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INSIDEi Today’s TOP STORIES game of liar’s poker Holiday markets —Greg David on a fail to ring up famous book and its sales this season relevance today ® Page 11 PAGE 2 Recycling firms threatened by VOL. XXIV, NO. 50 WWW.CRAINSNEWYORK.COM DECEMBER 15-21, 2008 PRICE: $3.00 plummeting prices PAGE 3 One year later, Hotels spring up investors are still down on Dow Jones in unsold condos PAGE 3 Wall Street area CHECKOUT TIME SPECIAL REPORT contains new crop 2007 of illegal rooms; ILLEGAL HOTEL LOCATIONS neighbors annoyed INSPECTED 32 TOTAL VIOLATIONS ISSUED 257 BY HILARY POTKEWITZ 2008* ILLEGAL HOTEL LOCATIONS INSPECTED 55 with tourism on the wane, posh hotels like the Plaza are grappling TOTAL VIOLATIONS ISSUED 310 CORPORATE with fewer bookings. They’re also *Through Oct. 31. PHILANTHROPY facing competition from an unlike- Source: Mayor’s Office of Special Enforcement A steep decline in corporate ly source: Manhattan landlords. donations is forcing Building owners have long in the Wall Street area has been New York’s nonprofits to dabbled in the hospitality industry, coming to our attention recently.” hunker down illegally renting out empty units in These illegal hotels tend to ap- their properties on a short-term or pear in older,rent-stabilized build- PAGES 15-21 nightly basis. But in a new twist, ings and tenements,in midtown or G Literacy program hit by the clandestine hotels are popping the Upper East and Upper West recession blues P. 16 up in luxury apartment buildings sides. By comparison, the newest G Cash-strapped firms devise in the financial district, where de- crop of accommodations offer unusual giving strategies P. 19 velopers have struggled to sell all quite an upgrade. G Check out the largest their units. The downtown building boom O nonprofits in the area P. 20 “We get a steady stream of led to a glut of luxury condo devel- complaints from around Manhat- opments in former office buildings tan,”says Shari Hyman,director of near Wall Street. As several of TRUMP’S the mayor’s office of special en- these high-rises remain unfilled, forcement, which is charged with developers and landlords are mak- rooting out illegal hotels. “But the ing “other arrangements” to TOWERING problem of places downtown and See HOTELS on Page 14 BUSINESS Shocked NYers LIVES TROUBLES NYC STAYCATIONS shun hi-cal muffins Looking to get away Fabled brand looks this holiday season? New York has it all damaged, dated Survey finds habits P. 27 Shariqa Hydary: changed by postings “I got half a BY THERESA AGOVINO brie-and-basil of caloric contents sandwich for INDEX 265 calories.” donald trump has had a rough few weeks. THE INSIDER ______12 He went to court in an effort to avoid BY LISA FICKENSCHER NEIGHBORHOOD JOURNAL ______12 paying off a $640 million construction loan SMALL BUSINESS ______13 on his struggling condo/hotel project in when pamela skilling dashes

REAL ESTATE DEALS ______14 Chicago, and was countersued by his lender. into Starbucks or Dunkin’ Donuts Meanwhile, rating agencies downgraded these days, she sticks to her simple CLASSIFIEDS ______24 Trump Entertainment Resorts Holdings’ new rule: Grab a cup of coffee and WEEK IN REVIEW ______26 bonds after the casino company said it beat a hasty retreat. Lingering in CORPORATE LADDER ______29 would miss a $53 million interest payment. front of the pastries and indulging EXECUTIVE MOVES ______29 Over the past year, a number of other devel- in diet-busting muffins and scones

SeeTABLE AT TALK DEADLINE ______on ______Page ______2 ______31 See TRUMP’S on Page 7 has become a thing of the past for

getty images the communications executive.

Six months after the city began neff david

50 enforcing a rule requiring chain

5 COMINGNEXT WEEK restaurants to post calories on their turning up their noses at diet- The annual Book of Lists provides an menus, there is growing evidence killing dollops of sour cream and easy-to-use compilation of the Crain’s that New Yorkers are changing guacamole.Some are changing not ELECTRONIC EDITION lists of the top companies in New York their eating habits.They are giving just what they eat but where—opt- and a guide to more info online. up old favorites such as fat-laden ing to dine more often at places

NEWSPAPER muffins and sugary drinks and are See SHOCKED on Page 2 71486 01068 0 CNYB 12-15-08 A 2 12/12/2008 7:58 PM Page 1

IN BRIEF PRESCRIPTIONS FILLED FOR ANTI-ANXIETY DRUGS, ANTI-DEPRESSANTS AND SLEEP AIDS have surged in the city as New Yorkers struggle to cope with uncertainties brought on by the financial crisis. In September and October, prescriptions filled for sleep aids rose more than 7%, to 366,870, compared to the same two-month period last year, according to data provided to Crain’s by istockphoto Wolters Kluwer Health, a global provider of medical information. Prescriptions for anti-anxiety drugs rose 5%, to PAUL-PHILIPPE D’AURIAC of 317,268, and anti-depressants were also up 5%, Debbie Brooks and RACHEL BELLONE (below) of Mia Designs to 926,654, in the same period.The spike was have both tried discounting, but particularly sharp in September, when the crisis business remains down. bankrupted Lehman Brothers and brought other major financial institutions to their knees. GOLDMAN SACHS GROUP INC. AND MORGAN STANLEY STAND TO MAKE HISTORY OF THE most unfortunate kind this week when both are forecast to post quarterly losses. Goldman’s expected $2 billion loss would represent its first flow of red ink since the former partnership went public in 1999 and is thought to be the 139-year-old firm’s first loss since the stock market crash of 1929. Morgan Stanley’s Holiday vendors forecast $300 million loss would mark its second loss since the financial crisis began over a year ago and only the second unprofitable quarter in the firm’s 73-year history. get lump of coal LITTLEMISSMATCHED, A MAKER OF PATTERNED SOCKS AND APPAREL, HAS OPENED TWO temporary shops in the city for the holiday Sellers face one of worst seasons ever season, and plans to open a brick and mortar flagship here in spring 2009.Temporary stores mean $300. However, on a recent Sunday, have been particularly popular this year as BY ADRIANNE PASQUARELLI Ms. Sinderbrand didn’t earn a dime. landlords struggle with rising vacancies and “I’ve never had a zero day before,” she retailers fear long-term real estate commit- jewelry designer Mara Sinderbrand has says. “People aren’t buying less—they’re ments. Gap Red, Wired and French perfumer rented a booth at the Union Square holiday not buying at all.” Diptyque have all opened holiday shops. market for the past 11 years.On a good day, The seasonal markets—the biggest are

she can rake in $1,000. A bad day could See HOLIDAY on Page 8 buck ennis CORRECTION The “Hits and Misses” column in the Dec. 8 Small Business Report mischaracterized the occupations of Robert Bertsch and Richard Singer, the co-founders of RaiseCapital.com. Mr. Bertsch is a lawyer; Mr. Singer is not. Shocked New Yorkers shun vol. xxiv, no. 50, december 15, 2008—Crain’s New York Business (issn 8756-789x) is published weekly, except for a combined issue Continued from Page 1 4th week of December by Crain Communications Inc., 711 Third that revealed that 60% of diners have no- Lawrence, senior director of marketing. Ave., New York, NY 10017. Periodicals postage paid at New York, that post the caloric content of their food. ticed calorie information, up from 23% in Today 20% of all sandwiches sold at Così N.Y. and additional mailing offices. Postmaster: Send address “I have been surprised by the effect that 2007,when a similar survey was conducted. in the city are from the low-calorie menu. changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: those calorie signs have had on me, espe- Restaurants are getting the message. In Industry officials, who fought the calo- Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one cially since I’ve been reading books and ar- recent months, several big chains, includ- rie reporting requirements in the courts for year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2008 by Crain Communications Inc. ticles about diet all my life,” says Ms. ing Starbucks, Dunkin’ Donuts and Così months, still insist that the majority of All rights reserved. Skilling. have rolled out more low-fat options. eateries have seen little change in customer Already, nearly a quarter of consumers preferences. say the nutritional information available at Lighten Up already “Initially, there was big sticker shock nearly 2,400 city restaurants is having an in july, Così introduced a new menu, [with the calorie counts], but gradually MISERY METER impact on what they eat, according to a city called Lighten Up. The move came after people drift back to their old habits,” says Department of Health and Mental Hy- executives noticed that sales of the items Charles Hunt, executive vice president of Weekly reading on the direction of the giene survey finalized last week. That con- with the most calories began slipping, the New York City chapter of the New city’s economy. clusion was based on a survey of 1,600 peo- while sales of the items with the fewest York State Restaurant Association. Mr. ple conducted in September and October calories ballooned, according to Jill Hunt concedes that “there are people who POSITIVE NEGATIVE + CLOUDY - Kyle Bernhard: “I used to order Tim Davis: S a burrito; now I Jena Tesse Y T “I used to get O order it in a Fox: “I can’t N R cream-based N bowl without M remember the soups.” U the tortilla.” Y last time I had S french fries.” 170,00 0 3.8 +1.5% FORECAST JOB LOSS POINT GAIN BLOOMBERG/ through 2010 in consumer CRAIN’S (NYC Comptroller’s confidence index NY Office) for November stock index (Reuters/University of weekly change Michigan) - METER CHANGE from previous week

2 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 3 12/12/2008 7:46 PM Page 1

Recyclers Down on Dow Jones get no News Corp. doesn’t One year later, break out results for Dow investors aren’t sold Jones—noting only that refund the division brought in al- on Rupert’s WSJ deal; most $500 million in rev- poised for growth enues in the first fiscal Companies struggle quarter—but it’s clear that profit growth will be a as the price of paper BY MATTHEW FLAMM long-term project. and plastic drops since rupert murdoch closed his A personal fiefdom hard-fought deal for Dow Jones & in a recent conference BY HILARY POTKEWITZ Co.last December,the News Corp. call, an analyst asked how chairman has expanded foreign and Dow Jones could generate paper or plastic? These days, the political coverage in The Wall Street $1 billion in operating in- answer is neither. Journal, redesigned its Web site, come within three years— As a result of the economic beefed up overseas properties and a figure that would justify downturn worldwide, and particu- generally raised the paper’s profile the purchase. Mr. Mur- larly in the United States, prices for while other newspapers have gone doch answered that it was such recycled commodities have on life support. “going to take time.” collapsed by about 75% in the past All that, and investors still don’t Some analysts see the two months. like the deal. acquisition as one more in- Now, some New York recyclers

Battered by the recession, News bloomberg news dication that the chairman are struggling to stay afloat. One of Corp. has seen its share price NEWS CASTER: Some say Rupert Murdoch runs News Corp.like a pri- the largest paper collectors in the plunge more than 60% in the past made his deal on a whim, but it may yet pay off. vate company. city, Sprint Recycling Inc., quietly 12 months—the second-worst per- “Murdoch operates the shut down last month after 10 years formance among major media News Corp. business as in the business.The company served stocks, after CBS Corp. hasn’t justified. though it were his own 140 customers in the metropolitan There are many reasons for the “They talk in generalities about business,” says Barclays area and reported revenues of $20 company’s low valuation, including where they want to go,” says Jason Capital media analyst An- million last year—all from commer- an ad downturn at the television Helfstein,media analyst at Oppen- thony DiClemente. “At cial contracts picking up wastepa- station group and an underper- heimer & Co. “But given the high times, that’s to the detri- per. If current market conditions forming movie studio, which con- multiple they paid for Dow Jones— ment of the shareholder.” persist for more than six months,in- tributed to a 30% slide in profits in and, given the downturn in the ad so it can’t do too much damage. People who know Mr. Murdoch dustry experts predict,more compa- the first fiscal quarter, ended Sept. market, that multiple is going to be Still, there couldn’t have been a say that owning the Journal has nies will go under. 30.But analysts say paying $5.6 bil- even higher—we would like to see worse time to buy a newspaper. been worth every penny, given the For years, recycling programs lion for Dow Jones didn’t help. something more.” Ad lineage at the Journal enjoyment he’s getting from mak- across the country have been fueled They believe that the difficult plunged 27% in November versus a ing it a livelier, newsier paper that by the insatiable demand for raw environment for newspapers has Bad timing year earlier, and the decline for the can compete with The New York materials from Asia:Used paper and reinforced investors’ view of the dow jones makes up a small por- first week of December was in the Times for national influence—and cardboard were shipped by the acquisition as an overpriced in- tion of a company that had $33 bil- high 20% range, according to Wa- consumer advertising. Further- tanker-load to China, where they dulgence that News Corp. still lion in revenues in its last fiscal year, chovia analyst John Janedis. See ONE YEAR on Page 8 See RECYCLERS on Page 8

hi-cal muffins TALE OF THE TAPE ANDREW CUOMO AND CAROLINE KENNEDY are considered the leading candidates to replace Hillary are taking this to heart and making an ef- same number of calories. Clinton in the U.S. Senate. Gov. David Paterson will make the appointment when Ms. Clinton resigns next fort [to improve their diet].” “I used to have a salad because I figured month to become secretary of state. The governor, who has not tipped his hand, has a number of factors And with good reason. For many New it was low-cal,” says the executive, who to consider. The choice must be able to win the 2010 election and help Mr. Paterson do the same. Yorkers,the numbers have been little short didn’t want to be identified. of shocking. CUOMO VS. KENNEDY Creative compromise “A muffin is like 500 calories,”says Tim PERSONAL FILE Davis, executive vice president of the Ad- new yorkers are not giving up all of their State attorney general Attorney and former vertising Council. He confesses that he’s little pleasures, though. When marketing and former HUD fundraiser for NYC given up muffins for breakfast and cream- executive Rachel Weingarten took a client secretary, age 51, schools, age 51, based soups for lunch. out for breakfast last week at Le Pain Quo- divorced father of three married mother of Similarly, an insurance executive who tidien in SoHo she splurged on a cup of three regularly lunches at Capital Grille in mid- Belgian hot chocolate, even after discover- FAMILY TIES town has made adjustments. She says she ing it had 300 calories. She says, however, Son of former Gov. Mario Daughter of the late switched from salads to filet mignon after that the number “helped me to keep it to a Cuomo and ex-husband President discovering that the two dishes contain the few sips instead of guzzling the whole of Kerry Kennedy John F. Kennedy thing down.” (daughter of the late Grateful for a bit of guidance, more and Sen. Robert F. Kennedy) more people are following in the footsteps of KEY BACKER entertainment lawyer Cheryl Wickham and Father Mario Cuomo Uncle Ted Kennedy changing where they eat. She says she fre- ADVANTAGES Mark Kobe: quents Così and Au bon Pain because they “I looked at the have good selections of low-calorie items Strong record as AG, Iconic name, gravitas, political untainted, female, low-fat option, and display the caloric information clearly. but I decided experience, could other- endorsed Obama Shariqa Hydary, who works for an on- wise challenge Paterson against it.” line media company in midtown, adds, SHORTCOMINGS “I’m trying to lose weight, so I choose to come to Pret A Manger because it makes Male, disliked by Disliked by Clintons, Kennedys, past political politically inex- the calorie counts clear.” missteps, brash perienced, intensely Some New Yorkers, however, insist private, positions they have ways that allow them to have on issues unknown their high-caloric cake and eat it, too. BOTTOM LINE “I looked at the low-calorie options,” The safe pick; wants the The glamour choice, says Mark Kobe,a consultant who buys his job but is staying mum, but could bog down lunch at a Così restaurant. “But I decided giving Mr. Paterson space Dems’ 2010 ticket

I getty images bloomberg news photos: neff david against it, because I exercise regularly.”

December 15, 2008 | Crain’s New York Business | 3 CNYB 12-15-08 A 4 12/12/2008 7:47 PM Page 1

Business slows for tech firms; IN THE MARKETS hoping to restart sales in ’09 edited by Erik Ipsen

with $300 million in annual rev- Business Machines Corp. are feel- IBM, others feel pinch enue. “We will need a miracle to do ing the pinch. IBM’s revenues from as financial crisis better than we did last year.” He an- server sales fell 4.2% to $3.86 billion Bed Bath cleans up nicely ticipates a decline in revenue this in the third quarter, according to re- n a switch that is savaging sales of retailers across the crimps IT spending quarter, adding, “How much it will search firm Gartner. While server go down we will know when the sales represent just a fifth of Big board, Americans are actually saving more and shopping BY AMANDA FUNG books close.” Blue’s overall business, analysts still less. Sales are falling off a cliff at some chains, including Spending on software and other expect companywide revenues to I Macy’s. Others, like Mervyn’s and Circuit City, have filed for historically, the fourth quarter is information technology services drop 0.8% in the fourth quarter. the best of the year for technology generally follows the nation’s gross bankruptcy and face liquidation. companies. But for the first time domestic product, which declined Confidence remains low Bed Bath & since Sept. 11, tech businesses are 0.5% in the third quarter and is pro- new business is also difficult to win Beyond, however, is bracing for a cold holiday season. jected to drop further in the first half as confidence in the economy re- emerging as a clear With the nation officially in a re- of 2009. As a result, IT spending is mains low. M5 Networks, an Inter- cession, tech customers are re-ex- estimated to grow just 3.4% this net phone provider that boasts clients exception.The Union, amining their budgets and post- quarter, compared with 5% such as Dylan’s Candy Bar N.J.-based company is poning purchases that would to 8% in previous quarters of and the Brooklyn Brewery, one of the only normally be made in the last three 2008, according to Forrester 3.4% says three prospective retailers whose months of the year.Some clients are Research. In the first quarter ESTIMATED clients—a media firm, a GROWTH in earnings are expected unable or unwilling to finance of next year, IT spending is IT spending nonprofit and a high-end re- equipment because of the credit expected to grow at a paltry this quarter tailer—have recently shelved to grow next year. crunch. Others are waiting for the 0.5%. their Internet phone projects Analysts surveyed by bloomberg news economy to pick up before they in- The credit crunch has sharply until the first half of 2009. vest heavily in technology. curtailed IT spending. About 50% Despite the tough quarter, local Thomson Reuters are forecasting a 4% increase amid a similar Until the fourth quarter, tech of Axispoint Inc.’s clients rely on tech firms are confident that they pickup in sales. spending was holding up relatively credit to buy tech services,according will be able to close more deals ear- Key to that bullish outlook is the company’s excellent well in 2008,in part because some of to the firm’s chief executive, Dan ly next year. But until the economy management—and the liquidation of top competitor Linens the products help companies reduce DiSano. The Manhattan-based improves, firms are taking steps to costs. But as the financial crisis firm was going to close on a project shield themselves. M5 recently ’n Things. tightened its grip on the economy worth more than $1 million before raised $1.4 million from its existing In the short term, however, aggressive discounting by this fall, that changed. the end of the year.Then the client’s venture investors and took out a line Linens as it clears out inventory is causing a lot of pain at Bed bankers put the brakes on financing of credit for an undisclosed sum. Companies hold back and suggested the deal be postponed “During this economic hurri- Bath, which earlier this month dollars. This week, it is expected to “everyone is being cautious and until January.To get a portion of the cane, it is important to be disci- warned that comparable-store sales post flat quarterly earnings, not bad holding back on spending,” says business, Axispoint convinced the plined,” says Dan Hoffman, chief during the current fiscal quarter are in these hard times. Still, the compa- Gerald Cohen, chief executive of client to do part of the project this executive of M5. “I am hoping for expected to slip 5.6%, pulling down ny’s shares have slid 41% since Elec- Information Builders, Manhattan’s month and the rest next month. the best and preparing for the earnings per share by a third. The tronic Arts called off its $25.74 hos- largest privately held software firm, Even giants like International worst.” I stock has tumbled 24% in the last tile bid for the company three three months, hitting $24.56 Friday. months ago. EA, however, has fared But Linens will disappear short- far worse. Its stock has tumbled 61% ly after the holidays,and once it does, in the period,and just last week,it cut Bed Bath should rebound quickly. its forecast for 2009. William Blair & Co. analyst Jack Murphy says it has an opportunity to seize market share equal to 25% of Darker outlook 2008’s sales,which figure to be about for inn crowd $7 billion. The new business should help Bed Bath boost comparable- last week, PKF Hospitality Re- store sales by 2% next year. search forecast that revenues per —aaron elstein available ho- The partners of RSM McGladrey tel room will drop by 7.8% and McGladrey & Pullen congratulate 2nd chance works next year— for Take-Two the fifth- our newest managing director and partners. largest slump crime continues to pay at Take-Two since 1930— Interactive. The current rendition of and that they Who’s the video-game maker’s hyper-vio- wouldn’t re- lent Grand Theft Auto (below) fran- bound until deep into 2010. For chise, GTA IV, smashed records in its Starwood, which owns, operates and Behind licenses no fewer than 282,000 ho- tel rooms around the world under such brands as Sheraton, W and Michael Grossman Steven Schwartz Cristin Singer Westin,that’s bad news.No wonder Success? Managing Director Partner Partner credit rater Fitch piled on last week, Transaction Support Health Care Food & Beverage lowering the outlook for Starwood Services Services Services and two other big hotel groups to “negative.” So far this year, Star- first week on the market back in wood’s shares have shed 65% of April,with sales topping half a billion their value. I

