disclose side insider. “Everybody wants to charge.” at young women, have withstood medium to advertisers and audi- earnings. have a growth business, but Of course, Condé Nast has nev- the Internet onslaught better than ences. Even with its robust slate of What’s more, CondéNet has [CondéNet and the magazines] er played by industry rules. The fa- news and business weeklies at oth- magazines, Condé Nast faces the been collaborating more with mag- have different agendas.” mously lavish unit of privately held er companies. Advertising revenue danger of becoming obsolete over azine publishers and editors, says Advance Publications Inc.may have through August reached $2 billion, time if it doesn’t develop a dynamic Sarah Chubb, president of the unit. COMMENTS? [email protected] BOSTON

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40 | Crain’s New York Business | October 30, 2006 the city failed to reach out to the ma- Mr. Vallone, who has champi- jority of small, mostly ethnic eater- oned the trans fat crackdown for the Cooks push council law on fats ies in the Bronx,Queens and Wash- past year, is set to introduce a bill ington Heights in Manhattan, that mirrors the health department’s Continued from Page 1 cerns,”says Charles Hunt,executive bee’s.These national franchises have according to Mr. Nunez. At least 10 ban. But he has suddenly found we are against is that there has been vice president of the New York State a significant stake in what happens restaurateurs in Mr. Nunez’s organ- himself at odds with the administra- no due process to make this an easy Restaurant Association. here, and they’ll want to prevent an ization will testify today that they tion over the issue. transition.” ad hoc approach in other cities. An were not aware of the city’s efforts to Linda Gibbs, deputy mayor for Ever since city Health Commis- Law trumps edict executive from such a company is reduce the use of trans fats and, fur- health and human services, asked sioner Thomas Frieden announced should the City Council pass a expected to testify on Monday, says thermore,that they don’t know what Mr. Vallone to postpone the intro- the proposal a month ago, the food law, it would trump any edict from a spokesman for the NRA. the term means. duction of his bill at least until after industry has been scrambling to re- the Department of Health and Dr.Frieden appears to leave little Mr. Nunez will ask the city to the hearing today. While the health spond. Local and national organiza- Mental Hygiene’s Board of Health. room for compromise. The com- spend more resources on educating department says it welcomes the tions have hired public relations The outcome of the debate here missioner maintains simply that such businesses and to extend its City Council’s support on this ini- firms, and they’re drafting a plan to will likely reverberate across the foods containing hydrogenated oils, deadline by at least a year. “There tiative, Ms. Gibbs told Mr. Vallone convince members of the City country, and New York could be- margarine and shortening are dan- has been no information to our that having two such measures Council to take up the issue through come a model for other cities. gerous and that those ingredients community,” he says. would cause confusion. legislation. They hope that council Chicago, for one, is tackling the is- can be easily replaced. The health Others say that taking this posi- The administration is concerned members can be pressured to pass sue.A New Jersey state legislator re- department put restaurants on no- tion is just a ploy. that the City Council’s version, a measure less stringent than the cently introduced a bill for a similar tice a year ago when it called for a which would take precedence if Bloomberg administration is seek- ban on trans fats. voluntary removal of such ingredi- Industry attack passed, would be watered down by ing,and that the legislative approach The potential impact is not lost ents. The administration says that “the restaurant industry will restaurant industry influence. will buy the industry more time. on officials at the National Restau- far too few outlets cooperated and come up with every rationale to pre- “It’s a legitimate concern for “If the council introduces a bill, rant Association, which counts that a ban is necessary to force the vent this from happening.They will the administration,” Mr. Vallone they would have to hold more hear- among its members some of the food-service sector to take action. hit us with every tool in their arse- concedes. ings on the issue, and hopefully largest U.S. restaurant chains, in- While many upscale restaurants nal,”says Councilman Peter Vallone they’d listen to some of our concluding McDonald’s and Apple- and food companies heeded the call, Jr., D-Queens. COMMENTS? [email protected]

