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REDEMPTION VOL. XXXIII, NO. 8 WWW.CRAINSNEWYORK.COM How an entrepreneur built a multimillion-dollar business STORY one nickel at a time Page 14

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P001_CN_20170220.indd 1 2/17/17 7:47 PM FEBRUARY 20 - 26, 2017 CRAINSNEW YORK BUSINESS

FROM THE NEWSROOM | JEREMY SMERD IN THIS ISSUE

Good intentions gone bad 4 IN CASE YOU MISSED IT 5 HEALTH CARE To solve the MAYOR BILL DE BLASIO’S “new front line in the battle to keep housing 6 WHO OWNS THE BLOCK crunch, look in New York City affordable” is jobs, as he said in his State of the basement the City address last week. But in his quest to create more 7 REAL ESTATE of them, he should be mindful not to hurt the private sector 8 ASKED & ANSWERED he’s purportedly trying to help. 9 VIEWPOINTS A case in point is the 300,000-square-foot facility in Sun- 10 THE LIST set Park, Brooklyn, that the mayor announced last week will FEATURES be used to help manufacturers grow and hire. The city says the $136 million investment will lead to 1,500 permanent 12 RETAIL POLITICS fashion, film and television jobs, helping the mayor achieve 14 CAN DO his goal of creating—over more than a decade—100,000 We are getting calls positions that pay $50,000 and up. That seems eminently from productions doable. After all, since he took office, the private sector has P. 8 “ MARTA created nearly three times that amount—a record gain of that want to film MARTINEZ 280,000. (See our editorial, page 3, on how we think the in New York, but mayor ought to refine his approach to job creation.) honestly there isn’t The question for me is whether the proposal supports or competes with private-sector companies already oper- enough space ating in film and television. For garmentos, it’s clear that subsidized maker space is needed, just as food manufacturers and companies in the construction supply chain need space if they are to build their products nearby. It’s less clear to me why the city is subsidizing the film and television industry, 24 GOTHAM GIGS which has grown like gangbusters into a $12.5 billion sector in the dozen years since 25 SNAPS the state tax credit—now $420 million annually—was implemented. 26 FOR THE RECORD Julie Menin, commissioner of the Mayor’s Office of Media and Entertainment, 27 PHOTO FINISH said that despite property owners’ willingness to build large stages here—which they are currently doing—few have the kind of room offered by the vast Sunset Park facility. “Right now we are getting calls from productions that want to film in New York, but honestly there isn’t enough space,” she said, adding that the Sunset Park soundstage will “equal 5% of existing soundstage stock—and we need it.” It’s important to note, Menin said, that a company will be selected through competitive bidding to operate the stage. But the Sunset Park project may ultimately undermine the film and TV industry by fueling criticism that it is being lavished with things it can do without. And that is ironic because the one freebie that executives deem essential is the tax credit. Without it, they say 80% of the city’s production work will dry up. “Why is the city ON THE COVER intervening in an area where it’s not needed?” one industry source asked. “If you PHOTO: BUCK ENNIS overdo it, it actually hurts the industry.”

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CONFERENCE CALLOUT MARCH 1 Go to CrainsNewYork.com READ Smith Elec- STEVEN BANKS MEET CITY HALL’S tric Vehicles Corp. > HOMELESSNESS CZAR shuttered its opera- Steven Banks, commissioner of tions due to a lack of the city’s Human Resources funding. The company Administration, will discuss the had been considered mayor’s plan to address the a promising source of rise in homelessness as well as emission-free delivery his efforts to change the city’s trucks. approach to welfare programs. ■ Cuomo administration officials defended THE NEW YORK ATHLETIC CLUB the governor’s plan to save $55 million in pharmaceutical spending by capping prices 8 to 9:30 a.m. on high-cost drugs. The cap is intended to [email protected]. target companies whose products are exorbi- tant because they do not face competition. Vol. XXXIII, No. 8, Feb. 20, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third ■ Financial firm Tullett Prebon is moving Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send from one lower Manhattan office to another. address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. The deal to lease a 125,000-square-foot For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. space at 200 Vesey St. will last 15 years. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. BUCK ENNIS, COURTESY OF NYSERDA

2 | CRAIN’S NEW YORK BUSINESS | February 20, 2017

P002_CN_20170220.indd 2 2/17/17 8:01 PM WHAT’S NEW February 20, 2017

AGENDAMayor de Blasio talks jobs, finally. But he should focus on what works

ill de Blasio has spent much of his mayoralty talking about affordable housing, prekindergarten, paid sick leave and a rise in the minimum wage as antidotes to inequality. Oddly absent from his talking points has been the creation of quality jobs, Bwhich must be part of any plan to help the poor and the working class. The omission has been ironic because employment growth has turned out to be a highlight of de Blasio’s first term: About 280,000 private-sector jobs were added in the city during his first three years—a historic achievement, NEW YORKERS are although not one attributable to his policies and perhaps despite them. going to work in It’s possible that the mayor did not initially emphasize jobs because of record numbers, but the mayor a prevailing sentiment that the economy was largely creating positions in says good jobs fast food, retail, home health care and other low-wage industries. That may are those paying at least $50,000. have been true in the aftermath of the Great Recession. But it turns out, retail employment has fallen slightly during de Blasio’s tenure, the only job mary obligations to businesses: to create the conditions in which they category to decline. And wage growth was strong in 2015 for the first time can thrive and to steer students on a path to employability. The city has in years, a sign that a shrinking pool of available workers is pressuring the improved in those two areas but still has far to go. It is infamous for red city’s employers to raise pay. tape, and of the 70% of high schoolers who graduate on time, only 37% Whatever the case, de Blasio last week are college-ready when they do. Sustaining suddenly made job creation the central pro- Once career ladders are built, many recent gains on these metrics is essential. But posal of his re-election year. He set a goal de Blasio is right not to give up on the vast of fostering 100,000 good jobs—that is, po- New Yorkers need support to ascend pool of underskilled, undereducated New sitions paying $50,000 or more—over a de- them because of issues in their lives Yorkers. Two keys for the mayor are work- cade. These jobs would result directly from ing closely with employers to design training city initiatives, he indicated, and be available programs and focusing resources on New even to New Yorkers who currently lack the skills to fill them. “We’re going Yorkers with ambition and potential. Once these career ladders are built, to provide the training and the support,” he vowed, offering few details but however, people typically need support to climb the rungs because of var- naming film and television production, life sciences, technology, advanced ious issues in their personal lives. That is what makes these undertakings manufacturing, construction and garment making as areas of focus. so challenging. We wish the mayor luck, but it will take more than that. This is a welcome effort, albeit peripheral to government’s two pri- — THE EDITORS

FINE PRINT A day after a city official mused at a Crain’s forum that his agency might not be needed to regulate a consolidated carting industry, his policy director walked back the statement. Daniel Brownell, head of the Business Integrity Commission, had said, “I’m not even sure you’d need a BIC” if the city carries out a plan for zoned collection of commercial waste. The policy director said the BIC would continue to regulate the industry.

BY GERALD SCHIFMAN STATS

25 WORDS OR LESS ROAD WORRIERS

AS SUPPORTERS of an area traffic-reduction plan try again to get a bill through Albany, new figures show New York City's congestion is worsening. AND THE CIT

We were from the Hours the average New York City driver spent in peak-hour “ congestion last year. Worldwide, only drivers in Los Angeles community. We 89 (104 hours) and Moscow (91) were stuck more.

wanted to do it for New York’s rank among most congested U.S. cities, behind Los Y the neighborhood. 2 Angeles. NYC was fifth in 2015. Ultimately we failed. Portion of each weekday that NYC % arteries and streets are congested, —Robert Hammond, co-founder of 16 which is the highest in the country

Friends of the High Line, who feels the Number of New York corridors among Cost in fuel, time, freight and elevated park has become more of a the nation’s top 10 most congested. business fees caused by New 4 The Cross Bronx Expressway ranks worst. $17B York congestion last year tourist attraction than a local amenity

BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCE: INRIX

February 20, 2017 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20170220.indd 3 2/17/17 7:46 PM ICYMI AGENDA CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL As lender falls, taxi revenues editor Jeremy Smerd managing editor Brendan O’Connor assistant managing editors Erik Engquist, continue to go downhill Jeanhee Kim, Robin D. Schatz web editor Amanda Fung copy desk chief Telisha Bryan OW MUCH WORSE can things get for the city’s taxi art director Carolyn McClain drivers? It appears that their business, in free fall photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, since the rise of Uber and other ride-hailing apps, Matthew Flamm, Daniel Geiger reporters Rosa Goldensohn, Hhasn’t bottomed out yet. Daily fare-box revenues for the city’s Jonathan LaMantia, Caroline Lewis 13,587 yellow cabs were 10% lower in December than in the data reporter Gerald Schifman web producer Peter D’Amato prior year and 25% lower than in December 2012, accord- columnist Greg David contributing editors Tom Acitelli, ing to the Taxi & Limousine Commission. Those numbers Theresa Agovino, Erik Ipsen, Cara S. Trager FLEET DESCENT: A cab help explain why the value of a medallion has plunged from ADVERTISING medallion is worth a www.crainsnewyork.com/advertise $1.1 million in 2013 to about $600,000. bit more than half of advertising director Irene Bar-Am what it was in 2013. [email protected] or Yet the number of cabbies on the road has fallen by only 212.210.0133 10% during the past five years, and only 1% of medallions have senior account managers Zita Doktor, Rob Pierce, Stuart Smilowitz, been taken out of circulation—meaning drivers are fighting over a steadily shrinking pie. Debora Stein sales coordinator Devin Arroyo The taxi industry’s sinking fortunes are dragging down its lenders. State regulators this month seized Melrose 212-210-0701, [email protected] Credit Union of Queens, one of the area’s largest medallion lenders, after delinquencies soared nearly tenfold in ONLINE general manager 18 months. Last month ConnectOne Bancorp of Englewood Cliffs, N.J., deemed about one-third of its taxi loans a Rosemary Maggiore 212.210.0237 total loss and said it’s trying to sell the remaining $66 million of its portfolio, most of which it designated “non [email protected] CUSTOM CONTENT accrual”—often a euphemism for “bust.” director of custom content Patty Oppenheimer 212.210.0711 This week the city’s pre-eminent taxi lender, Medallion Financial, is expected to report grim fourth-quarter [email protected] and full-year results. Its stock has fallen by about 75% in the past year, to $2.35 per share, as President Andrew multicultural sales manager Giovanni Perla [email protected] Murstein tries to wean his company off taxi loans, which comprise 49% of the firm’s loan portfolio. Murstein, who senior custom marketing manager Sonia David, [email protected] declined to comment, sought to reassure investors during a November conference call. “The company is doing EVENTS extremely well, except for the stock price,” he said. www.crainsnewyork.com/events director of conferences & events The good news for New Yorkers is that the rise of Lyft, Uber and similar services has increased by 40,000 Courtney Williams, 212.210.0257 [email protected] the number of drivers licensed by the city to take them around town—to 150,000 licensees—underscoring how manager of conferences & events quickly the industry has changed. — AARON ELSTEIN Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, [email protected] AUDIENCE DEVELOPMENT director of audience & content Durst trial revelation DATA POINT create Feed the Truth, a group charged partnership development Michael O’Connor, A witness testified that New York real with educating consumers and support- 212.210.0738 RENTS DECREASED 0.9% LAST [email protected] estate scion Robert Durst admitted ing journalism that investigates corpo- CRAIN’S 5BOROS killing their mutual friend Susan Ber- YEAR WHILE JOBS GREW 1.5%, rate influence on the nutrition field. www.5boros.com man. “It was her or me,” Nick Chavin Kind itself was warned it was inappro- Irene Bar-Am, 212.210.0133 ACCORDING TO APARTMENT MARKET [email protected] recalled Durst saying. The murder trial priately labeling its bars as healthy. DATA PROVIDER AXIOMETRICS. REPRINTS is not scheduled to begin for a year. reprint account executive Krista Bora NEW YORK’S METRO AREA HAD THE Apology accepted 212.210.0750 Oscars telecast is dressed in black Columbia University accidentally PRODUCTION HIGHEST ANNUAL JOB GAINS. production and pre-press director ABC has sold out the commercial time emailed acceptance notices to 277 pro- Simone Pryce for the Feb. 26 Academy Awards tele- spective students and then recalled media services manager Nicole Spell cast hosted by Jimmy Kimmel. Thirty- them. The erroneous messages were SUBSCRIPTION CUSTOMER SERVICE second spots are again going for about the Kushner family announced it will sent to applicants to the master’s pro- www.crainsnewyork.com/subscribe [email protected] $2 million each, despite a 7% decline rescind its reported $1.6 billion offer gram at the Mailman School of Public 877.824.9379 (in the U.S. and Canada); in viewers last year and the #OscarsSo for Loria’s Miami Marlins. The family Health. About an hour later, a retrac- $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print White controversy. Advertisers include said it does not want the complication tion and apology were sent out. subscriptions with digital access; Anheuser-Busch InBev, AT&T, McDon- of an “unrelated transaction to compli- to contact the newsroom: ald’s, Samsung, Verizon and Walmart. cate” the diplomatic appointment. www.crainsnewyork.com/staff 685 Third Ave., New York, NY 10017-4024 phone: 212.210.0100 fax: 212.210.0799 Friars not laughing about this raid Cybersecurity mandated Entire contents ©copyright 2017 U.S. Postal Service investigators raided Gov. Andrew Cuomo said new regula- Crain Communications Inc. All rights the Friars Club as part of an embezzle- tions will take effect March 1 requiring reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license ment probe. Billionaire John Catsima- banks and insurers to create and main- agreement. tidis said some of his fellow members tain cybersecurity programs intended CRAIN COMMUNICATIONS INC. suspected someone was embezzling to prevent illegal access to sensitive BOARD OF DIRECTORS chairman Keith E. Crain funds and shared that suspicion with personal information. president Rance Crain the U.S. attorney’s office in the fall. treasurer Mary Kay Crain, Cindi Crain Bonus onus senior executive vp, William Morrow Port agency finally showing the money executive vp, director of strategic Goldman Sachs didn’t pay 2016 bonuses operations Chris Crain The Port Authority of New York and to about 100 of their lowest-performing executive vp, director of corporate New Jersey approved a $32.2 billion bankers. The number of employees operations K.C. Crain Oakley welcome back in the paint senior vp, group publisher David Klein 10-year capital plan that includes denied a bonus is higher than a year vp/production, manufacturing David Kamis Madison Square Garden lifted its $3.5 billion in funding for a new West ago. Management rewarded top per- chief financial officer Bob Recchia Side bus terminal and $4.8 billion for formers and took bonuses away from days-old ban on former Knicks chief information officer Anthony DiPonio JFK, LaGuardia and Newark airports. less productive workers. star Charles Oakley. But Oakley founder G.D. Crain Jr. [1885-1973] responded by saying he will chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] Kushners might walk from Marlins deal In Kind donation not return until Dolan publicly If Jeffrey Loria becomes President Daniel Lubetzky, founder of snack bar apologizes to him and the fans.

