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INSIDE NY after TOP STORIES Paterson —Greg David Recession? Tell outlines how the political that to retailers in dominos could fall 5th Ave.’s hot zone ® Page 11 PAGE 2 Property lender iStar crashes VOL. XXV, NO. 10 WWW.CRAINSNEWYORK.COM MARCH 9-15, 2009 PRICE: $3.00 back to earth PAGE 3 Investors may think Top-exec pay this is 1997, but few others do THE MOUTH train runs full PAGE 3 SPECIAL REPORT THAT ROARED steam ahead There’s nothing conservative Filings for ’08 show CHECK STUBS about the boost to WABC radio boards doing all from Rush Limbaugh’s resurgence they can to ignore BY MATTHEW FLAMM poor performance

rush limbaugh likes to complain that President Obama is BY AARON ELSTEIN Duncan James Ivan out to destroy the capitalist spirit in America. But so far, life Niederauer Tisch Seidenberg SMALL BUSINESS under socialism has been pretty good for the confrontation- amid the deepest economic col- FIRMS GRAB ON TO al talk radio star. lapse in generations, corporate $7.1M $7M $18.6M America is coming up with a nov- NYSE chief LOEW’S CEO VERIZON THE COST-CUTTING AX In the months since the Republican rout left Democrats collects a gets 8% hike head keeps in charge and conservatives on the run, the outspoken Mr. el way to justify extravagant execu- performance from board controversial As recession’s grip tightens, tive pay: Ignore the bad news. bonus after that ignored $35 million companies find creative ways Limbaugh has become the de facto leader of the opposi- Companies that sank into the posting a $2 billion “golden to trim expenses PAGE 15 tion—and the only radio personality who gets national at- $738 million worth of bad coffin” red last year are looking past a host net loss. news. perk. G tention on a daily basis.

How to identify shaky of business expenses, ranging from bloomberg news clients and avoid deadbeats Ratings for The Rush Limbaugh Show on its flagship sta- asset write-downs to higher-than- PAGE 19 See MOUTH on Page 8 expected operating costs, to ra- seem to make pay cuts a given. G Largest business tionalize paying brass even more “Executive pay is the ultimate improvement districts than they got in flush times. Oth- shell game,”says Richard Ferlauto, PAGE 20 ers appear to be reducing pay but a longtime critic of corporate com- continue to bestow extraordinary pensation practices and director of perks, such as “golden coffins.” pension investment policy at the BUSINESS LIVES Defiant shareholders admit American Federation of State, PAPER WEALTH that reining in the practices is a County and Municipal Employ- tough battle, even though the dire ees.“Boards come up with all sorts Angelica Berrie See PAY TRAIN on Page 8 pours her economy and lousy results would passions (and her millions) intointo cultcult retailer Surgeons’ plans Kate’s Paperie.Paperie PAGE 25 knifed by hospitals Proposed surgery center seen as threat; INDEX insurers, employers take opposite view RATINGS RUSH now is approval for the facility NEIGHBORHOOD JOURNAL ______9 BY BARBARA BENSON WABC-AM’s Rush Limbaugh Show has gotten a huge boost in listeners. from the state Public Health REAL ESTATE DEALS ______12 Council, which meets Friday. THE WEEKS AHEAD ______14 Share of audience two years ago,Stephen Nicholas That approval is doubtful.

CLASSIFIEDS ______22 and 13 other doctors proposed a The plan is vehemently opposed $10 million ambulatory surgery by nearby hospitals and the in- THE INSIDER ______24 center with six operating dustry’s lobbying group, the CORPORATE LADDER ______26 4.7 5.9 +26% rooms and state-of-the-art powerful Greater New York TABLE TALK ______27 DECEMBER JANUARY % CHANGE equipment.They billed Sur- Hospital Association. They ar- SeeEXECUTIVE AT DEADLINE MOVES on ______Page ______2 ______27 For listeners age 12 and older. Source: Arbitron giCare of Manhattan as a gue that SurgiCare will steal

getty images better alternative to hospi- much of the hospitals’ market tals, with their high costs share for many simple surger- and risk of infections. ies and result in the loss of 10

5 COMINGNEXT WEEK “We think we are millions of dollars. They creating a brand-new also note that such facil- REAL ESTATE: Obama plan raises hopes for those facing foreclosure. Report way to provide med- ities aren’t obligated to looks at 3 families on the edge and at ical care,” says Dr. provide charity care. ELECTRONIC EDITION earlier failed attempts to help. Plus, Nicholas, an ortho- “GNYHA firmly pedic surgeon. believes that approving

NEWSPAPER small deals rock; auctioneers thrive.

All they need See HOSPITALS on Page 8 istockphoto 71486 01068 0 CNYB 03-09-09 A 2,3 3/6/2009 7:39 PM Page 1

IN BRIEF New stores forge CB RICHARD ELLIS INVESTORS PURCHASED 1540 BROADWAY FOR AROUND 60% LESS than the building fetched in 2007.The independently operated ahead on Fifth subsidiary of CB Richard Ellis Inc. won’t say how much it paid, Projects planned before meltdown but sources claim the price tag was $355 STREET OF DREAMS million.They say Harry BY ADRIANNE PASQUARELLI Macklowe paid around 56th Street $950 million as part of a opening an expensive flagship in this $7 billion purchase of economy should qualify an apparel compa-
seven buildings, which ny for a padded cell. Yet two retailers, Ar- ARMANI opened its location in February. he was eventually forced mani and Diesel, opened expansive empo- 55th Street to return to lenders after riums on the midtown Fifth Avenue 1540 Broadway failing to repay his loan. corridor last month. And Tommy Hilfiger will open a 22,000-square-foot store at 681 PERHAPS NONPROFITS AREN’T IN AS MUCH Fifth Ave. this summer. All three commit- TROUBLE AS WE THOUGHT. UNLIKE THEIR ted to the launches over a year ago,but even 54th Street 5th Ave. corporate counterparts, the majority of after the storm clouds burst in the fall, the
nonprofits in New York City are actually companies forged ahead.
planning to increase their staffers’ salaries this “Fifth Avenue is the most revered street year or at least keep them the same, according in the world,” and having a store there is to the annual salary survey by recruitment firm worth the risk, says Steve Birkhold, chief Professionals for Nonprofits. A full 51% of executive of Diesel USA. “The foot traffic respondents said they would increase salaries in is in excess of 40 million people a year, in a 2009, while 32% expect to keep them the same good economy or a bad economy.” as last year. Just 6% of the groups plan to reduce staff salaries, and 11% are undecided.The A shift from luxury to lifestyle survey drew 500 respondents from all areas of as the rest of New York faces rising re- the nonprofit sector.The majority have annual tail vacancies and slowing consumer buck ennis photos operating budgets of $5 million to $50 million. spending, the hot zone, between 49th Street and 58th Street, is standing its DIESEL calls Fifth “the world’s most-revered street.” THE DEEPENING RECESSION IS HITTING THE ground. The $2,500 a square foot that BRONX HARD. THE UNEMPLOYMENT RATE IN Abercrombie & Fitch agreed to pay last the borough soared from 8.3% in December to summer for its kids store at 666 Fifth After a $4 million renovation of its store 9.7% in January—the highest level in the city, might be a rent relic,but ground-floor ask- at 645 Fifth, Gant USA, a purveyor of and the highest level in the Bronx in five years. ing rents still range from $1,850 to $2,200 preppy duds, saw sales rise 44% last year Some 51,200 borough residents were a square foot. And retail business remains from 2007. Chief Executive Ari Hoffman unemployed in January. Brooklyn had the healthy, even though the tenant mix is says it is the best performer of the compa- second-highest unemployment rate, at 7.7%, changing. Observers cite a shift from lux- ny’s 400 worldwide locations. He recently followed by Manhattan, Queens and Staten ury as brands like Tommy Hilfiger and signed a lease to accommodate a 2,500- Island.The numbers are not seasonally Diesel scoop up space for merchandise that square-foot expansion. adjusted.The citywide unadjusted appeals to a broader range of shoppers. TOMMY HILFIGER: a more mass-market vibe. unemployment rate for January was 7.3%. “Abercrombie, Hilfiger and Diesel are A smattering of vacancies better up or moderate brands, but they but the gilded avenue isn’t a total A NEW FANNIE MAE CONDO GUIDELINE WILL aren’t luxury,” says David LaPierre, a sen- well on the corridor. Abercrombie & Fitch stranger to vacancies. Citing high rents, MAKE IT HARDER FOR NEW YORK CITY ior vice president at CB Richard Ellis. estimates that sales at its 720 Fifth store, the Walt Disney Store says that it will developers to sell units.The agency has “Fifth Avenue is becoming more of a pres- which opened in 2005, were more than move next year to another tourist-friendly increased the minimum percentage of units in a ence for a global brand—it’s not necessar- $100 million in 2007. Revenue there rose neighborhood from its corner on East 55th building that must be presold or in contract ily what it used to be.” 23% last year, according to real estate Street. Ground-floor asking rent for the before it will purchase bank loans, raising the Those brands tend to be performing sources. See RETAILERS on Page 7 level to 70% from 51%. Local real estate executives say that the stricter rule, effective March 1, will further discourage banks from lending money to homebuyers who are still willing to make purchases. Many of the city’s new developments are not even close to meeting the requirements. In addition, buyers Legroom in traveler budgets will have to make a down payment of at least 30% if they don’t want to get hit with extra fees. a 52% decline in price from last year, ac- worried about putting butts in the seats.” Airlines need to fill seats, cording to FareCompare.com. Don’t cry for the airlines yet, Mr. TWEEN ACCESSORIES AND APPAREL BRAND offer fliers cheapest On the domestic front,Delta has round- Seaney adds. Last year’s fuel crisis forced LITTLEMISSMATCHED RECENTLY SIGNED A trip flights to Las Vegas for $215,a 19% dis- carriers to cut back drastically, paring the one-year lease for about 400 square feet in ticket prices in a decade count. Prices on flights to San Francisco on number of flights and dropping unproduc- Grand Central Terminal’s Lexington Avenue JetBlue and American, now $231 round- tive routes altogether, and so they entered passage.The retailer is taking over the space BY MATTHEW SOLLARS trip, are down 29% from last year. this latest downturn in a relatively strong now occupied by lingerie purveyor Pink Slip, “It’s probably the cheapest time in a position. Indeed, analysts estimate the in- which is moving to a larger spot.The new a suddenly sweet wave of deeply dis- decade to travel,” says Rick Seaney, chief dustry could save more than $20 billion on store—slated to open in mid-May—marks the counted airfares—prices on some routes executive of FareCompare.com. “At this fuel this year, compared with last. first brick-and-mortar location for out of New York area airports are 50% low- point, [airlines] are not even worrying As the economy continues to sputter,the LittleMissMatched, which currently sells its er than last year—offer a rare bright spot for about making money on flights;they’re just airlines will continue to offer sales and cut wares through Macy’s, Bed Bath & Beyond, corporate budget-cutters. And it’s not so FAO Schwarz and 3,000 specialty stores. bad for local airports,or even some airlines. FARE-THEE-WELLS Travelers all but stopped flying last Oc- tober, just as carriers were recovering from Round-trip fares vol. xxv, no. 10, march 9, 2009—Crain’s New York Business (issn early 2008’s brutal run-up in fuel prices. for these popular 8756-789x) is published weekly, except for a combined issue 4th With the holiday travel season over, air- flights departing week of December by Crain Communications Inc., 711 Third from New York Ave., New York, NY 10017. Periodicals postage paid at New York, lines now must hustle to boost demand, N.Y. and additional mailing offices. Postmaster: Send address area airports are changes to: Crain’s New York Business, Circulation Department, 1155 since flying a plane is an expensive propo- down 22% or ORLANDO Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: sition, whether it’s empty or full. more from this Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one $140
$255American Some of the biggest fare cuts are on time last year.
Continental year, $109.79 two years. (GST No. 13676-0444-RT) -558% -222%
Delta ©Entire contents copyright 2009 by Crain Communications Inc. flights between New York City and Eu- All rights reserved. Taxes and fees included.
United rope. Continental has round-trip flights Source: FareCompare.com between Newark and Dublin for just $310,

2 | Crain’s New York Business | March 9, 2009 CNYB 03-09-09 A 2,3 3/6/2009 7:40 PM Page 2

THEN & NOW Borrowing trouble ’97 AGAIN? SOME DÉJÀ VIEWS THE DOW JONES INDUSTRIAL AVERAGE last week develop the Drake Hotel site on Park Av- Most of its real estate lending peers are tumbled below 7,000 for the first time since 1997— Cash shortfall snowballs enue. Mr. Macklowe stopped paying off struggling to survive as the credit crisis deep- the era of Alan Greenspan’s “irrational exuberance” for real estate lender his loan, however, and as the recession has ens and property values plummet. iStar mutterings. Although stocks have lost about half of worsened, so have many other borrowers. maintains it will endure.The company has their value since an October 2007 peak, many iStar as big-name projects As a result, the company, which recorded begun efforts to secure a new line of credit. economic indicators in the city remain relatively morph into bad debts its first bad debt less than three years ago, Sources say a group of banks recently grant- strong versus those from 12 years ago. Maybe the is now drowning in unpaid loans. ed iStar a $1 billion credit facility. flush times of the past few years are cushioning the Two weeks ago,iStar,which has as- That lifeline will still leave iStar with city. Or maybe (gulp) there’s still a long way to fall. BY THERESA AGOVINO a cash shortfall of as much as $1.5 —DANIEL MASSEY AND AMANDA FUNG billion this year.But the company ‘The probability says that it can close that gap: It MEDIAN PRICE istar, one of New York’s highest-flying has $558 million in cash and OF A MANHATTAN real estate lenders—which has financed of them making credit, and iStar believes that it CO-OP/CONDOMINIUM $28 billion worth of real estate projects, will realize far more from a and whose clients range from Donald it out of this combination of loan repayments THEN $239,000 Trump to Harry Macklowe—has crashed and asset sales.But analysts warn NOW $955,000 to earth. mess is low’ that some of the company’s pro- MEDIAN NEW YORK Last month, iStar reported its first an- Omotayo Okusanya, UBS jections are overly optimistic. nual loss since it went public in 1998,amid CITY RENT a steep rise in its nonperforming loans. In Smaller by the day THEN1 $630 response, the three major rating agencies istar’s own shrinking estimates NOW $1,054 swiftly downgraded the company’s debt to highlight the problem. Nine junk status. iStar’s shares, which are trad- sets of $15 billion, months ago, the company fore- ing at about $1, are off some 90% from reported a net loss cast that it would collect $5 WALL STREET BONUSES their 52-week high, and there are mount- of $234 million billion from its borrowers THEN $11.1 billion ing fears that the company will not be able for 2008. The this year. The company cut NOW $18.4 billion to come up with the roughly $2.5 billion it damage that estimate to $3.9 bil- needs this year to repay its debts and meet stemmed lion in October, and cut it TOTAL NEW YORK CITY its loan obligations. largely from SOUR DOUGH: again in December, to “They are in the fight of their lives,”says the addition Real estate $1.8 billion. EMPLOYMENT maven Jay Omotayo Okusanya, an equity analyst at of $1 billion to Sugarman’s iStar “How much money THEN 3,441,900 UBS Securities. “The probability of them iStar’s fund to just posted its will they get back? It is NOW 3,681,800 making it out of this mess is low.” offset expect- first annual loss impossible to know,” That grim forecast marks a sharp rever- ed loan losses, since going remarks Jeff Zaun,as- sal for the company, founded 15 years ago and the write- public. sociate director of NEW YORK CITY by Jay Sugarman, considered one of the down of more Standard & Poor’s UNEMPLOYMENT RATE brightest minds in the real estate industry. than $300 mil- Ratings. THEN 9.4% lion worth of iStar’s projections NOW 6.9% Ivy League celeb assets. of how much it can

mr. sugarman graduated from Princeton Even worse, reap by selling off 2 University summa cum laude and won the analysts say, some loans also ap- AVERAGE WEEKLY WAGE IN MANHATTAN Paul Volcker Award in Economics; he iStar’s nonper- pear ambitious. For THEN $857 went on to finish in the top 5% of his class forming loans rep- instance, iStar has NOW $1,292 at Harvard Business School. He managed resented more than been trying to sell investments for the Vanderbilts and other 27% of its portfolio as its $230 million NEW YORK YANKEES prominent families, and co-founded Star- of the end of the loan for the wood Capital Group,a real estate fund,be- year—triple the level of Drake Hotel site PAYROLL fore forming iStar. a year earlier. for $160 million. THEN $73.3 million For years, iStar prospered, funding iStar, which declined to Sources say that of- NOW $222.5 million some of the flashiest projects in real estate, comment for this article, cer- fers are coming in including Harry Macklowe’s effort to re- tainly has plenty of company. See LENDER on Page 7 MICHAEL BLOOMBERG’S

patrick mcmullan NET WORTH THEN $1.3 billion creased by 3.4% in 2008. NOW $20 billion By comparison, Boston’s Logan Inter- national Airport experienced a 7% decline as airfares plunge last year compared with 2007. Other cities BASE SUBWAY FARE have seen even steeper drops. THEN $1.50 capacity. Delta says it will reduce its capac- percentage could climb as JetBlue empha- NOW $2.00 ity nationwide by 6% to 8% in the next year. sizes flights to the Caribbean and routes on One company’s January travel savings: 15% And the airlines will try to squeeze the the East Coast. Other airlines are focusing the airlines’ struggles to get passen- STATE OF MTA most out of the passengers they do attract on high-margin international flights— gers onto planes have been an unexpected with variations on things like bag fees and many of which go through the city—and boon to New York companies that really BUDGET pillow charges. JetBlue, for instance, has some carriers are even talking about adding can’t avoid travel. THEN $110 started a new premium program, of sorts, flights to their overseas routes this year. “We’re definitely benefiting from air- million surplus (proposed that offers extra legroom for a fee. The strength of international travel has fare competition—no doubt about it,” says fare reduction to $1.25) Some of this offers a silver lining for meant only slight declines in traffic through Cheryl Geib, director of travel and meet- New York.JetBlue has pared back to its core New York, compared with other cities. ings for accounting firm Grant Thornton, NOW $1.2 billion shortfall (proposed business and is ready to cut further,but 61% The area’s airports counted 107 million noting that her budget in January was 15% fare hike to $3.00) of its flights go through New York,and that passengers last year,down 2.7% from 2007. below her January 2008 number. While it is the Lower airfares can make it easier to pull SLICE OF PIZZA first year since the trigger on approving in-person client AT FAMOUS 2002 that the visits. But no matter how low ticket prices FAMIGLIA overall pas- go, Ms. Geib insists, the firm will contin- senger count ue to keep a lid on non-billable travel ex- THEN $1.75 has declined, penses,like conferences and internal meet- NOW $2.50 the number of ings, until the economy recovers. 1-Figure is from 1996 and is not adjusted for inflation. 2-Figures are for second- international That’s a mind-set the airlines can’t ig- quarter 1997 and 2008 and do not include finance sector. passengers nore,Mr.Seaney observes.“There’s no his- Sources: Miller Samuel Inc., 1996 and 2008 Housing and Vacancy Surveys, $365 istockphotos $435 /  Delta British Airways moving tory for this occurrence, and the airlines’ New York state comptroller, New York State Department of Labor, Bureau of -449%  Alitalia -442%  Air France through the [business] models are basically useless to Labor Statistics’ New York office, Moody’s Economy.com, Major League Baseball, Baseballchronology.com, Forbes, Famous Famiglia  Virgin Atlantic city’s airports them,” he says. “They’re just trying to fig-
actually in- ure out where the bottom is.” buck ennis

March 9, 2009 | Crain’s New York Business | 3 CNYB 03-09-09 A 4 3/6/2009 7:47 PM Page 1

As CBS eyed dividend chop, IN THE MARKETS Redstone offered an earful by Matthew Flamm

