CRAINSNEW YORK BUSINESS
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CHANGING TIDES IN RED HOOK As residential developers clamor to build on the Brooklyn waterfront, industrialists such as John Quadrozzi Jr. ght to keep their businesses a oat PAGE 13 PLUS: Pressure mounts on Port Authority to cash in on the Red Hook Container Terminal PAGE 16
VOL. XXXIV, NO. 4 WWW.CRAINSNEWYORK.COM CONGESTION WILL ESSEX THE LIST PRICING GETS CROSSING Largest A REBOOT UNITE THE executive- P. 3 AND P. 5 LOWER recruiting EAST SIDE? rms P. 10 NEWSPAPER P. 8
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FROM THE NEWSROOM | ERIK ENGQUIST | ASSISTANT MANAGING EDITOR IN THIS ISSUE
A how-not-to for op-eds 4 IN CASE YOU MISSED IT Sony/ATV artists have 5 POLITICS more than SOME YEARS AGO Crain’s began accepting op-ed submis- 100 nomi- 6 ASKED & ANSWERED nations for sions and publishing two to four each month. Now we this week’s 7 TECHNOLOGY receive that many every day, run as many as we can online Grammy and perhaps one in each print issue. I screen all of them and 8 WHO OWNS THE BLOCK Awards edit the ones we use. is helps me understand all the issues 9 VIEWPOINTS our readers care about, but it takes a tremendous amount of 10 THE LIST time. I’m going to try to cut down on some of that time right FEATURES: THE FUTURE OF RED HOOK now by sharing with all of you—businesspeople, advocates, PR professionals, public o cials and ordinary readers— 13 WORKING THE WATERFRONT the keys to getting your pieces rejected. Just follow these 16 SHIPPING OUT steps (which a fair number of submitters unwittingly do Use arcane language already) and you will dramatically reduce my workload. and excess verbiage. P. First, we cover only New York, so don’t mention New “ Oona20 Tempest York anywhere in your piece. It’s the rst thing I look for, And be sure to and its omission makes for an easy decision: No. attack rival interests If you do manage to sprinkle local references throughout with scurrilous your article, worry not. Just make sure the topic concerns New Yorkers and also everyone else (“Congress must accusations address global warming!”) My task is still easy: Delete. 20 GOTHAM GIGS Other sure re failure tools are to use a lot of arcane lan- 21 SNAPS guage, excess verbiage, industry jargon and acronyms. Speak to a narrow group of experts, rather than to our general readership. Make your lead paragraph cum- 22 FOR THE RECORD bersome, if not indecipherable, to scare folks away rather than draw them in. And 23 PHOTO FINISH double or triple our recommended length of 500 words to ensure that readers, start- CORRECTIONS ing with me, never get to the end. Ray LaHood’s name was misspelled in “Stormy If you cannot help but write clear, concise text explaining your point as you would weather made one thing clear: JFK needs help” to someone at a cocktail party, fear not. Other avenues to the trash bin remain. One published Jan. 15. Josh Zegen, co-founder and CEO of Madison Realty is to send us a press release or a story pitch and slap “op-ed” in the subject line. I’ve Capital, said, “There are going to be a lot of pro ts seen about a million interest-group statements and PR pitches in 27 years as a jour- to be made for owners who have single-story nalist, so I’ll recognize your impostor right away. properties that can now add oors and lease that Another road to rejection is to write to someone else—the governor, say, or space.” The quote was misattributed in “Investors snap up properties as the warehouse market another publication, or the authors of a previous op-ed. Address it to them speci - soars,” published Jan. 15. cally. We’re happy to be your personal messaging service. Not. Finally, my favorite: Attack a business rival rather than make a case for govern- ment or civic action that bene ts the public (even if it helps you, which is OK). For instance, if you own taxi medallions, declare that Uber gets away with murder because it is evil and all judges and regulators are corrupt. Be sure to omit your con ict of interest and include scurrilous accusations unsupported by evidence. Now please excuse me while I gure out what I’ll do with all my spare time. ON THE COVER PHOTO: BUCK ENNIS CONFERENCE CALLOUT FEB. 14 CRAIN’S DIGITAL DISPATCHES BREAKFAST FORUM Go to CrainsNewYork.com Alphonso David, counsel to the governor and a longtime member READ A Crain’s 40 Under of his inner circle, is set to discuss 40 honoree in 2010, the Cuomo administration budget Joe Zidle becomes > and legislative and regulatory BlackStone’s new priorities for 2018. investment strategist. He will work alongside NEW YORK legendary forecaster Byron ATHLETIC CLUB Wien, 85, vice chairman of the private wealth group, 8 to 9:30 a.m. gradually taking over his duties. [email protected] ■ Newly released campaign nance Vol. XXXIV, No. 4, Jan. 22, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double records show the Women’s Equality Party, issues the weeks of Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third the boutique political party started by Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send Gov. Andrew Cuomo, had just one contrib- address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. utor, a Rockefeller heiress. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2018 by Crain Communications Inc. All rights reserved. ■ The Legal Aid Society sued to stop the rezoning of East Harlem that the City Council passed last year. BUCK ENNIS
2 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P002_CN_20180122.indd 2 1/19/18 8:08 PM JANUARY 22, 2018
AGENDAOur strategy to get Albany’s OK on congestion pricing: whatever it takes
ne of the unfortunate things about congestion pricing is that it will never quite reach its potential. No matter how perfectly it could be designed with the aid of computer mod- eling, behavioral analysis and advanced economic theory, it Owill have to be adulterated by politics in order to gain approval from the state Legislature. But make no mistake: Whatever form congestion pricing must take to pass muster with lawmakers will be better than what we have now, which is vehicles taking convoluted routes and wholly unnecessary trips that cost the metro-area economy $20 billion a year, foul the air and make people miserable. It’s a shame that the debate that began Friday with a road-fee proposal by Gov. Andrew Cuomo’s Fix NYC panel will not be about mak- ing it as e ective as possible. at cannot be the focus. No, this will be transit, but that is a feature of it, not the purpose. What it does best is about votes: 32 in the state Senate and 76 in the Assembly, the minimum improve trac, which is increasingly robbing New Yorkers of money and needed in each chamber. Such is the nature of democracy. time that they will never get back. Sure, the extra billion dollars a year that Even if this were not an election year, the plethora of stubborn, unen- road fees would generate for subways is desperately needed and will make lightened, self-interested legislators will require the governor to make the measure palatable for lawmakers in transit-dependent areas. Better changes to get a plan through. Some of the subway service would also draw some trav- tweaks may enhance it, but most will be Compromises will be needed to elers out of their Ubers and back onto the compromises to appease this or that constit- trains, freeing up Manhattan asphalt for its uency. No matter. If Cuomo can somehow persuade lawmakers to do something most valuable use—deliveries and cross- get lawmakers to do something never before never before tried in the U.S. So be it town trips for which subways are useless. implemented in the U.S.—never mind that In the end, congestion pricing will suc- it’s worked well for years in cities around ceed for the same reason that the market the world, and the premise of congestion pricing underpins our capitalist economy does, by pricing scarcity. Bopping around Midtown and Lower system—it would be a tremendous accomplishment. Years later, when its Manhattan in a car is a luxury that must be priced as such because other- bene ts become clear, improving it won’t be so heavy a political li . wise it ceases to exist: e streets get so crowded that no one can move, Note that we haven’t mentioned the subways yet. Mayor Bill de Blasio including buses and ambulances. For the lawmakers who don’t grasp that, talks about congestion pricing almost exclusively as a means to fund mass Cuomo will have to bargain and posture. Whatever it takes. — THE EDITORS
FINE PRINT Small businesses often are credited with creating most of the nation’s jobs. But big businesses are better at retaining them. For example, in East Harlem, where more than two-thirds of businesses have fewer than ve workers, the 2% of employers with 100 or more workers account for 68% of jobs in the area, the state comptroller reported.
BY GERALD SCHIFMAN ST
THE NEW YORK BOAT SHOW, set to begin this week, has A
been increasing in size as the boating industry grows. TS 25 WORDS OR LESS ROCKING BOATS AN D THE CIT Y The governor “is the single biggest proponent of expanding Increase in new-boat sales Sales of new powerboats, in New York City from 2015 engines, trailers and design-build 13.6% to 2016 $688M accessories in 2016 in the state, up 14% from 2015 and the sixth-highest —From a statement by a Cuomo total in the nation spokesperson touting the program’s Economic impact of Rise in the New York Boat Show’s inclusion in the governor’s recent state the boating industry attendance since it moved from budget proposal, which does not give $5.8B on the state’s economy 51% holiday-time scheduling in 2014 to city agencies authority to employ it late-January dates last year
ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCE: National Marine BLOOMBERG, BUCK ENNIS Manufacturers Association
JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20180122.indd 3 1/19/2018 8:16:45 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C. Crain senior executive vice president Chris Crain group publisher Mary Kramer
EDITORIAL Marjiuana legalization managing editor Brendan O’Connor assistant managing editors Erik Engquist, closer than ever in New York Jeanhee Kim, Robin D. Schatz copy desk chief Telisha Bryan art director Carolyn McClain ITHIN THE FIRST TWO WEEKS OF 2018, the state’s ALTERED photographer Buck Ennis medical marijuana industry went from panicking STATE: The governor is senior reporters Joe Anuta, Aaron Elstein, over an existential threat from the federal govern- looking to Matthew Flamm, Daniel Geiger W study the reporters Will Bredderman, ment to contemplating what full legalization would look like effects of Jonathan LaMantia, Caroline Lewis during a state Assembly hearing. legalization. data reporter Gerald Schifman en on Tuesday, Gov. Andrew Cuomo so ened his longtime web producer Chris Kobiella stance against recreational marijuana and included funds to columnist Greg David contributors Tom Acitelli, Theresa Agovino, study the economic and social impact of legalization in the Yoona Ha, Miriam Kreinin Souccar, executive budget. e sequence of events that led to that move Cara S. Trager to contact the newsroom: brought New York closer than ever to taxing and regulating www.crainsnewyork.com/staff marijuana as it does alcohol. 212.210.0100 U.S. Attorney General Jeff Sessions on Jan. 4 rescinded an 685 Third Ave., New York, NY 10017-4024 Obama-era policy that oered reassurance to states with legal ADVERTISING www.crainsnewyork.com/advertise cannabis that most marijuana oenses would not be prose- advertising director Irene Bar-Am, cuted. Sessions’ memo prompted an immediate backlash, with frustrated state lawmakers, advocates and entre- 212.210.0133, [email protected] preneurs urging Congress to pass federal legislation ending marijuana’s legal limbo. New York’s Medical Cannabis senior account managers Lauren Black, Zita Doktor, Rob Pierce, Industry Association, like Cuomo, has never explicitly endorsed full legalization. However, the group noted on the Stuart Smilowitz day of the Assembly hearing, “ e reality is, New York is surrounded by states with recreational marijuana policies.” senior marketing coordinator Charles Fontanilla, 212.210.0145 By the time the Assembly discussed legalizing marijuana the week a er Sessions’ memo, Vermont lawmakers [email protected] had passed a legalization bill, and a similar measure was approved by New Hampshire’s House of Representatives. sales coordinator Devin Arroyo, ose states and New Jersey, whose new governor favors legalization, are poised to join Massachusetts and Wash- 212.210.0701, [email protected] CUSTOM CONTENT ington, D.C., as East Coast vanguards of legal pot. director of custom content Advocates were still skeptical that Cuomo would come around. But then Joel Giambra, a Republican who plans Patty Oppenheimer, 212.210.0711, to run for governor, noted that tax revenue from legal marijuana could help fund the subways. ere’s little question [email protected] custom project manager Danielle Brody, momentum is building. As one Twitter user put it, “Cuomo has correctly read the tea leaves.” — CAROLINE LEWIS [email protected] EVENTS www.crainsnewyork.com/events director of conferences & events Not on the menu DATA POINT company Bonnier Corp. Among the Courtney Williams, 212.210.0257, e Department of Health temporar- many departing sta members is Edi- NEW YORK SMALL BUSINESSES [email protected] ily closed popular brick-oven pizze- tor-in-Chief Adam Sachs. e magazine manager of conferences & events ria Grimaldi’s. A Jan. 10 inspection at RANKED 42ND OUT OF 50 STATES is also cutting its annual publication Adrienne Yee, [email protected] the Dumbo eatery found signs that IN POLITENESS, ACCORDING TO frequency from six issues to four. events coordinator Ashlee Schuppius, there were mice, the restaurant wasn’t [email protected] vermin-proof and its plumbing was FRESHBOOKS, WHICH MEASURED Square deal AUDIENCE DEVELOPMENT improperly installed or maintained. THE FREQUENCY OF “PLEASE” AND GFP Real Estate and Northwind Group group director, audience development have agreed to purchase 7 Hanover St. Jennifer Mosley, [email protected] “THANK YOU” ON INVOICES. Out of fashion for $310 million. e 904,500-square- REPRINTS Alexander Wang is the latest designer foot o ce building, adjacent to reprint account executive Lauren Melesio, to drop out of New York Fashion Week. Hanover Square in the Financial Dis- 212.210.0707 Rather than showing collections in the a Transportation Security Administra- trict, was developed and owned by PRODUCTION typical months of February and Sep- tion screening line reserved for regular the Milstein family and Swig Weiler & production and pre-press director tember, the label plans to debut its lines folk. Christie called the story “false,” Arnow Management. Simone Pryce in June and December. tweeting that a Port Authority o cer — CHRIS KOBIELLA media services manager Nicole Spell initially led him to the wrong place. SUBSCRIPTION CUSTOMER SERVICE No Silver lining www.crainsnewyork.com/subscribe Former Assembly Speaker Sheldon Sil- Coogan’s bluff [email protected] ver lost his bid to avoid a retrial on cor- Washington Heights’ famed Coogan’s 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $99.95 ruption charges when the U.S. Supreme Restaurant will not be closing a er all. one year, $179.95 two years, for print Court declined to review his case. e When it announced that it could not subscriptions with digital access. Second Circuit Court of Appeals last aord its rent increase, public outcry Entire contents ©copyright 2018 year sent his case back to the trial court. and a change.org petition paved the Crain Communications Inc. All rights way for a favorable deal with landlord reserved. ©CityBusiness is a registered Prix xe tix New York–Presbyterian Hospital. trademark of MCP Inc., used under license e New York Jets are reducing prices agreement. on more than half of their tickets for Portable water CRAIN COMMUNICATIONS INC next season and freezing prices on the Brooklyn Borough President Eric chairman Keith E. Crain rest. e average ticket reduction comes Adams announced a mobile shower vice chairman Mary Kay Crain to 11%. e team won ve games and service for homeless people. A school Love bugs president K.C. Crain lost 11 this season. bus will be out tted with two shower The Bronx Zoo is once again offer- senior executive vice president Chris Crain stalls, soap, towels, razors and clean ing romantics the opportunity to secretary Lexie Crain Armstrong Ex marks the spot under garments. It will begin rolling name one of its Madagascar hiss- editor-in-chief emeritus Rance Crain chief nancial of cer Robert Recchia Chris Christie was reminded that he through the borough in about a year. ing cockroaches after a loved one is no longer New Jersey’s governor for Valentine’s Day. The $15 “gift” founder G.D. Crain Jr. [1885-1973] when he attempted to use the VIP Gastrointestinal issues includes a digital certi cate sent to chairman Mrs. G.D. Crain Jr. [1911-1996] entrance at Newark Liberty Interna- Food and wine magazine Saveur was the signi cant other on Feb. 13.
