ABOARD (Except the Driver)

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Far West Side ‘cells’ out P. 6 | THE LIST Largest real estate nancings P. 16 | Sports memorabilia market’s foul play P. 21

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ALL ABOARD (Except the driver)

Startups like Bandwagon believe the future of autonomous vehicles will be shared PAGE 18

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P001_CN_20170501.indd 1 4/28/2017 6:05:20 PM CN018201.indd 1 3/22/17 11:02 AM MAY 1 - 7, 2017 CRAINSNEW YORK BUSINESS

FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE

Make newspapers great again 4 AGENDA 5 IN CASE YOU MISSED IT DONALD TRUMP HAS BEEN A GIFT to media companies, as 6 ASKED & ANSWERED viewers and readers the world over tune in to find out what the unpredictable president is up to. There has been a rise in 7 HEALTH CARE subscriptions to national publications and a ratings bonan- 8 WHO OWNS THE BLOCK za for public polemicists and pundits. 9 REAL ESTATE Concrete Now New York print publications big and small may be 12 SPOTLIGHT ways able to get in on the action thanks to Trump’s tax plan. Yes, developers 13 POLITICS are making the plan would be good for newspapers—an unintended money 14 VIEWPOINTS result that underscores how our tax system is a cobbled- together set of policies designed to accommodate partic- 16 THE LIST ular interests. Eliminating a policy triggers a cascade of Not being able to FEATURES consequences, with winners and losers who will fight for 18 DRIVERLESS CARS or against it—whichever one is best for them. I’m not be- deduct state and “ 21 GAME-USED grudging our system. Self-interest is not the same as self- local taxes makes it ishness; it is rational and in many ways predictable. But it more expensive for also makes legislative change hard. Trump’s plan would make many New Yorkers losers me to live here. It’s a because it would eliminate their ability to deduct state double whammy and city taxes from their federally taxed income, reducing their take-home pay. “New York City taxpayers get the shaft,” accountant Jonathan Medows told me. “Not being able to deduct state and P. 6 SUSAN local taxes makes it even more expensive for me to live here. It’s a double whammy.” SOLOMON A by-product of the plan—less federal tax revenue—could mean less state aid from Washington, leading to budget gaps in New York and local tax hikes to fill them. 25 GOTHAM GIGS (See how Mayor Bill de Blasio is not preparing for that possibility, page 13.) 26 SNAPS Which brings us back to newspapers. One of the centerpieces of the president’s 27 PHOTO FINISH tax plan is to slash income-tax rates for limited liability companies to 15% from 35%. That would be a huge boon to businesses. And by businesses, I mean pretty CORRECTION much anyone not employed full-time. That’s because if the measure passes, every State Street removed its plaque advertising its SHE exchange-traded fund April 2. That fact was mis- local freelancer would form an LLC to qualify for the 15% tax rate. “I would expect stated in “Fearless Girl is an advertisement. State to see an uptick in LLC formation at the state level,” Medows said. Street should pay to show it,” published April 17. Creating an LLC is fairly easy: Pay a small fee to the state, and find a name not used by anyone else. Oh, and advertise in a daily and a weekly print publication for six consecutive weeks. (Theatrical groups, inexplicably, are exempt.) The internet— Craigslist in particular—killed the classified-ad business. But in New York, the rule requiring new LLCs to publish notices of their creation has helped keep the deci- mated newspaper business from collapsing altogether. Those of us intent on bring- ON THE COVER ing readers great content are grateful for every dollar. With any luck the Trump tax PHOTO: BUCK ENNIS plan will pass and a boom in LLC formation will follow. But don’t bank on it.

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CONFERENCE CALLOUT JUNE 14 Go to CrainsNewYork.com REAL ESTATE: DON’T JUST READ Last week we THINK BIG. BUILD BIG. featured “To make money, restau- SL Green CEO Marc Holliday > rants need to think will keynote a morning-long beyond the plate,” conference on the the latest in a series magnitude, complexity about being successful and necessity of in New York. To read building transformational installments on real estate and tech, go to projects like One Vanderbilt. CrainsNewYork.com/HowtoMakeMoney. SHERATON NEW YORK TIMES SQUARE HOTEL ■ NOMINATE Know a fast-growing company headquartered in the New York area 8 a.m. to noon that had at least $10 million in revenue [email protected]. last year? Let us know. We are looking for companies to feature on our annual Vol. XXXIII, No. 18, May 1, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for Fast 50 list. To submit a company, go to double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third CrainsNewYork.com/Fast50Nominate. Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send To view previous honorees, go to address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. CrainsNewYork.com/Fast50. The deadline (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. for submissions is May 31. BUCK ENNIS

May 1, 2017 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20170501.indd 3 4/28/2017 6:50:07 PM WHAT’S NEW May 1, 2017

AGENDAThe city’s plan to tax Midtown East development rights doesn’t add up

anhattan Borough President Gale Brewer is not shy about government intervening in the market. So when she testi- fied at a hearing last week that the city is overreaching in a crucial rezoning, it was as bright a red flag as can be. MEveryone agrees on the premise of the plan: to allow modernization of Midtown East’s office buildings and construction of new ones, and use new tax revenue to pay for public-realm improvements to accommodate the added activity. An ancillary provision would allow landmarked buildings, notably several religious institutions, to sell their development rights CENTRAL SYNAGOGUE just to projects elsewhere in the district. The sales would be taxed to fund wants to sell its air rights for as things like wider sidewalks and subway platforms to alleviate crowding. much as it can. The question is how to ensure that the tax on the sale of air rights pro- duces enough money to pay for the needed public improvements but is not so steep that it discourages the sales that would trigger it. The de Blasio it be taxed as a $10 million sale because it might have fetched that five administration wants a 20% tax to be based on a minimum value for the years earlier? What about a handbag placed in the discount bin because it air rights, even if the actual sale price is much lower. is last year’s fashion? Taxing it at the original price could prevent it from “If we pick a price that’s a little low we can all live with that,” Brewer being sold at all. In the case of Midtown air rights, a nonsale prevents the said. “If we pick one too high, we could undermine all our efforts.” She private- and public-realm improvements the neighborhood needs. fears the city’s proposed minimum tax of City officials justify the price floor be- $78.60 per every square foot would deter A tax on air rights makes sense. But cause they say it will eliminate any incentive sales. Councilman Daniel Garodnick, whose let property owners determine how for sellers and buyers to conspire to reduce verdict will determine the council’s decision much they’re willing to sell them for the price of air rights, thus reducing their this summer, is also worried. tax bill. All taxes are subject to evasion, but The mayor’s office says the city would would landmarked houses of worship really evaluate the fee every five years and adjust it as needed. But the very no- risk fraud charges for a few extra bucks? What else could they get for air tion of the government setting the market price is a contradiction. Market rights besides money? The city won’t say. City interference in the market prices are what the market pays. Imagine if other sales taxes were based on has backfired in the past—for example, rent regulation has contributed to what the government thinks something is worth, rather than what it actu- evictions, dilapidation and high housing costs. There’s reason to believe it ally sells for. If a townhouse sells for $5 million in a down market, should would do so again. — THE EDITORS

FINE PRINT The first of two new Kosciuszko Bridge spans opened April 27, not even three years after a contract to replace the aging structure was signed. That quick turnaround was possible because the contract was designated design-build and awarded to a single bidder, saving time and money. Despite that success, Albany did not pass legislation that would allow more city infrastructure projects to use design-build.

BY GERALD SCHIFMAN STATS

25 WORDS OR LESS A MOST FERTILE BOROUGH

THOUSANDS MORE PEOPLE leave Brooklyn each year than move in. But a sharp increase in births has kept its population rising. AND THE CITY “It’s going to be a disaster. … People are paying almost $400 a month to stand around every day. Brooklyn’s net Rise in Brooklyn’s population just migration since % from births outpacing deaths in the —Long Island Rail Road commuter -32.3K 2010, the biggest 6.4 past six years, nearly a full percent- dip of any New York state county age point above the next-highest borough Blake Drescher, anticipating delays will get even worse this summer as Amtrak Net migration in Increase in the New York New York City’s other four metro area’s population since repairs tracks at Penn Station +7,810 boroughs since 2010 402K 2010; upstate’s fell by 42,021

BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCES: Empire Center for Public Policy, U.S. Census Bureau

4 | CRAIN’S NEW YORK BUSINESS | May 1, 2017

P004_CN_20170501.indd 4 4/28/2017 6:50:32 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL editor Jeremy Smerd Activists at the gate: managing editor Brendan O’Connor assistant managing editors Erik Engquist, Jeanhee Kim, Robin D. Schatz Kravis faces a comeuppance web editor Amanda Fung copy desk chief Telisha Bryan art director Carolyn McClain RIVATE-EQUITY FIRM KKR became known as the bar- photographer Buck Ennis barian at the gate in the 1980s because the corporate senior reporters Joe Anuta, Aaron Elstein, Matthew Flamm, Daniel Geiger raider was so good at upending established companies. reporters Rosa Goldensohn, P Jonathan LaMantia, Caroline Lewis Today the firm is downright respectable, with shares trading data reporter Gerald Schifman on the New York Stock Exchange and a wing of the Metropol- web producer Peter D’Amato columnist Greg David itan Museum of Art named for KKR co-founder Henry Kravis contributing editors Tom Acitelli, Theresa Agovino, Erik Ipsen, Cara S. Trager (right). But the original barbarian now has a new one banging ADVERTISING on its door. www.crainsnewyork.com/advertise advertising director Irene Bar-Am, Last week activist investor Value Act Capital announced [email protected], it had acquired a 5% stake in KKR, making it the firm’s 212.210.0133 senior account managers second-largest shareholder. Value Act has shaken up board- Lauren Black, Zita Doktor, Rob Pierce, Stuart Smilowitz, Debora Stein rooms and management suites at Microsoft, Sara Lee and Re- sales coordinator Devin Arroyo, 212.210.0701, [email protected] uters Group, among many others. News of its arrival drove up ONLINE KKR’s stock price by 7%. UNMOVED: KKR’s management cannot be forced out. general manager Carl Icahn Rosemary Maggiore, 212.210.0237, Unlike the likes of , Value Act doesn’t publicly [email protected] lobby for management changes and, at least for now, KKR CUSTOM CONTENT director of custom content and Value Act are playing nice. “We have had interactions with them and they’ve been great,” KKR senior execu- Patty Oppenheimer, 212.210.0711, tive Scott Nuttall said last week. “I think the future is quite bright,” a Value Act official gushed. Those good vibes, it [email protected] multicultural sales manager Giovanni Perla, turns out, are partly baked in: Under KKR’s bylaws, shareholders have no ability to force out Kravis and colleagues. [email protected] senior custom marketing manager Still, KKR’s stock trades at a discount to peers like Blackstone and Carlyle Group, according to Bloomberg data. Sonia David, [email protected] And while financial stocks have rallied since November, activists still see opportunities in big Wall Street insti- custom project manager Danielle Brody, [email protected] tutions. Value Act is already a major Morgan Stanley shareholder, and Nelson Peltz’s activist firm, Trian Fund EVENTS Management, took a stake in Bank of New York Mellon in 2014. Since then that bank has quietly restructured, and www.crainsnewyork.com/events director of conferences & events pretax profit margins have jumped to 31% from 23%. – AARON ELSTEIN Courtney Williams, 212.210.0257, [email protected] manager of conferences & events Adrienne Yee, [email protected] DATA POINT events coordinator Ashlee Schuppius, Rent freeze melts ered one of the greatest concert films. [email protected] After a two-year freeze, the Rent Guide- FROM 2000 TO 2015, BUSINESSES AUDIENCE DEVELOPMENT lines Board voted to increase rents on Commuter nightmare on track director of audience & content one-year and two-year leases for stabi- Amtrak plans to close tracks at Penn partnership development Michael O’Connor, OPENED EVERYWHERE IN THE 212.210.0738, lized apartments in the city, from 1% to Station for repair and replacement CITY BUT MANHATTAN, WHERE THE [email protected] 3% and 2% to 4%, respectively. Tenant work beginning this month, following REPRINTS advocates and landlords were not hap- NUMBER OF NEW ESTABLISHMENTS two train derailments. While officials reprint account executive Lauren Melesio, 212.210.0707 py with the decision, which will be fi- WAS DOWN 2%. THE NUMBER IN didn’t specify how the closures will af- PRODUCTION nalized June 27, when the board will fect Amtrak, LIRR and NJ Transit ser- production and pre-press director set the exact rent increases. BROOKLYN WAS UP 48%. vice, the work is expected to disrupt Simone Pryce commutes. media services manager Nicole Spell Not the right Time SUBSCRIPTION CUSTOMER SERVICE Escape from New York www.crainsnewyork.com/subscribe Time Inc. decided not to sell itself as may charge a mandatory admission fee. [email protected] potential suitors dropped out of the However, it would apply only to visitors The Department of Investigation rep- 877.824.9379 (in the U.S. and Canada). bidding. Instead, the publisher will cut from outside New York. It currently asks rimanded Correction Commissioner $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print costs and focus on a digital strategy. for a “suggested” $25 donation for en- Joseph Ponte for spending 90 days out- subscriptions with digital access. try. The taxpayer-supported institution side the city and using his city-owned to contact the newsroom: These boots are made for walking needs to close a $15 million budget defi- vehicle for trips to Maine. During his www.crainsnewyork.com/staff 685 Third Ave., New York, NY 10017-4024 On the heels of the departure of its cit stemming from management mis- absences, subordinates had to respond phone: 212.210.0100; fax: 212.210.0799 longtime creative director, Jenna Lyons, steps. Mayor Bill de Blasio has endorsed to crises at Rikers Island. Entire contents ©copyright 2017 J.Crew has cut 250 jobs and reorganized a mandatory fee. Crain Communications Inc. All rights management as part of its push to be- reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license come profitable and reinvigorate the Another plot twist agreement. brand. The moves will save the compa- Barnes & Noble has named its fourth CRAIN COMMUNICATIONS INC. ny about $30 million a year. chief executive since 2013. The chain’s BOARD OF DIRECTORS acting chief operating officer, Demos chairman Keith E. Crain president Rance Crain Pre-K comes in threes Parneros, was promoted to lead the treasurer Mary Kay Crain, Cindi Crain Mayor Bill de Blasio proposed free, full- ailing bookseller, allowing founder senior executive vp, William Morrow day pre-K for 3-year-olds by fall 2021. Leonard Riggio to finally retire. Riggio executive vp, director of strategic operations Chris Crain The city wants to pilot the program in temporarily assumed the top spot from executive vp, director of corporate low-income areas of the South Bronx Ronald Boire, who left in August after operations K.C. Crain and Brownsville, Brooklyn, next year at less than a year. Barnes & Noble is still Throwback diner rehashed senior vp, group publisher David Klein Chelsea’s Empire Diner fired its vp/production, manufacturing David Kamis a total cost of $36 million. It expects the struggling to compete against Amazon. chief financial officer Bob Recchia state and federal governments to pitch kitchen back up April 24 under chief information officer Anthony DiPonio in as the program is scaled up to $177 Acclaimed director dies chef John DeLucie and the owners founder G.D. Crain Jr. [1885-1973] million. Oscar-winning film director Jonathan of Cafeteria. Originally opened in chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] Demme died at 73. His work included 1976, it was most recently operat- Art vs. commerce The Silence of the Lambs and Philadel- ed by celebrity chef Amanda Freitag For the first time in its 125-year histo- phia. Demme’s Talking Heads docu- before closing at the end of 2015.