MOTLEY CREW LEADS PACK IN RARE UP WEEK www.rsmmcgladrey.com Winners include three stocks that have had a +23.0% RSM McGladrey and McGladrey & Pullen are member firms of RSM International, an affiliation rough three months: an +19.6% of separate and independent legal entities. Though separate and independent legal entities, +15.4% RSM McGladrey and McGladrey & Pullen work together to serve clients’ business needs. oil company, a grocer and an apparel outfit. Hess A&P Liz Claiborne

4 | Crain’s New York Business | December 15, 2008 Project6 11/12/08 12:56 PM Page 1

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NEW YORK,NEW YORK We are pleased to have represented edited by Valerie Block

One Hudson Square New York, NY Vixen publication back in chase ven as magazines drop like flies, one title, Vibe Vixen, is coming back from the dead. in the lease of E Targeting young urban women, the Vibe spinoff launched in 2005, but the stand-alone title was 16,500 SF to killed two years later in a budget-cutting move. Now, according to a media kit making the rounds of advertising agencies, Vibe Media Group will revive the magazine as a quarterly newsstand title in the spring. Insiders say that Vixen’s advertisers, drawn to its Nature Publishing female readership, helped prop up the mother ship by buying pages in Vibe. Acquired by the Wicks Group in 2006, Vibe has struggled these past two years. Ad pages fell 19% this year, according to Media Industry Newsletter, after falling 20% in 2007. Vibe Media Chief Executive Steve Aaron says that the company has a number of initiatives in the works but that it’s too soon to talk about Vixen coming back, especially in Robert Constable and Andrew Peretz represented the current economy.“The [Vixen] concept and brand are strong,” he says. “But we’re going the landlord. to be prudent on the timing.”

25% of the proceeds from photo Square Hospitality Group, which Art show sales sales will be donated to St. Peter’s owns such notable eateries as to good cause Food Pantry.The show closes in Union Square Cafe and early January. Gramercy Tavern, may have been there is an upside to vacant feeling upbeat that day.The retail space: It can help shelter the luncheon was in honor of Eleven homeless and hungry. Boutique Madison Park’s celebrated chef Icon Group, owner of the bargains Daniel Humm, named one of 10 brand-new Gem Hotel in Grands Chefs by elite hotel and Chelsea, has donated an empty with upscale department stores restaurant organization Relais & space on the hotel’s ground floor practically giving items away these Châteaux. to a photo exhibit that needed a days, many customers have been He may also be relieved that so new home.The art installation emboldened to take their far, his customers have been features pictures of iconic figures bargaining tactics to boutiques. taking his advice and venturing Olive & Bette’s out. “We are fortunate that our founder, Stacey Pecor, organization as a whole is slightly says shoppers at her ahead of last year,” says USHG four stores have been partner David Swinghamer. But, he asking for better adds, “we expect 2009 to be very deals, even on full- tough.” price items like hot- selling Ugg boots, Contributors:Theresa Agovino, especially if they’re Lisa Fickenscher, Matthew Flamm, getting a couple of Adrianne Pasquarelli pairs. To compete in such a discount- ADS AWAY heavy retail environment, Ms. TNS MEDIA Intelligence Weiser EYE-CATCHING: The Gem Hotel gives space for an art show. Pecor says she has no reported last week that total choice but to comply U.S. advertising expenditures The Definition of with customers—or declined by 1.7% for the from the ’60s, including Dr. Martin risk losing the sale. “We’ll work first nine months of the year, Excellence in Accounting Luther King, Robert F. Kennedy and with them,” she says. compared with the same period Joan Baez, that were taken by a year earlier. and Consulting Services Rowland Scherman, the first official Restaurateur photographer for the Peace Corps. NEWSPAPERS -10% Weiser LLP is a full service rm with professionals who are He later went on to shoot for braves weather dedicated to assisting clients in a variety of industries including: publications such as Life, Look and • Apparel • Manufacturing and distribution National Geographic.The at a recent luncheon at his RADIO -9% • Automotive • Media and communications exhibition opened in the rectory resurgent Eleven Madison Park, Danny Meyer • Financial services • Not-for-pro½t of St. Peter’s Church in Chelsea in restaurateur tried to late November, but had to move make light of the gloom that has • Health care • Real estate MAGAZINES two weeks ago. descended on the city since the -4% • Life sciences Dave Hartford, a gallery owner in stock market crash. For more information, contact Douglas Phillips at 212.375.6701. Orleans, Mass., who arranged the “It’s like really bad weather,” exhibit, says the hotelier stands to said the famous foodie. “You can TV +2% Weiser LLP Certied Public Accountants gain as much as his client. “The decide to stay in the house or go OFFICES: New York City | Long Island | Westchester | New Jersey space is definitely getting outside. ... It takes fear to noticed,” he says. perpetuate fear.” INTERNET +7% © 2008 Weiser LLP – All Rights Reserved www.weiserLLP.com In the spirit of giving back, Mr. Meyer, the head of Union

6 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 7 12/12/2008 7:59 PM Page 1

years along with rest of the gambling industry. Mr. Trump says that he is Trump’s towering brand troubles unhappy that his name is on Trump Entertainment, the floundering Continued from Page 1 by the problems with his 92-story which then countersued. casino company—though he quick- opments bearing the Trump name Chicago project, Trump Interna- ly adds that he doesn’t have anything have been halted,named in lawsuits, tional Hotel & Tower, which bears All in the same boat to do with the firm’s management. or both. his name and uses his money.About given the dire state of real estate He also notes that his 26% stake Mr.Trump insists that this string 30% of the units are still unsold, markets everywhere,it isn’t surprising represents just 1% of his net worth. of events isn’t a replay of his travails sources say. Meanwhile the legal that some Trump projects are strug- Nonetheless, Mr. Trump says he in the early 1990s,when the collapse battle with his lenders is just begin- gling, developer Dean Geibel says. is considering either taking his of the real estate market nearly drove ning, leaving Mr. Trump’s money “Everyone is having trouble,” name off the company or stepping in him into bankruptcy.He has learned and his brand on the hook. says Mr. Geibel, who licensed the to help manage its plush holdings. his lessons, he says, and is much The lawsuit he filed in Novem- Trump name for a residential build- The financial fallout from the more financially conservative. ber against his Deutsche Bank-led ing in Jersey City. casino operation may prove to be Many of his deals are licensing lenders,cites numerous reasons why Nonetheless, he estimates that small. The big question is whether arrangements, under which he is he should not be required to repay the Trump name added 20% to the the Trump brand can withstand the

paid simply for the use of his name. the loan immediately. These in- prices of his apartments. multiple blows at a time when the getty images “I have a lot of cash,” says Mr. clude a breach of fiduciary respon- In Atlantic City, though, the developer’s rococo image is at odds THAT TOPPLIN’ TOWN: Some 30% of units in Trump. “I am not in trouble.” sibility on the part of the bank, Trump magic has faded in recent with the current climate. I Trump International in Chicago remain unsold. Financially, maybe not. But the Trump brand—a major source of his earnings—has seen better days. His woes may tarnish his all-impor- tant image as a business genius. In addition,his brand is looking decid- edly dated, standing as it does for over-the-top luxury at a time when the recession is driving conspicuous consumption out of style. “Donald Trump is kind of like Hugh Hefner,” says Brenda Smith, managing partner at Brenda Smith + Associates, a branding agency. “He has this anachronistic feel.” The shift in Mr. Trump’s stature comes after more than two decades in which his brand had been golden. The developer has reaped revenues from Trump-branded condominium towers and casinos, from ties, shirts and cuff links, and even from vodka. His aura led Tampa builder SimDag/RoBEL to fork over a $2 million licensing fee and 50% of its proposed luxury condo’s net sales profits for the right to use the Trump name, according to a lawsuit. However, given the crumbling Florida real estate market, the proj- ect was never built, and Mr. Trump sued SimDag/RoBEL to force it to hand over unpaid fees. Adding to the mess, the buyer of one of the units in the planned Tampa project sued Mr. Trump, alleging that buy- ers were led to believe that Mr. Trump was part of the management team rather than involved only through a licensing deal. Disillusioned buyer meanwhile, Michael Mikelic says he is considering suing Mr. Trump to get back a deposit he made on a stalled condo project in Mexico that bears the famous name but has yet to be built. Mr. Mikelic, president of real estate company King Penguin Properties, says he has made money buying and reselling condos in oth- er Trump projects. But he now doubts that he would ever buy an- other,because he has lost confidence in the name. Mr. Trump says the overall strength of his reputation overrides any negative press generated by soured deals.He adds that the prob- lematic licensing deals don’t affect his bottom line because he doesn’t commit any of his own cash. The developer adds that 2008 has brought many triumphs,includ- ing the sale of his home in Florida for nearly $100 million and the pur- chase of a posh New Jersey country club out of foreclosure at a bargain- basement price. Those successes may be dwarfed

December 15, 2008 | Crain’s New York Business | 7 CNYB 12-15-08 A 8 12/12/2008 7:48 PM Page 1

Recyclers get no refund

Continued from Page 3 would be processed into boxes for new computers, video-game con- soles and other merchandise.Plastic recyclables were spun into carpet and clothing fibers. “The economic situation in the recycling business is very tied to the economic downfall in the U.S.,” ex- plains Andrea Schaffer, principal of LACK OF SALES: It’s been environmental consulting firm City- harder to attract shoppers and Matters and chair of the Manhattan get them to spend money at Solid Waste Advisory Board. “If no

photos by buckphotos ennis the city’s holiday gift markets. one’s buying the new computer, there’s no need for the packaging.” nage, deeming it too tacky for the ornament shop. “Mostly everyone The collapse in pricing was quick classy image they are trying to here is feeling the crunch.” and brutal. Holiday vendors maintain. Though Ms. Sinderbrand, like Not all vendors are paying atten- her neighbors,has cut prices,she has Plunging prices tion to that self-imposed directive, also cut back on staff.She now mans as recently as September, recy- get lump of coal though. Paul-Philippe d’Auriac, the tiny booth herself every day,and clers were able to sell paper waste to chief executive of high-end hand- is hoping for sales of $35,000 by the processors for $110 per ton.By mid- bag company Debbie Brooks, is season’s end, a drastic decline from October, the price had dropped to Continued from Page 2 cheap. For a four- to six-week peri- treating his market booth as more of previous years. about $20 per ton. By the end of the at Grand Central Terminal, Union od,vendors pay between $4,000 for an outlet than a regularly priced Rather than adjust costs, other month, paper was worthless, but Square, Columbus Circle and a stall in Columbus Circle to a shop. He has dropped prices on his vendors are trying to spur sales plants were willing to accept the Bryant Park—have long been a sta- whopping $60,000 for one of merchandise, which ranges from through customer interaction. At tonnage for processing. By Novem- ple of holiday shopping in the city. Bryant Park’s kiosks. And because $10 to $500,by nearly 20% this year. Bryant Park’s Kizmet Yogawear, ber, processors were actually charg- But vendors are now facing one of many vendors sell items they de- Though it has helped a little, sales Mollie Hadley hired yoga instruc- ing recyclers to take the refuse off the worst seasons ever, with some sign and make themselves, they are still down 15%. tors to demonstrate exercise poses in their hands. seeing sales decline by as much as can’t take advantage of the benefits front of her booth on Saturdays. “There is absolutely no question 40% compared with last year. that come with mass production Feeling the crunch Since business is a fraction of what that prices have fallen further, and Already operating on and volume selling, as some similarly, Rosario Torres, who it was last year, she also plans to hire more quickly, than anybody can re- tight margins, these small of their larger retail com- sells hand-painted glass jewelry and them for Thursdays beginning this member,” says Tom Outerbridge, businesses can’t match the 40% petitors can. hand-made scarves at a kiosk in week. general manager of Sims Municipal deep discounts offered by EXPECTED “They haven’t been able Bryant Park, has lowered prices by “The crowds just aren’t here,” Recycling, which has a 20-year con- sales decline at mainstream retailers. Some some holiday to match the crazy dis- about $5 per item. But her efforts Ms. Hadley says. “I’ve done a few tract with the city for residential have tried the discounting market shops counts of department thus far have been in vain. discounts, but my pricing is so low curbside recycling.The company is in route anyway, while others this year stores,” says Susan Scafidi, “People hear the price and just already.” a better position than most recyclers have tried marketing gim- an intellectual property walk out,” Ms. Torres explains, cit- At 30-year-old Shearling because, as a division of Sims Metal micks to get shoppers’attention,but and fashion law professor at Ford- ing a $39 scarf, an amount that used World, a seller of slippers, earmuffs Management, it’s part of a publicly few have been able to convince ham University School of Law. to be considered reasonable for a and hats in Union Square, price ne- traded, $1.6 billion company. shoppers to part with their money. “They’re also competing with [dis- gift. Ms. Torres expects to end the gotiation is key. It has to be, when The change was crippling for count] stores like Marshalls and TJ season with business down 10% to sales are off 40% this year. companies like Sprint Recycling, High overhead Maxx.” 30%. “The customer now has the which had been collecting paper discounting is difficult for Even if vendors were financially Lowering prices has not helped edge,” says Maria Morrison, who trash practically for free because re- many of the holiday market ven- able to offer deep discounts like to bring in sales at Grand Central’s owns Shearling World with her sis- sale values had been so high. Com- dors because of high overhead their competition, advertising the Mia Designs, either. “Business is ter,Vera.“If you’re sitting here for an pany executives could not be costs. While the booths at most sales is a no-no. Most management down 30% from last year,” says hour and not doing anything, you reached for comment. According to markets are small, they’re not companies frown on discount sig- Rachel Bellone, who works at the have no choice but to say yes.” I the city’s Business Integrity Com- mission, the company stopped serv- ice on Nov. 1. New customers One year later, investors down on Dow Jones “we didn’t sleep for two weeks,” says Joe Burke, director of sales for Action Carting Environmental Ser- Continued from Page 3 He adds that, print advertising Business cable network as one ex- “That relationship with CNBC vices, about the rush to pick up more, News Corp. executives insist aside, the recent financial turmoil ample of the “pipes” that News essentially gives the lie to any keen abandoned customers. The that Dow Jones will pay off in the has been good for the franchise. Corp. is laying to send Dow Jones notion of synergy,” says Michael Newark-based concern nabbed the end. Newsstand sales for the Journal content around the world. Wolff, author of The Man Who Empire State Building, Rockefeller They say that print advertising have risen 20% since the crisis began Owns the News, a new book on Mr. Center and others. brings in less than a third of the in September. Traffic for the Wall Murdoch. The pricing situation for plastics company’s revenues and that digital Street Journal Digital Network, Murdoch Mr. Wolff believes that Mr. is also serious. Clear plastic, often advertising and online subscription which includes WSJ.com and Mar- Murdoch loves newspapers and used for milk gallon containers, was revenues are posting double-digit ketWatch.com,spiked 42% in Octo- coveted the coveted the Journal, and figured out selling at 45 cents per pound two percentage increases. In addition, ber,reaching 13.7 million unique vis- a business rationale for the deal af- months ago. Now it’s worth about they maintain that the Dow Jones itors, according to Nielsen Online. Journal, his terward. 11 cents per pound. Soda bottle newswires and specialized business That may not be the worst thing plastic was selling for about 20 cents newsletters are poised to take off in Potential synergies biographer says for Dow Jones or for News Corp., per pound in October; now it’s India, China, Brazil and other some newspaper experts agree which is diversified enough to in- worth just 4 cents per pound. countries once the global economy that Dow Jones will only become dulge its chairman’s whims, Mr. City residents produce about starts to recover. more valuable over time. Wolff and others say. 20,000 tons of plastic and other recy- “There is massive change going “We don’t know what the media “If I were a shareholder, I wouldn’t clables per month. Warehouse space on, and the need that will exist for world is going to look like in three But others are skeptical of any know why [Mr. Murdoch] did this, is too expensive to stockpile,so he has the kind of information we can pro- to five years,but News Corp.is more long-range plans for integrating and probably nothing in the num- to move the material at any price. vide—both business-to-business ahead on getting there than any oth- Dow Jones with the business chan- bers would explain why,” says veter- “I don’t think anyone is expecting and in the Journal—is only going to er news company,”says Ken Doctor, nel, pointing to the Journal’s exclu- an newspaper analyst Lauren Rich prices to stay like this for a year,” he increase,”says Dow Jones Chief Ex- media analyst with Outsell Inc. sive partnership with CNBC,which Fine. “But I would still say that so says. “If we’re not at the bottom yet, ecutive Les Hinton. Mr.Doctor sees the budding Fox runs through 2012. far, it’s gone pretty darn well.” I we’re very close.” I

8 | Crain’s New York Business | December 15, 2008 Project4 9/29/08 1:39 PM Page 1

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VIEWPOINT Weighing taxes and tourism editor in chief Rance Crain publisher, vp Jill R. Kaplan he official statistics say the cost of an steep that the city lost 6,000 hotel jobs. editorial director Greg David average hotel room in New York City The industry continued to suffer until Rudy Giuliani took EDITORIAL editor Xana Antunes these days is just over $350 a night. But office and repealed a 1% city surcharge, which spurred the managing editor Robert Hordt when visitors go to check out, they find state to eliminate its 5% add-on. It is quite possible the deputy managing editors Valerie Block, Erik Ipsen that the real cost is about $400.The council could set off the reverse of that scenario, encouraging contributing editor difference: taxes imposed by the city and state legislators to pile on their own higher tax.Then the Elizabeth MacBride columnist Alair Townsend state that account for 14.5% of the bill. additional tax won’t seem so minimal. senior reporters Theresa Agovino, Now the City Council wants to soak tourists The hotel industry’s role in the city can’t be Aaron Elstein, Erik Engquist, Lisa Fickenscher, and businesspeople even more by raising the overstated. Wall Street may be the engine of Matthew Flamm, Miriam Kreinin Souccar T HOTEL TAXES reporters Barbara Benson, Amanda Fung, city tax. Of course they do. What is better than IN MAJOR CITIES the local economy, but the hospitality industry Daniel Massey, Adrianne Pasquarelli, taxing someone who can’t vote to throw you is almost as important because of the number Hilary Potkewitz, Gale Scott, Matthew Sollars Houston 17.0% restaurant critic Bob Lape out of office? There’s a downside, though: of people it employs and because it draws so art director Steven Krupinski New Orleans 15.5% deputy art directors Carolyn McClain, Council members are playing Russian roulette many dollars to the city. Daniel Mednick Chicago 15.4% with one of the sectors the city will need the At last week’s Crain’s New York Business Arts staff photographer Buck Ennis New York 15.4%* copy desk chief Wendy Zuckerman most during this economic recession. and Culture breakfast, new Guggenheim chief copy editors Michele Arboit, Consider the specific proposal before the Dallas 15.0% Richard Armstrong said that his biggest fear Thaddeus Rutkowski Denver research editor Denise Southwood council—which seems so benign on its face—to 14.9% about the future is that museum attendance, www.crainsnewyork.com raise the hotel tax by 0.875%, or $3 a night for Washington 14.5% fueled in large part by tourists, will decline web producers Kira Bindrim, Elisabeth Butler Cordova the average room, generating $80 million.The *If proposed increase is approved. sharply. Council Speaker Christine Quinn money would allow the city to train more police Source: Lodging Advisors should listen. She is wrong when she claims EDITORIAL AND ADVERTISING OFFICES 711 Third Ave., New York, NY 10017-5806 now, rather than in the second half of next year. that visitors to the city will have to do their editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 However, the tax increase means that New York City will part to solve the budget problem.They don’t have to because Cable craincom nyk be tied with Chicago for the third-highest hotel tax in the they don’t have to come here. Fax 212.210.0499 Entire contents ©copyright 2008 Crain nation. In recessions, all visitors become more price sensitive, The tax increase will only delay by a few months the Communications Inc. All rights reserved. especially professionals who plan conventions and meetings. budget cuts required by plunging revenues. And if tax ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. In the late 1980s, city and state politicians desperate for increases are needed, they should be broad-based and TO SUBSCRIBE: revenue drove the city’s hotel tax up to 21.5%, the highest in temporary. Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. the world.The convention industry launched a boycott of Council members have time to reconsider this step. If they www.crainsnewyork.com

