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NEXT WEEK REAL ESTATE HONCHOS GAZE INTO THEIR CRYSTAL BALLS and tell us when (and if) the market will come back PLUS THE LOWDOWN on all those stalled ® mega-developments

INSIDE VOL. XXVI, NO. 1 WWW.CRAINSNEWYORK.COM JANUARY 4-10, 2010 PRICE: $3.00

TOP STORIES Media companies STAND BY, NEW YORK, FOR A hit the bottle PAGE 2 The garment district TOUGH LOVE spawns a theater and dance enclave PAGE 3 RECOVERY buck ennis Splitting up boosts HAPPY ENDING: APF Properties’ Kenneth Aschendorf (left) and Berndt Perl sent 70 one CEO’s pay loan applications before they landed a deal. IN THE MARKETS, PAGE 4 REPORT: BY DANIEL MASSEY ECONOMIC Costco--gasp!-- OUTLOOK the best prognosticator of the outlook for economic recovery in the welcomed in city may be the meter man—and his prediction is sobering. A credit Rego Park COVER STORY Small In the five years before the city economy went bust,as office towers filled firms get creative in hunt with workers and as consumers snapped up flat-screen TVs and electron- thaw? Don’t NEIGHBORHOOD, PAGE 5 for ways to grow P. 11 ic gadgets, peak electricity demand in the New York area climbed nearly GREG DAVID We avoided 9%, when adjusted for weather. Now, with commercial vacancy rates sky- the worst--but don’t relax high and the unemployment rate hovering near double digits, Consolidat- bank on it just yet P. 11 ed Edison of New York is downgrading its peak demand forecast—which BUSINESS LIVES is based largely on the economy.It sees 1.7% growth over the next five years. THE BRONX has no “Employment is the big driver of demand,” says Joe Oates, the power How one landlord’s reason to cheer as its giant’s vice president of energy management.“And we’re seeing continued rebound stalls P. 12 weakness well into 2010.” need to refinance TOURISTS in search of Despite increasing evidence that the national recession has ended and turns into odyssey good deals are crowding that the local downturn will be milder than expected, the New York City the city P. 12 economy will continue to lose jobs into the middle of this year. A Moody’s BY THERESA AGOVINO HIRING--yes, hiring--is Economy.com forecast shows city unemployment hovering above 10% un- happening if you know til the first quarter of 2011. where to look P. 13 Even after the hemorrhaging stops, growth will be difficult to achieve. when berndt perl began his ef- Continued strength in education and health care, along with renewed mo- forts to refinance the debt on 24 W. JOB LOSSES hit blacks GOTHAM GIGS mentum in the tourism industry, will provide support. But that won’t be 57th St. last January, he was opti- and Hispanics hardest, enough to spark economic expansion without help from two powerful forces. mistic despite the credit crisis. She delivers good news but they’re not the only “The timing and vigor of the city’s rebound will be determined largely After all,the 10-story property is all year long P. 21 groups affected P. 14 See TOUGH LOVE on Page 15 100% leased and sits on one of the G ANNE FISHER says city’s premier blocks. What’s more, communication is Mr. Perl and his partner in APF key ingredient P. 21 Properties, Kenneth Aschendorf, G had established an excellent track MOVERS & SHAKERS See CREDIT on Page 20 Open Center closes book on SoHo space P. 22 G GAEL GREENE gives Obao the taste test P. 23 NY zoos

INDEX exhibit

REAL ESTATE DEALS PLUS ______7

SMALL BUSINESS ______9 new plan

CLASSIFIEDS ______16 FOR THE RECORD ______18 Wildlife society to HOT JOBS ______21

EXECUTIVE MOVES ______21 make big changes

RÉSUMÉ REVIEW ______22

CORPORATE LADDER ______22 BY MIRIAM KREININ SOUCCAR

THE WEEK AHEAD ______23

getty images a stampede of new exhibits, state-of-the-art facilities and other major changes are coming to the 01

5 THE INSIDER city’s zoos. For the first time in its 114-year Crain’s reprises an annual tradition with history, the Wildlife Conservation ELECTRONIC EDITION its highly speculative guide to the year Society has created a comprehensive ahead in politics--and some New Year’s master plan for five New York City PAGE zoos, including the aquarium. The NEWSPAPER resolutions we’d like to see 8 See NY ZOOS’ on Page 20 71486 01068 0 20100104-NEWS--0002,0003-NAT-CCI-CN_-- 12/30/2009 4:00 PM Page 1