trigger extra scrutiny on the part of tor of the Lower Manhattan Con- law enforcement. struction Command Center,says he Preserving the concrete jungle “Anytime you’ve got a bottleneck believes that meetings already under in a time-sensitive industry,that’s an way will prevent serious problems. Continued from Page 2 we could probably boost production Work schedules might be moved invitation to corruption,” a high- “I want to dispel the impression center, 200 new schools, numerous 50% in the blink of an eye,” says up so that concrete could be deliv- level city prosecutor says.“You obvi- that there’s a looming crisis,” he Manhattan skyscrapers and the At- Joseph Ferrara, who runs Flushing, ered before rush hour. Carmine ously have the capacity for mischief, says. “There is more than adequate lantic Yards project in Brooklyn, all Queens-based Ferrara Bros. Build- Valente, president of both Jenna and concrete is one of the areas of the production capacity for the demand thirsting for concrete. ing Materials. “To deliver it is a dif- Concrete in the Bronx and the As- construction industry where there’s that is being projected.” “There’s no real slacking in de- ferent story.” sociation of New York City Con- always been a lot of mischief.” One certainty is that it’s a good mand in any of the major sectors of The challenge is getting the concrete Producers,says he could get his time to be in concrete, a cyclical the industry,” says Richard Ander- crete to construction sites from plant started before dawn so con- Desperate times, desperate measures business that’s poised for a tremen- son, president of the New York plants in Brooklyn, the Bronx and crete could be trucked and poured federal investigators broke up dous upswing. Mr. Valente just or- Building Congress. “That kind of Queens before composition changes by sunup. the Mafia’s “Concrete Club” in the dered 12 new ultra-low-emission situation hasn’t existed in New York render it useless. Officials are plan- “The biggest hurdle will be the 1980s, freeing major concrete pro- diesel trucks—at $170,000 each— City since the 1920s.” ning to revamp the delivery system communities where the work is go- ducers from the grip of organized and secured an option to buy a Industry leaders say they can and reorganize traditional construc- ing on,” Mr. Valente says. “Nobody crime. Law enforcement officials dozen more. boost production to meet the need tion schedules, but each step would wants work going on at 7 o’clock in will now focus on buyers who are Mr. Ferrara explains: “If we can’t for concrete. But they are less sure have unwelcome consequences. the morning.” desperate for concrete to keep their deliver concrete, [developers] will that they can transport it fast Accelerating the schedule would projects moving. look at alternatives. We don’t want enough to supply so many mas- Getting the star treatment allow concrete companies to make “You’ve got union employees, them building with steel, lumber, sive projects on demand. Trucks the government will be pressured three deliveries a day,rather than two. carpenters, electricians and every- precast. have to get through New York traf- to let concrete trucks cut the line at But unions might demand extra pay one else waiting on the concrete,” “You can’t build any faster than fic and security checks to job sites the Brooklyn Battery Tunnel and to for workers who start early or finish the prosecutor says. “Some contrac- with concrete,” he adds. “It’s an within 90 minutes, or their concrete set aside lanes that would speed late. City agencies typically don’t tors will pay kickbacks to ensure that amazing product.” can go bad. trucks to Ground Zero,which could grant permits for work at off-hours. their job gets to the head of the line.” “We took the lay of the land, and delay other motorists. The concrete crunch will also Charles Maikish,executive direc- COMMENTS? [email protected] Firms cashing in on midtown THE CRAIN’S BEAT SHEET REPORTERS BARBARA BENSON Continued from Page 2 REPORTER AARON ELSTEIN SENIOR REPORTER floors were made available because e-mail: [email protected] SEEKING OFFICE TENANTS e-mail: [email protected] Works on Health Pulse newsletter. of “the reduction in our staff that Covers Wall Street. Large blocks of space on the market. ELISABETH BUTLER has taken place in the past year and LISA FICKENSCHER SENIOR REPORTER REPORTER by moving some departments into TENANT BUILDING SQUARE FEET e-mail: [email protected] e-mail: [email protected] lower-cost office space.” The pub- Marsh & McLennan 1166 Sixth Ave. 315,000 Covers the tourism, restaurant Covers retail and apparel. lisher hopes to generate revenues of and hotel industries. New York Times 620 Eighth Ave. 155,000 ERIK ENGQUIST $10 million to $12 million a year MATTHEW FLAMM SENIOR REPORTER REPORTER from the lease. ABN Amro 55 E. 52nd St. 150,000 e-mail: [email protected] e-mail: [email protected] CSAM* 237 Park Ave. 140,000 Covers media and entertainment. Covers politics and government, Landlords join in works on Crain’s Insider newsletter. J.P. Morgan Chase 277 Park Ave. 135,000 TOM FREDRICKSON it is not only companies that are SENIOR REPORTER AMANDA FUNG Revlon Inc. 237 Park Ave. 128,000 giving up space. Landlords are also e-mail: [email protected] REPORTER scrambling to assemble large blocks TOTAL 1,023,000 Covers banking, energy e-mail: [email protected] and the New York economy. Covers technology and telecom. for the market.At 100 Park Ave.,SL *Credit Suisse Asset Management is finalizing a sublease for the space with Hachette Filipacchi Media. Green Realty Corp. is completing a SAMANTHA MARSHALL HILARY POTKEWITZ $70 million capital improvement SENIOR REPORTER REPORTER e-mail: [email protected] e-mail: [email protected] project and has combined space to the newly available spaces as a posi- services for the New York office of Covers education, and international Covers legal issues and transportation. create a block of 160,000 square tive sign—that the market has hit Trammell Crow Co. New blocks on business and trade. feet. equilibrium. This is thought to oc- the market are more noticeable be- JULIE SATOW ANNE MICHAUD SENIOR REPORTER REPORTER “This shows our confidence in cur when the vacancy rate hits 7%. cause they are not disappearing as e-mail: [email protected] e-mail: [email protected] the market,” says Steven Durels, ex- In the third quarter,the vacancy rate quickly as they once did. “We were Covers politics and government, Covers commercial real estate. in midtown was 6.3%, according to in danger of rocketing out of equi- works on Crain’s Insider newsletter. ecutive vice president for the office GALE SCOTT real estate investment trust. New Cushman & Wakefield. Now, say librium, but I think this shows we MIRIAM KREININ SOUCCAR REPORTER blocks “are coming back on a meas- brokers, there may be some balance. may be entering a state of stabiliza- SENIOR REPORTER e-mail: [email protected] ured basis, and they are getting “Demand is not as feverish as it tion,” he says. e-mail: [email protected] Covers hospitals and insurers, absorbed.” was a few months ago,” says Ken- Covers the business of arts, culture. works on Health Pulse newsletter. Some market experts even see neth Krasnow,director of brokerage COMMENTS? [email protected]

