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INSIDE THE TOP STORIES INSIDER New York earns Democrats fail dubious distinction first budget test of losing less than ® in Albany London PAGE 2 Page 9 Investors fall out of love with VOL. XXV, NO. 6 WWW.CRAINSNEWYORK.COM FEBRUARY 9-15, 2009 PRICE: $3.00 Rupert Murdoch PAGE 3 Harassed Fashion Week’s new uptown home Scion slips up companies not a hit PAGE 3 swat at SPECIAL REPORT Golden boy Kent Swig’s swagger now a stagger gadflies
BY THERESA AGOVINO AIG, Citigroup, Time Warner seek kent swig seemed to have it all. The scion of a prominent West Coast real estate clan, he started scooping up downtown of- to silence vocal fice buildings at bargain prices a decade ago and established him- group of investors self as an industry force.The blond, handsome Mr. Swig lives in one of Manhattan’s toniest co-ops, and his father-in-law, Harry Mack- lowe, is a famous New York landlord. BY AARON ELSTEIN But the 47-year-old’s foray into residential and hotel devel- SMALL BUSINESS opment has been disas- after last year’s stock market NO, THEY’RE NOT CRAZY trous. Last month, Leh- collapse, it’s no surprise angry in- Four local entrepreneurs are man Brothers began vestors are ready to storm the gates. launching new businesses, foreclosing on his hotel and What’s striking is how far compa- recession be damned.These residential project downtown. nies will go to lock investors out. are their stories PAGE 13 That action followed another More than a dozen of the na- G lender’s suing him for default and tion’s largest and Venture capitalists dip a fr fraud on a stalled condo conversion in ed most troubled h toe back into the market a lower Manhattan. r corporations, in- 15% p PAGE 13 e Mr.Swig’s luck in midtown has been bet- r cluding Citigroup PERCENTAGE of G shareholder How to market your ter, but his condo conversion there has Inc.and American resolutions tied business on a budget been plagued by problems, including International to one especially PAGE 16 lawsuits over tenant safety. Addi- Group Inc., are pesky investor tionally, late last year, he was al- trying to silence a legedly assaulted at a meeting by small, but extremely vocal, group one of his partners. of investors who seek to hold share- The developer says he is holder votes on proposals that could “shocked”by the suits,and he de- rein in executive pay and change nies all charges.“Maybe I’m naive, how boards are elected and over- but I had more faith in the system,” Mr. seen. The companies argue that Swig says. the gadflies are doing the bidding Mr. Swig’s empire of millions of square of a single activist and violat- feet of Manhattan office space was run- ing securities rules, disquali- BUSINESS LIVES ning smoothly until 2005, when he fying their resolutions from pushed into the soaring residential mar- being voted on by all investors HAPPY TOGETHER ket. The sectors are very different, and Mr. at annual stockholder meet- Couple entrepreneurs See SCION’S SLIPUP on Page 8 See SWATTING on Page 8 work hard all year to keep passion in their PAGE 27 marriages Down and out in NYC on $500,000 a year INDEX And the trading floors. ernment bailout debate. Most are simply NEW YORK, NEW YORK ______6 So, how quickly would you You see, an estimated managing directors, partners and senior REAL ESTATE DEALS ______12 burn through half a million? 75,000 New Yorkers vice presidents of something or other. NEIGHBORHOOD JOURNAL ______12 earn more than The Big O vows to change the “cul-
CLASSIFIEDS ______25 $500,000 a year, ac- ture of excess.” In light of the cru- BY HILARY POTKEWITZ CORPORATE LADDER ______29 cording to 2007 sade against seven-figure data compiled by the incomes, Crain’s con- EXECUTIVE MOVES ______29 when president Barack Obama last week an- Manhattan Institute, ducted a highly unscien- TABLE TALK ______30 nounced a $500,000 salary cap on pay for top an economic think tank. tific survey of the typi- THE WEEKS AHEAD ______30 brass at institutions receiving federal bailout Few of them carry the au- cal expenses of a SeeWEEK AT IN DEADLINE REVIEW _ _ _on ______Page ______2 ______31 funds,a collective shudder went through the cor- gust C-suite titles targeted by Manhattan banking ner offices of Manhattan. And the private clubs. the anti-exec crowd in the gov- See DOWN on Page 2 06
5 THE FUTURE OF NEW YORK CITY
AGENDA FOR HARD EDITORIAL Ideas to boost OP-ED Alair Townsend finds ELECTRONIC EDITION TIMES Report on the Future development, media, tourism defiant optimism and of NYC conference Pgs. 19-22 and emerging industries P. 10 wonders if it is enough P. 11 NEWSPAPER 71486 01068 0 CNYB 02-09-09 A 2 2/6/2009 8:32 PM Page 1
IN BRIEF Down and out in New York THE MAGAZINE INDUSTRY LOST 525 TITLES IN 2008, ACCORDING TO A REPORT BY ONLINE Continued from Page 1 database MediaFinder.com.The overcrowded LIFE ON A FERRAGAMO Brahmin to see how far $500,000 would regional category led the pack with 33 take him or her. While half a million won’t casualties, including Niche Media Holdings’ SHOESTRING BUDGET $500,000 punt anyone to skid row,the results were not Atlanta Peach and Greenspun Media’s Las Vegas pretty. Life.The recession also took a toll on travel Federal, state and city taxes cut that magazines—18 went out of business—followed TAXES You’re the top—tax bracket, that is. Washington, Albany and City Hall together $500K nearly in half. The remainder is all by the home and automotive categories, which gobble up about 40% of your paycheck. but gone before groceries touch the granite each lost 17 publications. In 2007, 591 titles $201,070 countertop in the Park Avenue apartment folded; the count was somewhat inflated by the or back-to-school clothes arrive for the two number of crossword puzzle and college $298,930 kids attending Brearley and Harvard. Nev- student magazines that ceased publication. er mind medical bills, holiday presents or HOUSING the therapy sessions needed to adjust to the HOME FORECLOSURES CITYWIDE SPIKED IN $75,000 $223,930 new regime. JANUARY AND ARE EXPECTED TO WORSEN AS Figure $4,000 a month “No doubt: If you were the guy who was more New Yorkers lose their jobs and the credit maintenance fees for the CHILDREN making $20 million, and starting a month market remains frozen. Foreclosures in New Park Avenue co-op and $106,275 from now you’ll only be making $500,000 York City rose 64% from December levels, $15,000 a year in prop- Includes tuition at Brearley for the rest of the year,that is a huge,huge according to the latest report by erty taxes for the second ($33,025) and a year at Harvard adjustment,” says Nicole Gelinas, a sen- PropertyShark.com. Foreclosures in Staten home. Garage: $12,000. ($52,650). Music les- ior fellow at the Manhattan Institute. Island and Queens continued to balloon: sons, sports teams It’s an adjustment some top brass Queens foreclosures were up 56% versus and tutors quickly may be unwilling to make.Within a day December, and Staten Island foreclosures were $117,655 add up to another of the president’s announcement,Gold- up 76%. Brooklyn bucked the overall trend in $8,000. man Sachs announced intentions to opt January, recording a drop of 14% from the CHARITIES out of the government’s Troubled Asset previous month. $25,000 Relief Program and repay its $10 billion Civic involvement is typi- $92,655 federal loan in short order. The salary THE NEW YORK BOTANICAL GARDEN HAS BEEN cally part of a top exec- caps are not retroactive, but Goldman FORCED TO DELAY FURTHER WORK ON A $55 utive’s job description. A SOCIAL nonetheless cited a desire to limit gov- million parking garage because it can’t raise the common charitable $33,000 ernment “scrutiny and pressure.” funds.The garden has already spent $13 million benchmark is 5% of Harvard Club dues are $2,000 a Plenty of other executives may to design the facility and acquire the site at the your gross income. year per couple, and Westchester have reason to be wary. “If the per- intersection of Webster Avenue and Bedford County golf clubs typically charge son has no capital to withstand Park Boulevard in the Bronx.The six-story $16,000; food and entertaining this financial ‘limitation,’ then tabs are another $15,000. garage, designed by Polshek Partnership $59,655 he’s in deep trouble,” says Neil Architects, was slated to be completed next Berkow,a CPA whose New York winter. VACATIONS area practice mostly serves high- $36,000 $23,655 net-worth individuals. “He’s go- THE MARKET FOR INITIAL PUBLIC OFFERINGS, Three weeks at $12K ing to have to move out, sell VIRTUALLY DORMANT SINCE LAST SUMMER, IS a week for a family FOOD things, especially someone who showing signs of life.Two New York area of four. $15,000 works in the $1 million range. He’s companies, Madison Square Capital, a REIT, Groceries for four ($10,000 a year), using that money just to live.” and Changing World Technologies, which plus meals out (fancy and kid- Some may wonder what part of their recycles organic waste, are preparing to go $8,655 friendly) two to three times a week. lives must change. Will the weekend home public this week in what would be the first in Connecticut get the ax? (Good luck IPOs of 2009, according to Renaissance CLOTHING dumping it in today’s market.) Perhaps the Capital in Greenwich, Conn. Mead Johnson $16,700 membership at the Westchester Country Nutrition, an Indiana-based unit of Bristol- Total includes two new Club? A recent survey of the Metropolitan Myers Squibb, also plans an IPO this week. men’s suits per year at $-8,045 Golf Association’s 200 clubs showed that $3,000 a pop. Figures are rounded and assume that tax deductions have offset any investment income. 75% of respondents expect a big spike in vol. xxv, no. 6, february 9, 2009—Crain’s New York Business (issn leave-of-absence requests from members 8756-789x) is published weekly, except for a combined issue 4th Sources: NYS Dept. of Tax and Finance, school Web sites, Manhattan Institute, National getty images this year. Birdies and eagles won’t be the week of December by Crain Communications Inc., 711 Third Retail Federation, U.S. Census Bureau, Zagat, Metropolitan Golf Association Ave., New York, NY 10017. Periodicals postage paid at New York, only endangered species in 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) markets, home prices, jobs and economic ©Entire contents copyright 2009 by Crain Communications Inc. All rights reserved. diversity—the British capital has fallen NYC, London vie further. “London has taken a bigger and more immediate hit,”says Kathryn Wylde,chief MISERY METER executive of the Partnership for New York for the bottom City. Weekly reading on the direction of the The situation has changed dramatical- city’s economy. ly from two years ago, when Mayor British capital seen as harder-hit Michael Bloomberg warned that Wall POSITIVE NEGATIVE Street could be toppled from its perch. Last year,New York extended its lead in + CLOUDY - to survive.London and New York share an equity trading. Increased volatility drove BY DANIEL MASSEY unemployment rate—7.4%—that is only trading value on the New York Stock Ex- S Y T expected to climb as financial services jobs change up 15.2% and that on Nasdaq up O N R to sunil hirani,the first hint of London’s disappear by the tens of thousands and the 29.6% compared with 2007, according to N M U troubles comes in the form of empty seats loss reverberates in the broader economy. the World Federation of Exchanges. The Y S on his twice-a-month flights from New “The consensus is that these cities are value of shares changing hands on the York. Upon arrival, he notes other tell-tale hurting more than anyone else,” says Greg London Stock Exchange plummeted signs: the empty streets, the omnipresent Clark, a London-based adviser on urban 37.3%. 70%-off sales, the cabbies complaining development. Most distressing for Londoners, the Feb. 9 1 pt. +6.8% about a 50% decline in ridership. pound has taken a beating, falling last Day that Treasury Gain in consumer Bloomberg/ Trading places Secretary Geithner confidence in NYS Crain’s NY stock “It feels like a ghost town,”says Mr.Hi- month to $1.36, its lowest level against the will unveil banking in January index weekly rani, chief executive of derivatives trader on the way up,the two vied to be crowned dollar since 1985, and drawing virtually overhaul plan (Siena Poll) change Creditex. “It just feels like London has the global financial capital. Now that the even with the euro. In recent years, the been hit harder than New York.” cities are flailing, economists and business pound has frequently risen above $2. Clearly, the financial crisis has pum- leaders are trying to figure out which has “People took it for granted that they METER CHANGE from previous week meled both cities. Major banks have col- been hurt more. could pop across to Paris for the weekend + lapsed, and others are expected to require London appears to have lost more. By and bring back some wine,” says New York more infusions of taxpayer cash if they are many measures—the state of its financial See LONDON on Page 8
2 | Crain’s New York Business | February 9, 2009 CNYB 02-09-09 A 3 2/6/2009 7:31 PM Page 1
Fashion Diminished mogul Week’s Investors express most successful cable POOR PERFORMANCE news channel. disappointment in Far from getting out Weekly closing stock prices. of the newspaper or local new digs News Corp.’s television businesses, he once-revered chief insists that now is the time to push ahead. Uptown move could “When this recession BY MATTHEW FLAMM ends, we will be better- unravel struggling positioned than anyone it isn’t just the media business else, because we have garment district that is going through unprecedent- been building market ed change. Media moguls aren’t share,” Mr. Murdoch BY ADRIANNE PASQUARELLI what they used to be, either. That said during last week’s includes Rupert Murdoch. earnings conference call. as mercedes-benz Fashion Week Like former Olympian media “We may even get lucky preps for its Friday entrance and figures Sumner Redstone and Mel and not have so much clothing designers try to reinject Karmazin, the News Corp. chair- lindström bekka competition at the end of their garbfest with glam, industry man presides over a battered empire A MAN, NO PLAN: it all.” insiders are greeting with both that is worth a fraction of what it Many observers say cheers and jeers the announcement once was. Mr. Murdoch lacked Cash on hand that the eight-day event will have a Steep declines in advertising a clear strategy in and with $4.5 billion in new home. spending and the movement to on- buying Dow Jones. cash, News Corp. has the Last week, Mayor Michael
line news and information sources bloomberg news resources to play a long- Bloomberg, IMG Fashion and the led the company to write down its range game. Council of Fashion Designers of television and newspaper assets last ly it would all make sense,”says Op- income was $320 million in the “This is a very healthy compa- America revealed that in September week by $8.4 billion. News Corp.’s penheimer & Co. analyst Jason quarter, as operating income at the ny,” says Michael Wolff, author of 2010, Fashion Week will move to share price has tumbled 62% in the Helfstein. “That hasn’t happened.” local TV stations plunged 44%. It the recent biography of Mr. Mur- Lincoln Center’s Damrosch Park past 12 months, the second-worst As a consequence, he says, Mr. was also down at the film, satellite doch, The Man Who Owns the from Bryant Park, its home for the performance among the major me- TV,newspaper and book publishing News. He attributes the drop in past 15 years. dia companies, after CBS Corp. divisions. News Corp.’s share price partly to Chairman For some of Mr.Murdoch’s erst- investors’ irritation with the chair- Fine art of fashion Wrong vision while admirers, the worst part is man. many big-name designers, includ- though the recession and the Rupert that the chairman is staying on the “The Wall Street Journal is exact- ing CFDA President Di- digital transformation have rocked same path. ing a real penalty [on the stock]—a ane Von Furstenberg every media giant,the combination Murdoch “While we have long viewed greater penalty than its size war- and Betsey Johnson, has served to undermine investor Rupert Murdoch as the most vi- rants,” Mr. Wolff says. applauded the confidence in Mr. Murdoch’s vi- has ‘lost sionary CEO in the media sector … But in the current climate, and choice because of sionary genius. we are increasingly surprised/frus- with media undergoing a seismic the venue’s cultural The 78-year-old tycoon is no his street cred’ trated with his lack of strategic di- shift, investors don’t want to place association. longer assumed to know what he’s rection related to News Corp.’s tel- long-term bets. Mr. Murdoch’s op- “Lincoln Center doing when it comes to local televi- evision station, newspaper and timism no longer resonates with has always been sion, newspapers or his $5.7 billion book publishing assets,” Pali Re- shareholders. home to art, and the acquisition of Dow Jones & Co. search analyst Richard Greenfield “The next 12 months is as far idea of including “A lot of investors stayed in Murdoch “has lost his street cred.” wrote in a recent note. out as any investor will go,” says fashion as one of News Corp. through the Dow Results for the second fiscal Mr. Murdoch has always gone Soleil media analyst Laura Mar- those art forms is Jones purchase because they be- quarter,which ended Dec.31,didn’t his own way. He launched Fox as a tin. “Unfortunately, News Corp. great,” says Brian lieved Mr. Murdoch and his man- help.News Corp.posted a net loss of fourth broadcast network when few will be far more influenced by the Wolk, co-founder agement team had a long-term $6.4 billion, versus net income of in the industry thought it was pos- cyclical pressures of 2009 than by of fashion house business plan that they were keep- $832 million in the year-earlier pe- sible, and defied the odds again any strategic business mix it may Ruffian. ing under wraps and that eventual- riod.Excluding the write-down,net when he built Fox News into the have.” “It’s something new instead of same old, same old,” Ms. Johnson says. 15 YEARS But many com- Mercedes-Benz panies fear that Fashion Week Fashion Week’s has been at move uptown will Bryant Park Newspapers rewrite the future bloomberg news dull even more of the garment district’s luster. Once Politico, GlobalPost, news gathering, as the ven- the backbone of the industry, the FILLING THE GAPS IN COVERAGE tures experiment with busi- district has been decimated by re- others get pickup ness models and newspapers zoning battles and higher rents, rely on outsourcing to fill gaps which have pushed out many appar- as major outlets in their downsized news- el manufacturers and threatened the downsize staff rooms. fashion center’s existence. Textile A STARTUP news A NONPROFIT A WASHINGTON, A SITE devoted to “From a content point of and apparel manufacturing there service delivering newsroom funded D.C., newspaper sophisticated finan- view,these ventures are a huge has declined by more than 40% since BY MATTHEW FLAMM international report- by philanthropists and Web site that cial analysis by vet- positive for newspapers,” says 1995. ing to newspapers and dedicated to distributes content eran business jour- Lauren Rich Fine, research as newspapers crumble around and Web sites. Has “investigative jour- to newspapers and nalists. Provides a director for ContentNext Inconvenient move the country, shoring them up and inked a deal with nalism.” Has collab- Web sites, including daily column for The Media. though bryant park is not tech- plugging their holes is becoming an the New York Daily orated with The the Staten Island New York Times Specialized news services nically within the garment district, industry of its own. News. New York Times. Advance. business section. are hardly a new phenome- habitués say its proximity to the area A host of enterprises has sprung non. But an industry in de- makes it unofficially included, and up to offer in-depth coverage for cline gives them new oppor- the schlep uptown will represent a papers stretched thin by cutbacks. tunities for growth. significant inconvenience. These new ventures are also explor- ports, newspapers are now turning Politico, offer their stories for free Breakingviews.com was found- “I’m at 344 W. 38th St.—I can ing different ways to make journal- to these new providers, like Wash- in exchange for a portion of online ed in the United Kingdom nearly a get to and from shows at Bryant ism pay as more and more readers ington-based Politico and foreign ad revenue. Others charge for sub- decade ago on the belief that few Park in less than an hour,”says Ram- get their news free on the Web. news service GlobalPost, for more scriptions but cost considerably less newspapers could afford to produce dat Harihar, president of manufac- While publications have long opinionated fare and alternative than a reporter’s salary. its brand of in-depth financial turing firm R&C Apparel Corp. “If used sources like the Associated perspectives. All together,they’re part of what analysis and opinion, says U.S. edi- they take [the shows uptown], I’ll Press to supplement their own re- Some of these new ventures,like may become a new structure for See NEWSPAPERS on Page 9 See FASHION WEEK on Page 9
February 9, 2009 | Crain’s New York Business | 3 CNYB 02-09-09 A 4 2/6/2009 7:32 PM Page 1
NYC film industry at risk IN THE MARKETS as Albany tax breaks run out by Aaron Elstein & Adrianne Pasquarelli
“None of us has booked a single pi- months ago that allocations for the Allocation for state lot this year,” says Alan Suna, presi- state tax credit would run out, but incentives, set to last dent of Silvercup Studios in Long the general view was that they would Mr. Market? He’s Island City, Queens. “Everybody is last until the spring, says Doug until 2013, depleted sending their pilots elsewhere.” Steiner, chairman of Steiner Stu- just not that into you Mr. Suna knows that of four dios, located in the Brooklyn Navy hings aren’t so rosy at BY MATTHEW FLAMM NBC pilots with stories set in New Yard. York, two are going to Chicago and 1-800-Flowers.com Inc. After posting a a state tax credit program that two to Canada. Warner Bros. is also Waiting for Legislature profit drop of 23%, to $14.9 million, brought film and television produc- shooting a pilot for a New York-set instead, the $685 million that had T for the quarter ended Dec. 28—the holiday tion in New York to a record high last series in another location, he says. been allocated through 2013 was year has run out of money, threaten- An NBC spokesman declined to gone on Feb. 1, according to an exec- shopping season—compared with the year- ing jobs in the one sector of the city’s comment. A Warner Bros. spokes- utive at one of the networks. New al- earlier period, the florist and gift retailer is economy that had been expected to locations for the tax credit program caught in a downward spiral. Over the past thrive during the recession. must now wait until the Legislature year, shares have lost nearly 70% of their value, and Television production studios are ‘None of us passes a budget. The budget dead- already holding back on shooting pi- line—often missed—is April 1. this month the stock fell to a 52-week low of $2.23. lots in New York this spring—when has booked a A spokesman for the New York Another key holiday for the Carle Place, L.I.- networks traditionally begin work- single pilot State Division of the Budget says, based company’s wares of flowers, gift baskets and istockphoto ing on new series for the fall.If fund- “There are no new allocations pro- chocolates—Valentine’s Day—is just around the corner, but ing for the tax credit is not renewed, posed in the [governor’s] budget.” feature film and television series pro- this year’ By all accounts, the tax breaks analysts aren’t loving the outlook. duction could also dry up when cur- have been spectacularly successful in A large part of the problem is 1-800-Flowers’ rigorous rent projects are completed. bringing productions to New York. acquisition strategy. It has acquired nine brands, including The state program was started in Risk to city 2004. Last April, to compete with sweets companies Fannie May and Cheryl & Co., in the past nbc universal Chief Executive Jeff woman could not be reached. other states’ efforts, Gov. David Pa- decade, and its flower business is wilting. Sales in the retailer’s Zucker warns of the risk to the local The motion picture and sound- terson tripled the tax break to 30% industry if New York does not con- recording industry added 800 jobs of production expenditures, and the consumer floral category were down 30 who, the magazine predicted, tinue to provide incentives. in the first 11 months of 2008—sec- number of New York-based produc- 15% for the most recent quarter. “will surely be stronger” for navigat- “Television companies that ond only to health services, accord- tions surged. “The company’s organic growth ing through turbulent markets. made 19 pilots for programs last ing to real estate services firm East- The city offers production com- rate does not appear to be benefiting Maybe not. Of the 18 featured year in New York City thus far have ern Consolidated. panies a 5% tax break, which Mayor from cross-selling opportunities,” traders based in New York, eight are committed to making zero,” Mr. Studio and local production ex- Michael Bloomberg instituted in noted Jennifer Watson,an analyst at currently not registered with the Fi- Zucker said at Crain’s The Future of ecutives began to worry several 2005. Goldman Sachs,in a recent research nancial Industry Regu- New York City conference. report. Citing challenging econom- latory Authority, a Executives in the production For more on Crain’s Future of NYC conference, see Pages 19-22 ic headwinds, she rates the sign they are no business echoed his concerns. company a “sell.” longer working on Meanwhile,the Wall Street. For ex- competition is clos- ample, Gabe ing in. Rival Teleflo- Bassin, an equity ra’s 30-second Super trader described Bowl spot gave it ac- in the magazine cess to more than 98 as a “true two- million viewers. tool player,” is To regain its bloom no longer and reduce operating ex- employed at penses by $50 million, hedge fund 1-800-Flowers is slashing Balyasny Asset 10% of its staff and downsizing Management, a spokes- its home and children’s gift cat- woman for the fund confirmed. egory,according to the company. Mr. Bassin couldn’t be reached. Some of the young pups are Double downed managing to keep their heads above water. David Sackler, a 28-year-old trader monthly,a magazine ded- equity, debt and options trader, re- icated to making speculators in mains gainfully employed at Moab nickel futures or equity derivatives Partners, a hedge fund he helped seem hip, is no more. Its owner, Dou- start in 2006. “Still doing the same bledown Media, shut down last week. stuff here,” he writes. Look no further than its Sep- Another vanished Doubledown tember 2008 issue for reasons why magazine, Dealmaker, boldly pre- the glossy went under.The issue that dicted on its September cover that month, when Lehman Brothers “The future of M&A is now.” Cor- filed for bankruptcy and AIG col- porate merger activity, alas, has re- lapsed,featured 30 traders under age mained all but dead.