IN BRIEF SHARES IN AVIS BUDGET GROUP INC. ROSE Baubles add flash MORE THAN 1,800% LAST YEAR, MAKING THE Parsippany, N.J.-based car renter the best- performing stock in the New York area. Although revenue declined, Avis was able to to clothing lines turn a profit for the first time in five years by aggressively cutting costs.The stock rose from pennies a share to about $13.50 a share, “Fashion jewelry has almost the look meaning the stake held by CEO Ronald Designers jump on and feel of real, when one can’t afford or Nelson swung from being worth about $56,000 trinket bandwagon for justify buying the real thing,” says Marshal in early March to more than $20 million by Cohen, NPD’s chief analyst. year’s end. added revenue stream Costume jewelry revival CUSTOMERS WERE MORE SATISFIED WITH THE designer tory burch kicked off costume WEB SITES OF MANY MAJOR RETAILERS BY ADRIANNE PASQUARELLI jewelry’s revival a few years ago when she during the holiday season, according to a survey added it to her eponymous apparel collec- released last week by research firm ForeSee diamonds may be a girl’s best friend, but tion. Within the last couple of years, larg- Results.The annual study, which polled 10,000 a handful of small New York designers er retailers such as J.Crew and Banana Re- consumers on the customer service performance have discovered that faux diamonds are public have strengthened their bauble of the 40 largest e-commerce sellers, gave even friendlier. offerings, taking a cue from industry stal- NEW KID: Alicia Macy’s Inc. a score of 79 out of 100.That was a Instead of relying solely on apparel and warts like Monet and Carolee. Keys will launch a 12.9% jump over last year. Meanwhile, 1-800- footwear to carry them through 2010, At 10-year-old fashion house jewelry line (left) Flowers.com increased more than 8%, to a score New York fashion firms such as Mil- Milly, which is run by design- this year. of 78, and cosmetics and skin care company ly New York,Matt Bernson and Al- er Michelle Smith and her Avon Products Inc. saw a 5.2% rise, to a score of ice + Olivia have jumped on the husband Andy Oshrin, ex- 81. Gap Inc. jumped 10% on the scale, to a costume jewelry bandwagon in or- panding into jewelry seemed getty images score of 76. der to spur sales. Even Grammy like a logical next move. Next mon for a line to be distributed at Saks Award-winner Alicia Keys is dab- month, the company is Fifth Avenue and specialty store Scoop AS THE YEAR DREW TO A CLOSE, THE NUMBER bling in the trinket trade. launching its first two collec- this spring. OF STALLED CONSTRUCTION SITES ACROSS They have good reason. For the tions at upscale department “We started doing a lot of bejeweling on the five boroughs reached 523 as of Dec. 20, up holiday season between Black Fri- stores, including Nordstrom T-shirts, and it inspired us to do a jewelry 2% from just a week earlier, according to the day and Dec. 24, low- and high-end and Neiman Marcus,and the lines line,” says Ms. Bendet, explaining that the city’s Department of Buildings.The number of jewelry sales rose 5.6% over the same should garner about $750,000 in chunky necklaces and cuff bracelets will stalled sites has jumped 31% from July 21, when period last year, according to data from sales for the year, says Mr. Oshrin. sell well next to the label’s clothing in de- the DOB began tracking them across the city. MasterCard Advisors’ SpendingPulse “It is our first time,so we’re not try- partment stores. As credit continues to remain tight, it’s unclear tracker. This compares with a nearly 30% ing to be overly aggressive,” he says, when many of these projects will resume. Last drop during the 2008 season. adding that he hopes it will become a $5 Newcomer adds sparkle month, the New York Building Congress “Back in the day, there were women million division within four years. meanwhile, the reviving jewelry business reported that Brooklyn was the hardest hit, who would only wear the real deal, but The past year has not been easy. is vibrant enough to attract someone new home to 46% of the stalled sites. Neighborhoods now it’s really hip to wear costume Milly’s revenue fell about 20%, to the fashion world.Alicia Keys is launch- like Williamsburg experienced a huge run-up in jewelry,” says Paula Correri, acces- to an estimated $37 million, ing her first jewelry collection, called The housing prices before the collapse.
sories editor at fashion consulting compared with 2008 levels.But Barber’s Daughters, this year. The line is firm Tobe Report. business picked up in the silver,and the price range is affordable,with Costume jewelry is not without fourth quarter of 2009, and necklaces starting at $85. BY THE NUMBERS some tarnish. For the 12 months sales are expected to continue to While moving into the bauble realm ended in October—the most re- rise about 10% this year. Building can make sense for many fashion design- cent data available—sales slipped ers, they must ensure that their new divi- Weekly shift of the city’s economy on that success, Milly will open its 9%, to $5 billion, though that de- own e-commerce site in March and is sions share a common thread with the rest IT COULD HAVE BEEN WORSE: The city will cline was not nearly as pronounced as that currently looking for its first retail lo- of their label’s offerings. TriBeCa-based shed jobs into 2010, but bank bailouts and for fine jewelry.In that category,sales fell cation, scheduled to open in the fall. footwear designer Matt Bernson started a  federal stimulus should keep losses well below the more than 300,000 once feared. 26%, to $16.5 billion, according to re- Designer Stacey Bendet, who line of leather bracelets last spring, using search firm NPD Group Inc. founded brand Alice + Olivia in the same factory that designs the compa- Last year,the recession dented the pow- 2002, is taking advantage of a solid year to ny’s sandals. Mr. Bernson expects the col- -5.8% -25.9% 52.9 er of many pocketbooks, and the price of branch into jewelry. Business is flat from lection,which sells at Henri Bendel,Scoop DROP IN paying DECLINE IN NYC THE NATION’S gold skyrocketed more than 25% to near 2008 for the company, which has about and other stores, to generate $170,000 in passengers flying telecommunica- Consumer $1,100 an ounce. Now, fashion jewelry is $50 million in annual revenues, according sales in its first 12 months. through metro tions workers in Confidence Index looking better and better. With prices for to industry sources. While Ms. Bendet is “We knew we could work with leather area airports in November since in December, up October, vs. a peak employment from 50.6 in a designer item going for as little as $50 and designing her own line of Alice + Olivia since it’s the foundation of our brand,” he year earlier in August 2008 November. rarely breaking $300, shoppers can get fashion jewelry to sell in her five boutiques says. “Expanding your product offering is Source: Port Source: Eastern Source: The more bang for their buck and can even mix and Bergdorf Goodman, she is also part- exciting, but it only works if it’s cohesive Authority of NY & NJ Consolidated Conference Board faux with the fine gems they already own. nering with baubles expert Erickson Bea- with your brand image.”
OVER AND OUT Personal and business bankruptcies surged as economic hardships ranging from unemployment to the credit crunch hit New Yorkers hard. Dwindling advertising drives media

Facing dwindling advertising revenues, decades, they were mostly offered by NY Times, WSJ and the publishing industry has latched onto wineries.The real boom occurred after the others start wine clubs, the wine club movement. And now, up- Supreme Court ruling in 2005 that al- scale retailers such as Williams- lowed vintners to ship their tapping into fees, loyalty Sonoma and Sherry-Lehmann DRINK UP products to out-of-state con- *As of Dec. 29. Includes all Chapter 7 and Chapter 11 filings. are stepping in to the fray:In No- sumers. Source: U.S. Bankruptcy Court, Southern and Eastern districts of New York vember, the venerable wine store “It took off after the court de- BY LISA FICKENSCHER on Park Avenue and East 57th $27B cision,” says Bryan St. Amant, vol. xxvi, no. 1, january 4, 2010—Crain’s New York Business (issn Street partnered with best-sell- TOTAL wine chief executive of VinterActive, 8756-789x) is published weekly, except for combined issues June media companies are so depressed these ing author and wine expert Kevin which provides e-commerce 28/July 5, Aug. 30/Sept. 6, and Dec. 20/Dec. 27 by Crain Com- industry sales munications Inc., 711 Third Ave., New York, NY 10017. Periodicals days, they’ve been driven to drink. Over Zraly to launch a club. services to wineries. postage paid at New York, N.Y., and additional mailing offices. the past six months, The New York Times, “We saw the trend and didn’t in 2008 In 2004, for example, total Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI Zagat Survey, Food & Wine and USA To- want to be standing on the side- wine club sales by U.S. wineries 48207-2912. for subscriber service: Call (888) 909-9111.Fax day began selling cases of Bordeaux and lines, especially because this is were $361 million.By 2008,they (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. Chardonnay to their customers, using something we know how to do had jumped to $734 million, ac- (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. third-party vendors to fulfill the orders. very well,” says Chris Adams, chief execu- cording to VinterActive, which conducts All rights reserved. The Wall Street Journal launched a similar tive of Sherry-Lehmann. an annual survey of wineries.That is still a program, WSJwine, about a year ago. While wine clubs have been around for fraction of the industry’s total $27 billion

2 | Crain’s New York Business | January 4, 2010 20100104-NEWS--0002,0003-NAT-CCI-CN_-- 12/30/2009 2:09 PM Page 2

