Demand Is Soaring for Luxury Rentals

Home , Frank Stefanko, Simmons Airlines, The Ritz (rock club)

20101018-NEWS--0001-NAT-CCI-CN_-- 10/15/2010 7:42 PM Page 1

INSIDE 40 UNDER TOP STORIES FORTY Remember Acorn? NOMINATIONS Here’s the group open Oct. 25. Go to www.crainsnewyork.com/ that replaced it ® 40under40 PAGE 2

VOL. XXVI, NO. 42 WWW.CRAINSNEWYORK.COM OCTOBER 18-24, 2010 PRICE: $3.00 Demand is soaring Intermix’s new WALDER’SWALDER’S president fashions a growth strategy for luxury PAGE 3 rentals Crain’s endorses for AUDITIONAUDITION state comptroller In iffy market, paying EDITORIAL, PAGE 10 $20K/month is seen as The real story about Savvy technocrat restores MTA credibility smarter than owning Wall Street pay BY AMANDA FUNG IN THE MARKETS, PAGE 4 by closing budget gap. Tell that to next guv. the market for high-end apartments, BY JEREMY SMERD with monthly rents starting at $10,000, BUSINESS LIVES is on fire.Rental units with the same su- jay walder had been head of the per-fancy finishes and building ameni- Metropolitan Transportation ties as the most desirable condos are be- Authority for 10 days when the ing snapped up. state,facing a fiscal crisis,sud- The boom is being driven by high- denly withdrew $143 million net-worth families who can afford to in aid last October. Lower- put a hefty down payment on a $4 mil- than-expected tax revenue lion-plus condo or co-op but choose quickly morphed an antici- not to do so now.Despite a recent firm- pated balanced budget into ing of the city’s residential real estate a $900 million deficit. market, more wealthy New Yorkers are Unable to look to Al- deciding that now is the time to play it bany for a handout, Mr. safe—and rent. Walder was on his own. “The majority of my high-end “He signed on for a voy- clients are in a holding pattern,” ob- age across a calm sea and serves Douglas Heddings, president of actually had to steer the Heddings Property Group, a residen- GOTHAM GIGS MTA through a hurri- See RENTALS on Page 29 Violinist rocks out at cane,” says Assembly- Carnegie Hall P. 31 man Richard Brodsky, ● ANNE FISHER on who chairs the Commit- doing business in China tee on Corporations, Au- Move over, P. 31 thorities and Commissions. A year later, Mr. Walder, ● MOVERS & SHAKERS 51, has closed the gap by con- grande skim NY’s Red Cross chapter solidating departments, elimi- gets a new crusader P .. 32 nating 3,500 positions, reducing ● GAEL GREENE eats at overtime costs and renegotiating double latte the Lambs Club P .. 34 contracts with vendors. He’s taken steps that were once considered political sui- cide:In the same year,he both cut service and raised fares. Tea vendors grab While some of those plans were put in place by his prede- INDEX cessor, Mr. Walder has won praise from transportation experts affordable spaces, and the business community for bringing them to fruition OPINION ______11 quickly.Mr.Walder says his tough decisions translate into $500 tout health benefits REAL ESTATE DEALS PLUS ______14 million in recurring annual savings and proof that the MTA JAY WALDER riled NEIGHBORHOOD JOURNAL ______15 can be trusted to spend taxpayer dollars efficiently. unions and irked BY ADRIANNE PASQUARELLI riders with service CLASSIFIEDS ______26 Still, he has angered the public and the unions and made the agency an easy target during this political season. and job cuts and fare the original tea party, complete FOR THE RECORD ______28 And Mr. Walder could soon discover that the past 12 hikes to balance the with hot water, herbal leaves and ket- HOT JOBS books. Next stop: ______31 months have amounted to little more than a tryout for the tles, is coming to Manhattan. Tea pur- EXECUTIVE MOVES getting Albany’s ______31 job. Before the MTA board approves a balanced budget paymasters on board. veyors, emboldened by increased de- THE WEEK ON THE WEB ______33 in December,New Yorkers will elect a new governor.Re- mand and favorable real estate prices,

THE WEEK AHEAD ______35 See WALDER’S AUDITION on Page 30 have begun brewing in the Big Apple.

newscom “It’s a perfect time to build a tea business,” says restaurant consultant Clark Wolf. “Coffee seems to have SMALL BUSINESS peaked, and let’s not forget how this country was started.” FUNDING Wrongly denied bank loans P. 3 Tea is the most widely consumed ELECTRONIC EDITION REPORT beverage in the world, besides water, Choking on credit cards P. 17 but it has yet to break into the New York LIST market. Until now. Several vendors, in-

NEWSPAPER Fastest-growing companies P. 23 See THE OTHER TEA PARTY on Page 25 20101018-NEWS--0002-NAT-CCI-CN_-- 10/15/2010 7:50 PM Page 1

IN BRIEF Left for dead, local Acorn THE SOUTHAMPTON, L.I.-BASED SHINNECOCK INDIAN NATION HAS TEAMED UP WITH THE wealthy Ilitch family—which built its fortune through the Little Caesars pizza chain and remnant revives activism which owns MotorCity Casino—to fund its casino ambitions, according to Crain’s Detroit Business.The Shinnecocks, who were recently assassination,” says Dan Cantor, executive initiative with Public Advocate Bill de Bla- recognized by the federal government as an Defunded but director of the Working Families Party, sio forced city housing officials to restore American Indian tribe, said they may build up which Acorn helped to start and whose of- Section 8 subsidies to 2,600 poor families. to three casinos on Long Island to improve the defiant, group fice is one flight up from NYCC’s. lives of their 1,200 members, who live in mobile carries banner for The damage was already done by the Targeting the big banks homes on about 800 acres adjacent to the time the Brooklyn District Attorney and mr. kest will meet in the coming weeks upscale Hamptons.The tribe has been looking NY labor’s causes other investigators cleared Acorn of crimi- with executives from Bank of America, for potential sites since 2003, and it’s in talks nal wrongdoing.Its national organization— Citibank, HSBC, J.P. Morgan Chase and with private developers and community leaders. already weakened by its founder’s cover-up Wells Fargo to ask for stepped-up efforts on BY DANIEL MASSEY of his brother’s $1 million embezzlement mortgage modification. If banks won’t SUPERMARKET MAGNATE JOHN CATSIMATIDIS and allegations of voter-registration fraud— move, unions could pull their pension fund IS MAKING A RUN AT FOOD EMPORIUM. a year after doctored videos of a ficti- folded and its entire staff was laid off. money,and NYCC members will engage in The supermarket chain was recently put on the tious prostitute and her companion left the For now, NYCC isn’t focused on elec- their own video activism: YouTube posts of block by its ailing parent,The Great Atlantic & community-organizing network Acorn tions, aside from get-out-the-vote efforts foreclosed homeowners withdrawing their Pacific Tea Co. Mr. Catsimatidis, a billionaire for dead, a new activist group has emerged in black neighborhoods and savings in anger. and a one-time mayoral candidate, says a from its ruins and inserted itself into some an attempt to topple Re- An NYCC study expected confidentiality agreement prevents him from of the city’s most controversial economic publican State Sen. Frank Teachers soon will assert that major discussing a potential purchase, but he development and labor battles. Padavan. It’s not affiliated landlords discriminate confirms, “It’s no secret that we have interest in Longtime relationships with unions, with the WFP, though Mr. union pays against Section 8 tenants; [Food Emporium].”The owner of the liberal elected officials and a 7,000-mem- Kest sits on its board and a lawsuits will follow.The post- Gristedes chain, which has about 30 city ber base have allowed New York Commu- formal partnership is likely. it $33,000 Acorn group also remains a locations, says he is “very happy” with his stable nities for Change to pick up where Acorn’s Its work is inherently player at Atlantic Yards, of Manhattan stores.There are 16 Food operation here left off—with some of the about electing progressives, a month to working with the city and de- Emporiums in the city that are up for grabs. same staffers in the same downtown though, observes lobbyist veloper Forest City Ratner to According to industry sources, investment bank Brooklyn office. Michael Tobman.“Whether organize ensure that 2,250 units of Morgan Stanley and Mr. Catsimatidis are the “Once it was clear that the reaction to it’s dealing with developers subsidized housing get built two highest bidders for the portfolio. the video was the height of irrationality or fighting the city on hous- near the new Nets arena. and people didn’t have to sit on the side- ing, those they organize are Then there’s the pressure lines, the relationships we built over 30 not then Tea Party ac- on the Department of Edu- years kicked back in,” says Jon Kest, exec- tivists,” he adds. cation to test more than 700 schools for BY THE NUMBERS utive director of NYCC and former direc- In addition to partnering on campaigns PCBs.That drive brought a familiar scene tor of New York Acorn. for a living wage and mandatory sick pay, to City Hall’s steps earlier this month,with

Weekly shift of the city’s economy Though NYCC’s mission is the same as NYCC is helping the Retail Wholesale Mr. Kest, a hundred of his sign-toting

Acorn’s was—housing, education, jobs— and Department Store Union organize members and nearly two dozen supportive UGLY PICTURE Loan growth for banks is weak. Their foreclosures are a mess, and their Wall much has changed for an outfit better 2,500 supermarket employees, is in talks politicians calling for action. The placards Street business lines are sagging. NYC’s leading known for organizing than organization. with the AFL-CIO to unionize car wash no longer read “Acorn,” but otherwise it industry is sucking wind. Bertha Lewis, Acorn’s longtime public face workers, and is leading protests over a ru- was as if the events of the past year never in New York,left to start up the Black Lead- mored Walmart in Brooklyn. A tag-team happened. ership Institute,which focuses on immigra- 3,339 80% -6.0% tion. Accounting firm Condon O’Meara TEXTS the PORTION of NYC FALL in value McGinty & Donnelly and law firm average 13- to car wash of J.P. Morgan Hughes Hubbard led a restructuring that 17-year-old sends operators guilty of Chase shares included forming two new nonprofits— and receives in wage and hour last week, off one month violations $2.38 one can accept tax-deductible donations, Source: Nielsen Co. Source: NYS the other can engage in political efforts. Department of Labor Mark Peters, the state’s former chief KEYING UP Average daily room rates in Manhattan hotels public corruption prosecutor and a partner have pulled out of their nosedive and have been rising at Edwards Angell Palmer & Dodge,came since spring. in to head one of the boards and make 15% NYCC “bulletproof ” to critics. “We’ve Change, year over year done a lot of work building fail-safe sys- +12% tems,” he says. 0% From $3.5 million to $1.3 million this incarnation has yet to win back -15% nearly $1 million a year in lost city and state funding. Money from foundations has also dried up.The group’s 2010 budg- -30% ’09 ’10 A S O N D J F M A M J J A et is about $1.3 million, down from $3.5 Source: PKF Consulting million in 2008. Ten unions account for more than a third of the budget, Mr. Kest ADDICTED TO NUMBERS? says. Though his staff has been halved, to GET A DAILY DOSE AT @STATSANDTHECITY 10 organizers, the work continues. “They give voice to the people who CORRECTION don’t have a voice,”observes Michael Mul- Glam Media became profitable on an EBITDA basis in the fourth grew,president of the United Federation of quarter of 2009, and private investors have put in $175 million Teachers, which pays NYCC $33,000 a since its founding. The timing and nature of the company’s profitability and the amount of private equity it has received were month to help enlist parent support for key misstated in “Glam Media: biggest Web outfit you’ve never heard campaigns and to organize home-based of” in the Oct. 11 issue. child-care workers. “I’m sure a lot of people are upset there’s an organization that vol. xxvi, no. 42, october 18, 2010—Crain’s New York Business (issn 8756-789x) is published weekly except for combined issues the does that.” fourth week of June and the first week of July, the fifth week of Congress voted to defund Acorn after August and the first week of September, and the third and fourth videos selectively spliced by conservative weeks of December, by Crain Communications Inc., 711 Third Ave., TRUE BELIEVERS: New York, NY 10017. Periodicals postage paid at New York, N.Y., activists to make it appear as if staffers were and additional mailing offices. Postmaster: Send address changes to: providing improper advice exploded onto Thirty years of Crain’s New York Business, Circulation Department, 1155 Gratiot ally-building kicked Avenue, Detroit, MI 48207-2912. for subscriber service: Call the Internet and Fox News last year.Acorn in after Acorn’s (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, had become a GOP target by registering bogus video scandal, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. 3 million voters in swing states that turned says executive All rights reserved. blue in the 2008 presidential race. director Jon Kest.

“It was an organizational and political buck ennis

2 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0003-NAT-CCI-CN_-- 10/15/2010 7:43 PM Page 1

Hipster quarters, corporate owners Big hotel firms unveil trendy properties, but keep brands separate

BY LISA FICKENSCHER

new york city has plenty of boutique-style HER MISSION: New hotels—the intentionally trendy,unique lodg- President Adrienne ings meant to appeal to guests who don’t want Lazarus was hired to stay in a cookie-cutter Sheraton or Hilton. to take Intermix to A bevy of hotels bearing such quirky names the next level. as Andaz, Indigo and Aloft opened this year. And even more are on the way. About half of

buck ennis the 20 hotels set to open this year and in 2011 can be classified as boutique properties, according to PKF Consulting, which tracks the hotel industry. But what most travelers checking in for a Stirring up Intermix night don’t know—by design—is that these new,self-consciously hip quarters in fact belong to some of the biggest, best-known hotel com- the namesake shops of the very designers In- panies in the world.This year,six such hostelries New leader to grow chain in U.S. and abroad termix sells. will have opened in Manhattan, with hardly a Ms.Lazarus,who started consulting for In- word about the staid corporations that run them. women’s apparel market. termix last fall, aims to rise above her competi- Welcome to the stealth Hyatt, InterConti- BY ADRIANNE PASQUARELLI “We grew the company as far as we could, tors. Under her direction, the retailer has al- nental and Starwood. but now we’re [readying] it for the next stage ready culled its merchandise mix by more than “Customers told us they want to stay in a women’s retailer intermix, known for of growth,” says Chief Executive Khajak a quarter and has spent $1 million on a rebrand- boutique hotel without the mother name,”says hot labels like Stella McCartney and Rag and Keledjian. “Adrienne won [over] the cus- ing strategy.It has expanded its core consumers John Wallis, global head of brand strategy for Bone, has long been a magnet for socialites, tomer, and she is the customer.” to include mothers of teens alongside twen- Hyatt Hotels Corp.,which opened two Andaz tourists and college girls using Daddy’s cred- Though the retailer has weathered the re- tysomethings. Since Intermix prides itself on properties this year,one on Wall Street and the it cards. cession—Mr. Keledjian expects Intermix’s its distinctive product mix from up-and- other on Fifth But after 17 years in business, its cus- revenue for the year to be in the $100 million comers like furrier Yves Salomon,Ms.Lazarus Avenue. WATCH VIDEO tomers are maturing. Now the firm wants to vicinity,about the same as two years ago—In- has increased designer exclusives to 25% of Hyatt and grow up, too, and graduate from trendy bou- termix is a pricey place for brand-name goods overall merchandise from 15% last year. others are making CHECKING IN TO tique chain to international retail power- at a time when money is still tight.To manage Same-store sales for the company have in- their incognito BOUTIQUE CHIC AT house. resources,the Manhattan-based company has creased by a percentage in the high double debut in the seg- www.crainsnewyork.com/video To make the shoe fit, the family-owned closed underperforming stores in North Car- digits year to date, she says. ment that was in- company has hired Adrienne Lazarus, a vet- olina and Florida, but recently opened shops Right now, the company has 23 U.S. vented nearly 30 years ago by nightclub impre- eran of clothier AnnTaylor Stores Corp.Pre- in Malibu, Calif., and Troy, Mich. stores, which it plans to grow to between 45 sario-turned-hotelier Ian Schrager when he viously a consultant,she signed on earlier this Intermix still faces competition from sim- and 50 locations. It is also readying an over- launched Morgans Hotel. month as president, marking the first time ilarly priced fashion chains, like Manhattan- seas push to cater to its growing base of inter- But it was Starwood Hotels & Resorts that owners Khajak and Haro Keledjian have based Scoop, as well as department stores national shoppers, and is hoping to open its created the game-changing property in 1998, gone outside the fold for leadership. They’re including Saks Fifth Avenue and Blooming- first foreign store by 2012. Intermix is also when the first W Hotel opened at 541 Lexing- hoping that sharing power will help Intermix dale’s, which reel in customers with promises launching holiday campaigns,adding fresh de- ton Ave. and spawned 38 more, proving that reap a bigger share of the $107.4 billion of big discounts. Other encroachers include See INTERMIX on Page 29 even big companies can produce über-cool hotels. This year, Starwood plans to more than double the number of W hotels worldwide. “Everyone is looking to duplicate the success that W has had,” says Sean Hennessey, chief executive of Lodging Investment Advi- ‘Second look’ could help borrowers sors. Even Mr. Schrager now has a three-year- old partnership with Marriott Hotels & Re- NY Fed study: Up to half In the banking world,a second look means Among those approved, 75% were sorts to create a new brand. another examination by an actual person after granted less credit than they sought. of small firms denied credit a loan application was analyzed by a comput- An existing bank relationship seemed of Handling hipsters er and rejected, often because the would-be little help: Companies that borrowed in 2008 even starwood is stepping up its game. It should’ve been told yes borrower’s credit score was lacking. were rejected at the same rate this year as oth- opened its first New York Aloft property—a Recent Fed research concludes that er companies surveyed. less expensive version of W—in Harlem this BY AARON ELSTEIN lenders who rely on such automated models Successful applicants tended to be at month. The company will also unveil its first tend to exacerbate economic cycles by allow- least 5 years old,or showed growing revenues New York Element Hotel—an upscale, eco- half of small business owners whose ap- ing credit to flow freely during good times during the recession, or had enough cash on friendly hotel—in Times Square by year’s end. plications for loans or credit lines were reject- while closing off the spigot during periods of hand that they didn’t need financing in 2008. But playing in the same sandbox as hipsters ed by lenders would benefit from a “second difficulty. If banks had provided a second look to re- requires a different approach than most of look,” according to a study to be released to- The study is the New York Fed’s first ex- jected companies that had been around for at these conservative, shareholder-driven com- day by the Federal Reserve Bank of New York. amination of lending conditions specifically least five years, the overall denial rate could panies are accustomed to. Hyatt, for example, “Some applicants denied credit could be- at area small businesses. Its poll of 426 com- have been reduced by 13 percentage points. hired a theater company to show its new An- come viable borrowers, especially if given ac- panies, 70% of which had fewer than five The study also showed there still are plen- daz employees how to greet guests and antici- cess to second look programs,”New York Fed people on payroll, revealed: ty of reasons for lenders to be wary. Two- pate their every need. Manhattan-based researchers say in their report.“The impact of Just half of local small businesses that thirds of the companies polled had seen their Chicago City Limits Improvisational Theater such programs and services could be mean- applied for credit in the first half of 2010 were revenues decrease in the past two years, in- Co. held a three-hour workshop, using acting ingful,potentially reducing the pool of appli- approved. (According to a previous national cluding 49% that said revenues were down techniques to teach Andaz staffers to be “good cants denied credit by half.” study, 87% were OK’d in 2003.) “significantly.” See STRANGE on Page 30

October 18, 2010 | Crain’s New York Business | 3 20101018-NEWS--0004-NAT-CCI-CN_-- 10/15/2010 7:01 PM Page 1

COMMAND COMPLEX COMPOSED IN THE MARKETS COACH Aaron Elstein COGNIZANT by COLLABORATIVE CONTEMPORARY Paychecks: To shrink COUNSEL COZEN or not to shrink? CONFIDENCE ast week, I published an COURAGE O’CONNOR article on our website about CELEBRATES L investment bankers’ pay declining to levels last seen in COLLEAGUE 1990. A day later, a Wall Street COMMUNICATOR Geoffrey Ferrer, Corporate / Trial Lawyer Journal story predicted that compensation would reach a record high this year. Confused? You’re not alone.

Whether you need an unrivaled trial lawyer or corporate To arrive at its riveting istockphoto counsel who understands your business, our attorneys have the training and fl exibility to help you win. headline, “Wall Street pay: a record $144 billion,” the Journal measured how much revenue Wall Street firms reported over For worldwide offi ces, visit us at cozen.com. the first half and then estimated a figure for the second half. It then predicted that 32.1% of revenue—a smidgen lower than historic payout levels—would be used to compensate Abby M. Wenzel, Offi ce Managing Partner 277 Park Avenue employees. Sounds straightforward. But some caveats, please. New York, New York 10177 212.883.4997 | [email protected] First,the Journalis projecting rev- half by an unspecified amount, but enues in an industry where even the its overall pay expenses were higher Geoffrey D. Ferrer, Offi ce Managing Partner 16th Floor, 45 Broadway analysts who follow it have an awful because the firm brought in some New York, New York 10006 record of forecasting. Second, it used 12,000 new brokers when it bought 212.908.1201 | [email protected] a broad definition of “Wall Street,” Smith Barney from Citigroup. projecting results at 35 publicly trad- The biggest banks are harder to 550 Lawyers | 24 Offi ces ed companies, ranging from big read. At Citi, comp costs were down banks like Citigroup and Morgan Stanley 4% at the half, but that figure covers to money managers and exchanges. the entire operation, not just the in- The confi dence to proceed. With all due respect to the New vestment bank. Bank of America does York Stock Exchange, the amounts not offer such data on its investment ® paid to the geeks who keep its com- bankers, although its Merrill Lynch © 2010 Cozen O’Connor puters running aren’t what make wealth management division report- Wall Street bonuses such an explo- ed that pay was up 9% in the first half. sive topic.What drives people nuts is J.P. Morgan’s latest results sug- the year-end pay at places like Citi or gest pay pressures will only intensi- Morgan Stanley, which are among fy.Even though its investment bank the firms that had to be bailed out be- is having a strong year—taking cause they lavishly paid their people more companies public than anyone to take dangerous risks with the else—revenues are down 14% this mortgages and derivatives that year and slid 29% in the third quar- brought down the financial world. ter. A sudden lift in revenue could Yes, it’s possible that the bailed- ease the pressure but seems unlike- out firms will thumb their noses at ly, given the economy. Meanwhile, the world and pay their people even future operating costs are expected more lavishly this year.But the actu- to continue rising as stricter regula- al compensation figures they’ve dis- tion takes hold. So if J.P.Morgan is closed so far suggest no such thing. going to lift its returns,it must either J.P. Morgan Chase disclosed last sack bankers or pay them less. Right week that compensation costs in its now it prefers the latter course. investment banking unit through Sanford C. Bernstein & Co. an- the first nine months are down 10%, alyst Brad Hintz says a Morgan or $900 million, to $7.9 billion. Most Stanley official told him at a recent of these costs are accruing and will party (and after a few drinks) that be paid out as bonuses at year’s end. the firm has run the numbers and The average bonus is on track to fall determined that pay must return to to $299,000, from $354,000 at this 1990’s level. A tumble like that cer- point a year ago. (Oh, shed a tear.) tainly wouldn’t happen overnight. Goldman Sachs, which is expected But it does seem that the days when to report lousy third-quarter results the average Wall Street worker sees Tuesday, has already cut its comp a $191,000 bonus (that would be costs by 18%, or $2 billion, through 2006) are consigned to history. the first half. And Morgan Stanley “Credible people at credible says its costs for investment bankers firms,” Mr. Hintz says, “are saying and traders were lower in the first that pay has to come down.”