New York, which contributed to a decline in room nights so won’t, the mayor should block it. ADVERTISING AND MARKETING senior account managers Cornelius P. Gore, William E. Squitieri commercial real estate sales manager LETTERS TO THE EDITOR Cory Marks account executives Irene Irvill, Courtney McCombs, Anthony Mowad western account manager Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified Wal-Mart in NY: the pros and cons print & online John Gallagher sales coordinator, print & online Lulé Haznedari PUBLIC ASSISTANCE WOULD middle-class jobs our city Grocery is a critical part of the associates the chance to build sales coordinator Anita Perrino MAKE UP FOR LOW WAGES desperately needs. Obviously, merchandise offering that our careers. At the same time, we will credit Todd J. Masura 313.446.6097 Wal-Mart can potentially be the customers want and expect at a be an advocate for our customers marketing director Amy Crossman as the crain’s editorial “Hard source of many of those jobs, but Wal-Mart. According to a recent by finding solutions that save them marketing manager Jill H. Bottomley marketing coordinator Jenny Mashberg times and Wal-Mart” did on that can only happen if it respects Global Insight study, Americans money on their groceries—and circulation manager Andrea Richardson Dec. 8, Wal-Mart’s supporters shopping at supermarkets could other products that their families assistant circulation manager have claimed that, by coming to have saved more than $21 billion need. We won’t let them down. Rosalie Ford New York, the giant retailer could last year purchasing the same steven v. restivo general manager, interactive help consumers weather today’s groceries at Wal-Mart. Director, Corporate Affairs, Marc Minardo economic crisis. While we currently do not have Northeast Region web developer, interactive What they fail to point out is any locations in New York City, we Wal-Mart Stores Inc. Chris O’Donnell that it would come at an enormous know there are a growing number NEW YORK PRODUCTION price to New York taxpayers. of city residents who already work ONE DYNASTY production and pre-press director A new report by the Fiscal at our stores.That’s because we Michael Corsi bloomberg news REPLACES ANOTHER Policy Institute points out that, offer a competitive wage—on advertising production manager each year, the low wages earned by the right of its workers to organize average, regular full-time hourly it seems that our next senator Marilyn DeMilta retail workers costs New Yorkers and bargain for the wages and associates in New York earn will be a Cuomo or a Kennedy, PUBLISHED BY CRAIN COMMUNICATIONS INC. $851 million in taxpayer-funded benefits they need. $11.56 per hour—and affordable because a Clinton is being chairman Keith E. Crain public-assistance programs (such stuart appelbaum health care benefits to both full- elevated. president Rance Crain as food stamps and Medicaid). In President and part-time associates. Dynasties elsewhere went out secretary Merrilee Crain other words, the public is now Retail, Wholesale and Department We will continue to create in 19th-century China—and look treasurer Mary Kay Crain executive vp, operations William Morrow making up the difference between Store Union economic opportunity by how well they’ve done lately. senior vp, group publisher Gloria Scoby what cut-rate retailers want to pay providing good jobs that give our john h. steinberg group vp, technology, circulation, and what their employees and their WAL-MART OFFERS manufacturing Robert C. Adams families actually need to survive. COMPETITIVE PAY vice president/production & The answer to the crisis facing manufacturing David Kamis low-income families in our city perhaps more than ever before, WHAT’S COMING UP IN CRAIN’S? chief information officer Paul Dalpiaz corporate circulation director isn’t to encourage more poverty- Wal-Mart is delivering on our core Patrick Sheposh wage retailers to come to New mission to save people money so Annual Economic Real York. Instead, policymakers, they can live better. And we are Book outlook estate founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) community leaders and labor need doing it at a time when people of Lists report report to work together to assure that here in New York City and all Dec. 22 Jan. 5 Jan. 12 merchants create more of the across the U.S. need us most.

10 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 11 12/11/2008 8:53 PM Page 1

more profitable than ever. In his famous book, published in 1989,Mr.Lewis wrote that the Wall Street boom of the 1980s was unique. “Never before have so many un- skilled 24-year-olds made so much money in so little time. … What happened was a rare and amazing glitch in the fairly predictable histo- ry of getting and spending.’’ Mr. Lewis, in a recent issue of Portfolio, now says he was wrong: “I thought I was writing a period piece about the 1980s in America.Not for a moment did I suspect that the fi- nancial 1980s would last two full decades longer or that the difference in degree between Wall Street and ordinary life would swell into a dif- ference in kind.I expected readers of the future to be outraged that back in 1986, the CEO of Salomon Brothers, John Gutfreund, was paid $3.1 million. What I didn’t expect was that any future reader would

john h. howard look on my experience and say,‘How quaint.’ ” The question is whether this year’s financial crisis represents the Playing liar’s poker end of the story or if the current re- trenchment is just another chapter. Mr. Lewis, like so many Ameri- cans, welcomes Wall Street’s come- with Wall St.’s future uppance. He thinks America will be better off when securities compa- nies make the same kind of profits as n the mid-1980s, Salomon Brothers ruled Wall Street, other companies, and bright young setting new standards for market dominance and prof- people no longer can make so much money that they can buy whatever itability through its prowess in the bond market. The their hearts desire. firm’s capital was a towering $3.3 billion, and Chief Ex- He and others assume that regu- ecutive John Gutfreund won both envy and scorn for his lation—promised by senators, rep- oversize $3.1 million paycheck. Michael Lewis, who chronicled resentatives and President-elect I Barack Obama—will prevent the all this in Liar’s Poker—still the best book ever on the business— recklessness and excess it financed. In my class “How to Cover Wall made $90,000 as a re- topped $68 million, and Street” at the CUNY Graduate We are pleased to have represented ward for the best year the average wage for School of Journalism, we discussed ever by a second-year Wall Streeters—includ- Liar’s Poker as a way to sum up all we salesman at the firm. ing clerical staff—hit had learned about the business. The In today’s dollars,Sa- $400,000. 11 students enjoyed Mr.Lewis’book. lomon’s capital would be Everyone can work Everyone does. But when asked about $7 billion, Mr. out the multiples. Wall about his new thesis, they unani- Gutfreund would take Street didn’t just go mously agreed he’s wrong again. home about $7 million through three booms Wall Street will find a way to and Mr. Lewis would and busts in the past reinvent itself,they said,because you make $180,000. Con- three decades—the can’t regulate something that hasn’t sider that Goldman GREG bond rally of the 1980s, been invented, and Wall Street will Jewish Education Service of North America Sachs, the Salomon DAVID the Internet explosion find some new financial tool the Brothers of today,boast- of the late 1990s and world needs. It’s our lesson from the ed capital of $42 billion the housing securitiza- financial crisis. I hope we are right, at the end of 2007, Chief Executive tion boom of the past four years—it because if Wall Street is permanent- in the lease of 13,500 RSF Lloyd Blankfein’s salary and bonus emerged from each bust larger and ly hamstrung, so is New York.

at CRAIN’S ONLINE POLL 318 West 39th Street Would Caroline Kennedy be a good pick to replace Sen. Hillary Clinton? New York, NY 515 VOTES Date of poll: Dec 8

No. She is not Yes. She is smart, and experienced or she has both a good aggressive enough, relationship with Carri Lyon and Robert A.B. Baraf represented and she does not . 55% 45% . President-elect Barack the tenant in this transaction. appear to have the Obama and the star thick skin needed to power that New Yorkers be a top-rate like in their elected politician. officials. bloomberg news For this week’s questions: Go to www.crainsnewyork.com/poll to have your say.

December 15, 2008 | Crain’s New York Business | 11 CNYB 12-15-08 A 12 12/11/2008 8:54 PM Page 1

Wheeler-dealers close on bike bill SENATE LEADER In Malcolm’s wake THE INSIDER SPECULATION IS MOUNTING that a new state Senate boss will emerge since after being stalled for four Democratic leader Malcolm Smith’s ill-conceived deal with dissidents fell by Erik Engquist and Matthew Sollars years, a bill to allow bicycles in apart last week. office buildings and multifamily Mr. Smith announced that he was pulling out of an dwellings is rolling toward passage. agreement with the Senate’s so-called Gang of Three— The Bloomberg administration has Democrats Carl Kruger, Ruben Díaz Sr. and Sen.-elect essentially endorsed the measure, Pedro Espada. In fact, Mr. Smith had already begun to edge On the Chuck wagon introduced by City Councilman away from the deal after his fellow Democratic senators David Yassky, D-Brooklyn. expressed outrage that he had conceded too much power to Smith he selection of New York’s U.S. But office building owners are undeserving rebels without consulting his conference, attorneys next year will be “all concerned that bikes will be wheeled leading the trio to decide they could not trust him. through lobbies and into passenger Mr. Smith attempted to backtrack by saying he had not formally about Schumer,” an insider says. elevators. Marilyn Davenport of the T committed to the deal and that it could be undercut later. That Charles Real Estate Board of New York says As the state’s senior U.S. senator, bit of political heresy eroded the little faith that some Schumer would normally play a key role in that in some properties, freight elevators are in constant use in the Democrats still had in him. the selection; his influence over the morning, when bike commuters are “Malcolm Smith is mortally wounded,” says one. “He cannot appointments made by President-elect arriving for work.The elevators lead this conference. He is going to have to be replaced.” Barack Obama often shut down at 6 p.m., which Yet so far, no successor has emerged. Few expect it to be the will be even more pronounced current majority leader, Republican Dean Skelos, who with Sen. Hillary Clinton moving to the would make it difficult for people Skelos working late to get their bikes out of previously rejected the power-sharing State Department. their buildings. agreement that Mr. Smith reached with the Gang of Three. The two leading candidates for One possibility is Jeff Klein, a Bronx Democrat who raised the Southern District—which prodigious amounts of money to help Democrats win a Legislators majority of Senate seats but received little gratitude from Mr. includes Manhattan, the Bronx lay low on pay Smith. Another viable alternative is Eric Adams, but he and six suburban counties—have remains a Smith supporter. bloomberg news ties to Mr. Schumer. Top if state legislators ever give Klein Eric Schneiderman of Manhattan, a leading candidate judges—and themselves—pay for Democratic minority leader before Mr. contender Preet Bharara is chief and Lev Dassin, who was named raises, it’s during the lame-duck Smith won the post two years ago, is considered smart and counsel to Mr. Schumer on the interim U.S. attorney when Michael period, between the November hard-working, but colleagues find him off-putting. Judiciary Committee, and he led the Garcia resigned last month. election and Christmas. It won’t Given the lack of competition, supporters of Mr. Smith are Senate investigation into the firing Two names are frequently happen this year, since the optimistic that he will survive. “You can’t beat somebody with of eight U.S. attorneys by former mentioned for the Eastern District Assembly has no plans to come nobody,” says one. Attorney General Alberto Gonzales. post, which covers Staten Island, back for a special session. In any Mr. Smith’s core supporters are fellow African-American Mark Pomerantz is a partner, along Brooklyn, Queens and Long Island. event, Albany is focusing on closing Sens. Adams, John Sampson and Kevin Parker of Brooklyn Adams with Mr. Schumer’s brother, at law Dan Alonso, a partner at Kaye a massive state budget deficit and and Bill Perkins of Harlem. But if Mr. Smith proves unable to firm Paul Weiss Rifkind Wharton & Scholer, is a former chief of the on increasing Metropolitan right his ship, they would have to abandon it. Garrison, and he has done two stints Eastern District’s criminal division. Transportation Authority revenues. Eric State lawmakers “I do like Malcolm and I think he has put his heart and soul into bringing in the Southern District office. Another Cuomo deputy, earn $79,500 home the majority,” says Mr. Adams. “I still see him as having the support in Two others are in the mix: Steven Corngold, a 16-year veteran of the plus lulus. Civil Court judges earn the room. But stranger things have happened.” Just this month, in fact. Cohen, the chief of staff for state Eastern District office, is also in the $125,000, and Supreme Court judges Attorney General Andrew Cuomo; running. make $136,700. I

NEIGHBORHOOD JOURNAL WE SALUTE YOU! Let there be lights In recognition of their longstanding service to FASHION CENTER BID BOARD OF DIRECTORS Greenpoint group the Board of Directors, their pivotal roles in the restores display founding of the BID and their dedication to George S. Kaufman Chairman christmas was looking a bit dim the Fashion District community, Aaron Gural of in Greenpoint, Brooklyn, this year. Newmark Knight Frank and Irving Schneider Martin Meyer For weeks, anxious residents won- Dana Comfort dered and worried about the fate of marie wallin Vice Chairmen of Helmsley-Spear, Inc. have each been named the traditional holiday lights along MANHATTAN AVENUE will be decorated. to positions of Director Emeritus of the Manhattan Avenue. Normally, the Barbara Blair Randall lights are blazing away by Thanks- President Fashion Center BID Board of Directors. giving,but as of early last week,nada. stead on its other charitable activi- Martin Meyer Now, thanks to Town Square, a ties—including Toys for Tots. The Treasurer community group that usually or- club then tried to pass the holiday ganizes arts programs for local chil- lights on to Rich Mazur, who is Eric Gural dren,the neighborhood is getting its forming a new group called the Secretary lights, even if they will be a bit late. Greenpoint Business Association. “The grinch will not prevail,” He declined. Ira Fishman says Gerry Esposito, the district Among other things, he notes, Alan Helman manager of Community Board 1.At dragging the necessary contributions Steve Kaufman press time,the lights were scheduled out of business owners along the strip Robert Savitt to be switched on by Friday,Dec.12. is time-consuming work. “Maybe Sidney Winoker “We heard a few weeks ago that next year,” he says, though he will Executive Committee there weren’t going to be any Christ- help with Town Square’s effort. mas lights,” says Susan Anderson, The good news is that Green- Aaron Gural Town Square’s chairwoman. “We point will get its lights. The bad Irving Schneider thought that would be a real shame, news is that this year’s display will Emeriti especially since 2008 has been such pale in comparison with previous ef- photo by Kelly Campbell Kelly by photo a hard year for so many people.” forts. Rather than being draped The great Greenpoint light scare across Manhattan Avenue, a string began when the neighborhood’s of LEDs will simply be snaked up ® Lion’s Club, which had sponsored the light poles along with colorful www.fashioncenter.com the light show for years, decided to garlands. ® unplug from the event and focus in- —matthew sollars

12 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 13 12/11/2008 6:21 PM Page 1

SMALL BUSINESS

AT A GLANCE PEACEWORKS Holding fast to a mission, even now HOLDINGS

FOUNDER Daniel Lubetzky tory in either Texas or Pennsylvania. or two late in making payments to As altruism fades, PeaceWorks focuses on Currently, KIND bars are made in PeaceWorks. And in several cases, YEAR FOUNDED 1994 cost, value; what price will consumers pay? Australia, and Mr. Lubetzky wants Mr. Lubetzky has had to reassure ANNUAL REVENUES More than to continue producing there and sell vendors’ creditors that American $10 million n recent years, companies health bar in the country in sales, ac- into Australian and Asian markets. companies like his are stable.Mean- have figured out clever ways cording to consulting group Spins. while, the PeaceWorks Foundation PRODUCTS Meditalia tapenades; to capitalize on consumers’ Mr. Lubetzky believes the econ- A few obstacles is seeing donations slow, especially a line of sauces called Bali Spice, good will. Lines such as omy is slowing his sales somewhat, some of mr. lubetzky’s nut and those from financial firms. made by a women-owned coop- Ethos Water and (Red) ap- but he is still planning for expan- fruit suppliers have had trouble get- “It’s a challenge raising funds in erative near Jakarta, Indonesia; Iparel contribute profits to charity, sion. To manufacture more KIND ting credit from banks, which has an environment where people are KIND fruit and appealing to shoppers’ consciences. bars for U.S. markets, he wants to led to slowdowns in shipments. hurting,” says Mr. Lubetzky. nut bars But when money is tight,consumers purchase or partner with a U.S. fac- Some retailers have also been a week —staff reports tend to think of themselves first. “Consumers in a tough economy are more self-serving,” says Laurie ADVERTISEMENT Demeritt, chief executive of the Hartman Group, a Bellevue, Wash.-based market research firm. One socially responsible entre- preneur says he’ll beat the recession A NEW SPIRIT OF and maintain his company’s mission with marketing based not on the company’s good works, but on the VENTURE COLLABORATION value of its food products. “We don’t rest on the laurels of our social mission to sell our prod- By David Blumenstein ucts,” says Daniel Lubetzky, whose Co-founder, The Hatchery firm, Manhattan-based Peace- Works Holdings, channels 5% of its profits into funding peace efforts in the Middle East.“Quality,taste and value are the drivers.” Launching a new high- mergers-and-acquisitions specialists, media execu- PeaceWorks’ donations go to- ward its nonprofit foundation,which tech business is always tives and members of the press. educates young leaders on both sides a challenge. That is Each pitch is followed by 15 minutes of interroga- of the Israeli-Palestinian conflict and especially true in today’s tion and constructive feedback from the panel. The works to raise the profile of moderate tumultuous economy. Gauntlet, which has been described as “American voices. Some of its products are also But even in difcult Idol meets venture capital,” is helping entrepreneurs made by people in conflict zones, such as a line of tapenades called times, there are still forge essential bonds with investors and potential Meditalia, produced in Israel with entrepreneurs out there with great ideas—and inves- strategic business partners. raw materials from Egypt and the tors ready to help put those ideas into action. Now, as a partner in Microsoft’s BizSpark program, West Bank. In any economic environment, creating a business The Hatchery will be able to play an even bigger role in helping entrepreneurs. Through BizSpark, startups Higher cost structure climate that can effectively nurture new companies requires a culture of collaboration. That’s a key gain access to Microsoft’s toolbox of design, devel- socially responsible companies’ missions give them higher cost reason why Silicon Valley has long been a hotbed of opment and production software tools and licenses, structures than competitors face. innovation. Here in New York, there is a growing spirit including a subscription to the Microsoft Developer They can’t cut costs or shift produc- of venture collaboration that is opening new doors Network (MSDN). BizSpark also connects startups tion as easily as other firms during a for technology startups. to a global network of business incubators, inves- recession, which will make the com- We see that collaborative spirit every day here at tors and advisors, and it offers the opportunity to ing year more difficult,experts warn. “Social entrepreneurs will have a The Hatchery, a new organization that is on a mis- be proled on BizSparkDB, an online directory where higher bar to hit in terms of quality sion to help entrepreneurs connect with business Microsoft promotes promising startups. This is a and value,” says Jed Emerson, man- experts and investors. On a global level, we see it in three-year program with no upfront cost, and a total aging director of Uhuru Capital efforts such as Microsoft’s BizSpark, a new program program cost of just $100. Management and an expert on so- that is offering startups and entrepreneurs easy ac- cial entrepreneurship. cess to software, market support and visibility that Mr. Lubetzky says he’ll keep his company focused on health and taste. can help lead to business success. The Hatchery and Microsoft’s BizSpark program are opening Its biggest seller is its KIND bars, Launched last year, The Hatchery is taking a new doors for technology startups and entrepreneurs which account for 90% of revenue. unique approach to grooming startups and giving The bars come in six flavors, each a them the exposure they need. We call it The Gaunt- combination of almonds,Brazil nuts, let. Six times a year, we hold a forum focusing on a Startups too often fall short because they don’t walnuts or peanuts and dried fruits— particular industry theme, such as mobile applica- have the time, connections or resources to focus on all held together with honey.“That’s it,” says Mr. Lubetzky. “All ingredi- tions, digital media or interactive advertising. key areas such as marketing and business develop- ents you can see and pronounce.” At each Gauntlet event, three startups or early- ment. With support from programs like The Hatch- Food companies like his may be stage companies chosen from a pool of applicants ery and Microsoft’s BizSpark, more startups and better protected from the recession get 7 minutes each to make their pitch to an expert entrepreneurs will have a better shot at success. than other socially responsible firms. panel. The panel is made up of industry-specic And, as we’ve seen time and again, the innovations Ms. Demeritt says the Hartman Group’s research shows that con- investors, executives, analysts and nanciers chosen generated by entrepreneurs can play a pivotal role sumers are slow to make changes in for their experience or expertise. We also invite an in creating new jobs and building sustainable local food and beverage purchasing habits. audience of venture capitalists, private equity and economies. So far, the suggested retail of $1.99 for KIND bars isn’t scaring consumers away. Sales have grown steadily since their launch in 2003 Learn more at microsoft.com/issues and doubled last year. The bars are now sold in 20,000 outlets,including © 2008 Microsoft Corporation 7-11, GNC, Wal-Mart and Whole Foods, and are the fastest-growing