BAD NEWS FOR LIFE INSURERS
BIG AS LIFE INSURERS’ LOSSES from subprime, Alt-A and commercial mortgages $160 billion have been, they face much bigger losses Credit-related due to corporate debt defaults. “None of the losses for life insurers we studied appear to be doing a life insurers particularly good job [picking bonds],” Barclays analyst Eric Berg wrote last week. How ugly could it get? See the chart at right. MetLife Inc. appears to be in the best shape. It was the only one of seven life $1 trillion insurers studied by Barclays whose Potential portfolio of corporate debt outperformed a corporate-debt- benchmark index. related losses Source: Bloomberg
4 | Crain’s New York Business | February 9, 2009 CN012728 2/5/09 11:14 AM Page 1
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May require up to a $36 activation fee/line, credit approval and deposit. Up to a $200 early termination fee/line applies. Phone Offer: Offer ends 4/18/09 or while supplies last. Instant savings available on corporate-liable accounts only. Upgrade: Existing customers in good standing with service on the same device for more than 22 consecutive months currently activated on a service plan of $34.99 or higher may be eligible. See in-store rebate form or sprint.com/upgrade for details. Direct Connect: Nextel devices operate on the Nextel National Network. Other Terms: Coverage not available everywhere. Nextel National Network reaches over 274 million people. Sprint 3G Mobile Broadband reaches over 267 million people. Offers not available in all markets/retail locations or for all phones/networks. Pricing, offer terms, fees and features may vary for existing customers not eligible for upgrade. Other restrictions apply. See store or sprint.com for details. ©2009 Sprint. Sprint and the logo are trademarks of Sprint. Other marks are the property of their respective owners. BlackBerry,® RIM,® Research In Motion,® SureType,® SurePress™ and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. CNYB 02-09-09 A 6 2/6/2009 5:12 PM Page 1
NEW YORK,NEW YORK edited by Valerie Block
“niche show” for the network. And Showtime has yet to make HBO’s kind of money.Total revenue for the Time Warner powerhouse came to $3.8 billion in 2008, according to SNL Kagan. CBS Corp.-owned Showtime came in at $1.2 billion. Theater fund lets public in becoming a theater producer just got a lot cheaper. Galapagos Art Space in Dumbo last week launched a public theater fund to landov help finance new work.To raise $10,000, Galapagos is letting Legal battle on high seas theater buffs pay $100 per share to become part owners of a new aggling with somali pirates may not be part of production.The cultural a typical job description for New York lawyers, but institution, which plans to have the that’s exactly what Bruce Paulson and money in place by this spring, will H choose the play and produce it over Larry Rutkowski were up to last month. the summer. If the show goes on The partners in Seward & Kissel were the ones tour or ends up on Broadway, the pulling the strings in the heralded deal to free 28 investors could share in the profits. kidnapped crewmembers of oil tanker MV If the project succeeds, Biscaglia in exchange for more than $1 million in B. Paulson Galapagos executives hope other theater groups, many of which rely ransom money. on grants for funding, will copy Messrs. Paulson and Rutkowski, litigators in the their example. firm’s maritime practice, advised client Industrial “It can’t be that during every recession, nonprofits have to slash Shipping Enterprises Corp. of Stamford, Conn., their staff and retrench,” says in its efforts to secure the safe return of vessel and Robert Elmes, director of crew. Needless to say, the event was the first time L. Rutkowski Galapagos, which relies solely on the pair had negotiated with pirates. earned income for its $1 million annual budget. “We need to create “I suppose if you’re a criminal lawyer dealing with a new model for theater.” NYPLExpress people’s freedom every day, you might have some experience in this,” Mr. Rutkowski says. “But we’re commercial lawyers: Contributors: Matthew Flamm, Hilary Potkewitz, Miriam Kreinin Souccar The New York Public Library Our dealings are usually just about money.” Mr. Paulson drew up a straightforward business contract, like he’d done countless times—except that 28 lives were hanging in the balance. Research and worldwide document delivery From Thanksgiving until mid-January, crackly cell- phone conference calls took place on an almost daily basis. Order online or by telephone Mr. Rutkowski or Mr. Paulson was always listening in. Their lives were consumed by the case. Electronic delivery to your desktop “It’s not like the pirates took weekends or holidays off,” Access information on all subjects says Mr. Rutkowski. The hostages and the tanker were freed late last month. PARSONS PLAYS Payment by credit card available Pirates have become a fact of life in the Gulf of Aden, where IT COOL 50 attacks took place in the last three months of 2008 alone. With the experience they’ve gained, the two lawyers THE CHAIRMAN-DESIGNATE of Citigroup will host an hour of Fast, Efficient, and Confidential figure they may be called upon for this type of work again. “I romantic jazz on WNYC on suppose we’ll amend our Web site bios,” says Mr. Paulson. Valentine’s Day at 10 p.m. “My Funny Valentine with Dick Good showing of the Conchords three Sundays in a Parsons” will feature some of the tel: 212-592-7200 fax: 212-592-7215 row, starting when the shows former Time Warner CEO’s favorite for Showtime premiered head-to-head. Tara musicians. Selections will include: www.nypl.org/express [email protected] drew 881,000 viewers to Miles Davis’ “My Funny showtime, the longtime also-ran Conchords’ 560,000, according to Valentine” in the premium cable channel Nielsen Media Research. And competition, has won some new that’s despite the fact that HBO’s Ben Webster’s “My Romance” bragging rights. Its new comedy 29 million subscribers dwarf Etta Jones’ “My Foolish United States of Tara is beating Showtime’s 16 million. Heart” HBO. An HBO spokesman points Written by Diablo Cody and out that Conchords draws 2.7 Oscar Peterson’s “You Look produced by Steven Spielberg, Tara million viewers over the course of Good to Me” has outdone HBO’s offbeat Flight a week and has always been a
6 | Crain’s New York Business | February 9, 2009 Project6 12/29/08 10:49 AM Page 1
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Lehman’s bankruptcy, and the de- velopment is now in limbo. Scion’s slipup Adding to Mr. Swig’s financial troubles, private equity firm Square Continued from Page 1 Mile sued him in December for de- Swig aimed high, paying record faulting on two loans. The suit also prices for his properties. He also re- alleges that the developer inflated lied heavily on Lehman Brothers as his ownership stake in Sheffield57, a lender and has been caught up in which he used as collateral for one of the firm’s bankruptcy. the credits. “Residential tenants are a differ- Mr. Swig’s plan to turn 45 Broad ent breed from commercial ten- St. into a luxury hotel and condo BE IT RESOLVED: ants,”says Peter Hauspurg,chief ex- with Robert De Niro has hit the Mark Filiberto (left) and Kenneth Steiner are ecutive of Eastern Consolidated. wall: Lehman started foreclosure pushing at least a dozen “These are people’s homes.” proceedings against him last month, shareholder resolutions In his defense, Mr. Swig notes alleging that he had defaulted. this year—and their that he wasn’t a residential novice, corporate targets are having owned two big brokers, Simple retaliation fighting back.
Brown Harris Stevens and Halstead in a statement,Mr.Swig branded buck ennis Properties, for years. But selling the move as retaliation for steps he apartments is far simpler than buy- had taken to fight “Lehman’s com- ing up whole rental buildings and mercially unreasonable conduct and buck ennis Swatting the gadflies replacing tenants with buyers. deliberate delay.” ROUGH SURF: Kent Swig, a Crain’s 40 Under That difference became appar- 40 in 1998, built an office tower empire Creditors, tenants and officials ent early on, when he purchased an before a fateful move into residential projects. aren’t the only ones hounding Mr. Continued from Page 1 owners,” Mr. Filiberto says. AIG de- 845-unit building on West 57th Swig. Yair Levy, one of his partners ings later this spring. The Securities clined to comment and Pfizer didn’t Street. He and his partners paid in Sheffield57,was charged with as- and Exchange Commission could return a message seeking comment. $418 million for the property,which gry because he wouldn’t buy them saulting him with an ice bucket last rule on the matter as soon as this The proposals introduced by these they turned into Sheffield57, a 597- out. In fact, he recently won a battle year.They had spent three years try- week. shareholders are nonbinding. But unit condominium—one of the with one group of tenants who want ing to redevelop a residential build- “In midst of all the controversy companies could face heavy pressure biggest conversions in city history. to stay in Sheffield57.And he insists ing on the Upper West Side, only to on Wall Street,companies are trying from ticked-off shareholders if they that with 59% of the units sold, the sell it after it went into default. to shut up the average shareholder,” fail to adopt those that receive major- Man of many enemies project qualifies as a success. Mov- Despite all his recent struggles, says Timothy Smith, a senior vice ity votes,so 18 top companies,includ- in the process, Mr. Swig has an- ing the remaining units—priced at Mr. Swig earns high marks in many president at Walden Asset Manage- ing Bank of America, General Elec- gered tenants and politicians, in- about $1,600 a square foot—will be quarters downtown. The trans- ment, who is not part of the activist tric, McGraw-Hill and Time cluding a congressman, and the tough, however. According to planted Californian and avid surfer group. Warner, are quietly fighting back by project has generated at least three StreetEasy.com, sales are becoming is lauded as a strong ambassador for The tempest centers on 62-year- trying to prevent the activists’ resolu- lawsuits over shoddy construction scarce. Just six units closed last the area and is widely credited with old retired aerospace executive John tions from being voted on at all. practices. In July 2007, Democratic month, a decline of 66% from Janu- coining the term “FiDi,” the snappy Chevedden—a thorn in corporate Rep. Jerrold Nadler of Manhattan ary 2008. new name for the increasingly resi- America’s side for more than a decade. Puppet show? accused the developer of filing false Downtown, Mr. Swig faces an dential financial district. Last year, Mr. Chevedden submitted they’ve enlisted law firms Gibson documents, engaging in illegal be- even tougher challenge. In 2005, he “He takes his excitement about 125 shareholder proposals to 85 Dunn & Crutcher and Wachtell havior and endangering the lives of paid $200 million for 25 Broad St. the neighborhood and really puts it companies, according to letters from Lipton Rosen & Katz to argue to the residents. with the hope of turning it into con- out there,” says Elizabeth Berger, the companies filed with the SEC. SEC that Mr. Filiberto, the Steiners Mr. Swig dismisses those dos. The project was delayed once. president of the Alliance for Down- Indeed, the companies targeted by and others serve as puppets of Mr. charges and says tenants are just an- Sales were halted last year because of town New York. Mr. Chevedden say he’s responsible Chevedden, who they contend is the for about 15% of all resolutions filed proposals’real proponent.By finding by anyone between 1997 and 2006. what the companies call “alter egos” York’s business and political leaders Although Mr. Chevedden typi- who own shares in companies that he are working to diversify its economy cally owns no more than 300 shares does not, Mr. Chevedden is able to London a bigger loser even more. A report released last in a company, some of his ideas have skirt securities rules that permit only week by the Center for an Urban received growing support from big one resolution per shareholder per Continued from Page 2 has just deflated. Future said that a more varied in- mutual funds and other institutional annual meeting and have a voice at transplant Malinda Campbell, a Average home prices nose-dived dustry mix is vital. And at Crain’s investors that determine the out- meetings where he is not eligible. creative director at a London-based in central London in 2008 but were The Future of New York City con- comes of these votes. His resolution “The purpose is to give share- museum consultancy. “But now still rising for most of the year in ference last week, Mr. Bloomberg last year calling on Lear Corp. to holders the right to submit propos- there’s lots of talk of holidays at Manhattan. London prices fell spoke of initiatives to bolster film, eliminate supermajority voting in its als, not some person off the street,” home.” 16.9% and are expected to bottom fashion and biotech. by-laws won a super-duper majority says Gibson Dunn partner Amy Meanwhile, the strengthening out 30% below their peak,according of 88% of shareholder votes cast.(The Goodman. dollar indicates renewed global con- to British property consulting firm Rivalry set aside—for now auto-parts maker has not adopted the Mr. Chevedden, who already has fidence in the United States, even as Knight Frank. as for financial services,regula- proposal, but a spokesman says the resolutions filed at 25 companies this it is gripped by a deepening reces- In Manhattan, average prices tors will play a key role in any future board is “evaluating it.”) year, readily admits working with sion and is blamed by many for the rose 17.8% last year—despite debate over which city is No. 1, with “Lots of people talk about share- others but adamantly denies he’s a global downturn. governments in both countries holders acting as owners; I believe in ringleader: “A lot of the paperwork Precise comparisons are difficult promising reform. it,”says Mr.Chevedden,whose father goes through me because there’s a lot on the labor front, but metropolitan ‘How we change “How we change or don’t change is also a longtime activist investor. of detailed stuff we need to huddle London lost 32,000 jobs in the three the regulatory structure for financial on. But the notion that I’m a master- months through November com- the regulatory markets and how we increase or Simply a network of the like-minded mind is nonsense. To say these in- pared with the year-earlier period; don’t increase regulation is truly the mr. chevedden’s work has intro- vestors are straw men is insulting.” New York City lost 22,500. structure is question for 2009,” says Rae Rosen, duced him to a network of like- Mr. Steiner adds that many com- Both cities depend heavily on the chief economist at the Federal Re- minded investors who consult with panies, such as Citigroup and AIG, financial sector, which accounts for the question’ serve Bank of New York. each other on which companies to have accepted his resolutions in the 500,000 jobs in London and 455,000 For now, New York and London target. The group includes Kenneth past and recognized him as a legiti- here. But New York’s economy has have largely put their rivalry aside. Steiner,an investment manager from mate proponent even as he consulted been aided by its greater diversity. The two cities realize the fates of Great Neck, L.I., who is also the son with Mr. Chevedden to make sure their critical financial-services sec- of a veteran activist. The Steiners’ they didn’t pick the same targets.The Strength beyond finance fourth-quarter softness, according tors are largely intertwined. work attracted their financial adviser, strict rules governing how groups of “london was so tied to financial to appraisal firm Miller Samuel. “All the London ahead of New Mark Filiberto, president of a small shareholders must operate when they services, but New York has media, News from London has not York and New York ahead of Lon- brokerage firm in Lake Success, L.I. solicit votes don’t apply to investors technology and health care,” Mr. been all bad, however. The city re- don was easy play when the world Mr.Filiberto has been a broker for who merely seek to get resolutions on Hirani says. City officials have mains a center of international fi- was a very friendly place,”says Brid- 25 years but only last year started fil- a ballot, Walden’s Mr. Smith says. worked hard in recent years to bol- nance, with the largest cross-bor- get Rosewell,chairman of London- ing resolutions—furious, he ex- Mr.Filiberto,for his part,reckons ster other industries. Tax breaks der capital flows of any country in based economics advisory firm plains, that he and his clients lost so that companies—especially those re- helped spur film and television ac- the world. Of the 20 top initial Volterra Consulting and a leading much in the market.He’s submitting ceiving a government bailout—have tivity and are also attracting biotech public offerings in London in the British economist. “New York and a dozen this year to companies in- more important tasks than trying to firms, for example. past three years, 14 were by non- London have always behaved a bit cluding AIG and Pfizer Inc., where quash him and like-minded activists. Another key component, the U.K. companies, while only four of like siblings. When there’s nobody he wants to strip Chief Executive Jef- “If they put all the energy and housing markets, exploded in both New York’s top 20 IPOs were by in- else about, they’ll squabble, but if frey Kindler of his chairmanship. money that they’ve spent trying to cities in recent years. Though Lon- ternational firms you attack the family, we’ll defend “These guys are arrogant and tend shut me up on fixing their business- don’s bubble has burst, New York’s In the effort to recover, New each other.” to lose sight that we’re the actual es,” he says,“we’d all be better off.”
