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TOP STORIES BUSINESS LIVES iPhone addicts Power-hungry are consumers thwart hooked conservation effort forever PAGE 2 ® PAGE 35 Book publishing shake-ups signal industry shift VOL. XXIV, NO. 23 WWW.CRAINSNEWYORK.COM JUNE 9-15, 2008 PRICE: $3.00 PAGE 3 Longing for Mike LOVIN’ SPOONFULS shouldn’t mean Banks act ending term limits Yogurt shops EDITORIAL, PAGE 10 to rework Malpractice reform effort will end sweet on city with a whimper But growing competition mortgages THE INSIDER, PAGE 12 could freeze some of them out Lenders step up SMALL BY ADRIANNE PASQUARELLI efforts to help BUSINESS homeowners; 6 owners plot lately, New Yorkers can’t walk a few blocks without run- ning into a frozen yogurt shop.The count has gone from the will it be enough? hard-earned low single digits to more than 30 storefronts in the past 20 summer escapes months alone. And with summer’s steamy heat on the way, BY DANIEL MASSEY PAGE 21 the craze won’t wane any time soon. Where there were photo labs and thrift stores, there are with the number of New York now Yolatos and Berrywilds. Industry giants Pinkberry and City mortgages in foreclosure at its Red Mango, chains that kicked off expansion in California, highest level in at least 15 years, have opened multiple New York locations and have plenty lenders are intensifying their ef- See YOGURT on Page 8 forts to help borrowers hold on to their homes. Mortgage servicers completed

1,560 loan workouts in New York lindström bekka during the first two months of the year,up from 1,027 in the first three warnings of foreclosure, and no- months of 2007,says Hope Now,an body was doing anything except alliance of mortgage companies and demanding your money,”says state investors. Nationally, mortgage Sen. Jeff Klein, D-Bronx. “Now, companies handled 183,000 work- lending institutions are much outs in April, a 14% increase over more willing to modify loans.” AT DEADLINE March levels, Hope Now reports. Nevertheless, the number of “In the past, lenders sent out See MORTGAGE on Page 8 SHARES OF NEW YORK INVESTMENT BANKS AND retailers dropped sharply on Friday as the Dow Jones Industrial Average plunged Calif. crane rules 394.64 points—more than 3%—on bad economic news. Shares of Morgan Stanley model for New York dropped 8.5% to close at $40.81, and shares of J.P. Morgan Chase & Co., cially in recent years, as construc- Goldman Sachs Group Inc. Tough measures, tion cranes have become as ubiqui- and Lehman Brothers tous as street vendors hawking Holdings Inc. all fell more no accidents knockoff watches and designer SAM MARELLI than 4%. New York retail says sales for his and lower costs handbags. The recent tragedies stocks also were hurt Friday, first Berrywild shop here, which killed seven people, with half a dozen average around have exposed weaknesses in the companies—including Macy’s $2,000 a day. BY THERESA AGOVINO city’s regulatory system. Inc., Phillips-Van Heusen “For 25 years, we’ve Corp. and Jones Apparel nineteen years ago,in been operating with the Group—losing more than 5% the wake of a horrendous attitude ‘if it ain’t broke, of their share value. crane accident in San Fran- 75% don’t fix it,’ ” says Louis INCREASE in cisco, California adopted permits for new Coletti, president of the LONG LINES ARE A PROBLEM the toughest safety regula- buildings in Building Trades Employ- FOR THE STATUE OF LIBERTY tions in the nation. Since Manhattan in ers’ Association. “What See AT DEADLINE on Page 2 then, buildings containing past five years has surfaced is [a feeling] tens of millions of square that the system is broken, feet have gone up across the state— and we are looking at a total repair.”

23 all without one single fatality from Observers are now looking west

5 COMINGNEXT WEEK a crane accident. to California, where experts point New York’s bold efforts to provide Here in New York, two deadly to two critical regulations that con- health coverage to THE UNINSURED hit a crane accidents within just three tribute to the state’s vastly im- ELECTRONIC EDITION political snag. A look at the problem months are raising questions about proved safety record. First, the and the solutions. why New York City never em- state requires that tower cranes un-

NEWSPAPER braced California’s model—espe- See CA CRANE on Page 8 71486 01068 0 CNYB 06-09-08 A 2 6/6/2008 7:54 PM Page 1

AT DEADLINE U.S. News cuts schedule Continued from Page 1 former Gov. George Pataki to months after Statue Cruises join its board of directors.The from 46 last year, but the move to and 32.7% at U.S.News,according to took over the National Park trash and lawn bags are the No. 3 news title publish only every other week— Media Industry Newsletter. Service contract.The company latest venture from Chief to publish biweekly with occasional special issues—pro- Readers are defecting as well. says its new online ticket Executive Tony Tracy, who also vides the strongest signal yet that Time reported average paid circula- reservation system, which was created the Ab Roller. He beginning in 2009 the ground has permanently shifted tion of about 3.4 million for second- designed to reduce waiting expects the biodegradable items under the format. half 2007, down 17.6%. Newsweek’s times, has not caught on. to hit shelves later this year in “ ‘News’ and ‘week’ become an average was flat at 3.1 million and Instead, customers are buying nationwide chain stores such as BY NAT IVES oxymoron,” says Brian Kel- U.S. News also reported flat their tickets when they arrive at Wal-Mart and Walgreens. ly, editor of U.S. News,de- circulation,at just over 2 mil- the ferry terminal.They then u.s. news & world report, the scribing the effect of media 32.7% lion. WATERFRONT MEDIA INC., THE DECREASE in must wait to clear security, longtime No. 3 weekly news maga- competition. ad pages at U.S. News plans to pro- whereas online purchasers BROOKLYN-BASED PUBLISHER zine, will drop to a biweekly sched- Some ad buyers approve U.S. News vide instant updates and vast receive priority. of EverydayHealth.com, has ule next year, effectively ceding the of the plan. so far stores of reference material acquired California search troubled category to larger rivals “It’s a very smart, strate- this year. online. MORE THAN 120,000 PEOPLE marketing firm Netramind to Time and Newsweek, Advertising gic move,” says Brenda “Because we’re able to ATTENDED THE FIRST WORLD help overtake WebMD as the Age reports in today’s edition. White, senior vice-president at provide our audience with much Science Festival, far exceeding nation’s leading health In an increasingly competitive Starcom Worldwide. “When you more current information on the the organizers’ expectations. information site. Netramind, environment, all three traditional think about it, what their brand Web, it frees us up to do better sto- The five-day festival, which which specializes in online newsweeklies have taken such steps stands for is the rankings.There is a rytelling in print,” Mr. Kelly says. ended June 1, offered 40 marketing, helps Web as cutting paid-circulation guaran- franchise there.” programs that ranged from publishers increase traffic to tees. U.S.News has already trimmed So far this year,ad pages are down Nat Ives is a reporter for Advertising Age, lectures by Nobel Prize winners their sites by optimizing the use its frequency to 36 issues this year 23.7% at Newsweek, 27.2% at Time a Crain publication. to physics-themed dance of search engines.Terms of the performances at the deal were not disclosed. Guggenheim Museum. Planners, who expect the festival THE NATIONAL LABOR to become an annual attraction, RELATIONS BOARD HAS ISSUED are already working on next a multicount complaint against year’s.They also hope to expand the Bronx nursing home where the festival throughout the five 220 members of 1199 SEIU Getting all juiced up boroughs.This year’s events have been on strike since were held at 17 venues, with February (Crain’s, May 19).The most of them near New York charges filed against the Peak demand looms as conservation efforts falter University. Kingsbridge Heights Rehabilitation and Care Center BY MATTHEW SOLLARS PERF GO GREEN WILL BEGIN allege that management failed SELLING ITS FIRST PRODUCT, to make payments to the new yorkers are expected to pay at least 13% more for electricity this summer than last, but eco-friendly plastic bags, later workers’ benefit fund, that was the furthest thing on Dr. Carter Dillman’s mind when he set out to buy an this month on Drugstore.com. conducted surveillance of union entertainment system last month. The Manhattan company went members and threatened Dr. Dillman shelled out about $4,000 for a 40-inch LCD flat-screen TV and a high-end public in May and recruited workers with termination. audio system to replace his 26-inch set. Largely because of its size, the new TV will require roughly twice as much electricity. CORRECTIONS “I’m energy-conscious; I’m not wasteful,” Dr. Dillman says. “But if you want the The asking rent at 245 Fifth Ave. is $56 a square foot. The rent was misstated in the June 2 performance, if you want the toy, you’re going to buy it.” “Real Estate Deals” column. See CITY LOSING on Page 9 LinkShare was sold for $425 million in 2005. The price was incorrect in the June 2 story “Digital glass ceiling is fully intact.” Daniel Lipton of the Kaufman Organization represented tenant Panties Plus Inc. in its lease at 320 Fifth Ave. The name of the broker was wrong in the May 26 “Real Estate Deals” column.

THIS WEEK IN CRAIN’S

ALAIR TOWNSEND ------11

THE INSIDER------12

REAL ESTATE DEALS------13

WEEK IN REVIEW ------14 NEIGHBORHOOD

JOURNAL------17

37 THE WEEKS AHEAD ------18 REPORT:

SMALL BUSINESS------21

CLASSIFIEDS ------32

BUSINESS LIVES------35

HOME FRONT------36

CORPORATE LADDER------37

EXECUTIVE MOVES------39 38 BOB LAPE ------39 vol. xxiv, no. 23, june 9, 2008—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2008 by Crain Communications Inc. All rights reserved. istockphoto/chart lindström bekka

2 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 3 6/6/2008 7:56 PM Page 1

Going by new book Upstate they’re selecting to take booster Growth-minded over,” says David Stein- publishers turn berger, chief executive of independent publisher to younger, more Perseus Books Group. at ESDC The former Harper- practical leaders Collins’ trade books divi- sion chief hired Mr.Mur- Paterson’s choice for BY MATTHEW FLAMM ray back in 1997. Mr. Dohle has no ex- development chief last week, the publishing world perience in book publish- was shaken once again. Jane Fried- ing. But Random House is savvy but risky man, chief executive of Harper- says it’s not a handicap. Collins Publishers Worldwide, “He was given this as- BY ERIK ENGQUIST stepped down—just two weeks af- signment because of his ter another book business veteran, enormously successful gov. david paterson’s choice for Peter Olson,left the chief executive track record at building chairman of the state’s development position at Random House Inc. businesses,” says a Ran- agency has some business leaders Whatever the individual reasons dom House spokesman. cheering—and others scratching for their departures, publishing in- Other executives say their heads. In a clever yet perilous siders see a shift taking place in the the changes reflect the move, Mr. Paterson last week industry. Older, idiosyncratic lead- difficulties in achieving named M&T Bank Chief Execu- ers are being succeeded by younger, growth and navigating tive Robert Wilmers to lead the more practical-minded ones. the transition to digital Empire State Development Corp. The exuber- buck ennis JANE FRIEDMAN, technologies. Support- ant, 62-year- HarperCollins’ CEO, “It’s not surprising that ers of the old Ms. Fried- PLOT THICKENS resigned last week. large conglomerates ex- “Unshackle man, who came 2007 CHANGE 2007 CHANGE pect financial and business Upstate” ini- up on the mar- REVENUE VS. ’06 INCOME VS. ’06 expertise that once upon a tiative, long keting side of time may not have been championed publishing, has Random considered so necessary,” by Mr. Wil- been succeeded House 1.84 billion* -5.6% 173 million* -4.9% feelings about taking says David Young, chief executive of mers,think he by her more HarperCollins $1.34 billion +2% $159 million -5% over for Ms. Friedman, Hachette Book Group USA. will use his low-key lieu- *Figures given in euros because of fluctuations in exchange rate. Sources: Subtext, Publishers Weekly with whom he has News of Ms. Friedman’s depar- new Buffalo- tenant, Brian worked closely. But he ture broke Wednesday night. Ms. based post as a Murray,41,for- says he needs to make Friedman was considered hugely platform to ROBERT WILMERS mer group president of Harper- company Bertelsmann AG’s print- the company grow. successful in the 10 years she was advance the Collins. ing division, Mr. Dohle made his “What the owners of publishing CEO, but her record was marred by cause of re- Trained as an electrical engineer reputation in Germany by turning companies want is growth, and a fight with publisher Judith Regan ducing the regulation of upstate before he got his business degree, nuts-and-bolts businesses in ma- that’s hard to come by in the state over an aborted O.J. Simpson proj- businesses. That is not the tradi- Mr. Murray moved into publishing ture industries into growth engines. that [publishing] is in,”Mr.Murray ect. Ms. Regan filed a $100 million tional role of the agency,whose mis- from a job as a consultant in the me- says. suit against HarperCollins over her sion is to lure businesses to New dia and entertainment practice at Growth goals Industry executives say that in a dismissal and eventually settled out York and retain existing ones. Booz Allen Hamilton. both harpercollins and Ran- difficult time for the book business, of court. “ESDC has been an agency de- He is the second executive with dom House have had trouble it makes sense that media conglom- Ms.Friedman said in a statement voted to incentives and retention a business background to take over achieving growth in the last year, erates would want business-orient- that her years at HarperCollins were packages and Empire Zones and a publishing house. though spokespeople for both ed leaders in command. “the most rewarding of my career.” programmatic initiatives,” notes Markus Dohle, 39, replaced 65- houses say that the personnel “It is possible that these giant Kenneth Adams, president of the year-old Mr. Olson. changes were unrelated to results. conglomerates are looking for new COMMENTS? Business Council of New York Formerly the head of parent Mr. Murray says he has mixed approaches in terms of the people [email protected] State, of which Mr. Wilmers is a board member. “But [Mr. Wilmers is] known as an advocate for lower- ing taxes.” An associate of Mr.Wilmers says the 74-year-old banker does not be- lieve that ESDC development proj- P.R. battles airline cuts ects will solve New York’s funda- mental problem—high costs—and it will announce this week whether light,and the Western Hemisphere land’s most important tourism may not temper his advocacy of re- Launches effort its three daily flights to San Juan Travel Initiative, which took effect market, generating more than a forms after he joins the administra- to spur travelers, air from Newark will be affected. in January, requires that U.S. citi- quarter of its U.S. visitors. tion. The Puerto Rico Tourism Co. zens present a passport for travel to Last year,1.3 million passengers “I think he will pressure the gov- service from New wants to make sure the industry Canada, Mexico and the non-U.S. flew from local airports to San Juan, ernor to support legislation to try to York area airports isn’t hurt by the cutbacks. The Caribbean. nearly 3% more than in 2006, ac- reduce [costs],” the associate says. agency is offering airlines financial No passport is required for trav- cording to the Port Authority of One business leader predicts that incentives to add routes to Puerto el to Puerto Rico. New York and New Jersey. the new chairman will leave ESDC BY HILARY POTKEWITZ Rico. They include revenue guar- Before Thursday’s announce- deal-making to the upstate and antees, co-marketing agreements ment, it looked as though Conti- downstate directors he will hire— a government agency in Puerto and improved landing fees for car- ‘Right now, nental would step into the void va- similar to the way in which Metro- Rico is pumping about $3 million riers that use larger planes. cated by American Airlines and politan Transportation Authority into an aggressive campaign to en- we’re just trying add another daily flight from Chairman Dale Hemmerdinger de- courage travel to the island and spur Center stage Newark, says Ms. Gonzalez-Den- fers to Executive Director Elliot airlines to add flights from New “we are living in very crucial to maintain the ton, who has spent the past week in “Lee” Sander. York’s airports to San Juan. The times,” says Terestella Gonzalez- negotiations with the Houston- Mr. Wilmers’ appointment will move is an effort to address service Denton,executive director of Puer- flights we have’ based carrier. at least temporarily mute critics of cutbacks due to escalating fuel costs. to Rico Tourism. “The airline in- “Right now, we’re just trying to the state’s upstate policies. Last week, American Airlines dustry is a little shaky right now,but maintain the flights that we have,” “Paterson was smart to get eliminated its service to the island we are in deep negotiations with the she says. Wilmers in the tent,”says one expert from Newark Liberty International airlines to build incentives for them Newark and JFK combined cur- on the Albany scene. “It’s hard to and discontinued much of its inter- to add new routes.” The tourism agency will spend rently serve San Juan with 12 daily blame the government when you Caribbean service from San Juan. National events provide a back- an additional $2 million on market- flights. join it.” Continental Airlines,which also drop for the effort. ing during summer—the tradition- serves Puerto Rico, just said that it Last week’s Democratic pri- al slow season for Caribbean travel. COMMENTS? COMMENTS? is reducing flights by 11% and that mary put Puerto Rico in the spot- The New York area is the is- [email protected] [email protected]

June 9, 2008 | Crain’s New York Business | 3 CNYB 06-09-08 A 4 6/6/2008 8:27 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL Ability to manage risks -3.0% The Bloomberg/ makes MetLife a buy Crain’s New York Index ➡ fell 3.0% to Big insurer snaps up Research analyst Colin Devine wrote in a per-share earnings are expected to in- end the client report last week. He called the crease to $6.88 a share on a 4% jump in week at two mortgage firms; shares not just a “compelling value” but revenues, according to Reuters Esti- 330. The “our No. 1 investment mates. S&P 500 eyeing European buys idea.” Like many compa- Index fell True, MetLife has nies, MetLife is gen- 2.8%, $7.7 billion of sub- erating most of its closing at BY AARON ELSTEIN prime and only slight- growth in overseas 1361. ly less risky Alt-A markets. The insurer s it turns out, Snoopy’s fa- mortgages in its in- expects that the per- vorite insurer has a surprising vestment portfolio. centage of revenues appetite for risk. Last week, And true, that’s more flowing from abroad MetLife Inc. agreed to buy than any other life in- will double over the the residential mortgage surer except Pruden- next five years,to 25%. RISERS Abusiness of First Horizon, a Tennessee- tial Financial, but Much of the growth is 5-DAY 1-MONTH 3-MONTH CLOSING based banking company, for an undis- Met’s credit losses in Japan, Korea and % CHANGE % CHANGE % CHANGE PRICE closed price.The week before,it finalized have been tiny. As of Mexico. MetLife, McGraw-Hill +6.9% +8.7% +14.5% $44.36 the purchase of EverBank Reverse Mort- last quarter, they have long a leader in selling Moody’s +5.5% -2.1% +8.8% $39.13 gage in New Jersey. amounted to just variable-rate annuities MetLife says the two deals position it 0.4% of the company’s in the United States,is Scientific Games +4.1% +21.5% +88.7% $33.67 to be a leader in the origination and serv- equity, according to this month beginning Medco +2.8% +1.7% +16.8% $49.78 icing of mortgages, but they also amount Citi. That compares Market cap $41.4 billion to distribute those an- Arbitron +2.4% +6.8% +21.8% $51.05 to extraordinary bets that the housing cri- with an average of P/E trailing 12 mos. 11.5 nuities through 240 sis is subsiding. Given that MetLife has 1.0% for its peers. Number of MetLife blimps 3 Japanese post offices. sidestepped the credit crisis land mines so While MetLife MetLife has been SINKERS far, investors should hold their noses and says that it will assume buying small domestic 5-DAY 1-MONTH 3-MONTH CLOSING get Met. responsibility for $20 insurers for years. It % CHANGE % CHANGE % CHANGE PRICE Not only is MetLife’s life insurance billion of mortgages from First Horizon, now aims to do the same in Europe. Ambac -24.9% -52.3% -68.3% $2.35 business growing strongly but its stock it stresses that none of those are subprime In the meantime,after spending $1.25 MBIA -21.8% -52.2% -53.1% $5.44 happens to be trading at a mere eight or Alt-A. billion of it to buy back shares last quar- times this year’s anticipated earnings per Lehman -12.3% -30.3% -29.8% $32.29 Last year, MetLife generated operat- ter, the company has nearly $11 billion of share,despite the firm’s longtime status as ing earnings of $4.7 billion, or $6.25 a cash on its balance sheet, according to Saks -12.2% -9.1% -7.0% $12.13 one of the industry’s premier performers. share, on revenues of $53 billion, com- CreditSights. Merrill Lynch -11.2% -24.0% -14.9% $39.02 “Met’s financial outlook has never pared with per-share earnings of $5.22 on been stronger,” Citigroup Investment revenues of $48 billion in 2006.Next year, COMMENTS? [email protected]

STOCKS TO WATCH by Erik Ipsen Picture at new, smokeless Loews looks better, but still far from clear OLD GOLD IS GONE. Following in the footsteps of erstwhile Marlboro-maker Altria, Loews is spinning off its big Lorillard tobacco unit. Investors have cheered, sending the shares up 21% in the past 3 months as they focus on all the good stuff this holding company owns—its offshore oil driller and natural gas pipelines—plus its $4.4 billion in cash and investments. Loews’ big insurer, INA, and its hotel unit present a more mixed picture. Overseas, hotelier Starwood is going great guns, with revenues soaring. Too bad 75% of them come from the good old US of A, where $4-a-gallon gas, rising airline fares and shrinking flight schedules threaten to turn a downturn- driven bad patch for hotels into something downright nasty. The company’s earnings have been shrinking since late last year. News of a big stake held by Sam Zell has boosted the shares 4% this year, but buyout hopes are fading. The gap between Goldman Sachs and the other big investment banks grew last week as S&P spared Goldman alone from a ratings downgrade. The firm also not only found a buyer for one of its biggest LBOs—Alltel—it emerged as the lead adviser in the deal. But who cares? Goldman is damaged goods. Its shares are off 21% this year, versus an 8% drop for both the broader- based J.P. Morgan and for the Dow. charts: lindström bekka

4 | Crain’s New York Business | June 9, 2008 CN012074 6/4/08 4:51 PM Page 1

We’re Softmart, your HP Authorized Gold Business Partner here in the New York area. Being local means we can deliver in-person expertise on issues like data security, as well as offer a range of solutions including computers powered by Intel® vProTM technology1 with proactive management and security features built-in. We stand ready to deliver on the HP Total Care experience by helping you get the most out of your technology, which includes giving you a lock on your data.