BUCK ENNIS, GETTY IMAGES Donald Trump’s ambassador to France, maker Kind, pledged $25 million to

4 | CRAIN’S NEW YORK BUSINESS | February 20, 2017

P004_CN_20170220.indd 4 2/17/17 7:46 PM AGENDA HEALTH CARE

Albany considers bill to pay Immigrant detainees get live organ-donors’ costs inadequate health care

Supporters want to remove economic barriers that they say keep many AMERICAN IMMIGRANTS AWAITING DEPORTATION hearings often are potential donors from coming forward BY ROBIN D. SCHATZ denied medical care while they are detained for months or even years at jails in the New York City area, according to a report released last week by New York Lawyers for the Public Interest. new bill could make New York The legal advocacy group issued its findings a week after U.S. Immigra- the first state in the country tion and Customs Enforcement officers arrested 41 people in the city and to directly compensate living less than a month after President Donald Trump issued an executive order organ donors—who typically expanding who can be targeted by such raids to include people who have Adonate a kidney or a portion of their liver been suspected of or charged with criminal activity but not convicted. to a transplant patient—for lost wages, NYLPI interviewed 47 immigrants with serious health conditions who child care and other expenses. had been detained for six months to three years. The Living Donor Support Act, intro- One detainee at the Hudson County Correctional Facility in Kearny, duced by Democratic Assemblyman N.J., referred to as Mr. Richard Gottfried of Manhattan and Ahmed in the report to Republican Sen. Kemp Hannon of Long protect his identity, suffered One man with a heart Island, chair of the Senate Health Commit- from a heart condition and condition was not properly tee, has broad support from lawmakers. did not receive appropri- It already unanimously passed Hannon’s ate pacemaker monitoring monitored while detained— committee, and it has 18 Senate co-spon- MORRISON of Waitlist Zero while he was detained. sors and 27 Assembly co-sponsors. He was in such bad which led to emergency In addition to helping donors with health at one of his immi- surgery to fix his pacemaker expenses, the bill seeks to increase educa- would receive on average about $4,400 gration hearings that the tion about the option of living transplants each, according to Waitlist Zero. judge called paramedics for patients, who are disproportionately If the bill becomes law, it could increase to take him to the hospital, where he had emergency surgery to replace poor and members of minority groups. living organ donations in the state by 20%, the pacemaker’s battery, according to the report. “When I was detained, I “Our goal is to make transplants easy saving 1,000 lives and $115 million in tax- thought that at some point I would be dead,” Ahmed told NYLPI. to ask for and easy to give,” said Josh Mor- payer expenses during the next decade, ICE did not respond to Crain’s requests for comment. rison, executive director and co-founder according to proponents’ estimates. The legal group reported a lack of discharge planning, “particularly for of Waitlist Zero, a Brooklyn-based non- The proposed measure follows the pas- people who have mental illnesses,” said Laura Redman, director of the profit that championed the bill. Morrison sage of various laws last year to increase organization’s Health Justice program. donated one of his own kidneys as a good organ donations, including one that took “Detention is supposed to be nonpunitive, just a place where people Samaritan five years ago at the age of 26. effect last week allowing 16- and 17-year- are held for immigration and removal proceedings,” Redman said. “People olds to register as organ donors. with health needs should not be there.” Acute organ shortage New York is one of 20 states that cur- NYLPI in July filed a lawsuit in the Southern District of New York on Many state lawmakers and health rently offer a tax incentive for expenses behalf of two green card holders with mental health diagnoses who were care groups are rallying behind the cause related to living donations. A 2014 study held at the Orange County Correctional Facility in Goshen, N.Y. The suit because of some dire statistics. New showed the New York tax break increased alleges that the plaintiffs were released without their regular medication York ranks 50th in the United States for kidney donations to nonrelatives by 52%. and were not given access to doctors, in violation of the county’s constitu- organ-donation registration, according But there are limits to the value of a tional obligation. — CAROLINE LEWIS to LiveOn NY, the metropolitan region’s tax deduction, Morrison said. Many peo- federally designated organ-procurement ple don’t have the cash flow to cover their organization. A New Yorker dies about costs, and their total tax liability to the state every 18 hours due to the lack of a trans- likely would not equal the costs incurred plant organ, according to the United Net- in becoming an organ donor, he said. work for Organ Sharing. Paying donors for their expenses would The proposed legislation would cost the broaden the pool and allow more lower- state about $3 million per year, and donors income New Yorkers to participate. ■ New rules to help ACA insurers

THE TRUMP ADMINISTRATION last week CareConnect, the insurance arm of North- proposed major changes to the Affordable well Health. However, he added, “I don’t Care Act aimed at keeping more insurers think it dramatically changes the risk pro- from heading for the exits. file of the members enrolling.” The Centers for Medicare and Medic- New York has benefited from a fairly aid Services would shorten the next open- stable marketplace: Insurers have not fled enrollment period to six weeks, from as they have in other states. New York City three months. All plans would start Jan. 1, residents had nine plans to choose from allowing insurers to collect premiums for during the most recent enrollment period, 12 months, and insurers could secure any which ended Jan. 31. unpaid premiums before enrolling a mem- But consumer advocates such as Elis- ber in coverage for the following year. abeth Ryden Benjamin, vice president of The changes would limit applications health initiatives at the Community Ser- outside the enrollment period by requiring vice Society of New York, said they worry consumers to provide documentation of a that the proposed rule change to let insur- life-changing event. Insurers have said that ers offer plans with fewer benefits could consumers have been gaming the system be disastrous for New Yorkers because it by waiting until they get sick to enroll. would increase their out-of-pocket costs. “I think it’s a step in the right direc- The public comment period on the rule

COURTESY OF WAITLIST ZERO tion,” said Alan Murray, chief executive of ends March 7. — JONATHAN LAMANTIA

February 20, 2017 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20170220.indd 5 2/17/2017 1:39:44 PM AGENDA WHO OWNS THE BLOCK REAL ESTATE RENDERING OF 92-29 168TH ST.

City tries again in Jamaica Mixed-use project at NYPD garage could jump-start growth

BY TOM ACITELLI

he city in late January selected developer Omni New York to redevelop an underutilized New York Police De- partment garage occupying roughly 168-05A JAMAICA AVE. 168-09 JAMAICA AVE. Thalf a block along 168th Street in Jamaica, Queens. Investor Eli Chetrit bought this The Porta Bella Group, a Manhattan-based The winning proposal helps revive a yearslong retailer, bought the 2,920-square-foot space 2-story, 24,500-square-foot com- effort to make Jamaica—which is served by four currently hosting a RadioShack and a Sprint mercial building for $6.2 million in service counter for $2.1 million in 2004. 2007. Chetrit owns and develops subway lines, a major Long Island Rail Road junc- office properties with his brother tion and the AirTrain to John F. Kennedy Interna- Isaac. (The pair are the cousins tional Airport—more than just a way station. of Joseph Chetrit, one of the city’s biggest private developers.) There Omni plans to build a are no development plans filed 450,000-square-foot mixed- with the city at this time. 88-45 163RD ST. use development that will include more than 350 residential Transitional Services for New York, a nonprofit, broke ground in January on units, all of them designated as a 7-story, 44-unit residential build- affordable, as well as ground- ing at this site, which it acquired for floor retail and commercial $1.25 million in 2014. (A 2-story house there had been demolished in space, underground parking for 2013.) All the units will be studios, the NYPD and what the city’s and 33 will be set aside for patients Economic Development Corp. in the nonprofit’s mental health program. The remaining 11 will be leased describes as “a substantial com- at below-market rates. Construction is munity facility.” expected to wrap in early 2018. The project is part of the de Blasio administration’s nearly two-year-old economic-development initiative called the Jamaica Now Action Plan, which aims to foster job growth and retail development in the Queens neighborhood. The $153 million effort in- 168-42 JAMAICA AVE. cludes streetscape and transit improvements along Bobby Cayre, a private in- with new development, directional maps for pe- vestor who heads Aurora destrians and select bus service from Jamaica to Capital Associates, and Flushing’s central business district. Alex Adjmi, who runs A&H Acquisitions, got this Jamaica Now marks the city’s second recent at- 110,068-square-foot retail tempt to revitalize the area. In 2007 the Bloomberg property for $2 million in administration rezoned 368 blocks of central Jamai- 2008. It currently houses a Planet Fitness and a Family ca to allow for more commercial development—and Dollar. Cayre’s and Adjmi’s put out a request for proposals for the same garage respective firms often part- on 168th Street. 147-22 ARCHER AVE. ner on retail deals. But then the Great Recession struck, financing BRP Cos., a Manhattan-based dried up, the city shelved the RFP for the garage development firm founded by Geoff Flournoy and Mere- and, by the city’s own analysis, significant job dith Marshall, acquired this 92-29 168TH ST. growth eluded the area. 50,000-square-foot site for Omni New York, started by Eugene 166-36 JAMAICA AVE. Now the timing seems ripe. Another mixed- $19.5 million in 2015. BRP is Schneur and former Major League developing a 730,000-square- use development is under construction less than a Developer Moris Yero-Shalmi Baseball player Mo Vaughn, was se- foot, 669-unit apartment com- acquired this 6-story, 33,000- lected to develop this 110,125-square- mile away. The Crossing at Jamaica Station, being plex at the site, which is directly square-foot commercial prop- foot, city-owned garage. The Manhat- built by BRP Cos. on a 50,000-square-foot site at across from Jamaica Terminal. erty for $3 million in 2014. tan-based development firm will build The developer plans to include the corner of Archer Avenue and Sutphin Bou- Yero-Shalmi, perhaps best 350 affordable apartments, 65,000 a range of price points in the known for developing bou- square feet of retail space and 50,000 levard, will include a Hilton Garden Inn and 580 project, which is expected to be tique hotel BKLYN House in square feet of community space. Omni residential units. ■ ready for occupancy in 2019. Bushwick, said he is waiting expects to close the deal for the garage to secure a retail and/or com- before the end of 2017 and complete mercial anchor tenant before the project by 2020. building out the property. GOOGLE MAPS, NEW YORK CITY ECONOMIC DEVELOPMENT CORP.

6 | CRAIN’S NEW YORK BUSINESS | February 20, 2017

P006_CN_20170220.indd 6 2/17/2017 1:40:58 PM AGENDA REAL ESTATE

Is a solution to the housing crisis right below our feet? Study calls for legalizing more basement apartments. But challenges abound BY JOE ANUTA

here are up to 210,000 base- can be found in Manhattan and parts that could be changed ments and cellars across the of Brooklyn and the Bronx—neighbor- without city or state ap- city that could be convert- hoods where homeowners would not proval. ed into legal apartments— be legally required to provide an addi- If a pilot program Tenough to move the needle on the city’s tional parking space for each housing proves successful, the re- housing crisis without pouring a single unit added—these areas are not ush port argues, then the city new building foundation. with suitable basements. could take bigger steps to GROUND SWELL: Pushes But the legalization process is change zoning and hous- to legalize more base- fraught with political and technical Driving in uence ing laws and unlock more ment apartments are pitfalls, which is why a study released Far more potential exists in Staten apartments that would gaining momentum. last week suggests that the de Blasio Island, southeast Brooklyn, Queens not be legal today. Cel- administration should start with a pilot and the eastern portion of the Bronx. lars, for example, which program to capture the lowest-hanging ese are also areas with high rates are typically sunk deep- fruit: the roughly 38,000 basements in of foreclosure, suggesting that home- er into the ground than the housing crunch. single-family homes that could be con- owners there would bene t from sup- basements, cannot be occupied under In many areas, Queens in particular, verted without any major changes to plemental rental income. e only current law. opposition to the idea is erce, which city or state law. catch? By law, adding an apartment to a e potential is huge. It is unclear could be one reason why Mayor Bill “ ere is a convincing scale to this,” single-family home in many of these how many of the city’s 210,000 be- de Blasio has been largely mum on the said Sarah Watson, deputy director of areas would require the creation of a low-grade units could be cost-e ective- subject despite including it in his 2014 the Citizens Housing and Planning parking space, posing signi cant eco- ly converted, but bringing even a frac- Housing New York plan. Council, which authored the report. nomic and logistical challenges. tion of them up to code would provide But de Blasio’s o ce is working with “We’ve set out the major arguments for e study suggests nding a com- a serious amount of housing that would Councilman Rafael Espinal on a sepa- conversions and our recommendations munity that both supports the concept likely rent for less than the market rate. rate pilot project in East New York. A about how a pilot program could be and has the inventory of basements, Of course, many of these units are ille- task force including the departments structured.” and calls on the city to provide home- gally occupied today. Bringing them up of Buildings and City Planning and Trouble is, an interactive map pro- owners with nancial incentives, a list to code would make them safer for res- the Fire Department, which is wary of vided along with the study shows that of knowledgeable contractors, expedit- idents and emergency responders, and basement units for safety reasons, has there is no ideal place to launch the pilot ed permits and waivers or modi ca- give the city a better idea of a neighbor- been meeting regularly to hash out the project. While the simplest conversions tions for certain building regulations hood’s population, but would not ease rst steps. ■

You are here: Council requires landlords to display addresses Law rst proposed 13 years ago nally gets approval

BELIEVE IT OR NOT, New York City land- approved by the council Wednesday before lords have never been required to post heading to the desk of Mayor Bill de Blasio. street addresses near each entrance to their Previous regulations required building Only if you want buildings. But a law passed last week nally owners to post an address only at the front changes that, a mere 13 years a er the mea- entrance—which has o en complicated ef- to be better... sure rst came before the City Council. forts by rst responders. “Given the nature Manhattan Borough President Gale of many New York City buildings,” the Fire Brewer, then a council Department’s John Sar- member, penned the rocco said last fall in testi- legislation in 2004 to “Given the nature mony supporting the bill, help ensure that re ght- of New York City “sometimes the ‘front’ … ers and police were not may mean di erent things delayed in responding buildings, the ‘front’ to di erent people.” to emergencies at un- may mean different e new law requires Accounting, Auditing, Tax, Litigation marked buildings—of an address to be posted Support, Deal Support, Management which there are many. things to different at any doorway used by A 2010 study found people” pedestrians, and increas- & Technology Consulting that nearly half of all es the initial ne for a buildings along several missing address to $250 Manhattan commercial corridors did not from $25. If a required address is not post- display a building number that was clearly ed within 30 days, a $50 ne will accrue for visible from the street. each day a erward. But just because the law has nally been In the know passed doesn’t mean it’s going to be en- “For years, New York City’s streets have forced anytime soon. When it was rst pro- been like something out of a Harry Potter posed, borough presidents had been tasked Jericho, NY I New York, NY I Park Ridge, NJ book, with storefronts and whole build- with enforcing the law through the Bureau Ronkonkoma, NY I White Plains, NY ings that are only easy to nd if you already of Encroachments and Incumbrances. at know where they are,” Brewer said in a department has since been eliminated. www.grassicpas.com

FLICKR/GARRETT ZIEGLER statement announcing the bill, which was —J.A.