Fashioning an arts haven

mark Knight Frank, the landlord of 520 Garment district is Eighth Ave. He adds that good access to pub- lic transportation also draws tenants. “They becoming enclave can move downtown, but that is too far from the theaters.” for theatre, dance; When the Philadelphia-based Barysh- nikov Arts Center decided to open shop in space, rents are lure New York City in 2005,it bought the top three floors of the six-story building at 450 W. 37th St. to create performance space. Towards the BY AMANDA FUNG end of 2008, BAC expanded, snapping up the third floor for $4.5 million to create more the- late last month,the Pearl Theatre Compa- CENTRALLY LOCATED: ater space. Since then, it has spent between $8 ny packed up its files and bags of elaborate cos- Shira Beckerman million and $9 million renovating the 8,000- (below), Pearl Theatre’s tumes and moved to new 4,300-square-foot managing director, is square-foot space. Now dubbed the Jerome digs on West 38th Street.It’s the first time that excited about the Robbins Theater, it will open in February. the 25-year-old group, formerly spread out in company’s new home. “There weren’t a whole lot of us around two locations in the East Village and Lower when we moved in,” says Stanford Makishi, East Side, will have a single Manhattan head- BAC’s executive director. “Since then, there quarters with a dedicated rehearsal space—in have been a number of art galleries and non- the heart of the garment district. profits that have opened up.” “The neighborhood in general is becoming a great central location for arts groups,”says Shi- “Critical mass” ra Beckerman, managing director of the Pearl and they are still trooping in. Last month, Theatre, which is currently staging Bernard the Joyce Theater Foundation made the leap. Shaw’s giddy comedy Misalliance.“I am excited It took over the former home for the now de- about the neighbors we have in the area.” funct New Dance Group at 305 W. 38th St. The theater company is just the latest to There, it has crafted 11 studio spaces for re- make the neighborhood, once primarily hearsals, auditions and workshops just a known for fashion design and manufacturing, stone’s throw from several of its peers. a haven for arts and culture.In the midst of the “There is a critical mass of dance studios in recession, these groups, which come from all the area,” says Linda Shelton, executive direc- parts of Manhattan, are looking for cheaper tor of the Joyce Theater, adding that it’s help- space and proximity to one another as the area ful to be a quick walk away from friends and becomes a thriving arts enclave. colleagues. There are at least 150 arts-related groups in The arrival of the artsy set has been a wel-

the area, including 20 performing arts groups, larry ford come development in an area that has been a dozen artists and 16 art galleries,according to losing manufacturing jobs for decades. Al- the Fashion Center Business Improvement Affordable space is what brought Theatre to roughly 10,000 square feet at 520 Eighth though garment and fashion companies re- District. Among those who recently pitched a Development Fund, which operates the popu- Ave., which is home to a number of groups, in- main the dominant businesses in the area, the tent or extended their presence there are the lar TKTS Broadway and off-Broadway discount cluding Epic Repertory Theatre Company and arts groups have taken up some of the slack. Theatre Development Fund, the Baryshnikov Theatre Communications Group. Many note that the diversification is a plus for Arts Center and the Joyce Theater Foundation. “We moved because things got significant- the neighborhood, which has been changing Given the size needs ly more expensive [around Times Square],” in other ways. Proximity to Broadway, off-Broadway says Victoria Bailey, executive director of the Within the past year, for example, no less “rents in the garment district have al- of performance Theatre Development Fund.“And we needed than 17 hotels have opened in the garment ways been lower than just about anywhere else to be as close as we could to Times Square, so district. Last year, the area also got a luxury in Manhattan,” says Jonathan Denham, a groups, the area is the garment district made sense.” residential tower,the 569-apartment Emerald principal at real estate firm Denham Wolf, Roundabout Theatre Company kicked off Green, which is now looking for tenants.The who has helped at least half a dozen arts really the only choice the exodus to the area 10 years ago, when it arts groups together with Emerald Green and groups,including the Pearl Theatre,move into moved its administrative offices to West 39th the hotels make the neighborhood much more the neighborhood. Street from Broadway and West 45th Street. attractive to other businesses. Currently,rents are lower than they’ve been The loftlike buildings in the area are a natural “The performing arts groups are a great as- in years—averaging in the high $20s per fit for dancers and other performers. set,” says Jerry Scupp, deputy director of the square foot.That’s a big drop from a couple of ticket booth at Duffy Square, to the garment “For the size and space that theater compa- Fashion Center BID. “They complement the years ago when rents peaked in the low $40s district in mid-2008,after more than 30 years in nies need,the area is the only choice,”says Eric fashion industry and demonstrate the creative per square foot. Times Square. The nonprofit moved its office Gural, executive managing director of New- spirit and energy of the neighborhood.”
a companies to drink

in U.S. sales in 2008, according to research Global Wine pays these businesses to sell firm Mintel. the wine and ship it to customers. Though the industry is in growth “It’s an advertising and marketing con- mode, the new wine clubs have modest ex- tract,” says John Hinman of Hinman & pectations. Sherry-Lehmann invested just Carmichael, a law firm specializing in al- under $100,000 to set up its club—includ- coholic beverage law, who worked on the ing technology and marketing costs. Mr. deal.“Global Wine can take the profits and Adams expects to see a return on the in- bear all the expenses.” vestment within a year or two. The New York Times Co.,for example, lends its prestige to the club—and its sub- Licensed vendors behind the scenes stantial customer database. The paper’s only vendors licensed by their states are writers and editors, however, are not in- allowed to sell and ship alcohol,and for that volved in selecting or endorsing the wines, KEVIN ZRALY AND reason industry outsiders work with enti- says Alice Ting,director of brand develop- CHRIS ADAMS ties like Global Wine Co., a six-year-old ment for the paper. launched a wine Sausalito,Calif.,firm that handles the New From a consumer perspective, wine club for Sherry- York Times club in addition to those offered clubs are pricey, but customers are paying Lehmann

by Food & Wine and Williams-Sonoma. See MEDIA on Page 20 neff david

January 4, 2010 | Crain’s New York Business | 3 20100104-NEWS--0004-NAT-CCI-CN_-- 12/30/2009 2:12 PM Page 1

Sunset Park on the rise with planned development IN THE MARKETS by Aaron Elstein and Hilary Potkewitz

