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TOP STORIES Google’s In limbo: the ad anxious wait soldiers for an H-1B visa advance PAGE 3 ® PAGE 2 About.com seeks brand identity to lure more eyeballs VOL. XXIII, NO. 15 WWW.NEWYORKBUSINESS.COM APRIL 9-15, 2007 PRICE: $3.00 PAGE 3 Russell Simmons tells staffers to NY cops shape up for Oprah NEW YORK, NEW YORK, P. 6 biased, Legislature eases path for HIP Crain’s conversion; money scramble to begin poll finds THE INSIDER, P. 14 Minorities treated Empire Zones yield big benefits differently; overall, amid controversy; city supports NYPD nonprofit funds LOCAL RETREAT: “Many of these BY ANNE MICHAUD classroom projects people are addicted to New York,” says SMALL BUSINESS, P. 19 Pamela Malkani of a striking three in five New Millennium Partners’ Yorkers think that New York City Phillips Club. police treat people differently BUSINESS LIVES based on race, according to a Crain’s New York Business poll.The THE NIGHT SHIFT roger hagadone perception of unequal treatment is New Yorkers who work held most widely in the city’s mi- the graveyard learn to PAGE 31 nority communities, though it is cope. shared by 43% of whites. Manhattan, urban resort At the same time, three-quar- ters of New Yorkers said they have share companies in the world are the time-share model, called frac- a favorable opinion of the New Two major hoteliers now swooping down on the Big tional ownership, has begun to York Police Department. to build time-share Apple. take off in the city. Overall, the poll’s findings sug- In midtown, two hotel groups, The appetite for such properties gest that the city’s historically low properties; others Hilton Grand Vacations Club and has been increasing for the past five crime rates are translating into seeking NYC sites Hyatt Hotels & Resorts,are devel- years, as tourism—and hotel occu- generally positive views of the po- oping the first Manhattan towers pancy rates—hit records. More- lice—even if residents don’t always devoted entirely to time-shares. over, the increasing popularity of support the NYPD’s methods. AT DEADLINE BY LISA FICKENSCHER Others, including Marriott Inter- time shares in such cities as New Survey questions about police ag- national, are scouring New York Orleans, San Diego and San Fran- gression and respectful treatment TISHMAN SPEYER IS BETTING time-share vacation properties for real estate. cisco helped dispel the notion that of young people also turned up sig- THAT THE NUMBER of market- are usually associated with beach These developments come af- time-share owners are interested nificant divisions between white rate apartments at Stuyvesant resorts in Hawaii, Florida and the ter a handful of independent prop- only in beach or skiing locales. and minority respondents. Town and Peter Cooper Caribbean—not with the sky- erties, including the Manhattan Wyndham Vacation Owner- Eli Silverman,a professor at the Village will more than scraper canyons of New York. Club,proved successful.Addition- ship has been looking for a location John Jay College of Criminal Jus- double by 2011. In its debt But some of the biggest time- ally, a more expensive version of See CITY on Page 9 See POLL on Page 8 prospectuses, the company, which acquired the 80-acre development for $5.4 billion earlier this year with The Blackstone Group, assumes Shareholders demand pay approval that 57% of the development, or 6,400 units, will be at market rate within five years. Currently, only 27% of the Morgan Stanley next to face ‘say on pay’ units are market-rate. resolution; many others are targeted GRISTEDES SUPERMARKET lion.That was in addition to his al- OWNER JOHN CATSIMATIDIS BY AARON ELSTEIN ready-disclosed $26 million sign- plans to overhaul his ing bonus and $13 million com- company’s operations, seeking a year ago,Morgan Stanley share- pensation for six months of work. to acquire supermarkets in the holders got some surprising news: Mr.Mack’s cash-out,which the New York region while paring In 2005,new Chief Executive John company says was executed before his holdings in the city. He Mack had exercised stock op- he took the CEO post, left a pow- See AT DEADLINE on Page 2 tions—granted in a previous stint erful group of activist investors with the company—worth $30 mil- irate. Still seething, they hope to use a resolution at Morgan Stanley as the first step in their campaign 15

5 to win greater influence over exec- utive pay. At its annual meeting Tuesday, Morgan Stanley will become this

ELECTRONIC EDITION year’s first company targeted by bloomberg news shareholders seeking the right to IN THEIR SIGHTS: CEO John Mack’s $30 million stock option cash-out set off shareholders, who NEWSPAPER See SHAREHOLDERS on Page 8 are presenting a resolution that would let them approve top officers’ compensation. 71486 01068 0 CNYB 04-09-07 A 2 4/6/2007 6:50 PM Page 1

DROP AND GIVE ME $3 BILLION: The Business Solutions Group, headed AT DEADLINE by Anthony DiMarco, generates about 30% Continued from Page 1 rules that it says are less of Google’s ad revenues. says that he is talking to several stringent than U.S. regulations, area supermarket companies, and is targeting small companies although he declined to identify in 12 U.S. markets.The them. At the same time, Mr. exchange, which has $1.8 Catsimatidis has talked to a trillion in global market number of potential buyers, capitalization, lists more than including CVS Pharmacy, for half of the world’s oil and gas some of his stores. In February, companies and half of all he sold eight property leases to mining equity capital raised in Duane Reade. Gristedes 2006. operates 39 stores in the city and three in the surrounding THE ORGANIZERS OF THE suburbs, but it has been hurt by PROPOSED SAVOY BANK have declining profits because of new applied to open their first competitors and soaring costs. branch at Broadway and West 52nd Street, where they intend THE COSTS OF SAINT VINCENT to target the owners of CATHOLIC MEDICAL CENTERS’ immigrant-owned retail and bankruptcy are now certain to food establishments in the exceed $60 million (Crain’s, Theater District (Crain’s, Aug. Nov. 27). As of February, legal 7).The bank is planning to open and other fees related to the a second branch in Washington bankruptcy totaled $58.8 Heights within a year. million; that amount TWO NONPROFITS ARE TAKING includes OVER THE 21ST FLOOR of 90 buck ennis $14.7 Broad St. in the Financial million District. Educational group for law Urban Assembly Inc. will move firm Weil into 6,200 square feet, and Poets Gotshal & Manges and $9.5 & Writers Inc. claimed 7,500 Fired up on front lines million for turnaround square feet. Both 10-year deals consultants Alvarez & Marsal. were completed quickly in order The hospital is hoping to to qualify for the downtown emerge from Chapter 11 in incentives that were set to expire Hungry Google sales unit targets key advertisers June. but were extended last week. CB Richard Ellis represented the THE TORONTO STOCK EXCHANGE tenants in the deals, and BY AMANDA FUNG IS KICKING OFF a campaign this Cushman & Wakefield Inc. week to lure New York negotiated on behalf of property more than 500 people work in the sprawling 300,000-square-foot Chelsea offices of Google companies to list their stock on owner Swig Equities. Asking Inc. Account executive Anthony Malangone, dressed in signature casual and connected to his its exchange.The exchange is rent was about $35 per square phone with a shiny wireless headset, blends right in. touting Canadian securities foot. I On a typical afternoon, the New Jersey native, who joined Google three years ago, is CORRECTIONS prowling for new advertising clients. He calls a tech firm in Michigan but gets no answer. So The Garment Industry Development Corp. is pressing the city to protect an estimated 1 million he dials his next prospect, an executive at a business software provider in Georgia.This time, he square feet of space used for stand-alone factories, cutting rooms and sample rooms in the See GOOGLE on Page 9 zoned portion of the garment district. The use of the space was misstated in an April 2 article. Hudson Yards Catering is the preferred caterer of the Museum of Modern Art. A March 26 article incorrectly stated the organizations’ relationship.

THIS WEEK IN CRAIN’S Charter schools on course

THE WEEKS AHEAD ------9 ramp up 12 to 15 new charter executive director of the nonprofit 33 2 scheduled to open schools a year “while the chancellor Harlem RBI, a large after-school REAL ESTATE DEALS------10 in September, others is in position and it is a politically fa- program. He is hoping to open a vorable environment,” says a source charter school in East Harlem. ALAIR TOWNSEND ------13 on way as cap is lifted in the DOE. Pent-up demand in his community In addition to the eight under was so great that it took just two days THE INSIDER------14 BY SAMANTHA MARSHALL consideration by the department, to collect 300 signatures from par- two are close to final approval by ents eligible to send their children to WEEK IN REVIEW ------16 at least eightnew charter schools State University of New York’s the proposed charter school. NEIGHBORHOOD are slated to open in the city by fall Charter School Institute, the other “There’s a great hunger here for 2008, now that the state’s 100- authorizing body for charter more and better alternatives,” says JOURNAL------17 school limit has been lifted by the schools. Those schools, Carl C. Mr. Berlin. REPORT: Legislature. Icahn Far Rockaway East Legislation passed as part of the Officials at the New York Charter School in Queens budget allows an additional 100 SMALL BUSINESS------19 City Department of Educa- and Collegiate Charter charter schools in the state, 50 of tion say two new charter 50NUMBER School in Brooklyn, will them in New York City. The state CLASSIFIEDS ------28 of new charter schools are scheduled to schools most likely open in 2008. also introduced some provisions to open in September—Bed- allowed in SUNY will not accept any the law that charter school advocates BUSINESS LIVES------31 ford-Stuyvesant Collegiate New York City new charter school submis- complain are restrictive, including a LIVING LARGE------32 Charter School in Brooklyn sions until it has reviewed its requirement that schools enrolling CORPORATE LADDER------33 and Carl C. Icahn Charter School application process and made sure more than 250 students in their first Bronx North—because they were it’s in line with the new rules. two years be unionized. But overall, EXECUTIVE MOVES------35 34 approved before the cap was reached It generally takes 18 to 36 charter school advocates see the new BOB LAPE ------35 in January 2006. Two other schools months between the planning charter school law as a victory. have received preliminary approval stages of a new charter school and its “We could do more, but this is vol. xxiii, no. 15, april 9, 2007—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals by the DOE, and their applications opening. Applications submitted certainly an improvement,” says Jeff postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address have been sent to the New York State after the cap was reached have to re- Maclin,vice president of communi- changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a Board of Regents for approval. Six submit their plans, but the DOE cations for the New York City Cen- copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents more are under review by Schools says it will streamline the applica- ter for Charter School Excellence. copyright 2007 by Crain Communications Inc. All rights reserved. Chancellor Joel Klein. tion process for those applicants. Ultimately, the city hopes to One of them is Richard Berlin, COMMENTS? [email protected]

2 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 3 4/6/2007 6:46 PM Page 1 Saying what it’s About

subsidiary’s advertising revenue AOL. Its closest rival is Wikipedia, WebMD (9.5 million) and Content-loaded site reached approximately $80 million the popular user-generated online MSN Health (6.6 million), focuses on popular last year, up almost 50% from 2005. reference site founded in 2001. ABOUT.COM among health sites,accord- At the Times Co.’s annual share- Wikipedia has 42.3 million ing to Nielsen//NetRat- topics and its brand; holder meeting on April 24,investors unique monthly visitors and is a HISTORY ings. are expected to sing About’s praises. household name. But analysts say To beef up the health $1M ad campaign A Morgan Stanley analyst recently that About has a key selling point 1996 channel’s content, in the valued About at $1.2 billion, three over Wikipedia: It is writ- Founded past six months About ac- BY AMANDA FUNG times the $410 million the Times Co. ten by professionals pre- as MiningCo.com quired weight-loss site paid when it bought the site from screened by the site’s Calorie-Count.com and eleven years ago, two entrepre- Primedia Inc. in March 2005. editors.The site’s 600 1998 UCompareHealthCare.com, neurs founded About.com around a outside writers, Renamed About.com which rates health care big idea.The online reference guide More independence known as guides, providers. It expects to buy would offer advice on every topic primedia tried to integrate About earn an average of 1999 more health-related sites. Raised $85 million in under the sun, from how to treat a into other Web sites it owned. The $15,000 a year— an initial public About, which counts common cold to how to grow an or- Times Co. has taken a different ap- their pay is based offering pharmaceutical giants As- ganic garden. proach, allowing About to grow as a on the number of traZeneca and Pfizer as ad- Today, the New York Times Co. stand-alone operation. “I’m pleased page views their 2000 vertisers, is hoping to cash Web site is a rich repository of con- to see About reported as a separate articles attract. Acquired by Primedia in on increased online ad tent contributed by 600 experts who business,” says Scott Kurnit, an “It’s a competi- Inc. for $724 million spending among health post 3,000 new articles a day. But it About co-founder who left the tive business, but care providers. The indus- hasn’t cracked the top 10 of most- company in 2001. “It is on the right there are few 2005 try is projected to spend visited Web sites and lacks a strong path.” providers that offer Sold by Primedia $975 million on the Web brand identity. So its executives are Last year,About drew an average the depth of ex- to New York Times Co. this year, up 19% from embarking on a new strategy—to of 32.2 million unique visitors a pertise that we do,” for $410 million 2005,according to research make a name for the site in popular month, up 31% over 2005. Most of says Mr. Meyer. firm eMarketer. areas such as health care, while pro- the traffic came from search results “We have the scale To try to monetize oth- buck ennis moting About to advertisers and generated by Google, Yahoo and to deliver.” SCOTT MEYER says that few providers can match About.com’s expertise. er portions of the site, consumers. other sites. Search engines have Mr. Meyer About has added popular “The core principles of the com- brought visitors to About and al- knows he has to drill features such as blogs and a pany remain the same,” says Scott lowed it to sell advertising, but they that message into more potential medical trade publications, includ- library of 500 instructional videos.It Meyer,About’s chief executive.“But have not promoted brand recogni- users of the site. In what will be one ing Advertising Age, Brandweek and has also created Web sites in part- we have added a lot more features to tion for the site’s wide-ranging of its biggest advertising campaigns, Pharmaceutical Executive. Later this nership with sponsors—including a create better branding for the site.” content. About is expected to spend more year, the ads will promote the over- Las Vegas tourism and sweepstakes The timing is right for About— About covers 600 different top- than $1 million on online and print all About brand, but initially the site sponsored by MGM Grand, originally called MiningCo.com— ics organized in 22 channels on par- ads this year. campaign will focus on the site’s Mandalay Bay and other resorts. to make bold moves.Two years after enting and family, shopping, sports health channel, says Mr. Meyer. “We can get better at explaining it was acquired, the site is a bright and other areas. It competes against Ad strategy The health channel—About’s to advertisers that About is a good spot at the Times Co., which has numerous niche content sites like print ads, which will launch this most popular channel—attracts partner for them,” says Mr. Meyer. been beleaguered by troubles in the eBay and ESPN.com, as well as quarter, will appear in The New York about 5 million unique visitors per newspaper industry. The online larger Web portals like Yahoo and Times as well as in advertising and month and ranks third, behind COMMENTS? [email protected]

BY THE NUMBERS The great visa chase GET SMART: COLLEGE TUITION RISING it’s the time of year when parents with kids in college have to start thinking about reaching for their wallet—then maybe a bottle of scotch. Applicants in limbo many on April 2. Its mail system several applications. Undergraduate tuition at many top private schools in was so inundated that the agency After learning that his form the city will go up in the fall. Though it’s probably as H-1B requests shut down the filing period after would be in a lottery with poten- little solace, the expected increases are in line with one day and declared that applica- tially hundreds of thousands of those in other parts of the country. A College exceed open spots; tions arriving after April 3 would be others, Mr. Barron shifted into cri- Board survey released last fall found an average firms scrambling rejected. sis mode to find viable visa alterna- 6.3% hike at four-year schools. Normally, CIS grants visas on a tives. Because his company, Man- first-come, first-served basis until hattan startup SystemsForge, has a BY HILARY POTKEWITZ the cap of 65,000 is met,which typ- U.K. subsidiary, he may go home TUITION TUITION ically takes several weeks. But that this summer and apply for a differ- AND FEES AND FEES PERCENT last week’s overwhelming influx policy can’t apply this year. Instead, ent type of visa as an employee of 2006-07 2007-08 CHANGE of applications for H-1B visas, that unit. which let educated foreign profes- ‘The system The uncertainty wreaks havoc Barnard College $33,078 $35,190 +6.4% sionals work in this country for up on managers’ staff planning. 1 to six years, is sending aftershocks “I’m nervous,” says Josh Columbia University $35,166 $37,410 +6.3% through the business community. is a joke, and Goldgar, marketing director for Pratt Institute +6.3% The reality is sinking in that each it needs to be Worldwide Business Research. He $29,230 $31,080 request has a slim chance of getting just filed an H-1B visa application New York University 1 +5.7% approved. addressed’ for his latest hire, a recent graduate $33,370 $35,283 “I’m assuming I’m not getting from India. 2 it,”says Maurice Barron,a 26-year- The firm,which produces inter- The New School University $30,800 $32,470 +5.4% old software developer from Ire- national business conferences, has Fordham University 3 1 +5.4% land whose educational visa expires offices in 14 countries, and Mr. $30,869 $32,530 in August. His lawyer told him to Goldfarb is looking for candidates Pace University +0.2% FedEx his H-1B application by the agency’s computer system will who can work globally. $30,086 $30,158 April 2—the first day they were be- randomly select from the pool of “She’s highly qualified, had Polytechnic University $29,790 n/a n/a ing accepted—so that he wouldn’t applications. great internships in the U.S. and miss out like he did last year. A final tally of that pool will not did well at a SUNY school for four St. John’s University $24,625n/a n/a But being on time wasn’t be available until the end of this years—why shouldn’t we hire her?” enough. H-1B visas are capped at week, according to a spokes- Mr.Goldgar asks.Foreign students n/a Not announced. 1-Estimate. 2-Parsons The New School for Design. 3-Average of Rose Hill and Lincoln Center 65,000 annually, and the U.S. Citi- woman, but CIS received more are permitted to work for just one campuses. zenship and Immigration Services than 130,000 packages on April 2 year on their educational visa. To Sources: Schools; Commission on Independent Colleges and Universities

received nearly three times that alone, many of which contained See THE GREAT on Page 8 istockphoto

April 9, 2007 | Crain’s New York Business | 3 CNYB 04-09-07 A 4 4/6/2007 6:24 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL Resistance to change +1.7% a Dow Jones downer The Bloomberg/ Crain’s New rock-bottom “sell.” Lehman Brothers, tions to WSJ.com rose 6% last year, to York Index Share price up only meanwhile,reckons the shares are actual- 811,000,while circulation of the dead-tree rose 1.7% 9% over past decade; ly overvalued by a whopping 25%. version was flat at 1.7 million.But even on- over the last Mr. Feinseth be- line, there were dis- five trading investors should bail lieves the company turbing developments:

days to end ➡ should slash its annual a 6% decline in average the week on dividend payout of $83 monthly visitors to Thursday at BY AARON ELSTEIN 390. The million and publish WSJ.com and a 14% S&P 500 the newspaper exclu- drop at MarketWatch, Index rose n the dreary world of newspa- sively online. Change a site Dow Jones ac- 1.5%, per stocks, the saddest story of all comes hard at Dow quired two years ago closing at is that of Dow Jones & Co. Jones, however, where for $530 million. 1444. Over the past decade, its stock the Bancroft family For 2007, analysts price has gained a paltry 9%,worse has controlled the vot- surveyed by Reuters RISERS Ieven than The New York Times Co.’s ing shares for decades. Fundamentals expect 5-DAY 1-MONTH 3-MONTH CLOSING 29% rise, and miles behind The Wash- Last year, Dow per-share operating % CHANGE % CHANGE % CHANGE PRICE ington Post Co.’s respectable 150% Jones reported net in- earnings to jump by Altria +8.2% +14.7% +8.2% $70.75 climb. If ever there were a stock that come of $387 million, 40%, to $1.48, on rev- screamed “Sell me,” Dow Jones is it. but the bulk of that enue of $2.1 billion. Starwood +8.0% +10.9% +15.1% $70.08 True, the old regime will finally bow came from a $230 mil- That forecast hinges Sotheby’s +7.3% +29.0% +52.7% $47.20 out next week when former Chief Exec- lion gain on the sale of largely on hefty gains Market cap $2.9 billion Marvel Entertainment +7.2% +11.3% +10.0% $29.42 utive Peter Kann formally steps down as six small newspapers. that now look increas- ImClone +6.7% +53.3% +47.5% $42.94 chairman, but the new regime isn’t look- On an operating ba- Trailing 12 months P/E 7.4 ingly unlikely. Ad rev- ing much better.Although The Wall Street sis, the firm earned Percent held by insiders 22% enues at the Journal Journal remains best-in-class among $105 million. Reve- actually plunged 10% SINKERS newspapers, its corporate parent is stuck nues,meanwhile,came in February. 5-DAY 1-MONTH 3-MONTH CLOSING in its all-too-familiar pattern of stagnant in at $1.8 billion—al- Bulls have long ar- % CHANGE % CHANGE % CHANGE PRICE revenues and never-ending restructur- most exactly the same as in 1992, when gued that for all Dow Jones’ problems, its Monster Worldwide -13.3% -12.8% -12.7% $40.85 ings under new Chief Executive Richard the company’s operating income was Journal franchise was so attractive that Finlay Enterprises -8.3% -26.7% -26.9% $5.87 Zannino. nearly triple last year’s level. someone would pay dearly to buy the “This company needs to do something Since taking charge, Mr. Zannino has company. But prices for newspapers are G-III Apparel -5.1% -9.0% -9.1% $18.03 radical, and I’m not sure they have the put more emphasis on the company’s Web eroding, as evidenced by last week’s deal Sirius Satellite Radio -4.6% -7.7% -18.2% $3.11 CEO who can do that,” says Ivan Fein- businesses, most notably by buying full for Tribune Co. 4Kids Entertainment -4.5% -4.1% -1.6% $18.18 seth, research director at securities firm control of Factiva,the news database Dow Matrix USA, who rates Dow Jones a Jones co-owned with Reuters. Subscrip- COMMENTS? [email protected]

STOCKS TO WATCH Polo Ralph Lauren demonstrates there’s no success like online success Two weeks ago, Polo Ralph Lauren announced it will shell out $175 million for the half of fast-growing Polo.com it doesn’t own. Recently, the company also unveiled a joint venture with Richemont, the Swiss luxury-goods giant, to sell watches and jewelry. Those goodies will grace retailers’ shelves next year—including those of Polo’s first three Moscow outposts. No wonder the shares are up 52% in 12 months. Shareholders of Bed Bath & Beyond should be cleaning up. This week, their company is expected to post a 17% jump in quarterly earnings, continuing a trend that stretches back years. Lately, though, the market has all but ignored America’s largest home-furnishings retailer. True, in the last five days its shares gained 4%, but even now they are still 12% off their record high of July 2005. Fears about the impact of the slumping housing market get the blame. Most investors are shrugging off worries about the subprime loan mess and a cooling economy. Sadly, those aren’t the people who’ve been dumping the shares of McGraw-Hill. So far this year, the shares are off by 9%. The problem is the company’s big debt-rating arm, Standard & Poor’s, which like Moody’s—also a big loser recently—will be hit hard if a slowing economy causes companies to cut back on issuing new debt. charts: lindström bekka