8 | Crain’s New York Business | February 9, 2009 CNYB 02-09-09 A 9 2/6/2009 2:58 PM Page 1
Newspapers of future bid for public advocate. THE INSIDER Domestic workers Continued from Page 3 “This is a model that daily news- go to Albany tor Rob Cox. The global enterprise papers should be using themselves,” expanded to New York in 2004, says Ken Doctor, a media analyst by Erik Engquist and Matthew Sollars domestic workers United will landing an exclusive column in The with Outsell Inc. lobby in Albany Tuesday for the Wall Street Journal that moved to The new model has drawbacks. Domestic Workers Bill of Rights, The New York Times last fall. About These ventures are all dependent on which would grant overtime pay 80% of revenue comes from individ- newspapers—even ProPublica, Hiring spree and a day off per week to domestic ual subscribers to its daily commen- which needs them as partners in or- workers. tary.The rest is from advertising and der for its investigative stories to won’t help mayor The group has been pushing the from the nearly 20 publications have an impact. And they are tiny. bill since 2004. In past years, Senate around the world that carry Break- “None of these ventures looks,so epublicans say Mayor Democrats told the group that if ingviews columns exclusively in far, to be a signpost to the salvation Michael Bloomberg has hurt they were in power, “this would be a their markets. The company would of serious journalism,” writes Bill no-brainer,” says lead organizer Ai- not disclose revenue figures. Keller, executive editor of The Rhis chances of winning the jen Poo. “We’re looking forward to Two years ago, Politico joined Times, in an e-mail. party’s ballot line this fall by filling actually holding people the fray. With an influential Web The Times collaborates on stories his campaign staff with accountable.” site and a three-day-a-week news- with ProPublica and runs Break- ingviews columns, but Mr. Keller Democratic operatives. In December, Mr. Bloomberg Park conservancy ‘Newspapers considers all of the new operations landov “marginal businesses at best.” hired Bradley Tusk, a former Howard Wolfson prunes back have to get Many skeptics adviser to impeached Illinois Howard Wolfson in a bit of fortuitous timing, he’s not the only skeptic. Gov. Rob Blagojevic. He added , a former the Central Park Conservancy finished people to pay “There’s a huge headwind for any- adviser to Hillary Clinton, Basil Smikle, who had its $120 million capital campaign in to read online’ body trying to sell syndicated serv- been advising Rep. Anthony Weiner, and Hank September, just as the market ices into mainstream media,” says Sheinkopf, who advised Comptroller William crashed. But it expects annual Alan Mutter, who writes the media fundraising to suffer during the blog Reflections of a Newsosaur. Thompson in previous races.Then last week, the recession. Last month, it cut its $27 Executives at these ventures say campaign hired Andrea Batista Schlesinger, the million budget by 11%. they’re aware of the difficulties. A. Schlesinger executive director of the Drum Major Institute The nonprofit conservancy, a year paper, the company will turn a prof- Politico’s Mr. Schwartz points out shy of its 30th anniversary, is still it this year, says Roy Schwartz, vice that his company’s ad network is al- and a former aide to Bronx Deni immediately contacted their battling an identity problem: New president of business development, ready making modest sums for its Borough President Fernando accountant to see if they had paid Yorkers think the city maintains the who would not give out numbers. partners, and the content doesn’t Ferrer. taxes for their nanny. When they park. In fact, 300 of the park’s 325 Politico’s ad and content net- cost them anything. The mayor’s Democratic hiring realized the family’s earlier employees work for the work, which debuted in September, ProPublica is set at least through spree won’t help him win over the omission, they immediately paid conservancy, which gets less than has signed on about 60 newspapers 2011 with a $10 million-a-year city’s Republican Party chairmen. the back taxes.” $5 million annually from city and 40 local television Web sites. commitment from its funders, says But, since he changed his party Mr. Green is pondering another government. Other players include ProPubli- General Manager Richard Tofel. affiliation to independent last year, ca, a nonprofit investigative news- And GlobalPost has $8.5 million Mr. Bloomberg needs their room funded by the Sandler Foun- in financing and a bare-bones oper- permission to be listed as a ALBANY REPORT Business as usual dation, and the just-launched ation for its stringers. Chief Execu- Republican on the ballot. GlobalPost, which offers interna- tive Phil Balboni says that the com- Otherwise, he would end up in a THE BUDGET-BALANCING DEAL reached in Albany last week was the first tional reporting to news organiza- pany,which had the Daily News and hard-to-find slot on the far right significant legislative action since Democrats took control of the state Senate tions for up to $50,000 a year. the Newark Star-Ledger as charter side of the ballot. in January. If business interests were hoping for a sea change in how state subscribers, has three years to start In a race that is shaping up to be government spends money, they did not get it. No roots in tradition supporting itself with syndication closer than expected, one City Hall Only $626 million in recurring cuts were made by Gov. David Paterson, all of these ventures have one deals and individual subscriptions. insider says getting lost on the Assembly Speaker Sheldon Silver and Senate Majority Leader Malcolm thing in common: no roots in the He also believes that the newspa- ballot “would be real problematic.” Smith, barely denting next year’s $13.7 billion deficit. At the same time, they traditional newspaper model. As per industry will grow again.“News- Party leaders, who were already raised taxes on health insurance. “That is just going to force more small such, they can innovate on the Web papers only have to get people to pay turned off by Mr. Bloomberg’s business owners to drop health insurance for their workers and force these without the costs that come with for reading them online,” Mr. Bal- coziness with the Clintons and workers onto government plans,” says Kenneth Adams, president of the large reporting staffs, printing boni says. “If they can solve that Caroline Kennedy, could tap Business Council of New York State. presses and a distribution network. problem, their future is bright.” grocery billionaire John Catsimatidis. It is impossible to say that lawmakers would have cut spending more, as Mr. Catsimatidis is waiting for the the business community wanted, if Republicans were still in charge of the term-limits lawsuit to conclude state Senate. After all, the GOP presided over a massive expansion of the before committing to the race. state budget in recent years. Mr. Adams won’t engage in politically risky Fashion Week digs However, the insider believes conjecture but does not conceal his disappointment in the way state leaders both the Republicans and Mr. closed a $1.6 billion budget gap for the fiscal year ending March 31. “They Bloomberg will eventually realize failed to bite the bullet,” he says. “The governor was right—the spending cuts Continued from Page 3 sents the garment district, had sug- they need each other enough to in the deficit reduction plan should have happened.” lose half a day.” gested the roof of the Port Authori- hold their noses and strike a deal. One Albany insider attributes the timidity more to Mr. Paterson’s weakness Mr. Harihar, whose firm does ty as a way to keep the industry’s than to the Senate’s power shift. “The pervasive view was that they did not work for Zac Posen, Anna Sui and biggest party nearby. The proposal accomplish anything,” he says. “There were no meaningful steps taken to Marc Jacobs, also lamented that he was considered but never approved. Green sees tax address the deficit.” won’t be able to roll clothing racks Of course,Damrosch Park has its snafus differently straight over to Bryant Park. benefits. The spot adds 17,000 Those on the creative side are square feet of available space for the on ny1 last week, former Public grumbling, too. Marc Beckman, tents of the twice-yearly shows, Advocate Mark Green criticized president of Designers Manage- which attract a total of 232,000 at- former Sen. Tom Daschle for his tax ment Agency,has heard a lot of neg- tendees and generate $466 million snafu. “He had to have known ative comments about what the in direct visitor spending annually. something; he’s a sophisticated move means for the garment dis- Some designers expect that the guy,” Mr. Green said. trict’s future. change will make them more organ- But in 1993, Mr. Green and his “Bryant Park has been a part of ized and better-prepared for the wife paid $15,000 in Social Fashion Week for so long,” Mr. emergencies that come up.Ashleigh Security taxes and penalties for Beckman says. “The concept of go- Verrier,who has presented at Bryant employing a nanny from mid-1987 ing across town makes everyone un- Park for three seasons, points out through February 1990. Mr. easy.” that running back to the showroom Green’s spokeswoman says: “In NEW STOOGES: Some of the cast He would like to see the city mir- if a dress tears or a shoe breaks will 2009, everyone understands that has changed, but ror Paris by allocating indoor space no longer be an option. you have to pay Social Security decisions in Albany at a museum to consistently host the Overall, though, observers think taxes on a nanny and pay taxes on are still being made shows. that this latest blow to the district in-kind income, like a limousine. In by three political s composite image The Fashion Center Business will take a toll. “There will be a lot 1992, during the Zöe Baird leaders. ’ Improvement District, which repre- less interest,” Mr. Harihar says. controversy, Mark and [his wife] crain
February 9, 2009 | Crain’s New York Business | 9 CNYB 02-09-09 A 10 2/6/2009 9:51 AM Page 1
VIEWPOINT T H E F U T U R E O F N E W YO R K CI T Y Ideas to help NY’s economy editor in chief Rance Crain publisher, vp Jill R. Kaplan n a telephone call preceding the Future of New costs by 20% to 25% editorial director Greg David York City conference, one of the panelists said he G Preserve affordable housing EDITORIAL G editor Xana Antunes didn’t want to sugarcoat the economic difficulties Reinstitute 421-a incentives managing editors Glenn Coleman, Robert Hordt facing the city. At last week’s event, sponsored by G Make the land-use process more predictable deputy managing editors Valerie Block, Crain’s New York Business and Erik Ipsen Emerging industries contributing editor the Partnership for New York G Elizabeth MacBride Invest in New York as a “green city” columnist Alair Townsend City, no one did. G Harness the youth of the city senior reporters Theresa Agovino, That, however, is not a reason to G Invest in engineering and health care Aaron Elstein, Erik Engquist, Lisa Fickenscher, despair.The event produced a series of Matthew Flamm, Miriam Kreinin Souccar I training reporters Barbara Benson, Amanda Fung, steps that can be taken to bolster the G Increase the size of the New York City Daniel Massey, Adrianne Pasquarelli, Hilary Potkewitz, Gale Scott, Matthew Sollars economy and to help speed a recovery. Investment Fund Here they are, the product of restaurant critic Bob Lape G Modernize zoning codes art director Steven Krupinski suggestions from panelists and from the deputy art directors Carolyn McClain, 1,000 business and civic leaders who Tourism Daniel Mednick G staff photographer Buck Ennis attended the conference. buck ennis Don’t raise tourism taxes copy desk chief Wendy Zuckerman THE FUTURE OF NYC CONFERENCE yielded steps for recovery. G Promote New York as a business center copy editor Thaddeus Rutkowski Media G research editor Denise Southwood Emphasize international travelers www.crainsnewyork.com G G Maintain the city’s quality of life Attract regional audiences web editor Brian Tracey G Encourage technology and technological advances G Create joint marketing campaigns senior producer Elisabeth Butler Cordova producer Kira Bindrim G Maintain quality of content Crain’s will highlight these ideas in the weeks and months EDITORIAL AND ADVERTISING OFFICES G Provide key tax incentives ahead. And we are committed, on these pages and through 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 Real estate similar events, to continue pursuing the conference’s aims: advertising: 212.210.0259 G Support the Ravitch plan to finance the MTA understanding what is happening to the city’s economy and Cable craincom nyk G Fax 212.210.0499 Push for a New York City plan to reduce construction getting behind ideas to make the future brighter. Entire contents ©copyright 2009 Crain Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. POLL COMMENTS TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. www.crainsnewyork.com
ADVERTISING AND MARKETING senior account managers Stacked system allows huge salaries Cornelius P. Gore, William E. Squitieri commercial real estate sales manager Cory Marks IN A PERFECT WORLD, company government bureaucracy to performance, and they failed, account executives boards would hold executives oversee and micromanage period.The golden parachute and Irene Irvill, Courtney McCombs, Anthony Mowad accountable for failures and reduce companies and determine salaries, stock options they receive are more sales manager, classified or eliminate bonuses. Given the the federal government should than enough in this good ol’ boy print & online John Gallagher abject failures of the companies simply impose what is called a network. sales coordinator, print & online requesting bailouts, you would “confiscatory” marginal tax rate on —scott robinson Lulé Haznedari Anita Perrino have expected that to have been very high levels of income. I’m not sales coordinator credit Todd J. Masura 313.446.6097 FOR ALL THOSE done, but it was not. So in the sure what the numbers should be, who advocate a marketing director Amy Crossman words of Marie Antoinette, “Let precisely, but certainly for income ceiling on salaries as justification marketing manager Jill H. Bottomley them eat cake.” exceeding $1 million, a rate of 50% to “bridge” the gap between the circulation manager Andrea Richardson —joe lopes is appropriate. For income rich and the poor, you may want to assistant circulation manager exceeding $5 million, a rate in the look at our pathetic public school Rosalie Ford THERE SHOULD BE salary caps for neighborhood of 70% would seem systems, which employed the same general manager, interactive executives, period—with or right. perverse tactics. Rather than Marc Minardo without bailout funds. We are long —david arnow lifting those at the bottom up, our web developer, interactive overdue to bring salaries of top public school systems dumbed Chris O’Donnell executives in line with those of I AGREE WITH THE MAJORITY. Since we down those at the top of the curve NEW YORK PRODUCTION low-level employees. taxpayers are now paying their by using a similar argument. production and pre-press director Entrepreneurs may be entitled to salaries via bailouts, there should America was founded on Michael Corsi istockphoto more, but not these creeps. be serious limitations put on that “individual” freedoms, not advertising production manager NEW RATE? For income exceeding $5 Suzanne Fleischman Wies —lois schwartz million, a tax of 70% might seem right. money. I simply can’t believe how collective equilibrium. stupidly the first round of bailout Accordingly, if we had let the PUBLISHED BY CRAIN COMMUNICATIONS INC. EXECUTIVE PAY is set by a company’s funds was handled. No insolvent banks fail, this entire chairman Keith E. Crain board of directors, an incestuous the Great Pumpkin, the Easter restrictions? The stupidity conversation becomes moot. For president Rance Crain body whose members are chosen Bunny and all the others of this infuriates me to no end. those institutions that survive and secretary Merrilee Crain by the chief executive and his ilk. —michael zittel thrive, the leaders deserve Tiger treasurer Mary Kay Crain executive vp, operations William Morrow cronies.To really believe that this —ted leibowitz Woods/LeBron James salaries at Gloria Scoby YES, THEY SHOULD BE LIMITED. senior vp, group publisher is not a stacked system is to believe minimum. group vp, technology, circulation, in Santa Claus, the Tooth Fairy, RATHER THAN HIRE and pay a Executives are paid for —larry beck manufacturing Robert C. Adams vice president/production & manufacturing David Kamis chief information officer Paul Dalpiaz WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh
Real Banking NYC Small Real Health founder G.D. Crain Jr. (1885-1973) estate report; M&A tourism business estate care chairman Mrs. G.D. Crain Jr. (1911-1996) report deals report report report report Feb. 16 Feb. 23 March 2 March 9 March 16 March 23
10 | Crain’s New York Business | February 9, 2009 CNYB 02-09-09 A 11 2/6/2009 11:30 AM Page 1
T H E F U T U R E O F N E W YO R K CI T Y
Main Street are really aligned is hav- ing little traction. Main Street’s rep- resentatives in Congress can’t relate to $85,000 office rugs,corporate jets and seven-figure bonuses.The pres- ident’s team and lawmakers want ex- cessive pay, perks and taking risks with other people’s money to stop, and are getting out their swamp plungers to enforce the point. Limits on compensation, includ- ing bonuses, for firms taking bailout money could set in motion a mini- stampede to firms without such caps. Hedge funds, venture-capital firms and other boutiques will have the pick of the litter.But Washington has plans to regulate them as well—to re- duce their leverage, their profitabili- ty and their potential damage to the stability of our financial system. My guess is that the industry’s lobbying efforts will be both less vis- john h.john howard ible and less effective than in the re- cent past. There’s a new guy in Washington, and he isn’t Joe the Plumber. Washington officials and Squaring optimism most of America are furious and ea- ger to punish. It is now painfully obvious that with NY’s reality financial services provide a dispro- portionate share of New York City’s and the state’s revenue base.The de- his, too, shall pass. That mood of defiant opti- pressed levels of employment, prof- mism was palpable at last week’s Future of New its and compensation are translating into higher taxes on everyone across York City conference,sponsored by Crain’s and the the state through hikes in sales, Partnership for New York City. Indeed, “we are property, health care and probably very lucky to be New Yorkers,” declared Mayor income taxes. Virtually every non- Michael Bloomberg. profit organization is in crisis mode, T cutting staff and programming. The nub of the argument is that our quality of life—safety, Commercial and residential real es- tate,retailers and restaurants are be- arts, parks—makes real estate will be cheap- leaguered as well. smart people want to er, and that will help Mr. Bloomberg said that he ex- live here. Our huge tal- businesses. pects financial services to become ent base will continue to It’s happened be- more global, but that he will recruit innovate and create, not fore. Why shouldn’t it more foreign firms to compensate for just in financial services happen again? the decline in domestic firms. Mr. but in new media and Washington proba- Greifeld, on the other hand, expects biotechnology. Many bly holds the key. The a “shrunken Wall Street” when the workers laid off from fi- sentiment there, ac- deck chairs stop moving. nancial services jobs will cording to Robert Grei- The fact is, no one knows when start their own firms, feld, chief executive of the dust will settle and how many and the city will help ALAIR Nasdaq, is that New chairs will be empty when it does. If them by cutting the un- TOWNSEND York—or at least Wall the meltdown in financial services incorporated business Street—is a swamp that isn’t a blip but rather the start of a tax, streamlining new- must be drained. It more massive, longer-term restruc- business permits and running entre- seems to me that jawboning about turing, the impact on the city and preneurial boot camps. Talent and how the interests of Wall Street and state will be immense.
CRAIN’S ONLINE POLL WAS IT RIGHT TO CAP EXECUTIVE PAY AT COMPANIES RECEIVING
BAILOUT FUNDS? No. The 527 VOTES government Yes. Executives should not be Date of poll: Feb. 4 cannot be dictating salaries receiving for the private multimillion-dollar 10%. sector. compensation packages when 8%. Maybe. If their companies .82% companies are are receiving getting huge sums billions of dollars from the feds, in taxpayer money. executive pay should be limited. istockphoto For poll comments, see Letters to the Editor on Page 10.