A plunge in both companies’ did not comment. A CBS Major shareholder stock price tripped a loan covenant spokesman declined to accused of delaying that forced Mr. Redstone to sell comment. Time Warner cut to prop up other more than $200 million in non- Asked about the div- voting shares. idend cut at the re- lets loose soured investments The CBS dividend cut cent Deutsche Bank took a big bite out of media and tele- the cable guy MIXED SIGNALS Mr. Redstone’s income communications BY MATTHEW FLAMM stream, reducing the conference, ime warner cable will com- Weekly closing stock prices. amount of money he’ll CBS Chief Ex- plete its spinoff from Time I Time Warner Cable I Time Warner Inc. at least one CBS Corp. share- take home from CBS ecutive Leslie TWarner Inc. later this month,fi- holder apparently wasn’t happy to $14 million a year Moonves in- nally—yes, finally—becoming the about management’s decision last sisted that the “pure play” cable company that in- month to slash its corporate divi- chairman sup- vestors have been clamoring for since dend by 80%. His annual ported the before Tony Soprano first started Sumner Redstone, CBS’s execu- move. singing to his psychiatrist. tive chairman and owner of nearly 3 dividend “He saw, as There’s not much clamoring million shares,was accused by a me- we did, we now.After decades of operating as a dia analyst last week of delaying the income needed the quasi-monopoly, the nation’s sec- dividend cut because of his own cash,” said Mr. ond-largest cable outfit is seeing its money woes involving other invest- will fall Moonves. “It was once-enviable growth rates slip as it ments. the right thing to do grapples with increasing competi- Pali Research analyst Richard 80%, to for the shareholders. tion and slowing sales. Since shares were lost in the year-ago period. Greenfield, citing “multiple sources And Sumner was under the TWC ticker symbol first Some of those consumers migrated connected to current CBS board $14 million right there.” started trading a little over two years to more expensive digital video, but members,” wrote in a note to clients Mr. Greenfield, ago at $41.50, they have shed more that service added only 44,000 sub- that Mr. Redstone “resisted other meanwhile, upgraded than 50% of their value. scribers—less than the 108,000 board members’ desire to cut the CBS’s rating to “neu- forecast by analysts and a lot less Hardly phoning it in CBS dividend for a substantial peri- s tral” from “sell,” citing than the 168,000 who signed up in w e od of time, which jeopardized the n the cheap price of the faced with a maturing market, the same period in 2007. g well-being of CBS, in favor of his from $78 million,according to r stock—$3.36 last Fri- Time Warner Cable has also come un- For the full year, the cable com- e b own personal financial needs.” The Wall Street Journal. m day—and the company’s der pressure from AT&T and Veri- pany suffered a net loss of $7.3 bil- o o l The 85-year-old Mr. Redstone Fortunately for Mr. Red- b improved liquidity as $1.4 zon Communications. Both have lion, owing to a $14.8 billion write- has been struggling since October to stone, late last month he came billion in bonds come due invaded its turf in the past year with down of the value of its cable restructure $1.6 billion in loans owed to an agreement with his next year.“[Cutting] its div- their own broadband and cable tel- franchise rights—a clear reflection by National Amusements Inc., the lenders that gives him until idend by 80%,” he wrote, evision products, offering not just of the competitive landscape and holding company through which he 2010 to pay off his debts. “will enable CBS to meet its competitive prices but also technol- maturing of the industry. controls Viacom Inc. and CBS. A spokesman for Mr.Redstone 2010 maturities.”
ogy that is considered fresher and Still, Time Warner Cable con- faster than Time Warner Cable’s. tinues to grow when most are strug- “Verizon and AT&T have faster gling. For the full year, revenue rose broadband speeds and a network 8%, to $17.2 billion, spurred by in- they’re building for today,” says creases in high-speed data and In- Joshua Martin, a senior analyst at ternet phone subscriptions. the Yankee Group.“The cable com- And though its share price has panies aren’t totally standing still, fallen 32% in the past 12 months—in If you don’t have in-house counsel, but they’re like very large boats that line with No. 1 cable operator Com- take a lot of time to turn around.” cast’s 36% drop—the company is do- The cumulative impact of those ing better than parent Time Warner, we have a solution. factors was evident last month when whose stock has plunged 51%. Time Warner Cable released its The cable giant has solid “month- fourth-quarter results. It was not a ly revenue streams and very little ex- pretty picture. Basic television serv- posure to the ad market,which is re- ice lost 119,000 subscribers, more ally getting hit,” says David Joyce, a than double the 46,000 that analysts media analyst at Miller Tabak, who had expected and the 50,000 that has a “buy” rating on the stock.

Let us provide you with fully A TALE OF TWO CDs CUSTOMERS ARE POURING an unprecedented $100 billion a month into U.S. staffed, experienced, affordable banks, many of which offer little or no payout for their savings in certificates of general counsel services. deposit. The big exception? Citigroup Inc. And the reason may also help explain Citi shares’ tumble into penny-stock territory last week. While J.P. Morgan Chase & Co.’s deposits rose 4% in the fourth quarter, to more than $1 trillion, Citi’s deposits fell 0.8%, to $774 billion, as customers Contact Bill Borchard 212-790-9290 / [email protected] yanked out a net $6 billion in cash, says Rochdale Research. Chase is paying almost nothing for its flood of funds. It offers a mere 0.2% interest rate for a one-year CD in the New York area, reports Bankrate.com. Taking inflation into account, customers are basically paying Chase to safeguard their money. Meantime, Citi is offering New York customers a 2.6% interest rate on a one-year CD. One explanation for Citi’s eagerness: De- positors overseas are jumping ship. Foreign deposits slid last quarter by 3.8%, or $19 billion, and they’ve fallen $76 Attorneys at Law billion since fourth-quarter 2007, Rochdale says. Not a good trend for a global bank with 62% of its deposits overseas. istockphoto 1133 Avenue of the Americas • New York, NY 10036-6799 “It is this loss of foreign deposits,” observes Rochdale www.cll.com analyst Dick Bove, “that is creating the company’s current problems relative to solvency.” —AARON ELSTEIN

4 | Crain’s New York Business | March 9, 2009 CN012710 1/23/09 2:02 PM Page 1

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May require up to a $36 activation fee/line, credit approval and deposit. Up to a $200 early termination fee/line applies. Available on corporate-liable accounts only. Phone Offer: Offer ends 4/18/09 or while supplies last. Upgrade: Existing customers in good standing with service on the same device for more than 22 consecutive months currently activated on a service plan of $34.99 or higher may be eligible. See in-store rebate form or sprint.com/upgrade for details. Buy 1 Get 4 Offer: Activation required at the time of purchase for all five phones on the same account in one sales transaction. Not available in all channels. Other Terms: “Fastest” claim based on initial call setup time. Coverage not available everywhere. Nextel National Network reaches over 274 million people. Offers not available in all markets/retail locations or for all phones/networks. Pricing, offer terms, fees and features may vary for existing customers not eligible for upgrade. Other restrictions apply. See store or sprint.com for details. ©2009 Sprint. Sprint and the logo are trademarks of Sprint. Other marks are the property of their respective owners. CNYB 03-09-09 A 6 3/6/2009 3:55 PM Page 1

Prime Times NEW YORK,NEW YORK 218 West th Street Square edited by Valerie Block 40 Location

■ ImmediateImmediate availability. Full flflooroor - 13,800 rsfrsf ■ ExpansionExpansion opportunitiesopportunities ■ GGenerousenerous workletteworkletterr Out of the river, into a book deal ■ 24/724/7 buildingbuilding access with conciergeconcierge ■ NNewew eelevatorslevators he hero of flight 1549 might land a book deal. Captain ■ AcrossAcross from the new New York Times buildingbuilding Chesley “Sully” Sullenberger (left)—who piloted a crippled US TAirways jet safely into the Hudson River in January, saving the lives of all 155 people aboard—has been meeting with New York publishers this week, according to industry sources. To drum up interest, agent Jan Miller has distributed a copy of the “My Turn” column Mr. Sullenberger wrote for Newsweek last month about adjusting to his celebrity and what the incident meant to people. One publishing insider says that Ms. Miller has already received an offer of $2.5 million for two books. If comments on his column are any guide, there’s definitely an appetite for a memoir by the unassuming aviator. “I hope you’ll write a book about Flight 1549 that will inspire people to be better people,” one reader wrote. “We need all the heroes we can get.” getty images Ms. Miller did not return a call seeking comment. starting a business during the Still love them, worst economy in decades? The MORE POWERFUL yeah, yeah, yeah landlord reduced the rent. THAN A DERIVATIVE BIDS FOR Action Comics No. 1, a old hipsters like rock vintage copy of the first Super- Bob Gruen Cocktail time photographer and man comic Michael Woodstock promoter book, in Lang up on the roof 100% COMMISSIONS , and some young ones, June 1938, including Rock of Ages and even—or maybe especially— PAID ON SIGNING hit American Idol star Constantine in a rough economy, people enjoy $277,300 Maroulis, turned out in force last gathering in places with prime on March 6. FOR LEASING INFORMATION, CONTACT: week for the opening of Not Fade views for a cocktail or two. So the Away Gallery in the Flatiron Kimberly Hotel is adding a rooftop With CAROL SACKS [email protected] 212.452.6055 district. On display: rare photos of bar, slated to open this spring. investors MICHAEL DUBIN [email protected] 212.452.6042 the Beatles and Rolling Stones The boutique property on East putting their circa 1964 to 1966. 50th Street is completing a money any- An action shot of Paul multimillion-dollar renovation, where but McCartney slapping his bass during which includes creating the into stocks, the collectible could LEASING & MANAGEMENT the band’s maiden U.S. tour and a terrace spot. Management fetch more than $300,000, Savittpartners.com declined to according to Stephen Fisher, discuss details president of auctioneer Comic- of the project, Connect.com. The company but an advisory gets 10% of the proceeds. on the hotel’s Web site says it is undergoing dropped 22%, according to Media “minimal” Industry Newsletter. construction Including April, with pages up and expects the 72%, Saveur is ahead by 19% so BRITISH INVASION: Rare photos of work to be far this year compared with the early Stones and Beatles are on view. finished by 2008 period, the publisher says.

photos: bonis bob May. Saveur ’s growth is against a The 192- smaller base than the other titles’, pouty Mick Jagger behind a room property’s top floor has been and its lower per-page pricing has recording console were among the used for meetings and social definitely played a role. But vintage gems lining the walls of events. “advertisers are watching their the loft space. Hosting the party: dollars, and they’re not spending if Keith Richards’ stunning daughters they don’t want you,” says Theodora and Alexandra. Food magazine Publisher Merri Lee Kingsly, who Snapped by tour manager Bob full steam ahead joined the Bonnier Corp. Bonis, who died in 1991, the title in January photos’ negatives had been the economic downturn 2007. stashed away in a duffel bag. In has wreaked havoc on And, unlike need of cash, his son Alex brought magazines, but Saveur is the others, Saveur them to rock memorabilia sizzling. A pipsqueak is not allowing the specialist Larry Marion last year for publication next to such recession to appraisal.The two ended up giants as Bon Appétit, Saveur influence its launching the gallery, raising is the only one in the approach to food. $500,000 to do so. category whose ad pages are “You don’t see Despite the dropping Dow, growing. ‘budget’ anything in Mr. Marion says he is “getting Its pages spiked 11% in my book,” Ms. deluged with interest from all over March compared with a year Kingsly says. the world” about the limited earlier. In contrast, Gourmet’s edition prints, which sell for up to pages plunged 48%, Bon Appétit’s Contributors: Lisa Fickenscher, $5,000. And the bright side to fell 29% and Food & Wine’s Matthew Flamm

6 | Crain’s New York Business | March 9, 2009 CNYB 03-09-09 A 7 3/6/2009 7:46 PM Page 1

rent, whereas a tenant’s stature has traditionally been sufficient, ac- Retailers forge ahead with new stores on 5th cording to brokers. As midmarket brands fill prime Continued from Page 2 ecutive vice president at Lansco figer agreed to, real estate experts Fifth Avenue properties between company’s 36,000 square feet is al- Corp. “A small luxury brand might Even if rents say. Saks Fifth Avenue and Bergdorf most $1,850 a square foot, sources get lost next to them.” Neither Armani nor Tommy Goodman, the south end of the say. decline, they Hilfiger would comment on midtown corridor is emerging. Additionally, the remaining re- Recession-resistant whether they have renegotiated Spanish fast-fashion retailer Zara tail portion of 666 Fifth—that not fifth avenue menswear retailer will remain the their leases. opened a 16,000-square-foot out- taken by Abercrombie Kids—has Hickey Freeman, whose parent Diesel didn’t even try to revamp post at 42nd Street in November, been on the market since July at an company, Hartmarx Corp., filed for city’s highest its deal, according to Mr. Birkhold. just across from Swedish competitor asking rent of more than $2,000 a bankruptcy protection in January, “We feel what we paid for the space H&M. square foot. Brokers generally think has come under pressure. But a rep- was a value based on the return,” he “Zara and H&M anchor the av- that, rather than the space being resentative from Hickey Freeman says. enue,” Ms. Abrams says. “If we had subdivided into boutiques, another says the brand has no plans to vacate one or two other exciting tenants in contemporary retailer will take over its Fifth Avenue location. dor’s allure. Ground-floor rents Extending south the mid-40s, it would start to fill all of it. Even if rents on Fifth Avenue could slide to $1,500 a square foot, landlords willing to lower rents in—but with tenants like Forever 21 “Abercrombie Kids took a very decline, they will remain the high- versus the estimated $1,700 that could be inclined to ask for a securi- and Uniqlo—not necessarily a dia- large piece,”says Robin Abrams,ex- est in the city because of the corri- Armani, Diesel and Tommy Hil- ty deposit of six months to a year of mond shop.”
Lender in peril

Continued from Page 3 at around $130 million. Analysts trace many of iStar’s problems back to the peak of the market—a time when real estate ROCK INVESTMENTS prices skyrocketed, construction is a stable, proactive, entrepreneurial real estate boomed and lenders flooded into owner with signi¿ cant capabilities in all facets of the sector. iStar began taking on more and more risk in order to com- real estate operations. pete, analysts say. With a combination of European style and American ingenuity, Bad move a $5 million capital improvement program underway, it also got badly burned on its $1.9 billion purchase in 2007 of Fre- and 39 leasing transactions in 2008, Rock understands mont General’s real estate portfolio. and meets today’s tenants’ needs. At the time, the deal was consid- ered a bargain, because prices were off sharply from their highs. The transaction looked like an easy and cheap way for iStar to expand into iStar’s problems are now feeding on themselves

the Florida condo market, says Pe- ter Zalewski, principal of real estate CURRENT AVAILABILITIES consulting firm Condo Vultures. Since then,foreclosures in South 183 MADISON AVE Units from 500 – 0,000 rsf with build-to- Florida have more than doubled, he suit potential | Capital improvement program underway: notes, reaching 75,000. As a result, Fremont accounts for one-third of new elevators, windows, restrooms & common corridors iStar’s nonperforming loans. Steven Marks, managing direc- 100-104 FIFTH AVE Full À oors from 5,000 – 20,000 tor of Fitch Ratings, calls the struc- rsf Capital improvement program underway: ture of the Fremont deal “problem- atic,”noting iStar has to give 70% of new elevators and lobbies its loan collections back to Fremont. Upping the price COMMISSIONS PAID ON SIGNING istar’s problems are now feeding on themselves, as creditors respond to the company’s worsening condi- FOR LEASING INFORMATION CONTACT: tion by effectively raising the price SCOTT PUDALOV of the cash it needs. Analysts esti- President mate that iStar was forced to put up ALAN WILDES $3 billion to $5 billion in assets as Executive Managing Director collateral for its latest $1 billion line of credit. Previously, it rarely had to 212.532.1800 collateralize its loans. iStar now has a lot of time to de- vote to its troubles: Sources say that the company has halted lending.
RCK-1005 Ad CRAINS8.125x10_metallic_final.indd 1 3/2/09 2:04:28 PM March 9, 2009 | Crain’s New York Business | 7 CNYB 03-09-09 A 8 3/6/2009 8:23 PM Page 1

