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Ironworkers Bend on Wages PAGE 2 Taxi! Follow Desperate for Jobs, Union Gives Back Raises; Total Project Costs by up to 25% 20120528-NEWS--0001-NAT-CCI-CN_-- 5/25/2012 7:07 PM Page 1 INSIDE NASDAQ TOP STORIES ATTACK City’s scarcest The Facebook fallout resource these In the Markets days? Engineers ® Page 4 PAGE 3 Kids’ lines behave VOL. XXVIII, NO. 22 WWW.CRAINSNEWYORK.COM MAY 28-JUNE 3, 2012 PRICE: $3.00 badly for retail industry Ironworkers bend on wages PAGE 2 Taxi! Follow Desperate for jobs, union gives back raises; total project costs by up to 25%. hours from seven. The 1,500-member union relin- The unusual decision to amend that cab’s rare move could trim project costs by 25% quished a 4% raise this year and cut their existing contracts across the fare increase next year’s scheduled 4% increase to board comes as the ironworkers an unprecedented wage and benefit 2%. Wages and benefits will now face the possibility that the Tappan PAGE 3 BY DANIEL MASSEY rollback. It’s already shaking up de- total $79 an hour instead of the $93 Zee Bridge could be rebuilt with- velopment in the city. the union had previously won in out them—with steel fabricated Bronx retail strip The ironworkers’ union—desper- Members of Metallic Lathers negotiations. offsite to save the state money— ate to regain market share from and Reinforcing Ironworkers Local In addition, the union members and as the heavyweight real estate goes from famously surging nonunion construction, 46 voted earlier this month to cut agreed to allow on job sites a high- developer Related Cos. aggres- bad to bustling and afraid of missing out on lucra- their overall compensation by 15%, er percentage of apprentices, who sively seeks cost savings to jump- NEIGHBORHOODS, PAGE 5 tive work at Hudson Yards and the or by about $14 an hour, and to earn less than half the standard pay, start its massive Hudson Yards Tappan Zee Bridge—has agreed to work-rule changes that could slash and to expand the workday to eight See IRONWORKERS on Page 7 It’s the return of the Automat NEW YORK, NEW YORK, P. 6 HEALTHY HUNCH: Chop’t founders Colin McCabe and Tony Shure MAPPING SUCCESS: Former eBay exec CULTURE WARRIORS: WiT Media principals Clint White and BUSINESS LIVES rightly bet that customers were hankering for fresh lunch options. Joe Meyer is expanding HopStop. Simona Tanesescu spread the word about NY’s arts groups. GOTHAM GIGS Taking urban farming to a new level P. 21 ● ANNE FISHER Manufacturing jobs make a comeback P. 21 ● MOVERS & SHAKERS Russian banker shares his U.S.plans P. 22 ● GAEL GREENE SPECIAL DELIVERY: Matt Blumberg’s Fighting the crowd at firm protects emails from spam filters. Primola P. 23 INDEX BRIGHT STAR: Charles Feit plans to THE INSIDER install New York’s largest solar setup. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 ENTREPRENEURS REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ TOP 9 OPINION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 Starting a business in New York isn’t for THE WEEK ON THE WEB _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _17 CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _18 the timid. But for entrepreneurs with HOT JOBS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _21 COSMETICS PRO: Laura Geller’s make- mettle, having a big vision can pay off. THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _23 up biz projects $36 million in revenues. Crain’s Top Entrepreneurs for 2012 22 have built thriving companies despite severe 5 economic turbulence. Read the inspiring stories of how they made their mark. PAGE 13 NEWSPAPER photos: buck ennis 71486 01068 0 20120528-NEWS--0002,0003-NAT-CCI-CN_-- 5/25/2012 7:12 PM Page 1 IN BRIEF AS SECRETARY OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IN THE Clinton administration, Andrew Cuomo helped create the Upper Manhattan Empowerment Zone, funded with a $100 million commitment each from the city, state and federal governments.The feds paid up, and the city has made good on most of its commitment.The state, however, has not. In the past few years, funding for UMEZ, also a signature initiative of Rep. Charles Rangel, has slowed to a trickle. According to the state Division of the Budget, the state owes $25 million and has paid just $4.4 million over the past 10 years. Now that he’s governor, Mr. Cuomo is “working to fund the balance of the state’s commitment,” a budget spokesman said. A MANHATTAN JUDGE PUT OFF FOR TWO WEEKS A SUIT BY THE OPERATING ENGINEERS’ union that sought to block the city from implementing new crane licensing requirements. State Supreme Court Judge Paul Wooten last week set June 6 as the day for oral arguments on the request by International Union of Operating Engineers Local 14-14B for a temporary restraining order preventing TALENT SCOUT: Lynne Meadow has the rules from being implemented.The nurtured artists operating engineers argued that new crane like playwright licensing rules would “unlawfully dilute safety Terrence McNally standards.”The new rules followed several at the Manhattan high-profile crane collapses, but the dispute Theatre Club. has as much to do with money and power as safety.The new rules could break Local 14’s monopoly by allowing out-of-town operators buck ennis to get licensed here, potentially reducing labor costs. Developers and the city have said the Cities scored five nominations and is fa- new rules would increase safety. Ⅲ vored to win best play,according to theater wags, Manhattan Theatre Club had more Broadway’s real star nominations this year for shows in which it acted as the lead producer than any oth- BY THE NUMBERS er nonprofit theater group. “Every show we selected and produced Weekly shift of the city’s economy this theater season was nominated, and that’s a really good track record,” said Lynne Meadow, artistic SOCKED IN Yes, home prices in March saw their biggest gains in 20 years, but don’t count on that director of MTC. “We’ve had many good continuing. Job figures are weakening, and ditto Lynne Meadow’s 40-year run at MTC seasons,but we’re really in a moment here.” for data on China, Brazil and certainly Europe. There couldn’t be a more fitting season ther best actor,best play or both—the most for Ms.Meadow to shine.Next month,she BY MIRIAM KREININ SOUCCAR nods it has had in years. celebrates her 40th anniversary in her role, 3.57% $6.9B 2.4% Leading the pack are Venus in Fur, the making her one of the longest-reigning RISE IN NYC’S STATE TAX RISE IN NY major crimes collection in April, AREA’S April The Tony Awards aren’t until June 10, but daringly dark comedy that is nominated artistic directors in theater today.She’s also for the year to down 4.7% consumer price the Manhattan Theatre Club already feels for best play and best actress, and Wit, one of the few women in such a leading role date, as of from a year index vs. like a winner.All four of the nonprofit the- nominated for best revival and best actress in the industry. May 13 earlier a year earlier ater company’s plays this season were for its star, Cynthia Nixon. Although Lin- Ms. Meadow runs the company with Source: Source: NYS Source: Bureau of See BROADWAY on Page 20 NYPD comptroller Labor Statistics nominated in a major Tony category—ei- coln Center Theater’s hit Other Desert GRADUATION Last year, a larger percentage of high schoolers got their diplomas in Staten Island than in any other borough. High-school graduation rate Kids wear out retailers 75% 69% 67% 64% 60% to enter.” For the first three months of the High costs, low margins In addition to American Eagle year, apparel and accessories for chil- force many chains to and Ms.
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