ry, the Metropolitan Museum of Art mentary, Stop Making Sense, is consid- BUCK ENNIS, THE EMPIRE DINER

May 1, 2017 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20170501.indd 5 4/28/2017 6:50:57 PM AGENDA ASKED & ANSWERED BIOTECH INTERVIEW BY CAROLINE LEWIS

SUSAN SOLOMON NEW YORK STEM CELL FOUNDATION

he New York Stem Cell Foundation’s $22 million, 40,000-square-foot headquarters on West 54th Street, which opened last month, represents founder I lost my mom to and CEO Susan Solomon’s grand effort to turn the “lung cancer and TFar West Side into the city’s newest biotech hub. She hopes my dad to heart the facility, built with the utilities needed to conduct biological disease. I was experiments, will attract biotech startups. Since its launch in 2005, the nonpro t has become a pillar of the life sciences motivated, as a community through its research on stem cells, which can replace patient advocate, diseased or missing cells, and can be used to test new drugs by frustration over for safety and effectiveness, among other applications. the status quo

Was it dif cult to nd a new headquarters in New York City? It was really hard. We needed engineering space, space for all the robots we designed and wet lab space [with the ventilation and plumbing necessary to conduct experiments on biological matter]. And we also wanted to have what’s called GMP, or good manufacturing practice, which is the standard the FDA holds you to when you make cells for clinical use. All that had to be built and designed. We had to do all this with a tiny budget.

How does the space expand the foundation’s research capabilities? The laboratory is behind glass. It’s clean. People wear booties. DOSSIER It means we can make cells that are suitable for use in humans. In a few months we’re going to have some exciting announce- ments about what we’re going to do with partner institutions. WHO SHE IS Founder and chief executive of the New York We don’t treat patients directly, but we accelerate the work of Stem Cell Foundation clinicians and researchers all over the world. SALARY $515,982 in 2015 How does New York’s biotech community stack up against other states’? AGE 65 There are a lot of jobs here for people who want to be staff BORN Fort Greene, Brooklyn scientists and technicians. From a venture-investment perspec- RESIDES Upper West Side tive, we have been told that this is kind of a freshly stocked pond. EDUCATION B.A. in history, We’re at the beginning. We’re Kendall Square—the biotech hub New York University; J.D., in Cambridge, Mass.—before it turned into Kendall Square. We Rutgers School of Law also have a huge advantage: Among all these [New York] hospitals, there’s so much clinical capability. PERSONALIZED MEDICINE Stem cells have been instrumental in guiding treatment for Solomon’s When you started the foundation, you said the industry wasn’t catching own medical condition, which on to stem cell advances quickly enough. Has that changed? she declined to name. “That’s It is changing but slowly. Industry moves at a slow pace. There are been humbling,” she said. “It has companies out there with early stage cell therapy applications, but a real impact.” literally being able to make cells to replace the cells that are dam- SHE LIKES TO TINKER Solomon aged or lost by disease, that’s only now being put into practice. said she has always been interested in how things work and credits her father, You had been CEO of sothebys.com. Why did you change your career? an audio engineer. “He always wanted a My son was diagnosed with Type 1 diabetes when he was 10. And son but only had daughters. On a Satur- then I lost my mom to lung cancer and my dad to heart disease. day we would go to the studio and play I was motivated, as a patient advocate, by frustration over the with the equipment.” status quo. I would love more than anything to play a role in cur- NEARING THE FINISH LINE The ing my son’s diabetes. But it isn’t just personal. At some point all foundation had raised only about 75% of of us, or people we love, become patients. That’s a fact of life. It the facility’s $22 million budget when the building was unveiled to the public last propelled me to switch everything I was doing and create NYSCF. month. By the end of the ribbon-cutting ceremony, however, audience members How does your experience running for-pro t companies apply to running a unexpectedly pledged additional nonpro t science foundation? funds, bringing the organization Bringing discipline to the management and nancial side that is close to its fundraising goal. not necessarily found in the nonpro t world has been a big advan- BUCK ENNIS tage. The rest is understanding people and how to communicate what we do. We’re trying to explain something that is inherently really complicated to people, most of whom don’t have a science background, by relating it to their lives. ■

6 | CRAIN’S NEW YORK BUSINESS | MAY 1, 2017

P006_CN_20170501.indd 6 4/28/2017 2:41:24 PM AGENDA HEALTH CARE

Startup Fit4D expands in WEINGARD’s Fit4D can now crowded diabetes market reach users in Florida. The Manhattan telehealth company combines tech with a personal touch BY CAROLINE LEWIS

anhattan- At first, Fit4D pri- tients’ compliance with pilot funded by the city Barnabas Hospital. based marily contracted with taking medication. The Economic Development The Humana deal, enrollees in Florida. diabetes- pharmaceutical com- company signed a con- Corp. in 2014. That led announced last week “We have the ability to manage- panies and medical- tract with Healthfirst, its to projects with Monte- will allow Fit4D to take virtually connect with Mment company Fit4D device makers seeking initial insurance client, fiore Health System, the its telehealth program them between doctors’ is extending its nation- to improve their pa- after collaborating on a Acacia Network and St. to high-risk Medicare visits,” Weingard said. ■ al reach with two new partners: insurer Hu- mana and digital diabetes app Glooko, based in California. Fit4D, which previously landed a contract with BlueCross Blue- Shield of Nebraska, has sought to distinguish itself in the increasingly crowded digital diabetes market by adding a personal touch, said founder and CEO David Weingard. In addition to digital content, the company offers online and phone-based Orchestrating coaching from a team of dietitians, exercise phys- iologists, nurses and excellence social workers. Welcome to Hackensack Meridian “The people we’re dealing with are in deni- Health. Where researchers fast-track al,” said Weingard, who breakthroughs into life-changing care. left Microsoft in 2008 to The medical school of tomorrow, start the company after his own experience of with humanity at its core, is taking being diagnosed with shape today. And a full spectrum of diabetes at age 36. “They need an emotional con- services—from virtual appointments nection with someone to home health to treating the most to help them control complex conditions—is perfectly their diabetes.” As the disease has orchestrated and in tune with your become more prevalent needs. Here, everyone works in the U.S., the competi- tion has become greater together to make your world better. for apps, portable devic- es and data that help pa- Let’s move forward together. tients better manage it. HackensackMeridianHealth.org Like Fit4D, many firms market their services 844-HMH-WELL to insurers and health care providers seeking to improve medication adherence and reduce the cost of care for their patients, who can face serious health complications as a result of poorly controlled diabetes. In New York City, where the incidence of adult diabetes in- creased 150% between 1993 and 2011, recently launched startups offering diabetes- management solutions include GlucoIQ and

COURTESY OF FIT4D One Drop.

May 1, 2017 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20170501.indd 7 4/28/2017 2:43:01 PM AGENDA WHO OWNS THE BLOCK

Ferries return to the Rockaways Area could get a big boost—if enough New Yorkers jump on board

BY TOM ACITELLI

BEACH 108TH ST. AND ommuter ferry service from Beach BEACH CHANNEL DRIVE 108th Street in Rockaway Beach is The city owns the dock here, which was the site of a Manhattan-bound ferry slated to resume May 1, better con- begun in the wake of Hurricane San- necting the far-flung area of dy in late 2012 to compensate for the 106-21 BEACH CHANNEL DRIVE CQueens with Manhattan’s Financial Dis- 109-11 BEACH CHANNEL DRIVE temporary loss of subway service to the neighborhood. The ferry was discontin- The Department of Environmental trict. But time will tell if the revived dock National Grid owns this more than ued in late 2014, but the city is using Protection is listed as the owner of can help the otherwise undeveloped area 400,000-square-foot lot. It was the the location for the new, expanded ser- this wastewater-treatment plant. site of the Rockaway Park Manufac- become a destination rather than just an vice. The city fixed the dock earlier this According to the city, the 65-year- tured Gas Plant from the late 1870s year and wrapped most of the construc- old, 41-staff plant can process 45 on-again, off-again way station. until 1958, providing gas for cooking, tion well before the May 1 opening. million gallons of waste daily from If history is any guide, the new lighting, heating and commercial uses, the 90,474 residents it services. boats will be steering into choppy according to National Grid. The plant contaminated the site with coal tar waters. Up until 2010 the city subsi- and purifier waste. The state Depart- dized the Rockaway ferry to the tune ment of Environmental Conservation of $20 per ride before deciding that is overseeing National Grid’s efforts to clean it up. was too much and shutting it down. The service resumed after Hurricane Sandy, only to lapse again in 2014 for the same reason: not enough residents used it. Now the Rockaway boats are part of an expanded citywide ferry service operated by Hornblower, with $30 million in municipal funding to keep the cost of a ticket equal to a $2.75 subway ride. That amounts to an average 311–315 BEACH 104TH ST. $6.60 subsidy per trip. 112-20 BEACH CHANNEL DRIVE An anonymous corporation based While a handful of John Lepore bought this 2-story, in Hollis, Queens, bought the two ambitious investors have 8,562-square-foot commercial buildings on this site—one en- taken the plunge nearby, building for $1.95 million in compassing two floors, the other, three—for $260,000 in 2005. little has changed around 2013. It includes a nail salon and the Allstate insurance store- The city approved the buildings’ the newly renovated land- front where Lepore works. demolition in 2010, and the site ing—from which boats is now a vacant lot. will depart 16 times daily, with stops at the Brooklyn Army Terminal and Pier 11 just off Wall Street. Nearby vacant lots and 106-40 ROCKAWAY BEACH BLVD. low-rise commercial buildings house gas stations At the end of the last decade, Alma and pharmacies, and a few small residential prop- Realty Corp., based in Long Island City and owned by Steve Valiotis, built a erties offer apartments. 1-story, 11,514-square-foot building Farther from the disembarkation 112-01 BEACH CHANNEL DRIVE here. It houses a 24-hour Rite Aid. point, however, a pair of companies has Alma Realty is also selling the mas- Getty Realty Corp., the nation’s larg- sive Astoria Cove development site for teamed up on a proposed 61-room hotel est real estate investment trust spe- $350 million. at 108-20 Rockaway Beach Blvd., enlist- cializing in gas stations and conve- nience stores, bought this gas station ing Morris Adjmi, the architect who did and mechanic shop for $2.4 million the hip Wythe Hotel in Williamsburg, in 2013. The site also includes a bait- and-tackle store. The 2013 price was 108-20/108-14 ROCKAWAY BEACH BLVD. to design it. The hotel would be Rocka- TO 108-01 ROCKAWAY BEACH BLVD. more than double the approximately way Beach’s first lodging place since the $1 million a Virginia-based LLC paid Manhattan-based In Good Company Hospitality three-year-old Playland Motel closed last for the property in 2011. Group and JBS Project Management of Brooklyn year. It would include a rooftop bar and a bought the string of buildings and vacant lots from restaurant on the ground floor. “Accessi- Beach 109th to Beach 108th streets and Rocka- way Beach Drive to Rockaway Beach Boulevard bility to and from Manhattan is paramount to the 109-02 ROCKAWAY BEACH BLVD. for a combined $4.3 million in November. They business,” according to In Good Company Hospi- filed plans the next month for a 6-story, 61-room An automobile repair shop occupies this tality Group, one of the developers. ■ hotel. A necessary commercial rezoning for the site, which a Rockaway Beach–based development is wending its way through the city’s LLC bought for $650,000 in 2004. land-use review process, though demolition of the existing site is expected to be finished in June. GOOGLE MAPS, GETTY IMAGES