Warehouse to be a fire-sale price, we decided to wait story building. The lot next to the till the market improved and go out building is expected to be used for converted for with a new [request for propos- parking.The focus on manufactur- Cablevision’s Dolan spins als].” ing is in line with its neighbors manufacturing use Nevertheless, continued tight along the waterfront. Across from spinoff into a lucrative deal credit markets could prove chal- Federal Building #2 is the South BY AMANDA FUNG lenging for developers interested in Brooklyn Marine Terminal, which ablevision systems corp. is slated to spin off tackling the project. The original currently houses a maritime auto- Madison Square Garden sometime in the first quarter. brooklyn’s sunset park is set to plan to redevelop the long-vacant mobile receiving and processing Time will tell if the move pays off for shareholders, but see a big project come back to life site had been in the works since facility. C next year. The city’s Economic De- 2005. The new request differs from a filing with the Securities and Exchange Commission on velopment Corp. is seeking a new the earlier one in that it will call for Cautious optimism Christmas Eve gives a hint as to how lucrative the split could developer to revive an old ware- “i am pleased that the city is mov- be for Cablevision Chief Executive James Dolan (below). house built in 1916 for the U.S. ing forward once again with a plan According to his new employment agreement, Mr. Dolan Navy, dubbed Federal Building #2. for Federal Building #2 that prior- Last week, the city issued a re- itizes industrial development,” said will serve as MSG’s executive chairman through the end of quest for proposals from developers Rep. Jerrold Nadler in a statement. 2014 and collect a minimum base salary of $500,000, plus up interested in overhauling the 1.1 “I strongly support the creation of to $2 million in cash bonuses and $1.75 million in long-term million-square-foot warehouse near manufacturing jobs and economic cash or equity awards expected to be doled out annually. He the industrial waterfront area. The development in Sunset Park, par- site was supposed to be redeveloped ticularly along its re-emerging in- will get these sums, even though he make about $18.75 million annually by Time Equities Inc.,but the reces- dustrial waterfront.” will remain CEO of Cablevision. from serving as chairman of MSG sion forced the developer to aban- Federal Building #2 is owned by That position “will preclude him and CEO of Cablevision.That would don its deal with the city in early MAKEOVER: Bids sought on Federal the federal government and admin- from devoting a substantial portion represent a 35% increase over his 2009. Time Equities had grand Building #2. istered by the General Services Ad- of his time and attention to MSG’s total compensation in 2008, plans to turn the storehouse and its ministration, which declared the affairs,” the filing says. when he held the same respon- adjacent 100,000-square-foot lot building surplus property in 2000. As head of Cablevi- sibilities,but MSG and Cable- into a $205 million complex for re- more manufacturing or wholesale The project winner will purchase sion, Mr. Dolan will col- vision weren’t separate. He tail, commercial and light-industri- distribution use and less retail, Mr. the property from the federal gov- lect at least $1.5 million would also get paid more al use. Pinsky says. ernment through the city. in annual base salary, than the CEOs of Time The city’s earlier plan was criti- “In this environment, you have plus up to $6 million in Warner, Viacom and A revised plan cized for providing too much com- to be cautiously optimistic,” says cash bonuses and up to CBS collected in 2008. “like a lot of other projects mercial and retail space—uses that Mr. Pinsky. “We’ve heard from a $7 million in long-term Cablevision’s stock across the city, this one was a vic- have become less attractive in the number of parties who have cash or equity awards annu- price rose about 55% tim of the financial downturn,” current economic climate. The expressed interest. We think that ally. He’s to remain CEO of in 2009 as net income says Seth Pinsky, president of the new request calls for a smaller this is a unique opportunity, one Cablevision, which his fami- more than doubled, to EDC. “Rather than work with the amount of office and retail space that we hope developers will seize ly controls, through 2014. $207 million, through federal government to find a user at on the lower levels of the eight- upon.”
In all,Mr.Dolan stands to the first nine months. bloomberg news What’s between the lines one (hopefully) enduring take- machine into overdrive,” says Joshua New York Residence Inc. away from this recession’s round of in- Brown, the man behind the blog vestment scandals is a wary investor TheReformedBroker.com. A Man- class unwilling to be a passive partic- hattan-based financial adviser, Mr. ipant in its investment choices. Its Brown points out that 116 different clarion call? Read between the lines. exchange-traded funds were Congratulates All this clamoring for “more launched in 2009, each with its own transparency” has led investment niche. He’s dedicated himself to de- firms to come up with ever-more- coding their prospectuses. “It’s got- Chief Financial Officer and Real Estate Broker detailed descriptions of their invest- ten to the point where I can read the ment strategies and goals, in the name of the fund,and I already know name of making it easier for clients what I can expect to find if I dig in.” to find a fund that aligns with their After more than a decade of care- Mr. Richard E. Pino investment objectives. ful study, he has come up with the “They’ve turned the marketing following glossary: On his award from St. Christopher’s Inc. FUND BROCHURE SAYS… WHAT IT REALLY MEANS… for five years of service and dedication as Aggressive growth A collection of Chinese online gaming stocks and Board Member and Chairman of the Audit Committee New Jersey biotech startups Balanced We will underperform both the stock and bond markets. You’re welcome. Clean/green A basket of government-subsidized experiments and some shares of GE Diversified We’ll basically buy the Index and go golfing Endeavor/opportunities We will throw darts Enhanced Uses exotic derivatives you’ve never heard of Global growth We’ll chase stocks in whichever country is most overheated right now Quantitative Manager will take credit for up years, blame computers for down years Ultra Leveraged to the hilt

www.newyorkresidence.com THE CHARGE that Nasdaq is going to take for agreeing to exchange its 33% stake in the upstart Nasdaq Dubai stock New York Berlin Dublin Seoul Shanghai Tel Aviv $81M market for a 1% share in the more established Dubai Financial Market. The move is expected to reduce Nasdaq’s fourth-quarter earnings by 60%, according to FBR Capital Markets.

4 | Crain’s New York Business | January 4, 2010 20100104-NEWS--0005-NAT-CCI-CN_-- 12/29/2009 2:45 PM Page 1

NEIGHBORHOOD JOURNAL Costco—gasp—welcomed in Rego Park

Reports. Among those is the Met Foods projects and condos,” he says, ex- Little fuss made “It’s hard to generate as much supermarket on 63rd Road, a block plaining that apartments don’t have in community that concern among labor people about a away from the mall. The 8,000- pantries or storage closets big Costco,” says Mr. Lipsky. square-foot store employs about 27 enough for the kind of bulk items strongly opposed Nevertheless, he predicts that people and has its own butcher de- sold at Costco. Wal-Mart in 2005 the bulk retailer will hurt overall job partment and deli. Nonetheless, he fears that cus- BIG BOX: The Rego Center mall in Rego Park, density in the neighborhood. A tomers will be enamored with the Queens, is slated to open in February. store of that size may hire about 250 Bad match for the neighborhood? newness of the Costco for the first BY HILARY POTKEWITZ or so employees,he points out,but it met food manager Ray Lopez is few months, and during that time will have just one deli department just as adamant as he was four years his sales will suffer. largely Eastern European commu- ostco recently signed and one meat department—that ago that “a store like that” doesn’t “But they’ll come back, I think,” nity—from all sorts of pickled up to open one of its will be competing with many local belong in his neighborhood. says Mr.Lopez,pointing out that he things to Russian candies to Polish vast warehouse-club merchants and their staffs. “Look around, it’s all housing stocks specialty items favored by the beer and kielbasa.
stores in Rego Park, Queens, in the same Cspot scouted four years ago by Wal- Mart for its first store in the city.Bit- ter opposition from community businesses and local leaders suc- ceeded back then in quashing Wal- Mart’s advances. In contrast, Costco’s announce- In this tough economic climate, ment that it will open in August has generated only a smattering of com- your three best friends are your lawyer, plaints from local merchants. “People are actually excited about a Costco,” says Frank Gullus- your accountant and your banker. cio, district manager of Queens Community Board 6, home of the new Rego Center mall that Costco will anchor. Mr. Gulluscio says that though he’s heard that some merchants along 63rd Road are unhappy about the Costco, none have approached the community board for help.“Our biggest concern is about the traffic,” he says. The high-profile battles that have marked the arrival of big-box retailers in other areas of the city may be conspicuously absent in Rego Park, but not everyone thinks that’s the right response. “There’s less of a blowback against Costco, but the store will have the same effect as Wal-Mart on local food stores and the communi- ty,”says Richard Lipsky, head of the Neighborhood Retail Alliance, a group that advocates on behalf of neighborhood grocers and that op- posed Wal-Mart. Back in 2005, neighborhood stores, politicians and labor leaders joined forces when word got out that the mall’s developer, Vornado Real- ty Trust, was talking to the Arkansas-based retail giant about possibly opening its first location in the five boroughs. Say hello to Kermit Dyke. A lesser evil, but still a threat to jobs city council members including Helen Sears of Rego Park threat- ened to torpedo the entire develop- Since 1927, Valley National Bank has provided personalized service and ment if Wal-Mart were anywhere commercial lending in New Jersey and now has expanded into New York. near the negotiating table. After Wal-Mart dropped out, Home De- When it comes to business, we mean business, and as your partner, we promise pot stepped in with a plan to occupy to develop an effective banking strategy customized for you. From approving a the 138,000-foot space but backed line of credit for working capital to providing a commercial mortgage, Valley’s KERMIT DYKE out a little over a year ago as part of team of professionals will work with you every step of the way. FIRST SENIOR VICE PRESIDENT a companywide recession-driven retrenchment. If this is the kind of relationship you are looking for in a bank, then say hello to a OFFICE: (212) 973-6666 Mr. Lipsky chalks up the nonre- better way of banking and hello to Valley National Bank. CELL: (917) 208-9839 sponse to Costco to the lack of [email protected] opposition from labor. In stark con- trast with Wal-Mart, the Seattle- www.valleynationalbank.com based wholesaler is known for its For straight forward solutions give me a call. good labor practices. It offers start-