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1. Some functionality of this technology, such as Intel Active Management Technology and Intel Virtualization Technology, requires additional third-party software in order to run. Availability of future “virtual appliance” applications for Intel vPro technology is dependent on third-party software providers. Compatibility of this generation of Intel vPro technology-based hardware with future “virtual appliance” applications and Microsoft Windows Vista operating system is to be determined. Intel, the Intel logo, Intel Core, Intel vPro, Core Inside and vPro Inside are trademarks of Intel Corporation in the U.S. and other countries. © 2008 Softmart, Inc. All rights reserved. © 2008 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. CNYB 06-09-08 A 6 6/6/2008 6:58 PM Page 1

ENTIRE 5TH AVENUE BLOCKFRONT PRIME NEW YORK,NEW YORK BIG BOX edited by Valerie Block RETAIL +_ 74,000 SF Sweetshop hits the bottle ylan’s candy bar is coming of age. The kitschy Upper East Side sweetshop D expects to start serving candy-flavored martinis and other cocktails in the coming weeks—as soon as its promised liquor license arrives. Part of the shop’s second floor will be transformed into a lounge where, owner Dylan Lauren suggests, hip New Yorkers can go for a first date or a nightcap. “It’s a fantastical theme, with peppermint stools, rather than a serious bar,” says Ms. Lauren, whose father is designer Ralph Lauren.“We don’t 420 FIFTH AVENUE want people getting drunk.” After 5 p.m., the bar area will be partitioned off from the rest of A contiguous wall of windows, For information, the recently renovated floor, which serves as an event space and café, multi-level retail space including contact: to prevent children at birthday parties from wandering into happy full 5th Avenue block of frontage George T. Constantin hour.The menu will feature a peppermint schnapps creation, a mocha- -37th to 38th street 212.674.2556 almond liqueur libation and martinis with a candy twist. High traffic location between Ms. Lauren will use the New York bar as a model in her planned Lord & Taylor and the Empire State Building buck ennis expansion to other cities, including Las Vegas, Los Angeles and Chicago. Available Immediately flamboyant Broadway impresario horseless carriage that uses plug-in

® Bad boy fights Florenz Ziegfeld Jr. BROKERS HERITAGE hybrid technology.The group has REALTY SERVICES, LLC REAL ESTATE BOARD OF NEW YORK PROTECTED for his write The company is quietly the funding and is meeting with restoring the 30,000-square-foot manufacturers, Mr. Nislick says. motley crüe lead singer Vince historic rooftop above the New The activists say the cars will be Neil (below) has just sold his Amsterdam Theatre.The space cleaner, safer and cheaper to autobiography, continuing the originally opened in 1904 as the maintain than are the horses, big-hair band’s tradition of Aerial Gardens, a cabaret.The which they would like to see turning their wild antics into spot has also been an NBC Radio retired to sanctuaries. Mr. Nislick, books. studio and a Broadway rehearsal who owns four horses, adds that He’s off to a good hall. the carriage drivers would be start with the title: By 1994, when Disney encouraged to switch conveyances. Lewd, Crüed and leased the building for The “We don’t want to put people Long established Heavily Tattooed. Lion King, the space was in out of work,” he says.

g Grand Central e total disrepair. Disney A City Council bill to ban the commitment t t Publishing, a y executives say that the buggies faces long odds. A spokes- im division of Hachette ag renovation will cost millions woman for the Horse and Carriage es Weiser LLP Book Group USA, but that rising rents made it a Association of New York says:“It’s Certified Public Accountants acquired the book for about half a worthwhile investment. all about the horse. Nothing can million bucks, according to an David Schrader, managing replace that experience.” industry source. director of Disney Theatrical, says The group’s gritty past has his 120-person staff will “work Contributors: Lisa Fickenscher, rocked at retail, starting in 2001 adjacent to [the New Matthew Flamm, Miriam Kreinan Souccar to the New York City New York with The Dirt: Confessions of the Amsterdam], where they can see 135 West 50th Street World’s Most Notorious Rock Band. our audience.” Mary Poppins is New York, NY 10020 business community The title is still in print. Four years currently playing there. DOG DAYS Tel 212.812.7000 ago, drummer Tommy Lee hit The company expects to move Fax 212.375.6888 For nearly a century,Weiser has provided publishing gold with Tommyland. into the new digs this fall from A NEW LUXURY BUILDING, 20 Long Island accounting, tax, and consulting services, such And last fall, bass guitarist Nikki 1450 Broadway, where it has Exchange Place, is welcoming 3000 Marcus Avenue as state and local tax planning, internal audit Sixx had a best-seller with The rented space for eight years. tenants with a spa day—for their Lake Success, NY 11042 outsourcing, and business restructuring, Heroin Diaries. dogs. Instead of keeping Fido in Tel 516.488.1200 to private clients and business enterprises, the moving van while the furni- Fax 516.488.1238 Mr. Neil has his own stories to including closely-held and emerging entities, tell. In addition to the usual litany PETA pushing ture is unloaded, incoming resi- Westchester in a variety of industries including: of sexual hijinks, substance abuse dents of the pet-friendly tower in 660 White Plains Road horseless hybrid Suite 430 • Real estate and plastic surgery, he has had more lower Manhat- Tarrytown, NY 10591 • Manufacturing and distribution than his share of personal tragedy, actor Alec Baldwin and People for tan can drop Tel 914.333.0555 • Auto dealerships including a drunk-driving incident the Ethical Treatment of Animals their pooches Fax 914.333.0556 • Media and communication in which his passenger died. will host a screening of Blinders,a off at The Salty New Jersey • Banking documentary about horse-drawn Paw, a nearby 399 Thornall Street • Food and dairy carriages, on Wednesday. Behind pet boutique, Edison, NJ 08837 • Health care Formerly racy goes the scenes, PETA is revving up its for, say, a Tel 732.549.2800 • Financial services effort to replace the buggies with wash and Fax 732.549.2898 family-friendly • Professional services replica antique cars. blow-dry. www.weiserLLP.com • Not-for-Profit disney theatrical group, the PETA and partners, including The spa squeaky-clean producer of The animal advocate Jill Weitz and Steve perk is Nislick For more information, contact Douglas Phillips at 212.375.6701. Little Mermaid, is building its new , chief executive of Edison worth $60. worldwide headquarters in a Properties, hope within a year to

onetime nightclub run by introduce a $150,000 prototype istockphotos

6 | Crain’s New York Business | June 9, 2008 fp template.qxd 5/27/08 2:20 PM Page 1

The American Jewish Joint Distribution Committee HIAS (Hebrew Immigrant Aid Society) Montefiore Medical Center

Associated Camps – Block & Hexter Vacation Center Hillel: The Foundation for Jewish Campus Life Mosholu-Montefiore Community Center

Association of Jewish Family and Children’s Agencies Isabella Freedman Jewish Retreat Center The Mount Sinai Medical Center

The Barry and Florence Friedberg Jewish Community Center Jackson Heights Elmhurst Kehillah National Foundation for Jewish Culture

Bensonhurst Council of Jewish Organizations The Jewish Agency for Israel NCSJ: Advocates on behalf of Jews in Russia, Ukraine, the Baltic States & Eurasia Berkshire Hills-Emanuel Camps Jewish Association for Services for the Aged New York Association for New Americans Beth Abraham Health Services Jewish Board of Family and Children’s Services New York Board of Rabbis Beth Israel Medical Center Jewish Child Care Association of New York New York Legal Assistance Group Blythedale Children’s Hospital The Jewish Community Center in Manhattan 92nd Street Y Board of Jewish Education of Greater New York Jewish Community Center of Mid-Westchester North Shore-Long Island Jewish Health System Bronx House Jewish Community Center Jewish Community Center of Staten Island Northeast Queens Jewish Community Council Bronx Jewish Community Council Jewish Community Center of the Greater Five Towns Parker Jewish Institute for Health Care and Rehabilitation Camp Dora Golding Jewish Community Center on the Hudson Queens Jewish Community Council Camp Louemma Jewish Community Centers Association of North America Ramapo for Children Camp Oakhurst/New York Service for the Handicapped Jewish Community Council of Canarsie Riverdale Jewish Community Council Jewish Community Council of Kew Gardens Camps Mogen Avraham, Heller, Sternberg & Richmond Hill Riverdale YM-YWHA Central Queens YM & YWHA Jewish Community Council of Kings Bay Rosenthal JCC of Northern Westchester Concourse-North Bronx Jewish Community Council Jewish Community Council of Mount Vernon SAJES Conference of Jewish Organizations of Nassau County Jewish Community Council of Pelham Parkway Samuel Field Y Co-op City Jewish Community Council Jewish Community Council of the Rockaway Peninsula Selfhelp Community Services NEVER HAS A SINGLE GIFT DONE SO MUCH FOR SO MANY.

Council of Jewish Organizations of Flatbush Jewish Community Council Sephardic Community Center of Washington Heights and Inwood Crown Heights Jewish Community Council Shorefront Jewish Community Council Jewish Community Relations Council of New York DOROT Shorefront YM-YWHA of Brighton-Manhattan Beach Jewish Council for Public Affairs East Meadow Jewish Community Relations Council Sid Jacobson Jewish Community Center Jewish Council of Yonkers Edith and Carl Marks Jewish Community House Suffolk Council of Jewish Organizations of Bensonhurst Jewish Education Service of North America The Suffolk Y Jewish Community Center The Educational Alliance The Jewish Home and Hospital Lifecare System Surprise Lake Camp F.E.G.S. Health and Human Services System Jewish Telegraphic Agency United Jewish Council of the East Side Flushing Jewish Community Council Joint Passover Association Usdan Center for the Creative and Performing Arts Gurwin Jewish Nursing and Rehabilitation Center Kings Bay YM-YWHA Westchester Jewish Community Services Hebrew Educational Society Maimonides Medical Center Westchester Jewish Conference Hebrew Free Burial Association Metropolitan Council on Jewish Poverty YM-YWHA of Boro Park Hebrew Free Loan Society Metropolitan Jewish Health System YM & YWHA of Washington Heights & Inwood Henry Kaufmann Campgrounds Mid-Island Y Jewish Community Center

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winter gales are tough on frozen Korea-based company expects to day. Berrywild joins Flurt, which treat purveyors. So are its retail real post calorie counts in each of its has locations in Murray Hill and Yogurt shops hit NY estate prices. five New York locations, as well as Battery Park. Too much competition was the in the additional dozen Big Apple The outer boroughs are scooping Continued from Page 1 er 16 Handles, a yogurt store that’s driving force behind Tony Park’s re- shops it plans to open before the end out their own niche in the yogurt more expanding to do. The bor- launching in the first week of July,has cent decision to focus on marketing of the year. market. Last year, Eks opened in oughs are getting in on the act, too, taken over a space on lower Second his product,Yolato,to supermarkets Williamsburg, and though the $5 with local ventures like Öko Frozen Avenue that was previously operated and delis. Though he will keep his Truth in advertising? price for an average serving is steep, Yogurt & Tea in Park Slope, Brook- by a Cold Stone Creamery shop. eight existing shops and possibly “customers will always be will- the neighborhood lacks sweet alter- lyn, which launched last May. Even Tasti D-Lite, the original franchise the brand, Mr. Park has ing to spend what they need to in or- natives—for now. On the other side “We have regular customers,”says low-fat frozen dessert, is feeling the begun selling boxes of Yola- der to maintain their of Brooklyn, Öko Frozen Yogurt & Helen Lee, one of Öko’s founders. pressure. The brand recently added to frozen yogurt bars, priced health,” says Mr. Kim. Tea gets its yogurt from a local sup- “They’re fanatical about it.” a green tea flavor,common at frozen at $3.99, to Gristedes in 15% Though some customers plier in Queens and promotes an The brands are riding the healthy yogurt shops, to its roster in an ef- New York and New Jersey. INCREASE question the low calorie and eco-friendly angle with spoons eating trend. Their new breed of fort to battle its new rivals. He hopes to sell packaged in U.S. frozen fat counts—one Los Ange- made of potatoes, floors containing frozen treat uses lightly sweetened bars and pints in supermar- yogurt les man went so far as to sue linseed oil and walls of bamboo. Shakeout ahead production cultured yogurt and real fruit top- kets nationwide by the end since 2001 Pinkberry last year for not Öko’s second location opens on pings, giving consumers a license to but with so many of the fro-yo of the year. selling actual frozen yo- Wednesday in the Cold Stone indulge. brands in the mix, there’s bound to “The grocery and supermarket gurt—many more are lining up for a Creamery location on Second Av- Indeed, frozen yogurt produc- be a shakeout. business is a lot more profitable,” he cup, with toppings to boot. enue between East Eighth and East tion in the United States has jumped “Everyone will do well through says. “In a store, you have to invest Supply answers the demand; Ninth streets in Manhattan. 15% since 2001, while the produc- the summer and be able to sustain thousands of dollars.” Pinkberry opened its 13th New In spite of all the action, owners tion of regular ice cream has through the fall,” says Andrew His competitors don’t seem to York location last week. Local remain optimistic about their dropped 2% during the same time Moger, president and chief execu- mind the hefty investment when restaurateur Sam Marelli, who al- prospects. “Competition is good for period, according to the U.S. De- tive of Branded Concept Develop- they’re seeing hot returns. A Red ready owns two seafood eateries you; it keeps you strong,” says Mr. partment of Agriculture. ment. “But I’d be surprised if many Mango store, whose medium cup and a bagel shop, introduced Berry- Marelli. “New York is so big—the The new treat is becoming so of these places hold on for more than of yogurt and fruit averages around wild last summer in Murray Hill more the merrier!” popular that some of the ice cream two years.” 200 calories and costs about $6, and recently signed leases for two veterans, so in demand a few years Unlike California’s mild year- sees 600 to 1,000 customers a day, more locations. He says sales for his COMMENTS? ago,are getting frozen out.Newcom- round temperatures, New York’s says Chief Executive Dan Kim.The first shop average around $2,000 a [email protected]

by building sites, and the placement two engineering firms to help make of special monitors at locations with inspections, and it shifted eight in- CA crane rules eyed multiple hazardous safety viola- spectors from the special operations tions. team to examine cranes. Continued from Page1 crane is raised or lowered. Some officials believe those pro- The city has earmarked money to dergo a total mechanical inspection New York briefly required an in- posals don’t go far enough.Manhat- hire an additional 56 construction at least twice a year and that one of spector to be on site during such oc- tan Borough President Scott inspectors. But it is unclear when those examinations be conducted by casions after the crane accident in Stringer insists a complete overhaul they will start, how many will be as- an independent firm licensed by the March that killed five people. But of the Department of Buildings, in- signed to cranes,or even how quick- state. that is no longer mandated by the cluding a re-evaluation of its current ly they can be trained. The need for independent in- city. staff, is necessary. “It takes years to learn to become spections was highlighted last week The good news about Califor- Acting Building Commissioner a good inspector,” says Mr. Barth. when the acting chief inspector for nia’s gold-standard regulations is Robert LiMandri declined to be in- While New York City has some bloomberg news cranes and derricks was charged not simply that they work in terms MOUNTING TOLL: May 30 crane collapse. terviewed for this story. of the toughest construction regula- with accepting bribes to recertify of saving lives,but that they have ac- Concerns have mounted in re- tions in the country,experts say safe- cranes that he had not actually in- tually paid off for the construction cent years as demands on the agency ty regulations must be improved. spected. James Delayo was also industry. the industry learned the new stan- have soared along with construction The human cost of construction ac- charged with accepting bribes for “Initially, it was the same old dards, the savings from the dramatic activity. In the past five years, the cidents in such a densely populated passing individuals who had taken song and dance,” says Bo Bradley, decrease in accidents has more than number of permits for buildings city is just too high. the crane operator exam,whether or director of safety,health and regula- outweighed any additional expenses. skyrocketed 75% in Manhattan. “Places with a lot of open space not they actually passed. tory services at the Associated Gen- Over the same period, the num- are more forgiving,” says Robert “Owners of cranes will let things eral Contractors of California. Pushing new rules ber of crane inspectors declined by Peckar,a founding partner of Peckar slide because they cost money [to “Everybody thought that [the last week, New York City intro- one—to a total of eight—but three & Abramson, a law firm that spe- fix],” says Thomas Barth, owner of changes] would shut down the in- duced numerous initiatives de- of those positions are vacant. That cializes in construction and real es- Barth Crane Inspections. dustry and that they would be too signed to improve construction leaves only five inspectors to exam- tate. “There is no forgiveness in California also mandates that an expensive.” safety. Those measures include a ine the nearly 246 cranes working in New York City.” inspector or a manufacturer’s repre- Ms. Bradley notes that although system to track safety violations by the city. In the aftermath of the sentative be present whenever a costs increased in the beginning as individual companies instead of just March crane collapse, the city hired COMMENTS? [email protected]

forced 3,330 New York City homes found that industry efforts to pre- plete loan workouts. While the into foreclosure auctions in the past vent unnecessary foreclosures were number of borrowers receiving Mortgage workouts year. not keeping pace with the rising rate modifications has increased, the The number of auctions in of homeowners in trouble. gains have been matched by an in- Continued from Page 1 300% increase from the first quarter New York City declined for the The study, which analyzed data creasing level of delinquent loans, foreclosure auctions in the city last of 2007. second consecutive month in May from October through January, the report said. month climbed 50% from year-ear- Since October 2006, HSBC has and was down almost 5% from April found that 7 out of 10 distressed lier levels. And lis penden filings— modified 11,900 loans nationwide, levels, the PropertyShark.com re- borrowers were not on track to com- COMMENTS? [email protected] the formal notices that begin the worth $1.9 billion. Option One re- port shows. foreclosure process—skyrocketed cently created a Homeownership Even so, some housing activ- 70% from the previous month, ac- Preservation Office. WaMu has be- ists remain skeptical. They worry CANCER VICTIM GETS AN ASSIST cording to a report released last gun meeting with distressed bor- that the workouts are more cos- week by PropertyShark.com. rowers in monthly seminars,and has metic than substantial, providing GEORGE MASCIA was recuperating from esophageal and stomach cancer In an effort to contain the mort- sent out more than 15,000 educa- short-term relief for borrowers when his worries suddenly shifted from getting healthy to saving his home. gage crisis, nonprofit groups and tional DVDs to customers already without altering the structure of The 6.9% introductory rate on his mortgage reset, and the 70-year-old government agencies have em- in foreclosure to explain their work- their loans. Bronx resident saw his monthly payment balloon 40%, to $3,500. barked on aggressive efforts to edu- out options. “We hope for and we welcome Additional increases would soon bring the rate to 13.5%, or $4,500 a month. cate homeowners about ways to servicers being more flexible, but In February, Mr. Mascia’s three-story brick home went into foreclosure. keep their property, and to encour- Bankers’ boost I’ve yet to see evidence that that is “I put myself in such a desperate hole that I wasn’t able to afford the age the banking industry to assist “there is an aggressive out- happening,” says Josh Zinner, co- payments,” he says. those who are in danger of losing reach going on,” says Michael director of the Neighborhood Eco- But Mr. Mascia did not lose his home. With the help of state Sen. Jeff their homes. Smith, president of the New York nomic Development Advocacy Klein, he met with Wells Fargo and struck a deal that allowed him and his Citigroup completed 20,000 Bankers Association. “Our mem- Project. “We want to see more evi- wife, Sylvia—who suffers from acute emphysema—to stay put. He negotiated loan workouts across the country bers are reaching out to distressed dence that these are real, affordable a fixed rate that carries a payment of $2,580 a month, a figure he can afford. during the first quarter, a 177% in- borrowers.” modifications over the long term.” “They were able to work out a deal I never thought I would get,” Mr. Mascia crease over the same period a year Early indications suggest that An April report by the State says. “It can be done.” earlier. In New York state, the bank the rise in workouts is starting to Foreclosure Prevention Working completed about 1,000 workouts, a chip away at a loan crisis that has Group, a multistate task force,

8 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 9 6/6/2008 3:01 PM Page 1

City losing conservation battle

Continued from Page 2 ers—and an ever-growing appetite plank in the mayor’s PlaNYC. His Despite major efforts by Mayor for air conditioning, consumption is blueprint predicted uncontrollable Michael Bloomberg and state offi- soaring. costs—and possible shortages as cials to get people to cut back on Between 1997 and 2007, elec- early as 2012—if its recommenda- electricity consumption, too many tricity use increased 23% in the city, tions were not adopted.The city ar- New Yorkers agree with Dr. Dill- while the population grew at less gues that conservation is a critical man. Between the proliferation of than half that rate, according to step in liberating it from its oldest, electronics—from large-screen TVs Consolidated Edison. most polluting power plants. to cell phones to laptop comput- Energy efficiency is a central Though PlaNYC’s efficiency program doesn’t aim to roll back en- ergy usage, it does hope to curb the CON ED READY FOR POWER SURGE rate of growth. Last year, the city consumed 62,591 gigawatts of elec- CON ED SAYS it is in good shape to meet energy demand this summer—and tricity, according to Con Edison, a not repeat its performance in the 2006 blackout in Queens. new high despite a relatively cool The utility says it has enough generating capacity to handle projected summer. peak demand of 13,775 megawatts. It had predicted a peak of 13,575 Since PlaNYC was released in ap images megawatts for last summer. But the season turned out to be relatively cool, April 2007, the city has invested ENERGY GUZZLERS: The new generation of TVs, with their larger screens, consume more and demand maxed out at just 12,807 megawatts. $80 million to make city buildings electricity than their predecessors and are contributing to increased electricity usage in New York. Con Edison says it has spent $1.7 billion in system upgrades and more energy-efficient, and 10 uni- improvements, 21% more than last year. The money has gone into new versities here have pledged to get substations, underground cables and computer equipment to enhance 30% of their energy from renewable Ashok Gupta, a director at the And Con Ed’s 13% rate hike may reliability. Over the next three years, the utility plans to invest $5.2 billion on sources. environmental advocacy group Nat- seem small compared with increas- its distribution system, which was blamed for the outage two years ago. New York state offers an array of ural Resources Defense Council,ac- es in the price of gasoline and home That infrastructure work is scheduled to be funded in part by a three-year, incentives to encourage the pur- knowledges that residents don’t heating oil. $1.67 billion rate hike that Con Ed proposed last month. There’s no chase of energy-efficient appli- have a strong economic incentive to It represents a 5.8% rise in distri- guarantee that the state will approve it, however. State regulators pared down ances. Most programs are offered in conserve. bution costs that regulators ap- the utility’s previous rate hike request of $1.2 billion to $425 million. conjunction with Con Ed, which proved this spring and a 7.4% in- Cost not a factor The company argues that the increases pay for improvements that allow it pledged to spend $306 million on crease for the cost of energy, which to respond more quickly to a crisis, but its many critics aren’t buying that. them through 2015. “electricity is such a small part of is smaller than that for each of the “They have not dedicated nearly enough to improving conservation and But officials are fighting an up- the price puzzle for so many people,” past two years. Con Ed says its efficiency and infrastructure,” says Assemblyman Michael Gianaris, whose hill battle. When a gallon of gaso- Mr. Gupta says. “They like to com- hedging program has held that fig- plain about their energy bill, but ure down this year. Queens district bore the brunt of the 2006 blackout. “Now they’re trying to line costs $4, telling consumers that using fluorescent lightbulbs will without it they wouldn’t have the dip into ratepayers’ pockets to make up the difference.” save them $107 over nine years just ability to use things they want to COMMENTS? does not resonate. use.” [email protected]