8 | CRAIN’S NEW YORK BUSINESS | May 1, 2017

P008_CN_20170501.indd 8 4/28/2017 2:44:15 PM REAL ESTATE

CAP LEADIN KO: caption readout KO go here here HANGING OUT: Concrete construction Concrete construction allows for late modifications, on the rise citywide such as balconies. Tastes, costs and technology combine to fuel trend BY DANIEL GEIGER

n the midst of negotiat- “With steel, it takes months the office mainstays of yester- ing a 50,000-square-foot to engineer and fabricate, and year, such as drop ceilings, car- office lease at 55 Hudson once you have it, changes are peted floors and corner offices, Yards, executives at The costly,” said Related’s president, in favor of a stripped-down, It’s generally cheaper to use, Steel is roughly three times IRelated Cos. were hit with what Bruce Beal, who could not industrial feel in which the in large part because concrete stronger than concrete per should have been an impossi- comment on the Silver Lake building’s structural details are pourers are less expensive to pound and can allow for fewer ble request. Prospective tenant deal, which has been reported often left exposed. hire than steelworkers, espe- structural columns on individ- Silver Lake, a $24 billion in- but has yet to be signed. “Con- That aesthetic is difficult cially on high-rise projects. ual floors than in a commensu- vestment fund, wanted to add crete is great. It can be less ex- to capture in a steel building, At the 12-story 61 Ninth rate-size concrete building. an outdoor terrace to the space pensive [and] faster to build where structural girders need Ave., however, concrete was ac- But the gap is closing. In it was looking to take in the with, and if you need to, you to be coated with layers of fire- tually slightly more expensive the past decade chemical addi- under-construction building. can make changes right up to proofing and the ceilings are to use, Abreu said, but its ben- tives have tripled the strength Making such a late-break- the moment before the pour.” generally made out of corru- efits outweighed the additional of some concrete mixes. At 55 ing modification would have gated metal. costs. Concrete floors are thin- Hudson Yards, Related is using been a nonstarter if the 51-sto- Pouring ahead “An unfinished ceiling in a ner than steel ones, allowing a technique in which steel wires ry tower were being built from Several new city office steel building is pretty ugly,” for higher ceilings, which many are inserted into the frame and steel, the material of choice buildings are following Re- said Matthew Abreu of Auro- tenants will pay a premium for. tightened to high tensions, for most office towers. But 55 lated’s lead with their all- ra Capital Associates, which Concrete has long been strengthening the structure Hudson Yards is part of a new concrete designs, including is co-developing both 40 10th used for ultratall residential and allowing for columns to be wave of properties being con- boutique office projects at 61 Ave. and 61 Ninth Ave. “Con- towers but not high-rise office spaced farther apart. structed with concrete. That al- Ninth Ave., 40 10th Ave. and crete has an appealing textural buildings, because office floors “It used to be that you lowed Related simply to adjust 512 W. 22nd St. element, and there’s an au- have to bear the weight of a couldn’t get enough of a span the mold for Silver Lake’s pro- The trend reflects the thenticity to it.” greater number of people and between the columns with spective floors and pour in the changing tastes of tenants, who Of course, there’s another heavy equipment, such as com- concrete,” Beal said. “You can concrete to create the balcony. have increasingly eschewed reason concrete has caught on: mercial-grade heating systems. solve for it now.” ■

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May 1, 2017 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20170501.indd 9 4/28/2017 2:30:53 PM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS Richard Merkin, MD and

PRESENT THE 2017 Heritage Healthcare Innovation Awards

The 2017 Heritage Healthcare Innovation Awards recognize the best of today’s healthcare clinicians, administrators and researchers who are making measurable improvements in health status, improving access to healthcare, positively impacting patient quality of care and demonstrating long-term healthcare aﬀ ordability in New York.

A diverse panel of independent expert healthcare judges guided the selection process. Heritage will honor the ﬁ nalists and reveal the winners in each category at an event in New York City on May 22. Meet the 25 finalists: Heritage Innovation in Healthcare Delivery Award Recognizing an innovator in the development of new modes of diagnosis, treatment and care who actively improves the delivery of services and improves quality of healthcare.

Nora V. Bergasa, MD, Manmeet Kaur Timothy Peck, MD Chris Norwood Steven Katz MACP, FAASLD, AGAF Executive Director and Co-founder and CEO, Founder and Executive Founder and co-CEO, Professor of Medicine, Founder, City Health Call9 Director, Health People: PM Pediatrics New York Medical College; Works Community Preventive Chief of Medicine, NYC Health Institute Dr. Jeffrey Schor Health+Hospitals/ Founder and co-CEO, Metropolitan PM Pediatrics

Heritage Healthcare Leadership Award Recognizing a leader who has made a signiﬁ cant impact in their healthcare ﬁ eld. This forward thinker has forever changed the way care systems work through new models, processes and pathways.

Joseph G. Conte, PhD Karen Ignagni Paloma Izquierdo- Anne Kauffman Nolon, Pablo Rubinstein, MD Executive Director, President and CEO, Hernandez MPH Vice President and Staten Island Performing EmblemHealth President and CEO, President and CEO, Program Director, Provider System Urban Health Plan HRHCare Community National Cord Blood Health Program

The judging and selection of ﬁ nalists and winners in the 2017 Heritage Healthcare Innovation Awards is independent of the Crain’s New York Business newsroom.

SPREAD AD FOR HERITAGE 2017_MECH FINAL.indd 1 4/28/17 11:44 AM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS

Heritage Healthcare Organizational Leadership Award Honoring an organization that has fundamentally changed how healthcare is delivered. This organization has created, or championed new ways of thinking and doing, uniting diverse constituencies to work together.

Lindsay Farrell Christopher D. Hillyer, MD Feygele Jacobs, DrPH Daniel Reingold Steven Safyer, MD President and CEO, President and CEO, New York President and CEO, President and CEO, President and CEO, Open Door Family Blood Center; Professor, RCHN Community RiverSpring Health Monteﬁ ore Medical Medical Centers Department of Medicine, Health Foundation Center Weill Cornell Medical College

Heritage Innovators in Healthcare Award Highlighting cutting-edge applications of technology and up-and-comers in the healthcare industry. These breakthrough innovators are making signiﬁ cant contributions in the areas of technology, research or new approaches to healthcare systems.

Gil Addo Paul Coyne, DNP, APRN Arun Gupta Michael Simmons Wellth Team CEO and Co-founder, President and Co-founder, CEO, Quartet CEO and Founder, and Wellth CEO, RubiconMD Inspiren CredSimple Matthew Loper

Heritage Research Investigators in Translational Medicine Award Awarded to an individual based on the most signiﬁ cant quantitative results achieved by accelerating the transition of novel and innovative diagnostic tools and treatments to patients.

Carl Nathan, MD Jeffrey V. Ravetch, Nina Tandon Piraye Yurttas Beim, Timothy M. Wright, PhD R. A. Rees Pritchett MD, PhD CEO and Co-founder, PhD F. M. Kirby Chair of Professor of Theresa and Eugene Epibone, Inc. Founder and CEO, Orthopedic Microbiology; M. Lang Professor, The Celmatix Biomechanics, Hospital Chairman, Department Rockefeller University for Special Surgery, of Microbiology & Professor of Applied Immunology, Weill Biomechanics in Cornell Medical College Orthopedic Surgery, Weill Cornell Medical College Healthcare Partners IPA, NY – the New York aﬃ liate of the Heritage Provider Network – congratulates all of our 2017 ﬁ nalists

SPREAD AD FOR HERITAGE 2017_MECH FINAL.indd 2 4/28/17 11:44 AM AGENDA SPOTLIGHT SMALL BUSINESS

Found in translation How a publishing company ‘spun gold out of nothing’ BY PETER S. GREEN

t began as idle chatter. Two multilingual literature bu s met at a middle school spelling bee and talked about the foreign books they’d read that had never been published in the U.S. Why not, they thought, open a publishing house and translate their favorites? “But neither of us had any experience in book publishing,” said I Michael Wise, a former Central Europe correspondent for Reuters. New Vessel Press, founded in 2012 by Wise and Ross U erg, then a Ph.D. candidate in Slavic studies at Columbia University and now an editor at online magazine BreakGround, translates and publishes six books annually. e pair pooled $100,000 of their own money to start it. e money went quickly to buying publishing rights, hiring translators and a cover designer (up-and-coming New Yorker cartoonist Liana Finck), building a website, publicizing their venture and paying for printing their rst year’s catalog, all before a single book was sold. Finding manuscripts isn’t hard. Only 3% of books published in the U.S. are translations. e men travel to book fairs in Germany and the United Arab Emir- ates, get recommendations from friends and read voraciously—Wise is uent in German and French, and U erg, in Polish and Russian. ey have become a go- to outlet for foreign publishers. “We look for novels and non ction that put you in another place, give you access to another culture, transport you,” U erg said. “What we are doing is all the more important because of the politicians who would just as soon ignore the rest of the world,” said Wise.

Instant classic eir rst book, e Missing Year of Juan Salvatierra by prominent Argentine writer Pedro Mairal, was named one of New Republic’s 10 best books of 2013. Oblivion, a dive into the legacy of Soviet-era prisons by Sergei Lebedev, was chosen by e Wall Street Journal as one of the top 10 novels of last year. “Every other book on that list was by a major corporate publishing house,” Wise said. eir latest is e Madeleine Project by French journalist Clara Beaudoux, who discovered a storeroom full of papers and photographs belonging to the previous tenant of her Paris apartment and reconstructed the woman’s life through a multiyear storm of tweets. “It’s a graphic novel of the digital age,” said Wise. COVER THE WORLD: “Ross and Michael have really spun gold out of nothing; they’ve really made Wise, along with his partner, aims an instant classic out of New Vessel,” said John Oakes, director of the New School to nd an American Publishing Institute and co-founder of OR Books. market for great Critical success aside, making money in the book business is tough. New foreign books. Vessel lists books for $16, which are sold wholesale for $8, minus a $2 or $3 fee to the distributor. Translations can cost from $3,000 to $10,000, depending on the length and di culty of the text and the renown of the translator. Grants from foreign cultural institutions cover about a third of the cost of translation. e partners say they are approaching pro tability, with revenue in the low six gures. eir titles sell between 3,000 and 7,000 copies, and sales were up 40% from 2015 to 2016. New Vessel buys worldwide English- language rights, making some money by selling to publishers in Great Britain and Canada. Oc- casionally, New Vessel gets a cut when a title is optioned for lm, like Killing the Second Dog, by late Polish writer Marek Hlasko. Actor Richard Gere helped convince Hollywood studio Tadmor Films to option the screen rights for the tale of two down-and-out Poles scamming lovelorn women in 1960s Tel Aviv, Israel. New Vessel stands to earn a six- gure fee. Another strategy is to nd the next Stieg Larsson, the late Swedish author of the best-selling Millennium trilogy. e pair sees potential in Martin Suter, a German-Swiss crime writer who sells hundreds of thousands of books in Europe. His art-fraud thriller e Last Weynfeldt, published last year by New Vessel, is the rst of a three-book deal that U erg hopes will gradually seed the market. “Suter FOCAL POINTS didn’t become the biggest-selling author in Germany overnight,” he said. Marketing remains a challenge. New Vessel o ers an annual subscription for NAME New Vessel Press $72. Volume is still low, so U erg wraps all the subscription books in pastel crepe paper himself, the kind of personal touch that distinguishes New Vessel from INDUSTRY Book publishing large-scale publishers. ey organize tours of major U.S. cities for their authors FOUNDERS Ross Ufberg and Michael Wise (paid for by the universities and cultural centers they visit). Reviews in e N e w LAUNCHED 2012 York Times and e Wall Street Journal give them material to share during a book’s LOCATION Upper West Side social-media campaign. U erg and Wise also occasionally set up a folding table in front of Zabar’s on the Upper West Side, where selling 30 books on a slow a er- MAJOR INVESTORS Self-funded noon is a success. at’s given them a freedom absent at larger publishing houses REVENUE Low six gures that are guided by marketing studies. “We don’t have to pass things through a EMPLOYEES Two: Wise is full-time; committee,” U erg said. “If we say it’s a fantastic book, we can just publish it.” Ufberg is part-time. And they are reassured that enough people want what they can provide. “Our sales are up,” said U erg. “A lot of people are looking for entertaining, intellec- WEBSITE newvesselpress.com

BUCK ENNIS tual, good reads, and as long as we can keep providing them, we’re OK.” ■

12 | CRAIN’S NEW YORK BUSINESS | MAY 1, 2017

P012_CN_20170501.indd 12 4/28/2017 2:32:14 PM AGENDA POLITICS

REMOVING Mayor’s big capital plan RIKERS: The mayor’s budget means rising debt service puts $1 billion toward closing Watchdogs fear city can’t afford de Blasio’s proposals BY ROSA GOLDENSOHN the jail.

ayor Bill de Blasio unveiled going to have to be more strategic about an ambitious 10-year, $95 how it undertakes capital investments.” billion capital plan last week along with climbing Where the money’s going Mdebt-service costs that could get painful A fifth of the capital plan will go to should the city face rainy days ahead. schools, with $7.7 billion earmarked Debt service—what the city pays for new buildings and expansions. The annually on the money it borrows for crumbling Brooklyn-Queens Express- capital projects—will rise 34% by 2021, way Triple Cantilever, which some to $8.4 billion from $6.3 billion. By way experts fear could collapse at any mo- of comparison, debt service grew 12% ment, will finally get a fix to the tune of between fiscal years 2012 and 2016. $1.5 billion. More than $3 billion will go Refinancing older debt had limited the to Department of Sanitation equipment increase, but that is no longer possible and facilities, and $1.8 billion will pay because interest rates have risen. to renovate and upgrade court-system Projects keep infrastructure in good facilities. Nearly 10% of the budget is repair and can benefit the city’s econo- going to the Department of Housing my and quality of life. But budget hawks Preservation and Development to help worry that the mount- developers build af- ing expense would fordable apartments. put the city in a bind “If the city’s going to In recent years the in the event of federal keep its debt burden city has been able to cuts or a recession. take advantage of low The de Blasio administration said the grown, rising by more than 10% since “Some of the affordable, it’s going interest rates and refi- fiscal year 2021 projection is based on 2014. The NYPD will get a $275 million weakness they’re al- to have to be more nance aggressively. But conservative assumptions and noted it is firearms-training facility, a $367 million ready showing on in March the Federal well below 15% of revenue, “the bench- warehouse and $600 million for new the tax-revenue side, strategic about how Reserve raised interest mark for responsible and sustainable equipment and vehicles. The Depart- you have to wonder it undertakes capital rates for the third time levels of debt service,” a mayoral spokes- ment of Correction, whose officers have if that’s a lead indica- since the financial cri- woman said. “The 15% benchmark is been accused of abusing inmates, gets a tor for a decline in the investments” sis. The debt burden used by the city and fiscal monitoring new $100 million training academy. economy,” said Maria will grow to 9% of the agencies as the best measure of debt bur- De Blasio also put $1 billion in his Doulis, vice president city’s total revenue in den, because it shows that, over time, we capital budget for jail construction— of the watchdog group Citizens Bud- fiscal 2021, from 7.4% in 2017, accord- can afford the level of debt we take on.” essentially a down payment on a plan get Commission. “There’s a very large ing to budget documents. Unlike annu- The mayor proposed funding for to close Rikers Island, which a com- capital program, and if the city’s going al operating expenses, the debt service some big-ticket items, especially for the mission recently estimated would cost to keep its debt burden affordable, it’s cannot be cut and must be paid. police, whose operating budget has also $11 billion. ■

Bill would ban smoking in new apartments Measure would affect taxpayer-aided housing

A NEW CITY COUNCIL BILL would pro- bill affects a large swath of New York hibit smoking in apartment buildings that City’s existing and yet-to-be-built hous- receive taxpayer support, including the ing stock,” the group wrote in testimony. luxury high-rises that get tax breaks for “Captured in this definition will be de- including affordable units. velopments that include mixed develop- The measure, which does not have the ments with market-rate and affordable backing of Mayor Bill de Blasio, would units. The inability to smoke within the apply only to future construction or pres- private residences in these buildings ervation projects as well as to existing could devalue units and affect persons Housing Authority developments. State, that are not beneficiaries of such ‘finan- federal and local programs providing cial assistance.’ ” loans, grants, land and subsidies—such Supporters of smoking bans in apart- as the 421-a tax abatement that goes to ment buildings argue that secondhand virtually all apartment projects—would smoke affects the health and quality of life trigger the ban. of residents in units near those of smok- The rule would affect nearly 140,000 ers. Predictions that earlier bans on smok- affordable homes still to be built or pre- ing in bars and restaurants would harm served in the de Blasio administration’s those businesses were not borne out. 10-year housing plan in addition to all The rate of smoking in the city de- market-rate units in those buildings. creased from 21.5% in 2002 to 14.3% in The Real Estate Board of New York, 2015. Tobacco use is the leading cause of which represents developers, opposes preventable premature death in the city, the measure. “Because of the bill’s broad according to the Department of Health

BUCK ENNIS definition of ‘city-financed housing,’ this and Mental Hygiene. — R.G.