ing cashiers’salaries of about $10 per ©2009 Valley National Bank. Member FDIC. Equal Opportunity Lender. VCS-3386 hour, and an average hourly pay rate of $17.25, according to Consumer Kermit_Ad_8.125x10.indd 1 12/15/09 7:52:37 AM January 4, 2010 | Crain’s New York Business | 5 20100104-NEWS--0006-NAT-CCI-CN_-- 12/30/2009 2:12 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

Syfy rebranding scores with viewers xecutives at syfy are claiming victory.The July rebranding of the Sci Fi Channel, widely denounced by bloggers, seems to have worked with viewers. From July Ethrough December, the NBC Universal cable network—soon to be owned by Comcast Corp.—has scored some of its best numbers ever. Ratings for Stargate Universe rose 22% among total viewers and 33% among the advertiser-friendly category of 18- to 49-year- olds—making it the most-watched Stargate since 2005. New show Warehouse 13, starring Joanne Kelly and Eddie McClintock (right), drew 3.9 million viewers, a record for an original series on the channel. In the fourth quarter, Syfy became the seventh-ranked ad-supported cable network among 18- to 49-year-olds, up from 10th. And it improved its standings with female viewers and affluent 18- to 49-year-olds, which were both goals of the rebranding. Download all of the information in As for those nasty bloggers who wouldn’t stop making fun of the name, that’s water the newly published Book of Lists under the bridge. “Every network should as an Excel file by purchasing have the problem of viewers who feel this proprietary,” says a spokesman.

CRAIN’S the building. to offer muffins and croissants by Cursed Woods, Late last year, SecureWatch24 March. At 280 to 330 calories, Lucky Tiger hired John Colgan, a retired NYPD Healthy Me bagels are about the 2010 veteran and the former same as regular ones, but they tiger woods’ holiday season was commanding officer of the have added benefits. BOOK OF LISTS rocked by scandal, but his loss has department’s counterterrorism “Instead of giving you 60 been a major gain for Lucky Tiger, bureau. His job is to persuade grams of carbs, we’re giving you ONLINE a small business in Valhalla, hotels, hospitals and schools to be 35 grams of carbs and substituting N.Y., that sells men’s better prepared for danger. the rest with fiber,” Mr. Belenitsky shaving cream and other “The decision to move the says. Good news for New Year’s Crain’s Book of Lists digital version contains the grooming products.The terrorism trials to New York resolutions. 74-year-old firm’s City,” he says, has made the city ranking of New York City companies across all online sales have spiked vulnerable. “There is a nuance industries – all lists published in print and those in recent weeks as in the air that it’s time to make Rangers’ fans that were published online only, including Top random Web surfers a statement.The wheels have like these odds discovered already begun to turn.” Management Consultants. getluckytiger.com. SecureWatch24 is also the new york rangers, whose “This time of year, working with two other large mediocre play this season may be $is one-time download puts the information we’re usually doing 100 hotels in the city, according to trying the patience of many fans, sales a week. It’s gone Mr. Colgan, though he hope a chance to watch a game— and contacts from Crain’s 2010 Book of Lists at up to over 300 sales a declined to identify them. and play the slot machines—in your fingertips. Use this unique resource to get week,” says partner Fred Rosen.He the presence of former Ranger new business leads for 2009’s top ranked compa- bought the business, which clocks greats like Adam Graves and Ron about $1 million in annual sales, Bagel with a Duguay will cheer up their faithful nies and to direct your outreach to the largest and in the late 1990s. “Every time schmeer of flax? followers. most successful companies across New York’s another woman came out of For $125 a person, fans can woodwork, we’d see a jump.” with almost double the attend a Rangers Viewing Party at business sectors. While he wishes no ill to the calories of a plain doughnut, the Foxwoods Resort Casino on famous golfer, he says he hopes his bagels are not high on anyone’s Jan. 21.The price includes a hotel To download now, go to crainsnewyork.com/lists. own good fortune continues. “This healthy eating list. But Max room, admission to the event, was a positive ending to a sluggish Belenitsky, a Goldman Sachs vice dinner and a $20 casino coupon. year.” president turned baker, is aiming Rangers’ fans seem to have Reach out to New York’s top to change that. Working with a fond memories of last year’s party, nutritionist and doctor, he has which MSG Senior Vice companies today by purchasing Code orange launched a brand of high-fiber President Greg Elliott says drew at NYC’s hotels and flaxseed bagels— about 400 people. “It was like a Crain’s Book of Lists online. appropriately named Healthy Me. wedding,” waxed one attendee at guests who stay at the W Times The doughy rounds are only Blueshirtsunited.com. “They had Square Hotel may be among the available at the Upper East Side’s four huge TVs in a huge banquet most watched visitors in the Avi & David’s deli for now, but hall. … You had full access to [the city—if one counts security Mr. Belenitsky is hoping former stars], they signed cameras.The property hired to expand to Whole everything you gave them. Lots SecureWatch24 to install cameras Foods Market of fun.” on all of its guest floors and to and A&P.Later provide emergency training to its this month, he’ll Contributors: Aaron Elstein, staff. Most hotels only use add a gluten-free Lisa Fickenscher, Matthew Flamm, cameras in the lobby and outside variety and expects Adrianne Pasquarelli