February 9, 2009 | Crain’s New York Business | 11 CNYB 02-09-09 A 12 2/5/2009 8:56 PM Page 1
REAL ESTATE DEALS
represented TranSystems. The ask- Developer seeks to sublet pricey HQ ing price for the seven-and-a-half- year lease was $57 a square foot. The new space is being prepped move if it can’t find a renter. The square foot average that shops on for occupancy in May, says Steve Broadway Partners problem is that there are hundreds the avenue commanded at the end Eynon, the CBRE broker who rep- will move out of of thousands of square feet of space of last year, according to Cushman resented the landlord. available for sublet on Park Avenue & Wakefield data. “Such deals represent the bread Seagram Building alone, due to Wall Street’s melt- —adrianne pasquarelli and butter of the building’s tenancy,” if it can find a renter down. Plus, platinum-plated space says Mr. Eynon, adding that in the is becoming available off the avenue two years that CBRE has represent- fter missing its $750 in such plush buildings as 9 W. 57th Staffing agency opts ed the landlord, the building’s aver- million loan payment St. and the General Motors Build- for another decade age tenant size has grown to 6,500 last month, Broadway ing as hedge funds downscale. STORE PLAN CRYSTALLIZES: Lalique sees square feet from 1,800 square feet. Partners is trying to Mr. Lawlor went on a buying its way clear to 609 Madison Ave. united staffing systems inc.,an —amanda fung save a little spree in 2006,purchasing employment firm, has renewed its Abit of cash where it can— his first Manhattan office brighter. French crystal store lease for the entire second floor at at home. The highly tower, 660 Madison Lalique recently signed a 15-year 261 Madison Ave. for another 10 years. Clandestine deal leveraged real estate Ave., for $215 million. lease for 900 square feet at 609 Madi- There was no asking rent on the for W. Village space company is attempting Later that year,he bought son Ave.,at East 58th Street.The ask- deal, which covers about 24,300 to sublet its hugely 10 buildings from Bea- ing rent for the space, which in- square feet, because it is a renewal, spy and surveillance shop De- pricey headquarters at con Capital for $3.3 bil- cludes a 750-square-foot basement, says Chris Mongeluzo,the broker at tective Store International recently the landmark Seagram lion. Six months later, he was $850 a square foot. Newmark Knight Frank who repre- signed a six-year lease for 800 Building,at 375 Park Ave., scooped up 24 additional The space previously housed sented the tenant. The Sapir Orga- square feet on the second floor of between East 52nd and buildings for $5 billion. Nao,a beauty salon.Lalique is plan- nization owns the building,between 224-226 W. Fourth St., between East 53rd streets. But last month, Mr. ning an extensive renovation in or- East 38th and East 39th streets, and Christopher and West 10th streets. Broadway Partners, Lawlor failed to pay back der to accommodate its high-end represented itself in the transaction. The asking rent for the space,which run by one-time real es- $750 million to his vases and glassware. —theresa agovino will be used for both office and retail tate wunderkind Scott lenders and he has an- “They will do a major build-out,” purposes, was $37 a square foot. Lawlor, signed a 10-year LANDMARK OFFER: other $440 million loan says Bill Abramson, the director of The Manhattan-based company lease for the entire 29th Broadway Partners aims to coming due in the brokerage at Buchbinder & Warren Consulting firm currently has a shop on Christopher floor of the building in unload space at 375 Park. spring. A spokesman for Realty Group who represented bulks up Street, as well as a third-floor show- 2007 with rents that Mr. Lawlor says that he landlord Zurich Holding Co. The room in midtown.In business for two started at $150 a square foot.For the is working with his lenders on his tenant was represented by Stephanie transystems is more than dou- decades, the company sells body sublet, sources say, the company is debts and that the company has no Snyder,a broker at Robert K.Futter- bling its space in the Empire State wires, telephone recorders, wire taps, looking for about $115 a square foot plans to leave its current office. man & Associates at the time, and Building.The transportation consult- cameras and tracking systems. for the beautifully decorated, —theresa agovino Steve Greenberg, president of the ing firm recently signed a lease for Owner Bob Leonard declined to 18,000-square-foot space that in- Greenberg Group. 8,900 square feet of prebuilt space on comment on the move. cludes a small gym. They say that Lalique formerly had a New the ninth floor. The firm currently Mr. Leonard was represented by just a couple of months ago, when Lalique lands York location at 712 Madison Ave., occupies 4,000 square feet on the Steve Rappaport and Simone Lil- Broadway was only considering on Madison Avenue a site now occupied by jeweler David 29th floor and was keen both to ex- lian of Sinvin Realty, both of whom subleasing, it thought the space Yurman. pand and remain in the tower, ac- also represented landlord Hillcrest could fetch $180 a square foot. the luxury corridor of Madison The asking rent was about $200 cording to Joseph Mangiacotti, the Realty Co. Brokers say that Broadway won’t Avenue will shortly shine even per square foot below the $1,057 a broker at CB Richard Ellis Inc.,who —adrianne pasquarelli
NEIGHBORHOOD JOURNAL
Center Mall has ranked as the most Brooklyn residents want jailbreak profitable mall per square foot in the United States, according to the In- ternational Council of Shopping able housing on a waiting list, it is ply sell the plan on the basis of sheer Centers. Atlas Park’s developer and City plans to reopen, indefensible to spend $440 million efficiency,arguing that an expanded its supporters in city government expand Atlantic Ave. on a jail expansion,” says Council- Brooklyn facility will need 100 few- believed that a nearby lifestyle cen- man David Yassky.He argues that it er employees and save the city $75 ter would attract spillover traffic. facility; efficiency would be much more efficient for million. In addition, proximity to It didn’t work out that way, and isn’t convincing the city to continue housing prison- the Brooklyn courts will also save on members of Community Board 5 ers on Rikers Island. transportation costs. were not surprised—least of all Dis- oerum hill residents are Ironically, that’s the very argu- —matthew sollars trict Manager Gary Giordano. He waiting anxiously for a ment the city made when it closed led the charge last year against the court decision on the the place. Back then, it predicted Metropolitan Transportation Au- Brooklyn House of De- that consolidating operations would Shopping mall ATLAS PARK hasn’t drawn spillover traffic. thority extending the bus route tention.Locals have sued allow the Department of Correc- emptying out through his district, saying that the Bto lock down the city’s plans to re- tions to trim its payroll by 150 mall was damaging the communi- open and double the size of the staffers and lead to $5.3 million in the upscale suburban-style shop- about $80,000 in tuition payments. ty’s good will at every turn. block-long facility on Atlantic Av- annual savings. ping promenade at Atlas Park could That’s not 150 grand of luxury The 12-acre outdoor lifestyle enue. Times and projections change. be in danger of becoming a ghost money.” center was conceived by Atco Prop- When the city moved the last of Currently, the city argues that the town, as stores close and banks take The 40,000-square-foot retail erties President Damon Hem- the inmates out of the 749-bed jail cost of doubling its Brooklyn facili- over the property. center features whitewashed stucco merdinger, whose father, Dale, is in 2003, many neighbors had ty would pale next to the estimated For residents in the surrounding buildings, lush lawns, fountains and chairman of the MTA.The younger dreams of a park, or at least a hand- $647 million needed to build a Glendale, Queens, community— magnolia trees. It typifies the latest Mr. Hemmerdinger wanted to some condo rising in the prison’s 1,500-bed facility on Rikers. many of whom opposed the mall style in malls: the outdoor prome- make his mark on the sprawling in- place. Such hopes have grown as the To make the expansion more and all the additional traffic it would nade. The problem, according to dustrial park that the family has area has gentrified, fed in part by a palatable, the city has floated the draw—the news is bittersweet. Gary Giordano, district manager of owned for decades and saw the mall booming restaurant row on nearby idea of making room in the new “I don’t know how or where they Community Board 5, is that for as the way to do it. Smith Street. Now, the prospect of prison building for a public school, got their statistics, but they claimed years area residents have happily Launched at the peak of the mar- 1,500 inmates moving in next to the apartments,and ground-floor shops the median income here was shopped at the Queens Center Mall ket,the mall lasted under three years new Trader Joe’s in the neighbor- and restaurants. Not surprisingly, $150,000 and could support that in Elmhurst—a traditional indoor before defaulting last month on a hood has residents and local officials the notion of co-housing a prison kind of mall,” says Kathy Masi, complex—and were not in the mar- $128 million loan from two French in an uproar. with a school and expensive condos president of the Glendale Civic As- ket for a new,more sophisticated al- banks. They are scheduled to bring “In a time of budget cuts that will has gone nowhere. sociation. “But those people mak- ternative. in new management this month. leave schools and parks and afford- Instead,the city is hoping to sim- ing $150,000 here have six kids and For several years, the Queens —hilary potkewitz
12 | Crain’s New York Business | February 9, 2009 CNYB 02-09-09 A 13 2/5/2009 5:49 PM Page 1
SMALL BUSINESS INSIDE HOW TO market goods and services for less money PAGE 16 ➚ON THE WEB @ WWW.CRAINSNEWYORK.COM/SMALLBIZ Sign up for New York City’s newest resource for entrepreneurs, a twice-weekly newsletter covering the small business community
They’re entrepreneurs Crain’s found four businesspeople who, by circumstance and choice, are launching companies in the teeth of the recession. Bath Junkie is counting on the idea that people will want to indulge, even in hard times. A brash Betty Zimmer Bath Junkie young real estate salesman, Jack Terzi, bets on his ability to win business. BarterQuest walks a tightrope toward revenue with its site that helps people to trade items they already own. Milabra’s executives hope the flagging Internet ad market gives the firm enough of a platform to launch its image-recognition software. Steve Garmhausen wrote the four profiles starting on Page 14.
Jack Terzi JTRE
Michael Satz BarterQuest Sam Cox Milabra
price and maybe see fewer competi- VCs trolling for deals again, but carefully tors get funded.” Greenhill’s Mr. Brotman, for one, closed a deal in December while he waited for the economic going to power through the reces- look for companies to add to their after having renegotiated it for less Investors can’t sit on picture to become clearer. Now, sion.” portfolios, they say. money and at a lower valuation. cash forever; clean still sitting on two-thirds of Venture capitalists who Median valuations for startup energy, life sciences his $102 million fund, he’s mostly sat on the sidelines An opportune time companies that were funded in the set to grow his portfolio. 38% at the end of last year, re- “it’s still business as usual, but fourth quarter dropped 25% from “I’m pretty optimistic RISE in dollars luctant to sink money into with a sharper pencil,” says Bob the previous quarter, according to firms find funders invested in NY about 2009,” says Mr. Brot- biotechnology companies that might not Greene, a partner in Contour Ven- Angelsoft,a Web service for entre- man,a managing director of companies survive the recession or at- ture Partners, a three-year-old preneurs and angel investors. BY JUDITH MESSINA Manhattan-based Green- last year tract financing in the fu- Manhattan firm that has yet to in- “If they have the money, those hill SAVP, an early-stage ture, are trolling now for vest the majority of its cache. “It is VCs are sitting quite pretty now,” venture capitalist Steve Brot- venture capital fund. “We’ll be new investments. Plummeting a good opportunity to invest in new says National Venture Capital As- man did just three deals in 2008, pretty active. Great companies are valuations make this a good time to companies; you can get a better See VENTURE on Page 18
February 9, 2009 | Crain’s New York Business | 13 CNYB 02-09-09 A 14 2/5/2009 5:50 PM Page 1
REPORT SMALL BUSINESS Pictures are worth a thousand Web ads
this month. reasons, and that could persuade A scientist and an investor But Milabra is launching in the midst of a clients to adopt Milabra’s hope their technology recession where one of the main features is a technology. weakening advertising market. If the business Investors seem to agree. In ice- taps new revenue streams fails, Mr. Cox and Chief Technology Officer Naveen cold capital markets, Milabra has Agnihotri will have little to show for their sacrifices. raised $1.1 million since September WITH COUNTLESS PHOTOS and videos being Mr. Cox left his lucrative position with an from two small investment groups uploaded daily, the Internet is bursting with investment group (which was not a Milabra and a scientist. images. But the dating, social-networking and investor) to launch and run Milabra, while Mr. Part of the attraction has been SAM COX sees “a photo-sharing sites that host and serve many of Agnihotri, who is married with children, has taken Milabra’s uniqueness: Turning huge need for real- time, accurate those images have mostly been unable to make a hiatus from his teaching position at Columbia image recognition into advertising image analysis.” money from them. Computers that can readily sort University. Both men have invested significant dollars is not an established market,
and match words can’t do the same for pictures. sums of their own money in the venture, though much less a saturated one. Most of buck ennis Enter Milabra Inc. The startup firm’s technology the company won’t reveal the exact amounts. the software that exists matches SOCIAL NETWORKING COMPANIES have “recognizes” images so that advertisers can target Of course, Milabra is only as good as its images against existing databases, and is been looking for technology like Milabra’s. people who post or view them. The result, hopes technology. It reports a better than 98% success therefore not much use on social-networking sites Chief Executive Sam Cox, will be brand-new revenue rate at recognizing faces. In another simulation, it where people are constantly posting new images. THE SOFTER Internet ad market means streams for the likes of Facebook and Match.com. filtered out almost 99% of pornographic images. “We’re not a me-too business,” says Mr. Cox. those companies have less money to risk. If, say, a Facebook member has photos of a beach Actual use, however, may test it in unforeseen ways. “Investors are nervous and unsure, and they need vacation posted on his page, that could pave the The principals are so confident that they plan compelling reasons to use their pools of capital.” Technologies, a New York-based image recognition way for a Club Med ad to appear there. to double Milabra’s employment this year, to 20. Image recognition technology is not new, but firm that mainly serves intelligence, law “There is a huge need for real-time, accurate The company may pull in as much as $750,000 in using it as an advertising tool “is something that’s enforcement and defense clients. “Obviously, it image analysis to support these kinds of revenue, Mr. Cox projects. A recession will reward a on the radar in the market,” says Kevin Smith, would be very valuable from an advertising companies,” says Mr. Cox, whose firm launched smarter, more cost-effective way to advertise, he senior vice president for worldwide sales at LTU standpoint.”
theory—that consumers in tough times forgo cars and vacations for little treats, such as a tangerine- Cleaning up colored salt scrub with aloe vera and “juicy eBay for barter economy? pomegranate” scents—may sound good, but it is with simple untested. BarterQuest chief counts on more swapping of goods “I really don’t know of any evidence of it,” says Edward Rogoff, the director of Baruch College’s and services as recession-minded seek savings, value luxuries Field Center for Entrepreneurship. “This might seem like a complete waste of money to people.” THE CHIEF EXECUTIVE of startup BarterQuest before joining the startup—have plenty at stake. The Mr. Rogoff admits the store has several sounds like a typical upbeat entrepreneur when trio made the initial investment of several hundred Octogenarian takes a risk strengths, however. Its efficient inventory model, he talks about launching his online company, thousand dollars in the business and have worked on Bath Junkie, but she’s in which a multiplicity of products can be even in the midst of a recession. for minimal salaries while passing up lucrative job concocted from basic ingredients, is a big plus, he “I don’t believe you can go through the opportunities, all of which has strained their seen bad times before says. And the store’s offer of an experience rather process of getting a business off the ground and personal finances, Mr. Satz says. By accepting than just a purchase may turn out to be a big timing the market,” says Michael Satz. “You have early-stage investment from business associates, THE ECONOMY’S SWOON didn’t change Betty draw. to believe in the concept, confirm there are no friends and family, the three have put their personal Zimmer’s plans to open a NoLIta bath products In addition to the fascination of build-it- insurmountable challenges, then do whatever it reputations on the line. store this past November—good businesses, she yourself lotions, shampoos and bubble-bath takes to get it done.” To build up its users, BarterQuest is trying to declares, succeed even in the worst of times. soap, Bath Junkie sports a whimsical atmosphere Although BarterQuest faces all the challenges of get the word out without a big advertising splash. She ought to know. At 84 years of age, she’s and a fun-loving staff. Its four “soapistas,” who launching now—the harsh financing environment It is courting blogs that are read by target lived through nine recessions, including the Great also happen to be stage chief among them—Mr. Satz may have more reason customers such as parents and students. Depression. actors, frequently burst than most to think his company can defy the odds. It is targeting small businesses owners, like “I didn’t have any hesitation, even though I out in spontaneous The firm operates in a market that economists fashion designer Gemma Kahng. She recently had plenty of advice not to do it,” says Ms. show tunes. Cuddly believe surges in a recession: bartering. In bad traded a one-of-a-kind handmade purse for Zimmer, who with her sister-in-law plunked down couples are economic times, people look to save money and lighting services for an upcoming fashion show, a $178,000 to open the city’s first Bath Junkie regularly get the most value for what they already own. BarterQuest spokesman says. franchise, on spotted sniff- BarterQuest, launched two months ago, allows By the end of the year, Mr. Satz hopes, the BETTY ZIMMER Mulberry Street. opened her NoLIta sampling shoppers to barter goods, services and, soon, the number of site users will have grown from a few The boutique has store with a fragrances use of real estate. Users can swap shoes for MP3 thousand to tens of thousands. “Over the next few lots going for it. For partner, her together. players, mountain bikes for business consulting months, knock on wood, we’ll be producing one thing, co-owner sister-in-law. Betty, services, or any number of combinations. revenue,” he says. Judy Zimmer is chief meanwhile, The startup might indeed thrive during difficult executive of the visits the store times, agrees Matthew Cheng, the founder of four- MICHAEL SATZ says Fayetteville, Ark.- regularly to meet year-old eCoupons.com, which uses a similar of BarterQuest, “You based franchisor, customers and technology to offer discount coupons for thousands have to believe in the buck ennis which has 70 stores. hones her of stores. But the timing can cut the other way, he concept, then do whatever it takes to Its natural, made-to- A FLEXIBLE INVENTORY keeps costs low, schmoozing skills at warns. “The risk of investing money and starting a get it done.” order products— and inexpensive indulgences may sell well. the store’s company during a downturn,” he says, “is that you customers mix and networking events. don’t know when and if things will get better.” match hundreds of OUT-OF-WORK NEW YORKERS may see a Perhaps the most BarterQuest is walking a tightrope. It is trying colors and pomegranate scrub as too big a splurge. important advantage to vastly expand its user base, while carefully fragrances—won’t go the store has is the husbanding the $1 million in capital it assembled out of fashion in a season, says Judy Zimmer, who patience of its co-owners. Judy Zimmer, who owns early on. Fees on completed trades of goods, waited to open the New York store until she found 51% of the store, and Betty, who owns 49%, say averaging $2.50 each, will need to begin the right partner, never imagining it would be her they are prepared to wait two or even three years supporting the technology and the current staff of sister-in-law. for a profit, though they hope the store will come 10 within months, not years. Adding real estate After recently losing her husband, Betty close to breakeven soon. swaps—the use of a New York apartment for a stay Zimmer was looking for something substantial to And Judy Zimmer’s personal investment in the in a house in Florida, for instance—will help, occupy her time—and was willing to risk a fairly store, coupled with her desire to have a franchise because users will pay $14.99 for each one. buck ennis MORE PEOPLE large portion of her savings. succeed on the big stage of New York City retail, Mr. Satz, whose background includes a string of may want to barter to save Despite its breezy slogan, “The economy means it will get plenty of personal attention from high-level financial services jobs, and BarterQuest’s money or get value for what they own. stinks, but you don’t have to,” rising the big boss. two other founders—Polytechnic Institute of New THE TOUGH ENVIRONMENT means Barter- unemployment numbers mean the new store is “I’m here a lot,” she says. “It’s very important York University adjunct professor Paul Bocheck and Quest may not be able to raise more capital. headed into uncharted territory. The Zimmers’ that this store does well.” Bianca Han, who ran a fashion design company
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REPORT SMALL BUSINESS
Real estate vet bids to create a new brand HOW-TO Shoulders $50,000 tab president of Crown Acquisitions, which boss means that he nabs 100% of each deal’s owns retail and office space throughout commission. By comparison, brokers c to venture out on his own; North America. working for a large company can get as little Tactics for “He thinks about the tenant before he as 25% of the cut, he says. ‘no’ is not an answer actually has the tenant,” says Mr. Chera, When recession-slashed real estate who has worked with Mr. Terzi for four prices spur a buying and leasing rally, the Low-cost mailings, no- COMMERCIAL REAL ESTATE brokerage does not years. “I think the guys who quantity of deals should make up for the frills help, networking exactly look like a beacon of opportunity these really unearth the diamonds smaller paydays. “We earn days. Unless you’re Jack Terzi. in this market will do well.” commissions at $200 a foot or at sites get the word out The brash seven-year brokerage veteran started Mr. Terzi mainly $400 a foot,” says Mr. Terzi. his own firm last month, believing he can carve out represents tenants rather Mr. Terzi is well aware of the risk BY ELAINE POFELDT a successful business brokering leases and sales than landlords, meaning he’s he’s taking on. Even Mr. Chera, of commercial space through sheer dogged work. taking on more risk. Yet the who admires him, warns that a ith only $1,000 a year to “It’s about making 1,000 calls a day and not entrepreneur says the odds large pickup in demand could spend on marketing for accepting rejection,” says Mr. Terzi, whose company, against him are not as long as marginalize a small firm. “He may Tedde, a company that JTRE, employs one other broker and an assistant. they might seem. He’s kept get lost in the fray,” he says. makes one-of-a-kind “One big deal and you could be set for the year.” costs low by buying refurbished For Mr. Terzi, failure as an bears, Sky Khan knew Mr. Terzi believes he’ll be in position to cash in desks and cheap computers entrepreneur would mean hunting for a sheW needed an image with a lot of impact. on increased leasing and buying activity once the for his 800-square-foot office job at another brokerage and That’s where poor Headless Ted came in. market levels off. Still, his move to become a in the garment district. And continuing to work on a commission- Around Halloween, Ms. Khan put a de- freelance commercial broker stands out as a bold there’s no inventory. “I don’t only basis. capitated bear on the cover of 1,500 fliers a JACK TERZI distributor handed out near toy stores in one amid the gloomy outlook for the city’s have 90 racks of clothing But he believes has kept Manhattan.It cost her about $100 for print- economy. In Manhattan, the commercial vacancy left and right that I need to costs low by that he will succeed david neff ing, plus about $165 for the distribution. rate rose to a two-year high of 7.4% in the third buying get rid of,” he says. because of the quality In another ultracheap promotion, her quarter. Mr. Terzi left his base salary and expense What’s more, Mr. Terzi has a refurbished of his services. “Over desks. husband, co-founder and fellow marketing account at Hidrock Realty Inc. and says his savings fat list of clients developed over the the last five years, industry veteran Ben Flammang, hung can only support him and his family for so long. years and is currently everybody and their “Lost Teddy Bear” signs, modeled after Mr. Terzi has been successful enough to working with a dozen of REGULAR CLIENTS MAY KEEP Mr. Terzi mother has come into busy, and he gets 100% of commissions. homespun posters advertising missing shoulder the $50,000 cost of starting his own them. And while falling the business,” he pets, around Chelsea. The signs directed firm. His accomplishments are due to his real estate prices do cut FALLING PRICES and a much slower leasing cracks. “But I give passersby to the company’s Web site. impressive skills as a matchmaker between into the total commissions pace make this a harsh real estate climate. personal respect and Now, the couple is hiring up-and-com- landlords and tenants, says Richard Chera, vice on deals, being his own love to tenants.” ing videographers to make videos for $60 a
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16 | Crain’s New York Business | February 9, 2009 AMTACLP9111_P_CR.rgm.indd 1 1/23/09 11:44:04 AM CNYB 02-09-09 A 16,17 2/5/2009 6:07 PM Page 2
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February 9, 2009 | Crain’s New York Business | 17 CNYB 02-09-09 A 18 2/5/2009 5:53 PM Page 1
REPORT SMALL BUSINESS Venture capitalists troll for new investments
Continued from Page 13 fared only slightly better in the says Maria Goetsch, president of follow-up funding,” warns David sociation President Mark Heesen, fourth quarter, with venture dollars the New York City Investment Rose,chairman of New York Angels adding that he’s already started to down 24%. Fund,which has about $100 million Inc., a network of 66 venture capi- see an uptick in smaller deals. The venture investors dipping invested in for-profit and nonprofit talists and angel investors. “Any- Even a small improvement this their toes back into the market now ventures. thing we fund we have to assume can quarter would make it look better are being very picky. Young compa- get to breakeven on our money. than the last. In the fourth quarter, nies that have yet to establish their A different kind of deal You’re looking at a very different venture capital investments dropped business models will still have a on the other hand, companies kind of deal.” istockphoto 33% nationally compared with the tough time finding backers who that are close to being able to stand Certain industries are in; others, same quarter of 2007, according to take their calls. on their own may find receptive like media, are out. Companies that MONEY SOURCES PricewaterhouseCoopers’ Money- “It’s going to have to be extreme- ears. depend on shrinking ad dollars are Some New York City firms that made Tree Report. The New York area ly compelling if it’s a raw startup,” “You can’t expect any additional seen as risky bets. Those operating venture capital investments in the fourth quarter of 2008.