“YOUO KNOW OUR SOCIETY,, RIGHT? You know how many lawsuits go on, and class-action suits and stock-drop suits and WaMu suits and Morgan suits, and it ain’t going away. It’s becoming a cost of doing business.” Jamie Dimon e Business Bank —J.P.Morgan Chase CEO , explaining to analysts last week why his bank has set aside $4.3 billion in reserves this

year to cover litigation settlement costs bloomberg news Sterling4Biz.com 212.757.1100

20101018-NEWS--0006-NAT-CCI-CN_-- 10/15/2010 3:28 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

Tennis star to serve up memoir ennis great Rafael Nadal, who recently won the U.S. Open for Tthe first time, completing a career Grand Slam, may finally write a book. Literary agent Larry Kirshbaum is talking to New York publishers about a memoir—tentatively titled Rafael Nadal, My Story—that would be written with John Carlin, author of Playing the Enemy, which was the basis for the movie Invictus. Mr. Kirshbaum notes that his job right now is to gauge the level of interest among publishers. He was recently talking up the project at the Frankfurt Book Fair and received a number of provisional offers from overseas. “[Nadal is] a rock star in Europe and Asia,” the agent says. An effort about a year ago to put together a Nadal project petered out, but at that time, there was no co-author or formal proposal. It also helps that the top-seeded player has been on a roll lately. “The winning is important,” Mr. Kirshbaum says. “But there’s also a great family story here.The subtitle could be How to Raise Friending the Facebook a Fine Son Who Also Happens to Be a Tennis Champion.” Without bloomberg news Generation WCBS 880, which are getting a Hello Pasta SHEDDING LIGHT boost from campaign spending greets franchisees ON THE BOSS and from traditional advertisers Alienating Baby Boomers that don’t want to pay higher TV IF THE NEW HBO Bruce Spring- hello pasta, a restaurant chain rates. steen documentary, The A CRAIN'S ARTS & CULTURE BREAKFAST recently launched by former club “There’s a halo effect,” says Promise: The Making of Dark- THURS, NOVEMBER 4, 2010 | HILTON NEW YORK mavens Laurent Lesort of Michael Weiss, president of sales at Frederick’s Downtown and Nicolas ness on the Edge of Town, hasn’t CBS Radio. Barthelemy of Buddha Bar—along cured your Boss fever, head to Are you grappling with how to capture the attention of the the Morrison Hotel Gallery for a Facebook generation without alienating your core audience? If so, with Gregory Baratte of Louis Vuitton—is attracting more than dose of never-before-seen pho- Forget the gym; you are not alone. Meeting the challenge to develop new material a strong lunch business. tos taken by fellow New Jersey get the skinny suit that will attract younger audiences and figuring out innovative ways The partners already have two natives Frank Stefanko and to grab their attention are topic A for cultural organizations today. stores open in Manhattan, with Danny Clinch. The show, From men tired of sucking it in can Daunting yes, but also a huge opportunity. We've asked transfor- two more on the way. Now the Darkness to a Dream, runs now breathe a sigh of relief. mational leaders Katherine Brown, Ken Davenport, Oskar Eustis three Frenchmen, who styled their through Nov. 7 at 124 Prince St. Mohan’s Custom Tailors, based in and Peter Gelb to join us for a candid and insightful discussion to fast-casual eatery after popular the Grand Central area, recently share their recipe for success in bridging these convergent European pasta chains, say would- introduced the “skinny suit,” audiences to grow and evolve their businesses. be franchisees from as far away as designed to make a man look Florida and Hawaii are calling. thinner without the use of gut- “It’s nice to have people shrinking shapewear. Follow us on Twitter at @CrainsNewYork and interested in your brand,” says Mr. KJ Singh, sales manager at the get tweets from the event at #artsforum. Lesort, though he insists that any 30-year-old firm, says the wool- franchising deals are a matter for blend suit can make a man look as the future. Right now, the focus is much as 10 pounds lighter. on opening shops on Broadway clinchdanny “People are so health- and Maiden Lane. Blumenthal, spending on political conscious, and they work out And to keep competitors from advertising is expected to add now,” he says, explaining that the stealing their recipes, the owners about $45 million to local station suit’s small shoulders with light have so far refused to reveal their coffers between Sept. 1 and padding, a tapered waist, a shorter chef ’s name. Election Day, according to a jacket and higher-placed lapels all NETWORKING BREAKFAST: COST TO ATTEND: “We don’t want people to find station executive. contribute to the look. “Even him,” says Mr. Lesort. The money ain’t what it was if people are a little bit bigger 8:30am-9:00am $75 for individual tickets last year, though, when Mayor or heavier, this suit will $750 for tables of ten Michael Bloomberg was make them look slimmer.” PROGRAM: Political dough dominating the airwaves. And At only $500 a pop, the 9:00am-10:00am TO PURCHASE TICKETS: helps run TV’s show states where the races are tighter, slim suits are the same Visit crainsnewyork.com/events or like Florida and California, are price as Mohan’s PANELISTS: fax your business card and credit card new york television stations beating New York in the battle regular custom-made Katherine Brown information to "Arts & Culture are getting a stimulus package, but for dollars. suits—which sell to Rudy Exec. Director, New York City Ballet Breakfast" at 212-210-0499. it isn’t coming from the federal “This market is so blue,” the celebrities like government. executive says. “The only really Giuliani and Jared Ken Davenport Thanks to deep- contested race is in Kushner. Almost three Broadway Producer For more information, call the Events pocketed Connecticut.” dozen have been Oskar Eustis Hotline at 212-210-0739. You must be candidates like However, political ads, snapped up so far, Mr. Artistic Director, The Public Theater pre-registered to attend this event. Carl Paladino and which are sold at a discount, Singh says. Peter Gelb No refunds permitted. Linda McMahon tighten inventory and drive up General Manager, Metropolitan Opera (left), and their pricing for everyone else.TV’s Contributors: Lisa Ficken- opponents, windfall is also helping all-news scher, Matthew Flamm, Andrew Cuomo and Richard radio stations 1010 WINS and Adrianne Pasquarelli

6 | Crain’s New York Business | October 18, 2010

20101018-NEWS--0008-NAT-CCI-CN_-- 10/15/2010 5:22 PM Page 1

and is demanding that stations stop airing the ad. The narrator says Mr. Wilson’s QUINN’S REJECTION Paid sick leave THE INSIDER “pension scheme would send New PROPONENTS OF A BILL REQUIRING city employers to provide paid sick time Yorkers’ property taxes soaring,” rested their case on analyses of how such a mandate has worked in San by Erik Engquist and Jeremy Smerd while a footnote cites a Global Francisco. But City Council Speaker Christine Quinn says the left-coast Pensions article. But that article studies are not indicative of what effect such a law would have in New York merely quotes Mr. DiNapoli; the City because they preceded the worst of the recession and implementation of comptroller is using himself as a the national health care reform law, which might impose costs on small source. businesses. The article reports on a study by Moreover, says Ms. Quinn, San Francisco businesses Mr. DiNapoli’s office about what were not coping with a payroll tax like the one New York the state pension fund would have City businesses began paying last year to fund the returned over the past 20 years if Metropolitan Transportation Authority. entirely invested in fixed-income The City Council bill has 35 sponsors, enough to instruments. It does not mention override the veto promised by Mayor Michael future returns, property taxes or Bloomberg, but Ms. Quinn might have also suspected even Mr. Wilson—whose plan, in any case, is not what Mr. that not all 35 would vote to override the mayor. She DiNapoli’s study analyzed. “Harry says most of the sponsors remain solidly behind the never once said he’d do all fixed- bill but that some developed reservations upon income,” says Mr. Wilson’s hearing from the business community, which loudly spokesman. “He said we are taking opposed it. The speaker had her own finance staffers study Thomas DiNapoli Harry Wilson on too much risk now and he would seek to increase the fixed- the measure. They concluded that employee costs income percentage over time.” would rise by $0.44 an hour, which equates to Lowering the assumed rate of $700 to $1,200 annually per worker—enough to return triggers an immediate put some struggling businesses under, she says. Comptroller race increase in local governments’ Ms. Quinn also says that supporters and opponents contributions to the pension fund, could not compromise on how enforcement would which can trigger property tax work. getting uglier increases, says Frank Mauro, Negotiations on a compromise failed to bridge the executive director of the left- gap, and Ms. Quinn was not persuaded by lead sponsor n the increasingly nasty race for state comptroller, leaning Fiscal Policy Institute. But Gale Brewer’s offer to delay the bill’s effective date by he agrees with fiscally conservative two years. The speaker says she cannot predict that the incumbent Thomas DiNapoli released a commercial last groups that a return assumption is economy will recover by then. week that made opponent Harry Wilson’s blood boil. indeed an assumption, not a return. Finally, despite Ms. Quinn’s repeated denials that The ad makes three claims about Mr. Wilson, the Mr. Mauro says the assumption has political motivations played a role in her decision, insiders a greater effect on what localities believe otherwise—that rather than compete with several first two of which he doesn’t deny: that he favors pay into the pension fund in the keeping the Bush tax cuts for all income levels, and favors other Democrats for liberal voters’ support in the 2013 I near term, but ultimately, it is the mayoral race, she intends to court the business continuing to tax certain hedge fund profits as capital gains returns themselves that determine constituencies that have helped Mr. Bloomberg rather than regular income (a boon for anyone who’s a hedge taxpayers’ tab. win re-election twice. “But that’s not a winning Mr. Wilson argues that strategy in the Democratic primary,” one skeptic says, adding fund partner, which Wilson was until two years ago). optimistic return assumptions But Wilson’s camp calls the third claim a “total fabrication” necessitate risky investments that that Ms. Quinn, unlike the mayor, cannot self-fund a campaign. newscom

can leave taxpayers holding the bag. Martin Act cases against stock Market Leadership in Action Earlier this month, Mr. Wilson analysts with conflicts of interest stopped running an ad saying that and others who trumped up “hot Mr. DiNapoli was under stocks” were upheld, Mr. Dinallo investigation after the comptroller points out. Mr. Spitzer’s victory over Cassidy Turley ranked was cleared by Attorney General Marsh & McLennan executives Andrew Cuomo. was reversed not because of misuse of the Martin Act, but because #1 in offi ce sales in 3 prosecutors withheld evidence. Donovan disputed “Dan’s point was that he wasn’t of the top 6 markets. on Martin Act going to go for headlines at the expense of having solid cases,” says Rankings based on sales of $25 million and greater for the fi rst six months of 2010. when asked during a Crain’s Donovan spokeswoman Virginia editorial board meeting how he Lam. She adds that Mr. Donovan, Real Estate Alert would use the Martin Act if elected the Staten Island district attorney, Delivering weekly reports on the latest attorney general, Republican Daniel considers the Martin Act a sales transactions, commercial property Donovan said that he could not think powerful tool. news, broker rankings and exclusive insight on ROI opportunities to high of any Martin Act convictions from yield fund operators, brokers, investment Eliot Spitzer bankers and developers/owners. ’s tenure that survived appellate review. He cited the cases Gilli Vanilli against Marsh & McLennan sen. kirsten gillibrand has been Completed $4.1 billion Capital Markets transactions in 2009 insurance executives and Richard vocal in her support of gay marriage Grasso’s New York Stock Exchange and her opposition to the military’s Manage over 420 million square feet on behalf of private, pay package, and likened Mr. “don’t ask, don’t tell” policy, but a institutional and corporate clients Spitzer’s use of the act to extortion. Democratic consultant says she has But Eric Dinallo, who found new avoided risk during her 19 months 60 offi ces nationwide uses for the Martin Act as Mr. in office. Spitzer’s deputy, says Mr. “Gay marriage, [opposing] ‘don’t Donovan’s view is “so wrong, it’s ask, don’t tell’—they’re not ridiculous.” Mr. Dinallo says the controversial. Being against that is

To discuss maximizing reversals or acquittals came in cases controversial these days,” the source asset values and against individuals after the act had says. Ms. Gillibrand’s strategy is returns, contact Dean Mueller President Investor Services cassidyturley.com been used to achieve landmark working, however. “Everybody likes [email protected] reforms in financial industry vanilla,” the consultant says, noting practices, such as after-hours that liberals no longer paint her as a trading of mutual fund shares. gun-loving, anti-gay, conservative Furthermore, Mr. Spitzer’s toady of Al D’Amato’s.

CAPITAL MARKETS CORPORATE SERVICES PROJECT & DEVELOPMENT SERVICES PROJECT LEASING PROPERTY MANAGEMENT TENANT REPRESENTATION For daily political and government news, subscribe to © 2010 Cassidy Turley CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | October 18, 2010

20101018-NEWS--0010-NAT-CCI-CN_-- 10/15/2010 1:22 PM Page 1

VIEWPOINT Wilson for state comptroller editor in chief Rance Crain publisher, vp Jill R. Kaplan n the first public debate for state comptroller, rejected campaign contributions above $10,000, though he the two candidates clarified the choice facing abandoned that limit when his fundraising faltered. And he EDITORIAL editor Xana Antunes voters. Incumbent Thomas DiNapoli repeatedly has dutifully warned of risky budgeting by his former managing editor Glenn Coleman deputy managing editors Valerie Block, characterized his opponent, Harry Wilson, as “a colleagues, despite supporting such practices as a legislator. Erik Ipsen wizard of Wall Street.” The challenger However, there is nothing in Mr. DiNapoli’s background contributing editor Elizabeth MacBride disparaged Mr. DiNapoli as “a creature of to suggest he is cut out to be comptroller. Mr. Wilson’s talents columnists Greg David, Alair Townsend Albany.” and experience, in contrast, are superbly suited to the job. His politics editor Erik Engquist pulse editor Barbara Benson For the job of investing the $125 billion state pension fund financial acumen would let him lead rather than be steered by senior reporters Theresa Agovino, and auditing state spending, we’ll take the wizard. the staff that manages the pension fund. Aaron Elstein, Lisa Fickenscher, I Matthew Flamm, Miriam Kreinin Souccar From humble beginnings, Mr. Wilson became an Mr. DiNapoli is fond of warning that “Hedge Fund reporters Marine Cole, Amanda Fung, Daniel Massey, Adrianne Pasquarelli, academic star, earning Harvard degrees on scholarships, then Harry” would hand the pension fund to his “Wall Street Hilary Potkewitz, Jeremy Smerd making a fortune in finance. As the only Republican on buddies,” but in fact art director Steven Krupinski deputy art directors Carolyn McClain, President Barack Obama’s auto task force, Mr. Wilson Mr. Wilson proposes to Daniel Mednick played a key role in returning General Motors to profit. Wilson’s talents do the opposite—to staff photographer Buck Ennis copy desk chief Wendy Zuckerman Mr. Wilson, 38, has demonstrated a knack for fixing and experience move assets into fixed- copy editor Thaddeus Rutkowski troubled companies by improving management practices income and low-cost research editor Denise Southwood editorial interns Brian Chappatta, and company culture. State agencies, Medicaid and other are superbly index funds over time. David Montalvo, Laura Mortkowitz programs, and school districts would benefit from his It is Mr. DiNapoli who www.crainsnewyork.com suited to the job senior producer Elisabeth Butler Cordova expertise. Unlike typical Republican candidates, Mr. Wilson favors the riskier producer Kira Bindrim

does not claim that tax cuts will solve our problems—he says strategies that enrich EDITORIAL AND ADVERTISING OFFICES that solving our problems would allow for tax cuts. He is no financial firms. His 711 Third Ave., New York, NY 10017-5806 warnings about Mr. editorial: 212.210.0277 Fax 212.210.0799 slave to political ideology. advertising: 212.210.0259 Voters following the race should look past the name- Wilson are disingenuous and hypocritical. Cable craincom nyk calling, which plays on legitimate public antipathy toward Mr. Wilson promises to be a greater check on Albany’s Fax 212.210.0499 Entire contents ©copyright 2010 Crain Wall Street and Albany. Not all hedge fund partners are fiscal abuses than past comptrollers have been. He would Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP reckless swindlers destroying the economy. Not all Albany refuse to sign off on imprudent borrowing and other Inc., used under license agreement.

politicians are corrupt schemers bankrupting the state. legerdemain that lawmakers use to disguise dishonest TO SUBSCRIBE: Mr. DiNapoli, appointed by Assembly colleagues to budgeting. Critics say comptrollers lack such power, but Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. succeed disgraced comptroller Alan Hevesi in 2007, has been we’re eager to see what Mr. Wilson can do. www.crainsnewyork.com trying to do the right thing. His reforms—such as banning Harry Wilson has the courage, talent and independence middlemen from arranging deals with the pension fund— to invest responsibly, and the skill to excel at the other ADVERTISING AND MARKETING advertising director Trish Henry have aimed to insulate his office from the kind of corruption elements of the job. We strongly endorse him for state senior account managers that brought down his predecessor. Mr. DiNapoli initially comptroller. Irene Bar-Am, Courtney McCombs, William E. Squitieri account executive Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online Lulé Haznedari CRAIN’S ONLINE POLL COMMENTS newsletter product manager Alexis Sinclair credit Todd J. Masura 313.446.6097 WAS NJ GOV. CHRIS marketing director Amy Crossman assistant marketing manager CHRISTIE RIGHT TO KILL Sabra Harrison Food for thought director, audience development THE HUDSON RIVER John LaMarca STAMPS OF APPROVAL also not be purchased with food stamps. senior audience development manager RAIL TUNNEL? I would eliminate all fried foods, chips, Tarek Cotran restricting the use of food stamps to sugared cereals, candy, pastry. Date of poll: Oct. 11 general manager, interactive purchase sugar-sweetened beverages that have This would encourage parents to buy 369 votes Marc Minardo no nutritional value makes excellent sense and healthier foods. It also would encourage food web developer, interactive Chris O’Donnell Yes. Slamming is a logical way to help reduce obesity processors to make available baked and (Viewpoint, Oct. 11). breaded fish sticks and chicken fillets. on the brakes NEW YORK PRODUCTION

now is better . 39% The Metropolitan Council on Jewish —patricia elgee

than leaving Poverty supports state and city officials in their production and pre-press director the state on 61%. Michael Corsi efforts to enhance the nutritional aspect of the FASHION SENSE advertising production manager the hook for food stamp program, and we look forward to billions of Suzanne Fleischman Wies dollars. working together to help the needy lead vin cipolla of the Municipal Art Society of healthier lives. New York recommends a number of possible PUBLISHED BY CRAIN COMMUNICATIONS INC. —william rapfogel remedies to help retain a manufacturing base in chairman Keith E. Crain Chief executive the Fashion District (Opinion, Oct. 4). president Rance Crain No. New Jersey secretary Merrilee Crain desperately Metropolitan Council on Jewish Poverty However, he clearly misses the fundamental treasurer Mary Kay Crain needs this reality: If America’s fashion designers (both big executive vp, operations William Morrow project to DON’T STOP AT SODA and small) truly wanted to save manufacturing senior vp, group publisher Gloria Scoby improve its in the city, they would choose to make their group vp, technology, circulation, Robert C. Adams residents’ i have seen women in a store with a cart full of clothing and apparel here. It’s Economics 101. manufacturing commutes— vice president/production & soda, chips and candy, then pay for the lot with There needs to be a demand in order for there manufacturing David Kamis and property Paul Dalpiaz values. food stamps. to be suppliers. chief information officer Clearly, children who are on a diet of junk Preserved space and archaic zoning corporate circulation/audience food are at an academic and competitive restrictions do not create jobs; designers placing development director Kathy Henry founder G.D. Crain Jr. (1885-1973)

bloomberg news disadvantage to children on a healthy diet that orders at local factories do. chairman Mrs. G.D. Crain Jr. For this week’s questions: Go to provides the vitamins and minerals essential to —barbara randall (1911-1996) www.crainsnewyork.com/poll to have your say. growth. President Non-nutritional items besides soda should Fashion Center Business Improvement District

10 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0011-NAT-CCI-CN_-- 10/14/2010 6:57 PM Page 1

OPINION

Drum Major Institute. He argues that it is his union that has made ho- Hotel union plays tel workers in New York better-paid than those elsewhere and has created the kind of middle-class jobs the city needs. Starting hourly wages for high stakes are about $20 in New York and $8 in much of the rest of the country. y the numbers,the labor union movement in New Wages are even high at nonunion hotels like the Marriott Marquis be- York appears strong. The Bureau of Labor Statis- cause they need to compete with the tics reports that 24.9% of workers in the state are union to keep it out. Mr. Ward is unionized,the highest percentage in the nation and right about those economics. double the national rate. Most members are public But the emergence of limited- service hotels in the past few years, workers,B but unions remain a force in the private sector, repre- which don’t offer amenities such as senting 13.8% of employees. The city figures are almost identi- restaurants, has dented the hotel cal,according to a new study from City University of New York. union’s bulwark. Limited-service properties can succeed in New York only if they offer significantly lower Yet the movement in amenable.The deal col- prices than traditional ones—which the city is showing lapsed, and even Mayor they can’t do if they pay union cracks, none more obvi- Michael Bloomberg wages. So their owners, generally a ous than in the hotel blamed the union leader group of new entrants into the hotel workers’ union. Presi- for the closing of Tavern business, have put up stiff resistance dent Peter Ward’s grow- on the Green. to Mr. Ward’s organizing efforts. ing sense of alarm is Mr. Ward began try- Mr. Ward fears—and he’s prob- clear from the recent ing to organize the ably right—that if he can’t unionize Crain’s story on Dean Boathouse soon after limited-service hotels, traditional Poll, the owner of the Mr.Poll won the Tavern ones will seek to oust his union. Boathouse restaurant in contract in a move to Thus, he’s determined to make an Central Park (“He’s GREG pressure the owner to example of Mr. Poll. ready to move on; his DAVID accept his terms.The ef- The wild card—or maybe Mr. foes aren’t,’’ Oct. 4). fort has intensified as Ward’s ace in the hole—is the Mr. Poll was the Mr. Ward seeks to pun- Bloomberg administration. His es- winning bidder to operate the ish the restaurateur for not accept- say calls for the city to require hotels famed Tavern on the Green and of- ing the union’s terms at the Tavern. to be unionized. It’s not a far- fered the city far more money than This almost seems petty unless fetched request. The mayor has ac- it had received from the previous you understand the challenge facing ceded to such demands in the past. owner. But the city required him to hotel workers. That’s a shame. The mayor reach a deal with Mr. Ward, who Mr. Ward lays bare that chal- should know that whether a business represented the Tavern workers.Mr. lenge in an essay he wrote for a book is unionized should be left to the em- Poll’s business plan needed union called What’s Next for the New York ployer and the workers.His compro- concessions; Mr. Ward was not City Economy, published by the mises aren’t good for the city. JOIN CRAIN’S

number and values of SBA loans have risen this year. But that ADVISORY Lending help progress may not accurately reflect the situation with other types of loans to small business,as SBA loans make up a fraction of the overall PANEL market. for small business That’s why the new Small Busi- ness Jobs Act is so critical. By creating a $30 billion Small Business BY CAROLYN MALONEY Lending Fund, it will expand access to credit. Small and community ven as we enter the second year of the recovery, banks, which account for more than small businesses continue to struggle. A big part half of small business lending, will of the problem is that they can’t get the credit they receive capital from the fund on Looking for readers to share terms that become more favorable as need: 40% of small business owners report that they make more loans to such firms. views and opinions. they’re unable to access sufficient financing, ac- In addition, the legislation pro- cording to a recent survey by the National Small Business As- vides $12 billion in tax cuts to small E businesses, including an extension sociation.The small business legislation just signed by President of a bonus depreciation provision Barack Obama tackles the credit problem head-on. that had been in the Recovery Act and expired at the end of 2009.The Small businesses remain reluc- I’ve heard countless stories of extension allows small businesses to tant to hire.Though employment at loans being turned down for small write off half of the cost of invest- midsize and large firms began to businesses—good people with solid ments in new equipment in 2010. pick up in mid-2009, a report from operations who can’t get the money The new law throws a lot at the Sign up for FREE today. the U.S. Congress Joint Economic they need to support their day-to- wall. Though not every element of Committee shows that hiring at day operations and to expand. the legislation will dramatically www.crainsnewyork.com/advisory small firms remains flat and has de- After peaking at an all-time high move the needle, I’m confident we clined for the smallest—those with of 27.2 million in the second quar- got enough right to help jump-start CRAIN’S NEW YORK BUSINESS fewer than 50 employees. ter of 2008, the number of loans to small business hiring and maintain The tighter lending standards small businesses has dropped progress for New York City’s nearly established for small businesses af- 17.8%. At the same time, the total 200,000 small businesses. ter the financial crisis are still in value of loans made fell by $60 bil- place and have slowed their ability to lion, to about $650 billion. Rep. Carolyn Maloney represents parts of grow.Unlike larger businesses,small While the national picture is Queens and Manhattan in the House of ones lack alternative ways to raise challenging, we see a few encourag- Representatives, where she chairs the Joint funds and rely mostly on bank loans. ing signs in New York City.Both the Economic Committee.