October 30, 2006 | Crain’s New York Business | 41 state him, according to a person familiar with the matter. Van der Specialists in limbo, despite acquittals Moolen, which fired the two specialists later acquitted, Richard Continued from Page 1 tal amount levied in 2004. all over town to cover themselves in Volpe and Robert Scavone,declined the other traders—known on Wall “The exchange has expanded the case they lose their jobs.” to comment. Street as specialists—represent the ON HOT SEAT types of cases it brings and the peo- The four specialists cleared of Attorneys for Messrs. Fee and most serious criminal allegations Six specialists awaiting trial, and ple it has brought in are quite good,” criminal charges will most likely be Scavone didn’t return calls. Mr. involving the NYSE since the their former employers. says Barry Goldsmith, a Washing- fined by the NYSE and SEC, Volpe is sorting out what to do for a Great Depression.The government ton lawyer who until early this year though they could also be barred living, according to his lawyer. charged the specialists, who serve as FREDDY DEBOER served as head of enforcement at the from the industry. The specialists As for Mr. Foley, he’ll ask the LABRANCHE auctioneers on the trading floor, National Association of Securities could return to trading while their NYSE and SEC to drop their civil with making trades for their own ac- FRANK A. DELANEY IV Dealers. cases are pending if their employers proceedings against him, his lawyer counts before completing trades for BEAR WAGNER want them back,according to an ex- says. In the meantime, he’s at his customers, or improperly interfer- GERARD T. HAYES Behind tough approach change spokesman. Connecticut home recovering from ing between customer orders. VAN DER MOOLEN nyse regulators have good reason Bank of America declined to his ordeal. Two specialists have pleaded SCOTT G. HUNT to take a hard line with the special- comment on the possibility of rehir- “He was deeply involved in his guilty and been sentenced to 27 FLEET/BANK OF AMERICA ists. For starters, the regulators’ own ing Mr. Foley. The other specialist defense, so now he’s taking a months in prison. Three traders jobs are in jeopardy.Earlier this year, whose criminal charges were breather,” Mr. Velie says. “He’s have been convicted and face sen- ROBERT A. JOHNSON JR. the exchange converted to a for- dropped, Mr. Fee, was suspended spending time with his family.” SPEAR LEEDS & KELLOGG tencing—including David Finner- profit institution, and the SEC has without pay by Bear Stearns,and the ty, who was found guilty last Thurs- THOMAS J. MURPHY questioned whether the NYSE firm hasn’t decided whether to rein- COMMENTS? [email protected] day after a two-week trial in a lower FLEET/BANK OF AMERICA should continue to be a regulator. Manhattan courtroom. Two have Sources: U.S. Attorney’s Office, Securities and What’s more, the Securities In- REPRINT, POST PUBLISHED ARTICLES been acquitted. Exchange Commission dustry Association, Wall Street’s leading trade group,is urging the ex- Charges withdrawn change to merge its regulatory unit REPRINTS OF CRAIN STORIES the government withdrew its unlikely to be receptive to that argu- with that of the NASD. The CRAIN’S NEW YORK BUSINESS offers reprints of the articles it publishes. charges against Mr. Foley and Bear ment. Last year, the exchange was prospect of a merger between two of The reprints can include photographs that accompany the story. To obtain an Stearns trader Kevin Fee after they blasted by the Securities and Ex- the industry’s regulators has un- estimate of the price and the turnaround time for a reprint, please contact argued that their allegedly illegal change Commission for failing to leashed something of an arms race, Lori Noffz at Reprint Management Services, (717) 399-1900, ext. 104, or trades were errors of the type com- adequately police specialists, who as each institution’s lawyers attempt [email protected]. monly made by people who work in the agency claimed cheated in- to show their toughness in the hopes Readers wishing to make their own reprints or to post a story on a Web frenzied environments marked by vestors out of $158 million between that they will land top positions. site must pay $350 for the use of the Crain’s copyright; the fee for nonprofits repetitive activity. January 1999 and June 2003. “Regulators are competing be- is $195. Send a letter describing the article and how it will be used, along “What the government said was One sign of the NYSE’s new- cause they fear a merger,” says Bill illegal trading, we showed was sim- found regulatory fervor: The Singer, a Manhattan securities with a check, to Jill Bottomley at Crain’s New York Business, 711 Third Ave., ply late data entry,” says Mr. Velie, a $23 million in fines assessed by its lawyer who formerly worked at the New York, NY 10017. For more information, please call Ms. Bottomley at former federal prosecutor. regulators through the first half of NASD.“Stock exchange lawyers are (212) 210-0282. NYSE regulators, however, are the year is more than triple the to- sending their résumés to law firms