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GPS solutions claim based on number of available GPS solutions that carriers offer and independent data. Sprint National Network reaches over 262 million people. GPS services require GPS and Java-enabled phone. Environment may limit GPS location information. Phone Offer: Offer ends 6/17/07. Available to corporate- liable accounts (activations using a business name and tax ID) only. Activation/upgrade fee (up to $36 per line). Early termination fee ($200 per line). May require credit approval and deposit. Instant Savings: No cash back. Requires activation at the time of purchase. Higher retail prices apply for non-qualifi ed purchases. Other Terms: Offer not available in all markets or for all phones/networks. Pricing, offer terms, fees and features may vary for existing customers. See store or sprint.com for details. ©2007 Sprint Nextel. All rights reserved. Sprint, the “Going Forward” logo and other trademarks are trademarks of Sprint Nextel. CNYB 04-09-07 A 6 4/6/2007 5:07 PM Page 1

SAVE TIME BUY TICKETS ONLINE! www.autoshowNY.com Check out our website for more news and latest attractions! NEW YORK,NEW YORK 07 INTERNATIONAL edited by Valerie Block

AUTO Hip-hop office cleans up for Oprah SHOW mployees at hip-hop mogul Russell Simmons’ Rush NEW YORK Communications were ordered to give their offices an early spring April 6-15 Espruce-up this week to get the place camera-ready for The Oprah Winfrey Show. Mr. Simmons (right) snagged a precious spot on the program Mon-Sat: 11am-10:30pm Sun: 10am-7pm to promote his new book, Do You! 12 Laws to Access the Power in You to Jacob Javits Convention Center Achieve Happiness and Success, which will be released by Penguin’s Gotham 11& 12 Aves between 34-39 Sts Books later this month. Giveaways, Contests, A nod from the diva of daytime talk has been known to send Join our Members e! Celebrity Appearances Expressy, VIP Club! Lounges, books skyrocketing up best-seller lists. Early Entr & more! Special Discounts & Mor 2007 Go to www.autoshowNY.com to find out more! Staff members were alerted to last Tuesday’s taping and told to recorded information 800.282.3336 switch off their pagers and dress appropriately, insiders say. For security purposes, NO backpacks allowed on Show floor. Random security and bag checks. Special rail admission packages at LIRR & Metro-North ticket windows. FREE Shuttle Bus to Show from Manhattan Parking Plaza on 42nd St. (between 9th & 10th Aves.) Presumably, the cleanup was to give Ms. Winfrey’s producers a An activity of the Greater New York Automobile Dealers Association sparkling impression of a day in the working life of Mr. Simmons. PHOTO GALLERY Employees were also warned that a walk-through inspection LISTINGS OF LOCAL EVENTS would come on Monday to make sure the premises were tidy. 40 UNDER 40 PROFILES AND PHOTOS TOP LISTS FOR BUSINESS LEADS Oprah’s office would not say when Mr. Simmons’ segment will NY BUSINESS DIRECTORY appear. Rush did not return calls for comment. LATE BREAKING gettyimages should get their shopping carts LOCAL NEWS Change for better Hotelier tries ready.The gourmet grocer is RESTAURANT REVIEWS at Fresh 102.7 bargain beds returning in May to the very block LINKS TO MEMBERSHIP ORGANIZATIONS where it held sway for 39 years. INTERACTIVE ONLINE POLLS cbs radio’s Joel Hollander made a hotels are regularly near full “We did tremendous business SEARCHABLE ARCHIVES lot of mistakes as CEO. But it capacity, and room rates are when we were there previously,” COMPREHENSIVE INDUSTRY PAGES looks like one of his last acts— through the roof these days, but says Marc Mandelberg, general THERE’S SOMETHING FOR flipping 102.7 to Fresh FM in Hank Freid is pouring millions into manager of the company. EVERYONE AT January—is turning out to be one a youth hostel that offers beds in The market will take over of his best.The station has shared rooms for $30 a night. 18,000 square feet at 2840 Though he says developers like Broadway at West 110th Street, Bruce Ratner want to buy his where it will have a kitchen big FRESHENING UP Broadway Hotel and Hostel on enough to accommodate 12 chefs. Nov./Dec./Jan. Dec./Jan./Feb. West 101st Street, Mr. Freid isn’t House-made prepared foods Rating Rank Rating Rank selling. account for about 20% of the He transformed the one-time grocer’s business in its seven area WLTW 6.9 1 6.4 1 Columbia University dormitory stores—including ones in Chelsea Long established WWFS 2.1 18 2.5 14 into a hostel last year and has and in the West 70s—says Mr. For listeners 12 and up. Source: Arbitron nearly completed a multimillion- Mandelberg. commitment dollar renovation. He’s adding The company is also mulling plasma-screen televisions and plans to start a Web delivery Weiser LLP suffered through multiple format computers to lounge areas, business similar to the Certified Public Accountants changes since it abandoned rock furnishing a library and restoring FreshDirect model. “We’re music at the turn of the century. a fireplace.This is on top of moving in that direction,” Mr. Now, it’s showing signs of new life. already renovated rooms that Mandelberg says. In preliminary Arbitron data for boast European linens and down the winter ratings book, which will comforters. Private rooms go for to the be released on April 30, WWFS just $99 to $120 per night. How to even New York City jumped to 14th among listeners Mr. Freid, who owns four 135 West 50th Street New York salary score New York, NY 10020 business community age 12 and over, from 21st in the hotels in the city, including the Tel 212.812.7000 fall. Fresh leapt to 10th place from here’s a novel way to make a Fax 212.375.6888 For nearly a century,Weiser has provided 17th among ad-friendly 25- to Wall Street CEO’s outlandish pay Long Island accounting, tax, and consulting services, such 54-year-olds.The final numbers seem reasonable: Compare it with 3000 Marcus Avenue as state and local tax planning, internal audit should be even better. an underachieving baseball Lake Success, NY 11042 outsourcing, and business restructuring, “We are tremendously player’s salary. Tel 516.488.1200 to private clients and business enterprises, encouraged by the early results,” That’s what one Goldman Fax 516.488.1238 including closely-held and emerging entities, general manager Maire Mason said Sachs shareholder did at the elite Westchester in a variety of industries including: via e-mail. investment bank’s annual meeting 660 White Plains Road Fresh is going after Lite-FM last month. Mutual fund manager Suite 430 • Real estate listeners, but the market leader Tom Borelli noted that Chief Tarrytown, NY 10591 • Manufacturing and distribution shrugs off the challenge. Marrakech Hotel NYC, insists Executive Lloyd Blankfein earned an Tel 914.333.0555 • Auto dealerships Fax 914.333.0556 “From the people who gave us that running a hostel in New York extraordinary $54 million last • Media and communication Blink, several versions of Mix, and can be profitable. “We want to year. But he added that the sum New Jersey • Banking now Fresh, I don’t see any reason make this a model,” he says. was only double what New York 399 Thornall Street • Food and dairy Alex Rodriguez Edison, NJ 08837 for great concern,” sniffs program Yankee gets. • Health care director Jim Ryan, who notes that “Of course, you had a better Tel 732.549.2800 • Financial services Fax 732.549.2898 WLTW will celebrate its 25th New grocery year” than A-Rod, Mr. Borelli • Professional services anniversary next year. “Are they quipped. Goldman’s stock price www.weiserLLP.com • Not-for-Profit in the bag doing better now than in rose 57% last year. December? Yes,” he adds. upper west siders still pining For more information, contact Douglas Phillips at 212.375.6701. “They’ve also spent $2.5 million for their Westside Market— Contributors: Aaron Elstein, Lisa on advertising to get that result.” which lost its lease in 2004— Fickenscher, Samantha Marshall

6 | Crain’s New York Business | April 9, 2007 Project8 2/26/07 1:07 PM Page 1

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MIXED VERDICT Poll: Cops treat races differently Is your opinion of the New York City Continued from Page 1 black man from Queens killed on Asians. Only 46% of whites agreed. police very favorable, somewhat tice, says that the NYPD’s famous his wedding day last November. Forty-five percent of those sur- favorable, somewhat unfavorable ComStat system, which highlights Paul Browne, a deputy commis- veyed—63% of blacks, 53% of His- or very unfavorable? criminal hot spots, can lead to more sioner of the NYPD, says the Bell panics, 49% of Asians and 29% of 28% Very favorable aggressive policing in minority shooting and resulting news reports whites—said police are too aggres- neighborhoods. have hardened opinions about police sive. Looked at another way, 57% of 46% Somewhat favorable “The cops are so pressured on the and race.“It’s not surprising,given the all residents surveyed said that police 12% Somewhat unfavorable numbers,” he says. “If commanders amount of coverage devoted to a con- treat young people in their neigh- see crime is up in an area, they ask, troversial shooting,” he says. borhood with respect. The number 9% Very unfavorable

‘What are you doing about it? How was highest among Asians, at 69%, 5% Don’t know/No response/ bloomberg news many stops were made, and how History lesson followed by 66% of whites, 53% of Refused to answer NYPD Commissioner Ray Kelly many arrests?’ ” poll respondent Bernice Shell, an Hispanics and 42% of blacks. It’s common for people of differ- African-American resident of Bor- “The results really underline that Do you think the New York City ent races to hold different views ough Park in Brooklyn, says that her white and minority New Yorkers police do or do not treat people about law enforcement, Mr. Silver- misgivings about the NYPD are have experienced policing different- of all races in the same way? man says, but the Crain’s poll found based not just on the Bell incident but ly,”says Craig Charney,president of Do the racial disparity to be particular- also on earlier police incidents involv- the research firm. “At the very least, 29% ly stark. Eighty percent of blacks ing unarmed residents,including Ab- the police need to do a better job of 60% Do not surveyed said there is unequal treat- ner Louima and Amadou Diallo. community relations.” 11% Don’t know/No response/ ment, as did 70% of Hispanics and “Maybe their approach needs to New Yorkers may feel freer to Refused to answer 63% of Asians. be worked on,” Ms. Shell says of the criticize the NYPD these days, he The poll of 602 city residents was police. “I’m not a racist, but why is adds, because they feel safer. Half of Based on 602 responses. Source: Charney Research conducted by Charney Research be- the victim never a white person?” respondents said they are unafraid An activist protesting Sean Bell’s shooting

tween March 30 and April 3. It has A majority of New Yorkers, 62%, on the street, up from 39% in 2002. ap images a margin of error of 4%. said that they believe the police stop Poll respondent Ernest Buehler, a The findings come as three and frisk minorities too often.The re- white Staten Island resident who em- “On balance, considering it’s a is frightened in the moment, believ- NYPD officers face charges of sponse diverged by race, with 77% of igrated from Germany in 1940 at age difficult city, I think the police do a ing the other person has a gun.” manslaughter and reckless endan- blacks agreeing with the statement, 7, says that Americans don’t always decent job,”he says.“I am somewhat germent in the case of Sean Bell, a along with 72% of Hispanics and appreciate how good their lives are. sympathetic to the police officer who COMMENTS? [email protected]

ple that bring something into the applications last week and is furious fits, the cost is nearly $2,400. mix that the typical person might that they will be subject to a lottery. “That’s a big chunk of change The great visa chase not have,” Mr. Bonnefil says. His firm does work for Microsoft, just to get a number in the lottery,” “Sometimes, they happen to be for- and Mr. Paparelli is president of the Mr. Paparelli says. Continued from Page 3 largest financial firms and universi- eign nationals.” Academy of Business Immigration Comprehensive immigration stay employed here, they must ob- ties. Mr. Bonnefil says he filed al- Lawyers. legislation, including recommenda- tain an H-1B visa or qualify for one most 100 H-1B applications last Applications are expensive “The system is a joke, and it tions for a proposed increase in the of the exempt visa categories. week and that 80% of them were for microsoft corp., for example, has needs to be addressed,” he says. H-1B cap, is slated to reach Con- “You can’t be asked to run a busi- new graduates of U.S. universities disclosed that 30% of its U.S. em- Applying is also expensive. For a gress later this summer. ness that way,” says Pierre Georges who were offered jobs through cor- ployees are on some kind of work company with more than 26 em- Bonnefil, a shareholder in law firm porate recruiting programs. visa. ployees, each H-1B application can COMMENTS? [email protected] Epstein Becker & Green, which “Companies are looking for the Angelo Paparelli of Paparelli & cost about $3,000 when all the filing Reporter Amanda Fung contributed represents some of New York’s best and the brightest,for those peo- Partners filed hundreds of H-1B fees are added up. For smaller out- to this article.

managing director at compensation come soared 51% last year, to $7.4 consultancy Steven Hall & Part- billion, and the company’s share Shareholders fight to OK pay ners. “After all, those things cost price jumped 38%. more than executive pay.” Even so, the American Federa- Continued from Page 1 panies to allow shareholder votes on ing a student’s exam,” Mr. Wilcox For its part, Morgan Stanley ar- tion of State County and Municipal vote on executive compensation. pay. says. gues that implementing say on pay Employees, sponsor of the Morgan More than 40 firms face identical Some companies are trying to Enhanced oversight seems to could create the perception that its Stanley resolution, wants the right actions in the coming weeks,includ- get out in front of the issue. have slowed pay escalation in Eu- “compensation opportunities” lag to advisory votes to help prevent ing such blue-chip New York firms “They’re looking at how to adopt an rope,where investors have had advi- those of its competitors. A spokes- past abuses from reoccurring— as Merrill Lynch & Co., Time advisory vote on pay before their sory votes since 2003. A study of woman says the board would con- which include paying $32 million to Warner Inc. and Verizon Commu- shareholders or Congress tell them Britain’s 100 largest companies by sider adopting the proposal if a ma- a co-president who held his job for nications Inc. to,” says Timothy Smith, a senior New Bridge Street Consulting of jority of shareholders vote in favor. less than four months. These “say on pay” resolutions vice president at Walden Asset London found that executive “We want pay for performance would force companies to disclose Management. salaries rose a maximum of 6% in Prevent abuse reoccurrence instead of pay for pulse,” says Rich detailed justifications for executive Currently, shareholders object- 2006, down from 14% in 2001, ac- of course, if a stock is performing Ferlauto,the union’s director of pen- pay. The idea is gaining broad sup- ing to compensation can withhold cording to a letter from several large well, shareholders may not be con- sion investment policy.“Mack has a port among institutional investors, votes from the company’s direc- European institutional investors to cerned enough to pass a resolution. chance to make things better, and including some traditionally op- tors—a move only indirectly aimed the Securities and Exchange Com- At Morgan Stanley, better results we want to make sure that happens.” posed to measures to limit compen- at the executive. An advisory vote mission earlier this year. have soothed the sting of extrava- sation. In the United States, the princi- gantly paid executives a bit. Net in- COMMENTS? [email protected] “It’s a way to hold directors ac- pal backers of advisory voting are countable,to make sure they explain ‘We think of it pension funds like the New York why they’re paying what they’re pay- City Employees’ Retirement Sys- LEADERSHIP PROGRAM ing,” says John Wilcox, head of cor- as a teacher tem and CalPERS, the giant pen- porate governance at TIAA-CREF, sion-fund manager for California’s which manages more than $400 bil- grading a public workers. But a number of RISING EXECUTIVES lion in assets.The uprising is already mutual-fund managers are also THE CORO NEW YORK LEADERSHIP CENTER is accepting applications from making an impact. student’s exam’ coming around. business executives for the Leadership New York program. It seeks mid- For example,a spokesman says T. career professionals who are committed to strengthening the city. Getting out in front Rowe Price expects a majority of its Participants will learn firsthand about urban issues, including municipal after bristol-myers squibb co., portfolio managers to cast ballots in finance, public education and economic development. They will meet with Pfizer Inc., Prudential Financial favor of advisory voting. opinion leaders and decision-makers, and explore cross-sector solutions to Inc. and Schering-Plough Corp. would provide a more powerful Most companies are fighting New York City’s challenges. were presented with say-on-pay res- protest. If investors decide that the back vigorously. The program will run from September 2007 through May 2008. It involves olutions, they signaled that they board had not adequately explained “If you give investors oversight of one full weekday a month, two weekend retreats and group planning would probably let shareholders the rationale for top officers’ com- pay, does that mean we should have meetings. For more information, visit www.coronewyork.org, send an e-mail to hold advisory votes next year. In pensation, they could vote against votes on whether to ratify union [email protected] or call (212) 248-2935, ext. 304. The application deadline Washington, the House Financial the report. Directors would then contracts, build new factories or is June 1. Services Committee approved a bill have to make adjustments. how much to spend on research and last month that would require com- “We think of it as a teacher grad- development?” says Steven Hall,

8 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 9 4/6/2007 2:41 PM Page 1

MUSTERING Mr. DiMarco says CLIENTS Ave. There isn’t too that sales reps’ wages much leisure for work- Google’s fired-up sales team include commission Google ad revenues, in day breaks, however: billions of dollars. packages, but he de- An internal tracking Continued from Page 2 sales in traditional media,such as ra- Google in 2002. In his first assign- clines to elaborate. system monitors the connects. They chat for about 15 dio and newspapers, search adver- ment, he led a group of salespeople Compensation infor- number and duration minutes and agree to have a follow- tising is the company’s lifeblood, catering to large companies.He rec- mation for Google is $3.22004 of sales calls. The up conversation. notes Timothy Boyd, an analyst at ognized that Google could do a bet- closely held, in part be- group’s salespeople are Mr. Malangone is feeling confi- research firm Caris & Co. ter job of working with emerging cause the company able to get out of the dent about this lead, as well as the “It is the low-hanging fruit and companies and pitched the idea of doesn’t use outside re- office to meet some of dozens of others he pursues every day. the faster-growing part of its busi- forming the BSG to the corporate cruiters. According to $6.12005 their clients, but most “There are plenty of opportunities,” ness,” he says. bosses in Mountain View, Calif. industry benchmarks, of their pitches are he says. “Advertisers do not dry up.” New York was a natural home for inside sales jobs in New made by phone. Welcome to the world of Google’s Yahoo plays catch-up the new division: Google had just York usually carry base $10.6 “We try to keep it inside sales division.The 100-person the category is so fast-growing,in established a companywide ad sales salaries of between 2006 fun, with sales con- group, which is based in New York, fact,that selling search advertising is headquarters in Manhattan under $40,000 and $60,000, tests,” says Tom Fo- targets more than 8,000 midsize a key part of the sales strategy of ri- Tim Armstrong, now Google’s vice with commissions that chetta, a BSG manag- businesses that are at the heart of val Yahoo. Google has 59% of the president of ad sales and Mr. Di- can match the base. $11.22007* er who recently held a Google’s roster of advertising clients. market for paid search advertising, Marco’s boss. contest in which mem- *Analysts’ estimate. Analysts who follow the search giant according to research firm eMar- “The middle market is impor- Up the ladder bers of his team estimate that the group generated keter. Yahoo—still a distant second, tant to Google as we continue to bsg staffers who ex- chipped in to pay the about $3 billion last year, or almost with 15%—in February rolled out a grow and expand our advertiser, cel feed the higher ranks of Google’s top salesperson’s rent for one month. 30% of the company’s $10.6 billion in new search marketing system called publisher and enterprise customer sales operation. According to the It’s a high-energy environment. advertising revenues. Project Panama, aimed at closing bases,” says Mr. Armstrong. company’s job board, Mr. DiMarco Sales rep Kristin Heinz, who start- “We are charged with acquiring the gap. The inside salespeople—who had 17 job openings to fill in his unit ed with Google six months ago after customers and developing them The rest of the search field is range in age from the mid-20s to last week. working for AOL subsidiary Adver- into larger clients,” says Anthony made up of a host of smaller players the mid-30s and have three to five “Having to replenish the group as tising.com, puts in 10-hour days. DiMarco, director of the unit, and Microsoft Corp., which has years of business experience—come staffers take other jobs in the organ- She spends a third of her time cold- known as the Business Solutions vowed to make inroads into search to Google with varied backgrounds. ization is a business challenge,” he calling prospects and the rest fol- Group.The typical client: a compa- advertising. Some are recent M.B.A.’s; others says.“But creating a good career path lowing up with existing clients. ny with average annual revenues of Google remains the front-run- are refugees from print or TV sales, within Google motivates people.” “I feel pressure,”she says.“But it’s $60 million. ner in part because of people like or even individuals who have So do free massages and all-you- a motivating pressure.” While Google is attempting to Mr. DiMarco, a veteran ad sales ex- switched from careers in health care can-eat gourmet meals at the Man- broaden its reach by brokering ad ecutive who went to work for or finance. hattan Googleplex at 111 Eighth COMMENTS? [email protected]

lead of pioneers The Manhattan “Many of these people are ad- Club, at 200 W. 56th St., and The dicted to New York,” Ms. Malkani City as time-share destination Phillips Club, at 155 W. 66th St. says.“They have lived in the city and The Phillips Club, owned and either retired or moved away.” Continued from Page 1 ism slump in 2002, two floors of the great for us,” Mr. Dagot says.“We’ll managed by developer Millennium Last year, the St. Regis Hotel in New York for several years. Hilton New York were converted have a head start when the others Partners—whose holdings include converted two floors into a fraction- “There is more desire by people who into time-share units; they are now come in.” the real estate assets of Ritz-Carl- al property comprising 22 studio, already have time shares to stay in an completely sold out. ton’s New York hotels—sells frac- one- and two-bedroom apartments urban environment,” says Stephen “It started to do really well two Bidders in the game tional ownership apartments. This that can be used for up to 28 days a Holmes, chief executive of Wynd- years ago,” says Antoine Dagot, chief and come they will. Hyatt is more upscale version of time-shar- year. Shares in the units sell for be- ham Worldwide Corp. executive of Hilton Grand Vacations. building a midtown unit at 44th ing allows longer stays than the typ- tween $300,000 and $750,000, and Of course, the high cost of real That success pushed the hospital- Street and Fifth Avenue, according ical one or two weeks a year. The maintenance fees average about estate has been a deterrent. “Urban ity giant to buy a lot where a diner and to industry sources. The company properties are marketed as an alter- $10,000 a year. markets can be cost-prohibitive,” art gallery once stood. Hilton is now declines to comment. native to a second home. Despite the steep price tags, says a spokesman for Marriott Vaca- developing the city’s first newly Many others are aggressively bid- The Phillips Club, opened in some see such apartments as a bar- tion Club International, which has built, hotel-owned time-share proj- ding for sites, according to Mark December 2000, is nearly sold out gain. “Residential prices have in- been trying to get into Manhattan ect. Slated for completion in 2009, it Gordon,managing director of real es- and looking to open another frac- creased so dramatically over the past for more than a decade. will target middle-income buyers tate investment bank Sonnenblick- tional location in Manhattan. five years that the economics for a Hilton searched six years for its and offer one-week increments at Goldman Co., who adds that time- About a quarter of the club’s 567 fractional product are more com- site on West 57th Street. It decided $40,000 to $100,000. Over 70% of share firms were among the final members live in the tristate area, pelling,” Mr. Gordon says. to dive in following an earlier test of the 161 apartments will be studios. bidders on the last four hotels he sold. says Pamela Malkani, a principal in the marketplace. During the tour- “Being the first in the market is The companies are following the Millennium Partners. COMMENTS? [email protected]