umn critical of Mr. Limbaugh. Over the years, Mr. Limbaugh’s Mouth that roared talent for controversy has led many Hospitals knife plan national advertisers to steer clear of Continued from Page 1 July Premier signed him to a new him. Some media buyers say it’s pos- Continued from Page 1 “We followed the rules, and now tion, WABC-AM, spiked by double contract reportedly worth $400 mil- sible that in the current economy, this application will significantly it feels a little like we are getting digits in January over December, lion over eight years. even more will stay away. harm the hospitals surrounding the slapped upside the head,” Dr. Litt pushing the nationally syndicated Mr. Limbaugh’s supporters say “It’s a tough economy,and clients center and their ability to provide said at a recent public hearing. program into third place from fifth in his appeal to audiences and advertis- don’t like complaining phone calls,” needed services to their communi- Lenox Hill has a more compli- its afternoon slot in New York. The ers goes beyond his politics. says Dennis McGuire, regional ties,”President Kenneth Raske wrote cated relationship with the Surgi- bigger audience has bucked up ad- “Even people who disagree with broadcast director for Carat USA. in a recent letter to state Health Care doctors, almost all of whom vertising sales for both the station him listen,” says WABC Program But if advertisers are unhappy Commissioner Dr. Richard Daines. have privileges there. Dr. Nicholas and Premier Radio Networks, the Director Laurie Cantillo. “The bot- with Mr. Limbaugh, Premier insists The proposal has already fallen calls himself intensely loyal to Clear Channel Communications tom line is that his show is entertain- it isn’t hearing from them. short of the necessary votes in three Lenox Hill, home to the Nicholas subsidiary that syndicates the show. ing.” She adds that interest in the “Rush has tremendously loyal ad- lower PHC committees; in the Institute of Sports Medicine and Mr. Limbaugh has become the economy and the new administra- vertisers,” says Charlie Rahilly, pres- third, it garnered only one vote out Athletic Trauma. The center was one bright spot in an industry that tion has brought improved ratings ident of Premier, noting that nation- of five. But the battle isn’t over, and founded by his late father, Dr. James was struggling to grow even before and revenue to every show at the talk al ad inventory booked so far for 2009 SurgiCare is far from defenseless. Nicholas, who performed four knee the recession pounded it.People may station, which has an almost exclu- is above 2008’s level.“In an otherwise With a net worth of $17 million, surgeries that saved the career of Jets hate him for attacking a popular sively conservative lineup. challenging ad climate, we’re having Dr. Nicholas has the means and the quarterback Joe Namath. president in a time of crisis, but ob- a very positive response.” connections—former Massachu- “I grew up playing hide-and- servers say that the more polarizing A danger of alienating advertisers Mr. Limbaugh’s longtime adver- setts Gov. William Weld represents seek at Lenox Hill,” Dr. Nicholas Mr. Limbaugh is, the better. but there are critics of Mr.Lim- tisers already know what to expect, SurgiCare—to fight. More impor- says. “I want it to succeed.” “It’s great for the business of talk baugh who feel that he has lately be- says Mark Lefkowitz,media director tant, ambulatory surgeries cost less radio, it’s great for the stations that come too much of a political cam- at Furman Roth Advertising Inc., than inpatient procedures. As a re- Unused capacity carry him, and it’s great for Rush paigner, and that he is in danger of Some of them share Mr. Limbaugh’s sult, the surgeon has powerful allies, nonetheless, a Lenox Hill admin- Limbaugh,” says Michael Harrison, alienating advertisers who are look- views, he adds, and a good portion of including the state Department of istrator told a recent hearing that the publisher of the trade magazine Talk- ing for an entertainer. the show’s inventory is sold to direct- Health, as well as insurers and em- hospital would lose $3.4 million if ers. “This will increase his ratings, For them, Mr. Limbaugh crossed response advertisers who aren’t wor- ployers, which foot much of the the doctors opened SurgiCare. which will increase his longevity.” the line with his recent nationally tel- ried about their corporate image. bills. With its 17-operating room ASC at Of course, Mr. Limbaugh was evised speech to the Conservative The controversy around Mr.Lim- Dr. Daines isn’t convinced hardly suffering before the Democ- Political Action Committee’s annual baugh has at least shown that radio that ASCs hurt hospitals. In- rats won last November. Ever since meeting, where he almost appeared still can have an important place in stead,he has said that they can OPERATING MANUAL Howard Stern left CBS Radio to join to be running for president. the media universe. “It’s a sign that manage centers’ financial im- Partners in SurgiCare. Sirius Satellite Radio in 2006, El “The issue is whether he has people are back,enjoying that kind of pact on them and that patient Rushbo has had no competition for stepped into the role of politician and personality-driven radio,” says Peter satisfaction and preference— PROJECTED ANNUAL the role of biggest pitchman in the out of the role of talent,” says Jack Gusmano,U.S.director of client serv- not to mention doctors’ NO. OF ASC talk business.He can command such Myers, editor of a media business ice at GroupM Matrix. “That could choice—are “public goods PHYSICIAN SPECIALTY PROCEDURES a premium from advertisers that last newsletter who recently wrote a col- spark the radio marketplace.”
that should be protected.” Sanjay Bakshi Pain management 1,200 Insurers have also lined up Sergai DeLaMora Orthopedics 360 to support ASCs. Paul Ma- ized investment losses. Additional- cielak, president of the New Stuart Katchis Orthopedics 480 Pay train chugs on ly, they dismissed over $750 million York Health Plan Associa- Steven Lee Orthopedics 720 of write-downs in the oil explo- tion, lauds them as “cheaper David Matusz Orthopedics 180 ration unit, which stemmed partly and more convenient for pa- Mark Mohrmann Orthopedics 480 Continued from Page 1 Indeed, NYSE directors had from revaluing reserves to account tients and health plan mem- Stephen Nicholas Orthopedics 1,200 of new ways to pay people whose tried to show Mr. Niederauer more for lower commodity prices. bers.” performance shows they don’t de- largesse. They had established a “What does ‘pay for perform- SurgiCare, on Second Av- Robert Pae Orthopedics 600 serve it.” $5 million “target bonus” for ance’ mean if you ignore perform- enue and East 42nd Street, Keith Raskin Hand surgery 1,380 Just last week, New York Stock him but ultimately awarded less be- ance?” Mr. Ferlauto asks. also promises a payday for its Michael Rettig Hand surgery 600 Exchange parent NYSE Euronext cause management cut the compa- Loews declined to comment. 14 doctors, who will collec- Christopher Riegler Pain management 360 Inc.said that Chief Executive Dun- ny-wide bonus pool by 20%. In a Some CEOs are willing to ac- tively make a $10 million asset can Niederauer had been awarded regulatory filing, the board said, cept less compensation. Stephen purchase of an existing surgery Thomas Scilaris Orthopedics 540 total compensation of $7.1 million “We believe individual perform- Schwarzman of the Blackstone center. They estimate that the Aruna Seneviratne Orthopedics 180 in 2008—his first full year in the ance would have supported higher Group cut his pay 99% last year, to facility will earn $1.67 million Armin Tehrany Orthopedics 1,080 job—including $4 million desig- award levels.” $350,000, after the firm swung to a on revenue of $9.72 million by Total 9,360 nated a “performance bonus.” Munificent as NYSE was, $1.2 billion net loss connected to the third year. And despite Mr. Niederauer’s pay was nearly Loews Corp. went the extra mile heavy write-downs. Numbing the hospitals’ claims about lack of $2 million more than predecessor when it came to CEO James Tisch. pain was the $180 million Mr. services for the poor, the doctors John Thain got in 2006, his last full Loews, whose holdings include Schwarzman pocketed in 2007, pledge to donate about 3% of rev- only 51% of capacity,Lenox Hill ar- year at NYSE. The exchange’s per- hotels, insurers and oil exploration when he took his leveraged-buyout enue to charity care, including treat- gues that the doctors should operate formance in 2008 was dismal by al- outfits, lost $182 million from con- firm public. ment of veterans through the Intre- there. Citing its $165 million in op- most any traditional measure. It tinuing operations last year, and its But even companies that have pid Fallen Heroes Fund. erating losses over the past five posted a $738 million net loss, and stock price sank 44%. Yet the board better aligned their pay policies with years, Lenox Hill repeatedly reject- the stock price fell 68%. (Rival Nas- paid Mr. Tisch $7 million—8% the times still seem to have a tin ear Cannibalized business ed an offer to invest in SurgiCare. daq dropped 50%.) more than in 2007, when Loews when it comes to what critics call nyu langone medicalcenterand The prediction is that the Public The loss was driven by a $1.6 bil- generated $1.6 billion of net income over-the-top perks. Lenox Hill Hospital—the facilities Health Council will reject the cen- lion asset write-down related to the from continuing operations. For example,the total pay of Ver- where the physicians now do most ter’s request, but the doctors can ap- 2007 acquisition of Paris-based Eu- izon Communications Inc. CEO of their surgery—insist they cannot peal a denial. ronext. NYSE concluded that Eu- Grading pay on a curve Ivan Seidenberg fell 30% last year,to afford the loss of business SurgiCare “New York is the only state that ropean operations will generate less the company covered Mr.Tisch’s $18.6 million. But some sharehold- would represent. At NYU, two of is still involved in protectionism,” cash than expected because of bleak raise partly by excluding $2 billion ers are peeved that his heirs stand to Dr. Nicholas’ hand surgeons per- says Susan Regan, who cast the sole markets and regulators’ opening worth of setbacks that it said “would collect up to $35 million payable formed 1,466 procedures in the fis- vote for the surgeons as chair of one trading to more competition, a not be appropriate” to consider upon Mr. Seidenberg’s death—an cal year that ended in August 2008. of the lower PHC panels. much-anticipated development when setting pay. unusual benefit known as a “golden “We see losing $3 million in rev- Ms. Regan is urging Lenox Hill that hurt its market share and led to The bad news includes a higher- coffin.” enue, which is not insignificant,” to invest with the surgeons, but the lower transaction fees. than-budgeted $204 million of ca- Arguing that shareholders says Dr. Andrew Litt, NYU’s exec- hospital calls that move “financially In defending Mr. Niederauer’s tastrophe losses in its insurance di- shouldn’t be saddled with a payment utive vice president and vice dean. irresponsible.” The reaction puzzles pay,NYSE argues that the company vision, nearly five times as much as for which no service can be ren- Eager to capture outpatient rev- her. fared better in 2008 than its finan- in 2007, mainly due to hurricanes dered, the Philadelphia city em- enue, NYU applied in 2007 for per- “Why can’t you say ‘let’s work to- cial results and stock price suggest. Gustave and Ike. Companies of- ployees’ pension fund and another mission to build a $25 million cen- gether’ instead of ‘no’?” Ms. Regan A spokesman points out that rev- ten exclude noncore items when public pension fund have filed a ter with four operating rooms. It is asked Lenox Hill’s executive at the enues rose 4%,while fixed operating determining compensation, but shareholder resolution for Verizon scheduled to open in the fall. The hearing. “You can have a for-profit expenses declined. “Pro forma” Loews acknowledges in its annual investors to vote on the perk. hospital argues that it is unfair for and a nonprofit working together, earnings rose 9% when the merger- report that catastrophe losses are an Verizon insists that golden the state to allow a larger competi- and the only people benefiting are related charges and other items are “inevitable” part of its insurance coffins are necessary to retain key tor that’s a seven-minute walk away. the patients.”
excluded, according to the business. employees. spokesman. “The board deemed Loews directors also decided it But the pension funds wryly re- For daily health care news, subscribe to that, overall, we met targets as a wasn’t fitting to consider the insur- tort that “in our opinion, death de- CRAIN’S HEALTH PULSE @ www.crainsnewyork.com/pulse company,” he says. ance division’s $750 million of real- feats this argument.”

8 | Crain’s New York Business | March 9, 2009 CNYB 03-09-09 A 9 3/5/2009 6:38 PM Page 1

NEIGHBORHOOD JOURNAL

for the neighborhood’s industrial Storefront market wilts in Astoria sector had criticized the plan for pro- viding too much commercial space. Time Equities also had some bad mix of retail, commercial and light- one option would be to turn to one of news for industrial tenants, though. Demand for retail industrial tenants. The collapse of the unsuccessful bidders. Plans to renovate two former ware- space drops, rents the plan is a blow to the entire area. Sources say the other bidders in- houses nearby have been aban- “Having gone this far just to have clude two developers who’ve done doned. The few tenants in those come down; will Time Equities pull out now is very, well in other Brooklyn waterfront buildings will remain, with the city stimulus plan help? very disappointing,” says Randy neighborhoods: Dumbo’s Two acting as landlord. Peers, the chairman of Community Trees Management and Red Hook’s Meanwhile, the city insists that Board 7. Greg O’Connell. But much has the cancellations will not affect ntil recently,As- A spokesman for the New York A RENDERING of a rebuilt Federal Building. changed in the four years since they plans to build a 14-acre waterfront toria, Queens, was City Economic Development Corp., submitted their bids. park just a few blocks away. A state- one of the hottest re- which along with the Brooklyn Eco- Some people, however, are hop- funded cleanup of the site is still tail tickets in town.To nomic Development Corp. has been will look at all options for pushing ing that the city will rethink its plan slated to start this spring. get a storefront loca- overseeing the project, says the city forward on the project.He notes that before trying to revive it. Advocates —matthew sollars Ution on Steinway Avenue, the neighborhood’s main drag, store owners had to wait as long as six months. Now, 38 of Astoria’s 302 businesses are either closed or clos- ing, according to a study by Rep. Anthony Weiner’s office. The study showed that the va- cancy rate among locally owned stores is running at 13%, slightly higher than the borough-wide aver- age of 12%. A year ago, the bor- ough’s average was half that. “If you pass by,it seems like every fourth or fifth store is for rent,” says Dritan Malo, a broker with Centu- ry 21 Triboro Terrace in Astoria. He contrasts that with the market of three years ago, when demand for space exceeded supply and mer- chants who wanted a storefront sometimes had to pay tenants to give up their leases.Those days are gone. “I have a restaurant space on Steinway that’s been sitting there since June,” Mr. Malo says. “That’s Life takes you all around the world. With HSBC Premier, never happened to me before.” your banking follows. It’s the world’s most comprehensively Prices are falling with demand. linked-up banking, with seamless capabilities and recognition The landlord was originally asking in 40 countries. So you can bank as easily abroad as you $10,000 per month. Last month, he do at home. slashed the price to $6,000. Mr. Weiner is using the study to View your HSBC worldwide accounts online and transfer get a piece of President Barack Oba- All your finances money between them instantly. Obtain mortgages abroad1 ma’s $787 billion economic stimulus with your portable HSBC credit history. And travel with plan spent in Queens. About $750 the reassurance of 24/7 financial emergency assistance, million has been earmarked for the including US$2,000 instant local currency and overnight Small Business Administration. in one place. “Too many community shops, card replacement. HSBC Premier lets you focus on your the backbone of the city’s economy, global life, not your financial life. are hit hard by this downturn,” Mr. Begin a Premier relationship by April 25, 2009 with a Weiner said in a statement. So you don’t qualifying deposit of new money and receive your choice Of the 10 Queens neighbor- hoods with vacant storefronts on of a Relaxed Traveller Set & throw from Molton Brown, their main strips, Jamaica Avenue London’s luxury purveyor of bath and body care, or the have to be. new Amazon Kindle 2,™ a lightweight digital reader that had the highest number of empty stores, with 80 closed shops out of lets you carry over 1,500 titles in your pocket.2 335, or 24%, while the Rockaways Call 1 866 909-1267, stop by a local HSBC branch or had the highest vacancy rate,with 17 visit HSBCPREMIERUSA.com/passport to learn more out of 40 storefronts vacant, or 42%. about HSBC Premier and a world of possibilities. Astoria ranked fifth. —hilary potkewitz Project goes dark in Sunset Park one of the biggest projects to hit Brooklyn’s Sunset Park neigh- 1 Geographic and other restrictions apply. borhood in years is no more. Devel- 2 Offer valid when you begin a new Premier Relationship in the United States with a minimum of $50,000 funded in new money by April 25, 2009. New money is defined as funds oper Time Equities Inc. announced or positions not previously held by any member of the HSBC Group over the past consecutive six months. Offer not valid on Retirement (IRA) Brokerage Accounts or for existing HSBC Premier clients. Employees cannot use Vanguard balances to qualify for this offer. To qualify for HSBC Premier, you need to maintain $100,000 in combined personal deposit late last month that it was abandon- and investment balances or $500,000 in combined personal deposit, investment, and credit/mortgage balances. Business owners may use their commercial balances to qualify for ing a deal with the city to redevelop personal Premier membership, but these balances cannot be used to meet the new money requirements. A monthly maintenance fee of $50 will be incurred if minimum balance the long-vacant Federal Building requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. The Annual Percentage Yield (APY) and balance for a Premier Checking Account which is accurate as of March 1, 2009, is 0.05% APY on balances of $5.00 or more. APY is variable and subject to change after opening. Charges #2—a storehouse near the water- and fees may reduce earnings. Qualified customers will be notified via mail within 90 days of opening an account; notification will include instructions for redeeming gift of front built for the Navy in 1918. choice. Limit one gift per customer. This offer cannot be combined with any other offers or promotions, is nontransferable, and good while supplies last. Any gift not redeemed by The $205 million project, which July 31, 2009, will be forfeited. The cost of the gift will be reported on IRS Form 1099. Premier relationship must remain open for a minimum of six months or value of gift will be deducted from account proceeds at closing. has been in the works since 2005, Amazon and Kindle are trademarks of Amazon Technologies, Inc. or its affiliates. To purchase content for your Kindle, a credit or debit card issued by a U.S. Bank with a U.S. billing would have turned the storehouse address is required. Amazon Kindle 2 and associated digital content from the Kindle Store are not available outside of the United States. and an adjacent lot into a 1.8 mil- Deposit products offered in the United States by HSBC Bank USA, N.A. Member FDIC. lion-square-foot complex with a ©2009 HSBC Bank USA, N.A.

March 9, 2009 | Crain’s New York Business | 9 CNYB 03-09-09 A 10 3/5/2009 8:13 PM Page 1

VIEWPOINT The limits of soaking the rich editor in chief Rance Crain publisher, vp Jill R. Kaplan f barack obama has his way, the top federal tax Proponents of higher taxes often claim that the rich don’t editorial director Greg David rate for families making more than $250,000 will pay their fair share.That is simply a myth.The wealthiest 1% EDITORIAL editor Xana Antunes jump to 39.6%. If Senate Democrats prevail in of New Yorkers paid 40% of all income taxes in the state in managing editors Glenn Coleman, Robert Hordt Albany, the rate for those with incomes above $1 2007.The mayor says the group pays about half of all city deputy managing editors Valerie Block, Erik Ipsen million a year will increase sharply, to 10.3%. If income taxes. And the mayor noted that even if just a small contributing editor City Council Speaker Christine Quinn triumphs percentage of wealthy New Yorkers left, an income tax Elizabeth MacBride columnist Alair Townsend at City Hall, the local income tax rate for those in increase wouldn’t raise senior reporters Theresa Agovino, the latter lucky group will increase to 4.65%. Add it all up, an additional dime. Aaron Elstein, Erik Engquist, Lisa Fickenscher, and the marginal tax rate—the rate applied to all income in RICH INCOME TAX It is important to Matthew Flamm, Miriam Kreinin Souccar I INCREASES reporters Barbara Benson, Amanda Fung, the highest bracket—would be more than 54%, versus the remember that the last Daniel Massey, Adrianne Pasquarelli, current 45.5%. Top rates in each category. increases in state and Hilary Potkewitz, Gale Scott, Matthew Sollars restaurant critic Bob Lape The effect on wealthy New Yorkers could be even more CURRENT PROPOSED city income taxes after art director Steven Krupinski severe. Mr. Obama’s plan would reduce the value of Sept. 11 coincided with deputy art directors Carolyn McClain, Federal 35.00% 39.60% Daniel Mednick deductions of high-income individuals, including those for State 6.85% 10.30% the implementation of staff photographer Buck Ennis mortgage interest, charitable contributions and state and the Bush tax cuts. So the copy desk chief Wendy Zuckerman City 3.70% 4.65% Thaddeus Rutkowski local income taxes. rich saw their total tax copy editor Total 45.55% 54.55% research editor Denise Southwood The president would raise the capital gains tax for these bill drop.Those 2002 www.crainsnewyork.com web editor Brian Tracey people to 20% from 15%. He wants to eventually apply hikes were also senior producer Elisabeth Butler Cordova Social Security tax to all income; this year, the levy is temporary; both things made the increases more palatable. producer Kira Bindrim applied only to the first $106,000. In today’s economy, the rich will take note of the difference EDITORIAL AND ADVERTISING OFFICES The increases are so great that Mayor Michael between New York and nearby states. 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 Bloomberg, who usually says taxes have little influence Times are tough, but steep tax increases on the affluent advertising: 212.210.0259 on where individuals live and companies locate, argues will weaken the national recovery, and a tax-the-rich Cable craincom nyk Fax 212.210.0499 these hikes will send the wealthy fleeing the city. He’s attitude at the city and state will merely deepen New York’s Entire contents ©copyright 2009 Crain exactly right. economic hole. Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP Inc., used under license agreement.