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42 | Crain’s New York Business | October 30, 2006 BUSINESS CORPORATE LADDER Public- health pro takes charge at nonprofit PAGE 45 buck ennis

GOTHAM GIGS Political diners’ diva RAE BIANCO, 49, for eight years has been the manager of the Loews Regency Hotel’s dining room—the place to be seen for power-breakfasting members of New York’s political class. JUGGLING ACT She must play traffic cop for some of the biggest egos in the city; for instance, she needs to know when to seat political or business rivals on opposite ends of the room. Ms. Bianco watches several news programs each morning to keep up with her clien- tele’s exploits. Late hotel mag- nate Bob Tisch called her the most powerful woman in New York from 7 a.m. to 10 a.m. NICE PLAYROOM: CHANGING CROWD Regulars Barclay GM Raymond include the Rev. Al Sharpton, Vermolen and wife PR whiz Tonio Burgos, Nicole have been journalist Jonathan Capehart assigned to Athens, Beirut and Alexandria. and Yankee third baseman Alex Rodriguez. More entertainment and publishing types are showing up these days. Over the past two summers, business has hardly slowed. “People said they didn’t want to leave town because business was so good,” Ms. Bianco says. —anne michaud

EXPERT OPINIONS

IT’S FLU SEASON; WHAT SHOULD I DO? line up for flu immunizations as soon as they’re available.The Living where they work virus can survive on surfaces like metal and plastic for up to two days, so sharing pens and Hotel managers enjoy perks but give up privacy phones and touching door- buck ennis knobs is risky. Washing your hands is very helpful; all you BY LISA FICKENSCHER IN THE HOUSE need is soap and water, not a NYC hotels with live-in managers. special disinfectant.Think twice about certain greetings. n halloween, 6-year-old Sterling McBride will don a Luke The Carlyle New York Air kisses make sense during Skywalker costume and zip through The Carlyle handing out treats Flatotel flu season, and not shaking to the hotel’s cooks, housekeepers and elevator operators. Grand Hyatt New York hands can make a difference It’s the youngster’s way of showing his appreciation to the InterContinental in the middle of an outbreak. The Barclay New York —dr. w. ian lipkin employees, who let Sterling visit the kitchen when he wants to Director observe the lobsters in their tank or watch the hotel’s trash Jumeirah Essex House Greene compactor crush garbage in the basement. New York Palace Infectious “Sterling has developed a rapport with the staff,” explains his Le Parker Meridien New York Disease Laboratory, father, James McBride, who is general manager of the posh Upper Rihga Royal New York Mailman East Side property. Sheraton New York Hotel & Towers School of The McBride family has called The Carlyle home for the past three years. Mr. McBride, 42, Trump International Hotel & Tower Public is among a small number of top New York hotel executives who live at the properties they run. Health, O W New York—Times Square Columbia They enjoy luxurious quarters and amenities, including room and housekeeping services and The Waldorf-Astoria University full use of spas and gyms. Many travel the globe from job to job, See WHEN THE OFFICE on Page 44 istockphoto

October 30, 2006 | Crain’s New York Business | 43 BUSINESS LIVES 250 PARK AVENUE Westerly Blockfront Between 46th and 47th Streets