THE WEEKS AHEAD

THIS WEEK’S EVENTS course on planning for growth in a program on Web trends and their APRIL 16-22 APRIL 23-29 APRIL 10 design business. 5:00 p.m. to 9:00 impact on retail. 12:00 p.m. to 2:00 p.m., APRIL 17 APRIL 24 Camba Small Business Services holds p.m., LaGuardia Community Williams Club, 24 E. 39th St. Fee: $50 Bedford Stuyvesant Restoration Corp. Nationwide Equities Corp. holds workshop on Internet marketing for College, 45-50 30th St., seventh floor, members, $75 nonmembers. holds workshop on creating and networking reception. 6:00 p.m. to 8:00 small business. 6:00 p.m. to 8:30 p.m., Long Island City, Queens. Fee: $60. (201) 692-8087 or retailmarketingsoci understanding financial statements. 6:00 p.m., 795 Eighth Ave., second floor. 884 Flatbush Ave., second floor, (718) 663-8403 or @retailmarketingsociety.org. p.m. to 8:30 p.m., 1368 Fulton St., Free. (917) 975-5985 or Brooklyn. Free. (718) 282-2500 [email protected]. APRIL 12 Brooklyn. Free. (718) 636-6924. [email protected]. ext. 242, or [email protected]. APRIL 10 Thursday Morning Lead Exchange APRIL 17 APRIL 24 APRIL 10 Empowered Media holds seminar on holds networking reception. 7:30 a.m. to Networking for Professionals holds Small Business Administration at the Small Business Administration holds marketing for small business owners. 8:30 a.m., MHP Commercial Brokerage reception. 6:30 p.m. to 8:30 pm., Women’s Venture Fund holds session on workshop on getting government 6:00 p.m. to 8:00 p.m., New Yorker Services, 1140 Sixth Ave. Free. Techspace, 41 E. 11th St., 11th floor. selling like a pro. 6:00 p.m. to 9:00 p.m., contracts. 8:30 a.m. to 12:00 p.m., 26 Hotel, 481 Eighth Ave. Fee: $50. (917) 359-3098 or Fee: $25 members and $35 nonmembers 545 Eighth Ave., 17th floor. Fee: $75. Federal Plaza, sixth-floor conference (516) 409-0849 or [email protected]. in advance; $40 for all at door. (212) 663-0499 or [email protected]. APRIL 12 center, room A. Free. (212) 264-4322 or [email protected]. (718) 625-1369 or —adrianne pasquarelli [email protected]. APRIL 11 Arts & Business Council of New York [email protected]. APRIL 10 Young Mortgage Bankers Association and American Express hold workshop APRIL 18 South Asian Women’s Leadership holds lunch program on rental on matching products and services to a New York Public Library’s Science, TO LIST YOUR EVENT Forum holds program on taking risks to apartments. 12:00 p.m. to 2:00 p.m., marketing message. 9:00 a.m. to 12:30 Industry and Business Library holds reach full potential. 6:00 p.m. to 8:30 Union League Club, 38 E. 37th St. Fee: p.m., 200 Vesey St., mezzanine floor. workshop on changing an eBay hobby Crain’s lists business meetings online and includes p.m., Roosevelt Hotel, 45 E. 45th St., $50 members, $75 nonmembers in Fee: $35 Arts & Business Council into a business. 5:30 p.m. to 7:00 p.m., them in the print edition on a space-available basis. East End suite. Fee: $15 in advance, $25 advance; $75 for all at door. members, $55 nonmembers. 188 Madison Ave., room 018. Free. Events in New York City with admission fees of less at door. Space is limited. (201) 440-8144. (212) 279-5910, ext. 29. (212) 592-7000. than $300 are considered for the print publication. (704) 277-8893 or [email protected]. APRIL 12 APRIL 13 APRIL 19 Listings can be submitted only through the Crain’s APRIL 10 Business Network International, chapter Baruch College’s Steven L. Newman Crain’s New York Business holds Web site. To submit a calendar listing, go to NY Designs, a program of CUNY, holds 15, holds networking breakfast. 7:00 Real Estate Institute holds seminar on networking breakfast and program with www.newyorkbusiness.com and click on “Events.” a.m. to 8:30 a.m., George’s Restaurant, real estate prices and financial markets. Gov. Eliot Spitzer. 8:00 a.m. to 9:30 Sponsors have a choice of several free or paid list- 89 Greenwich St. Fee: $18. 11:00 a.m. to 1:00 p.m., 151 E. 25th a.m., New York Hilton, 1335 Sixth Ave. ing options. All business events will be posted More meetings online at online within two business days. www.newyorkbusiness.com (201) 289-2208 or [email protected]. St., room 750. Fee: $45. Fee: $60 if registered by April 12; $70 Click on “Events” APRIL 12 (646) 660-5950 or thereafter. (212) 210-0739 or Crain’s can neither confirm receipt of listings nor say Retail Marketing Society holds lunch [email protected]. www.newyorkbusiness.com. if or when event listings will appear in the print edition.

April 9, 2007 | Crain’s New York Business | 9 CNYB 04-09-07 A 10 4/5/2007 5:31 PM Page 1

REAL ESTATE DEALS Epsilon’s an alpha firm at Flatiron site

by the end of the year. The new lease for 2,200 square feet of exhibi- Growing marketer building “provides Epsilon with the tion, office and inventory space on gets private entrance, ideal office space for its growing re- the ground floor of an 11-story con- quirements, as well as giving it ex- dominium overlooking the High space to expand; ceptional visibility for brand recog- Line project, in which a former rail nition,” says Dirk Hrobsky,a broker line is being converted into a park. cleaning up on Third at CB Richard Ellis,who represent- Alf Naman of Alf Naman Real ed Epsilon. The Kaufman Organi- Estate Advisors represented both marketing and data zation represented the landlord. Mr. Wolkowitz and building owner services company is —julie satow High Line Partners in the transac- moving to a Flatiron tion.The asking rent was about $80 district building where per square foot. it will have signage Bringing NYC clean, Mr. Wolkowitz is relocating his Arights and its own entrance. Dallas- green, 24/7 service gallery, which features moving im- based Epsilon,a division of Alliance age and photographic works, from Data Systems Corp., has signed an an eco-friendly dry-cleaning 601 W. 26th St., in order to be clos- 11-year lease for 50,000 square feet chain that will give customers 24/7 er to other top contemporary ex- at 11 W. 19th St., between Fifth and access to its services has signed its hibitors, including Barbara Glad- Sixth avenues. first lease in New York City. stone, Mary Boone and Andrea The building has a 20th Street Partners Kevin Kneafsey and Phu Rosen. THE NEXT LEVEL: MarieBelle was willing to lobby that will be used only by Ep- Lam have signed a 12-year deal for “The opportunity to showcase take a second-floor spot at 762 Madison. silon;its elevators will open onto the 3,300 square feet at 757 Third Ave.,at our program on one of the premier company’s offices, which will take East 47th Street, where they plan to gallery blocks is enormously up the entire 10th and 11th floors. open an Oxxo franchise in July. The WINDOW OF OPPORTUNITY: 757 Third’s wide thrilling,” Mr. Wolkowitz says. He between East 65th and East 66th The lease also gives the company ex- location features 40-foot-wide win- front facade will offer a view of Oxxo’s operation. expects to open early next year. streets. pansion rights. The asking rent at dows across the front facade, which His new building, known as 245 “We have a lot of customers who the building is $46 a square foot. will allow pedestrians to watch work- Tenth,has another vacant commer- don’t get down to SoHo very often,” Epsilon is the fastest-growing ers clean and iron the clothes. Oxxo chain while working in Mia- cial space—the 2,500-square-foot a MarieBelle spokeswoman says. division within Alliance Data Sys- “It’s going to be hypnotic, like mi, and he quit a job in shipping lo- ground floor, which comes with a “We’ve been looking for an uptown tems. Among its clients are Citi- watching somebody making pizzas gistics to start his New York City 1,600-square-foot basement. Sev- location for a long time.” group Inc.’s ThankYou Network and or chocolates,” says Henry Gold- venture.He aims to open as many as eral galleries and cultural groups The 1,400-square-foot store— Bank of America Corp.,for which it farb, a broker at Grubb & Ellis Co., six more stores, in neighborhoods have expressed interest in the loca- which will feature a larger cacao bar runs a customer loyalty program. which represented Oxxo in the deal. such as the Upper West Side, tion, says Walker Robinson, senior than the SoHo location has—will In the fourth quarter of 2006, Oxxo, which uses only nontoxic Chelsea and Carroll Gardens, vice president at Grasso Holdings, open on the second floor,above Julie Epsilon acquired Abacus, a division cleaning solution that does not con- Brooklyn. the developer of 245 Tenth. Artisans’ Gallery. Although many of DoubleClick Inc. that provides tain perchloroethylene, will install —elisabeth butler —kira bindrim retailers prefer ground-level sites, data management services for the an ATM-style machine to allow cus- MarieBelle owner Maribel Lieber- retail and catalog industries. Ep- tomers who open accounts to pick up man didn’t mind taking an upstairs silon had originally looked to lease or drop off clothes at any time. Art galleries collect Chocolatier finds locale on Madison Avenue. only 25,000 square feet; it will use “In this city, the more access you in West Chelsea Madison sweet spot “She wanted to make it special, a the additional space to house sev- have to the service, the better,” says little bit like a hideout,” says Hal eral consolidated business entities Oliver Katcher, an RFR Realty bro- west chelsea art sellers will have a mariebelle new york is bringing Shapiro, a Winick Realty Group that have been created by the Aba- ker who negotiated the deal on be- new neighbor next year, when the its signature blue and brown colors broker who negotiated the deal for cus acquisition. half of property owner RFR Hold- Bryce Wolkowitz Gallery moves to Madison Avenue.The chocolati- both the tenant and property owner Epsilon will relocate from ing. The asking rent was about $60 into a new space at 507 W. 24th St., er,which operates a popular store on David Frankel Realty. The asking 28,000 square feet on the 18th and per square foot. between 10th and 11th avenues. Broome Street in SoHo, is planning rent was $125 per square foot. 19th floors at 315 Park Ave. South Mr. Kneafsey discovered the Bryce Wolkowitz signed a 10-year to open a location at 762 Madison Ave., —elisabeth butler

Blackstone is believed to be in- terested in making a bid with Cen- EXPLORING CAREERS Blackstone cashes in terbridge Capital Partners for DaimlerChrysler’s money-losing GROUP SEEKS Chrysler unit. In the past five years, on Equity Office buy however, Blackstone’s average an- HOST BUSINESSES nual return of 37.5% from real estate THE GREATER NEW YORK was 11 percentage points higher than COUNCILS’ Exploring program is turn on its investment is an astound- its return from corporate invest- seeking businesses to host edu- Firm resells 25% ing 400%-plus in just eight weeks. ments, according to the prospectus cational sessions offering high of properties, recoups “The fact that in a short time pe- for its initial public offering. school students the opportunity riod they will have sold out a mate- The company unloaded less- $25 billion; 400% ROI rial portion of their investment sug- desirable real estate along with bet- to explore various industries and gests that these properties were ter-quality assets in its string of di- make better decisions about BY MATTHEW SCOTT highly sought-after,and that there is vestitures,Mr.Heller notes.He says possible career choices. an active and avid the firm insist- The Exploring program puts in what may be record time, The market willing to ed that buyers together groups of 15 to 25 stu- Blackstone Group has more than buy them and pay ‘This would be a like Macklowe dents interested in specific fields. recouped the cash portion of its in- prices that quick- Properties and The groups meet at the host firms vestment in Equity Office Proper- ly reflect a premi- very celebrated Morgan Stan- after school for four or more ties Trust. um,”says Woody ley Real Estate sessions, learning about career moment for the ladders, educational require- Late last month, the private-eq- bloomberg news Heller, executive take all prop- uity juggernaut agreed to sell anoth- FLIPPING OUT: Blackstone, led by Stephen managing direc- firm to go public’ erties in any one ments, salaries and what people er 10 buildings that it acquired from Schwarzman, recovered its cash in two months. tor at commer- market—desir- in their selected fields actually do. Equity Office, bringing its total cial real estate able and not- Programs start throughout proceeds to $25 billion. The Man- firm Studley. so-desirable. the year. Participating hattan-based firm paid Chicago real lieved to represent the bulk of the But if the The deals organizations include Bloomberg, estate magnate Sam Zell $23 billion dispositions planned by the firm, market is so could be help- NYU Medical Center and Crain’s in cash for 540 commercial proper- which is headed by Chief Executive strong, why didn’t Blackstone hang ful in Blackstone’s effort to go public. New York Business. For more ties two months ago, and it assumed Stephen Schwarzman; some small- on to the properties in hopes of larg- “This would be a very celebrated mo- details, call Exploring Director $16 billion in debt. er deals are expected to take the to- er gains down the road? The firm ment to do that,” Mr. Heller notes. Bob Hayes at (212) 651-2808, or The recent transactions bring the tal proceeds to about $26 billion. seems to be reducing its real estate visit www.nyexploring.org. number of properties that Black- Based on the average price Black- exposure at the same time that it has Matthew Scott is a reporter with stone has sold to 134. That is be- stone paid for the properties, the re- filed to take a piece of itself public. FinancialWeek, a Crain publication.

10 | Crain’s New York Business | April 9, 2007 Project2 4/3/07 12:43 PM Page 1

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MATTHEW R. ASTRACHAN 212.841.7904 [email protected] CNYB 04-09-07 A 12 4/5/2007 7:29 PM Page 1

VIEWPOINT Hoping for Wall St.downturn

editor in chief Rance Crain s attorney general, Eliot Spitzer Street’s profits, is acting very differently. publisher Jill R. Kaplan made his reputation crusading against Mayor Michael Bloomberg and the City Council have set EDITORIAL editor Greg David shady practices on Wall Street. As aside $2.5 billion out of recent budgets to pay for future managing editor Richard Barbieri governor, he just approved a budget that is retiree health costs. In June, the city will actually end the projects editor Cynthia Rigg deputy managing editors Valerie Block, so dependent on the tax windfall current fiscal year with $3.9 billion unspent, which will be Erik Ipsen produced by Wall Street in recent years used to significantly reduce out-year deficits.The spending columnist Alair Townsend senior reporters Aaron Elstein, that even the hint of a downturn will send trend line, while still exceeding the rate of inflation, is Lisa Fickenscher, Matthew Flamm, the budget deeply into the red. So, Mr. Spitzer is praying for estimated at just under 4%. Tom Fredrickson, Samantha Marshall, Anne Michaud, Julie Satow, the Street’s good times to continue, right? Maybe not. The state seems incapable of any similar fiscal discipline. Miriam Kreinin Souccar A Barbara Benson, Elisabeth Butler, New York politics operates in strange ways, even in the Consider lawmakers’ naked power play to direct more school reporters Erik Engquist, Amanda Fung, Hilary Potkewitz, reform era supposedly ushered in by Mr. Spitzer’s election money to wealthy districts on Long Island, the fragile base Gale Scott last fall. of the Republican restaurant critic Bob Lape art director Steven Krupinski The $120 billion budget just enacted raises state-funded If money keeps majority in the state deputy art directors Carolyn McClain, spending by a whopping 8.7%—three times the rate of Senate. It clearly shows Daniel Mednick staff photographer Buck Ennis inflation. It’s the second straight year of such big increases, flowing, fiscal how Albany works, and copy desk chief Wendy Zuckerman and the budget is in balance only because of Wall Street. that legislative leaders copy editors Michele Arboit, restraint will be Thaddeus Rutkowski Securities firms earned a record $33 billion last year, which are more interested in research editor Denise Southwood ignored associate research editor translated into big corporate tax payments.The employee rewarding the special Adrianne Pasquarelli bonuses that were paid from those profits exceeded interests that keep www.NewYorkBusiness.com online editor Catherine Tymkiw $20 billion, sending income tax revenue soaring. In addition, them in power than online reporter David Jones Wall Streeters’ residence purchases have helped keep the they are in making EDITORIAL AND ADVERTISING OFFICES housing market afloat and perpetuated the windfall in good public policy. 711 Third Ave., New York, NY 10017-5806 transaction fees. editorial: 212.210.0277 Fax 212.210.0799 Mr. Spitzer says that he laid the groundwork for advertising: 212.210.0259 And the state has spent it all—boosting funding for fundamental changes with the health care cuts he achieved Cable craincom nyk education, limiting health care cuts and spreading the largess and a new education formula. But those reforms are likely to Fax 212.210.0499 Entire contents ©copyright 2007 Crain to a big field of special interests. As a result, the budget gap be swept aside and fiscal restraint ignored in future budgets, Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP for the year beginning next April rose by $1 billion, to $3.3 unless the state faces a financial squeeze.That’s why he Inc., used under license agreement. billion, with a shortfall as big as $6 billion looming by 2010. might be just as happy, and New York state might actually be TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. New York City, whose tax rolls also benefit from Wall better off, if the Wall Street boom ends. $3.00 a copy, $59.79 one year, $109.79 two years. www.NewYorkBusiness.com

ADVERTISING AND MARKETING advertising director Vanessa Cognard LETTERS TO THE EDITOR business development manager Robert N. Grossman senior account managers Holly A. McKeown, William E. Squitieri account executives Andrew Carlin, Lisa Pearly, Derek Reese, FM radio in dismal condition Jennifer Siniscalchi, Brigitte Stieglitz western account manager NPR’s World Café at 10 p.m. He York City radio is awful.Thanks Ellen Mazen (Los Angeles) 323.370.2477 REAL PERSONALITIES WFUV A GOOD sales manager, classified HAVE LEFT THE DIAL ALTERNATIVE plays a terrific array of music and for giving WEQX the recognition print & online John Gallagher interviews artists. It’s as if you’re in it deserves! newsletter product manager i loved valerie block’s wholly years ago, I stopped listening to an exciting music seminar every maureen neary Catherine Evans Gittens accurate column about the state radio in the car and listened to night. sales coordinator, print & online of New York radio (March 26). books on tape instead.Then There really still is great music Lulé Haznedari NOTHING LIKE sales coordinator Anita Perrino What a sad state of affairs on the serendipitously, I came across in New York! VERMONT’S WEQX credit Pat Grondziak 313.446.6082 FM dial in New York City. WFUV at 90.7 FM. joel mandelbaum marketing coordinator Jill H. Bottomley When I was younger, I had so It’s listener-sponsored, so no thank you! Thank you! Thank circulation manager Andrea Richardson many good choices with real commercials, and has an eclectic 102.7 A FAVORITE you! When I saw the title “Great general manager, interactive personalities who helped me learn music mix of old and new folk, UPSTATE STATION radio in rustic Vermont,” I knew Marc Minardo about any music I wanted. I, too, rock, blues and gospel, as well as immediately that you were NEW YORK PRODUCTION have discovered Internet and some country, and new since my high school days referring to WEQX. I have family production and pre-press director satellite radio, although I now fear “contemporary” artists. upstate, near Saratoga Springs, up near Gore Mountain, and I love Michael Corsi what Mel Karmazin will do to Especially rewarding is the 102.7 has been my favorite radio that station! Aside from Vin Scelsa advertising production manager satellite radio. music knowledge of the DJs, station. and some of the shows on WFUV, Marilyn DeMilta lloyd p. zuckerberg including David Dye, host of Valerie Block is right: New there’s nothing like WEQX in PUBLISHED BY CRAIN COMMUNICATIONS INC. New York City. chairman Keith E. Crain I love my iPod, but I’ll always president Rance Crain love being exposed to new music secretary Merrilee Crain WHAT DO YOU THINK IS THE PROBLEM WITH CBS RADIO? via the radio. treasurer Mary Kay Crain tom ashton executive vp, operations William Morrow 193 respondents weighed in through Crain’s online poll. senior vp, group publisher Gloria Scoby group vp, technology, circulation, FORGET ABOUT manufacturing Robert C. Adams FRESH 102.7 vice president/production & manufacturing David Kamis thanks for the piece on chief information officer Paul Dalpiaz corporate circulation director WEQX. What a refreshing Patrick Sheposh 69% 15% 9% 7% station. I long for the days of Scott CBS has killed off too many Too many commercials, Radio is passé; people are The music is bland and Vince on our own 102.7. As founder G.D. Crain Jr. (1885-1973) popular formats, like oldies too much talk listening to music via iPods and uninteresting chairman Mrs. G.D. Crain Jr. (1911-1996) on WCBS-FM and downloads for Fresh 102.7, you have got to be kidding me. michael lam

12 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 13 4/6/2007 11:56 AM Page 1

We know all this, yet some balk at the notion of encouraging and rewarding poor adults for such behavior. We bring Sure, just having a job doesn’t guarantee an immediate middle- class income. Many jobs don’t pay well,especially starter jobs.But hav- residential ing one foot securely on the employ- ment ladder is indispensable for moving up that ladder. Careers are built in steps, with wage gains and better benefits usually accompany- real estate to ing those steps. Mr. Bloomberg is a results-ori- ented man. His program will in- volve a control group of families who will not get payments. We will all know with time whether his approach to ameliorat- ing poverty works. If it doesn’t, it will be scrapped. If it does, it will probably be expanded and funded by the city. I am betting on positive out- john h.john howard comes. I believe that rewarding work with cash incentives will in- duce more of it. I believe that better incomes will lead to more stable families, even perhaps more two- Mike’s brave plan parent families. By now, there is a robust body of research showing benefits to the to help the poor men, women and children in stable, two-parent families. The children do better in school,exhibit fewer be- Issue Date: May 14 | Ad Close:April 26 ike bloomberg is a brave man. He is foster- havioral problems and are less likely to be poor. For men, being in a sta- ing—and personally helping to fund—an ble marriage is also associated with experiment that will pay poor families for greater employment stability and Introducing Crain’s Life: Spring Residential Issue. “good behavior.” The good behavior in ques- higher wages. tion is what most of us take for granted as The idea of using public funds Focused exclusively on residential real estate and presented in to promote marriage is anathema responsible adult conduct: holding a job, getting health insur- a clean, uncluttered environment, the Life Spring Residential M to some. For years we did just the Issue’s cornerstone is the lure of community. In future issues, ance to prevent financial catastrophe and encouraging children opposite, in effect subsidizing sin- Crain’s Life will focus on the consumer pursuits of our executive gle parenthood through our wel- to do well in school. our everyday life. fare programs. In an effort to pre- readers – Golf, Gifts and Fall Residential. Some object to the We don’t question vent women and their children Join our community and advertise in Crain’s Life Spring project because they see the value of education. from being poor, we helped sever Residential Issue. Space is limited. Contact Vanessa Cognard it as condescending so- Many parents spend the link between parenthood and today at (212) 210-0732. cial engineering. They thousands on tutoring responsibility for many teenage apparently don’t see so their kids do well on girls and boys. personal choices as ever the SATs,or on consult- As a nation, we have tried a resulting in outcomes ants to prepare their panoply of programs to reduce for which people children for preschool poverty, as we should. Helping should be held respon- admission tests. youngsters and adults in low- sible. Others apparent- And we certainly income communities better under- ly object to encouraging ALAIR understand that our stand the connection between what people to take whatev- TOWNSEND jobs are the means for they do—and don’t do—and the er low-wage jobs they achieving the lifestyle circumstances under which they can get. we want, financial se- and their children will spend their I don’t understand these naysay- curity and, if we’re lucky, personal lives is one that could usefully be 108 W. Houston Street and 169 Thompson Street, NYC ers.To me,they are denying much of fulfillment. added to the list. We recently forwarded information to many of our clients concerning the sale of the above referenced CRAIN’S ONLINE POLL buildings. Please note the information that we DO YOU THINK SALES PRICES FOR MANHATTAN APARTMENTS distributed, including the asking price, was inaccurate.