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ADVERTISING AND MARKETING senior account managers Cornelius P. Gore, William E. Squitieri Downtown is still looking up commercial real estate sales manager Cory Marks account executives AFTER 7 YEARS, Irene Irvill, Courtney McCombs, Anthony Mowad COMMUNITY SEES GAINS question that rumors of significant, long-term commercial lower Manhattan and ignored the sales manager, classified downtown’s demise have once leases are being signed at such results of seven years of hard work print & online John Gallagher crain’s march 2 article on lower again been greatly exaggerated. storied addresses as 100 Church and investment by this sales coordinator, print & online Manhattan (“Ground Zero, Seven years of recovery have St., 7 World Trade Center, 14 Wall community. Lulé Haznedari Anita Perrino Again”) does not present the real created a global model for a 21st- sales coordinator St. and 77 Water St. elizabeth h. berger credit Todd J. Masura 313.446.6097 century central More than 6 million people President marketing director Amy Crossman business visited lower Manhattan last year, Alliance for Downtown New York marketing manager Jill H. Bottomley district, a double the number in 2003, and circulation manager Andrea Richardson unique synergy the residential population is the THREAT LEVELS, assistant circulation manager of the fastest growing in New York City, RECONSIDERED Rosalie Ford commercial, with over 54,000 people, more general manager, interactive residential and than double the number who lived crain’s statement that the effect Marc Minardo tourism here on 9/11. Research shows that of the financial crisis on web developer, interactive sectors. 67% of these new residents are downtown “threatens to do even Chris O’Donnell Here are couples and families who are more damage in the long run than NEW YORK PRODUCTION the facts: Over putting down roots in the the terrorist attacks” is not only production and pre-press director 200 companies neighborhood. offensive to everyone who Michael Corsi have relocated No part of New York is experienced the devastation first- advertising production manager here from immune to the weakness of our hand but out-and-out insensitive Suzanne Fleischman Wies midtown and national economy, but to write that to those of us who lost loved ones PUBLISHED BY CRAIN COMMUNICATIONS INC. karjean levinekarjean Keith E. Crain TOMMY KRISKO, owner of the All-American Diner at Whitehall Street. elsewhere since it’s “Ground Zero, Again” does a on that horrific day. chairman 2005, more tremendous disservice to your This is only money. We can president Rance Crain than two- readers, both above and below never reclaim our lost loved ones. secretary Merrilee Crain story of downtown now or since thirds of them creative, technology Chambers Street. They won’t reappear like a blip in treasurer Mary Kay Crain William Morrow the attacks of Sept. 11. and professional services Too bad this story focused the stock market, which will executive vp, operations senior vp, group publisher Gloria Scoby While there may be debate over businesses. Even in today’s exclusively on how the global inevitably recover. group vp, technology, circulation, this or that milestone, there’s no precarious economic climate, economic crisis might be affecting iris fanelli manufacturing Robert C. Adams vice president/production & manufacturing David Kamis chief information officer Paul Dalpiaz WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh Health 40 Real Small What Real founder G.D. Crain Jr. (1885-1973) estate care Under estate business New Yorkers chairman Mrs. G.D. Crain Jr. (1911-1996) report report 40 report report Earn March 16 March 23 March 30 April 6 April 13 April 20

10 | Crain’s New York Business | March 9, 2009 CNYB 03-09-09 A 11 3/5/2009 5:34 PM Page 1

NYPLExpress oped his plan to cap property taxes. Until recently, Mr. Suozzi’s best The New York Public Library option was to run for lieutenant governor with Mr. Paterson, a course that now seems likely to end in disaster. His tough choice is whether to challenge Mr.Paterson if Research and worldwide document delivery Mr. Cuomo does not, or to take on Mr.Cuomo if Gov.Paterson decides Order online or by telephone to quit. Mr. Suozzi learned a lot in his Electronic delivery to your desktop quixotic campaign against Mr. Spitzer in the 2006 Democratic pri- mary and developed a promising Access information on all subjects base of fundraisers. His biggest problem is that he isn’t from New Payment by credit card available York City, the home of money and votes in the Democratic primary. Don’t forget about Rudy Giu- liani, who, like Mr. Cuomo, Fast, Efficient, and Confidential trounces Mr. Paterson in the polls. His anti-tax conservatism will play well in 2010 after a year of tax in- creases at the federal, state and city tel: 212-592-7200 fax: 212-592-7215 levels. john h.john howard A race for governor is far more www.nypl.org/express [email protected] doable than a campaign for the U.S. Senate because the issue will be primarily competence, not ideolo- gy. New York’s solidly blue voters New York politics wouldn’t need to rethink their allegiance to the liberal Demo- cratic faith of Barack Obama in after Paterson order to vote for Mr. Giuliani for governor. Mr. Giuliani’s problem is ironi- he most important man in New York politics cally the same as Mr. Suozzi’s—his support lies primarily outside the isn’t Gov. David Paterson, whose ineptness has city. But unlike in the Democratic translated into the worst approval rating for a gov- primary, the suburbs can play a key ernor in 30 years and long odds on his re-election role in the November election. in 2010. Rather, it’s Attorney General Andrew The complications don’t end there. Someone will challenge new TCuomo,whose decision later this year on what office to seek will Sen. Kirsten Gillibrand, and it’s not set off a chain reaction that could remake state politics. Here’s just because she comes from an up- state region poor in campaign cash an early look at how the lic appearances. and voters. As she moves to the left LEADERSHIP CHALLENGE dominos may fall. He still isn’t liked or on issues like gun control and immi- WORKSHOP Mr. Cuomo’s strong trusted by other politi- gration and moderates her anti- performance in his cur- cians, but that seems of Wall Street attitude, she will be vul- “All LEADERS are born, rent job—crusading for little consequence at nerable to the charge that she has no but EXEMPLARY leaders are MADE.” average citizens without the moment. A race real beliefs. The early betting is on the bullying tactics of against Mr. Paterson one of the congresswomen from based on the best-selling book predecessor Eliot Spitz- would be Mr. Cuomo’s downstate, but many think that The Leadership Challenge by Kouzes & Posner er—makes him a formi- to lose, and a decision Manhattan Borough President dable challenger for Mr. by him to run would Scott Stringer would be a strong Paterson. probably pre-empt oth- contender. The attorney gener- GREG er challenges in the And, of course, if Mr. Cuomo A Highly Interactive Program to Help al is even developing DAVID Democratic primary. runs for governor, a free-for-all will his platform by talk- Keep watching Nas- ensue for attorney general. Executives and Managers Become ing about consolidat- sau County Executive Let’s hope that this time EFFECTIVE TRANSITIONAL LEADERS ing local governments in meetings Thomas Suozzi, who has been a around, Albany winds up with bet- with businesspeople and some pub- loyal ally of the governor and devel- ter leaders. HAUPPAUGE,NY March 30th-April 1st, 2009 CRAIN’S ONLINE POLL $1,195 8:30am - 4:30pm Payment required in advance MC/Visa/AMEX Sheraton Hotel, 110 Motor Parkway Should the feds keep bailing out AIG? Hauppauge, NY 11788 265 VOTES Date of poll: MARCH 2 The Five Practices of Exemplary Leadership: Yes. It is simply • Model the way No. Let it fail. It 32%. too important to • Inspire a shared vision makes no sense let fail. If AIG goes under, it will • Challenge the process to keep lending • Enable others to act AIG taxpayer .68% be catastrophic money. for the global • Encourage the heart financial system.

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March 9, 2009 | Crain’s New York Business | 11 CNYB 03-09-09 A 12 3/5/2009 6:39 PM Page 1

REAL ESTATE DEALS

the West Side has gone through a DirecTV connects for more space boom and a bust,” says Nigel Shamash, founder of an eponymous real estate firm, who represented the The satellite TV provider inked a but at the end of the day the compa- street-level warehouse. SBR Multi- tenant with colleague Timothy Entertainment three-and-a-half-year lease for ny wanted to be at Rockefeller Cen- sport Inc. recently signed a three- Freydberg. company’s search about 70% of the second floor. A ter,” says Mr. Rappaport. year lease for 4,000 square feet of Roberto Camacho,a broker with second-quarter move is planned. Tishman Speyer represented it- ground-floor space at 631 W. 51st St., Buchbinder & Warren Realty ends close to home Cushman & Wakefield Inc. bro- self in the transaction. between 11th and 12th avenues.The Group,represented landlord White- kers Adam Rappaport and Arthur —theresa agovino asking rent was $27 a square foot. hall Business Archives. irectv group inc. Mirante represented DirecTV.They SBR, which specializes in tri- —adrianne pasquarelli signed a lease for al- declined to provide an asking rent for athlon equipment, will use the new most 13,000 square the deal, but sources say landlord Odd move: Shop space as a warehouse and shipping feet at 1 Rockefeller Tishman Speyer is asking around leased for storage center. The 51st Street location will 2 old-time tenants Plaza, bringing its to- $80 a square foot for the third floor. supplement SBR’s retail outpost at sign up again Dtal in the building to nearly 77,500 “There were tremendous options with rents falling, one retailer is 203 W. 58th St. square feet. available and we looked at them all, turning an empty storefront into a “[The retail store] is nearby, and the elias sports bureau and the Platinum Guild have renewed their leases at 500 Fifth Ave., between West 42nd and West 43rd streets. Elias renewed its lease for anoth- er five years. The sports research firm, founded in 1913, has 7,500 square feet on the 21st floor. The asking rent was $62 per square foot. “They are a longtime ten- ant,” says Harry Blair,a broker at FirstService Mobilebile Broadband.Bro Williams who represented the landlord, 500 Take your business mobile. Fifth Ave. Inc. Meanwhile, the Platinum With high-speed wireless Internet from Verizon Wireless, Guild,an organ- your small business can be the productivity powerhouse ization run by you want it to be. Get more done on the go — connect to South African the Internet, access email, download files and more. All on TWO TENANTS have mining compa- renewed at 500 Fifth. America’s Largest and Most Reliable 3G Network. Talk to a nies that pro- Small Business Specialist today to find the right Mobile motes and mar- Broadband solution for your business. kets platinum, has renewed its lease for 3,000 square feet for another five years. The asking rent for the 51st- floor space was $70 per square foot. “The location is fantastic,and the views are incredible,” says Brett Zel- ner, a broker at Lansco Corp., who represented the Platinum Guild. Mr. Blair negotiated both re- newals. —amanda fung Harlem to get taste It’s never been easier to get Mobile of the sea Broadband for your small business. Limited-time offer. Hurry in today. harlem native Doris Wade is branching out. She is bringing a taste of the sea to her old neighbor- F R E E hood. Ms. Wade recently signed a UM 175 USB Modem 10-year lease for 1,000 square feet at $49.99 2-yr. price less $50.00 mail-in rebate debit card. New 2113 Frederick Douglass Blvd.,between two-year activation on a Mobile Broadband plan required. West 114th and West 115th streets, for a new seafood restaurant called Questan’s. The asking rent was $75 a square foot. Oddly enough, she chose the Getet thethe rightright tools fforo your small business. Contact a Smallmall BusinessBusiness SpeciaSpeciaaalilist todayy. space for its proximity to her three- year-old pet shop, Posh Paws of Manhattan. She plans to open the Call 1.800.VZW.4BIZ Clickk smallbusiness.vzw.com Visit a Verizon Wireless store new restaurant in May. “There’s no seafood restaurant VERIZON WIRELESS COMMUNICATIONS STORES See store for Return/Exchange Policy. Technicians available at select locations. around there,” says Ms. Wade, ex- BRONX NEW! 2150 White Plains Rd. 718-829-3179 NASSAU Massapequa 5070 Sunrise Hwy. 516-797-3880 plaining that she will serve every- BUSINESS CUSTOMERS NEW! 416 Westchester Ave. 718-292-4111 Westbury 49 Old Country Rd. 516-937-2960 HABLAMOS thing from fish and chips to lobster MANHATTAN 342 Madison Ave. @ 43rd St. 212-856-6100 SUFFOLK East Northport 4000 Jericho Tpke. 631-499-1820 1-800-899-4249 ESPAÑOL tail.With table seating for about 50, Union Square 859 Broadway 212-206-7587 Smith Haven 1 Smith Haven Mall 631-382-3720 Questan’s will also offer a takeout 57 W. 57th St. btwn. 5th & 6th Ave. 212-980-4860 WESTCHESTER Hartsdale 355 N. Central Ave. 914-286-4120 service. 134 W. 34th St. btwn. 6th & 7th Ave. 917-351-8000 Lyn Singleton,who runs his own 100 Wall St. & Water 212-510-6160 NEW! 4251 Broadway @ 181 St. 212-781-6034 firm, negotiated on behalf of Ms. Wade. Landlord Tahl Propp Equi- Activation fee/line: $35. ties was represented by Faith Hope IMPORTANT CONSUMER INFORMATION: Subject to Customer Agmt, Calling Plan, rebate form and credit approval. Up to $175 early termination fee and other charges. Mobile Broadband is available to over 260 million people in 258 Consolo of Prudential Douglas El- major metropolitan areas. Offers and coverage, varying by service, not available everywhere. Rebate takes up to 6 weeks & expires in 12 months. Limited-time offer. While supplies last. Shipping charges may apply. Largest claim based on owned/operated network. See verizonwireless.com/bestnetwork for details. © 2009 Verizon Wireless. 73867 liman Real Estate. —adrianne pasquarelli

12 | Crain’s New York Business | March 9, 2009 s s s s CNYB 03-09-09 A 14 3/5/2009 8:17 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS [email protected]. 2310. Free. (212) 997-1660. College, 250 Bedford Park Blvd. West, MARCH 13 MARCH 10 MARCH 10 MARCH 11, APRIL 8, MAY 13 library, room b27c, Bronx. Free. American Business Women’s Church Avenue Merchants Block Fashion Institute of Technology holds Access.office Inc. holds networking (718) 960-8697 or Association holds networking dinner. Association holds workshop on free seminar on freelancing. 6 p.m. to 9 p.m., reception. 6 p.m. to 8 p.m., Ronald [email protected]. 5:45 p.m. to 8:30 p.m., Domenico’s money for your business. 3 p.m. to 5:30 West 27th Street and Seventh Avenue. McDonald House of Long Island, MARCH 11 Restaurant, 120 E. 40th St. Fee: $30 p.m., 884 Flatbush Ave., second floor. Fee: $35. Preregistration required. 267-07 76th Ave., Queens. Fee: $20. Business.com, Vtrenz, Yesmail and members, $40 nonmembers. Free. Preregistration required. (212) 217-7250 or [email protected]. (866) 391-2780 or ZoomInfo hold Web-marketing (212) 387-8134 or [email protected]. (718) 282-2500 or [email protected]. MARCH 10 [email protected]. breakfast. 7:45 a.m. to 10 a.m., Grand MARCH 14 MARCH 10 Networking for Professionals holds MARCH 11 Hyatt, 109 E. 42nd St. Fee: Free for Insiders Group Inc. holds workshop on Workshop in Business Opportunities high-speed networking reception. 6:30 New York Public Library holds preregistered corporate marketers; $50 secrets to perfect credit. 11 a.m. to 1 holds small business tax-planning p.m. to 8:30 p.m., O’Lunney’s Times workshop on 50 tips for building a better general admission in advance, $60 at the p.m., 216 Greene Ave., Brooklyn. Fee: seminar. 5:30 p.m. to 9 p.m., CitiBank, Square Pub, 145 W. 45th St. Fee: $20 resume. 5:30 p.m. to 7 p.m., Science, door. (212) 210-0151. $27. Preregistration required. 1 Court Square, Brooklyn. Free. members; $30 nonmembers; $35 at the Industry & Business Library, 188 MARCH 12 (718) 622-2271 or (212) 684-0854, ext. 0538, or door for all. (212) 227-6556 or Madison Ave., room 018. Free. New York Public Library holds lecture [email protected]. [email protected]. (212) 592-7000. on tax tips for your 2008 return. 5:30 More meetings online at MARCH 10 MARCH 11 p.m. to 7 p.m., Science, Industry & MARCH 16-22 www.crainsnewyork.com Manhattan Review holds seminar on Small Business Development Center Business Library, 188 Madison Ave., MARCH 17 Click on “Events” getting into a top MBA program. 8 p.m. holds workshop on financing your room 018. Free Church Avenue Merchants Block to 9 p.m., 420 Lexington Ave., suite business. 10 a.m. to 1:30 p.m., Lehman (212) 592-7000. Association holds workshop on starting a business. 3:00 p.m. to 5:30 p.m., 884 Flatbush Ave., second floor. Free. Preregistration required. (718) 282-2500. MARCH 18 Five O’Clock Club holds seminar on getting the most out of your contacts. 6:30 p.m. to 8:30 p.m., 11 Penn Plaza, fifth floor. Fee: $50. (914) 788-5482 or ELEVATE AMERICA [email protected]. MARCH 18 Jones Lang LaSalle and R.Y. To grow the economy: build workforce skills, Management Co. hold Institute of Real Estate Management’s second annual asset- and property-management create jobs, promote entrepreneurs. symposium. 8 a.m. to 6 p.m., New York Helmsley Hotel, 212 E. 42nd St., third floor. Fee: $149 members, $199 nonmembers. (212) 944-9445 or [email protected]. MARCH 19 Sterling National Bank holds seminar on fraud recovery. 8 a.m. to 10 a.m., 650 Fifth Ave., fourth floor. Free. Preregistration required. (212) 575-3404 or [email protected]. MARCH 20 Local Development Corp. of East New York holds conference on marketing and sales strategies in a lean economy. 8 a.m. to 4 p.m., St. Francis College, 180 Remsen St. Fee: $35 for individual, $50 for two if registered by March 12; $50 for all after that date. (718) 385-6700 or With the stimulus bill signed last month, Congress and the administration have taken [email protected]. important steps to bolster the economy and put millions of people back to work. MARCH 23-MARCH 29 We at Microsoft are committed to help. MARCH 25 State Bank holds seminar on escrow account management and the new rules. For years, we’ve worked with other businesses and community-based partners to broaden 8:30 a.m. to 10:15 a.m., Yale Club, 50 access to job opportunities through information technology education and training initiatives. Vanderbilt Ave., Saybrook room. Free. (516) 465-2366 or Now, we’re expandingthese efforts. [email protected]. MARCH 25 Microsoft is workingwith the state of New York and other governments to launch Elevate Brazilian-American Chamber of America: a new offeringof no-cost and low-cost resources that will help more workers Commerce holds breakfast on the tax aspect of Brazilian investment in the acquire technology skills and certifications needed in today’s changing economy. Our goal United States. 8 a.m. to 11 a.m., Dewey is to help train 2 million people. & LeBoeuf, 1301 Sixth Ave. Fee: $50 members, $100 nonmembers. To meet specific community needs, governments can choose from a range of Elevate (212) 751-4691. MARCH 26 America resources: New York Society of Security Analysts holds seminar on the investment process • Expanded access to basic technological literacy and skills training. with keynote speaker David Darst, managing director at Morgan Stanley. • Intermediate technology skills training courses, instructor-led and online, plus selected 5:30 p.m. to 8:30 p.m., 1177 Sixth Ave., second floor. Fee: $75 members, $115 certification exams. nonmembers. (212) 541-4530 or [email protected]. • Access to a new Web portal that will help guide individuals to training that positions —maia blume them for success in the economy today, and tomorrow. Microsoft believes America can and will return to prosperity and unmatched global TO LIST YOUR EVENT Crain’s lists business meetings online and includes competitiveness, if we all work together. them in the print edition on a space-available basis. Events in New York City with admission fees of less than $300 are considered for the print publication. m Listings can be submitted only through the Crain’s Web site. To submit a calendar listing, go to www.crainsnewyork.com and click on “Events.” Learn more at microsoft.com/issues. Sponsors have a choice of several free or paid list- ing options. All business events will be posted online within two business days. © 2009 Microsoft Corporation Crain’s can neither confirm receipt of listings nor say if or when event listings will appear in the print edition.