4,703 SF EIGHTH FLOOR PRE-BUILT UNIT When the office is also home 14,286 SF EIGHTH FLOOR RAW SPACE Continued from Page 43 ■ Reasonable Division Considered relocating to a new pied-à-terre every few years. MINDING THEIR P’S AND Q’S ■ Enhanced Lobby/Building Security System “We move more than the mili- MOST OF THE YOUNG CHILDREN of live-in hotel ■ New 8th Floor Common Corridor & Bathrooms tary,” says Jerry Gibson, 52, general managers are well-mannered and nothing like ■ For Immediate Possession manager of the Grand Hyatt New Eloise, the sassy literary character who lived at The York, at East 42nd Street and Lex- Plaza and thumbed her nose at decorum. ington. He has a spacious two-bed- Sterling McBride, the 6-year-old son of James room apartment there, with its own McBride, general manager of The Carlyle, “knows to gym and views of the East River. put his napkin in his lap, and to stand up when a Mr.Gibson and his wife,Sandra, have moved 15 times over the past lady comes into the room,” says Mr. McBride, 21 years.“Hotels are our homes,” he himself a gentleman who favors three-piece suits. says. But some worry that hotel living requires young children to temper their natural exuberance too Always on call much, especially when they pass through the not everything about life in a ho- public areas. Klaus Assman, the resident manager of Jumeirah Essex House, tel is appealing. For one thing, per- is teaching his daughter Vivian about proper etiquette. But, he adds, “we also sonal privacy is sacrificed.And there want to give her the freedom to be a child.” are the phone calls in the middle of the night when,for example,a guest is injured—or dies—the ceiling needs a coping strategy. Sandy Hook and lets his pampered sprinklers are activated by mistake “I ask my wife to open the door Weimaraner, Jersey Girl, romp on or loud noises need to be controlled. when room service arrives, because the beach. (He takes the pooch to Several weeks ago, guests at the I’m not in the mood to see another doggie day care near the hotel dur- Jumeirah Essex House on Central employee,” says Mr. Assman. The ing the week.) For leasing information, please contact: Park South were startled from their couple and their 2-year-old daugh- sleep at 3 a.m. by the sound ter live on the 32nd floor of Globe-trotting WENDY MILLER DAVID L. HOFFMAN,JR. 212.318.9764 212.318.9767 of Consolidated Edison the Essex House, in a two- most families bring their own fur- [email protected] [email protected] jackhammering outside $1M bedroom apartment with a nishings to make hotel apartments their windows.When com- POTENTIAL VALUE large balcony overlooking feel more like a home. of a manager’s Member plaints started to come in, Central Park. Raymond Vermolen, 33, the apartment if the staff immediately called rented to public Others seek some manager for InterContinental’s The Klaus Assman, the resident restorative distance from Barclay New York, and his wife, COMMITTED TO YOUR SUCCESS general manager. work—for themselves, Nicole, strive to maintain normalcy www.colliersabr.com “I handed out earplugs and of- their families and even their pets— for their two children, 4-year-old fered to move some guests to rooms by leaving the city on weekends. Nina and 7-year-old Tom. THE AMERICAS ■ EUROPE ■ MIDDLE EAST ■ AFRICA ■ ASIA PACIFIC away from the street,” says Mr. Ass- The Carlyle’s Mr. McBride es- Their cozy, three-bedroom man, 36. He typically gets 10 calls a capes to his house in Millbrook, apartment on the fourth floor of the night after retreating to his quarters N.Y., with his son and wife, Alex- hotel, at East 48th Street and Lex- at about 7 p.m. andra.The Grand Hyatt’s Mr.Gib- ington Avenue, is decorated mostly Over time, these interruptions son has a home in Rumson,N.J.On with items from Ikea.“It can be col- take their toll, and each manager Saturdays, he takes the ferry to lapsed and transported easily to the Wharton Equity Partners, next hotel,” Ms. Vermolen says. In the past eight years, the couple, who in partnership with Gould are Dutch, have lived in Athens; Beirut; and Alexandria, Egypt. Investors LP, wishes to thank Ms. Vermolen says she resists the urge to order room service and cooks for the family at least four Storage Investment Advisors times a week. “We have to be disciplined,” Mr. on the sale of its portfolio of Vermolen adds. “It’s easy for my children to say,‘I don’t like this food. 6,500 self-storage units to Can we order something else?’ ” The number of managers living an afﬁliate of Northwestern on-property has shrunk over the past few decades. Executives have Mutual Life grown increasingly resistant to giving up their privacy, while cell phones and PDAs make it possible to stay in constant touch.Moreover, many hotel companies don’t want to give up valuable space that could be $59,750,000* rented at high daily rates. “When you can sell the room for New York City $1 million a year, it’s hard to justify not doing that,” says Niklaus and Westchester Leuenberger, general manager of the Peninsula, at East 55th Street and Fifth Avenue. He vacated his hotel apartment in 1997,at the start of a 10-month renovation of the property, and never moved back in. Though Mr. Leuenberger, who now resides in suburban New Jersey, is happier living outside the hotel, he misses the days when commut- Storage Investment Advisors Wharton Equity Partners ing meant hopping on an elevator. www.siallp.com Real Estate • Private Equity • Venture Capital “I get up at 5 a.m. to avoid the Aaron Swerdlin, Managing Partner Peter C. Lewis, Principal traffic on the George Washington [email protected] [email protected] Bridge,” he says.

713.376.3326 212.570.5959 buck ennis JUST KIDS: The Vermolens strive to maintain a normal family life for Nina, 4, and Tom, 7. COMMENTS? [email protected] * Asking Price BUSINESS LIVES CORPORATE LADDER Dr. Jo Ivey Boufford Academy’s healthy choice Public policy veteran When Dr. Boufford officially takes charge on Feb. 1, she will be PERSONNEL FILE will lead nonprofit tapping into her combined skills as a doctor,a senior health official dur- COMPANY New York Academy devoted to poor; must ing the Clinton administration, a of Medicine member of the World Health Orga- TITLE President resuscitate funding nization and a former dean of the Robert F.Wagner Graduate School AGE 61 BY SAMANTHA MARSHALL of Public Service at New York Uni- RÉSUMÉ Professor of public versity,where she is now a professor. service, health policy and man- n the dark days of the late She will replace Dr.Jeremiah Baron- agement at NYU’s Wagner School 1980s—when the city’s pub- dess, who led the nonprofit for 16 lic health system was over- years; the search took 11 months. FAVORITE HOBBIES Going to the whelmed by the AIDS and “The scope of her experience and opera crack epidemics, and crip- the friendship and respect she has PERSONALITY TYPE Type A, but Ipled by Mayor Ed Koch’s budget from the New York health care com- only when necessary cuts—Dr. Jo Ivey Boufford had a munity makes her a great choice for thankless job. this job,”says James Tallon,president As president of the Health and of the United Hospital Fund,a non- She is also mulling ways in which Hospitals Corp.,the pediatrician had profit that analyzes health policy. the academy can generate more in- to oversee some of New York’s most come from its assets,such as its library. notorious hospitals amid reports of Supplementing federal funds Dr. Boufford says she doesn’t ex- drug dealers roaming the halls and one of dr. boufford’s first chal- pect to make drastic changes in di-