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VIEWPOINT Mayor Mike and term limits editor in chief Rance Crain publisher, vp Jill R. Kaplan ew yorkers think Mayor Michael Term limits—all elected city officials are limited to two EDITORIAL Bloomberg is doing a superb job, according to consecutive terms—were adopted because entrenched editor Greg David every poll taken in the past year, including one incumbents create a destructive hardening of the political managing editor Robert Hordt deputy managing editors Valerie Block, the mayor himself recently commissioned. If he arteries, preventing new people and new ideas from Erik Ipsen were matched up against the likely candidates surfacing.Those holding jobs inevitably become less contributing editors Frederick P. Gabriel Jr., Elizabeth MacBride in the upcoming mayoral election, he’d come out on top, responsive to their constituents.The escalating cost of columnist Alair Townsend N senior reporters Theresa Agovino, hands down. But just as significant is that voters remain rock- campaigns and the city’s public financing system have made Aaron Elstein, Erik Engquist, Lisa Fickenscher, solid in their support for term limits, meaning they are will- challenging an incumbent even more difficult than when Matthew Flamm, Samantha Marshall, ing to deny themselves their preferred choice in 2009.The term limits were first adopted in 1993. Miriam Kreinin Souccar reporters Barbara Benson, Amanda Fung, citizens have gotten the situation just right, as they often do. Politically minded business executives in particular blame Daniel Massey, Adrianne Pasquarelli, The mayor has become such a dominating figure in New term limits for the leftward drift in the city.They long for Hilary Potkewitz, Gale Scott, Matthew Sollars restaurant critic Bob Lape York politics that his every move, and every phrase, is the days when they art director Steven Krupinski scrutinized in a way usually reserved for Hollywood could count on deputy art directors Carolyn McClain, Term limits Daniel Mednick celebrities. The New York Times even devoted front-page longtime stalwarts in staff photographer Buck Ennis space recently to divine whether he had been in a particularly should be the City Council to copy desk chief Wendy Zuckerman copy editors Michele Arboit, bad mood of late. protect their interests. Thaddeus Rutkowski This obsession has now combined with growing worries extended, Of course, the grease research editor Denise Southwood www.crainsnewyork.com about the weakening economy to make people fearful of not repealed that cemented that web producers Kira Bindrim, what will happen if he’s no longer at the helm. Few believe loyalty was campaign Elisabeth Butler Cordova that the leading mayoral candidates—City Council money, not political EDITORIAL AND ADVERTISING OFFICES Speaker Christine Quinn, city Comptroller William 711 Third Ave., New York, NY 10017-5806 affinity—a distasteful editorial: 212.210.0277 Fax 212.210.0799 Thompson and Rep. Anthony Weiner—measure up to Mr. system and one made advertising: 212.210.0259 Cable craincom nyk Bloomberg. impossible by public financing. Fax 212.210.0499 Conveniently forgotten amid this angst is that Mr. Anyone who wants to know what the end of term limits Entire contents ©copyright 2008 Crain Communications Inc. All rights reserved. Bloomberg wasn’t seen as the city’s savior in 2001. In fact, he would bring needs only to gaze northward to Albany, where ®CityBusiness is a registered trademark of MCP won the election by fewer than 50,000 votes only because of legislators remain in place for decades.This state of affairs Inc., used under license agreement. the fears generated by the Sept. 11 terrorist attacks, the racial TO SUBSCRIBE: has fostered a climate in which special interests always Call 888.909.9111; fax 313.446.6777. divisions in the Democratic Party following a bitter primary, prevail. In fact, the situation is so bleak that important issues $3.00 a copy, $59.79 one year, $109.79 two years. and one of the worst campaigns ever by opponent Mark like congestion pricing are never even voted on because www.crainsnewyork.com Green.The mayor’s first year was also more than a little legislators are afraid to take stands on controversial issues. ADVERTISING AND MARKETING advertising director Jeff Adler rocky—remember endless concern about the “out-of-touch This is democracy? senior account manager billionaire’’ and record low approval ratings—but he grew Term limits shouldn’t be repealed in New York City; they William E. Squitieri account executives into the job. should be extended to Albany. And if the mayor wants to Andrew Carlin, Robert Christiaanse, Irene Irvill, If there had been no term limits, Rudy Giuliani might remain in public life, as he mused last week, he should run Courtney McCombs western account manager have won a third term in the aftermath of the terrorist for governor. His backbone and policies are needed there. Ellen Mazen (Los Angeles) 323.370.2477 attacks, and that’s where any discussion about weakening or sales manager, classified print & online John Gallagher abolishing term limits should begin. COMMENTS? [email protected] newsletter product manager Catherine Evans Gittens sales coordinator, print & online Lulé Haznedari sales coordinator Anita Perrino LETTERS TO THE EDITOR credit Pat Grondziak 313.446.6082 marketing director Amy Crossman marketing manager Jill H. Bottomley marketing coordinator Jenny Mashberg circulation manager Andrea Richardson assistant circulation manager Dangers of Hillary as running mate Rosalie Ford general manager, interactive CHOOSING HILLARY CLINTON is the look ineffective. He would Republican John McCain as in that way, when the Marc Minardo only chance Barack Obama has of have to function while president, they should choose superdelegates realize Obama NEW YORK PRODUCTION winning the presidency (see Crain’s constantly looking Hillary for vice president. cannot be elected, they can change production and pre-press director Online Poll, Page 11). over his shoulder. t. maslonka their votes and make the ticket Michael Corsi k. holmes karl schmid Clinton-Obama, which would advertising production manager THE BOTTOM LINE is that probably be unbeatable. Marilyn DeMilta CHOOSING MRS. CLINTON as the HOW CAN HILLARY Hillary Clinton is a lunatic! mark roth PUBLISHED BY CRAIN COMMUNICATIONS INC. Democrats’ vice presidential Clinton promote unity She needs to go away! chairman Keith E. Crain candidate would be a huge when she is all about tina gray HILLARY IS TOO POLARIZING. Obama president Rance Crain mistake. She and her husband divisiveness? If the wants to run a campaign of secretary Merrilee Crain would do everything within their Democratic SEN. BARACK OBAMA inclusion and reconciliation, so she treasurer Mary Kay Crain should unite with executive vp, operations William Morrow power, and probably beyond it, to Party wants to doesn’t fit in. senior vp, group publisher Gloria Scoby make President Barack Obama elect Clinton because phil burke group vp, technology, circulation, manufacturing Robert C. Adams bloombergnews vice president/production & manufacturing David Kamis WHAT’S COMING UP IN CRAIN’S? chief information officer Paul Dalpiaz corporate circulation director Health Top-paid Top minority-and City Small Education Patrick Sheposh care CEOs women-owned Facts business special founder G.D. Crain Jr. (1885-1973) report list business lists issue report report chairman Mrs. G.D. Crain Jr. (1911-1996) June 16 June 23 June 30 July 7 July 14 July 21

10 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 11 6/5/2008 8:20 PM Page 1

a few well-heeled people pales in comparison to the rip-offs, costing billions of dollars, that directly af- fect our tax and service levels. Let’s vent our spleen where it matters! A good place to start is by taking a look at the generous pensions and lavish retiree health insurance re- ceived by New York’s civil ser- vants—benefits that far exceed what most private employers offer. An even bigger affront is the fact that public-employee unions are pushing for more, and they’re likely to get more from pliant state legis- lators who do their bidding in ex- change for campaign contributions. The New York Times recently re- vealed that legislators looking for official cost estimates on various benefit liberalizations relied upon an actuary hired by the unions, who systematically misrepresented the figures. This year, nurses and midwives john h.john howard employed by New York City are seeking the right to retire as early as www.amper-pc.com age 50. A measure pending in Al- bany would allow this. The move would cost the city between $60 mil- Putting our wrath lion and $100 million a year and ex- acerbate an already acute nursing shortage, with no benefit to the city where money is or its residents. Another bill gathering steam in Albany would enable a large group don’t share the high dudgeon of some commen- of city workers to retire at age 55 tators who inveighed against MTA board members for rather than age 62, for no good rea- son other than the fact that it means accepting free travel passes, even though many of them seven fewer years of work for these are (gasp) rich and have multiple personal vehicles. Still, privileged individuals. This stinker given the ruckus and Attorney General Cuomo’s find- would cost city taxpayers $200 mil- ing that the practice was illegal, I’m glad that MTA Chair lion a year. I Public-employee unions are also Dale Hemmerdinger and his colleagues relinquished their pushing hard for state legislation that would make it virtually impos- passes without a fight. ification from con- sible to scale back the liberal health However, the flap sumers, unions, politi- insurance provided to public re- should make you won- cians and commenta- tirees. Meanwhile, few private em- der why Mr. Hem- tors of every stripe. No ployers offer such rich coverage. merdinger and others number of E-ZPasses The costs of pensions and fringe agree to serve without can compensate them benefits are squeezing state and lo- pay on governmental for their public service. cal budgets and forcing reductions boards like this. They We ought to be cele- in valuable services. Advocates are give up a lot.They must brating the fact that upset that the mayor has proposed reveal basic facts about some successful (and cuts in education to balance the their finances, tolerat- even rich) businesspeo- budget.We can thank the contribu- ing an important loss of ALAIR ple are willing to share tion-grubbing bunch of legislators privacy. They commit a TOWNSEND their expertise on these we have representing us in Albany huge amount of time, at boards. In case a public for that. Stop them before they the expense of their per- expression of gratitude strike again! sonal lives and private businesses. is meaningful, I offer it now. And they subject themselves to vil- The issue of free travel passes for COMMENTS? [email protected]

CRAIN’S ONLINE POLL SHOULD BARACK OBAMA CHOOSE HILLARY CLINTON AS HIS RUNNING MATE? Number of respondents: 480 Yes. It would unify the Date of poll: June 4 Democrats and give No. She and Bill Clinton them the best shot at would overshadow the White House .24% 41%. Mr. Obama and make him appear weak Yes. Her background .14% in foreign affairs

would counteract 21%. No. There are too many charges that Mr. hard feelings between Obama doesn’t have them to run an effective enough experience campaign

For readers’ comments, see Letters to the Editor on Page 10. bloomberg news CNYB 06-09-08 A 12 6/6/2008 1:25 PM Page 1

Society of the State of New York. “It’s minor stuff,” Mr. Abrams says of the proposed reforms. He TORT REFORM Groups gang up THE INSIDER expects the report to be released BUSINESS GROUPS are forging a new attempt to counter the trial lawyers’ before the legislative session ends lobby. New Yorkers for Civil Justice Reform, recently renamed by Erik Engquist and Matthew Sollars June 23. NYTortReformNow.org, has hired Mark Kriss as executive director, tapped former state Senate staffer Rory Whelan to handle public relations and revamped its board of directors. The Business Council of New York State and Con Ed fights the state chapter of the National Federation of Independent Businesses the mayor helped orchestrate the reorganization. Getting crumbs on One of the group’s top priorities this legislative session is to block a bill opposition is building to the that would let public pension funds, mutual funds and institutional investors medical malpractice Bloomberg administration’s plan to use the Martin Act the way that Eliot Spitzer did against Wall Street. “Instead restrict the city’s Industrial and of one overzealous Attorney General Spitzer, we’re going to have a flood of hen former Gov. Eliot Commercial Incentive Program. trial lawyers engaged in a feeding frenzy on the securities industry,” says Mr. The city is asking Albany to Spitzer convened a task Whelan, a former chief of staff for state Sen. Owen Johnson, R-Long Island. make retail projects south of 59th The measure is sponsored in the Senate by Tom Libous, R-Binghamton, force to solve the Street and north of Murray Street W and in the Assembly by Richard Brodsky, D-Westchester, a former candidate problem of soaring medical ineligible for ICIP,reasoning that for attorney general. The bill passed 148-0 in the Assembly but failed in the malpractice costs, hopes ran high they hurt existing businesses, create little economic activity and don’t Senate. It has since been revived and is being that he could achieve a need incentives. It also wants to pushed in both chambers. breakthrough similar to the one he eliminate utilities. ICIP is set to TortReformNow is also pushing a bill by bloomberg news pulled off in workers’ expire June 30. state Sen. Dale Volker, R-Wyoming County, Consolidated Edison is fighting to end double-dipping. The legislation has compensation. Earlier this year, the task force’s chairman, been waylaid since Assemblywoman Eric Dinallo to preserve its access to ICIP.The Insurance Superintendent (above), suggested that utility says it could lose $700 Helene Weinstein, D-Brooklyn, combined he had found the key to winning the consent of trial lawyers for million in future property tax it with a bill that is supported by trial reform: Use soaring insurance rates to create a public uproar. breaks, resulting in costs that would lawyers but opposed by health insurers. So much for high hopes. Now it appears the task force is be passed on to customers. (Rate The reform effort is also backed hikes to cover utilities’ property by the New York Farm Bureau, the unlikely to offer much relief to anyone.The report’s taxes are routinely granted.) American Insurance Association, recommendations will probably just include rules requiring And Steven Spinola, president of doctors, contractors and developers. disclosure of names of expert witnesses, an agreement to the Real Estate Board of New York,

says that the proposed changes to istockphoto protect from discovery internal hospital staff discussions at ICIP are too drastic but are preferable to letting the program attorney. He informed District agreements with the city.The bill quality assurance meetings and laws back to finding any way to hold lapse. Attorney Robert Morgenthau, his has 13 co-sponsors, but Speaker allowing doctors to apologize to down insurance rates even as “We’re going to need it,” he says. former boss, late last month. Mr. Christine Quinn hasn’t taken a patients without their statements malpractice payouts soar.The Davis, who had collected roughly position. being used against them in court. Insurance Department is likely to $600,000, says that having to “We’re going to get crumbs,” go along with a Senate plan to use Davis exits fundraise played a part in his says Lorraine Ryan, special counsel, Health Care Reform Act funds to D.A. contest decision but that the contest’s Paid leave regulatory affairs, at the Greater underwrite part of doctors’ duration was also a factor. “I didn’t has some life New York Hospital Association. premiums, says Rick Abrams, rich davis has pulled out of the want to spend the next 18 months Indeed, Mr. Dinallo may be executive director of the Medical race for Manhattan district devoting myself so exclusively to a the working families party is political campaign,” he says. optimistic that paid family leave will pass the state Legislature this session.The party is focusing Push-back advocacy efforts on Long Island Equal Opportunity Lender on prevailing wage and Queens, where GOP senators are vulnerable in the November half of the 94,000 low-income election. Gov. David Paterson’s staff is units planned over the next five pushing the measure.That could At Atlantic Bank... years won’t be built if the City provide the impetus that it lacked Council passes a prevailing wage last year, when Eliot Spitzer’s focus on Excellent service comes bill, according to an analysis by the campaign finance reform eclipsed New York State Association for the rest of progressives’ agenda. with a price. Zero. Zip. Zilch. Affordable Housing. The Business Council of New The association is trying to kill York State is leading the You’ve got to be passionate about your craft if you want to provide Councilman Mike McMahon’s Intro opposition, arguing that paid excellent service. At Atlantic Bank, our dedicated team of professionals 733, which would mandate family leave would leave small is passionate about what they do. That dedication translates to excellent prevailing wages for workers who businesses shorthanded and raise service for all our customers...at zero cost. For all your business build affordable housing under overtime costs. banking needs, visit a branch today. Our combination of service, convenience, and a complete line of financial products can help ensure the ultimate success of your business. THE LEAK this week from Mayor Michael Bloomberg’s camp about a possible • Avoid Checking Account Fees • Financing Options attempt to extend his term exposed an • EARN Premium Money Market Rates • Telephone Banking 2009 internal division. Aides sometimes float • Free Internet Banking* • Plus, much more! THE RACE TO SUCCEED stories to gauge public reaction to a • No Application Fees controversial idea without taking ownership of it, but this looked more like For additional information call: 1.800.535.2269 • www.abny.com MIKE an attempt to sabotage one. Clearly, some of the mayor’s aides are desperate for *For your online security, information provided will be verified by the Bank. Once the verification process is complete, your Free Online Banking and Bill Payment Account will be activated and ready for your use. No him to remain in public office at all costs. But others monthly service charges apply. A separate fee applies for optional services such as Money HQ®. Please talk to a believe that Mr. Bloomberg’s prospects, while branch representative or ask for our fee schedule for more details. uncertain, depend on preserving the Bloomberg brand—a politician who serves the public and not himself—and don’t want to see him jeopardize it. Extending city officials’ limit of two four-year terms has repeatedly proved unpopular in public Your partner for success opinion polls, so opponents in the mayor’s inner circle could have sent up the trial balloon knowing Nineteen convenient locations • Brooklyn • Manhattan • Queens • Westchester it would go over like lead. bloomberg news

12 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 13 6/5/2008 2:24 PM Page 1

REAL ESTATE DEALS Law firm consolidates in midtown ery next month. June 15 to 48 W. 37th St., between Björn Borg Dewey LeBoeuf The partners signed a 12-year Fifth and Sixth avenues, where it leases entire floor lease for 950 square feet at 2656 signed a 10½-year lease for 8,901 serving in SoHo Broadway, at West 100th Street. The square feet on the seventh floor. on Sixth Avenue; asking rent was $200 a square foot. The asking rent was $40 a square swedish tennis star Björn Borg is The Thai restaurant will be foot. bringing his athletic wear to SoHo, part of merger plan called Sura. The duo also own a Taylor & Ives, which specializes his first U.S. location. restaurant on East Eighth Street in annual reports, marketing mate- Björn Borg Inc. recently signed a 89 CROSBY ST. scores a lease deal with aw firm Dewey called Cafetasia, and another in rials and Web site design, needed two-year sublease for 2,000 square athletic-wear firm Björn Borg Inc. LeBoeuf is leasing an- Chicago. more room for its growing opera- feet at 89 Crosby St., between Prince other 29,400 square “We’ve worked together so long tions. The firm’s management was and Spring streets. The company feet—the entire 43rd that we know each other like hus- also attracted to the building’s will use the ground-floor space for last month. Lucia Chen owns the floor—at 1301 Sixth Ave., band and wife,”says Mr.Sopachana. proximity to Penn Station and retail and showrooms. 98-year-old building. Lbetween West 52nd Though it will offer Grand Central Terminal, as well as The asking rent was $90 per Although this is Björn Borg’s first and West 53rd delivery, Sura will the Port Authority Bus Terminal. square foot, considerably cheaper American location, the company streets, bringing its focus primarily on “The building is very nicely lo- than the rents along the neighbor- operates shops in a dozen interna- total occupancy in fine dining and will cated, and the price is right, too,” hood’s Broadway shopping corridor. tional markets. Its fashion collection the building to have decor similar says David Levy, a principal at “It’s a little more of a destination includes casual wear,such as hoodies about 300,000 to the Harry Potter- Adams & Co. who represented the space,” says Kristin McCann, a Sin- and T-shirts,as well as swimsuits and square feet. inspired interior of landlord, Forty Eight Thirty Seven vin Realty broker who, along with underwear. Dewey LeBoeuf, Cafetasia. Associates. colleague Roxanne Betesh, repre- Although Mr. Borg played his fi- which represented “The gentlemen Chris Mongeluzo, a senior sented both the tenant and the land- nal tournament 27 years ago, he still itself in the transac- liked this location a managing director at Newmark lord in the deal. has legions of fans.During his career, tion, is subleasing lot because of the Knight Frank, represented Taylor Björn Borg is subleasing the he won five Wimbledon tourna- the space from in- new buildings going & Ives. space from Gawker Media, which ments in a row and six French Opens. vestment firm Dres- up, like Ariel East —tommy fernandez moved its office out of the building —elisabeth butler cordova dner Kleinwort, and Ariel West,” which was repre- says Lori Peddrick sented by CB of Rice & Associ- Richard Ellis Inc. ates, who negotiat- The new lease ex- ed the lease for the tends through 2016. tenants. The firm intends to Scott Auster and move into the space Brad Cohen of Rip- next month. The 1301 SIXTH AVE. will house lawyers co Real Estate asking rent was not for the merged Dewey LeBoeuf. Corp. represented available. building owner The move is part Argo Corp. of the firm’s plan to eventually house —adrianne pasquarelli all of its 620 New York-based lawyers in the tower, known as the Crédit Lyonnais Building. Penthouse owner Dewey LeBoeuf was formed last moves downtown year after Dewey Ballantine, which was headquartered in the Sixth Av- the owner of Penthouse magazine enue building, merged with signed a 10-year lease for roughly LeBoeuf Lamb Greene & MacRae. 16,000 square feet at 20 Broad St.,be- LeBoeuf was based at 125 W. tween Exchange Place and Wall 55th St., where the firm still has Street. around 225,000 square feet. Jeffrey FriendFinder Networks Inc., Nace, a partner at which also operates Dewey LeBoeuf, says social networking the firm hopes to sub- Web sites, plans to lease the space on move into its new of- West 55th Street or fice on the 14th floor return it to the land- in September. The lord so all the lawyers asking rent was $46 a can be in the Sixth square foot. Avenue location by Marc Bell, chief the end of the first executive of Boca quarter of 2009. Raton, Fla.-based The Crédit Lyon- FriendFinder, says nais Building was for- the new space is bet- merly owned by Har- ter laid out for the ry Macklowe and is company’s needs than now for sale. Mr. 20 BROAD ST. has a layout that its current office at 2 Macklowe defaulted fits FriendFinder’s needs. Penn Plaza. He also on the loan he used to liked the downtown purchase it and six location. other buildings, and had to relin- Kenneth Salzman, a broker at quish all seven towers to his lenders, Newmark Knight Frank, represent- a group led by Deutsche Bank. ed FriendFinder. CB Richard Ellis —theresa agovino Inc. brokers Bruce Surry and James Searl negotiated on behalf of the landlord, Vornado Realty Trust. Spicing things up —theresa agovino on Upper West Side sopanut sopochana and Phak- Firm has designs phoom Sirisuwat, who met seven on midtown years ago when they were working at Spice, a restaurant on University design communications firm Place, plan to open their latest eat- Taylor & Ives Inc. is relocating on

June 9, 2008 | Crain’s New York Business | 13 CNYB 06-09-08 A 14 6/6/2008 2:36 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

ECONOMIC SPOTLIGHT Another WSJ editor leaves Murdoch bill grueskin, deputy managing editor for news at The Wall Street Journal and WSJ.com, resigned after 13 years at the paper. He is leaving in the wake of Rupert Murdoch’s purchase of the paper and will become dean of academic affairs at the Columbia University’s Graduate School of Journalism. NY same-sex ruling the alliance defense fund,a Christian legal organization, is suing to stop New York from recognizing same-sex marriages legally performed in Massachusetts, Canada and other Airlines tackle fuel woes places where they are legal. SCRAMBLING TO STAY ALOFT as fuel prices soar, CONTINENTAL Zagat off the block AIRLINES INC. is cutting 3,000 jobs, about 6.5% of its force, married business partners and reducing its flights by a quarter. It wouldn’t say where the Tim and Nina Zagat called off cuts would be made, but many are sure to affect its key hub plans to sell their successful at Newark Liberty International Airport. Bucking the trend, entertainment-guide company six Economy Watch months after asking Goldman DELTA AIR LINES added six new international flights to its Sachs to help find a buyer.The NYC’s jobless rate remains below the U.S. level. Area food and beverage prices John F. Kennedy International Airport schedule, including couple plans to expand the rose 5.3% in the year ended in April, the biggest 12-month change since 12/90. hauls to Guyana, South Africa and Egypt. company alone. MARCH ’08 APRIL ’08 COMPARISON bloomberg news NY area inflation change +0.9% +0.3% +3.6%1 City cites eateries accused it of severe sexual and NYC unemployment rate 4.6% 4.5% 5.0%2 S&P warns of racial discrimination against the new york city Department NYC employment change +900 +1,200 +40,9003 more bank trouble female, black and Hispanic of Health and Mental Hygiene employees. More than 50 people started issuing citations to chain 1-NY area inflation change for the latest 12-month period. 2-U.S. unemployment rate for the lat- est month. 3-NYC employment change for the latest 12-month period. shares in Wall Street investment will receive reparations for restaurants that aren’t posting banks fell after Standard & Poor’s incidents reported during the last calorie counts on their menus, warned of write-downs ahead and nine years. although it will not fine the cut the credit ratings for Lehman eateries until July. NYC Hotel Stats Broadway Stats Brothers Holdings Inc., Merrill Cablevision leaders Average occupancy and room rate Attendance and gross fell in the first Lynch & Co. and Morgan Verizon buys Alltel climbed in April, PKF Consulting week of the season, which ended 6/1, Stanley. Analysts expect the firms agree to pay $34M reports, continuing to rebound after The League of American Theatres to report plunging earnings in the verizon wireless has agreed to the typical drop at the start of the and Producers says. Levels also were coming weeks. cablevision systems corp. has buy Alltel Corp. for $5.9 billion, year. Year-to-date averages topped below those for the same week in settled lawsuits stemming from a which would make it the largest those for the same period in ’07. ’07—down 7% and 6%, respectively. review of its stock options cellular carrier in the United Jay-Z practices for about $34 million. States. The firm would assume replaced Sixteen individuals, including $22.2 billion in debt in the deal, some current and former directors, bringing the total value to $28.1 def jam recordings are will personally pay back $24 billion. Together, they would tapped Shakir Stewart million, and the company’s insurer have 80 million subscribers. to succeed Shawn will foot another $10 million. “Jay-Z” Carter (right) as the record label’s Price flare-up Starrett to stay chief executive. He will affordable serve as executive vice new yorkers started paying the president and run one of highest cigarette taxes in the the owners of Starrett City have the most profitable labels nation when the state tacked on an retained Boston-based Recap within Universal Music additional per-pack tax of $1.25. Advisors to manage the sale of the Group. getty images The price hike is meant to massive Brooklyn complex.The discourage smokers and is company, which specializes in expected to generate an extra $265 affordable housing and operates as Ratings slashed million for the state annually. a division of Consolidated Capital IQ’s Weekly Deals Report at MBIA, Ambac Cigarette taxes will raise $1.3 American Services, plans to billion for the state this year. complete the sale in mid-July. TRANSACTION SIZE COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE bond insurers MBIA Inc. and —from staff reports and Ambac Financial Group Inc. lost Sex scores big bloomberg news reports American Stock Transfer $1,000.0 Link Market Services Ltd. SB M&A their AAA credit ratings when & Trust Co. Manhattan Standard & Poor’s knocked both on silver screen [x+1] Inc. $16.0 Advanced Technology Ventures, GCI companies back two levels to AA. Manhattan Blue Chip Venture Co., The move was highly anticipated. sarah jessica parker carried the Hudson Ventures Sex and the City franchise to new BioSpecifics Technologies Corp. $1.3 Not disclosed GCI heights as the movie made $55.7 Lynbrook, L.I. Tavern fined million during its opening Wolet Capital Corp. n/a o3 Capital Advisors Pvt. Ltd. SB M&A $2.2 million weekend.That was the best debut Manhattan ever for an R-rated comedy and Selected deals announced during the week of May 25 for companies headquartered in metro New tavern on the green agreed to bested Indiana Jones and the York. n/a Not available. GCI: Growth capital investment represents new money invested in a com-

pany for a minority stake. SB M&A: Strategic buyer M&A represents a minority or majority pay $2.2 million to settle a lawsuit Kingdom of the Crystal Skull for ap images acquisition of existing shares of a company without the participation of a financial buyer. in which the Equal Employment that film’s second weekend in ON THE BLOCK: Brooklyn complex Starrett

bekka lindström bekka Opportunity Commission had theaters. City is expected to be sold by mid-July.