October 18, 2010 | Crain’s New York Business | 11 20101018-NEWS--0012-NAT-CCI-CN_-- 10/14/2010 6:31 PM Page 1

OPINION

right coalition must come together scarcity of government dollars, the this unified approach that we are and put aside parochial concerns. idea that we can propose additional getting the No. 7 subway extension Pulling together First, members of the business unaffordable plans without priori- constructed on Manhattan’s West community have been on the side- tizing them is folly. The business Side, with funding from the future lines for too long regarding regional community must also weigh in and tax revenues that new development infrastructure such as ARC, while advocate for projects that enhance at Hudson Yards will yield. In con- for tunnel, region benefiting from the relative ease not only transit, but also economic trast, other well-intentioned proj- with which their employees travel to development and the tax base, ects, like the full-length Second work on rail built by our predeces- with a predisposition toward proj- Avenue Subway and the Fulton BY VISHAAN CHAKRABARTI sors. No one has more to lose than ects like ARC that have the poten- Transit Center, offer virtually no employers if millions face an ever- tial to yield both new infrastructure economic development potential to usiness, labor and transportation advocates more-constrained mass-transit sys- and new development. help underwrite the massive public should rally around the news that New Jersey Gov. tem. Business on both sides of the expenditures they require. Hudson should fiercely advocate for Once our priorities are in place, Chris Christie has agreed—thanks to the extraor- ARC. Big-city rivals we need congestion pricing, public- dinary efforts of U.S.Transportation Secretary Ray Second, the construction indus- private partnerships, tax-increment LaHood—to review his decision to kill Access to try must reconceive how it prices in- have learned to financing and project labor agree- the Region’s Core, a long-planned project to add a second rail frastructure if it wants to build it. ments to help fund the infrastruc- B Today, China outspends the U.S. by grow, compete; ture we will need to grow and com- tunnel under the Hudson. a factor of 14 on rail infrastructure, pete in an environmentally sound Mr. Christie, by most accounts a responsible man, has been and the differential is much more so must we manner. Both traditional New York pronounced when our higher con- competitors like London and new subjected to scathing criticism since from this moment. struction costs are taken into ac- arrivals like Shanghai have fig- he announced he would kill ARC, The importance of ARC to the count.No one here is advocating for ured this out, and so must we if our but it is notable that both Mayor region’s economy cannot be over- the unprotected labor conditions of children are to have good jobs, bal- Michael Bloomberg and Gov. stated. Given the project’s promise emerging economies, but unions Everyone with a stake in improv- anced budgets, clean air and reliable David Paterson, no strangers to the to increase property values on both must continue to reform wage de- ing our infrastructure should join commutes. hard choices of governing, have sides of the Hudson, employ thou- mands and work rules in the face of forces to push for projects that en- been restrained in their response. sands of construction workers and our current crisis. Compromises hance both our transportation sys- Vishaan Chakrabarti is Marc Holliday State budgets are underwater, and add much-needed capacity to our must be found. tem and our competitiveness, such Professor and director of the real estate de- large infrastructure projects have a creaking, century-old regional tran- Finally,transportation advocates as the trio of projects that will im- velopment program in the Graduate School tendency to balloon in cost, so we sit infrastructure, ARC’s economic must take a hard look in the mirror. prove the underdeveloped Penn Sta- of Architecture at Columbia University. He should all advocate for a better,more and environmental merits are clear. The region’s transportation wish list tion area: ARC, East Side Access is also a consultant to the Moynihan Station cost-effective project to emerge But if it is to get back on track, the exceeds $30 billion. Given the and Moynihan Station. It is with project for The Related Companies.

CRAIN’S WELCOMES outside submissions to its opinion page. You may send a column of 475 words or fewer to [email protected]. Please include the writer’s name, address and telephone number.

The American Airlines Business SuiteSM Pick and choose from a range of products to create the perfect travel program for your business.

AcAirpass® Guaranteed discounted fares for last-minute travel.

Business ExtrAcA® Companies earn points while employees earn miles.

Incentive TrAcAvel® Reward customers and employees with the gift of travel.

Admirals Club® Stay productive with complimentary Wi-Fi and workstations at airports worldwide.

Group & Meeting TravelSM Discounted fares for groups of 10 or more.

Company Travel Cards Choose reward points, cash rebates or AAdvantage® miles.

See what we can do for you at AA.com/business.

AmericanAirlines, AA.com, Business ExtrAA, Incentive TrAAvel, AAdvantage, AAirpass, Admirals Club and We know why you ﬂ y are marks of American Airlines, Inc. oneworld is a mark of the oneworld Alliance, LLC. © 2010 American Airlines, Inc. All rights reserved.

12 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0013-NAT-CCI-CN_-- 10/14/2010 6:30 PM Page 1

Gone postal: new Moynihan vision

“That will really help alleviate a tower rivaling 1 Penn Plaza. The the marks outlining Hotel, retail above congestion at Penn Station,” says site on the northeast corner of Eighth the footprints of the train station may get Bronson Fox, a vice president of de- Avenue and West 33rd is now home tiny cells. Signs along velopment at MSDC. to a one-story Duane Reade. the wide corridors stamp of approval as ESDC is in talks with the devel- proclaiming the MAKING TRACKS: A roofed opers to sell the post office’s 2.5 mil- The end of an era building a fallout courtyard could become a glass- domed train hall, à la Grand Central. Farley is dismantled lion square feet of transferable air for now, the Farley building is shelter speak of an rights. Money from the sale would largely unused and off-limits to the earlier era, when the smerd jeremy BY JEREMY SMERD be combined with government fund- public. The exception is the main building teemed with workers who in the Internet era, the agency’s fa- ing to develop the train station.The foyer on Eighth Avenue, which will sorted the mail, designed stamps mous motto inscribed on the build- its exterior is a national landmark private developers would then pay continue to be used as a retail post and, until five years ago, shipped the ing’s facade will remain in perpetu- preserved for future generations. to renovate the remaining floors. office once the station is built. mail on the trains below ground. ity: “Neither snow nor rain nor heat But inside, the remnants from the The air rights will allow the de- A jail on the second floor that Much of that work is now out- nor gloom of night stays these couri- James A. Farley Post Office’s by- velopers to build high-rises. Vorna- once housed postal thieves has been sourced. And though the future of ers from the swift completion of gone days are numbered. do could transform a nearby site into disassembled. All that remain are the U.S. Postal Service is uncertain their appointed rounds.” n A recent walk through the building—usually off-limits to the public—revealed a catwalk where managers once minded employees sorting the mail. In upper-story offices, drop ceilings obscure the grandness of the rooms. And in an inner courtyard,copper covers a roof that was once glass. Developers would like to turn the interior of this prime real estate into a boutique hotel, which would occupy the top floors of a future train station to be named after the A Real Plan for late Sen. Daniel Patrick Moynihan. The Related Companies and Vor- nado Realty Trust envision a 200- Expanding Operations. room hotel on the upper floors of the front half of Farley, once the city’s central post office,says Fred Bartoli, project manager for Moynihan Sta- tion Development Corp.That group, a subsidiary of Empire State Devel- opment Corp., is transforming the bottom two floors of the six-story post office into a new Amtrak station. The grand tour mr. bartoli was among several ESDC staffers giving New Yorkers a glimpse of the future of Moynihan Station earlier this month as part of Open House New York, a weekend event showcasing the city’s architecture marvels. While a boutique hotel at the location is many years away,that is so far the most likely use of the space, Mr. Bartoli says. The Farley post office sits on an Anne D. Shybunko-Moore 8-acre site that spans two city blocks President, GSE Dynamics, Inc. on Eighth Avenue, between West 31st and West 33rd streets. The and State Bank Client Beaux Arts shell contains two buildings bisected by a breezeway, which will eventually be accessible to taxis. Designers say the copper-plated roof in the front half of the building will be replaced with a glass dome covering a train hall, similar to Grand Central’s main concourse. The back half of the building is Put Your Business in a Be er State. likely to contain retail shops, with big-box stores on the upper floors. Every day provides new possibilities to prove dreams can be realized. Those floors are now empty except for covered catwalks with slots in the State Bank supports this visionary spirit with real people and real solutions walls.Postal managers used the slots to spy on their employees—some of that free your business to pursue opportunity – to imagine, to plan and whom may have been tempted to expand. You’ll nd proven expertise, genuine exibility and a relationship steal the mail or read a postcard or two, according to the tour guides. focus that inspires trust. More than bankers, we’re business people, While construction on the train station’s $267 million first phase is listening, learning and responding to your needs, so you can take on due to begin this month, the real es- tomorrow. is is the power that comes from pu ing your business in a tate downturn has put the private- 516.465.2300 public development of the later be er state. Opportunity is calling. Let’s get to work www.statebanko i.com phases on hold. The first phase will link the Farley building to Penn Sta- tion platforms, giving passengers a new exit on the section of the tracks that run below the post office.

October 18, 2010 | Crain’s New York Business | 13 20101018-NEWS--0014-NAT-CCI-CN_-- 10/14/2010 6:31 PM Page 1

REAL ESTATE DEALS PLUS

Lucky seven HOT HOOD square feet. Andrew Goldberg of CB DC outgains NYC Richard Ellis represented Bauman; on Madison Ave. Midtown South office space, Bric’s was represented in house.Links of London renewed its lease for 975 as of August park tower group has signed re- square feet, represented by Annette in office rebound newal and expansion deals with sev- Healy of CB Richard Ellis. Park en tenants totaling more than Tower Group was represented in- 66,000 square feet at 535 Madison Ave. 3.17M house for the retail renewals. The lthough prices of office buildings started Investment firm Morgan Kee- Square feet leased year to date, asking rents weren’t disclosed. rallying earlier in New York City than they did in gan committed to 28,750 square up 125% from a year earlier —marine cole feet for 10 years. The firm will take Washington, D.C., the nation’s capital is over an additional floor of the 37- currently leading the rebound. story building. Brian Goldman of Burger joint A Since the market hit bottom in the third Newmark Knight Frank and $42.82 snags space quarter of last year, prices of office buildings here rose 12.1% as Matthew Barlow of Studley repre- Avg. asking rent per sq. ft.; sented Morgan Keegan. up 37 cents in 12 months the competition is heating up of the end of the second quarter, according to the MIT Center Meanwhile,Canaccord Genuity, among burger chains in the Big Ap- for Real Estate.That’s impressive, but it pales in comparison a financial services firm, more than Source: CB Richard Ellis ple. Scheduled to open sometime with Washington’s 19.1% rebound since the market bottomed doubled its current 11,300-square- during the next three months, Jake’s there in the final quarter of last year. foot, second-floor space by adding Wayback Burgers, a Connecticut- 11,900 square feet on the third floor of the landlord in all three deals. based chain boasting “handmade Separately, the MIT Center also compiles an index in a 12-year deal. Robert Thuss of Financial planning company Ur- burgers” and “quality hot dogs,” has focusing solely on the trophy commercial buildings in the Cushman & Wakefield samine Credit Advisors signed a 15-year lease at 125 Livingston three major office markets of New York, Washington and San represented the tenant. also renewed its lease for St., between Boerum Place and That index has risen 16.9% Both firms will make 4,100 square feet for a year Smith Street, in Brooklyn. This will Francisco. since bottoming out, a their moves next year. and a half. Giorgio Versea be its first New York City location. performance that contrasts sharply with the broad national Kobe Steel USA, a di- of George Comfort & The asking rent for the 2,000- market. On a national level, average prices of versified producer of mate- Sons and Mr.Briody of CB square-foot space was $55 per square rials and machinery,signed Richard Ellis represented foot. “They came within spitting commercial properties remain tributed more to the three-city-in- a 10-year renewal for 6,200 the tenant; Mr. Gell repre- distance of that number,” says Tim mired near their seven-year lows of dex rally than their counterparts in square feet. John Moxley sented the landlord. King, the CPEX Real Estate broker October 2009. New York. and Hitoshi Aratani of Three retailers also re- who, along with colleagues Ryan Although the data on the trophy “New York is prominent in the Jones Lang LaSalle repre- newed leases. Bric’s, an in- Condren and Eric Altschul, repre- buildings isn’t broken down by city, three-city index, but D.C. is even sented the tenant. ternational designer of lux- sented landlord the Sperry Family. David Geltner, director of research more prominent,” says Mr. Gelt- Brian Gell and Lau- ury luggage, re-signed for Ray Villafana of Franchise Real- at the MIT Center, notes that tro- ner. rence Briody of CB Richard 1,600 square feet and Bau- ty represented the tenant. phy buildings in Washington con- —marine cole Ellis negotiated on behalf 535 Madison Ave. man Rare Books for 1,100 —adrianne pasquarelli

Meet Julie Amsden.

Hammondsport native. Mom. Local landowner. Supporter of natural gas.

“I’m very excited about natural gas drilling. It’s clean gas. It’s highly abundant. And the potential in this region is huge. Drilling would bring a huge economic beneﬁt to New York State, not only in terms of generating tax revenue, but also in terms of jobs—creating jobs in this area and bringing people to this area. It’s just a huge economic opportunity that I think we, as upstate New Yorkers, need to capitalize on.”

To learn more about natural gas in our communities, visit www.FriendsOfNaturalGasNY.com

14 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0015-NAT-CCI-CN_-- 10/14/2010 6:29 PM Page 1

NEIGHBORHOOD JOURNAL

that will spur similar firms to start S.I. green plan takes root at landfill up and expand in the city. The construction of the Fresh Kills Park is itself expected to create Staten Island green zone would be ployees. The Staten Island green He notes that such businesses in- opportunities for green companies, Area near Fresh Kills one of the largest of those. zone would use its glut of available clude carpet recyclers, large-scale which could supply materials for Park tries to lure Officials at other designated in- land to attract companies with 60 or solar panel manufacturers and the project. The Parks Department dustrial business zones, such as the more employees. biodiesel plants. estimates it will take 25 years to eco-friendly firms; Brooklyn Navy Yard, talk about “We don’t have much of a green complete. incentives offered their greenness, but none of those Big spaces in demand [industry] foothold now in New “We have a lot of people in the areas are designated solely for green in brooklyn, the demand seems to York City,” says Jonathan Bowles, construction industry who are out of industry—the Staten Island zone be on the rise. director of the Center for an Urban work,”says Linda Baran,chief exec- BY KATIE HONAN would be the first. “What we’re seeing is an uptick Future. “It makes sense for Staten utive of the Staten Island Chamber The Navy Yard is one of the most in demand for large spaces that can Island, unlike other boroughs, since of Commerce. “The types of jobs nhappily, Staten Is- successful zones like it in the city, be turned into large green business- it has some space.” created in the zone would be a good land has long been but the majority of the businesses es,” says Andrew Kimball, chief ex- He adds that hopefully such fit here because we have a lot of known for its Fresh are small, with fewer than 10 em- ecutive of the Brooklyn Navy Yard. companies can become a catalyst tradespeople for those jobs.” n Kills Landfill—the 2,200-acre, 225-foot- Uhigh garbage dump that closed in 2001 after over 50 years of use. Now the eyesore is at the center of the borough’s ambitious efforts to go green. The dump is in the process of becoming Fresh Kills Park, which, at nearly three times the size of Central Park, will rank as the largest park in the city. New York is different. It is also at the center of plans by the Staten Island Eco- nomic Devel- opment Corp. So is City National. for a sprawling new green zone covering 4,100 acres of underutilized land abutting e City National difference? Two simple words: our people. City National the park in the island’s West NEW USE: A 4,100- colleagues have the experience and resources to deliver tailored financial solutions. Shore area. acre green zone is planned for Staten SIEDC Island’s West Shore. ■ plans to use Award-winning service various tax breaks and other incentives to entice ■ A full range of commercial banking services: eco-friendly businesses to move into several empty or largely vacant in- lending, cash management and foreign exchange dustrial buildings in the area or develop new ones. ■ Wealth management to preserve and grow your wealth Steven Grillo, project manager for SIEDC, notes that the estimat- ■ Financial strength and stability ed 285 businesses already in the zone range from machine shops and cement companies to a day care center. Almost half have already imple- mented some green measures or could easily become fully green. For a different kind of financial relationship contact us today. Businesses could also adapt minor changes, such as installing energy- Private Client Services Wealth Management Entertainment Division Broadway Team efficient lighting or compost bins. The amount of tax incentives the Robin Balding Geoff Sargeant Richard McCune Stephanie Dalton businesses receive would be geared (917) 322-5202 (917) 322-5245 (917) 322-5237 (917) 322-0641 to their degree of greenness. [email protected] geoff[email protected] [email protected] [email protected] “Businesses don’t have to change their lives to be completely green,” 400 Park Avenue, 7th Floor, New York Mr. Grillo says. To help draw clean-tech businesses to the area, SIEDC is looking to tap into various federal, state and local incentives. The effort has gained support from the New York State Energy and Research Devel- opment Authority. Meanwhile, Staten Island City

Councilman James Oddo has spon- ©2010 City National Bank sored a resolution to recommend that Albany designate the area a green zone. In addition, Rep. Michael McMahon,who represents the island and parts of Brooklyn, has sponsored a bill in Congress to develop 40 green cnb.com Member FDIC zones around the country. The new

October 18, 2010 | Crain’s New York Business | 15 20101018-NEWS--0016-NAT-CCI-CN_-- 10/15/2010 2:57 PM Page 1

Newtown Creek ready for a scrub from Queens is surprisingly upbeat. and, more important, nonpollut- less Properties. Recent Superfund “It’s basically good news,” says ing—newcomers. They include The firm owns a Rep. Anthony Weiner, who repre- Union Beer Distributors,Acme Ar- 41-year-old, FIRST STEP: The EPA designation seen as will gather information sents the area in Congress. “We’re chitectural Walls and Island Trans- 400,000-square- on waste storage along positive, but effort on the path to getting this problem portation. Most insist the damage foot warehouse Newtown Creek. remediated.” was done long before they arrived. on the creek,on a will take 20 years In making its move, the EPA cit- In fact, the EPA has already named site once occu- buck ennis ed toxic pollution—contaminants BP America, ExxonMobil, Texaco pied by Texaco.Today, Peerless leas- burg, Long Island City and BY MARINE COLE ranging from pesticides and heavy and the City of New York, which es its space to Empire Merchants, a Maspeth—has long been a no- metals to polychlorinated biphe- still dumps some raw sewage into wine and liquor distributor. man’s-land, a gritty industrial area three weeks after the U.S. Envi- nyls—left behind over the course of the creek. seemingly immune to the gentrifica- ronmental Protection Agency des- “more than a century.” “We weren’t popping champagne Can’t get worse tion that has transformed Williams- ignated Newtown Creek a Super- The cleanup is expected to take corks when the site was listed, but one reason why so many are see- burg and parts of Greenpoint and fund site, the mood along the banks nearly 20 years and to cost billions. on the whole, we see the designa- ing the bright side of blight is that Long Island City. And while the of the odoriferous 3.8-mile water- But most of the scores of businesses tion as positive,” says Steven Russo, the area—which includes narrow city’s brand-new $5 billion sewage- way that separates parts of Brooklyn along the creek today are small— an environmental lawyer for Peer- swaths of Greenpoint, Williams- treatment plant there is very hand- some, it’s not exactly an ideal neighbor for an upscale condominium. The situation around Newtown Creek contrasts sharply with that of the city’s other recently designated Superfund site,Brooklyn’s Gowanus Canal, just five miles south. There, the designation was fought by city officials, residents and developers who worried that it would set back redevelopment for decades. Devel- oper Toll Brothers confirmed those fears within days by pulling out of plans to develop 450 units of mixed- income housing on the canal. Even though businesses and landowners around Newtown Creek reckon they have little to lose, they still do have some concerns. Nearly two dozen people met at an old factory on the creek early this month to discuss the potential impact of the Superfund designation. Some ex- pressed concerns that they could get caught up in a legal maelstrom. “It’s not just about the cleanup; it’s also about the litigation,” says Ryan Kuonen, tenant organizer at Neighbors Allied for Good Growth, which called the meeting. Information needed experts say it will likely take many years of effort—and litigation—to finally sort out who owes what for cleanup. That process will begin in the next few months,when the EPA will start mailing queries to any en- tity that might provide information on waste storage or waste management along the creek.The letter will seek descriptions of quantities of hazardous substances stored, treated or disposed of at Newtown Creek, and names of others who might have such information,says Louis Evans, a counsel at Herrick Feinstein. “This could potentially put people out of business,” says Leah Archibald, executive director of the East Williamsburg Valley Industri- al Development Corp., who fears that lenders may end up redlining the area as unbankable. Then there are those who swear that decades after the worst pollution stopped and years before the cleanup begins,the creek is quietly making its own comeback.The Newtown Creek Alliance sponsors well-attended bik- ing and walking tours; the Working Harbor Committee is planning a boat tour at the end of the month. Even the sobersided EPA has seen a glimmer of light. In a report, the agency noted, “Some residents currently use the creek for recre- ational purposes such as kayaking, while others eat the fish they catch from the creek.”

16 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0017-NAT-CCI-CN_-- 10/14/2010 4:59 PM Page 1

SMALL BUSINESS INSIDE How-To Here are groups that will help businesses get political PAGE 18 Hits & Misses A stand-up comic puts exercise into his act PAGE 22 Fastest-growing area firms PAGE 23 DebtDebt maymay crumblecrumble theirtheir cookiecookie

THE DOUGH’S NOT RISING: Jen Houston and Charley Tucker of This Chick Bakes now have a financial consultant on board. “We’re going to reach a point where we have to grow or stop,” Mr. Tucker notes.