14 | Crain’s New York Business | March 9, 2009 CNYB 03-09-09 A 15 3/5/2009 5:36 PM Page 1

SMALL BUSINESS INSIDE HOW TO spot deadbeats before they run up debts PAGE 19 ➚ON THE WEB @ WWW.CRAINSNEWYORK.COM/SMALLBIZ Sign up for New York City’s newest resource for entrepreneurs, a twice-weekly newsletter covering the small business community Grabbing the cost-cutting ax Recession forces companies to get creative about expenses based advisory firm. BY ANNE FIELD One key to the effort is a new in- tolerance for waste. Many business- when it comes to managing his es find they simply can’t let things expenses, Jeffrey Maron is trying slide the way they did in better every trick in the book—and then times. Mr. Maron is typical. For some. starters, he’s making it clear that Since late last year, Mr. Maron, spray painters have to do the job president of Stone Services Corp., a right the first time. Before, he was 23-employee Bronx-based electro- more lenient if they made mistakes. static spray-painting company, has He has also cracked down on per- been engaged in a steady cost-cut- sonal use of company trucks. ting campaign, using a potpourri of tactics, many of which he’s never Targeting payroll processing had to resort to before. of course, as you’d expect, That includes everything from companies are scouring their scouring phone bills for over- expenses to unearth unnec- charges and monitoring how essary costs. But Kenneth fast truckers drive, to McDermott, chief finan- mothballing two trucks cial officer of Gracious in order to reduce in- SURVIVAL Home, a 450-employee surance costs. Total STRATEGIES retailer with three home- savings: about 30% of accessories stores in Man- his monthly costs. CASE STUDY Russ hattan, found a particu- “We’re looking at & Daughters fishes larly effective way to do areas we just never around for expend- that. Same-store sales are thought about before,” able expenses off about 15% at the com- says Mr. Maron, who PAGE 16 pany, which has annual expects revenues to de- sales of about $70 million. cline “a lot more” in 2009 than the Earlier this year, Mr. McDermott 7% drop to $4.2 million in 2008. hired Ms. Mullan to trim his For Mr. Maron, as well as many $100,000 in annual payroll process- other small company owners in ing fees. New York feeling the recession’s First, Ms. Mullan discovered the pinch, cost-cutting has become a company could shave costs consider- serious business. But facing signifi- ably by unbundling many of its out- cant, sudden declines in revenue, side providers’ services and asking NEW WAYS TO SAVE: “We’re they’re also being forced to get cre- for only the most essential features. looking at areas we just never thought about before,” says ative—to try a range of tactics out- “These were add-ons we simply Jeffrey Maron of Stone side the usual wage freezes, travel didn’t need anymore,” says Mr. Services, a spray-painting cutbacks or even layoffs. “They’re McDermott. Then, the company company. leaving no stone unturned,” says put out a bid to a handful of competi- Sheila Mullan, director of Expense tors for just those basic services.The

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March 9, 2009 | Crain’s New York Business | 15 CNYB 03-09-09 A 16 3/5/2009 5:37 PM Page 1

REPORT SMALL BUSINESS Keeping quality up, costs down Lower East Side fixture Russ & Daughters “Year-end caviar sales he needed by the week. In flusher are a significant part of our times, his suppliers might have told FAMILY OWNERS: Joshua Tupper and Nikki has been careful not to cut too deeply business,but in this climate him no, but they agreed. Federman of Russ & Daughters. I didn’t know how much to “It worked great,” says Mr. Tup- cousin Nikki Federman,is order,” he says.“You don’t per, who says he sold a little less BY ANDREW MARKS the fourth generation to want to run out,but if you caviar than usual, but the tighter in- maintaining the “experience” of run the venerable Lower SURVIVAL end up with too much, ventory control kept profits at 2007 shopping, is reluctant to cut corners last december, getting ready for East Side smoked-fish STRATEGIES you’re out of luck.” levels. with its two biggest expenses: em- the annual holiday rush on caviar at emporium—worried just Instead, Mr. Tupper Thus is life for a small business in ployees and fish. Russ & Daughters was anything but how much demand there’d be for negotiated with his suppliers so they a frightening economic climate. “People come to us for two rea- traditional. such a luxury product in the midst of would set aside the usual amount of The 95-year-old Russ & Daugh- sons: the quality of our fish and per- Joshua Tupper—who,along with a severe recession. caviar,but he would order only what ters, which depends heavily on sonal interaction with staff, some of whom have been here for more than 30 years. You can’t compromise that,” Mr. Tupper says. Save beyond IRAs and 401(k)s. Instead, the business has sought ways to cut costs without, as small business consultant Edward Rosen- feld puts it, “cutting [its] own throat in the process.” Mr. Rosenfeld, pres- ident of Manhattan-based Foresight Advisors and a former family-busi- Save more for retirement. ness owner himself, notes that until last October, about half of his busi- ness consisted of financial planning for small businesses. Now, most of Defer taxes. Repeat. his work is devoted to helping clients run leaner. “In this economy, people are finding that just having a good ®1 business isn’t necessarily enough to Fidelity Personal Retirement Annuity stay in business,” he says. Russ & Daughters and others like it can find a lot of low-hanging fruit for savings,Mr.Rosenfeld says. In today’s economy, you may be concerned not only about your business, but your “It’s important to take the time to retirement, too. Now you can seek long-term growth for your retirement savings with set savings goals and figure out a deferred variable annuity that’s both tax smart and cost effective. where you can achieve them.” Aiming to be flat at russ & daughters,the only goal 3 reasons to choose the Fidelity Personal Retirement Annuity so far is to keep the business— whose annual sales are estimated by You save tax deferred, so your savings can grow more quickly. Dun & Bradstreet at approximately $2.5 million—from slipping. “We’ve grown 10% annually the last Our costs are among the lowest in the industry,2 so more of your money works five years, but this year I’ll be happy for you. (Some annuities include a guaranteed minimum death benefi t. Ours does not, as to be flat and keep our core cus- it can lead to higher costs.) tomers,” says Mr. Tupper. Thus far, he’s taken an ad hoc, “seat-of-the pants approach” to We’ve kept it simple, without all the options and riders that can make annuities cost-cutting, from reducing his 10 more complex than you need. employees’ hours and staggering their shifts in order to stay open lat- er, to extra training for his salmon Already own an annuity? Ask our Annuity Specialists for a free cost comparison report. slicers. “We’re happy if we sell 85 of every 100 pounds of salmon we buy. The waste can vary by 10%,depend- CALL 866.337.3675 ing on who’s slicing,” he says. Mr. Tupper wouldn’t consider CLICK Fidelity.com/annuities42 to open an account online changing how he gets his fish, but he’s tinkering with the way it’s pack- VISIT Investor Centers located nationwide aged. Thinner bags, and a shift to less expensive, non-microwavable containers for items like tuna salad and chopped liver,along with a shift to a second supplier and pricing competition have yielded savings of about 10%. Reducing health insurance costs “is also on our radar, but it’s such a 1 Fidelity Personal Retirement Annuity (Policy Form No. DVA-2005, et al.) and, in New York, Personal Retirement Annuity (Policy F orm No. EDVA-2005, et al.). Fidelity Brokerage hassle we haven’t really looked at it Services, Member NYSE, SIPC, and Fidelity Insurance Agency, Inc., are the distributors. 2 According to Morningstar, Inc., Fidelity Personal Retirement Annuity’s annual annuity charge of 0.35% is among the lowest 1% co mpared to the industry average of 1.39% for yet,” says Mr. Tupper. nongroup open variable annuity contracts as of 12/31/07. Underlying fund expenses also apply. They should,says Mr.Rosenfeld, Any gains are taxed at ordinary income tax rates when withdrawn. In addition, taxable amounts withdrawn prior to age 59½ may be subject to a 10% IRS penalty. who typically helps small businesses Before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment save about $200 per employee per options. Call or write to Fidelity or visit Fidelity.com for a free prospectus containing this information. Read it carefully. month by aggressively shopping for Annuities are subject to investment risk. Your principal value may decline. Insurance products are issued by Fidelity cheaper insurance. “Most clients ® don’t even realize they’re not locked Investments Life Insurance Company (FILI) and, in New York, by Empire Fidelity Investments Life Insurance Company, into long-term contracts,and it’s not New York, N.Y. FILI is licensed in all states except New York. The contract’s fi nancial guarantees are solely the hard to change health plans from responsibility of the issuing insurance company. 514152.1.0 one month to the next, let alone re- evaluate annually,” he says.

16 | Crain’s New York Business | March 9, 2009 © 2009 Liberty Mutual Group. Responsibility. What’s your policy? your What’s Responsibility. THERE ARE ALWAYS NEW ITEMS ON THE MENU HERE. MENU ON THE NEW ITEMS ALWAYS ARE THERE WE HELPED MAKE SURE ONE OF THEM ISN’T HEPATITIS A. MAKEWE HELPED SURE ONE OF THEM ISN’T HEPATITIS GENERAL LIABILITY COMMERCIAL AUTO AUTO GENERAL LIABILITY COMMERCIAL COMP UMBRELLA WORKERS PROPERTY When a restaurant chain discovered one of its food servers one of A, Hepatitis immediately contracted chain discovered they When a restaurant made two calls. alertOne to the local health department, and the second alert helped identify to We us. patrons and recommended while putting proper treatment exposed the minds of those not exposed liability from the incident. the risk and our customer’s the disease spreading, This minimized of rest. to keeping responding quickly, it’s Whether its good reputation. chain protect Which helped the restaurant your protect committed helping you to we’re protocols, litigation stringent informed, or adhering to you visit libertymutualgroup.com/gl. more information For our policy. That’s business. Project6 3/3/09 12:03 PM Page 1 Page PM 12:03 3/3/09 Project6 CNYB 03-09-09 A 18 3/5/2009 5:39 PM Page 1

REPORT SMALL BUSINESS

solidating their business with one of his orders. A few months ago, vendor. “Suppliers are hungry,” says however, he decided to investigate Breaking out the ax Ms. Mullan. “If they can substan- the rates of other providers and tially increase their business with made a surprising discovery. One you, they’ll jump through hoops to company was able to deliver to Continued from Page 15 When a garbage pickup company do that.” Libya for about $200, compared result: Mr. McDermott chose a new asked Mr. Maron for a 25% rate in- At the same time, the opposite with the almost $5,000 he was pay- provider at a 40% reduction in cost. crease, for example, he politely de- may be true: It may pay to switch to ing. Now, Mr. Chan is using four ELLIOT FREAD invested in new In general, companies are look- clined. Instead, he proposed a 5% more suppliers. That’s what Julius companies, hiring each for a differ- equipment for better efficiency at ing for discounts wherever they can hike and a two-year contract.“Oth- Chan, president of Julius Bridal, a ent part of the world. Bimmy’s Food Made With Love. and, most important, not accepting erwise, we said we’ll go to another four-year-old home-based bridal While tracking the shipments standard price hikes. That’s espe- company,” he says. The supplier design company in Queens, found. takes considerably more time, the cially true when they deal with long- agreed to the terms. He ships his dresses, which he sells effort is worthwhile. “That’s the GOOD PAYOFF time suppliers who may be used to primarily over the Internet all over tradeoff,” says Mr. Chan. SOMETIMES YOU have to spend to demanding increases every year. Consolidating helps the world. Like Mr.Chan,Stacey Haggerty, save. That’s the philosophy of Another tack is to lock in discounts in some cases, companies are real- Until recently, Mr. Chan used who launched a Web site last July Elliot Fread, chief executive of in exchange for a longer contract. izing savings of 20% to 30% by con- one shipping company to deliver all aimed at multicultural families, also Bimmy’s Food Made With Love. Recently, Mr. Fread, whose 80-employee Long Island City, Queens-based food wholesaler makes wraps, salads and the like, invested in three slicing machines ranging in price from $40,000 to $100,000. The new equipment cuts meat faster and with more exact portion control. Why did he do it? Mr. Fread figures the equipment will allow the company to do a lot more with fewer employees. Plus, the machines are much safer than the older versions. Mr. Fread estimates it will take about a year for the investment to pay off. “Part of me thought I was out of my mind for spending all this money at a time when everyone is cutting costs,” says Mr. Fread, whose company had about $8 million in sales last year.

runs her company from her home in Queens. Since her firm, HYB Fam- ilies Inc., has no employees and little overhead, she’s able to cut costs by hiring Davinci Virtual, a Salt Lake City company providing virtual of- fice services. Instead of paying $500 to $1,000 a month to rent temporary office space, she has phone calls YOUR BUSINESS IS YOUR LIFE’S WORK. routed through a Davinci number to her own cell, holds meetings in a conference room at the company’s Park Avenue location, and uses that OUR BUSINESS IS TO HELP KEEP IT address for company mail.Total cost: about $150 a month. FINANCIALLY PROTECTED. Beware of cutting muscle small business experts warn,how- ever, that companies also run the danger of going overboard.Excessive slashing can end up hurting a firm’s ability to provide competitive cus- tomer service, entertain important clients or respond quickly to a spike At Guardian, we understand your small business needs. Your Guardian in orders. “There’s a delicate balance representative works right alongside you to help you make the right to figure out how much is too much,” financial decisions. Our wide range of financial and employee benefit says Avi Deitcher, chief executive of solutions helps you attract and keep key talent, protect your income, Atomic Inc., a White Plains-based and ensure a secure retirement for you and your employees. Our firm that specializes in helping fi nancial stability cultivated over 149 years, prudent risk management, clients find operational efficiencies. “You can shoot yourself in the foot if and reputation for doing the right thing mean we’ll be there for you you promise and can’t deliver.” now and in the future. To get the right solutions for your business The key to avoiding that predica- needs, visit us at www.GuardianLife.com. ment, according to Jeannette Hob- son, New York City group chair of Vistage International, which runs chief executive peer groups, is to ex- L I F E I N S U R A N C E D I S A B I L I T Y I N C O M E I N S U R A N C E L O N G T E R M C A R E I N S U R A N C E I N V E S T M E N T S R E T I R E M E N T E M P L O Y E E B E N E F I T S amine each expense as a percent of revenue.“If the relationship between ©2009. Disability income products and Long Term Care Insurance underwritten and issued by Berkshire Life Insurance Company of America, Pittsfi eld, MA, a wholly owned stock subsidiary of The Guardian Life Insurance Company of America (Guardian), New York, NY. Products not available in all states. Product provisions and features may vary from state to state. the dollars spent and the amount of Investments are offered through Park Avenue Securities LLC (PAS), 7 Hanover Square, New York, NY 10004. PAS is an indirect wholly owned subsidiary of The Guardian Life Insurance Company of America, New York, NY. money you’re making is out of PAS is a member FINRA, SIPC. Financial information concerning The Guardian Life Insurance Company of America as of 12/31/07 on a statutory basis: Admitted Assets = $28.3 Billion; Liabilities = $24.6 Billion (including $20.8 Billion of Reserves); and Surplus = $3.7 Billion. whack, then you know you need to change something,” she says.

18 | Crain’s New York Business | March 9, 2009 Guardian-Sponsorship_CRAINS_JrP.indd 1 3/3/09 1:11 PM CNYB 03-09-09 A 19 3/5/2009 5:41 PM Page 1

REPORT Our Past Experience HOW-TO Ensures Your Future Success Skirt shaky clients to avoid To Do List: 1. Get reliable, affordable Business Class Phone deadbeats’ debt 2. Add High-Speed Internet and/or Cable TV

with a history of problems, they 3. Enjoy the convenience of Careful checks aren’t fail-safe and can’t be used up front can stop without a prospect’s permission. Time Warner Cable Business Class Referrals from professional col- problem accounts leagues or other customers can go before they start only so far. Here are some practical strate- gies from New York City entrepre- BY ELAINE POFELDT neurs as well as professionals who advise them on how to avoid non- earning the art of paying clients. spotting clients who can’t or won’t pay their TIP 1 bills, before they rack up Meet all prospects in person. bad debts, is an essential Lsurvival tool for small businesses in charles mccormick, a partner in a recession.Managing partner Sedef small midtown law firm McCormick Onder of The Halo Project Inc., a & O’Brien,won’t take on new clients www.twcbc.com/NYC 1.877.227.8711 small creative serv- without holding an

ices and marketing initial meeting at 17485-17754-BScraines_jnl communications his office. Through business in Man- experience, he has hattan, has mas- learned that those tered it. who show up are The company, more serious about which employs six working togeth- full-time workers er—and more like- and a handful of ly to pay their contractors, pro- bills—than tele- tects itself from po- phone-only clients. tential nonpayers “It’s a wheat- by requiring a 50% from-the-chaff retainer on projects separating mecha- and detailing the nism,” he says. CORKING THE WHINE: Business expected charges psychologist Debra Condren won’t take The meetings for the full project clients who are chronically dissatisfied. also give Mr. Mc- at the outset. Ex- Cormick a chance cept in the case of to assess potential established clients, the team starts prospects’ fit with the firm more work only when the initial payment thoroughly than he could from a is received. distance.In the end,fewer than 10% “You are assessing whether there of clients default on their bills, in a is a readiness to be in business with field in which many firms collect you,” Ms. Onder says. only 50 cents on the dollar, he says. If a client doesn’t pay an invoice on time, a Halo Project staffer fol- TIP 2 lows up by phone before the situa- Steer clear of chronic tion spirals out of control. complainers. “It takes a lot of diplomacy,” says Ms. Onder, who works with clients many industries have their own ranging from nonprofits to pharma- versions of restaurant-goers who ceutical companies. She has found grouse about the food anytime they that in today’s credit-starved econ- dine, to try to get free meals. Sniff- omy, some companies are simply ing them out before you do any work waiting until the last minute to send for them is the best way to avoid a check. “The moment someone having to chase down payments raises a flag, it immediately gets they will typically refuse to make. processed,” she says. “If someone is approaching you The result: Halo Project only as a prospective new client and they rarely finds itself with payments that tell you they’ve been through two or are 60 days past due. three other companies that were ter- Few entrepreneurs can afford to rible and didn’t do the job they take a relaxed attitude toward poten- promised, it can be a red flag, espe- tially shaky accounts as the risk of cially if they’ve never been satisfied defaults grows in today’s economy. with anyone they’ve worked with,” Bankruptcies rose 30% in the fiscal says Dr. Debra Condren, a business year ended in September, according psychologist based in Manhattan to the Administrative Office of the who coaches entrepreneurs.“I won’t United States Courts, which tracks take people like that.” both business and personal filings. What if you misjudged a new While traditional tools like cred- client who is now inundating your it checks can help you avoid clients See SKIRTING on Page 21 March 9, 2009 | Crain’s New York Business | 19 CNYB 03-09-09 A 20 3/5/2009 5:43 PM Page 1

REPORT SMALL BUSINESS NYC’s Largest Business Improvement Districts Ranked by assessment budget 2009 No. of assessment No. of city businesses budget blocks in located in Rank BID Phone/Web site Top executive (in thousands) 1 district district Year est. Services provided Geographical boundaries

Alliance for Downtown New York Inc. (212) 566-6700 ElizabethH. Berger $13,000.0 113 1,046 1995 Public safety, environmental City Hall to the Battery, between the East 120 Broadway www.downtownny.com President improvements and beautification, River and West St. 1 New York, NY 10271 economic development, social services Grand Central Partnership (212) 883-2420 Alfred C. Cerullo III $11,565.5 70 23,000 1988 Sanitation, public safety, streetscape Irregular borders from 54th St. to 35th St., 122 E. 42nd St. www.grandcentralpartnership.org President, chief beautification, visitor assistance between Second Ave. and Fifth Ave. 2 New York, NY 10168 executive Times Square Alliance (212) 452-5200 Tim Tompkins $10,400.0 33 5,000 2 1992 Community development, 53rd St. to 40th St., between the west side of 1560 Broadway www.timessquarenyc.org President neighborhood marketing and Sixth Ave. and Eighth Ave., including 3 New York, NY 10036 promotion, supplemental security, Restaurant Row to Ninth Ave. sanitation 34th Street Partnership (212) 719-3434 DanielA.Biederman $9,291.5 31 5,000 1992 Security and sanitation, tourism and 35th St. to 31st St., between Park Ave. and 500 Fifth Ave. www.34thstreet.org President visitors' services assistance, 10th Ave. 4 New York, NY 10110 streetscape improvements, operations of two public parks Fashion Center (212) 764-9600 Barbara Randall $5,000.0 25 6,000 1993 Public safety, street cleaning, capital 41st St. to 35th St., between Fifth Ave. and 209 W. 38th St. www.fashioncenter.com President improvements, economic Ninth Ave. 5 New York, NY 10018 development MetroTech (718) 488-8200 Michael Weiss $2,624.5 25 200 1992 Sanitation, public safety, business South side of Tillary St. to both sides of 4 MetroTech Center www.metrotechbid.org Executive director support, open space development Willoughby St., between both sides of 6 Brooklyn, NY 11201 and maintenance Flatbush Ave. and both sides of Adams St. Fifth Avenue (212) 246-6256 Thomas Cusick $2,562.0 17 3,000 1993 Supplemental security, supplemental Both sides of Fifth Ave. between 61st St. and 630 Fifth Ave. www.fifthavenuebid.com President sanitation, tourist assistance 46th St., and both sides of 57th St. between 7 New York, NY 10111 Madison Ave. and Sixth Ave. East Midtown Partnership (212) 813-0030 Rob Byrnes $2,220.0 48 2,700 2002 Beautification, marketing, 63rd St. to 49th St., between Second Ave. and 875 Third Ave. www.eastmidtown.org President sanitation, security Madison Ave. 8 New York, NY 10022 Lincoln Square (212) 581-3774 Monica Blum $1,800.0 33 220 1996 Sanitation, security officers/ Broadway between 70th St. and the north side 1841 Broadway www.lincolnsquarebid.org President ambassadors, beautification, visitor of 58th St.; Columbus Ave. between 68th St. 9 New York, NY 10023 services and 60th St.; east side of Amsterdam Ave. between 70th St. and 60th St.; two blocks of Central Park West Madison Avenue (212) 861-2055 Matthew A. Bauer $1,757.0 29 1,100 1996 Security, sanitation, capital Madison Ave. and its side streets, between 59 E. 79th St. www.madisonavenuebid.org President improvements, marketing and 86th St. and 57th St. 10 New York, NY 10075 promotion Flatiron/23rd Street Partnership (212) 741-2323 Jennifer A. Brown $1,600.0 38 4,500 2006 Supplemental sanitation and 21st St. to 28th St., between Sixth Ave. and 27 W. 24th St. www.discoverflatiron.org Executive director security, marketing, public Park Ave.; Lexington Ave. from 22nd St. to 11 New York, NY 10010 improvement projects, homeless 26th St., including the blocks east of outreach Lexington Ave. from 22nd St. to 25th St. Fulton Mall Improvement Association (718) 403-1608 KevinW.Tolan $1,501.0 17 150 1976 Sanitation and maintenance, Fulton St. from Boerum Place/Adams St. to 15 MetroTech Center www.fultonstreet.org Business services security, marketing and promotions, Flatbush Ave.; DeKalb Ave. from Albee 12 Brooklyn, NY 11201 manager capital improvements Square West to Flatbush Ave. Union Square Partnership (212) 460-1200 Jennifer E.Falk $1,439.5 18 250 1984 Neighborhood improvement Both sides of 14th St., between the western 4 Irving Place www.unionsquarenyc.org Executive director services, government liaison, corner of First Ave. and the eastern corner of 13 New York, NY 10003 economic and retail development Sixth Ave.; Union Square Park itself; properties around Union Square Park north to 17th St. and Union Square East and West Village Alliance (212) 777-2173 Martin Dresner $984.9 44 402 1993 Supplemental sanitation and graffiti Sixth Ave. from Fourth St. to 12th St.; Eighth 8 E. Eighth St. www.villagealliance.org President removal, supplemental safety St. from Sixth Ave. to Second Ave. and St. 14 New York, NY 10003 officers, marketing/promotion, Marks Place; University Place from Eighth St. capital improvements to 13th St.; Broadway from Eighth St. to 10th St. Bryant Park Management Corp. (212) 768-4242 DanielA.Biederman $900.0 6 n/d 1983 Security and sanitation, capital 42nd St. to 40th St., between Fifth Ave. and 500 Fifth Ave. www.bryantpark.org President maintenance and park Sixth Ave. 15 New York, NY 10110 improvements, horticultural program, special events for Bryant Park Jamaica Center (718) 526-2422 MichaelHirschhorn $737.5 30 300 1979 Sanitation and street maintenance, Jamaica Ave. between 169th St. and Sutphin 90-50 Parsons Blvd. www.jamaicacenter.org President marketing and promotion, business Blvd.; Union Hall St. between Jamaica Ave. 16 Jamaica, NY 11432 assistance and retail attraction, and Archer Ave. advocacy 125th Street (212) 662-8999 Barbara Askins $719.8 5 210 1993 Sanitation, marketing and 125th St. between Fifth Ave. and Morningside 271 W. 125th St. www.125thstreetbid.com President, chief promotion, security lighting, Ave. 17 New York, NY 10027 executive strategic planning Court-Livingston-Schermerhorn (718) 403-1633 SethTaylor $700.0 14 200 2007 Sanitation, landscaping, capital Schermerhorn St. and Livingston St., 15 MetroTech Center www.clsbid.org Business services improvements, retail development stretching from Flatbush Ave. to Court St.; 18 Brooklyn, NY 11201 manager services Court St. stretching from Atlantic Ave. to Joralemon St. Washington Heights District (212) 928-3400 George Sanchez $517.4 20 252 1983 Supplemental sanitation, economic 181st St. between Amsterdam Ave. and Fort Management Association www.washingtonhgtsbid.org Executive director development workshops/seminars, Washington Ave.; St. Nicholas Ave. between 19 1456 St. Nicholas Ave. holiday lighting, marketing and 183rd St. and 179th St.; Broadway between New York, NY 10033 promotion 182nd St. and 179th St. 47th Street - The Diamond District (212) 302-5739 MichaelGrumet $500.0 1 2,700 1997 Security, promotions, sanitation, 47th St. between Fifth Ave. and Sixth Ave. 580 Fifth Ave. www.diamonddistrict.org Executive director capital improvements and 20 New York, NY 10036 maintenance Fordham Road (718) 562-2104 Wilma Alonso $500.0 16 300 2005 Sanitation, marketing and East Fordham Road between Third Ave. and 2488 Grand Concourse www.fordhamroadbid.org Executive director promotions, capital improvements, Jerome Ave. 20 Bronx, NY 10458 business advocacy and assistance

