BROKELYN a Boom in Food Manufacturing Showed Just How Easy It Is to Launch a Startup in New York
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CRAINS P001_CN_20160530.qxp 5/27/2016 8:27 PM Page 1 CRAINS Wheelchair-friendly taxi shortage angers owners P. 5 | Hospital closure hints at a reckoning P. 7 | Music festivals usher in a rivalry P. 15 ® MAY 30-JUNE 5, 2016 | PRICE $3.00 NEW YORK BUSINESS BROKELYN A boom in food manufacturing showed just how easy it is to launch a startup in New York. Surviving here, however, is the hard part PAGE 13 VOL. XXXII, NO. 22 WWW.CRAINSNEWYORK.COM 0 71486 01068 5 22 NEWSPAPER 20160530-NEWS--0002-NAT-CCI-CN_-- 5/27/2016 8:58 PM Page 1 MAYCRAINS 30-JUNE 5, 2016 FROM THE NEWSROOM | JEANHEE KIM A chance to remember IN THIS ISSUE 3 AGENDA TIMOTHY MELIA WAS A Marine, a firefighter and a family man 4 IN CASE YOU MISSED IT who died in a car accident on Long Island a year ago. Tim 5 TRANSPORTATION was also my husband’s first cousin, one of 21 in that 6 ASKED & ANSWERED generation of the proud and boisterous Melia family. 7 HEALTH CARE On May 27, at the start of the Memorial Day weekend— 8 WHO OWNS THE BLOCK when we remember those who have lost their lives in 9 Wanna sell some service to the nation—family, friends, Marines, the highest- REAL ESTATE high-end condos? Try publishing a ranking officers of the city’s Fire Department and dozens of 10 VIEWPOINTS glossy magazine uniformed firefighters gathered 11 THE LIST for the unveiling of a plaque dedicated to him. Through his work It was a chance to keep Tim in our memories. “Through FEATURES his work he saved the lives of New Yorkers,” he saved the lives “ 13 FOOD FAIL Commissioner Daniel Nigro said. “Our gratitude will not be of New Yorkers. 15 BATTLE OF THE BANDS diminished with time.” Our gratitude will Tim grew up in Massapequa, the second-oldest of five. About a year after the Sept. 11 terrorist attacks, he turned 18 not be diminished and enlisted in the Marine Corps. He served two tours in with time Iraq, fighting in Baghdad and Fallujah. Then he returned to serve the people of New York City. Like his father, uncle and grandfather—and more than 1,400 other veterans and active reservists—Tim joined the FDNY. He was a firefighter for nine years with Engine 332 in East New York, in P. 6 the same Brooklyn district that his grandfather had commanded decades earlier. James McGovern He also became a father. Tim and his wife, Lisa, had four children in quick succession: Madison, Desiree, Chloe and Timothy Jr. They bought a house in Bay 20 GOTHAM GIGS Shore, Long Island, with a swing set and a pool in the backyard. 21 SNAPS A week before his 31st birthday, Tim’s car flipped over on a lonely road a half- 22 FOR THE RECORD hour from home. His death reminded me of a conversation I’d had with him when 23 PHOTO FINISH he returned from Iraq. He had been sleeping well, he said. His biggest issue was that he had to concentrate to drive on the sedate streets of Long Island. As an armored- vehicle driver, he had been trained to zigzag to avoid roadside bombs. Because Tim died off-duty, the benefits to his family are limited. The FDNY Foundation, however, has an educational fund for the Melia children, and the Uniformed Firefighters Association provides assistance through a fund established for families of those who have died off-duty but while in active service. A year has crystallized some memories. For example, his fellow firefighters remember that Tim grew his hair long to piss off the officers. “That Timmy had a hard head,” said Capt. John Saville, his superior for eight of his nine years in the ON THE COVER FDNY. His wife revealed to me that it was Tim who potty trained their daughters. PHOTO: BUCK ENNIS “Before he was a Marine, before he was a firefighter, he was a father,” Lisa said. “He was a hero and I miss him. We all do.” DIGITAL DISPATCHES Applications remain open! DEADLINE EXTENDED Go to CrainsNewYork.com CRAIN’S FASTEST- READ Coney Island’s GROWING COMPANIES Luna Park debuted two new rides Each year, Crain’s recognizes the Memorial > New York-area companies Day weekend: the with the highest three-year Endeavor (shown revenue growth rate. right), a thrill ride, and Public and private companies Convoy, a classic train with at least $10 million ride for kids. in revenue are eligible. ■ SHOW EVERYONE HOW The 92nd Street Y will rename its Center FAST YOU REALLY ARE for Innovation and Social Impact the Belfer Center for Innovation & Social Impact follow- CrainsNewYork.com/ ing a $15 million gift from the Belfer family. ApplyFast50 ■ Jamestown, the owner of Chelsea Market, Vol. XXXII, No. 22, May 30, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double plans to spend $35 million to $50 million issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., to double the size of the 1.2-million-square- New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address foot meatpacking-district property’s retail changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. space. The owner has already started For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years.