December 15, 2008 | Crain’s New York Business | 13 CNYB 12-15-08 A 14 12/11/2008 7:33 PM Page 1

REAL ESTATE DEALS Publisher signs binding deal We are pleased to announce Comfort & Sons. It owns the prop- 50-year run. our appointment as Free rent period, erty with Charney-FPG , according Mr.Malta represented himself in build-out allowances to CoStar Group Inc. the transaction. Anastasia Mey- —theresa agovino ding, a broker with Walker Malloy help seal the deal & Co., represented the landlord. exclusive leasing agent for kensington publishing signed a —adrianne pasquarelli lease for 25,000 square feet at 119 W. In Village, French 1065 Avenue of the Americas 40th St. between Broadway and out, Mexican in New York, NY Sixth Avenue. The asking rent for Hedge fund grows the 15-year deal, which covers the mexican takeout restaurant Lime on Third Avenue entire 21st floor and half of the Jungle is growing. The eatery re- 22nd, was $52 a square foot. Cur- cently signed a 10-year lease for its renaissance technologies a 680,000-SF rently located at 850 Third Ave., second location. It will occupy 400 Corp., a hedge fund management Kensington plans to move in Febru- square feet at 77 Greenwich Ave.,at firm, is expanding at 800 Third Ave., class A office tower ary. Seventh Avenue. The subleasing an additional 6,700 The book publisher asking rent was $225 a square feet.The new space will bring was drawn to the build- square foot. the firm’s total to roughly 40,000 select availabilities ranging from ing because it is being re- Lime Jungle plans to square feet. Asking rents in the furbished. Additionally, open its new,second site building are $72 a square foot. 2,000 SF to 65,000 SF the landlords offered in February. If the Renaissance has 300 employees ample free rent and a branch works,co-owner and $20 billion under management. generous construction Enrico Malta plans to It was founded by former math pro- For leasing information contact: allowance, according to open several others. fessor Jim Simons, who is consid- Gregg Lorberbaum, a “[Takeout food] is ered one of the hedge fund indus- David B. Glassman Tara I. Stacom broker at Centric Real the trend now, it’s more try’s best managers. Estate Advisors, who affordable for people,” Sinclair Li and Sam Seiler, bro- 212.841.7827 212.841.7843 represented Kensington says Mr. Malta. kers at CB Richard Ellis Inc., repre- with his colleague Debra The space’s previous sented 3G Capital. Jones Lang Joseph A. Cabrera David E. Green Larsen. tenant, French restau- LaSalle negotiated on behalf of Re- The building was BOOKED: Kensington goes to rant Chez Brigitte, naissance. 212.841.7501 212.841.7934 represented by George 119 W. 40th St. closed recently after a —theresa agovino Hotels spring up in unsold condos

Continued from Page 1 tels rose sharply in 2008, according squeeze a return out of their invest- to data recently released by the May- ment. or’s Office of Special Enforcement. Offering these vacant units as City authorities have raided 55 sus- short-term “corporate housing,” pected establishments so far this which falls into a gray area of the year, issuing 310 violations—a 17% law,they’ve found willing occupants increase over last year, when they in the influx of visiting professionals conducted 32 surprise inspections. dealing with the unraveling of Wall Condo owners are becoming Street, as well as tourists looking for suspicious. “You’ll see people in the deals. lobby, eating breakfast, and they’re A quick search of sites such as just not dressed like they’re going to Hotels.com, Expedia.com or work,” says one resident who lives at Craigslist reveals a host of short- 88 Greenwich, where breakfast term rental options in fancy down- service is a prized amenity.The res- town buildings such as 88 Green- ident requested anonymity because Murray Hill Properties wich St. and the Ocean the homeowners’ association is

Building—decidedly not the one- feuding with the building’s develop- buck ennis night-stand type. ers about this very issue. The build- LUXURY ACCOMMODATIONS: Short-term ing remains 20% unsold, according rentals are available at 88 Greenwich St. is pleased to announce that Lots of extras to its management office,which also “building amenities include full insists that the building does not of- concierge service, library, deluxe fer rentals. The current fine is just $800 per sundeck, party room, billiards room The remaining units may not be building. “It’s a huge problem and Don D. Kim and a full fitness center with compli- sold for some time.Downtown con- can be scary for a lot of people,” says mentary yoga,” reads travel site Ex- dos have become even harder to sell Ms. Krueger. “You like to think you pedia.com’s description of 88 recently, as prices in more desirable know your neighbors.” has joined Murray Hill Properties as Greenwich. Calls to the building’s areas of the city drop, says real estate Senior Executive Managing Director developer, Buttonwood Real Estate agent Avi Bellucha, an owner of a Adapting grudgingly President Andrew Heiberger, were Manhattan Connection franchise. residents in those buildings have not returned. “The major appeal of the financial learned to adapt to revolving neigh- Craigslist postings offer rates district was getting into a luxury bors, though grudgingly. ranging from $175 to $250 or more apartment building for less money,” Murray Hill resident Jeremy per night in the Ocean Building, a Mr. Bellucha says. “Why would you Redleaf, a 24-year old voice-over luxury residence at 1 West St. The move there now, when for the same producer, describes himself and his management office of building own- amount you can get a great apart- roommates as the only “real tenants” er Moinian Group confirms that ment in a proper neighborhood?” in their East Side apartment build- both leasing agents for the Ocean The financial district is only the ing.The other apartments play host  Building and individual owners post to a diverse cast of characters, rang- XXXNVSSBZIJMMDPN latest addition to the illegal hotel on Craigslist for short-term rentals. circuit. The rest of the city has been ing from diplomats to attachés, ac- 
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14 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 15 12/11/2008 4:37 PM Page 1

CORPORATE PHILANTHROPY INSIDE Cash-strapped firms devise unusual giving strategies PAGE 19 The largest nonprofits in the area, ranked by operating expenses PAGE 20 ➚ON THE WEB @ WWW.CRAINSNEWYORK.COM The highest-paid employees and officers at NY area nonprofits Recession’s reality sets in Nonprofits under siege as major donations dry up amid the crisis

BY JUDITH MESSINA it with the steepest decline in corporate donations in recent memory, charities are doing whatever they can to stay on the radar screens of their big contributors. City Harvest is hosting intimate events and recently Hlaunched a program that encourages law firm staffers to give via the INSIDE Internet. Citymeals-on- A LITERACY Wheels is trying to give its PROGRAM corporate donors more is getting mostly bad visibility at events such as news as Power Lunch for Women. corporate donors And the International stay away Rescue Committee just PAGE 16 piloted Give Thanks, Thanksgiving dinners for refugees, sponsored by American Express and Ethan Allen. “Work smarter, jump higher, reach farther— that’s how we approach it,” says Janet Harris, director of development at IRC. Yet many of the city’s nonprofits are finding that their initiatives cannot compete with steep drops in contributions. garry nichols See NONPROFITS on Page 16

HOSPITAL SUPPORTERS: Life-changing hospital visit CB Richard Ellis’ Stephen Siegel (left) and developer spurs fundraising tradition Larry Silverstein.

emergency rooms for relief. definitely National Jewish’s gain. Silverstein’s gala In 1965, Mr. Silverstein sought He organized a hospital fundraiser dinner a must-attend treatment at National Jewish and tapped his real estate colleagues Health, a Denver-based hospital for donations, starting an for real estate elite that specializes in respiratory ail- unlikely relationship be- ments. The drugs he received al- tween an institution in the $2.4M BY THERESA AGOVINO lowed him to breathe easily for the shadow of the Rocky Moun- AMOUNT first time in years. tains and an industry cen- raised at last larry silverstein could barely tered within New York’s sky- year’s dinner Pain turns to gain for National breathe in his mid-30s, so his vigor scrapers. Jewish Health at age 77 is especially noteworthy. “it literally changed my life,” Thirty-nine years later, Diagnosed with asthma as a says Mr. Silverstein, who took up the annual event has blos- child, the World Trade Center de- jogging after he began taking the somed into a must-attend gala for veloper’s symptoms grew progres- medicines. the real estate community’s elite. It

sively worse, forcing him to rush to Mr. Silverstein’s pain was most See HOSPITAL on Page 18 buck ennis

December 15, 2008 | Crain’s New York Business | 15 CNYB 12-15-08 A 16 12/11/2008 4:38 PM Page 1

REPORT CORPORATE PHILANTHROPY Literacy program faces uphill battle for funds not the same conversation,” says holidays, I have a definite reason to Nonprofit cuts its Ms. McLean. “They appear to be be concerned [that corporations] budget and staff as less enthusiastic.” will not support the gala,” Ms. The only nationally accredited McLean says. big donors take pass adult literacy program in New A $4 million endowment pro- York, 35-year-old Literacy Part- vides some backup for the non- ners is absorbing the fallout from profit—which assists thousands of BY JUDITH MESSINA Wall Street’s meltdown. And Ms. New Yorkers who need help with McLean fears things will get reading,so that they can accomplish ately, susan mclean has worse, as Literacy Partners—along basic tasks like applying for a job or had her share of bad news. with every other charity in the balancing a checkbook. First, the executive di- city—enters increasingly unchart- But because of stock market de- rector of Literacy Partners ed waters. clines, the endowment is down a Inc.—which helps some third from a year ago. Last month, L A test for next year 2,000 New Yorkers learn to read the board decided to make cuts each year—received word from presale letters for its major rather than dip into the endow- Citigroup that it would not be con- event, its May gala, went out last ment,as some charities choose to do SUSAN McLEAN tributing its usual $15,000 this year. month, in a week when the stock in lean times. fears things will Then the Pinkerton Foundation re- market plunged 500 points.The re- It reduced the budget to $2.6 get worse for jected the organization’s application sponses will be a bellwether for what million from $3 million as Ms. Literacy Partners.

for a $35,000 grant. Even Bank of the organization can expect to raise McLean cut nine staff positions out neff david America, a large corporate donor, next year, especially from corpora- of 30 and made plans to shut down declined to renew one $10,000 do- tions, whose largesse bankrolls half three learning centers out of eight at high-profile executives, possibly “We’re one of those organiza- nation and has not yet committed to the gala and 30% of the group’s over- the end of this semester. charging fees to train other organi- tions that work with the neediest renewing another $90,000 grant for all budget. High on Ms. McLean’s list for zations in volunteer management— people who are trying to retain em- an educational program. “Between layoffs and their pull- raising money are new initiatives,in- and reminding donors of the critical ployment and gain language skills,” “When I’m talking to them, it’s back from corporate parties and cluding filling open board seats with work Literacy Partners does. she says. I

al recession might cause them to abandon those guidelines. Nonprofits confront steep decline in giving According to The Wall Street Journal, the assets of former AIG Chief Executive Maurice “Hank” Continued from Page 15 fund that gave the IRC $700,000 and have put off meetings with the deavors as evidence of its ongoing Greenberg’s family foundation Last year, Bear Stearns execu- last year has since closed its doors. charity until next spring. commitment, but he was also care- plunged to about $4 million in Oc- tives and their friends ponied up Even big events, long the stal- “We’re seeing changes around ful to say that “it’s our best estimate tober from $47.7 million in Febru- $500,000 for Citymeals-on- warts of New York’s social calendar, the edges,”Ms.Harris says.“You be- at this point.” ary. And the Lehman Brothers Wheels’annual Corporate Dineout, aren’t garnering the support they gin to see worrisome signs,[such as] The collapse of such firms as Foundation, which handed out $39 which takes place from April once did. City Harvest’s October delays in decision-making.” Bear Stearns and Lehman Brothers million last year, will not comment through June. They bought 123 ta- gala inauspiciously took place on a Corporations are reluctant to means a loss of tens of millions of on its future. bles at top restaurants and invited day that the Dow Jones industrial share their philanthropic plans. dollars to charities.As an example of companions to sumptuous dinners. average dropped 200 points. The Some refused to comment for this what nonprofits are dealing with, New initiatives on hold This year, Bear executives pur- event raised $600,000—$200,000 story; others failed to return phone Citymeals-on-Wheels lost $3,000 “citymeals-on-wheels built on chased just 19 tables. A when a matching-gift check from the financial strength of firms that Citymeals board member Lehman was caught up in the com- were doing very, very well for many who managed to get col- GLOOMY VIEW pany’s bankruptcy. years,” says Executive Director leagues to make up some of Most New Yorkers say they’ve suffered Though firms are unlikely to re- Marcia Stein. “They were very gen- the difference has also financial losses; a quarter say those nege on current commitments, ob- erous because there was a lot of since departed from his losses have been big. That spells servers say they may be reluctant to money.” Wall Street firm. trouble for nonprofits. fund new programs. As the reces- Nonprofits are of course tighten- Corporate Dineout sion pressures earnings, companies’ ing their belts,and many are putting brought in $587,000 in New Yorkers who commitment to social responsibili- new initiatives on hold. 2008—$373,000 less than plan to reduce ty,which looms increasingly large in Covenant House, which banks last year, resulting in a loss 42%charitable their marketing and brand manage- $1.5 million a year from New York of nearly 60,000 meals for donations a little this year ment, could be put at risk. City corporations and foundations, the homebound elderly. “The social responsibility people has cut its budget by $8 million NYC residents need to market themselves internal- worldwide, has frozen hiring and is Reduction in force who plan to ly in the company,” says Mark Wier, thinking of closing some of its com- similar tales are being 25% reduce charitable the IRC’s director of corporate and munity service centers here. donations a lot told at hundreds of non- foundation relations. “It’s harder to Brooklyn Museum Director profits that relied on the make a case in this economy.” Arnold Lehman is leaving open po- beneficence of firms on Residents who Corporations and their founda- sitions unfilled,and has cut one spe- Wall Street and in other plan to volunteer tions account for 5% of charitable cial exhibit from the schedule and or make another sectors when the city’s 45% giving nationwide—about $16 bil- postponed another. kind of nonmonetary donation instead economy was booming. lion in 2007, according to Giving Though the Apollo Theater is Battered by the eco- SUBTLE SHIFT: “We’re USA. going ahead with its 75th anniver- seeing changes around Residents who nomic crisis, many such sary celebrations next year, it has the edges,” says do not plan to Through their foundations, J.P. donors are now reducing Janet Harris of the volunteer instead Morgan Chase and Citigroup were trimmed discretionary expenses. their charitable commit- International Rescue 53% among the biggest corporate “We’re all adjusting expecta- ments or eliminating them Committee. donors in 2006, the last year for tions with a view to what is in store Source: Charney Research

altogether. buck ennis which such data are available from for the economy over the next sev- For example, AIG gave the Foundation Center. The com- eral years,” says Jonelle Procope, the International Rescue Commit- less than the goal. messages. panies gave $80 million and $74 chair of the Apollo Theater Foun- tee $300,000 in both 2007 and Other indicators are more subtle. A spokesman for Bank of Amer- million, respectively. dation. Last year, the group re- 2008, but the charity doesn’t expect The IRC has noticed that some ica cited the company’s recent Foundations are generally slower ceived $1 million for its capital and that grant to be renewed anytime companies are sending in checks promise to spend $2 billion over 10 to make cuts, as they use a multiyear education program from the Leh- soon. At the same time, a hedge more slowly than in previous years years on socially responsible en- average for allocations,but the glob- man Brothers Foundation. I

16 | Crain’s New York Business | December 15, 2008 Project3 12/3/08 11:52 AM Page 1

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Behind the scenes, the Hall continues to grow its role as the largest provider of graduate, professional and methods courses in the physical sciences, increasing service delivery for more than 3,000 New York City educators.

Support from our corporate partners plays a vital role in our ability to reach new heights. We thank you and look forward to working together in 2009 to continue this growth.