FEBRUARY 20, 2017 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20170220.indd 7 2/17/17 7:46 PM AGENDA ASKED & ANSWERED TECHNOLOGY INTERVIEW BY MATTHEW FLAMM

MARTA MARTINEZ INTERSECTION

inkNYC began rolling out across the city about a year ago, replacing old-fashioned pay phones with kiosks that provide free phone calls and high- We will bring speed Wi-Fi and carry ads on digital screens. More Lthan 500 are up, with thousands more to come. The de Blasio “traf c and transit administration is already calling the public-private partnership information or the a success, but LinkNYC still has to generate $500 million in ad weather but also revenue on behalf of the city during the next 12 years. That’s more emotional where Marta Martinez comes in. The veteran digital-advertising things—allowing executive was recently named chief revenue of cer of Intersec- tion, the company that manages LinkNYC’s ad program. the kids of New York to call Santa The old phone booth ads made the city money. How will LinkNYC do this? Consumers want value when it comes to marketing. We will be able to bring traf c and transit information or the weather but also more emotional things [such as] allowing the kids of New York to call Santa, which we tested this holiday season. Over time you will see marketers enable and sponsor these programs.

How are you working with retailers? Retailers have found that the longtime value of a customer triples DOSSIER if they interact through both the website and a physical store. We can map data showing who those consumers will be and then WHO SHE IS Chief revenue drive them through our advertising messages into the stores. of cer, Intersection So far the ads look the same as the ones on the old phone booths. AGE 47 Last year we were laying the foundation. This year we are guring BORN Lleida, Spain out what happens on the screens. You will see a lot of experimen- GREW UP Barcelona, Spain tation over the next six months. We’ll be programming content RESIDES White Plains like you program for television. It will be different in the morning EDUCATION M.B.A., NYU Stern than at night. We want both the advertising and the content to School of Business; M.S., ESADE be useful. Another campaign we’re doing with an advertiser goes: in Barcelona “There’s a delay on the N and the R. Come have a beer with us.” COMING TO AMERICA Martinez was a digital consultant Parents had complained about people watching porn on the LinkNYC tablet in Barcelona for brands such as screens. Are you worried about any other unintended consequences? Spanish clothing chain Zara when We are doing something that has never been done before: We gave she realized “technology was high-speed connectivity to people who had never had it. It was not going to grow faster in the U.S. an issue once we changed the functionality by permanently dis- than in my beautiful Spain.” abling the kiosks’ [web] browser. I wasn’t here, but I know it wasn’t To smooth her way here, she fun. I hope we continue to learn. Are there other uses that will enrolled in the Entertainment, Media & Technology program surprise us? I hope they surprise us in a very positive way. at NYU Stern, which eventually led to digital marketing and Is the kiosk program expanding to other cities? advertising positions at Havas, We just announced our international expansion, to London. But MediaMath and AOL. New York City is the biggest market, and this is our R&D hub. We CONSUMER BEHAVIOR The kiosks are inventing here for the rest of the world. are used mostly for Wi-Fi. On Jan. 1 at 12:05 a.m., a kiosk in Times Square set You’ve held senior positions at AOL. Why come to a startup? a record for Wi-Fi users logged in to a Clearly there’s a lot of innovation now around smart city technolo- single location. “You can imagine all the gy: connecting the physical reality to what we do digitally and using Snapchats, tweets and Instagram posts technology to humanize a city, turning it into a community. The that were shared from there!” opportunity to take the traditional billboard business and connect IF SHE BUILDS IT, THEY WILL it to our digital experiences—that is what brought me here. COME “A lot of advertising people grew up in physical or digital advertising. We’re How do you connect the physical with our digital experiences? going to build a bridge.”

We did a campaign with MillerCoors in partnership with [music BUCK ENNIS app] Shazam that enabled consumers to download the songs that each neighborhood was listening to that day.

What were people listening to? David Bowie passed away during the campaign. The entire city was listening to him! ■

8 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 20, 2017

P008_CN_20170220.indd 8 2/17/2017 1:42:23 PM AGENDA VIEWPOINTS

What the mayor should have said De Blasio’s State of the City speech missed the mark I’d be using my bully pulpit A NY1 HEADLINE per ● Crime is as low as it has been in a certainly predict high graduation rates fectly captured May long time. Last year the city recorded and college success as well. to make New Yorkers or Bill de Blasio’s 335 murders, only two more than the ● The building boom signals confidence feel better about their big annual address modern-record low from de Blasio’s in the future. Construction activity last last week. “Returning first year as mayor, 2014. Shootings year likely topped $40 billion for the city and to propose a few to 2013 Campaign fell below 1,000—the fewest since the first time ever, the New York Building realistic programs Theme Ahead of This NYPD began counting them Congress says, and should Year’s Election, May in 1993 (when there were continue at that pace for two GREG DAVID or Decries ‘Afford more than 5,200). Overall, more years. It’s not just that instituting universal prekindergarten, ability Crisis’ in State major crimes declined by building is fueling the econ expanding afterschool programs, help of the City Speech,” it said. about 4%. By comparison, omy (and making incon ing enact a $15 minimum wage, extend $40BCONSTRUCTION That is not the speech I would have 762 people were killed in venienced New Yorkers a ing living-wage requirements to any given, nor my take on the state of the Chicago, a city with about activity last year, touch sour); it is a clear sign firm with a city contract, requiring paid city. Here is what de Blasio could have a third of New York’s pop the most ever that developers and the peo sick leave and launching the most ambi emphasized. ulation—the Windy City’s ple who lend them money tious affordable-housing plan of any ● The economy is doing great. Read highest total in two decades. are confident about the city. mayor. I’d also be using my bully pulpit ers know there is much data to prove ● Public education is improving some. ● New Yorkers are, on the whole, satisfied. to make New Yorkers feel better about this point. Here are two figures—both The city’s graduation rate topped 70% The mayor’s speech seemed designed to their city and to propose a few realis of them records: The city has added for the first time. Although the stan appeal to dissatisfied voters, as if Don tic programs. almost 700,000 jobs since the end of dards have changed somewhat, there ald Trump voters were numerous here. Without a strong challenger, how the recession, including 300,000 in de is little doubt city schools are better In the most recent Quinnipiac poll, ever—and one has yet to step forward— Blasio’s first three years as mayor. And than they were. The mayor won’t want 55% of voters said the city’s quality of the mayor’s pessimistic rhetoric isn’t despite the stronger dollar, more than to talk about it, but the charter school life is good. A whopping 67% said they likely to affect his re-election chances. ■ 60 million tourists arrived last year, movement has now been around long want to continue living here. boosting the city’s second most impor enough that its students are entering If I were de Blasio, I would be talking GREG DAVID blogs regularly at tant industry (finance is first). higher grades, with test scores that about the things I have accomplished: CrainsNewYork.com.

Innovation economy can build middle class—if NY unleashes it Cuomo backs ride sharing upstate. How about home sharing downstate? BY JOSH MELTZER

ov. Andrew Cuomo’s budget he noted, existing law creates “unfair expense—their home—into an asset, State law should limit the activities proposal includes a new law duality” between upstate and downstate, Airbnb hosts in New York City are still of commercial actors such as illegal allowing ride-sharing com with New York City residents enjoying waiting for the 21st century. hotels and landlords who turn perma panies such as Uber and Lyft the benefits of on-demand transporta Currently a state law applying only nent housing into short-term rentals, Gto operate outside of New York City. It is a tion while the rest of the state waits for to New York City fails to distinguish not senior citizens on fixed incomes welcome step forward, one that promises the 21st century to arrive. between middle-class New Yorkers who rely on hosting to pay medical to provide new transportation options In the case of ride sharing, the gov who occasionally rent out their home bills, millennials trying to pay off stu for millions of New Yorkers by allowing ernor declared, “What’s good for down and bad actors who remove permanent dent debt and achieve the dream of car owners to turn an asset in their state is good for upstate.” For home housing from the market. Worse, a law homeownership, and families in the driveway into money in their pocket. sharing, the reverse is true: What’s good that went into effect last year threatens city’s low-income communities. As the governor said during his State for upstate is good for downstate. thousands of residents with historically Moreover, our comprehensive re of the State speech in Buffalo, “embracing Even though tens of thousands high fines for simply advertising their form plan would require Airbnb hosts the new innovation economy” is critical of people across the state are using home for short-term rentals. to register to aid enforcement efforts to building the middle class. However, home sharing to turn their greatest There’s a better way. We at Airbnb and ensure that lodging and sales taxes call it Sharing for a Stronger New York. are collected on short-term rentals. It is our vision of comprehensive reform That’s common sense, and it would that works for the Empire State. be big money for the state—nearly At the heart of the proposal is our $100 million in the first year alone. One Host, One Home policy, which The vast majority of New Yorkers limits New York City hosts to a single, recognize the difference between a entire home listing. Since November middle-class family sharing their home 2015, we have voluntarily removed and a landlord who evicts tenants to more than 4,000 listings that violate churn apartments as full-time short- this policy. Today, 96% of Airbnb hosts term rentals. It is long past time for New in the city share a single home. York state law to recognize this funda As part of a recent settlement agree mental distinction by permitting the ment with New York City, we agreed to vast majority of hosts to rent their own cooperate on ways to address the city’s homes while cracking down on bad permanent housing shortage, including actors who threaten our communities. ■ through compliance with One Host, One Home. That’s an important step, Josh Meltzer is Airbnb’s chief of public

REUTERS but we still need Albany to act. policy in New York.

February 20, 2017 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20170220.indd 9 2/17/2017 1:36:08 PM AGENDA THE LIST THE MOST ACTIVE VENTURE CAPITAL FIRMS Ranked by the number of investments in New York metro startups in 2016

TRENDS

LESS INVESTMENTS DOLLAR DROP-OFF PORTION OF In the past year and nine months, the number of venture capital Meanwhile, the total investment amount plummeted by more % 2016 U.S. invest- investments in New York metro area firms has tumbled by 32.5%. than $1 billion from Q1 to Q2 of 2016 before rising back 37.6 ments 200by Crain’s upward later on. top 21 that were NYC startups 200 $3 PORTION OF the % top 21’s150 overall $2.5 10.1 portfolio made up 150 of 2016 NYC startup investments $1.96 $2 129 100 NUMBER OF firms for whomQ2 ’1 5 Q4 ’15Q2 ’16Q4 ’16 100 $1.5 GIF-sharing site Giphy was one Q2 ’15 Q4 ’15 Q2 ’16 Q4 ’16 Q2 ’15 Q4 ’15 Q2 ’16 Q4 ’16 5 of the largest investments SOURCE: PwC/CB Insights MoneyTree Explorer SOURCE: Crain’s research

10 | CRAIN’S NEW YORK BUSINESS | February 20, 2017 P010_P011_CN_20170220.indd 10 2/17/2017 1:37:47 PM

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February 20, 2017 | CRAIN’S NEW YORK BUSINESS | 11

P010_P011_CN_20170220.indd 11 2/17/2017 1:38:18 PM RETAIL | POCKETBOOK POLITICS

STAYING ABOVE the political fray is no longer business as usual.