FLICKR/GOVENER ANDREW CUOMO tional Airport. He was made to stand in served a round of layos by parent
4 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P004_CN_20180122.indd 4 1/19/18 7:00 PM POLITICS
Congestion pricing returns with larger fee, smaller zone New plan arrives 10 years after the last one—and traf c 53% worse BY WILL BREDDERMAN
decade a er Mayor viewed as a last resort, but the e system would have a Friday seemed open to a low-income New Yorkers—a Michael Bloomberg’s dire state of the NYC subway two-year phase-in, rst a ect- compromise. He o ered sur- provision he excluded from his bid to charge drivers system demands action.” ing trucks, then cabs, then prising praise for elements of own city budget. entering the Man- private vehicles. It di ers from the proposal despite having Some of the report’s ideas Ahattan business district sput- Cordoning off business district the one that tra c consultant denounced road pricing as might yet spark conict be- tered to a halt, Gov. Andrew e new plan would charge Sam Schwartz, a Fix NYC regressive and demanding a tween the mayor and governor. Cuomo li ed the sheet o his personal autos $11.52 for cross- member, had designed for millionaires tax instead. “ is It calls for reforms to the city’s own congestion-pricing model. ing a street-level cordon— MoveNY. at one would have plan certainly shows improve- Taxi and Limousine Com- His Fix NYC panel’s report whether exiting the FDR Drive lowered tolls on Metropoli- ment over previous plans,” de mission and to government notes the sorry state of tra c or coming down a north-south tan Transportation Authority Blasio said in a radio inter- parking placards. It demands and the subways. It echoes a avenue—below 60th Street be- bridges and imposed them on view. “We may need elements more tra c enforcement and report by the Partnership for tween 6 a.m. and 8 p.m., via East River spans. But Cuomo of both of these ideas to get to new tax zones to fund subway New York City that tra c costs EZ-Pass or a bill mailed to the promised to lower tolls on the that ultimate solution.” improvements. the metro economy $20 billion vehicle owner. Tolls paid on Verrazano, Cross Bay, White- e mayor welcomed the “ e panel has learned les- annually, up from $13 billion the way into the city would be stone and rogs Neck bridges emphasis on commercial traf- sons from international exam- 12 years ago. credited against the fee. in conjunction with his plan. c and the decision not to ples that strongly support rst “To remain a world-class Trucks would shell out “As a born-and-raised toll the Brooklyn, Manhattan, investing in public transporta- city and region, New York must $25.34 per trip into the con- Queens boy, I have outer- Williamsburg and Queens- tion alternatives before imple- address the increasing conges- gestion zone until 10 p.m.—a borough blood in my veins,” boro bridges. He insisted on menting a zone-pricing plan tion on our roadways and bring notion sure to worry business- Cuomo said. “It is my priority a guarantee that the program’s to reduce congestion,” the re- the subway system back to a re- es dependent on deliveries. that we keep costs down for $1 billion or more in annual port reads. It suggests nding liable state,” the report reads. Uber and other for-hire ve- hard-working New Yorkers and revenue would go to the sub- breaks for workers who must “Implementing new fees and hicles would pay $2 or $5 per encourage use of mass transit.” ways, as the plan says, includ- drive. Congestion pricing re- surcharges should always be trip in or out of the area. Mayor Bill de Blasio on ing cut-rate MetroCards for quires Albany’s approval. ■
JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 5
P005_CN_20180122.indd 5 1/19/18 7:22 PM ASKED & ANSWERED ENTERTAINMENT INTERVIEW BY ROBERT LEVINE
MARTIN BANDIER SONY/ATV MUSIC PUBLISHING
eginning in the 1970s, Martin Bandier helped turn a relatively quiet part of the music industry into a modern business that attracts private-equity inves- tors seeking steady returns. After founding his own This year for the Bcompany, he took EMI Music Publishing to No. 1 in its category. “ rst time we got In 2007 he joined rival Sony/ATV—then a joint venture between more revenue Sony and Michael Jackson. The company brings in an estimated from streaming $1.2 billion annually on the more than 3 million songs it owns than from CDs or controls, including hits by the Beatles, Ed Sheeran and Taylor Swift—and a little ditty called “Despacito.” and downloads combined
How do you differ from a record label, and how does the money come in? Record companies own recordings—Judy Garland singing “Some- where Over the Rainbow,” for example. Often someone else owns the lyrics and the melody, and in this case that’s us. If someone wants to use our song—play it on the radio, record it, use it on lm or a TV show, even in a music-playing doll—they need to get a license from us. We also invest in stage productions that involve our songs: Beautiful: The Carole King Musical, Motown: The Musi- cal and, coming this fall, Ain’t Too Proud, about the Temptations. You started your career as a lawyer. How did you end up in music? DOSSIER The law rm I worked for was representing a client who was selling a music-publishing company. I was the only associate who WHO HE IS Chairman and had long hair, so they asked me to work on it. I became enamored CEO, Sony/ATV Music Publishing with the business. EMPLOYEES “Approxi- mately 1,000, including active Why did you choose music publishing instead of a record label? songwriters” Seeing a record executive rushing through an airport, chain- OFFICES 36 in 24 countries smoking and waiting to hear if a song was added to a radio sta- tion playlist … it didn’t seem as appealing as watching a music AGE 76 publisher smoking a Havana cigar while strolling through an air- GREW UP Jackson Heights, port. The business also seemed to have potential for growth. Queens RESIDES Upper East Side You make it sound like a gentlemanly business. EDUCATION Bachelor’s in history It was! It’s become very competitive. Every major record company and government affairs, Syracuse and lots of nancial rms got into this. I haven’t changed, though, University; J.D., Brooklyn Law School because at the end of the day, I’ve always wanted to win. LEGACY In 2006 he founded the Bandier Program for the music business and enter- How much can a big hit earn in a year? tainment industries at Syracuse University. Hard to say. Could be $5 million. It’s regularly ranked as one of the best such programs in the United States. Record labels are growing again due to streaming. Are you bene ting too? BILINGUAL Sony/ATV owns publishing We don’t have the same revenue share that the recorded side rights to “Despacito,” the most-streamed song has, but we have enough for us and our songwriters to make in history. “It’s the catchiest thing you’ve ever money on Spotify’s 70 million paid subscriptions. This year for the heard. People are now aware that a Spanish- rst time we got more revenue from streaming than from CDs and language song, maybe mixed with English, can downloads combined. At this point business is terri c—we just be the next big thing.” The company also had another global pop hit with “Mi Gente.” had our best year ever. HISTORY BUFF Bandier has an extensive You recently signed a deal with Facebook. What will that look like? collection of Winston Churchill and Major League They’re not creating a music service. They have the right to use Baseball memorabilia. In his den hangs Jackie Rob- inson’s MLB application, with his original signature. our songs in user-generated content, and we’ll see revenue from our music being used there for the rst time. It’s a whole new NO FAVORITISM Bandier won’t say which Sony/ product—a major breakthrough for us. ATV song is the most valuable. “I’d be insulting so many amazing writers. I don’t want to say that ‘Somewhere Over the Rainbow’ is better Your writers have more than 100 Grammy nominations this year, including than ‘Hey Jude.’” a few for Song of the Year. What are you going to do after the ceremony? BUCK ENNIS I’ll tell you what I’m doing and then what I’d like to be doing: I’m going to our party, but I’d like to be going home. So we’ll be party- ing. We really wanted the Grammys to be here in New York again, and that will be wonderful. ■
6 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P006_CN_20180122.indd 6 1/19/18 2:33 PM TECHNOLOGY
New York makes Amazon’s HQ2 wish list. Now what? The city is a nalist. Here’s how it can close the deal BY GREG DAVID
ew York City’s chances of “ ere is a real estate cost and a landing Amazon’s second business cost” of location decisions, THE DEPUTY headquarters depend on said Je Fronek, director of invest- MAYOR insists which of the company’s ments for Rubenstein Partners, the city and N priorities—cost, economic impact, co-owner of 25 Kent, a new Williams- state are working mass transit, diversity and available burg o ce building that has been together talent—it deems are most important. pitched as a home for Amazon. “New on the bid. Last week Gotham made the list York City has shown the ability to of 20 nalists for what Amazon calls attract the best talent—a younger gen- HQ2, which could bring 50,000 jobs erational workforce.” and $5 billion in investment over a e large number of cities still in decade to the city it picks. e com- play, their size disparities and their pany is branching out, having out- geographic breadth suggest that three immediate problems loom. will have to put aside their endless grown its home base in Seattle, where the list doesn’t represent Amazon’s First, the options have to be nar- feuding to coordinate the e ort. Glen it employs 44,000 people. real thinking on nalists, said Tom rowed. e city o ered four potential said the city and state are working col- e short list includes Los Angeles Stringer of BDO’s Corporate Real sites in its initial bid—in Brooklyn, laboratively. “ e governor and the and Boston as well, but it is dominated Estate Advisory Services, who has Manhattan and Queens. Real estate mayor are 1,000% aligned on the bid by smaller cities such as Austin, Texas; spent two decades advising companies insiders say they expect Amazon to for Amazon,’’ she said. Columbus, Ohio; and Pittsburgh. on relocations. He noted that only the indicate which one it prefers when it e city has not yet been contacted Newark also made the cut. ey o er biggest cities on the list have the pop- briefs the city on the next stage of the by Amazon about what the next steps lower costs and would allow Amazon ulation to sta a headquarters as large competition. will be. Glen plans a three-pronged to make a greater economic impact on as Amazon envisions—which makes Second, the city and the state will e ort focused on deep dives into the its host—which is one of the retail- New York a contender. Also, Amazon have to decide how much they are sites it has o ered, a major e ort to er’s goals. last year inked a deal to put a major willing to o er Amazon in incentives show the strengths of the city’s uni- But few of the smaller cities can operation with 2,000 people at high- and other tax breaks. e company versities and tech talent pool, and a meet the criteria of a mass-transit end Hudson Yards, a sign that costs has extracted $1.1 billion in subsidies campaign centered around all that system, and none would o er Ama- are not always paramount. as it has expanded around the country, New York o ers that would allow the zon as much opportunity to build a Stringer said he believes the most according to Good Jobs First, a watch- company to attract people who want diverse workforce, two more of its likely landing spot is the Washing- dog group that maintains an Ama- an urban lifestyle. requirements. ton, D.C., area, which would meet the zon tracker. “Amazon needs New York,” said e most important strength of company’s needs and establish a pres- Last week Deputy Mayor Alicia Julie Samuels, executive director of New York is its pool of tech talent, ence that could help it inuence fed- Glen reiterated that the city will not Tech:NYC, which represents technol- which has fueled the growth here of eral policy. o er any incentives beyond those ogy companies operating in the city. Google, which now employs 7,000 in available to all companies. Gov. “And New York needs to show Ama- the city; Facebook, with 1,000-plus Selling the city Andrew Cuomo insisted that the state zon—the private sector, the city gov- sta members and growing; and thou- How New York will organize its would provide a competitive package. ernment and state government—that sands of startups. e ort to lure Amazon is unclear, but ird, the mayor and the governor it wants Amazon here.” ■