Alcatel-Lucent Technologies Merrill Lynch & Co., Inc. American Express Company MetLife American Honda Foundation Microsoft Astoria Federal Savings Bank Morgan Lewis & Bockius LLP Bank of America Foundation Morgan Stanley Group, Inc. Bank of New York Mellon Multicultural Radio Broadcasting, Inc. Bargold Storage Systems, LLC National Grid Broadwater Energy New York Mets Cisco Systems, Inc. Nortel Citi Pfizer Inc. Cognizant Technology Solutions Polshek Partnership Architects, LLP Computer Associates Qualcomm Incorporated Consolidated Edison Co. of NY Richmond County Savings Foundation Corning Incorporated Ronald McDonald House Charities Credit Suisse Rudin Management Company D. E. Shaw Group Siemens Central Parking Spectra Energy Disney Worldwide Outreach Sterling Mets, LP Ericsson Inc. The Roslyn Savings Foundation Ernst & Young Foundation Time Warner Cable of New York City Exxon/Mobil Foundation & New Jersey Feinstein & Nisnewitz, P.C. TransCanada Corporation Fulbright & Jaworski ULC Robotics GE Foundation Verizon Communications General Electric Williams Transcontinental Gas Pipe General Motors Corporation Line Corporation Goldman, Sachs & Co. Hawkeye LLC Media/Promotional Partners IBM Corporation Hertz Independence Community Foundation Multicultural Radio Broadcasting, Inc. Iroquois Pipeline New York Mets ITT Corporation Pepsi-Cola Bottling Co. of New York J.P. Morgan Chase City Katz Dochtermann & Epstein, Inc. Queens Tourism Council Kepco Inc. Radio Disney 1560 AM Kimberly-Clark Corporation WEPN 1050 AM KPMG WKJY 98.3 FM Lazard Freres & Co. WPLJ-FM 95.5 FM Liz Claiborne Inc. Time Warner Cable of New York City Maspeth Federal Savings & Loans Yellow Book USA McKinsey & Company Medco Health Solutions, Inc. December 2007 – November 2008 CNYB 12-15-08 A 18 12/11/2008 4:38 PM Page 1

REPORT CORPORATE PHILANTHROPY Hospital visit spurs tradition

Continued from Page 15 at law firm Morrison & Foerster.“It Tables at the fundraiser cost be- is also one of the hospital’s most im- is this gaudy,lavish,carnival-like ex- tween $10,000 and $50,000, but portant fundraisers. Last year, the perience.” even with such prices, hospital exec- dinner dance raised $2.4 million— Each dinner has a secret theme utives fear that the event’s purse may roughly 10% of the total dollars do- unveiled only when the approxi- fall short of last year’s because of the nated to the institution. mately 1,200 guests saunter into the economy. (This year’s numbers were A number of real estate execu- ballroom at the Grand Hyatt hotel. not available at press time.) Still,they tives work diligently for the hospital say, the institution’s because they also suffered from asth- longstanding link to ma. They include Newmark Knight Tables at the New York’s real estate Frank President James Kuhn, who is industry provides a one of the dinner’s co-chairs,and CB fundraiser dedicated donor base Richard Ellis’ global brokerage that is crucial when so chairman, Stephen Siegel. Mr. cost $10,000 many people are cut- Siegel and his wife, Wendy—who ting back on charitable helps plan the gala—are co-chairs of to $50,000 giving. THE LUCKY ONES the hospital’s board of trustees. Philanthropists and their pet charities: “The hospital has made so many Answered prayers people’s lives better,” says Mr. “such support is a Lewis Cullman Chess in the Schools Siegel, who had asthma as a child. godsend at a time like Blaine Trump God’s Love We Deliver The revelers who attended the this,”says Susan Holt, Other benefits KEY PEOPLE: Larry Silverstein (top photo, left) Joan Weill Alvin Ailey American Dance soiree over the weekend wandered the hospital’s vice and Marjorie and James Kuhn; Michele and Marty but for many who attend, the into a winter wonderland, slated to president of develop- Cohen (bottom photo), last year’s honoree. Theater hospital’s mission is not the party’s feature a snowstorm, skaters and ment. main draw.These seasoned veterans carolers. From the begin- of the dinner charity circuit insist National Jewish was established ning, the event’s organizers chose to Estate Advisors partner Lee Neibart. honored at the gala. He has been a the event offers unparalleled net- in 1899 to treat tuberculosis patients honor real estate’s heaviest hitters, For years, Citigroup’s global dinner chairman since. working opportunities, plus a fun and has evolved into a world-class hoping their wealthy colleagues head of real estate,Thomas Flexner, “This hospital does incredible evening out. medical institution, ranked by U.S. would buy tickets. The first honoree attended the bash because it was a work,” says Mr. Flexner.“I enjoy my “It is one of only two real estate News & World Report as the coun- was architect Minoru Yamasaki,who merry networking event. Ten years role in helping further the hospital’s dinners my wife will attend,” says try’s best respiratory hospital for the designed the World Trade Towers. ago, he investigated the hospital’s relationship with the real estate Mark Edelstein,a real estate partner past 11 years. This year’s nod went to Apollo Real achievements before agreeing to be community.” I

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18 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 19 12/11/2008 4:39 PM Page 1

REPORT Cash-strapped companies find creative ways to give

Maintain donations in the form of goods

and services; offer Matthew Arnold Photography expertise of staffers

BY ROBERT ROSENBERG

when the food network set out Breathtaking design to host its first Wine & Food Festi- val in New York,in October,it chose State-of-the-art technology the Food Bank for New York as its sponsored charity. Ideal location The Food Bank stood to rake in all the proceeds from the festival’s ticket Perfectly suited for meetings, conferences, sales. The caveat: It had to help pro- trade shows, receptions and more. mote the event. So the charity called Call now to book your next event. upon advertising firm Fuel Outdoor, TheTimesCenter which offered, gratis, $85,000 worth of billboards in TriBeCa and the 242West41stStreet meatpacking district promoting the NewYorkCity festival. Tickets sold out, and the (212) 556-4300 event raised $1 million. www.thetimescenter.com Though the recession has put a crimp in its cash donations, Fuel Outdoor is trying to compensate by helping charities promote their fundraisers. Deficient revenues “our philanthropic efforts are FUEL OUTDOOR donated promotional important to us,” says Sergio Fer- billboards on behalf of nández de Córdova, co-founder of the Food Bank. Fuel Outdoor, which has also do- nated ad space to the Brain Tumor Foundation and the Guggenheim tion prepares to retire, we launched Museum. “But in recent months, this training academy to show young Fuel Outdoor,like many other com- leaders how to translate business panies in the ad business, simply skills into the nonprofit sector,” a hasn’t had the revenue to be donat- spokeswoman for AmEx says. The ing money.” company plans to host at least one As the effects of the financial cri- academy in 2009,she says.“It’s a way sis reverberate through the city’s of giving back that will have a ripple economy, companies are eschewing effect on the leaders of the future.” cash donations and finding other, Similarly, Deloitte, though it is creative ways to give.They are offer- still making cash donations,is offer- ing products and services,or helping ing its employees’ skills and expert- charities get exposure. At the same ise to charities. The firm officially time, firms are expanding their pro launched its pro bono program this bono initiatives, leveraging their June. More than 100 projects have principal assets—intellectual and been submitted for consideration, human capital—to help nonprofits. and 41 are under way. “Companies are donating goods “We will cover the cost of [the and services in this economic envi- consultant’s] time” as if it were a ronment,especially the smaller ones paid project, says Evan Hochberg, that may be strapped for cash,” says national director for community in- Henry Goldstein, president of The volvement at Deloitte. Oram Group, a consulting firm. “More importantly, businessmen King cash and executives are donating them- of course, cash is still king—espe- selves—that is,making available the cially in a difficult fundraising envi- skills and know-how that made ronment. The Children’s Health them successful—to charities.” Fund was one of 10 charities high- American Express Co., whose lighted on American Idol’s prime- market value has shrunk by nearly time telethon, Idol Gives Back,fea- 60% over the past year,launched the turing performances by top singers. Nonprofit Leadership Academy in The fund, which provides medical June to help develop the sector’s care to disadvantaged kids, received next generation of leaders.It recent- $7.5 million. Picked again for this ly brought rising stars from 24 year’s telethon,which aired in April, groups together for a week of semi- the fund garnered $10 million,to be nars featuring the likes of AmEx spent over two years. Chief Executive Kenneth Chenault “Getting that call was like win- and Mayor Michael Bloomberg. ning the lottery,” says Carol “Given the concern about a lead- Sumkin, vice president of develop- ership void as the boomer genera- ment at Children’s Health Fund. I

December 15, 2008 | Crain’s New York Business | 19 CNYB 12-15-08 A 20 12/11/2008 8:18 PM Page 1

REPORT CORPORATE PHILANTHROPY

Highest-paid officers at nonprofits Growing expenses Total operating expenses At the top 25 organizations Percent changes in operating expenses from 2007 to 2008 at top 25 Name/title/organization FY ’08 compensation % of nonprofit’s income In 2008, the top 25 nonprofits on the Crain’s list Philippe de Montebello, director/CEO $4,557,342 1 2.3% increased their operating expenses by 8.6%, Metropolitan Museum of Art compared with 9.7% a year ago. In millions of dollars. Peter Gelb, general manager $1,000,002 0.4% Metropolitan Opera Association Glenn D. Lowry, director $928,818 0.6% Museum of Modern Art Gary E. Knell, president/CEO $927,956 2 0.6% +8.6% Sesame Workshop Robert L. Jones, M.D., president/CEO $684,000 0.2% New York Blood Center 1-Organization did not provide 2008 compensation figure. Compensation figure for fiscal 2007 was obtained from the organization’s latest Form 990. 2-Includes an incentive payment of $169,950.

New York Area’s Largest Nonprofits Ranked by 2008 total operating expenses

2008 fundraising expenses 2008 income 2008 total 2007 total % of private % of total Chief operating operating Total % from % allocated support income executive or expenses expenses (in private to program Total used for used for other highest- 2008 Rank Organization Phone/Web site (in millions) (in millions) millions) support 1 services (in millions) fundraising fundraising paid official compensation

United States Fund for UNICEF 2 (212) 686-5522 $443.8 $367.1 $454.0 97.4% 88.5% $29.3 6.6% 6.5% Caryl M. Stern $361,250 125 Maiden Lane www.unicefusa.org President, chief 1 New York, NY 10038 executive New York Blood Center Inc. 3 (212) 570-3000 $318.5 $298.4 $345.4 0.5% 83.2% $0.7 38.9% 0.2% Robert L. Jones, M.D. $684,000 310 E. 67th St. www.nybloodcenter.org President, chief 2 New York, NY 10021 executive Leukemia & Lymphoma Society Inc. 2 (914) 949-5213 $276.2 $250.3 $277.1 99.8% 74.1% $46.1 16.7% 16.7% John Walter $332,883 1311 Mamaroneck Ave. www.lls.org President, chief 3 White Plains, NY 10605 executive International Rescue Committee Inc. 4 (212) 551-3000 $270.1 $239.2 $260.8 59.1% 93.4% $10.2 6.6% 3.9% George Rupp $382,711 122 E. 42nd St. www.theirc.org President, chief 4 New York, NY 10168 executive Jewish Communal Fund 2 (212) 752-8277 $256.3 5 $264.3 5 $304.5 98.3% 83.2% $0.7 0.0% 0.0% Susan F. Dickman $249,936 575 Madison Ave. www.jewishcommunalfund.org Executive vice president 5 New York, NY 10022 Metropolitan Opera Association Inc. 6 (212) 799-3100 $253.4 $222.3 $269.9 99.8% 82.8% $14.0 5.2% 5.2% Peter Gelb $1,000,002 30 Lincoln Center www.metopera.org General manager 6 New York, NY 10023 Hadassah, The Women's Zionist Organization (212) 355-7900 $250.0 $182.0 $119.9 8 70.6% 187.2% 8 $10.4 12.3% 8.6% Morlie Levin $334,628 of America Inc. 7 www.hadassah.org Executive director 7 50 W. 58th St. New York, NY 10019 American Jewish Joint Distribution Committee Inc. 9 (212) 687-6200 $249.1 $241.4 $279.1 86.6% 82.7% $3.2 1.3% 1.2% Steven Schwager $497,029 10 711 Third Ave. www.jdc.org Executive vice president 8 New York, NY 10017 Institute of International Education 11 (212) 883-8200 $245.0 $209.0 n/d n/d n/d n/d n/d n/d Allan Goodman $354,130 12 809 United Nations Plaza www.iie.org President, chief 9 New York, NY 10017 executive National Multiple Sclerosis Society 13 (212) 986-3240 $239.6 $218.1 $241.3 98.9% 77.6% $35.7 15.0% 14.8% Joyce Nelson $409,615 733 Third Ave. www.nationalmssociety.org President, chief 10 New York, NY 10017 executive March of Dimes Foundation 9 (914) 428-7100 $237.2 $226.9 $252.0 90.0% 72.4% $34.2 13.6% 13.6% Jennifer L. Howse $553,203 1275 Mamaroneck Ave. www.marchofdimes.com President, chief 11 White Plains, NY 10605 executive UJA-Federation of Jewish Philanthropies of New York (212) 980-1000 $227.9 $242.7 $233.2 76.1% 77.1% 14 $34.0 16.5% 15 13.0% 15 John Ruskay $444,000 Inc. 2 www.ujafedny.org Executive vice 12 130 E. 59th St. president, chief New York, NY 10022 executive Public Health Solutions 16 (646) 619-6400 $219.9 $219.1 $225.6 0.7% 96.7% $0.4 22.3% 0.2% Ellen Rautenberg $252,330 220 Church St. www.healthsolutions.org President, chief 13 New York, NY 10013 executive Wildlife Conservation Society 2 (718) 220-5100 $212.5 $193.5 $214.5 68.4% 85.2% $4.8 3.3% 2.2% Steven E. Sanderson $503,927 2300 Southern Blvd. www.wcs.org President, chief 14 Bronx, NY 10460 executive Catholic Medical Mission Board Inc. 4 (212) 242-7757 $212.4 $222.7 $213.5 97.0% 97.1% $4.8 2.3% 2.2% John F. Galbraith $234,722 10 W. 17th St. www.cmmb.org President, chief 15 New York, NY 10011 executive Metropolitan Museum of Art 2 (212) 879-5500 $207.6 $192.0 $204.4 86.7% 88.4% $7.6 4.3% 3.7% Philippe de Montebello $4,557,342 12 1000 Fifth Ave. www.metmuseum.org Director, chief executive 16 New York, NY 10028

20 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 21 12/11/2008 8:19 PM Page 1

REPORT CORPORATE PHILANTHROPY

2008 fundraising expenses 2008 income 2008 total 2007 total % of private % of total Chief operating operating Total % from % allocated support income executive or expenses expenses (in private to program Total used for used for other highest- 2008 Rank Organization Phone/Web site (in millions) (in millions) millions) support 1 services (in millions) fundraising fundraising paid official compensation

Legal Aid Society 2 (212) 577-3300 $197.2 $190.3 $202.7 32.6% 91.8% $0.9 1.4% 0.4% Theodore A. Levine $0 17 199 Water St. www.legal-aid.org President, chief 17 New York, NY 10038 executive Educational Broadcasting Corp. 2 (212) 560-1313 $183.0 $186.0 $183.1 88.6% 75.8% $25.7 15.8% 14.0% NeilShapiro $400,000 450 W. 33rd St. www.wnet.org President, chief 18 New York, NY 10001 executive American Museum of Natural History 2 (212) 769-5100 $161.7 $137.0 $161.7 83.3% 81.3% $5.8 4.3% 3.6% Ellen V. Futter $682,000 79th Street and Central Park West www.amnh.org President 19 New York, NY 10024 Museum of Modern Art 2 (212) 708-9400 $160.4 $147.6 $161.0 46.9% 77.5% $11.4 7.2% 7.1% Glenn D. Lowry $928,818 11 W. 53rd St. www.moma.org Director 20 New York, NY 10019 Covenant House 18 (212) 727-4000 $157.7 $134.7 $151.7 94.8% 71.0% $32.2 22.4% 21.3% Sister Patricia A. Cruise $180,697 19 5 Penn Plaza www.covenanthouse.org President 21 New York, NY 10001 Jewish Board of Family & Children's Services 2 (212) 582-9100 $148.0 $147.0 $141.1 21.3% 88.8% $0.8 2.7% 0.6% Paul Levine $391,334 120 W. 57th St. www.jbfcs.org Executive vice 22 New York, NY 10019 president, chief executive YMCA of Greater New York 20 (212) 630-9600 $145.1 $130.3 $148.0 12.4% 39.6% $2.9 0.0% 1.9% Jack Lund $584,313 5 W. 63rd St. www.ymcanyc.org President, chief 23 New York, NY 10023 executive Sesame Workshop 2 (212) 875-6000 $141.4 $124.1 $145.2 17.6% 80.2% $6.1 0.4% 4.2% Gary E. Knell $927,956 21 1 Lincoln Plaza www.sesameworkshop.org President, chief 24 New York, NY 10023 executive Children's Aid Society 2 (212) 949-4936 $109.8 $100.5 $94.9 21.8% 10.2% $2.8 6.7% 1.5% C. Warren Moses $466,000 105 E. 22nd St. www.childrensaidsociety.org Chief executive 25 New York, NY 10010

New York area includes New York City and Nassau, Suffolk and Westchester counties in New York; and Bergen, Essex, Hudson and Union counties in New Jersey.Crain's New York Business uses staff research, extensive surveys and the most current references available to produce its lists, butthere is no guarantee thatthe listings are complete. To qualify for this list, organizations must be tax-exempt 501(c)(3) nonprofits headquartered in the New York area. Universities, colleges, libraries and health institutions are excluded. All numbers have been rounded to one decimalplace. Percentages are based on rounded numbers. All information was supplied bythe organizations, unless otherwise noted. n/d Not disclosed. 1-Nongovernmental support.2-Fiscalyear ends June 30. 3-Fiscalyear ends March 31. 4-Fiscalyear ends Sept. 30. All 2008 figures are unaudited. 5-The majority of the Jewish CommunalFund's total expenses represents grants to charit able organizations. 6-Fiscalyear ends July 31. All figures are for fiscalyears ended 2007 and 2006. Fiscalyear 2008 data were not availableattime of survey.7-Fiscalyear ends May 31. All 2008 figures are unaudited. 8-In fiscalyear 2007, Hadassah received a large donation for a major building project which significantly increased its revenues. In fiscalyear 2008, the increase in program expenses related toexpenditures is for the same project. 9-Organization operates on a calendar year. All 2008 figures, except for compensation paid, are for the year ended Dec. 31, 2007. 2007 operating expenses are for the year ended Dec. 31, 2006. 10-Includes deferred compensation and benefits. 11-Fiscal year ends Sept. 30. Company declined to provide income and fund-raising expenses. 12-Organization did notprovide 2008 compensation. Compensation for fiscalyear ended 2006 was obtained from the organization's latest available Form 990. 13-Fiscalyear ends Sept. 30. All figures are for fiscalyears ended 2007 and 2006. Fiscalyear 2008 data were not availableattime of survey. 14-Computed as a percentage of total expenses of $227.9 million. 15-Fundraising activities also generated $27.8 million on behalf of beneficiary agencies. The amount is not included in privatesupport or total income but is used to compute the fundraising ratios. 16-Organization operates on a calendar year. All 2008 figures, except for compensation paid, are for the year ended Dec. 31, 2007. 2007 operating expenses are for the year ended Dec. 31, 2006. On Dec. 13, 2007, the organization changed its name from Medical and Health Research Association of New York City Inc. 17-Mr. Levine is not compensated. 18-Fiscalyear ends June 30. All 2008 figures are unaudited. 19-Compensation was notpaid directly to Sister Cruise. All payments were made to her order, Sisters of Charity of Cincinnati. 20-Organization operates on a calendar year. All 2008 figures are for the year ended Dec. 31, 2007. 2007 operating expenses are for the year ended Dec. 31, 2006. 21-Includes an incentive payment of $169,950. Research: Denise Southwood, Maia Blume and Sarah Studley

ALL OF CRAIN’S BUSINESS LISTS CAN BE PURCHASED AT WWW.CRAINSNEWYORK.COM/LISTS

s’’xc OHEL annual dinner 39th

OHEL Children’s Home & Family Services proudly announces that we will be honoring HERITAGE BANK and DAVID S. BAGATELLE President & CEO Saul N. Friedman Ronny Hersh as our Chaim Kaminetzky Dinner Co-Chairs CORPORATE Jay Kestenbaum Opening A New Private GUESTS OF HONOR Miriam Lubling Client Office in Brooklyn at our upcoming Journal Chairs 39TH ANNIVERSARY REPRESENTING HERITAGE BANK: DINNER Dan Healey Chairman of the Board, Heritage Bank February 8, 2009 Honorary Dinner Chairman New York Hilton Hotel Meir Laufer CEO, Plaza Capital Group Dinner Chairman

Moishe Hellman, President Mel Zachter, Chairman, Executive Committee For more information on the Dinner, Morris Zakheim, Chairman of the Board please call (718) 972-9338 David Mandel, Chief Executive Officer or visit www.ohelfamily.org

December 15, 2008 | Crain’s New York Business | 21 CN012647_leftfutureofnyc_spread.ai 12/11/08 12/11/08 3:30 3:07:53PM Page PM 1

The FUTURE of NEW YORK A CRITICAL DISCUSSION WHAT’S HAPPENING.

WHAT THE FUTURE HOLDS. CITY WHAT CAN BE DONE.