RETAIL POLITICS

Macy’s is facing many challenges, but its commitment to being “the store for all people” may be chief among them BY MATTHEW FLAMM

ara, a Manhattan psychotherapist, has been struggling. Macy’s plans to lay off 10,000 work- merchandise in 2015, after the then-nominee made shopped at Macy’s for most of her life. But ers and shut 65 of its 729 stores this year as part of derogatory comments about Mexicans. Now liberals her trips to Herald Square ended in Octo- a plan to close 100 of them. With consumers so di- are equally outraged that the chain has yet to cut ties ber with the launch of #GrabYourWallet, vided over Trump, it seems that appealing to both with merchandise bearing the name of his daughter. an online campaign urging consumers red- and blue-state shoppers is no longer a winning “The politics of retail and the politics of brand- Sto boycott companies that do business with Pres- formula. ing have gotten a lot more complicated in the last ident Donald Trump or members of his family. But giving up its nonpartisan identity may not month,” said Greg Portell, lead partner in the re- “I don’t see any difference between Ivanka and be so easy for Macy’s. While Nordstrom, its biggest tail practice of consulting firm A.T. Kearney. “You Donald,” said Sara, who asked that have a president who is a brand and her real name not be used to avoid views himself as such. Anything that having her political views intrude “AS POLITICS BECOME MORE impacts the brand will trigger a re- on her practice. “She is part of the s p on s e .” problem.” POLARIZING, PEOPLE MAY BE MORE Headquartered in New York and Not all of the store’s shoppers feel WILLING TO ENDURE INCONVENIENCES Cincinnati, the retail giant has been that way. “Macy’s, don’t pick sides!” losing customers to Amazon and to one woman wrote recently on the re- TO MAKE A POINT” smaller, more specialized chains, like tailer’s Facebook page. “Be the store H&M and T.J.Maxx. Amid the over- for ALL people!” all slowdown in apparel sales, Macy’s The hypercompetitive retail in- is reportedly considering selling it- dustry has suddenly become hyperpartisan, as shop- rival, announced earlier this month that it would self to Canadian retailer Hudson’s Bay. pers vote with their wallets. That leaves Macy’s in a stop carrying Ivanka Trump clothing and accesso- Now it finds itself in the crosshairs of boycotters difficult place. Offering a little something for every- ries, Macy’s took no action. And that left neither side on both sides of the Trump divide, highlighting one, the company has long been the quintessential happy. Conservatives continue to deride the retail- the challenges of its longstanding strategy to be the

BUCK ENNIS midpriced department store. But the business has er for its decision to dump Donald Trump–brand brand for all Americans. Not only does Macy’s have

12 | CRAIN’S NEW YORK BUSINESS | February 20, 2017

P012_P013_CN_20170220.indd 12 2/17/2017 5:16:53 PM a large number of stores, but it also has them in 45 states plus the District of Columbia, with as many in Texas as in New York. “They’re in a very tough position and a lot hard- er a position than Nordstrom,” said Matt Sargent, a senior vice president at Frank N. Magid Associates. Nordstrom has 123 regular stores plus 215 Nord- strom Rack outlets, and most of them are in pros- perous enclaves in the heartland and metropolitan areas on the coasts. The more upscale retailer’s cli- entele doesn’t expect the company to be all things to all people. PARTISAN politics is “Macy’s is speaking to a very broad populace, playing a bigger role which is very, very polarized,” Sargent said. “Either than ever in retail. direction they go regarding Ivanka is likely to land them in trouble.” Macy’s also may not want to spark a repeat of the Twitter-lashing that it suffered when it dropped Trump’s products 18 months ago, prompting the then-candidate’s #BoycottMacys campaign. As president, Trump denounced Nordstrom in an angry tweet that possibly drove a brief dip in the BUYING AT MACY’S BUT AVOIDING IVANKA company’s stock price. But the Seattle-based retailer took care to insist that the decision was not person- BOYCOTTS TEND TO MAKE a lot of noise, and the #GrabYourWallet campaign, which targets al—for the company, at least—regardless of how its stores that sell brands associated with President Donald Trump or his family, might be noisier customers may have felt about it. According to Slice than most. Its website gets as many as 30,000 visits an hour, according to co-founder Shannon Intelligence, which tracks digital purchasing trends, Coulter, and the campaign’s “reach” on Twitter—the number of times users have interacted with the sales of Ivanka’s goods at nordstrom.com plunged hashtag—has topped 750 million since October, according to Retweet Rank. 63% in the fourth quarter of 2016, one of several But on an afternoon last week at Macy’s Herald Square, a random sampling of half a dozen data points that backed up the company’s claim that women found only one who knew there was a boycott of the retailer. All of them, however, said they the move was driven purely by poor sales. wouldn’t buy Ivanka Trump products. Morgan, a Manhattan resident, does not support President Trump. But shopping in the women’s One size doesn’t fit all clothing department on her lunch hour, she said Macy’s proximity to her workplace trumped her pol- The data for Macy’s paint a more complex pic- STAYING ABOVE the political itics. “I’d prefer to shop at Nordstrom,” she said, referring to the retail chain that recently announced fray is no longer business ture. While sales of Ivanka’s brand grew 30% on the it would no longer carry the Ivanka Trump brand. “But there isn’t one near my office.” Like the other as usual. retailer’s website in the same quarter, the growth was women interviewed, Morgan preferred to give only her first name. “I support boycotting Ivanka considerably slower than earlier in the year. If the Trump,” she added. company were to decide that its continued associa- Others also said they wouldn’t buy Ivanka’s brand, but they saw no need to boycott Macy’s. tion with the Trump name isn’t worth the headaches, “It’s a department store,” said Charlene, who had traveled from Connecticut for a day of shop- it would be hard “for Macy’s to claim that dropping ping. “If people want to buy her clothing, it’s their choice.” She likes the Ivanka brand’s styles but not the line is a business decision,” Sargent said. Donald Trump. “I wouldn’t choose her brand now, but I would have before,” Charlene said. Macy’s did not respond to requests for comment, Lisa, a furniture designer from Park Slope, dropped into Macy’s just to pick up some Nespresso but analysts say that assessing the cost/benefit of coffee pods and was surprised to learn that the entire store had been targeted for a boycott, not just carrying the Trump family’s brands is not the only Trump-branded goods. But she agreed with the principle. “My little bit of money has power,” she said. challenge. “It’s the least of their problems on a long “I’m just going to buy the Nespresso pods and leave.” list of problems that they have to deal with,” said Richard Jaffe, a research analyst at Stifel, which has given Macy’s stock a “hold” rating. their venture is nonpartisan. “This isn’t a Democrat- have been removed from the boycott list—because In a statement, the Ivanka brand insisted that re- ic versus Republican thing,” said Shannon Coulter, they’ve stopped carrying Trump-brand products— ports of its demise have been greatly exaggerated: the San Francisco–based marketing executive who including 11 within the past three weeks. “Our brand experienced a double-digit growth in co-founded the campaign. “This is a human decency Most analysts, though, tend to dismiss the pow- revenue last year. We’ve expanded our categories, thing. It’s about the divisiveness and disrespectful- er of boycotts, arguing that the majority of shoppers distribution and offerings, with plans to continue ness of Donald Trump.” are far more concerned with convenience and price this growth in 2017, and we’re reaching more wom- than with social and political issues. But one often- en than ever before.” Brand identity cited study by professor Brayden King at North- That growth may have come mostly in the first Coulter and other critics argue that Ivanka—the western’s Kellogg School of Management found that half of last year, however, and may not indicate a person—hasn’t stood up for women when her father while a boycott may not affect a company’s bottom trend. In addition to double-digit sales declines in has insulted them. And by aligning herself with his line, it can hurt its stock price—provided the move- the fourth quarter on amazon.com presidency, she has made her compa- ment gets plenty of media coverage. Two weeks be- and zappos.com and at Nordstrom, ny fair game for a boycott. The #Grab fore Trump urged his supporters to boycott Macy’s, the brand’s combined online sales at YourWallet campaign focuses on re- the company’s stock approached $74 a share, a near its top five retailers slid 26% in Jan- FACTS tailers such as Macy’s because “these 10-year high. As those supporters like to point out, uary compared to the same period companies rely on women,” Coulter the company’s stock price today is around $32. a year ago, according to Slice data. said. “We’re here to put them on no- “As politics become more polarizing, people may Ivanka’s Manhattan-based brand tice and say they have to move toward be more willing to endure inconveniences to make a insists that its mission is to “inspire a more ethical, respectful and inclusive point,” said Eric Greenleaf, a professor of marketing and empower women” and disputes 58NUMBER of companies approach to inventory in order to keep at NYU’s Stern School of Business. “And with online the notion that it plays any kind of currently on the boycott us as customers.” shopping, consumers have more alternatives.” political role. “In recent days, we’ve list of #GrabYourWallet Coulter said she believes the But whatever impact boycotts may have, some seen our brand swept into the politi- anti-Trump faction has an advantage observers say the president may prove to be the ulti- cal fray, becoming collateral damage in pressuring retailers to take its side. mate undoing of his own brand. in others’ efforts to advance agendas The counties that Hillary Clinton won “Someone who has behaved in as polarizing unrelated to what we do, which is in November generated two-thirds of a fashion as anyone in modern history would be produce accessible, solution-orient- the nation’s economic activity in 2015, tagged with a large number of citizens who don’t 11NUMBER of previously listed products for our loyal custom- according to a Brookings Institution want any part of him,” said Mark Cohen, director ers,” the company said. ed companies that have study. Coulter also says the cam- of retail studies at Columbia Business School. “They The people who are behind dropped Trump products paign is gaining momentum. Since it don’t want to buy products with his name on them, #GrabYourWallet also insist that in the past three weeks launched in October, 18 companies and they don’t want to buy his daughter’s stuff.”n

February 20, 2017 | CRAIN’S NEW YORK BUSINESS | 13

P012_P013_CN_20170220.indd 13 2/17/2017 5:18:27 PM

P014_P015_CN_20170220.indd 14 SWEET REDEMPTION: of empties Cutler withhiscache RECYCLING BUCK ENNIS 14 |

CRAIN’S NEWYORKBUSINESS

CAN MAN CAN

One entrepreneur so collects many cans and bottles, he’s putting a dent city’s inthe BY AARON ELSTEIN DO

| recycling program

F ebruary 20,2017

C cans every year. every cans pany processes about 110million empty bottles and people’s garbage for aliving,” said Cutler, com whose - he keeps his shop open 24hours summer. inthe New Yorkers tend to consume more so cold drinks, Volume doubles during warmer the months, when time employees at his Mount Vernon warehouse. by about 35full- are sorted weekly sumed city inthe beverages con- Spring and other Poland Coke, of empty containers about 1million In winter the fee for each one. 3.5-cent handling state-mandated deposit plus a pay 5-cent the citythe and returning tothem distributors,the who from recyclable collecting cans and bottles around that generates almost $10million inannual revenue Cutler Galvanizeruns Group, a four-year-old business “My make of fun friends me, saying Igo through money one can—and bottle—at a time. a bottle—at can—and one money his made has entrepreneur 26-year-old the considering fitting seems which aPorsche Macan, drives Cutler onrad Less thanLess five years out of college, ANOTHER PART DISCOURAGES IT. ANDWE’RECAUGHTINTHE GOVERNMENT REDEEMING RECYCLABLES; “ONE PART OFTHE MIDDLE.” ENCOURAGES expert and founderexpert of consultingDeFeo firm Asso ly-to-collect rest for Department the of Sanitation.” able recyclables…and leaves worthless the and cost- scavenger collectivesthat systemically removes valu- has which Recycling, amultiyear agreement with the routed to aprivate company Sims Municipal called byplastic collected sanitation department crews are up and resell as them acommodity. Metal, and glass mostthe valuable items before city the can pick them mining municipalthe recycling program by seizing eyes he and collectors the supply who himare under his bustling business is no laughing matter. In their gathering his millions of bottles and cans. Some ciates, said Cutler operates inan “ethical gray zone.” A less harsh critic, Wayne DeFeo, an industry Cutler’s may pals mock him,but to city officials, The controversy rests on how Cutler goes about

ticated mob of ler’s a “sophis- outfits like Cut- labeled Recycling, tion, and Reuse of Waste Preven - city’sthe Bureau former of head Lange, Robert a lication in 2012, Brooklyn facility. recyclables at a city to process In pub atrade - - 2/17/2017 3:10:55 PM

BUCK ENNIS, ISTOCK Nickel backs ters got a big boost in 2009, when Albany adopted a 2016. Collecting more cans could close that gap, law called the Bigger Better Bottle bill. The statute because the market value of an aluminum can is 2 $10 MILLION was designed to improve recycling infrastructure by cents, while a plastic water bottle is worth one-third raising the fee consolidators like Cutler could charge of a cent, and used glass has very little value because CUTLER’S ANNUAL REVENUE FROM distributors who pick up recyclables from 2 cents it is expensive to handle and often comes contami- REDEEMING CANS AND BOTTLES per container to 3.5 cents. nated with garbage. Cans could become even more valuable as the Metal urgency price of aluminum recovers from a long slump. The come from large retail outlets, such as CVS stores. But that well-meaning rate increase had the per- commodity rose by 14% last year, the first increase Most, however, are sourced via a network of 100 haps unintentional consequence of hurting the city’s since 2012, and is forecast to climb by another 9% subcontractors who have relationships with apart- recycling efforts by making it more lucrative for re- this year, according to research firm CPM Group. ment supers and property managers and give Cut- demption centers to gather as many bottles and cans “There has been a correction of the oversupply prob- ler’s crews first dibs on recyclables before they’re as they possibly can, however they can. And while lem that weighed on prices,” said Mu Li, CPM’s di- hauled to the curb. (It’s illegal to rummage through redeemers like Cutler aren’t concerned about what rector of base and specialty metals research. recyclables once they’re curbside, but it’s impossible exactly they collect, because they get paid the same As the quest for cans intensifies, so do hostilities for Cutler to police that.) for either a bottle or a can, the city cares a lot about between Cutler and government officials. He said Bars and restaurants are less important sources, cans because their valuable aluminum helps cover his application to open a new processing center in as those establishments seldom generate more than the cost of picking up less lucrative plastic and glass, the Bronx has been met with silence by the state, a few hundred empties per day. The largest volume considered the bane of municipal recycling. while sanitation inspectors frequently fine his driv- comes from office buildings. “Aluminum is the lifeblood of any recycling pro- ers for improper collecting and have impounded his “A big tower will have thousands of people work- gram,” DeFeo said. trucks seven times. The rising minimum wage also ing in it and consuming two or three bottled bever- A report last year by the Independent Budget threatens to swallow his profits, so Cutler is lobbying ages every day,” said Cutler, adding that a dedicated Office found that the city captures only 28% of re- members of the state Legislature to raise the han- collector can bank up to $200 a day, which translates cyclable cans, about half the national average. The dling fee he can charge distributors. to 4,000 bottles or cans daily. shortfall in aluminum goes a long way toward ex- “Do we want to encourage recycling or not?” he Plus, Cutler said, his firm helps make the city plaining why the city’s metal, glass and plastic recy- asked. “We need to think about what kind of mes- cleaner by picking up recyclables that might other- cling program posted a $20 million deficit in fiscal sage is being sent.” ■ wise litter the streets. Such litter remains common even though the state has imposed a refundable nickel deposit on every bottle and can of soda or beer since 1982. (Plastic noncarbonated beverage REDEMPTION STORY bottles were added to the mix eight years ago.) But according to the state Department of Envi- ronmental Conservation, deposits went uncollected on 34% of returnables, or about 2 billion containers, RETAILERS, such as supermarkets or bodegas, last year. That return rate has held steady over time, buy beverages and pay the distributor a and Cutler said both the state and beverage distrib- state-mandated 5-cent deposit per container. utors have a vested interest in keeping it down. To understand why, it helps to know how New York’s recycling economy works. Going with the flow Retailers pay a 5-cent deposit on every beverage CONSUMERS buy the drinks and on top of the they buy from distributors such as Coca-Cola, Nestlé purchase price pay 5 cents per container. The and Manhattan Beer Distributors, then pass the cost consumer either returns the empties to redeem along to consumers. If a consumer—or a collec- the deposit or tosses them in a garbage can or tor—fails to redeem the bottle or can, the distribu- recycling bin, where they are picked up by city tor gets to keep one penny of the deposit and sends sanitation crews or by enterprising scavengers. the state 4 cents. Multiply those cents by billions of containers and you’re talking about real money. Un- redeemed deposits result in more than $100 million in revenue every year for the state, according to DEC data, for a total of $770 million since 2009. About SANITATION workers send bottles and cans to $20 million of that money annually goes to support Sims Municipal Recycling, which has a contract environmental protection programs, with the bal- to process recyclables and share the revenue ance flowing to the general fund. with the city. Scavengers take their wares to This complex ecosystem means that although someone like Conrad Cutler, who pays them the recycling keeps streets clean and helps the environ- 5-cent deposit per container. ment, when people don’t redeem their bottles and cans, there is a financial benefit for the state. “One part of the government encourages redeeming recyclables; another part discourages it,” Cutler CUTLER then calls a beverage distributor, such said. “And we’re caught in the middle.” as Coca-Cola, Nestlé or Manhattan Beer Distrib- A logistics major at Syracuse University, Cutler utors (left), to pick up its bottles or cans at his recognized the opportunity in recycling after ob- warehouse. By law distributors must pay Cutler serving how many beverages his fraternity brothers the 5 cents plus another 3.5 cents per item to were consuming. He launched Galvanize Group four help cover his overhead. years ago and said he has funded operations with his own money. (He also owns a laundry service.) His warehouse is constantly abuzz with trucks WHEN BOTTLES and cans aren’t redeemed, making drop-offs or pickups, as staffers furiously distributors get to keep 20% of the deposit and sort containers based on which distributor handles return the other 80% to the state. New York the brand. Some employees are deaf or hearing- makes about $100 million in revenue annually impaired, so they aren’t bothered by the din. from unredeemed bottles and cans. About $20 Cutler’s is one of about 30 area companies— million goes to environmental programs and the known as redemption centers—where scavengers rest to the general fund. unload the bottles and cans they’ve picked up off the