WILL CONTINUE TO RISE? We are no longer marketing these properties and A MAJORITY OF THE 456 RESPONDENTS to a No, apologize for our error and any inconvenience this prices will .12% Crain’s poll believe that Manhattan apartment decline may have caused. prices will stay on an upward trajectory—a trend buoyed by an upbeat economic outlook No, Yes, For more information concerning ownership or prices will .26% 62%. demand and big Wall Street bonuses. A little over a level off will remain operations, please contact the owner at The Penson strong quarter think prices have reached their limit, Companies, 275 Madison Avenue, New York, NY and just 12% say prices will start falling, as 10016, Phone: 212-529-4444, Attn.: Frank Farricker. they are doing elsewhere in the country. Besen & Associates, Inc. For this week’s question: Go to www.NewYorkBusiness.com/poll to have your say.

April 9, 2007 | Crain’s New York Business | 13 CNYB 04-09-07 A 14 4/6/2007 11:20 AM Page 1

New York hotel rooms that was meant to pay for the Jacob K. Javits Convention Center expansion.The POTSHOTS ’09 mayoral race begins THE INSIDER $1.50 nightly per-room fee has WHILE THE PRESIDENTIAL RACE IS UNDER WAY two years before the election, raised $66 million, according to an the 2009 New York City mayoral race has got it beat, beginning almost three by Erik Engquist and Anne Michaud estimate by the city’s tourism years before the voters go to the polls. agency, NYC & Company. Last week, Bronx Borough President Adolfo Carrión (below left) ridiculed State officials say they are the initiatives of his likely competitors in the Democratic primary at a forum holding the money in a separate about challenges facing the middle class. Mr. Carrión called City Council account; it is not going to the Speaker Christine Quinn’s proposed tax rebate for renters “fun,” and said it Scramble for HIP conversion money general fund.The $1.8 billion doesn’t address real issues of concern to the middle class, such as health expansion has yet to break ground, care and education. he legislature has and the Spitzer administration is “This is not about getting someone’s attention for five minutes,” he said, cleared the path for the studying whether the design plans referring to the coverage and reaction generated by Ms. Quinn’s proposal. can be improved.The hotel tax is Mr. Carrión also took a shot at the middle-class tax cuts championed by Health Insurance Plan supposed to pay for $650 million of T Rep. Anthony Weiner (below right), another mayoral contender sharing the dais the cost. of New York to go public, and with him at the Drum Major Institute/Baruch College forum. Mr. Carrión said created a pool of money that that when politicians court voters with tax-cut plans, “we insult their intelligence special interests will battle over. Hopefuls emerge by saying a small, lunch-money income tax break is going to help them.” The budget passed earlier this month removes the City Comptroller William Thompson, a likely mayoral candidate, also spoke for House seat at the forum. protections in its nonprofit corporation law that provide for the Meanwhile, Mr. Weiner is preparing to unveil a health insurance proposal attorney general’s review and the Supreme Court’s approval of the democratic Congressional Campaign Committee is strongly expected to be a cornerstone of his campaign, as former Sen. John Edwards the disposition of HIP’s charitable assets, according to encouraging Assemblyman Mike has done in his presidential bid. But Mr. Weiner’s plan will be simpler and Chuck Bell, programs director of Consumers Union. Cusick, D-Staten Island, to run more achievable than universal health care, and it will not require legislation. “New York wants the money for its budget, the unions want against Rep. Vito Fossella next year. The congressman is expected to call for the city to organize owners of Mr. Cusick has met with small and midsize businesses into a giant collective and then negotiate on it, but there is a real lack of specificity on how the money will Majority Leader Steny Hoyer and their behalf with insurance companies. be used,” says Mr. Bell. former DCCC Chairman Rahm Currently, insurers offer high-cost plans for small merchants because they Emanuel about the race. fear “adverse selection,” in which sick and injured people buy policies and file What is spelled out in the frenzy,” says Mark Scherzer, The House leaders believe lots of expensive claims, while healthy people forgo coverage. Mr. Weiner legislation is that 10% of legislative counsel for New Yorkers that Mr. Cusick would fare well argues that a large pool of employees would include enough healthy people conversion proceeds go to the New for Accessible Health Coverage. in the race because he is fairly to make it profitable for insurers. York State Health Foundation.The “From our perspective, if the money conservative and has strong Staten “You watch,” he says. “These foundation, funded by 5% of the replaces existing state funding Island roots. Mr. Cusick would also insurance companies will bid for proceeds of the earlier Empire streams instead of being used to have the full support of Sen. business.” conversion, is charged with expand coverage, it’s not being used Charles Schumer, for whom he Mr. Weiner says Democrats boosting coverage and access to as it should.” worked, and probably Rep. risk losing their edge on the issue care. Another $50 million a year is Anthony Weiner, whom he as Republican governors in earmarked for stem cell research, up Hotel tax fund supported for mayor. Massachusetts and California roll to a total of $500 million. Another possible Democratic out landmark health That leaves most of the expected hits $66 million candidate is City Councilman insurance programs. $2 billion to be placed in the state’s Domenic Recchia of Brooklyn. health insurance funding pool, april 1 marked the second Mr. Recchia can’t stay on the which will touch off a “feeding anniversary of the surcharge on council past 2009. He would

benefit from a large Democratic authorization to continue its $400 turnout for the 2008 presidential annual property tax rebate, election. The fact that he’s Italian- elimination of the city sales tax on American, like Mr. Fossella, all clothes and shoes, lower taxes One Floor Left – 25,324 sf would negate the ethnic for small businesses, more power advantage that the incumbent for the city to curb pensions, and enjoyed last year. the ability of its child-welfare agency to check criminal records of people suspected of child abuse. Mayor pushes Bloomberg announced these raft of bills priorities in January, but lob- bying was postponed while Albany with the state budget settled, was consumed with budget nego- Mayor Michael Bloomberg will begin tiations. The city will also ask the lobbying Gov. Eliot Spitzer and the state to approve changes to the Legislature to pass a host of bills 421-a property tax abatement needed to carry out his various program, and City Council initiatives. Deputy Mayor Ed Skyler Speaker Christine Quinn will push a will lead the effort. bill to authorize a tax rebate for WWW.11WEST19STREET.COM The city’s wish list includes renters. I CHELSEA • FLATIRON • UNION SQUARE CRAIN’S COLUMNIST TOWNSEND WINS PRIZE • 25,324 sf FOR LEASING INFORMATION PLEASE CONTACT: CRAIN’S COLUMNIST ALAIR TOWNSEND has been recognized by a national group of business journalists for • Full floor identity her column writing. Michael Kaufman She was one of two winners in the weekly category in • Newly renovated lobby 212-471-4320 a competition sponsored by the Society of American [email protected] Business Editors and Writers. The contest covered columns written in 2006. • NBI for qualified Tenants Grant Greenspan “Alair Townsend skewers the excesses of state and 212-471-4340 Alair Townsend city government, and drills into complex subjects like city • Close Proximity to Transportation [email protected] budgeting and mandatory health insurance,’’ said the judges. “As a publisher and former city official, she also brings a rare perspective. She criticized a Hewlett-Packard director for ‘dribbling out his gripes to the press. All the furor that followed was because of this fact. It was the original sin.’ Agree or THE KAUFMAN ORGANIZATION disagree, her crisp, tart tone reminds us of the late Molly Ivins—if Ivins were WWW.KAUFMANORGANIZATION.COM reborn as a conservative, pro-business New Yorker.”

14 | Crain’s New York Business | April 9, 2007 Project10 4/3/07 4:34 PM Page 1

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WEEK IN REVIEW

a 1.3 million-square-foot, 50- ECONOMIC SPOTLIGHT story skyscraper on the site of the former Deutsche Bank building near Ground Zero. Chase has been seeking a location in lower Manhattan for several months. EDC seeks OTB revival the city’s economic Development Corp. issued recommendations for reviving the floundering off-track betting industry. EDC’s proposals include online wagering, video lottery terminals and new venues to attract bettors. Online ad market doubleclick inc. said it will Student loan case widens launch an online marketplace to connect buyers and sellers of A PROBE by New York Attorney General ANDREW CUOMO digital advertisements.The (above) of the $85 billion student loan business widened exchange is in limited testing in substantially. Six schools nationwide—including New York, the United States and is expected St. John’s and Fordham universities—agreed to refund to go live in the third quarter. Economy Watch borrowers $3.27 million in payments collected from NYC’s unemployment rate stayed below 5% for a seventh month in February, lenders. Several schools said financial aid officers, Bookstore uncovers as the city kept adding jobs. The area’s monthly and annual inflation rates rose. including DAVID CHARLOW of Columbia University, had backdating JANUARY ’07 FEBRUARY ’07 COMPARISON bought and sold stock in one of the lenders for large profits. barnes & noble inc. said an NYC jobless rate 4.8% 1 4.9% 4.5% ap images internal inquiry revealed NYC employment change +18,000 +6,500 +24,5002 numerous instances of improperly dated stock options over the past NY area inflation change +0.2% +0.6% +3.1%3 ISS urges NYT FTC subpoenas decade that may have bolstered 1-U.S. unemployment rate. 2-Change since December 2006. 3-Inflation rate for the latest vote boycott Bristol-Myers the grants’ value by $45.5 million. 12-month period. The company, which will record a institutional shareholder bristol-myers squibb co. got a $200,000 charge in the fourth NYC Hotel Stats Broadway Stats Services urged shareholders of subpoena from the Federal Trade quarter, said it won’t need to Average daily room rates and Attendance and gross stayed in nar- The New York Times Co. to Commission stemming from its restate financial results. occupancy levels in New York City row ranges for most of March, The withhold their votes for four of the failed patent settlement with recovered somewhat in February, League of American Theatres and company’s directors as protest Apotex Inc., a Canadian manufac- KKR buys First Data according to data from PKF Producers says. Figures for the week against its two-tier stock system, turer of generic drugs.The agree- Consulting. The year-earlier levels ended 4/1 topped the year-earlier which gives the Sulzberger family ment had attempted to stall sales kohlberg kravis roberts & co. were $218.75 and 76.6%. levels of 252,000 and $18.3 million. control. ISS said that the Times of a cheaper version of Bristol- agreed to buy First Data Corp. for Co. failed to address the concerns Myers’ blood thinner Plavix. $29 billion, marking one of the of its Class A shareholders, who largest leveraged buyouts ever. want the dual-class structure First Data, in Greenwood Village, eliminated. City settles Colo., is the world’s largest with contractor processor of credit card payments. Starwood ousts the department of Consumer CEO Heyer Affairs reached a $600,000 BAM signs settlement with J. Arceri Home theater deal starwood hotels & Resorts Improvements Inc., a contractor Worldwide Inc. Chief Executive that failed to complete work for the brooklyn academy of Steven Heyer 123 homeowners after taking Music inked a three-year joint resigned after deposits. It is the largest venture with director Sam the board lost settlement won by the city agency. Mendes and the Old Vic Theater confidence in Company in London.The Bridge Capital IQ’s Weekly Deals Report his leadership. Project will produce two plays a Chairman News Corp. swaps year for limited engagements in TRANSACTION SIZE Bruce Duncan both the United States and the COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE DirecTV stake was named United Kingdom. Advanstar Holdings Corp. $1,140.0 Citigroup Private Equity, Veronis FB M&A interim CEO. ap images news corp. shareholders ap- —from staff reports and Manhattan Suhler Stevenson’s investment arm, The shake-up raised speculation proved a deal with Liberty Media bloomberg news reports New York Life Capital Partners about a possible sale of the Corp. in which News Corp. Bellco Health $235.0 AmerisourceBergen Corp. SB M&A North Amityville, L.I. company. will swap its stake in DirecTV DEUTSCHE Twelve self-storage facilities $44.0 Sovran Self Storage Inc. SB M&A Group Inc. for $550 million in BANK building in New York, Texas and Mississippi Apollo stake cash and Liberty’s roughly at Ground Zero. Manhattan $11 billion stake in News Corp. NorthStar Realty Finance Corp. $37.5 Not disclosed GCI private equity firm Apollo The transaction must be Manhattan Management, founded by approved by agencies including AscendHealth Corp. $20.1 Polaris Venture Partners, CHL Medical GCI financier Leon Black, was the Federal Communications Manhattan Partners, Three Arch Partners reportedly considering selling a Commission. Infinite Conferencing $18.0 Onstream Media Corp. SB M&A 10% stake to private investors for Millburn, N.J. $1.5 billion.The move Selected deals announced during the week of March 25 for companies headquartered in metro New York. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing contradicted earlier reports that Chase eyes shares of a company with the participation of a financial buyer. GCI: Growth capital investment the firm was mulling a traditional WTC site represents new money invested in a company for a minority stake. SB M&A: Strategic buyer initial public offering. Goldman M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. Sachs and J.P.Morgan Chase were j.p.morgan chase & co. is in ap images bekka lindström bekka hired to help find buyers. talks with city officials to build

16 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 17 4/5/2007 7:32 PM Page 1

NEIGHBORHOOD JOURNAL

effort, which began with the forma- Queens area fights to stay low-rise tion of a steering committee last July,may succeed where others have failed. The association had six core Joel Nabu will try again. not just provide the usual mix of ex- Bed-Stuy has come a long way members when it hired Mr. Nabu Seeks downzoning Mr. Nabu, the commercial revi- tra sanitation and security services since the dark days of the 1970s and two years ago with seed money from to stem development; talization manager at Bedford and streetscape improvements, but 1980s.Statistics show huge drops in the city Department of Small Busi- Stuyvesant Restoration Corp., will also help remake the area’s image. crime, and established businesses ness Services; it now has 80. another campaign begin soliciting votes from 267 “One of the big issues for Bed- like Applebee’s have moved in. Or- Mr. Nabu would most likely be for Bed-Stuy BID property owners along Fulton Street ford-Stuyvesant is really perception ganizers of the BID campaign say the BID’s executive director. The and Nostrand Avenue.If at least 136 versus reality,”says Mr.Nabu,who is one of their priorities would be a steering committee is chaired by sign on, the city will establish a also executive director of the Fulton- closed-circuit camera system to help Edmon Braithwaite, the owner of ommunity board 12 property tax surcharge that will raise Nostrand United Merchants Asso- to push those crime rates still lower. Nostrand Wines and Liquors, and in Queens, which in- $675,000 annually to fund what ciation.“Even though the neighbor- “We have the entire community Noah Katz, who with his brother cludes the St. Albans would be known as the Bed-Stuy hood is far better today,and probably behind us,” Mr. Nabu declares. and father operates 14 Foodtown and Hollis neighbor- Gateway BID. as safe as anywhere in the city, peo- Because the merchants group is stores. hoods, encompasses Backers hope that a BID would ple don’t want to come here.” stronger than ever, the current BID —erik engquist Cone of the city’s fastest-growing ar- eas. In the past 10 years, its popula- tion has risen 40%, to 250,000. Res- idents want that growth reined in. “In most of our community, the developers are having a field day,” says Board 12 District Manager Yvonne Reddick.In many cases,sin- gle-family homes have been sold and quickly replaced with five- or six- family buildings. “That destroys the character of the neighborhood,”says City Councilman Leroy Comrie. With the backing of politicians and residents, the board is pushing for a downzoning. About half of the

PRIME TERRITORY bekka lindström bekka

area’s 500 blocks are zoned for mul- tifamily homes,and the board wants to rezone most for single-family only.Larger buildings would be lim- ited to commercial strips. In recent years, the pressure to Three years. build bigger has turned quiet, low- rise streets in St. Albans into con- Three consecutive Outstanding Patient Experience awards struction sites. “Especially when people live on a tree-lined street, for Syosset Hospital, from J.D. Power and Associates. they don’t want to lose [that atmos- phere],and I don’t want them to lose it, either,” says Borough President To be recognized by J.D. Power and Associates once is exciting. To do it again is remarkable. But to do it a third Helen Marshall. A rezoning of St. Albans and year in a row is extraordinarily meaningful—because the award is based on comments made by our own patients Hollis is being studied,the first step. about the services we provide. In the past five years, 22 Queens neighborhoods have been rezoned, “Inpatient Service Excellence.” That’s what the award says. To achieve this distinction in 2006, we exceeded the mostly to restrict development. national benchmark scores for creating a consistent, positive patient experience. In particular, patients appreciated our St. Albans’ business district in- speed and efficiency in administering treatment, our staff ’s open and clear communication, and our admission and clude Farmers and Merrick boule- discharge processes. No wonder more than 16,000 patients a year turn to us when they need surgery. And no wonder vards and Hollis Avenue. Like retail the vast majority of our patients said they would return—that’s the greatest validation of all. strips in other neighborhoods in the borough, St. Albans’ belt consists of Syosset Hospital is the only hospital in New York to be recognized by J.D. Power and Associates three years smaller buildings, with shops on the in a row. Here and now, we pledge to continue setting our community’s standard of care. first floor and one or two residential levels above. “That’s been the tradi- tional Queens strip, and we’d like to keep it that way,”Ms.Marshall says. To learn more about Syosset Hospital and its services, —hilary potkewitz call 516.496.6467 or visit northshorelij.com.

HOSPITALS: NORTH SHORE • LONG ISLAND JEWISH • SCHNEIDER CHILDREN’S New group trying ZUCKER HILLSIDE • FRANKLIN • GLEN COVE • SYOSSET • PLAINVIEW for Bed-Stuy BID SOUTHSIDE • HUNTINGTON • FOREST HILLS • STATEN ISLAND AFFILIATIONS: NASSAU UNIVERSITY MEDICAL CENTER • PENINSULA in the past 20 years, at least four campaigns to establish a business SM improvement district in Bedford- Setting New Standards In Healthcare Stuyvesant have failed. This week,

April 9, 2007 | Crain’s New York Business | 17 Project1 4/6/07 2:27 PM Page 1

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SMALL BUSINESS INSIDE Footwear firm steps out of its niche to become a bigger player PAGE 25 A running tour service, novelty bag maker and community bank discuss what they did right and wrong PAGE 27

Teacher funds pet plans via the Web Site lets donors pick public-school projects that they can bring to life

BY ERIKA RASMUSSON JANES

in his first year of teaching at an alternative public high school in the Bronx, Charles Best quickly got frustrated. He had lots of plans for projects to CLEAR SIGN: David Censi says the enrich his students’ educa- state’s assistance tion—such as bringing in guest helped his speakers—but no money to put promotional display those plans to work. firm become a He soon discovered that manufacturer—and many of his colleagues at Wings stay in business. Academy shared his frustration. “We saw our students going buck ennis without the materials and expe- riences they needed to learn, and found ourselves unable to innovate to bring our best ideas to life,” Mr. Best says. Empire Zones under gun No-fuss philanthropy determined to take action, he set up DonorsChoose Inc., a State plan helps many, but abuses are rife; Spitzer eyes changes not-for-profit that uses the Web to enable individuals to BY TINA TRASTER Development Inc. directly fund specific projects in It is at such a point that many firms do the research and public schools. SEVERAL YEARS AGO “It’s a philanthropic market- , David Censi realized that if his company discover that New York City’s high rents, taxes, utilities and place based on the models of con- was to survive, it had to move from just designing signs Islands of other costs rule it out as a place to make anything— sumer choice,transparency and and promotional materials to actually making them. Opportunity and then move to New Jersey. accountability,” Mr. Best says. “The cost of subcontracting our point-of-purchase Mr. Censi didn’t need to leave town, because his His marketplace has proved 5 TIPS for wringing the enormously popular. Since its displays was rapidly eating away at our profits,” says most out of an Empire company is in the East Brooklyn Empire Zone, one of See TEACHER on Page 20 Mr. Censi, one of four partners in Promotional Zone PAGE 23 11 such zones in the city. See GETTING IN THE ZONE on Page 22

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REPORT SMALL BUSINESS Teacher funds pet plans via the Web

Continued from Page 19 butions for public schools. The nated $100 or more gets a feedback teachers’lounge,requesting that any- launch in 2000, it has raised almost donors—referred to as citizen phi- package, with photos and thank- one who partook post a project pro- $12 million and has funded more lanthropists—can browse through you notes from the students. posal in return.When 11 colleagues than 24,000 projects. Now operat- and fund whatever projects strike What sounds so straightforward ate up his offer, Mr. Best anony- ing in 10 states and Washington, their fancy. DonorsChoose staffers and appealing today was initially mously funded 10 projects at a cost D.C., DonorsChoose is slated to go fill the orders on behalf of the teach- anything but. When Mr. Best un- of $4,000;his aunt paid for the 11th. nationwide by year-end. ers and students. veiled the DonorsChoose site, in “When [they] saw their propos- Much of its success can be which he had invested $2,000 of his als funded,word spread pretty quick- AT A GLANCE chalked up to a model that relies on Just deserts savings, his colleagues at Wings ly across the school and the Bronx,” teachers to pitch their projects on each donor receives a thank-you were unmoved. Mr. Best says. “Teachers started GETTING A READ ON the DonorsChoose.org Web site, e-mail from the teacher within a His breakthrough came when he coming to the site in greater and DONORSCHOOSE rather than simply soliciting contri- week. Later on, anyone who has do- put a homemade pear dessert in the greater numbers.” FOUNDED Spring 2000 BRANCH OFFICES Nine LARGEST DONATION $20,000 from a Manhattan couple to build a playground in the South Bronx SMALLEST DONATION $10 to help fund a classroom library in the Bronx istockphoto

To help drum up funding for all the proposals, his students volun- teered to write 2,000 letters to people across the country. Potential donors were culled from Mr. Best’s alumni directories from his college and prep school—Yale and St. Paul’s School in New Hampshire, respectively. Within a few weeks,DonorsChoose had taken in $30,000, and Mr. Best had expanded his efforts to cover all of New York City. After Oprah Winfrey heard about DonorsChoose and invited Mr. Best onto her show in 2003, he began getting calls from donors in- terested in expanding the charity to their communities. Most recently, Kevin Albert, a former Merrill Lynch investment banker, gave a sum in the mid-six figures that en- abled DonorsChoose to expand throughout New York state. “It’s a wonderful way, with a lot of accountability,to give money to a school,” Mr. Albert says. School masters donorschoose, based in a 3,000- square-foot space on West 36th Street in Manhattan, is in the pro- cess of expanding its paid staff to 60 as Mr. Best prepares for the nation- © 2007 Consolidated Edison Company of New York, Inc. Ad: UniWorld Group, Inc. Photos: John Pinderhughes al rollout. The group boasts a mar- keting chief who is a former Bain & Co. consultant, and a chief financial officer who once worked for Ernst Meredith McRoberts, President & CEO, McRoberts Protective Agency, Inc.; Alejandro Perez, Vice-President, El Toro Exterminator; Winston Currie, President, Swift Contracting & Young; there are also more than 100 volunteers. Up at P.S. 171 in East Harlem, Con Edison Is ON IT– fifth-grade teacher Stacey Shubitz is seeing results, and she’s impressed. In recent years, she has written And We’ve Got Company. thank-you notes to citizen philan- thropists who have donated every- In fact, more than 300 companies in and around New York do business with Con Edison thing from clipboards ($59) to yoga through our Supplier Diversity Program. Entrepreneurs like these who partner with Con Edison sessions ($1,829) for her students. become the economic engines that keep New York on the move. “DonorsChoose is probably the best thing to happen to public school teachers ever,” Ms. Shubitz You could be one of them. Con Edison. ON IT. says. “It makes everything so much easier when you can be matched up with someone who doesn’t know you and doesn’t know your kids, but Visit www.conEd.com/supplierdiversity or call Joy Crichlow, Director, has this desire to make your little Con Edison Supplier Diversity Program at 212-460-3076. www.conEd.com corner of the world better.”