They financed their bakery startup largely on credit card debt. Can this business be saved?

BY ELAINE POFELDT

WHEN CHARLEY TUCKER AND JEN HOUSTON started PMS Kookie Kompany in 2003 from his apartment on First Avenue, the cookie wholesaling business seemed like an ideal way for the two East Village actors and musicians to add to their unsteady income. Ms. Houston had a knack for coming up with treats that satisfied customers’ cravings, like the Pouty Peanut Butter Blast, a sort of giant peanut-butter cup, and the Crampy Cashew Chocolate Chunk bar. Mr. Tucker found he was good at persuading local cafés to sell their treats, made from high-end chocolate, plus organic and natural ingredients. After they hired a part-time salesperson in 2004, they built up a roster of about 15 to 20 steady wholesale clients, ranging from Joe Coffee cafés to York Theatre Company.They have now built that up to roughly 30. See CAUGHT on Page 20 buck ennis

SURVEY SNAPSHOTS: CARD-CARRYING MEMBERS OF THE SMALL BUSINESS COMMUNITY Over the past five years, how have Has your firm used credit cards in the past What payment pattern do you use What is the interest rate charged the terms of your credit card changed? 12 months to meet capital needs? for your credit cards? on your primary credit card?

Source: National Small Business Association

October 18, 2010 | Crain’s New York Business | 17 20101018-NEWS--0018-NAT-CCI-CN_-- 10/14/2010 6:28 PM Page 1

REPORT SMALL BUSINESS

HOW-TO To get political, here’s where to find support

ing much to help her situation. An array of lobbyists, Asked about their biggest chal- some with hidden lenges in a recent Citibank survey, many entrepreneurs named road- agendas, speak for blocks that have origins in Wash- entrepreneurs ington: higher taxes (cited by 48%), tighter business regulations (men- FED UP: Sandra Holtzman of tioned by 40%) and the cost of Holtzman Communications BY ELAINE POFELDT health insurance (reported by 40%). feels that Washington isn’t Then again, with the Small interested in helping small andra holtzman is so fed Business Jobs Act signed by Presi- business owners. up with Washington that dent Barack Obama in late Sep-

she is reluctant to vote. tember—with targeted tax cuts for buck ennis Frustrated by the high tax- startup expenses and equipment es she pays as a sole propri- purchases, and a $30 billion loan New York City.” FOR ENTREPRENEURS NONPARTISAN ADVOCATE Setor and angry about giving up two fund that community banks can tap Mr. Corbett recommends that The Freelancers Union National Small longtime doctors because of into—some observers say the tide small business owners join forces www.freelancersunion.com Business Association changes to her health plan,she’s cer- may be turning. Is someone in and meet with Congressional repre- www.nsba.biz tain no one is listening to small busi- Washington, D.C., finally listening sentatives about their concerns, a with 145,000 members across the ness owners like herself. to entrepreneurs? strategy that he says can be surpris- country, including 90,000 in New founded in 1937,this nonprofit rep- “I am so cynical,”says Ms.Holtz- “The focus on small business has ingly effective. York, this nonprofit champion of resents about 10,000 members.“We man, founder of Manhattan bou- certainly been ramped up in Wash- Don’t have time to get organ- solo entrepreneurs has seen its influ- pride ourselves in being nonparti- tique marketing firm Holtzman ington and New York in recent ized? There are a number of organ- ence increase in recent years. One san,” says Chairman Larry Nannis. Communications. “It’s beyond Re- months, related to this jobs bill,” izations, including several with top priority now is the passage of a NSBA supported the Demo- publican and Democrat. No one is says Bill Corbett Jr., a publicist who strong New York presences, that are bill in the state Legislature that will crats’ Small Business Jobs Act. Like interested in helping the small busi- does government relations work in willing to keep you informed—and protect freelancers whose clients NFIB, it opposed the law that re- ness owner anymore.” and around New York City. “It’s speak up for you—as the November don’t pay them for their work. The quires small business owners to send Ms.Holtzman isn’t alone in feel- clear that small businesses are the elections approach. Here are some group recently endorsed Sen. Vel- 1099 forms for purchases over $600. ing like the Beltway crowd is not do- economic engine of this country and of the options. manette Montgomery, D-Brook- NSBA’s website offers a chance to lyn, for state Senate, because of her send legislators “action alerts,” in support of the unpaid wages bill. which you can e-mail or print form “If a freelancer doesn’t get paid, letters to your elected representa- or it’s not the full amount,instead of tives on the positions it supports. the freelancer having to deal with “Our goal is to provide informa- the company by himself or herself, tion to our elected officials that will we want the Department of Labor allow small businesses to do what we to have jurisdiction,” says Free- do best:grow the economy and grow lancers Union Executive Director jobs,”says Mr.Nannis.Membership Sara Horowitz.Membership is free. dues, based on the size of a business, start at $250. HEALTH CARE IS NO. 1 National Federation A NEWS SOURCE of Independent Business The Small Business Majority www.nfib.com www.smallbusinessmajority.org among the top concerns for this group, invited to the White this 250,000-member, Washing- House health care summit in early ton, D.C.-based group are health 2009,was an important advocate for care, taxes and regulatory reform. health reform. “Health care has been the No. 1 is- Founded by technology entrepre- sue for our members for more than neur John Arensmeyer, a board 20 years,” says a spokeswoman. member of Bay Area Democrats,it is The group,which describes itself trying to get small business owners as nonpartisan, supported a failed involved in shaping how health re- Republican initiative to repeal a form takes effect as states set up ex- provision in the health care law that changes to sell insurance by 2014. requires small businesses to send out “There’s so much in the bill that im- 1099 forms for any purchases of pacts small business owners positive- $600 or more,which was included in ly,”says Mr.Arensmeyer.“They need the health care bill. Opponents said to understand how they can take ad- the requirement creates unnecessary vantage of it and have a voice.” Anchin, Block & Anchin LLP paperwork. NFIB also has recently The group,which has an office in At Anchin, our mission is to be our clients’ Expert Partner. pushed legislators to extend the ex- SoHo,is also focused on building up Accountants and Advisors We are never content to take a historical look at “what the piring tax rates for all taxpayers, in- the clean-energy economy. “We see cluding those with the highest in- this as a huge area for us going for- Frank Schettino, CPA numbers tell us.” Instead, we look to the future, helping our comes, a cause championed by ward,” says Mr. Arensmeyer. Managing Partner clients plan for the long-term growth of their business and Republican lawmakers. The Small Business Majority [email protected] NFIB’s Safe Trust PAC supports doesn’t offer membership, but it 1375 Broadway, New York, NY 10018 the preservation of their hard-earned wealth. Let’s look to the candidates who are in alignment with sends communications on the polls 212.840.3456 www.anchin.com future together. Let us connect you with Your Expert Partner. its positions. Memberships, tied to it commissions and other news. the size of the business,start at $180; Sign up for the newsletter on the NFIB has offices in all 50 states. group’s website. n

18 | Crain’s New York Business | October 18, 2010

20101018-NEWS--0020,0021-NAT-CCI-CN_-- 10/14/2010 4:31 PM Page 1

REPORT SMALL BUSINESS

Caught in credit card crucible Quiz: WHAT IS YOUR DEBT IQ? Even savvy small business owners can get tripped up by misconcep- Continued from Page 17 among legions of entrepreneurs It’s tempting to borrow more on tions about debt. Use this quiz to test your knowledge of business bor- The company, which has since trapped by the credit card debt they cards now,especially since the econ- rowing, devised with Nat Wasserstein, a crisis manager at Lindenwood been renamed This Chick Bakes, took on to start businesses and keep omy is just beginning to look up and Associates, which has offices in Manhattan and Upper Nyack, N.Y. now brings in close to $200,000 a them going. Over the past 15 years, bank loans are still difficult to get. year, with Mr. Tucker and Ms. credit cards have become one of the But such borrowing means that busi- TRUE OR FALSE: Using a credit TRUE OR FALSE: If you use a Houston working full-time along- most common types of small business owners have to reserve money card as the sole source of business credit card to borrow side four part-time and seasonal ness financing. The proportion of to cover increasing debt payments. 1 3 startup financing for a business money, you are not personally employees.The partners are consid- small businesses using cards for fi- “You’re always going to be using in today’s credit climate is a smart liable for the debt. ering opening a retail store. nancing jumped from 16% in 1993 debt payments to fill a hole that’s practice. But there’s a problem.To finance to 59% in 2009, the National Small created by growth from month one FALSE. In most credit card the business, the partners borrowed Business Association says. to month two,” says Nat Wasser- FALSE. “It is very risky,” Mr. agreements, the principal of the nearly $33,000 from Mr. Tucker’s stein, a crisis manager at Linden- Wasserstein says. “Interest rates are company is responsible both as an mother and a friend, about $30,000 Egos, careers, money at risk wood Associates,“That hole will get at historical lows, and there is no officer of the company and as the on business credit cards, and more individuals often put their egos bigger and bigger and bigger with- doubt they will be rising.” Credit personal cardholder, says Mr. than $20,000 on personal cards. and careers on the line to launch out ever being able to be repaid.” cards are a viable last resort, Wasserstein. Even if the business That debt has weighed down the businesses. Unfortunately, credit That’s not exactly news to Mr. however, if an entrepreneur doesn’t fails, you’re on the hook. firm—and the duo’s personal lives. cards make it easy to run up big Tucker and Ms.Houston.“I’m wor- have a shot at getting bank TRUE OR FALSE: The best time The partners manage to make debts that hamper growth. Entre- ried all the time,” says Mr. Tucker. financing. to borrow is when a business is $800 in payments every month, preneurs may then find that keeping The two met in May 2002 at the 4 which more than covers their credit struggling firms going is the only Oyster Bar in Grand Central,where TRUE OR FALSE: Using a growing. card minimums, but each takes only way to stay current on debts—even Mr.Tucker, then an actor, was tend- 2 personal credit card FALSE. At that time, it’s often $1,000 a month in pay. They have if it might make sense to walk away. ing bar, and they soon started dat- responsibly to borrow for your smarter to use a combination of indefinitely deferred repaying loans A survey by the U.S. Small Busi- ing. At the time, Ms. Houston was business will help increase your equity and debt for financing, Mr. from friends and family. ness Administration released in making a living by waitressing and company’s credit standing. Wasserstein says. That way, your Some of the business credit cards June found that while small business doing voice-overs for TV and radio FALSE. Your goal as an entrepreneur cash won’t be tied up as much in charge interest rates of close to 30%. owners make up about 12% of U.S. commercials. By November, the should be to build the debt payments—and you’ll have “I try to keep calling the banks households, they owe about 25% of couple was planning to start their creditworthiness of your business. more flexibility to adapt to to get them to drop the rates,” says household debt. Nearly 80% of that cookie company. “You can’t do that if you are using a unexpected adversity, like the loss Mr. Tucker. As for cash in reserve, is secured by residential real estate, “We said, ‘Instead of working personal credit card,” says Mr. of a key customer. well … “I own four or five guitars,”he meaning that if businesspeople can’t in restaurants, what can we do to Wasserstein. —ELAINE POFELDT says. “They don’t amount to much.” make their monthly debt payments, help ourselves in the future?’ ” Mr. This Chick Bakes’ founders are they risk losing their homes. Continued on Page 21

20 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0020,0021-NAT-CCI-CN_-- 10/14/2010 4:31 PM Page 2

REPORT SMALL BUSINESS

Tucker recalls. business just doesn’t work anymore. termining if it makes sense to open funding restaurants and cafés and “Either you are going to make some In 2003, he took out a low-inter- While Mr. Tucker talks openly a retail location. food businesses,” Mr. Shah says. money from the business, or you est $25,000 loan from the Actors about the despair he feels, it’s clear Mr. Shah isn’t alarmed by the That said, he thinks the pair has might as well fold up.” Federal Credit Union,where he had that neither he nor Ms. Houston is debt, looking at it as necessary a shot at bringing on an outside in- But Mr. Shah—a culinary stu- an equivalent amount of savings to ready to give up. They recently growth capital. He’s more con- vestor, such as a restaurant or café dent by night—realizes that’s not an use as collateral. The couple bor- placed an ad on Jasmere—a website cerned about positioning the firm to that would like to offer unique easy decision to make. rowed another $8,000 from a friend that promotes specialty retailers to attract an investor. He estimates baked goods without having to start “At one point, Jen looked over at to finance operations and marketing consumers—which yielded around that it would cost about $14,000 per a new product line. Mr. Tucker and me and said, ‘I just want people to efforts. Meanwhile, routine expens- 2,000 hits for their website. month to rent a “really good” retail Ms. Houston are also talking with a know that this is a product made by es, like trademark costs, mounted— “We baked and shipped more location, on top of at least $200,000 production company about doing a people who give a damn,’”he recalls. as well as some unexpected ones— cookies than we’ve ever made before to open the space, after costs like reality show to raise money. “That’s what makes them different.” leading them to their credit cards. in one day,”an exhausted Ms.Hous- getting permits, sprucing up the site Mr.Shah agrees that the partners Whether giving a damn will out- “We had a car stolen,” Mr.Tuck- ton said afterward. and hiring staff are factored in. need to make a decision soon about weigh the pressures of paying a big er says. “We had someone back into About three months ago,the duo the fate of This Chick Bakes. stack of credit card bills remains to another car and had no insurance. I brought on Jeff Shah, a Manhattan The funding shortfall “If Whole Foods wanted to buy a be seen. had to pay for that. These tragedies financial consultant, to help them “one of the problems, really, is bunch of their cookies, they don’t “It’s make-or-break time,” says would wring us dry.” figure out their next steps. He’s de- that there is not a great system for have the capacity,” he points out. Mr. Tucker. n To alleviate some of the loan payment pressure, Mr. Tucker borrowed $25,000 from his mother,and repaid his credit union in 2006. The team had other challenges, like finding affordable kitchen space. They took the subway one night a week to get to one kitchen in the Bronx. “We’d carry all our stuff on a rolling cart,make,bake and package everything,and get back on the train at 4 a.m.,” recalls Mr. Tucker. On top of this,they were squeez- ing in performances from their creative careers.Ms.Houston,an ener- getic woman with long, flowing black hair and a butterfly tattoo on her forearm,sang and danced every- where from cruise ships to touring repertory theaters.When Mr.Tuck- er played Afghan warlord Mah- mood in the William Mastrosimone play The Afghan Women at Penn State University, he commuted: He had to keep up his end of the baking. The breaking point as the pressures mounted, the partners ended their romance about three years ago. “The company wasn’t doing well,” says Mr. Tucker. “We weren’t doing well.We were together all the time,and everything in our lives was about this company. That’s what started to drive us apart.” They agreed to run the company together. “It’s like our child and we’re divorced,” says Mr. Tucker. Later in 2007,they came to another turning point. Mr. Tucker wanted to change the name of PMS Kookie Kompany to attract a wider customer base.Ms.Houston liked the edgy hu- mor of the original name. They brought in a business consultant to help them compromise, and ultimately decided on This Chick Bakes. It’s not always easy to run the business together. Mr. Tucker is moving in with his new girlfriend in the West Village; Ms. Houston already lives with her boyfriend in the First Avenue apartment where she once lived with Mr. Tucker. “We are supportive of each other,but as you can imagine,some days are just awful,” Mr. Tucker says. Taking only limited pay while working long hours has made it hard to move ahead with their lives. “I sacrificed my acting career and the things I came to New York to do for this business,” Mr. Tucker says. “I had hoped to start a family. “I don’t have any income,”he continues.“We’re going to reach a point where we have to grow or stop.” Against this backdrop, borrowing more in order to expand the

October 18, 2010 | Crain’s New York Business | 21 20101018-NEWS--0022-NAT-CCI-CN_-- 10/14/2010 4:32 PM Page 1

REPORT SMALL BUSINESS

mother at a Queens nursing home Newman has never made a ton of after she’d broken her hip. money,he says, but he’s always done “I’d never seen such sad faces,” something he loves doing. He knew HITS & MISSES says Mr. Newman. taking his act to seniors would re- If anyone needed a laugh, it was quire financial sacrifice, but he said Fledgling firm’s key moves by Tina Traster the folks at the nursing home. he felt as though it was “his calling.” In 2005, Mr. Newman, 54, de- Mr. Newman is a one-man opera- veloped Jokesercise, a combination tion; he works out of his Queens stand-up comedy and exercise pro- home. gram.At 6 feet and 220 pounds,Mr. He performs the majority of his Comic stretches his act with exercise Newman—who is also a certified one-hour shows at senior centers in personal trainer—is Jackie Mason Queens, Brooklyn, the Bronx and t took a sad day to change a stand-up comic’s life. For meets Richard Simmons.He inher- Staten Island. He toggles between two decades, Howard Newman—aka High-Powered ited his borscht belt repertoire from joke-telling and exercise instruc- his late uncle Morris Weisbrod, a tion. Typical attendance is at least Sponsors can IHoward—headlined nationally on the comedy circuit, vaudevillian comic. 100 seniors. He earns a living by reach a captive performing gigs at clubs like Carolines.Then he visited his An entertainer at heart, Mr. inviting sponsors such as HMOs, audience, Mr. Newman says

assisted-living facilities, reverse Our clients’ success is our success. mortgage companies and visiting nurses to finance him. In 2011, because of the ongoing recession, Mr. Introducing EisnerAmper, the leading regional Newman expects to earn only about accounting firm in the Northeast. $50,000. HITS Sponsors sign on when mr. newman first took his show to nursing homes and senior centers,they were willing to pay him between $100 and $150 per show.

SUCCESSsuccessbenet plans success The fitness jokester knew he’d Success success SUCCESS SUCCESSsuccessSuccess successSUCCESSsuccesssuccess FINANCIAL SERVICESSuccessSuccesssuccess starve, even if he did two shows a success SUCCESS successSUCCESSsuccess SUCCESSSUCCESS successsuccessSuccess success Success day, five days a week. So he began ValuationSUCCESS SUCCESS Success SUCCESSSUCCESS Success cold-calling companies like David SUCCESSSuccess SUCCESS Lerner, the Visiting Nurse Service successSUCCESS SUCCESS Success of New York and Brandywine As- SUCCESS SuccessSuccessSuccess SUCCESS SUCCESS Success sisted Living.Without too much ef- SUCCESS SuccessSuccess

SUCCESS Success fort, he recruited sponsors for each SuccessSuccess Success show—occasionally as many as Success Success eight.With each paying him a $100 SUCCESS fee, Mr. Newman’s gigs were more Success Success From Main Street Success to Wall Street. Success profitable. In return, sponsors hand SUCCESS SUCCESSSUCCESS out gifts and information to audi- successSuccess ence members. SuccessSuccess Tax Planning “This is a very inexpensive way SuccessSuccess for these companies to reach a cap- Success Success Success SuccessSuccessSuccess tive audience,” Mr. Newman says. Success Success Success SuccessSuccess SuccessSuccess SuccessSuccessBusiness Services SUCCESSAuditSuccessSuccess SUCCESS IPOs Success MISSES SuccessSuccess SuccessSUCCESSSuccessSuccess SuccessSUCCESSSuccess More marketing needed jokesercise has been hit hard during the recession. Sponsors are harder to recruit now.Mr.Newman believes he can continue his work only if he finds dedicated national sponsors. “I spend too much time Charles Weinstein, CPA trying to recruit local sponsors to Chief Executive Officer each and every upcoming show—I 212.949.8700 need something more reliable.” Trouble is, Mr. Newman says, he Howard Cohen, CPA hasn’t been able to gain any access Chairman to national players. “I’ve tried with 732.287.1000 Walgreens and Rite Aid, but I can’t get past the gatekeepers,” he says. www.eisneramper.com Mr. Newman, who never went to college, says his lack of a college education and professional mar- EisnerAmper LLP keting experience is holding him Accountants & Advisors back. Furthermore, he does not have the budget to hire experts.But Eisner LLP and Amper, Politziner & Mattia, LLP have combined this comic is not completely with- their accounting, tax and advisory services practices. New York | New Jersey | Pennsylvania | Cayman Islands out hope: He recently made a demo of his show and is sending it to cable networks.“I’m hoping someone will pick it up as a morning show for seniors,” he says. “A few laughs. A little exercise. What’s not to like about that?” n

22 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0023-NAT-CCI-CN_-- 10/14/2010 6:29 PM Page 1

REPORT SMALL BUSINESS New York Area’s Fastest-Growing Companies Based on the sum of firms’ rankings in revenue growth rate, net income growth rate and share price appreciation

'4=11D1-= '4=11D1-= -99@-75E10 -99@-75E10 7:>593 =1A19@1 91?59/:81 '4=11D1-= ;=5/12:= 3=:B?4 =1A19@1 3=:B?4 91?59/:81 >4-=1;=5/1 >4-=1>:9 %-96 :8;-9D'5/61=>D8.:7 #4:91*1.>5?1 =-?1%-96 5985775:9> =-?1%-96 5985775:9> -;;=1/5-?5:9%-96 90@>?=D[email protected]=:218;7:D11>