Easton Hunt Capital Partners Essex Woodlands Health Ventures A partner A champion FirstMark Capital is good. is better. Investor Growth Capital New Leaf Venture Partners RRE Ventures SAS Investors Warburg Pincus
Source: PricewaterhouseCoopers MoneyTree Report
in areas such as life sciences, clean energy and medical devices, on the other hand, may find a number of venture capitalists ready to sit down It’s your company’s money. and talk.Indeed,the biotechnology industry helped make New York Make it work as hard as one of the few regions in the coun- try that, despite a terrible fourth you do. quarter, got more total venture dol- Out of 22 deals an angel group
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139477_2F1_v1 1 1/14/09 6:42:52 PM 18 | Crain’s New York Business | February 9, 2009 CNYB 02-09-09 A 19 2/6/2009 10:57 AM Page 1
T H E F U T U R E O F N E W YO R K CI T Y
AGENDA FOR TOUGH TIMES photos: buck ennis Attendees of last week’s The Future of New York City conference say there are ways to boost the economy and reasons to believe that the city will emerge from the slump ON THE WEB ➚➚ GO TO FUTURENYC.CRAINSNEWYORK.COM Dimon on offensive, VIDEO excerpts from the keynote but with some caveats speeches Mayor: COMPREHENSIVE Says banks are gun-shy, calls for more regs reports on each Innovators of the sessions BY AARON ELSTEIN are the key MORE STORIES j.p.morgan chase & co. Chief Executive Jamie Dimon says his bank is lending aggressively as federal scrutiny grows REAL ESTATE Make over how institutions like his are deploying their billions in Insists NYC well-situated ULURP better, cut bailout money. to attract major talent “Are banks lending? They are,” Mr. Dimon said at last construction week’s The Future of New York City conference,sponsored costs P. 20 by Crain’s New York Business and the Partnership for New BY DANIEL MASSEY York City. MEDIA No one saw Speaking a day after he and other CEOs of big banks new york city’s greatest asset—its hu- the double were requested to testify before Congress, Mr. Dimon man capital—will come up with innova- P. 22 said J.P. Morgan has extended $100 billion in new or re- tive ideas to fuel growth and help prevent whammy newed credit over the past 90 days and advanced $50 bil- the city from returning to the dark days of TOURISM Holding lion to other banks, reiterating remarks officials made when the 1970s, according to Mayor Michael the firm released quarterly results last month. Bloomberg. up better than But he added immediately that the recession has chilled Improved budget management, record elsewhere P. 22 demand for new loans. Data from Oppenheimer & Co. show low crime figures,higher graduation rates, that total managed loans at J.P.Morgan declined by 3% in the fourth cleaner parks and revitalized neighbor- EMERGING quarter from the third quarter, even as it received $25 billion in tax- hoods mean the city is better-positioned INDUSTRIES Helping payer funds. than it was three decades ago to weather Banks are also wary because they still face huge losses, said Mr. the tough times and keep its talent pool new ventures Dimon, who reminded the audience that J.P.Morgan expects to from fleeing. thrive P. 22 See DIMON’S APPRAISAL on Page 20 See MAYOR’S UPBEAT on Page 20
February 9, 2009 | Crain’s New York Business | 19 CNYB 02-09-09 A 20 2/6/2009 11:48 AM Page 1
T H E F U T U R E O F N E W YO R K CI T Y
CHANGE COMING: Mr. Dimon’s appraisal Lieber, Mr. Ross, Greg David of Crain’s and Michael Della Rocca of Halcrow. Continued from Page 19 banks without taking control of lose $10 billion next year just from them, and he declined to be inter- dud credit card loans. With memo- viewed after he spoke. ries of past mistakes so fresh and the On executive compensation,Mr. economic outlook so bleak, it’s Dimon called political leaders’ tough to get bankers to say yes. broad criticism of Wall Street “un- “Didn’t unsafe,unsound banking fair.” He noted that J.P. Morgan cause the problems in the first does not offer golden parachutes place?” he asked. and requires its top executives to re- In a wide-ranging speech, Mr. tain 75% of their stock-based pay. Dimon called for the Federal Re- serve to be charged with regulating “Exuberant” compensation the entire financial services indus- “pay got a little exuberant, and try, saying that any company in- there were some legitimate com- volved in lending, trading or other plaints,” he said. “But I don’t think banking activity should come under the president of the United States the agency’s purview. should paint everyone with Large swaths of the mar- the same brush.” ket’s newest and formerly 75% In a moment of levity fastest-growing areas— PERCENTAGE during an otherwise grim most notably derivatives, of stock-based recitation, Mr. Dimon told pay J.P. Morgan which are responsible for Chase execs the audience of nearly 1,000 laying American Interna- must retain people that they probably tional Group low—are prac- bear some of the blame for tically ignored. the financial meltdown. “You’ve got to regulate all of it,” The executive asked if anyone Mr. Dimon said. during the dark days of September had shifted money from bond or “No” to nationalization money-market funds into safer though mr.dimon said all the dis- holdings, thus draining cash from
buck ennis cussion about nationalizing banks the short-term debt markets that had to stop, he warned that the gov- many companies rely on to finance ernment must be prepared to further their day-to-day operations. support certain institutions—“and After some hesitation,a smatter- Creating a user-friendly get paid for it.” ing of attendees raised their hands. He didn’t elaborate on how the “It was you!” Mr. Dimon said government would rescue ailing with a grin. development process Mayor’s upbeat vision York City. opers had been working for weeks Effort to modernize “We want to make the city an with labor officials to lower costs by Continued from Page 19 ter to the mayor calling for another will unclog systems, easier place to do business,” Mr. as much as 20% to 25% in various “We are going through an eco- economic planning summit that Lieber said. ways,including changing work rules nomic downturn, but we’re going would reflect the needs and con- but builders say The deputy mayor said the city and benefits packages. through a downturn from a much cerns of working people. more is needed does not plan to overhaul the seven- Some progress could be made on higher base than we ever have be- After more than two minutes of month uniform land use review the initiative this week:It was on the fore,”Mr.Bloomberg said at the Fu- chanting, the protesters were es- process—called ULURP—needed agenda at a meeting between labor ture of New York City conference, corted out and Mr. Bloomberg re- BY THERESA AGOVINO for a rezoning but instead wants to officials and contractors that began sponsored by Crain’s New York Busi- sumed speaking. He said the city’s clear bottlenecks that occur before over the weekend. ness and the Partnership for New continued ability to attract the s the economic crisis developers even enter the process. “If we can create the savings, York City. world’s brightest people was key, brings construction ac- For example, companies must we’ll be a model for other indus- The mayor said the city would and he pointed to technology as an tivity to a virtual stand- deliver environmental studies to the tries,”said Mr.Ross,adding that the help create 400,000 jobs in the com- important growth area. still, the city plans to city on paper because the system is city needs new laws to spur the de- ing years through a variety of infra- streamline the develop- not set up to accept submissions velopment of affordable housing. structure, tax incentive and training Fostering entrepreneurs Ament approval process with such electronically—and that should programs that will more than make “we have to make absolutely sure steps as computerizing portions of change, Mr. Lieber said. Focus on infrastructure up for the nearly 300,000 positions that New York continues to draw the procedure so builders can save But simplifying things will not richard ravitch, former chief ex- that could be lost over the next 18 and hold the world’s best and most time and money. ecutive of the Metropolitan Trans- months. Employment will reach its ambitious strivers so we will contin- Deputy Mayor for Economic portation Authority, insisted that highest level ever within six years,he ue to be the bastion of innovation,” Development Robert Lieber con- ‘If we can create improving mass transit and spend- said. he said. “Our challenge is to foster cedes that the current approval ing more on infrastructure, includ- Less than 10 minutes into his the entrepreneurialism that so often process can be cumbersome and dif- savings, we’ll be ing schools, would be critical com- speech, as Mr. Bloomberg finished leads to innovation.” ficult to navigate. ponents in keeping the city vibrant talking about his administration’s And some of that innovation Mr. Lieber says the city plans to a model for and primed for the expected popu- affordable housing efforts, dozens will come from laid-off Wall add a “project advocate,”who will be lation growth. of protesters stormed into the hotel Streeters. “The silver lining in the a central contact for developers at- other industries’ Working with the MTA to close ballroom chanting, “Show me what Wall Street layoffs is that highly ed- tempting to build, providing them its yawning budget gap, Mr. Rav- democracy looks like; this is what ucated, highly skilled people are with one source of answers to their itch has proposed such actions as democracy looks like,” and holding losing highly paid jobs,and many of questions. The advocate will free imposing tolls on the East River signs that read,“Mayor Bloomberg, them will strike out on their own,” firms from having to sort through a bridges. He said that the addition- talk to us about the future of New he said. maze of departments, he said. be enough to jump-start construc- al revenues would help pay for in- York City.” To boost that talent, the city has tion projects. creased bus service, which he views launched a program with the Part- Conflicting information Stephen Ross, chairman of The as necessary. Outsiders speak nership for New York City to help “we realize that you can get dia- Related Companies, said it’s imper- Mr. Ravitch, who argued for the the protesters identified them- out-of-work financial services metrically opposite information ative to lower labor costs. New York importance of bringing Metro- selves as members of Right to the workers reinvent themselves. It in- from different agencies,” said Mr. is one of the most expensive places North train lines to the West Side of City-NY, a coalition of community cludes a Web site, incubator space Lieber,who was a speaker at the Fu- in the world to build, he said, which the Hudson,said that he is not espe- organizations demanding that low- for startups and $3 million to lever- ture of New York City conference puts it at a competitive disadvantage cially worried about real estate val- income New Yorkers be included in age a $10 million angel fund that sponsored by Crain’s New York Busi- in attracting new businesses. ues and that they will rise when the discussions on the city’s future. will help new businesses get off the ness and the Partnership for New Mr. Ross pointed out that devel- economy improves. Group members said they gave a let- ground.
20 | Crain’s New York Business | February 9, 2009 Project5 2/25/08 11:14 AM Page 1
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www.conEd.com CNYB 02-09-09 A 22 2/6/2009 10:03 AM Page 1
T H E F U T U R E O F N E W YO R K CI T Y Traditional media stymied One-two hit of Web migration, recession has industry execs looking to 2010
BY MATTHEW FLAMM
ew york will continue to be home to tradi- tional media business- es, insisted three top industry executives at Nthe Future of New York City confer- ence, sponsored by Crain’s New York ANALOG DIARIES: Mr. Zucker, Ms. Lazarus, Mr. Zuckerman and moderator Mitchell Moss. Business and the Partnership for New York City.
photos: buck ennis But no one was prepared for hav- Mr. Zuckerman was particularly local television stations—haven’t SHARON MATES of Intra-Cellular Therapies says the city’s intellectual capital is unmatched. ing to deal with a recession as well as vocal about the challenges facing proved to be effective. the migration online, according to newspapers as their readership— The ad industry must make on- Jeff Zucker, chief executive of NBC and advertisers—move online. In- line advertising better at reaching Universal. ternet advertisements draw a frac- consumers. “When we figure that “The economic problems we’re tion of the revenue traditionally out, you can charge for it, and the Even displaced experiencing now, on top of this garnered from print ads. pricing will be in equilibrium tremendous transition [to the Inter- Though online advertising rev- again,” she promised. net], is almost a double-whammy,” enue is growing while that of print “I don’t think that’s very close,” Wall Street workers Mr. Zucker said. “Nobody expected is declining, Mr. Zuckerman said Mr. Zucker responded. to be fighting both battles at the that “the losses in one are not [made Mr. Zuckerman said that he did same time.” up for] by the gains in the other. not expect an advertising turn- need some help Mr. Zucker was joined at the You’re substituting nickels, maybe around this year for the Daily News, conference’s media and information quarters, for dollars.” which has been hurt by severe cut- session by Shelly Lazarus,chairman Ms. Lazarus tried to strike a backs in ads from auto dealerships the city comptroller’s office that half of Ogilvy & Mather Worldwide, hopeful note, pointing out that on- and major retailers. Initiatives help pros of the jobs created over the past and Mort Zuckerman, owner and line display ads—the kind that run “I hope it will change in 2010,” retool, open new decade fall into the self-employ- publisher of the Daily News. on the Web sites of newspapers and he said. ment category. paths, transition Ms. Horowitz urged Wall to self-employment Streeters and other laid-off profes- sionals to “embrace the gig econo- my” and consider self-employment. Aiming to weather tourism dip BY MATTHEW SOLLARS One thing the city could do is enact zoning rules to encourage the devel- ew york has launched opment of “co-working” spaces, Drop in foreign a new effort to ensure where independent professionals that bankers and other share offices. visitors hurts most; professionals laid off in Though the self-employed have the Wall Street melt- nontraditional arrangements, “peo- hotels here hold up Ndown stay in the city. ple still want to go out and work with better than others A Web site provides guidance for other people,” Ms. Horowitz said. the recently unemployed on how to apply for benefits and links to job Provide openings BY LISA FICKENSCHER search and training sites. the gloomy economy could pro- The site was one of several initia- vide an opening for biotech in the he record-setting tives discussed at the Future of New city, said Sharon Mates, chief exec- days for New York City York City conference, sponsored by utive of Intra-Cellular Therapies. tourism are gone,at least Crain’s New York Business and the Consolidation in the pharmaceuti- for 2009. Partnership for New York City. It cal industry—most notably, the A new estimate puts reflects the reality that the financial merger of Pfizer Inc. and Wyeth— Tthe number of visitors to the Big services sector might not offers a chance to attract tal- Apple this year at 44.5 million—5% play as big a role in the city’s ent from research institu- fewer people than came here last economy as it has in the past $10M tions in New Jersey. year, according to Emily Rafferty, and that many of the indus- ANGEL FUND To take advantage of the chairwoman of NYC & Company, announced by try’s professionals will need the mayor opportunities, Ms. Mates the city’s tourism bureau. to reinvent themselves. to assist tech said, the city should provide The setback could delay Mayor The city plans to spend startups more funding for such pub- Michael Bloomberg’s long-term $170,000 developing and lic-private partnerships as goal of bringing in 50 million visi- marketing www.careerlinknyc.com. the biotechnology centers being de- tors by 2015. As recently as the end TOUR GUIDES: Mr. Tisch, Ms. Rafferty and Daniel Tishman of Tishman Construction take stock. Additionally, Mayor Michael veloped at the Brooklyn Army Ter- of December, he said that goal was Bloomberg announced plans for a minal and the East River Science still attainable. $10 million angel fund and a start- Park. Among the biggest hits to the itors are from other countries. will decline this year for the first up incubator. A spokeswoman for She also said entities like the city is the diminished number of “That’s huge,” she said. time since 2001. However, Mr. the city said that details on those New York City Investment Fund, a foreign travelers, who spend four Overall attendance at the Met Tisch, former chairman of NYC & plans are not available. private group that aims to diversify times as much money here as U.S. was down 5% in January compared Company, predicts that New York the economy, should step up com- tourists do. with the same month last year. City hotels will finish the year in Independents unite mitments to spur biotech. Ms. Rafferty, who is also presi- better shape overall than properties addressing a panel on emerging “The intellectual capital here is dent of the Metropolitan Museum Profitability measure drops in other major U.S. cities. industries, Sara Horowitz, founder unmatched,” Ms. Mates said. “This of Art, spoke at the Future of New another speaker at the confer- “The fundamentals of the busi- and director of the Freelancers is an opportunity for growing it,and York City conference, sponsored by ence, Jonathan Tisch, chief execu- ness are still strong,” Mr. Tisch ob- Union, said the city needs new poli- there is still financial capital—it’s Crain’s New York Business and the tive of Loews Hotels, said that ho- served. “If we end the year with an cies that support independent the price of the capital that’s Partnership for New York City. She tel revenues per available room—a 80% to 81% occupancy rate, that’s workers. She cited an estimate from changed.” noted that 37% of the museum’s vis- barometer of hotel profitability— not so bad.”
22 | Crain’s New York Business | February 9, 2009 Project2 11/11/08 12:34 PM Page 1
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THANK YOU to all of the Sponsors and Supporters who came together to be a part of this event and to discuss real solutions for the future of New York City.