14 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 15 6/6/2008 3:02 PM Page 1

is not convinced consumers are safe. He also sees other ethical dilem- Private firms introduce genetic testing mas. “What if someone is tested for the likelihood of developing a dis- ease like Huntington’s chorea?” asks Dr. Marion. “That’s a death sen- Companies face PREDICTING HEALTH tence.The information could lead to strict laws in New Sample genetic tests that can be a patient committing suicide.” ordered directly: He is also concerned about other York; critics have potential pitfalls. In addition to the G Blood-clotting disorders worst-case scenarios of people test- ethical concerns G Breast cancer ing unborn children and terminat- G Colon cancer ing pregnancies for frivolous rea- BY GALE SCOTT sons, the most practical concern is G Cystic fibrosis that people will put too much faith terry drotos had no idea what se- G Diabetes in the ability of tests to predict their crets her DNA might hold when she G Infertility future health. asked to have it analyzed by Navi- But Navigenics customer Ms. G Ovarian cancer genics Inc., a company that offers Drotos, who took part in the beta genetic testing to the general public. G Paternity testing for the company’s screening, Ms. Drotos, 53, never met the JUST BIOLOGY: Navigenics previews its genetic testing service at a cocktail party in SoHo. G Recurrent pregnancy loss says the news she got has set her woman who gave birth to her at age Source: DNA Direct mind at ease, and that it was unlike- 14 in a home for unwed mothers or ly she could have learned the infor- the sailor who fathered her. business has the potential to be sub- selors to meet the state’s legal re- mation any other way. The test “It’s always bothered me that I stantially bigger if a secondary mar- quirements. The company is also selor and pediatrician Robert Mari- showed she has a slightly higher don’t know anything about my med- ket could be developed.If customers working to get New York licensing on. He is concerned that life insur- than average risk of obesity, Type 2 ical history,” says Ms. Drotos, a sign waivers allowing their genetic for the California laboratory it uses. ance companies could refuse to in- diabetes and osteoarthritis. Redwood City, Calif., resident. data to be sold in aggregate to phar- sure people who have genetic Ms.Drotos feels knowing the re- Doctors,researchers and forensic maceutical companies and others, Ethical concerns indicators for developing heart dis- sults will definitely keep her health- scientists have been using genetic companies like Navigenics could but meeting the letter of the law may ease or Alzheimer’s. ier. “I’m in good shape, but I have a testing for years to let people know make more money. not be enough, industry critics say. While a new federal law called sweet tooth and now I’m really if they are carrying markers for Navigenics claims it is making Guarding the privacy of the in- the Genetic Information Nondis- watching what I eat,” she says. many different types of diseases, in- headway in New York. It says it now formation is a concern of Monte- crimination Act supposedly pro- cluding breast cancer, cystic fibrosis employs doctors and genetic coun- fiore Medical Center genetics coun- tects against such uses, Dr. Marion COMMENTS? [email protected] and diabetes. But now, private com- panies like Navigenics are entering the market,trying to cash in on peo- ple’s curiosity about their genetic medical makeup. More than two dozen companies have tried offering direct-to-con- sumer genetic testing services in New York state, mostly through the Internet. But as fast as they have set up, the state Department of Health has put them on notice that they are breaking the law. In New York, the tests must be ordered by a patient’s doctor. Out- of-state labs that perform them have to be licensed by New York. DOH officials have issued 26 cease-and- desist orders to such companies in recent months.Separately,the com- panies face a thicket of ethical issues over how the genetic information will be used, both by the clients who request it and by third-party agents like insurance companies. Targeting SoHo while some genetic-testing firms have given up, posting notices on their Web sites that their services are not available in New York state,oth- ers have said they would comply with the state’s regulations. Among them is Navigenics, a Redwood Shores, Calif.-based firm that offers to screen consumers for 18 different diseases or conditions for $2,500. The company decided New York City was a good place to test the waters, setting up a storefront in SoHo in April to promote its service. “We chose SoHo because we are looking for early adopters,” says Amy DuRoss, the company’s policy director. “SoHo has great energy, a reputation for innovative design and cutting-edge companies,” she adds. Of course,the city is also a major me- dia center, and the storefront open- ing resulted in coverage in the The New York Times and other outlets. No one knows how big a business genetic testing could be. Ms. DuRoss estimates the annual mar- ket for the industry nationwide at about $10 million. However, the

June 9, 2008 | Crain’s New York Business | 15 CNYB 06-09-08 A 16 6/5/2008 8:20 PM Page 1

Put another way, the notional NASA.Before that,he got a taste for value of credit default swaps is trading while attending Washington In latest transaction, roughly triple the market value of all University in St. Louis, where he the stocks listed on the New York used to buy unused meal plans near Stock Exchange. Creditex handled the end of the semester and then sell Creditex to be acquired $3.3 trillion worth of trades last them at a markup to fellow students. year, according to a presentation He helped launch Creditex in 1999 given to investors last week, after a stint as a trader at Deutsche Creditex is a pioneer in the suggesting it has about a Bank and Bankers Trust. Intercontinental Exchange will buy broker trading and processing of 5% share of the credit de- ICE revealed that Creditex last transactions known as credit fault swaps market. year had $13.3 million of earnings fall for Creditex’s co-founder and default swaps. These deriva- before interest, taxes, depreciation BY AARON ELSTEIN chief executive, Sunil Hirani, who tives, which help investors Trading up and amortization on $159.3 million was named a Crain’s “40 Under 40” bet on corporate defaults,be- mr. hirani was a soft- of revenue, compared with negative creditex group inc., a leading de- rising star in 2006. Upon the deal’s gan trading a decade ago and ware engineer at Lock- EBITDA of $1 million on $83.1 rivatives broker based in Manhat- closing in the third quarter, Mr. Hi- arenowa$62trillionmar- heed, where he helped million of revenue in 2006.The firm tan, agreed to be acquired by Inter- rani and other senior managers have ket, according to the develop systems for employs 188 people, including 101

continental Exchange for $625 been invited to stay with ICE,an all- International Swaps is brokers and support staff. n n million in stock and cash. electronic futures exchange based in e SUNIL HIRANI and Derivatives k of Creditex has c u COMMENTS? The deal represents a huge wind- Atlanta. Association. b been invited to stay with ICE. [email protected] ADVERTISEMENT Internet CLUB TECH OFFERS tax law IMPORTANT TECHNOLOGY attacked SKILLS TO AT-RISK YOUTH in NYS By Wayne Dawson Director, The Children’s Aid Society’s Dunlevy Milbank Boys & Girls Club Retailers challenge law covering sales, cut off affiliations

BY AMANDA FUNG Eight years ago, Bill Gates and sharing music and photos, our members build visited our Boys & Girls a sense of identity, con/dence and inclusion that the legal assault on New York Club in Harlem to launch enables them to explore the world in a positive way. state’s plan to collect sales taxes on In- Club Tech, an ambitious Club Tech’s digital arts program enables stu- ternet purchases continues to grow. partnership between Microsoft and Boys & Girls dents to express themselves creatively and learn Overstock.com Inc. last week Clubs of America aimed at offering young people new skills in Web design, digital photography, elec- filed a lawsuit challenging the law. the computing skills they need in an increasingly tronic music and video. One class posts video clips The move followed a similar action by Amazon.com, which filed suit technology-driven world. Today, more than 3,000 of Club basketball games on the Web, along with last month. Boys & Girls Clubs across the U.S. and on U.S. mili- game scores and player bios. College scouts have The Internet tax law, which be- tary bases worldwide have embraced the Club Tech watched those videos in the search for players to came effective on June 1, requires approach, providing computer access and technol- recruit. online retailers to collect taxes on ogy training to more than 1 million young people Club Tech has been successful because it has sales made to New Yorkers even if integrated technology into a proven model for help- they do not have a physical retail each year—many of them at-risk youth. store or factory in the state. New Our Club, known as The Children’s Aid Society’s ing today’s youth. Last week, Microsoft’s role in York makes the case that any retail- Dunlevy Milbank Boys & Girls Club, continues to this national effort—including its contribution of er that advertises on New York- provide important after-school activities such as US$153 million in cash, software and curriculum— based Web sites is establishing a swimming, basketball and leadership training, as was recognized at Boys & Girls Clubs of America’s physical presence in the state. well as education and counseling for previously annual Northeast gala here in New York City, where Salt Lake City-based Over- stock.com, which does not have incarcerated youth. But today, technology also plays Microsoft CEO Steve Ballmer accepted the Cham- New York operations and has no a central role in the activities of many of our Club’s pion of Youth Award for the company’s consistent plans to set up shop in the state, ar- 4,000 young members and their families. While and generous support. gues that the law is unconstitution- most other activities are optional, all members al under New York and federal pro- must take a three-month course in computing that visions, including due process includes interactive online tutorials on basic of/ce clauses in both constitutions and the More than 3,000 Boys & Girls Clubs across commerce clause of the U.S. Con- productivity skills such as how to use Microsoft® the U.S. are helping young people gain skills stitution.It asks the court to issue an Word and Excel®. for work and for life through Club Tech. injunction and declare the law un- The tech program isn’t just about helping boost constitutional. performance in school, although many members say “We love New York,” says the tech training has made learning more interest- Patrick Byrne, Overstock.com’s chairman and chief executive, in a ing and improved their grades. And it’s not just This year, as we celebrate the 50th anniversary statement. “But we had to choose about preparing for a job, although computing skills of our Harlem Club’s founding, Club Tech continues our New York customers over the are essential to such tasks as writing a resume to give new potency to our commitment to helping New York tax collector armed with and doing a job search online. Tech skills are also our youth develop the self-con/dence and skills an unconstitutional statute.” important because they excite and empower young they need to navigate the challenges of adoles- The retailer says it has discontin- people. By connecting with friends through e-mail cence and early adulthood. ued advertising on 3,400 New York- based sites because of the law. New York state estimates that the Internet tax will generate $50 million this fiscal year, ending June Learn more at microsoft.com/issues 30, and $73 million for the follow- ing year. © 2008 Microsoft Corporation COMMENTS? [email protected]

16 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 17 6/5/2008 6:47 PM Page 1

NEIGHBORHOOD JOURNAL Rockaways to rise above blight

ber,” Mr. Addabbo says. In the rest section.There, many people reacted tanTransporta- Taking buildings of the city, the requirement tops out with joy to last month’s news that tion Authority, to new heights could at 50%. the building would be getting such the New York While much of this seaside com- fencing soon, courtesy of Gov. Police Depart- spur economy; munity has enjoyed a real estate David Paterson. ment and the some fear crowding boom in recent years,the four blocks For years, residents of Bay Ridge city Parks De- in question have stubbornly re- Towers have been calling for better partment—all mained unaffected. security beneath their buildings, have responsi- or decades, the Rock- “Everybody agrees we have to do which sit on a deck over the Long Is- bility for secur- away section of Queens something to spur economic devel- land Rail Road at 65th Street in ing the site. has been the end of the opment and spruce up those Brooklyn. Last month, line for subway riders. blocks,” says Jonathan Gaska, the Numerous breaches in the fenc- the governor For almost as long, the district manager for Community ing around the train tracks have directed the ROCKAWAYS BUNGALOW BONANZA: The rezoning plan preserves the Farea around the train station has Board 14. “Is this the answer? I’m allowed homeless people to take LIRR, a sub- area’s low-rise flavor, but targets four seedy blocks for redevelopment. looked the part.Riders exiting at the not sure. But clearly, the zoning shelter underneath the towers. Res- sidiary of the A train’s final stop at Beach 116th that’s there now is not working.” idents argue that the situation poses transportation Street are greeted by the sight of —hilary potkewitz safety issues for the homeless as well authority,to install the new fencing to Meanwhile, the city’s Depart- burned-out buildings and vacant lots. as for those living in the buildings. keep people from entering the track ment of Homeless Services has Next week, the City Planning Several years ago, there was a fire right-of-way.In addition, the MTA stepped up its efforts to relocate the Commission will hold a hearing on Good fences make alongside the tracks, which also cut police will increase patrols in the area. homeless population. the latest attempt to improve the good apartments off phone and power service to the “The tamper-proof security fenc- “Our outreach team is there on a area: rezoning a 208-block swath of towers and the nearby police station. ing is a big victory for the 811 fam- daily basis and is working actively the Rockaway Peninsula, which is talk of tamper-proof fencing One reason a remedy has been ilies that reside in the Bay Ridge with five individuals toward place- expected to go to the City Council may leave most people cold, but so long in coming is that no fewer Towers,” remarked Dean Rasin- ment into housing,” says Eric this summer. Last month, Queens that’s not the case at a big apartment than six different government agen- ya, president of Community Board Deutsch, a DHS spokesman. Community Board 14 approved the complex in Brooklyn’s Bay Ridge cies—including the Metropoli- 10, in a statement. —matthew sollars plan by a margin of nearly 3-to-1. The proposal is largely intended to maintain the Rockaways’ bunga- low-style atmosphere by limiting development to one- and two-fam- ily homes,but four blocks have been singled out for a different fate.Rock- away Beach Boulevard between Beach 104th and Beach 106th streets, as well as two blocks on Beach 116th Street near the subway, are slated for upzoning that would allow for buildings as tall as nine sto- ries—triple the current maximum. These zoning changes, designed to encourage the development of upscale condominiums and high- end retail, are hailed by backers as the type of economic injection those blocks need. “Beach 116th Street is the cross- roads of Rockaway,and what’s there is a burned-out hotel, an empty movie theater and an empty cater- ing hall,” says City Councilman Joseph Addabbo.“If you want to ef- fect change here,you have to change the zoning.” However, a small group of long- time residents is worried that the change will threaten the fabric of their community. “The zoning would quadruple the population density in that area,” says Noreen Ellis, co-head of the Coalition to Save the Rockaways. She notes that the infrastructure of the beach community,which now serves about 160,000 year-round residents,is already taxed.The addi- tion of some 6,000 people—includ- ing residents of Arverne by the Sea, a complex just up the peninsula that’s nearly completed—would create massive parking and traffic problems. There are just two main roads serving the community. “We understand that the area needs a kick in the pants, but this is not the answer,” says Ms. Ellis. In response to the community outcry, the Planning Commission has upped the usual parking require- ments:Any new development in the rezoned area would have to provide parking for at least 85% of the units. “That’s a groundbreaking num-

June 9, 2008 | Crain’s New York Business | 17 CNYB 06-09-08 A 18 6/5/2008 6:49 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS (212) 264-4507 or [email protected]. 10:30 a.m., Right Management, 330 holds workshop on creating a winning JUNE 16-22 JUNE 9 JUNE 10 Madison Ave., 14th floor. Fee: free for business plan. 10 a.m. to 2 p.m., JUNE 16 New York Public Library’s Science, Camba Small Business Services holds members, $50 nonmembers. (212) 479- Lehman College, 250 Bedford Park Metropolitan National Bank and Industry and Business Library holds workshop on record-keeping and 0835 or [email protected]. Blvd. West, Room B27C, Bronx. Free. Manhattan Chamber of Commerce hold information session on searching QuickBooks. 6 p.m. to 8:30 p.m., 884 JUNE 11 (718) 960-8697 or business card exchange. 6 p.m. to 8 p.m., Bloomberg, 11:15 a.m. to 12:15 p.m., Flatbush Ave., second floor, Brooklyn. Small Business Development Center [email protected]. 1359 Broadway. Free. (212) 473-7805 or 188 Madison Ave., lower level. Free. Free. (718) 282-2500 or holds workshop on starting a small JUNE 12 [email protected]. (212) 592-7800. [email protected]. business. 6 p.m. to 8 p.m., St. Joseph’s Net Worth Solutions Inc. and Dreier JUNE 17 JUNE 10 JUNE 11 College, 245 Clinton Ave., Tuohy Hall, hold forum on buying and selling Lower Manhattan Business Solutions Score holds seminar on e-marketing. Action Plan Marketing holds seminar Brooklyn. Free. (718) 960-8697 or fashion businesses. 8:30 a.m. to 10:30 Center holds seminar on business legal 10:15 a.m. to 1 p.m., New York Public on the fast track to more clients. 9 a.m. [email protected]. a.m., Arno’s Ristorante, 141 W. 38th St. structures. 3 p.m. to 5 p.m., 79 John St., Library’s Science, Industry and Business to 7 p.m., New York Real Estate JUNE 11 Free. (212) 710-5961. second floor, conference room. Free. Library, 188 Madison Ave., lower level. Institute, 139 W. 35th St., second floor. Northwestern Mutual holds breakfast JUNE 12 Call 311. Fee: $45 in advance, $55 at door. Fee: $199. (831) 338-7790 or on U.S. taxation of noncitizens. 8 a.m. to South Bronx Overall Economic JUNE 17 [email protected]. 10 a.m., National Arts Club, 15 Development Corp. holds workshop on NYC Department of Health and Mental More meetings online at JUNE 11 Gramercy Park South. (917) 449-9600 minority and women-owned Hygiene and NYC Office of Emergency www.crainsnewyork.com New York Human Resources Planning or [email protected]. enterprises. 3 p.m. to 4:30 p.m., SoBRO, Management hold emergency planning Click on “Events” Society holds breakfast on developing JUNE 11 555 Bergen Ave., third floor, Bronx. workshop for employers. 8 a.m. to new senior leaders. 8:30 a.m. to Small Business Development Center Free. (718) 732-7547. 3 p.m., New York University Kimmel Center, 60 Washington Square South. Free. (212) 442-2634. JUNE 17 New York Industrial Retention Network and Industrial and Technology Assistance Corp. hold forum on green specifications. 2 p.m. to 4:15 p.m., 655 W. 34th St. Free. (212) 404-6990. JUNE 17 New York American Marketing Your get-out- Association holds program on social networking and marketing. 6 p.m. to 8 p.m., 116 E. 27th St., sixth floor. Fee: $35 members, $55 nonmembers. (212) 687-3280, ext. 222, or of-Wi-Fi-jail card. [email protected]. JUNE 18 Salem Global holds networking breakfast. 8:30 a.m. to 10 a.m., Shiboleth-Heiman, 1 Penn Plaza, suite 2527. Fee: $20. (212) 993-5828 or Now, free. [email protected]. JUNE 18 National Cable Communications holds Stay connected with the reliability of lunch on connecting with health and BroadbandAccess and a FREE USB wireless modem. wellness consumers in the digital world. 11 a.m. to 1:30 p.m., Cipriani, 110 E. 42nd St. Free. (888) 302-0236. Your small business doesn’t need limits. It needs connections. With BroadbandAccess you can work beyond JUNE 18 Wi-Fi hotspots, quickly and securely. You can browse the Internet, check email and be more productive when Sterling National Bank holds and where you want. All starting at only $39.99 Monthly Access. (Activation fees, taxes and other charges apply.)* networking reception. 5:30 p.m. to 7:30 p.m., 42 Broadway, fourth floor. Switch today to America’s most reliable wireless broadband network. Free. (212) 575-3404 or [email protected]. JUNE 18 Global Sourcing Council holds conference on risk management in global sourcing. 8:30 a.m. to 5 p.m., 60 Pine St. Fee: $200 members, $275 nonmembers. (914) 479-5016. JUNE 18 The Five O’Clock Club holds seminar on developing momentum in your campaign. 6:30 p.m. to 8:30 p.m., Limited-Time Offer 11 Penn Plaza, fifth floor. Fee: $50. (914) 788-5482 or [email protected]. JUNE 18 FREE Networking for Professionals holds USB wireless modem networking reception. 6:30 p.m. to for your Mac or PC 8:30 p.m., TechSpace, 41 E. 11th St., UM150 USB Modem $50 2-yr. price 11th floor. Fee: $25 members, $35 –$50 mail-in rebate with new 2-yr. activation on a $39.99/50MB nonmembers in advance; $40 for all at BroadbandAccess plan. door. (212) 227-6556 or [email protected]. JUNE 18 Retail Marketing Society holds lunch on authenticity in the retail environment. 12 p.m. to 2 p.m., Williams Club, 24 E. 39th St. Fee: $50 members, $75 nonmembers. (201) 692-8087 or For mobile broadband solutions for your small business, let Verizon Wireless be your “go-to” guy. retailmarketingsoci@ retailmarketingsociety.org. JUNE 18 Call 1.800.VZW.4BIZ Click verizonwireless.com/bba Visit your local Verizon Wireless store Hodgson Russ holds seminar on criminal tax practice and asset VERIZON WIRELESS COMMUNICATIONS STORES See store for Return/Exchange Policy. protection. 8:30 a.m. to 10:15 a.m., MANHATTAN Union Square 57 W. 57th St. 134 W. 34th St. 100 Wall St. & Water NASSAU Westbury SUFFOLK Smith Haven WESTCHESTER 1540 Broadway, 24th floor. Fee: $45. 342 Madison Ave. 859 Broadway btwn. 5th & 6th Ave. btwn. 6th & 7th Ave. (Closed Sat. & Sun.) Massapequa 49 Old Country Rd. East Northport 1 Smith Haven Mall Hartsdale (212) 751-4300 or @ 43rd St. 212-206-7587 212-980-4860 917-351-8000 212-510-6160 5070 Sunrise Hwy. 516-937-2960 4000 Jericho Tpke. 631-382-3720 355 N. Central Ave. 212-856-6100 516-797-3880 631-499-1820 914-286-4120 [email protected]. —sarah studley Hablamos Español

*Our Surcharges (incl. Fed. Univ. Svc. of 11.3% of interstate & int’l telecom charges (varies quarterly), 2¢ Regulatory & 6¢ Administrative/line/mo. & others by area) are not taxes (details: 1-888-684-1888); TO LIST YOUR EVENT gov’t taxes & our surcharges could add 6%–35% to your bill. Activation fee/line: $35. Listings can be submitted only through the Crain’s IMPORTANT CONSUMER INFORMATION: Subject to Customer Agmt., Calling Plan, rebate form and credit approval. Up to $175 early termination fee, up to 99¢/MB after allowance. BroadbandAccess is available to more than Web site. Go to www.crainsnewyork.com and click 240 million people in 248 major metropolitan areas. Offers and coverage not available everywhere. Rebate takes up to 6 weeks. Limited-time offer. While supplies last. Shipping charges may apply. Network details and coverage maps on “Events.” Sponsors have a choice of several free at verizonwireless.com. © 2008 Verizon Wireless. or paid listing options. All business events will be posted online within two business days. 54402-06.indd 1 4/24/08 4:33:08 PM 18 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 19 6/5/2008 6:50 PM Page 1

New fund for tech startups NYC Seed to invest up to $200,000 per company; revenues aren’t required

BY AMANDA FUNG

local tech entrepreneurs need- ing startup cash can turn to the city for help from a new fund called NYC Seed. Mayor Michael Bloomberg un- veiled the initiative last week as part of a series of Internet Week events highlighting New York’s growing tech community. The $2 million fund will invest up to $200,000 per company. “New York City has always been a place where aspiring actors, artists and musicians have come to live out their dreams and ambitions, and we want to make sure it is the place where aspiring technology entre- preneurs come as well,” said Mr. Bloomberg. NYC Seed is a public and private joint venture among six city agencies and organizations: the New York City Economic Development Corp.; the New York City Invest- ment Fund; the economic develop- ment arm of the Partnership for New York City; Polytechnic Uni- versity;the New York State Founda- tion for Science, Technology and Innovation; and the Industrial & Technology Assistance Corp. Experts at the helm the fund, which will be headquar- tered at Polytechnic’s incubator in downtown Brooklyn, is led by a board of directors and a venture ad- visory board made up of local entre- preneurs, technologists and venture capitalists. Venture members in- clude Union Square Ventures’ Fred Wilson, Milestone Venture Part- ners’ Todd Pietri, DFJ Gotham Ventures’ Daniel Schultz and Grey- croft’s Drew Lipsher. NYC Seed is taking applications on its Web site, www.nycseed.com, according to Owen Davis, the fund’s managing director.The fund will in- vest in New York-based companies with innovative ideas and a proto- type. Companies without revenues will also be considered.“Our job is to fund qualified people who are moti- vated and have an idea that address- es an important problem,” he says. The fund is tiny, compared with the money available through private venture capital companies. Separately, Katherine Oliver, the city’s commissioner of film, theater and broadcasting, will expand her role to include developing the city’s digital media industry. Details on how the mayor’s office plans to grow the tech community are still being worked out.