&:70593>:=; &, 0C0?A>24BB8=6 (0A:E4 +>DC7 &4F/>A: &/ FFF 7;38=6B 2>< 99-7D-;5?-7 -9-31819?9/ ! , *40;4BC0C48=E4BC<4=CCADBC +8GC7E4 &4F/>A: &/ FFF 0==0;H 2>< :395E-9?'1/49:7:3D&:7@?5:9>:=; '& +>5CF0A4 ;4=?>8=C44=CA4.4BC ,40=42: &" FFF 2>6=8I0=C 2>< #-=#4-=8-/1@?5/-7:> #%+ (70A<024DC820;B ,824;E3 .>>32;855$0:4 &" FFF ?0A?70A< 2>< 59-9/5-79/ *40;4BC0C48=E4BC<4=CCADBC (0A:E4 &4F/>A: &/ FFF <50 A48C 2>< ;;-=17=:@; ??0A4; +4E4=C7E4 &4F/>A: &/ FFF 6 888 2>< ->?1=-=09/ (0H<4=CB>;DC8>=B (DA270B4+C (DA270B4 &/ FFF <0BC4A20A3 2>< .:A191?9/ )' &4CF>A:B4AE824B0=32><=B 0<8;C>=E4 .78C4(;08=B &/ FFF 01>E4 =4C 7-/6%:/69/ !=E4BC<4=C03E824 =3+C &4F/>A: &/ FFF 1;02:A>2: 2>< F=:;:>?-719/ %" ??0A4;BC>A4B . C7+C &4F/>A: &/ FFF 04A>?>BC0;4 2>< 5:%121=19/1 -.:=-?:=51>9/ % %43820;;01>A0C>A84B 3F0A3 *>BBA8E4 ;>3(0A: &" FFF 18>A454A4=24 2>< =1>-;5?-7:=; % 8=0=280;B4AE824B (0A:E4 &4F/>A: &/ FFF 0A4B20?8C0;2>A? 2>< ':B1==:@;9/ '*# !=BDA0=24 A>03F0H &4F/>A: &/ FFF CFA6A? 2>< &5=:9-19?-7&D>?18>9/ &%" 4=C0;4@D8?<4=C C7E4 $>=6!B;0=38CH &/ FFF B8A>=0 2>< 8'=@>?59-9/5-7&1=A5/1>9/ & !=BDA0=24 %0834=$0=4 &4F/>A: &/ FFF 0D? 2>< &539-?@=1-96 &!, 0=:8=6 85C7E4 &4F/>A: &/ FFF B86=0CDA4=H 2>< 173191:=; 8>C427=>;>6H %>AA8BE4 +D<<8C &" FFF 24;64=4 2>< 59/:790@/-?5:9-7&1=A5/1>:=; ! (>BCB42>=30AH43D20C8>=0;B4AE824B G42DC8E4A8E4 .4BC'A0=64 &" FFF ;8=2>;=43D20C8>=0;B4AE824B 2>< 10/:1-7?4&:7@?5:9>9/ & (70A<02H14=458CB<0=064<4=C (0AB>=B(>=3A8E4 A0=:;8=$0:4B &" FFF <432>740;C7 2>< =5>?:7 D1=>&<@5..: , (70A<024DC820;B (0A:E4 &4F/>A: &/ FFF 1< /:95C=-90=:@;9/ "! $824=B8=60=31A0=3<0=064<4=C A>03F0H &4F/>A: &/ FFF 82>=8G1A0=3 2>< *-=9-/:=:@;9/ *% ??0A4; +4E4=C7E4 &4F/>A: &/ FFF F0A=02> 2>< !',9/ !', (70A<024DC820;B 'AE8;;4A8E4 >74<80 &/ FFF =1CH 2>< @0>:95?D-9/:=;9/ 0=:8=6 .4BC 4=CDAH*>03 (0A0< 7-/6%:/617>:-;5?-7:=; 8=0=280;B4AE824B =3+C &4F/>A: &/ FFF 1;02:A>2: 2>< C7&1=A5/1:70593>9/ + & 0C0?A>24BB8=6 (0A:E4 &4F/>A: &/ FFF 4G;B4AE824 2>< #-77:=; # !=3DBCA80;4@D8?<4=C 0A1>A(0A:A8E4 (>AC.0B78=6C>= &/ FFF ?0;; 2>< :73-?1#-78:75A1: 40;C70=3140DCH083B (0A:E4 &4F/>A: &/ FFF 2>;60C4 2>< 19=D&/41599/ & %43820;0=37>B?8C0;4@D8?<4=C DAH40*>03 %4;E8;;4 &/ FFF 74=AHB2748= 2>< 9?1=#-=2@8>9/ #% A06A0=24B0=3140DCH083B 85C7E4 &4F/>A: &/ FFF 8=C4A?0A5D< 9A1>?:=>-9/:=;9/ & 0=:8=6 "#(0A:F0H +7>AC 8;;B &" FFF 8B1=9 2>< )577-31&@;1= -=61?9/ ) A>24AHBC>A4B %>D=C08=E4 +?A8=6584;3 &" FFF B7>?A8C4 2>< %13191=:9#4-=8-/1@?5/-7>9/ %! = < 8>?70A<024DC820; ';3+0F%8;;*8E4A*>03 ,0AAHC>F= &/ FFF A46= 2>< :-/49/ " $40C74A?A>3D2CB . C7+C &4F/>A: &/ FFF 2>027 2>< 71-/41=: = < !=E4BC<4=C10=:8=6B4AE824B +8GC7E4 &4F/>A: &/ FFF 6;40274A 2>< :49*571D&:9>9/ * (D1;8B78=6 *8E4A+C >1>:4= &" FFF F8;4H 2>< -=019:=; >=BD<4A?A>3D2CB ,74>3>A4A4<3E4 *H4 &/ FFF 90A34= 2>< %-=09/ % %43820;4@D8?<4=C0=3BD??;84B 4=CA0;E4 %DAA0H 8;; &" FFF 2A10A3 2>< Continued

October 18, 2010 | Crain’s New York Business | 23 20101018-NEWS--0024-NAT-CCI-CN_-- 10/14/2010 6:30 PM Page 1

REPORT SMALL BUSINESS

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email protected]= :2 18;7:D11> C74 =D<14A >5 4H44B A4?>AC43 8= C74 <>BC A424=C #B = < &>C <40=8=65D; 8B20; H40A 4=3B "0= 8B20; H40A 4=3B '2C ,74 2>C74A 58A< C> <0=064 30H C> 30H >?4A0C8>=B 8B20; H40A 4=3B +4?C 8B20; H40A 4=3B "D;H 8B20; H40A 4=3B "D=4 8B20; H40A 4=3B ?A8; 8B20; H40A 4=3B 41 8B20;H40A4=3B%0A27 8B20;H40A4=3BD6 ➚➚ SEE THE EXPANDED LIST OF THE 100 FASTEST-GROWING COMPANIES AND ALL OF CRAIN’S BUSINESS LISTS @ WWW.CRAINSNEWYORK.COM/LISTS 24 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0025-NAT-CCI-CN_-- 10/15/2010 2:51 PM Page 1

rents of a Starbucks,” says Faith The other tea party Hope Consolo, chairman of the retail division at Prudential Douglas Elliman, who represented Kusmi in Continued from Page 1 customers to get the most attention its recent deal. cluding Paris-based Kusmi and from our employees and learn about Brooklyn-based The Tea & Honey the teas,” says Argo Chief Executive Each needs its own twist Store, are flooding New York with Arsen Avakian, whose $10 million with so much competition, each dozens of outposts,taking advantage company is funded by several Chica- vendor has adopted a different hook of vacancies left by delis and small re- go investors. He expects to grow to to entice thirsty New Yorkers. Argo, tailers. While some offer the bever- $14 million next year,largely because for example, has partnered with sev- age as samples or in a café-type envi- of the Big Apple sites. eral local charities, including the ronment, most sell boxed leaves. Fortunately for Mr. Avakian and Madison Square Park Conservancy buck ennis The drink has been catching on other tea executives, New York still Group and the AIDS Coalition, in a A LOT OF LOOSE LEAF: TeaGschwendner expects each NYC store to bring in $2 million a year. slowly but steadily. Tea sales grew offers enough empty storefronts to program called ChariTea. only 3% in the U.S. last year, to $7.3 foster expansion plans. Tea & Honey, which opened a billion, but have quadrupled since “Post-Lehman saw the availabili- Grand Central Terminal store last Island to complement its tea. Alan locations downtown.“We would like 1990, according to the Tea Associa- ty of spaces at a more affordable price, year and one on the Upper East Side Ceppos, co-owner of the Sarut to bring it national, too,” says Mr. tion of the USA Inc. and that paved the way for more tea in late September, sells honey from Group, Tea & Honey’s parent com- Ceppos. “We’re just looking for the “You either drink tea to have com- companies that cannot pay the high its own 10-year-old apiary on Long pany, expects to introduce two more right financial partners.” munion with your friends, neighbors or family,or you drink tea in a reflec- tive, meditative environment for yourself,”says George Jage,president of the World Tea Expo, an annual trade show that recorded a 68% attendance spike in June. “That’s what Americans need the most—time for ourselves and to connect more with our neighbors.” Tea prices can be steep. Drinks from Chicago-based Argo Tea cost about $3.50, and a 100-gram tin at sites run by German company TeaGschwendner is about $8. And coffee drinkers, who frequent Star- bucks, Dunkin’ Donuts and the rash of pop-up cafés across the city,still far outnumber tea fans. But merchants hope to appeal to consumers on the strength of the drink’s documented health benefits. This isn’t your grandmother’s Lipton. The new gourmet tea companies gather exotic leaves and fla- vorings from countries such as India, Kenya and Sri Lanka. The brew is touted for its antioxidants, digestive benefits and calming powers.It’s also received recent boosts from celebrities such as Janet Jackson and Lady Gaga, who has written about the When you’re growing cleansing effects of Kusmi’s Detox Tea. Kusmi’s shops sell loose products but also offer tastings.The 143- as fast as Regal Entertainment Group, year-old French company opened its first New York location on the Upper East Side in July and plans to launch intermission is no option. a SoHo store next year. Rivalries brewing Opportunity at every step. it will soon face some formidable rivals. After opening a Rockefeller Center shop over the summer, Since its early years, we’ve helped Regal Entertainment Group achieve its vision of bringing more movies to more people TeaGschwendner, whose North American headquarters is in Chica- and becoming the largest theater chain in America. As their lead commercial bank, our treasury management platform and go, debuted on the Upper West Side in early October.Joe Capp,president nationwide network helps Regal efciently coordinate nances as they expand. And as one of the country’s top leveraged of North America,expects each store to have about $2 million in annual nance providers, we’ve helped lower their cost of capital through customized nancing solutions. Step by step, scene by sales. He has two more city locations on his plate for next year. scene, we can help turn your business into a success story, too. “Most people drink tea from teabags, but it’s low-quality tea,” Mr. Capp says.“Now loose-leaf tea com- Call Thomas Carley at 1.212.796.6947 or visit bankofamerica.com/businesssolutions4 panies, like TeaGschwendner, are saying,‘Let me give you higher quality, more flavor choices.’ ” Argo concentrates on selling ready-to-drink tea rather than boxes of loose leaves. It has opened four Manhattan stores over the past five months and plans a fifth near Wash- ington Square Park next year. Its tea is continuously brewed so con- “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking sumers’ wait is a mere 30 seconds for affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America their beverages, which have names Corporation (“Investment Banking Afliates”), including, in the United States, Banc of America Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are both registered broker-dealers and members of FINRA and SIPC, like Green Tea Ginger Twist and and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2010 Bank of America Corporation. ARO343L3 White Tea Acai Squeeze. Such quick service “allows our

October 18, 2010 | Crain’s New York Business | 25 nb42p26-27cl.qxp 10/14/10 7:00 PM Page 26

EXECUTIVE RECRUITER PUBLIC & LEGAL NOTICES

POSITIONS AVAILABLE Notice of Qualification of FAIRCHILD REQUEST FOR PROPOSALS ONSHORE FUND LP. Authority filed with Secy. of State of NY (SSNY) on Research Associate Messaging Specialist 09/09/10. Office location: NY County. (AllianceBernstein L.P. - NY, NY) (AllianceBernstein L.P. - NY, NY) Provide LP formed in Delaware (DE) on Conduct in-depth quantitative research admin of network Messaging & Active 08/11/10. Princ. office of LP: 1350 Ave. & statistical analysis of financial data Directory infrastructure incl. the mgmt of the Americas, 9th Fl., NY, NY 10019. for global investment management of 100+ global MS Exchange 2000/2003 SSNY designated as agent of LP Servers for financial srvcs org. Reqs a upon whom process against it may firm. Reqs a Master’s deg in Finance, be served. SSNY shall mail process Econ, or Ops Research & 2 yrs exp. Master’s deg in Telecom Networks or rel. tech. field & 2 yrs exp. providing to Corporation Service Co., 80 State performing quant. research & statistical St., Albany, NY 12207-2543. Name Exchange, Enterprise Vault, LCS/OCS & analysis of financial data. Must have and addr. of each general partner are Active Directory admin srvcs w/in a exp., coursework, or training in each of available from SSNY. DE addr. of LP: global, multi-site messaging environ. 2711 Centerville Rd., Wilmington, DE the following: optimization, simulation, Must have exp. w/ each of the following: 19808. Arts. of Org. filed with Secy. & stochastic processes; &, use of Exchange 2003 clustering; Blackberry of State of DE, John G. Townsend financial programming systems to Enterprise Server 4.x; Cisco IronPort; Bldg., 401 Federal St., Dover, DE support data analysis & modeling. Live Communications Server/Office 19901. Purpose: Any lawful activity. Resumes: J. Johnson, AllianceBernstein Communications Server Instant L.P., 1345 Ave of the Americas, New Messaging apps; NetApp Storage Area AMALGAMATED PARTNERS LLC Network; Symantec Enterprise Vault; &, Articles of Org. filed NY Sec. of State York, NY 10105. Ref: NEWFBR. (SSNY) 8/30/2010. Office in NY Co. Windows Active Directory. SSNY desig. agent of LLC upon Technical Lead Resumes: J. Johnson, AllianceBernstein whom process may be served. SSNY L.P., 1345 Ave of the Americas, New (AllianceBernstein L.P. - NY, NY) shall mail copy of process to 162 York, NY 10105. Ref: NEWNPA. W. 13th St., #42, NY, NY 10011, which Provide technical design for firm’s Fixed is also the principal business location. Income Analytics & Benchmark processing Senior Associate Purpose: Any lawful purpose. system. Reqs a Bach’s deg (or foreign (Citadel LLC - New York, NY) Invest in & coordinate Notice of Formation of GLUTTONY Notice of Formation of Gold’n equiv) in Electronics Engin, Info Systems, NEW YORK LLC, a domestic LLC. Consulting, LLC. Art. of Org. filed Notice of formation of JAKOB/HILTON internal interest in primary & secondary Econ or rel. tech field & 5 yrs exp. dvlpg Arts. of Org. filed with the SSNY on with Secy. of State of NY (SSNY) CAPITAL, LLC. Arts. of Org. filed with common equity offerings. Reqs the Sect’y of State of NY (SSNY) on sftwr for the financial srvcs industry. 08/26/2010. Office location: NY on 10/07/10. Office location: NY Bachelors or foreign equiv. in Finance, County. SSNY has been designated Co. SSNY designated as agent of 8/27/2010. Office location, County Must have exp. w/ each of the following: Economics or Commerce + 1 yr of as agent upon whom process against LLC upon whom process against it of New York. SSNY has been des- identifying & remediating fixed income exp. on the buy side. Stated exp. the LLC may be served. SSNY shall may be served. SSNY shall mail ignated as agent of the LLC upon whom process against it may be analytics & benchmark data anomalies must incl. the following: Transaction mail a copy of process to: 231 15th process to the LLC, 23 West 23rd &/or trade rel. data errors; communi- St Apt. #3A, Brooklyn, NY 11215. Street, #710, New York, NY 10023. served. SSNY shall mail process to: exp. (ECM); IPO, liquidity & dividend Purpose: Any Lawful Purpose. Purpose: any lawful act or activity. 870 Fifth Avenue, NY NY 10065. cating complex tech. probs & solutions analysis; LBO & related analysis, incl. Purpose: any lawful act. to business mgrs & dvlprs; recommend- restricted pymt models; Assess. of Notice of Formation of BRSG PROP- NOTICE OF FORMATION of Sun & ing ORACLE solutions in version 9i or economic issues affecting valuation of ERTIES, LLC. Arts. of Org. filed with Schrempp Associates, LLC. Arts of LEOPALD AND MOLLY, LLC, a higher & util. adv. PL/SQL constructs & US & Asian comp.; & Port. construction Secy. of State of NY (SSNY) on Org filed with the Secy of State of domestic Limited Liability Company functions to support a multi-terabyte & risk mgmt gained through exp. w/in 09/22/10. Office location: NY County. NY (SSNY) on 7/19/2010. Office (LLC), filed with the Sec of State of NY a Beta-Neutral strategy. Must have Princ. office of LLC: 589 Fifth Ave., loc: NY Co. SSNY designated as an on 9/15/10. NY Office location: New data wrhouse; fixed income data York. SSNY is designated as agent completed Financial Analyst or related NY, NY 10017. SSNY designated as agent upon whom process against providers & their corresp. data delivery agent of LLC upon whom process it may be served and shall mail a upon whom process against the LLC products incl: Barclay’s POINT, Investment Banking Analyst program against it may be served. SSNY copy of any process to the principal may be served. SSNY shall mail a Citibank’s Yieldbook, Lehman, Solomon w/ top tier fin. institution w/ focus on shall mail process to c/o William business address: 148 Madison copy of any process against the LLC served upon him/her to JIS Consulting & Merrill benchmarks; designing data equity or equity-linked capital mkts. Goldberg Diamond Corp., Attn: Saul Ave, Ste 1601, NY, NY 10016. Goldberg at the princ. office of the Purpose: any lawful act. Ltd., 211 E. 43rd St., Ste. 1203, NY, mastering, integration, & wrhousing Resumes: Employee Relations/EH, LLC. Purpose: Any lawful activity. NY 10017. General Purposes. solutions for investment mgmt srvcs incl. Attn: JobR-0142, Citadel LLC, 131 Notice of Formation of NAMM FAMILY nd data models, app interfaces, & data South Dearborn Street, 32 Floor, Notice of Formation of RONAJ LLC. ASSOCIATES, LLC. Arts. of Org. filed NOTICE OF FORMATION OF LIMITED exception mgmt; all phases of investment Chicago, IL 60603. Arts. of Org. filed with Secy. of State with Secy. of State of NY (SSNY) on LIABILITY COMPANY. NAME: REDI- of NY (SSNY) on 07/21/10. Office CHEM LLC. Articles of Organization mgmt lifecycle from research to trade 08/03/10. Office location: NY County. location: NY County. Princ. office of Princ. office of LLC: 875 Park Ave., were filed with the Secretary of State order mgmt, settlement, portfolio valu- LLC: c/o Sky Management, 226 E. #10A, NY, NY 10075. SSNY desig- of New York (SSNY) on 08/16/10. ation, & perf. attribution; &, mng on & PUBLIC & 54th St., Ste. 402, NY, NY 10022. nated as agent of LLC upon whom Office location: New York County. off-shore dvlpmt teams. SSNY designated as agent of LLC process against it may be served. SSNY has been designated as agent Resumes: J. Johnson, AllianceBernstein LEGAL NOTICES upon whom process against it may SSNY shall mail process to c/o of the LLC upon whom process be served. SSNY shall mail process Andrew Namm at the princ. office of against it may be served. SSNY shall L.P., 1345 Ave of the Americas, New to the LLC at the addr. of its princ. the LLC. Purpose: Any lawful activity. mail a copy of process to the LLC, York, NY 10105. Ref: NEWSAS. Notice of Qualification of Civic Capital office. Purpose: Any lawful activity. c/o Mordente Law Firm, LLC, 160-29 Advisors, LLC. Authority filed with Notice of Qualification of Lyxor Union Turnpike, Fresh Meadows, NY Dept. of State on 9/10/10. Office SCAFFOLDED APPRENTICESHIP Premium Sub-Fund II LLC. Authority New York 11366. Purpose: For any location: NY County. LLC formed in MODEL, LLC a domestic Limited filed with NY Dept. of State on lawful purpose. DE on 8/25/10. NY Sec. of State Liability Company (LLC), filed with 10/4/10. Office location: NY County. EVENT designated agent of LLC upon whom the Sec of State of NY on 8/27/10. LLC formed in DE on 9/1/09. NY Sec. Notice of Formation of Pennant process against it may be served and NY Office location: New York. SSNY of State designated as agent of LLC General Partner, L.L.C., Art. of Org. shall mail process to the principal is designated as agent upon whom upon whom process against it may filed Sec’y of State (SSNY) 8/4/10. Mercer is conducting an exclusive, business address: 60 Collister St., process against the LLC may be be served and shall mail process to Office location: NY County. SSNY Apt. 3A, NY, NY 10013. DE address of served. SSNY shall mail a copy of the principal business addr.: 1251 designated as agent of LLC upon highly interactive one-day M&A LLC: c/o The Corporation Trust Co., any process against the LLC served Ave. of the Americas, 46th Fl., NY, whom process against it may be Corporate Cultural Integration 1209 Orange St., Wilmington, DE upon him/her to The LLC, 250 NY 10020. DE addr. of LLC: c/o The served. SSNY shall mail copy of 19801. Cert. of Form. filed with DE Riverside Dr., Ste. 72, NY, NY 10025. Corporation Trust Co., 1209 Orange process to 152 W. 57th St., 19th Fl., MasterClass on 16 Nov 2010. Sec. of State, 401 Federal St., Dover, General Purposes. St., Wilmington, DE 19801. Cert. of NY, NY 10019. Purpose: any lawful www.mercer.com/culturemasterclass DE 19901. Purpose: any lawful activity. Form. filed with DE Sec. of State, activities. Notice of Qualification of BROOKFIELD P.O. Box 898, Dover, DE 19903. Notice of Qualification of BROOKFIELD HH GP LLC. Authority filed with Purpose: any lawful activity. Notice of Qualification of Richard REAL ESTATE TURNAROUND FUND Secy. of State of NY (SSNY) on Bernstein Advisors LLC. Authority GP OF GP, LLC. Authority filed with 09/16/10. Office location: NY County. Notice of Qualification of AG TCDRS, filed with Secy. of State of NY REAL Secy. of State of NY (SSNY) on LLC formed in Delaware (DE) on L.P. Authority filed with NY Dept. of (SSNY) on 6/28/10. Office location: 08/26/10. Office location: NY County. 09/01/10. Princ. office of LLC: c/o State on 10/1/10. Office location: NY NY County. LLC formed in Delaware ESTATE LLC formed in Delaware (DE) on Brookfield Asset Management Inc., County. LP formed in DE on 9/24/10. (DE) on 5/14/09. SSNY designated 02/24/10. Princ. office of LLC: c/o Three World Financial Center, 200 NY Sec. of State designated agent of as agent of LLC upon whom process Brookfield Asset Management LLC, Vesey St., 10th Fl., NY, NY 10281- LP upon whom process against it against it may be served. SSNY AUCTION Three World Financial Center, NY, NY 1021. SSNY designated as agent of may be served and shall mail process shall mail process to: c/o The LLC, 10281-1010. SSNY designated as LLC upon whom process against it to the principal business addr.: c/o 520 Madison Ave., 28th Fl., NY, NY agent of LLC upon whom process may be served. SSNY shall mail Angelo, Gordon & Co., L.P., 245 Park 10022, also the Principal Office. against it may be served. SSNY shall process to the LLC at the addr. of its Ave., 26th Fl., NY, NY 10167. DE addr. Address to be maintained in DE: c/o mail process to the LLC at the addr. of princ. office. DE addr. of LLC: c/o of LP: c/o The Corporation Trust Co., The Corporation Trust Company, its princ. office. DE addr. of LLC: c/o Corporation Service Co., 2711 1209 Orange St., Wilmington, DE Corporation Trust Center, 1209 Corporation Service Co., 2711 Centerville Rd., Ste. 400, Wilmington, 19801. Name/addr. of genl. ptr. Orange St., Wilmington, DE 19801. Centerville Rd., Ste. 400, Wilmington, DE 19808. Arts. of Org. filed with available from NY Sec. of State. Arts of Org. filed with DE Secy. Of DE 19808. Arts. of Org. filed with Secy. State of DE, Secy. of State, Div. of Cert. of LP filed with DE Sec. of State, Div. of Corporations, P.O. Box of State of DE, 401 Federal St., Dover, Corps., 401 Federal Bldg., Dover, DE State, Townsend Bldg., Dover, DE 898, Dover, DE 19903. Purpose: DE 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. 19901. Purpose: any lawful activity. any lawful activities.