May 1, 2017 | CRAIN’S NEW YORK BUSINESS | 13

P013_CN_20170501.indd 13 4/28/2017 4:16:37 PM AGENDA VIEWPOINTS

The true story of the city’s unfair property taxes A new lawsuit could finally force politicians to act

IT SHOULDN’T BE news Here is how this sorry system came to anyone that New about—and why it should change. York City’s property- Decades ago New York gave owners tax system is all of single-family homes big tax breaks screwed up. But last to keep them in the city and to offset week some big land- the financial impact of income tax. As TAX RATES in poor areas of the Bronx (left) are much higher than in Park Slope (right). lords and civil-rights co-ops and condos became a significant groups finally did share of the marketplace, politicians GREG DAVID something about it by extended the tax breaks to those units. property in one year and 20% over five City Council speakers past and pres- filing a lawsuit argu- Taxes on rental buildings were left un- years. This benefit goes to homeowners ent have admitted the system is fatally ing that the system is deeply unfair. I changed, and now those landlords pay in areas where property values are ris- flawed. But they have lacked the cour- hope they will put Mayor Bill de Bla- several times the rates that condo and ing the fastest; the mayor himself is a age to either raise taxes for some home- sio and other city politicians on the hot co-op owners pay, costs they mostly prime beneficiary. owners to offset reductions for others seat they so richly deserve. pass along to their tenants. The lawsuit filed by the group Tax or agree to see billions of dollars in rev- Consider a few examples. Equity Now says the system is not just enue disappear. De Blasio pays $3,581 in taxes on unfair but racially discriminatory. Mi- The mayor reacted peevishly to the each of the two row houses he owns Most minority homeowners norities are more likely to be renters lawsuit, saying it was something that in Park Slope, which are worth rough- are in areas with the than owners, and most minority home- needed to be dealt with after the No- ly $1.6 million apiece. In Laurelton, owners are in neighborhoods with the vember election. He couldn’t be more Queens, retired salesman Arthur Rus- highest tax rates, while highest tax rates, while whites are in wrong. Only by making it a key cam- sell pays a $4,569 tax bill for a home whites are in those with those with the lowest. paign issue can the groundwork be laid worth $396,000, as the New York Daily The lawsuit signals that some major for reforms that move the city to fair- News pointed out in a story last week. the lowest landlords such as Durst, Related and ness. The specter of a judge ordering Single-family homeowners in City RXR are fed up and not willing to take changes—along with the bright media Councilman Brad Lander’s prosperous it anymore. Their data also make clear spotlight the case is sure to attract— Brooklyn district pay an effective tax These same politicians decided to that the situation is getting worse as the might finally spur the pols to action. ■ rate of 0.36%. Those in Annabel Pal- further shield homeowners from ris- gap grows between the well-off winners ma’s struggling Bronx neighborhoods ing property taxes by limiting to 6% and the not-so-well-off losers. GREG DAVID blogs regularly at pay three times that rate at 1.12%. the increase in the taxable value of any Politicians including de Blasio and CrainsNewYork.com.

FROM OUR READERS Tenants alone can’t make public housing energy-efficient

Re “The most energy- energy-performance Yorkers, and budget cuts ing victims in shelters STUDENTS BEWARE why not have a public- wasting landlord in the contracts, which will do will put much more in their neighbor- “The real purpose of service commercial city is the city itself” far more to reduce en than the agency’s ability hoods—close to the very Cuomo’s free-college- saying, “Move to the (Agenda, April 24): The ergy usage than chang- to reduce energy usage perpetrators of domestic tuition plan” (ICYMI, right”? People just walk solution to the energy ing residents’ behavior. at risk. violence, who then have April 17) raises import- into each other—a lot of issues in New York City’s The agency is already JUDI KENDE consistent access and ant issues regarding free them on their phones— massive public-housing working toward this VP and New York market leader, opportunity to continue tuition at state and city and don’t seem to care. system is much larger through the NextGener- Enterprise Community Partners their abuse—is not the colleges and universities. Maybe if they heard this than the debate over ation NYCHA Sustain- safest or most effective You provided a service to commercial, they might charging tenants for the ability Agenda. Resident SHELTERING VICTIMS approach. consumers by highlight- move to the right when electricity they use. As involvement is import- We applaud Mayor Bill Local shelters may ing the fact that, though they see or sense another the city’s largest land- ant, as well; programs de Blasio’s ongoing effort provide a terrific option well-intentioned, the person walking toward lord, the New York City like Green City Force’s to address the needs of for some homeless fam- initiative contains condi- them. We can only hope. Housing Authority needs Love Where You Live ed- homeless families by ilies, but one size does tions students should be SUSAN MESHBERG to focus on cost-effective ucate and inform tenants housing them in their not fit all. aware of before signing Susan Meshberg Graphic ways to improve en about energy efficiency own neighborhoods While an increase on the dotted line. Design, ergy efficiency across in their homes. (“A humbled de Blasio in dedicated domestic ANGELA HARRINGTON Manhattan all five boroughs in the NYCHA knows how tries again with new violence beds is an im- Assistant VP, communications hundreds of buildings it critical it is to reduce en- homelessness plan,” portant addition, many and external relations, INSPIRED BY 40S manages, most of which ergy usage, but it needs CrainsNewYork.com). victims will continue to Berkeley College, I feel inspired by some of are well over 50 years old. resources in order to do However, as the city go through the tradi- Woodland Park, N.J. the individuals on your To make the most im- so. This is just one of the acknowledges, at least tional system, and we 40 Under 40 list (March pact, the agency should many reasons why the 31% of those fami- trust that the city will WALK THIS WAY 27). How do you find focus on large-scale proposed federal cuts to lies have experienced accommodate their need I enjoyed “Getting ready these amazing people? infrastructure improve- public-housing funding domestic violence. For for safe housing, as well. for 9 million” (Crains ANTHONY K.C. FONG ments, such as mod- are troubling. Public those homeless families, AMY BARASCH NewYork.com). Now General counsel, ernizing heat and hot housing is a lifeline for being close to home is Executive director, that we have so many Broadway Stages, water systems through more than 400,000 New actually dangerous. Plac- Her Justice people walking around, Brooklyn

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

14 | CRAIN’S NEW YORK BUSINESS | May 1, 2017

P014_CN_20170501.indd 14 4/28/2017 2:32:49 PM Innovative Financing Helps Community Projects Take Flight

ursting at the seams to move ahead on a plan to double Bstudent enrollment from 200 to 400, the fast-growing Manhattan Country School needed a brand-new building. Although it had tried renting an auditorium, a gym and office space, space constraints were starting to limit the school’s programs.

Administrators found the ideal space in a stately building at 150 W 85th St., formerly home to Mannes College, The New School of Music. But moving there from the school’s location at 7 E 96th St. required financing.

LOCAL BANK PROVIDES FINANCING SOLUTION Michèle Solá, Director, Manhattan Country Gustavo (Gus) Buitrago The answer to their monetary School and , Senior Vice President and Team Leader, Flushing ® need came from Flushing Bank , Bank Business Banking Group, cut the ribbon a community-focused bank that at the opening of the new school building. prides itself on its commitment to consumers, businesses, pro- fessionals, corporate clients and public entities in the New York Rendering of Manhattan Country School’s Flushing Bank’s commitment to the With its roots in a multicultural neigh- area. Flushing Bank introduced the new building community extends to the many consum- borhood, Flushing Bank supports the school to the Not-for-Profit Bond ers and businesses the bank works with diversity of New York City. Its bankers Program, an innovative type of The tax-exempt bond enabled through its 19 offices speak more than 30 financing program that provides nonprofit Manhattan Country School to obtain a in Queens, Brooklyn, different languages, organizations access to private activity very competitive interest rate and retire Manhattan, and Long including various tax-exempt bond financing. debt it had taken out at a less attrac- Island, noted Buitrago. “ These programs dialects of Chinese and tive rate. Founded in 1929, in Flushing, In recent years, the bring new economic Korean; and employees Such bonds, aimed at nonprofit organi- Queens, and listed on the NASDAQ, bank has invested heav- work with an advisory zations in need of financing for major de- Flushing Bank has a history of serving ily in technology. Its energy while helping board made up of civic velopment projects, are available through locally based nonprofits in many fields, new ATMs can perform to improve the leaders and prominent the Build NYC Resource Corporation. among them social service, health care, most any transaction community.” community members to The bonds offer the advantage of triple education and cultural organizations. a teller can, freeing guide support of local Like Manhattan Country School, many of staff to spend more cultural events and tax-exemption, receiving exemptions John R. Buran these organizations need to stretch tight time serving customers organizations. from Federal, State and City income taxes President and CEO on bond interest on bonds issued by the budgets and are seeking low-cost, custom with more complex or Build NYC Resource Corporation. As a financing solutions to achieve their goals. detailed needs. These commitments are result, they can significantly reduce the bringing high-impact overall cost of financing. SMALL ENOUGH TO KNOW YOU. Operating on the philosophy, “Small results to New York City’s communities. At LARGE ENOUGH TO HELP YOU enough to know you. Large enough to Manhattan Country School, for instance, the Thanks to the $22 million bond the bank Leading the transaction for Manhattan help you,” the bank strives to differen- Courtyard—the architectural centerpiece of arranged, Manhattan Country School was Country School was Gustavo “Gus” tiate itself through a community-based the school’s new building—was opened in able to purchase the building on West Buitrago, senior vice president and team approach to relationships, Buitrago said. March 2017. Cheerful sunlight now floods 85th Street in 2015 and renovate it in time leader, Flushing Bank Business Banking the classrooms and children have a safe out- for the start of the 2016-2017 school year, Group. Buitrago is responsible for leading BUILDING THE COMMUNITY door space to play and learn. That is exactly with money left over to refinance other the bank’s commercial banking efforts THROUGH PHILANTHROPY the kind of result Flushing Bank strives for, more costly debt. The new, roomier build- and manages the activities of a team of The bank has supported many restau- said Buran. “We truly are a different kind of ing provides on-site gym facilities, a large relationship managers. He has more than rants, shops, and other businesses, bank—one that cares.” assembly space and more classrooms, 30 years of commercial banking experi- fueling their growth through competitive allowing the school to add a second class ence—10 of which have been spent at mortgages, business and real estate to every grade level. Flushing Bank—and specializes in creat- lending programs, and personalized ing custom solutions based on clients’ financing packages, Flushing Bank Pres- “We are pleased that we could provide a specific needs. Buitrago said this transac- ident Buran noted. In one such instance, financing solution for Manhattan Country tion was particularly meaningful because a Flushing Bank commercial lending School,” said John R. Buran, Flushing of the positive impact it will have on the specialist helped a facial-care physi- Bank’s president and CEO. “This institution students and the neighborhood. cian finance a new clinic through a $1.3 has been providing a multicultural commu- million financing package composed of a For more information, contact nity of students with a progressive educa- “By supporting local institutions, such commercial mortgage, line of credit, and Gus Buitrago at 718.512.2938 tion since 1966. As a community bank, we as Manhattan Country School, as well as term loan. recognize the importance of supporting businesses in the community, we are able local institutions that provide essential to contribute to making the New York City “These programs bring new economic services and contribute to the economic metropolitan area a great place to live and energy while helping to improve the development of the community.” work,” said Buitrago. community,” said Buran. Flushing Bank is a registered trademark

An Advertising Supplement to Crain’s New York Business

Flushing_Bank_Rev.indd 1 4/19/17 1:18 PM AGENDA THE LIST REAL CAPITAL ANALYTICS’ LARGEST NYC FINANCINGS Ranked by loan amount from January 2016 through April 2017