The Awl to close as digital media’s struggles continue Indie site’s end follows layoffs at BuzzFeed, HuffPost and Mic BY MATTHEW FLAMM
he announcement last week publishers are forced to look for new when online-ad networks pitched e publication has also been building that e Awl and its sister sources of revenue. small websites to advertisers, and ad a membership program that now has site, e Hairpin, would soon “ e Awl Network has always been agencies were receptive to publish- more than 35,000 subscribers and gets be shutting down could not nancially precarious—as most indie ers with fewer than 5 million unique 25% of total revenue from podcast Thave been a surprise to media watchers. publishers are,” the site’s publisher, monthly visitors. advertising—up from nearly nothing a ere have been layo s across a slew of Michael Macher, wrote in an email. In the current environment, how- few years ago. digital properties in recent months, and “We did recognize a trend, however, ever, even BuzzFeed—with its audience “All of those things are there to o - the Awl Network, unlike bigger names and collectively came to the conclusion of 158 million unique visitors, accord- set how di cult the direct display ad in publishing, had no capital investment that this marks a natural end for e ing to Nielsen DCR—has had to change market can be,” Check said. and served a narrow, if sophisticated, Awl and e Hairpin.” course and lay o 100 sta members. It No one can compete with Facebook audience at a time when advertisers are recon gured its business operations in or Google on size or the ability to target increasingly looking for scale. David struggling against Goliath November. e goal was to concentrate audiences, acknowledged Jason Kint, But e Awl was also unusual in e trend was the growing di - on revenue streams beyond “direct- CEO of Digital Content Next, a trade that it was pro table pretty much since culty the publication had in securing sold advertising,” Chief Executive group for publishers. But he insisted its founding in 2009 by three Gawker ads through direct deals with adver- Jonah Peretti wrote in a memo. that the news isn’t all bad. and Radar Online alumni, which helps tisers. ey pay higher rates than “pro- “It’s become a very volatile and Ongoing issues of trust, such as explain why its passing made waves. grammatic” ads, which are purchased unpredictable market for a lot of peo- extremist content on YouTube and how e surrender revealed that no busi- through an automated bidding process. ple,” said Dan Check, president of Slate, accurately Facebook measures tra c, ness model is safe. As more than 60% Macher noted that this trend was not the two-decade-old news site that for are causing “a ight to quality” among of digital ad dollars continue to ow recent. He described a “golden age of the past year has been pitching adver- some advertisers, Kint said, adding,
to Facebook and Google, smaller indie publishing,” up to around 2013, tisers on reader loyalty rather than size. “ ere is some wind at our backs.” ■ GETTY IMAGES
JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 7
P007_CN_20180122.indd 7 1/19/18 7:48 PM REAL ESTATE WHO OWNS THE BLOCK
ESSEX CROSSING
Essex Crossing comes on line Nine-building development caps decades of change on Lower East Side
BY TOM ACITELLI 116 DELANCEY ST./140 ESSEX ST./121 STANTON ST.
aul Stallings bought his rst four build- The building at 116 Delancey St. will 131 RIVINGTON ST. be a rental with retail and is sched- ings on the Lower East Side—each with uled to open in 2021. The 8-story Neil Bender owns the six- oor, 24 apartments—for a total of $250,000. 140 Essex St. is expected to open 25,650-square-foot mixed-use build- ing, which housed restaurateur Keith e year was 1980, and the deal was in 2019 with affordable rental units for elderly tenants. It will also have McNally’s Schiller’s Liquor Bar from Psealed with $40,000 in cash and the balance in retail. The one at 121 Stanton St. will 2002 until a rent hike prompted its seller nancing. be a market-rate condo with retail closure last year. Bender is the nephew of the late William Gottlieb, a reclusive “I started on Norfolk Street,” said Stallings, an and is expected to open in 2024. gure who controlled one of the city’s attorney turned investor. “And literally you didn’t largest private real estate portfolios. go to the end of Norfolk Street because it was too dangerous.” Twenty-four years later, Stallings opened the Hotel on Rivington, the 115 DELANCEY ST. neighborhood’s rst boutique inn, which, This 25-story, 315-foot building will along with other high-end additions, such be the tallest of Essex Crossing’s nine as Schiller’s Liquor Bar by Keith McNally properties. It is scheduled to open in 105 NORFOLK ST. and the Blue Condominium, touched o the fall and will have 195 apartments and a 14-screen Regal Cinema. a wave of change that all but wiped away The Blue Condominium opened here in 2007. The 32-story building, de- the Lower East Side’s gritty, crime-ridden veloped by a joint venture between legacy. Angelo Consentini and John Car- e capstone came in September 2013, when son, was a striking departure for the neighborhood in terms of its cantile- the Bloomberg administration tapped L&M De- vered azure design and its amenities, velopment Partners, BFC Partners, Taconic In- which included the Lower East Side’s vestment Partners and Goldman Sachs to rst 24/7 doorman. The pair bought develop a 6-acre parcel known as Essex 242 BROOME ST. the site, as well as air rights, for nearly $6 million in 2005. The seller was the Crossing. e nine-building, 1.87 million- Construction is expected to wrap this family that owned Ratner’s delicates- square-foot project is set to begin opening year on the 14-story, 55-unit Essex sen, which closed in 2002. Blue was this year. It includes a massive, subterra- Crossing condo building. The rst ve built on the deli’s largest parking lot. oors will have both retail and com- nean retail complex; hundreds of mar- mercial tenants, and the Internation- ket-rate and a ordable apartments; and a al Center of Photography will occupy 15,000-square-foot park. Plus, there will space there. be a cinema, a Trader Joe’s and a Target. e project sits on land that federal and local authorities cleared in the late 1960s under the guise of urban renewal. Numerous attempts to rebuild there failed, derailed by then Assembly 180 BROOME ST./175 DELANCEY ST. Speaker Sheldon Silver’s controversial e orts to 202 BROOME ST. appease select constituents by keeping the parcels The 26-story 180 Broome St. will have Work on this 15-story build- Class A of ces on oors two through vacant. But a corruption scandal would humble ing is expected to nish in ve and 263 mixed-income apartments Silver in 2015 —the same year that construction 2020. It is slated to have above. There will be street-level retail. Class A of ces on oors two started on Essex Crossing. The building is expected to be nished through ve and 83 condos in 2020. The 15-story 175 Delancey St. Stallings, who was not involved in the proj- up top. There also will be is expected to open this month. It will in- ect, said that aside from pushing real estate prices street-level retail. clude 99 apartments aimed at older New much higher, the development’s biggest e ect may Yorkers and contain a 55,000-square- foot medical center that NYU Langone be ending a longstanding geographic divide will operate. There will also be ground- “Historically there’s always been this east-west oor retail and a community center. division,” he said. “SoHo, NoHo were prime areas, 145 CLINTON ST. and as you marched east, rents and values dimin- ished. is might be the icing on the cake in elim- This 15-story, 211-unit apartment build- inating that di erential.” ■ ing will include the Lower East Side’s rst Target and rst Trader Joe’s. There will be a 15,000-square-foot park with a play- ground. It is expected to open next month. GOOGLE MAPS, MOSO STUDIO
8 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P008_CN_20180122.indd 8 1/19/2018 3:57:41 PM VIEWPOINTS
Cuomo rails at tax bill, but his proposals are modest CUOMO NUMBERS 62% Demonizing D.C. has burnished the governor’s image 55% 50%
GOV. ANDREW CUOMO to win re-election. tax. James Parrott of the Center for New has been almost apo- For all the rhetoric about how much York City A airs at the New School is plectic about the damage the tax bill will do to the state, taking aim at the bene ciaries of the impact of the Repub- the governor’s proposals were mod- pass-through loophole. He wants the lican tax bill on New est—primarily a new tax on insurers state to impose some sort of unincorpo- Favorable Job Ready to York. It is a “missile” and a deferral of tax credits accumu- rated business tax and the city to elim- rating approval re-elect aimed directly at the lated by corporations. He inate a personal income tax
state, he bellowed last made no mention of the much credit it provides millionaires SOURCE: Siena College Research Institute GREG DAVID week while unveiling higher pro ts that companies against the unincorporated his budget. such as Citicorp and Gold- business tax. One can expect a But while his bark is loud, his bite is man Sachs have assured their urry of other proposals. with a payroll tax and allowing chari- 103-MONTH point very cautious. e big question is how shareholders are coming soon ose ideas are more than table contributions in lieu of taxes, will the politics of the tax bill will play out as because their taxes have been rise in Cuomo’s problematic. Millionaires in take months to gure out and are not Albany seeks to close a budget de cit as slashed. Nor did he tackle the favorability New York will be just about designed to raise revenue. An enacted large as $6 billion and adjust the state’s way some New Yorkers will the only people paying higher state budget is due at the end of March. tax system to the new federal tax law. be able to recast themselves as taxes under the Republican Despite what he says, Cuomo ere is no doubt that castigat- pass-through entities to sharply reduce bill. A stock-transfer tax at the state appears to have decided that raising ing President Donald Trump and the their taxes. level is an absurd idea when stock state taxes signi cantly risks prompt- Republicans who control Washington Progressives seeking higher taxes transactions can be done electronically ing companies and the wealthy to relo- has been good for Cuomo. A Siena poll embraced the governor’s analysis all over the country. e most import- cate elsewhere. Now the governor will last week showed that his favorability but proposed much farther-reaching ant professionals here—lawyers and have to manage the expectations he has rating had jumped 10 points in the past changes. e Fiscal Policy Institute accountants—are prohibited from cre- created. ■ three months, he is the most popular called for a higher millionaires’ tax, a ating pass-through arrangements. politician in the state, and by all mea- mansion or pied-à-terre property tax e major structural changes, GREG DAVID blogs regularly at sures he is in a commanding position and the old warhorse of a stock- transfer including replacing the income tax CrainsNewYork.com.