The FUTURE of NEW YORK CITY Presented by:
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For expanded coverage of the conference, including video, go to futurenyc.crainsnewyork.com. futureofnyc_thanks_full.eps 2/5/09 4:04:36 PM nb06p25-26cls.qxp 2/5/09 3:42 PM Page 25
PUBLIC & LEGAL NOTICES TELECOMMUNICATIONS EXECUTIVE RECRUITER “FREE CELL PHONE UPGRADE SUPREME COURT - COUNTY OF BRONX REQUEST FOR PROPOSALS WHEN YOU RENEW YOUR THE PARK AVENUE BANK, Plaintiff against 1001 CASTLE EXISTING CONTRACT ” POSITION AVAILABLE REALTY GROUP CORP., et al Defendant(s).Pursuant to a www.TmiPhones.com Judgment of Foreclosure and Sale entered herein and Promotion Code: 36592 dated October 1, 2008, I, the undersigned Referee will THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY SENIOR NOT FOR PROFIT Or call 1- 800-510-2130 sell at public auction at the Mario Merola County ACCOUNTANT Building, Room 600, 851 Grand Concourse, Bronx, NY REQUEST FOR PROPOSALS FOR PERFORMANCE OF Disclaimer: Affiliate is an independent contractor not an agent of TMI. Apply principles of Not for Profit on the 23rd day of February, 2009 at 2:00 PM premises EXPERT PROFESSIONAL SERVICES - DEVELOPMENT OF A COMPREHENSIVE accounting to analyze financial situate, lying and being in the Borough and County of the LONG-TERM REGIONAL GOODS MOVEMENT PLAN information and prepare financial Bronx, City and State of New York, bounded and reports by compiling information, described as follows: BEGINNING at a point on the cor- DURING 2009-2010 ner formed by the intersection of the northerly side of preparing statements and utilizing The Port Authority of New York and New Jersey is seeking to identify firms interested appropriate accounting control pro- Eastern Boulevard with the westerly side of Castle Hill in responding to a Request for Proposals to provide expert professional services for Avenue as the same are now legally opened; being a plot cedures; assist in development of the development of a comprehensive long-term regional goods movement plan, during 108.06 feet by 80.36 feet by 108.06 feet by 80.45 feet. annual operating budget, consult Said premises known as 1001 CASTLE HILL AVENUE, 2009-2010. with departmental management on BRONX, NY Approximate amount of lien $1,788,290.26 The RFP and its associated documents can be downloaded directly at fiscal aspects of program planning, plus interest & costs. Premises will be sold subject to http://www.panynj.gov/DoingBusinessWith/contractors/html/current.php#prof_ad or you serve as liaison to outside auditors provisions of filed judgment and terms of sale. Index may request a copy by e-mail to: [email protected]. Please reference RFP Number: and consultants. Salary commensu- Number 18755/07. STEVEN J. BAKER, ESQ., Referee. 17532 in the subject line on all requests and include the following information in your e- rate with experience and Benefits. KRISS & FEUERSTEIN LLP Attorney(s) for Plaintiff 360 Reply to [email protected] Lexington Avenue, Suite 1200, New York, NY 10017 mail: Firm name, contact person, e-mail address, mailing address and telephone number. If you have any technical problems accessing the proposal documents online, email us a [email protected] or call (212) 435-3905 for assistance. ACCOUNTS PAYABLE NOTICE OF FORMATION of Amerisphere Mortgage Finance It is currently anticipated that proposals shall be due by 2:00 PM on March 23, 2009 or ACCOUNTANT LLC. Arts. Of Org. filed with Secy. as otherwise indicated in the document. Responses must have the RFP Number and Process purchase orders and of State of N.Y. (SSNY) on full legal name of the proposing firm clearly indicated on the outside package. invoices; prepare checks for 11/17/08. Office location: New York Send Proposal(s) to: The Port Authority of NY & NJ, Attn: Bid/RFP Custodian, Procurement payment and disbursements/wire County. SSNY designated as agent Department, One Madison Avenue, 7th Floor, New York, NY 10010. transfers; resolve vendor of LLC upon whom process against discrepancies; accrue expenses it may be served. SSNY shall mail A VALID PHOTO ID IS REQUIRED TO GAIN ACCESS INTO THE BUILDING, IF YOU to appropriate categories; process to: 111 Eighth Ave. NY, NY ARE HAND DELIVERING YOUR PROPOSAL. analyze general ledger expense 10011. Principal business location accounts, responsible for 1125 South 103rd St. Omaha, NE handling petty cash; other 68124. Purpose: Any lawful activity. Notice of Qualification of FSI NY Notice of Qualification of FGDI, L.L.C. accounting tasks assigned by the 11167541 w.o. 1540 LLC. Authority filed with Secy. of Authority filed with NY Dept. of State State of NY (SSNY) on 01/15/09. on 1/21/09. Office location: NY County. Controller Salary commensurate Office location: New York County. LLC Princ. bus. addr.: 19901 N Dixie Hwy., with experience and Benefits. NOTICE OF FORMATION of Blind formed in Delaware (DE) on Bowling Green, OH 43402. LLC Reply to [email protected] Faith Films L.L.C. Art. of Org filed PUBLIC & LEGAL 01/13/09. Principal office of LLC and formed in DE on 8/4/00. NY Sec. of with Secy. Of State of N.Y. (SSNY) on DE address is: c/o Fillmore Capital State designated as agent of LLC 10/08/08. Office location: New York NOTICES Partners, Four Embarcadero Center, upon whom process against it may INVESTMENT County. SSNY designated as agent Ste. 710, San Francisco, CA 94111. be served and shall mail process to: of LLC upon whom process against it OPPORTUNITY SSNY designated as agent of LLC c/o CT Corporation System, 111 8th Notice of Qualification of H.I.G. New may be served. SSNY shall mail upon whom process against it may Ave., NY, NY 10011, regd. agt. upon York , LLC. Authority filed with NY Dept. process to principal business loca- be served. SSNY shall mail process whom process may be served. DE of State on 12/16/08. Office location: WANTED tion: P.O. Box 2984, NY, NY 10163. to c/o Corporation Service Co., 80 addr. of LLC: The Corporation Trust NY County. Princ. bus. addr.: 1001 Equity Partners/Investors - Rare State St., Albany, NY 12207-2543. Co., 1209 Orange St., Wilmington, DE Brickell Bay Dr., Miami, Fl 33131. LLC opportunity. Booming & profitable, Notice of Formation of MADISON Arts. of Org. filed with Harriet Smith 19801. Arts. of Org. filed with DE Sec. formed in DE on 12/4/08. NY Sec. of 10 year old company doing $5.0 mil+. HOTEL OWNERS LLC. Arts. of Org. Windsor, 401 Federal St., Dover, DE of State, 401 Federal St., Dover, DE State designated as agent of LLC upon Executive ground transportation filed with Secy. of State of NY 19901. Purpose: Any lawful activity. 19901. Purpose: any lawful activity. whom process against it may be company seeking new growth capital. (SSNY) on 07/08/08. Office location: served and shall mail process to: c/o Unlimited potential. Will do over NY County. Principal office of LLC: CT Corporation System, 111 8th Ave., 1.0 mil profit this year. NOTICE OF FORMATION OF LIMITED Notice of Qualification of SAVVY NY, NY 10011, regd. agt. upon whom 150 E. 52nd St., 10th Fl., NY, NY $500 to 1.0 mil needed. LIABILITY COMPANY.NAME: KADKENT, DRINKS LLC. Authority filed with process may be served. DE addr. of 10022. SSNY designated as agent of LLC. Articles of Organization were Secy. of State of NY (SSNY) on Can be structured as part loan with equity. LLC upon whom process against it LLC: 1209 Orange St., Wilmington, DE filed with the Secretary of State of 01/15/09. Office location: New York 19801. Arts. of Org. filed with DE Sec. Call 908-692-6533 may be served. SSNY shall mail New York (SSNY) on 07/28/08. Office County. LLC formed in Delaware (DE) process to the LLC, c/o Livorno of State , P.O. Box 898, Dover, DE location: New York County. SSNY has on 01/08/09. SSNY designated as 19903. Purpose: all lawful purposes. Properties at the principal office of been designated as agent of the LLC agent of LLC upon whom process PERSONALIZED the LLC. Purpose: Any lawful activity. upon whom process against it may against it may be served. SSNY shall be served. SSNY shall mail a copy of mail process to Patterson Belknap Notice of Formation of Divorce-Your- MATCHMAKING Notice of Formation of NATO process to the LLC, c/o Katan Webb & Tyler LLP, Attn: John E. Jewelry, LLC. Arts. of Org. filed with Secy. BROTHERS LLC. Arts. Of Org filed Developers, 592 Pacific Street, Schmeltzer III, Esq., 1133 Ave. of the of State of NY (SSNY) on 10/29/08. Office with Secy. Of State of NY (SSNY) on Brooklyn, New York 11217. Purpose: Americas, NY, NY 10036. DE address location: NY County. SSNY designated as 9.10.08. Office location: NY County. For any lawful purpose. of LLC: c/o Corporation Service Co., agent of LLC upon whom process against SSNY designated as agent of LLC 2711 Centerville Rd., Ste. 400, it may be served. SSNY shall mail process to: c/o Jarne R. Kratz, P.C., 223 Montauk upon whom process against it shall Notice of Qualification of Pequot Matawin Wilmington, DE 19808. Arts. of Org. be served. SSNY shall mail process: filed with DE Secy. of State’s Office, Hwy., Ste. 102, Hampton Bays, NY 11946. 12/08 Opportunity Fund, L.P. Authority Purpose: any lawful activity. Joseph Rokacz, Esq. 400 West End filed with NY Dept. of State on 12/19/08. Div. of Corporations, John G. Ave, Suite 10C, NY, NY 10021. Office location: NY County. LP formed in Townsend Bldg., Federal & Duke of Purpose: any lawful activity. DE on 12/3/08. NY Sec. of State designat- York St., Dover, DE 19901. Purpose: Notice of Formation of CMA ASSOCIATES ed as agent of LP upon whom process Any lawful activity. LLC. Arts. of Org. filed with Secy. of State Notice of Formation of CAMPUS HILL against it may be served and shall mail of NY (SSNY) on 11/17/08. Office location: INVESTMENTS, LLC. Arts. of Org. filed with process to the principal business addr.: Notice of Formation of BRAMCO STEEL New York County. SSNY designated as Secy. of State of NY (SSNY) on 12/03/08. c/o Pequot Capital Management, Inc., 500 LLC. Arts. of Org. filed with Secy. of State agent of LLC upon whom process against it Office location: New York County. Principal Nyala Farm Rd., Westport, CT 06880. DE of NY (SSNY) on 12/23/08. Office loca- may be served. SSNY shall mail process to office of LLC: 381 Park Ave. South, Ste. addr. of LP: c/o The Corporation Trust Co., tion: New York County. Principal office of c/o Andrew B. Leider, Esq., 27 Downing St., 417, NY, NY 10016. SSNY designated as 1209 Orange St., Wilmington, DE 19801. LLC: 15 W. 54rd St., Ste. 29D, NY, NY NY, NY 10014. Purpose: Any lawful activity. agent of LLC upon whom process against it Name/addr. of genl. ptr. available from NY 10019. SSNY designated as agent of LLC may be served. SSNY shall mail process to Sec. of State. Cert. of LP filed with DE upon whom process against it may be CUTS FOR CATS LLC, a domestic Limited Edward D. Feldstein, Esq., 10 Weybosset Sec. of State, Townsend Bldg., Dover, DE served. SSNY shall mail process to Stein Liability Company (LLC) filed with the Sec St., 8th Fl., Providence, RI 02903. Purpose: 19901. Purpose: any lawful activity. Riso Mantel, LLP, Attn: Ivan W. Dreyer, of State of NY on 11-3-08. NY Office loca- Any lawful activity. 405 Lexington Ave., NY, NY 10174. The tion: NY County. SSNY is designated as REAL ESTATE Notice of Qualification of 40 MERCER company will be formed effective as of agent upon whom process against the LLC Notice of Qualification of IOC PROJECT 7 GARAGE LLC. Authority filed with Secy. of 01/01/09. Purpose: Any lawful activity. may be served. SSNY shall mail a copy of LLC. Authority filed with Secy. of State of State of NY (SSNY) on 01/08/09. Office any process against the LLC served upon OFFICE SPACE NY (SSNY) on 11/24/08. Office location: location: New York County. LLC formed in Notice of Qualification of Online National him/her to The LLC, 261 Fifth Ave., Ste. New York County. LLC formed in Delaware (DE) on 12/04/08. Principal Yellow Pages, LLC. Authority filed with 1905, NY, NY 10016. General Purposes. Prime Office Space in Fantastic Location Delaware (DE) on 11/19/08. Principal office of LLC: c/o Hines Interests Limited Secy. of State of NY (SSNY) on 1/13/09. Dlxe furnished 400 sq ft office with office of LLC: 23-25 Greene St., NY, NY Partnership, 885 Third Ave., Ste. 2700, Office location: NY County. LLC formed in Notice of Formation of GULF ROAD HART- secretarial area for rent in East Midtown. 10013. SSNY designated as agent of LLC NY, NY 10022. SSNY designated as agent Delaware (DE) on 11/5/08. SSNY designat- FORD LLC. Arts. of Org. filed with Secy. of Access to full kitchen. No traffic upon whom process against it may be of LLC upon whom process against it may ed as agent of LLC upon whom process State of NY (SSNY) on 12/31/08. Office permitted. Ideal for business served. SSNY shall mail process to c/o be served. SSNY shall mail process to against it may be served. SSNY shall mail location: New York County. Principal office professional/lawyer/accountant. Corporation Service Co., 80 State St., Attn: David S. Penick at the principal process to: c/o The LLC, 853 Broadway, of LLC: c/o Ambassador John L Joeb Jr., Rent $2000/mo., available immediately. Albany, NY 12207-2543. DE address of office of the LLC. DE address of LLC: Ste. 1101, NY, NY 10003. DE address of 50 Broad St., Ste. 1137, NY, NY 10004. Respond to [email protected] LLC: 2711 Centerville Rd., Ste. 400, 2711 Centerville Rd., Ste. 400, LLC: c/o Incorporate-US.com, Inc., 501 SSNY designated as agent of LLC upon Wilmington, DE 19808. Arts. of Org. filed Wilmington, DE 19808. Arts. of Org. filed Silverside Road, #52, Wilmington, DE whom process against it may be served. with Secy. of State, DE, Townsend Bldg., with Secy. of the State of DE, Corporation 19809. Arts. of Org. filed with DE Secy. of SSNY shall mail process to Corporation VISIT OUR WEBSITE 401 Federal St., Ste. 4, Dover, DE 19901. Dept., Loockerman & Federal St., Dover, State, Townsend Bldg., Dover, DE 19901. Service Co., 80 State St., Albany, NY Purpose: Any lawful activity. DE 19901. Purpose: Any lawful activity. Purpose: any lawful activity. 12207-2543. Purpose: Any lawful activity. CRAINSNEWYORK.COM
February 9, 2009 | Crain’s New York Business | 25 nb06p25-26cls.qxp 2/6/09 12:37 PM Page 26
PUBLIC & LEGAL NOTICES
Notice of Qualification of Blackstone Real Name of For. LP: BEOWULF CAPITAL Notice of Qualification of CENTRO NP Notice of Qualification of GS PEG Notice of Qualification of LIGHTSPEED Estate Special Situations PE Fund L.P. MANAGEMENT LP. Appl. for Auth. filed RESIDUAL POOL 1 SPE, LLC. Authority Employee Funds VI Advisors, LLC. EDUCATION, LLC. Authority filed with Authority filed with Secy. of State of NY with Sec. of State of NY: 11/25/08. Jurisd. filed with Secy. of State of NY (SSNY) on Authority filed with Secy. of State of NY Secy. of State of NY (SSNY) on 12/15/08. (SSNY) on 1/16/09. Office location: NY and date of org.: DE 4/21/08. Principal 12/11/08. Office location: New York (SSNY) on 12/31/08. Office location: Office location: New York County. LLC County. LP formed in Delaware (DE) on bus. loc.: 575 Broadway, 3rd Floor, New County. LLC formed in Delaware (DE) on NY County. LLC formed in Delaware formed in Delaware (DE) on 11/3/08. 12/23/08. SSNY designated as agent of York, NY 10012. NY State office loc.: New 12/04/08. Principal office of LLC: 420 (DE) on 12/22/08. SSNY designated Principal office of LLC: 148 Madison Ave., LP upon whom process against it may be York Cty. Sec. of State designated as agent Lexington Ave., NY, NY 10170. SSNY des- as agent of LLC upon whom process 9th Fl., NY, NY 10016. SSNY designated as served. SSNY shall mail process to: c/o upon whom process against it may be ignated as agent of LLC upon whom against it may be served. SSNY shall agent of LLC upon whom process against The Blackstone Group L.P., 345 Park Ave., served. Sec. of State shall mail copy of process against it may be served. SSNY mail process to: 85 Broad St., NY, NY it may be served. SSNY shall mail process NY, NY 10154. Registered Agent: CT process to: 575 Broadway, 3rd Floor, New shall mail process to c/o Corporation 10004. DE address of LLC: 1209 to c/o Corporation Service Co. (CSC), 80 Corporation System, 111 Eighth Ave., NY, York, NY 10012. Addr. of LP in DE is: c/o Service Co. (CSC), 80 State St., Albany, NY Orange St., Wilmington, DE 19801. State St., Albany, NY 12207. DE address of NY 10011. DE address of LP: c/o The National Corporate Research, Ltd., 615 12207-2543. DE address of LLC: c/o CSC, Cert. of Form. filed with DE Secy. of LLC: c/o CSC, 2711 Centerville Rd., Ste. Corporation Trust Company, 1209 Orange South DuPont Hwy., Dover, DE 19901. 2711 Centerville Rd., Ste. 400, Wilmington, State, P.O. Box 898, Dover, DE 400, Wilmington, DE 19808. Arts. of Org. St., Wilmington, DE 19801. Name/address Name/addr. of GP avail. from Sec. of State. DE 19808-1645. Arts. of Org. filed with 19903. Purpose: any lawful activity. filed with Secy. of State of the State of DE, of genl. ptr. available from SSNY. Cert. of Authorized office in DE where Cert. of LP Secy. of State, Div. of Corporations, 401 401 Federal St. - Ste. 4, Dover, DE 19901. LP filed with DE Secy. of State, Federal & is filed is: Sec. of State, Corporation Dept., Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Duke of York Sts., Dover, DE 19901. Duke and York Streets, Dover, DE 19901. Purpose: Any lawful activity. Notice of Qualification of Kondaur Purpose: any lawful activities. Purpose: any lawful activity. Ventures VII, L.L.C. Authority filed with NY Dept. of State on 1/5/09. Office loca- Notice of Formation of CURLEY & MULLEN Notice of Qualification of La Sac Capital tion: NY County. LLC formed in DE on LLP. Cert. of Reg. filed with Secy. of State Notice of Formation of DIPLOMAT CEN- NOTICE OF FORMATION OF MERCADO Partners, LLC, App. for Auth. filed Sec’y 12/22/08. NY Sec. of State designated as of NY (SSNY) on 12/9/08. Office location: TRE, LLC. Arts. of Org. filed with Secy. of DESIGN, LLC. Article of Organization filed of State (SSNY) 10/3/08. Office location: agent of LLC upon whom process against New York County. Principal office of LLP: State of NY (SSNY) on 5/31/07. Office with the Secretary of State of NY (SSNY) NY County. LLC org. in DE 9/26/08. SSNY it may be served and shall mail process to 440 S. Broad St., Philadelphia, PA 19146. location: New York County. Principal office on 05/22/2008 Office location NEW YORK designated as agent of LLC upon whom the principal business addr.: c/o Pequot SSNY designated as agent of LLP upon of LLC: 55 Fifth Ave., NY, NY 10003-4398. County. SSNY has been designated as process against it may be served. SSNY Capital Management, Inc., 500 Nyala Farm whom process against it may be served. SSNY designated as agent of LLC upon agent upon whom process against it may shall mail copy of process to c/o Nat. Reg. Rd., Westport, CT 06880. DE addr. of LLC: SSNY shall mail process to the LLP at the whom process against it may be served. be served. The Post Office address to Agents, 875 Ave of the Americas, NY, NY c/o The Corporation Trust Co., 1209 address of its principal office. Purpose: SSNY shall mail process to Michael which the SSNY shall mail a copy of any 10001. DE office addr.: 160 Greentree Dr., Orange St., Wilmington, DE 19801. Cert. Any lawful activity. Rudder, 55 Fifth Ave., 15th Fl., NY, NY process against the LLC served upon Ste. 101, Dover, DE 19904. Cert. of Form. of Form. filed with DE Sec. of State, 10003-4398, registered agent upon whom him/her is C/O the LLC 131 E. 23RD ST. on file: SSDE, Townsend Bldg., Dover, DE Townsend Bldg., Dover, DE 19901. Name: AZURE PROPERTIES LLC. Art. Of and at which process may be served. STE. 3F. NEW YORK, NY 10010. Purpose 19901. Purpose: any lawful activities. Purpose: any lawful activity Org. Filed Sec. Of State of NY 11/07/08. Purpose: Any lawful activity. of LLC: to engage in any lawful act or Off. Loc.: New York Co. SSNY designated activity. Street address of Principal Notice of Formation of ROOTSTOCK as agent upon whom process against it Business location is: 131 E. 23RD ST. Notice of Qualification of OneSeven HOLDINGS LLC. Arts. of Org. filed with Secy. may be served. SSNY to mail copy of NOTICE OF FORMATION of Braverman, STE. 3F. NEW YORK, NY 10010. Advisors, LLC. App. For Auth. filed with PLLC. Arts. Of Org. filed with Secy. Of of State of NY (SSNY) on 11/19/08. Office process to THE LLC, c/o Gary Gonzalez, Secy. of State of N.Y. (SSNY) on 138 Ravine Avenue, West Caldwell, NJ State of N.Y. (SSNY) on 12/23/08. Office location: New York County. Principal office 12/15/2008. Office location: New York Notice of Qualification of Technic Real 07006. Purpose: Any lawful act or activity. location: New York County. SSNY desig- of LLC: c/o Union Square Hospitality Group, County. LLC formed in DE on 12/10/2008. Property LLC. Authority filed with Secy. of nated as agent of PLLC upon whom LLC, Attn: David A. Swinghamer, 24 Union SSNY designated as agent of LLC upon State of N.Y. (SSNY) on 7/14/08. Office process against it may be served. SSNY Square East, NY, NY 10003. SSNY designated whom process against it may be served. Notice of formation of Kong’s Real Estate location: New York County. LLC formed in shall mail process to: 1 Gramatan Rd., as agent of LLC upon whom process against SSNY shall mail process to: 623 Fifth Ave., management LLC, Art.of Orig filed Sec’y Delaware (DE) on 6/26/08. SSNY desig- Pleasantville, NY 10570. Principal business it may be served. SSNY shall mail process to 14th Fl., NY, NY 10022. DE address of LLC: of state(SSNY) on 10/30/08. Office loca- nated as agent of LLC upon whom location: 225 Broadway, Ste. 1901, NY, NY the LLC at the address of its principal office. 