COMMENTS? [email protected]

20 | Crain’s New York Business | April 9, 2007 Project2 3/19/07 10:49 AM Page 1

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REPORT SMALL BUSINESS SUCCESS STORIES State Comptroller Alan G. Hevesi in 2004 detailed abuses and short- LINDA TOOL & DIE CORP. that was undercutting our prices,” Getting in the zone comings of the program. In one au- says Norman Gold, Madelaine’s ZONE Southwest Brooklyn dit, which analyzed eight of the CERTIFIED 2004 president. “We looked at New state’s then-72 Empire Zones, Mr. JOBS PROMISED/CREATED 3/3 Jersey and Long Island, but I did Continued from Page 19 waste and outright fraud. As a re- Hevesi found that nearly 25% of the KEY BENEFIT 50% cut in real not want to lose our local work- Businesses certified in New sult, the statewide effort has been businesses had actually cut staff. estate taxes force of 300 people.” York’s Empire Zone program get reformed several times, most re- Forty-seven percent had missed A five-year, $1,500 annual property tax breaks, wage tax cred- cently in 2005. their job growth projections, and inda tool & die corp. wage tax credit per new employ- its, sales tax exemptions and other With a new governor in office, just 30% had met or exceeded their now counts Boeing and ee let Mr. Gold increase his labor benefits for adding jobs or infra- the Empire Zone program is once targets. LNASA among its cus- force. Meanwhile, utility dis- structure in these economically dis- again under review. But with so The inquiries also found, for ex- tomers, something that would counts have cut nearly 25% from tressed areas. much at stake—9,000 certified ample, that a Syracuse real estate have been inconceivable three his power costs. “Becoming a manufacturer al- businesses employing 350,000 peo- firm created a single job with an an- years ago. Owner Mike DiMari- Most important, investment lowed me to stay in business, but I ple in 82 zones statewide—it’s too nual salary of $26,000 but claimed no credits his decision to move tax credits freed up money for couldn’t have done it without help important to dismantle. tax breaks worth more than the 55-year-old business to an high-tech equipment that has from the state,”Mr.Censi says.Pro- $250,000; a Rochester real estate Empire Zone. tripled production capacity and motional Development has added Cost-benefit assessment firm created one job with an annual “A company like Boeing helped push revenues to $35 mil- 25 jobs since it began production from 2001 to 2005,zone operations salary of $10,000 but received a would never have done business lion—up 25% from a decade ago. three years ago. generated 54,813 new jobs and in- property tax credit worth $137,000. with us at the old shop,” Mr. Di- The 58-year-old company, The Empire Zone program, vested about $17.5 billion, accord- And several companies that actual- Marino says. which occupies a total of 200,000 which in the city comprises 1,100 ing to Randy Coburn, director of ly shed jobs still managed to wran- The zone program’s raft of square feet in three contiguous companies with a total of 43,000 the Empire Zone program. The gle hundreds of thousands of dollars benefits helped him buy a one- buildings, sells to more than workers, has produced many such state paid for that growth, though, each in sales tax exemptions. story, 12,000-square-foot build- 6,000 department and specialty success stories since it was created shelling out $1.78 billion in tax In response, lawmakers over- ing for the the precision machine stores. 21 years ago. The problem is that credits in the period. hauled the program in 2005, and parts operation. Mr. DiMarino “We knew there was business some participants are engaged in Two audits released by former Mr. Coburn insists that the move then spent about $400,000 on out there to capture,but we need- cleaned things up.Revisions includ- cutting-edge equipment and oth- ed a boost,” Mr. Gold says. “The ed mandating a cost-benefit analy- er improvements. zone program made it possible.” GOLDEN LANDS sis and adding approval by the local The investments would have zone administrative board to the been impossible without the 10- ICESTONE Chinatown/Lower East certification process. year tax abatement, real estate tax ZONE North Brooklyn/Brooklyn Side was designated “The cost-benefit analysis—the reductions, utility rate discounts Navy Yard 2 most important change—makes a and wage credits that Linda Tool the 11th Empire Zone 1 CERTIFIED 2004 in the five boroughs company more accountable in terms received from the program. JOBS PROMISED/CREATED last year. 7 of its projected investment and job Since the move, annual rev- 21/28 creation,” says Carl Hum, director enues have risen 20%, to $3 mil- KEY BENEFIT $3,000 wage tax of the Mayor’s Office for Industrial lion, and staff has grown to 20. credits for hiring the hard-to- and Manufacturing Businesses, In its former location—less employ which supervises the Empire Zone than a mile away, in Carroll Gar- 4 program for city businesses. “In the dens—Linda Tool had 4,000 n 2003, when socially con- 6 past, companies weren’t really re- square feet on the ground floor scious entrepreneurs Miran- quired to make hard projections,” and two upper floors unsuitable Ida Magagnini and Peter Mr. Hum says. for manufacturing. Strugatz bought the assets of a 9 Encouraged by the reforms, the “When these big companies bankrupt manufacturer turning Legislature last year reauthorized the choose a machine shop, they recycled glass and concrete into 5 program through 2011. In another come down and perform serious stylish countertops and floors, show of faith, it designated China- inspections,” Mr. DiMarino says. they were not shy about asking for 3 town/Lower East Side the city’s 11th “They have very tight specifica- help as a “green” company. 10 Empire Zone in a bid to help the dis- tions on how a plant is configured They recruited 26 angel in- trict rebound from the lingering ef- and what high-tech machinery is vestors, including Ben Cohen of 11 fects of the Sept. 11 attacks. used.At our old location,we were Ben & Jerry’s; got R&D funding 8 The initiative is again under handcuffed in terms of growth.” from New York state’s Environ- scrutiny, however, this time by Gov. mental Investment Program; and Eliot Spitzer.He has hired manage- MADELAINE CHOCOLATE won other state grants for waste ment consulting firm A.T. Kearney NOVELTIES INC. reduction and training. But they to study the state’s economic devel- ZONE Far Rockaway, Queens also devoted hours to making sure opment activities,including Empire CERTIFIED 1995 that their firm qualified for the NUMBER OF Zones. full measure of allowable benefits NAME CERTIFIED NUMBER REPRESENTATIVE JOBS PROMISED/CREATED OF ZONE BUSINESSES OF JOBS INDUSTRIES Among other things, the firm 200/200 courtesy of its address in an Em- will make recommendations for im- pire Zone. Hunts Point 157 6,610 Food distribution, food processing, KEY BENEFIT Wage tax 1 auto repair, paper products proving the program and will iden- credits defrayed the cost of “Every bit helps when you’re a tify companies that wrongly re- startup,” Ms. Magagnini says. Port Morris 113 4,898 Metal fabrication, distribution, adding workers 2 printing, furniture restoration ceived tax breaks. “We spent six months preparing oliticians seeking proof for certification, because we East Brooklyn 97 6,482 Transportation, distribution, Following up on shortfalls of the power of the zone wanted to have our ducks in a row 3 metal fabrication, biotech “companies that have fallen short program to help keep man- for our investors.” North Brooklyn/ 200 7,127 Construction, food manufacturing, P because of a change in business cli- ufacturing jobs in the city need IceStone has secured $3,000 4 Brooklyn Navy Yard woodworking, metal fabrication mate or adversity in their circum- look no further than Madelaine in wage tax credits for hiring a 5 Southwest Brooklyn 281 7,546 Maritime support services, stances will be treated reasonably— Chocolate Novelties Inc. handful of hard-to-employ food production, construction, perhaps by discussing an extension Since qualifying to participate workers, and a state sales tax re- biotech, wholesaling or a pro rata repayment plan,” says in the Far Rockaway, Queens fund saved it over $20,000. The Chinatown/ 0 0 Garment manufacturing, tourism, Patrick Foye, the new co-chairman zone in 1995, Madelaine has company, which has put 6 Lower East Side restaurant services, retailing of the Empire State Development beefed up staff, purchased equip- $500,000 into renovating its 7 East Harlem 34 875 Tourism, restaurant services, Corp.“For those who have commit- ment to expand its product range 55,000-square-foot facility, pre- transportation, retailing ted fraud, abuse or wrongdoing, we and bought out a competitor. dicts the biggest payoff—prof- 8 Far Rockaway 25 1,212 Food production, construction, will be far more aggressive about re- “Our profit margins were un- itability—will come later this wholesaling, auto repair couping the money.” der constant pressure, especially year.Ms.Magagnini then expects South Jamaica 83 3,038 Construction, metal fabrication, Meanwhile, some local adminis- from out-of-state competition to receive an income tax credit. 9 airline support services, trators contend that if the governor food production wants the program to work, he may 10 North Shore 97 3,424 Construction, food production, have to pony up. Brooklyn Industrial Development vide technical assistance to busi- distribution, transportation “Our zone operating budget Corp., which oversees that Empire nesses that can’t afford fancy ac- West Shore 49 1,635 Construction, food production, from the state is $30,000—barely Zone. “We’re hoping the new ad- counting firms to navigate them 11 distribution, transportation, enough to pay one part-time ad- ministration will recognize the im- through the certification process.” paper products ministrator,” says Phaedra Thomas, portance of funding this program so executive director of the Southwest that we can market it better and pro- COMMENTS? [email protected]

22 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 23 4/5/2007 5:45 PM Page 1

REPORT Using an American Express Business Card to pay your business taxes through Official Payments Brilliant Deduction.

Now you can pay the balance due on your federal business taxes through Official Payments Corp. using your American Express Business Card. This is in addition to paying the balance due on federal income, state and local business taxes. It's secure, easy, and federal payments are authorized by the Internal Revenue Service. Best of all, because you're using an American Express Business Card, you'll have: Assurance of an on-time payment PICKING UP CRUMBS? Peter Singer, owner of Record of payment Betsy’s Place in Hunts Point, Flexibility to manage your cash flow learned about Empire Zone Ability to deduct 2.49% convenience fee for federal business tax payments benefits the hard way. You may even be eligible to earn points, miles or cash back.* buck ennis So call 1-800-2PAY-TAXsm (1-800-272-9829) or visit www.OfficialPayments.com/open. HOW-TO Tips for wringing

Official Payments Corp. is the service provider and charges a convenience fee for this service. Federal business taxpayers can deduct the fee as a business expense (Check with your tax adviser). Federal tax deposit payments cannot be paid through this the most out service. This service is also available for federal personal individual income taxes and other state personal and business taxes and fees in AL, AR, AZ, CA, CT, GA, IA, IL, IN, KS, LA, MD, MN, MS, NE, NJ, NY, OH, OK, OR, PA, RI, VA, WA, WI, WV and D.C. Visit www.officialpayments.com for additional information. of Empire Zones Check with American Express for Terms, Conditions and Eligibility that may apply. Qualifying for benefits can be tricky with a whole bunch of new hires that BY TINA TRASTER I never got credit for.” In New York City, there are hether people about 1,100 companies in 11 state- infrastructure like New York designated Empire Zones. Here is a consultants. state’s Empire primer on joining their ranks. Zones for their plan for growth. ability to gener- ateW jobs in impoverished areas or STEP 1 loathe them as breeding grounds for Test the waters. fraud and abuse,two things are clear. The program provides a host of ben- an empire zone address does not efits that give growing companies a automatically guarantee that a com- major edge, and those benefits— pany qualifies for benefits. To be- ranging from tax credits to cheaper come certified, a business must have energy costs—can be devilishly dif- specific plans to increase employ- SEEKING PROPOSALS FOR... ficult for business owners to get, ment and/or make capital invest- New York City Economic Development Corporation (NYCEDC) is seeking Consultants much less maintain. ments in the zone, and to provide infrastructure planning, engineering, strategic planning, economic analysis, When Betsy’s Place Islands of five-year projections and Inc. moved to Hunts Opportunity a cost-benefit analysis and policy development services. Services will primarily focus on rail and port planning Point, the Bronx, from that detail those plans. and development, as well as the planning and development of other infrastructure Manhattan in 1997, for Go to New York state’s facilities owned by the City of New York, including but not limited to ferry operations example, the wholesale Web site, www.empire and planning, heliport planning, cruise terminal planning and aviation strategy, planning baking firm immediately became el- .state.ny.us. Review the Empire and oversight. igible for a raft of zone benefits. But Zone’s basic and enhanced incen- owner Peter Singer learned the hard tive programs and criteria for eligi- Responses are due no later than 4:00 p.m., Monday, May 14, 2007. Submission way that being based in such a bility. The zone application can be zone—and even being fully eligible downloaded, but it cannot be filed guidelines and requirements are outlined in the RFP and available to download at for those benefits—is no guarantee electronically. www.nycedc.com/RFP, or for pick-up at NYCEDC, 110 William Street, 6th Floor, of actually getting them. After becoming familiar with the New York, NY, Monday - Friday, 9:30 a.m. to 4:30 p.m. “I was aware of the wage tax cred- program,contact a zone coordinator it,” says Mr. Singer, referring to one whose name and contact informa- of the more valuable zone bene- tion are available on the state’s site. fits—a tax credit for new hires.“But Each of New York City’s local zones I never knew who to call or how to has a development plan that speci- navigate the process, so I ended up See HOW TO on Page 24 REQUEST FOR PROPOSALS CNYB 04-09-07 A 24 4/5/2007 5:51 PM Page 1

REPORT SMALL BUSINESS

UNDERSTANDING How to wring the most out of Empire Zones WAGE TAX CREDITS TERM Five years Continued from Page 23 STEP 2 the zone or on contributions to ap- a 4.25% sales tax exemption on x-ray fies the kind of business that is eli- Study the menu. proved community development equipment and office supplies. ELIGIBILITY Firms must be gible. Manufacturers are given high projects, and a New York state sales Certified Empire Zone busi- adding full-time staffers priority. Applications are approved all certified empire zone busi- tax refund for the purchase of build- nesses may also be eligible for bene- AMOUNT by the local zone and then sent to the nesses may be eligible for five types of ing materials.Some of those benefits fits through an additional round of I $1,500 per employee state for review and final approval. tax benefits. There’s a $1,500 wage are good for five years, others for 10. perks called Qualified Empire Zone “A company will not access tax tax credit for new employees, an in- Thomas Herman says moving Enterprises. Those benefits include I $2,000 per employee when benefits if it is not growing,” says vestment tax credit for capital invest- his mobile radiology business from a tax reduction credit, a credit for annual wages and benefits Christopher Shepard, business de- ment and an additional employment Fresh Meadows to South Jamaica’s real property taxes and a New York exceed $40,000 velopment manager and zone coor- incentive credit equal to 30% of the Empire Zone helped grow the com- state sales tax exemption. However, I $3,000 per employee for hard- dinator for the Southwest Brooklyn investment tax credit. There’s also a pany. In 2006, Multi-Diagnostic the company must pass an employ- to-employ “target groups,” Empire Zone. 25% tax credit on the investment in Services Inc.saved $15,000 through ment test to show it is growing. including ex-felons, veterans and the disabled I $3,500 per hard-to-employ staffer earning more than $40,000 BlackBerry® 8800 with GPS EXTENSIONS Unused credits can be forwarded indefinitely

STEP 3 Get help.

once a business is certified,it is eligible to claim tax credits. But all claims are subject to complex per- formance-based formulas deter- mined by tax law.To learn more,vis- Because losing your way it the New York Department of Taxation and Finance Web site, www.nystax.gov, but be prepared to could mean losing their business. bring in a specialist. Accounting firms such as Anchin Block & An- chin, Freeman & Davis and Price- Introducing the BlackBerry® 8800. Only from waterhouseCoopers all specialize in Cingular. It’s the slimmest BlackBerry device zone packages. ever, yet it’s packed with features like built-in “We use a questionnaire with GPS, Push to Talk, and expandable memory, clients to figure out the value of the benefits we believe they will get,” for small businesses everywhere. says Philip London, senior tax part- ner with Freeman & Davis. “Com- panies need to see many permuta- > Built-in GPS navigation tions to decide whether certification is worth pursuing.” > “Pearl-like” trackball and full QWERTY keyboard BUY 3 AND GET A STEP 4 > Access to work and personal email $100 VISA® Try for a twofer. REWARD CARD > Global connectivity in 125 countries certified empire zone business- with 1- or 2-year service es may be eligible for additional in- agreement. Mail-in rebate form > Runs on America’s largest high-speed wireless and proof of purchase required. centives from the New York City data network Department of Small Business Ser- vices.These incentives include sales tax refunds, property tax abate- BlackBerry 8800 ments and utility discounts on gas, from Cingular electric and telephone services. Companies that are located in the zone but not certified may also be eligible for a host of tax breaks from New York City’s Industrial and Commercial Incentive Pro- gram. Visit the agency’s Web site, www.nyc.gov/html/sbs, for more information.

STEP 5 Keep Albany in the loop. Go to www.cingular.com/blackberry-promo and request a consultation with a Cingular Small Business Advisor or visit a Cingular store near you. companies must factor in time to fill out annual reports that provide updates on job growth and invest- *Cingular also imposes monthly a Regulatory Cost Recovery Charge of up to $1.25 to help defray costs incurred in complying with State and Federal telecom regulation; State and Federal Universal Service charges; and surcharges for customer-based and revenue-based state and local assessments on Cingular. These are not taxes or government-required charges. ment. These must be filed with the state. “If companies fail to update Coverage is not available in all areas. Limited-time offer. See store for complete details. Other conditions and restrictions apply. See contract and rate plan brochure for details. Subscriber must live and have a mailing address these reports, the state can decertify within Cingular’s owned network coverage area. Up to $36 activation fee applies. Offer available at participating locations. Early Termination Fee: None if cancelled in the first 30 days; thereafter $175. Some agents impose additional fees. Unlimited Voice Services: Unlimited voice services are provided solely for live dialog between two individuals. Offnet Usage: If your minutes of use (including unlimited services) on other carriers’ networks (“offnet usage”) a zone business,”says Carl Hum,di- during any two consecutive months exceed your offnet usage allowance, Cingular may at its option terminate your service, deny your continued use of other carriers’ coverage, or change your plan to one imposing usage charges for rector of the Mayor’s Office of In- offnet usage. Your offnet usage allowance is equal to the lesser of 750 minutes or 40% of the Anytime minutes included with your plan. Rebate Debit Card: Allow 10–12 weeks for rebate debit card. Rebate debit card not available at dustrial and Manufacturing Busi- all locations; void where prohibited, taxed, or restricted. Must be customer for 30 consecutive days. Must be postmarked by 6/15/07. VISA Card: Cingular VISA reward card offer valid only with purchase of a qualified Cingular device with activation on a qualified service plan from a participating Cingular Wireless store, DMDR, or Authorized Agent between February 20 – May 15, 2007. Sales tax calculated based on price of unactivated equipment. Certain email systems nesses, which oversees the zone may require additional hardware and/or software to access. The BlackBerry and RIM families of related marks, images, and symbols are the exclusive properties of and trademarks or registered trademarks of Research In Motion Limited program. – used by permission. RIM and Research In Motion are registered in the U.S. Patent and Trademark Office. Other trademarks and service marks are the property of their respective owners. ©2007 AT&T Knowledge Ventures. All rights reserved. AT&T, AT&T logo, Cingular, and Cingular logos are trademarks of AT&T Knowledge Ventures and/or AT&T affiliated companies. COMMENTS? [email protected]

24 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 25 4/5/2007 5:54 PM Page 1

REPORT SMALL BUSINESS

as next year. “We refined and mod- Footwear maker steps ernized the Nina image,” says Mr. Silverstein. “Now we have a clear focus on what the brand is about, out of its niche to grow who the customer is and what the image should be.”