COMMENTS? [email protected] Project1 6/5/08 12:17 PM Page 1

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Samsung Experience CNYB 06-09-08 A 21 6/5/2008 2:25 PM Page 1

SMALL BUSINESS INSIDE Hits & Misses The secrets of long-lived firms PAGE 24 Two coffee companies brew different paths to success PAGE 26 Education for young owners PAGE 30

Bicycle maker outlasts rivals Century-old Worksman excels at reinventing itself; cool in core market

BY WENDY DAVIS

getting from class to class— much less from school into town—on foot can eat up a lot of time at the sprawling University of Montana campus in Missoula. These days, students and profes-

sors have a new gary hovland illustrations transportation option:They can borrow one of more than 50 ul- LANDMARKS trasturdy unisex Part of an bicycles. Entrepreneurs escape occasional “People love series on NYC them,” says institutions Nancy Wilson, Bad times may be ahead, but hard-working owners need a break the university official who manages the bike loan BY TINA TRASTER program used by 8,000 people last year. THE ECONOMY IS DEFINITELY SLOWING Chalk up another commercial , but just as surely, Others are sticking somewhat closer to home. One is coup for one of New York City’s temperatures are rising and days are lengthening—and New looking forward to competing with her horse on Long Island, oldest manufacturing firms, York’s entrepreneurs are thinking about getting away. another to a freewheeling driving trip that may or may not Worksman Trading Corp. The Crain’s asked a group of local business owners to end up north of the border. company was founded in 1898 to make cycles that offered New share their summer holiday plans, and the results INSIDE Some leave work behind, others remain totally Yorkers a low-cost alternative to a were as varied as the city’s small business sector. One A PEEK AT plugged in. horse and buggy. Ever since then, will fly off to China to revisit the homeland of an 6 SUMMER Though most say that the shadow of darkening it has been revamping its product adopted daughter, while another is taking a tour of VACATION economic skies hasn’t fallen across their business yet, and redefining its market. Along PLANS the way, it has outlasted not just South Africa that covers everything from Nelson PAGE 22 they’re taking nothing for granted and are laying See BICYCLE on Page 23 Mandela’s former prison cell to big game. plans for leaner times.

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June 9, 2008 | Crain’s New York Business | 21 CNYB 06-09-08 A 22 6/5/2008 6:51 PM Page 1

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Ellen Jovin, principal Stacey Pecor, president Tish Bellomo, co-owner SYNTAXIS Manhattan OLIVE AND BETTE’S Manhattan MANIC PANIC Queens BUSINESS Corporate communica- BUSINESS Women’s clothing retailer BUSINESS Hair dye and cosmetics tion skills training EMPLOYEES 80 maker/retailer EMPLOYEES 2 DATE/DESTINATION Late EMPLOYEES 15 DATE/DESTINATION August/Canada? August/Southampton DATE/DESTINATION Late THE PLAN “Drive across the country THE PLAN “Spend two weeks at June/Italy and Hungary for the last three weeks in August with my house with family. Compete THE PLAN “Travel with my my husband, probably ending up somewhere in Canada. in the adult hunters’ competition sister and partner, Snooky, But we don’t like to do too much planning. How often of the Hampton Classic in Bridge- and our families to attend the do you get to be free-spirited?” hampton with my horse, First Class, 70th birthday party of a friend KEY ATTRACTIONS “We’ve done this twice before, and a Dutch Warmblood.” who lives in a castle in Umbria.” the key attraction is coming across quirky things like a KEY ATTRACTIONS “I’m just as competitive when away KEY ATTRACTIONS “After the party, we will drive the gor- corn-cob house or spaghetti fried on a stick. Walking from work as when working, because I run on adrena- geous Amalfi coast, eating and visiting with friends and tours and visiting presidential homes. Staying in hotels line. When not competing, I’ll go boating and hike on family. We’ll then take the train to Budapest to visit my in small towns where everybody knows everybody.” the Paumanok Path.” husband’s mother.” WHO’S MINDING THE SHOP “August is quiet, but I will WHO’S MINDING THE SHOP “My employees. When I’m WHO’S MINDING THE SHOP “I’ll leave behind instructions stay in touch with a BlackBerry and a laptop.” on vacation, it’s 100%.” and call in frequently.” DOWNTURN’S IMPACT “You’d think that a business like DOWNTURN’S IMPACT “We’re not feeling the recession. DOWNTURN’S IMPACT “As makers of a do-it-yourself ours—soft-skills training—would be more dispensable But we know women need a good reason to part with product, we don’t tend to get hit by recessions. But if we in hard times, but we haven’t felt any pain yet.” their money, and we’ll continue stressing fresh ideas.” do, we’ll pare my line, which has 300 SKUs, to focus on top-selling products.”

➠ ➠ ➠ ➠ ➠ ➠

Matthew J. Weiss, president gary hovland 888 RED LIGHT Manhattan Eduardo Mari, president BUSINESS Law firm that fights TRUDY’S HOMEMADE Manhattan traffic tickets Sharon Lowenheim, director BUSINESS Dog food maker EMPLOYEES 7 ORGANIZING GODDESS Manhattan EMPLOYEES 2 DATE/DESTINATION Early BUSINESS Residential and DATE/DESTINATION Mid- July/South Africa business organizing August/Brazil THE PLAN “Travel with my EMPLOYEES 1 THE PLAN “Spend a couple of wife on a tour coordinated by DATE/DESTINATION Late June/ weeks with my life and business The Entrepreneur Organization. China partner, staying at his parents’ The itinerary includes Cape Town; a visit to the Prison THE PLAN “Take a heritage tour apartment in Copacabana, then traveling to his aunt’s Museum, where Nelson Mandela was incarcerated; and a to celebrate the 10th anniversary farm in Minas, an old mining town five hours from Rio.” four-night safari at the Lodge in the Sabi Sands Private of the adoption of our daughter KEY ATTRACTIONS “In Rio, we’ll hit the beach in the day Game Reserve.” Emily from Yangchun.The tour will include the terra- and party in clubs at night. We’ll also hike in a tropical KEY ATTRACTIONS “This is a once-in-a-lifetime oppor- cotta warriors in Xian, a panda reserve in Chengdu and a rain forest near Rio. In Minas, we’ll visit Parque de tunity to see the Big Five: lions, leopards, elephants, buf- river cruise in Guilin.” Aguas, famous for its mineral-rich spring waters.” falo and rhinos.” KEY ATTRACTIONS “Stay in The White Swan in WHO’S MINDING THE SHOP “Before we leave, we’ll contact WHO’S MINDING THE SHOP “The office manager. And Guangzhou, where we first met Emily. Will also visit the customers and have them stock up on our frozen dog there’s an entire network of lawyers who can fill in for U.S. embassy, as part of a trip down memory lane.” food. We have to rely on assistants to deal with orders.” me.” WHO’S MINDING THE SHOP “I don’t plan to be in touch. DOWNTURN’S IMPACT “I believe that even though it costs DOWNTURN’S IMPACT “With New York forecasting fiscal I’ll let my clients know when I will return.” more to buy dog food without grains, fillers or preserva- woes, I imagine there will be a big push to use traffic fines DOWNTURN’S IMPACT “I haven’t felt the slowdown. Per- tives, pet owners understand that it will save them on vet- as a way to increase revenue. As the city becomes more ag- haps when the going gets tough, the tough get organ- erinary costs in the end. Nevertheless, we plan to use the gressive about bus lanes and double parking, it translates ized. Still, I plan to put more focus on Internet market- warm-weather months to make a big marketing push.” into more grievances, which is good for my business.” ing in an effort to build my client base.”

22 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 23 6/5/2008 2:26 PM Page 1

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Glassmaker PPG Industries re- time line: food cart cycles, which cently bought its first Worksman Worksman began making in the Bicycle maker outlasts its rivals tricycle,for use by maintenance per- 1930s under contract for the Good sonnel at the company’s 1.2 million- Humor company. That business Continued from Page 21 ny officials began exhibiting at spe- ed as the shrinking market for its square-foot plant in Shelby, N.C. brings in roughly 10% of revenues, equines on the streets but many a for- cial-needs trade shows. Later, the traditional products has wiped out Scott Stachowicz, a manager at the double the figure of a decade ago. eign and domestic competitor, too. company began adding seat belts virtually all of Worksman’s domestic plant, says he got the idea after ob- Meanwhile, rising energy costs The cycles now in use in Montana and other special features geared to competitors. serving tricycles at another plant have forced Worksman to make ad- are just the latest example of how the people with disabilities. Ironically, as the company con- while attending a conference about justments itself. Late last year, the Ozone Park, Queens-based compa- Ed Rogoff, academic director at tinues to enter new markets, there “lean” initiatives. company installed a 15 kilowatt so- ny continually reinvents itself. That the Lawrence N. Field Center for are signs that the energy crisis is lar energy system on the roof of its success contrasts with a long decline Entrepreneurship at Baruch Col- breathing new life into its oldest Cool tricycles 90,000-square-foot factory. The in the company’s core business— lege, sees Worksman’s endurance in business—industrial bikes.Compa- “i started looking at all these peo- project cost $400,000,but Mr.Sosin selling industrial-strength bicycles to part as a victory for sheer longevity. nies that switched to golf carts or ple zipping around on these tricycles, expects the investment to pay for it- Boeing, Bethlehem Steel and others “It’s like the buggy-whip manu- battery-powered transporters to get and I thought,‘This is cool,’”he says. self within three years. for use in their vast factories. facturer that survived,” he says. He employees around are embracing a The need to dodge high fuel costs Today, those industrial-strength, notes that the company has benefit- more energy-efficient alternative. has also lit a fire under another long- COMMENTS? [email protected] hard-wheeled cycles contribute 65% of Worksman’s revenue.The problem is that a decade ago they accounted for 85%. Something had to be done. “Our traditional customer base shrank,”says Wayne Sosin,president of Worksman. “So we expanded our recreational needs market and spe- cial-needs market to compensate.” Worksman, which now has sales of more than $5 million,entered the recreational market in the 1970s, developing a line of lighter-duty folding tricycles and bicycles. Good publicity initially,Worksman sold the line to resorts as well as to individuals through bike stores and catalogs.Two years ago, the company stepped up that drive by putting its recreational cycles on its Web site.Visits to the site recently spiked after Worksman fan and Sopranos star Edie Falco appeared on The Ellen DeGeneres Show where she proudly showed off a picture of the three-wheeled Worksman model she uses to ferry her dog around in Central Park. “The recreational market will grow for us,” Mr. Sosin says. It al- ready accounts for 25% of revenues, up from 10% a decade ago. He ex- pects many aging baby boomers will trade their sleek bikes for adult-size tricycles in coming years. The company also produces spe- cialty cycles,including a tricycle with side-by-side seating for two that has long been a favorite of vacationers as far away as the Four Seasons Resorts in the Maldives. When Worksman noticed five years ago that schools and institutions for the disabled were purchasing that model,compa-

IN A NUTSHELL

WORKSMAN TRADING FOUNDED 1898 by Morris Worksman EMPLOYEES 55 REVENUE More than $5 million Without BitLocker, your laptop is an open door. BEST-SELLER Port-O-Trike, a folding tricycle with 20-inch wheels for adults; starts at $300 BEST-SELLING INDUSTRIAL MODEL Worksman Mover tricycle in several sizes; starts at $699

BITLOCKER_CRAINSNY_SEQ.indd 1 June 9, 2008 | Crain’s New 5/22/08York Business 1:36:11 PM | 23 CNYB 06-09-08 A 24 6/5/2008 2:27 PM Page 1

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Patsy, who cooked for who proudly points HITS regulars including to stalwarts like Saucy move pays off Frank Sinatra and stewed tripe and mr. scognamillo’s cousin Frank HITS & MISSES Jackie Gleason; his son stuffed calamari. DiCola, a sommelier, brought the Joe; and his now 46- “You can’t get these company’s wine list up to speed year-old grandson Sal, anywhere anymore.” when he joined the business in Third-generation-led firms’ key moves by Lisa Goff who has burnished After decades of 1975. “You can make a lot more Patsy’s reputation resisting expansion, from fine Barolos than from those with a 2002 cookbook Patsy’s is set to open bottles of Chianti wrapped in and appearances on a second location this straw,” says Sal, who became a Cooking the old-fashioned way The Martha Stewart month at the Hilton partner in 1985. Show. Hotel in Atlantic Patsy’s started selling its famous n west 56th street, a lonely relic of midcentury Italian cooking has PATSY’S menu hasn’t changed. City. If all goes well, sauce in jars in 1994, and it’s been a Manhattan nightlife survives. It is Patsy’s Italian come a long way in franchises in Las marketing bonanza. “Half our Restaurant the last 64 years, but Vegas will follow. customers are from outside the O , founded in 1944 by Naples native Pasquale not at Patsy’s. “The heart of the Revenues in 2007 were $3 [metro] region, and a lot of them “Patsy” Scognamillo. Since then, it has had only three chefs: menu is still the same,” says Sal, million. Patsy’s has 29 employees. come because they’ve bought the sauce,” says Mr. Scognamillo. His father opposed the move, until Mr. Scognamillo found a way to ensure the quality. He interviewed dozens of firms before finding one that would make the sauce in small batches—150 gallons at a time.This scale produces better He asked about my flavors. “The older generation needs to know that what they’ve built is capital expenditures for going to be preserved,” says Sal, who buys his fish, cheese, pasta and produce today from the leasehold improvements grandchildren of his grandfather’s vendors. and equipment. Why? MISSES They don’t like Mondays the price of success for a family Because he completes me. business is often the family itself. Sal remembers loving to work at the restaurant as a child because it meant he got to see his father. Now he savors time spent teaching his own children, boys aged 9 and 12, to make tiramisu in the same kitchen. The younger Mr. Scognamillo still regrets his decision, necessary for the survival of the business during the early 1990s recession, to stay open on Mondays, formerly the day devoted to family. “Maybe it wasn’t a business mistake, but I lament it,” he says. Mr. Scognamillo also wishes he had courted an outside investor for the sauce business. “I’d have more resources for marketing,” he says. Garment supplier branches out Dr. Beth Miller pediatric group practice hen Abraham Tropper New York, NY founded Central Notions WCo. in 1947 as a distributor of safety pins, snaps, and hooks and eyes, he could barely keep up with the demand from the city’s booming garment industry. His wife, Yetta, processed hundreds of orders a month by hand at the firm’s small Lower East Side storefront. When was the last time your bank asked you At 97, Mr.Tropper still makes the right questions about your business? Working with countless businesses across 83 countries and territories1 has given us a unique perspective. Our relationship managers know that only after we understand your business’s DNA, can we help you improve its ROI. Visit a branch to talk to a relationship manager or call 1-866-427-2104 to fi nd out more about HSBC’s Business Banking solutions. us.hsbc.com/business

1. HSBC Group. Products in the United States offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both banks are Member FDIC. ©2008 HSBC Bank USA, N.A. CODA RESOURCES has come a long way.

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Rocking children’s world 10,000-square-foot showroom. Semiprecious “adventurous,” according to Dennis, adding with the older generation. “It’s not about jewelry and rare crystals carry price tags of ivory, jade, shells and corals to the product power, it’s about change,” says Dennis. very saturday morning they $50,000; many of the more expensive items line. come, the 6-year-old boys and their are sold online to buyers overseas. While founder Julio and his son Edgar MISSES Efathers, to gawk at the meteorites “The holistic movement really exploded concentrated on the broad retail market for Poor timing on some decisions and fossilized dinosaur eggs. “I put one in our business,” says Dennis, decorative pieces, Dennis in the 1990s, Dennis came up with a their hands and watch their eyes get big,” who counts actress Shirley and his brother Marc have grandiose scheme to open more Astros, a says Dennis Tanjeloff, the 40-year-old MacLaine as a customer. targeted the growing plan that he admits was flawed—one that president of Astro Gallery of Gems on East Revenues in 2007 number of serious was promptly vetoed by his father. 34th Street, continuing a ritual that dates topped $7 million.The collectors as well as Dennis also faults the company for back to the days of his grandfather Julio company has 17 employees. wealthy investors who see dragging its feet on issues like abandoning Tanjeloff, an Argentinean immigrant who gems as another hot the passé African tribal art department founded the store in 1959. HITS commodity. headed by his father. Children and rock collectors have always Changes are for better Embracing new markets “We’ve been late to certain trends over been a staple, but it’s been a long time since all three generations of ASTRO’S Dennis Tanjeloff, Marc Tanjeloff and sales channels like the the years, and other fads we stayed with too $20 paperweights paid the rent on Astro’s Tanjeloffs have been and Edgar Tanjeloff (left to right). Web were often hard sells long,” he says.

weekly sales calls on his few remaining customers in the garment district. “It’s the only sentimental business decision I think we’ve ever made,” says grandson Hillel Tropper, 34, third-generation president of the company now named Coda Resources and headquartered in Brooklyn. Under the leadership of three of Abraham Tropper’s grandsons, the company expanded into the business of disposable medical and dental products in 2003 and two years ago launched a large contract manufacturing operation in China. Revenues last year came to $40 million. The company has 35 employees. HITS Separate duties in the 1970s, as the city’s garment industry withered, two of Abraham Tropper’s sons radically shifted the company’s focus to manufacturing plastic fasteners and selling them to retailers, a business that gave the company a huge growth spurt. “Turning over the reins has never been a problem in the Tropper family,” says Hillel Tropper, who oversees sales while his brother runs the China facility. “The older generation has never tried to micromanage the younger family members.” Separate bailiwicks preserve harmony.“I don’t tell my brother what kind of machinery to buy for China, and he doesn’t tell me how to sell anything,” says Hillel. When Chinese laws changed in 2004 to allow foreign companies 100% ownership of factories, Coda pounced.The company built a complex that subcontracts manufacturing for a range of U.S. clients in the automotive, plumbing and HVAC industries. Now with MISSES Service Pack 1 Jewelry cases a waste over the years, Coda diversified into selling store fittings—racks, mannequins and even cash registers—but a 2004 move to If a thief steals your laptop, what will they get? produce displays for jewelry If it runs Windows Vista® Ultimate with Service Pack 1 and BitLocker showcases proved a step too far. File Encryption, they’ll only get your hardware, not the rest of your life. “The buyers were incredibly picky about the product design,” says See how BitLocker helps keep small businesses protected. Hillel, who sold the division. WindowsVistaExperience.com. Coda promoted the longtime manager of its China facility to a key R&D job in 2006 and is still struggling to replace him. “Several people bombed out—one lasted less than an hour,” says Hillel.

COMMENTS? [email protected]

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REPORT Java companies brew different paths to success Upstart emphasizes WHITE marketing, while old- COFFEE line firm focuses on CORP. a value proposition LOCATION LIC, Queens BY STEVE GARMHAUSEN EMPLOYEES 120 ANNUAL REVENUES Not new yorkers are far better-known disclosed for drinking coffee than producing BEST-SELLER/PRICE/VOLUME it. But two Queens companies that Colombian coffee beans/$4 to are located just a couple of miles $6 a pound/more than 3 million apart are prospering by taking very different approaches to the busi- pounds a year ness. White Coffee is a third-genera- tion company focused on attention Such exposure has helped Shock to quality and customer service, achieve annual revenue that is ex- while four-year-old Shock Coffee pected to top $10 million this year, has charged out of the gate largely compared with $150,000 in 2004. on the strength of savvy marketing. That is when Mr.Rosen,then a sales “Our coffee is an excellent prod- executive with convenience-store uct,” says Jeffrey Rosen, president of supplier Price Master Corp. in Shock Coffee. “But we are 99% a Woodside, persuaded his bosses to marketing company.” buy California-based Shock and move it to New York. Price Master not only took his One model is advice but assigned Mr.Rosen to run Shock, as a division initially and as a hard to match; separate company two years later. one is pretty Expanding reach with the new owner and Mr. simple to copy Rosen’s “hypercaffeinated” hype, it was relatively easy to expand Shock’s Leader. distribution to convenience stores at gas stations and truck stops, as well as to specialty coffee shops and su- Shock’s pitch hinges on a coffee permarkets—and even to the U.S. packed with 50% more caffeine than military. the regular stuff and a simple, Unlike White Coffee, which of- cheeky tagline, “Sleep is overrated.” fers more than 300 coffee varieties The combination has landed Mr. and thousands of items, Shock has Rosen interviews on programs in- stuck with a small lineup. Its offer- cluding MarketWatch, Today and ings consist of roasted beans, Triple “No matter your career, the space in which you work affects your morale. Through space Nightline. Latte and Triple Mocha (sold in planning, my ASID designer re-engineered our library to create a more efficient floor plan, more effective office space and even improved sight lines, allowing our library to take better care of our employees and have a positive impact on the community.” SMALL BUSINESS AND MORE ON THE WEB

Local events This section of the small business page highlights meetings that are aimed at helping firms grow. Back issues Use the online archives to find published Crain’s stories from any previous edition of the newspaper. Subscribe Use the “Subscribe now” Small business alerts Sign up for button to get Find out how an ASID interior designer can free custom e-mail alerts and be the weekly editions first to know about the latest round change your world. of Crain’s New of city incentives, key policy and York Business or WWW.YOURINTERIORWORLD.COM legislative changes, and other news. www.njasid.org | www.asidct.org | www.asidnymetro.org to order an elec- photo by www.farzindonaldson.com Resources Get easy links to tronic subscrip- associations and government tion to the agencies that help small companies. newspaper.

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cans), chocolate-covered beans and Frappios. pany bought the coffee business of a called Shock-A-Lots and powder- On the other hand, Mr. Gins- distributor in Lindenhurst, L.I., based cappuccino. berg says,White Coffee has evolved that specializes in the fast-growing And while White Coffee is di- a value proposition that would be Hispanic market. rectly involved with virtually every hard for competitors to match, let The firms’futures would also ap- link in the chain—from importing alone surpass. pear to be divergent. beans to servicing machinery— “Their route is more complex White Coffee says its anticipates Shock leaves most of those func- and harder to pull off,” he says. continued steady growth from tions to others. For example, roast- keeping its large roster of clients sat- ing and distribution are handled by Horizontal integration isfied. S&D Coffee Inc. of Concord, in recent years, much of White Shock Coffee will “continue to N.C., whose clients include Mc- Coffee’s growth has come from pro- build out,” Mr. Rosen says, adding Donald’s Corp. and Applebee’s In- ducing coffee for other brands, in- that the future is unclear now that ternational. cluding Hickory Farms and IHOP bigger players like Monster Bever- Mr. Rosen, 40, a self-described Corp. That business now generates age have gotten on the bandwagon. serial entrepreneur with a liberal arts about a third of revenues, up from degree from a community college, 3% a decade ago.Last year,the com- COMMENTS? [email protected] says: “I had no experience with cof- fee, other than buying a cup on my way into work.But you don’t have to be expert to be successful. I used other people’s knowledge.” Such a strategy would be totally foreign to White Coffee. The 69- year-old family business imports and roasts its own beans, paying careful attention to quality. It bills itself as a one-stop shop for its 2,000 commercial and institu- tional customers—providing every- thing from brewing equipment to advice on how to increase sales. “We try to bring value in helping their profits grow,” says Jonathan White,who runs White Coffee with his brother Greg and their mother, Carole. “We suggest products, help them with marketing and in some cases even co-create products.”