26 | Crain’s New York Business | October 18, 2010 nb42p26-27cl.qxp 10/14/10 7:00 PM Page 27

PUBLIC & LEGAL NOTICES

Notice of Qualification of AMB LOCAL Notice of Qualification of Spring Notice of Qualification of C2C Appraisal Notice of Qualification of CYAN Notice of Formation of GENESEO MEDIA LLC. Authority filed with Secy. Studios New York, LLC. Authority Services, LLC. Authority filed with Management Group LLC. Authority HIGHLANDS INVESTOR, L.P. Cert. of State of NY (SSNY) on 06/10/09. filed with NY Dept. of State on Secy. of State of NY (SSNY) on filed with Secy. of State of NY (SSNY) of LP filed with Secy. of State of NY Office location: NY County. LLC 8/9/10. Office location: NY County. 9/21/10. Office location: NY County. on 7/13/10. Office location: NY (SSNY) on 08/25/10. Office location: formed in Delaware (DE) on 05/08/09. Princ. bus. addr.: 50 Varick St., NY, LLC formed in Delaware (DE) on County. LLC formed in Delaware (DE) NY County. Princ. office of LP: 60 SSNY designated as agent of LLC NY 10013. LLC formed in DE on 6/23/09. SSNY designated as agent on 2/26/10. SSNY designated as Columbus Circle, 18th Fl., NY, NY upon whom process against it may 8/4/10. NY Sec. of State designated of LLC upon whom process against agent of LLC upon whom process 10023. Latest date on which the LP be served. SSNY shall mail process as agent of LLC upon whom process it may be served. SSNY shall mail against it may be served. SSNY shall may dissolve is 12/31/2110. SSNY to Vincent Lombardo, 195 Tanglewood against it may be served and shall process to: c/o National Registered mail process to: c/o Corporation designated as agent of LP upon Dr., Staten Island, NY 10308. DE mail process to: c/o CT Corporation Agents, Inc., 875 Ave. of the Americas, Service Company (CSC), 80 State St., whom process against it may be addr. of LLC: 1521 Concord Pike, System, 111 8th Ave., NY, NY 10011, Ste. 501, NY, NY 10001. Principal Albany, NY 12207. DE address of served. SSNY shall mail process to #301, Wilmington, DE 19803. Arts. of regd. agent upon whom process may office address: 15301 Ventura Blvd., LLC: c/o CSC, 2711 Centerville Rd., c/o Corporation Service Co., 80 Org. filed with Jeffrey W. Bullock, be served. DE addr. of LLC: c/o The Ste. D300, Sherman Oaks, CA Ste. 400, Wilmington, DE 19808. Arts. State St., Albany, NY 12207. Name Dept. of State, Div. of Corps., John Corporation Trust Co., 1209 Orange 91403. Address to be maintained in of Org. filed with DE Secy. of State, and addr. of each general partner are G. Townsend Bldg., 401 Federal St., St., Wilmington, DE 19801. Cert. of DE: c/o National Registered Agents, 401 Federal St., Ste. 4, Dover, DE available from SSNY. Purpose: Any #4, Dover, DE 19901. Purpose: Any Form. filed with DE Sec. of State, Inc., 160 Greentree Dr., Ste. 101, 19901. Purpose: any lawful activity. lawful activity. lawful activity. 401 Federal St., Dover, DE 19901. Dover, DE 19904. Arts of Org. filed Purpose: any lawful activity. with DE Secy. Of State, 401 Federal NOTICE OF FORMATION OF LIMITED Notice of Formation of 501 Madison- Notice of Formation of AMBASSADOR St., Ste. 4, Dover, DE 19901. LIABILITY COMPANY. NAME: STAR- Sutton LLC. Arts. of Org. filed with NY MEDIA SALES LLC. Arts. of Org. Notice of Formation of WyThe Funding Purpose: any lawful activities. DUST LLC. Articles of Organization Dept. of State on 7/22/2010. Office filed with Secy. of State of NY (SSNY) LLC amended to Wythe Funding LLC. were filed with the Secretary of State location: NY County. Sec. of State on 12/02/09. Office location: NY Arts. of Org. filed with Secy. of State NOTICE OF FORMATION of THE of New York (SSNY) on 08/31/10. designated agent of LLC upon whom County. SSNY designated as agent of NY (SSNY) on 7/29/10. Office WILSON LAW FIRM LLC. Arts of Org The name was amended to ROXX process against it may be served and of LLC upon whom process against location: NY County. SSNY designated filed with the Secy of State of New LLC on 09/08/10. Office location: shall mail process to the principal it may be served. SSNY shall mail as agent of LLC upon whom process York (SSNY) on 6/14/10. Office loca- New York County. SSNY has been business addr.: 1185 Park Ave., NY, process to c/o the LLC, 245 W. 17th against it may be served. SSNY shall tion: NY County. SSNY designated designated as agent of the LLC upon NY 10128, Attn: Grace S. Sutton, St., 2nd Fl., NY, NY 10011-5387. mail process to: The LLC, 207 W. as an agent upon whom process whom process against it may be regd. agent upon whom process may Purpose: Any lawful activity. 25th St., Ste. 602, NY, NY 10001. may be served and shall mail a copy served. SSNY shall mail a copy of be served. Term: until 12/31/2060. Purpose: any lawful activity. of any process to: 65 Broadway, Ste process to the LLC, c/o Vik Pawar, Purpose: any lawful activity. Notice of Formation of INTERCON- 833, NY NY 10006. Principal business 305 Broadway, Suite 1100, New address: 299 Broadway, Ste 920, NY York, New York 10007. Purpose: For NECTED LIFE LLC. Arts. of Org. filed Notice of Formation of VETRINA Notice of Formation of BEAR ONE NY 10007. Purpose: any lawful act. any lawful purpose. with Secy. of State of NY (SSNY) on NEW YORK LLC. Arts. of Org. filed HOLDINGS, LLC. Arts. of Org. filed 07/12/10. Office location: NY County. with Secy. of State of NY (SSNY) on with Secy. of State of NY (SSNY) on SSNY designated as agent of LLC 09/03/10. Office location: NY County. NOTICE OF FORMATION OF CEME Notice of Formation of LITTLE 08/18/10. Office location: NY County. upon whom process against it may SSNY designated as agent of LLC DESIGN, LLC. Articles of Organization LIBERTY 1 LLC. Arts. of Org. filed Princ. office of LLC: c/o Proskauer be served. SSNY shall mail process upon whom process against it may were filed with the Secretary of State with Secy. of State of N.Y. (SSNY) on Rose LLP, 1585 Broadway, NY, NY to c/o Kudman Trachten Aloe LLP, be served. SSNY shall mail process of New York (SSNY) on 06/21/2010. 8/20/10. Office location: New York 10036. SSNY designated as agent of 350 Fifth Ave., Ste. 4400, NY, NY to Vincenti & Vincenti, P.C., 80 Broad Office location: New York County. County. SSNY designated as agent LLC upon whom process against it 10118. Purpose: Any lawful activity. St., Ste. 1200, NY, NY 10004. SSNY has been designated as agent of LLC upon whom process against may be served. SSNY shall mail Purpose: Any lawful activity. of the LLC upon whom process it may be served. SSNY shall mail process to Attn: Ivan Taback at the NOTICE OF FORMATION OF LIMITED against it may be served. The Post process to: c/o Icon Parking Systems, princ. office of the LLC. Purpose: LIABILITY COMPANY. NAME: Office address to which the SSNY 211 East 38th St., New York, NY Any lawful activity. ACQUA RPS LLC App. for Auth. filed PLATINUM REAL ESTATE GROUP, shall mail a copy of any process 10016. Purpose: any lawful activity. NY Sec. of State (SSNY) 8/25/2010. LLC. Articles of Organization were filed against the LLC served upon it is C/O Notice of Formation of PHELAN, LLC. LLC was organized on 8/13/2010 in with the Secretary of State of New the LLC 350 Broadway, #415, NY, Arts. of Org. filed with Secy. of State DE. Office in NY Co. SSNY desig. as Notice of Qualification of Hamptons York (SSNY) on 08/27/09. The latest NY. Purpose: For any lawful purpose. of NY (SSNY) on 8/19/10. Office agent of LLC upon whom process Residence II LLC. Authority filed with date of dissolution is 12/31/2050. location: NY County. SSNY designated may be served. SSNY to mail copy of Secy. of State of NY (SSNY) on Office location: New York County. as agent of LLC upon whom process process to 110 Greene St., Ste. 1100, Notice of Formation of INJURY INSIGHT, 8/9/10. Office location: NY County. SSNY has been designated as agent against it may be served. SSNY shall NY, NY 10012. Required office at LLC. Arts. of Org. filed with Secy. of LLC formed in Delaware (DE) on of the LLC upon whom process mail process to princ. bus. loc.: c/o 3500 S. Dupont Hwy., Dover DE State of NY (SSNY) on 09/24/10. Office 8/5/2010. SSNY designated as against it may be served. SSNY shall The LLC, 144 E. 24th St., 5D, NY, NY 19901. Cert. of Org. filed with SSDE, location: NY County. Princ. office of agent of LLC upon whom process mail a copy of process to the LLC, 10010, Attn: Chris Ann Phelan. 401 Federal St., Ste. 3, Dover DE LLC: 116 E. 30th St., NY, NY 10016. against it may be served. SSNY 250 West 57th Street, Room 1401, Purpose: any lawful activity. 19901. Purpose: Any lawful purpose. SSNY designated as agent of LLC upon shall mail process to: c/o New York, New York 10107. Corporation Service Company, 80 Purpose: For any lawful purpose. whom process against it may be served. SSNY shall mail process to the State St., Albany, NY 12207-2543. NOTICE OF FORMATION OF LIMITED Notice of Formation of DLR 155 LLC. Address to be maintained in DE: LIABILITY COMPANY Name: Arts. of Org. filed with Secy. of State LLC at the addr. of its princ. office. Notice of Qualification of STEPH-JIM, Purpose: Any lawful activity. 2711 Centerville Rd., Ste. 400, Ambleside Partners LLC. Articles L.L.C. Authority filed with Secy. of of NY (SSNY) on 9/9/10. Office loca- Wilmington, DE 19808. Arts of Org. filed w/SOS 8/11/10. Office: NY State of NY (SSNY) on 09/10/10. tion: NY County. SSNY designated filed with DE Secy. Of State, 401 County; Principal Business Location: Office location: NY County. LLC as agent of LLC upon whom process NOTICE OF FORMATION OF Turquoise Federal St., Ste. 4, Dover, DE 19901. TBD. SOS is process agent & will formed in Delaware (DE) on 09/07/10. against it may be served. SSNY shall Life, LLC. Art. of Org. filed with the Purpose: any lawful activities. send process to LLC c/o Wiggin and Princ. office of LLC: 350 Park Ave., mail process to: c/o D. LaRosa, 79 Secy. of State of NY (SSNY) on Dana LLP, 450 Lexington Ave, Suite 4th Fl., NY, NY 10022. SSNY desig- Worth St., NY, NY 10013. Purpose: 08/12/10. Office location: NY County. 3800, NY, NY 10017. Purpose: all Notice of Qualification of Aqueduct nated as agent of LLC upon whom any lawful purpose. SSNY designated as agent upon whom lawful activity. Operator LLC, Authority filed Sec’y process against it may be served. process against it may be served. of State (SSNY) 7/1/10. Office loc.: SSNY shall mail process to c/o Notice of Formation of 234 Starr SSNY shall mail process to The LLC, NY County. LLC org. in DE 6/25/10. Notice of Qualification of Oskie Corporation Service Co. (CSC), 80 Street Developers LLC. Arts. of Org. 5 Tudor City Pl., #1432, NY, NY. SSNY desig. as agent of LLC upon Partners, LP, Authority filed Sec’y of State St., Albany, NY 12207-2543. filed with Secy. of State of NY (SSNY) 10017. Purpose: any lawful activity. whom process against it may be State (SSNY) 8/10/10. Office loc.: NY DE addr. of LLC: c/o CSC, 2711 on 7/29/10. Office location: NY Co. County. LP org. in DE 8/6/10. SSNY Centerville Rd., Ste. 400, Wilmington, SSNY designated as agent of LLC served. SSNY shall mail copy of Notice of Formation of LONELY KINGS proc. to c/o Nat. Reg. Agents, 875 desig. as agent of LP upon whom DE 19808. Arts. of Org. filed with DE upon whom process against it may PRODUCTIONS, LLC. Arts. of Org. process against it may be served. Secy. of State, Div. of Corp., 401 be served. SSNY shall mail process Ave of the Americas, NY, NY 10001, filed with Secy. of State of NY (SSNY) the Reg. Agt. upon whom proc. may SSNY shall mail copy of proc. to 10 Federal St., Dover, DE 19901. to: 110 Third Ave., Apt. 21C, NY, NY on 09/27/10. Office location: NY E. 53rd St., 31st Fl., NY, NY 10022. Purpose: Any lawful activity. 10003. Purpose: any lawful activities. be served. DE office addr.: 160 County. Princ. office of LLC: 351 E. Greentree Dr., Ste. 101, Dover, DE DE office addr.: CSC, 2711 Centerville 12th St., #3, NY, NY 10003. SSNY 19904. Cert. of Form. on file: SSDE, Rd., Wilmington, DE 19808. Cert. of designated as agent of LLC upon Townsend Bldg., Dover, DE 19901. LP on file: SSDE, Townsend Bldg., whom process against it may be Purp.: any lawful activities. Dover, DE 19901. Name/addr. of served. SSNY shall mail process to each gen. ptr. avail. at SSNY. Purp.: the LLC at the princ. office of the Notice of Qualification of AMBASSADOR any lawful activities. LLC. Purpose: Any lawful activity. PUBLICATIONS, LLC. Authority filed with Secy. of State of NY (SSNY) on Notice of Qualification of CANTERBURY Notice of Qualification of Bridgebar 04/06/01. Office location: NY County. JUPITER, L.L.C. Authority filed with Lender LLC. Authority filed with NY LLC formed in Delaware (DE) on Secy. of State of NY (SSNY) on Dept. of State on 9/24/10. Office 01/19/01. Princ. office of LLC: 231 08/30/10. Office location: NY County. Contact location: NY County. Princ. bus. W. 29th St., Ste. 401, NY, NY 10001. LLC formed in Delaware (DE) on addr.: 55 E. 59th St., 17th Fl., NY, NY SSNY designated as agent of LLC 08/27/10. Princ. office of LLC: 350 10022. LLC formed in DE on 9/21/10. upon whom process against it may Park Ave., 4th Fl., NY, NY 10022. John Gallagher NY Sec. of State designated agent of be served. SSNY shall mail process SSNY designated as agent of LLC [email protected] LLC upon whom process against it to c/o Cowan, DeBaets, Abrahams & upon whom process against it may may be served and shall mail process Sheppard LLP, 40 W. 57th St., NY, be served. SSNY shall mail process 212.210.0189 to: c/o CT Corporation System, 111 NY 10019. Arts. of Org. filed with DE to c/o Corporation Service Co. (CSC), 8th Ave., NY, NY 10011, regd. agent Secy. of State, Lookerman and 80 State St., Albany, NY 12207-2543. upon whom process may be served. Federal St., Dover, DE 19901. As DE addr. of LLC: c/o CSC, 2711 DE addr. of LLC: 1209 Orange St., amended by Cert. of Amendment Centerville Rd., Ste. 400, Wilmington, Wilmington, DE 19801. Cert. of Form. filed with SSNY on 09/10/07, the DE 19808. Arts. of Org. filed with DE filed with DE Sec. of State, 401 name of the LLC is: AMBASSADOR Secy. of State, Div. of Corps., 401 Federal St., Dover, DE 19901. MEDIA GROUP, LLC. Purpose: Any Federal St., Dover, DE 19901. Purpose: any lawful activity. lawful activity. Purpose: Any lawful activity.

October 18, 2010 | Crain’s New York Business | 27 20101018-NEWS--0028-NAT-CCI-CN_-- 10/14/2010 6:57 PM Page 1

FOR THE RECORD

● Economic Development Corp. foot building owned by W&H exercised options on 30,967 shares of Requests proposals by 4 p.m. on Dec. 17 Properties. The company is moving its common stock at prices ranging from ABOUT THIS SECTION for the sale of a 99,370-square-foot offices to the 11th floor. Fred Posniak of $48.39 to $48.61 on Oct. 6, in a parcel located on Block 3540, Lots 29 Malkin Holdings, along with Jonathan transaction worth $1,500,922. On the FOR THE RECORD is a weekly listing of information from the public record that and 40, in the Zerega/Castle Hill Fanuzzi, Brian Waterman and Mike same day, he sold 30,967 shares at can help businesspeople in the New York area find opportunities, potential section of the Bronx. The EDC is Frantz of Newmark Knight Frank, $55.50, in a transaction worth new clients and updates on competitors. seeking users or developers of industrial represented the landlord. Robert $1,718,669. He now directly holds To ask questions or get more information on this section, contact Denise space to purchase and redevelop the Stillman of CB Richard Ellis and Alan 112,156 shares. Southwood at [email protected]. parcel for an as-of-right industrial use as Desino of Colliers International permitted within a M1-1 Zoning negotiated on behalf of the tenant. The ● GIII Apparel Group (GIII) District or other as-of-right viable uses asking rent was $47 a square foot. Morris Goldfarb, chairman of the board compatible with the surrounding and chief executive, sold 41,929 shares community’s needs. Questions regarding ● The International AIDS Vaccine of common stock at prices ranging from BANKRUPTCIES notices, visit www.nyc.gov/cityrecord. this solicitation may be submitted to Initiative signed a 15-year lease for $31.66 to $32.31 between Oct. 1 and Listings are alphabetical by category and [email protected] no 37,404 square feet at 125 Broad St.,a Oct. 5, in a transaction worth The following listings are selected from the department. later than 4 p.m. on Nov. 23. 40-story building partly owned by $1,340,151. He now directly holds most recent available filings by companies Mack-Cali Realty Corp. Marc Shapses, 3,080,080 shares. seeking bankruptcy protection in the CONSTRUCTION SERVICES ● Human Resources Administration Jason Schwartzenberg and Joseph Southern and Eastern Districts of New ● Department of Citywide Administrative Requests competitive sealed proposals Messina of Studley represented the ● John Wiley & Sons Inc. (JW.A) York. Information was obtained from U.S. Services by 2 p.m. on Dec. 2 from four qualified tenant, while Mark Ravesloot of CB William J. Pesce, president, chief Bankruptcy Court records available on Requests competitive sealed bids by vendors to operate four emergency Richard Ellis negotiated on behalf of the executive and director, exercised Public Access to Court Electronic Records. 11:30 a.m. on Nov. 16 for the shelters for victims of domestic violence. landlord. The asking rent wasn’t options on 71,723 shares of common Listings are in alphabetical order. construction of a new multipurpose Services include counseling, advocacy, disclosed. stock at prices ranging from $25.32 place of public assembly as an addition and housing and employment assistance. to $31.89 between Oct. 5 and Oct. 6, ● AWR Wholesale Inc. to an existing building by enclosing the An optional preproposal conference will RETAIL in a transaction worth $2,135,486. 436 Lafayette St. courtyard at Queens Borough Hall, be held Oct. 25 at 10 a.m. at 180 Water ● Gap renewed its 10-year lease for During the same period, he sold Filed for Chapter 11 bankruptcy located at 120-55 Queens Blvd., Kew St., 12th floor conference room. 46,000 square feet in three buildings.The 71,723 shares at prices ranging from protection on Oct. 6. The filing cites Gardens. The enclosure will be Questions regarding this solicitation firm will lease 35,000 square feet at 120 $41.98 to $42.41, in a transaction worth estimated liabilities of $1,000,001 to ventilated by a “displacement of should be directed to Vivian Williams at Fifth Ave. and 122 Fifth Ave., both owned $3,020,869. He now directly holds $10 million and estimated assets of cooling system,” which qualifies this (212) 331-4587 or by the Bromley Cos., and 11,000 square 972,263 shares. $100,001 to $500,000. Among the installation as a LEED project. For more [email protected]. feet at 126 Fifth Ave., a building owned by creditors with the largest claims are information, contact Louis Pastore 126-8 Fifth Avenue. Nicholas Haines ● Pall Corp. (PLL) Department of the Treasury Internal at (212) 669-8557 or represented Bromley in-house, while Katharine L. Plourde, director, exercised Revenue Service, owed $821,713, New [email protected]. REAL ESTATE DEALS Marco Ellman of Ellman Realty Advis- options on 7,500 shares of common York state Department of Taxation and ors represented 126-8 Fifth Avenue. stock at $24.27 on Oct. 5, in a Finance, owed $134,190, and New York ● Landmarks Preservation Commission Companies that would like to have details Ariel Schuster and Izzy Anthony of transaction worth $182,025. On the City Department of Taxation and Requests competitive sealed bids by 2:30 of their recent transactions appear in these Robert K. Futterman & Associates same day, she sold 7,500 shares at prices Finance, owed $132,752. p.m. on Nov. 5 for the provision of lead listings should e-mail descriptions negotiated on behalf of the Gap for the ranging from $42.27 to $42.32, in a dust cleanup and decontamination following this format to 126 Fifth Ave. location, while the Gap transaction worth $317,185. She now ● Inwood Company Corp. services in Brooklyn. For further [email protected], with “Real was represented by its in-house real estate directly holds 1,000 shares. 77 Cooper St. information regarding this solicitation, estate transaction” in the subject line, or department for the two other locations. Filed for Chapter 7 bankruptcy contact M. McMahon at (212) 669-7943 enter them online at The asking rent for 120 Fifth Ave. and ● Annaly Capital Management Inc. (NLY) protection on Oct. 11. The filing cites or [email protected]. crainsnewyork.com/submitadeal. Deals are 122 Fifth Ave. was $250 a square foot. It R. Nicholas Singh, executive vice estimated liabilities of $100,001 to listed in order of square footage. wasn’t available for 126 Fifth Ave. president, general counsel, secretary and $500,000 and estimated assets of $0 to GOODS AND SERVICES chief compliance officer, exercised $50,000. Among the creditors with the ● Department of Education COMMERCIAL options on 15,000 shares of common largest unsecured claims are Bank of Seeks competitive sealed bids by 4 p.m. ● Ostrow Kaufman & Frankl signed a STOCK TRANSACTIONS stock at $13.25 on Oct. 4, in a America, owed $27,200.49, Home on Nov. 15 from experienced contractor lease for 6,844 square feet at 555 Fifth transaction worth $198,750. Depot Credit Services, owed to provide transcription services for Ave., a 20-story, 225,000-square-foot Following are recent insider transactions at $21,851.96, and Cobalt Mechanical superintendents’ suspension hearings. building owned by ATCO Properties & New York’s largest publicly held companies ● Dice Holdings Inc. (DHX) Inc., owed $14,600. The DOE will furnish the contractor Management. The company will move filed with the Securities and Exchange Kent E. Thompson, vice president of with digital audio recordings. The into portions of the 19th and the 20th Commission by executives and major sales operations, exercised options on ● One Step Up Mortgage Inc. contractor will be required to pick up floors. John Lord represented the shareholders. Listings are in order of 35,800 shares of common stock at $0.20 319 Willis Ave., Mineola, L.I. recordings, transcribe, and deliver landlord in-house, while Corey Borg transaction value.The information was from Sept. 30 to Oct. 10, in a transaction Filed for Chapter 7 bankruptcy transcripts to any of the five hearing and Moshe Sukenik of Newmark obtained from Thomson Reuters. worth $7,160. During the same period, protection on Oct. 4. The filing cites offices throughout the boroughs. Knight Frank represented the tenant. he sold 35,800 shares at prices ranging estimated liabilities of $500,001 to $1 Questions regarding this The asking rent was $54 a square foot. ● Starwood Hotels & Resorts Worldwide from $8.63 to $8.76, in a transaction million and estimated assets of $100,001 solicitation should be sent to Inc. (HOT) worth $310,836. He now directly holds to $500,000. The sole creditor holding a [email protected]. ● Emerging Media Group Inc. signed a Mathew E. Avril, president, hotel group, 15,558 shares. n secured claim is Flushing Savings Bank, five-year lease for 7,200 square feet at owed $560,000. ● Department of Environmental Protection 462 Seventh Ave., a 23-story, 185,000- Seeks proposals by 4 p.m. on Nov. 5 for square-foot building owned by SIK ● Precious & Pampered the Baby four qualified site assessment firms to Associates, which is part of the Kaufman DEALS ROUNDUP Boutique Inc. conduct site surveys and evaluate the Organization. The company is moving 203 Main St., East Setauket, L.I. environmental condition of lands in to the entire 21st floor. Barbara Raskob TRANSACTION SIZE Filed for Chapter 7 bankruptcy anticipation of their acquisition by the and Steven Kaufman of the Kaufman COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE protection on Oct. 8. The filing cites city. For additional information, contact Organization represented the landlord, estimated liabilities of $100,001, to Jeanne Schreiber at (718) 595-3456 or while Paul Walker of CB Richard Ellis Univision Communications $1,200.0 Grupo Televisa SA GCI $500,000 and estimated assets of $0 to [email protected]. negotiated on behalf of the tenant. The Inc. (Manhattan) $50,000. Among the creditors with the asking rent was $35 a square foot. Polymer Group Inc. $775.6 The Blackstone Group FB M&A largest unsecured claims are Chase ● Department of Environmental Private Equity Group (Manhattan) Business, owed $70,000, Brown Bark II, Protection, Bureau of Wastewater ● Yoga Sutra NYC signed a 10-year Thermadyne Holdings Corp. $406.5 Irving Place Capital FB M&A owed $44,375, and American Express Treatment lease for 8,000 square feet at 6 E. 39th (Manhattan) Gold, owed $24,400. Requests proposals by 4 p.m. on Oct. 21 St., a 7,447-square-foot, 12-story RBS Sempra Commodities $220.0 J.P. Morgan Ventures SB M&A for consultant services to assist its Marine building owned by EJMB Realty Co. Energy Corp. ● Tile Tex Industries Inc. Section in evaluating and maintaining its The company will move into the second (Manhattan) 2360 Fulton St., Brooklyn compliance with applicable maritime floor. Howard Epstein of Winoker National Penn Bancshares $150.0 Warburg Pincus GCI Filed for Chapter 11 bankruptcy regulations and the agency’s and Marine Realty negotiated on behalf of the Inc. (Manhattan) protection on Oct. 7. The filing cites Section’s policies and procedures. For tenant, while Mark Bengualid of EJMB Radisson Hotel Boston $143.5 Northwood Investors SB M&A estimated liabilities of $100,001 to further information, contact William represented the landlord in-house. The (Manhattan) $500,000 and estimated assets of Yulinsky at (718) 595-5272 or asking rent wasn’t disclosed. AppNexus Inc. $50.0 Venrock (Manhattan), GCI $100,001 to $500,000. Among the [email protected]. Kodiak Venture Partners, creditors with the largest unsecured ● Simon Property Group signed a 10- First Round Capital, Microsoft claims are Gutter Associates, owed ● Department of Health and Mental year lease for 11,652 square feet at 230 Corp. investment arm $5,900, James Kletsky Esq., owed Hygiene Park Ave., a 1.4 million-square-foot 548 distressed rental $24.2 Phoenix Realty Group SB M&A $5,500, and N. Tires, owed $1,519.89. Seeks competitive sealed proposals by 4 building owned by Monday Properties. units in East Orange, N.J. (Manhattan) p.m. on March 22, 2012, to establish The firm will move to the 22nd floor. Cyclacel Pharmaceuticals $15.2 AWM Investment Co. GCI 3,000 units of citywide supportive Laurence Briody and Anthony LoPresti Inc. (Manhattan) GOVERNMENT CONTRACT housing in newly constructed or of CB Richard Ellis represented the Trimax IT Infrastructure $10.2 Zephyr Management GCI OPPORTUNITIES rehabilitated single-site buildings for tenant, while Paul Amrich of CBRE & Services Ltd. (Manhattan) various homeless populations pursuant and Jordan Berger of Monday Properties Selected deals announced for the week ended Oct. 9 involving companies in metro New York. Following are selected contract to the New York III Supported Housing negotiated on behalf of the landlord. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing opportunities recently announced by New agreement. Any questions regarding this The asking rent was $65 a square foot. shares of a company with the participation of a financial buyer. GCI: Growth capital investment York City agencies. To learn how to sell request for proposals must be sent in represents new money invested in a company for a minority stake. SB M&A: Strategic buyer goods and services to city government, writing to the contracting officer at 125 ● Burlington Coat Factory signed a M&A represents a minority or majority acquisition of existing shares of a company without the source: capitaliq visit www.nyc.gov/selltonyc. For a Worth St., New York, N.Y. 10013 or lease for 35,182 square feet at 1400 participation of a financial buyer. searchable database of current procurement faxed to (212) 219-5865. Broadway, a 37-story, 900,000-square-