Tuesday, February 3, 2009 8:00 am – 2:30 pm

Grand Hyatt New York 109 East 42nd Street at Grand Central Terminal

www.crainsnewyork.com/future

Presented by Crain’s New York Business in conjunction with the Partnership for New York City Co-hosted by The City University of New York futureofnyc_spread.ai 12/11/08 3:07:53 PM CN012647_right 12/11/08 3:30 PM Page 2

This conference on the New York economy will attract a major cross section of New York busi- ness people and other opinion leaders to discuss how the financial crisis is buffeting New York and what can be done to bolster key sectors of the economy. The morning begins with the spot- light on the crucial financial services industry to help further the understanding of what is hap- pening to this sector, what the future holds for it, and the impact on the city. Four breakout sessions will focus on key growth sectors including real estate, media, tourism and emerging industries and small business. The conference will produce policy suggestions to bolster the economy. Be a part of the solution.

8:30 am – 10:30am Breakfast: Opening Keynote: JAMIE DIMON Chairman & Chief Executive, JP Morgan Chase JAMIEJAMIE DIMONDIMON JP Morgan has emerged as the city’s strongest financial institution in the crisis crippling Wall Street and its celebrated chief executive discusses what has TICKETS: happened and what the future holds. $199 for individual tickets Panel*: THE FUTURE OF FINANCIAL SERVICES if pre-registered by Jan 15, $249 thereafter. A panel of executives and other experts follow Mr. Dimon with a discussion of how the financial crisis is reshaping the industry, what that means for New York $1,999 for tables of ten and how the industry can remain competitive. if pre-registered by Jan 15, $2,499 thereafter. 10:45 am – 11:45 am Breakout Session*: REAL ESTATE AND INFRASTRUCTURE For more information or This panel looks at a crucial question—whether development in the city can continue to register, go to despite the financial crisis and, if so, how. crainsnewyork.com/future. You may also send Breakout Session*: MEDIA & INFORMATION SERVICES a fax with your name, business card and credit card Besides Wall Street, no industry carries more cache or resonance around the world information to "Future of NYC" than media, which is coping with an enormous structural shift in its business. How at 212.210.0499. will New York fare in that transformation? Tickets are nonrefundable. For more 11:50 am – 12:50 pm Breakout Session*: EMERGING INDUSTRIES information, call Crain's events hotline at 212.210.0739. Can tech, bio tech and other emerging sectors continue to grow amid the financial crisis? How can the crucial small business sector generally be supported in difficult times? For sponsorship information, contact Amy Crossman at 212.210.0258 or Breakout Session*: TOURISM AND RETAIL [email protected]. Tourism has emerged as possibly the second most important sector of the economy and provided a big boost during the recession of 2001-2003 and in the boom that followed. But can it play the same role in this downturn and what steps can be taken to bolster it.

1:00 pm – 2:00 pm Lunch: Keynote Speaker: The Honorable MICHAEL BLOOMBERG Mayor, City of New York

2:00 pm – 2:30 pm SOLUTIONS A working session to develop recommendations on how to strengthen MICHAELMICHAEL BLOOMBERGBLOOMBERG the City’s economy.

* Panelists to be announced January 5th

PRESENTING SPONSORS

®® nb50p24-25cls.qxp 12/11/08 5:28 PM Page 24

REAL ESTATE PUBLIC & LEGAL NOTICES

Notice of Qualification of Qatalyst Partners Notice of Qualification of Paragon INDUS EQUITIES, LLC Articles of Org. AUCTION / FORECLOSURE LP. Authority filed with Secy. of State of International, L.L.C. Authority filed with filed NY Sec. of State (SSNY) 11/3/08. NY (SSNY) on 11/19/08. Office location: Secy. of State of NY (SSNY) on 11/17/08 Office in NY Co. SSNY desig. agent of LLC NY County. LP formed in Delaware (DE) Fictitious name in NY State: Paragon upon whom process may be served. on 12/12/07. SSNY designated as agent International WA, L.L.C. Office location: NY SSNY shall mail copy of process to c/o of LP upon whom process against it may County. LLC formed in Washington (WA) Joshua Kammerman, Kammerman be served. SSNY shall mail process to: on 10/12/95. SSNY designated as agent of Associates, LLP, 253 5th Ave., 5th Fl., NY, The Partnership, Sixth Fl., Three LLC upon whom process against it may be NY 10016. Purpose: Any lawful purpose. Embarcadero Center, San Francisco, CA served. SSNY shall mail process to: c/o Latest dissolve date: 12/31/2028 94111. DE address of LP: Incorporating Menaker & Herrmann LLP, 10 E. 40th St., Services, Ltd., 3500 South DuPont 43rd Fl., NY, NY 10016. DE address of LLC: Highway, Dover, DE 19901. Name/address The LLC, 5228 20th Ave. NW, Seattle, WA NOTICE OF FORMATION OF LIMITED of genl. ptr. available from SSNY. Cert. of 98107. Arts. of Org. filed with WA Secy. PARTNERSHIP. NAME: MID-HARLEM LP filed with DE Secy. of State, Federal & of State, 801 Capitol Way S, Olympia, WA. APARTMENTS,L.P.. Certificate of Limited Duke of York Sts., Dover, DE 19901. Purpose: any lawful purpose. Partnership was filed with the Secretary of Purpose: any lawful activities. State of New York (SSNY) on 10/02/08. The latest date of dissolution is Notice of Qualification of APOLLO STRATE- 12/31/2107. Office location: New York Notice of Formation of Great Bay Realty GIC MANAGEMENT GP, LLC. Authority filed County. SSNY has been designated as Holdings, LLC. Arts. of Org. filed with with Secy. of State of NY (SSNY) on agent of the LP upon whom process Secy. of State of NY (SSNY) on 11/24/08. 11/4/08. Office location: New York County. against it may be served. SSNY shall mail Office location: NY County. SSNY desig- LLC formed in Delaware (DE) on 10/21/08. a copy of process to the LP, c/o Global nated as agent of LLC upon whom Principal office of LLC: 9 W. 57th St., 41st Partners LLC, 155 West 121st Street, New process against it may be served. SSNY Fl., NY, NY 10019. SSNY designated as York, New York 10027. shall mail process to: 311 E. 50th St., Ste. agent of LLC upon whom process against PHB, NY, NY 10022. Purpose: any and all it may be served. SSNY shall mail process lawful act or activity. to the LLC, Attn: John J. Suydam at the NOTICE OF FORMATION OF LIMITED LIA- principal office of the LLC. DE address of BILITY COMPANY. NAME: 354 CATHEDRAL LLC: c/o Corporation Service Co., 2711 PARTNERS LLC. Articles of Organization Notice of Formation of Two Rivers Centerville Rd., Ste. 400, Wilmington, were filed with the Secretary of State of Associates, LLC, Art. of Org. filed Sec’y of New Castle Cnty., DE 19808. Arts. of Org. New York (SSNY) on 12/03/08. Office State (SSNY) 10/21/08. Office location: filed with Secy. of State of DE, Dept. of location: New York County. SSNY has NY County. SSNY designated as agent of State, Div. of Corporations, John G. been designated as agent of the LLC upon LLC upon whom process against it may Townsend Bldg., Dover, DE 19901. whom process against it may be served. be served. SSNY shall mail copy of Purpose: Any lawful activity. SSNY shall mail a copy of process to the process to 1375 Broadway, 3rd Fl., NY, LLC, c/o Berliner & Pilson, Esqs., 80 Cutter NY 10018. Purpose: any lawful activities. Mill Road, Suite 411, Great Neck, New York WILLCITY HOLDINGS, LLC, a foreign 11021. Purpose: For any lawful purpose. Limited Liability Company (LLC) filed with Notice of Formation of JARE the Sec of State of NY on 9-29-08. NY Manufacturing Solutions, LLC. Arts. of Office location: New York County. SSNY NOTICE OF FORMATION OF LIMITED Org. filed with Secy. of State of NY is designated as agent upon whom LIABILITY COMPANY. NAME: PAPALOO (SSNY) on 11/05/08. Office location: New process against the LLC may be served. WEST LLC. Articles of Organization were York County. SSNY designated as agent SSNY shall mail a copy of any process filed with the Secretary of State of New of LLC upon whom process against it against the LLC served upon him/her to York (SSNY) on 05/01/07. The name was may be served. SSNY shall mail process The LLC, 411 Theodore Fremd Ave., Ste. amended to EMPIRE SOBRO PARTNERS to c/o Kelley Drye & Warren LLP, Attn: 110, Rye, NY 10580. General Purposes. LLC on 08/13/08. Office location: New OFFICE SPACE Eric Post, 101 Park Ave., 29th Fl., NY, NY York County. SSNY has been designated 10178. Purpose: Any lawful activity. Notice of Formation of Kimsooja Studio, LLC. as agent of the LLC upon whom process Tribeca Film Center 80’s West. Arts. of Org. filed with NY Dept. of State on against it may be served. SSNY shall mail Beautifully Re-Designed Executive Fully Furnished EXECUTIVE 6/12/08. Office location: NY County. Sec. of a copy of process to the LLC, 162 Ridge Space with Multiple Offices and OFFICES AVAIL Notice of formation of Camino Public State designated as agent of LLC upon whom Drive East, Great Neck Estates, New York. Bull Pen Area Available. F/S, including concierge. Exclusive Relations LLC Articles of Organization filed process against it may be served and shall Purpose: For any lawful purpose. 24-hour security, conference rooms, Entrance and elevator, hi-speed copier, with the Secretary of State of New York mail process to the principal business addr.: screening rooms. (SSNY) on 9/24/2008, N.Y. office location: NY 99 E. 4th St., Apt 6J, NY, NY 10003, Attn: Long and short term rentals. Conference room, beverage services, County. SSNY has been designated as an Notice of Formation of 124 MACDOUGAL etc. Starting at $1,400. Sooja Kim, regd. agt. upon whom process 212-941-2000 agent upon whom process against it may be may be served. Purpose: any lawful activity. STREET ASSOCIATES, LLC. Cert. of Conversion West Side Management Corp. served. PO address to which the SSNY shall filed with Secy. of State of NY (SSNY) on 80 St West. 212-595-9590 ext. 21 mail a copy of any process against the LLC 10/10/08, converting 124 MACDOUGAL Full service furnished office space available served upon him is c/o the LLC 245 8th Ave Notice of Qualification of STONE LION STREET ASSOCIATES to 124 MACDOUGAL 100-12,000 sq ft. Services include: #317, New York, NY 10011. The Principal CAPITAL PARTNERS L.P. Authority filed STREET ASSOCIATES, LLC. Office location: Receptionist, Fax, Copier, conference Business Address of the LLC is: 257B West with Secy. of State of NY (SSNY) on New York County. Principal office of LLC: room, etc. PUBLIC & LEGAL 19th Street, New York, NY 10011. Purpose 11/14/08. Office location: New York c/o Shapiro, 136 E. 56th St., Unit 16C, NY, For information call West Side Communications Consulting. County. LP formed in Delaware (DE) on NY 10022. SSNY designated as agent of Management Corp. 08/11/08. Principal office of LP: 461 Fifth LLC upon whom process against it may be 212-595-9590 ext. 21 NOTICES Ave., 14th Fl., NY, NY 10017. SSNY desig- served. SSNY shall mail process to The LLC Notice of Formation of Newshong LLC. nated as agent of LP upon whom process at the principal office of the LLC. Purpose: Arts. of Org. filed with Secy. of State of NY against it may be served. SSNY shall mail Ownership of real estate. NOTICE OF FORMATION of BULLDOG REAL (SSNY) on 9/30/08. Office location: NY process to the LP at the address of its ESTATE, LLC. Arts. Of Org. filed with Secy. County. SSNY designated as agent of LLC principal office. Name and address of TELECOMUNICATIONS Of State of N.Y. (SSNY) on 9/19/08. Office upon whom process against it may be each general partner are available from location: New York County. SSNY designated served. SSNY shall mail process to: c/o SSNY. DE address of LP: c/o Corporation as agent of LLC upon whom process against Van-Hang Nguyen MD, 14 E. 96th St., Apt. 9, Service Co., 2711 Centerville Rd., Ste. To place it may be served. SSNY shall mail process to NY, NY 10128. Purpose: any lawful activity. 400, Wilmington, DE 19808. Arts. of Org. principal business location: 11 West 18th Street, filed with Secy. of State of DE, Dept. of #3E, NY, NY 10011. Purpose: Any lawful activity. State, Div. of Corporations, John your classified 1124675 w.o. NOTICE OF FORMATION of New York Townsend Bldg., Dover, DE 19901. Green Roofs LLC. Arts. Of Org. filed with Purpose: Any lawful activity. Secy. Of State of N.Y. (SSNY) on 3/17/08. NOTICE OF FORMATION of Helios Office location: New York ad call Ventures LLC. Arts. Of Org. filed with County. SSNY designated as agent of LLC Notice of Formation of Gotham Holdings Secy. Of State of NY (SSNY) on 05/29/08. upon whom process against it may be Vietliezl LLC. Arts. of Org. filed with Secy. Office location: New York County. SSNY served. SSNY shall mail process to: 442D of State of NY (SSNY) on 10/3/08. Office John Gallagher designated as agent of LLC upon whom Lorimer Street, #157, Brooklyn, NY location: NY County. SSNY designated as process against it may be served. SSNY 11206. Principal business location: 72 agent of LLC upon whom process against shall mail process to principal business Bedford Street, Suite 6A, NY, NY 10014. it may be served. SSNY shall mail process location: 49 W 74th St. #3B NY, NY Purpose: Any lawful activity. to: c/o Viet Nguyen, 753 E. 5th St., NY, NY @ 212-210-0189 10023. Purpose: Any lawful activity. 1119760 w.o 10009. Purpose: any lawful activity.

V ISIT O UR W EBSITE www.crainsnewyork.com

24 | Crain’s New York Business | December 15, 2008 nb50p24-25cls.qxp 12/11/08 5:29 PM Page 25

PUBLIC & LEGAL NOTICES

Notice of Qualification of Pequot Co- Notice of Qualification of MEDIA PUSH Notice of Formation of ETHOS DO BRAZIL Investors, L.P. Authority filed with Secy. of ENTERTAINMENT LLC. Authority filed with LLC. Arts. of Org. filed with Secy. of State State of N.Y. (SSNY) on 10/20/08. Office Secy. of State of NY (SSNY) on 10/31/08. of NY (SSNY) on 11/05/08. Office loca- location: NY County. LP formed in Office location: New York County. LLC tion: New York County. Principal office of Coming Up on the Calendar Delaware (DE) on 10/9/08. SSNY desig- formed in Delaware (DE) on 09/23/08. LLC: c/o Enclave Rising, Attn: Kimberly nated as agent of LP upon whom process Principal office of LLC: 550 Madison Ave., Slicklein, 303 Fifth Ave., Ste. 1801, NY, against it may be served. SSNY shall mail NY, NY 10022. SSNY designated as agent NY 10016. SSNY designated as agent of January 5th - Economic Outlook process to: c/o CT Corporation System, of LLC upon whom process against it may LLC upon whom process against it may 111 8th Ave., NY, NY 10011, registered be served. SSNY shall mail process to c/o be served. SSNY shall mail process to the agent upon whom process may be Corporation Service Co., 80 State St., LLC at the address of its principal office. January 12th - Real Estate served. DE address of LP: c/o The Albany, NY 12207-2543. DE address of Purpose: Any lawful activity. Corporation Trust Co., 1209 Orange St., LLC: 2711 Centerville Rd., Wilmington, DE January 19th - Small Business Wilmington, DE 19801. Name/address of 19808. Arts. of Org. filed with Secy. of NOTICE OF FORMATION OF LIMITED LIABILITY each genl. ptr. available from SSNY. Cert. State of DE, John G. Townsend Bldg., 401 COMPANY. NAME: BU YAO PA LLC. Articles of of LP filed with DE Secy. of State, Federal St., Dover, DE 19901. Purpose: Organization were filed with the Secretary of January 26th - Education Townsend Bldg., Dover, DE 19901. Any lawful activity. State of New York (SSNY) on 11/13/08. Office Purpose: any lawful activity. location: New York County. SSNY has been Notice of Formation of JRM TUTORING, designated as agent of the LLC upon whom February 2nd - NYC Scorecard - Politics LLC, a domestic LLC. Arts. of Org. filed Notice of Formation of ALLIANCE PORT- process against it may be served. SSNY shall with the SSNY on 10/08/08. Office loca- mail a copy of process to the LLC, 131-58 FOLIO FUND II, LLC. Arts. of Org. filed tion: NY County. SSNY has been designat- February 9th - Small Business with Secy. of State of NY (SSNY) on Maple Avenue, Flushing, New York 11355. ed as agent upon whom process against Purpose: For any lawful purpose. 11/10/08. Office location: New York the LLC may be served. SSNY shall mail a County. Principal office of LLC: 1040 Ave. copy of process to: 33 West 88th St., NY, February 16th - Real Estate of the Americas, 24th Fl., NY, NY 10018. NY 10024. Purpose: Any Lawful Purpose. NOTICE OF FORMATION of Quogue SSNY designated as agent of LLC upon Consulting, LLC. Arts. Of Org. filed with whom process against it may be served. NOTICE OF FORMATION OF Inram Capital Secy. Of State of N.Y. (SSNY) on February 23rd - Banking SSNY shall mail process to Furnari Scher LLC Arts. of Org. filed with SSNY on 10/22/08. Office location: New York LLP, 1 Broadway, Ste. 615, NY, NY 10004. 08/18/08. Off. Location: NY County, SSNY County. SSNY designated as agent of LLC Purpose: Any lawful activity. designated as agent upon whom process upon whom process against it may be March 2nd - NYC Tourism against it may be served. SSNY shall mail a served. SSNY shall mail process to: copy of process to: Inram Capital LLC, 653 Corporation Service Company, 80 State Notice of Qualification of DRAGON BUS, Street, Albany, NY 12207. Principal busi- March 9th - Small Business LLC. Authority filed with Secy. of State of East 14th Street, Apt. 8C, New York, NY 10009. Purpose: to engage in any lawful act. ness location: 400 E. 89th St., NY, NY NY (SSNY) on 10/22/08. Office location: 10128. Purpose: Any lawful activity. New York County. LLC formed in March 16th - Real Estate Delaware (DE) on 10/03/08. Principal Notice of Formation of Jennifer Clifford office of LLC: 160 S. Rt. 17 N, Paramus, Danner LLC, Art. of Org. filed Sec’y of Name: GREEN HOPE TAXI LLC Art. Of Org. NJ 07652. SSNY designated as agent of State (SSNY) 10/14/08. Office location: Filed Sec. Of State of NY 6/4/08 and A March 23rd - Healthcare LLC upon whom process against it may NY County. SSNY designated as agent of Amendment filed 6/5/08 to change name be served. SSNY shall mail process to c/o LLC upon whom process against it may to GREEN HOPE TAXI PRODUCTIONS Corporation Service Co., 80 State St., be served. SSNY shall mail copy of LLC. Off. Loc: New York Co. SSNY desig- Albany, NY 12207-2543. DE address of process to 94 Mercer St., Apt. 4D, NY, NY nated as agent upon whom process LLC: 2711 Centerville Rd., Ste. 400, 10012. Purpose: any lawful activities. against it may be served. SSNY to mail Wilmington, DE 19808. Arts. of Org. filed copy of process to THE LLC, 365 West 28th Street, New York, NY 10001. with DE Secy. of State, Div. of Notice of Qualification of J&M Lifestyles Purpose: Any lawful act or activity Corporations, John G. Townsend Bldg., LLC. Authority filed with NY Sec. of State 401 Federal St., Ste. 4, Dover, DE 19901. (SSNY) 8/6/08.Juris. of org: NJ filed: 11/2/06 Purpose: Any lawful activity. NY off. loc. in NY Co. SSNY designated as R.P. ELITE GLASS LLC, a domestic agent of LLC upon whom process may be Limited Liability Company (LLC) filed with the Sec of State of NY on 10-30-08. NY Name of For. LP: CI CAPITAL PARTNERS served. SSNY shall mail copy of process to: Office location: New York County. SSNY II, L.P. Appl. for Auth. filed with Sec. of LLC’s principal address: 215 SR 10 East, is designated as agent upon whom State of NY: 10/31/08. Jurisd. and date of Bld. 3, Unit #, Randolph, NJ 07869. Arts of process against the LLC may be served. org.: DE 10/3/08. Principal bus. loc.: 500 org. on file with NJ Div of Revenue, Corp SSNY shall mail a copy of any process Park Avenue, 8th Floor, New York, NY Filing Unit, PO Box 308, Trenton, NJ 08646 against the LLC served upon him/her to 10022. NY State office loc.: New York Cty. Purpose: Any lawful purpose. The LLC, 2 Rector St., Ste. 1100, NY, NY Sec. of State designated as agent upon 10006. General Purposes. whom process against it may be served. KENNETH M. ROSE, M.D., PLLC, a Sec. of State shall mail copy of process domestic Professional Limited Liability to: 500 Park Avenue, 8th Floor, New York, Company (PLLC) filed with the Sec of Notice of Formation of Wolf Artists NY 10022. Addr. of LP in DE is 615 South State of NY (SSNY) on 11-18-08. NY International LLC, Art. of Org. filed Sec’y DuPont Hwy., Dover, DE 19901, c/o office Location: New York County. SSNY of State (SSNY) 9/25/08. Office location: National Corporate Research, Ltd. is designated as agent upon whom NY County. SSNY designated as agent of Name/addr. of GP avail. from Sec. of process against the PLLC may be LLC upon whom process against it may State. Authorized office in DE where Cert. served. SSNY shall mail a copy of any be served. SSNY shall mail copy of of LP is filed is Sec. of State Corporation process against the PLLC served upon process to c/o Kaufman & Kahn LLP, 747 Department, Duke & York Streets, Dover, him/her to The PLLC, 75 Central Park Third Ave., 32nd Fl., NY, NY 10017. DE 19901. Purpose: any lawful activity. West, NY, NY 10023. Purpose: Medicine Purpose: any lawful activities.