Sources: Assessment budgets were provided by the Department of Small Business Services. All other information was provided by the BIDs. Additional research by Denise Southwood, Maia Blume and Bhakti Mamtora New York City includes the Bronx, Brooklyn, Manhattan, Queens and Staten Island only. Crain’s New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there isnoguarantee that the listings are complete. To qualify for this list, business improvement districts must be located in New York City. In case of a tie, BIDs are ranked in alphabetical order. n/d Not disclosed. 1-Fiscal year ending June 30. 2-BID estimate. ➚➚ PURCHASE THIS LIST AND ALL OF CRAIN’S BUSINESS LISTS @ WWW.CRAINSNEWYORK.COM/LISTS 20 | Crain’s New York Business | March 9, 2009 CNYB 03-09-09 A 21 3/5/2009 5:42 PM Page 1

REPORT SMALL BUSINESS

dollars to do a thorough background Skirting shaky clients check,” he recommends. THINKING LIKE A DETECTIVE TIP 5 IF YOU PLAN to invest a fair amount of time and money in a new account, hire Continued from Page 19 doesn’t require the client’s permis- Spell out charges up front. a licensed private investigator to do a consumer public filings check, staff with unfounded complaints? sion—costs $4.95 per report. recommends Thomas Martin, who works with many New York City clients as “Stop work immediately,”advises “It gives you some insight into clients sometimes fall behind on president of Martin Investigative Services, based in Newport Beach, Calif. For Ann Hayes, president of Investiga- someone’s check-writing behavior, paying for hourly services because a cost of around $150 to $200, the report will give you information on any tive Management Group, a mid- which can be a harbinger of things they lose track of how much work is bankruptcies, judgments, notices of defaults, tax liens and problems with the town firm that helps many business- to come,” says Mr. Page. being done. So pre-establishing set IRS that someone may be facing, he says. es perform due diligence for deals. fees for each phase of a job often For added assurance, hire an attorney service to do a criminal and civil TIP 4 Doing so will minimize the size works better, says Mr. Strang. check in the county where the individual resides, and to check his traffic- of the payment you need to collect. Investigate the legal history. “Clients today want to know how violations record, says Mr. Martin. If you keep trying to please a client long a job will take, what is included “It tells you a little bit about his character,” he says. “Some 7% to 8% of who will never be satisfied, you’ll some deadbeats make it a practice and what the job will cost,” he says. the people we run owe money and have failures to appear. I don’t think I want only addto your potential losses,she to skip out on payments to small “They don’t like surprises.” notes. companies that they don’t think will If you offer a recurring service, to take on someone like that.” have the time or money to pursue charging clients a project-based fee The usual cost of the research is around $20, Mr. Martin says. A law firm TIP 3 the debts in court. A prospect’s legal once a month in advance is also a or a licensed private investigator can also provide this service, but the fees are Watch out for bad checks. history may provide hints of such a smart practice, says Dr. Condren. typically several hundred dollars. tendency, if any small victims have She uses this approach at her firm, a potential client’s history of actually gotten angry enough to sue. AmbitionIsNotADirtyWord.com. bounced checks won’t show up in “If you’re reading about people “People prefer this model, be- more limited budgets, rather than hard to reach when a bill comes due, credit reports, but it’s worth looking who aren’t getting paid for three or cause they don’t have to pay at the forging ahead with plans that have stop work until you connect, say into. four months, that’s bad news,” says end of every session,” she says. become too expensive. many seasoned business owners. To find out if someone is mishan- Bob Strang, chief executive of In- Opening a merchant account so “We make sure we put together “Most professional people in dling his checking account, you can vestigative Management Group that you can accept credit cards will programs and recommendations the due course of business will re- join the American Apartment Own- and Ms. Hayes’ partner. make it easier for customers to pay within the scope of what they can af- turn calls and e-mails,” says Mr. ers Association at www.theaaoa.org A private-investigations firm you, she adds. ford,” Ms. Onder says.“We’re never McCormick, the lawyer. for free, regardless of your profes- should be able to do a very basic le- putting ourselves in a position When he doesn’t hear from a sion, says Dan Page, vice president gal-records search for several hun- TIP 6 where our exposure is going to be previously communicative client of business development. dred dollars, Mr. Strang says. Stay flexible. very high.” within a reasonable period, he takes Membership gives you access “If a firm is taking on a job where action. to the TeleCheck Check Verifi- nonpayment could shut the business when clients mention monetary TIP 7 “The clients who disappear, cation Service, which will tell you down because of the manpower, re- cutbacks, Ms. Onder and her team Tune into communication gaps. don’t return phone calls or make if a consumer’s checks are being re- sources and time involved, they at Halo Project offer ideas on how to excuses are the ones who get sued,” turned. Using the service—which should spend a couple of thousand achieve the customers’ goals on should a client suddenly become he observes.

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March 9, 2009 | Crain’s New York Business | 21 nb10p22-23cls.qxp 3/6/09 4:35 PM Page 22

EXECUTIVE RECRUITER PUBLIC & LEGAL NOTICES POSITION AVAILABLE REQUEST FOR PROPOSALS Notice of Qualification of FSI NY Notice of Qualification of GS PEG Notice of Qualification of FGDI, L.L.C. Mkt Research Analyst 1540 LLC. Authority filed with Secy. of Employee Funds VI Advisors, LLC. Authority filed with NY Dept. of State for Manhattan RE firm. State of NY (SSNY) on 01/15/09. Authority filed with Secy. of State of NY on 1/21/09. Office location: NY County. Analyze trends, comparable sales & appraisals. Office location: New York County. LLC (SSNY) on 12/31/08. Office location: Princ. bus. addr.: 19901 N Dixie Hwy., Research buyers/owners. Manage database. formed in Delaware (DE) on NY County. LLC formed in Delaware Bowling Green, OH 43402. LLC F/T, M-F, BA in bus. admin/finance, 01/13/09. Principal office of LLC and (DE) on 12/22/08. SSNY designated formed in DE on 8/4/00. NY Sec. of RE license +2yrs exp req’d. Fax resume to DE address is: c/o Fillmore Capital as agent of LLC upon whom process State designated as agent of LLC Realty Marketing Assoc., Ltd Partners, Four Embarcadero Center, against it may be served. SSNY shall upon whom process against it may (646) 478-9640 Ste. 710, San Francisco, CA 94111. mail process to: 85 Broad St., NY, NY be served and shall mail process to: SSNY designated as agent of LLC 10004. DE address of LLC: 1209 c/o CT Corporation System, 111 8th upon whom process against it may Orange St., Wilmington, DE 19801. Ave., NY, NY 10011, regd. agt. upon NETWORK CABLING be served. SSNY shall mail process Cert. of Form. filed with DE Secy. of whom process may be served. DE to c/o Corporation Service Co., 80 State, P.O. Box 898, Dover, DE addr. of LLC: The Corporation Trust • Office Wiring • Voice • Data • Video State St., Albany, NY 12207-2543. 19903. Purpose: any lawful activity. Co., 1209 Orange St., Wilmington, DE • Surveillance • Lobbies • LCD & Arts. of Org. filed with Harriet Smith 19801. Arts. of Org. filed with DE Sec. Plasma Installations. Windsor, 401 Federal St., Dover, DE of State, 401 Federal St., Dover, DE 212-851-6983 Warnercable.net 19901. Purpose: Any lawful activity. ALICIA HALEGUA STYLE LLC 19901. Purpose: any lawful activity. Articles of Org. filed NY Sec. of State (SSNY) 9/16/08. Office in NY Co. PERSONALIZED Notice of Formation of GAGOSIAN SSNY desig. agent of LLC upon NOTICE OF FORMATION OF LIMIT- MATCHMAKING GALLERY OF LONDON LLC. Arts. of whom process may be served. SSNY ED LIABILITY COMPANY. NAME: Org. filed with Secy. of State of NY shall mail copy of process to 210 E. JAPY RESTAURANT LLC. Articles of (SSNY) on 11/8/99. Office location: NY 65th St., Unit 17L, NY, NY 10065, Organization were filed with the County. Principal office of LLC: 980 which is also the principal business Secretary of State of New York Madison Ave., NY, NY 10021.The lat- location. Purpose: Any lawful purpose. (SSNY) on 11/16/07. The latest date est date on which the LLC may dis- of dissolution is 12/31/2075. Office solve is 12/31/25. SSNY designated location: New York County. SSNY has as agent of LLC upon whom process BITS AND ATOMS, L.L.C. Art. of Org. been designated as agent of the LLC against it may be served. SSNY shall Filed Sec. of State NY 1/30/2009 Off. upon whom process against it may be Loc. New York Co. SSNY designated served. SSNY shall mail a copy of Notice of Formation of PRODIGY mail process to c/o Larry Gagosian, as agent upon whom process against process to the LLC, 111 Avenue C, CAPITAL GROUP, LLC. Arts. of Org. Gagosian Gallery, Inc. at the principal it may be served. SSNY to mail copy New York, New York 10009. Purpose: filed with Secy. of State of NY (SSNY) office of the LLC. As amended by Cert. of Amendment filed with SSNY on of process to THE LCC c/o Anthony For any lawful purpose. on 02/25/09. Office location: NY Townsend, 115 E 9th St, Ste. 10H, County. Principal office of LLC: 72 1/28/09, name changed to GAGOSIAN GALLERY INTERNATIONAL LLC. NY, NY, 10003. Purpose: Information Greene St., 2nd Fl., NY, NY 10012. technology consulting services. Notice of Qualification of AG MORT- SSNY designated as agent of LLC Purpose: Any lawful activity. GAGE VALUE PARTNERS MASTER upon whom process against it may be FUND, L.P. Authority filed with Secy. served. SSNY shall mail process to Notice of Formation of 349 W 53 Notice of Formation of Last Voices of State of NY (SSNY) on 02/06/09. the LLC at the address of its principal Property, LLC, Art. of Org. filed Sec’y (USA) LLC. Arts. of Org. filed with Office location: NY County. LP formed office. Purpose: Any lawful activity. of State (SSNY) 12/10/08. Office Secy. of State of NY (SSNY) on in Cayman Islands on 10/28/08. REAL ESTATE location: NY County. SSNY designated 11/24/08. Office location: NY County. Principal office of LP and Cayman as agent of LLC upon whom process SSNY designated as agent of LLC Islands address is: c/o Ogier Notice of Formation of ImageKing upon whom process against it may Fiduciary Services (Cayman) Ltd., Visuals LLC. Arts. of Org. filed with against it may be served. SSNY shall AUCTION mail copy of process to c/o Daniel be served. SSNY shall mail process Queensgate House, S. Church St., Secy. of State of NY (SSNY) on to: c/o Frankfurt Kurnit Klein & Selz, P.O. Box 1234, George Town, Grand 2/13/09. Office location: NY County. Stav, 349 W. 53rd St., NY, NY 10019. Purpose: any lawful activities. P.C., 488 Madison Ave., 10th Fl., NY, Cayman, Cayman Islands. SSNY SSNY designated as agent of LLC NY 10022, Attn: Jerrold B. Spiegel, designated as agent of LP upon upon whom process against it may Esq. Purpose: any lawful activity. whom process against it may be Notice of Registration of BRONSTEIN be served. SSNY shall mail process served. SSNY shall mail process to VAN VEEN & SCHUCK, LLP, a to: 227 E. 45th St., NY, NY 10017. c/o Angelo, Gordon & Co., L.P., 245 domestic LLP. Notice of Reg. filed Purpose: any lawful activity. Notice of Qualification of Prosium Park Ave., 26th Fl., NY, NY 10167. with the SSNY on 02/19/09. Office Fund Management, LLC, App. for Auth. The registered agent of the company location: NY County. SSNY has been filed Sec’y of State (SSNY) 11/24/08. upon whom and at which process Notice of Formation of RAINMAKER designated as agent upon whom Office location: NY County. LLC org. against the company can be served is MANAGEMENT, LLC. Arts. of Org. process against the LLP may be in DE 11/21/08. SSNY designated as Corporation Service Co., 80 State COMMERCIAL/NEW JERSEY filed with SSNY on 7/20/07. Office served. SSNY shall mail a copy of agent of LLC upon whom process St., Albany, NY 12207. Name and location: New York County. SSNY process to: The LLP, 150 East 58th against it may be served. SSNY shall address of each general partner are designated as agent of LLC whom St., 21st Fl., NY, NY 10155. Purpose: 25,000 Sq/ft mail copy of process to Attn: John H. available from SSNY. Arts. of Org. process against may be served. To Practice The Profession Of Law. Pettey, 111 Broadway, 10th Fl., NY, SSNY shall mail process to: c/o The filed with The Registrar of Companies, Avail. For Retail Lease NY 10006. DE office addr.: c/o CSC, Ground Fl., Citrus Grove Bldg., LLC, SHANE L. BENSON, 100 Notice of Formation of 72nd STREET 2711 Centerville Rd., Wilmington, DE Elmora Ave. Elizabeth, NJ Suffolk St., Apt 1A, New York, NY Goring Ave., George Town, Grand HOLDING LLC. Arts. of Org. filed with 19808. Cert. of Form. on file: SSDE, Cayman, Purpose: Any lawful activity. 10002. Purpose: all lawful activities. Secy. of State of NY (SSNY) on Townsend Bldg., Dover, DE 19901. (718) 332-1111 Jon Chiaro Purpose: any lawful activities. 12/12/03. Office location: NY County. Notice of formation of Limited Liability NOTICE OF FORMATION of Law SSNY designated as agent of LLC Company (LLC). Pamela Gale LLC. Office of Anna E. Vira, PLLC. Art. of Meadowlands East Rutherford upon whom process against it may NOTICE OF FORMATION OF LIMITED Articles of Organization with the Org. filed 01/27/09 with Sec of State 22,000 - 55,000 sq. ft. warehouse. be served. SSNY shall mail process LIABILITY COMPANY. NAME: 86 Secretary of State of New York (SSNY) of NY (SSNY). Office in NY County. to the LLC, c/o Empire Mgmt., 347 GUERNSEY, LLC. Articles of on 10/17/08. N.Y. Office location: NY 20 ft clear, 6 loading docks near SSNY designated agent for service of Fifth Ave., 16th Fl., Ste. 1600, NY, NY Organization were filed with the County. SSNY has been designated routes 3, 17 , 120 & NJ Tpke. Call process against the PLLC with copy 10016. Purpose: Any lawful activity. Secretary of State of New York as an agent upon whom process mailed to the PLLC: 1040 Ave. of the 212-925-4023 or [email protected] (SSNY) on 07/21/08. Office location: against it may be served. The Post Americas, Suite 1101, NY, NY 10018. Notice of Formation of NATO New York County. SSNY has been Office address to which the SSNY Purpose: law practice. BROTHERS LLC. Arts. Of Org filed designated as agent of the LLC upon shall mail a copy of any process TELECOMMUNICATIONS with Secy. Of State of NY (SSNY) on whom process against it may be against the LLC served upon her is Notice of Formation of STRATEGIC 9.10.08. Office location: NY County. served. SSNY shall mail a copy of C.O. the LLC. The principal address EXPERIENTIAL GROUP, LLC. Arts. SSNY designated as agent of LLC process to the LLC, c/o Shupack & of the LLC is 1 Central Park West, NY, of Org. filed with Secy. of State of NY upon whom process against it shall Hardy, LLP, 450 Seventh Avenue, NY 10023. Purpose character of LLC: (SSNY) on 02/18/09. Office location: be served. SSNY shall mail process: 13th Floor, New York, New York 10123. to engage in any lawful act or activity. NY County. Principal office of LLC: Joseph Rokacz, Esq. 400 West End Purpose: For any lawful purpose. 49 W. 27th St., 5th Fl., NY, NY 10001. Ave, Suite 10C, NY, NY 10021. Notice of Qualification of SAVVY SSNY designated as agent of LLC Purpose: any lawful activity. Notice of Qualification of Union DRINKS LLC. Authority filed with upon whom process against it may Avenue Advisors LLC. Authority filed Secy. of State of NY (SSNY) on be served. SSNY shall mail process Notice of Qualification of The Catalyst with Secy. of State of NY (SSNY) on 01/15/09. Office location: New York to Corporation Service Co., 80 State Credit Opportunity Fund, L.P. 1/16/09. Fictitious name in NY State: County. LLC formed in Delaware (DE) St., Albany, NY 12207-2543. AuthorityNotice of filedQualification with NY ofDept. Antipodean of State Union Avenue Advisors (GP) LLC. on 01/08/09. SSNY designated as Purpose: Any lawful activity. onAdvisors 2/4/09. LLC Office filed location: under the NY original County. Office location: NY County. LLC agent of LLC upon whom process LPname formed Antipodean in DE on Capital, 6/10/03. LLC, NY App. Sec. formed in Delaware (DE) on 1/12/09. against it may be served. SSNY shall NOTICE OF FORMATION of Study offor State Auth. designated filed Sec’y ofas Stateagent (SSNY) of LP SSNY designated as agent of LLC mail process to Patterson Belknap Bright Tutors LLC. Arts. Of Org. filed upon12/16/08. whom Office process location: against NY itCounty. may upon whom process against it may Webb & Tyler LLP, Attn: John E. with Secretary Of State of N.Y. beLLC served org. in and DE shall12/15/08. mail process SSNY des- to be served. SSNY shall mail process Schmeltzer III, Esq., 1133 Ave. of the (SSNY) on 12/30/08. Office location: theignated principal as agent business of LLC addr.: upon 767 whom to princ. bus loc.: The LLC, 527 Americas, NY, NY 10036. DE address New York County. SSNY designated Thirdprocess Ave., against 32nd itFl., may NY, be NY served. 10017. Madison Ave., 6th Fl., NY, NY 10022, of LLC: c/o Corporation Service Co., as agent of LLC upon whom process DESSNY addr. shall of LP:mail c/o copy Incorporating of process to Attn: Thomas Grossman. DE address 2711 Centerville Rd., Ste. 400, against it may be served. SSNY shall ServicesAttn: Eric Ltd.,Chen, 3500 499 S. Park DuPont Ave., Hwy., 10th of LLC: c/o United Corporate Wilmington, DE 19808. Arts. of Org. mail process to principal business Dover,Fl., NY, DE NY 19901. 10010. Name/addr. DE office addr.: of c/o Services, Inc., 874 Walker Rd., Ste. filed with DE Secy. of State’s Office, location: Study Bright Tutors c/o Bruce genl.CSC, ptr.2711 available Centerville from Rd., NY Wilmington, Sec. of C, Dover, DE 19904. Cert. of Form. Div. of Corporations, John G. Brittain 305 West 76th St. NY NY State.DE 19808. Cert. Cert. of LP of filed Form. with on DE file: Sec. filed with DE Secy. of State, 401 Townsend Bldg., Federal & Duke of 10023. Purpose: Any lawful activity. ofSSDE, State, Townsend P.O. Box Bldg.,898, Dover, Dover, DE DE Federal St., Dover, DE 19901. York St., Dover, DE 19901. Purpose: 1181771 m3-Tu a7 19903.19901. Purpose: any lawful activity.activities. Purpose: any lawful activity. Any lawful activity.