(GST renovating the building’s lower level. No. 13676-0444-RT) BUCK ENNIS ©Entire contents copyright 2016 by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | MAY 30, 2016 20160530-NEWS--0003-NAT-CCI-CN_-- 5/27/2016 8:22 PM Page 1 AGENDAWHAT’S NEW MAY 30, 2016 Success of council’s crime reform depends on what police make of it he lopsidedness of the City Council’s 47-2 vote last week to soften penalties for minor offenses belied the unease it generated among many New Yorkers. Their concern is that Pollyannaish politicians are ushering back the rampant Tlawlessness that once plagued the city. Police Commissioner Bill Bratton—the city official most trusted by the MISGIVINGS business community—rightly criticized earlier versions of the council’s held by Bratton proposal. But if public safety takes a turn for the worse, this legislation moved the City Council to com- will only be partly to blame. promise on Importantly, the bill was amended to address Bratton’s concerns. penalties. Police retain their authority to demand identification, so they can check for outstanding warrants. The legislation only encourages—rather than policing. Although studies haven’t proved that cracking down on compels—cops to issue summonses rather than make arrests for such behaviors like turnstile-jumping reduces violent crime, infractions that low-level, nonviolent offenses as littering, making noise, drinking or harm the quality of life should have repercussions. urinating in public and being in a park after hours, but police will still Just because officers don’t have to arrest New Yorkers who gather on have ample power to punish infractions that bother New Yorkers. the sidewalk to drink or smoke marijuana does not mean disturbing the The key is how police will use the dis- peace should be without consequences. cretion that the commissioner succeeded With their newly codified discretion, Using their newly codified discretion, in preserving. Directing officers is police must intensify enforcement of Bratton’s job, not the council’s, but the police should intensify enforcement of quality-of-life rules, not relax it. new bill helps by establishing penalties quality-of-life rules, not relax it The council estimates that each year commensurate with infractions. Officers the bill will divert more than 100,000 may be more likely to take action against behavior that merits punish- cases from the overburdened criminal-court system, spare nearly 10,000 ment but not necessarily an arrest, which is labor-intensive for police people from permanent criminal records and avoid the issuance of and potentially life-changing for suspects. Among the city’s poor, hor- 50,000 warrants. We hope this can happen without giving up New ror stories abound of heavy-handed treatment by a dysfunctional crim- York’s gains. But if things go the wrong way, the bill permits the mayor inal-justice system. Needless arrests burden society by hindering people and the NYPD to police the city almost exactly as they have in the past. from finishing their education and moving up the economic ladder. They remain accountable for reducing crime and must do what’s need- That said, crime has fallen dramatically under “broken windows” ed to ensure the city remains not just safe but livable, too. – THE EDITORS FINE PRINT New York’s inability to get other locales to accept its garbage is likely to increase the cost of waste disposal. In late May, a $3.3 billion, 30-year contract to ship a quarter of the city’s waste to the Finger Lakes fell through because of local opposition. An earlier plan was killed by critics in New Jersey. “The Department of Sanitation is perceived as desperate,” one insider said. BY GERALD SCHIFMAN STATS 25 WORDS OR LESS MIDDLE-WAGE BOOST THE FEDERAL OVERTIME threshold will rise to $47,476 in December, boosting the incomes of thousands of working-class New Yorkers who work more than 40 hours per week. AND THE CITY The pictures look Number of NYC workers who Additional average annual earnings for “ weren’t previously eligible for each of the 67,000 workers, totaling like awkward 67,OOO state or federal overtime $300 $20 million in extra wages family photos INDUSTRIES WITH AVERAGE ANNUAL WAGES NEAREST THE NEW THRESHOLD — Phil Shawe on having to share a School teaching $51,310 stage with his ex-lover Liz Elting, with whom he has been in a protracted Dentist Office $47,516 court battle over the translation com- pany they own equally.