6 | Crain’s New York Business | January 4, 2010 nb01p07.qxp 12/29/2009 5:08 PM Page 1

REAL ESTATE DEALS PLUS

2010 OUTLOOK Condos & co-ops: credit remains tight,” says Jonathan Miller, chief executive of appraisal DEALS no glory days firm Miller Samuel Inc. “You still need a job to get a mortgage.” GOLDMAN STRIKES GOLD Commercial rents confidence in the city’s residential —amanda fung Goldman Sachs reached deals to real estate market is expected to re- sublease 39% of the 600,000 turn this year, but don’t expect a re- Retailers hot for square feet it has been marketing to bounce back turn to the glory days. for nearly two years at 77 Water Experts predict sale prices to coveted areas St. As of the third quarter, the bottom out this year after plummet- space was the largest sublease ommercial rents will continue to slip and ing 25% in 2009.With prices down, in 2010,brokers expect strong retail- block on the market in the country, there are growing signs of buyers ing areas such as Times Square and vacancy rates will move higher early this year, according to Jones Lang LaSalle. taking advantage of the bargains. Broadway in SoHo to remain so. The bank signed four deals that but the moves will be nowhere near as dramatic “The winter months will be ac- They also expect the gilded stretch of total 235,000 square feet, says a tive, not record-setting, but relative Madison Avenue on the Upper East as they were in 2009, brokers predict. They expect company spokesman. Sources say the market to rebound during the second half, to 15 months Side to rebound, now that ago, expect it to rents there have fallen the asking rents were about $35 a along with the economy.The vacancy rate should peak at be good,” says from $1,800 a square foot square foot and the bank was of- C fering generous building allow- roughly 14% by midyear, up from 11% in the third quarter of Shaun Osher, to near $800 a square foot. ances. Goldman has sublease 2009, according to Ken McCarthy, chief executive One property to watch of brokerage will be the Empire State space because it is moving into its managing director of the New York CORE. Building, where 60,000 new headquarters at 200 West St. area at Cushman & Wakefield Inc. Sales of square feet on the ground, AT&T leased 100,000 square He predicts that by year’s end, the condominium basement and second lev- feet over four full floors at 77 Water, while law firm Lewis Brisbois vacancy rate will return to 11%. and co-op units A luxury condo apartment. els will open up in a few priced under $1 months. “That space will Bisgaard & Smith inked a deal for Asking rents fell 22%, to $57 a square million were the first to revive, back see a lot of interest,”says CB Richard 75,000 square feet covering three foot, in the year ended Sept. 30, in the summer. Brokers think the still- Ellis broker Andrew Goldberg. full floors. UnitedHealthcare will 2008, but Mr. McCarthy says they troubled $5 million-plus market will pick up On the tenant front, expect to see be moving into 37,500 square feet could fall another 5% in the first half in 2010.Just last month,Ilan Bracha, more activity from discount apparel com- on two floors, and OneBeacon one of Prudential Douglas Elliman’s panies, like Kohl’s, which is in talks Insurance Group leased one before turning up. top-producing brokers, sold seven for 1775 Broadway, and smaller lo- 25,000-square-foot floor. Only two new buildings will open apartments in that price range. cal retailers seizing opportunities on Cushman & Wakefield Inc. this year—11 Times Square (left) The risks are still huge, particu- either the Upper East or the Upper represented Goldman Sachs and and 510 Madison Ave.—and brokers larly if the recent improvements in West Side, now that rents in those AT&T, and CB Richard Ellis Inc. ne- the credit markets fail to continue. areas have dropped as much as 50%, gotiated on behalf of the law firm. will be keenly watching both. “Unemployment is still double to around $200 a square foot. —theresa agovino the rate it was a few years ago, and —adrianne pasquarelli



MIchael Wolff There’s no denying that operating a company in today’s environment is challenging, from managing Principal-in-Charge, risk and dealing with increased economic pressure to complying with ever-stringent regulatory bodies. Marketing & Communications 212.891.4065 [email protected] At Eisner, we look at challenges as opportunities. Our clients, from start-ups to large, publicly traded companies, benefit from our experience and expertise in accounting, audit, tax, and comprehensive www.eisnerllp.com advisory services. We use our business acumen, hard work, and New York street smarts to help our clients find creative solutions as they strive to achieve their goals.

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January 4, 2010 | Crain’s New York Business | 7 20100104-NEWS--0008-NAT-CCI-CN_-- 12/29/2009 5:00 PM Page 1

NEW YEAR’S RESOLUTIONS THE INSIDER WE’D LIKE TO SEE

by Erik Engquist
MAYOR MICHAEL BLOOMBERG: I resolve to lay off union workers if their representatives don’t renegotiate the 4% raises I gave them before I realized the economy was tanking. I will comment objectively on student test scores and shut down the A highly speculative guide to 2010 spin machine, since I have already won an extension of mayoral control of schools and a third term. I will BACKGROUND OUTCOME meet with advocates and elected officials who criticize me, so I don’t spend my final term in an echo chamber. I will NEW YORK NEW YORK RACE RACE RACE FOR stop speaking Spanish in public until my pronunciation improves. I STATE’S CITY’S FOR FOR U.S. STATE will list my weekend trips to Bermuda on my public schedule, so New BUDGET BUDGET GOVERNOR SENATE COMPTROLLER Yorkers know where their mayor is.

The Legislature Spending for the State Attorney The Republicans Democratic  CITY COUNCIL SPEAKER CHRISTINE QUINN: I resolve to and the governor fiscal year begin- General Andrew covet the seat of incumbent declare whether I intend to run for mayor in 2013, must close a structur- ning July 1, 2010, is Cuomo must decide Kirsten Gillibrand, who Thomas DiNapoli, because everything I do will be seen in that context al deficit (or, in plain set to exceed rev- whether to run against is seen as vulnerable after two years in anyway. I will publicly call out council members who English, stop spending enues by about $4 bil- Gov. Paterson, who in her first statewide office, is still a “huh?” are too lazy to do their jobs. I will end council billions more than the lion, more than 6% of insists he’ll seek re- election. But GOP big- to most voters. His is stipends and pork. I will call a moratorium on street state takes in) by April the total budget. Yet election. The Republi- gie Rudy Giuliani has the most winnable renamings and encourage grieving families to 1, the start of the new Mayor Michael cans must come up ruled out a 2010 run, statewide seat for instead dedicate park trees and benches for their fiscal year. Or they can Bloomberg and most with a candidate. and George Pataki Republicans. deceased loved ones. again postpone the of the City Council At a press shows little interest in Republican
GOV. DAVID PATERSON: inevitable with borrow- don’t want to raise conference in running. John Faso, who I resolve to abandon the ing and accounting taxes again. southeast Queens, Mr. Ms. Gillibrand’s ran for governor in notion that I am avoiding lame-duck status by professing to be running for re-election. gimmicks. The council rules Cuomo, flanked by poll numbers 2006, downshifts to Having left the race, I will convince the Gov. David out sales and African-American sup- slowly improve, then the comptroller’s race Legislature that if we don’t fix the government’s Paterson propos- property tax hikes, but porters, announces jump as she unleash- and peels off enough fiscal and ethical problems in 2010 together, es massive cuts, spe- members backed by his candidacy as his es an eight-figure tele- swing voters to nip Mr. Andrew Cuomo will do it in 2011 and take the cial interests cry the pro-union Working campaign fund swells vision advertising blitz DiNapoli. credit himself. catastrophe, and the Families Party to $20 million. Mr. and campaigns relent- Legislature and the demand a new Paterson runs for Con- lessly. The GOP settles  REP. CHARLES RANGEL: I resolve to explain fully how governor pass an irre- income tax on the gress in Harlem, as his on unknown Larch- I leased several rent-stabilized apartments, forgot to sponsible budget, con- wealthy. The mayor neighbor Rep. Charles mont Mayor Liz Feld disclose half a million dollars in assets, failed to gratulating themselves opposes it; the state Rangel decides to as its candidate, but declare rental income and stored my unregistered for insignificant Senate won’t author- retire. Mr. Cuomo she cannot raise Cadillac in a congressional garage. And I will reforms. Three months ize it. Layoffs ensue. thumps former Rep. enough money to beat decline to run for re-election, so I can spend the later, the state is in Rick Lazio, who gives Ms. Gillibrand. remainder of my term being celebrated rather than the red again. up on politics. attacked.