615 S. Dupont Highway, Dover, DE 19901. tion NY County. SSNY designed as agent process against it may be served. SSNY 10007. Purpose: Any lawful activity. Purpose: Any lawful activity. Cert. of Form. filed with DESS, P.O. Box 898, of LLC upon upon whom process against shall mail process to: c/o Wuersch & 1149608 w.o. Dover, DE 19903. Purpose: to engage in any it may be served. SSNY shall mail copy Gering, 100 Wall St., 21st Fl., New York, act or activity lawful under the NY LLC Law. of process to 157 East 72nd St, Apt 14G, NY 10005. DE address of LLC: 874 Notice of Formation of AZOTH GROUP NY, NY 10021. Any unlawful activities. Notice of Formation of 345 RESIDENCE, Walker Road, Suite C, Dover, Delaware LLC. Arts. of Org. filed with Secy. of State LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 01/13/09. Office loca- 19904. Arts. of Org. filed with DE Secy. of NOTICE OF FORMATION OF StillTasty LLC. Notice of Formation of Juneapple of NY (SSNY) on 12/04/08. Office loca- tion: New York County. Principal office of State, Townsend Bldg., Dover, DE 19901. Article of Organization filed with the Projects LLC. Articles of Organization tion: New York County. Principal office of LLC: 264 W. 25th St., Apt. 3W, NY, NY Purpose: any lawful activity. Secretary of State of NY (SSNY) on filed with Secy. of State of NY (SSNY) LLC: 405 W. 45th St., 2C, NY, NY 10036. 10001. SSNY designated as agent of LLC 01/05/09 Office location NEW YORK on February 2, 2009. Office location: SSNY designated as agent of LLC upon upon whom process against it may be County. SSNY has been designated as New York County. SSNY designated whom process against it may be served. Notice of Formation of 326-338 E 100th served. SSNY shall mail process to the agent upon whom process against it may as agent of LLC upon whom process SSNY shall mail process to Kalnick Klee & LLC. Arts. of Org. filed with Secy. of State LLC at the address of its principal office. be served. The Post Office address to against it may be served. SSNY shall Green LLP, 767 Third Ave., NY, NY 10017- of NY (SSNY) on 12/30/08. Office loca- Purpose: Any lawful activity. which the SSNY shall mail a copy of any mail process to the LLC, c/o Hecht & 2023. Purpose: Any lawful activity. tion: NY County. SSNY designated as agent of LLC upon whom process against process against the LLC served upon Co. P.C., 622 Third Ave, 8th Floor, it may be served. SSNY shall mail process Notice of Qualification of Union him/her is C/O the LLC 51 West 84th New York, NY, 10017. Purpose: Notice of Formation of STEPHEN REICH to: c/o The LLC, 632 Broadway, 7th Fl., NY, Avenue Advisors LLC. Authority filed Street, Apt. 8. New York, NY 10024. engage in any lawful act or activity. LLC. Arts. of Org. filed with Secy. of NY 10012. Purpose: any lawful activity. with Secy. of State of NY (SSNY) on Purpose of LLC: to engage in any lawful act or activity. Street address of Principal State of NY (SSNY) on 01/06/09. Office 1/16/09. Fictitious name in NY State: Notice of Qualification of Dandelion.com, Business location is: 51 West 84th Street, location: New York County. Principal Union Avenue Advisors (GP) LLC. LLC. Authority filed with NY Dept. of State Notice of Qualification of JFK BEVERAGE, Apt. 8. New York, NY 10024. office of LLC: 141 E. 55th St., NY, NY Office location: NY County. LLC on 12/19/08. NYS fict. name: Dandelion.com LLC. Authority filed with Secy. of State of 10022. SSNY designated as agent of formed in Delaware (DE) on 1/12/09. Branded Content, LLC. Office location: NY NY (SSNY) on 12/15/08. Office location: LLC upon whom process against it may SSNY designated as agent of LLC County. LLC formed in DE on 12/17/08. New York County. LLC formed in Delaware Notice of Formation of NC REGENCY VIL- be served. SSNY shall mail process to upon whom process against it may NY Sec. of State designated as agent of (DE) on 12/2/08. Principal office of LLC: LAGE II, LLC. Arts. of Org. filed with Secy. the LLC at the address of its principal be served. SSNY shall mail process LLC upon whom process against it may 545 E. John Carpenter Fwy., Ste. 1400, of State of NY (SSNY) on 01/09/09. Office office. Purpose: Any lawful activity. to princ. bus loc.: The LLC, 527 be served and shall mail process to: Irving, TX 75062. LLC agrees to use ficti- location: New York County. SSNY desig- Madison Ave., 6th Fl., NY, NY 10022, Mindy Goldberg, 435 Hudson St., 3rd Fl., tious name of PACIFIC ASSET HOLDINGS nated as agent of LLC upon whom process Attn: Thomas Grossman. DE address NY, NY 10014, principal business addr. DE LLC while conducting business in NY. against it may be served. SSNY shall mail Notice of Formation of 19 WEST 70TH of LLC: c/o United Corporate addr. of LLC: c/o The Corporation Trust SSNY designated as agent of LLC upon process to c/o Cohen & Company, Inc. STREET, LLC. Arts. of Org. filed with Secy. Services, Inc., 874 Walker Rd., Ste. Co., 1209 Orange St., Wilmington, DE whom process against it may be served. Real Estate, 9 E. 40th St., 10th Fl., NY, NY of State of NY (SSNY) on 12/15/08. Office C, Dover, DE 19904. Cert. of Form. 19801. Arts. of Org. filed with DE Sec. of SSNY shall mail process to c/o Corporation 10016. Purpose: Any lawful activity. location: New York County. Principal filed with DE Secy. of State, 401 State, Federal & Duke of York Sts., Dover, Service Co., 80 State St., Albany, NY office of LLC: 27 W. 70th St., Apt. #2A, NY, Federal St., Dover, DE 19901. DE 19901. Purpose: any lawful activity. NY 10023. SSNY designated as agent of 12207-2543. DE address of LLC: 2711 Purpose: any lawful activity. ON A WINK AND A PRAYER, LLC Articles LLC upon whom process against it may be Centerville Rd., Ste. 400, Wilmington, DE of Org. filed NY Sec. of State (SSNY) served. SSNY shall mail process to the 19808. Arts. of Org. filed with Secy. of 12/16/08. Office in NY Co. SSNY desig. Notice of Qualification of W2008 INTERNA- LLC, c/o James Veltri at the principal office State of DE, Div. of Corporations, John G. Notice of Qualification of MPGOP (CAYMAN) agent of LLC upon whom process may be TIONAL FINANCE SUB LTD., LLC. Authority of the LLC. Purpose: Any lawful activity. Townsend Bldg., 401 Federal St., Dover, DE III THRIFT AV-I L.P. Authority filed with served. SSNY shall mail copy of process filed with Secy. of State of NY (SSNY) on 19901. Purpose: Any lawful activity. Secy. of State of NY (SSNY) on 01/13/09. to 1035 Park Ave., Ste. 15A, NY, NY 12/11/08. Office location: New York Office location: New York County. LP 10028. Purpose: Any lawful purpose. County. LLC formed in Cayman Islands on Notice of Qualification of JEEREDDI PART- formed in Cayman Islands on 07/24/08. 04/18/08. Principal office of LLC: 85 Broad NERS, LLC. Authority filed with Secy. of Notice of Qualification of SIGNATURE Principal office of LP: 520 Madison Ave., St., NY, NY 10004. SSNY designated as State of NY (SSNY) on 12/05/08. Office COMMUNITY MANAGEMENT, LLC. 35th Fl., NY, NY 10022. SSNY designated as Notice of Formation of GAGOSIAN agent of LLC upon whom process against location: New York County. LLC formed in Authority filed with Secy. of State of NY agent of LP upon whom process against it GALLERY OF LONDON LLC. Arts. of it may be served. SSNY shall mail process Delaware (DE) on 12/02/08. Principal office (SSNY) on 12/18/08. Office location: New may be served. SSNY shall mail process to Org. filed with Secy. of State of NY to c/o Goldman, Sachs & Co., Attn: General of LLC: 594 Broadway, Ste. 509, NY, NY York County. LLC formed in Delaware (DE) c/o Corporation Service Co., 80 State St., (SSNY) on 11/8/99. Office location: NY Counsel at the principal office of the LLC. 10012. SSNY designated as agent of LLC on 03/20/08. Principal office of LLC: 9 E. Albany, NY 12207-2543, registered agent County. Principal office of LLC: 980 Cayman Islands address of LLC: Maples upon whom process against it may be 40th St., 9th Fl., NY, NY 10016. SSNY des- upon whom and at which process may be Madison Ave., NY, NY 10021.The lat- Corporate Services Limited, Ugland House, served. SSNY shall mail process to the LLC ignated as agent of LLC upon whom served. Name and address of each general est date on which the LLC may dis- P.O. Box 309, Grand Cayman, Cayman at the address of its principal office. The process against it may be served. SSNY partner are available from SSNY. Cayman solve is 12/31/25. SSNY designated Islands KYI-1104. Arts. of Org. filed with registered agent of the company upon shall mail process to c/o Corporation Islands address of LP: c/o Walkers SPV Ltd., as agent of LLC upon whom process Governor, Govt. Admin. Bldg., Elgin Ave. whom and at which process against the Service Co. (CSC), 80 State St., Albany, Walker House, Mary St., George Town, against it may be served. SSNY shall George Town, Grand Cayman. Purpose: company can be served is Naveen Jeereddi, NY 12207-2543. DE address of LLC: c/o Grand Cayman, Cayman Islands KY1-9002. mail process to c/o Larry Gagosian, Any lawful activity. 594 Broadway, Ste. 509, NY, NY 10012. DE CSC, 2711 Centerville Rd., Ste. 400, Arts. of Org. filed with Mr. Delano Gagosian Gallery, Inc. at the principal address of LLC: 2711 Centerville Rd., Ste. Wilmington, DE 19808. Arts. of Org. filed Solomon, Cayman Islands Registrar of office of the LLC. As amended by Cert. 400, Wilmington, DE 19808. Arts. of Org. with Harriet Smith Windsor, Secy. of State, Exempted Limited Partnerships, Ground Fl., of Amendment filed with SSNY on filed with Secy. of State of the State of DE, Div. of Corporations, John G. Townsend Citrus Grove Bldg., Goring Ave., George 1/28/09, name changed to GAGOSIAN Call John Gallagher @ 212-210-0189 for 401 Federal St., Dover, DE 19901. Bldg., 401 Federal St., Ste. 4, Dover, DE Town, Grand Cayman, Cayman Islands. GALLERY INTERNATIONAL LLC. classified advertising opportunities Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. Purpose: Any lawful activity. Purpose: Any lawful activity.
26 | Crain’s New York Business | February 9, 2009 CNYB 02-09-09 A 27 2/5/2009 8:22 PM Page 1
BUSINESS CORPORATE LADDER Exec at new Univision unit gets digital PAGE 29 buck ennis
GOTHAM GIGS A nose for truffles ROSARIO SAFINA, 50, says the key ingredient for the perfect grilled cheese sandwich is white truffle butter. He should know: The founder of Paroli, a distributor of Italian truffle products, is an expert at mak- ing gourmet foods with the extracted flavor. BUON APPETITO After getting his degree at CUNY Baruch, the Brooklyn native joined di- rect marketing firm Wunder- man Ricotta & Kline.The combination of his passion for Italian cooking and his knack for selling food items pushed him to start his business. EXPENSIVE TREATS Mr. Safina began to focus on distributing all-natural truffle products af- ter learning that the delicacies were in high demand around the city. He built a company selling truffles, caviar and mushrooms. By 2003, he was focusing solely on truffles. FACE-LIFT Four years later, Mr. Safina relaunched the firm as the only distributor of 100% certified organic truffles. He sells products like truffle honey, butter and oil. Mr. SHENAN REED AND Safina plans to create more ALEX GOLIMBU established distinct items and offer cooking roles when they started lessons online. their ad agency, —maia blume Morpheus Media. EXPERT OPINIONS buck ennis RECESSION-TIME JOB HUNTING approach the job search like it’s a job itself, and think like a marketer: How are you going to sell yourself while keeping your pitch That’s a lot of face time professional? Pick three things to highlight about your career to capture a recruiter’s For married entrepreneurs, Valentine’s is just a day attention. Be prepared, and TAG TEAM have your résumé and list of Most couples references up to date. Don’t go BY AMANDA FUNG founded their after every job you see; rather, businesses keep your search focused. erial business owners Michael and Kass Lazerow started their first company, before starting Attend networking receptions Golf.com, before they tied the knot. Since they were both working and living sponsored by organizations in a family. your area of interest, and together, Mr. Lazerow had to pop the question in an e-mail in order to surprise his check out the library for future wife. Most couples resources on job hunting. Soon after they married in 1999, they sold Golf.com to Time Inc.They’re now on travel to the —kimberly bishop their third startup, Buddy Media, which was conceived a few days after their third office together, Vice chairman but go home at Slayton Search child, Vivian, was born in 2007. Partners All that togetherness could kill any couple’s romantic impulses.The Lazerows keep different times. their relationship alive with regular date nights. Source: Lisa Aldisert, a Manhattan- based management consultant SLovers around the city are gearing up their Valentine’s Day celebrations, See COUPLES on Page 28 and executive coach istockphoto February 9, 2009 | Crain’s New York Business | 27 CNYB 02-09-09 A 28 2/5/2009 8:23 PM Page 1
BUSINESS LIVES
Thumper MiniPro 2 photos and text. To buy this gift, or to check out other brands and pricing options, visit Gifts from the heart percussion massager www.golfballs.com. $199.95 alentine’s day is the perfect time to set aside worries about the Brookstone economy and treat yourself and your loved one to something special. using a handheld back massager is the ‘Romance for Two’ VHere is a series of gift ideas that will please your partner and won’t blow perfect way to relieve stress. Pressing into $306 per couple your budget. muscles to alleviate Faina European Day Spa built-up tension, this gift will help your spe- reduced from $360, this Valentine’s special Taittinger champagne Mignonette necklace cial someone relax af- will put you and your loved one in the truffles $625 ter a tough day on the mood for romance while keeping you warm Wendy Brandes job. the Thumper and cozy all $43 for a box of 24 MiniPro 2 can be pur- day.The pack- Jacques Torres Chocolate new yorker Wendy Brandes began designing chased online at age includes a jewelry in 2004;since then,her wares have been www.brookstone.com, steam shower, toast your relationship with champagne- written up in magazines or check out the an aroma- and cream-filled milk from Marie Claire to W Brookstone stores located in midtown or by therapy body chocolate truffles from and worn by celebrities the South Street Seaport. polish, a one- New York’s most fa- like Lindsay Lohan. hour Euro- mous chocolatier. Of- Britney Spears famous- pean body fering a unique combi- ly made off with one of massage, and nation of flavors, the her pieces after a 2007 Personalized Wilson a champagne- cork-shaped Valentine photo shoot for OK! At Smartcore golf balls and-chocolate treats—which come in $625, Ms. Brandes’ mi- treat to top it $17.95 12 for a pack of istockphoto a square red box that’s gnonette flower neck- all off. Visit accented with a brown lace is a real steal. The customized golf balls the relaxing getaway on West 57th Street be- bow—provide a unique diamond-encrusted let the links fan in your tween Eighth and Ninth avenues in twist on an old standby. You can shop online white gold pendant will remind your sweetie of life know you care order to purchase a package, or check out at www.mrchocolate.com, or visit the Jacques springtime during this frigid winter. Matching without driving you other special offers on the spa’s Web site at Torres stores in Brooklyn or the West Village earrings in blue topaz are available for $935. into debt. You can de- www.fainaeuropeanspa.com. or on the Upper West Side. Order online at www.wendybrandes.com. sign your own set with —maia blume
tions at home revolving around their business, SoHo-based natural Book deal Couples married to the job soft-drink company Fizzy Lizzy, they play Scrabble to change the Continued from Page 27 not unusual anymore.” same shoe size, but when they mood. for Swayze but the myriad couples running Indeed, the ranks of couple- launched interactive ad agency It also helps that they each have companies in tandem must make owned businesses has grown dra- Morpheus Media in 2001, they es- separate interests outside of their year-round efforts to keep their matically in recent years and could tablished distinct roles and respon- marriage. For instance, Mr. Morrill Atria to publish businesses from consuming their be as high as 10 million today, up sibilities. Ms. Reed focuses on mar- enjoys going to jazz clubs. marriages and personal lives. from 3 million in 2000, according keting and is the face of the “I never go with him,” says Ms. actor’s memoir “We celebrate Valentine’s Day to Glenn Muske, an Oklahoma company,while Mr.Golimbu,a for- Morrill,who sings in her communi- twice a week,” says Mr. Lazerow, State University professor. He says mer lawyer, manages Morpheus’ ty chorus. adding that they’ve missed fewer that number is likely to increase corporate governance and opera- BY MATTHEW FLAMM than 10 dates in seven years. “They even more, noting that bad eco- tions. A third partner, Jamie Driver, Separation can help are sacred.” nomic times push people to start does business development and sometimes,physical separation is a patrick swayze’s much-sought- small businesses instead of to look strategy. simple solution to too much togeth- after memoir has found a home. More comforting than corporate for jobs. “We recognize each other’s tal- erness. Atria Books, an imprint of Si- in these tough economic times, But the risks of co-entrepreneur- ents clearly. We fell into our roles,” Ms. Lazerow had to convince mon & Schuster, acquired world experts say that working with a ship are many, especially during says Ms. Reed. “Alex is by far the her husband to let her have her own rights for the book, according to a spouse can be comforting and pro- downturns. If a company goes un- better negotiator between the two office at Buddy Media, a company publishing industry executive with vide a feeling of security that doesn’t der,two incomes are lost.More gen- of us.” that creates applications for social knowledge of the deal. come with a corporate job. erally, working together can put Establishing boundaries helps, networking sites. The memoir, which Mr. Swayze It can also bring a sense of close- stress on a relationship if roles are but it’s still not easy working with a “I needed a door,” she says. “Af- plans to write with his wife, Lisa ness. “If a couple shares values and not clearly defined. And, of course, spouse. Disagreements arise, and ter having kids and having someone Niemi, will focus on his life before goals, it is easy to transfer that pas- couples must strive to keep business keeping work out of the home is a constantly saying my name, I need- and after he began battling pancre- sion into a business,” says Lisa Ald- out of the bedroom. challenge. “I learned from my ed some separation.” atic cancer early last year. isert, a Manhattan-based manage- Shenan Reed and her husband of mother and grandmothers—don’t While giving each other space is The Dirty Dancing star, who cur- ment consultant and executive nearly 10 years, Alex Golimbu, may go to bed angry at each other,” says crucial to a peaceful coexistence, rently appears in A&E’s The Beast, coach who works with couples. “It’s share sneakers because they’re the Ms. Reed. couples admit that they feel lost has been the sub- David Eckstein and Naomi when their significant other is trav- ject of two People Glaser have been married for 25 eling on business or away for a long magazine cover OUT OF NECESSITY years,and for most of that time,they period of time. stories since he have worked together at Valera “When we had separate jobs, we went public with SOME COUPLES END UP WORKING TOGETHER as a last resort. The dot-com bust Global, a Long Island City, used to have to fill each other in on his illness. Mr. of 2000 propelled Shenan Reed and Alex Golimbu into co-entrepreneurship. Queens-based corporate-transpor- our days,” says Ms. Morrill. “Now Swayze also sat
When Mr. Golimbu’s Internet startup folded during the crash, he took a tation company that they co-found- we don’t have to.” gettyimages down for a top- job as Shenan’s assistant at ad agency Mass Media Interactive. The former ed with another couple in 1986. There is also less competition Patrick Swayze rated special lawyer didn’t mind because he was switching careers and knew nothing When they argue over business, when spouses work together. Ac- with Barbara about digital advertising. “I had the humility to know I could learn from her,” they take time away from each oth- knowledging the obvious financial Walters,during which he told her he he says. er to cool down. risk, all the couples said that one might have just two years to live. Mr. Golimbu’s subordinate role lasted only four months. After Sept. 11, “For me to relax,I need solitude,” benefit of running a company to- Suzanne Gluck, co-head of the Mass Media’s client base dwindled as digital companies imploded, and the says Mr. Eckstein. “I either ride my gether is being equally invested in literary department of the William agency ran out of funding. The couple was laid off along with many others at motorcycle or watch the tube.” the advancement of the firm and Morris Agency,began shopping the the firm, but instead of applying for unemployment, they seized on the On the flip side, couples have to sharing the same goals. In fact, memoir last month. Bidding quick- opportunity. They formed Morpheus Media and convinced Mass Media’s avoid bringing personal arguments many think it has strengthened ly rose above $1 million, according partners to transfer the ad clients they still had—Hertz Car Rental and The to work. If Mr. and Ms. Lazerow their marriage. to a publishing executive who was New York Times Co.—to the new firm. have an argument about who will “It is a union of complete parity,” interested in the project. Morpheus Media was created “out of dire necessity,” Mr. Golimbu says. pick up the kids, it is via e-mail. says Ms. Reed. “I’ve seen couples In recent years, Atria has been a “We didn’t have children. We were young, and we could work crazy Mulling over work issues during compete among themselves: who powerhouse imprint for Simon & hours,” says Ms. Reed. “We had nothing to lose.” downtime is another bad habit. gets a bonus and who gets promot- Schuster, helping to drive growth When entrepreneurs Elizabeth and ed. Their careers butt heads. We with the advice blockbuster The Se- Aaron Morrill find their conversa- don’t have a power struggle.” cret and the novels of Jodi Picoult.