December 15, 2008 | Crain’s New York Business | 25 CNYB 12-15-08 A 26 12/12/2008 5:03 PM Page 1

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

Congressman, whose May 1 arrest ECONOMIC SPOTLIGHT led to revelations that he had fathered a child through an extramarital affair, chose not to seek re-election and will leave Congress next month. Game on at NYU new york university launched the NYU Game Center, an undergraduate and graduate degree program for digital gaming research, design and development. Funded by an anonymous gift of $1 million, plus a $200,000 grant from the Rockefeller Foundation, the video gaming degree program is the city’s first. Economy hammers news giants Cowen rejects NEWSPAPER PUBLISHERS felt the wrath of the recession last Rodman’s bid week. THE NEW YORK TIMES CO. is laying plans to sell or investment bank Rodman & mortgage its new midtown headquarters to raise $225 Renshaw Capital Group took an unsolicited run at larger rival million and may consider selling other assets, such as Cowen Group. Although Cowen search engine About.com. Meanwhile, TRIBUNE CO., the promptly rejected the offer, which publisher of the Los Angeles Times and the Chicago Tribune, valued the firm at far less than its Economy Watch cash on hand, the move surprised filed for Chapter 11 bankruptcy, and THE MCCLATCHY CO. Wall Street. Both firms’ stocks have Falling energy prices drove the October decline in area inflation—the largest sunk dramatically over the past year. in 50+ years. The dip in NYC’s jobless rate was insignificant, economists say. began trolling for buyers for its flagship, The Miami Herald. SEPTEMBER ’08 OCTOBER ’08 COMPARISON bloomberg news City’s wallet thins NY area inflation change +0.2% -0.7% +4.3%1 leagues have already made similar Pinched by city, cuts. as the city’s budget crisis NYC unemployment rate 5.8% 5.7% 6.5%2 deepened, Mayor Michael 3 CUNY raises price NYC employment change -2,400 -3,300 +13,500 Hung out to Dreier Bloomberg canceled academy 1-NY area inflation rate for the latest 12-month period. 2-U.S. unemployment rate for the latest the city university of New classes for 100 aspiring firefighters month. 3-NYC employment change year to date. York announced a 15% tuition the u.s. attorney’s office for and ordered every city agency to hike, the first in more than five the Southern District of New York slash spending by another 7% for NYC Hotel Stats Broadway Stats years. City and state budgetary charged prominent Manhattan next year’s budget. City agencies crises are forcing the schools to tap attorney Marc Dreier with have just one week to submit their Occupancy edged up while the Attendance and box-office gross for enrollments for more revenue. defrauding hedge fund investors budget proposals for 2009. average daily room rate slipped in the week ended 12/7 fell short of Beginning in September 2009, out of $100 million in a real estate October, data from PKF Consulting year-earlier levels, according to The full-time, in-state students will scheme. Simultaneously, show. For the first 11 months of the Broadway League. But for the sea- pay $4,600 per year for CUNY’s Wachovia Corp. filed a $9 million New School profs year, both figures were higher than son to date, figures were up 8.6% 11 senior colleges. lawsuit against him for failing to dis leader in vote they were for the same period in ’07. and 10.5%, respectively. pay on a revolving credit line. Grocer bagged senior faculty members at The New School gave school President new york Supermarkets Inc. Mets, Yanks Bob Kerrey (below) a no- agreed to pay $750,000 to settle ask for funds confidence vote after he claims that it failed to give its announced that workers proper wages. State the yankees and the mets the university’s Department of Labor together asked the city for an provost, Joseph investigators said the three-store additional $450 million in public Westphal, will chain’s workers were averaging 15 bonds to finance their new leave to join hours a week in overtime but ballparks, on top of the nearly $1.5 President-elect weren’t receiving overtime pay. billion already granted.The city’s Barack Industrial Development Agency Obama’s must hold a hearing before transition team. NFL’s new play: approving any additional support getty images Mr. Westphal Cut left and right for the stadiums. was the fifth provost since 2001; Capital IQ’s Weekly Deals Report furthermore, Mr. Kerrey angered the national football league FAA plan on hold the faculty by appointing himself TRANSACTION SIZE is laying off 150 employees, more as interim provost. COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE than 10% of its headquarters’ staff, a federal appeals court TotalPrestige Inc. $1.0 Individual investors participated GCI to cut costs. Offices in New York, blocked the Federal Aviation Manhattan New Jersey and Los Angeles will Administration’s plan to auction NY banks grab Mega Media Group Inc. $0.3 Individual investors participated GCI be affected. Employees some landing slots at John F. Manhattan big bailout bucks Kennedy, La Guardia and Newark Every Baby Co. n/a The Mottola Co. GCI Manhattan Liberty airports.The court ruled astoria financial corp. that the auctions cannot be held received preliminary approval for Neuberger Berman Inc. n/a Neuberger Berman Inc. management FB M&A Manhattan until a federal court rules on $375 million in federal bailout Clear Asset Management n/a Beacon Trust Co. SB M&A objections from airport and airline money from the U.S. Treasury’s Manhattan officials. Troubled Asset Relief Program, Augme Inc. n/a Modavox Inc. SB M&A or TARP.In recent days, Sterling Manhattan Bancorp also signed up for $42 Selected deals announced during the week of Nov. 30 for companies headquartered in metro New For Fossella, million, Dime Community York. n/a Not available. FB M&A: Financial buyer M&A represents a minority or majority acqui- Bancshares was approved for $77

sition of existing shares of a company with the participation of a financial buyer. GCI: Growth bloomberg news bars lead to bars capital investment represents new money invested in a company for a minority stake. SB M&A: million, and Flushing Financial Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company volunteering to leave will receive new york rep. Vito Fossella was was green-lighted for $70 million. without the participation of a financial buyer. severance packages. Professional sentenced to five days in jail for —from staff reports and

bekka lindström bekka basketball, racing and baseball drunken driving.The bloomberg news reports

26 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 27 12/11/2008 6:22 PM Page 1

GIFT-GIVING BUSINESS LIVING LARGE Presents Going perfect from global oney is tight, but to Gotham gift lists don’t have to Mbe. Beleaguered PAGE 30 retailers are offering bargains galore to get shoppers through the holiday buying season. Here are some ideas for affordable gifts that will still impress family and friends. PATENT LEATHER CLUTCH, $10; OLDNAVY.COM. Available in assorted colors, this chic bag is perfect for any lady hitting a holiday party or spending a night on the town. At this price, it will also keep some extra green in your own purse. CORKSCREW AND BOTTLE- STOPPER SET, $34.99; UNICAHOME.COM. On sale right now, this stainless steel combination foil-cutter, bottle opener and corkscrew comes with its own stand and makes a perfect gift for the boss, a A TASTE OF ITALY: neighbor or any other Mike’s Deli offers acquaintance. sandwiches with a side of banter to those “JUNO” CHEESEBURGER visiting Arthur Avenue PHONE, $26; FREDFLARE.COM. in the Bronx. Don’t break the piggy bank when getting gifts for the kids.This fun, offbeat device appeared last year in the Oscar-nominated movie Juno. PAUL SMITH CUFF LINKS, $59; BARNEYS.COM. Originally $110, these links are fashionable yet don’t shout “conspicuous consumption.” Available in blue-and-white buck ennis striped enamel over sterling silver, they’re a great bet for husbands and dads. BUBBLE-PATTERNED STAINLESS STEEL NECKLACE, $60; STORE.BREVITYDESIGN. Travel tip: Take the local COM. Forget spending a fortune on diamonds or gold jewelry—stainless steel is the Holiday feasts and fun with an international flavor metal of the moment.This necklace, available in bubbles, are just a subway ride away for NYC day-trippers honeycomb or other graphic patterns, makes a sharp- looking accessory to update a BY STEVEN A. SHAW V-neck sweater. Acrylic earrings with similar designs, n a city where residents speak a total of 170 languages and more than a third of the population is reasonably priced at $14, are foreign-born, there’s no need to hop on a plane to get away this holiday season. New York’s ethnic also available. neighborhoods, from Brighton Beach’s Little Russia to Flushing’s Chinatown, offer a thoroughly SIMPLY VERA VERA WANG KNIT BALLET SLIPPERS, $9; transporting experience for the price of a MetroCard fare. KOHLS.COM. These half- Because these neighborhoods are situated in the middle of New York’s urban landscape, it’s easy to build priced slippers are luxurious a “travel” itinerary that suits any taste—whether you’re young and single or married with kids—and that nonetheless. From the value-priced line of includes visits to major attractions, shopping and noshing. the esteemed For example, a day at the Bronx Zoo’s Wild Winterland festival with the family can be followed by a lazy designer, they’ll afternoon strolling along Arthur Avenue, the Little Italy of the Bronx. Cinema-philes with appetites can make a cozy treat on chilly nights. Icouple a big fat Greek holiday in Astoria with a trip to the nearby Museum of the Moving Image. —adrianne Following are four ideas for international New York City day trips—no passport required. pasquarelli Continued on Page 28

December 15, 2008 | Crain’s New York Business | 27 CNYB 12-15-08 A 28 12/11/2008 6:24 PM Page 1

BUSINESS LIVES Family Fun in the Bronx Global Adventurers Wanted After-Zoo Feast in the Real Little Italy Ride the Orient Express to Flushing AMILY FUN IN THE BRONX ALWAYS STARTS with the Bronx Zoo or the botanical ANY CALL THE NO. 7 TRAIN the “Orient express” or the “international express” because it gardens. But why settle for a lunch of peanuts and hot dogs from their snack traverses so many ethnic enclaves on its journey from midtown Manhattan to Flushing. Get F bars when New York’s most authentic Little Italy is just a 10-minute walk away? Moff at the last stop (Flushing-Main Street), climb up the stairs and brace yourself: The bustle The Bronx Zoo’s Wild Winterland festival, featuring rides on horse-drawn of Flushing rivals the hectic street scene in any Asian city. wagons, storytelling, and ice-carving demonstrations, runs through Jan. 4 this At Shun An Tong Health Herbal Co. (135-24 Roosevelt Ave.), just west of Main Street, have an season, while the New York Botanical Garden hosts its annual train show through herbalist prescribe a blend to cure what ails you. The Double Star Jan. 11. After working up an appetite at either of these attractions, take the Trading Co. (135-05 Roosevelt Ave.) offers housewares and brood to nearby Arthur Avenue for an Italian feast. unusual imports like “Bank of Heaven” and “Bank of Hell” Starting at Crescent Avenue in the Belmont area and walking north along currency, intended for burning at Chinese funerals. And the Arthur Avenue (named for President Chester A. Arthur), you’ll find two densely Flushing Mall (133-31 39th Ave.) is an astounding collection of packed blocks of stores and restaurants. Outside Randazzo’s Seafood shops and food concessions. Among other things, you’ll find (2327 Arthur Ave., 718-367-4139), stop for a half-dozen clams shucked to clothing, art, jewelry, souvenirs, electronics and a teeming food order, which you eat while standing at a metal makeshift counter. court. The shopping experience is frequently punctuated by Next, bring the kids to ogle at the Calabria Pork Store (2338 Arthur Ave., announcements in Chinese over the loudspeaker. 718-367-5145), where hundreds of dry sausages hang overhead. For a hearty The Hong Kong Supermarket in Hong Kong Plaza lunch, hit the indoor Arthur Avenue Retail Market and find Mike’s Deli (37-11 Main St., 718-539-6868) is the neighborhood’s best spot (2344 Arthur Ave., 718-295-5033), where sandwich-making and bantering are for Asian groceries. To enjoy light fare and take a load off, visit the arts passed down from generation to generation. ap images Rose House tearoom (38-10 138th St.) for a cup of rose-petal tea Around the corner, walking east on East 187th Street, check out Casa For a roaring good time, and a selection of desserts; you’ll even find rose cake. For more Della Mozzarella (604 E. 187th St., 718-364-3867), which offers gooey start at the Bronx Zoo. extensive dining, two top choices are Spicy & Tasty

fresh cheeses, and Borgatti’s Ravioli & Egg Noodles (632 E. 187th St., (39-07 Prince St., #1H, 718-359-1601) for some of the best flickr 718-367-3799), where fresh pasta is still cut to order. For a sit-down dinner, the classic family-style Szechuan food in the city, and East Buffet (42-07 Main St., Find a taste of the orient in the near choice is Dominick’s (2335 Arthur Ave., 718-733-2807), while the best and most refined cuisine in 718-353-6333) for an all-you-can-eat smorgasbord that far east: Chinatown in Flushing, Queens. the neighborhood can be found at Roberto’s (603 Crescent Ave., 718-733-9503). exceeds anything in Manhattan. The most direct access to Arthur Avenue is via the B, D or 4 subway lines to Fordham Road and Once you’ve had your fill of Flushing’s Chinatown, take the No. 7 train two stops back toward then the eastbound Bx12 bus to Arthur Avenue. For information on transportation directly to the Bronx Manhattan to visit the Queens Museum of Art and a variety of other attractions in the shadow of the Zoo and the botanical garden, visit www.bronxzoo.com or www.nybg.org. Unisphere—the 140-foot steel globe built for the 1964 World’s Fair—in Flushing Meadows Corona Park. Brighton Is for Lovers For Cinema-philes With Appetites Strolling Russia’s Atlantic Coast A Big Fat Greek Neighborhood: Astoria RIGHTON BEACH, developed as a beach resort in the HE MUSEUM OF THE MOVING IMAGE IN ASTORIA—next door to the famed Kaufman Astoria Studios— 1860s and named to evoke Brighton, England, owes showcases more than 1,000 film and television artifacts and offers computer-based interactive Bits character to successive waves of immigrants: post- Texperiences and demonstrations of professional equipment and techniques in its “Behind the World War II refugees, Russian Jews who arrived during the Screen” exhibition. As an added bonus, admission is free. Take the R or V train to Steinway Street. 1970s through the 1990s, and many non-Jewish Russians Just outside the museum’s doors lies the Hellenic expanse of Astoria. Walking around Astoria, who came over after the collapse of the Soviet Union. especially on Ditmars Boulevard and 30th Avenue, gives you a sense of the Greek- The most direct access to the main drag, Brighton Beach American culture chronicled by Nia Vardalos in her film. It also presents a range of Avenue, is via the B or Q train to Brighton Beach. The D, F shopping and snacking options. For sit-down meals, two of the best are charming and N trains also have stops within walking distance. Agnanti (19-06 Ditmars Blvd., 718-545-4554) across from Astoria Park, and Walking west along Brighton Beach Avenue from the B/Q S’Agapo (34-21 34th Ave., 718-626-0303) near the Museum of the Moving station, young lovers will find several mammoth dining halls Primorski delivers for diners and dancers. Image. If you’re looking for street food, America’s foremost Greek chef, that can satisfy a hunger for pierogies and borscht by day, Michael Psilakis of Anthos in Manhattan, has championed the pork souvlaki and a passion for raucous partying—with floor shows, dancing and free-flowing vodka—by night. Two of from the cart on the corner of 31st Avenue and 30th Street. the most noteworthy are Primorski (282 Brighton Beach Ave.) and National (273 Brighton Beach Ave.). To take home a taste of Zorba, head to Titan Foods (25-56 31st St., In between meals, check out M&I International Foods (249 Brighton Beach Ave.), the definitive 718-626-7771), near the Astoria Boulevard station of the N and W lines. Russian supermarket, and take home some Kremlin delicacies. Continue the cultural adventure with a Titan is the largest Greek supermarket in North America. There are half a look at St. Petersburg Books (230 Brighton Beach Ave.) and Russian DVD (269 Brighton Beach Ave.) dozen varieties of feta cheese, olives are cheap and excellent, and the for the sheer extent of their offerings. baked goods, such as baklava, are first-rate. Greek-Americans from around For a romantic stroll, cut south toward the boardwalk on any through street. A 10-minute walk west the region make pilgrimages to Titan to buy olive oil and other staples. along the beach brings Coney Island into view. The rides are closed, but the tiny yet intriguing Coney The neighborhood is fairly spread out, so arm yourself with a map. Though Island Museum (1208 Surf Ave., 718-372-5159) is open on weekends year-round; admission is only best-known as a Greek area, Astoria is also home to plenty of Latin and Middle 99 cents. Nathan’s Famous offers hot dogs, of course (1310 Surf Ave., 718-946-2705) and Totonno’s Eastern shops and restaurants, as well as the Isamu Noguchi Garden The Isamu Noguchi Museum is serves classic brick-oven pizza (1524 Neptune Ave., 718-372-8606). Take in the street scene before Museum, devoted to the work of the late Japanese-American sculptor. And among the options for visitors it’s gone; this neighborhood may soon be transformed by developers into condos and hotels. a Costco beckons those who want to stock up on the basics. crafting a staycation in Astoria.