28 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0029-NAT-CCI-CN_-- 10/15/2010 8:00 PM Page 1

$20,000 a month. Barely a month 2007. But less than two years later, recipe for success. after hitting the market, only four Intermix she was out of a job.The retail exec- “It’s always difficult to enter an Rentals are left, according to Patty Schmitz, utive says she left to spend more environment where you have entre- a leasing agent for the building. Continued from Page 3 time with her young twin sons, but preneurial owners; you have to walk Continued from Page 1 “A lot of people are skeptical,” signers and updating its website. But industry insiders say she clashed a fine line of embracing and respect- tial brokerage firm. “People aren’t says Ms. Schmitz.“They don’t want Ms. Lazarus says Intermix will not with Kay Krill,chief executive of the ing what they’ve built,” says Kirk ready to commit, because there is to speculate on where prices will be stray too far from its roots. company, which had been perform- Palmer, founder of an eponymous not enough certainty in the market.” going.” “We’re never going to be a large ing poorly at the time. After a year retail executive search firm that is During the third quarter of this Mr. Lee, who lives with his wife company with lots of [personnel] off, she began consulting. currently contracted by Intermix. year, 200 new leases were signed for and son,says his rental is a perfect fit layers; we’ll always be a small, lean Her first challenge at Intermix “It’s a balancing act.” apartments at more than $10,000 a for his needs and provides a product team,” says Ms. Lazarus. will be learning to run a multibrand Ms. Lazarus says she’s already month.That’s more than double the comparable to his former condo. The fashionable 42-year-old retailer, after heading Ann Taylor, a taken to the entrepreneurial atmos- number year-over-year and 60% He’s thinking of either getting a big- brunette joined Intermix with 17 company that produces and designs phere. To get Intermix’s e-com- above the corresponding 2008 peri- ger apartment or moving out of the years of retail experience under her all of its own apparel. merce site up to snuff, she had hired od, according to data compiled by city in a year or two, and he has con- belt. She quickly moved up the lad- She’ll also have to manage a a director of Web experience and appraisal firm Miller Samuel Inc. cerns about the direction of Man- der at Ann Taylor, helping launch business where the top executive is added new sections for the coming All that demand has taken a toll on hattan’s real estate market. the company’s lower-priced Loft both a founder and co-owner. holiday season.The sections include supply. According to Streeteasy.com, “With all these uncertainties, I division in the mid-’90s, and even- While this has worked for other “Introducing,” to highlight new de- there are just 459 current listings for don’t feel comfortable owning,” he tually became president of the family-run labels, like Tory Burch signers each month, and a “Must high-end apartments, with an aver- says. namesake Ann Taylor brand in and Calvin Klein, it’s not always a List” for coveted items. age rent of $20,102.That is the low- est inventory level in two years,giving landlords grounds to oppose cutting deals. Just 64 listings have had re- ductions so far this year, compared with 198 in the same period last year. “People would rather lose money on rent than make a bigger mistake,” says Kathy Braddock, co-founder of brokerage Charles Rutenberg Realty. Among them is Brian Davis, who began looking for a luxury three-bedroom in the $16,000 to $23,000 range this summer. After five years of owning an Upper West Side co-op, the 38-year-old finan- cier is in the process of selling it and leaving homeownership behind, at least temporarily. Among other things, he reckoned that buying a new, larger unit would cost $4 million to $5 million—a sum he is un- willing to commit in this market. “In order to cover transaction costs [of buying an apartment], prices would have to go up 6% for me to break even,” he says. “I don’t see that happening in the near future.” Brisk demand owners are watching units fly off the shelf. At 55 Thompson, a boutique building in SoHo that opened just two months ago, 40% of the 38 units have been leased, according to Richard Cantor, co-founder of Cantor & Pecorella Inc.,a real estate marketing firm. Meanwhile, 80% of the apart- Buy raw materials from Mexico. ments in the 131-unit 2 Cooper Square have been leased after four months, according to Mr. Cantor. Research development in the USA. Monthly rents on three-bedroom units are as much as $25,000. “Two to three years ago, these Ship packages to China. renters would have been buyers,”

Mr. Cantor says. 1 In fact, some failed condo proj- With offices in over 60 countries and territories, HSBC has the capability to provide you ects are finding success as pricey with on-the-ground connections to help you grow your business internationally. Working rentals.A case in point is 34 Leonard with your relationship manager, you will gain insights and discover how to navigate and St. in TriBeCa. New owners took understand the international marketplace. over the property, which includes a 300-bottle wine cellar and loft-like Visit your local branch, call 866 427-2094 or units, and put it on the market late go to us.hsbc.com/unlock to find out more. last month; 12 of the 16 units are taken. Danny Davis, a broker at Citi Habitats, recently closed on three apartments there with monthly tabs ranging from $18,500 to $23,500. At a fast-off-the-mark rental building, The Corner at 200 West, Patrick Lee recently rented a three- bedroom apartment after selling his nearby two-bed condo for close to what he paid for it two years earlier. The building, which has 196 units, 1The HSBC Group operates through a network of affiliates and subsidiaries around the world. is at Broadway and West 72nd In the United States, products are offered through HSBC Bank USA, N.A. Member FDIC, Equal Credit Opportunity Lender. Street. The 12 three-bedrooms in ©2010 HSBC Bank USA, N.A. the 20-story tower go for $16,500 to

October 18, 2010 | Crain’s New York Business | 29 20101018-NEWS--0030-NAT-CCI-CN_-- 10/15/2010 7:19 PM Page 1

ca,says in his zeal for reforming union work rules, he’s made enemies of the Walder’s audition unions.In particular,a decision to ap- Strange bedfellows peal an arbitrator’s ruling awarding Continued from Page 1 thusiastic about his political savvy. wage increases may be a misstep. Continued from Page 3 Bethesda, Md. Edition also has its publican nominee Carl Paladino has “He’s not a warm,cuddly figure,” “We’re challenging arbitration, listeners and to practice being in the own website, unlike any of the other said he’d replace Mr. Walder. Dem- says Robert Yaro, president of the and I’m not sure that’s fruitful,” Ms. moment,” says Linda Gelman, a Marriott properties, with the excep- ocrat Andrew Cuomo said earlier Regional Plan Association. “He’s Frasca says. “It’s one of the many producer with Chicago City Limits. tion of the Ritz-Carlton—another this month that the MTA needs a the epitome of the professional things impeding a better working re- “We are in the entertainment brand Marriott owns but was not “total overhaul,” although he didn’t manager.” lationship with the TWU.” business,” adds Hyatt’s Mr. Wallis. keen on publicizing, at least initially. say whether that would include re- Mr.Yaro praises the way that Mr. The MTA is lobbying in Albany Indeed, acting skills seem to be “There are a lot of brands that placing the MTA chief. Walder raised fares.When the RPA to convince legislators to fund $26.3 high on the list of desired employee needed to be endorsed by Marriott, Mr. Walder says he would like to urged the authority to craft increas- billion worth of capital projects. Ms. attributes. Harlem’s Aloft held a job such as Courtyard and Fairfield stay on. His six-year contract in- es that would least affect low-in- Frasca says the state’s willingness to fair in June at the Apollo Theater in Inn,” says Dan Flannery, managing cludes a generous severance pack- come riders, Mr. Walder kept base issue bonds has turned the agency which it asked candidates to “audi- director of Edition Hotels. “But age, intended to dissuade the politi- subway and bus fares at $2.25, while into a debt addict: Debt now eats up tion” for their positions. Edition doesn’t need that.” cally appointed board from raising the price of unlimited 17% of its operating budget. “We are looking for the self-ex- removing him. Transportation ex- monthly MetroCards 17%,to $104, The next governor should stand presser who says ‘Hi’ first,” says Bri- Going separate ways perts believe that there are few peo- starting Dec. 30. behind the MTA,rather than ridicule an McGuinness, senior vice presi- it will be at least two years be- ple as qualified for the position as it, says Noah Budnick, deputy direc- dent in charge of the Aloft and fore an Edition hotel opens in New Mr. Walder. He’s a finance expert Union discord tor of Transportation Alternatives. Element brands. York, adds Mr. Flannery. and former partner at management but observers say he has not spent One of the next challenges will be The 30 people who were hired Sometimes marriages between consulting firm McKinsey & Co. enough time developing a rapport finding a way to fund all five years of have since written a song about the big hotel companies and their inde- who was brought to New York to in- with his managers and building cred- its capital plan—not just the first two. hotel,set to the tune of Rod Stewart’s pendent mates don’t work out.Take troduce innovative technology,as he ibility with unionized workers—es- “What the candidates need to 1978 hit “Da Ya Think I’m Sexy?” Fashion 26, a 280-room hotel that did while an executive with Lon- pecially members of Transport think about is how they can take a They belt it out when a Starwood ex- opened in April on West 26th Street don’s transit system. Workers Union Local 100, whose leadership role in the MTA,”says Mr. ecutive visits the property,as a sort of as part of the Wyndham Hotel “If he doesn’t stay on, we’re in contract expires next year. Budnick, “and not throw the agency rally exercise, says Mr. McGuinness. Group. Late last month, it dropped trouble,” says Robert Paaswell, a “The perception that Jay Walder under the bus.” As for Mr.Schrager,he and Mar- its affiliation with Wyndham when transit expert. “There’s no one who puts forth is that we’re riding the Mr.Walder believes the MTA will riott are partners on a new luxury its owner, Steve Kassin, managing has the package of credentials he gravy train, and that simply is not always be an easy political scapegoat. brand, the first of which, the Waiki- partner of Infinity Real Estate, sold has.” true,”says TWU Local 100 president There are 8.5 million daily riders; all ki Edition,opened late last month in the hotel for $121.8 million—an of- But as both chief executive and John Samuelsen. it takes is one late train to create a le- Hawaii. And although it is part of fer he couldn’t refuse. chairman, Mr. Walder finds himself Mr.Walder says he’s had to reduce gion of enemies. Marriott’s reservation system and Sources say the new owner, RLJ not only managing a complex organ- the work force because of union in- By accepting the limits of his rewards program,the two brands are Development,is exploring an align- ization, but also navigating Albany transigence on amending costly and ability to inoculate the MTA from intentionally separated by geogra- ment with another hotel brand,such and negotiating with the system’s inefficient work rules—for example, criticism, Mr.Walder shows a glim- phy and corporate culture. as Hilton. A spokeswoman for paymasters, who provide about half train engineers receive an extra day’s mer of political astuteness: His as- The Edition’s headquarters is in Wyndham, which is now without a the MTA’s $12 billion budget. pay for switching between electric sertion that the MTA has a “credi- the meatpacking district on Green- boutique property here, says, “We While admirers praise Mr. Walder’s and diesel equipment. But even an bility gap” means that he can take wich Street, more than 300 miles are always exploring new opportu- technocratic skills, they are less en- admirer,board member Doreen Fras- credit for closing it. away from Marriott’s main office in nities.”

Now that’s a Sweet Dilemma!

From now to December 31, 2010, the choice is yours.

Earn a Free Night after two stays at any hotel* in the Priority Club® Family of Brands, up to ﬁ ve Free Nights.

Or, earn Double Priority Club Points or Miles, starting with your ﬁ rst stay at Staybridge Suites® or Candlewood Suites® hotels, or your second stay at any other hotel* in the Priority Club Family of Brands.

We never said it would be an easy choice.

Register today at priorityclub.com/freenight

30 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0031-NAT-CCI-CN_-- 10/15/2010 3:03 PM Page 1

From ’93 to ’07, NYS gained 259,090 jobs as firms moved in and lost 407,558 as firms moved out— the worst U.S. results BUSINESS LIVES Source: Empire Center for New York State Policy

HOT JOBS GOTHAM GIGS EXECUTIVE INBOX Anne Fisher PAYROLL DIRECTOR Artist’s Classic Rock COMPANY Tishman Construction Corp. playing at carnegie hall is nothing new for Alexander Markov.The Russian-born son Franklin Yao’s JOB DESCRIPTION Managing the of professional violinists had his first solo gig there when he was 16. But on Oct. 9, the China link operation of the payroll depart- world-renowned musician fulfilled a dream he has had since moving to the U.S. when he ment, including biweekly payroll 12 HERE’S A STATISTIC that may and related reports was : playing rock ’n’ roll on his violin on the famous stage. ¶ He arrived with his gold- plated electric violin—accompanied by a rock band, an orchestra and the LaGuardia High surprise you: 25% of U.S. firms MOST IMPORTANT TASKS with revenue of $5 million to $25 Upgrading, enhancing the Lawson School Senior Chorus—to debut The Rock Concerto, which he and collaborator James million are doing business in payroll system; monitoring and Remington had worked for years China or plan to do so in the next auditing the system as required to perfect. He played to a sold-out five years. That’s according to a CREDENTIALS NEEDED Bache- crowd, bringing kids from the recent survey of 1,617 small- lor’s degree; ability to produce company CEOs by business- Lawson reports through Report downtown club scene to the music hall development firm Vistage. Writer, Crystal, Microsoft add-ins for the first time.The catch for the Franklin Yao thinks that’s just and Excel neophytes: Before the concerto, Mr. Markov the beginning. “Most smaller SALARY $100,000-$115,000 performed Tchaikovsky. ¶ “Classical music has companies’ connection to China RECRUITER Internal long suffered from a lack of young people,” says Mr. is because they outsource,” he notes. “But in the past couple of DOWNSIDE Providing in-house Markov, who has been performing at local schools to multicompany, multistate payroll years, we’ve been seeing a much for up to 1,000 employees and expose youths to the art form. “This way, everyone who larger number of smaller U.S. union members came for The Rock Concerto had to hear the classical, too.” ¶ companies trying to enter the UPSIDE Discretionary bonuses, Now the fortysomething musician—whose mother wishes he Chinese market by selling stock discount plan, 401(k) consumer products there.” would get married and settle down—is taking his show on the Mr. Yao is head of Privately held Tishman Construc- road. “My career is going to change to a whole new level,” he says. tion is based in Manhattan, with SmithStreetSolutions, launched operating subsidiaries across the —miriam kreinin souccar in 2007. The firm, with 60 country. It provides a range of employees at its headquarters construction and related services. on Fifth Avenue and in Shanghai, —BRIAN CHAPPATTA advises American businesses— most of them Fortune 500 companies—on how to succeed EXECUTIVE MOVES in China. Mr. Yao says revenues have tripled in each of the past Marsh: Elizabeth two years. Nieto, 47, was “Most U.S. companies do not appointed global head of talent, learning and understand China,” Mr. Yao notes. diversity, a newly For starters, China isn’t one created position. She market. Its more than 1.3 billion joins the insurance citizens live in 33 distinct markets, broker and risk adviser with many different cultures and from Citigroup, where she was global languages. SmithStreetSolutions talent management, diversity and has gotten much of its business employee programs director. PwC: Thomas Boniface, 40, has been thanks to American companies’ appointed partner and co-leader of the penchant for launching massive indirect tax practice. He joins from marketing campaigns without KPMG, where he was a partner. preparing to deal with varying Eckart Neurnberger, 54, has joined as co- demographics. “They come to us leader of the German tax desk. Most and say, ‘OK, now how do we fix recently, he was international tax partner at Damon Maida. this?’ ” says Mr. Yao. EMI Music Inc.: Pat Shah, 35, joined as The time and manpower vice president, digital business required to figure out how to development, for the company. He was sell in China, he adds, “is a most recently at SurchSquad.com, significant barrier to entry for which he founded. small companies that just don’t Sidera Networks: Michael Sicoli, 40, was have the resources.” named chief executive If your company fits that of the description, you may think you telecommunications can safely ignore what’s company. Most happening on the other side of recently, he served as the world. “But China is so big, executive vice there’s no avoiding it,” says Mr. president and chief financial officer of TAKE A BOW: Alexander RCN Corp. Markov, photographed at Yao. “Even if you don’t go to China, Richardson & Patel: David N. Feldman, the Russian Tea Room. China will eventually come to you.” 50, has been named partner at the law firm. He was most recently with DO YOU do business in China or have Feldman, where was a managing plans to do so? Has Chinese competi- partner. tion affected you? Tell us at

See EXECUTIVE MOVES on Page 32 buck ennis www.crainsnewyork.com/execinbox.