er, that had changed. An ongoing In with the new Nina offers everyday consolidation in the shoe industry IN A NUTSHELL as the firm has added shoes for younger left Nina facing off with fewer but more trendy shoes,such as bigger competitors, companies that NINA the platform high-heeled women, climbs could easily outspend it on market- Cassie at $99.95 and the into bigger market ing and introducing new styles. In EMPLOYEES open-toed Carina GS at response, Mr. Silverstein decided 1993 47 in New York; 16 in China $89.95 aimed at women that his company must change. 2006 110 in United States; 50 in from 16 to 30, the average BY VICTORIA RIVKIN To help lead the charge, in 2002 China age of a Nina customer has he brought in Bob Webber, a senior come down by over 10 in 1993, Nina Footwear was doing executive from Kenneth Cole, as NINA’S HERITAGE Founded on years. Those younger, just fine. It boasted revenues of near- Nina’s new design director. Two Manhattan’s Prince Street by more fashion-conscious ly $50 million, courtesy of its long- years later, Mr. Silverstein tapped current owner’s father and uncle consumers are quicker to THE time dominance of Joel Oblonsky,who had headed two FIRST PRODUCT A fashion clog, latch on to new styles and GRADUATES its niche—women’s units within Nine West Group, as similar to one that the founders’ to chuck the old, which Second in a shoes for proms, Nina’s president. translates directly into series on firms father designed and made in that have weddings and other Cuba in the 1930s higher sales for companies special occasions. Rising in the ranks like Nina. outgrown the MAIN U.S. OUTLETS ranks of small Nina even boasted with a blizzard of trendy new Nordstrom, “If you don’t have the A MAGAZINE AD from a national campaign for Nina shoes. businesses of being the exclu- everyday shoes aimed at a younger Macy’s, Lord & Taylor and Dillard’s fashion component, it is sive provider of audience and a big marketing blitz harder to turn product shoes to the Miss under the slogan “Everyday glamour faster,” says Mr. Oblonsky. and materials they once did. Universe pageant. for your everyday life!” the two men Last year, sales topped $150 mil- Nina now launches half a dozen Mr. Silverstein even updated his When 34-year-old Scott Silver- helped Nina break out of its niche. lion. Ranked as the nation’s 30th- new shoe collections every six company’s logo. He kept the com- stein took over that year from his fa- Once the business had a broader largest shoe brand as recently as four months, compared with two or pany’s name spelled out in script but ther and uncle, the company virtu- market to feed on, sales exploded, years ago by NPD Fashionworld, three collections annually in the old brought back a golden crown that ally ran itself. and the longtime small firm rocket- Nina today ranks 13th; it is expect- days.What’s more, those shoes now had been used in the 1960s, and Less than a decade later, howev- ed into the ranks of midsize firms. ed to break into the top 10 as soon come in twice the number of colors See NINA on Page 26

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April 9, 2007 | Crain’s New York Business | 25 CNYB 04-09-07 A 26 4/5/2007 5:28 PM Page 1

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at least two more on the way. count for 10% of the total. The company also tailors its pro- In keeping with his company’s Nina is stepping up motions and even its offerings to fit hipper image and lineup, last month each market. Paying attention to Mr. Silverstein moved Nina to a differences in markets has helped 35,000-square-foot space on Union Continued from Page 25 6%, and took out full-page ads in Nina double Midwestern sales, for Square, abandoning the company’s added “New York” and “Est. 1953.” magazines such as Elle and In Style. example, in the last three years. hyper-stodgy, longtime location Minuto Zammit Smalls “The additions say that Nina is a “Our philosophy is the right as- across from Tiffany on Fifth Avenue. footwear company with a serious Macy’s connection sortment at the right location at the In the next two years,Mr.Silver- heritage in the world’s fashion epi- “their national advertising cam- right time,” says Mr. Oblonsky. stein plans to open more stores over- center,” says Darryl Cilli, a partner paign and the greater exposure have The company has also pushed seas, and his first four stand-alone at 160over90, which updated the helped strengthen the positioning into overseas markets. Although stores in the United States as well— logo and the company’s advertising that they have in our stores,” says manufacturing went offshore over all in the New York area. He aims to campaign. Carol Baiocchi, a divisional mer- 20 years ago,it was only in 2002 that double the company’s sales in the Funk & Avsar Wender To get his message out, Mr. Sil- chandising manager at Macy’s West. Nina started selling abroad. next five years. verstein doubled Nina’s marketing Nina operates in-store boutiques at Today, the shoes are available in budget as a percentage of revenue to Macy’s stores in three cities and has 25 countries. International sales ac- COMMENTS? [email protected]

O’Connell, Nordquist, Contreras AWARDS SEEKING TOP ENTERPRISES IN NEW YORK CRAIN’S NEW YORK BUSINESS seeks nominations for its 12th annual Small Business Awards. The six winners will have distinguished themselves by showing a pattern of growth in their businesses and by contributing to the quality of life in their communities. Firms must be for-profits that have been in business for at least three years. They must employ no

ATT name, design and related marks are trademarks of Hyatt Corporation. ©2007 Hyatt Corporation. design and related marks are trademarks of Hyatt Corporation. name, ATT All rights reserved. more than 150 people, have HY annual sales of no more than $25 million and be head- quartered in New York City. Companies may nominate themselves or may be nominated by a business contact. The entry deadline is noon on May 14. Winners will be profiled in the Aug. 13 issue. To nominate a business, send the company’s name and address and a description of its business and civic accomplish- ments to Crain’s Small Business Awards, 711 Third Ave., New York, NY 10017. The Information can also be e-mailed to [email protected] or faxed to (212) 210-0799. Among last year’s honorees were Lexy Funk and Vahap Avsar, founders of trendy retailer Brooklyn Industries; David Wender of WhenTech, a company that makes software used by options traders; and Jeffrey Smalls, whose eponymous elec- trical contracting firm has found CHANGE IS GOOD. COMPLETE AND TOTAL TRANSFORMATION, BETTER. success specializing in transit THE NEWLY RENOVATED HYATT REGENCY O’HARE. projects. Winners also included Marco Minuto, whose Red Castle Bakeries churns out meat patties in ever-increasing numbers and It’s a $60 million renovation as grand as the space. A dramatic atrium lobby welcomes guests to 10 floors of stunning descriptions; Gary Zammit, who décor and modern furnishings. There’s the sleek new O’H restaurant and Red Bar, plus a new 24-hour Stay Fit gym bought a sleep laboratory and and Regency Club. And of course, state-of-the-art business capabilities, including 24-hour FedEx Kinko’s, Wi-Fi, turned it into Clinilabs, a big drug ® tester; and James O’Connell, a cutting-edge business center and spectacular new spaces for meetings large and small. Feel the Hyatt Touch. Clifford Nordquist and Charles For more information, call 847 696 1234 or visit ohare2007.hyatt.com. Contreras, whose Just Bagels Manufacturing has grown to have a nationwide reach.

26 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 27 4/5/2007 5:56 PM Page 1

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Getting licensed by the MTA was an adventure. “It took months just to figure out who the right HITS & MISSES person was to talk to,” Ms. Dickinson says. “But once I found Fledgling firms’ key moves by Lisa Goff them, the process went very smoothly.” Her selection of MetroCard tote bags and zipper pouches sells for $12 to $48 on the Web site and at a growing list of Giving city visitors the runaround local retailers. Revenues were just $10,000 in here are many ways to tour the city: walking, riding 2006—Ms. Dickinson still in a bus or carriage and now—thanks to Michael freelances for architects—but an Gazaleh—running. expanded product line should boost T sales to more than $50,000 this NYC Run Mr. Gazaleh’s company, , offers guided running year. Ms. Dickinson recently tours of the city. Individual pricing acquired a partner, and she plans to starts at $60 for six miles, with hire a sales rep soon. additional miles at $6 each. About HITS 95% of his customers are tourists. Right price, right place “These are people who don’t ms. dickinson originally priced her want to give up their daily run while tote bags at $70 and pitched them they’re traveling, but don’t feel they to pricey handbag boutiques, but she quickly realized that tourist know the city well enough to run on shops would be a better fit. She their own,” says Mr. Gazaleh, a slashed her prices, and her bags are istockphoto licensed chiropractor. now everywhere from the New York Public Library shop to several He recently opened a Chicago operation and hopes to Manhattan souvenir stores. expand soon to Austin,Texas, and Denver.This year’s She has also mined her MTA revenues are expected to be $30,000. licensing experience. Last month, the company launched a line of jigsaw puzzles HITS more New Yorkers. A listing in Time featuring the MTA’s Publicist to the rescue Out New York hasn’t helped. Mr. subway map and mr. gazaleh’s initial posting on Gazaleh plans to offer group runs MetroCard. Craigslist brought just a trickle of for weekend nights or late Sunday Future customers. So he hired a publicist, mornings—outings that would puzzles will who got a story into DailyCandy, the finish up at a restaurant or bar. feature New trend-spotting e-mail service. “The “I’m looking for places that will York images response was overwhelming,” he says. be happy to serve a bunch of sweaty and, NYC Run’s Web site details people,” he says. possibly, various routes, but Mr. Gazaleh New Yorker customizes each run. “Some people covers and a want to run seven-minute miles for MetroCards become map of the Go to newyorkbusiness-risingstars.com 18 miles, others want to run two a fashion item Washington, D.C., Metro. for photos, profiles and for the first time ever candid miles at 12 minutes,” says Mr. Gazaleh, who employs five other or years, Sarah Dickinson MISSES video interviews of the honorees. guides on a fee-per-run basis. turned out belts, purses and More products, please Memorable tours include one Fjewelry as more of a hobby though the creative bags for an Argentinean businessman than a sideline. But that changed grabbed retailers, Ms. Dickinson who wanted to run to Yankee last October, when she made a clear had nothing else to sell them. “Just Stadium because he thought soccer plastic tote bag lined with gold- having one product to show was a was played there. and-blue MetroCards.The mistake,” she says. “If I had had a enthusiastic response from broader line to begin with, I could MISSES consumers spurred her to quit her have made more sales.” Where are the locals? job at an architecture firm and start the business is struggling to attract her own business, Salvygolds. COMMENTS? [email protected]

A bank that specializes in small some automated response from a branch manager.” 30-year career in personal and business checking, The branches are geared to the finance convinced Charles and mortgages. individual needs of their AAntonucci that there was “My customers are not a profit communities.The Bay Ridge, money in small business lending. center for big banks, but you can Brooklyn, branch, for example, The recent wave of consolidation make money in this market if you specializes in loans of less than in the banking industry gave him emphasize customer service,” Mr. $500,000 for the small firms that an opportunity to prove it. Antonucci says. predominate in the area. “There are giant banks and little banks, but a void in the HITS MISSES middle,” Mr. Antonucci says. Personal service Growing too fast In 2005, he acquired Park customers at each branch have the bank expanded so rapidly Avenue Bank, a wholesale lender access to bank executives, the first year that regulators told with no retail customers, and including Mr. Antonucci—who Mr. Antonucci to slow down. He converted it into a community often meets with small business now plans to add no more than bank. He opened three new clients in person. two branches a year. branches the first year and now “Half-million-dollar He has set aside his original employs 62 people. customers want the same growth strategy, which was based The bank’s core activity is treatment as half-billion-dollar on offering borrowers lower making small business loans of $2 customers, and they’re willing to interest rates. “That proved to be million and $3 million.The pay for it,” he says. “Our fees are a costly mistake,” Mr. Antonucci owners tend to bring all their not the cheapest, but our says. First-year revenues were other banking accounts, including customers are getting me, not $22 million. nb15p28_29cls.qxp 4/5/07 4:11 PM Page 28

BOOKKEEPING SERVICES FINANCIAL PLANNER PUBLIC & LEGAL NOTICES

Notice of Qualification of Prudential Bache Notice of Qualification of Morgan Stanley NOTICE OF FORMATION of Animal Vocation Securities, LLC. Authority filed with Secy. of Managed Futures HV, L.P. Authority filed with Resources, LLC. Articles of Organization State of NY (SSNY) on 12/31/03, as amended. NY Dept. of State on 3/12/07. Office location: filed with the Secretary of State of NY Office location: NY County. LLC formed in NY County. Principal business address: 330 (SSNY) on 1/12/07. Office location: NY Delaware (DE) on 3/10/03. SSNY designated Madison Ave., 8th Fl., NY, NY 10017. LP County. SSNY has been designated as as agent of LLC upon whom process against formed in Delaware (DE) on 2/22/07. NY Secy. agent upon whom process against it may it may be served. SSNY shall mail process to of State designated as agent of LP upon be served. The Post Office address to BUSINESS SERVICES the principal office of the LLC: 1 New York whom process against it may be served. NY which the SSNY shall mail a copy of any Plaza, 13th Fl., Law Dept., NY, NY 10292. Secy. of State shall mail process to: c/o CT process against the LLC served upon Arts. of Org. filed with DE Secy. of State, Div. Corporation System (CTCS), 111 8th Ave., him/her is C/O the LLC, P.O. Box 4178, of Corps., Townsend Bldg., Dover, DE 19903. 13th Fl., NY, NY 10011. DE address of LP: Grand Central Station, New York, NY Purpose: any lawful activity. CTCS, 1209 Orange St., Wilmington, DE 10163. Purpose of LLC: to engage in any 19801. Name/address of genl. ptr. available lawful act or activity. To place your classified NEW YORK BURGER CO. FRANCHISING from SSNY. Cert. of LP filed with DE Secy. of LLC Articles of Org. filed NY Sec. of State State, 401 Federal St., Dover, DE 19901. NOTICE OF FORMATION OF LIMITED LIABILITY ad call John Gallagher (SSNY) 2/15/07. Office in New York Co. Purpose: any lawful activity. COMPANY. NAME: CHADERTON ADVISORS,LLC. SSNY desig. agent of LLC upon whom Articles of Organization were filed with the @ 212-210-0189 process may be served. SSNY shall mail Notice of Qualification of Praesidian Capital Secretary of State of New York (SSNY) on copy of process to Einbinder & Dunn LLP, Management II, LLC. Authority filed with NY 02/01/07. Office location: New York County. RELOCATION SERVICES 104 W. 40th St., NY, NY 10018. Purpose: Dept. of State on 3/5/07. Office location: NY SSNY has been designated as agent of the Any lawful purpose. County. LLC formed in Delaware (DE) on LLC upon whom process against it may be 3/2/07. NY Secy. of State designated as agent served. SSNY shall mail a copy of process Notice of formation of CHINESE WAH LAI of LLC upon whom process against it may be to the LLC, 845 3rd Avenue, 6th Floor, New LLC a NYS LLC Formation filed with SSNY served. NY Secy. of State shall mail process York, New York 10022. Purpose: For any on 11/16/06. Off. Loc.: New York Co. SSNY to the principal business address of the LLC: lawful purpose. designated as agt. of LLC, upon whom 419 Park Ave. South, NY, NY 10016. DE process may be served. SSNY shall mail address of LLC: c/o Corporation Service Co., Notice of Formation of 62 PEARL STREET copy of process to: The LLC, 20-22 Mulberry 2711 Centerville Rd., Ste. 400, Wilmington, ASSOCIATES, LLC, a domestic Limited Street, New York, NY 10013. Purpose: Any DE 19808. Arts. of Org. filed with DE Secy. of Liability Company (LLC). Articles of Lawful purposes. State, 401 Federal St., Ste. 4, Dover, DE 19901. Organization filed with Secretary of State Purpose: any lawful activity. on 11/29/06. NY Office location NEW YORK Notice of formation of DP 10 West 33RD LLC. County. Secretary of State is designated as Arts. Of Org. filed with Secty. Of State of NY Notice of Qualification of Tourneau, LLC. agent upon whom process against the LLC (SSNY) on 3/21/2003. Office location: New Authority filed with NY Dept. of State on may be served. Secretary of State shall York County. SSNY designated as agent of 3/6/07. Office location: NY County. LLC mail a copy of any process against the LLC LLC upon whom process against it may be formed in Delaware (DE) on 3/1/07. NY served upon him/her to C/O THE LLC, 211 served. SSNY shall mail process to: c/o Diane Secy. of State designated as agent of LLC W. 56TH STREET, STE. 10M, NEW YORK, REAL ESTATE Pachetti, 485 Park Ave., NY, NY 10022. upon whom process against it may be NY 10019. Purpose: To engage in any lawful Purpose: any lawful activity. served. NY Secy. of State shall mail process act or activity. to: 3 E. 54th St., NY, NY 10022, principal AUCTION COMMERCIAL PROPERTY business address of the LLC. DE address of DCD ASSET MANAGEMENT LLC App. For Notice of Formation: 192 Surf LLC. Art. of LLC: c/o Corporation Service Co., 2711 Org. filed with Sec. of State of NY (SSNY) Auth. filed NY Sec. of State (SSNY) 2/23/07. 190 Ac Approved Luxury **** 326 North Michigan Avenue **** Centerville Rd., Ste. 400, Wilmington, DE LLC was organized in DE on 11/18/05. Office New Bldg. MAG MILE on 2/22/07. Office loc.: New York County. 19808. Arts. of Org. filed with DE Secy. of Subdivision Sullivan Co., NY SSNY designated as agent of LLC upon in NY Co. SSNY desig. As agent of LLC upon ** 4,000-16,000-80,000 Sq. Ft. ** State, 401 Federal St., Ste. 4, Dover, DE 19901. whom process may be served. SSNY to mail “Highland Estates” 16 Lots whom process against it may be served. Purpose: any lawful activity. Loukas Development (312) 938-1500 SSNY shall mail process to: c/o David Selig, copy of process to 11 E. 44th St., Ste. 901, NY, NY 10017. Principal office at 2711 Incl. 40 Ac Commercial 529 West 42nd Street, Suite 9-M, NY, NY Notice of Qualification of Key Energy Services, OFFICE SPACE 10036. Purpose: Any lawful activity. Centerville Rd., Ste. 400, Wilmington, DE Potential for 9 more lots! Sells LLC. Authority filed with NY Dept. of State on 19808. Cert. of Org. filed with SSDE, John G. April 28 @ 4:37PM “As-One” MIDTOWN COMMERCIAL 1/17/07. Office location: NY County. LLC Townsend Bldg., 401 Federal St., Dover, DE Notice of Qualification of AGBH Holtsville, formed in Texas (TX) on 12/31/06. Secy. of 19901. Purpose: Any lawful purpose. NO MINIMUM STARTING BID! REAL ESTATE L.L.C. Authority filed with NY Dept. of State on State designated as agent of LLC upon whom For All office & loft SPACES 800-243-0061 3/8/07. Office location: NY County. Principal process against it may be served. Secy. of Notice of Formation of 65-15 ALDERTON, 500-50,000 SF State shall mail process to: c/o CT AbsoluteAuctionRealty.com business address: c/o Angelo Gordon & Co., LLC, a foreign Limited Liability Company UNDER MARKET SUBLETS-NO FEE! L.P., 245 Park Ave., 26th Fl., NY, NY 10167. Corporation System, 111 8th Ave., NY, NY (LLC). Articles of Organization filed with Search our listings @ www.midcomre.com LLC formed in Delaware (DE) on 2/22/07. NY 10011, registered agent upon whom process Secretary of State on 1/17/07. NY Office Secy. of State designated as agent of LLC may be served. TX and principal business www.newyorkbusiness.com Call Paul 212 947-5500 x 100 location: NEW YORK County. Secretary of upon whom process against it may be served. address of the LLC: 1301 McKinney, Ste. State is designated as agent upon whom NY Secy. of State shall mail process to: CT 1800, Houston, TX 77010. Arts. of Org. filed process against the LLC may be served. OFFICE SPACE Corporation System, 111 8th Ave., NY, NY with TX Secy. of State, 1019 Brazos, Austin, Secretary of State shall mail a copy of any 10011, registered agent upon whom process TX 78701. Purpose: any lawful activity. process against the LLC served upon may be served. DE address of LLC: c/o The him/her to C/O THE LLC, 21 E. 40TH ST., EXECUTIVE OFFICE SUITES Corporation Trust Co., 1209 Orange St., THREE KAYAS LLC Articles of Org. filed 12TH FL., NEW YORK, NY 10016. Purpose: Wilmington, DE 19801. Arts. of Org. filed with NY Sec. of State (SSNY) 11/7/06. Office in To engage in any lawful act or activity. DE Secy. of State, 401 Federal St., Dover, DE NY Co. SSNY desig. agent of LLC upon 19901. Purpose: any lawful activity. whom process may be served. SSNY shall 212.573.0909 mail copy of process to 257 W. 39th St., DIGITAL PHALANX, LLC, Articles of Org. filed N.Y. Sec. of State (SSNY) 17th day of January, Notice of Formation of RHR West 100th Street Studios 39 - 10th Fl., NY, NY 10018-3106. Purpose: Any lawful purpose. 2007. Office in New York Co. at 9 East 75th FurnishedOfficesNYC.com LLC. Arts. of Org. filed with Secy. of State of Street, Suite 2C, New York, New York 10021. NY (SSNY) on 3/31/06. Office location: NY Notice of Qualification of Squam Ventures, SSNY desig. agt. upon whom process may be County. SSNY designated as agent of LLC served. SSNY shall mail copy of process to 9 upon whom process against it may be served. LLC, App. for Auth. filed Sec'y of State (SSNY) 10/31/02. Office location: NY East 75th Street, Suite 2C, New York, New EXECUTIVE RECRUITER SSNY shall mail process to: c/o CT Corporation York 10021. Reg. Agt. upon whom process System, 111 8th Ave., NY, NY 10011, registered County. LLC org. in DE 10/30/02. SSNY designated as agent of LLC upon whom may be served: Spiegel & Utrera, P.A., P.C. 45 agent upon whom process may be served. John Street, NYC 10038 1 800 576-1100 Purpose: any lawful activity. process against it may be served. SSNY POSITION AVAILABLE shall mail copy of process to 645 Fifth Ave., Purpose: Any lawful purpose. 18th Fl., NY, NY 10022, the principal office Bronx Kids Exec. Dir. Account Executive - Notice of Formation of 40 Mercer LLC. Arts. addr. of LLC. Cert. of Form. on file: SSDE, Notice of Qualification of WBM 475 Fifth Owner Bronx Nonprofit Foundation seeks Exec. Dir. Modern Healthcare/Modern Physician of Org. filed with NY Dept. of State on LLC. Authority filed with Secy. of State of N.Y. with exper. in fundraising, admin. management, Townsend Bldg., Dover, DE 19901. Modern Healthcare, a weekly business 2/2/07. Office location: NY County. Secy. of Purpose: any lawful activities. (SSNY) on 2/28/07. Office location: NY County. proposal evaluation and working with Boards. magazine for top healthcare State designated as agent of LLC upon LLC formed in Delaware (DE) on 2/20/07. Excellent written and verbal communication industry executives, is seeking a whom process against it may be served. Notice of Formation of Manhattan SSNY designated as agent of LLC upon whom skills a must. Salary $45K-$55K. Email cover motivated Account Executive to Secy. of State shall mail process to: c/o process against it may be served. SSNY shall letter and resume in MS Word to: handle print and online sales for Endocrinologist PLLC. Arts. of org. filed with the East Coast territory. This person Marianne Schmitt Hellauer, DLA Piper US Secy. of State of N.Y. (SSNY) on 1/25/07. mail process to: c/o National Registered [email protected] LLP, 6225 Smith Ave., Baltimore, MD 21209. (Please limit resume submission to 3 pages or less) will be located in the New York Office location: NY County. Principal business Agents, Inc., 875 Avenue of the Americas, Ste. City office. Ideal candidate should Purpose: any lawful activity. address: 130 West 12th Street, Ste 7D, NY, 501, NY, NY 10001, registered agent upon display excellent written and NY 10011. SSNY designated as agent of whom process may be served. DE address of Director — Marubeni America verbal communication skills and Notice of Formation of DPA HAVEN, LLC. PLLC upon whom process against it may LLC: 160 Greentree Drive, Ste. 101, Dover, DE Corporation seeks a Director in the display strong time management and Arts. of Org. filed with Secy. of State of NY be served. SSNY shall mail copy of any 19904. Arts. of Org. filed with DE Secy. of organizational skills. This position (SSNY) on 1/14/2005. Office location: NY State, 401 Federal St., Ste. 4, Dover, DE 19901. Investment Support Team in New York requires strong prospecting skills process against PLLC served upon: 43 County. SSNY designated as agent of LLC Purpose: any lawful activity. City. M.B.A., BA/ BS or foreign equivalent and 50% travel. Must have 3 - 5 Greenwich Avenue, Apt. 1, NY, NY 10014. years related sales experience and upon whom process against it may be Purpose: to practice medicine. with experience in managing M & A knowledge of the healthcare served. SSNY shall mail process to: c/o Name of For. LLC: LDVF II Plaistow LLC. Appl. transactions required. Japanese language industry is a plus. Please respond The Dermot Company, 320 W. 57th St., Notice of Qualification of Lion Hound Capital for Auth. filed with Sec. of State of NY: 2/7/07. with salary history, cover letter skills also required. Send resume by mail: 5th Fl., NY, NY 10019. Term: until 1/7/2099. GP LLC. Authority filed with NY Dept. of State Jurisd. and date of org.: DE 1/3/07. NY State and resume at our Web site at Purpose: any lawful activity. on 1/17/07. Office location: NY County. LLC office loc.: NY Cty. Sec. of State of NY designated Attn: Masa/Ref. # NM-IST, HR Team, www.crain.com. formed in Delaware (DE) on 1/11/07. NY Secy. as agent of LLC upon whom process may be Marubeni America Corporation, Crain Communications, Inc offers a Notice of Formation of 164-11 Jamaica of State designated as agent of LLC upon served. Sec. of State shall mail copy of 450 Lexington Ave., NYC 10017 competitive salary and benefits, Avenue LLC. Arts. of Org. filed with NY Dept. whom process against it may be served. NY process to principal business location of LLC: profit sharing, and a friendly work Secy. of State shall mail process to the principal 1345 Avenue of the Americas, NY, NY 10105. environment. We thank you for your of State on 2/27/07. Office location: NY County. Secy. of State designated as agent of business address of the LLC: 106 Seventh Addr. of LLC in DE is c/o National Corporate Research Analyst focusing on HY credit interest in Crain Communications and invite you to continue to visit LLC upon whom process against it may be Ave., #2A, NY, NY 10011. DE address of LLC: Research, Ltd., 615 South DuPont Hwy., with emphasis on healthcare, auto and retail. our Web site as positions are served. Secy. of State shall mail process to: c/o The Corporation Trust Co., 1209 Orange Dover, DE 19901. Authorized office in DE NYC job location. Written résumés only. updated regularly. c/o Wharton Realty, 20 E. 46th St., Ste. 1200, St., Wilmington, DE 19801. Cert. of Form. filed where Cert. of Form. is filed: DE Sec. of State, Millennium Partners LP, attn: Lana Portnoy, Crain Communications is an equal NY, NY 10017, principal business address of with DE Secy. of State, Townsend Bldg., Dover, Townsend Bldg., Dover, DE 19901. Purpose: 666 Fifth Ave., 8th fl., NY, NY 10103 opportunity employer. the LLC. Purpose: any lawful activity. DE 19901. Purpose: any lawful activity. any lawful activity.