ADDRESS/ LOAN AMOUNT TRANSACTION RANK PROPERTY LOCATION (IN MILLIONS) TYPE DATE BORROWER(S) LENDER THE TOP 1 Vanderbilt Ave. $1,500.0 Refinance 9/28/16 SL Green Realty Corp. Wells Fargo FOUR 1 Midtown East 9 W. 57th St. $1,350.0 Refinance 8/5/16 Solow Realty JPMorgan 2 Midtown West 35 Hudson Yards $1,200.0 Refinance 7/29/16 Related Cos./OMERS Children’s Investment Fund 3 Far West Side 1285 Sixth Ave. (PaineWebber Building) $1,025.0 Sale 5/20/16 RXR Realty/David Werner Morgan Stanley 4 Midtown West Real Estate 10 Hudson Yards $987.5 Sale 8/1/16 Allianz Deutsche Bank 5 Far West Side 225 Liberty St. $900.0 Refinance 1/22/16 Brookfield Asset Commercial mortgage-backed 6 Battery Park City Management security1 280 Park Ave. $900.0 Refinance 5/18/16 SL Green Realty Corp./ Deutsche Bank 6 Midtown East Vornado Realty Trust 1301 Sixth Ave. (Crédit Lyonnais Building) $850.0 Refinance 10/11/16 Paramount Group AXA Group 8 Midtown West 5 Times Square $782.0 Refinance 3/9/17 RXR Realty Morgan Stanley 1 Vanderbilt Ave. 9 Garment District 787 Seventh Ave. $780.0 Sale 1/27/16 CalPERS/CommonWealth Commercial mortgage-backed LOAN AMOUNT $1.5 billion 10 Midtown West Partners security2 1 Water St. (1 New York Plaza) $750.0 Refinance 3/17/16 Brookfield ssetA Wells Fargo 11 Financial District Management 770 Broadway $700.0 Refinance 2/8/16 Vornado Realty Trust Morgan Stanley 12 Greenwich Village 60 Wall St. (Deutsche Bank HQ) $575.0 Sale 1/13/17 GIC Aareal Bank 13 Financial District 550 Madison Ave. $570.0 Sale 5/26/16 Olayan Group/Chelsfield ING Group 14 Midtown East 550 Madison Ave. $570.0 Refinance 11/18/16 Olayan Group/Chelsfield ING Group 14 Midtown East 701 Seventh Ave. (Times Square Gateway Center) $510.0 Refinance 11/1/16 Winthrop Realty Trust/ JPMorgan 16 Midtown West Witkoff Group 31 W. 52nd St. $500.0 Refinance 5/3/16 Paramount Group/ AXA Group 17 Midtown West Hamburg Trust 227 Cherry St. (1 Manhattan Square) $500.0 Refinance 9/1/16 Extell Development Co./ Deutsche Bank Financial District Starwood Capital 17 9 W. 57th St. 616 First Ave. (American Copper) $500.0 Refinance 12/22/16 JDS Development/ AIG 17 Murray Hill Baupost Group LOAN AMOUNT $1.35 billion 1540 Broadway $450.7 Refinance 7/15/16 EDGE Fund Advisors/ DekaBank 20 Midtown West HSBC Holdings 424–434 Fifth Ave. (Lord & Taylor) $400.0 Refinance 7/20/16 Ares Management CIBC 21 Plaza District 720 Fifth Ave. $400.0 Refinance 7/21/16 Wharton Properties SL Green 21 Midtown West 350 Park Ave. $400.0 Refinance 12/2/16 Vornado Realty Trust Commercial mortgage-backed 21 Midtown East security3 85 10th Ave. $396.0 Sale 12/1/16 Vornado Realty Trust Commercial mortgage-backed 24 Chelsea security4 485 Lexington Ave. $350.0 Refinance 1/31/17 SL Green Realty Corp. Commercial mortgage-backed 25 Midtown East security5 1745 Broadway (Random House HQ) $345.0 Refinance 1/11/17 SL Green Realty Corp./ Bank of China 26 Midtown West Caisse de dépÔt 850 Third Ave. $335.0 Sale 3/17/16 MHP Real Estate Services/ Blackstone 27 Midtown East HNA Group 346 Broadway $334.0 Refinance 2/2/16 Peebles Corp./Delek Group Bank of America 35 Hudson Yards 28 Civic Center LOAN AMOUNT $1.2 billion 1250 Broadway $330.0 Sale 11/1/16 Global Holdings HSBC Holdings 29 Plaza District 152 W. 57th St. (Carnegie Hall Tower) $325.0 Refinance 4/12/17 TF Cornerstone MetLife 30 Midtown West 100 Varick St. $320.0 Sale 1/21/16 Cindat Capital Management Bank of China 31 Hudson Square 42-09 28th St. (2 Gotham Center) $305.0 Refinance 2/7/17 H&R REIT Northwestern Mutual 32 Queens 1 Park Ave. $300.0 Refinance 3/7/16 Vornado Realty Trust/ DekaBank 33 Midtown East CPP Investment Board 7 W. 34th St. $300.0 Sale 5/27/16 CBRE Global Investors/ MetLife 33 Plaza District Korea Post 405 Lexington Ave. (Chrysler Building) $300.0 Refinance 3/23/17 Abu Dhabi Investment National Bank Abu Dhabi 33 Midtown East Council/Sorgente SGR

Data are based on publicly reported lending activity from Jan. 1, 2016 through April 16, 2017. Includes first mortgages made for acquisitions and refinancings on properties and portfolios of $2.5 million and greater; excludes seller financing, mezzanine financing and ground leases. In case of tied figures, deals are listed in order of transaction date (from oldest to newest). Real Capital Analytics Inc. is an independent research firm focused on capital investment markets for commercial real estate. In addition to collecting transactional information for property 1285 Sixth Ave. sales and financings, RCA interprets the data, including capitalization rates, market trends and sales volume. The firm publishes a series of Capital Trends reports and offers an online (PaineWebber Building) service that provides real-time, global transactional market information. 1-Originated by Citi, Deutsche Bank and Wells Fargo. 2-Originated by Deutsche Bank. 3-Originated by Goldman

BUCK ENNIS; COURTESY OF KPF AND SOM Sachs and Deutsche Bank. 4-Originated by Deutsche Bank and Wells Fargo. 5-Originated by Goldman Sachs. Additional research by Gerald Schifman. LOAN AMOUNT $1.025 billion

16 | CRAIN’S NEW YORK BUSINESS | May 1, 2017

P016_CN_20170501.indd 16 4/28/2017 2:33:30 PM T:10.875” T:14.5”

They started with a simple idea: to make cloud computing available to every business, large or small. But as they grew from a startup to millions of clients, they wanted a whole new way to connect with their customers. That’s why they’ve always used Salesforce. The Customer Success Platform, powered by Einstein artificial intelligence, qualifies their leads, predicts when customers are ready to buy, and helps them close more deals. What if you had a way to help your business take flight?

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SFDC_AWS_Crains_10p875x14p5_V3.indd Crains Ad Date: 4-25-2017 12:09 PM By:Iain Boltin / Iain Boltin Printed At:None

Job info Approvals Fonts & Images Job None Art Director None Fonts Product Brand Copywriter None Salesforce Sans (Light, Semibold) Project Q2 Media Buy PM Taylor Hilficker Studio Artist Iain Boltin Images Live 10.125" x 13.75" Proofreader None SFDC_AWS_Illustration_1page_8p3x9p5_ 3 Trim 10.875" x 14.5" PMM None V2.ai (121.99%), Saleforce_Blaze_Your_ Bleed 11.125" x 14.75" Trail_Logo_4C_0417.ai (126.94%) Notes Folded Size None Inks Gutter None None Cyan, Magenta, Yellow, Black Panel Sizes None Scale 1" = 1" ROUND Substrate None MECH NOT FOR ACTUAL COLOR REPRESENTATION TRANSPORTATION | DRIVERLESS CARS

SHARE A RIDE: Bandwagon, the carpool service started by Mahfouda (right), is meant to complement mass transit.

aniel Ramot co-founded Via in hind the wheel. But they’re likely to be expensive, at 2012 as a shuttle service that relies least at first, and in cities with enough transportation on algorithms to pick up multiple options, they could be luxury items for individuals. THE FUTURE passengers without taking them For ride-hail fleet operators like Uber, though, on detours or side trips. The ser- the technology could help them save money by al- Dvice, which costs $5, has done such a good job of lowing them to use a vehicle 24 hours a day with- OF DRIVING— pleasing customers, it now makes a million trips out paying anyone to drive it. And they’d profit even per month in Manhattan, Brooklyn and Queens. more if the vehicle served more than one customer But Ramot, like other players in New York’s ride- at a time. For car-share companies like Car2go, the share world, has his eye on the future. He says Via tech could help them by finding riders faster, even if MINUS THE is perfectly positioned for the inevitable switch to only one person at a time used their vehicles. driverless vehicles—and that the city is poised for a “Autonomous vehicles enable two different ways starring role. of higher utilization,” said Christian Noske, a prin- DRIVER In particular, he believes shared vehicles will rep- cipal in the New York office of BMW i Ventures, the resent the most cost-efficient use of driverless tech- German carmaker’s venture capital arm. nology and be the Carmakers and driving most popular with Proving ground startups are flocking to the riders. And those BY 2030 IN THE U.S., By 2030 shared vehicles, combined SHARED DRIVERLESS CARS autonomous electric city, where the car-sharing with routing tech- vehicles could ac- era has already begun nology like Via’s, COULD ACCOUNT FOR A count for a quarter could allow fleet of all miles driven operators to pro- QUARTER OF MILES DRIVEN in the United States, vide transporta- the Boston Consult- BY MATTHEW FLAMM tion tailored to the ing Group found. needs of individuals but at a price that could be clos- The combination of being shared, driverless and er to that of a subway ride. “The future of driverless electric would make the vehicles so cheap to use that cars is not single pods picking up single passengers,” people would give up having cars of their own, es- Ramot said, “but large vehicles shared by multiple pecially in densely populated cities, where 70% of passengers.” the world’s population is expected to live by 2050. Driverless vehicles have been cast as the way peo- Already a smaller share of people own cars in New

BUCK ENNIS ple will get around without the hassle of being be- CONTINUED ON PAGE 20

18 | CRAIN’S NEW YORK BUSINESS | May 1, 2017

P018_P020_CN_20170501.indd 18 4/28/2017 4:17:20 PM CN018202.indd 1 3/22/17 11:02 AM CN018202.indd 1 3/22/17 11:02 AM P018_P020_CN_20170501.indd 20

BUCK ENNIS 20 TRANSPORTATION |

CRAIN’S NEWYORKBUSINESS logistics,” he added. butexperience, for also of sake the operations and leave stuff their behind? This is not just user the for cleanedther nor “Is fueled. car the clean? Didpeople hicle that others before had used and them had nei- similar to driverless cars inthat people get into ave- users,” Noske said, noting that acar-share is fleet to members and how to care take of them. vehicles should distributed be most to be accessible DeLong. The companies sense also getwhere a of relationships with customers officials, andsaid local trips outsidetaking city. the mostlyis used on weekends, with members often North ReachNow, America. withvehicles, its luxury to Paul DeLong,company’s the chief executive for subway or errands running on way, the according people often completingtriptheir homefrom the found get evenings, inthe heavy they use with ing cars would they manufacture. that fleets couldbased oneday consist self-driv - of panies areinmanaging gaining also app- expertise build profitable businesses. Butparenttheir com- oncould be road the by early the 2020s.) to supply with self-driving cars Uber and says they done. recently (Daimler announced apartnership andthem park inadesignated “home area” when cate vehicles with an app, pay by minute the to drive Brooklyn and Members lo- Queens. of services both Mercedes-Benz parent Daimler, operates which in joined car-sharing rival Car2go, owned service by liamsburg, with 250BMWsand It Mini Coopers. its car-sharing program, ReachNow, inWil- cent years. In November automaker the launched citythe ahive of transportation new activity inre- know are preparing for,” Noske said. onmaking bets driverless the future. and atesting groundhail services for companies make city the country’s the biggest market for ride- York than inany other U.S. city, has which helped develop for shared driverless vehicles. Affluent cus- aftera taxi exiting masstransit. ride-hailing by making it cheaper and faster to grab said. In meantime the he’s offering alternativean to humanthe around logistics transfer these points,” he andairports train and bus stations. “We plan to own public transportation. That’swhy he’s on focused to congestion. inexpensivebecome so and popular that add they Mahfouda shared expects autonomous vehicles to tions operators with taxi Angeles inLos and Denver. VegasLas and Washington, D.C., and is innegotia- Brooklyn, company the has contracts also inBoston, regular fare. appropriatethe fare split, saving users money offthe goinguser same inthe direction. It calculates also 42ndthe Street bus app ifthe terminal finds another LaGuardia and Kennedy Penn airports, Station and wagon users are allowed to jump lines taxi atthe to apost-car world.” post-car is really important, we because are heading Mahfouda said. “Having access to people are who out and taxis mass acar: transit. two ingredients that allow New Yorkers to dowith - pany, Bandwagon, here city the in2009because has Heading toapost-carworld “You have to build feedback systems with your benefitsThe runningfleets of includebuilding Car2go, which rents two-seater Smart cars, has Car2go andBoth ReachNow say they’re here to BMW is among companies the that have made “New York is world the that most of players the I Some experts areSome experts skeptical that a market will His solution is to knit into them fabric the of Urban inthe Based Future inDowntown Lab Thanks to contracts with local authorities,Band - “New York is where other markets are headed,” David Mahfouda founded com his carpooling - |