FROM OUR READERS Energy grade criticism misses the mark THE CITY’S ENERGY LETTER environmental prior- announcement of his NO GRAVY TRAIN grade law should be ity as a city is reducing retirement quote AIG Re “Biz leaders: Let tweaked, not trashed (“A carbon emissions, then board members Frank nonunion contractors failing grade for the city’s energy letter grades are Zarb and Bernard Aidi- do subway projects” new energy-eciency an important addition to no praising Greenberg’s (CrainsNewYork.com): scoring system,” edito- the policy toolbox—and decades of service to the Contrary to views rial, Jan. 15). bene cial to consumers. company. expressed in the business Building energy Indeed, no building will Moreover, none of leaders’ letter to the scores are not new. ey want a C. at’s the point. the federal and state governor, no proj- exist all over Europe and RUSSELL UNGER litigation concerning ect labor agreements to great success in Aus- Executive director the alleged “accounting govern subway con- tralia, alongside broader Urban Green Council scandal” resulted in any struction work, and any sustainability rating ndings of fraud or con- contractor—union or systems, like LEED. We getting this right would treated the same as one AIG CHIEF’S LEGACY temporaneous awareness nonunion—can bid for should be able to learn be devilishly complex. whose lights are o by Our law rm represents by Greenberg of any subway construction from them and improve New York City buildings evening. If Energy Star Maurice R. Greenberg, inaccuracies in AIG’s projects. what New York City shouldn’t get credit for needs improvement, it who was mentioned in nancial statements. ere is a long list of implements by 2020. buying unused Texas would be a tremendous a writeup on page 11 of Finally, if you wanted contractors who have Many people have wind power at midnight. service if owners here the 2018 Crain’s Book to make the point lost money or gone out fairly questioned scoring And Energy Star, on could gure out how to of Lists. For several that Greenberg was of business at the hands ranges in which only which the grades will be make it better. reasons, we take issue irreplaceable as CEO of a Metropolitan Trans- buildings in the top 10% based, already rewards But critics miss the with the statement that of AIG, your writeup portation Authority nationally get an A and on-site green power. mark entirely in compar- “Maurice ‘Hank’ Green- could simply have said contract. It is easier to the next 40% get a B. is Speaking of Energy ing energy letter grades berg was replaced in that aer Greenberg’s believe that contractors departs from approaches Star, many sophisticated unfavorably with LEED. 2005 amid an accounting 38-year run building the on MTA projects make in many other countries, building owners ques- By design, the new letter scandal.” company from a small record pro ts rather and it likely deserves a tion the e ectiveness of grades are an energy To begin with, in insurance rm into the than to spend time second look. the complex formulas performance score, not March 2005, as part world’s largest insurance understanding the dif- We also think there’s that underlie it. But it a broad sustainability of AIG’s management company, AIG is now on culties of constructing merit to allowing build- does account for factors rating. ey are based succession plan, Green- its sixth CEO in the past anything in New York. ings to o set at least such as occupancy and on how much energy the berg retired as CEO and 12 years. DENISE M. RICHARDSON some energy consump- hours of operation. So a building is actually using, board chairman. AIG’s ROBERT DWYER Executive director tion with the purchase building that is packed not its design features March 14, 2005, 8-K Partner General Contractors of green energy. But with workers 24/7 is not (like LEED). If our and March 28, 2005, Boies Schiller Flexner Association of New York
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include the writer’s name, company, address and telephone number. Crain’s reserves the right to edit submissions for clarity. COURTESY OF THE DURST ORGANIZATION
JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 9
P009_CN_20180122.indd 9 1/19/18 2:28 PM Photo Credit: Buck Ennis THE LIST LARGEST EXECUTIVE-RECRUITING FIRMS CRAIN’S Business Breakfast Forum Ranked by number of NY area recruiters
THE SCOOP TRENDS A VIRTUAL REALITY FRONT OF THE HEAD HUNT Financial services, health care and information technology continue to lead the way as the early 24 years ago, Michael Koren took a risk and moved his most common recruiting rm specialties. Total number of rms Alphonso David executive recruiting rm’s headquarters from Midtown East Financial services to White Plains. e relocation put the Koren Rogers (No. 23) 16 Counsel to the Governor o ce closer to the company chief executive’s Westchester Health care Nhome and provided him with a better quality of life, at a cost. 13 Accounting Offi ce Governor Andrew M. Cuomo “It shortened my commute to 20 minutes and allowed me to be on the 9 ball eld at 5 o’clock to coach,” Koren said. “What I gave up was my abil- Information technology Alphonso David, counsel to the governor and a longtime member of his ity to easily hire successful recruiters. In the 1990s many top-producing 9 Pharmaceuticals and life sciences inner circle, will discuss the Cuomo administration budget, legislative recruiters felt that they needed to work in New York City to continue to 9 be successful.” Human resources and regulatory priorities for 2018. e struggle to draw recruiters from the bustling city to the quiet 8 suburbs made it di cult for Koren to grow his business. But two years Retail and consumer 8 ago, he was referred to an esteemed recruiter working out of Atlanta who Technology became the rst of a wave of remote sta members brought under the 7 REGISTERTODAY Koren Rogers umbrella. e rm has hired 15 of the “virtual” recruit- Nonpro ts crainsnewyork.com/events-adavid ers to date, each of whom check in with Koren and their supervisors 6 0510 15 20 throughout the workday via phone and Skype from across the country. Having recruiters work remotely to place job candidates rather than from Wednesday, February 14, 2018 For event information: STEADY GROWTH AT KOREN ROGERS Cost» to Attend: « a central o ce has signi cantly cut Koren’s costs, and his employees have prospered. The New York Athletic Club Ashlee Schuppius % The No. 23 rm has added, on average, about % $159 for individual ticket(s) “Everyone’s gotten a good bump in compensation because our xed two recruiters to its staff in each of the past 180 Central Park South $1,590 for table(s) of 10 guests 212-210-0739 costs are so much lower,” he said. “Without the additional burden of four years. [email protected] leases, cable wiring and desks, it costs me very little to hire people. I don’t 8 Total recruiters at the rm 9 8:00a.m. – 8:30a.m. Registration You must be pre-registered to attend this event. GROWTH IN GROWTH IN No refunds permitted. think I would’ve had the courage to take on real estate leases for millions 45 and Networking Breakfast of dollars.” the number of 41 the number of New York–area U.S. recruiters Although the o ce is no longer fundamental to the Koren Rogers 8:30a.m. – 9:30a.m. Program recruiters employed by operation, it is still important, Koren said, explaining that he cannot see 40 employed by the top rms* himself working from home every day. Plus, sta members in the White Sponsored by: the top rms* Plains o ce have bene ted from the presence of the virtual recruiters on the roster. 35 CR “ e people in New York have also been inspired by what has grown outside of New York,” Koren said. “ ey hear the excitement in my voice 30 and they feel like the company is back on a growth trajectory.” 2013 2014 2015 2016 2017 Photo Credit: Buck Ennis — GERALD SCHIFMAN *Among the companies that provided 2016 and 2017 data SOURCE: Crain’s research CRAIN’S Business Breakfast Forum
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REGISTERTODAY / crainsnewyork.com events-rcotton Tuesday, February 27, 2018 Cost» to Attend: For event information:« The New York Athletic Club $159 for individual ticket(s) Ashlee Schuppius 212-210-0739 180 Central Park South $1,590 for table(s) of 10 guests [email protected] 8:00a.m. – 8:30a.m. Registration You must be pre-registered to attend this event. No refunds permitted. and Networking Breakfast 8:30a.m. – 9:30a.m. Program
CONTINUED ON PAGE 12 Sponsored by: 10 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P010_P012_CN_20180122.indd 10 1/19/2018 2:36:39 PM CN081529.indd 1 1/18/18 12:55 PM
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Alphonso David Counsel to the Governor Offi ce Governor Andrew M. Cuomo Alphonso David, counsel to the governor and a longtime member of his inner circle, will discuss the Cuomo administration budget, legislative and regulatory priorities for 2018. REGISTERTODAY crainsnewyork.com/events-adavid
Wednesday, February 14, 2018 Cost» to Attend: For event information:« The New York Athletic Club $159 for individual ticket(s) Ashlee Schuppius 180 Central Park South $1,590 for table(s) of 10 guests 212-210-0739 [email protected] 8:00a.m. – 8:30a.m. Registration You must be pre-registered to attend this event. and Networking Breakfast No refunds permitted. 8:30a.m. – 9:30a.m. Program
Sponsored by: CR
Photo Credit: Buck Ennis CRAIN’S Business Breakfast Forum
Rick Cotton Executive Director, Port Authority of NY & NJ He will discuss the Port Authority’s three major airports, plans for a new bus terminal and other infrastructure priorities. REGISTERTODAY crainsnewyork.com/events-rcotton
Tuesday, February 27, 2018 Cost» to Attend: For event information:« The New York Athletic Club $159 for individual ticket(s) Ashlee Schuppius 180 Central Park South $1,590 for table(s) of 10 guests 212-210-0739 [email protected] 8:00a.m. – 8:30a.m. Registration You must be pre-registered to attend this event. and Networking Breakfast No refunds permitted. 8:30a.m. – 9:30a.m. Program
Sponsored by:
CN081529.indd 1 1/18/18 12:55 PM
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THE LIST LARGEST EXECUTIVE-RECRUITING FIRMS
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FOR ALL CRAIN’S LISTS, GO TO CRAINSNEWYORK.COM/LISTS.
12 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P010_P012_CN_20180122.indd 12 1/19/18 2:42 PM REAL ESTATE | MAKING IT IN RED HOOK
ADVOCATES such as Salguero want to reconnect New Yorkers with working waterways. WORKING As pressure to redevelop Red Hook intensi es, industrial business owners are ghting to keep it THE safe for manufacturing BY TYLER J. KELLEY WATERFRONT hen engineering rm AECOM proposed last year to redevelop Red Hook into a neigh- borhood of high-rises connected to Manhattan by a new subway line, John Quadrozzi Jr. noticed a glaring omission: his business. “I was dumbfounded,” said Quadrozzi, president of Gowanus Bay Terminal (GBX), near the mouth of the Gowanus Canal. “How do you color over somebody’s property without ever even speaking to them?” WAlthough AECOM’s proposal remains just an idea, the omission symbolized the plight of Quadrozzi and other business owners operating on southwest Brooklyn’s industrial waterfront. With demand rising for housing and other amenities, developers, politicians and the public might be content to erase them.