28 | Crain’s New York Business | April 9, 2007 nb15p28_29cls.qxp 4/4/07 4:45 PM Page 29

PUBLIC & LEGAL NOTICES LUXURY PROPERTIES

Notice of Formation of Kitchen Table Notice of Formation of Mommies On Demand, NOTICE OF REGISTRATION of Holtzman SOUTHAMPTON Associates, LLC, Art. of Org. filed Sec'y of LLC. Articles of Org. filed with NY Sec. of Helfman, LLP. Certificate filed with the NY State (SSNY) 11/21/03. Office location: NY State (“SSNY”) on 8/1/06. Office in New Department of State on 4/22/05. Office County. SSNY designated as agent of LLC York County. SSNY is designated agent for Location: NY County. SSNY designated as upon whom process against it may be service of process. SSNY shall mail process agent of LLP with whom process of service served. SSNY shall mail copy of process to principal business address: 440 West End may be served. SSNY shall mail copy of to c/o Gary I. Fields, Esq., 8 Haven Ave., Avenue, Suite 14C, NY, NY 10024. Purpose: process to Harriet Holtzman, 345 Eighth Ste. 209, Port Washington, NY 11050. Any lawful purpose. Avenue, #5F, New York, NY 10001. Principal Purpose: any lawful activities. Business Address: 350 Seventh Avenue, Notice of formation of CITY CHOW CAFÉ V, Suite 604, New York, NY 10001. Purpose: Notice of formation of China Solutions LLC. LLC a NYS LLC Formation filed with SSNY any lawful activities Art of Org filed with Secretary of State of NY on 10/31/00. Off. Loc.: New York Co. SSNY (SSNY) on 23 March 2005. NY office location: designated as agt. of LLC, upon whom Notice of Formation of O & M Partners, LLC, New York County. SSNY designated as agent process may be served. SSNY shall mail Art. of Org. filed Sec'y of State (SSNY) 1/5/05. upon whom process against LLC may be copy of process to: The LLC, 16 West 45th Office location: NY County. SSNY designated served. Address to which SSNY shall mail Street, New York, NY 10036. Purpose: Any as agent of LLC upon whom process against it process against LLC is: c/o Nestor Gounaris Lawful purposes. may be served. SSNY shall mail copy of process 169E 78 Street NY NY 10021. Purpose is to David Mandy, 26 East 93rd St., NY, NY 10128. any lawful activity. Notice of Formation Regatta New York Realty I, Purpose: any lawful activities. LLC art. of org. filed Secy. of State NY (SSNY) 10/24/06. Off. loc. in NY Co. SSNY designated Notice of Qualification of HedgeForum Icahn, as agent of LLC upon whom process may be Notice of Formation The Center for Cultural LLC. Authority filed with NY Dept. of State served. SSNY shall mail copy of process to: Competency and Professional Development, on 1/10/07. Office location: NY County. LLC 300 Rector Pl, Ste 3R, NY, NY 10280. LLC art. of org. filed Secy. of State NY (SSNY) formed in Delaware (DE) on 1/3/07. NY Purpose: Any lawful purpose. 1/23/07. Off. loc. in NY Co. SSNY designated Secy. of State designated as agent of LLC as agent of LLC upon whom process may be upon whom process against it may be served. SSNY shall mail copy of process to: served. NY Secy. of State shall mail process Notice of Qualification of PCA Real Estate 900 Riverside Dr, 6F, NY, NY 10032. Purpose: to: c/o Citigroup Alternative Investments Asset Management, LLC. Authority filed with Any lawful purpose. LLC, 731 Lexington Ave., 28th Fl., NY, NY NY Dept. of State on 3/20/07. Office location: 10022, principal business address of the NY County. LLC formed in Delaware (DE) on 2/5/07. NY Secy. of State designated as agent Notice of Formation of MANTAS WRIGHT LLC. DE address of LLC: c/o National PHOTOGRAPHY, LLC, a domestic Limited Corporate Research, Ltd., 615 S. DuPont of LLC upon whom process against it may be served. NY Secy. of State shall mail process Liability Company. Arts. of Org. filed with Hwy., Dover, DE 19901. Arts. of Org. filed the SSNY on 01/16/07. Office location: New with DE Secy. of State, Div. of Corps., Federal to: One Market St., Spear Tower Suite 3600, San Francisco, CA 94105, principal business York County. SSNY has been designated as & Duke of York Sts., Dover, DE 19901. agent upon whom process against the LLC Purpose: any lawful activity. address of the LLC. DE address of LLC: c/o Corporation Service Co., 2711 Centerville Rd., may be served. SSNY shall mail a copy of Ste. 400, Wilmington, DE 19808. Arts. of Org. process to: The LLC, 122 Duane St., Apt Notice of Formation of WARREN & NEPHEW, filed with DE Secy. of State, 401 Federal St., 2B, New York, NY 10007. Purpose: Any LLC, a domestic Limited Liability Company Dover, DE 19901. Purpose: any lawful activity. Lawful Purpose. Latest date upon which (LLC). Articles of Organization filed with LLC is to dissolve: No Specific Date. Secretary of State on 4/9/03. NY Office location: NEW YORK County. Secretary of Notice of Formation of Loft Brands L.L.C. Arts. of Org. filed with Secy. of State of NY (SSNY) Notice of Formation of Lighthouse Life State is designated as agent upon whom Agency, LLC. Arts. of Org. filed with NY process against the LLC may be served. on 5/19/06. Office location: NY County. SSNY designated as agent of LLC upon whom Dept. of State on 2/13/07. Office location: Secretary of State shall mail a copy of any NY County. Principal business address: 420 process against the LLC served upon him/her process against it may be served. SSNY shall mail process to: Bruce J. Grossman, Esq., 301 Lexington Ave., Ste. 1430, NY, NY 10170. to C/O DOUGLAS A. LOBEL, P.C., 25W. 43RD Secy. of State designated as agent of LLC ST. NEW YORK, NY 10036. Purpose: To Market St., Lemoyne, PA 17043. Purpose: any lawful activity. upon whom process against it may be engage in any lawful act or activity. served. Secy. of State shall mail process to: Notice of formation of OPM MANHATTAN c/o Stursberg & Associates, LLC, 405 NOTICE OF FORMATION OF The LLC a NYS LLC Formation filed with SSNY Lexington Ave., Ste. 4949, NY, NY 10174. WonderFactory LLC. Articles of Organization on 12/23/05. Off. Loc.: New York Co. SSNY Purpose: any lawful activity. filed with the Secretary of State of New York designated as agt. of LLC, upon whom process (SSNY) on 02/24/2005. N.Y. Office Location: may be served. SSNY shall mail copy of process Notice of Formation of KH Radiology New York County. SSNY has been designated to: The LLC, 99 John St., #2310, NY, NY 10038. Holdings, L.P., Cert. of LP filed Sec'y of State as agent of LLC upon process against it may Purpose: Any Lawful purposes. (SSNY) 3/19/02. Office location: NY County. be served. The P.O. address to which the SSNY designated as agent of LP upon whom SSNY shall mail a copy of any process Notice of Formation of Kenmare Square process against it may be served. SSNY shall against the LLC served upon him/her is C/O Associates, LLC; Arts of Org., filed with NY mail copy of process to Michael Abiri, M.D., the LLC David K. Leitner Esq., Troutman Sec. of State (“SSNY”) 06/01/2004. Office in c/o Mid-Kings Imaging, Inc., 1780 Broadway, MIAMI BEACH/FLORIDA Sanders LLP., 405 Lexington Avenue, New NY County; SSNY designated agent for service Ste. 1100, NY, NY 10019. Name/addr. of each York, NY 10174. The Address of the LLC is Advertise on of process with copy mailed to Thomas J. gen. ptr. avail. at SSNY. Purpose: any lawful 28 West 25th Street, New York, NY. 10010. TRUMP OCEANFRONT CONDOS Malmud, Esq., c/o Pryor Cashman Sherman & activities. Latest date 12/31/2042. OWN YOUR LUXURY CONDO TODAY! Purpose of LLC: any lawful act or activity. Flynn LLP, 410 Park Avenue, 10th Floor, New www.newyorkbusiness.com TRUMP GRANDE & TRUMP TOWERS York, NY 10022, All lawful business purposes. Notice of Qualification of Rector 469 LLC. Notice is hereby given that a license, number Buy directly from the Developer & Save $$ Call John Gallagher Authority filed with NY Dept. of State on 1190244 for beer, liquor and wine, has been Furnished Condo Hotel units from $325k Notice of Qualification of EOS Education, applied for by Lima’s Taste Ceviche Bar, Inc. to 1-4 Bedrm Residential Condos from $875k 10/30/06. Office location: NY County. LLC Outcomes, Science LLC. Authority filed with formed in Delaware (DE) on 10/17/06. Secy. sell beer, liquor and wine at retail in a restaurant Ask for details on our FLY-BUY Program @ 212-210-0189 NY Dept. of State on 3/1/07. Office location: NY under the Alcoholic Beverage Control Law at Call Exclusively Baronoff 305.213.3606 of State designated as agent of LLC upon County. Principal business address: 437 whom process against it may be served. 122 Christopher Street, New York, NY 10014 Madison Ave., NY, NY 10022. LLC formed in for on-premises consumption. Secy. of State shall mail process to the principal Delaware (DE) on 12/4/03. NY Secy. of State business address of the LLC: c/o Williams designated as agent of LLC upon whom Real Estate Co. Inc., 380 Madison Ave., NY, process against it may be served. NY Secy. of Notice of formation of Limited Liability NY 10017, Attn: General Counsel. DE address State shall mail process to: Corporation Service Company (LLC). The Treats Truck, LLC. L.L.C. of LLC: c/o Capitol Corporate Services, Inc., Co. (CSC), 80 State St., Albany, NY 12207. DE Articles of Organization filed with the Secretary www.newyorkbusiness.com 15 E. North St., Dover, DE 19901. Cert. of address of LLC: c/o CSC, 2711 Centerville Rd., of State of NY (SSNY) on 12/6/06 N.Y. Office Form. filed with DE Secy. of State, Div. of Wilmington, DE 19808. Arts. of Org. filed with location: NY County. Business location. SSNY Corps., Townsend Bldg., Dover, DE 19901. DE Secy. of State, Loockerman & Federal Sts., has been designated as an agent upon whom Purpose: any lawful activity. Dover, DE 19901. Purpose: any lawful activity. process against it may be served. The Post Office address to which the SSNY shall mail a Notice of Qualification of Armand de Brignac copy of any process against the LLC served Notice of Qualification of AGBH Versailles, upon him/her is C/O the LLC. 100 Bank Street, Holdings, LLC. Authority filed with Secy. of L.L.C. Authority filed with NY Dept. of State on State of N.Y. (SSNY) on 1/23/07. Office #3A NY, NY 10014. The Principal Business 3/8/07. Office location: NY County. Principal Address of the LLC is: 100 Bank Street, location: NY County. LLC formed in Delaware business address: c/o Angelo Gordon & Co., (DE) on 1/11/07. SSNY designated as agent #3A NY, NY 10014. Purpose/character of L.P., 245 Park Ave., 26th Fl., NY, NY 10167. LLC: a bakery business specializing in special of LLC upon whom process against it may LLC formed in Delaware (DE) on 2/22/07. NY be served. SSNY shall mail process to: 480 orders for pick-up and delivery and service Secy. of State designated as agent of LLC from a mobile retail bakery truck. Broome St., 2nd Fl., NY, NY 10013, Attn: upon whom process against it may be served. Brett Berish. DE address of LLC: 901 Market NY Secy. of State shall mail process to: CT St., Ste. 460, Wilmington, DE 19801, Attn: Corporation System, 111 8th Ave., NY, NY Hanover Corporate Services Ltd. Cert. of 10011, registered agent upon whom process Coming Up Form. filed with DE Secy. of State, 401 Federal may be served. DE address of LLC: c/o The St., Ste. 4, Dover, DE 19901. Purpose: any Corporation Trust Co., 1209 Orange St., on the Calendar lawful activity. Wilmington, DE 19801. Arts. of Org. filed with DE Secy. of State, 401 Federal St., Dover, DE Notice of Formation of TMG Dobie Center 19901. Purpose: any lawful activity. April 16th LLC. Arts. of Org. filed with Secy. of State Real Estate of NY (SSNY) on 1/20/06. Office location: Notice of Formation: AYAT, LLC. Art. of Org. NY County. SSNY designated as agent of filed with Sec. of State of NY (SSNY) on 11/3/06. LLC upon whom process against it may be Office loc.: NY County. SSNY designated as served. SSNY shall mail process to: c/o The agent of LLC upon whom process against it April 23rd Modlin Group LLC, 130 W. 57th St., NY, NY may be served. SSNY shall mail process to: 10019, Attn: Avery Modlin. Purpose: any 1623 Third Ave., Suite 23-K, NY, NY 10128. International Business lawful activity. Purpose: Any lawful activity.

April 9, 2007 | Crain’s New York Business | 29 Project3 4/4/07 3:46 PM Page 1 CNYB 04-09-07 A 31 4/5/2007 6:14 PM Page 1

BUSINESS

HOME FRONT Condo builders offer outdoor spaces to draw buyers PAGE 32 buck ennis

GOTHAM GIGS On the case Working graveyard CAROLYN DOLAN, 60, is a portfolio manager at Samson Capital Advisors, which has More professions coping with the night shift 150 clients and $3.6 billion under management. She chairs the firm’s operating committee and characterizes her pay as “not seven figures.” SKILLS TRANSFER Today, Ms. Dolan works for some of the area’s wealthiest families and foundations. But she started out her adult life as a social worker in New Jersey in the late 1960s; her annual salary ON THE WAY: started at $6,600 and had Joseph Gordon, a risen to $15,000 by the time systems analyst she left for a career change in for Thomson Financial, starts 1975. “To be a good case work at 3:00 a.m. worker, you have to be very analytical and figure out how government operates,” she says. “That overlaps with Wall Street very well.” SAFETY NET Ms. Dolan, a bond specialist, is concerned about the weakening housing market and its ramifications for families. “I think a lot of consumers got overextended.” BUCKLE DOWN Her advice to people with unconventional backgrounds who want to break into the financial services profession: Get an M.B.A. She got hers at Columbia University in 1978 and found that nothing demonstrates commitment to potential employers better than slogging through a few ON THE JOB: years of business school. Mr. Gordon says —aaron elstein the 15% pay differential over the day shift is a EXPERT OPINIONS powerful magnet. david neff david WHAT CAN I DO WITH MY OLD COMPUTER? THE STATS BY HILARY POTKEWITZ if you want to make a computer donation, you can go ver wonder what it would be like to get to the bank, pick up dry directly to a nonprofit like The cleaning, shop for groceries and work out at the gym—all in one day? Work Pencil Box or National 60% Cristina Foundation. Any the night shift, and it could happen. Divorce rate among computer older than three Roughly 16% of U.S. workers have workdays that start in the evening and couples in which a years is hard to donate because end in the morning, and they almost never have to wait in line. partner works nights a lot of nonprofits want decent The night shift isn’t just for emergency room doctors or police officers stuff that’s going to connect to anymore.Trader, information technology engineer and television producer the Web. You can throw away + computers in New York, but I are just a few of the careers that have become 24-hour jobs, challenging 150% recommend safely disposing of people to balance sleep, family and everyday life. Incidence of stress- them through organizations “I go to bed before my 7-year-old daughter,” says David Kalmowitz, director of the morning news related gastro- like the Lower East Side for WPIX Channel 11. Mr. Kalmowitz, married and with three kids under 10, starts his workday at intestinal disorders Ecology Center, which hosts about 2 a.m., driving from his home in New Jersey to his midtown office. He’s been doing it for six among night-shift free recycling events. E workers compared —david lerner years, and flying through the tunnel unimpeded never gets old, he says. with day workers Founder,Tekserve Whether keeping financial systems running, producing the morning See PROS WORKING on Page 32 Source: National Association of Science Writers

April 9, 2007 | Crain’s New York Business | 31 CNYB 04-09-07 A 32 4/5/2007 6:21 PM Page 1

BUSINESS LIVES HOME FRONT Great outdoors becomes latest condo attraction

Builders offer gardens, outdoor space has been a condo sta- ple for years. But in New York, groves to draw young where scarcity makes land much THE SETAI, a Manhattan condo building rising on Wall Street, will feature 8,500 square feet of common outdoor space. more expensive, developers tradi- professionals, parents tionally have opted to make every square foot salable. Even workout playground.Those amenities helped integral parts of a building, often the Visionaire in Battery Park City rooms, often carved out of storage seal his decision to buy in the build- reached through art-laden corridors will offer a barbecue area and out- BY JUDITH MESSINA space in the basement, were often ing,which is still under construction. and lounges. The Linden, now un- door cabanas. afterthoughts. “If you don’t want to walk five der construction on West 78th Developers are convinced the he setai, a luxury con- Now,developers are differentiat- blocks to the park,it’s nice to be able Street between Amsterdam Avenue greenery will pay off. Arc Develop- do development rising ing their buildings with outdoor to go downstairs in your bare feet and Broadway, will feature a roof ment President Joseph Korff says above Wall Street, amenities to appeal to status-con- and let the baby run around,” Mr. garden as well as a water wall in the the alternative to the 2,500-square- promises buyers nearly scious foreigners, young profession- Notar says. lobby on the way to another garden foot roof garden at the Solaria— 8,500 square feet of out- als and the growing coterie of par- By itself, the great outdoors in back. adding more space to the pent- Tdoor space, including bamboo ents choosing the city over the doesn’t rate premium prices. But On the roof of 101 Warren St., houses—wasn’t nearly as attractive. groves, a Jacuzzi and grill pits on the suburbs to raise their families. when it is part of a larger package of adjacent to the building’s spa,devel- “The advantage to the building roof terrace. amenities, including swimming oper Edward Minskoff plans to overall outweighed the ability to sell Welcome to suburbia in the city. Barefoot in the park pools, health clubs and wine cellars, plant a mini-forest of 101 Austrian that additional space,” says Mr. Outdoor space has become the lat- “five years ago, people asked brokers say it definitely sweetens pines designed by well-known land- Korff. est must-have amenity for luxury whether the kitchen had a window,” condo values. The Setai recently scape architect Thomas Balsley. With green space becoming a condos. Lawns, roof gardens and says DJK Residential broker started selling units at $1,300 a minimum perk in the luxury condo even mini-forests are sprouting be- Kathryn Higgins. “Now they say, square foot. That’s 12% over the Stargazing included market, developers are already ask- hind closed gates all around the city. ‘Only show me something with out- $1,157 that the average downtown looking for spectacular views? ing themselves what scarce com- In addition to the Setai, the Linden door space.’ ” condo went for in the last quarter of Try the Solaria in Riverdale, the modity they can offer next. “Next on the Upper West Side, the Mi- With a new baby, Nobu Fifty 2006, according to Miller Samuel Bronx,a luxury condo being built by time we’ll do private tennis courts,” raval on the Upper East Side and the Seven managing partner Richie No- Real Estate Appraisers. Arc Development.The rooftop gar- says Edward Baquero, managing Visionaire in Battery Park City are tar was in the market for a larger “It’s one key ingredient to ob- den will be outfitted with a dome partner of Element investor Coalco just a few of the buildings that are apartment. He heard about the Ele- taining the price point they’re look- housing a high-powered telescope New York. “Physically, we couldn’t setting aside thousands of square ment, a 35-story condo rising on ing for,” says Miller Samuel Chief for stargazing. fit them in the Element; otherwise feet for the accoutrements of coun- West 59th Street, replete with a Executive Jonathan Miller. At 1 Madison Park, the fourth- we would have.” try living. “great lawn,” a meditation garden, Unlike workout rooms of the floor, glass-enclosed pool will over- In other cities, such as Miami, swimming pools and a children’s past, the new lawns and terraces are look Madison Square Park, while COMMENTS? [email protected]