WILLIAM THOMPSON: I resolve to ask myself: If I could not raise any money in three years as front- runner for mayor, what makes me think I can raise Finance and Global Sustainability: any as a long-shot candidate for statewide office?  SEN. CHARLES SCHUMER: I resolve to seek therapy for my recurring As CFO, Are You Ready? nightmare, the one where I discover there’s a 63rd county in New York that I’ve The CFO Alliance invites CFOs and accounting and finance been failing to visit every year, and I can’t figure out executives to dissect, debate and discuss Global Sustainability how to get there. during this exclusive peer-to-peer Breakfast Roundtable.
REP. ANTHONY WEINER: I resolve to • Global sustainability has the potential to be the most hold a reunion party to thank my former staff significant political/social issue of the 21st century. members for putting up with me. I will be sure to book a large venue. I will ask my mentor • Global sustainability is a huge business problem . . . Chuck Schumer to help clear the 2013 mayoral and a huge business opportunity. field of rival Democrats, the way he did for Sen. • There are three ways you, as CFO, and your organization Kirsten Gillibrand, so I can run unopposed. THE CFO ALLIANCE-NEW YORK can benefit from the opportunities of global sustainability.

IS PARTNERED BY

 CITY COMPTROLLER JOHN LIU: I resolve to declare my Tuesday, January 12 V 8:00 am - 10:00 am (2 CPE Credits) candidacy for mayor in 2013 well before Chuck Schumer has had a chance to force One W. 54th Street, New York, NY me out of the race.

Facilitated by: Professor Frank M. Werner
PUBLIC ADVOCATE BILL DE BLASIO: Fordham University, School of Business I resolve to introduce the Campaign Literature Overkill Act, limiting Register Today for the Next candidates to five mailings with CFO Alliance-NYC Breakfast Roundtable family photographs per election. Send Full Name, Title and Company to: [email protected]  MARK GREEN: I resolve to petition the state Legislature to pass the Mark Green Self-Protection Act, forbidding me from running for public office again. photos: buck ennis, newscom, news ny daily

For daily political and government news, subscribe to [TheCFOAlliance.org] CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | January 4, 2010 20100104-NEWS--0009-NAT-CCI-CN_-- 12/29/2009 2:46 PM Page 1

SMALL BUSINESS

tation is now being pushed onto lo- Startup syncs up patients with docs cal businesses” says Ryan Donahue, a former PayPal executive who launched San Mateo, Calif.-based among Manhattan’s medical shows and estimates that 35% of vis- BookFresh in 2006. BookFresh lets ZocDoc lets NYers professionals. its to the emergency room—a des- individuals make appointments for schedule last-minute “I went through two pairs perate option for patients unable to everything from haircuts to electri- of shoes in three months,” find a last-minute appointment— cians online. med appointments. says Mr. Kharraz. could be handled in doctors’ offices. As its second full year of opera- Well, imagine that The idea gained some trac- tion draws to a close, ZocDoc has tion, and the duo officially Torrid growth plenty on its plate. The company launched ZocDoc.com in Sep- these days, ZocDoc is in expansion just launched in Washington—the BY KIRA BINDRIM tember 2007, with an initial mode. In March, the company city was chosen by online vote—and roster that included only Man- moved its offices from TriBeCa to a plans to roll out in other places hen cyrus Mas- GROWING ROSTER: Web site features specialists, too. hattan dentists.Since then,the bigger space downtown.Mr.Kharraz shortly. ZocDoc’s engineers are also soumi ruptured site has expanded to include says staffers teased him for furnish- developing a mobile application so an eardrum dur- primary-care physicians as ing the new location with dozens one could,for instance,crack a tooth ing a flight to ings into a business, founding Zoc- well as 13 types of specialists—pedi- more desks and chairs than there at dinner and schedule an emer- New York, it took Doc Inc. in April 2007. Through atricians and psychiatrists among were employees;now ZocDoc is run- gency dental appointment from an himW four days to find a doctor with ZocDoc.com, New Yorkers can them—each of whom can also down- ning out of open seats. The compa- iPhone, all without leaving the an opening. Lunching a week later book appointments, view ratings load a ZocDoc appointment widget ny’s employee roster has doubled in restaurant. with Oliver Kharraz, then a col- and write reviews of local medical to display on their practice’s Web site. size, to 30 people, in the past two Having pushed its product with league at consulting firm McKinsey practitioners. By working with doc- The company has signed up roughly months. medical professionals, ZocDoc is & Co., Mr. Massoumi wondered tors’ own practice-management 10% of the city’s doctors in each field, “We can’t hire people fast also busy creating a community for aloud why a last-minute doctor’s ap- software, the site updates immedi- and has raised more than $3 million enough,” he says. its happy customers. pointment was harder to come by ately as last-minute appointments in venture capital funding from Messrs. Kharraz and Massoumi “I get more positive feedback than, say, same-day plane tickets to become available. names that include Salesforce.com aren’t the first to consider booking from patients in one day today than Paris. Eardrum emergencies notwith- founder Marc Benioff and doctors appointments online. Xoo- I got in my entire medical career,” “It seemed incredible,” Mr. standing, selling people on ZocDoc Amazon.com founder Jeff Bezos. va, the Santa Monica, Calif.-based says Mr. Kharraz. “I may not have Kharraz recalls, “because we both wasn’t easy. Few believed that doc- As the issue of affordable and ef- startup that ran DoctorsDirect.com, been the best doctor, but I don’t knew from our experience with tors would pay to appear on the site, ficient health care draws national at- shut down last August after running think I was that bad.”
McKinsey’s health care practice that and critics doubted that patients tention, it should not be surprising out of cash, and companies like New York has the highest density in would trust a third party for medical that ZocDoc’s premise is being no- WebMD and Doctor.com also offer To sign up for Crain’s the world of doctors per capita.” appointments. ticed by tech bigwigs. Mr. Kharraz, appointment services. twice-weekly SMALL BUSINESS A few months later, Messrs. But the partners weren’t swayed; himself a former practicing physi- “Consumers have absolutely NEWSLETTER, go to Kharraz and Massoumi left Mc- they spent their first months in busi- cian, says some 20% of medical ap- grown accustomed to being able to www.crainsnewyork.com/smallbiz Kinsey to turn their lunchtime mus- ness as salesmen,going door to door pointments are cancellations or no- book things online, and that expec-

Team McGladrey Golfer Natalie Gulbis and her caddie, Greg Sheridan.