neglected infants choking to death. lenges will be to find more sources of rection for the academy, which con- buck ennis But she looks back on that time as funding to supplement flatlining ducts extensive research on public one of the high points of her career. federal grants. Many similar non- health issues,such as obesity,asthma through the academy’s new Interna- HHC days,she often made clandes- “The HHC was probably the profits have been forced to scramble and diabetes. Instead, the longtime tional Society for Urban Health. tine 3 a.m. visits to the city’s belea- best job so far,because it let me be in- for the same limited pool of money. advocate of health care reform plans guered hospitals to check up on the volved in policy and see it happening While the academy’s operating to spend the next few months study- First things first most vulnerable patients. on the ground … or not,” she says. budget has remained level recently, ing the institution’s work to discover the public health of New York- She’s happy to report that life in Dr. Boufford will get to exercise at about $25 million a year, that has more ways that it can benefit the city. ers will stay at the top of her agenda, these neighborhoods has improved. her health-policy chops again as the limited new research, and grants for “We have world-class urban epi- through frontline research in loca- “The city’s done a great job of first paid,full-time female president existing projects are expiring. demiology research here,” she says. tions including East Harlem, which closing some of the worst health of the New York Academy of Med- “I want to make sure our finances She hopes to bring that knowl- the academy building borders, and gaps,” Dr. Boufford says. icine, a research institution focused are stable and predictable going for- edge to the world stage,working with the South Bronx. It’s an old stomp- on the health of the urban poor. ward,” says Dr. Boufford. health commissions in other cities ing ground of Dr. Boufford’s: In her COMMENTS? [email protected]

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October 30, 2006 | Crain’s New York Business | 45 BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING new position. He had been vice Rosenzweig & Wolosky. Anchin Block & Anchin: Kuldeepak president of global media at the Benjamin S. Reichel, 40, joined as HOT JOBS Acharya, 48, was promoted to accounting National Basketball Association. partner. He had been a partner at and audit partner from director. R/GA: Webster Lewin, 45, joined as Olshan Grundman Frome Rosenzweig Barry Weisman, 55, was promoted to tax director of mobile marketing. He was & Wolosky. WANTED: PRESIDENT AND CEO partner from director. formerly a mobile marketing strategist at Hogan & Hartson: Barbara M. Roth, 55, Jeffrey Wilkins, 35, was promoted to VML. joined as partner. She had been a partner ORGANIZATION Animal Medical Center accounting and audit partner from at Torys. senior manager. ARCHITECTURE & DESIGN Kirkland & Ellis: William B. Sorabella, 31, JOB DESCRIPTION Provide leadership, direction and strategic vision Corporate Revitalization Partners: Lisa SBLM Architects: Edward Cohen,58, was promoted to partner from associate. MOST IMPORTANT TASKS Strengthening relationships with the Poulin, 50, joined as partner. She was joined as director of facilities and Kester L. Spindler, 31, was promoted to veterinary community and fostering open communication with support formerly senior managing director at transportation projects. He was formerly partner from associate. staff and volunteers FTI Palladium Partners. a senior architect at DMJM Harris. Michael P.Stadnick, 34, was promoted to Friedman: Matthew Teadore, 41, was Thornton-Tomasetti: Erleen Hatfield, 39, partner from associate. CREDENTIALS NEEDED Doctor of Veterinary Medicine degree; certified promoted to director of corporate was promoted to vice president from Christopher J.Torrente, 34, was promoted by a board approved by the American Veterinary Medical Association; taxation from tax manager. senior associate. to partner from associate. licensed or prepared to obtain a license to practice in New York state KPMG: Monica Gill, 35, was promoted to Sonnenschein Nath & Rosenthal: Arthur partner from senior manager. FINANCE & INSURANCE Hull Hayes III, 45, joined as partner. He SALARY Former president earned $345,776 in 2004 Stephen R. Hicks, 35, was promoted to AXA Distributors: Kirby John Noel,37, had been a partner at Dewey Ballantine. partner from senior manager. joined as senior vice president and RECRUITER Phillips Oppenheim national sales manager, financial MEDIA & ENTERTAINMENT DOWNSIDE The need to fight for awareness and sources of private ADVERTISING & COMMUNICATIONS planning. He had been Western division McGraw-Hill Cos.: Peter C. Davis, 51, support in an increasingly competitive environment Cornerstone: Steven Justman, 37, joined sales manager at Lincoln Financial joined as executive vice president of as executive vice president and general Distributors. global strategy. He had been a managing UPSIDE The opportunity to expand research programs at New York City’s manager of Cornerstone and GoldenTree Asset Management: Michael director at Novantas. largest facility for animal care, research and education Cornerstone-owned Fader magazine, a Meyers, 38, joined as partner and Nickelodeon: Jim Perry, 41, was portfolio manager. He had been promoted to executive vice president of The nonprofit employs 90 veterinarians and works with referring doctors managing partner, portfolio manager and 360 Brand Sales, Nickelodeon, MTVN to provide care for companion and exotic animals. The AMC, open 24 EXECUTIVE PROMOTIONS sector head health care at Trivium Capital Kids and Family Group from senior vice hours every day of the year, has about 50,000 patient visits annually. Crain’s lists the promotion and hiring of New York Management, which he co-founded. president of advertising sales. Gleniss Schonholz, formerly chief operating officer at Long Island Jewish area senior executives on a space-available basis, Tanya Van Court, 34, was named senior Medical Center, is serving as interim CEO. —KIRA BINDRIM with priority given to positions in New York City. HEALTH CARE vice president, Preschool and Parents The fastest way to get an announcement into People Care Holdings Inc.: Susan Brett, Online, Nickelodeon, MTVN Kids and Crain’s is to submit the information online. 43, was promoted to chief operating Family Group. She had been vice Go to www.newyorkbusiness.com and click on officer from senior vice president. president of new-media video products “Executive Moves”; then click on the link to fill at ESPN. senior director. Studley Inc.: Stephen Goldstein, 60, was out the submission form. The Executive Moves LAW GVA Williams: Ted Rotante, 57, joined as promoted to vice chairman of U.S. column is also available online. Haynes and Boone: Harvey J. Kesner, REAL ESTATE senior managing director. He had been operations from director of the mid- Crain’s cannot confirm receipt of listings or say 49, joined as partner. He had been a Cushman & Wakefield: Don Preate, 40, corporate managing director at Studley Atlantic region. when they will appear. partner at Olshan Grundman Frome was promoted to executive director from Inc. —adrianne pasquarelli