THE WEEKS AHEAD

THIS WEEK’S EVENTS information session on accessing market 6:30 p.m. to 8:30 p.m., 11 Penn Plaza, p.m. to 2 p.m., League of American fifth floor. Free. (212) 684-0854, DECEMBER 16 research reports. 4:15 p.m. to 5:30 p.m., fifth floor. Fee: $50. (914) 788-5482 or Orchestras, 33 W. 60th St., fifth-floor ext. 0538, or [email protected]. Brooklyn Business Base and Park Slope 188 Madison Ave., lower level. Free. [email protected]. conference room. Fee: Free for members JANUARY 8 Eye hold session on peak performance (212) 592-7000. DECEMBER 18 and students, $15 nonmembers. Long Island University-Brooklyn and strategy. 6 p.m. to 9 p.m., 682 Union St., DECEMBER 17 Brandon Public Relations holds work- Preregistration required. (212) 353-8070, Internal Revenue Service hold tax Brooklyn. Fee: $25 in advance, $35 at New York Building Congress holds shop on publicizing your organization in ext. 204, or [email protected]. practitioner seminar. 8 a.m. to 5 p.m., the door. (212) 937-7911. breakfast forum with former MTA the current economic climate. 8:30 a.m. 1 University Plaza, LLC 116, Brooklyn. DECEMBER 16 Chairman Richard Ravitch. 8 a.m. to to 10:30 a.m., 521 Fifth Ave., 17th floor. DECEMBER 22-28 Fee: $99. Preregistration required. Socializing Master holds dinner on 9:45 a.m., Hilton New York, 1335 Sixth Fee: $250. (212) 563-6580 or DECEMBER 22 (718) 780-4062 or relationship building through Ave., Trianon ballroom. Fee: $75 [email protected]. Lower Manhattan Business Solutions [email protected]. networking. 6:30 p.m. to 8:30 p.m., members, $140 nonmembers. DECEMBER 18 Center holds workshop on how and —maia blume Junior’s Restaurant Times Square, West (212) 481-9230. iBreakfast holds breakfast on finding where to get financing. 10 a.m. to 45th Street at Schubert Alley. Fee: $20. DECEMBER 17 wealth in computer applications. 7:30 12 p.m., 110 William St., fourth-floor (347) 653-7086 or Nexco holds seminar on marking and a.m. to 10 a.m., CresaPartners Executive conference room. Free. (212) 618-8914 TO LIST YOUR EVENT [email protected]. labeling for the apparel industry. Center, 100 Park Ave., 24th floor. Fee: or [email protected]. Crain’s lists meetings online and includes them in the DECEMBER 17 9:30 a.m. to 12 p.m., Williams Club, $50 members, $60 nonmembers in print edition as space permits. NYC events with fees New York Public Library holds 24 E. 39th St. Fee: $45 members, $80 advance; additional $15 for all at door. JANUARY 5-11 under $300 are considered for the print publication. JANUARY 7 nonmembers. (877) 291-4901 or (212) 624-9110 or [email protected]. Listings can be submitted only through the Crain’s More meetings online at [email protected]. DECEMBER 18 Workshop in Business Opportunities Web site. Go to www.crainsnewyork.com and click www.crainsnewyork.com DECEMBER 17 Women’s City Club of New York holds and National Employment Law Project on “Events.” Sponsors have a choice of several free Click on “Events” Five O’Clock Club holds seminar on program on the foreclosure crisis and its hold free small business legal clinic. or paid listing options. All business events will be how to turn job interviews into offers. impact on NYC neighborhoods. 12:30 6 p.m. to 8 p.m., 55 Exchange Place, posted online within two business days.

28 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 29 12/12/2008 12:27 PM Page 1

BUSINESS LIVES CORPORATE LADDER David Dickson Dealmaker back in game Former Merrill exec relationships with private equity shops like Kohlberg Kravis Roberts PERSONNEL FILE resurfaces at and Warburg Pincus. He resurfaced in October as a partner at invest- COMPANY Watch Hill Partners boutique Watch Hill; ment banking boutique Watch Hill TITLE Partner Partners. six months of golf He says Watch Hill executives, AGE 49 who he has known for years, were FAVORITE RESTAURANT San BY AARON ELSTEIN “bugging me to join.” Pietro ealmaker David Pay cut was likely HOBBIES Hockey, paddle tennis Dickson carries a list david knowlton, the firm’s man- three-and-a-half aging partner, calls Mr. Dickson pages long—single “exceptionally experienced and tal- distressed assets. spaced, no less— ented.” “The landscape is wide open,”he Dshowing every corporate merger It’s likely that Mr. Dickson had says with an investment banker’s that he’s worked on over his 25-year to take a substantial pay cut to get congenital optimism. Wall Street career. It includes such back in the game. A managing di- Wall Street runs in Mr.Dickson’s headline-grabbers as 2006’s $32 bil- rector at a big investment bank blood. His father was a government lion leveraged buyout of hospital could expect to make $2 million last bond trader at Merrill, Goldman operator HCA and last year’s $29 year, according to recruiting firm Sachs and J.P. Morgan, and his billion LBO of credit-card proces- Options Group, but Mr. Dickson brother is a trader at MF Global. A sor First Data. figures to make only half that, as- New Jersey native, Mr. Dickson The list would be even longer, suming he can land a deal or two.Of broke into investment banking at Mr. Dickson emphasizes, but it course, he’s vastly better off than Dillon Read, a small partnership omits assignments that didn’t come many of his former colleagues look- much like Watch Hill, where he to fruition.Over his career,he’s bro- ing for work. mastered the arts of discounting

kered sales of everything from rein- Silent as the dealmaking scene cash flow and pitching takeover buck ennis surers to paper mills. may be now, Mr. Dickson insists ideas. “I think I’ve sold more timber- there is plenty to do. Companies er steered him into advising private blinded by them. After considering land than anyone,” he says. need advice on restructuring, he Enviable Rolodex equity firms just before the LBO his words for a moment, he steps Now, after six months of playing says, and on striking mergers where after dillon read was acquired boom. His years in the business give back and says it’s possible that, in golf and spending time with his the objective is shrinking costs. He by UBS in the late 1990s, he rose him a Rolodex few on Wall Street fact, he has not sold more timber- family,Mr.Dickson is back to add to adds that his LBO clients are also through the ranks until he became can match and a bravado that many land than anyone. his list. In April, he accepted a buy- busy exploring deals even if they head of UBS’s industrial mergers dealmakers share. “Maybe my protégé [who is now] out from Merrill Lynch & Co., aren’t making any, and he’s trying to group.His boss,former UBS invest- But while he’s proud of his ac- at Goldman Sachs has sold more where he was in charge of the firm’s raise money for a fund to invest in ment banking chief Ken Moelis,lat- complishments, Mr. Dickson isn’t than me,” he says. I

EXECUTIVE MOVES HOT JOBS ACCOUNTING & CONSULTING LAW partner. She was formerly a partner at Anchin Block & Anchin: Laurie Fasinski, Cravath Swaine & Moore: John W.White, Thelen. 45, was promoted to principal, business 60, will rejoin as partner in January Steven J. Rizzi, 44, joined as partner. He WANTED: management services, from director. 2009. He had been director, division of had been a partner at Thelen. CHIEF FINANCIAL OFFICER Larry Feibel, 47, joined as partner. He corporation finance, at the Securities Fried Frank Harris Shriver & Jacobson: was previously a partner at Marks and Exchange Commission. Greg Gnall, 55, joined as special counsel. COMPANY Martha Stewart Living Omnimedia Inc. Paneth & Shron. Davis Wright Tremaine: Andrew H. He was formerly counsel at White & Paul Gevertzman, 47, was promoted to Abramowitz, 38, joined as partner. He Case. JOB DESCRIPTION Oversee financial operations for the publishing and partner from director. was formerly a shareholder at Greenberg Eric A. Hirsch, 35, was promoted to merchandising company Steven Kahn, 37, joined as partner. He Traurig. special counsel from associate. MOST IMPORTANT TASK Help the company weather the recession had been a partner at Grant Thornton. Duane Morris: Mark Canizio, 51, joined Michael J. Rhee, 35, was promoted to Jeffrey Perelman, 44, was promoted to as partner. He was formerly a partner at special counsel from associate. CREDENTIALS NEEDED Proven experience in financial management of a partner from managing director. Thelen. Labaton Sucharow: Jay L. Himes, 60, large media company Friedman: Amish Mehta, 38, joined as Michael Chartan, 52, joined as partner. joined as partner and co-chair of the director, not-for-profit services. He was He had been a partner at Thelen. antitrust practice group, a new position. SALARY Previous CFO earned $610,000 formerly senior manager at Grant Frederick Cohen, 66, joined as partner. He had been the antitrust bureau chief DOWNSIDE Company recently cut its 2008 revenue forecast by 2%, Thornton. He was formerly a partner at Thelen. at the Office of the Attorney General of Richard Dyer, 60, joined as partner. He the State of New York. expects to report $295 million ARCHITECTURE & DESIGN was previously a partner at Thelen. Mound Cotton Wollan & Greengrass: Amy UPSIDE A high-level post at a well-known brand and the opportunity to Butler Rogers Baskett Architects: Alfonso Dennis Konner, 66, joined as partner. He J. Kallal, 38, was promoted to partner work for a well-respected CEO, Wenda Millard, a former top Yahoo ad S. D’Elia, 59, joined as partner. He was formerly a partner at Thelen. from associate. executive previously was project architect and vice Kenneth Lazaruk, 57, joined as partner. Eric J. Voigt, 39, was promoted to partner president, design and standards, at J.P. He had been a partner at Thelen. from associate. Chief Financial Officer Howard Hochhauser recently announced that he Morgan Chase. Allen J. Ross, 69, joined as partner. He Pillsbury Winthrop Shaw Pittman: will leave MSLO on Dec 31 after eight years to take the same post at The had been a partner at Thelen. Jonathan Russo, 47, joined as partner. He Generations Network Inc., parent company of Ancestry.com. Allison FINANCE & INSURANCE Arthur Silverman, 70, joined as partner. had been partner at Thelen. Jacques, MSLO’s controller, will assume the CFO role until a replacement Catalyst Investors: Todd Clapp, 34, was He was previously a partner at Thelen. Reed Smith: Eulalia Mack, 45, joined as promoted to general partner from John Wojak Jr., 47, joined as partner. He partner. She had been a partner at is named. —AMANDA FUNG principal. was formerly a partner at Thelen. Thelen. Johnson Capital: Bob Williams, 45, joined Foley & Lardner: Barry Felder, 55, joined Seyfarth Shaw: Richard Crystal, 68, as senior vice president. He was formerly as partner. He had been a partner at joined as of counsel. He had been a senior vice president and East regional Thelen. partner at Thelen. manager of origination at the Royal Catherine McGrath, 53, joined as as executive vice president, business Bank of Canada. MEDIA & ENTERTAINMENT WGN America: Kevin Connor, 42, was development. He previously was Travel Ad Network: Ron Bernstein, 51, promoted to vice president, finance and principal at Sygrove Advisory Services. EXECUTIVE PROMOTIONS HOSPITALITY & TOURISM joined as senior vice president, sales, a administration, a new position, from Marcus & Millichap: Mack Tham, 43, Millennium Broadway Hotel: Michael The fastest way to get an announcement into newly created position. He previously director. joined as investment specialist. He was Lotwich, 47, joined as executive director of Crain’s is to submit details online. Fill out the form was senior vice president and general formerly director of sales at Massey the Conference Center. He was formerly at www.crainsnewyork.com/submit. The manager, online sales and marketing, at REAL ESTATE Knakal Realty Services. general manager at Marriott ExecuStay. Executive Moves column is also available online. USNews.com. HelmsleySpear: Paul Sygrove, 49, joined —maia blume

December 15, 2008 | Crain’s New York Business | 29 CNYB 12-15-08 A 30 12/11/2008 4:40 PM Page 1

BUSINESS LIVES LIVING LARGE Global nomad finds happiness in Chelsea condo Marketing expert VITAL STATS HOME AT LAST: caps momentous Julie Bauer moved PROPERTY Loft 25 30 times in as many years before year by establishing ADDRESS 420 W. 25th St., #8G buying an apartment this summer. roots in New York ASKING PRICE $2.1 million PURCHASE PRICE BY ALIX STRAUSS $2.05 million CLOSING DATE Aug. 11

ulie bauer has moved 30 buck ennis times in the past 30 years. But the nomad put down ing firm. “I bought a dog and an sunbathing area; a gym; a media She has worked in advertising on 10th Avenue, the dog run and roots in August, purchasing apartment. I’m here to stay.” center; serenity space; and a storage for 20 years, running agencies and the galleries. a $2.05 million two-bed- The 2,200-square-foot resi- room—are on par with those of the handling strategic management, The building—about 75% of it Jroom, two-bath condo in dence boasts a terrace, office space behemoths. and she has held positions around retains the original facade—was West Chelsea. and ultrahigh ceilings. Ms. Bauer the globe, including for Saatchi & still under construction when Ms. “This was a big year for me. I prefers the 70-unit doorman prop- No getting rid of “musty” Saatchi in Europe and the Middle Bauer made the commitment to turned 50, and my business cele- erty over the large luxury buildings the brand-new construction was East. Furnishings from her travels buy in May. She closed three brated its one-year anniversary,” popping up all over the city. It another plus. “An apartment needs grace her new pad: chests from months later and moved out of the says the owner of BauerWorks, a helps that the amenities—a roof to smell fresh and new,” Ms. Bauer China and Africa, an “Alice in three-bedroom on Duane Street marketing-and-branding consult- deck with a bar, a shower and a says. “You can’t get rid of musty.” Wonderland” chair that Ms. Bauer that she had been renting for found in Atlanta and an oversize $9,200 a month. Though she put mahogany table she purchased in 30% down, the monthly mortgage London. payment is similar, $9,000, and Ms. Bauer spent two months condo fees add $2,100 to her looking for the right space, viewing monthly nut. some 40 apartments. When her broker first showed her the land- Saving on office space mark 1912 structure in Chelsea, “it is a lot of money to spend, which started life as a printing but since I work out of my home, facility, Ms. Bauer looked at a first- I’m saving on not having to rent an floor duplex. Though she found office,” Ms. Bauer says. “I realize that apartment too dark, when 8G I’m very fortunate.” came on the market after a previ- She doesn’t regret buying just as ous offer fell through, she loved it. the financial meltdown shook the Bright and airy, it immediately felt city’s economy and firmly believes like home. that the market will bounce back, After Before submitting her offer, though it might take a while. Ms. Bauer followed the broker’s “Even though the timing to buy 50 years, advice and conducted a marathon might not have been great, it was search: 11 units in eight hours. She worth it,” Ms. Bauer says. “I never WE’RE STILL also walked the neighborhood and thought I’d love this area, but I was impressed by the restaurants do.” I NEW YORK’S FAVORITE! REAL ESTATE AND MORE ON CRAIN’S WEB SITE alerts that provide news about a particular real estate brokerage or firm. Resources Get easy links to government agencies and industry groups involved in New York real Tuesday e-mail Sign up today for estate. Crain’s Real Estate Insider, a Back issues weekly e-mail newsletter featuring Use the CALL OUR CATERING DEPARTMENT TODAY the latest deals, events and archives to personnel moves in one of the find Crain’s hottest industries. To register, go to stories in any 212-947-7349 www.crainsnewyork.com/ CATERING FOR ALL OCCASIONS • FAST RELIABLE DELIVERY previous signup. edition of the Breaking news E-mail alerts keep paper. Our 6-foot HERO PARTIES…Your Best Buy! you up-to-date on developments in Subscribe the local real estate business as Use the “Subscribe now” button WE ALSO SPECIALIZE IN: they happen. • Fantastic Pasta Parties • Hot Italian Entree Parties • Roman Cold Tray Buffet Parties to get the weekly print edition of Company alerts Visitors to Crain’s Crain’s and digital subscriptions to VISIT www.heroboy.com FOR OUR FULL CATERING & LUNCH MENUS Web site can sign up for e-mail the newspaper.

30 | Crain’s New York Business | December 15, 2008 CNYB 12-15-08 A 31 12/12/2008 12:28 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape I’m a sucker for mac and cheese, monds accessorize the best,a choco- so there is no resisting Almond’s late pot du crème. A lemon custard main-course edition of “Le Grand tart and an apple crisp with ice Macaroni & Cheese.” It’s big— cream are not candidates for culi- plenty for at least two people—with nary Oscardom. a liberal dose of diced prosciutto and The wine list is short and tilts to black truffles. It’s also $18, and it the surprisingly obscure French,giv- brings instantly to mind Waverly en that this is an “American bistro.” Inn’s mac and cheese with freshly Almond’s look leaves a good deal grated white truffles, which costs to be desired.What seems to be dis- about $40 more. There’s a world of tressed barn wood with a slapdash difference between the black truffles whitewash job frames the whole and the intensely pungent white place.The bar is backed by a wall of “diamonds of the earth,” but nowa- white tiles, bearing no aesthetic link days, the bargain dish is admirable. to anything. One surmises that the Dessert is the only course that new operators at the Chodorow space does not exceed expectations, and simply tried to tart up what they meeting expectations, of course, is found. The result is, frankly, ugly. the way in which restaurants and Thank heaven for the food and value must be measured. Sliced al- service. I CRACKING THE CODE: Jason Weiner (left) and Eric Lemonides have two successful models in the Hamptons. buck ennis In a nutshell, a fun bistro Comfort food, service ides moves briskly among the tables, roasted rack of lamb with Dijon adding further dimension to the en- mustard and root vegetables. The mark Almond; beware gaging service of his personable and seafood consistently shines,whether professional waitstaff. it is lemon-crusted skate wing with of din, decor, dessert Chef and co-owner Weiner, garlic chips and caramelized fennel brother of mayoral aspirant Rep.An- or an Iberian-accented duet of sea here’s a robust new- thony Weiner,is a sure-handed pro- scallops with braised pork shank. comer in the seemingly ducer of contemporary comfort food. The latter is done up with polenta jinxed location of 12 E. His cooking is keyed to seasonal ravioli and caramelized onion jus. Dale Corvino • [email protected] • 212-626-6515 22nd St., the roomy farm ingredients prepared with sim- space where master plicity and generosity. The kitch- Trestaurateur Jeffrey Chodorow en’s hints of French technique and keeps stubbing his entrepreneurial dishes are echoed in menu head- toe in a series of hookups with no- ings such as fruits de mer, raw bar table chefs. choices and group- You don’t even have to ask. No one will for- ings, plats du jour get Rocco’s (Rocco and croques gratin. Business direction you can actually use. DiSpirito), but its Among first- successors,the weird- course options ($10 ly named Caviar & to $15), duck confit Banana (Claude is paired with Troisgros) and creamy lentils and Borough Food & accented with Ban- Drink (Zak Pelac- yuls vinegar;steamed cio), slipped quietly mussels soak up a into the dark night. fine broth enriched There is nothing with shallots, white quiet or dark about ALMOND wine and parsley. Almond, an Ameri- 12 E. 22nd St. (between Saffron aïoli accom- can bistro where Park Ave. So. and Broadway) panies five cleanly “nuts” describes the (212) 228-7557 fried salt cod cro- noise level.The joint www.almondnyc.com quettes. Fig jam is is jumping,with rea- ## counterpoint to a son. foie gras mousse,and Jason Weiner CUISINE American bistro frog’s legs are com- and Eric Lemon- WINES 55 choices, 12 by the bined with escargots ides,boyhood chums glass in vol-au-vent. from Brooklyn, may DRESS No code Crisp, fresh and Contact Jeffrey Weiner, have the right mod- NOISE LEVEL Brutal pristine salads are el to make it in heaped high. Esca- our Head Partner in New York, at 212.981.3000 or via email at [email protected]. Manhattan.They’ve PRICE RANGE $18-$34 role, mint and pista- already done it in WINE MARKUP 67%-240% chios are combined the Hamptons, with CREDIT CARDS All major under shaved peco- both Almond and RESERVATIONS Recommended rino; and smoked Marcum & Kliegman LLP Almoncello. bacon crisps punctu- HOURS Seven days, 5:30- Certified Public Accountants & Consultants A young, good- 11 p.m. ate frisée tossed with looking crowd is sherry vinaigrette An M&K Group Company four deep at the 20- ####= Outstanding and crowned with a ###= Excellent www.MKLLP.com seat bar, and 150 ## poached egg. dining-room spots = Very good Entrées range #= Good New York, NY Melville, NY Roseland, NJ Tinton Falls, NJ Greenwich, CT Grand Cayman, BWI are in constant de- from a “deluxe”ham- 212.981.3000 631.414.4000 973.618.0800 732.922.9900 203.861.9700 800.921.0777 mand. Mr. Lemon- burger to whole

December 15, 2008 | Crain’s New York Business | 31 CN012642 12/11/08 12:10 PM Page 1

tel 212 465 6106 | [email protected] | www.thegarden.com/specialevents