BUCK ENNIS, ISTOCK streets or from garbage cans. Those redemption cen-

February 20, 2017 | CRAIN’S NEW YORK BUSINESS | 15

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HIGHER EDUCATION FOR BUSINESS PROFESSIONALS WHAT’S YOUR Guide to Higher Education: PLAN FOR The Path to Career PROFESSIONAL Advancement SUCCESS?

ew York business professionals crave additional training more than ever, as the Nturbocharged job market has become more competitive and even cut-throat. Job-hopping is now the norm, and companies expect new hires to hit the ground without much guidance. While the region has never suff ered from a lack of higher-education options, it is seeing those options evolve as the demands of employers have shifted, creating an opening for innovative learning institutions.

As more and more people become interested in shifting into tech-minded careers, computer coding has become a prerequisite, and coding boot camps and their off -shoots have sprouted up around the city. Deepen Your Knowledge, Focus Your Expertise, Expand Your Network Established colleges and universities also are doing their best to cater to the demands of today’s mid-career Business and career opportunities in NYC and around the world are growing and changing. professionals —mainly flexibility, speed and aff ordability What’s your plan for professional success? The NYU School of Professional Studies offers Career Advancement Courses that take your career to the next level by deepening your knowledge, — by developing distance-learning options in the form focusing your expertise, and expanding your network. In as little as one semester, you can of online classes and degrees. Innovators are also increase your marketability by building in-demand skills that set you apart. Learn from working challenging the very notion of what an education is, by professionals who have their finger on the pulse of the trends and techniques that matter most. going beyond the walls of the classroom to develop new ways to learn through virtual reality, mobile learning, Take Charge of Your Career. and “snackable” education modules. There’s Still Time to Enroll for Spring. Regardless of the format, New York City educational choices remain peerless in their breadth and quality. Visit sps.nyu.edu/careeradvancement04 or call 212-998-7150 Indeed, what’s most remarkable about the options explored in the following articles is that they never compromise rigor for the sake of convenience. If anything, they raise the bar for how knowledge can be transferred for maximum impact. Accounting • Applied Health • Arts • Building Design • Cities • Construction • Design • Educational Test Preparation English • Entrepreneurship • Film • Finance • Global • Grantmaking • Hospitality/Restaurants • Humanities • Interpreting Languages • Law • Leadership • Management • Marketing • Philanthropy and Fundraising • Public Relations Publishing • Real Estate • Sports • Technology • Tourism • Translation • Writing

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Deepen Your Knowledge, Focus Your Expertise, Expand Your Network Business and career opportunities in NYC and around the world are growing and changing. What’s your plan for professional success? The NYU School of Professional Studies offers Career Advancement Courses that take your career to the next level by deepening your knowledge, focusing your expertise, and expanding your network. In as little as one semester, you can increase your marketability by building in-demand skills that set you apart. Learn from working professionals who have their finger on the pulse of the trends and techniques that matter most.

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HIGHER EDUCATION FOR BUSINESS PROFESSIONALS

Mercy has two other graduate business programs that incorporate distance learning as part of their curriculum, an M.S. in organizational leadership (MSOL) and an M.S. in human resource management (MSHRM). What these online options have in common is flexibility.

“For example, the M.B.A. students are looking for total immersion,” said Manganelli. So classes are available at nights and on weekends. And through the school’s Turbo program, students can place out of or earn up to seven course waivers for seven courses, as allowed by state regulations, enabling them to obtain an M.B.A. in one year.

More MSOL and MSHRM students attend exclusively online, while M.B.A. students are more Distance Learning Programs for likely to attend at least some courses on-campus, Every Budget said Manganelli. What’s most striking about Mercy’s approach to istance learning is hardly a new concept. with an M.B.A. in health care management, as distance learning is how it has incorporated the In the 1800s, correspondence courses well as a B.S. in Organizational Management with online learning experience into what it is already Dproliferated in England and the United States an M.S. in Human Resources. doing, to give its students more of what they’re in an effort to offer affordable education to those asking for, including increased schedule flexibility. who didn’t live near institutions of higher learning. Some students take classes solely online, while “We have come up with a creative and innovative Students would mail in exams – learning shorthand others choose to supplement their enrollment in way to deliver an M.B.A.,” Manganelli said. “I’m was a common course of study – and receive courses on campus with additional online classes. not telling them that they have to do it online or in instructors’ corrections, also by mail. Today’s The maximum online class size is 19 students, the person. We think our students are smart enough to online education options have expanded upon that same as campus-based classes. Poland cites the figure out what is right for them.” model. But the purpose remains the same: to offer flexibility of the college’s online curriculum as one an additional degree or skills to professionals in a of its main draws. Affordability is also a factor, with Boot Camps Join the Online Revolution flexible, budget-friendly manner. online graduate course tuition priced at $490 per As the number of quality tech boot camps continues credit, compared with general graduate program to increase in New York, some are seeing the St. Joseph’s College, which has campuses in tuition rates ranging from $732 to $1,001 per credit. advantages of expanding their reach into the online Brooklyn and Patchogue, Long Island, has made universe. Adam Enbar, CEO of the Flatiron School, that goal its mission by developing a variety of Poland said innovation is always a priority at and his co-founder, Avi Flombaum, launched their graduate programs available exclusively online. An St. Joseph’s, as reflected in the school’s continual Manhattan-based coding boot camp in 2012 for extension of its MBA program, which launched in attention to technology. Recent upgrades include many of the same reasons as their competitors. “We 2004, the distance learning courses offered by the transmitting remote live feeds of classes from wanted to teach people how to get marketable skills school are both innovative and affordable. one campus to the other, and switching from in three months,” he said. “At the time, there were not the Blackboard LMS (learning management a lot of boot camps out there.” Amy Poland, Ph.D., associate dean for online system) to Canvas, which can be used on mobile learning at St. Joseph’s, said the college’s distance devices. “We’re always looking toward the future,” Times have changed since 2012, and now boot learning program is different from many other said Poland. “We’re adding new programs all the camps seem to be everywhere (a survey by online offerings, because “it looks at the individual time and constantly looking at a way to augment Course Report reveals the total number of coding abilities of the students” at the time of enrollment. exisiting programs with technology.” boot camps in the U.S. and Canada grew from 67 Poland added that St. Joseph’s also “does an to 91 between 2015 and 2016 alone), and most assessment at the beginning of each class.” Online Learning as an Adjunct to cost around $15,000 for a three-month intensive Traditional Classes program (as does Flatiron). Last year, Flatiron Extending the Physical Campus When Raymond Manganelli, Ph.D., Chair of began offering online versions of its courses at In recent years, MOOCs (Massive Open Online Graduate Business at Mercy College, a private prices ranging from $150 to $1,500 per month. Courses) have dominated the public discourse institution with campuses in Manhattan, the Thanks to this distance-learning initiative, the regarding distance learning. Companies such Bronx and Dobbs Ferry, arrived in 2013, his school now claims students in 30 states and as Coursera and Udacity have made admirable mandate was to make the school’s business 11 countries. Enbar said Flatiron also runs a strides in providing online access to in-depth graduate programs “fast, inexpensive, and lot of scholarship programs for minorities and courses in a variety of subjects from the flexible,” he said. Shortly after, Mercy introduced veterans, among other groups. country’s leading universities. While some of its Turbo-start M.B.A., a one-year accelerated those courses are available for credit, they cater degree program that includes the option of “We’re maniacally focused on helping people find primarily to the self-starter. completing all or some of the coursework online. jobs,” said Enbar, who adds that Flatiron publishes “In this market, we thought a one-year graduate independently audited data about its job placement In contrast, New York area colleges such as St. program would be attractive,” said Manganelli. record. According to those records, the school’s Joseph’s are using their online programs to job placement numbers for online students aren’t address specific career pursuits and cater more The cost for the program, between $28,000 to that different from those of students who attended specifically to local students who may have full- $34,000, is the same for online and on-campus onsite classes. “There is a skill gap in most of time jobs. For example, St. Joseph’s offers dual- enrollment, as Manganelli points out. However, it America today,” Enbar said. “Technology companies degree online courses that combine pre-existing is still one of the lower private-school tuitions for are more willing than ever to look at people with programs such as a B.S. in health administration an M.B.A. in the country. nontraditional backgrounds.”

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HIGHER EDUCATION FOR BUSINESS PROFESSIONALS

company, was started in 2011 by two Columbia Making Learning More Accessible University students who believed coding could be taught exclusively online. CEO and co- ublic university” and “virtual reality” are program,” he added. “There’s not a very high bar founder Zach Sims said Codecademy’s goal two phrases not usually heard together. to join.” from the beginning was to provide immediately “P Yet CUNY’s Lehman College in the marketable tech skills to professionals primarily Bronx has found a great way to associate them Tuition for the non-degree program is $599 for through interactive content. Codecademy with the launch of an 11-month training program the general public and $499 for current CUNY allows individuals to sign up for free courses in at its new Virtual Reality Training Academy and students. It will meet nights and weekends, to which they learn through a series of automated Development Lab. The product of a partnership accommodate attendees who work or go to online exercises. It currently claims 25 million with EON Reality Inc., a Seattle-based virtual and school during the day, including some faculty. students around the world. For $20 per month, augmented reality firm, the non-credit program students get access to Codecademy Pro, which will train students and professionals for careers “We can engage some of our educators to offers feedback from live instructors. If students in the fields of virtual reality and augmented create tools for their classrooms,” Cruz said. He decide they want a more high-touch learning reality. Another goal of the school is to have envisions, for example, faculty members in the experience, they can sign up for Codecademy graduates of the program help develop virtual- school’s department of nursing creating virtual Ready, which pairs students with a mentor to reality-based learning tools that can be used by labs for students. learn how to “design, build and deploy websites” Lehman’s faculty and students. for $500 per month. Other area institutions are pushing the envelope Developing innovative ways to educate today’s even further by creating more mobile learning Sims is convinced that companies such as his workforce has always been a priority for higher- experiences tailored for the way people actually will be the norm in the future, for certain types education institutions in the New York area, live today. “Snackable” educational models such of training, since it’s “super-difficult to learn many of which act as feeder schools for cutting- as mobile learning, acknowledge that more and coding in a traditional educational environment.” edge industries. But the Bronx has lagged more people consume information primarily An added advantage of Codecademy’s business behind the rest of the city in creating jobs in through their smartphone, tablet and laptop model is that the company spends virtually the tech sector. For that reason, Lehman views devices. So why not advance your professional nothing on marketing and can pass that savings itself as a critical institution, said Lehman’s education in the same way? onto its students. “By lowering the barrier of president, José Luis Cruz. “The virtual reality entry,” said Sims, “we’re able to offer learners course is open to anyone who wants to learn the Codecademy, a Manhattan-based education more for much lower prices.”

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HIGHER EDUCATION FOR BUSINESS PROFESSIONALS

Aditya Narayan, CEO at TurnToTech, a Manhattan-based tech boot camp that focuses WEATHERHEAD EXECUTIVE MBA PROGRAM on teaching students how to create mobile apps, recalls the training process in his previous career as a software engineer. “We would hire somebody relatively inexperienced and train them over a few months,” he said. TurnToTech’s courses attempt to mimic that accelerated trajectory.