28 | Crain’s New York Business | February 9, 2009 CNYB 02-09-09 A 29 2/5/2009 9:19 PM Page 1
BUSINESS LIVES CORPORATE LADDER Kevin Conroy Learning new language Head of Univision’s tan.“Coming back to New York and the media business is a homecoming PERSONNEL FILE digital division for me.” He has started his new job at a COMPANY Univision Interactive needs to tap growing turbulent time. The recession and Media the slowing advertising market have TITLE President Hispanic market taken their toll on Univision: Rev- enues in the third quarter of 2008 AGE 48 BY AMANDA FUNG were down 2.4% versus the year- RÉSUMÉ Executive VP of global earlier period.The company,bought products and marketing at AOL; hen he became last year by private equity firms, is chief marketing officer and the head of AOL’s laden with debt. president of new technology at broadband busi- BMG Entertainment ness in 2003, Kev- A small contribution in Conroy was what’s more, Univision’s Internet PERSONALITY TYPE Type A givenW the option of commuting to division, which generated $11.5 MANAGEMENT STYLE work. Instead, he relocated his wife million in revenues in the third Collaborative and three daughters to Washington, quarter, accounts for just 2% of the D.C., from New York City.He real- company’s overall revenues—a fair- ized that he could do a better job of ly small proportion compared with over the age of 18 use the Internet, leading the division if he lived clos- results for the online units of other and 20 million own a cell phone. er to the Time Warner company’s media companies. Since 2004, cell phone penetration headquarters, which were then in Univision is still the dominant among Hispanics has grown 52%, Dulles, Va. Spanish-language media company compared with a 27% increase Now, Spanish-language media in the country, and Mr. Conroy among non-Hispanics. giant Univision is counting on the plans to leverage the firm’s leading Mr. Conroy, who has 17 years of dedicated Mr. Conroy to bolster its market position to expand its Web advertising, media and online expe- fledgling digital operations. Last and mobile entertainment brands. rience, has a knack for growing
month, the veteran media executive Univision.com, which attracts 15 emerging businesses, says Jonathan buck ennis took the reins of Univision Interac- million unique visitors a month, has Miller, former chairman of AOL, tive Media, a newly created unit in- been the most-visited Spanish-lan- who has known Mr. Conroy since line radio offering. Before he joined ting pointers from his colleagues. cluding Univision.com, the firm’s guage site among Hispanics in the the 1980s. the company, he launched the dig- Mr. Conroy believes that adding flagship site, and Univision Móvil, United States for seven consecutive “Kevin is a rare executive and up- ital music business at BMG En- more video and making it easier for its mobile division. The Rhode Is- years. front manager,” says Mr. Miller. “At tertainment. users to access information from land native must increase traffic and “I am very fortunate to be build- AOL, when he told me he was go- outside sites—such as popular social make the unit a bigger moneymak- ing from a strong foundation,” says ing to do something, I was able to Latin student network Facebook—will be among er for the media company. Mr. Conroy, who is just three weeks sleep at night.” the executive’s love of music the winning strategies. “I wanted to start a new chapter into his new role. Mr. Conroy held a number of helped him earlier in his career.Now “My philosophy is, the more in my career,” remarks Mr. Con- Hispanic adults are increasing- senior positions at AOL, where he he is in the process of learning what open you are, the more important roy, who is now in the process of ly embracing the Web and cell was credited with building AOL Hispanic consumers want by im- you will become to the consumer,” moving his family back to Manhat- phones. A full 67% of Hispanics Music and launching AOL’s on- mersing himself in research and get- he says.
EXECUTIVE MOVES
ACCOUNTING & CONSULTING 32, was promoted to director from joined as shareholder. He was formerly a Gotham Inc.: Alan Snitow, 33, was named manager. partner at K&L Gates. HOT JOBS partner and group strategist. He had Sean Hayes, 38, was appointed been group planning director at BBH. HEALTH CARE shareholder. He previously was a partner KPMG: Richard K. Anderson, 60, was NYU Langone Medical Center: Deborah at K&L Gates. WANTED: CHIEF EXECUTIVE promoted to chief information officer Loeb Bohren, 54, was appointed vice Stephan Mallenbaum, 53, was named from principal in the IT advisory practice. president of communications and public shareholder. He had been a partner at ORGANIZATION The Children’s Aid Society Howard Steinberg, 42, was promoted to affairs. She had been vice president of K&L Gates. JOB DESCRIPTION Running a 156-year-old nonprofit children’s national leader of the tax restructuring communications at Planned Parenthood Kelley Drye & Warren: Benjamin D. Feder, services agency and corporate recovery practice from Federation of America. 49, joined as special counsel. He had mergers-and-acquisitions tax practice Dr. John G. Golfinos, 46, was promoted been a partner at Thompson Hine. MOST IMPORTANT TASK Keeping the organization fiscally strong partner. to chair of the department of Locke Lord Bissell & Liddell: Steve during the recession Marcum & Kliegman: Robert S. Schachter, neurosurgery and will continue as Schwartz, 49, joined as partner. He was 46, joined as partner. He was previously associate professor of neurosurgery. formerly a partner at Clifford Chance. CREDENTIALS NEEDED Experience running a large nonprofit; a partner at Raich Ende Malter & Co. Mintz Levin Cohn Ferris Glovsky and strong knowledge of and experience with human services issues HIGH TECH & NEW MEDIA Popeo: Andrew J. Bernstein, 46, joined as SALARY The current CEO earned $391,307 in fiscal 2007 ADVERTISING & COMMUNICATIONS CA Inc.: Adam Elster, 41, was promoted member. He was formerly a partner at Brand.net: Beth Soroken-Broun, 43, was to general manager of sales, East, from Dreier. RECRUITER Phillips Oppenheim named director of sales, East region. She area general manager, mid-Atlantic Richard H. Block, 57, joined as member. DOWNSIDE was formerly executive sales director at sales, and will continue as senior vice He had been a partner at Dreier. Fundraising during an economic crisis Conde.net. president. David R. Lagasse, 40, joined as member. UPSIDE Heading a prestigious group helping the neediest children ContextWeb Inc.: John Ruvolo, 31, was He previously was a partner at Dreier. promoted to vice president of sales, U.S., LAW White & Case: Hazem Derhalli, 35, was CEO C. Warren Moses will retire at the end of the year, after 40 from director of sales, Eastern region. Allen & Overy: David B. Horner, 39, was promoted to partner from associate. years with the agency. The organization, which has a $110 million Ken Lauher, 35, was named director of named senior counsel. He had been Jeremy Naylor, 35, was promoted to budget and 1,200 staffers, operates 45 sites, including schools, marketing. He had been practice deputy assistant secretary of partner from associate. neighborhood centers and camps. —MIRIAM KREININ SOUCCAR manager, online marketing, at ITX Corp. transportation policy and chief counsel Martin Toto, 39, was promoted to Lippe Taylor: Matthew Snodgrass, 38, was of the Federal Transit Administration at partner from counsel. appointed senior vice president, digital the U.S. Department of Transportation. marketing. He had been vice president, Greenberg Traurig: Conrad Everhard, 48, MEDIA & ENTERTAINMENT digital marketing, at Porter Novelli. Music Theatre International: Jason Paul J. Herman, 50, was promoted to residential marketing. Cocovinis, 32, joined as director of president of residential management FINANCE & INSURANCE EXECUTIVE PROMOTIONS marketing. He had been creative from executive vice president and SERVICES Equity Resource Investments: Bruce The fastest way to get an announcement into director at Jack Morton Worldwide. director of management. Nature Conservancy of New York: William Quinn, 54, joined as principal. He was Crain’s is to submit details online. Fill out the form Rose Associates Inc.: Robert A. Scaglion, Ulfelder, 40, was promoted to state director managing director at CIT Group. at www.crainsnewyork.com/submit. The REAL ESTATE 52, was promoted to senior managing from Eastern Colorado program director. Stout Risius Ross Inc.: Thomas J. Hope, Executive Moves column is also available online. Brown Harris Stevens Residential Sales: director from managing director of —maia blume
February 9, 2009 | Crain’s New York Business | 29 CNYB 02-09-09 A 30 2/5/2009 8:57 PM Page 1
BUSINESS LIVES THE WEEKS AHEAD TABLE TALK THIS WEEK’S EVENTS by Bob Lape FEBRUARY 10 American Business Women’s Association holds networking dinner. 5:45 p.m. to 8:30 p.m., Domenico’s Restaurant, 120 E. 40th St. Fee: $30 members and first-time guests, $40 Korean eatery nonmembers. (212) 387-8134 or [email protected]. FEBRUARY 10 Workshop in Business Opportunities holds small business workshop. 6 p.m. joins the crowd to 9 p.m., 55 Exchange Place. Free. Preregistration required. Boka serves ‘drinking Scallop, uniting raw scallops, a crab (212) 684-0854, ext. 0538, or stick and avocado and served flam- [email protected]. FEBRUARY 10 ing. Another top-of-the-line roll is food’ on hopping St. New York Public Library holds lecture the Dragon, with seasoned eel, avo- on mutual funds for beginners. 5:30 Marks Place; service cado and cucumber. p.m. to 7 p.m., Science, Industry & can be slipshod Ten dishes predicated on a base Business Library, 188 Madison Ave., of white rice are offered in either a room 018. Free. (212) 592-7000. cold bowl or a hot stone (gobdol). FEBRUARY 11 he sun seldom sets on Toppings, to be blended into the Lower Manhattan Business Solutions St. Marks Place in the rice,range from kimchi with vegeta- Center holds seminar on how to write a East Village. Young bles, egg whites and uncooked yolk business plan. 2 p.m. to 5 p.m., 110 and lively night owls to an unlikely—and untasted— William St., fourth floor, conference room. Free. (212) 618-8914 or troll narrow, jam- combo of vegetables, mozzarella [email protected]. Tpacked eateries of all kinds at all cheese and eel. FEBRUARY 12 hours for food and drink. Add yet Fish and cheese make another Gotham Media Ventures holds another Asian attraction to the appearance in a spicy rice cake,com- breakfast on raising capital in turbulent block between Second and Third bining fish cake, vegetables and red times. 8 a.m. to 10 a.m., Fiduciary Trust avenues. pepper paste. Other Boka main International, 600 Fifth Ave. Fee: $60. Boka is Korean-owned, and one courses reflect the Korean passion (917) 710-2747 or of its owners, Peter Lee, holds a day [email protected]. for beef. Bulgogi, the national FEBRUARY 12 job as head of a hedge fund. Boka’s favorite of grilled marinated beef Greater New York Chapter of the “drinking food” is contemporary with mushrooms and other vegeta- Institute of Real Estate Management Korean for the most part, including bles, is prominent. Barbecued beef buck ennis holds lunch with speaker Seth Pinsky, the renowned bon chon chicken, rib with onions, carrots and mush- NEW SPOT ON THE BLOCK: At Boka, the idea is to sip sake while nibbling on small dishes. president of the city Economic rice cakes and balls, and bi bim bop rooms is cooked and served “Los Development Corp. 11:30 a.m. to 1:30 (cold bowl) and hot stone dishes. Angeles style” on a cast-iron plate, p.m., Helmsley Hotel, 212 E. 42nd St. Some of those others are Japanese- and called LA galbi.A zesty hot stir- drumsticks start at $7.95 for six or surface and flutter when exposed to Fee: $75 members, $140 nonmembers. accented to pair with a serious selec- fry of pork and vegetables. is called three, respectively. Groups may opt heat. They continue fluttering after (212) 944-9445 or [email protected]. FEBRUARY 12 tion of sakes, shochu and soju. jae yook bokum. for platters ($18.95) of 20 wings or the dish arrives in front of the pa- Arts & Business Council of New York The idea here is to sip sake The hypercrispy fried bon chon 10 drumsticks. trons! Very peculiar and enormous- holds press and media workshop. 9 a.m. (brewed), shochu (distilled) or soju, chicken is good, but not great, as Service at the tables can be a bit ly riveting.After it stops moving,it’s to 12:30 p.m., American Express, 3 the Korean distilled spirit, while measured by the originators of the slipshod or spastic. And occasional- good eating. World Financial Center. Fee: $45 nibbling on a variety of small items form uptown. I’d suggest ordering ly, the explanation of certain dishes Boka’s sake and beer choices are members, $75 nonmembers. and some bigger ones, too. the wickedly spicy glaze as opposed goes awry.On one visit, we were ad- impressive, and Korea’s OB beer is a (212) 279-5910, ext. 1121, or Ju muk bob ($2.25) are stuffed to the mild soy-ginger one.The lat- vised to try something called fish nice accompaniment to the cuisine. [email protected]. Korean rice balls—orbs of black or- ter is simply bland. Wings and balls. The description: a mousse- A brief, mostly under $30 wine list FEBRUARY 12 ganic rice filled with vegetables. line-like blend of mashed potatoes fails to note vintages. Financial Women’s Association holds Among the other petite presenta- and ground octopus with a light bat- The restaurant is on the base- forum on global risk management. 5:30 p.m. to 8 p.m.,The McGraw-Hill Cos., tions are salads featuring grilled ter in which it is fried. ment level and has a modern aura 1221 Sixth Ave., second-floor art gallery. chicken,tuna tartare or grilled pork. Well, it turns out to be a real with exposed bricks, a bamboo ceil- Fee: $35 members, $45 nonmembers. Julienned scallions and hot soy showstopper. The batter is covered ing and wood-grained tables and (203) 229-5018 or [email protected]. sauce flavor the pork, which comes with filament-thin flakes of dried chairs. Restrooms are labeled Boys off a bit more sour than ideal. fish that protrude from the ball’s and Girls. FEBRUARY 16-22 Seafood, vegetables or kimchi FEBRUARY 18 make intriguing fillings for pan- Green Boroughs holds meeting on cakes, and a take on tuna tataki is on green business marketing. 12:30 p.m. to BEST OF BOB LAPE 2:30 p.m., G Squared Showroom, 241 target. Four succulent pieces of W. 37th St., suite 523. Fee: $25. high-grade tuna are coated with (718) 530-5074 or [email protected]. ground pistachios. Other Asian attractions: atmospheric swipe at 1940s B FEBRUARY 18 Chef Jeffrey Lee prepares eight BOKA movie Southeast Asia. Small and Networking for Professionals holds “special rolls” ($8.25 to $9.75), from 9 St. Marks Place (between Tengda Asian Bistro larger plates offer Portuguese and business lunch. 12 p.m. to 2 p.m., Dean’s the low-end cooked kimchi with cu- Second and Third avenues) www.tengdaasianbistro.com Chinese takes on the same basic Pizzeria and Restaurant, 801 Second cumber and avocado, to the Fire (212) 228-2887 286 Katonah Ave. (next to the post ingredients. Fun. Ave. Fee: $27.90 members, $37.90 ½ office), Katonah, N.Y. nonmembers. (212) 227-6556 or (914) 232-3900. A colorful and Talay [email protected]. CUISINE Mod Korean FEBRUARY 19 appealing pan-Asian attraction serv- www.talayrestaurant.com Entrepreneurs’ Organization, New York your WINES 11 choices, nine by the ing hefty portions of delicious food 701 W. 135th St. (at 12th Avenue), chapter, holds lecture on protecting helping glass; 40 sakes with style, along with big drinks. Manhattan. (212) 491-8303.Yet intellectual property. 3:45 p.m. to business another duplex hospitality spot in 6 p.m., MetLife Building, 200 Park Ave. in a tough grow DRESS Casual Mai House ½ West Harlem, this one with a Fee: Free for members, $100 NOISE LEVEL Loud www.myriadrestaurantgroup.com Thai-Latin beat, two talented nonmembers. (212) 997-3155. 186 Franklin St. (between Hudson chefs and an engaging service FEBRUARY 19 economy PRICE RANGE $11.75-$16.50 and Greenwich streets), Manhat- crew. State Bank holds seminar on how to by improving WINE MARKUP 80%-225% tan. (212) 431-0606. Drew Niepor- make the most of federal, state and New Moim York City incentive programs. Two your profitability CREDIT CARDS All major ent teams with chef Michael CPE credits given. 8:30 a.m. to 10:15 Huynh to deliver exciting modern www.moimrestaurant.com a.m., Bulova Corporate Center, 75-20 RESERVATIONS Suggested Vietnamese food in a lively ethnic 206 Garfield Place (between Sev- Astoria Blvd., first-floor auditorium, HOURS Seven days, 10 a.m.- setting. enth and Eighth avenues), Brook- Queens. Free. (516) 465-2366 or 2 a.m. lyn. (718) 499-8092. A sleek con- [email protected]. Macao Trading Company temporary Korean restaurant —maia blume = Outstanding 311 Church St. (between Walker comes to Park Slope. Graphic CBIZ Mahoney Cohen = Excellent and Lispenard streets), Manhattan. artist-turned-chef Saeri Yoo Park = Very good More meetings online at 212.790.5700 (212) 431-8750. Chanterelle’s David applies her experience at Spice www.cbizmahoneycohen.com = Good www.crainsnewyork.com Waltuck and the drink-makers of Market and Café Gray to the cui- Click on “Events” Employees Only unite in an sine of her native Seoul.
30 | Crain’s New York Business | February 9, 2009 CNYB 02-09-09 A 31 2/6/2009 5:14 PM Page 1
WEEK IN REVIEW
announce plans this month to trim ECONOMIC SPOTLIGHT between 1,500 and 1,800 jobs, or about 4% of its workforce. Most cuts will be in back-office positions in the firm’s international securities and asset management businesses.The wealth management unit will not be affected. JetBlue union plans grounded pilots at JetBlue Airways Corp. fell short in their bid to form a union, with only 33% voting in favor of the organizing drive, led by the JetBlue Pilots Association. About 1,937 of the carrier’s 2,000 pilots were eligible to vote; 646 voted in favor of unionizing, and 1,291 abstained. Safety switches city buildings Commissioner Madoff’s minions Robert LiMandri announced new construction-safety measure based A LIST OF 14,000 CLIENTS who invested with Bernard Madoff on the recommendations of a $4 Economy Watch was released last week and featured names ranging from million study of crane, hoist, baseball great Sandy Koufax to developer LARRY SILVERSTEIN. excavation and concrete Falling energy prices drove the November decline in area inflation, the steep- It did not detail the amount of money each victim lost but operations. New rules include est one-month drop in history. NYC job losses were the worst since Sept. 11. amendments to crane design revealed many of Mr. Madoff’s victims to be charities and OCTOBER ’08 NOVEMBER ’08 COMPARISON standards, engineering plans, retirement funds. Also on the list were Columbia University and inspections, training and accident NY area inflation change -0.7% -1.6% +2.2%1 dozens of names connected with the New York Mets. investigation protocol. NYC unemployment rate 5.7% 6.3% 7.2%2 bloomberg news NYC employment change -3,300 -19,800 -11,7003 City to launch 1-NY area inflation rate for the latest 12-month period. 2-U.S. unemployment rate for the latest Shops at Atlas Hudson Yards month. 3-NYC employment change year to date. sports school shrugged goes long espn the magazine will work NYC Hotel Stats Broadway Stats new york developer Damon the metropolitan with the city Department of Hemmerdinger has lost control of Transportation Authority,The Education to launch the Business Occupancy and room rate slipped in Attendance and gross continued The Shops at Atlas Park, an Related Companies and Goldman of Sports School.The school will November, data from PKF Consult- their decline from their holiday outdoor retail complex in Queens, Sachs Group Inc. agreed to delay open in September in Manhattan ing show. For the year to date, aver- highs in the two weeks ended 1/25, to two French banks. Société for up to one year signing a with 81 students.The curriculum age 2008 occupancy was just below The Broadway League says. Houses Générale and Calyon will take contract to develop the Hudson will include internships at the 2007 levels, while the average room were filled to just 77.3% of capacity over the property from Atco Rail Yards.The $1 billion deal, magazine, as well as mentoring rate was somewhat higher. in the week ended 1/25. Properties & Management on which included building new from employees there. Feb. 19. Retailers at the mall were office towers and residential alerted of the change last month. buildings, was stalled by the recession. Wireless Courting keys newcomer to the Tavern Off-Broadway metropcs Communications Inc. takes center stage made its wireless debut in New the city department of Parks York City.The company’s network & Recreation nyc & company launched a covers 10 million customers in the issued a formal program to boost business at more metropolitan area. MetroPCS request for than 30 off-Broadway productions offers prepaid calling plans for bidders to take and nearby restaurants.The between $30 and $50. over operations promotion, called On the House, —from staff reports and at Tavern on will run from Feb. 15 to March 1. bloomberg news reports the Green for It includes two-for-one tickets Capital IQ’s Weekly Deals Report the next 20 and a complimentary beverage years. with pre- or postshow meals at TRANSACTION SIZE Proposals for participating restaurants. COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE the Central bloomberg news Cortlandt Towne Center $78.0 Acadia Realty Trust SB M&A Park eatery are due May 1. Donald Retail unravels Cortlandt, N.Y. Trump (above),The Glazier SchoolNet Inc. $13.0 The Carlyle Group, Hamilton Lane GCI Group and restaurateur Danny macy’s inc. announced plans to Manhattan Advisors Inc., Ascend Venture Group, Meyer have expressed interest. cut 7,000 jobs, nearly 4% of its New York State Common Retirement Fund workforce.The company will also Venda Inc. $6.0 Investor Growth Capital, GCI Manhattan GF Private Equity Group Diamond dud reduce its contributions to Babble.com $2.0 Village Ventures GCI employee retirement funds and Manhattan fortunoff holdings filed for slash its dividend. ... Liz Claiborne The Concert Network Inc. n/a Mag Rack Entertainment Inc. SB M&A Chapter 11 bankruptcy protection Inc. said that it plans to eliminate Manhattan and said it would liquidate if efforts 725 jobs, or 8% of its workforce. Workstreamer n/a Austin Ventures GCI to sell the business are unsuccessful. Manhattan NRDC Equity Partners, which Selected deals announced during the week of Jan. 25 for companies headquartered in metro New bought Fortunoff out of Morgan Stanley York. n/a Not available. GCI: Growth capital investment represents new money invested in a company for a minority stake. SB M&A: Strategic buyer M&A represents a minority or majority bankruptcy protection last March, to make cuts
acquisition of existing shares of a company without the participation of a financial buyer. put the company on the block last bloomberg news
bekka lindström bekka month but hasn’t found a buyer. morgan stanley is expected to MACY’S announced plans to cut 7,000 jobs.
February 9, 2009 | Crain’s New York Business | 31 CN012723 1/30/09 3:49 PM Page 1
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