DRIVERLESS CARS

M ay 1,2017 the vehicles.the about innovations that adoption” would further of “A lot of manufacturers the are going thinking to be he said, referring to partitions that separate riders. recent report on driverless cars. Boston Consulting Group, contributed who to the through says Choraria, design, Rahul aprincipal at of throw them up.” Friday through Sunday night. Anontrivial number And basis of the is model alot taxi the of drinkers izona State University.safety as a act barrier. “They King, aprofessor of transportation planning at Ar vous about alone being with strangers. scholar David King. And many people might ner be tomers prefer privacy, according to transportation REVMAX ANDVIA:STEPPINGONTHEGAS “You could have a two-part car or a four-part car,” But safety and issues privacy dealt with can be “What drivers do is deeply underestimated,” said our technology, andreducecosts.” we canhelpthemprovide betterservice “Many ofthemaresaying, ‘We thisbus, run andonlythreepeopleareusingit.’ With co-founder, Oren Shoval, hasaPh.D. insystemsbiology. a neuroscientistwhousedtodesignavionics systemsfor theIsraeliAirForce. His has launchedwhatit’sVia’s callinga“flexible”minibussystemutilizing technology. systeminParis.carpool InKent, England,company Arriva Europeantransportation LeCabintoaVia-like giantKeolis theon-demandcarservice hasturned portation withFrench AdealinJanuary trans- have beenthroughlicensingpartnerships. has alsomoved intoChicagoandWashington, D.C. Butitsmostrecentexpansions JONATHAN WEEKLEYWAS spot. People alsoliked the$5flatfare. walk toapickup totakeon algorithmsthatlocatedthebestroutesanddirectedcustomers ashort became knownfor withouttakingany beingabletopickuppassengers ofthemouttheirway, based quickly launched in2013, hourontheUpperEastSide.Theservice providing pooled ridesduringrush We thinkautonomousvehicleswillhave thesamekindofimpact.” tem,” hesaid, comparingittothelaunchofiPhone in2007.“Wholenew businessescameoutofit. locate ridesfasterandincreasetheirusage.“We believe autonomousvehiclesarethenextbigecosys- shuttlestowarderless areaswherethey’re to routeself-drivingcars neededandhelpfleetmanagers governments. Thosediscussionsinvariablycars. includethetransitiontodriverless ny toexecutivesatBMW. They’re alsotalkingtoride-hailoperators, andcity othercarmanufacturers than they ever didinEventFlow. Recentlythey spentseveral days inMunichtalkingabouttheircompa- to investors, andthepress.They potentialcustomers arealsofindingalotmoreinterest inRevMax “demand areas,” itcanhelpthemfindfares20%to30%fasterthanthe average driver. “We’re replicatingthatintelligence.” cabbie:“They knowhowtofindfares,” thatimitatesthemindofsmartest technology Weekley said. for afare.Taxis ande-hailvehiclesaretypicallyemptyhalfthetime. Thetwoareessentiallycreating $60,000 inseedmoney, acceleratorinGreenpoint, anditmoved intotheUrban-Xstartup Brooklyn. fleet dataandthe weather to forecast thebestplaces tofindfares.BMW for drivers gave RevMax Yankees inBrooklyntoanafternoon was takingplace—fromamidnight concert game. data heandco-founder ofevent BriggsFraser sort hadamassed thatshowed whereandwhenevery realized noneofthemwere interested inhis“Kayak for events” concept.Whatintriguedthemwas the “Transit areundertremendouspressure,” systemseverywhere Ramotsaid. “We’re seeinginterestfromallkindsofoperators,” CEODanielRamot, saidVia Now a 24-hour operation in Manhattan up to 125th Street and in parts ofBrooklynandQueens, Now a24-houroperationinManhattanupto125thStreetandparts Via thatareacrossbetween aneighborhoodshuttleandcab— onIsraelibusservices Via—modeled Weekley says thatRevMax’s demand-forecasting couldbeusedtoguideshareddriv- technology The co-founders have gearedupfor a“demoday” attheincubatorMay 4toshowofftheirproducts Through itsforecasts andfleetsimulations, RevMax isalreadyfindingthat toward byroutingdrivers Weekley andFraser want tomake itlesslikely thatemptycabsarecirclinganeighborhoodlooking over withRevMax, arrivals),The pairstarted historical whichutilizesevents data(includingairport pitchinghisstartup,EventFlow, toexecutivesatUberlastyearwhenhe - - and shuttle companies to work together. cles,” he said. “It’s just abig tiger to get by tail.” the it’s not interest in their the streetswith tovehi flood - growth—ortheir letting wild. run them regulating be will without them interfering with lives and reduce spacedevoted to parking. The key vehicles have potential the to cut congestion, save framework for driverless the believes cars. Schaller toneeds regulate something that doesn’t yet exist.” omous trickypart thisthat vehicles.of is the city “The Schaller,Bruce hopes has who for high shared auton- overrun bybe cars,” said transportation consultant The congestion question A more pressing issue may getting be regulators “The companies“The we’re talking about understand City transportation officials are working on a “Left to just market forces,the streets are going to WEEKLEY AND FRASER drivers topickupspots. drivers events datatodirecttaxi — M.F. Ramot use use ■ 4/28/2017 4:17:43 PM SPORTS | SELLING HISTORY

NOSTALGIA MARKET: Dealers such as Evans make their living selling pieces of the past to devoted fans.

GAME-USED AND ABUSED

Fraud allegations involving ports memorabilia dealer Josh Evans once mente but changed his mind a er the family of the got his hands on a warm-up jacket Tom Pittsburgh Pirates legend objected. Eli Manning are shining an Seaver wore during the Mets’ amazing “Evans would sell a ballplayer’s cancerous testicle 1969 season. Before selling it for $12,000, if he could,” said Je rey Lichtman, a Manhattan at- un attering spotlight on he checked the pockets and discovered a torney and a serious baseball-card collector. the billion-dollar sports Stoothpick that the Hall of Fame pitcher might have e authenticity of some local sports memora- stuck in his mouth. at went for $1,800. bilia was cast into question last month, when court memorabilia business Evans, 56, has been at this game since he was 8 documents emerged indicating that New York Giants years old. Today his Long Island–based auction quarterback Eli Manning allegedly duped fans who BY AARON ELSTEIN house, Lelands, generates $10 million in yearly thought they were buying his game-used helmets revenue. He has sold faithful fans such holy relics from Steiner Sports, a leading dealer. e Giants and as the baseball that Manning deny any skidded past Bill wrongdoing. Buckner during the “THERE IS CERTAINLY A e sports col- 1986 World Series lectibles business be- (Charlie Sheen paid RELIGIOUS ELEMENT TO gan booming in the $93,500), a package THIS BUSINESS. YOU HOLD early 1970s, when that included an 1848 fans started shell- daguerreotype of the AN ITEM IN YOUR HAND ing out cash to buy New York Knick- AND THERE’S NOTHING things Mickey Man- erbockers baseball tle signed or may club ($100,000) and ELSE LIKE IT” have touched. A 2013 a broom that swept study of the industry the parquet oor at estimated that fans the old Boston Garden ($3,000). He’s now preparing spent $2 billion on autographed merchandise and to sell Babe Ruth’s 1927 World Series ring, which is another $12 billion on unsigned gear or souvenirs. owned by Sheen. In the past decade, the biggest growth has come “ ere is certainly a religious element to this from sales of so-called game-used apparel. business,” said Evans. “You hold something in your hand and there’s nothing else like it.” Numbers game en again, what’s sacred to some is profane to “If you’re a star and want to be seen as fan-friendly, others. e world of sports memorabilia is lled then you almost have to give people a chance to buy BABE RUTH’S 1927 WORLD SERIES RING with brokers peddling merchandise of questionable your used cleats or uniforms,” said Bert Lehman, ed- is estimated to be provenance and even taste. Evans, one of the indus- itor of Sports Collectors Digest. worth $2 million. try’s most reputable dealers, once tried selling de- Players don’t make a lot of money selling used

BUCK ENNIS bris from the airplane crash that killed Roberto Cle- CONTINUED ON PAGE 22

MAY 1, 2017 | CRAIN’S NEW YORK BUSINESS | 21

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OUT OF POCKET: Was Manning that the FBI continues to interview people in the complicit in a industry, suggesting that more criminal cases loom. scam or just Evans estimates that as much as 25% of all sports caught up in one? memorabilia is counterfeit, but that may well under- state things. In 2005 the FBI said more than half of the most sought-a er athletes’ and celebrities’ auto- graphs were forged. Evans said fraud is becoming more common as memorabilia prices rise, adding that he used to call out vendors peddling fake goods but “is more controlled now” and generally keeps quiet, unless clients ask him to examine an item. No one wants to hear they’ve been duped. “I’ve saved people tons of money,” he said. “And they never say thank you.” Brian Brook, a lawyer representing the collector who sued Manning, the New York Giants, team co-owner John Mara and other employees for selling allegedly bogus memorabilia, said fraud o en begins when clubhouse workers sell helmets, jerseys and other items to supplement their meager salaries. “ ey’re overperked and underpaid,” Brook said. “I don’t believe there was any malice in what Eli did.” e best way to crack down on fakes, Brook said, equipment, at least when compared with their lavish Mastro declined to comment. would be for the NFL and other leagues to hire peo- salaries, and their contracts with dealers are con - A er pleading guilty earlier this year to using a ple to authenticate memorabilia on the eld, as Ma- dential. But the sales do represent easy cash for no fake Heisman Trophy as collateral for a loan, another jor League Baseball does. But Lehman of Sports Col- additional work, and dealers can command pre- leading memorabilia dealer, John Rogers, thanked lectors Digest warned that authentication certi cates mium prices for the most in-demand items. Steiner the feds for rescuing him from a cocaine addiction. have also been faked. Sports, which has contracts with many star athletes In 2012 former U.S. Attorney Preet Bharara secured “It’s hard to be sure game-used memorabilia is to exclusively sell their game-used merchandise, a guilty plea from the CEO of a rm called Vin- real unless you see the player take the jersey o ,” he o ers Derek Jeter’s dirt-stained Yankees home uni- tage Sports Authentics for cheating customers who said. form for $25,000. In contrast, a clean road jersey thought they were buying Alex Rodriguez’s game- To Evans, the most intriguing thing about the worn in a game last year by the team’s utility in eld- used uniforms. e defendant, Steven Jensen, had a Manning case is that it seems to have been important er, Ronald Torreyes, costs just $400. ( e Yankees history of drunken-driving convictions, according for the two-time Super Bowl champion quarterback sell o -the-rack home jerseys for $100.) to court documents. to hold on to his game-used equipment himself. Of course, it’s o en impossible for collectors to “It’s an unchecked, unregulated industry lled “I think he wanted to keep his own stu ,” Evans know if game-used memorabilia was really used in with the worst degenerates,” said Lichtman, who has said. “ e stu has a power to it unlike anything games, and the court case involving Manning’s gear represented memorabilia-fraud victims. He added e l s e .” ■ shows how easy it can be to mislead starry-eyed fans. e case, led in New Jersey by a big collector, produced emails that purportedly show Manning asking the team’s equipment director to provide two NOTHING LIKE THE REAL THING helmets to Steiner Sports that “can pass as game- used.” e revelation produced an angry denial from WANT A CUBS JERSEY used last month by reigning National the Giants, who said the emails were taken out of League MVP Kris Bryant? The item, worn exactly once by the context, and Manning insists he did nothing wrong. third baseman, is up for auction on the Major League Base- Last month Steiner Sports founder Brandon ball website, where a presumably die-hard fan bid $6,000 Steiner went on Facebook Live to defend the integrity for it last week. of his client and his rm. At least the buyer can be con dent the memento is “Eli Manning has been our partner for 14 years, legit. More than other professional sports leagues, Major certainly a guy that I’ve trusted all those years 100%,” League Baseball takes considerable steps to ensure its Steiner said, adding later: “When Eli Manning walks memorabilia is genuine. into your o ce and he says, ‘ ese are my game- The league employs about 150 authenticators to track used items,’ then, you know, I’d like to think that I items used during each regular season, post-season and can believe that.” spring training game. Typically drawn from law enforce- ment, these authenticators sit near the dugouts and af x Genuine fakes holograms with serial numbers to used balls, bats, helmets e Manning ap is a reminder that sports mem- and other gear. orabilia is a business rife with fraud, despite re- It’s not clear how much revenue the sales generate for the peated crackdowns starting in the late 1990s, when league, teams or players, but last week MLB’s of cial auction site listed the federal government arrested dozens of people, 3,250 items up for bid. Prices ranged from as little as $1 for Detroit Tigers left elder Justin Upton’s including one who had learned how to expertly road pants to $19,995 for a round of golf at Pebble Beach with Reggie Jackson. (If that’s too steep, forge Mantle’s signature. you can play the same course with Robin Yount or Steve Sax for half that much.) Prosecutors embarked on another sweep a MLB launched its authentication program in 2001, after federal authorities began cracking down on few years ago, and in 2015 Bill Mastro, a leading fraud in the sports memorabilia business. It all began when Hall of Famer Tony Gwynn discovered that Chicago dealer who sold $300 million worth of the San Diego Padres team store was selling autographed baseballs that he hadn’t signed. (His actual memora bilia over the years, admitted to arranging signature was much neater than the forgeries.) The revelation led to Operation Bullpen, an FBI probe fraudulent auctions and altering a Honus Wagner that resulted in 63 fraud convictions. (The feds even found a baseball with Mother Teresa’s forged baseball card. In a letter to the judge who sentenced signature.) the 64-year-old to 20 months in prison, Randy Mas- Baseball accounts for about 75% of the sports memorabilia market, but other leagues also take tro, a deputy mayor during the Giuliani administra- steps to ensure their collectibles aren’t phonies. The NBA uses a rm called MeiGray to authenticate tion and now a lawyer whose clients include New game-used uniforms by matching the apparel against game photos. Of cials at the NFL didn’t respond Jersey Gov. Chris Christie, called his brother “the to requests for comment on their authentication efforts. The NHL has an authentication program. most generous, giving person I have ever known” Most items sold by teams or big dealers like Steiner Sports don’t appreciate over time, said Josh and added that Bill had been sober for many years Evans, one of the country’s leading sports memorabilia dealers. That’s mainly because so many collect- a er alcoholism nearly killed him. Bill Mastro is ibles are available, meaning the market is oversaturated. Plus, teams often charge too much. “You can’t buy the good stuff at a gift shop,” Evans said. “That’s where we come in.” — A.E. scheduled to complete his sentence on May 11, ac-