Almost all of Red Hook’s waterfront is still zoned for manufacturing, but many key parcels are no lon- BUCK ENNIS
13 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018 JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 13
P013_P015_CN_20180122.indd 13 1/19/18 4:01 PM REAL ESTATE | MAKING IT IN RED HOOK
ger used industrially. Fairway and be a dry dock where ships were built Ikea are the biggest examples. But and repaired. Beyond that, a gleam- for some residents, the arrival of a ing oce complex is set to rise where nearby private school, also built on the Revere Sugar Renery used to an industrial site, represented a tip- stand. Next door, a Civil War–era ping point for the neighborhood. pier and warehouse now house artist e changes in Red Hook mirror studios, galleries, a co ee roaster and those citywide. Between 2002 and the Fairway grocery store with apart- 2012, manufacturing zones across ments above. the city shrank by 5.2%, or 1,100 acres, according to the Depart- Dotting the IBZs ment of City Planning. e most DIMARINO came to Red Under Mayor Michael Bloomberg, substantial reduction occurred in Hook from Gowanus the city created industrial business to avoid clashes with Brooklyn, where approximately neighbors. zones (IBZs). ey were intended 360 acres zoned for manufacturing “to protect existing manufacturing have been lost, a decline of 8.2%. districts and encourage industrial ese numbers don’t re ect special growth,” according to a city web- permits or zoning variances, which site. In practice, an IBZ “is just an allow owners to change the use of administrative designation with a property, say, from a dry dock to no actual zoning protection,” said a furniture store, without altering Ben Margolis, executive director of the underlying zoning. As a result, the Southwest Brooklyn Industrial many industrial areas are shrinking Development Corp. “It’s just one or in piecemeal and ad hoc fashion, two incentives, a sort of promise.” reduced through attrition and apa- But it’s a promise the city does not thy, not planning. always keep, as many special permits e Department of City Plan- and variances have been granted ning says the loss of manufacturing allowing nonindustrial uses within zones has slowed under Mayor Bill IBZs and other manufacturing zones. de Blasio, but the trend seems irre- For Margolis, the Whole Foods Mar- versible without a major shi in the ket on ird Street in Gowanus is city’s approach to industrial areas. one leading example because it was “ e return on investment is so built on an M2-zoned lot, which much higher for residential,” said “PEOPLE MOVE INTO INDUSTRIAL the Department of City Planning Craig Hammerman, former district NEIGHBORHOODS BECAUSE THEY’RE describes as “the middle ground manager of Brooklyn Community between light and heavy industrial Board 6, which includes the Red ‘COOL.’ YOU CAN’T PRESERVE areas.” Now Margolis is ghting pro- Hook waterfront. “If you le it up to posals to rezone large swaths of land the free market, you wouldn’t have THE LOOK IF YOU DON’T PRESERVE adjacent to IBZs in Gowanus and any manufacturing le in the city.” THE BUSINESSES” Sunset Park. Quadrozzi’s challenge is that From the inception of the south- most New Yorkers don’t realize west Brooklyn IBZ, two proper- that essential goods like heating ties—Fairway and the former sugar oil and rock salt come from terminals on Gowanus Loujaine into an open barge. At the end of the arm, renery—were exempted. e re nery site juts into Bay, a pier-strewn inlet between Sunset Park and a nozzlelike screw conveyor transported the slag up, Erie Basin, the home port for about 200 vessels. Red Hook. Slag, stone, fuel and aggregate are not over and into one of the ship’s holds. A man with a Two barge companies, Reinauer Transportation and compelling topics, and their purveyors are at a dis- joystick stood at the rail, moving the arm in parallel Hughes Bros., own and operate the facility. For a advantage because, unlike Fairway and Ikea, they arcs through the powdery white material. It would time the renery’s owner wanted to build housing don’t deal directly with the public. Quadrozzi said take less than 24 hours to move all 5,500 tons of slag on the site. “ at would have been a disaster for us,” if he can’t teach Brooklynites to appreciate the bulk onto the ship. said Bob Hughes, vice president of Hughes Bros. and commodities that keep New York running, his “It’s beautiful stu to me,” Quadrozzi said, as slag the h generation of his family to run barges. business—and by extension the borough’s working settled on his eyebrows. People may think it’s quaint to reside next to waterfront—won’t survive. e GBX property was created in 1920 when the marine facilities, Hughes said, until a tugboat shines state lled in a marsh to build a port where grain its spotlight through their window and sounds its Selling making that had come down the Erie Canal could be loaded hailer at 3 a.m. A er living with that for a while, To win the hearts and minds of New Yorkers, onto oceangoing ships. e Port Authority acquired residents are apt to change their mind and le a Quadrozzi has cra ed models and renderings of his the site in 1945 and continued to ll it in, but within nuisance suit, and Hughes would not blame them. waterfront vision in a mobile building just inside the 20 years, the elevators stopped running, as grain Housing just isn’t compatible with heavy industry, GBX gates. He imagines a “grandiose” ship or his- increasingly moved along inland rivers and by rail. he said, and when residents turn against their indus- toric boat oating beside the Columbia Street Espla- In 1997 Quadrozzi formed Gowanus Industrial Park trial neighbors, even if the companies were there nade, welcoming visitors with tours and classrooms to purchase the site, which included 13 acres of land rst, there’s not much someone like Hughes can do. devoted to maritime industry. e current vessel and 33 acres of underwater property. It begins with complaints and citations from the city. for Quadrozzi’s plans is a retired FDNY boat that In addition to the slag business, Quadrozzi also e business may then agree to curtail activities— recently was moved to the esplanade. rents out the pier and grain elevator for movie perhaps just working 9 to 5. Eventually, it just moves Although Quadrozzi’s public relations project shoots and as a backdrop for concerts and theat- away, something Hughes has seen happen to many has yet to be realized, the work it plans to celebrate rical events. One performance, titled Picture Red marine operators in Jersey City and Baltimore. proceeds apace. On a daily basis at GBX, concrete Hook, had dancers hanging o the silos from cables. Mike DiMarino, owner of Linda Tool, moved his is crushed, fuel barges are docked and dispatched At the moment, Quadrozzi said, about 60% of the precision machining business to Red Hook in 2004, out to sea via tugboat, and road salt and powdered property’s revenue comes from land use, such as a er 45 years on ird Avenue and Carroll Street in slag—a byproduct of the steel manufacturing pro- shipping-container, bus and truck parking; 10% Gowanus. On Carroll Street, he said, the old neigh- cess that can be used in place of cement—is loaded comes from entertainment-related ventures; and bors were accustomed to sharing the area with light and unloaded. 30% from maritime users. manufacturing. en the neighborhood began to Quadrozzi was on hand one cloudy a ernoon Climbing the metal staircases up to the Loujaine’s change. “One day, I saw a young woman with a kid to supervise the removal of a bargeload of slag into top stern deck, Quadrozzi gazed landward. From in a stroller and holding a little girl by the hand,” he the M/V Loujaine, a 500-foot bulk freighter that has this vantage point, the changes in the surrounding said. “I had my forkli on the sidewalk, moving bars crossed its last ocean and now serves as a oating industrial landscape were starkly visible. Across of steel. I said, ‘You know what, if this kid trips on a cement silo. Columbia Street from GBX, a cement plant was bar, I’ve got to lock the door and keep on going—I’m
BUCK ENNIS A giant articulated arm reached from the skylighted by the blue bulk of Ikea, which used to done.’ ” Not waiting for complaints, violations or
14 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P013_P015_CN_20180122.indd 14 1/19/18 4:16 PM Wage distribution by industry for Less than $30K high school grads/GED holders $30K–$70K litigation, he purchased an M1-zoned building in “but o en the job quality is nowhere near what it More than $70K the Southwest Brooklyn IBZ. is for manufacturing.” Currently, he said, the laws “People move into the industrial neighborhoods protecting industrial zones are “very weak.” It is too 11% 7% because they are ‘cool’ and then want to change them easy to evade the intent of IBZs. “Naming it a manu- 32% 23% to suit their needs,” DiMarino said. “You can’t pre- facturing zone” Friedman said, “doesn’t mean that’s 22% serve the look if you don’t preserve the businesses.” how it’s being used.” In the absence of strong gov- DiMarino hopes that cafés, strollers and cyclists ernmental protections, the real estate market is the don’t push his operation out of Red Hook. Sure, he de facto authority and it will continue to favor ten- would probably make more money selling or rent- ants and buyers who can pay top dollar over those ing to a beer garden or a CVS, but he is proud to that provide more and better jobs. 42% o er 28 well-paying jobs out of his relatively small building. He argues that manufacturing jobs are Blending in 67% 70% demonstrably better than the service jobs that o en Unlike Quadrozzi, DiMarino tries to go unno- replace them, and create more jobs per square foot. ticed in his new building. “People don’t even know Many of DiMarino’s employees have been with him what goes on in here,” he said. He has no plans to 26% for decades; they have raised children and saved leave Red Hook, even though increasing pedestrian for retirement. and bicycle trac has made it harder to truck prod- Manufacturing Retail Entertainment, A recent study from the Pratt Center for Commu- ucts and materials in and out of the neighborhood. hospitality, nity Development compared the average incomes Cyclists have plenty of space to ride, he said, without food service of families employed in manufacturing with those risking their lives and disrupting work in a desig- SOURCE: Pratt Center for Community Development employed in retail. e study constructed two hypo- nated IBZ. thetical families, one living on the average yearly To the north of GBX, only a ball eld stands manufacturing wage ($50,934) and another living between the terminal walls and Basis Independent was vacant, Hammerman contended that it had the on the average retail wage ($25,416). It found that Brooklyn, a private school that opened in 2015, built potential to provide good jobs for many residents. the industrial-income household could a ord to on a vacant lot within the IBZ that had been zoned “You can build a school anywhere,” he said. But spend about $1,231 per month on rent, whereas M1 for light industrial use. Traditionally M1 zones manufacturing cannot go anywhere other than a the “retail and other neighborhood services income act as bu ers between commercial and residential speci cally zoned area. household” could a ord only $593 per month in areas and heavy-industrial M3 zones. Schools can be e industrialists say the school has created traf- rent. e study concludes that the city would have built in these areas with a special permit, which the c that impedes their business while putting stu- to spend signi cantly more on a retail family to pro- Basis developer obtained despite opposition from dents in danger. But Hadley Ruggles, the head of vide them with a ordable housing and that the city Brooklyn Community Board 6, residents and some the school, said Basis “goes to great lengths to have should do more to protect higher wage manufactur- local business owners including Quadrozzi. e a minimal impact.” As for concerns that the school ing jobs from being displaced by lower-paying retail city’s Board of Standards and Appeals determined could someday pressure manufacturers to relocate, jobs. But city policy still tends to promote retail that it was the only site where Basis could nd a suit- Ruggles said the nearby industrial businesses are and residential development while doing little to ably large and a ordable property in proximity to its “the most innocuous neighbors I could imagine.” encourage manufacturing. target students. Across Red Hook, in Atlantic Basin, Carolina Sal- “ e problem today is conversion of indus- e community board’s opposition to the school’s guero sees a connection between the anti-industry trial space to other uses, whether it’s hotels, or special permit was based on two factors, said former pressure Hughes fears and the kind of public out- self-storage or entertainment,” said Adam Fried- district manager Hammerman. e rst was safety reach Quadrozzi is interested in. She is the founder man, executive director of the Pratt Center. ese and trac. e second was losing property that could of PortSide New York, which operates out of a retired interests can a ord to pay more for space, he said, have been used for manufacturing. ough the site tanker named the Mary Whalen. PortSide has been working to connect the public to the waterfront for 12 years. When it comes to the city’s shoreline, misinformation abounds, Salguero said. e most damaging is the widely held belief that the working waterfront is dead. Part of the problem, she said, is that most people from neighborhoods like Red Hook don’t work on the water anymore. Kids don’t grow up visiting their parents at the docks. e business owners are also at fault, she said. ey build fences to keep people out and don’t encourage visitors. KEEPING MANUFACTURING To break down this physical and cultural barrier, in the ve boroughs is PortSide strives to explain the working waterfront key to the city’s economy, Quadrozzi says. to the public. Adults and children alike are excited to watch boats, cranes and containers move, Sal- guero said, but without interpretation—coming from PortSide or Quadrozzi’s outreach project, for example—people don’t know how these things a ect their lives. “ ere’s a system that people don’t appreciate,” Quadrozzi said, “an infrastructure that works all around them.” But it might not be here for much longer. Ele- ments of AECOM’s Red Hook redesign proposal were echoed by Gov. Andrew Cuomo in his State of the State speech Jan. 2 (see “Shipping Out,” page 16). Without government support or stronger zoning protections, industry will be pushed out to where land is a ordable. en, to get those same goods into the city, more trucks will have to travel farther, increasing congestion, pollution and prices. Quadrozzi estimates the value of his property has gone up tenfold since he bought it. “If I had no choice,” he said, “I could do the same thing that the rest of the guys do”—get the zoning changed and redevelop or sell the lot. “It would just be a matter of necessity.” ■
JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 15
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P016_P017_CN_20180122.indd 16 LOSING THE (inset), thefacility’s operator. to thecity,” saidStamatis would bea“detriment Container Terminal