SHOCK COFFEE

LOCATION Woodside, Queens EMPLOYEES 15 ANNUAL REVENUES $10 million BEST-SELLER/PRICE/VOLUME Ready-to-drink cold triple mochas and lattes/$32 per case of 24/ “many truckloads”

The combination of top-end products and service is crucial in keeping the loyalty of a diverse client base that includes the Mar- riott Group and T.J. Maxx. “They’re a family-oriented,well- run machine,” says Chet Ostrowski, director of food and nutrition serv- ices at Mount Sinai Hospital of Queens.“They pretty much cross all the t’s and dot all the i’s for us.” White Coffee’s business model is far more costly to maintain than Shock’s but also more durable, ac- cording to Ari Ginsberg, director of the Berkley Center for Entrepre- neurial Studies at New York Uni- versity’s Stern School of Business. He gives Mr. Rosen kudos for coming up with a premium niche product and limiting his costs by outsourcing but points out that copying Shock Coffee is somewhat simple. “The barriers to entry are low,” Mr. Ginsberg says. In fact, Mr. Rosen says that Shock is contending with a prolifer- ation of rival drinks,with names like Java Monsters—made by Monster Beverage Co.—Rockstar Roasteds

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HOW-TO david neff david OUT-OF-SITE CLAIM: Thorough records have helped Dennis Bosco’s firm fight an unjustified suit. Stopping suits before they start

Here are some tips for getting Good record-keeping, started: careful hiring can TIP 1 contain legal claims— Prepare for the worst. or soften the blow don’t wait for the company to be sued before beginning the search for legal counsel. Know the legal basics BY TINA TRASTER of the business, and retain an attor- Is your business ney before an urgent need arises. egal suits are almost impossible to predict. TIP 2 Dennis Bosco, chief Wear armor. executive of Chelsea Floor Covering, found think about incorporating the Lthat out the hard way. His compa- business. Because a corporation is a recession proof? ny, which lays floors in com- separate legal entity,a business own- mercial buildings, was sued in 2006 er’s personal assets are shielded if the by an electrician who said he’d firm is sued or goes bankrupt. slipped and gotten hurt at one of Similarly,those who have entered Chelsea’s job sites. partnerships should consider setting “We were not even [working] up a limited liability entity. Other- at the site at the time of the claim,” wise, they’ll face the usual danger of observes Mr. Bosco, who can prove partnerships: the fact that they’re his point with both internal rec- only as strong as the weakest link. If ords and building logs obtained one partner is negligent in business ADP TotalSource® gives you the HR Solutions that during a deposition. “Fortunate- matters or files for bankruptcy, the ly, we kept good records, but this other partners are on the hook. help you rise above any economic challenge. suit has cost us a lot of time and Enterprises that have substantial aggravation.” amounts of debt-free equipment or More than two years after the real estate can spread out their risk case was lodged,it’s still dragging on and shield assets by creating separate www.adptotalsource.com/NY 800-HIRE-ADP in court. corporations or limited liability part- A lengthy or expensive legal bat- nerships.These entities can hold ti- tle can sink small businesses that tle to the assets, which can then be unwittingly violate safety, health, leased back to the businesses. environmental, tax or employment laws—and even firms that don’t. It TIP 3 is vital that small businesses develop Keep detailed records. The ADP logo is a registered trademark of ADP of North America, Inc. TotalSource is a registered trademark of ADP, Inc. strategies to minimize their legal ADP Totalsource Bottom Line. Your Team Just Got Better is a service mark of ADP, Inc. risks, and to survive should those forget the handshake.Put strategies fail. everything in writing, and ask that CNYB 06-09-08 A 29 6/5/2008 2:37 PM Page 1

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clients, vendors and even govern- is responsible for our employees’ pensation for emotional distress. Fair Labor Standards Act that cov- make sure everything is working ment agencies do the same. Be es- legal matters.” Try to get the employee to resign. ers nonexempt employees—is now properly,so we can avoid having ac- pecially careful to keep memos or If that fails, put him on notice, giv- surpassing discrimination and ha- cidents,” says Joe Lopopolo, presi- files about problematic customers or TIP 5 ing him the opportunity to improve. rassment suits in sheer volume. dent of Gun Hill Beer Ltd., a employees. Don’t fire anyone Bronx-based beer distributor. When inking a contract, spell until the all the i’s are dotted. TIP 6 TIP 7 out all the details: deadlines, costs, Classify employees properly. Play it safe—literally. TIP 8 contingencies. Add language that though every business has the Insure survival. covers how the parties will resolve right to fire,the risks of doing so can under federal labor law,em- minimize work accidents by em- disagreements, should they arise. be huge. Sacked employees often ployees must be correctly identified phasizing on-the-job safety and hon- firms with basic insurance coverage Have an attorney eyeball the agree- turn to the courts with discrimina- as “exempt”or “nonexempt,”to avoid ing training procedures. Distribute get more than financial protection ment to check for loopholes and tion suits, and juries tend to be sym- disputes involving overtime pay and a written safety plan. Report claims against loss;they also get an attorney. gray areas. And remember: In New pathetic toward fired workers. If a tax withholding. Wage-and-hour immediately; waiting even a week If they are sued, the insurer must York, if a contract isn’t in writing, it business loses its case, it could be on litigation—in which employees can cause settlement costs to soar. provide counsel to fight the claim. is not enforceable by the courts. the hook for back pay,reinstatement, claim that they weren’t paid for “I walk the floor constantly and attorney’s fees, even monetary com- overtime or given breaks under the keep cameras in the warehouse to COMMENTS? [email protected] TIP 4 Hire cautiously. treat all job applicants equally, and ask each the same basic ques- tions. Interviews should focus on a prospective hire’s competence and qualifications. Stay away from any questions about health, age, family and other personal matters; a rejected candidate might use such questions as grounds for a discrimination suit. Before making an offer, check the applicant’s references, and con- duct background and credit checks. Be sure to obtain written permission to do so. Rather than take all these steps themselves, some companies are turning to professional employer organizations. In January, Compa- ny X Edit turned to Administaff, one of the nation’s largest PEOs. For an annual fee of nearly $35,000, Administaff oversees all employ- ment issues at 16-employee Com- pany X Edit. “There are so many things about HR that are a mystery,” says Rachelle Way,executive producer at the Manhattan-based business.“Not only does the PEO make sure every- thing is handled legally; it shields us from the risk of a lawsuit, because it

KEEP OUT OF THE COURTHOUSE LITIGATION SHOULD BE a last resort. A courtroom is an expensive and often a bad place to resolve a dispute, whether a business is suing or being sued. Whenever possible, use mediation or arbitration to resolve a problem. Short of that, try for a settlement, even if it’s with an unhappy customer who has an unjustified complaint. In the event that it’s necessary to file a lawsuit, do not write a letter to an adversary bluntly stating the company’s legal position. Successful litigation involves elements of surprise. Say simply that the company intends . to pursue “legal remedies.” istockphoto

June 9, 2008 | Crain’s New York Business | 29 CNYB 06-09-08 A 30 6/5/2008 2:37 PM Page 1

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ACCELERATOR Fast-track enterprise assistance PROGRAM company, Sweetriot Inc., hit a thing from a handbag manufacturer ployees by asking the right ques- ANNUAL COST $1,000 Program provides plateau. Business at the Manhattan to an information technology ven- tions in the first five minutes of an young owners with firm was good, but expansion ef- ture—for day-long education ses- interview, and how to improve sales CLASS SIZE 30 maximum forts were running into human re- sions held quarterly. by asking customers what they want COMPANY ELIGIBILITY More than insight and guidance source and sales issues. “The program allows new entre- and—most important—listening $250,000 a year in sales Eager to improve, Ms. Endline, preneurs like myself to learn and carefully to their answers. 36, signed up in April 2007 for the come up with solutions that really The first session of the program GRADUATION After 3 years or BY LAURA KOSS-FEDER then-new Accelerator Program run work,” Ms. Endline says. was devoted to broad business when sales top $1 million by the Entrepreneurs’ Organiza- strategies. Subsequent sessions fo- SECOND CLASS Begins Sept. 15 every entrepreneur can use some tion, formerly the Young Entrepre- Topic-specific cused on human resources, finance guidance from time to time. That neurs’ Organization. the top two lessons she learned and sales. FOR INFORMATION www.eonyc.org time came for Sarah Endline last She joined a group of 25 other addressed her plateau problem. She Jim Ryerson, a professional sales year, when her two-year-old candy entrepreneurs—owners of every- found out how to find the best em- coach and author, led the sessions, which were held downtown, at 55 Exchange Place. Mixers after each class let stu- dents network with each other and some of the organization’s 200 New RELATIONSHIPS MATTER! York area members, all of whom head a business with sales of more than $1 million a year. Ben Hoffman, 30, says knowl- edge he acquired in the program helped him set up standard hiring, sales management and administra- tion processes. “I was just working day to day, without any real procedures in place,” says Mr. Hoffman, the chief executive of CityHunt, a seven- year-old Manhattan firm that cre- ates team-building scavenger hunts. He hopes to boost revenues to $1 million—the level set for “gradua- tion” from the program—from $400,000 within the next 12 months. Abbas Ismail, 24, who entered the Accelerator Program in Febru- ary, says he picked up a good idea in his first session. Acting on that in- formation, he is arranging to have cold-calls for his Web site develop- ment firm outsourced. “It will allow me to boost my sales and bring in more business,” Mr. Ismail says. XO Global Inc., which he founded in 2006, has an- nual sales of about $250,000. More school, please though membersof the first group yes no My Banker visits my business regularly. found the program helpful, many say that they also wish there were lit- yes no My Banker understands my business. erally more to it. “There’s just so much to learn— yes no My Banker helps me grow my business. especially in the first few years of business—that I would like us to meet more often,” Mr. Hoffman If you answered ‘no’ to any of the above, it might says. He would like to step up the be time for a new business banking partner. schedule to every other month from quarterly. It would also be valuable for students to get together in infor- mal discussion groups with no more than four members, he says. Ms. Endline, who is a full EO Find out what makes us different. Call today! member now that her sales have hit $1 million, would like just one 1-800-250-6968 more class—a summary session to let students tie everything together and feel more like they “really grad- uated.” The program is still evolving, according to Fran Biderman- Gross, Accelerator’s director and president of Advantages, a promo- tions, design and printing firm in Flushing, Queens. “We are con- stantly evaluating it, since it’s so new,” she says. © 2008 Banco Popular North America. Member FDIC. COMMENTS? [email protected]

30 | Crain’s New York Business | June 9, 2008 Project1 6/5/08 12:17 PM Page 1

Hope Begins with a Meal You can provide meals, lodging and more for New York City’s hungry and homeless. Chris was once hungry and homeless, his recovery began with a hot meal and a place to sleep. Your individual or corporate financial support, gifts-in-kind and volunteer services are needed to change lives. To learn how you can help, call (212) 226-6214, ext. 112. Or visit us online at www.nycrescue.org nb23p32-33cls.qxp 6/5/08 3:47 PM Page 32

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ENTREPENEURS WANTED PUBLIC & LEGAL NOTICES

Notice of Qualification of HB Onshore Notice of Formation of Alliance Medical Notice of Formation of 8 Centre Realty NOTICE OF FORMATION of Fund, LLC. Authority filed with NY Dept. and Wellness PLLC, Art. of Org. filed LLC. Arts. of Org. filed with Secy. of OverUnder Records LLC. Arts. Of of State on 4/14/08. Office location: NY Crain'sSec’y of State Classified (SSNY) is12/12/07. not responsible Office forState corrupt of NY files(SSNY) submitted on 1/25/08. by Office client or adsOrg. run filed under with theSecy. wrong Of State subheading. of N.Y. County. LLC formed in Delaware (DE) on location: NY County. SSNY designated as location: NY Co. SSNY designated as (SSNY) on 2/11/08. Office location: agent of LLC upon whom process against New York County. SSNY designated 4/7/08. NY Secy. of State designated as agent of PLLC upon whom process it may be served. SSNY shall mail as agent of LLC upon whom process agent of LLC upon whom process against against it may be served. SSNY shall mail process to: The LLC, 433 West 14th St., against it may be served. SSNY shall it may be served and shall mail process copy of process to Nat. Reg. Agents, 875 Ste. 429 3R, Ny, NY 10014. Purpose: any mail process to: 151 First Avenue, to: c/o Highbridge Capital Management, Ave of the Americas, Ste. 501, NY, NY lawful activities. Suite 36, NY, NY 10003. Principal LLC, 9 W. 57th St., 27th Fl., NY, NY 10001. Purpose: any lawful activities. business location: 151 First Avenue, 10019, principal business address of the CANDEO CLINICAL/SCIENCE COMMUNI- Suite 36, NY, NY 10003. Purpose: Any lawful activity. LLC. Registered agent upon whom Notice of Qualification of Joffee-333 W. 39 CATIONS, LLC, a domestic Limited Crain's Classified is not responsible forprocess corrupt may files be served: submitted CT Corporation by client or adsRealty run LLC. under Authority the filed wrong with NY subheading. Dept. of Liability Company (LLC) filed with the Sec System, 111 8th Ave., NY, NY 10011. DE State on 4/10/08. Office location: NY County. of State of NY on 5-9-08. NY Office loca- NOTICE OF FORMATION OF LIMITED LIABIL- LUXURY address of LLC: c/o The Corporation Trust LLC formed in Delaware (DE) on 11/13/07. tion: New York County. SSNY is designat- ITY COMPANY. NAME: 25 WA ASSOCI- Co., 1209 Orange St., Wilmington, DE Crain'sNY Secy. Classifiedof State designated is not as agent responsible of LLC fored corrupt as agent filesupon submittedwhom process by against client or adsATES,LLC. run under Articles the of Organization wrong subheading. were filed PROPERTIES 19801. Cert. of Form. filed with DE Secy. upon whom process against it may be served the LLC may be served. SSNY shall mail a with the Secretary of State of New York and shall mail process to: c/o Cowan, (SSNY) on 12/12/06. Office location: New of State, 401 Federal St., Dover, DE Crain'scopy of any Classified process against is not the responsible LLC for corrupt files submitted by client or ads run under the wrong subheading. Crain's19901. Purpose: Classified any lawful is not activity. responsible forLiebowitz corrupt & filesLatman, submitted P.C., 1133 Ave. by of client the or ads run under the wrong subheading. York County. SSNY has been designated as COLUMBIA COUNTY Americas, NY, NY 10036, Attn: Simon Gerson, served upon him/her to The LLC, 75 agent of the LLC upon whom process against Maiden Ln., Ste. 408, NY, NY 10038. Notice of formation of C. Anson Hedges Esq. DE address of LLC: c/o The Corporation it may be served. SSNY shall mail a copy of Trust Co., 1209 Orange St., Wilmington, DE General purposes. Designs LLC. Arts. of org. filed with Secy. process to the LLC, 15 Washington Avenue, 19801. Arts. of Org. filed with DE Secy. of Brooklyn, New York 11205. Purpose: For any Of State of N.Y. (SSNY) on 5/23/08. Office State, 401 Federal St., Dover, DE 19901. Notice of Formation of CMF Eckhardt lawful purpose. location: New York County. SSNY designat- Purpose: any lawful activity. Crain's Classified is not responsible fored corrupt as agent filesof LLC submitted upon whom byprocess client or ads run under the wrong subheading. Master Fund L.P. Certificate filed with Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. Secy. of State of N.Y. (SSNY) on Notice of Qualification of Onyx against it may be served. SSNY shall mail Notice of Formation of Alui Properties, Healthcare, LLC. Authority filed with process to: 66 Madison Avenue, #2B, NY, 2/13/2008. Office location: NY County. LLC. Arts. of Org. filed with NY Dept. of SSNY designated as agent of LP upon NY Dept. of State on 4/25/08. Office NY 10016. Principal business location: location: NY County. Principal busi- State on 5/20/2008. Office location: NY whom process against it may be served. 66 Madison Avenue, #2B, NY, NY 10016. County. Principal business address: 322 ness address: 1660 Pearl St., Purpose: Any lawful activity. 1028885 w.o. SSNY shall mail process to: Citigroup Denver, CO 80203. LLC formed in W. 57th St., Unit 42 M1, NY, NY 10019. Managed Futures LLC, 731 Lexington RESTAURANT FOR SALE Crain's Classified is not responsible forSecy. corrupt of State files designated submitted as agent by of client LLC or ads run under the wrong subheading. Delaware (DE) on 6/29/05. NY Secy. Ave., 25th Fl., NY, NY 10022, Attn: of State designated as agent of LLC Notice of Formation of 23RD STREET, LLC. upon whom process against it may be Arts. of Org. filed with Secy. of State of Crain's Classified is not responsible forJennifer corrupt Magro. files Registered submitted agent byclient upon or adsupon run whom under process the wrong against subheading. it may Staten Island North Shore served and shall mail process to: c/o whom process may be served: CT be served and shall mail process to: N.Y. (SSNY) on 2/14/05. Office location: Poles, Tublin et al., LLP, 46 Trinity Pl., NY, c/o CT Corporation System, 111 8th Crain'sRESTAURANT ClassifiedBUSINESS is not FOR responsibleSALE forNY corrupt County. filesSSNY submitteddesignated as by agent client of or ads run under the wrong subheading. Corporation System, 111 8th Ave., NY, Great opportunity. Outside courtyard NY 10006. Term: until 12/31/2099. NY 10011. Name/address of each genl. Ave., NY, NY 10011, registered agent LLC upon whom process against it may Purpose: any lawful activity. Crain's Classified is not responsible forupon corrupt whom files process submitted may be by served. client or ads run under the wrong subheading. dining, party room & a la carte seating. be served. SSNY shall mail process to: ptr. available from SSNY. Term: until DE address of LLC: The Corporation Seats 170 indoor/outdoor Bar - 12/31/2030. Purpose: any lawful activity. Trust Co., 1209 Orange St., c/o Gilbride, Tusa, Last & Spellane LLC, PARADIGM CAPITAL ADVISORS LLC, a $298,000 - Call for more information Wilmington, DE 19801. Arts. of Org. 708 Third Avenue, 26th Fl., NY, NY 10017. domestic Limited Liability Company (LLC) 917.916.8839 Purpose: any lawful activity. VISIONS WITH SOLUTIONS, LLC, a filed with DE Secy. of State, 401 filed with the Sec of State of NY on 6-13- Federal St., Dover, DE 19901. 07. NY Office location: New York County. domestic Limited Liability Company (LLC) Purpose: any lawful activity. Crain'sDOJEAN ClassifiedLLC, a domestic is not Limited responsible Liability forSSNY corrupt is designated files submitted as agent upon by clientwhom or adsfiled run with under the Sec the of State wrong of NY subheading. on 3-10- TELECOMMUNICATIONS Company (LLC) filed with the Sec of State 08. NY Office location: New York County. process against the LLC may be served. Notice of Qualification of Kamas Holdings, of NY on 5-3-05. NY Office location: New SSNY is designated as agent upon whom SSNY shall mail a copy of any process LLC, App. for Auth. filed Sec’y of State York County. SSNY is designated as process against the LLC may be served. against the LLC served upon him/her to (SSNY) 5/19/08. Office location: NY Crain's Classified is not responsible foragent corrupt upon fileswhom submitted process against by clientthe or ads run under the wrong subheading. SSNY shall mail a copy of any process Julie Ravage, 603 W. 148th St., Ste. 6, County. LLC org. in DE 3/6/08. SSNY des- LLC may be served. SSNY shall mail a against the LLC served upon him/her to NY, NY 10031. General purposes. ignated as agent of LLC upon whom copy of any process against the LLC The LLC, 230 W. 147th St., Unit 1Q, NY, process against it may be served. SSNY served upon him/her to C/O Alan P. NY 10039. General purposes. Notice of Formation of Shelter Designs shall mail copy of process to c/o Trevor Raines, Esq., 535 Fifth Ave., 25th Fl., NY, EMERGENCY LLC, Art. of Org. filed Sec’y of State Crain's Classified is not responsible forBelton, corrupt 105 filesE. 34th submitted St., Ste. 125, by NY, client NY or ads run under the wrong subheading. NY 10017. General purposes. Notice of Formation of Compound Ventures COMMUNICATIONS Crain's Classified is not responsible for(SSNY) corrupt 3/7/08. files Office submitted location: byNY client or ads run under the wrong subheading. 10016. DE office addr.: c/o CSC, 2711 County. SSNY designated as agent of LLC IV, LLC. Arts. of Org. filed with Secy. of State SYSTEMS of N.Y. (SSNY) on 4/17/08. Office location: Centerville Rd., Wilmington, DE 19808. HOUSEHOLD NAME, LLC, a foreign upon whom process against it may be Cert. of Form. on file: SSDE, Townsend Limited Liability Company (LLC) filed with NY County. SSNY designated as agent of SPECIALISTS served. SSNY shall mail copy of process LLC upon whom process against it may be Bldg., Dover, DE 19901. Purpose: any the Sec of State of NY (SSNY) on 8-9-07 • FREE PICKUP & to 1 Penn Plaza, #6102, NY, NY 10119. served. SSNY shall mail process to: c/o lawful activities. DELIVERY using the fictitious name HOUSEHOLD Purpose: any lawful activities. Roosevelt Management Inc., 2500 Wilcrest NAME TEXAS, LLC. NY office Location: Drive, Ste. 200, Houston, TX 77042. NOTICE OF FORMATION OF • 48 HOUR New York County. SSNY is designated as Crain'sTURNAROUND Classifiedis not responsible for corrupt files submitted by client or adsSP8 run INTERNATIONAL under the wrong LLC, a subheading.domestic Purpose: any lawful purpose. SUPERDELUXE, Art. of Org. filed Sec’y of ON REPAIRS agent upon whom process against the Limited Liability Company (LLC) filed with State (SSNY) DEC 1, 2006. Office LLC may be served. SSNY shall mail a Notice of Formation of KFC Properties LLC, • FREE ENGRAVING the Sec of State of NY on 12-14-07. NY Location: NY county. SSNY designated as copy of any process against the LLC Crain'sOffice location: Classified New York is notCounty. responsible SSNY is forArt. corrupt of Org. filesfiled Sec'y submitted of State (SSNY) by client or adsagent run of underLLC upon the whom wrong process subheading. against • SHORT & LONG Crain'sserved upon Classified him/her to is Bob not Johnson, responsible 400 fordesignated corrupt as files agent submitted upon whom by process client or ads2/6/08. run underOffice location: the wrong NY County. subheading. SSNY it may be served. SSNY shall mail copy of TERM RENTALS designated as agent of LLC upon whom N. Loop 1604, Ste 202, San Antonio, TX against the LLC may be served. SSNY process to SUPERDELUXE, 195 78232. General purposes. process against it may be served. SSNY shall mail a copy of any process against shall mail copy of process to Attn: Charlie CHRYSTIE, 701C, NY, NY, 10002. the LLC served upon him/her to SJS Gammal, 1407 Broadway, NY, NY 10018. Purpose: any lawful purpose 307 Fifth Avenue, NY 10016 Notice of Qualification of Sirius Solutions Management Corp., 780 Third Ave., Ste. Purpose: any lawful activities.. 212-532-7400 GP, L.L.C. Authority filed with Secy. of 2101, NY, NY 10017. General purposes. NOTICE OF FORMATION OF LIMITED www.metrocomradio.com State of N.Y. (SSNY) on 5/1/08. Office Notice of Formation of Industco Holdings, LIABILITY COMPANY. NAME: R & C 529 location: NY County. LLC formed in Notice of Formation of Alvo Realty, LLC. LLC. Articles of Organization were filed with LLC. Arts. of Org. filed with Secy. of State the Secretary of State of New York(SSNY) TELEPHONE EQUIPMENT Delaware (DE) on 8/7/02. SSNY designat- Arts. of Org. filed with Secy. of State of of N.Y. (SSNY) on 4/28/08. Office location: ed as agent of LLC upon whom process NY (SSNY) on 4/10/08. Office location: on 04/03/08. Office location: New York Crain's Classified is not responsible for corrupt files submitted by client or adsNY runCounty. under SSNY the designated wrong subheading.as agent of County. SSNY has beendesignated as agent WILL BUY ALL against it may be served. SSNY shall mail NY County. SSNY designated as agent OFFICE TELEPHONE EQUIPMENT LLC upon whom process against it may of the LLC upon whom process against it process to: Capitol Services, Inc., 1218 upon whom process against it may be Headsets, Etc. served. SSNY shall mail process to c/o: be served. SSNY shall mail process to: may be served.SSNY shall mail a copy of Crain'sCall Toll Classified Free 877-742-4273 is not responsible forCentral corrupt Ave., files Ste. submitted100, Albany, NY by 12205. client or adsAlvo run Realty, under LLC, the 115 wrong W. 73rd subheading. St., NY, c/o Signature Urban Properties, LLC, 853 process to the LLC, c/o Richard Gershuny, 260 West 54th Street, Apartment 31J, New DE address of LLC: 1209 Orange St., NY 10023. Purpose of LLC: Any lawful Broadway, Ste. 2014, NY, NY 10003. Wilmington, DE 19801. Arts. of Org. filed activity. York, New York 10019. Purpose: For any Purpose: any lawful activity lawful purpose. with DE Secy. of State, 401 Federal St., PUBLIC & LEGAL Ste. 4, Dover, DE 19901. Purpose: any Notice of Formation of Elyse Pasquale Notice of Formation of HOMESLICE, LLC, a Notice of Formation of INNOVA CREATIVE lawful act or activity. Productions, LLC. Arts. of Org. filed with Crain's Classified is not responsible fordomestic corrupt LLC. files Arts. submitted of Org. filed by with client the or adsSERVICES run under LLC. Arts. the wrongof Org. filed subheading. with Secy. NOTICES Secy. of State of NY (SSNY) on 8/6/07. Crain'sSSNY on Classified01/09/08. Office is not location: responsible NY forof corrupt State of NY files (SSNY) submitted on 04/14/08. by clientOffice or ads run under the wrong subheading. Notice of Qualification of BLT 33 LLC. Office location: NY County. Princ. bus. County. SSNY has been designated as agent location: NY County. SSNY designated as upon whom process against the LLC may be agent of LLC upon whom process against it Crain'sAuthority Classifiedfiled with Secy. is notof State responsible of N.Y. forloc.: corrupt 230 E. files18th St., submitted NY, NY 10003. by client SSNY or ads run under the wrong subheading. served. SSNY shall mail a copy of process to: may be served. SSNY shall mail process to: (SSNY) on 4/29/08. Office location: NY designated as agent of LLC upon whom Name of Foreign LLC: FOIS-GP, LLC. App. for process against it may be served. SSNY Hayden Lockaby, 24 West 76th St., Apt. BR, c/o Elisabeth M. Kovac, Esq., 90 Park Ave., County. Principal business location: 11 Auth. filed NY Dept. of State: 3/28/08. Jurisd. shall mail process to: Levine Plotkin & NY, NY 10023. Purpose: Any Lawful Purpose. Ste. 1710, NY, NY 10016. Purpose: any Madison Ave., NY, NY 10010. LLC formed lawful activity. and date of org.: DE 3/27/07. NY State office Menin, LLP, 1740 Broadway, 22nd Fl., NY, loc.: NY County. Princ. bus. loc. of LLC: 230 in Delaware (DE) on 4/17/08. SSNY des- NY 10019. Purpose: any lawful activity. NOTICE OF FORMATION of Woo Jung A. Park Ave, Ste. 610, NY, NY 10169. SSNY has ignated as agent of LLC upon whom Notice of Formation of 301SG LLC. been designated as agent of LLC upon whom Cho, PLLC. Arts. Of Org. filed with Secy. process against it may be served. SSNY Of State of N.Y. (SSNY) on 3/27/08. Office Arts. of Org. filed with Secy. of State of process may be served. SSNY shall mail Notice of Formation of EAST 191 LLC. N.Y. (SSNY) on 11/19/2007. Office loca- copy of process to the LLC, c/o Gnosis shall mail process to: c/o Corporation Arts. of Org. filed with Secy. of State of location: New York County. SSNY desig- Service Company, 80 State St., Albany, tion: NY County. SSNY designated as Advisors, LLC, 230 Park Ave., Ste. 610, NY, N.Y. (SSNY) on 4/29/08. Office location: nated as agent of PLLC upon whom agent of LLC upon whom process NY 10169, Attn: Joseph Augustine. Addr. of NY 12207. DE address of LLC: 2711 NY County. SSNY designated as agent of process against it may be served. SSNY against it may be served. SSNY shall foreign LLC in DE is: 615 South DuPont Centerville Rd., Ste. 400, Wilmington, DE LLC upon whom process against it may shall mail process to: 49 West 76th Street, mail process to: c/o Galster Hwy., Dover, DE 19901. Auth. officer in DE 19808. Arts. of Org. filed with DE Secy. of #2D, NY, NY 10023. Principal business Management, 156 William St., Ste. 802, where Cert. of Form. filed is DE Sec. of be served. SSNY shall mail process to: State, 401 Federal St., Ste. 4, Dover, DE 191 E. 7th St., Apt. 4, NY, NY 10009. location: 49 West 76th Street, #2D, NY, NY NY, NY 10038. Term: until 12/31/2060. State, Townsend Bldg., Dover, DE 19901. Purpose: any lawful purpose. Purpose: any lawful activity. 19901. Purpose: any lawful activity. Purpose: any lawful activity. 10023. Purpose: The practice of law.