GETTY IMAGES cording to the Federal Bureau of Prisons. Randy

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EMPIRE PORTFOLIO MANAGEMENT Notice of formation of Corbett & Kohina Notice of Formation of ADG MANAGE- Notice of Qualification of SANDIS HOLD- (EPM, LLC) Art. Of Org. Filed Sec. of PLLC. Arts. of Org. filed with Secy. of MENT DM LLC Arts. of Org. filed with INGS LLC Appl. for Auth. filed with State of NY 9/7/2016. Off. Loc.: New State of NY (SSNY) on 12/16/16. Of- Secy. of State of NY (SSNY) on Secy. of State of NY (SSNY) on York. Mahamadou Maiga designated as fice location: NY County. SSNY desig- 04/18/17. Office location: NY County. 04/20/17. Office location: NY County. agent upon whom process against it nated agent upon whom process may SSNY designated as agent of LLC upon LLC formed in Delaware (DE) on may be served. SSNY to mail copy of be served and shall mail copy of proc- whom process against it may be 04/12/17. SSNY designated as agent process to The LLC, 150-14 127th ess against PLLC to principal business served. 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Townsend Bldg., 401 Federal St. - agent of LLC upon whom process NY County. LLC formed in Delaware March 30, 2017. Office location: NY Ste. 4, Dover, DE 19901. Purpose: against it may be served. SSNY shall (DE) on 07/14/14. SSNY designated County. SSNY designated as agent of Any lawful activity. mail process to: The LLC, 230 W. as agent of LLC upon whom process LLC upon whom process may be 39th St., 10th Fl., NY, NY 10018. Pur- against it may be served. SSNY shall served. SSNY shall mail process to: pose: any lawful activity. Notice of formation of ZEDEK PART- mail process to c/o Corporation Serv- 420 E. 61st St., Apt 24F, NY, NY ice Co., 80 State St., Albany, NY NERS, LLC. Arts. of Org. filed with the 10065. Term: Perpetual. Purpose: NY Sect’y of State (SSNY) on 12207-2543. DE addr. of LLC: National any lawful activity. NOTICE OF FORMATION of Peak Electric Corporate Research, Ltd., 850 New Bur- 3/22/2017. Office located in NY Coun- LLC. Arts of Org filed with Secy. of ton Rd., Ste. 201, Dover, DE 19904. ty. SSNY has been designated as State of NY (SSNY) on 1/23/2017. Of- agent of the LLC upon whom process Cert. of Form. filed with Jeffrey W. Bul- Notice of Formation of MB BEVERAGES, fice location: NEW YORK County. SSNY lock, Townsend Bldg., 401 Federal St., against it may be served. SSNY shall designated agent upon whom process LLC Arts. of Org. filed with Secy. of mail process to: PO Box 909, NY NY #4, Dover, DE 19901. Purpose: Any State of NY (SSNY) on 03/29/17. Of- may be served and shall mail copy of lawful activity. 10108. Purpose: any lawful act. process against LLC to: 241 Beach fice location: NY County. Princ. office of LLC: 9 E. 8th St., NY, NY 10003. 119th Street, Rockaway, New York Notice of Qualification of FE TRADING 11694. Purpose: any lawful act. SSNY designated as agent of LLC upon Notice of Formation of JM Alcalay LLC. Arts. whom process against it may be GROUP, LLC Appl. for Auth. filed with of Org. filed with NY Dept. of State on served. SSNY shall mail process to Secy. of State of NY (SSNY) on Notice of Formation of EastGold Holdings 3/28/17. Office location: NY County. Sec. Nicholas Meyer, 9 E. 8th St., NY, NY 04/12/17. Office location: NY County. LLC. Arts. of Org. filed with NY Dept. of of State designated agent of LLC upon 10003, regd. agent upon whom and at LLC formed in Delaware (DE) on State on 12/27/16. Office location: NY whom process against it may be served and which process may be served. Purpose: 03/10/17. Princ. office of LLC: 13830 County. Sec. of State designated agent shall mail process to: CT Corporation Sys- To operate a retail store selling alcohol- Brainard Ave., Burnham, IL 60633. of LLC upon whom process against it tem, 111 8th Ave., NY, NY 10011, regd. ic beverages and engage in all other SSNY designated as agent of LLC upon may be served and shall mail process to: agent upon whom process may be served. lawful purposes related thereto. whom process against it may be 100 Park Ave, 16th Fl., Suite 1658, NY, Purpose: all lawful purposes. served. SSNY shall mail process to c/o NY 10017, principal business address. Corporation Service Co., 80 State St., Purpose: any lawful activity. Notice of Qualification of 500 WEST Albany, NY 12207-2543. DE addr. of NOTICE OF FORMATION of Melt Shop 30TH COM LLC Appl. for Auth. filed LLC: 2711 Centerville Rd., Ste. 400, Enterprises International, LLC. Arts of with Secy. of State of NY (SSNY) on Wilmington, DE 19808. Cert. of Form. Notice of Qualification of PERMANENS AL- Org filed w/Secy of State of NY (SSNY) 03/10/17. Office location: NY County. filed with Secy. of State, Townsend TERNATIVES FUND LP Appl. for Auth. on 3/2/17. Office location: NY Co. LLC formed in Delaware (DE) on Bldg., 401 Federal St. #4, Dover, DE filed with Secy. of State of NY (SSNY) on SSNY designated agent upon whom 03/07/17. Princ. office of LLC: 60 Co- 19901. Purpose: Any lawful activity. 03/20/17. Office location: NY County. process may be served against LLC to: lumbus Circle, NY, NY 10023. SSNY LP formed in Delaware (DE) on 80 State St., Albany, NY 12207. Princ designated as agent of LLC upon whom Notice of Qualification of 30/60/90 01/17/17. SSNY designated as agent of place of bus add: 56 W22 St., NY NY process against it may be served. STUDIOS, LLC Appl. for Auth. filed with LP upon whom process against it may be 10010. Purpose: any lawful act. SSNY shall mail process to c/o Corpo- Secy. of State of NY (SSNY) on served. SSNY shall mail process to the ration Service Co. (CSC), 80 State St., 11/29/16. Office location: NY County. Partnership, 545 Madison Ave., 12th Fl., Albany, NY 12207-2543. DE addr. of LLC formed in Delaware (DE) on NY, NY 10022. Name and addr. of each NOTICE OF FORMATION of Melt Shop LLC: c/o CSC, 2711 Centerville Rd., 10/25/16. Princ. office of LLC: 530 general partner are available from SSNY. Enterprises, LLC. Arts of Org filed Ste. 400, Wilmington, DE 19808. Cert. W. 45th St., Apt. 9N, NY, NY 10036. DE addr. of LP: c/o Corporation Service w/Secy of State of NY (SSNY) on of Form. filed with Secy. of State of DE, SSNY designated as agent of LLC Co., 2711 Centerville Rd., Ste. 400, Wil- 2/15/17. Office location: NY Co. John G. Townsend Bldg., Federal and upon whom process against it may be mington, DE 19808. Cert. of LP filed with SSNY designated agent upon whom Duke of York Sts., Dover, DE 19901. served. SSNY shall mail process to Secy. of State of DE, Dept. of State, Div. process may be served against LLC to: Purpose: Any lawful activity. the LLC at the princ. office of the LLC. of Corps., John Townsend Bldg., Dover, 80 State St., Albany, NY 12207. Princ DE addr. of LLC: c/o Corporation Serv- DE 19901. Purpose: Any lawful activity. place of bus add: 56 W22 St., NY NY 10010. Purpose: any lawful act. ice Co., 2711 Centerville Rd., Ste. Notice of Formation of PERFORMANCE 400, Wilmington, DE 19808. Cert. of Notice of Qualification of LaunchLabs MEDICAL PRACTICE, PLLC Arts. of Org. Form. filed with DE Secy. of State, NYC Operator, LLC Appl. for Auth. filed Notice of Qualification of STAHL EM- filed with Secy. of State of NY (SSNY) on John G. Townsend Bldg., 401 Federal with Secy. of State of NY (SSNY) on PLOYEES II LLC Appl. for Auth. filed 04/10/17. Office location: NY County. St., Ste. #4, Dover, DE 19901. Pur- 04/05/17. Office location: NY County. with Secy. of State of NY (SSNY) on Princ. office of PLLC: Marvell Scott, 141 pose: Any lawful activity. LLC formed in Delaware (DE) on 03/29/17. Office location: NY County. E. 56th St., Apt. 3L, NY, NY 10022. SSNY designated as agent of PLLC upon 03/31/17. Princ. office of LLC: 430 E. LLC formed in Delaware (DE) on Notice of Qualification of SOVEREIGN 29th St., NY, NY 10016. SSNY desig- 02/24/17. SSNY designated as agent whom process against it may be served. SSNY shall mail process to the PLLC at MEDICAL MANAGEMENT LIMITED LIA- nated as agent of LLC upon whom proc- of LLC upon whom process against it BILITY COMPANY Appl. for Auth. filed ess against it may be served. SSNY may be served. SSNY shall mail proc- the addr. of its princ. office. Purpose: Practice of medicine. with Secy. of State of NY (SSNY) on shall mail process to c/o Corporation ess to c/o Corporation Service Co. 04/12/17. Office location: NY County. Service Co. (CSC), 80 State St., Alba- (CSC), 80 State St., Albany, NY LLC formed in New Jersey (NJ) on ny, NY 12207-2543. DE addr. of LLC: 12207-2543. DE addr. of LLC: c/o Notice of Formation of TENN NYP, LLC 07/06/11. SSNY designated as agent c/o CSC, 2711 Centerville Rd., Ste. CSC, 2711 Centerville Rd., Ste. 400, of Org. filed with Secy. of State of NY of LLC upon whom process against it 400, Wilmington, DE 19808. Cert. of Wilmington, DE 19808. Cert. of Form. (SSNY) on 11/10/16. Office Location: may be served. SSNY shall mail proc- Form. filed with Secy. of State of State filed with Secy. of State of DE, John G. Nassau County. SSNY Designated as ess to c/o the LLC, 15-01 Broadway, of DE, 401 Federal St., Dover, DE Townsend Bldg., 401 Federal St., Ste. agent of LLC Upon whom process Stes. 1 and 3, Fair Lawn, NJ 07410. NJ 19901. Purpose: To provide laboratory 4, Dover, DE 19901. Purpose: Any against it may be served. SSNY shall addr. of LLC: 15-01 Broadway, Stes. 1 services to third parties. lawful activity. mail process to TENN NYP, LLC 1855 and 3, Fair Lawn, NJ 07410. Cert. of Imperial Ave, New Hyde Park, N.Y. Form. filed with State Treasurer, 33 W. 11040. Purpose: Any lawful activity. State St., Fifth Fl., Trenton, NJ 08646. Purpose: Any lawful activity.

Contact Joanne Barbieri Name of LLC: Pinnacle Medical Solu- Notice of Formation of G9 LLC. Arts. of tions LLC. Arts. of Org. filed with NY Org. filed with Secy. of State of NY at 212-210-0189 for Dept. of State: 2/23/17. Office loca- (SSNY) on 4/11/17. Office location: tion: NY County. Sec. of State designat- NY County. SSNY designated as agent ed agent of LLC upon whom process of LLC upon whom process against it classified advertising opportunities. against it may be served and shall mail may be served. SSNY shall mail proc- process to: 141 E. 56th St., Apt. 3L, ess to: 660 Madison Avenue, NY, NY NY, NY 10022. Purpose: any lawful act. 10065. Purpose: any lawful activity.

MAY 1, 2017 | CRAIN’S NEW YORK BUSINESS | 23

P023_P014_CN_20170501.indd 23 4/27/2017 3:42:56 PM EXECUTIVE MOVES Advertising Section New hires, promotions and board appointments. Place your listing at crainsnewyork.com/execmoves or contact [email protected] z TRANSPORTATION z z TRANSPORTATION z