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46 | Crain’s New York Business | October 30, 2006 BUSINESS LIVES TABLE TALK by Bob Lape better crisply fried zucchini ribbons saffron emulsion, diver scallops a spot in downtown White Plains. with shaved parmesan, and deli- black truffle demi-glace, and herb- Owner-chef Anthony Goncalves is cious spiedini A’Tavola.This is pan- crusted ahi tuna a soy-wasabi reduc- the real deal. fried, rather chewy Italian bread tion. filled with fresh mozzarella and Among the desserts, save room Chakra ★ ★ ½ napped in anchovy-tomato sauce. for an exceptionally well-made ap- 144 W. Route 4 East (just past Pan-seared sesame shrimp, a tad ple strudel. Loehmann’s), Paramus, N.J. overcooked on one visit, are treated Service at A’Tavola Bistro 385 (201) 556-1530. Exotically romantic to caramelized mango salsa and can be impeccable at lunch and trappings for a hot meeting-and- tahini-ginger sauce. well-intentioned but overmatched eating spot not that far from the The bistro bunch includes ce- at dinner, when timing is off. The city. New American cuisine with viches, escargots, satay, tuna tartare whole Branca family pitches in Asian accents, 500 wines and fun and chicken wings. then, with CPA Tony joining his specialty cocktails served with Chef Harrison and his sure- wife in working tables as a niece and friendly flair. handed team are not bashful with nephew see action as well. their seasoning.There is a very con- There are 14 Italian wines on a Restaurant Latour ★ ★ sistent level of good taste in all that 55-item roster. The list is quite rea- 1 Wild Turkey Way,Crystal Springs comes from this kitchen. sonably priced, but the value is Resort, Hardyston, N.J. Pastas ($15 to $30) resonate with sometimes hard to compute exactly, (973) 827-0548.One of the great wine forthright flavors. Examples: whole since no vintages are given. collections of the world:3,000 choic- white fettuccine with vegetables es, priced right, from a 50,000-bottle and truffle butter;pan-fried gnocchi COMMENTS? [email protected] cellar are well worth a detour to Sus- tossed with tomatoes, prosciutto sex County. The 40-seat restaurant and pineapple brown butter; and features white-glove service of con- orecchiette done with sausage,broc- BEST OF BOB LAPE temporary America cuisine. ■ coli rabe, white beans, red pepper flakes and garlic. Following are notable out-of-town Hot sausage brings zing to a restaurants. pleasing entrée called chicken scarpata,combining tender chicken RK ... An American medallions and artichoke hearts Brasserie ★ ★ ★ with fresh herb-garlic lemon pan 22 Elm Place (between Purchase sauce. Other entrées that have an Street and Theodore Fremd Ave- extra something are pineapple-sage nue), Rye, N.Y. (914) 967-8900. Kobe braised short ribs with apple- Big-deal New Yorkers relax at wood-smoked baked beans; and Reza Korshidi and Rebecca Kir- miso-marinated hanger steak pack- hoffer’s stylish, sophisticated res-