32 | Crain’s New York Business | June 9, 2008 nb23p32-33cls.qxp 6/5/08 3:16 PM Page 33

Crain's Classified is not responsible forCrain's corrupt Classified files submitted is not responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading. responsible by client or for adsCrain's corrupt run under Classified files the submitted wrong is not subheading.responsible by client or for ads corrupt run under files the submitted wrong subheading. by client or ads run under the wrong subheading.

PUBLIC & LEGAL NOTICES

Name of LLC: V AGENCY LLC. Notice of Qualification of Julius Baer Notice of Formation of BOWERY DEVEL- Notice of Qualification of MSLOF I, L.L.C. Notice of Formation of GEMJ Intimate Articles of Org. filed Dept. of State Investment Management LLC. Authority OPMENT, LLC, a domestic LLC. Arts. of Authority filed with Secy. of State of N.Y. Apparel LLC. Arts. of Org. filed with NY of NY on 4/9/08. Office location in (SSNY) on 4/30/08. Office location: NY Dept. of State on 4/24/08. Office location: filed with Secy. of State of NY (SSNY) on Org. filed with the SSNY on 03/21/08. NY: New York County. Principal bus 9/7/04. Office location: NY County. LLC County. LLC formed in Delaware (DE) on NY County. Principal business address: loc.: 11 Mercer Street, NY, NY Office location: NY County. SSNY has formed in Delaware (DE) on 5/3/04. SSNY 4/3/08. SSNY designated as agent of LLC 1407 Broadway, Ste. 504, NY, NY 10018. 10013. Secy. of State designated as Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. Secy. of State designated as agent of LLC designated as agent of LLC upon whom been designated as agent upon whom upon whom process against it may be Crain's Classified is not responsible foragent corrupt of LLC files upon submitted whom process by client or ads run under the wrong subheading. process against the LLC may be served. upon whom process against it may be against it may be served. Sec. of process against it may be served and shall served. SSNY shall mail process to: c/o served and shall mail process to: Seltzer State shall mail a copy of process mail process to the principal office of the Crain'sSSNY shall Classified mail a copy is notof process responsible to: forCT corrupt Corporation files System, submitted 111 8th byAve., client NY, or adsSussman run under & Habermann the wrong LLP, 100 subheading. Jericho to National Corporate Research, LLC: 330 Madison Ave., NY, NY 10017, 88 University Place 8th Fl., NY, NY NY 10011, registered agent upon whom Quadrangle, Jericho, NY 11753. Purpose: Ltd., 10 East 40th Street, 10th Attn: General Counsel. Arts. of Org. filed 10003. Purpose: Any Lawful Purpose. process may be served. Principal office of any lawful activity Floor, New York, NY 10016. with DE Secy. of State, 401 Federal St., LLC: 1585 Broadway, 37th Fl., NY, NY Purpose: any lawful activity. 10036. Cert. of Org. filed with DE Secy. of Ste. 3, Dover, DE 19901. Purpose: any Notice of Formation of Ladi Ladi Notice of Qualification of Tandem Global State, 401 Federal St., Ste. 4, Dover, DE lawful activity. International Trading LLC filed with NY Emerging Markets Fund, L.P. Authority filed Notice of Formation of HARON FAMILY, 19901. Purpose: all lawful purposes. with NY Dept. of State on 4/22/08. Office LLC amended to D.R.Y., LLC. Arts. of Org. Dept of State on 5/12/08. Office Location: location: NY County. LP formed in Delaware Crain'sNotice of ClassifiedFormation of The is notLevinsohn responsible Family forNY corrupt County, filesSecy of submitted State designated by client as or ads run under the wrong subheading. filed with Secy. of State of N.Y. (SSNY) on Notice of Formation of Raglan Plaza (DE) on 3/26/08. NY Secy. of State designat- 3/4/1999. Office location: NY County. II Limited Partnership. Certificate filed with agent of LLC upon whom process against ed as agent of LP upon whom process Secy. of State of NY (SSNY) on 3/31/08. 1938, LP. Cert. filed with NY Dept. of Crain's Classified is not responsible forSSNY corrupt designated files submittedas agent of LLC by upon client or ads run under the wrong subheading. it may be served and shall mail process to against it may be served and shall mail Office location: NY County. SSNY designated State on 4/15/2008. Office location: NY whom process against it may be served. the principal business address c/o Taiwo process to: c/o CT Corporation System, 111 as agent of LP upon whom process against it Oladele, 1735 Townsend Ave 3B Bronx NY County. Secy. of State designated as 8th Ave., NY, NY 10011, registered agent SSNY shall mail process to: The LLC, c/o may be served. SSNY shall mail process to: 10453. Purpose: Any lawful activity. Crain'sagent of ClassifiedLP upon whom is notprocess responsible against forupon corrupt whom files process submitted may be served. by client DE or ads run under the wrong subheading. K&R Realty Management Inc., 37 W. 65th The Partnership, 80 8th Ave., Ste. 1107, NY, address of LP: The Corporation Trust Co., St., 2nd Fl., NY, NY 10023. Term: until NY 10011. Name/address of each genl. ptr. it may be served and shall mail process to: The LP, c/o Windels Marx Lane & 1209 Orange St., Wilmington, DE 19801. 12/31/2049. Purpose: any lawful activity. available from SSNY. Term: until 4/1/2108. Crain'sNotice of ClassifiedQualification is of not The responsiblePartners for corrupt files submitted by client or adsName/address run under of thegenl.wrong ptr. available subheading. from NY Purpose: any lawful activities. (Brand Consultants) LLC. Authority filed Mittendorf, LLP, 156 W. 56th St., NY, NY Secy. of State. Cert. of LP filed with DE Secy. Notice of Qualification of HLT NY with Secy. of State of NY (SSNY) on 10019, Attn: Edward P. Nolan, Esq. of State, 401 Federal St., Dover, DE 19901. Waldorf LLC. Authority filed with Notice of Qualification of Locust Wood Select 4/29/08. Office location: NY County. LLC Name/address of genl. ptr. available from Purpose: any lawful activity. Secy. of State of NY (SSNY) on Capital Management, LLC. Authority filed with formed in Delaware (DE) on 4/28/08. Secy. of State. Term: until 4/1/2108. 10/22/07. Office location: NY Secy. of State of N.Y. (SSNY) on 2/25/08. SSNY designated as agent of LLC upon Purpose: any lawful activity. Notice of Qualification of Bagel Cafe, LLC. County. LLC formed in Delaware Office location: NY County. LLC formed in whom process against it may be served. Authority filed with Secy. of State of N.Y. (DE) on 9/20/07. SSNY designated Delaware (DE) on 2/7/08. SSNY designated SSNY shall mail process to: Davis & Notice of Formation of CHILAOS, LLC. (SSNY) on 5/21/08. Fictitious name in NY as agent of LLC upon whom process Crain'sas agent of Classified LLC upon whom is not process responsible against forGilbert corrupt LLP, files1740 Broadway, submitted NY, by NY client or ads run under the wrong subheading. State: Bagel Cafe NY, LLC. Office location: against it may be served. SSNY it may be served. SSNY shall mail process to: Arts. Of Org. filed with Secy. Of State 10019. Address to be maintained in DE: of NY (SSNY) on 4/23/08. Office loca- NY County. Princ. bus. loc.: 429 Third shall mail process to: c/o 1540 Broadway, Ste. 1504, NY, NY 10036. Crain's Classified is not responsible for corrupt files submitted by client or adsAve., run NY, under NY 10016. the LLC wrong formed subheading. in Corporation Service Company, 80 DE address of LLC: 1209 Orange St., 160 Greentree Dr., Ste. 101, Dover, DE tion: NY Co. SSNY designated as agent of LLC upon whom process against it Delaware (DE) on 11/6/07. SSNY desig- State St., Albany, NY 12207. Address Wilmington, DE 19801. Cert. of Form. filed 19904. Arts. of Org. filed with DE Secy. Of Crain's Classified is not responsible forto corrupt be maintained files submitted in DE: c/o by client or ads run under the wrong subheading. State, 401 Federal St., Ste 4., Dover, DE may be served. SSNY shall mail nated as agent of LLC upon whom with DE Secy. of State, P.O. Box 898, Dover, process to: The LLC, 37-01 Main Corporation Services Company, 2711 DE 19903. Purpose: all lawful purposes. 19901. Purpose: any lawful activities. process against it may be served. SSNY Centerville Rd., Ste 400, Wilmington, Street. Flushing NY 11354. Purpose: shall mail process to: c/o Cyruli Shanks DE 19808. Arts. of Org. filed with DE any lawful activities. Hart & Zizmor, LLP, 420 Lexington Ave., Secy. Of State, 401 Federal St., Ste Notice of Qualification of MQS Capital NOTICE OF FORMATION of R S & P L, Crain's Classified is not responsible forSte. corrupt 2320, NY, files NY submitted10170. DE address by client of or ads run under the wrong subheading. 4., Dover, DE 19901 . Purpose: any Partners, LP, App. for Auth. filed Sec'y of LLC. Articles of Organization filed with the NOTICE OF FORMATION of FLOE LLC: c/o Corporation Service Co., 2711 lawful activities. State (SSNY) 3/13/08. Office location: NY Sec. of State of NY (SSNY) on 04/23/08. VENTURES LLC. Arts. Of Org. filed Centerville Rd., Ste. 400, Wilmington, DE. County. LP org. in DE 3/11/08. SSNY desig- Office location: New York County. SSNY with Secy. Of State of N.Y. (SSNY) Cert. of Form. filed with DE Secy. of State, Notice of Formation of Soha Retail nated as agent of LP upon whom process on 4/29/08. Office location: New against it may be served. SSNY shall mail has been designated as agent upon whom 401 Federal St., Dover, DE 19901. Manager LLC. Arts. of Org. filed with York County. SSNY designated as Purpose: any lawful activity. Crain'sSecy. of State Classified of NY (SSNY) is not on responsible 3/7/08. forcopy corrupt of process files to submittedAttn: Neal Berger, by 171 client or adsprocess run underagainst theit may wrong be served. subheading. SSNY agent of LLC upon whom process Madison Ave., Ste. 1300, NY, NY 10016. Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. Crain's Classified is not responsible forOffice corrupt location: files NY submitted Co. SSNY designated by client or ads run under the wrong subheading. shall mail copy of any process to against it may be served. SSNY shall DE office addr.: 1220 N. Market St., Yungman Lee, 207 Bowery, New York, NY mail process to: 190 E 72nd St., Unit Substance of Registration as a Registered as agent of LLC upon whom process Wilmington, DE 19801. Cert. of LP on file: against it may be served. SSNY shall mail 10002. Purpose: To engage in any lawful 17-D, NY, NY 10021. Principal busi- Limited Liability Partnership of GERMAN SSDE, Townsend Bldg., Dover, DE 19901. ness location: 23 E 10th St., Unit RUBENSTEIN LLP (LLP). Certificate of process to: The LLC, c/o Artimus Name/addr. of each gen. ptr. avail. at act or activity. The Principal Business location is: 207 Bowery, NY, NY, 10002 711, NY, NY 10003. Purpose: Any Registration filed with the Secy. of State of Construction Inc., 37 West 65th St., NY, SSNY. Purpose: any lawful activities. lawful activity. NY 10023. Purpose: any lawful activities. N.Y. (SSNY) on May 21, 2008. Office loca- tion: New York County. SSNY designated SINGH EQUITIES, LLC Notice of Conversion Notice of Formation: Solar Smart, LLC (LLC) Notice of Formation of Limited Liability as agent of LLP upon whom process Notice of Qualification of GCP (JPM) Arts. of Org. Filed with the Sec.of State NY Investments, LLC. Authority filed of a Partnership into the above Limited Company (LLC): Egan Wealth Group LLC. against it may be served. SSNY shall mail Liability Company (“LLC”). A Cert. of (SSNY) on 4/8/2008. NY Office Location: with NY Dept. of State on 3/18/08. New York County. SSNY Desig. Agent of LLC Articles of Organization filed with the Sec. process to c/o The Partnership, 200 West Office location: NY County. LLC Conversion was filed with the Department of upon whom process against it may be of State of NY (SSNY) on May 6, 2005. 70th Street, Suite 8B, New York, NY formed in Delaware (DE) on 6/6/05. State of NY on 12/5/2007. Office Location: Crain'sserved. ClassifiedSSNY to mail iscopy not of responsibleprocess to forNY corrupt office location: files submitted New York County. by client or ads10023. run Purpose: under the is the wrong practice subheading. of law. NY Secy. of State designated as LLC at 224 West 30th St., Suite 403, New SSNY designated agent to serve process. agent of LLC upon whom process New York County. The street address is: 22 West 27th Street, New York, NY 00000. York, NY 10001-4905. Purpose: any lawful SSNY shall mail a copy of process vs. NOTICE OF SALE against it may be served and shall purpose. mail process to the principal busi- The Secretary of the State of NY (“SSNY”) LLC c/o the LLC to 481 Eighth Avenue SUPREME COURT: COUNTY OF BRONX - BANK ness address: c/o Greenhill & Co., has been designated as agent of the LLC 1549, New York, NY 10001. Purpose of OF NEW YORK AS TRUSTEE FOR THE CERTIFI- Crain's Classified is not responsible forLLC, corrupt 300 Park files Ave., submitted 23rd Fl., by NY, client NY or adsupon run whom under process the against wrong it subheading.may be Notice of Formation of Autoexportology the LLC: any and all lawful activities. CATEHOLDERS CWABS, INC. ASSET-BACKED 10022. DE address of LLC: c/o The LLC, Art. of Org. filed Sec'y of State (SSNY) CERTIFICATES, SERIES 2006-5 C/O COUNTRY- served. SSNY shall mail a copy of any Corporation Trust Co., 1209 Orange Crain's Classified is not responsible for3/6/08. corrupt Office files location: submitted NY County. by clientSSNY or ads run under the wrong subheading. WIDE HOME LOANS, INC., Plaintiff, AGAINST Notice of Qualification of Woodbine Capital St., Wilmington, DE 19801. Cert. of process served upon the LLC to: The LLC, designated as agent of LLC upon whom JOHNNY SEBASTIAN, ET. AL., Defendant(s). Form. filed with DE Secy. of State, 22 West 27th Street, New York, NY 00000. process against it may be served. SSNY Management LLC. Authority filed with NY Pursuant to a judgment of foreclosure and 401 Federal St., Dover, DE 19901. Purpose: any lawful act. shall mail copy of process to 303 Fifth Ave., Dept. of State on 5/19/08. Office location: sale duly dated 1/24/2007, I, the undersigned Purpose: any lawful activity. Ste. 1016, NY, NY 10016. Purpose: any NY County. LLC formed in Delaware (DE) Referee will sell at public auction at the Bronx lawful activities. on 5/6/08. NY Secy. of State designated as County Courthouse, Room B-129, 851 Grand Crain'sNotice of ClassifiedFormation PG is 69 not LLC responsible art. of org. forNotice corrupt of Formation files submitted Team Love, LLC by art. client of or ads run under the wrong subheading. agent of LLC upon whom process against Concourse, Bronx, New York, on 6/30/2008 at org. filed Secy. of State NY (SSNY) 4/4/08. it may be served and shall mail process to 2:00 PM, premises known as 2026 Gleason filed Secy. of State NY (SSNY) 1/23/08. Notice of Formation of AGARWAL REALTY, Off. loc. in NY Co. SSNY designated as agent the principal business address: 900 3rd Avenue, Bronx, NY 10472. All that certain plot Crain's Classified is not responsible forOff. corrupt loc. in NY files Co. submitted SSNY designated by client as or adsof runLLC upon under whom the process wrong may subheading. be served. LLC. Arts. of Org. filed with NY Dept. of Ave., Ste. 202, NY, NY 10022. DE address piece or parcel of land, with the buildings and agent of LLC upon whom process may be SSNY shall mail copy of process to: attn. State on 5/9/08. Office location: NY Crain's Classified is not responsible for corrupt files submitted by client or adsof LLC: run c/o under The Corporation the wrong Trust subheading. Co., improvements thereon erected, situate, lying served. SSNY shall mail copy of process Nathaniel Krenkel, 352 E 13th St, #3, NY, NY County. Secy. of State designated as agent 1209 Orange St., Wilmington, DE 19801. and being in the New York City, Borough of to: Philippe Guegan, 68 Bradhurst Ave, 10003. Purpose: Any lawful purpose. of LLC upon whom process against it may Bronx, County of Bronx and State of New York, Arts. of Org. filed with DE Secy. of State, 1U, NY, NY 10039. Purpose: Any lawful be served and shall mail process to: 30 Section, Block and Lot: 14-3802-21. P.O. Box 898, Dover, DE 19903. Purpose: Notice of Qualification of Fintech Real Fieldstone Court, New City, NY 10956. Approximate amount of judgment purpose. any lawful activity. Estate Holdings LLC. Authority filed with Purpose: any lawful activity. $397,999.16 plus interest and costs. Notice of Formation of RIVER TWICE LLC. Secy. of State of N.Y. (SSNY) on 5/5/08. Premises will be sold subject to provisions of filed Judgment Index #16482/06. Mario Arts. of Org. filed with Secy. of State of NY Office location: NY County. LLC formed in NOTICE OF FORMATION of Clementine Notice of Formation of CORONA SPORTS Consignment LLC. Arts. Of Org. filed with Biaggi, Jr., Esq., Referee, Steven J. Baum PC, (SSNY) on 4/3/08. Office location: NY Delaware (DE) on 5/2/08. SSNY designat- CAFÉ, LLC Arts. Of Org. filed with Secy. Of Attorneys for Plaintiff, P.O. Box 1291, Buffalo, ed as agent of LLC upon whom process Secy. Of State of N.Y. (SSNY) on 4/04/08. County. SSNY designated as agent of LLC State of NY (SSNY) on 4/23/08. Office NY 14240-1291 Dated: 5/27/2008 Crain'sagainst it Classifiedmay be served. is not SSNY responsible shall mail for corrupt files submitted by client or adsOffice run location: under New the York wrong County. subheading. SSNY des- upon whom process against it may be location: NY Co. SSNY designated as ignated as agent of LLC upon whom process process to principal business location: c/o Crain'sserved. SSNY Classified shall mail is process not responsible to princi- for corrupt files submitted by client or adsagent run ofunder LLC upon the whom wrong process subheading. against against it may be served. SSNY shall mail pal business location: c/o Zachary Fintech Advisory Inc., 375 Park Ave., Ste. process to: 39 1/2 Washington Square 3804, NY, NY 10152. DE address of LLC: it may be served. SSNY shall mail process Karabell, 121 W. 72nd St., NY, NY 10023. South, NY, NY 10012. Principal business 2711 Centerville Rd., Ste. 400, Wilmington, to: The LLC, 37-01 Main Street. Flushing location: 39 1/2 Washington Square South, Purpose: any lawful activity. To place your DE 19808. Arts. of Org. filed with DE Secy. NY 11354. Purpose: any lawful activities. NY, NY 10012. Purpose: Any lawful activity. of State, 401 Federal St., Dover, DE 19901. NOTICE OF FORMATION of RBR Technology Purpose: any lawful activity. Notice of Formation of Strada Notice of Formation of Primeiro Productions classified ad call LLC. Arts. Of Org. filed with Secy. Of State of Development LLC, Art. of Org. filed LLC. Arts. of Org. filed with Secy. of State of N.Y. (SSNY) on 1/07/08. Office location: New Notice of Formation of Barry LLC. Arts. Sec’y of State (SSNY) 4/9/08. NY (SSNY) on 01/23/08. Office location: NY York County. SSNY designated as agent of of Org. filed with Secy. of State of N.Y. Office location: NY County. SSNY County. Principal business location: c/o LLC upon whom process against it may be (SSNY) on 4/25/08. Office location: NY designated as agent of LLC upon Levine Plotkin & Menin, LLP, 1740 Broadway, John Gallagher served. SSNY shall mail process to: 460 County. SSNY designated as agent of whom process against it may be 22nd Fl., NY, NY 10019. SSNY designated as West 24th Street, #7B, NY, NY 10011. LLC upon whom process against it may served. SSNY shall mail copy of agent of LLC upon whom process against it Principal business location: 460 West 24th be served. SSNY shall mail process to: process to 331 W. 57th St., Ste. may be served. SSNY shall mail process to: @ 212-210-0189 Street, #7B, NY, NY 10011. Purpose: Any 95 Delancey Street, NY, NY 10022. 301, NY, NY 10019. Purpose: any The LLC, 135 Central Park West, 6N, NY, NY lawful activity. Purpose: any lawful activity. lawful activities. 10023. Purpose: any lawful activity.