The school’s students attend classes for 8 to 10 hours a day for two or three months, but the focus is more professional than academic. “They have to constantly learn in a variety of ways,” said Narayan. “The need to find information online, they have to collaborate, Boot Camps Upgrade Professionals they need to network. There is no lecture. There’s a series of products that have to be finished.” for Today’s Economy TurnToTech also offers one-on-one programs 16 Visits. that help students through tricky coding tasks “the same way you would train a new person at hen Jake Schwartz was in his twenties, Careers aren’t what they used to be, and the rise of so- a company,” Narayan added. a few years after graduating from Yale called boot camps – affordable, short-term, intensive WUniversity with a bachelor’s degree in courses that appeal to mid-career professionals as TurnToTech’s programs, which average around 21 Months. American studies, he came to a stark realization: a means toward higher-paying jobs – is proof. The 25 students at any given time, also include career He had no marketable skills. So Schwartz, now idea of getting a job and sticking to it for a decade or counseling. “We have a few full-time people 38, CEO and co-founder of New York-based tech two is so 20th century. Conversely, employers have who reach out to companies in the area,” said boot camp pioneer General Assembly, did what become loath to invest in tech training for new hires Narayan. “There is a shortage of developers in generations of young college grads have done: he when there’s no guarantee that they’ll stick around mobile right now, so we have a good record of Leadership enrolled in graduate school, in his case, an MBA for more than a year or two. Better to hire employees placing people [in that area].” program at The Wharton School at the University who already have up-to-the-minute tech skills, and of Pennsylvania. are fluent in the programming language and software Better Than a Degree they need right at that moment. Forget about a framed degree for your office At Wharton, Schwartz had another revelation: a wall. Most of today’s tech boot camps don’t Redefined. lot of students attended such reputable, big-name David Yang, co-founder of Fullstack Academy, a even bother issuing a certificate for completing institutions to get an Ivy League credential or Manhattan coding boot camp that focuses on web their courses, primarily because their students degree, yet post-graduation, many flailed. development, recalls working for tech companies don’t ask for them. Boot camp grads are more as a software engineer and how difficult it was concerned about displaying their newly acquired In the old days, attending graduate programs to find new employees able to code from day skills to employers. “You don’t need a piece a at schools held in such high esteem nearly one. “We talked to CTOs and started forming paper,” said General Assembly’s Schwartz. “We guaranteed grads high-paying jobs. But in today’s our curriculum,” said Yang. “We started with web tried post-modern certificates for a while, but rapidly changing job world, employers are more development, because it’s the area that’s the most students didn’t care.” interested in what people know and how they can biggest right now and is growing the most.” Groundbreaking leadership concepts use that knowledge than from what school they Instead, General Assembly is developing an hold a degree. Fullstack fully embraces the boot camp model, online credential network which allows its for the business of a better world which typically involves an immersive, full-time students to share what they have learned and Fast forward to 2011, the year General Assembly classroom environment. Fullstack’s main course is created with employers. It also published a report began conducting intensive classes in computer 13 weeks, 6 days a week, for almost the entire day, last year on the outcomes of its graduates, which The Weatherhead Executive coding for business professionals in New York City. and costs around $15,000. Yang said the academy auditing firm KPMG reviewed and validated. MBA program is now offering a Schwartz and his co-founders discovered they has a rigorous admissions process: “We only let in According to the results of the report, 92% of could bridge the gap between traditional higher 5 to 10% of applicants.” Once admitted, students students who enrolled in a full-time program healthcare track in collaboration education and the realities of today’s economy by attend classroom lectures, hands-on practical graduated. And of the 76% of full-time grads with Cleveland Clinic. offering mid-career intensive learning experiences labs and seminars, as well as remote classes. who took advantage of General Assembly’s that give students tech skills that would When Fullstack started, the focus was on learning career-placement services, 99% got a job immediately translate into higher-paying jobs. the Ruby on Rails programming language; it has within 180 days. since switched to Full Stack JavaScript, currently a “What we could create was lower cost, but also preferred way to build websites. “We’re not an assembly-line track to nowhere,” LEARN MORE AND APPLY TODAY AT WEATHERHEAD.CASE.EDU/EMBA took less time,” said Schwartz, “and yet it was Schwartz said. “Our programs are always more relevant and with the actual skills that “Companies are not investing in training like evolving and have a high placement rate.” employers are looking for.” they used to,” said Yang. “So employers take this sector very seriously.” It’s also not surprising to these educational The Birth of the Tech Boot Camp entrepreneurs that the boot-camp phenomenon Judging from the recent surge in the number A Replica of On-the-Job Training has taken root in the Big Apple. “New York is of tech boot camps in New York, the concept is The idea behind most tech boot camps is to the best place to start a start-up right now, and proving to be a big hit. General Assembly, which simulate the way programmers actually learn on I used to work in Silicon Valley,” said Fullstack’s has raised over $100 million to date, currently the job, instead of trying to re-create a traditional Yang. “You have a lot of engineering talent. And conducts classes in 16 cities, including New academic environment. While some programs you get the tech-powered industries, like finance York, and has 20,000 students and 600 full-time do feature traditional classroom environments, and retail, as opposed to the tech industry. It’s a employees. others take a more interactive approach. great time to be in New York.”

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Notice of Qualification of Quogue In- Notice of Qualification of Maverick Lien Turnkey opportunity of former come, LLC. Authority filed with NY Fund IV LP. Authority filed with NY Dept. MITSUBISHI HITACHI POWER Dept. of State on 1/27/17. Office of State on 11/10/16. Office location: FOR location: NY County. LLC formed in NY County. LP formed in DE on SYSTEMS CANADA, LTD DE on 6/10/16. NY Sec. of State 9/15/16. NY Sec. of State designated designated agent of LLC upon whom agent of LP upon whom process SALE Saskatoon, SK, Canada process against it may be served against it may be served and shall mail and shall mail process to: 101 Cen- process to: c/o Maverick Real Estate tral Park West, Suite 1F, NY, NY Partners LLC, 315 Madison Ave., 3rd Heavy Precision Machining 10023, principal business address. Fl., NY, NY 10017, principal business & Metal Fabrication Facility DE address of LLC: 1209 Orange address. DE address of LP: 1209 Or- St., Wilmington, DE 19801. Cert. of ange St., Wilmington, DE 19801. in partnership with: Contact: John Sharpe at Form. filed with DE Sec. of State, Name/address of genl. ptr. available [email protected] or +1 616.420.1652 401 Federal St., Dover, DE 19901. from NY Sec. of State. Cert. of LP filed Purpose: all lawful purposes. with DE Sec. of State, 401 Federal St., IL License #444.000215 www.hilcoind.com/MHPS Dover, DE 19901. Purpose: all lawful Notice of Qualification of Thor ASB purposes. 155 Mercer LLC. Authority filed with POSITION AVAILABLE PUBLIC & LEGAL NY Dept. of State on 10/19/16. Of- NOTICE OF FORMATION of M5Invest NOTICES fice location: NY County. Princ. bus. LLC. Art. of Org. filed with NY Secy. of Sr. Project Administrator. Christie’s, Inc. addr.: 7501 Wisconsin Ave., Bethes- State (SSNY) on 12/22/16. Office loca- da, MD 20814. LLC formed in DE on tion: NY County. SSNY designated as NY, NY. Lead & manage IT enabled proj- Notice of Formation of Bridgeview 126 10/17/16. NY Sec. of State designat- agent of LLC upon whom process ects from deﬁnition to delivery; perform QA LLC. Arts of Org Filed with Secy. of ed agent of LLC upon whom process against it may be served. SSNY shall State of NY(SSNY) on 1/3/2017. Of- tasks & support/manage admin. of digital against it may be served and shall mail copy of process to c/o CT Corpora- fice Location: NY County. SSNY desig- publishing platform. Need 5 yrs. progres- mail process to: c/o CT Corporation tion System, 111 Eighth Avenue, NY, nated agent upon whom process may sive, post-grad exp. in consumer-facing System, 111 8th Ave., NY, NY 10011, NY 10011, regd. agent upon whom be served and shall mail copy of proc- regd. agent upon whom process may process may be served. Purpose: All or technology role. 2 yrs. exp.: managing ess against LLC to principal business be served. DE addr. of LLC: The Corpo- lawful purposes. global projects in matrix structure; leading address: 41 Elizabeth St., Ste. 505, ration Trust Co., 1209 Orange St., Wil- tech. software releases; QA w/test cases & NY, NY 10013 Purpose: any lawful act. mington, DE 19801. Cert. of Form. Notice of Qualification of Emergent IV, troubleshooting; system admin. & network filed with DE Sec. of State, 401 Feder- Notice of formation of US MARSHALL al St., Dover, DE 19901. Purpose: all LLC. Authority filed with NY Dept. of address mgmt. Exp. in applications LLC. Art. Of Org. filed w. Secy of State lawful purposes. State on 12/30/16. Office location: NY development & SDLC & exp. managing of NY (SSNY) on 12/30/2016. Office County. LLC formed in TX on projects w/ $1 mil+ budget. Exp. can be Loc: New York County. SSNY designat- Notice of Qualification of AIF IX MAN- 12/30/13. NY Sec. of State designated agent of LLC upon whom process concurrent. Need BS Comp. Science, ed as agent of LLC upon whom process AGEMENT, LLC Appl. for Auth. filed with against it may be served. SSNY shall against it may be served and shall mail Info. Sys., Bus. Administr., or other related Secy. of State of NY (SSNY) on mail copy of process to: US MARSHALL 01/19/17. Office location: NY County. process to: c/o CT Corporation System, ﬁeld. Foreign equiv. accepted. Apply at: LLC, 17 Stuyvesant Oval, New York, NY LLC formed in Delaware (DE) on 111 8th Ave., 13th Fl., NY, NY 10011, https://christies.csod.com/ats/careersi- 10009. Purpose: Any lawful activity. 12/13/16. SSNY designated as agent regd. agent upon whom process may be served. TX and principal business te/search.aspx?site=1&c=christies Search of LLC upon whom process against it Notice of Qualification of Dorilton Capital address: 100 Commercial Circle, Bldg. for Senior Project Administrator. may be served. SSNY shall mail proc- Management LLC. Authority filed with NY ess to the LLC, Attn: John J. Suydam, 9 B, Conroe, TX 77304. Cert. of Form. Dept. of State on 12/12/16. Office loca- W. 57th St., 43rd Fl., NY, NY 10019. filed with TX Sec. of State, 1019 tion: NY County. Princ. bus. addr.: 131 DE addr. of LLC: c/o Corporation Serv- Brazos, Austin, TX 78701. Purpose: all PUBLIC & LEGAL Varick St., Ste. 911, NY, NY 10013. LLC ice Co., 2711 Centerville Rd., Ste. lawful purposes. formed in DE on 12/7/16. NY Sec. of 400, Wilmington, DE 19808. Cert. of NOTICES State designated agent of LLC upon Form. filed with The Secy. of State of Notice of Formation of M. STAROVIC whom process against it may be served the State of DE, Dept. of State, Div. of PSYCHIATRY, MD, PLLC and shall mail process to: c/o CT Corpo- Notice of Qualification of MIRAVAL Corps., John G. Townsend Bldg., 401 Arts. of Org. filed with Secy. of State of ration System, 111 8th Ave., NY, NY GROUP, LLC Appl. for Auth. filed with Federal St., Ste. 4, Dover, DE 19901. NY (SSNY) on 10/14/16. Office loca- 10011, regd. agent upon whom process Secy. of State of NY (SSNY) on Purpose: Any lawful activity. tion: NY County. SSNY designated as may be served. DE addr. of LLC: c/o The 01/05/17. Office location: NY County. agent of PLLC upon whom process Corporation Trust Co., 1209 Orange St., LLC formed in Delaware (DE) on Notice of Qualification of Convene Park against it may be served. SSNY shall Wilmington, DE 19801. Cert. of Form. 06/01/15. Princ. office of LLC: Avenue Tower W5, LLC. Authority filed mail process to Corporation Service filed with DE Sec. of State, 401 Federal Miraval Group, 855 Third Ave., 9th Fl., with NY Dept. of State on 1/11/17. Of- Co., 80 State St., Albany, NY 12207- St., Dover, DE 19901. Purpose: all lawful NY, NY 10022. SSNY designated as fice location: NY County. Princ. bus. 2543. Purpose: Any lawful activity. agent of LLC upon whom process purposes. addr.: 366 Madison Ave., 7th Fl., NY, against it may be served. SSNY shall NY 10017. LLC formed in DE on mail process to c/o Corporation Serv- Notice of Qualification of Convene One 7/6/16. NY Sec. of State designated NOTICE OF FORMATION of Quantized ice Co. (CSC), 80 State St., Albany, World Trade, LLC. Authority filed with agent of LLC upon whom process Mind LLC. Arts of Org filed with Secy. of NY 12207-2543. DE addr. of LLC: c/o NY Dept. of State on 1/11/17. Office against it may be served and shall mail State of NY (SSNY) on 1/5/2017. Of- CSC, 2711 Centerville Rd., Ste. 400, location: NY County. Princ. bus. addr.: process to: c/o CT Corporation System, fice location: NY County. SSNY desig- Wilmington, DE 19808. Cert. of Form. 366 Madison Ave., 7th Fl., NY, NY 111 8th Ave., NY, NY 10011, regd. nated agent upon whom process may filed with Secy. of State, Div. of 10017. LLC formed in DE on agent upon whom process may be be served and shall mail copy of proc- Corps., John G. Townsend Bldg., 401 11/9/16. NY Sec. of State designat- served. DE addr. of LLC: 1209 Orange ess against LLC to principal business Federal St. - Ste. 4, Dover, DE 19901. ed agent of LLC upon whom process St., Wilmington, DE 19801. Cert. of address: 199 E 7th St., #1B, NY, NY Purpose: Health club management. against it may be served and shall Form. filed with DE Sec. of State, 401 10009. Purpose: any lawful act. mail process to: c/o CT Corporation Federal St., Dover, DE 19901. Pur- System, 111 8th Ave., NY, NY 10011, Notice of Formation of Warren Street pose: all lawful purposes. Notice of Formation of Mad Happy LLC. regd. agent upon whom process may Advisors, LLC. Arts. of Org. filed with Arts. of Org. filed with Secy. of State of be served. DE addr. of LLC: 1209 Or- Secy. of State of NY (SSNY) on NY (SSNY) on 1/24/17. Office loca- ange St., Wilmington, DE 19801. Cert. J-KAY ASSOCIATES LLC. Art. of Org. 1/23/17. Office location: NY County. tion: NY County. SSNY designated as of Form. filed with DE Sec. of State, filed with the SSNY on 12/14/16. SSNY designated as agent of LLC upon agent of LLC upon whom process 401 Federal St., Dover, DE 19901. Office:New York County. SSNY designat- whom process against it may be against it may be served. SSNY shall Purpose: all lawful purposes. ed as agent of the LLC upon whom served. SSNY shall mail process to: 38 process against it may be served. mail process to: The LLC, 8360 Warren St., Apt. 8B, NY, NY 10007. SSNY shall mail copy of process to the Melrose Ave., Ste. 105, Los Angeles, Notice of Formation of JULIA HAART Purpose: any lawful activity. LLC, c/o Morici & Morici, LLP, 600 CA 90069. Purpose: any lawful activity. HOLDINGS, LLC Arts. of Org. filed with Third Avenue, 15th Floor, New York, NY Secy. of State of NY (SSNY) on 10016. Purpose: Any lawful purpose. Notice of Formation of CGRAMSEY 12/22/16. Office location: NY County. Notice of Formation of Company name HOLDINGS LLC Arts. of Org. filed with Princ. office of LLC: 54 W. 40th St., of 1199 ROGERS LLC. Arts. Of Org. Secy. of State of NY (SSNY) on NY, NY 10010. SSNY designated as Notice of Formation of ISABEL filed with NY Dept. of State on 01/24/17. Office location: NY County. agent of LLC upon whom process BEDOYA LLC. Arts. of Org. filed with 4/19/2016. Office location: Kings Princ. office of LLC: 53 N. Moore St., against it may be served. Original addr. Secy. of State of NY (SSNY) on County. Sec. of State designated agent Apt. 2F, NY, NY 10013. SSNY designat- of process was 25 W. 17th St., Ste. 1/24/17. Office location: NY County. of LLC upon whom process against it ed as agent of LLC upon whom process 502, NY, NY 10011; however, as SSNY designated as agent of LLC may be served and shall mail process against it may be served. SSNY shall amended by Cert. of Correction filed upon whom process against it may be to: 1199 ROGERS LLC, 135 Eastern mail process to Patrick Ramsey at the with SSNY on 01/04/17, SSNY shall served. SSNY shall mail process to: Pkwy, Apt. 1D, Brooklyn, NY 11238, princ. office of the LLC. Purpose: Any mail process to 26 W. 17th St., NY, NY 2159 First Avenue, #2E, NY, NY principal business address. Purpose: lawful activity. 10011. Purpose: Any lawful activity. 10029. Purpose: any lawful activity. all lawful purposes.