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PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION OF Notice of Qualification of MPGOP (CAYMAN) Notice of Qualification of ASHBURN- Notice of Qualification of JPMORGAN NOTICE OF FORMATION OF StillTasty LLC. ASHURST LLP. Notice of Reg filed III THRIFT AV-I L.P. Authority filed with HAM ROCK CAPITAL MANAGE- ASIA PRIVATE EQUITY FUND LLC. Article of Organization filed with the with NYS Dept of State Div of Secy. of State of NY (SSNY) on 01/13/09. MENT LLC. Authority filed with Secy. Authority filed with Secy. of State of Secretary of State of NY (SSNY) on Corporations on 11/29/07. Office location: New York County. LP of State of NY (SSNY) on 01/30/09. NY (SSNY) on 01/30/09. Office loca- 01/05/09 Office location NEW YORK Jurisdiction: England & Wales. LLP formed in Cayman Islands on 07/24/08. Office location: NY County. LLC tion: NY County. LLC formed in County. SSNY has been designated as registered at Companies House, Principal office of LP: 520 Madison Ave., formed in Delaware (DE) on 01/26/09. Delaware (DE) on 11/12/08. Principal agent upon whom process against it may London on 7/31/07. Address in 35th Fl., NY, NY 10022. SSNY designated as Principal office of LLC: 455 Central office of LLC: 245 Park Ave., NY, NY be served. The Post Office address to England: c/o The Partnership, agent of LP upon whom process against it Park West, 19C, NY, NY 10025-3847. 10167. SSNY designated as agent of which the SSNY shall mail a copy of any Broadwalk House, 5 Appold St, may be served. SSNY shall mail process to SSNY designated as agent of LLC LLC upon whom process against it process against the LLC served upon London EC2A 2HA. Office location: c/o Corporation Service Co., 80 State St., upon whom process against it may be may be served. SSNY shall mail him/her is C/O the LLC 51 West 84th New York County. Principal office of Albany, NY 12207-2543, registered agent served. SSNY shall mail process to process to c/o Corporation Service Street, Apt. 8. New York, NY 10024. LLP: 156 W 56th St, NY, NY 10019. upon whom and at which process may be the LLC at the principal office of the Co. (CSC), 80 State St., 6th Fl., Purpose of LLC: to engage in any lawful Secretary of State of New York served. Name and address of each general LLC. DE address of LLC: Corporation Albany, NY 12207. DE address of act or activity. Street address of Principal (SSNY) designated as agent of LLP partner are available from SSNY. Cayman Service Co., 2711 Centerville Rd., LLC: c/o CSC, 2711 Centerville Rd., Business location is: 51 West 84th Street, upon whom process against it may Islands address of LP: c/o Walkers SPV Ltd., Wilmington, DE 19808. Arts. of Org. Ste. 400, Wilmington, New Castle Apt. 8. New York, NY 10024. be served. SSNY shall mail process Walker House, Mary St., George Town, filed with Secy. of State of DE, Div. of Cnty., DE 19808. Arts. of Org. filed to LLP at the address of its principal Grand Cayman, Cayman Islands KY1-9002. Corps., John G. Townsend Bldg., 401 with Secy. of State of DE, Secy.of Notice of Formation of WHEATLEIGH office. Purpose: Any lawful activity. Arts. of Org. filed with Mr. Delano Federal St., Ste. 4, Dover, DE 19901. State Corp. Dept., Records Section, MANAGEMENT LLC. Arts. of Org. Solomon, Cayman Islands Registrar of Purpose: Any lawful activity. Townsend Bldg., Loockerman & filed with Secy. of State of NY (SSNY) NOTICE OF FORMATION of Exempted Limited Partnerships, Ground Fl., Federal St., Dover, DE 19901. on 01/23/09. Office location: NY Citrus Grove Bldg., Goring Ave., George Purpose: To invest in operating com- Amerisphere Mortgage Finance Notice of Formation of Clara Fox County. Principal office of LLC: 15 W. LLC. Arts. Of Org. filed with Secy. Town, Grand Cayman, Cayman Islands. panies and limited partnerships and 39th St., 8th Fl., NY, NY 10018. SSNY Purpose: Any lawful activity. Ricciardi, LLC. Arts. of Org. filed with other pooled investment vehicles that of State of N.Y. (SSNY) on Secy. of State of NY (SSNY) on designated as agent of LLC upon 11/17/08. Office location: New York make corporate finance and venture whom process against it may be 1/15/09. Office location: NY County. capital investments. County. SSNY designated as agent Notice of Formation of 19 WEST 70TH SSNY designated as agent of LLC served. SSNY shall mail process to of LLC upon whom process against STREET, LLC. Arts. of Org. filed with Secy. upon whom process against it may the LLC at the address of its principal it may be served. SSNY shall mail of State of NY (SSNY) on 12/15/08. Office be served. SSNY shall mail process Notice of Formation of MADISON office. Purpose: All lawful purposes. process to: 111 Eighth Ave. NY, NY location: New York County. Principal to: 123 Sullivan St., Unit #1, NY, NY HOTEL OWNERS LLC. Arts. of Org. 10011. Principal business location office of LLC: 27 W. 70th St., Apt. #2A, NY, 10012. Purpose: any lawful activity. filed with Secy. of State of NY NOTICE OF FORMATION of COREY 1125 South 103rd St. Omaha, NE NY 10023. SSNY designated as agent of (SSNY) on 07/08/08. Office location: DISTASIO, L.AC., PLLC. Articles of 68124. Purpose: Any lawful activity. LLC upon whom process against it may be NY County. Principal office of LLC: Organization filed with the Secretary 11167541 w.o. served. SSNY shall mail process to the Notice of Formation of HIP HOP USA 150 E. 52nd St., 10th Fl., NY, NY of State of NY (SSNY) on 02/20/09. LLC, c/o James Veltri at the principal office LLC, a domestic LLC. Arts. of Org. 10022. SSNY designated as agent of Office location: NY County. SSNY has Notice of Formation of Juneapple of the LLC. Purpose: Any lawful activity. filed with the SSNY on 12/02/08. LLC upon whom process against it been designated as agent upon whom Projects LLC. Articles of Organization Office location: NY County. SSNY has may be served. SSNY shall mail process against it may be served. been designated as agent upon filed with Secy. of State of NY (SSNY) Notice of formation of Limited Liability process to the LLC, c/o Livorno The Post Office address to which the whom process against the LLC may on February 2, 2009. Office location: Company. Name: Wight Partners Properties at the principal office of SSNY shall mail a copy of any be served. SSNY shall mail a copy of New York County. SSNY designated LLC. Articles of Organization filed the LLC. Purpose: Any lawful activity. process against the PLLC served process to: Curtis Sherrod, 323 West as agent of LLC upon whom process with the Secretary of State of New upon him is C/O the PLLC, 217 E. 22 138th St., Ste 300, NY, NY 10030. against it may be served. SSNY shall York (SSNY) on 1/7/2009. Office Street, #32, NY, NY, 10010. Date of Purpose: Any Lawful Purpose. NOTICE OF FORMATION of Blind mail process to the LLC, c/o Hecht & location: New York County. SSNY has Faith Films L.L.C. Art. of Org filed Dissolution: No Specific Date. Purpose Co. P.C., 622 Third Ave, 8th Floor, been designated as agent of the LLC with Secy. Of State of N.Y. (SSNY) on of PLLC: Acupuncture. Street address New York, NY, 10017. Purpose: upon whom process against it may Notice of Formation of JOSLYN LEVY 10/08/08. Office location: New York of Principal Business location: 217 E. engage in any lawful act or activity. be served. SSNY shall mail a copy of & ASSOCIATES LLC, a domestic County. SSNY designated as agent 22 Street, #32, NY, NY, 10010. process to the LLC, 150 East 93rd LLC. Arts. of Org. filed with the SSNY of LLC upon whom process against it on 12/16/08. Office location: NY Notice of Qualification of Antipodean St., #4D, NY, NY 10128. Purpose: For may be served. SSNY shall mail NOTICE OF FORMATION OF Jeffrey any lawful purpose. County. SSNY has been designated process to principal business loca- W. Varcadipane PLLC. Article of Advisors LLC filed under the original as agent upon whom process against name Antipodean Capital, LLC, App. tion: P.O. Box 2984, NY, NY 10163. Organization filed with Secretary of the LLC may be served. SSNY shall State of NY (SSNY) 12/01/08 Office for Auth. filed Sec’y of State (SSNY) Notice of Qualification of Flexion mail a copy of process to: 230 W 12/16/08. Office location: NY County. Management, LLC, App. for Auth. CUTS FOR CATS LLC, a domestic Limited location NY County. SSNY designated 105th St. Apt 9D, NY, NY 10025. Liability Company (LLC) filed with the Sec as agent upon whom process may be LLC org. in DE 12/15/08. SSNY des- filed Sec’y of State (SSNY) 9/5/08. Purpose: Any Lawful Purpose. ignated as agent of LLC upon whom Office location: NY County. LLC org. of State of NY on 11-3-08. NY Office loca- served. Address SSNY shall mail any process against it may be served. in DE 9/3/08. SSNY designated as tion: NY County. SSNY is designated as process is 500 W. 56 St., 821. NY, NY SSNY shall mail copy of process to agent of LLC upon whom process Notice of Formation of AZOTH GROUP agent upon whom process against the LLC 10019. Purpose of PLLC: engage in any Attn: Eric Chen, 499 Park Ave., 10th against it may be served. SSNY shall LLC. Arts. of Org. filed with Secy. of State may be served. SSNY shall mail a copy of lawful act or activity. Principal Business Fl., NY, NY 10010. DE office addr.: c/o mail copy of process to 733 Third of NY (SSNY) on 01/13/09. Office loca- any process against the LLC served upon location: 500 W. 56 St. NY, NY 10019. CSC, 2711 Centerville Rd., Wilmington, Ave., 11th Fl., NY, NY 10017. DE tion: New York County. Principal office of him/her to The LLC, 261 Fifth Ave., Ste. DE 19808. Cert. of Form. on file: office addr.: c/o CSC, 2711 LLC: 264 W. 25th St., Apt. 3W, NY, NY 1905, NY, NY 10016. General Purposes. SSDE, Townsend Bldg., Dover, DE Centerville Rd., Wilmington, DE 10001. SSNY designated as agent of LLC 19901. Purpose: any lawful activities. 19808. Cert. of Form. on file: SSDE, upon whom process against it may be Coming Up on served. SSNY shall mail process to the Notice of Qualification of Blackstone Real Townsend Bldg., Dover, DE 19901. Estate Special Situations PE Fund L.P. Purpose: any lawful activities. LLC at the address of its principal office. the Calendar Notice of Qualification of H.I.G. New Purpose: Any lawful activity. Authority filed with Secy. of State of NY York , LLC. Authority filed with NY Dept. (SSNY) on 1/16/09. Office location: NY of State on 12/16/08. Office location: Notice of Formation of NFF NEW County. LP formed in Delaware (DE) on NY County. Princ. bus. addr.: 1001 MARKETS FUND IX, LLC. Arts. of NOTICE OF FORMATION OF LIMITED 12/23/08. SSNY designated as agent of March 16th Brickell Bay Dr., Miami, Fl 33131. LLC Org. filed with Secy. of State of NY LIABILITY COMPANY.NAME: KADKENT, LP upon whom process against it may be formed in DE on 12/4/08. NY Sec. of (SSNY) on 11/20/08. Office location: LLC. Articles of Organization were served. SSNY shall mail process to: c/o Real Estate State designated as agent of LLC upon NY County. Principal office of LLC: filed with the Secretary of State of The Blackstone Group L.P., 345 Park Ave., whom process against it may be 70 W. 36th St., 11th Fl., NY, NY New York (SSNY) on 07/28/08. Office NY, NY 10154. Registered Agent: CT March 23rd served and shall mail process to: c/o 10018. The latest date on which the location: New York County. SSNY has Corporation System, 111 Eighth Ave., NY, CT Corporation System, 111 8th Ave., LLC may dissolve is 11/19/2058. been designated as agent of the LLC NY 10011. DE address of LP: c/o The Healthcare NY, NY 10011, regd. agt. upon whom SSNY designated as agent of LLC upon whom process against it may Corporation Trust Company, 1209 Orange process may be served. DE addr. of upon whom process against it may be served. SSNY shall mail a copy of St., Wilmington, DE 19801. Name/address LLC: 1209 Orange St., Wilmington, DE be served. SSNY shall mail process process to the LLC, c/o Katan of genl. ptr. available from SSNY. Cert. of March 30th 19801. Arts. of Org. filed with DE Sec. to Nonprofit Finance Fund at the prin- Developers, 592 Pacific Street, LP filed with DE Secy. of State, Federal & of State , P.O. Box 898, Dover, DE cipal office of the LLC. Purpose: Any Brooklyn, New York 11217. Purpose: Duke of York Sts., Dover, DE 19901. 40 Under 40 19903. Purpose: all lawful purposes. lawful activity. For any lawful purpose. Purpose: any lawful activities.

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action. Records show that Mr. Golub has not made campaign contributions to Mr. Paterson. (He FIRST TEST MTA rescue plan THE INSIDER did make many four-figure THE EFFORT TO STAVE OFF major fare hikes and service cuts by the donations to Republicans, among Metropolitan Transportation Authority has become the first major test of the George Pataki by Erik Engquist and Matthew Sollars them , who was a newly Democratic state Senate. Majority Leader Mercury client.) Price Chopper Malcolm Smith is trying to scrape together the posted a letter supporting the wine 32 votes in his conference to enact a payroll tax sales proposal on its Web site last and bridge tolls to fund the MTA. week and asked customers to send The Assembly and Gov. David Paterson are Liquor stores copies to their legislators. on board, but several of Mr. Smith’s members Mr. Paterson says his plan would object to tolls. So efforts are being made to increase wine sales 20% and news daily mix it up with guv snag a few Republican votes. Half a dozen Malcolm Smith generate $105 million in fees from Republicans have good reason to save the MTA. he fight over Gov. David stores applying to sell wine. Liquor Martin Golden of Brooklyn and Frank Padavan of Queens both have transit- stores say the competition would Paterson’s proposal to allow riding constituencies, as does Carl Marcellino of Long Island. And three force half of them to close. supermarkets to sell wine is upstate Republicans have businesses in their districts that build trains or T buses for the MTA: Bombardier is in Elizabeth Little’s district, Orion Bus is in escalating. Opponents posted a Morgenthau’s Joseph Griffo’s, and Alstom is in George Winner’s. doctored photo on a Facebook page “If the MTA doesn’t have any money, they don’t have any work,” an insider sponsored by liquor store owners endorsement says. But the GOP conference leader, Dean Skelos, opposes the MTA rescue insinuating that Mr. Paterson is being advisers for retiring Manhattan because of its payroll tax. “The Republicans seem to be holding solid as a bought. It showed Mr. Paterson District Attorney Robert Morgenthau bloc behind Skelos,” the insider says.

istockphoto accepting wads of cash from Neil Golub, are researching just how far he can There are other snags as well. The plan would create a regional bus go in backing a successor. New authority to bring suburban bus operations under the MTA umbrella, thus president of the parent company of grocery chain Price York State District Attorneys expanding the Transport Workers Union’s membership. Westchester County Chopper, which supports the plan. Association rules say a DA “shall says its bus system is cheaper without TWU workers and wants to keep not endorse candidates,” speak or control of its buses—but it wants the money the MTA was planning to spend. A spokeswoman for Mercury governor is corrupt.” publicize his attendance at a The TWU and MTA oppose that idea, as do pro-labor senators. Public Affairs, which represents the A spokesman for proponents of political function, or raise money. Also, many senators think the MTA is not doing its part by reducing liquor stores, says Mercury was the governor’s plan doubts But Morgenthau adviser George Arzt personnel costs. MTA Chief Executive Elliot “Lee” Sander said at a recent unaware of the photo until being Mercury’s explanation. “If they had says an old court case might give Crain’s Breakfast Forum that his agency had cut administrative expenses to notified by The Insider, and had it the ability to take it down, that leeway to a DA not seeking re- 7% of its budget. But he hasn’t sold lawmakers on that. taken down. means they had the ability to put it election. A source told The Insider “We think it was probably put up up,” says the spokesman, Dave in early February that Mr. by a store owner who was passionate Vermillion. Morgenthau planned to retire and about the issue,” the spokeswoman The governor was informed of support Cyrus Vance Jr. as his For daily political and government news, subscribe to says.“We absolutely do not think the the Facebook photo but took no successor.
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24 | Crain’s New York Business | March 9, 2009 CNYB 03-09-09 A 25 3/5/2009 8:15 PM Page 1

BUSINESS CORPORATE LADDER Water-taxi exec plies choppier tourist waters PAGE 26 buck ennis

GOTHAM GIGS Designing in downturn growing up, ALONA ELKAYAM, 37, dreamed of becoming the next Barbara Walters. A design class at American University put her on a new career path. She now has her own global brand design company, 321 Takeoff, which she founded in 2002. AMBITION The Baltimore native moved to New York in 1994 and landed her first gig at Citigate Albert Frank.Two years later, she launched her first Web design company. She sold the firm in 1998. SUCCESS Before founding 321 Takeoff, Ms. Elkayam beefed up her résumé by working for companies such as MSNBC RAPT ATTENTION: and Razorfish. Her main focus Angelica Berrie runs now is helping clients achieve a her late husband’s triple bottom line: “people, $200 million-plus planet and profits.” Her team foundation—and now runs $20 million-plus has helped clients such as retailer Kate’s Paperie. LexisNexis with their brands. INNOVATION The recession hasn’t slowed business. As a small company, 321 Takeoff is open to clients with smaller budgets. In August, Ms. Elkayam launched Far From Timid, a textile design firm. —maia blume