June 9, 2008 | Crain’s New York Business | 33 Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. cn012099 6/5/08 10:25 AM Page 1

NOT EVERYONE HATES WAKING UP IN THE MORNING.

CRAIN’S PRESENTS Building upon its 23-year history as the most trusted name in New York business, Crain’s is giving readers the opportunity to tell us why their company is the best place to work. Nominations are open for this inaugural NYC honor, recognizing outstanding employers in the five boroughs. Companies will be profiled in Crain’s New York Business and honored at a fall 2008 event.

Does your company allow you to:
Work with a stellar group of people?
Do what you enjoy?
Explore new opportunities for growth?
Follow your own path?

Tell us why your company is so great by nominating it as one of New York City’s Best Places to Work at www.crainsnewyork.com/bestplaces CNYB 06-09-08 A 35 6/5/2008 8:20 PM Page 1

BUSINESS TABLE TALK Posh South Gate shines on Central Park PAGE 39

GOTHAM GIGS ALL TIED UP: David Hart (right) coordinates his Animal doc neckwear business with the help of his the new vice president and iPhone. director of health programs for the Wildlife Conservation Society, WILLIAM KARESH, 53, helps ensure animals’ health and safety. ON THE ROAD Mr. Karesh, who has a doctorate in veterinary medicine, has been with the society since 1989. He has traveled in Africa, South America and Asia, focusing on protecting against illness in wild animals ranging from orangutans to sea lions. GLOBAL PROTECTION Mr. Karesh is based at the Bronx Zoo, but most members of his 100-person team are spread out among 30 countries.They work to treat new diseases and prevent established ones, like rabies, from moving into the wild habitat. COMING UP Mr. Karesh is teaming up with members of the Asia-Pacific Economic Cooperation to study disease links among humans, wildlife and domestic animals. “A lot of my work now is about creating partnerships,” he says. “You can only chase elephants for so many years.” —adrianne pasquarelli EXPERT OPINIONS buck ennis

BY ADRIANNE PASQUARELLI NIFTY GIFT IDEAS FOR DAD year ago, david hart was suffering from the key is to give dad an Addicted organization anxiety. He had just started his own upgrade, not an overhaul. Give him something he’ll use, line of upscale men’s ties and was always on the go. that’s more stylish than he As a one-man business, he had to coordinate would buy for himself.Try meetings, track fabric deliveries and convert meters Nike’s new Storm Fit M-65 to the into yards, as well as take photographs of objects jacket, $395, for outdoor dad, that served as creative inspiration. Iomega’s flask-shaped 250- gigabyte hard drive, $142.45, Time was money, and Mr. Hart needed to take for corporate dad. Occidental iPhone his office with him. has a pimped-out tool belt, The Apple iPhone that he bought in November solved his problems.The $235, for blue-collar dad. entrepreneur, who has yet to hire any staffers, uses the high-powered device Don’t be afraid of the The next generation could to keep himself together. traditional stuff, either.Try A Ralph Lauren’s flashy Purple be released this week “It’s really helped me get organized,” Mr. See Dependent on Page 36 Label ties, $265 each, but make it look like you put THE STATS thought into the gift. —tyler thoreson Early adopters 28% 40% 47% 75% Executive editor Carry an iPhone instead Have trouble displaying Switched to AT&T Report increased Men.Style.com report back of a notebook computer certain Web sites for the iPhone Web browsing Source: Rubicon Consulting survey of iPhone users, March 2008

June 9, 2008 | Crain’s New York Business | 35 CNYB 06-09-08 A 36 6/5/2008 8:47 PM Page 1

BUSINESS LIVES HOME FRONT Tricked-out model units fit bill for many

First-time buyers, “A model apartment is the most expensive sales tool but the best one empty nesters alike you can have,” says David Picket, president of the Gotham Organiza- welcome a stylish, tion,which developed the Langston, a condo at West 145th Street and FULLY EQUIPPED: Carole and move-in-ready pad Larry Post bought their condo, Bradhurst Avenue in Harlem. which included staples in the cupboard, last year. BY JUDITH MESSINA Spurring sales

to spur sales in a slowing market, buck ennis fter taking one look Mr. Picket is offering the remaining at a model apartment in three-bedroom penthouses at the buyers still get a deal. Many such Then there’s the buyer’s profile. a 10% discount on the furnishings the Hudson, a luxe new Langston with the furniture includ- purchasers are transplanted subur- Putting their own style stamp on a from the developer. “When we condo on West 60th ed at no extra cost. banites who don’t want to have to home is a must for most purchasers. walked in,we felt we could bring our Street, Larry Post liked “There are four units left,” he shop or young professionals going But for those who have multiple res- suitcases and live comfortably.” Ait so much that he bought it, as well says. “I’ve done really well and am into their first grown-up digs. idences or who are downsizing,buy- Amala Muhammad-Redd had a as everything in it—down to the “People walk in and say, ‘I see ing a model can be a welcome alter- similar feeling about the co-op she books,the martini set on the bar and myself here,’ and envision them- native to a big decorating job. bought last year at 100 W. 93rd St. the coffee beans in the cupboard. “Potential selves in that apartment,” says But for her,the purchase was a grad- He and his wife, Carole, moved Loretta Bradbury, sales director for Perfectly suited uation from her tiny studio in the in last year with little more than buyers walk in Sunshine Corcoran Marketing, that was the situation for Ge- same neighborhood into a new their toothbrushes and their dog. who has had as many as three clients offrey Brooks and his wife, who af- lifestyle. “When we saw it, we loved it as and say, ‘I see want to buy the same model apart- ter selling their 10,000-square-foot A Brooklyn native, Ms. Muham- it was,” says Mr. Post, a consultant ment at 10 West End Ave. home in Watchung, N.J., wanted a mad-Redd was then marketing di- and investor. myself here’ ” Of course, buying a model isn’t “smaller environmental footprint.” rector for Halstead Property.She had As competition for buyers in the easy. Their former belongings would hired the designer of the model units city intensifies, developers are For one thing, they are rare— not have suited the 2,000-square- and worked with him on decorating spending tens of thousands of dol- usually just a few apartments in foot apartment they chose at the ideas.Seeing one all decked out made lars to fill model apartments with all buildings with hundreds of units. Ariel, at West 99th Street and her want to live in it. the accoutrement of stylish living, looking to be finished. If this is And some developers won’t part Broadway, Mr. Brooks says. They “I [had gone] from college stuff to from European coffeemakers to something that will make these with the showpiece until a large part closed on the unit—whose rooms, my roommates’stuff and first-apart- plush bathroom towels. And pur- units move in a market that’s gotten of the building has been sold, which including an office, were complete- ment stuff, and I wanted to move chasers,increasingly attracted to the a little sluggish, that’s great.” was the case with Mr. Post. ly outfitted—in April. into a more elevated apartment,” aura of sophistication provided by Not all developers are so gener- “By the time we got here, people “The furniture was designed to Ms. Muhammad-Redd says. “This the high-priced decor and the idea ous. Some negotiate a hefty price for were living [in the building] and the fill up the space very nicely and was that rite of passage for me.” of a hassle-free move-in, are snap- furnishings in a model.Still,that fig- developer was ready to move on,” he made it look very attractive and liv- ping them up. ure is invariably less than retail, so says. able,”says Mr.Brooks,who received COMMENTS? [email protected] Dependent on their iPhones THE CHALLENGERS AS APPLE PREPARES TO DEBUT its next phone, the Continued from Page 35 bad habits. The Upper East Side has also become more punctual. field of competitors has become more crowded. Hart says. resident has become more of a But Ms. Blankley says the Dash, available through T-Mobile, weighs in at “Especially in my industry, “couch Apple,” as she puts it. iPhone offers her something even $99.99 with rebates and has Wi-Fi where there’s so much going on and “I’m lazy,” she says. “If I’m in more important than waking up on capability and voice-activated dialing. so many deadlines.” bed, instead of opening up my com- time and never missing a meeting:It Sprint’s Samsung Instinct will be introduced within a Apple is expected to unveil the puter, I download on my phone.” doesn’t have the raised keys a typi- few months. Boasting Bluetooth technology, a touch next generation of its groundbreak- Never even an arm’s length from cal cell phone keypad does, so it screen and MP3 capabilities, the phone is ing iPhone this week, near the gad- her iPhone, Ms. Zarin whips it out saves on manicure bills and eases rumored to have a price tag of about $200. get’s one-year anniversary. Though at lunch with friends to display pho- wear and tear on the digits. The BlackBerry Bold Smartphone, many holdouts await the new release tos from the previous night’s party “When I was using the Black- unveiled May 12, will hit the shelves this with bated breath, early adopters, and watches movies on the small Berry, my thumbs would get really summer. With the fastest processor and most like Mr. Hart, say the phone has al- screen while flying or at the beach. sore,” she says. “This is a lot easier.” vivid screen of any BlackBerry on the market, it is expected ready transformed their lives. Bethany Blankley says the prod- Ms. Blankley, who bought her to run between $300 and $400. uct has streamlined her activities. iPhone shortly after it came out, is Apple Store, and make it snappy As director of media relations at the one of thousands to swallow the jill zarin, who stars on Bravo’s Hudson Institute, a think tank, she original $599 price tag for the eight- The Real Housewives of New York needs to be reachable at all hours to gigabyte version. Though annoyed Apple sold about 5.7 million laments Matthew Hubert, who City and runs her own fabric and reporters on deadline. Because she when the company lowered the iPhones from last June through the runs a real estate business on the home furnishings firm,is already on has no landline, she relies solely on price a few months later, she appre- first quarter of 2008, according to Upper East Side.“That was the first iPhone number three. the iPhone for social and profes- ciated the $100 rebate and spent it company reports. But analysts say deal-breaker for me.” When the second one was run sional e-mails and calls after office on AppleCare protection plans for sales are less robust than forecast However, if speculation about over by a car one night after Ms. hours. her two Mac computers. and will need to accelerate to meet the iPhone’s next generation rings Zarin dropped it in the street, the The touch-screen device has re- Chief Executive Steve Jobs’ goal of true and the glitches are ironed out, self-proclaimed Apple aficionado placed Ms. Blankley’s cell phone, Some negatives 10 million units for 2008. Mr. Hubert pledges to shelve his hopped into a cab and sped over to MP3 player and BlackBerry, thus the iphone—still expensive at The next iteration is expected to Motorola Razr 2 and make a beeline the company’s 24-hour store on lightening her load. Oddly, since $399—has its drawbacks. Com- address many of those problems, for the nearest Apple Store. Fifth Avenue to get a new one. abandoning an alarm clock and a plaints includeslowInternet connec- though whether it will satisfy every But Ms. Zarin concedes that the watch in favor of using iPhone’s per- tions, no GPS and difficulty down- critic is unclear. COMMENTS? object has reinforced at least some tinent features,the Upper West Sider loading some Web applications. “There’s no stereo Bluetooth,” [email protected]

36 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 37 6/5/2008 8:22 PM Page 1

BUSINESS LIVES CORPORATE LADDER Susan Bick From ballistics to ballet Lincoln Center’s well as it can,” says Ms. Bick, who started her new assignment one PERSONNEL FILE director of security will month ago. “We have 5 million vis- itors a year now, and once the rede- ORGANIZATION Lincoln Center draw on NYPD work; velopment is finished we expect a lot for the Performing Arts first woman in charge more.” TITLE Director of security Big plans AGE 48 BY MIRIAM KREININ SOUCCAR though construction is still un- RÉSUMÉ 22 years as an NYPD der way on the center’s $1 billion re- officer, most recently as deputy uring her 22-year development—which aims to bring inspector career with the New more people onto the Lincoln Cen- York Police Depart- ter campus with new eateries and MANAGEMENT STYLE ment, Susan Bick ar- public spaces—Ms. Bick is already Collaborative rested a man who was putting new security plans in place. HOBBIES Working out and Ddriving around the Bronx late at First, she is beefing up the train- reading night with a sawed-off shotgun on ing of the 100 or so security officers his lap and another gun attached to who work under her. She also plans his ankle. to set up motivational programs NYPD. After working there for six She notified families when new- aimed at cultivating more team spir- years, Ms. Bick—who once wanted ly released sex offenders moved into it among those officers. to become a journalist—decided to their neighborhoods. “She has a very strong work eth- become a cop. And she was responsible for se- ic, too strong in fact; sometimes you curity during such major events as have to tell her to calm down,” says Reaching out the Macy’s Thanksgiving Day Pa- Jim Tuller, assistant chief and bor- though she has taken part in

rade. ough commander for Patrol Bor- many dangerous arrests, Ms. Bick, buck ennis So it would seem that her new ough Manhattan South. “She’s the who is single, is most proud of her job as director of security for Lin- person you want on your team.” work on the force as a community af- Bick calls her new job “the pinnacle Working at Lincoln Center of- coln Center for the Performing Arts Ms. Bick, who grew up in the fairs sergeant.In that role,she organ- of my career.” fers other benefits. would be a walk in the park.But Ms. Bronx, started working for the ized a picnic in Central Park for “In New York City, I am the first “This is such a positive place to Bick,one of just a handful of women NYPD as an administrator when neighborhood kids to meet police of- female in charge of the security for be,” Ms. Bick says. “Even just walk- to rise to the level of deputy inspec- she was 20 to fulfill one of her dying ficers, and brought in senior citizens such a large venue,” she says. “It’s ing on the plaza and seeing the bal- tor in the NYPD, takes it very seri- father’s wishes. He wanted both her who were afraid to speak to police. very exciting to see females moving lerinas is a great experience.” ously. and her mother to have health ben- Ms. Bick’s colleagues on the po- up in this world, because the securi- “I have to be ‘on’ all the time and efits after he died, so he asked them lice force were surprised and sad- ty field is more or less male domi- COMMENTS? make sure everything is running as to try and get civilian jobs in the dened by her departure, but Ms. nated.” [email protected]

June 9, 2008 | Crain’s New York Business | 37 CNYB 06-09-08 A 38 6/6/2008 1:47 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING He was formerly first vice president at operating officer. He had been president Citrin Cooperman & Co.: Victor Mizzaro, the Chicago Fraternal Order of Police. and chief operating officer at HOT JOBS 47, was promoted to partner from RREEF Alternative Investments: Susan DynAmerica Manufacturing. director. Barlow, 53, was appointed managing Steve Winchester, 55, was promoted to director and head of global client MEDIA & ENTERTAINMENT WANTED: CHIEF FINANCIAL OFFICER partner from tax director. relations. She had been with American Fortune|Money Group: Lori Dente, 44, New York State Society of Certified Public Value Partners, which she co-founded. was named general manager. She had COMPANY Marsh & McLennan Cos. Accountants: Joanne S. Barry, 50, was been chief financial officer and chief promoted to deputy executive director HIGH TECH & NEW MEDIA operating officer at Alpha Media Group. JOB DESCRIPTION Responsible for financial oversight of the world’s from managing director of YCD Multimedia: Carter Etherington, 37, Rodale Inc.: Katharine Ziga, 34, was largest insurance broker, with a market capitalization of $13.6 billion communications. was appointed chief marketing officer. appointed executive director and He had been director, content business manager at Rodale Books. She MOST IMPORTANT TASKS Supervising financial activities and ADVERTISING & COMMUNICATIONS distribution and partnership marketing, had been director of business operations regulatory compliance of Marsh & McLennan’s insurance and Exelate Media: Mark S. Zagorski, 39, was at MTV Networks. at Random House Information Group. consulting arms: Marsh, Guy Carpenter, Mercer, Oliver Wyman, and promoted to chief revenue officer from Waterfront Media: Marjorie Martin, 49, Kroll; relaying information to CEO Brian Duperreault and chief marketing officer. LAW was appointed senior vice president and communicating with Wall Street analysts Siegel+Gale: David Keefe, 42, was Lowenstein Sandler: Lawrence A. Spector, general manager of online health property promoted to global director, media and 49, joined as member. He had been a Everyday Health. She was formerly senior CREDENTIALS NEEDED Extensive experience in senior treasury and entertainment, from vice president of partner at Fulbright & Jaworski. vice president at About.com Health. tax posts at a multinational company; background in strategic business development, media and McKool Smith: Ann Schofield Baker, 35, transaction planning and execution entertainment. joined as principal. She had been a REAL ESTATE Unit 7: Steve Capp, 48, was promoted to partner at McDermott Will & Emery. Carlton Advisory Services: Sara Bejjani, SALARY According to an April filing, former CFO Matthew Bartley chief creative officer from group creative Paul Weiss Rifkind Wharton & Garrison: 39, joined as vice president. She had received a salary of $650,000 and a $435,000 bonus in 2007 director. Walter G. Ricciardi, 54, joined as partner. been chief executive at Royal UPSIDE Chance to play a key role in a major firm’s reorganization He had been deputy director, division of Investments, which she founded. FINANCE & INSURANCE enforcement, at the Securities and Brendon Nepon, 24, joined as an analyst. DOWNSIDE Marsh & McLennan is still trying to recover from a costly Dow Jones Indexes: Robert Podgorny, 59, Exchange Commission. He had been an analyst at Hypo Real 2005 settlement of charges that it rigged bids to direct business to joined as manager of fiduciary relations. Thacher Proffitt & Wood: E. Lee Smith, Estate Capital Corp. preferred insurers and boost its own commissions Cohen Brothers Realty Corp.: 48, was promoted to partner from Michael A. —DAMIAN GHIGLIOTTY EXECUTIVE PROMOTIONS counsel, effective July 1. Szollosi, 52, was appointed chief Wilson Sonsini Goodrich & Rosati: Stuart operating officer and senior vice Crain’s lists the promotion and hiring of New York A. Williams, 54, joined as partner. He president. He had been chief operating area senior executives on a space-available basis, had been chief legal officer at Mylan. officer at Macklowe Properties. with priority given to positions in New York City. WolfBlock: James J. Vincequerra, 34, Colliers ABR Inc.: Robair Reichenstein, 45, The fastest way to get an announcement into joined as partner. He was formerly an was named managing director. He was Prudential Douglas Elliman: Lior Barak, SERVICES Crain’s is to submit details online by filling out the associate at Thelen Reid Brown formerly first vice president at CB 42, was promoted to senior vice Coro New York Leadership Center: Scott form at www.crainsnewyork.com/submit. The Raysman & Steiner. Richard Ellis. president from vice president. Millstein, 38, was appointed executive Executive Moves column is also available online. Cushman & Wakefield: Shawna Menifee, Christine Blackburn, 27, was promoted director, effective Aug. 1. He is currently Crain’s cannot confirm receipt of listings or say MANUFACTURING 40, was promoted to senior director to senior vice president from vice interim chief executive at Safe Horizon. when they will appear. D3 LED: Don Maher, 61, joined as chief from director. president. —sarah studley

38 | Crain’s New York Business | June 9, 2008 CNYB 06-09-08 A 39 6/5/2008 2:38 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape tastes and textures of a wild mush- and lamb stew. Porcini mushroom top, or a delicious pot de crème sur- room martini with spinach fondue, jus accents prize Gianonne chicken, rounded by tapioca-size balls of crisp pancetta and a poached egg. done up with a tart of spring onions crunchy chocolate croquante. Long Island’s vaunted Satur Farms and speck. Seafood gets full atten- The verdict is unanimous on provides exceptional organic let- tion with butter-roasted lobster per- sommelier Troy Weissman’s ability tuces for a salad with green herbs, fumed with kimchi, and an exotic to come up with perfect pairings radish and endive. Nettle Meadow spin on salmon. It is “short-cured,” every time. Low-end markups are Kunik,a triple-cream cheese unique then anointed with a red and gold- steep, but the man has the goods to to upstate, gets co-star status with en beet gastrique, ramps and clove. please every pocket and palate. delicate white asparagus gratinéed My jury remains hung on the clove. Service overall is attentive and with black truffle butter. Glitzy desserts ($11) run to intelligent. Among mains, a succulent items like a glossy chocolate leaf standout is oven-roasted sliced lamb napoleon with edible gold paper on COMMENTS? [email protected] loin served with a spring veg- etable—edamame, most notably—

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buck ennis (212) 484-5120 HITTING HEIGHTS AFTER HONING CRAFT: Chef Kerry Heffernan takes center stage at South www.jumeirahessexhouse.com/ Gate, the polished new signature restaurant of the Jumeirah Essex House hotel. southgate ### 1.800.862.3210 CUISINE Modern American www.kvlav.com WINES 675 choices, 22 by the Depend on KVL like CRAIN’S Posh spot glows glass, sommelier DRESS No code NOISE LEVEL Moderate PRICE RANGE $29-$39; on Central Park six-course tasting, $95 WINE MARKUP 100%-400% York is now merely private function South Gate offers space for the hotel as the culinary CREDIT CARDS All major contemporary, spotlight swings to its park side. RESERVATIONS Recommended A rarity these days, conversation Marcum & Kliegman LLP HOURS Lunch, Mon.-Sat., seasonal American in can actually flourish at South Gate’s Certified Public Accountants & Consultants coolly elegant dining room as well as 11:45 a.m.-2 p.m.; Dinner, Jumeirah Essex House Sun.-Thurs., 5:30-10 p.m., in the bar/tavern area, a luxurious & gallery and a 20-seat “tasting table.” Fri.-Sat., 5:30-10:30 p.m.; ertain homegrown Total seating is more than 200. Brunch, Sun., RosenfarbWinters LLC chefs merit keen atten- Much table talk focuses on chef 11:45 a.m.-2 p.m. tion wherever they Heffernan’s distinctive, seasonal ####= Outstanding Forensic Accountants & Business Consultants wave their whisks. contemporary American cuisine. ###= Excellent They often begin on He stops by now and again with ##= Very good Cthe first rung of a restaurant ladder suggestions in the manner of André #= Good are pleased to and work steadily upward, spending Soltner in the glory days of Lutèce. years learning and honing their craft Dinner may begin with preappe- in many kitchens before taking cen- tizers, perhaps a sip of suave cauli- announce their ter stage. flower velouté studded with Amer- Kerry Heffernan is such a chef, ican caviar and chives, and/or and his career has brought him to today’s ubiquitous starter of choice merger effective the post of executive chef of South in upscale eateries—small cheese Gate, the polished new signature puffs known as gougères. restaurant of the Essex House. First-course options ($12 to $21) June 1, 2008. Now known as the Jumeirah Es- from the regular menu include a de- sex House, the hotel glows after lightful flan of English peas, flecked deep-pocketed Dubai owners fueled with morels and diced prosciutto a $90 million face-lift. With the pe- and robed in chervil emulsion. For troleum propulsion, designer Tony more color, try the intense, golden- Chi presents a strikingly posh, open brown consommé of caramelized SUPERIOR OFFICE and airy setting of angled mirrors, onions dappled with tiny ravioli AVAILABILITIES wine walls, glass walls overlooking stuffed with Saint André and Central Park and leather swivel Gruyere cheeses. 212.594.2700 chairs for well-heeled patrons.Gene If onions are your favorite bou- Hackman evidently likes South quet, a grilled and roasted spring Gate a lot, having dined there four onion salad embraces fleur de vert nights in a row last month. goat cheese, with hearty Banyuls SLGREEN.COM What was Alain Ducasse New vinaigrette. I also enjoy the nuanced

June 9, 2008 | Crain’s New York Business | 39 Project1 6/5/08 12:12 PM Page 1

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