22 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 20, 2017

P022-23_CN_20170220.indd 22 2/17/2017 4:45:07 PM EXECUTIVE MOVES Advertising Section New hires, promotions and board appointments. Place your listing at crainsnewyork.com/execmoves or contact [email protected]

❚ ACCOUNTING ❚ ADVERTISING AND MARKETING ❚ HEALTH CARE ❚ NONPROFITS

KPMG LLP Intersport COPE Health Solutions YMCA of Greater New York Kelly Donovan joins Intersport welcomes Tom Dougherty Jeff Vockrodt joined KPMG as a Managing Stacey Vollman joined COPE Health YMCA of Greater New York as Senior Director in the Risk Warwick to the team as Solutions as Executive Executive Director for Consulting – Forensic SVP, General Manager. Vice President. He was Advisory Services prac- Board Engagement Warwick is a proven formerly President at tice in New York City. and Strategic Partner- ships. Vockrodt works She will work with state digital media and mar- Healthcare Innova- closely with the Board and local government and serve legal sector keting executive who will be responsible for tors. Dougherty, MBA, expanding content verticals and applying FACHE, is an Executive President with of Directors, leading private sector organizations to address the Board recruitment, orientation and overall her experience in consumer, brand and more than 25 years of broad-based expe- growing need for enhancing compliance engagement. He also plays a central role in programs, investigations and monitoring. product marketing to the company out of rience in senior leadership roles for health citywide Y strategic initiatives, including She was formerly Executive Deputy Attor- Intersport’s newly opened New York office. care systems, hospitals, health plans, post- managing the current Strategic Planning ney General at New York State. acute care, home health and hospice. Initiative, and engages with foundations, think tanks and others on innovative ❚ ARCHITECTURE ways to build stronger, more connected communities. Placement Guaranteed Huntsman Architectural Group Katz, Sapper & Miller Andrew Witlin joined Big Promotion? Huntsman Architectural Adrian Whipple is a ❚ PROFESSIONAL SERVICES Share the news with the New York director in Katz, Sapper Group as Senior Project business community. & Miller’s Transac- Architect. He is a StevenDouglas Announce new hires, promotions tion Services Group, licensed architect with Jonathan Stiegler working out of the over 29 years of experi- and board appointments with firm’s New York office. joined StevenDouglas ence in the architecture CRAIN’S EXECUTIVE MOVES Adrian provides buy- as a Managing Director and interior design industry. He has worked side and sell-side due to launch and lead the For more information, on a number of large and small scale proj- diligence and transaction Finance and Accounting advisory services to private equity and ects in New York, Chicago, and Mexico City please contact Debora Stein at Search and Interim Re- strategic clients in a variety of industries, for a range of clients including financial, sources group in New York. He was former- [email protected] including manufacturing, hospitality, tech- media, legal, and corporate interiors.and ly a Director of Client Service for RGP. nology and telecommunications. its users. www.crainsnewyork.com/execmoves

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

PUBLIC & LEGAL NOTICES

Notice of Qualification of NY AT HEART Notice of Qualification of Publicis NOTICE OF FORMATION OF Darcy New Notice of Formation of Company name LLC Appl. for Auth. filed with Secy. of Health, LLC. Authority filed with NY York LLC. Articles of Organization filed of 1297 ROGERS LLC. Arts. Of Org. State of NY (SSNY) on 01/04/17. Of- Dept. of State on 1/13/17. Office lo- with the Secretary of State of NY filed with NY Dept. of State on fice location: NY County. LLC formed in cation: NY County. Princ. bus. addr.: (SSNY) on January 6, 2017. Office lo- 4/19/2016. Office location: Kings Delaware (DE) on 12/27/16. SSNY 35 W. Wacker Dr., Chicago, IL 60601. cation: NEW YORK County. SSNY has County. Sec. of State designated agent designated as agent of LLC upon whom LLC formed in DE on 12/31/16. NY been designated as agent upon whom of LLC upon whom process against it process against it may be served. Sec. of State designated agent of LLC process against it may be served. The may be served and shall mail process SSNY shall mail process to c/o ICONIQ upon whom process against it may be Post Office address to which the to: 1297 ROGERS LLC, 135 Eastern Capital, 15 E. 26th St., Ste. 602, NY, served and shall mail process to: CT SSNY shall mail a copy of any process Pkwy, Apt. 1D, Brooklyn, NY 11238, NY 10010. DE addr. of LLC: c/o Corpo- Corporation System, 111 8th Ave., against the LLC served upon him/her principal business address. Purpose: ration Service Co., 2711 Centerville NY, NY 10011, regd. agent upon is: 111 E 14th St, Suite 420, New all lawful purposes. Rd., Ste. 400, Wilmington, DE 19808. whom process may be served. DE York, NY 10003 The principal busi- Cert. of Form. filed with DE Secy. of the ness address of the LLC is: 8490 San- addr. of LLC: 1209 Orange St., Wil- Notice of Formation of DDCM 104-106 State, Div. of Corps., John G. Town- mington, DE 19801. Cert. of Form. ta Monica Blvd, Suite 2, West Holly- send Bldg., 401 Federal St. - Ste. 4, Do- wood, CA 90069 Purpose: any lawful DELANCEY LLC Arts. of Org. filed with filed with DE Sec. of State, 401 Feder- Secy. of State of NY (SSNY) on ver, DE 19901. Purpose: Any lawful ac- al St., Dover, DE 19901. Purpose: all act or activity. tivity. 01/26/17. Office location: NY County. lawful purposes. SSNY designated as agent of LLC upon The Articles of Organization of LUGAL, Notice of Qualification of 72 MAIN whom process against it may be LLC were filed with the Secretary of Notice of Qualification of Mobius Staff- STREET ASSOCIATES LLC served. SSNY shall mail process to State of New York on December 20, ing Services, LLC. Authority filed with Appl. for Auth. filed with Secy. of State Maurice Kassimir & Associates, P.C., 2016. The registered office address in NY Dept. of State on 12/16/16. Office of NY (SSNY) on 01/19/17. Office loca- 1375 Broadway - Fl. 23, NY, NY New York is 16 Court Street, 14th location: NY County. LLC formed in AK tion: NY County. LLC formed in Dela- 10018. Purpose: Any lawful activity. Floor, Brooklyn, NY, 11241. The juris- on 6/3/16. NY Sec. of State designat- ware (DE) on 01/18/17. Princ. office of diction office location is New York Coun- ed agent of LLC upon whom process LLC: 712 Fifth Ave., 30th Fl., NY, NY OLDETOWNEHOUSE LLC. App. for Auth. ty. The principal place of business ad- against it may be served and shall mail 10019. SSNY designated as agent of filed with the SSNY on 12/14/16. dress is 40 East 69th Street, New process to: c/o CT Corporation System, LLC upon whom process against it may Originally filed with Secretary of State York, NY 10021. The Secretary of the 111 8th Ave., NY, NY 10011, regd. be served. SSNY shall mail process to of Delaware on 12/09/2016. Office: State of New York is designated as agent upon whom process may be c/o Corporation Service Co., 80 State New York County. SSNY designated as agent upon who process against Lugal, served. AK and principal business ad- St., Albany, NY 12207-2543. DE addr. agent of the LLC upon whom process LLC may be served. The Secretary of dress: 11001 O’Malley Centre Dr., Ste. of LLC: 2711 Centerville Rd., Ste. 400, against it may be served. SSNY shall the State of New York shall mail proc- 105, Anchorage, AK 99515. Cert. of Wilmington, DE 19808. Cert. of Form. mail copy of process to the LLC, c/o Jill ess to: Blumberg Excelsior, Inc. at 16 Form. filed with Commissioner, 333 Wil- filed with Secy. of the State of DE, 401 Allegretti, Morici & Morici LLP, 600 Court Street, 14th Floor, Brooklyn, NY, loughby Ave., 9th Fl., Juneau, AK Federal Plaza, Ste. 1, Dover, DE Third Avenue, 15th Floor, New York, NY 11241. Purpose: Any Lawful Purpose. 99811. Purpose: all lawful purposes. 19901. Purpose: Any lawful activity. 10016. Purpose: Any lawful purpose.

Contact Joanne Barbieri at 212-210-0189 for classified advertising opportunities.

FEBRUARY 20, 2017 | CRAIN’S NEW YORK BUSINESS | 23

P022-23_CN_20170220.indd 23 2/17/2017 4:45:12 PM GOTHAM GIGS

TAKING A BITE: In 2009 Dell took over operations at one of the nation’s oldest Jewish delis.

BY LANCE PIERCE

Stacked to the future The young owner of Katz’s Delicatessen keeps old-world traditions alive

lthough he’s only 29, Jake Dell boasts some The takeout-only Brooklyn spot will mark Katz’s first really old-school habits. The co-owner of the permanent expansion, one driven in part by the changing 129-year-old Katz’s Delicatessen, a Lower East demographics of New York City, specifically the Lower JAKE DELL Side staple, takes inventory by hand, tracking East Side. “I’m losing a lot of customers who would nor- Athe comings and goings of the 30,000 pounds of meat served mally drive in, grab a sandwich and eat it in the car,” Dell AGE 29 in the restaurant weekly and the up to 2,000 packages of said. “They can’t find parking. Brooklyn is closer to a lot BORN Lower East Side authentic Jewish foods like pastrami and matzo of my base that kept us in business for a lot of RESIDES Greenwich Village balls that might be shipped to homes around You can’t years. You can’t turn your back on those peo- EDUCATION B.A., Tufts University; the world during a single week. “I like seeing it,” “ ple.” The plan is to cook food at the main kitch- turn your M.B.A., NYU Stern School of Business he said, sipping tea at a table in the cavernous, en in Manhattan, then drive it across the river. back on A FAMILY AFFAIR Martin Dell, nostalgia-inducing hall on Houston Street that A three-week pop-up in Madrid in January along with his son Alan and son-in- seats 300 customers. “Doing it by pen and paper Brooklyn” was another initiative Dell took on because it law Fred Austin, bought the delica- allows me to think more critically about things.” was an interesting project with brand-build- tessen from the Katz family in 1988. In 2009 Dell took over the business from his father, Alan, ing potential. He’d fallen in love with Madrid when he DELI DOCTOR Jake Dell had taken who in turn inherited it from his father, restaurateur Mar- went there on vacation, so he was game to be part of a the MCAT and was applying to medi- tin Dell. The Dells bought the deli from the Katz family in Seagram’s Gin–branded “New York hotel” near the Atocha cal school when he changed careers. “Now I’m cutting meat, not people.” 1988. The third-generation Dell to oversee day-to-day op- train station. (Other local businesses in the space included erations balances tradition—pen and paper, the unchanged the Blue Note jazz club and Leyenda, a Brooklyn cocktail A NEIGHBORHOOD MAN Before he purchased a $1.9 million Green- pastrami recipe—with modernizing and expanding the bar.) It’s the first time Katz’s opened a pop-up outside the wich Village co-op in 2014, he lived business, inspired by ideas he had while earning an M.B.A. United States, and although there aren’t any more in the in his grandfather’s old apartment from NYU. “You can’t help but think stupidly big at busi- works, Dell won’t rule them out in the future. on the Lower East Side. “Everyone ness school,” he said. In addition to the growing mail-order “It’s a fun way to keep the brand fresh and young, to would recognize me as my grandfa- business, Dell is building out Katz’s catering options, exper- keep appealing to new people and to stay relevant,” he ther’s grandson,” he said. “They’d be like ‘What did you do last night?’ I imenting with pop-up shops abroad and launching an out- said. “The idea was to see how Spaniards react to knishes, needed to get out of there.”