LAGUARDIA GATEWAY PARTNERS LAGUARDIA GATEWAY PARTHERS As Chief Executive Officer, Stewart LaGuardia Gateway Partners named Ed Baklor joined LaGuardia Gateway As the Chief Financial Officer, Mike Steeves oversees the $4 billion rede- RoundsWes Out Porter Executive as Chief Operating Bench Officer Partners in November 2016 as the Sibilia is responsible for managing the velopment of LaGuardia Airport’s in May 2016. Porter is a recognized Chief Commercial Officer. In his role, financial operations and stakeholder Central Terminal B. Steeves also airport executive with over 20 years Baklor is responsible for leading the obligations around the $4 billion served as Bid Director, overseeing the of experience in the operations, man- team that is transforming the com- redevelopment of LaGuardia Airport’s LGP team through the successful bid agement and development of airports. mercial, marketing, communications Central Terminal B. Sibilia is a skilled Derek Thielmann was named Project Frank Scremin has served as Project As the Chief Financial Officer, Mike As Chief Executive Officer, Stewart process on the redevelopment project. He is responsible for managing the and guest experiences at LaGuardia airport executive with more than 20 Director of Design & Construction in Director, Operational Coordina- Sibilia is responsible for managing the Steeves oversees the $4 billion rede- Steeves previously served as the CFO operations of the $4 billion redevelop- Airport’s Central Terminal B. He has years of airport finance experience May, 2016. Thielmann manages the tion, Readiness and Transition for financial operations and stakeholder velopment of LaGuardia Airport’s of Vantage Airport Group and in two ment of LaGuardia Airport’s Central a special focus on improving guest and has been with LaGuardia Gateway design build and is the day-to-day con- LaGuardia Gateway Partners since obligations around the $4 billion Central Terminal B. Steeves also senior positions at two Vantage air- Terminal B. He oversees planning, experience and will work with retailers Partners since July, 2016. Before struction liaison between the opera- June 1, 2016. In this role, Scremin is redevelopment of LaGuardia Airport’s served as Bid Director, overseeing the ports – president and CEO of Nassau process improvements and day-to-day and vendors to ensure a customer-cen- joining LaGuardia Gateway Partners, tional and construction partners of the accountable for ensuring the successful Central Terminal B. Sibilia is a skilled LGP team through the successful bid Airport Development Company in The operations, LGP’s environmental and tric approach. Before joining LGP, Sibilia served as the CFO of JFK In- redevelopment of LaGuardia Airport’s transition to LaGuardia’s new Central airport executive with more than process on the redevelopment project. Bahamas, and vice sustainability responsibilities as well as Baklor served as Senior Vice President ternational Airport, Central Terminal B. He supervises the Terminal B facilities, and to manage 20 years of airport finance experi- Steeves previously served as the CFO president of finance its Information Technology and inno- of Guest Experience at WestJet and was LLC, the developer installation coordination of construc- the interface between day-to-day ence and has been with LaGuardia of Vantage Airport Group and in two and CFO at Hamilton vation portfolios. Prior to LaGuardia previously with The Walt Disney Com- and operator of Ter- tion materials and the completion of operations and the redevelopment Gateway Partners since July, 2016. senior positions at two Vantage air- International Airport Gateway Partners, Porter served as pany in various roles minal 4, JFK Airport, Central Terminal B without infring- program. Before LaGuardia Gateway Before joining LaGuardia Gateway ports – president and CEO of Nassau in Ontario, Canada. the CEO of Hermes including the launch Jamaica, New York. ing on the flow of passengers for the Partners, Scremin served on the US Partners, Sibilia served as the CFO of Airport Development Company in The Airports Ltd in of Adventures By existing terminal. Thielmann comes team for Vantage Airport Group JFK International Airport, LLC, the Bahamas, and vice president of finance Cyprus—a member Disney - the family to LaGuardia Gateway Partners from during the LaGuardia bid pursuit, developer and operator of Terminal 4, and CFO at Hamilton International of Vantage Airport tour business. Vantage Airport Group and from Van- as well as President and CEO of of JFK Airport, Jamaica, New York. Airport in Ontario, Canada. Group. couver Airport Authority as Director of TradePort International Corporation. DerekEngineering. Thielmann was named Project TradePort International Corporation is Big Promotion? Director of Design & Construction in Franka wholly-owned Scremin hassubsidiary served ofas VantageProject May, 2016. Thielmann manages the Director,and manages Operational Hamilton Coordina- International James Haviaris joined the LaGuar- design build and is the day-to-day con- Airport in Ontario, Canada. dia Gateway Partners team, as Chief tion, Readiness and Transition for LaGuardia Gateway Partners named struction liaison between the opera- Technical Officer, in February 2017. Share the news with the New York LaGuardia Gateway Partners since Wes Porter as Chief Operating Officer tional and construction partners of the June 1, 2016. In this role, Scremin is Haviaris is responsible for overseeing in May 2016. Porter is a recognized Bigbusiness Promotion? communuty. redevelopmentEd Baklor joined of LaGuardia LaGuardia Airport’s Gateway accountable for ensuring the successful the engineering operations and main- James Haviaris joined the LaGuardia airport executive with over 20 years CentralPartners Terminal in November B. He supervises 2016 as the the transition to LaGuardia’s new Central tenance of all airport facilities man- Gateway Partners team in February of experience in the operations, man- Announce new hires, promotions installationChief Commercial coordination Officer. of construc-In his role, Terminal B facilities, and to manage aged by LaGuardia Gateway Partners. 2017. Haviaris is responsible for agement and development of airports. Share the news with the New York tionBaklor materials is responsible and the completionfor leading theof the interface between day-to-day Jamie holds a Bachelor of Arts degree and board appointments with overseeing the engineering operations He is responsible for managing the business communuty. Centralteam that Terminal is transforming B without theinfring- com- operations and the redevelopment in Economics from Rutgers Univer- and maintenance of all airport facilities operations of the $4 billion redevelop- Announce new hires, promotions ingmercial, on the marketing,flow of passengers communications for the program. Before LaGuardia Gateway sity and has received designation as CRAIN’S EXECUTIVE MOVES managed by LaGuardia Gateway ment of LaGuardia Airport’s Central and board appointments with existingand guest terminal. experiences Thielmann at LaGuardia comes Partners, Scremin served on the US Real Property Administrator from Partners. Jamie holds a Bachelor Terminal B. He oversees planning, toAirport’s LaGuardia Central Gateway Terminal Partners B. Hefrom has team for Vantage Airport Group the Building Owners and Managers of Arts degree in Economics from process improvements and day-to- CRAIN’S EXECUTIVE MOVES Vantagea special Airport focus on improving guest during the LaGuardia bid pursuit, Institute in NYC. Previously Haviaris For more information, Rutgers University and has received day operations, LGP’s environmental Groupexperience and from and will work with retailers as well as President and CEO of of served as President, Northeast at ISS designation as Real Property Admin- and sustainability responsibilities as Vancouverand vendors Airport to ensure a customer-cen- TradePort International Corporation. Facility Services and pleaseFor contactmore information, Debora Stein at istrator from the Building Owners and well as its Information Technology Authoritytric approach. as Director Before joining LGP, TradePort International Corporation is as SVP of Operations Managers Institute in NYC. Previously and innovation portfolios. Prior to please contact Debora Stein at ofBaklor Engineering. served as Senior Vice President a wholly-owned sub- and Management [email protected] Haviaris served as President, Northeast LaGuardia Gateway Partners, Porter [email protected] of Guest Experience at WestJet and sidiary of Vantage and for The Rockefeller at ISS Facility Services and as SVP served as the CEO of Hermes Airports was previously with The Walt Disney manages Hamilton Group Development of Operations and Management for Ltd in Cyprus—a member of Vantage Company in various roles including the International Airport Corporation. www.crainsnewyork.com/execmoves The Rockefeller Group Development Airport Group. www.crainsnewyork.com/execmoves launch of Adventures By Disney - the in Ontario, Canada. family tour business. Corporation.

TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM

PUBLIC & LEGAL NOTICES

Notice of Qualification of NY SHOWER, Notice of Qualification of LSP SOLAR Notice of Qualification of RECOMBINE, Notice of Qualification of GLOBAL LLC Appl. for Auth. filed with Secy. of ENTERPRISE, LLC Appl. for Auth. filed LLC Appl. for Auth. filed with Secy. of FRUITS LLC Appl. for Auth. filed with State of NY (SSNY) on 03/16/17. Of- with Secy. of State of NY (SSNY) on State of NY (SSNY) on 03/09/17. Of- Secy. of State of NY (SSNY) on fice location: NY County. LLC formed in 04/05/17. Office location: NY County. fice location: NY County. LLC formed in 02/27/17. Office location: NY County. Delaware (DE) on 10/18/16. SSNY LLC formed in Delaware (DE) on Delaware (DE) on 01/06/11. Princ. of- LLC formed in Delaware (DE) on designated as agent of LLC upon whom 03/31/17. SSNY designated as agent fice of LLC: 75 Corporate Dr., Trumbull, 11/17/15. Princ. office of LLC: c/o process against it may be served. of LLC upon whom process against it CT 06611. SSNY designated as agent SuarezBaldomero P.A., 301 Rt. 17 SSNY shall mail process to c/o Corpo- may be served. SSNY shall mail proc- of LLC upon whom process against it North, Ste. 402, Rutherford, NJ ration Service Co., 80 State St., Alba- ess to c/o Corporation Service Co. may be served. SSNY shall mail proc- 07070. SSNY designated as agent of ny, NY 12207-2543. DE addr. of LLC: (CSC), 80 State St., Albany, NY 12207- ess to the LLC at the princ. office of LLC upon whom process against it Corporation Trust Co., 1209 Orange 2543. DE addr. of LLC: c/o CSC, 2711 the LLC. DE addr. of LLC: 2711 may be served. SSNY shall mail proc- St., Wilmington, DE 19801. Cert. of Centerville Rd., Ste. 400, Wilmington, Centerville Rd., Ste. 400, Wilmington, ess to the LLC at the addr. of its Form. filed with Secy. of State, Div. of DE 19808. Cert. of Form. filed with DE 19808. Cert. of Form. filed with DE princ. office. Cert. of Form. filed with Corps., John G. Townsend Bldg., 401 Secy. of State of the State of DE, Div. Secy. of State, Div. of Corps., 401 Fed- Rocio Medina, Paseo de Cristina 1, E1 Federal St. - Ste. 4, Dover, DE 19901. of Corps., P.O. Box 898, Dover, DE eral St., Dover, DE 19901. Purpose: Po. 3C, Sevilla, Spain 41001. Pur- Purpose: Any lawful activity. 19903. Purpose: Any lawful activity. Any lawful activity. pose: Importing and wholesale.

2424 || CRAIN’S| CRAIN’S NEW NEW YORK YORK BUSINESS BUSINESS || MAYMAY| MAY 1,1, 1, 20172017 2017

P023_P014_CN_20170501.indd 24 4/27/2017 3:42:57 PM P024_CN_20170501.indd 24 4/28/20174/27/2017 3:04:025:59:00 PM GOTHAM GIGS

THE GOLDEN KEY: Lamb finds that music can tap memories in people with dementia.

BY LANCE PIERCE

When perfect pitch is beside the point A former opera singer finds meaning conductinga chorus of dementia patients and their caregivers

n a basement room at St. Peter’s Church in Midtown, “Dale and his partner are amazing,” said choir member Dale Lamb jabbed two fingers in the air in time with Barbara Ramsey, an actress and singer whose husband, Jack DALE LAMB the music as he made eye contact with his singers. Naughton, also a performer, was diagnosed with dementia. Some were in wheelchairs; one dozed peacefully. “This is just a fabulous gift. I don’t know how I could do AGE 72 IPeople laughed as much as they sang. without it.” BORN Rochelle, Ill. “I can do anything better than you,” Lamb sang, as he led Lamb’s singing career was all about achieving perfec- RESIDES Midtown West the women through the showstopper made famous by Ethel tion: the right pitch, the precise rhythm. “I sang at Carnegie EDUCATION Studied music at Merman in the 1946 Broadway musical Annie Get Your Gun. Hall,” said Lamb, who uses nonsense syllables like “dooby- Wartburg College in Waverly, Iowa The men responded gamely: “No, you can’t!” doo” to help the singers learn new music by ear. CHORUS REPERTOIRE 275 Lamb, a music educator and singer, has led “Now it’s “Now it’s just about having fun.” songs from the American Songbook choral groups for much of his professional life, just about It’s also about providing a supportive com- INSPIRING WORDS His favorite but none are quite like The Unforgettables, a having fun munity for caregivers like Ramsey, who often feel song the chorus sings is “You Raise chorus for people with dementia and their ” despair and isolation. Me Up” by Josh Groban, a tune caregivers started by Mary Mittelman, direc- The benefits extend to the patients, as well. that exemplifies the relationship between caregiver and patient. tor of NYU Langone Medical Center’s Alzheimer’s Disease Learning new music increases their self-esteem and can “You raise me up, so I can stand on and Related Dementias Family Support Program. lessen agitation, said Mittelman, who recently launched mountains; You raise me up to walk When Lamb first accepted a three-week paying gig in a second chorus, at Riverside Church, with state funding. on stormy seas; I am strong when I 2011 to help lead the newly formed choir, he was dubious, to “What we learned is that people in the early and mid stages am on your shoulders; You raise me up to more than I can be.” say the least. “I thought, What did I just say yes to?” of dementia can learn new songs,” she said. After the three weeks were up, his co-director, Tania Lamb has seen firsthand how powerful an elixir mu- MOTIVATION “You can see the sparks are still there; you can see Papayannopoulou, a music therapist, said she really wanted sic can be. One day a 94-year-old dementia patient sud the love is still there.” Lamb, who is retired but still gives private voice lessons, to denly broke down and cried as he belted out “Get Me to STAYING ACTIVE Lamb meditates stay on. “I said, ‘I don’t think so,’ ” Lamb recalled. the Church on Time,” from My Fair Lady. A widower, he two times a day, studies Spanish But he kept coming anyway and grew attached to the told Lamb he still missed his wife. “The music brings those and dances flamenco twice a week.

BUCK ENNIS group. Now he’s treasured at the two-hour weekly rehearsals. kinds of memories back,” Lamb said. — ROBIN D. SCHATZ

May 1, 2017 | CRAIN’S NEW YORK BUSINESS | 25

P025_CN_20170501.indd 25 4/28/2017 2:48:56 PM SNAPS

Leading by example The Sponsors for Educational Opportunity held a gala April 6 to showcase the success of the group’s career and educational programs for low-income and minority students. An alumnus of the corporate diversity program, Cesar Conde, chairman of NBCUniversal International Group and NBCUniversal Telemundo Enterprises, was among those honored at the dinner, which raised $4.9 million and was attended by about a thousand people.

Henry Kravis, SEO board chairman and founding partner of KKR & Co., with master of ceremonies Gayle King, a CBS This Morning host and editor-at-large at O, the Oprah Magazine, at the event at the American Museum of Natural History.

William Goodloe, SEO’s president and CEO, and Michael Corbat, CEO of Citigroup, flank honorees Robert F. Smith, founder, chairman and chief executive of Vista Equity Partners; Joe Plumeri, vice chairman of SEO and First Data Corp.; and Cesar Conde. They were recognized for providing opportunities to underrepresented groups.

Dancing for A refuge from violence the ages Safe Horizon, a non- The New Jewish Home, a profit that helps crime provider of services for the and abuse victims, elderly, held its fourth annual held a gala April 5. Eight Over Eight gala at the Among the attendees Mandarin Oriental hotel. were journalist Dance legend Carmen de Tamron Hall and Lavallade—pictured with country music star her son Leo Holder and Jana Kramer, an Anna Glass (seated), event honoree. executive director of the Dance Theatre of Harlem— was among those honored.

Honoree Morris W. Offit, chairman of Offit Capital, and his wife, Nancy. The April 5 event raised $1.1 million.

Steve Parrish, founder of an eponymous consulting company and a Safe Horizon board member; Alan Cumming, a Tony Award–winning actor and the gala’s master of ceremonies; and Fabio Cotza, senior director of the organization’s child advocacy center, at the event at Pier 60, which raised $1.4 million.

SUNNY NORTON, DENEKA PENISTON, ANN BILLINGSLEY, MICHAEL DIVITO SUNNY NORTON, DENEKA PENISTON, ANN BILLINGSLEY, SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].

26 | CRAIN’S NEW YORK BUSINESS | May 1, 2017

P026_CN_20170501.indd 26 4/28/2017 2:49:53 PM PHOTO FINISH

Cleaner pup-per very once in a while, a good dog needs permission to be bad. On a Thursday late last month, vacuum cleaner company Bissell carpeted a section of Washington Square Park. The pop-up dog run featured potted plants, white upholstered chairs, a pool and more ways for visiting canines Eto make a mess and give the company an opportunity to show off its new ProHeat 2X Revolution, a vacuum cleaner designed for pet owners. There were some celebrity dog sightings. Tinkerbelle (pictured), a papillon-Maltese mix who has modeled for Ralph Lauren and Vivienne Hu, attracted a crowd of wannabe canine stars hoping to emulate her Instagram success. Washington Square Park regulars, including a rowdy rescue dog named Stevie, got the chance to track dirt on the furniture and rugs. “He doesn’t have carpets at home,” said owner Sarah Willis, a freelance marketing consultant. “This was a treat for him.” — PETER D’AMATO BUCK ENNIS

May 1, 2017 | CRAIN’S NEW YORK BUSINESS | 27

P027_CN_20170501.indd 27 4/28/2017 6:04:14 PM “With Star Citizen, we do 15 to 25 builds every day. We’re talking tremendous amounts of data. Fortunately, our ﬁ ber network is absolutely stellar.”

Chris Roberts, CEO Cloud Imperium Games Client since 2012

PC gaming is serious business. To compete, you need a robust network and IT infrastructure. We help clients like Cloud Imperium Games get that edge—with a winning mix of data, voice, video and cloud solutions, all delivered over a nationwide ﬁ ber network. Game on.

Visit enterprise.spectrum.com

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