buck ennis aged with hot and sweet cherry taurant, with mod cuisine and pin- Office & Retail RUNNING A LOCAL ATTRACTION: Manager Chris Rizzi (left) and chef Paul Harrison of A’Tavola peppers, Vidalia onions and potato point service to match. Availabilities: Bistro 385 serve up good food and a happy atmosphere in Harrison, N.Y. crisps. Alaskan halibut gets a lobster- Trotters ★ ★ ★ 212.594.2700 175 Main St., White Plains. (914) 421-5012. There is exciting slgreen.com and original New American cuisine, a worldly wine list and metic- Reaching New Heights. Two-in-one ulous service at this constantly in Westchester evolving and improving dining of 43 seats, open two months. It A’Tavola Bistro 385 serendipitously came to my atten- deftly blends Italian, tion in conversation with Elisa, a manager at the Chefs Central Franco-American; megastore in Hartsdale. Her broth- A’TAVOLA BISTRO some service missteps er and sister-in-law, Tony and 385 Camille Branca, had just launched 385 Halstead Ave. the venture. Seized by curiosity and Harrison, N.Y. hat’s in a name? hunger, my wife and I hit the GPS (914) 381-6050 Quite a bit—an and went there immediately. ★★ overload, really, in Unlike dinner, which has a ½ A’Tavola Bistro crowded, rip-roaring ambience, CUISINE Modern Italian 385 in the West- lunchtime is calm,but proficiency is chester community of Harrison. high. Manager Chris Rizzi, an WINES 55 choices, 14 by the W glass It manages to combine, or mud- eight-year restaurant veteran at age dle, its identity as an Italian tavola 23,mixes creative cocktails as guests DRESS No code and a Franco-American bistro, and dip fried calamari into three NOISE LEVEL Very high REFEREE’S NOTICE OF SALE OF then adds the street address as gar- sauces—marinara, Thai marinade, 124 WEST 42ND STREET, NY NY nish.Taking things to extremes, the and a spicy Thousand Island. PRICE RANGE $17-$27 To be held November 8, 2006 newcomer to Harrison has a Little things mean a lot, such as SUPREME COURT - COUNTY OF NEW YORK - Index Number 123407/2000 WINE MARKUP 75%-180% MORTON KASSOVER, Plaintiff against PAULA KASSOVER FIEDLER, et al, chef/partner named Harrison— a top-notch array of breads, from Defendant(s). Pursuant to a INTERLOCUTORY JUDGMENT entered herein on May 8, Paul Harrison. The Kneaded Bread in Port CREDIT CARDS All major 2006, and an ORDER of the Hon. DEBRA A. JAMES, J.S.C., dated September 25, 2006, I, the undersigned Referee will sell at public auction in ROOM 130 of the New York County Putting all wordplay aside, the Chester. Notable selections: fra- RESERVATIONS Strongly Supreme Courthouse, 60 Centre Street, New York, NY on the 8th day of November, 2006 at 1:00 PM premises situate, lying and being in the Borough of Manhattan, County, City and restaurant is a terrific neighborhood grant provolone bread and a recommended State of New York; Beginning at a point in the southerly side 42nd Street, 225 feet west from attraction with very good food, crunchy-crusted loaf covered with the intersection of the south side of 42nd Street and the westerly side of 6th Avenue, being friendly service and a happy atmo- sunflower seeds. HOURS Lunch, Mon.-Sat., a plot 98 feet 9 inches by 25 feet by 98 feet 9 inches by 25 feet. 11 a.m.-3 p.m.; Dinner, Mon.- Said premises known as: 124 WEST 42ND STREET, NEW YORK, NY sphere. Having experienced both Raw bar items range from $2 Premises will be sold subject to provisions of the filed judgment and Order and terms Thurs., 5-10 p.m., Fri.-Sat., of sale. Bidders are advised they must submit a Bidder Qualification Form as available from lunch and dinner,I’d return in a shot oysters and $1.50 clams to chilled Eve E. Monroe, Esq., the Referee named below on or before the day of sale. A "Qualified for more delicious riffs by chef Har- shellfish towers such as The Hal- 5-11 p.m., Sun., 4:30-9 p.m. Bidder" shall be a person or entity that, prior to and at the Sale, submits a Bidder ★★★★ Qualification Form and shows to the Referee a bank, cashier's or certified check in the rison of Harrison. Oops, did it stead. This $85 plate-bender holds = Outstanding amount of $1,200,000. payable to or endorsed to the order of "Eve E. Monroe, Referee" again. two lobsters, six shrimp and a dozen ★★★= Excellent Bidding will start at $10,000,000. Located in a strip mall adjacent each of littlenecks and oysters. ★★= Very good EVE E. MONROE, ESQ., Referee. ★ Law Office of Eve Monroe PC, 625 East 11th Street, Suite A1, New York, New York 10009 to a Food Emporium, A’Tavola’s Appetizers ($7 to $12) include = Good Phone (212) 420-7536 setting is an attractive, informal one the aforementioned calamari, even

October 30, 2006 | Crain’s New York Business | 47 I’m all about Free Package Pickup. Running my shop is a lot easier when I’m actually in my shop.

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