So, concessions are made. Mr. ample, so she tries to “do lunch” in- Kalmowitz eats dinner with his stead. Mr. Kalmowitz enjoys after- Pros working the graveyard family but often has cereal. “It’s noons with his kids, helping them funny—I can eat chicken wings, with homework or coaching their Continued from Page 31 baked ziti and lobster at 7 a.m., and teams, but he ends up missing time news or trading the Asian markets, it doesn’t even faze me,” he says. with his wife, Samantha. For a these workers reflect New York’s SURVIVING THE NIGHT SHIFT “But I can’t eat a big lasagna and while, he also noticed he was snap- motto: “The city that never sleeps.” then go right to bed.” ping at his kids more. That’s one of But working the night shift isn’t the ways the night shift takes its toll. about caffeine and 24-hour diners. Do … Don’t … Better for someone else “You lose your sense of humor People go to great lengths to lead ironically, younger night workers when you’re sleep-deprived,” Dr. PRETEND YOU’RE A DAYTIME so-called normal lives. That often PROTECT DAYTIME SLEEP BY ANY usually feel the shift is well-suited to Kavey says.“The antics of little chil- means sacrificing sleep, watching MEANS NECESSARY, including dark WORKER or that the shift is parents, while parents insist it’s bet- dren that would make another par- friendships fade, or choosing be- shades, eye mask, earplugs or white temporary. Accept the schedule and ter for young people. ent laugh will make an out-of-sync tween exercise and a nap.Some find noise. Create with family members a work with it. “My job would be ideal for a parent irritable.” unexpected benefits; few see th e list of emergencies that would DRINK ALCOHOL before going to working mother,”says Alice Chen,a Excessive sleepiness also makes lifestyle as long-term. warrant your being awakened. bed. It creates fitful, unsatisfying 30-year-old trader for NeoNet Se- people put things off, says Christo- “I looked at this job as tempo- EXERCISE REGULARLY. It improves sleep. curities who specializes in Japanese pher Drake, a clinical psychologist rary,”says Joseph Gordon,a systems equities. Because of the time differ- at Henry Ford Hospital Sleep Cen- the quality of sleep as well as mood LIE IN BED stressed about not being analyst for Thomson Financial who and digestion. ence, her workday starts when most ter in Detroit who studies shift starts work at 3 a.m. “I still do,” he able to get to sleep. Go into another New Yorkers are having dinner. She workers.People delay projects,exer- says,though he has been doing it for EAT FREQUENTLY, TAKING SMALL room until you feel tired. points out that she could always pick cise and job searches. They’re more nearly four years. The 15% pay dif- PORTIONS. It helps maintain energy NEGLECT YOUR FAMILY OR a child up from school, for instance. likely to miss family and social ac- ferential over the day shift makes it levels. PARTNER. Share meals, and Though Ms. Chen enjoys her tivities, and rates of depression and hard to stop. SCHEDULE TIME with loved ones. schedule time on weekends. schedule,she concedes that it can be divorce are higher among night- a struggle to stay awake on slow shift workers. In denial Source: Janie O’Connor, president, Shiftworker.com nights. Midnight calisthenics Expert advice about creating a mr. gordon, 37, admits that his breaks are common in her office. calm sleeping environment occa- schedule is a work in progress. He Unlike most night-shifters, Ms. sionally translates to the real gets home at about noon and naps out on his kids’ activities. He began terian Hospital/Columbia. “You Chen regularly gets eight hours of world—sort of. for two or three hours.He then runs making exceptions for Little can shift your schedule,but you can’t sleep and loves that she never has to During the five months a house errands, tries to have a life—per- League games and family dinners, shift the fact that you’re human.” set an alarm clock. was being built across the street,Mr. haps a date—and sleeps again from pushing his bedtime further and Sleep experts say night workers Some isolation is inevitable with Kalmowitz slept in his son’s room at about 9 p.m. until 1:30 a.m. “Every further back—often to the point of need a consistent schedule and a the vampire life. the back of the house. Turns out, a year, I say this will be the last one,” sleep deprivation. tranquil room. But Dr. Kavey says “Being out of sync with the rest bunk bed has its own special com- he says. “It’s almost impossible to not be that those things are almost impos- of the world can be very isolating,” forts.“I would wake up covered with Life with children is a different sleep-deprived,” says Dr. Neil sible to achieve “unless you live in a Dr. Kavey says. stuffed animals,” he says. story. Mr. Kalmowitz, 47, tried go- Kavey, director of the Sleep Disor- cave.” The result is that people are Ms. Chen can never have dinner ing to bed at 5 p.m. but was missing ders Center at New York-Presby- in a constant state of jet lag. with friends during the week,for ex- COMMENTS? [email protected]

32 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 33 4/5/2007 8:06 PM Page 1

BUSINESS LIVES CORPORATE LADDER Alex Battaglia Ground controller JetBlue’s point man of a storm. Industry experts also blamed its lack of contingency plan- PERSONNEL FILE at JFK knows territory ning at JFK. well from his days In fact, JetBlue’s director of JFK COMPANY JetBlue Airways Corp. operations post had been vacant TITLE Director of operations at JFK at rival Delta since September. During one of the worst ice storms in recent memory, AGE 44 no one was at the helm. RÉSUMÉ Director of operations BY HILARY POTKEWITZ Enter Alex Battaglia. at JFK, Delta Air Lines The industry veteran,who head- hen he took his ed Delta’s operations at JFK until NEW YORK MOMENT Attended first job as a cabin last month, witnessed JetBlue’s his 27th straight Mets opening cleaner for Delta meltdown from across the terminal. day last week Air Lines at age Though Delta had to cancel 250 BIRTHPLACE Brooklyn 20, Alex Battaglia flights, Mr. Battaglia and his team knewW he was in the business for the kept the situation under control. long haul. When asked to come over to Jet- new $850 million terminal, sched- “It gets in your blood,” Mr. Blue, the executive relished the uled for the summer of 2008. Battaglia says. “Once you’re out challenge. The New York native likes to say there on the runway, it’s a passion.” that he grew up in an airport. His The 44-year-old executive is Wish list first leadership job was “below the now focusing that passion on Jet- “with this job being vacant for a wing,” managing Delta’s baggage

Blue Airways. This month, he be- while, that brings a tremendous op- handlers at Dallas/Fort Worth buck ennis came the Queens-based carrier’s portunity for me build a team and a International. go-to guy at its troubled John F. structure here,” says Mr. Battaglia, Promotions followed. Mr. Bat- from fewer than 100 a day. The gig will present Mr.Battaglia Kennedy International Airport hub, who took the reins on April 2. taglia was sent to Salt Lake City to with many novel situations. For in- where a February ice storm caused a His first order of business? Meet manage Delta operations at 15 air- Knowledge inside and out stance, he is used to running the complete operational collapse.Over every crew member. He has asked ports in the West. He landed at JFK “alex is the perfect fit as we show, serving masters far away. Be- six days,JetBlue canceled or delayed department managers to create a three years ago—the culmination of continue to grow within North ing at headquarters means more cor- 2,500 flights. The fiasco cost the top-three wish list of what should be a 24-year career at Delta. Quite a America,” says Rob Maruster, Jet- porate visibility, with masters close company $40 million, and its stock changed. He hasn’t formulated his journey for a guy who started out on Blue’s senior vice president for air- by. But he says it “felt great” to get a plunged 10%. own list yet, deferring to those who cabin cleanup duty. ports and operational planning. His visit from Mr.Neeleman his first day. Chief Executive David Neele- have been there longer than a week. JetBlue officials had been ob- thorough knowledge of JFK and the “I was built for this job,” Mr. man attributed the problems to Jet- Mr. Battaglia’s tasks will include serving Mr. Battaglia’s performance fact that he has held almost every job Battaglia says. Blue’s inexperience, combined with handling expanded service while with Delta, where he oversaw the at an airline “serves him well” as a a reluctance to cancel flights ahead shepherding the move to JetBlue’s carrier’s growth to 180 flights a day manager, Mr. Maruster says. COMMENTS? [email protected]

BUSINESS BREAKFAST FORUMS

MEET GOVERNOR ELIOT SPITZER MEET DOWNSTATE’S NEW DEVELOPMENT CZAR

New York Governor Eliot Spitzer will Patrick Foye, chairman of the Empire State review his progress on reforming Albany Development Corp., will discuss the Spitzer and discuss what he views as the tough administration’s approach to economic issues ahead. He will be questioned by development and review the big projects Crain’s Editor Greg David and either underway or in the planning stages, Melissa Russo of WNBC. including the expansion of the Javits Center, Penn Station, downtown and others. This event will sell out—sign up today! Governor Eliot Spitzer Patrick Foye

DATE: THURSDAY, APRIL 19, 2007 DATE: WEDNESDAY, MAY 9, 2007 PLACE: Hilton New York 1335 Avenue of the Americas PLACE: Sheraton New York 811 Seventh Avenue TIME: Networking Breakfast 8:00–8:30 a.m. TIME: Networking Breakfast 8:00–8:30 a.m. Program 8:30–9:30 a.m. Program 8:30–9:30 a.m.

COST TO ATTEND: COST TO ATTEND: $60 for individual ticket(s) $600 for table(s) of ten $60 for individual ticket(s) $600 for table(s) of ten if pre-registered by April 12th if pre-registered by April 12th if pre-registered by May 2nd if pre-registered by May 2nd $70 thereafter. $700 thereafter. $70 thereafter. $700 thereafter. (American Express, Visa or MasterCard only) (American Express, Visa or MasterCard only) To register go to newyorkbusiness.com, or fax your business card and credit To register go to newyorkbusiness.com, or fax your business card and credit card information to “Spitzer Breakfast” at 212-210-0499. card information to “Foye Breakfast” at 212-210-0499.

SPONSORED BY: YOU MUST BE PRE-REGISTERED TO ATTEND THESE EVENTS. ALL TICKETS ARE NON-REFUNDABLE. FOR MORE INFORMATION, CALL THE EVENTS HOTLINE AT 212-210-0739.

April 9, 2007 | Crain’s New York Business | 33 CNYB 04-09-07 A 34 4/5/2007 6:23 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ARCHITECTURE & DESIGN formerly principal at Hampton/Hoerter. managing director of program and Fitch Inc.: Bryan Gailey, 51, joined as Keith Stein, 49, joined as managing sponsorship development. She was HOT JOBS creative director. He had been associate director and president of Carlton formerly manager of sales promotion principal at Callison Architecture. Strategic Ventures. He was formerly and events, Prescriptives, at Estée HDR: Brian Dolan, 51, joined as managing director, select investments Lauder Cos. WANTED: PRESIDENT marketing manager. He was formerly portfolio, at Kimco Realty Corp. vice president of market development Delos Insurance: John DiBlanda,49, HOSPITALITY & TOURISM and public affairs for the Long Island joined as chief financial officer. He had Circle Line-Statue of Liberty Ferry Inc.: ORGANIZATION Brooklyn Chamber of Commerce Rail Road. been U.S. chief operating officer and J.B. Meyer, 44, was promoted to JOB DESCRIPTION Direct the chamber; manage finances and programs Thornton Tomasetti: Ling-en Hsiao, 47, global chief financial officer at president and chief executive from was promoted to principal from senior Gallagher Re. president of Circle Line Harbor MOST IMPORTANT TASK Foster strong relationships among members, vice president. Financial Relations Board: Richard Cruises. community contacts and the board of directors Simonelli, 45, was named executive vice FINANCE & INSURANCE president and general manager. He was LAW CREDENTIALS NEEDED Experience in leading a growing organization Carlton Advisory Services: Bromme H. formerly managing director and owner Howrey: Ethan E. Litwin, 36, joined as SALARY Negotiable; former president made $67,791 in 2004 Cole, 44, joined as managing director of Abbey Road Partners Inc. partner. He had been a partner at and chief operating officer. He was Tiger 21: Abby George, 30, joined as Simpson Thacher & Bartlett. RECRUITER Phillips Oppenheim DOWNSIDE Having to balance the needs of management and the community UPSIDE Being at the helm during a time of rapid expansion Founded in 1918, the BCC is a membership-based nonprofit promoting commercial growth and economic development in the borough. Former President Kenneth Adams left at the end of 2006 to become chief exec- utive of the Business Council of New York State. Chief Operating Officer Mark Kessler is serving as interim president. —KIRA BINDRIM

Jenner & Block: Susan J. Kohlmann,49, president from senior associate. joined as partner. She was formerly a Jones Lang LaSalle: James P.Quinn,43, partner at Pillsbury Winthrop Shaw joined as managing director. He had Pittman. been executive vice president at Katten Muchin Rosenman: Kathleen H. Trammell Crow Co. Moriarty, 53, joined as partner. She had Patrick Heeg, 33, joined as senior vice been a partner at Carter Ledyard & president. He had been a senior vice Milburn. president at Trammell Crow Co. Latham & Watkins: Jeffrey A.Tochner,39, Gary Youm, 29, joined as vice president. was promoted to partner from of He had been a vice president at counsel. Trammell Crow Co. Loeb & Loeb: Thomas A. Guida,36, Massey Knakal: Greg Corbin, 34, joined joined as partner. He had been a partner as director of sales for the Queens office. at Baker & Hostetler. He had been director of business Nixon Peabody: Cathy Fleming, 51, joined development at KCL Trading. as partner. She had been a partner at Kent Kilroe, 38, joined as director of sales Edwards Angell Palmer & Dodge. for the Brooklyn office. He had been a managing partner at Fullcount MEDIA & ENTERTAINMENT Development. Hachette Filipacchi Media U.S.: Dan Ira Krivit, 49, joined as director of sales Lawrence, 38, was promoted to group for the Brooklyn office. He had been a finance director from group general development specialist at East Coast manager and continues as vice Capital. president. Annie Herrick, 25, was promoted to Christine J. Petrillo, 40, was named vice manager of organizational management president and corporate sales director. from event manager. She had been associate publisher of Swig Equities: Nina Freudenberger,47, Premiere magazine. joined as senior designer for interiors in Harry Fox Agency Inc.: Louis Trebino Jr., the project development department. 44, was promoted to chief information She had been senior designer at officer from vice president, program Kondylis Design. management. MSG Media: Chris DeLauro,50,was SERVICES named vice president of operations and Adoption Exchange Association: Rachel A. engineering. He had been vice president, Pratt, 42, joined as chief executive, a account services, at NEP Supershooters. newly created position. She was Primedia Inc.: Keith Belknap,49,was formerly assistant commissioner in the appointed general counsel. He had been office of case management in the New principal counsel at Georgia-Pacific York City Administration for Children’s Corp. Services. Scripps Networks: Deanna Brown, 43, I Love Rewards Inc.: Dave Kuhnlein,47, joined as president, interactive group, a joined as vice president of marketing, a newly created position. She had been newly created position. He had been vice general manager of the lifestyles president of marketing at Commerce business unit at Yahoo! Media Group. Bank. Michael C. Fina: Steve Walter, 37, was REAL ESTATE promoted to vice president of sales from CB Richard Ellis: Doug Dolgoff,34,was national sales director. promoted to vice president from senior —adrianne pasquarelli associate. Edward Eschmann, 48, was promoted to EXECUTIVE PROMOTIONS vice president from senior real estate analyst. Crain’s lists the promotion and hiring of New York Alan Friedman, 46, was promoted to vice area senior executives on a space-available basis, president from senior associate. with priority given to positions in New York City. David Kleinhandler, 29, was promoted to The fastest way to get an announcement into vice president from senior associate. Crain’s is to submit details online by filling out the John Pavone, 32, was promoted to vice form at www.NewYorkBusiness.com/submit. president from senior associate. The Executive Moves column is also available Kevin Powderly, 38, was promoted to online. vice president from senior associate. Crain’s cannot confirm receipt of listings or say Sacha Zarba, 29, was promoted to vice when they will appear.

34 | Crain’s New York Business | April 9, 2007 CNYB 04-09-07 A 35 4/5/2007 6:25 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape The prime steaks are as nicely of wines.It is trying for an all-Amer- Japan, Australia and the United charred, juicy and beefy as those ican list, which means a shorter one. States are served under 2,000 samu- anywhere at all. The proud porter- There are many good choices, pre- rai swords suspended from the ceil- house and shell steaks are available cious few by the glass, and prices are ing of this sensuous, red-hot steak for one or two.Bone-in filet mignon all over the lot. Some markups are house. Exciting design, great beef. is the price-topper. Other meats of impressive, and then you stumble on premier quality include a Berkshire a 2003 Dunn Cabernet Sauvignon Craftsteak ½ loin pork chop, sometimes done for $60. This normally retails be- 85 10th Ave. (at West 15th Street), with sweet or hot peppers, onions tween $55 and $100. Want to bet it Manhattan. (212) 400-6699.Tom and sliced potato. A special of roast doesn’t last long? Colicchio brings his Vegas concept loin of veal under a mantle of creamy to the meatpacking district with pepper-cognac sauce is well worth COMMENTS? [email protected] more steak and side choices than repeating. anyone. A handsome and loud room Lobsters here range from two to with Hudson River views. five pounds. Guests may have them BEST OF BOB LAPE broiled or done oreganata or arrabi- ata style. Tempura-clad lobster tails Following are other meat spots are broiled and served with tartar reviewed recently. sauce from time to time. Herb- crusted and pan-seared Chilean sea Quality Meats ½ bass gets a ginger sauce send-off, 57 W. 58th St. (between Fifth and and the plump Dover sole meunière Sixth avenues), Manhattan. is a target for more truffle oil. It (212) 371-7777. Rustic New Amer- works just fine. ican food, plus great service and ERNEST KLEIN Side dishes ($6 to $9) cover the wines in a playful setting that sug- usual potato-onion-greens bases gests a high-design meat locker. A & CO. with skill. skillful blend of downtown style Desserts are also standards, but and uptown finesse.
FINE FOODS
many are being made to order. The trained patissier waiting in the Kobe Club  Same Day Delivery wings will produce the signature 68 W. 58th St. (between Fifth and napoleon, the obligatory molten Sixth avenues), Manhattan.  Phone Orders chocolate cake, chocolate soufflés, a (212) 644-5623. The best cuts from lighter-than-usual cheesecake and a  Corporate Accounts caramelly apple tart.  Catered Luncheons In the steakhouse league, which

arnold adler arnold has grown exponentially in recent Located at: A CUT ABOVE: Scarsdale’s Valbella Steakhouse, which has an open look with arched windows, years,service is hit or miss.Not so at Sixth Ave. and 55th St. offers prime steaks that are nicely charred, juicy and beefy . Valbella, where portal-to-portal at- tention, sensitivity and responsive- 212.245.7720 ness are its credo. A FULL SERVICE SUPERMARKET The Steakhouse has a long way to go to match its siblings in the matter Suburban spot M&K BUSINESS HEROES to meat, greet KNOWLEDGE | INTEGRITY | RESPONSIVENESS Conn., to the Scarsdale steakhouse Valbella brings its and then on south to West 13th successful recipe to Street. The secret element in the suburban steakhouse; Westchester newcomer’s fast liftoff is not only a highly capable culinary OUR M&K HERO wine list a bit skimpy and care team, but also an inter- PUSHED THROUGH changeable one. Steakhouse man- VALBELLA THE BARRIERS TO ne year after suc- ager Sergio Gashi is down from STEAKHOUSE HIS CLIENT’S ceeding with an ultra- Greenwich, and pastry chefs move 754 White Plains Road BUSINESS GROWTH. sleek restaurant in between Valbellas, so freshly baked Scarsdale, N.Y. New York’s meat- is always the rule. (914) 725-0566 packing district, Val- Meals often begin with an an- Obella mastermind David Ghatan- tipasti assortment of sliced, cured fard is selling steaks, seafood and meats and robust chunks of Parmi- CUISINE Steakhouse sumptuous service to Scarsdale. giano Reggiano.Whether it’s an ex- WINES 160 choices, 14 by the Valbella Steakhouse is on the traordinary jumbo lump crabmeat glass Scarsdale-Eastchester line in the cocktail or fresh lobsters, Valbella roomy former quarters of Malfe- does everything large. DRESS No code tano, next to Lord & Taylor. The Appetizers ($11 to $19) are paced NOISE LEVEL Moderate restaurant has a clean, fresh and by cocktails of lush crabmeat and/or In the real world, we’re CPAs. open look with large arched win- lobster,a hefty mound of tuna tartare PRICE RANGE $21-$48 To our clients, we’re Superheroes. dows, and modern art on white with light Dijon dressing, clams on WINE MARKUP 50%-200% walls. It’s divided into a number of the half shell or baked, crab cakes, CREDIT CARDS All major enclaves on slightly different levels, and fried bluepoint oysters with yel- affording more dining seclusion low pepper sauce. Crisply fried cala- RESERVATIONS Recommended than most meat marts.Valet parking mari is first-rate, with sparklingly HOURS Mon.-Thurs., noon-10 MARCUM & KLIEGMAN LLP sets patrons free to drop in and, if fresh, tangy marinara sauce. p.m., Fri.-Sat., noon-11 p.m., Certified Public Accountants & Consultants they like, prime the pump at an at- This kitchen believes truffle oil is Sun., 2-10 p.m. tractive bar nestled near the en- among the major food groups, and I 800.921.0777 | www.mkllp.com trance alcove. don’t want to disabuse it of that no- = Outstanding NEW YORK STAY TUNED FOR Mr. Ghatanfard spends his days tion. As friends and family focus on = Excellent MELVILLE = Very good GREENWICH THE NEXT INSTALLMENT OF on perfection patrol from his well- five colorful salads, I trigger the GRAND CAYMAN M&K BUSINESS HEROES established trailblazer in customer truffle torrent with superb ricotta- = Good cosseting, Valbella in Riverside, filled ravioli in creamy truffle sauce.

April 9, 2007 | Crain’s New York Business | 35 Project3 3/27/073:48PMPage1

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