BUCK ENNIS post at Dekalb Market in Downtown Brooklyn in March. and they seemed to enjoy them.” — NOAH DAVIS

24 | CRAIN’S NEW YORK BUSINESS | February 20, 2017

P024_CN_20170220.indd 24 2/17/2017 4:02:25 PM SNAPS

All hail the chairman and chief Lincoln Center kicked off its American Songbook series with a Feb. 1 gala that honored CBS and its chairman and chief executive, Les Moonves. The fundraiser featured performances by legends Julie Andrews and Carol Burnett and current CBS stars such as Stephen Colbert and Christine Baranski, as well as singers Faith Hill, LL Cool J and Tim McGraw. James Corden, host of The Late Late Show, was the master of ceremonies. The event raised $3 million for Lincoln Center programs, including the series, a slate of concerts highlighting different types of American music.

Les Moonves with his daughter, Sara; his son Charlie; and his wife, Julie Chen, co-host of The Talk.

James Corden, Chelsea Clinton and LL Cool J at Lincoln Center’s Alice Tully Hall.

Taking kids under their wing For monkey bars and swings The Playground Partners of the Central Park Conservancy Women’s Committee held a benefit lunch Feb. 1 at The Rainbow Room. Suzie Aijala, president of the committee, and Douglas Blonsky, president of the conservancy, were among those in attendance. The National Cares Mentoring Movement held a fundraiser Jan. 30 at Cipriani 42nd Street. Among the guests were Stacey Walker King and her husband, honoree Charles King, executive producer of Fences; Susan Taylor, founder of the youth- support organization; and Chivonne Williams, the nonprofit’s executive director.

Entrepreneur Russell Simmons, a gala honoree, with actress Renée Elise Goldsberry and activist Kemba Smith during the Tanya Rivero Warren, host of Lunch Break on Wall Street Journal Live, and event, which raised Jill Kopelman Kargman, writer and star of the Bravo show Odd Mom Out, more than $1 million. at the event, which raised $150,000 for Central Park’s 21 playgrounds.

NEILSON BARNARD/GETTY IMAGES, BENNETT RAGLIN/GETTY PATRICKMCMULLEN.COM SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].

February 20, 2017 | CRAIN’S NEW YORK BUSINESS | 25

P025_CN_20170220.indd 25 2/17/2017 1:44:57 PM FOR THE RECORD*

NEW IN TOWN ■ SOSA Global Universal Group ■ KPMG inked a 10-year ■ Lighthouse Partners ■ Sirius America inked 50 W. 17th St. filed for Chapter 11 bank- expansion lease for 19,517 signed a lease for 17,750 a six-year lease for 8,371 ■ De Maria The Tel Aviv, Israel–based ruptcy on Feb. 2. The filing square feet at 1350 Sixth square feet at 437 Madison square feet at 140 Broadway 19 Kenmare St. innovation lab opened cites estimated assets and Ave. The global auditing Ave. The investment firm to expand its office space. Top Chef contestant Camille its first U.S. location, in liabilities of $10,000,001 firm will occupy the entire will occupy the entire 21st The U.S. arm of the Swedish Becerra and musician Grace Gramercy. It seeks to serve to $50 million. The filing 11th floor in addition to floor of the building and insurance firm already Lee teamed up to open a as a landing pad for global included no creditors with the 112,000 square feet it plans to relocate its head- occupies 26,000 square 60-seat café in Nolita that startups looking to expand unsecured claims. already occupies in the quarters from 680 Fifth feet of the 51-story tower serves breakfast and lunch. into the U.S. market. building between West Ave. during the second between Pine and Cedar 54th and West 55th streets. quarter of this year. JLL streets. The asking rent was ■ Extraction Lab REAL ESTATE CBRE represented the represented the landlord, in the mid-$60s per square 51 35th St., Brooklyn STOCK TRANSACTIONS tenant. The landlord, SL the William Kaufman foot. Cushman & Wakefield This new coffee shop and RETAIL Green Realty, was repre- Organization. CBRE represented the landlord, brewing machine show- ■ Estée Lauder Cos. ■ Apparel giant Tommy sented in-house. Asking represented the tenant. Union Investment Real room in Sunset Park serves (EL-N) Hilfiger signed a lease to re- rent in the deal was from The asking rent was around Estate. CBRE represented what’s now known as Amer- John Demsey, executive locate its headquarters from $75 to $95 per square foot. $95 per square foot. the tenant. ■ ica’s most expensive cup group president, sold 20,322 601 W. 26th St. to 285 Mad- of coffee, for $18. Visitors shares of common stock ison Ave. The company will can try around 50 types for $82.07 per share on occupy nine floors, which of tea while watching the Feb. 3 in a transaction make up 200,000 square feet DEALS ROUNDUP computerized coffee and tea worth $1,667,827. He now of the 550,000-square-foot machines get to work. directly holds 22,223 shares. prewar office building. JLL TRANSACTION SIZE BUYERS/ TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE represented the tenant and ■ La Milagrosa ■ Sirius XM Holdings Inc. the landlord, RFR Realty. Aon plc, benefits administration $4,800.0 Blackstone Group LP SB M&A 149 Havemeyer St., (SIRI-O) The asking rent was around and HR business process (Manhattan) outsourcing platform/Aon plc Brooklyn Joseph Verbrugge, executive $70 per square foot. Felipe Mendez, chef and vice president of sales and Mauser Group B.V.; $2,300.0 BWAY Corp. SB M&A Clayton, Dubilier & Rice Inc. owner of La Superior and development, sold 156,035 ■ Korean fashion brand (Manhattan) Cerveceria Havemeyer, shares of common stock Åland inked a 10-year lease opened a new restaurant for $4.77 per share on for 10,000 square feet at 92 184-Property Cabot Industrial $1,070.0 DRA Advisors LLC SB M&A Portfolio/Cabot Properties Inc. (Manhattan) in Williamsburg that’s a Feb. 3 in a transaction worth N. 6th St. in Williamsburg. Mexican deli with a bar $744,287. He now directly The new 3-story flagship Sentinel Data Centers, two enterprise- $490.0 CyrusOne Inc. SB M&A accessible only through a holds 321,060 shares. store will be the brand’s class data centers in North Carolina and New Jersey/Sentinel Data Centers freezer door. The reserva- first location in the U.S. LLC (Manhattan) tions-only backroom bar ■ JetBlue Airways Corp. Cushman & Wakefield specializes in agave- (JBLU-O) represented the tenant. Radius/Greystar Real Estate $141.0 Kennedy-Wilson SB M&A Partners LLC Holdings Inc.; based spirits. Robin Hayes, chief execu- Lee & Associates repre- LeFrak Organization Inc. tive officer, sold 2,000 shares sented the building owner, (Manhattan) ■ Malcriada of common stock for $19.64 RedSky Capital. The Invincea Inc./Aeris Capital AG; $120.0 Sophos Group plc SB M&A 185 Avenue C per share on Feb. 1 in a asking rent for the deal Comerica Bank; Dell Corporate The new Latin restaurant transaction worth $39,280. was $1.2 million per year. Ventures; Grotech Ventures; Harbert Venture Partners LLC; New Atlantic with a name that translates He now directly holds Ventures; ORIX Growth Capital to “poor-mannered” opened 349,881 shares. ■ 959 Retail purchased two (Manhattan) in the East Village. retail condos at 959 First View Inc. $100.0 TIAA Global Asset GCI Ave. for $4.5 million. The Management ■ Rue La Rue Café BANKRUPTCIES two vacant ground-floor (Manhattan) 4394 Broadway condos encompass 2,713 Greenwich Park Apartments LP/ $61.8 Avesta Real Estate SB M&A The Golden Girls–themed ■ 25-54 Crescent Realty square feet at The Sutton, Waterton Associates LLC Holdings LLC eatery that serves breakfast 25-58 Crescent St., Long between East 52nd and Better Mortgage $15.0 Goldman Sachs Group, GCI Island City and lunch opened in Wash- East 53rd streets. Eastern Merchant Banking division ington Heights. Fans of the The real estate firm filed for Consolidated represented (Manhattan); Kleiner, long-running sitcom can Chapter 11 bankruptcy on the seller, Toll Brothers, and Perkins, Caufield & Byers; Pine Brook Road Partners LLC explore the memorabilia Feb. 8. The filing cites esti- procured the buyer. (Manhattan) decorating the 40-seat café. mated assets of $1,000,001 to $10 million and liabilities ■ French restaurant Le TerrAvion Inc. $10.0 ICE Data LP; Initialized GCI Capital Management LLC ■ Vintage Wine Bar of $1,000,001 to $10 million. Bilboquet signed a 15-year (Manhattan); Merus Capital; 23-14 Ditmars Blvd., The creditor with the largest lease to open a new café on Promus Ventures Queens 26 E. unsecured claim is C&R 1,100 square feet at Wiivv Wearables Inc. $4.0 Asimov Ventures GCI The Astoria wine bar Elevator, owed $30,000. 60th St. The asking rent (Manhattan); Eclipse and café opened in a was $350 per square foot. Ventures LLC; Evonik Venture Capital GmbH; ■ Bella Havana Inc. storefront that used to Cushman & Wakefield Real Ventures house the Waltz-Astoria 3471 Bruner Ave., Bronx represented the tenant. The performance space. The company filed for landlord, New York Park Cuebiq Inc. (Manhattan) $3.5 Angel Round Capital Fund LP; GCI individual investors Vintage features New York Chapter 11 bankruptcy on North Salem, represented breweries and vintners. Feb. 1. The filing cites esti- itself in the deal. Capsule8 Inc. (Brooklyn) $2.5 Bessemer Venture Partners; GCI mated assets of $0 to $50,000 individual investors COMMERCIAL and liabilities of $100,001 to Selected deals announced for the week ending Feb. 10 involving companies in metro MOVES AND EXPANSIONS $500,000. The creditors with ■ AEG Live signed a 15- New York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing the largest unsecured claims year lease for 28,128 square shares of a company without the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. SOURCE: CAPITALIQ ■ Haru are the state Department feet at 53 W. 23rd St. The 859 Ninth Ave. of Taxation and Finance, world’s second-largest con- The upscale sushi chain owed $36,840; Roberto cert company will occupy

GET* YOUR NEWS ON THE RECORD opened its seventh location, Rosario, owed $17,563; the entire fifth floor of the To submit company openings, moves or real estate deals, or to receive further information, in Hell’s Kitchen. and Oliver Camino, CPA, 12-story building. The ask- ABOUTemail [email protected] SECTION. owed $16,555. ing rent was $66 per square For the Record is a listing to help businesspeople in New York find opportunities, potential ■ Perpetuum Café foot. Newmark Grubb new clients and updates on customers. Bankruptcy filings from the eastern and southern 200 Church St. ■ Global Universal Knight Frank represented districts of New York are listed alphabetically. Stock transactions are insider transactions The coffee shop opened Group Ltd. the tenant. Adams & Co. at New York companies obtained from Thomson Reuters and listed by size. Real estate its second location, 33-37 Farrington St., represented the building listings are in order of square footage. in TriBeCa. Queens owners, the Belson family.

26 | CRAIN’S NEW YORK BUSINESS | February 20, 2017

P026_CN_20170220.indd 26 2/17/2017 2:38:01 PM PHOTO FINISH

Open-door policy frightened child peeks out from inside a half-buttoned winter coat, beneath the gaze of a weary man with unkempt hair. That im- age, emblazoned on the “Refugees Are Wel- Acome Here” posters popping up in storefront windows across Brooklyn, has become a common sight, including at Playground Coffee in Bedford-Stuyvesant. While New York’s business owners may be waiting with open arms, the city’s high cost of living makes it far less welcoming. Each refugee accepted into the United States receives a one-time federal grant of $1,125. Those dollars stretch a lot further in upstate cities like Buffalo, which took in 298 Syrian refugees last year, compared with just 36 who were resettled in the five boroughs, according to State Department figures. But for Playground Coffee, the poster designed by Oakland, Calif.–based artist Micah Bazant is meant as a sign of welcome not just to refugees but to anyone feeling persecuted in the current political climate. “It’s an immediate thing that people can see,” said Ally Severino, who organizes the café’s community events, which range from hosting forums about police brutality to mobilizing protests against President Don- ald Trump. “We’re at a time when people need a signal like that to feel safe.” — PETER D’AMATO PETER D’AMATO

February 20, 2017 | CRAIN’S NEW YORK BUSINESS | 27

P027_CN_20170220.indd 27 2/17/2017 4:12:50 PM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS Dr. Richard Merkin and

PRESENT THE THE 2ND ANNUAL Heritage Healthcare Innovation Awards 2017 NOMINATIONS NOW OPEN AT CRAINSNEWYORK.COM/HERITAGE Heritage Provider Network honors innovative New York metropolitan area healthcare leaders with the second annual Heritage Healthcare Innovation Awards. JUDGING PANEL

Mitra Behroozi Maria Gotsch Executive Director, 1199SEIU President and CEO, Partnership Fund Beneﬁ t and Pension Funds for New York City

Rainu Kaushal, MD, MPH Stephen Berger Professor and Chair, Healthcare Policy Chairman, Odyssey Partners & Research Weill Cornell Medicine

Mary O’Neil Mundinger, DrPH Jo Ivey Boufford, MD Edward M. Kennedy Professor of President, The New York Academy of Medicine Health Policy, Dean Emeritus, Columbia University School of Nursing

Louise Cohen Laurel Pickering, MPH CEO, Primary Care Development Corporation President and CEO, Northeast Business Group on Health

Michael Stocker, MD Dr. Rosa M. Gil, DSW Retired CEO, Empire Blue Cross and Blue Shield, President and CEO, Comunilife, Inc. Former Board Chairman, New York City Health and Hospitals Corporation

Dr. Richard Merkin President and CEO, Heritage Provider Network

AWARD CATEGORIES Heritage Innovation in Healthcare Delivery Award Heritage Research Investigators in Translational Medicine Award Heritage Healthcare Leadership Award Heritage Healthcare Organizational Leadership Award Heritage Innovators in Healthcare Award Winners will be proﬁ led in Crain’s New York Business

For more information, visit crainsnewyork.com/heritage NYC Awards Luncheon: May 22, 2017 Luncheon hosted by Richard Merkin, MD, President and CEO, Heritage Provider Network and Mark Wagar, President of Heritage Medical Systems, former CEO of Empire BlueCross BlueShield

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