BUCK ENNIS 16 REAL ESTATE |
CRAIN’S NEWYORKBUSINESS RedHook SHIPPING SHIPPING
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WATERFRONT
clinging to asite coveted Brooklyn’s is last port BY DANIEL GEIGER
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OUT J ANUARY 22,2018 by developers M and say closing Hook Red the would terminal likely with container operations such amove call unrealistic Sunset Park should examined. be But familiar those many Cuomo boosters, said its relocation to nearby ning and at design Regional Plan the Association. play,” said Moses Gates, director of community plan - terminal’s “ e ects. development is denitely in generate billions the for needed a host of megaproj- agency hundredsthe of millions of dollars, yet could on astretchnally focused of waterfront that has cost should become of site. the But it is clear that he is - ty’s New York properties, stopped short of saying what most of terminal, the to explore moving facility. the about 100acres of Hook Red waterfront, including Authority of New York and New Jersey, owns which monththis Gov. Andrew Cuomo on Port the called tections and asubway—is now on table. the Earlier entire pro parkland, neighborhoodwith new ood - potentially of as part adramatic makeover of the to it, preserve redevelopment of Hook Red the site— would adetriment be to city.” the operation is gone, you’ll never get it back—and that havethey astrong interest site. in the But once this Container Terminal. that Stamatis controls as operator of Hook Red the Perhaps to o head criticism from facility’s the e governor, e ectively who controls authori the - o cials elected haveWhile local fought for years “It’s developers,” the Stamatis said. “It’s no secret acres of prime Brooklyn waterfront Hamptons. hover ese over 80 the or shuttling Wall Streeters to the helicopters. sees Stamatis ichael Not sightseers ones the carrying noting agency’s the complex accounting methods. likely hotly be debated too,” said former the sta er, a remarkably hard number to gure out, and it would that coming to adenitive estimate was di cult.“It’s $424 million from 2001to 2016. even more accelerated, with agency losing the about obtained by Crain’s at request the of Crain’s 1991 to authority’s 2016,the comptroller calculated together lost Port the Authority $518million from just northof Brooklyn the it Marine called Terminal industry. end the ofspell what was once Brooklyn’s signature A former sta member at Port the Authority said Hook e Red Container Terminal and two piers suggest may losses the have been . Other nancial. Other documents 1/19/18 4:29 PM “Whatever it is, it’s a lot of money.” operation in Brooklyn, and it’s insane.” modate larger vessels and rebuilding its dilapidated Red Hook’s cost is small, though, relative to the e industry has shi ed to large-volume facilities, dock. Experts say the cost would be a multiple of the Port Authority’s roughly $3 billion annual operating a trend likely to accelerate in the coming years with $39 million the city announced last year that it would budget or its 10-year, $32 billion capital plan. But its the introduction of some of the largest vessels ever spend to upgrade the facility. Unlike Red Hook, the value as a development site is substantial. According built. ey can carry 14,000 or more containers and site has access to freight rail, but a facility there would to an internal Port Authority memo in 2015, a mar- are so massive that the Panama Canal was widened at be roughly the same size, limiting its potential. ket study by consulting rm HR&A Advisors found a cost of more than $5 billion to accommodate them. “ ey would have to spend a tremendous amount Red Hook’s working waterfront—100 acres of which To make its Port Elizabeth and Port Newark facilities of money on improvements, easily over $100 million,” is owned by the Port Authority, the other 20 by the accessible to these ships, which can be 1,200 feet long said Lou Pernice, the president of the International city—would fetch as much as $2.7 billion if rezoned and 200 feet tall, the Port Authority just spent $1.7 Longshoremen’s Association Local 1814, which has to allow thousands of apartments with sweeping billion to li the Bayonne Bridge’s roadway 64 feet. about 200 members working at the Red Hook termi- views of Lower Manhattan, New York Harbor and the Boats of such size cannot park in Brooklyn, and nal. “ ese are grand plans, but where is the money Statue of Liberty. ports as small as Red Hook’s cannot ourish in an going to come from?” With the agency struggling to fund a $10 billion increasingly low-margin business, where pro ts are bus terminal on the West Side, an $11 billion redevel- eked out by handling huge quantities of goods. e Seeking other sources opment of John F. Kennedy International Airport and nation’s busiest container ports, the Port of Los Ange- Perhaps grasping the costs and limitations of a pay nearly $3 billion for the Gateway tunnel project’s les and the adjacent Port of Long Beach, which are the container operation on the site, the city, which con- rst phase, optimizing its real estate holdings—espe- main depots for U.S. trade with China, together are trols the South Brooklyn Marine Terminal, has for cially unpro table assets—has gained urgency. 7,500 acres and handle 15 million or more containers months been in talks with several groups to use it for “It is widely recognized that the Port Authority annually. lighter-duty maritime purposes, sources said. should return to its core mission of transportation,” “If you look around North America, you see al- A partnership between Stamatis and Industry said Scott Rechler, a former Cuo- City, the creative-oce complex mo-appointed vice chairman at the next to the terminal, has submitted agency. “ e reality is that Red Hook “RED HOOK WILL NEVER BE THE KIND a bid to make it a barge depot to re- will never return to the kind of con- ceive goods from containers at New tainer terminal that it was during its OF CONTAINER TERMINAL IT WAS IN ITS Jersey’s ports and oated to Brook- heyday. e Port Authority should HEYDAY. THE PORT AUTHORITY SHOULD lyn. Neither Stamatis nor Industry shed this money-losing asset, and City ocials would comment on the site should be monetized.” SHED THIS MONEY-LOSING ASSET, AND the proposal. Another operator has o ered to use the marine terminal Behind the times THE SITE SHOULD BE MONETIZED” to ship scrap metal, also by barge, a Red Hook’s obsolescence as a source said. shipping hub stems from changes in “Brooklyn’s future is not contain- the maritime industry. Chief among its problems is most no niche container ports anymore,” said Sam er operations but in ecient barging that connects that, at 80 acres, it cannot accommodate more than Ruda, deputy director of the Port Authority’s ports to trucks that service markets east of the Hudson,” 150,000 containers—the 20-foot-long, stackable met- department. “It’s an industry that’s characterized by said Chris Ward, a senior vice president at AECOM, al encasements that hold virtually all goods shipped scale. And to operate a container terminal you have which is advising Stamatis and Industry City in its bid by sea—annually. e terminal has not even attracted huge sunken costs like equipment, labor and capital for the marine terminal site. enough vessels to reach that number, handling about expenses before you even move the rst box. To make If the city leases the Sunset Park site to such users, 100,000 last year, according to the Port Authority. it all pencil out, you need a lot of volume.” it would put Cuomo, who has feuded with Mayor Bill e agency’s four ports in New Jersey move Against the backdrop of a such a competitive mar- de Blasio on a host of issues for years, in a tricky po- roughly 6 million annually, bene ting from their ket, Cuomo’s suggestion to relocate the Red Hook sition. Rep. Jerrold Nadler, a longtime champion of more than 2,000 acres of space and privately owned facility to Sunset Park’s South Brooklyn Marine Ter- Brooklyn’s maritime industry and of moving freight maritime and storage facilities nearby. minal makes no more sense than maintaining the by water and rail, said he would vigorously oppose “All the serious port activity is in New Jersey,” the current operation. A terminal at Sunset Park would closure of the Red Hook Container Terminal unless former sta member said. “We have tried to maintain require installing nearly 100-foot-tall cranes to hoist a similar facility were rst developed in Sunset Park. this ction that we can have a major container-ship 27-ton containers, dredging the shoreline to accom- “Once you get a container port functioning in Sunset Park, at that point, but not before, you can shut the port in Red Hook,” Nadler said. “You can’t have a hiatus of two or ve or 10 years, because you’ll lose the business.” Nadler has no ocial say in the matter, but he is a political force who can steer federal transportation funds to New York. Any project involving the Red NEW VISION: Ward and Hook piers, which are in the West Side Democrat’s AECOM have big plans on two-borough district, would be far easier with him on the waterfront. board. Stamatis’ partner in the Red Hook Container Terminal, the Brayman family, has donated liberally to Nadler’s campaign funds over the years. Stamatis’ Red Hook Container Terminal LLC has operated the facility since 2011 and earns $2.75 mil- lion per year in management fees from the Port Au- thority. He insisted the terminal is on the verge of a nancial turnaround. Its Port Authority subsidy has been reduced in recent years, he said, and is expect- ed to fall to $1 million this year, its lowest point in decades. With vehicular trac worsening, Stamatis said, the city’s waterways will become increasingly vi- tal, allowing the terminal to charge fees sucient to make a pro t or at least break even. Already, he said, it takes about 30,000 trucks a year o the roads. “You have to look at the bigger picture,” Stama- tis said. “One of the main threats to our economic growth is congestion. We’ve been moving goods on the water for years, and as the need continues to rise and we’re able to pass the costs on to users, we be- lieve container operations will become commercially viable.” ■
JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 17
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SSNY desig- nated as agent of LLC upon whom proc- Notice of Qualification of ELEVEN RISK Notice of Qualification of VBG 990 AOA NOTICE OF FORMATION OF Cannon Advi- ess against it may be served. SSNY SOLUTIONS, LLC Appl. for Auth. filed MEMBER LLC Appl. for Auth. filed with sory, LLC. Arts of Org filed with the shall mail process to the LLC at the with Secy. of State of NY (SSNY) on Secy. of State of NY (SSNY) on Secy. of State of NY (SSNY) on addr. of its princ. office. Purpose: Any 11/20/17. Office location: NY County. 01/09/18. Office location: NY County. 11/1/17. Office loc: NY County. lawful activity. LLC formed in Texas (TX) on LLC formed in Delaware (DE) on SSNY has been designated as agent 03/27/17. Princ. office of LLC: 8101 12/01/17. SSNY designated as agent upon whom process against it may be Notice of Qualification of MIC CAPITAL Viola Ave., Lubbock, TX 79424. SSNY of LLC upon whom process against it served and shall mail copy of process PARTNERS (US) LLC Appl. for Auth. designated as agent of LLC upon whom may be served. SSNY shall mail proc- against LLC to US Corp. Agents, Inc filed with Secy. of State of NY (SSNY) process against it may be served. ess to c/o Corporation Service Co., 80 7014 13th Ave., #202, BK, NY 11228. on 12/20/17. Office location: NY Coun- SSNY shall mail process to c/o Corpo- State St., Albany, NY 12207-2543. DE Purpose: any lawful act. ty. LLC formed in Delaware (DE) on ration Service Co., 80 State St., Alba- addr. of LLC: 251 Little Falls Dr., Wil- 11/09/17. SSNY designated as agent ny, NY 12207-2543. Cert. of Form. filed with TX Secy. of State, Rolando mington, DE 19808. Cert. of Form. filed Notice of Qualification of venBio Se- of LLC upon whom process against it Pablos, 1019 Brazos St., Austin, TX with DE Secy. of State, Div. of Corps., lect Advisor LLC Appl. for Auth. filed may be served. SSNY shall mail proc- 78701. Purpose: Any lawful activity John G. Townsend Bldg., 401 Federal with Secy. of State of NY (SSNY) on ess to c/o Akin Gump Strauss Hauer & St. - Ste. 4, Dover, DE 19901. Pur- 11/22/17. Office location: NY County. Feld LLP, One Bryant Park, NY, NY pose: Any lawful activity. LLC formed in Delaware (DE) on 10036. DE addr. of LLC: c/o Corpora- 09/24/09. SSNY designated as agent tion Services Co., 251 Little Falls Dr., Notice of Qualification of VILLAGE APTS of LLC upon whom process against it Wilmington, DE 19808. Cert. of Form. 4DS LLC Appl. for Auth. filed with Secy. may be served. SSNY shall mail proc- filed with Secy. of State of DE, Dept. of of State of NY (SSNY) on 09/27/17. Of- ess to the LLC, 120 W. 45th St., Ste. State, Div. of Corps., John Townsend fice location: NY County. LLC formed in 2802, NY, NY 10036. DE addr. of Bldg., Dover, DE 19901. Purpose: Any Delaware (DE) on 09/20/17. SSNY LLC: Corporation Service Co., 251 Lit- lawful activity. designated as agent of LLC upon whom tle Falls Dr., Wilmington, DE 19808. process against it may be served. Cert. of Form. filed with Secy. of Notice of Qualification of venBio Select SSNY shall mail process to c/o Gibson, State, State of DE, Dept. of State, Advisor L.P. Appl. for Auth. filed with Dunn & Crutcher LLP, Attn: Steven Townsend Bldg., Dover, DE 19901. Secy. of State of NY (SSNY) on Klein, 200 Park Ave., NY, NY 10166. Purpose: Any lawful activity. 11/22/17. Office location: NY County. DE addr. of LLC: Corporation Service LP formed in Delaware (DE) on Co., 251 Little Falls Dr., Wilmington, 12/29/16. NYS fictitious name: venBio DE 19808. Cert. of Form. filed with NOTICE OF FORMATION OF Gregory Tau Select Advisor New York L.P. Duration Secy. of State of DE, Div. of Corps., M.D., Ph.D., PLLC.Articles of Organiza- of LP is Perpetual. SSNY designated as John G. Townsend Bldg., 401 Federal tion filed with the Secretary of State of agent of LP upon whom process St., Dover, DE 19901. Purpose: Any NY (SSNY) on 10/25/2017. Office loca- against it may be served. SSNY shall lawful activity. tion: New York County. SSNY has been mail process to the Partnership, 120 designated as agent upon whom proc- W. 45th St., Ste. 2802, NY, NY 10036. DNY INTERNATIONAL, LLC. Art. of Org. ess against it may be served. The Post Name and addr. of each general part- filed with the SSNY on 09/12/17. Of- Office address to which the SSNY shall ner are available from SSNY. DE addr. fice: New York County. SSNY designat- mail a copy of any process against the of LP: Corporation Service Co., 251 Lit- ed as agent of the LLC upon whom PLLC served upon him/her is: 345 7th tle Falls Dr., Wilmington, DE 19808. process against it may be served. Avenue Suite 1601-i, New York, NY Cert. of LP filed with Secy. of State, SSNY shall mail copy of process to the 10001. The principal business address State of DE, Dept. of State, Townsend LLC, 235 E88th st., #3C, New York, NY of the PLLC is 345 7th Avenue Suite Bldg., Dover, DE 19901. Purpose: Any 10128. Purpose: Any Lawful purpose. 1601-i, New York, NY 10001. lawful activity.