EXPERT OPINIONS DATING ON A BUDGET there are plenty of options for cheap dates in NYC. Head to Pravda, a bar on Lafayette Street, for a free Russian movie on Sundays. On Friday nights, visit MoMA for free.The Corner Bistro in the West PAPER WEALTH buck ennis Village has $2.50 McSorley’s, and the Brooklyn Inn, in A widow. A fortune. A fter multimillionaire philanthropist and toy Boerum Hill, offers $5 pints. maker Russell Berrie died of a heart attack on Christmas For free live music, check out Spike Hill in Williamsburg. chance, it turns out, to be Day 2002, his widow took over the work he left behind. When it gets warm, visit any of the entrepreneur you That included overseeing his charitable foundation as the city’s 1,700 parks. Time Out well as a 1,500-employee company, which had generated New York gives away one $50 always wanted to be. Life $293 million the year before by selling products date a week. including troll dolls and a stuffed dog named Muffin. —lisa freedman can unfold that way. Just Senior associate editor For two years, Angelica Berrie served as chief executive of publicly Time Out New York ask Angelica Berrie. Atraded Russ Berrie and Co. She managed the Bergen County-based Here’s why the new owner company through tough times in the gift business—only to be ousted after a bruising shareholder battle; a turnaround expert was brought in of Kate’s Paperie has big as the new CEO. She stepped away from Russ Berrie entirely in 2006, plans for the cult retail selling her shares and the foundation’s for about $100 million and leav- ing the board of directors.The move surprised many. But the reason chain. By Joyce Hanson See PAPER WEALTH on Page 26 istockphoto

March 9, 2009 | Crain’s New York Business | 25 CNYB 03-09-09 A 26 3/6/2009 11:23 AM Page 1

BUSINESS LIVES CORPORATE LADDER Travis Noyes Whatever floats the boats A choppy tourist market tive Tom Fox. “The larger focus on the tour and travel markets is what PERSONNEL FILE means water-taxi exec brought us to profitability this past year.” COMPANY Harbor Experience must target the locals Cos. (formerly known as New York and craft new routes The Ikea coup Water Taxi) last year, the tourism-related TITLE Chief operating officer contracts Mr. Noyes won reeled in AGE 33 BY LISA FICKENSCHER 400,000 passengers,or a third of the company’s customer volume. RÉSUMÉ Corporate marketing ack and conner noyes are Among his biggest coups was a deal director, Odyssey Cruises impressed that their father is with Ikea, which selected Harbor HOBBIES Running, Bikram yoga the chief operating officer of Experience to ferry customers from Harbor Experience Cos., Manhattan to its new store in Red MANAGEMENT STYLE Delegator which owns 10 commuter Hook, Brooklyn, seven days a week. and tour boats in the city.But Providing water transportation

J buck ennis they wish he could be a skip- to a retail facility had never been speedboat called Shark, as well as per instead. done before, says Mr. Noyes. “That leaseholds at the South Street Sea- “It would be much cooler if I was has been a huge success,” he adds. port and the Brooklyn Navy Yard. life that I’m close to who can take ternational pool of visitors. That captain of the boat,” says Travis In the midst of a deep recession, “We are taking a long-term credit for my interest in the water,” market had accounted for 40% of Noyes,who was promoted in January Harbor Experience is investing in its view,” says Mr. Noyes. says Mr. Noyes. the company’s customers. after heading up the ferry company’s future while also girding for an ex- The young executive will be But Harbor Experience just sales efforts for the past five years. pected decline in customers this year. drawing on his experience as head of Upbeat about new business inked a deal to create a New York His sons’ disappointment aside, In June, it may shed a government- sales and marketing of Chicago- after he graduated from Florida Water Taxi Beach on Governors Is- Mr. Noyes’ employer, formerly subsidized commuter route along the based Odyssey Cruises—and his State University, he joined Odyssey land—a $2 million investment.The known as New York Water Taxi, is Hudson River because funding is ex- love of all things waterborne. He Cruises, where he stayed for five company operates a similar beach in not complaining. pected to end then. And like most grew up along the Florida Panhan- years. At that point, his wife, a na- Long Island City, Queens. It re- During his watch,Harbor Expe- tourist-dependent businesses, it is dle, where his parents have a home tive of New Zealand, landed a job in mains to be seen, however, whether rience’s revenue grew 700% to $15 making a big push to appeal to local with a dock on the water. His step- New York City. Governors Island will reopen this million last year,and the firm signif- residents and nearby suburbanites father was the commodore of the Despite the downturn, Mr. summer, in light of state budget icantly ramped up its tourism busi- who don’t have the funds to travel out recreational sailing leagues in Noyes is upbeat about his ability to constraints. ness,to 70% of sales,from 50% a few of the area this year. northwest Florida and his grandfa- continue finding new business for The company is betting that two years ago. Last month, Mr. Fox bought ther was a renowned fly-fisherman Harbor Experience. He is forecast- pending deals and another unna- “Travis brought a new dimension Circle Line Harbor Cruises, adding in Vermont. ing a 15% decline in passengers this nounced project will more than off- to the company,” says Chief Execu- a 600-passenger catamaran and a “There are certainly people in my year,due in large part to a smaller in- set other losses.

er-mâché export company in the large, too: He was named one of the an explosion of special printing tech- Philippines, which sold Christmas 40 most generous donors in Ameri- niques and the growing popularity of Paper wealth ornaments to Crate & Barrel and ca by Fortune magazine in 1998, the making scrapbooks. Pier 1 Imports as well as Russ Berrie. year he opened the Naomi Berrie Clearly, however, Ms. Berrie’s But she set all that aside when Diabetes Center at Columbia Uni- new venture is not just about busi- Continued from Page 25 CEO, but she’s as capable as one,” she became the fourth Ms. Berrie in versity Medical Center’s Russ ness. Over tea, she muses that her was simple, she says: Running her says longtime friend Stephanie 1992.She moved to America,joined Berrie Medical Science Pavilion, in love of paper began when she was a husband’s company had helped her Kugelman, the recently retired chief her husband’s company as market- memory of his mother. Catholic schoolgirl in the Philip- figure out that she wanted to run her strategic officer of communications ing director, and became a step- The couple also supported the pines,where the nuns taught her the own. company Young & Rubicam. “She mother to his six children, ranging Center for Interreligious Under- gestural significance of a beautifully “As you go through life, you de- has both humility and fierce resolve. in age from 6 to 33. standing as well as a retirement handwritten note. velop your own style,” Ms. Berrie, She’s going to do well.” Although she was brought up home for nuns. now 53, explains over jasmine tea Catholic, Ms. Berrie worked with “Angelica is a woman with an in- “I don’t need the income” and lemon tarts in the Mandarin A reinvention? Or a return? her husband and his foundation to teresting combination of traits, and kate’s currently pulls in about Oriental Hotel lounge. “As painful what looks like a reinvention of promote Jewish communal life.The she’s had all these different chapters $20 million in annual sales, Ms. as it is, you discover your own abili- Angelica Berrie is in some ways a re- couple celebrated Shabbat every in her life,”says Ms.Kugelman,who Berrie says. She adds that she plans ty to have a vision.” turn to who she was before her mar- week at their home in New Jersey served on the board of cancer-sup- to keep the store’s name, because it’s High above Columbus Circle,on riage. When she met her husband, and participated actively at their port group Gilda’s Club Worldwide pretty and has good brand equity. the hotel’s 35th floor, the coolly ele- who was on a buying trip at the time, synagogue. when Ms. Berrie was its chairman. “Kate’s is an indie store, not a gant lounge seems a fitting place for she was a single,35-year-old market- Ms. Berrie’s quieter style was Long before she dreamed of being chain,” she explains. “People go Ms. Berrie to talk about how she is ing executive at Saatchi & Saatchi overshadowed by her husband’s Kate’s CEO,she was a Kate’s devotee. there for creative inspiration, not shedding her widow’s weeds for an Philippines. She also had run a papi- large personality. His checks were Its five stores—four in Manhattan just products. outfit of her own design: She is es- and one in Connecticut—are known “If I judged Kate’s by its profit- tablishing a network of interests in for their gorgeous design and stun- and-loss statement, I probably the business of fine paper. MUSEUM HANGS SOME PAPER ningly diverse selection of merchan- wouldn’t have bought it,” she con- Last fall, in her most significant tinues. “This is about a passion.” MARK YOUR HAND-STITCHED CALENDAR: Kate’s Paperie and the Angelica Berrie dise. The flagship SoHo store is a move so far, she purchased iconic Indeed, Ms. Berrie recently Foundation will sponsor “Slash: Paper Under cross between an artists’ drop-in cen- New York City paper purveyor ter and Bloomingdale’s. bought a majority stake in privately the Knife,” an exhibition of paper artworks at Kate’s Paperie.Fans of the five-store “You haven’t seen Manhattan held Boston International, a whole- chain have been known to buy its the Museum of Arts and Design, from Oct. 7 until you’ve seen Kate’s,” raves one sale distributor of party goods and wrapping paper simply to frame and through Jan. 10. The show, which will feature reviewer among many on Yelp.com. exclusive vendor of the Metropoli- hang on their apartment walls. highly elaborate—even room-size—paper “You can browse this store for hours tan Museum of Art’s stationery, Ms. Berrie still controls her late works from about 40 artists, is expected to and still not see everything that they which pulls in revenue of about $18 husband’s Russell Berrie Founda- fill two floors of the museum’s exhibition have. Rated from one to ten, I rate million. Now, she’s redesigning the space at Columbus Circle. The sponsors’ tion, which had total assets of about meredith andrew this store a fifteen!” Kate’s stores,revamping the compa- $210 million at the end of 2008. But project cost is $400,000. SU BLACKWELL’S The Wild Swans Customer enthusiasm, of course, ny’s Web site and re-establishing the last year,she also established the An- “We had talked to Angelica about this idea will be among the featured works. may not be enough to keep any retail Kate’s brand with a new logo and gelica Berrie Foundation,whose first for some time,” says Ben Hartley, the chain viable these days. Still, paper window installations by artists who project is to join with Kate’s in spon- museum’s deputy director. “When she bought Kate’s, it was the perfect gifts and stationery lines have some specialize in paper works. soring a major exhibit at the Muse- combination of her business and personal interests. She’s wonderfully open strengths, says Meredith Schwartz, “I don’t need a job,” she says. “I um of Arts and Design (see box). and creative in a way that is rare.” business editor of trade magazine don’t need the income. But I don’t “She’s not the typical New York Gifts & Decorative Accessories, citing want to be a lady who lunches.”

26 | Crain’s New York Business | March 9, 2009 CNYB 03-09-09 A 27 3/5/2009 6:33 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape Vietnamese’s sensuous bow Upper West Side’s BarBao has succinct menu, sexy setting; on the hook for its fish

ichael “bao” Huynh keeps mov- ing right along, pro- BARBAO pelled by gifts that 100 W. 82nd St. (between ASIAN PERSUASION: Michael “Bao” Huynh, the mark him as the Amsterdam and Columbus) most celebrated Vietnamese chef in New York, could Mmost celebrated Vietnamese chef in (212) 501-0776 be a rainmaker at BarBao, his newest venture. town. www.barbaonyc.com buck ennis If there are disgruntled teammates ## in his wake,there are always new part- among small dishes ($8 to $14) is and ginger to a splendid bean-curd- a curled cornucopia to display fried ners waiting to embrace him. Mr. CUISINE Vietnamese daikon duck hash. Served in a cast- glazed black cod served over red cur- snapper nuggets in spicy sweet-and- Huynh’s résumé includes star stints at WINES 45 choices, 13 by the glass iron pan, the rich combination of ry-laced sweet pepper stew. sour sauce. I always enjoy clumsily Bao 111, Bun, Mai House and now duck confit and tiny,tender cubes of A popular big-plate item is crispy chopsticking my way around whole BarBao, his new union with Main DRESS No code diced daikon pancake is bound to- Berkshire pork belly, prepared with fried fish, and this experience is not Street Restaurant Partners. They see NOISE LEVEL Moderate gether by a slow-poached egg and taro, shishito peppers and kimchi- that by a long shot. him as a major rainmaker for their PRICE RANGE $16-$27 soy sauce. accented crosnes, tubers sometimes The three desserts ($8) are a flan former Rain location. Four tender frogs’ legs in crispy, known as Chinese artichokes. of red dates,gingko nuts,lotus seeds Shedding its longtime Thai aura, WINE MARKUP 120%-325% salty batter, for dipping in spicy gar- Other dishes highlight the po- and coconut emulsion; yucca waffle the roomy restaurant (which has CREDIT CARDS All major lic aioli, seem a tad pricey at $14. tent French influence in Viet- with dulce de leche and peanuts;and 162 seats) has a posh, sexy setting, RESERVATIONS Recommended Summer rolls are two skewers hold- namese cuisine.Loup de mer,for in- bread pudding with coffee froth and with curvy banquettes and romanti- ing a choice of shrimp, Berkshire stance, is cooked with chanterelles cinnamon gelato. Gelato? cally lit tables filled with a mature HOURS Dinner, Sun., 5 p.m.-10 pork, short ribs or vegetables. The and hearts of palm puree, in green The main bar/lounge of BarBao clientele. Many jackets and even a p.m., Mon.-Wed., 6 p.m.-1 a.m., four spring rolls hold a medley of curry broth. is a dim yet sultry place dispensing few ties are in evidence. Thurs.-Fri., 6 p.m.-2 a.m., Sat., pork, shrimp and jícama. Dunk ’em BarBao offers some hearty noo- cocktails called China Beach, Taxi 5 p.m.-2 a.m. There are a number of secluded in nuoc cham sauce—fish sauce, gar- dle choices, from vermicelli with Girl, Red Dawn and Jane Fonda. dining areas that are fine for small ####= Outstanding lic,pepper flakes and lime juice—for Berkshire pork belly and shrimp to The wine list is modest, but some gatherings. A 6-foot-long roll bar ###= Excellent the perfect nibbles. a robust pho with rare Wagyu beef markups are not. serves hand, spring and summer ##= Very good Pineapple and chilies figure in in anise-ginger beef broth. Five Asian beers are on the ros- rolls. Design firm RKIT adds #= Good the spicy beef salad, and jalapeño I’m not crazy about the dish ter, provided that a neighboring whimsy with a 15-foot mural fash- pesto gives a flavor bump to chef called “crispy whole red snapper.” A restaurant’s staff has not slugged ioned of Vietnamese propaganda Huynh’s baby lamb lollipops. breaded, fried whole snapper does them all down the previous night. posters, shredded and repositioned flavorful, with small plates and big Many dishes large and small get arrive at the table, but the fish is re- That’s all to the good, but failing to to resemble a bar code, for BarBao. ones, noodles, rice and vegetables. the iron-pot treatment,from organ- ally a prop. I tried eating some of it restock by 24 hours later is poor Mr.Huynh’s menu is succinct and The most impressive starter ic chicken cooked with quail eggs only to discover that it is cold—just management.

EXECUTIVE MOVES

ACCOUNTING & CONSULTING ADVERTISING & COMMUNICATIONS John Purcell, 50, was named co-head of an associate at Winston & Strawn. Prudential Douglas Elliman: Elizabeth KPMG: Lina M. Amador, 35, was Big Fuel: Holly Pavlika, 49, was global fixed income. He was formerly Jenner & Block: Jeremy M. Creelan,39, Brown, 55, joined as senior vice promoted to audit partner from senior appointed executive creative director. head of global fixed-income syndicate was promoted to partner from associate. president. She was formerly vice manager of audit. She was formerly executive vice and North America capital markets at Orrick Herrington & Sutcliffe: Stan president at Stribling & Associates. Richard Clifford, 39, was promoted to tax president and executive creative director Citigroup. Chelney, 34, was promoted to partner partner from senior manager of tax. at G2 Direct & Digital. West End Financial Advisors: Raymond J. from associate. SERVICES Victor M. Cuevas, 39, was promoted to TBWA\Chiat\Day: Jamie Gallo, 42, was Heslin, 62, was named general counsel Salon Marrow Dyckman Newman & Choice Logistics Inc.: Rob van Doorn, 52, audit partner from senior manager of promoted to president from managing and chief compliance officer. He had Broudy: Seth R. Gottlieb, 34, was was appointed director of field service audit. director. been senior partner at Sonnenschein promoted to partner from associate. operations. He had been site director Laurie Hatten-Boyd, 44, was promoted Nath & Rosenthal. Seyfarth Shaw: Alysa M. Barancik, 36, and operations manager at Jabil Circuit. to tax principal from senior manager of ARCHITECTURE & DESIGN was promoted to partner from associate. Consolidated Edison Inc.: John D. tax. Weidlinger Associates: Rimma Zaleznik, HIGH TECH & NEW MEDIA James S. Yu, 35, was promoted to partner McMahon, 57, joined as executive vice Scott D. Stelk, 34, was promoted to audit 48, was named chief financial officer. Collective Media: Lauren G. Laitman, 33, from associate. president. He had been chief executive partner from senior manager of audit. She had been executive director of joined as human resources director. She of Orange and Rockland Utilities Inc. Suzanne M. Vincent, 38, was promoted operations methods and procedures at was formerly senior manager of human MEDIA & ENTERTAINMENT North Star Fund: Diana Correa, 53, was to audit partner from senior manager of Telcordia Technologies Inc. resources at DoubleClick Inc. National Basketball Association: Kathy named deputy director for programs and audit. Behrens, 45, was promoted to executive strategic initiatives, a new position. She Joseph F.Warganz, 42, was promoted to CONSUMER PRODUCTS HOSPITALITY & TOURISM vice president of social responsibility and had been director, Northeast region, at principal from assistant general counsel. The Dannon Co.: Eric F.O’Toole, 42, was Dallas BBQ: Eric J. Levine, 44, was player programs from senior vice Hispanics in Philanthropy. Mitchell & Titus: Anthony S. Kendall, 48, promoted to senior vice president of named director. He had been vice president of community and player —maia blume was promoted to chief executive officer sales from vice president of business president of operations at EJ Associates programs. EXECUTIVE PROMOTIONS from vice chairman of client services. development. of New York. Mark Tatum, 39, was promoted to Peter J. Solomon Co.: Richard S. Brail, 41, Ken Strick, 42, was named vice president executive vice president of marketing Crain’s lists the promotion and hiring of New York was named managing director and head of legal affairs and general counsel. He LAW partnerships from senior vice president area senior executives on a space-available basis, of the media and communications was formerly vice president and general Arnold & Porter: Richard Chen, 36, joined of marketing partnerships. with priority given to positions in New York City. advisory practice. He had been counsel at Royal Numico NV. as counsel. He had been an associate at The fastest way to get an announcement into managing director of media and Schulte Roth & Zabel. REAL ESTATE Crain’s is to submit details online by filling out the communications mergers and FINANCE & INSURANCE Chapman & Cutler: Kenneth P.Marin, 43, Conquest Advisors: Brandon A. form at www.crainsnewyork.com/submit. The acquisitions at Morgan Stanley. BTIG: Jon Bass, 46, was appointed co- was named partner. He had been partner Maltzman, 37, joined as vice president Executive Moves column is also available online. Raich Ende Malter & Co.: Andrew D. head of global fixed income. He was at McKee Nelson. of sales and leasing. He had been Crain’s cannot confirm receipt of listings or say Levine, 57, joined as partner. He was formerly head of fixed-income client Ford & Harrison: Mark A. Konkel, 36, was director of sales and leasing at Leslie J. when they will appear. formerly partner at J.H. Cohn. management at UBS Investment Bank. named senior counsel. He was formerly Garfield & Co. Inc.

March 9, 2009 | Crain’s New York Business | 27 Project6 2/17/09 12:40 PM Page 1

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