October 18, 2010 | Crain’s New York Business | 31 20101018-NEWS--0032-NAT-CCI-CN_-- 10/15/2010 1:30 PM Page 1

RÉSUMÉ REVIEW Cross-fertilizing Red Cross Is your job search all it could be? We ask the experts. Insurance vet builds Why did you take this job? you raise revenue and target new I really believe in the humanitarian donors? NAME BARRY HOLDEN humanitarian mission mission of the Red Cross. With my Obviously, in this environment, SUMMARY business background,the Red Cross there are many things the Red Cross Design and construction administrator for all with business outreach offers me a platform to blend my can help with. We’ve had so much types of residential architecture personal and professional sides. experience with disasters. But we Many people in the business com- also help businesses with corporate PROFESSIONAL EXPERIENCE BY BARBARA BENSON munity know my deep concern for emergency preparedness.We are the l Barry Holden, Architect, 2004-2009 people and humanitarian causes. I gold standard and would like to Principal; duties included all phases of projects and construction s chief executive of hope they will join with me to sup- partner with businesses in rolling administration. Projects included design and project management of SBLI USA Mutual Life port the Red Cross. out emergency plans. People know commercial, residential and public art projects across the U.S. Insurance Co., Vikki Pry- us because we show up during disas- l The DiCarlo Group, 2004-2006 or was the first African- What is your chief challenge as the new ters,but part of our business is emer- Senior design architect; duties included managing architectural side of AAmerican woman to head a major CEO? gency training.It generates revenue, the interior-design business, coordination of high-end residential projects. life insurance company in the U.S. Increasing revenue. We need to get and we [can then] enlist businesses l Aboveground Architects, 1985-2004 Earlier this month, she was named our message out there: We in our fundraising efforts. Our Principal; duties included all phases of architectural design and project CEO of the American Red Cross in want people who love our desire is to be there for the cor- management for commercial and residential projects. Greater New York. mission to know we porate community as part of l Selected projects Ms. Pryor, need help. the infrastructure for emer- Commercial: National Settlement Agency, Shapiro/Brach Studio, 57, takes the gency preparedness. Nucci clothing store, Hobson rental apartments, P.S. 234 playground reins of the Will that be difficult? Governmental/arts in public places: I.S. 145 Public Artworks, MOVERS & country’s larg- The current econo- Are New Yorkers weary of New Jersey Transit’s Richard Street Station in Jersey City SHAKERS est Red Cross my is a stumbling donating to disasters in a chapter at a block. Our country post-Sept. 11, post-Katrina, EDUCATION tough time: is stressed-out.We post-Haiti era? l Master of Architecture, Columbia University, 1985 Vikki Private dona- will need to be No. New Yorkers Résumé appears in condensed form. tions fell 13% creative. We are very resilient EXPERT ADVICE Pryor in the fiscal will build part- and continue to year ended in nerships.With be the pulse of This is a strong résumé. The information is clearly laid out, with summaries June and were the business the nation. We of each job as well as a project list. The candidate has a master’s from an down 22% the year before. Govern- community, saw $32 million excellent program, has his architecture license and has worked for some ment funding was cut 11% last fiscal that means a in donations solid firms. There are fewer available jobs than there are architects, so year and 19% during the previous face-to-face from the great- Barry will want to find creative ways to make money and build his résumé one. The organization’s rainy-day approach. er New York while he is between jobs. With his residential experience, I would suggest cushion also has taken a hit: Its in- area after the that he look at www.planrocket.com, where he can list house plans for sale. vestment fund dropped by $21 mil- The Red Cross Haiti earth- —terry thiele, owner, Transept Recruiters lion during fiscal 2009. But Ms. specializes quake.We know To contact this candidate or to be featured in “Résumé Review,” e-mail us Pryor—who has J.D., M.B.A. and in coping with New Yorkers re- at [email protected]. C.P.A. degrees—says she is pre- disasters. spond to emer- pared for all emergencies. How will gencies. n

EXECUTIVE MOVES platform. She was formerly with Datran with Jones Apparel Group as president joined the bank’s New York office as as chief operating officer. Media, where she was director, strategic of Energie, Currants and the L.E.I. Knit senior vice president and team leader for Comedy Central: Arian Sultan Rothman, accounts, for the Aperture product. division. entertainment. He joins from Israel 33, has been promoted to vice president, Continued from Page 31 Peter Schnupp, 37, has joined as senior D’Alessio Tocci & Pell: M. Howard Pell, Discount Bank of New York, where he business and legal affairs, East Coast. STV: Sam Spata, 55, has been named account director. He most recently 67, joins the accounting firm as tax was a senior vice president, head of the She joined Comedy Central in 2006 and executive vice president of the buildings served as account director at Initiative & partner. He was previously with PKF as entertainment, sports and syndicated was formerly senior director of the and facilities division at the architectural Proximity. director of tax. finance group and head of mid- department. firm. He was most recently a co-director Walter & Samuels Inc.: Warren J. Sorgen, Thumbplay Inc.: Nathan Jones, 30, joined corporate banking. Chadbourne & Parke: M. Scott Peeler, 39, at Perkins + Will. 63, is now an affiliate with the real estate as director, product experience, for the Blackstone: Judy Turchin, 41, joined as has been named partner at the law firm. Studley: I. Keith Ellis, firm. He was previously assistant vice cloud-based music service. He was managing director in the legal and He was previously a partner at Arent 55, joins the real estate president at Helmsey-Spear. formerly design director at Alexander compliance group at the financial Fox. advisory firm as The Doneger Group: Interactive. services company. She was previously a Jeffrey Wasserman, 36, has joined as executive managing Patty Leto, 53, has Greenberg Traurig: John A. Brunjes, 47, senior vice president and legal officer at partner. He was previously a partner at director. He was been named senior has been named shareholder, corporate Lehman Brothers Real Estate Private Bracewell & Giuliani. formerly executive vice vice president, and securities practice, at the law firm. Equity. PRCG: Jon Coifman, 44, president at CB merchandising, for the He joins from Bracewell & Giuliani, Nest Seekers International: Edward Cho, has joined the public Richard Ellis. source of market where he was partner and member, 30, has been named associate broker at relations consulting Traffiq: Jane Roy, 41, trends and private investment funds group. the real estate firm. He was previously group as managing has been named senior director of merchandising Heritage Realty Services: Albert E. with Urban Sanctuary as an associate director. He joins from agency development at the digital media strategies for the Lawrence III, 51, has been appointed broker. Waggener Edstrom planning, buying and management fashion industry. Most recently, she was managing director, property operations Wing: Andrew Speyer, 42, joins the Worldwide, where he and leasing. He was previously general marketing communications agency in was vice president, manager at Hines Interests. the newly created position of vice social innovation group, CORPORATE LADDER Inergetics Inc.: Aida Aragon, 44, has been president, head of strategy. He joins and practice lead, environment and named national sales and marketing from Zubi Advertising, where he was clean technology. director for the biotech and vice president and director of account DoubleVerify: Eoin Townsend, 38, has VIACOM’S NEW TECH/INFORMATION CHIEF pharmaceuticals company. She was planning. joined the media verification company as previously sales and marketing Mayer Brown: Howard senior vice president of partnerships and VIACOM INC. has appointed David Kline senior vice coordinator at CytoSport. Beltzer, 52, has been business development. Most recently he president of technology and chief information officer of Business Monitor International: Angelo named partner in the was an active consultant and investor; he Viacom and its MTV Networks. In his new role, Mr. Kline, Goncalves, 38, was named director of restructuring, co-founded MainStreetSocial. 43, will provide the strategic leadership for the business development, Brazil. He was bankruptcy and Orchestra of St. Luke’s: Katy Clark, 42, company’s technology infrastructure, and he will oversee most recently a financial adviser at insolvency practice. He has been appointed president of the MTV Networks’ online operations. National Alliance. comes from Morgan musical organization. She joined the W.P. Carey: Trevor Lewis & Bockius, organization in 2005 as director of Mr. Kline comes to Viacom from Discovery Bond, 48, has been where he was a partner development and continues as executive Communications, where he most recently served as elected permanent in the New York office and co-chair of director. executive vice president and CIO. Before joining Discovery chief executive and the firmwide finance and restructuring —maggie wells in 2007, Mr. Kline spent nearly 10 years at Rainbow president of the group. investment Mendeley: Jonathan Keidan, 36, was Media Holdings, the content subsidiary of Cablevision Systems, where he EXECUTIVE PROMOTIONS was senior vice president and CIO. Previously, Mr. Kline held management management named senior vice president, business company. He development and operations, for the positions at Integrated Systems Group and North Shore Health Systems. The fastest way to get an announcement into previously served as online research collaboration platform. Crain’s is to submit details online. Fill out the form —VALERIE BLOCK interim chief executive. He joins from the Jack Welch at www.crainsnewyork.com/submit. The City National: David Acosta, 35, has Management Institute, where he served Executive Moves column is also available online.

32 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0033-NAT-CCI-CN_-- 10/15/2010 4:11 PM Page 1

THE Hasty foreclosures under fire fficials slammed the brakes on foreclosures last week, as concern grew over “robo- WEEK Osigned” affidavits.The New York state Banking Department asked more than 20 mortgage servicers in the state to stop foreclosure actions until it can undertake its own ON THE investigation. Nationally, attorneys general are crying foul that banks are filing affidavits when the signers had no personal knowledge of home foreclosure cases. Without the protection of WEB having someone verify the information in each instance, people could improperly lose their homes. New York Attorney General Andrew Cuomo (right) also stepped into the fray, calling OCT. 11-17 the potential fraud “a slap in the face of New Yorkers struggling to get by.” He told Bank of America Corp., J.P.Morgan Chase & Co., Wells Fargo and GMAC Mortgage/Ally to submit R C AINSNEWYORK.COM data on how their foreclosure documents are prepared and verified. Only Wells Fargo has

sidestepped the foreclosure moratorium. newscom STEVEN RATTNER CAME CLOSE TO SETTLING with the U.S. Securities and Exchange Commission on charges that his Quadrangle Group allegedly paid $1.1 million in finder’s fees to Henry Morris, the chief political consultant for former state Comptroller Alan Hevesi, and received a fat investment from the fund in exchange. The SEC postponed voting on the proposed YOU BUILT YOUR settlement. Mr. Hevesi, who admitted earlier to a second-degree charge of receiving reward for official misconduct, might still avoid jail time. … Speaking of BUSINESS busting up schemes, THE FEDS BROKE UP A $163 MILLION PLOT that WITH CUSTOMERS’ NEEDS IN MIND. “puts the traditional Mafia to shame,” according to one U.S. attorney. A network of Armenian gangsters used fake health clinics SO DID WE. to commit the largest Medicare fraud by one criminal enterprise in the program’s history. In New York, more than $100 million in fraudulent bills were submitted. Authorities investigated after information on 2,900 Medicare patients in upstate New York was reported stolen. … AVON’S BRASS MAY HAVE PREPARED FOR A TAKEOVER last spring, when the company altered its provisions to give more top execs golden parachutes in the event of a merger or takeover. The company denies prior knowledge, but last week rumors surfaced that L’Oréal made a cash bid for the company to the tune of $18.8 billion. … THE • Dedicated Relationship Manager SURVIVAL OF THE 33 CHILEAN MINERS makes for a great story, and • Convenient Online Access with TD Bank BusinessDirect New York publishers are racing to tell the tale. Journalists are • Longer Hours that Work with Your Schedule shopping for book deals here. Jonathan Franklin of the U.K.’s Guardian already sold his book, 33 • We’re Ready to Lend When You’re Ready to Borrow Men, Buried Alive:The Inside Story of the Trapped Chilean Miners, to British publisher Transworld. … DITCHING THE BALL AND CHAIN GOT A WHOLE LOT EASIER in New York Visit your nearest TD Bank, connect to last week when the state’s no-fault divorce provision took effect. www.tdbank.com/smallbusiness or call 1-888-751-9000 today. Unhappy couples no longer have to point to cruelty or abandonment as the cause of ruined marriages. New York was the final state to adopt that newscom feature of divorce law. Lawyers have been holding cases back for months and expect

the number of divorce-seekers to Some restrictions and fees may apply; check your account agreement for more information | TD Bank, N.A. rise. —brian chappatta

October 18, 2010 | Crain’s New York Business | 33 20101018-NEWS--0034-NAT-CCI-CN_-- 10/15/2010 3:02 PM Page 1 chemex / INSATIABLE CRITIC Gael Greene date lemon-anchovy emulsion. needs more oomph than market car- flickr.com Even thick slices of toasted country rots can provide. I taste my neigh- bread for steak tartare and Zakari- bor’s roasted loup de mer but am not an’s classic foie gras seemed special. moved.Though a friend with a crav- The chef himself was nowhere to ing for meat pronounces the prime be seen (he was off at a star-studded Delmonico steak excellent,to me it’s Lambs Club film opening, I was told), but that superior meat indeed but lacking didn’t seem to affect the food. that essential steakhouse char. Now we’re back with other My idea of deep-dish lemon friends.Zakarian is present,dashing meringue tart would be more lemo- in his whites. And, sorry to report, ny.I need to dig to the bottom to get

misses a bleat buck ennis FRESH: Yellowfin tuna carpaccio dinner is somewhat uneven. Is at the chocolate in the chocolate pot tonight’s full house to blame? de crème. But I definitely admire a the Empire State building. Red Granted, the radish-cauliflower sophisticated slice of honey pista- Hotel setting wows, leather banquettes and crisp white LAMBS CLUB crudités and pull-apart seeded rolls chio cake. Pastry chef Elishia V. piqué tablecloths against black 132 W. 44th St. start us off with positive murmurs. Richards washes the cake with hon- but chef Zakarian is (212) 997-5262 walls. www.thelambsclub.com (Only I am aware the olive baguettes ey and mead, then naps it with can- spread too thin Our six wrap around a corner are gone.) died pistachios in rum syrup and booth. Zakarian himself is here, Indeed, yellowfin tuna carpaccio fromage blanc. eoffrey zakarian tending to his in-laws. And my ap- niçoise style—with string beans, What really threatens the Lambs has never met a hotel petite is seasoned with great expec- CUISINE American radish thins, black olive and toma- Club, then, is not the sanctum in- lobby that daunted tations from a dinner two weeks ago PRICE RANGE Entrées $26-$46 to—sparkles with freshness, and the nerness of the restaurant or the $18 him.He got three stars that really impressed. I’d shared foie gras terrine with black mission cocktails on the menu.It’s a new Za- G SERVING Breakfast, lunch, at Town in the Cham- splendid heritage pork ravioli under figs is fine, as one would hope for karian trust, The National, an bers Hotel and another trio at shards of Sardinian cheese, rich dinner, brunch $26. My neighbor is delighted with American grill demanding the Country Upstairs at The Carlton. hand-cut beef tartare with pickled RESERVATIONS Yes a big chunk of cod and Manila clams. chef ’s attention,due to open soon at Now, with nightlife hipsters Will chanterelles, and peppery veal But whole leaves of red and green The Benjamin Hotel. Zakarian has Regan, David Rabin and Jeffrey Jah sweetbreads with grilled Treviso. NOISE LEVEL Civilized lettuce with chopped egg dressing shown a knack for finding strong (late of Lotus) running the lounge, Both the remarkably moist chicken I can’t wait to return. and the grilled octopus with turnips backup to keep him looking good Geoffrey and his wife,Margaret,are and a meaty pork chop—ordered I will definitely go back. and lemongrass are unremarkable. when he’s distracted or off being a sitting pretty at the Lambs Club in rare, delivered deliciously so—were Roasted lamb saddle with a rectan- star. And Lambs executive chef Joel the new Chatwal Hotel, a land- textbook juicy.Only the “crispy”fin- I’ll let them simmer awhile. gle of shoulder meat, polenta cubes Dennis seemingly has no problem marked building designed by Stan- gerling potatoes drew a straight-out NO HATS Never again. and wilted romaine is much ado but with absentee bosses. After all, he ford White. The Lambs Club, once complaint. “Crispy is definitely an merely fine. The farm chicken—a last worked for the wandering Alain a 19th-century actors’ hangout, isn’t exaggeration,” a companion noted. whole breast and a crispy thigh— Ducasse at Adour. Time will tell. just pretty—it’s stunning. The Art We were knocked out by the seeded soft Parker House-like rolls, previously astonishingly moist, is Deco-fied lobby. The lounge up- bread service then, too: small and a small saucer with cuts of radish good but not thrilling, and my hal- Copyright © 2010 by Gael Greene. stairs with bar lights in the shape of warmed olive baguettes, luscious and green cauliflower to dip in a se- ibut filet, cooked rarish as I asked, Syndicated by www.insatiable-critic.com.

Innovative solutions from bankers who know the territory.

• Empowered local commercial bankers with industry experience • Backed by the strength of a top 10 bank • A 2009 Greenwich Associates’ Excellence Award Winner for Relationship Manager Performance in Middle Market Banking

Contact Ellen Marshall, Commercial Market Executive 212.764.8315 | [email protected]

MIDDLE MARKET COMMERCIAL REAL ESTATE EQUIPMENT LEASING & FINANCE TREASURY MANAGEMENT MUNICIPAL & TAX EXEMPT LEVERAGE FINANCE

34 | Crain’s New York Business | October 18, 2010 20101018-NEWS--0035-NAT-CCI-CN_-- 10/15/2010 3:13 PM Page 1

preregister by Oct. 26 at MON. TUES. WED. THURS. FRI. SAT. SUN. www.bizbashnewyorkexpo.com/register. 10.25 10.26 10.27 10.28 10.29 10.30 10.31 THE Call (646) 839-6825 or e-mail [email protected] for more information. information. You may also e-mail WEEK [email protected]. THURSDAY , OCTOBER 28 LANDSMAN COMMUNICATIONS GROUP, FUNDRAISERS TRYLON SMR and PR NEWSWIRE present TUESDAY , OCTOBER 26 AHEAD PR+MKTG Camp East: Ignite. This ORT AMERICA hosts its engineering and interactive one-day retreat will discuss construction annual tribute luncheon OCT. 25 - 3 1 ways to maximize public relations and from 12 p.m. to 2 p.m. at the Union marketing impact in today’s media League Club at 38 E. 37th St. Fees are landscape. The event takes place at the $300 per ticket and $3,000 for a table of CONFERENCES & SEMINARS Lighthouse Executive Conference 10. Call (212) 520-4151 or e-mail WEDNESDAY , OCTOBER 27 Center at 111 E. 59th St. from 8 a.m. to [email protected] HISPANIC CREATIVE GROUP and NEW YORK 5 p.m. Fees are $299 with preregistration with any questions. You can also visit UNIVERSITY’S SCHOOL OF CONTINUING or payment by Oct. 27, and $325 at the www.ortamerica.org. door. Call (404) 310-0023 or e-mail AND PROFESSIONAL STUDIES present the URAL CULTURALT EVENTS Hispanic Sports Summit, the first [email protected] for MONDAY , OCTOBER 25 annual event leading sports industry more information GUGGENHEIM MUSEUM leaders reveal how they leverage sports The presents to reach Hispanics. The eventHURSDA will be TTHURSDAY , OCTOBER 28 Voices and Dance Within the Americas. CHINA BUSINESS KNOWLEDGE held at the NYU Kimmel Center at 60 hosts an Ballet Hispanico’s artistic director, Washington Square South from 9 a.m. urban retreat with panels covering Eduardo Vilaro, has paired Cuban to 6 p.m. The fee is $395. Call investment strategies, compliance issues, choreographer Maray Gutierrez and (917) 855-8730 or e-mail highlights of hot sectors, politics and Peruvian-American composer Gabriela [email protected] for more policies, all setting the stage for the best Lena Frank to create a work that information. investment practices for 2010.The event explores identity and cultural fusion. takes place at Bridgewaters, 11 Fulton The performance takes place in the EDNSA WWEDNESDAY , OCTOBER 27 St., in the South Street Seaport, from Peter B. Lewis Theater, 1071 Fifth Attend the BIZBASH NEW YORK EXPO & 8:30 a.m. to 6 p.m.The event costs $695, Ave., at 7:30 p.m. and is followed by a PICK OF THE WEEK AWARDS, which offers a showcase of but discounts are available for multiple reception in the museum rotunda. ideas and inspiration for event registrations. Call (917) 846-4251 or e- Tickets are $25 for members, $30 for SUNDAY ,, OCTOBER 31 The BROOKLYN CENTER FOR THE professionals, including 10 mail [email protected] nonmembers and $10 for students PERFORMING ARTS presents Cirque le Masque: Carnivale entertainment offerings, an industry for additional information. under 25 with a valid ID. Call (212) 423-3500 or visit mash-up, flash sessions and action WORKSHOPS at the Walt Whitman Theatre at Brooklyn College, 2900 stations on the floor. The event takes www.guggenheim.org for information. Campus Road. This European-style, animal-free circus place at the Jacob K. Javits Center on TUESDAY , OCTOBER 26 FRIDAY , OCTOBER 29 11th Avenue at West 38th Street from CAMBA SMALL BUSINESS SERVICES features jugglers, acrobats, aerialists and clowns. Children JAPAN SOCIETY 7:30 a.m. to 7 p.m. A one-day show pass presents a workshop on options for Join the for “Obake,” an 18 and younger pay half price, and they are encouraged to is $80 on-site and $60 for those who financing your business. The event takes evening of food and drink, music, film, place from 3 p.m. to 5 p.m. on the gallery tours and a costume prize. The wear Halloween costumes. Tickets are $27 and $37 in second floor of the Camba center, 884 event will be held at 333 E. 47th St. from Flatbush Ave., Brooklyn. For more 7 p.m. to 9:30 p.m.The event is free for advance, and $30 and $40 at the door. The show takes information, call (718) 282-2500, ext. members, $15 for nonmembers. Call place from 3 p.m. to 5 p.m. Call (718) 951-4500 for more 226, or e-mail [email protected]. (212) 715-1258 to reserve tickets, or visit www.japansociety.org. information, or visit www.brooklyncenteronline.org. WEDNESDAY , OCTOBER 27 —maggie wells The ATHENA LEADERSHIP LAB AT BARNARD COLLEGE presents “Brandraising: An Integrated Approach to Nonprofit Communications.” The event explores how to use research to inform communications strategies, the role and impact of branding, and the best ways to leverage newer online tools MIND YOUR and technologies. The workshop takes zuma press place at the Diana Center, Barnard College, 3009 Broadway, from 7 p.m. to WHAT HE’S 9 p.m., and costs $229 per person. Call or e-mail (212) 854-1264 BUSINESS READING [email protected] for information on discounts and how to register. we’ve got your back end* FORMER DALLAS COWBOYS wide receiver MichaelRIDA Irvin said and FFRIDAY , OCTOBER 29 did some crazy things during his The NEW YORK CHAPTER of the NATIONAL * Hint: You don’t have to choose between productivity, security, and compatibility playing days, while also giving the SPEAKERS ASSOCIATION hosts “Games New York Giants’ defense fits on Speakers and Trainers Play.”The program provides dozens of tips, tools the turf. Now he’s taking a look and techniques to enhance training into what spurred his erratic programs and presentations. The event FREE APPLE BUSINESS EVENTS AT behavior by reading Thom will take place at the New York City Bar Join us for advice, tech tips & best practices to grow your business Hartmann’s The Edison Gene. Association, 42 W. 44th St., from 9 a.m. “I wanted to understand why I to 12 p.m. Register online at www. Thursdays at Tekserve at Noon, 2, 4 and 6 p.m. (6 p.m. sessions begin with networking reception) did some of the dumb things I nsa-nyc.org. Fees are $30 for members with online registration, and $40 for did,” Mr. Irvin joked, before being members and $60 for nonmembers at October 21 Solutions for Real Estate Professionals honored at the 25th Annual Great the door. Call (212) 689-4558 or e-mail Sports Legends Dinner at the [email protected] for more October 28 Building a Paperless Ofﬁce - Document Management Solutions Waldorf Astoria. He applied the information. November 4 Tekserve Solutions for Any Small Business author’s theory on attention deficit hyperactivity disorder to FRIDAY , OCTOBER 29 The HEALTHCARE FINANCIAL MANAGE- football players, explaining that MENT ASSOCIATION hosts a training For more info and to register visit: tekserve.com/meansbusiness some of his peers have a fighter’s workshop, “Office of the Inspector mentality when they’re on the field, General Work Plan and Compliance Tekserve Solution Partners: but can’t reason off the field. Hot Topics.” Participants can hear about He also talked about the the 2011 OIG work plan and Office of impact of concussions on retired the Medicaid Inspector General and NFL athletes. “I worry now when I New York state developments. The event takes place at PwC, 300 Madison 119 W 23rd St., NYC | 212 381-6381 walk out of the gym and I forget MEANS Ave., from 9 a.m. to 5 p.m. Fees are $99 BUSINESS Expert advice, Apple products and full-service tech support for business which side [of the street] I parked for certified members, $125 for my car on,” Mr. Irvin said. members and $199 for nonmembers. —BRIAN CHAPPATTA Visit www.hfmametrony.org or call (646) 227-4475 for more detailed Apple, the Apple logo, iPhone, iPad, Mac OS X, iWork, iLife, and Mac are trademarks of Apple Inc., registered in the U.S.and other countries.

October 18, 2010 | Crain’s New York Business | 35