18 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P018-19_CN_20180122.indd 18 1/18/2018 4:33:04 PM TO PLACE A CLASSIFIED AD, CALL 1 212-210-0189 OR EMAIL [email protected]
PUBLIC & LEGAL NOTICES
NOTICE OF FORMATION of Fresh Har- KATHERINE BURGHARDT KRAMER LAW Notice of Qualification of EMERGING Notice of Formation of CS 771 Ninth vest Valley, LLC. Articles of Organiza- OFFICE PLLC. App. for Auth. filed with VARIANT CAPITAL MANAGEMENT, LP LLC. Arts. of Org. filed with Secy. of tion filed with Secretary of State of New the SSNY on 12/01/17. Originally filed Appl. for Auth. filed with Secy. of State State of NY (SSNY) on 1/4/18. Office York (SSNY) on 12/26/2017. Office lo- with the Secretary of State of Vermont of NY (SSNY) on 11/09/17. Office loca- location: NY County. SSNY designated cation: New York County. SSNY desig- on 11/04/2016. Office: New York tion: NY County. LP formed in Delaware as agent of LLC upon whom process nated agent upon whom process may County. SSNY designated as agent of (DE) on 11/08/17. Princ. office of LP: against it may be served. SSNY shall be served and shall mail copy of proc- the PLLC upon whom process against it Attn: Santiago Jariton, 3 Columbus Cir- mail process to: c/o The LLC, 134 W. ess against LLC to its designated regis- may be served. SSNY shall mail copy of cle, 15th Fl., NY, NY 10019. Duration 29th St., 4th Fl., NY, NY 10001. Pur- tered agent: United States Corporation process to the PLLC, 79 Court Street, of LP is Perpetual. SSNY designated as pose: any lawful activity. Agents, Inc., 7014 13th Ave., #202, Suite 3, Middlebury, VT 05753. Pur- agent of LP upon whom process Brooklyn, NY 11228. Principal Busi- pose: For the practice of the profession against it may be served. SSNY shall Notice of Qualification of NEW APO ness address: 447 Broadway, 2nd of Law. mail process to the Partnership at the NYC OWNER, LLC Appl. for Auth. filed Floor, New York, NY 10013. Purpose: princ. office of the LP. Name and addr. with Secy. of State of NY (SSNY) on any lawful act. of each general partner are available 12/21/17. Office location: NY County. Notice of formation of limited liability from SSNY. DE addr. of LP: c/o Corpo- LLC formed in Delaware (DE) on company. Name: Park & Lex Brand, ration Service Co., 251 Little Falls Dr., 12/04/17. SSNY designated as agent Notice of formation of Dean Fine Build- LLC. Articles of Organization were filed Wilmington, DE 19808. Cert. of LP filed of LLC upon whom process against it ing LLC. Arts of Org filed with Secy. of with the Secretary of State of New York with Secy. of State of the State of DE, may be served. SSNY shall mail proc- State of NY (SSNY) on 11/8/17. Office (SSNY) on 11/15/2017.Office loca- Div. of Corps., John G. Townsend Bldg., ess to c/o Corporation Service Co., location: NY County. SSNY designated tion: New York County. SSNY has been Federal & Duke of York Sts., Dover, DE 80 State St., Albany, NY 12207-2543. agent upon whom process may be designated as agent of the LLC upon 19901. Purpose: Any lawful activity. DE addr. of LLC: 251 Little Falls Dr., served and shall mail copy of process whom process against it may be Wilmington, DE 19808. Cert. of Form. against LLC to principal business ad- served. SSNY shall Mail a copy of proc- filed with Secy. of State of the State dress: 12 E 49th St., 11th Fl., NY, NY ess to the LLC, 1050 Park Ave, New Notice of Formation of LARK WADS- of DE, John G. Townsend Bldg., 401 10017. Purpose: any lawful act. York NY 10028. Purpose: for any lawful WORTH, LLC Arts. of Org. filed with Federal St., Ste. 4, Dover, DE 19901. activity. Secy. of State of NY (SSNY) on Purpose: Any lawful activity. 12/18/17. Office location: NY County. GREEK MANAGEMENT LLC. Arts. of Princ. office of LLC: 90 Park Ave., NY, Org. filed with the SSNY on 10/13/17. Omit, LLC Art. Of Org. Filed Sec. of NY 10016. SSNY designated as agent WATER 8388 LLC. Arts. of Org. filed Office: New York County. SSNY desig- State of NY 9/28/2017. Off. Loc.: Rich- of LLC upon whom process against it with the SSNY on 11/29/17. Office: nated as agent of the LLC upon whom mond Co. SSNY designated as agent may be served. SSNY shall mail proc- NewYork County. SSNY designated as process against it may be served. upon whom process against it may be ess to Corporation Service Co., 80 agent of the LLC upon whom process SSNY shall mail copy of process to the served. SSNY to mail copy of State St., Albany, NY 12207-2543, against it may be served. SSNY shall LLC, 529 Fifth Avenue, New York, NY process to The LLC, 248 London Rd, regd. agent upon whom and at which mail copy of process to the LLC, 3 Co- 10017. Purpose: Any lawful purpose. Staten Island, NY 10306. Purpose: Any process may be served. Purpose: Any lumbus Circle,New York, NY 10019. lawful act or activity lawful activity. Purpose: Any lawful purpose. Notice of formation of Bethel Road LLC Arts. of Org. filed with the NY Sect’y of NOTICE OF FORMATION of Cort Coco- NOTICE OF FORMATION of Cort Eagle, M & S LEAGEM LLC. Arts. of Org. filed State (SSNY) on 11/1/2017. Office lo- nut, LLC. Arts of Org filed with Secy. Of LLC. Arts of Org filed with Secy. Of with the SSNY on 11/03/17. Office: cated in NY County. SSNY has State of NY (SSNY) on 11/21/17. Of- State of NY (SSNY) on 11/21/17. Of- New York County. SSNY designated as been designated as agent of the LLC fice location: NY County. SSNY desig- fice location: NY County. SSNY desig- agent of the LLC upon whom process upon whom process against it may be nated agent upon whom process may nated agent upon whom process may against it may be served. SSNY shall served. SSNY shall mail process to: be served and shall mail copy of proc- be served and shall mail copy of proc- mail copy of process to the LLC, 49 CMT Portfolio Advisors, 150 W 56th ess against LLC to principal business ess against LLC to principal business West 38th Street, Ground Floor, New St., Apt. 4508, NY NY 10019. Purpose: address: 234 West 44th St., NY, NY address: 234 West 44th St., NY, NY York, NY 10018. Purpose: Any lawful any lawful act. 10036 Purpose: any lawful act. 10036 Purpose: any lawful act. purpose.
JANUARY 22 2018 | CRAIN’S NEW YORK BUSINESS | 19
P018-19_CN_20180122.indd 19 1/18/2018 4:33:12 PM GOTHAM GIGS
BRUSH OR BLADE: Tempest has a deft touch with sh, whether she’s using a paintbrush or a knife.
BY LANCE PIERCE
Fillet of soul A sh illustrator nds her calling as a hip sushi chef OONA TEMPEST ona Tempest didn’t set out to break gender Bouhadana, formerly of Sushi Dojo, to launch a pop-up barriers in the sushi world. When she started eatery at Gansevoort Market. learning sushi techniques ve years ago, she Bouhadana had appeared on the same Zagat list in AGE 25 didn’t even know that female chefs were a 2014, and neither he nor Tempest is of Japanese descent. BORN Martha’s Vineyard, Mass. Orarity. “It never crossed my mind,” Tempest said. “We’re both alternative faces trying to make it in the sushi She was working as a waitress at Tanoshi Sushi, on the world,” Tempest said. RESIDES Manhattan Upper East Side, putting herself through art e pair moved in November to a per- EDUCATION Bachelor’s in visual, school. e restaurant had just been favorably manent location inside the Jue Lan Club critical and multidisciplinary studies, I had to nish School of Visual Arts reviewed in e New York Times, and everyone “ in the former Limelight in Chelsea. PISCINE PICTURES Tempest was feeling the pressure of the spotlight. To school, renew At one end of the sushi bar, Bouhad- has drawn sh for as long as learn more about sushi, Tempest would stay my lease and ana o ers his 30-minute, $50 omakase—a she can remember. She studied a er closing time, asking head chef Toshio pledge my life chef’s choice, prix xe menu—dubbed illustration and graphic design in Oguma hundreds of questions while he and to sushi Sushi by Bou. At the other end, Tempest college, planning to become an the other chefs practiced knife work. ” serves her 90-minute, $100 omakase illustrator of marine textbooks. Art is now a hobby. She designed the “One day they asked me if I wanted to try— experience. In a playful nod to pop-cul- colorful graf ti-style artwork at the almost as a joke,” she recalled. She immediately loved the ture terms of a ection, her menu is called Sushi by Bae. restaurant. combination of art, science and skill. “It came naturally to Tempest’s journey from art student to sushi chef isn’t ONE-WOMAN SHOW Tempest me,” she said. “I have good dexterity.” a total uke. Her mother, a health-conscious artist, raised has no assistant. She handles Oguma agreed to train her only if she met certain con- her on a mostly pescatarian diet. Her father, who died reservations, inventory, deliveries, ditions: “I had to nish school, renew my lease in New when she was a baby, was an avid sherman who was Instagram posts, menu planning York and pledge my life to sushi,” Tempest recalled. She known for winning local shing derbies. and food prep. She makes and ages her own vinegar and soy sauce dove in, apprenticing with Oguma for about four years. Although Tempest never knew her dad, she said and often works 16-hour days. “I’m In 2016 she was included in the Zagat “30 Under she shares his deep connection to the sea. “Fishing was waiting for that little girl to walk up 30 Rock Stars Rede ning the Industry.” Last year she my father’s passion,” she said. “I feel like I’m nishing to me one day and say, ‘Teach me!’”
BUCK ENNIS teamed up with controversial chef and restaurateur David his work.” — HILARY POTKEWITZ
20 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P020_CN_20180122.indd 20 1/19/18 2:12 PM SNAPS
2018 Celebrating service and leadership e Real Estate Board of New York honored its outgoing chairman, Rob Speyer, at its 122nd annual banquet Jan. 18. William Rudin, the incoming chairman, and Mary Ann Tighe, former chairwoman, praised Speyer and presented him with the Harry B. Helmsley Distinguished New Yorker Award for his ve years of service to the powerful trade BANQUET association. Also honored were U.S. Sen. Chuck Schumer and several industry leaders.
Faith Hope Consolo, chairwoman of retail leasing and sales at Douglas Elliman Real Estate, MaryAnne Gilmartin, co-founder and CEO of the new development REBNY President rm L&L MAG, and Karen Dome, managing principal of John Banks with investment sales at Coldwell Banker Commercial Advisors Deputy Mayor Alicia Glen
State Attorney General Eric Schneiderman with Rob Speyer, chairman and CEO of Tishman Speyer
Andrea Stewart- Cousins, state Senate Democratic Ophelia Rudin Conference leader, with and her husband, William Kathryn Wylde, , CEO of Rudin president of the Management Co. Partnership for New York City
Douglas Durst, chairman of the Durst Organization, with Robert Knakal, chairman of New York investment sales at Cushman & Wake eld, Peter Hausberg, Jeffrey Levine, chairman of Douglaston Development, and Scott Rechler, CEO chairman and CEO of and chairman of RXR Realty Eastern Consolidated
BUCK ENNIS SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL [email protected].
JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 21
P021_CN_20180122.indd 21 1/19/18 7:46 PM FOR THE RECORD*
NEW IN TOWN Gochnauer sold 2,000 open in June or July. Kasin Organization represented from the Lever House at ■ CFG Merchant Solutions shares of common stock for Management Co. brokered the subtenant. Newmark 390 Park Ave. into the top signed a relocation lease for ■ Miznon $96.54 per share Jan. 10 in a the deal for the tenant. Knight Frank represented three oors of the 51-story 7,778 square feet. e busi- 75 Ninth Ave. transaction worth $193,080. Kassin Sabbagh Realty the sublandlord, Pernod building in the rst quarter ness lender plans to move At Israeli celebrity chef He now holds 10,947 shares. represented the landlord, Ricard. of next year. e asking rent its oces from 85 Broad St. Eyal Shani’s casual new Srour Partners. e asking for the 11-year deal (plus to 180 Maiden Lane. e Chelsea Market eatery, rent for the 10-year deal was ■ ird Point Manage- one year’s free rent) was asking rent was $55 per whole roasted cauli ower— BANKRUPTCIES $115 per square foot for the ment leased an additional $150 per square foot. JLL square foot. Cushman & along with pita bread— ground- oor level. 13,979 square feet at 55 represented the tenant. e Wake eld represented the is the star on the menu, ■ Asulin Gallery Hudson Yards on top of landlords, e Related Cos. landlord, MHP Real Estate which is focused on Israeli 768 Fifth Ave. ■ Humming Puppy inked the 75,064 square feet it and Oxford Properties, were Services, along with an street food. e art gallery led for a 10-year deal for 7,300 had already agreed to take. represented by an in-house in-house team. MHP Real Chapter 11 bankruptcy square feet at 119 W. 23rd e Daniel Loeb–founded team from e Related Cos. Estate Services also repre- ■ Soogil protection Dec. 18. e St. e Australian yoga hedge fund plans to move and CBRE. sented the tenant. ■ 108 E. Fourth St. ling cites estimated assets studio chain plans to open Chef Soogil Lim strives of $100,001 to $500,000 its rst U.S. location on the for unexpected twists on and liabilities of $1,000,001 second oor of the 10-story traditional Korean food at to $10 million. ere were building. e asking rent DEALS ROUNDUP this 40-seat East Village no creditors with unse- was $50 per square foot. restaurant. cured claims. Rice & Associates repre- TRANSACTION SIZE BUYERS/ TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE sented the tenant in the ■ Urban Export ■ Rosita Property Inc. transaction. JBA Real Impact Biomedicines Inc./ $7,000 Celgene Corp. SB M&A 292 Lafayette St. 104-11 Rosita Road, Estate brokered the deal Medicxi Ventures; Oberland Capital Philip Lotko, co-founder of Queens for the landlord, Stellar Management LLC (Manhattan) Rains, opened the Danish e real estate company Management. Pure Industrial Real Estate Trust/ $2,929.4 Blackstone Real Estate SB M&A outerwear brand’s rst U.S. led for Chapter 11 bank- 1832 Asset Management LP; Advisors (Manhattan) store, in SoHo. ruptcy protection Jan. 11. ■ Café Metro agreed to take Barometer Capital Management Inc.; RBC Global Asset Management Inc.; 240- e ling cites estimated 5,181 square feet at Sentry Investments Inc. assets of $0 to $50,000 246 W. 35th St. e chain MOVES AND EXPANSIONS and liabilities of $500,001 plans to open a restaurant Lucid Energy Group II LLC/ $1,600 Goldman Sachs Group, FB M&A Lucid Energy Group LLC Merchant Banking division to $1 million. ere were there in February. e (Manhattan); Riverstone ■ Blackbarn no creditors with unse- asking rent for the 12-year Holdings LLC (Manhattan) 75 Ninth Ave. cured claims. lease was $140 per square FCX Performance Inc./ $768 Applied Industrial SB M&A is shopping experience foot. ATCO Brokerage Harvest Partners LP (Manhattan) Technologies Inc. on the ground- oor level of ■ Mildred Deli Grocery Services represented the TiGenix NV/BNPP Asset Management $638.4 Takeda Pharmaceutical SB M&A Chelsea Market combines 231 E. 116th St. landlord, ATCO Properties Holding; Capricorn Venture Partners; Co. Ltd. (remaining 96.1%) a home decor store with a e deli led for Chapter & Management. Newmark Cormorant Asset Management LLC; restaurant and café. Every- 11 bankruptcy protection Knight Frank represented Gri-Cel S.A.; Grifols Worldwide Operations Ltd.; J.P. Morgan Securities LLC (Manhattan); thing you see in the eateries Jan. 11. e ling cites esti- the tenant. Kreos Capital can be purchased. mated assets and liabilities of $0 to $50,000. ere were COMMERCIAL Merritt Properties LLC $400 Almanac Realty Investors GCI LLC (Manhattan) ■ Performance Space no creditors with unse- ■ Primary signed a 10-year New York cured claims. lease for 48,873 square Three Alliance Center/Tishman Speyer $269.5 The Florida Retirement System SB M&A 150 First Ave. feet at 26 Broadway. e Properties LP (Manhattan) A er six itinerant years co-working company Braeburn Pharmaceuticals Inc. $110 Apple Tree Partners GCI while its home, a public REAL ESTATE focused on wellness and (Manhattan); Avista Capital Holdings LP (Manhattan); Deer eld school built in 1894, was health already occupies Management Co. LP (Manhattan); being renovated, the former RETAIL 25,000 square feet in the New Leaf Venture Partners LLC P.S. 122 has nally moved ■ Absolute New York signed building and will expand (Manhattan); RA Capital Management LLC; Rock Springs Capital; Wellington back to the East Village a deal for 10,000 square onto the entire third oor. Capital Management Inc. with a somewhat grander feet at 128 W. 34th St. e e asking rent was $47 name. e performing arts cosmetics company plans per square foot. e Mines DaDaAbc.com $100 TAL Education Group; Tiger GCI Management Corp. (Manhattan) center hosts the Coil Festival to use 2,200 square feet of Group represented the until Feb. 4, and then it the space for retail. e tenant. Newmark Knight Practice Fusion Inc./Battery Ventures; $100 Allscripts Healthcare LLC SB M&A Felicis Ventures; Longitude Capital will embark on a theme asking rent was $1.3 million Frank represented the land- Management Co. LLC; ORIX Growth Capital exploring the history of the per year. Newmark Knight lord, Chetrit Group. (Manhattan); QUALCOMM Ventures; SP neighborhood. Frank Retail brokered the Investments Management LLC; Western Technology Investment deal for the landlord, Stahl ■ PitchBook Data inked a Organization, along with deal for 34,100 square feet 30-32 Howard Street commercial $46 Intercontinental Real Estate SB M&A STOCK TRANSACTIONS NKF. Winick Realty Group at 315 Park Ave. South. e buildings in SoHo Corp.; K Property Group LLC (Manhattan) represented the tenant. nancial data and so ware ■ Shake Shack (SHAK-N) company plans to move Alimera Sciences Inc $40 Solar Capital Partners LLC GCI (Manhattan); Suns SPV LLC Founder Daniel Meyer sold ■ Chase Bank signed a from 155 Fi h Ave in May. 100,000 shares of common 10-year deal for 8,000 e asking rent was $92 per stock for $43.79 per share square feet at 180 Bedford square foot. L&L Holding Selected deals announced for the week ending Jan. 11 involving companies in metro New Ave. York. “SB M&A”: Strategic buyer M&A represents a minority or majority acquisition of exist- Jan. 2 in a transaction worth e bank plans to open Co. brokered the deal for ing shares of a company without the participation of a financial buyer. “FB M&A”: Financial $4,378,740. He now holds the Williamsburg branch in the landlord, Columbia buyer M&A represents a minority or majority acquisition of existing shares of a company 875,960 shares. the third quarter of the year. Property Trust. CBRE rep- with the participation of a financial buyer. “GCI”: Growth capital investment represents new money invested in a company for a minority stake. e asking rent for the lease resented the tenant. SOURCE: CAPITALIQ ■ Foot Locker Inc. (FL-N) spanning 11 years and four Board member Matthew months was $600 per square ■ Complete Discovery McKenna sold 10,899 foot. e landlord, or Source agreed to take a GET YOUR NEWS ON THE RECORD shares of common stock for Equities, was represented 18,803-square-foot sublease * To submit company openings, moves or real estate deals, or to receive further 250 Park Ave. $45.82 per share Jan. 9 in a in-house. CBRE represented at e ABOUTinformation,THIS email SECTION [email protected]. transaction worth $499,338. the tenant. legal-services-technology He now holds 35,000 shares. rm plans to move this For the Record is a listing to help businesspeople in New York nd opportunities, potential new clients and updates on customers. Bankruptcy lings from the eastern and ■ KicksUSA agreed to take month from 345 Park southern districts of New York are listed alphabetically. Stock transactions are insider ■ AmerisourceBergen 7,500 square feet at 774 Ave. e asking rent for transactions at New York companies obtained from Thomson Reuters and listed by size. (ABC-N) Broadway. e footwear the ve-year deal was Real estate listings are in order of square footage. Former President Richard and apparel brand plans to not disclosed. Kaufman
22 | CRAIN’S NEW YORK BUSINESS | JANUARY 22, 2018
P022_CN_20180122.indd 22 1/18/2018 4:43:31 PM PHOTO FINISH
Pounding salt o far this winter, 17.5 inches of snow have fallen in Central Park, 73% more than last year’s mid-January total. e Depart- ment of Sanitation began the season with S317,000 tons of calcium chloride–infused rock salt, and more is delivered daily as local suppliers dig deeper into their piles. Millions more pounds likely will be needed before the season ends. Last winter the Sanitation Department deployed 391,719 tons of rock salt to combat 32.8 inches of snow. e amount of salt the city needs doesn’t hinge only on the amount of snow but on the frequency of snowfalls and subsequent temperatures. Even though the “bomb cyclone” is now several weeks behind us, salt-spreaders are still working to clear up trouble spots the big blizzard may have le behind. — GERALD SCHIFMAN BUCK ENNIS
JANUARY 22, 2018 | CRAIN’S NEW YORK BUSINESS | 23
P023_CN_20180122.indd 23 1/19/18 8:21 PM An Advertising Supplement to Crain’s New York Business
2018 HERITAGE HEALTHCARE INNOVATION AWARDS Nominate an exceptional leader, pioneer or trailbazer
PRESENTED BY in New York healthcare Dr. Richard Merkin President and CEO Heritage Provider Network Finalists will be awarded in the following categories:
HERITAGE HERITAGE HERITAGE INNOVATION IN HEALTHCARE INNOVATORS IN HEALTHCARE LEADERSHIP HEALTHCARE DELIVERY HERITAGE AWARD AWARD AWARD RESEARCH HERITAGE INVESTIGATORS HEALTHCARE IN TRANSLATIONAL ORGANIZATIONAL LEADERSHIP MEDICINE AWARD AWARD Nominations open now Deadline March 23 2018 HELP US RECOGNIZE THE BEST of today’s healthcare clinicians, administrators and researchers in New York who are making measurable improvements in health status, improving access to healthcare, positively impacting patient quality of care and demonstrating long term affordability. Nominate a colleague, a peer or yourself.
Finalists will be honored at a luncheon in NYC on May 21
Mark Wagar, President, Heritage Medical Systems, Master of Ceremonies
For more information, visit crainsnewyork.com/heritage
Awards open to applicants working in all five boroughs of New York City as well as Nassau, Suffolk, Westchester and Rockand counties.
CN018517.indd 1 1/10/18 11:49 AM