January 4, 2010 | Crain’s New York Business | 9 20100104-NEWS--0010-NAT-CCI-CN_-- 12/30/2009 2:25 PM Page 1

VIEWPOINT An unmistakable political shift editor in chief Rance Crain publisher, vp Jill R. Kaplan he cheers that filled the gallery when in the council? EDITORIAL the City Council decisively voted down a The answer lies in the ability of groups like Good Jobs editor|editor of the editorial board Xana Antunes plan to redevelop the Kingsbridge Armory New York and the Working Families Party, with their managing editor Glenn Coleman in the Bronx have now faded. reassuring names, to dominate public discussion. deputy managing editors Valerie Block, Erik Ipsen The issue that killed the $310 million While both organizations are essentially creations of a contributing editor development plan so ardently supported slice of the labor movement, they appear as independent Elizabeth MacBride columnists Greg David, Alair Townsend by the Bloomberg administration—a activist groups, arguing in favor of poor and hard-pressed senior reporters Theresa Agovino, guarantee of so-called living-wage jobs—has not. What New Yorkers.They command the high ground when Aaron Elstein, Erik Engquist, Lisa Fickenscher, Matthew Flamm, Miriam Kreinin Souccar happens next may be crucial to the city’s future, especially to arrayed against specific developers, obvious special- reporters Barbara Benson, Amanda Fung, T Daniel Massey, Adrianne Pasquarelli, the economically weakest areas of New York. interest groups like the Real Estate Board of New York, Hilary Potkewitz A month after the vote, virtually all those involved are or the administration itself. art director Steven Krupinski deputy art directors Carolyn McClain, realizing there are The Kingsbridge Daniel Mednick only losers here. fiasco will be repeated staff photographer Buck Ennis Someone has to copy desk chief Wendy Zuckerman Bronx Borough unless business and copy editor Thaddeus Rutkowski President Ruben civic leaders form research editor Denise Southwood make the case assistant research editor Maia Blume Diaz Jr., the most an organization editorial/research intern Selena Shen ardent supporter of that retail jobs to counter the efforts www.crainsnewyork.com web editor Brian Tracey prevailing wage, no of these groups. senior producer Elisabeth Butler Cordova longer blithely are good jobs Someone has to producer Kira Bindrim boasts that he will make the case that EDITORIAL AND ADVERTISING OFFICES find a new developer retail jobs are good 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 for the armory. jobs and that national advertising: 212.210.0259 Cable craincom nyk Business groups, flickr retailers and the low DOMINATING DISCUSSION: The Working Families Party. Fax 212.210.0499 which supported prices they bring Entire contents ©copyright 2010 Crain designated developer Communications Inc. All rights reserved. to a neighborhood ®CityBusiness is a registered trademark of MCP The Related help the poorest Inc., used under license agreement. Companies, have been shown to be weak politically. residents. Someone also has to make clear that, despite TO SUBSCRIBE: The Bloomberg administration is now stymied, since it their alluring names, Good Jobs New York and Working Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. can no longer wheel and deal its way on rezoning and Families are union organizations funded to represent their www.crainsnewyork.com

development issues without sacrificing its fundamental interests, not those of the needy residents of places like ADVERTISING AND MARKETING principles. the Bronx. advertising director Trish Henry The question is: how could a proposal as controversial The drift in New York City politics is unmistakable.The real estate sales manager Cornelius P. Gore senior account managers and flawed as living wage win overwhelming support question is who will do something about it. Irene Irvill, Courtney McCombs, William E. Squitieri account executives Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online CRAIN’S ONLINE POLL COMMENTS Lulé Haznedari newsletter product manager Alexis Barney HAS THE LATEST TERROR credit Todd J. Masura 313.446.6097 INCIDENT MADE YOU marketing director Amy Crossman Roundabout’s direction circulation manager Andrea Richardson assistant circulation manager RETHINK AIR TRAVEL? Rosalie Ford ACTING UP Date of poll: Dec. 28 general manager, interactive 166 votes re: “a tough act for biggest nonprofit Marc Minardo web developer, interactive theatre” (Crain’s, Dec. 14): Chris O’Donnell Roundabout Theatre Company’s 2009 Yes. I’m only Yes. I’m going to carry season is far from a “disappointment.”Two of NEW YORK PRODUCTION going to fly now if fewer bags and allot our Broadway productions, Bye Bye Birdie and production and pre-press director it’s absolutely more time for getting Michael Corsi necessary. through security. Wishful Drinking, and our off-Broadway show,

The Understudy, exceeded our sales goals and advertising production manager

extended their scheduled performance dates. Suzanne Fleischman Wies

. . Our premiere of Adam Gwon’s touching PUBLISHED BY CRAIN COMMUNICATIONS INC. musical, Ordinary Days, in our Black Box 25% 16% chairman Keith E. Crain Theatre, was a great success and continued our president Rance Crain commitment to producing emerging writers as BYE BYE BIRDIE exceeded sales goals and was extended. secretary Merrilee Crain part of the Roundabout Underground treasurer Mary Kay Crain initiative. We completed the 2008-09 season executive vp, operations William Morrow senior vp, group publisher Gloria Scoby with a balanced budget, thanks to the hard includes staging our nine-play season, group vp, technology, circulation, 59% work of the staff and successes on our stages. continuing Roundabout Underground and manufacturing Robert C. Adams

. We also opened the newest theater on producing our arts education program in the vice president/production & Broadway, the Henry Miller Theatre, which is New York City public schools. manufacturing David Kamis an extraordinary achievement—particularly in Using the Henry Miller Theatre as a means chief information officer Paul Dalpiaz corporate circulation/audience No. The threat of terrorism has always these challenging times. Roundabout was able of generating income was always a part of our development director Kathy Henry to acquire this theater thanks to careful plan to generate a return on our investment— been there, and this latest incident will G.D. Crain Jr. reinforce the need for vigilance. economic planning. It is an investment in our founder (1885-1973) not an admission of failure, as implied in your chairman Mrs. G.D. Crain Jr. (1911-1996) future and the city’s future. Not only can we use article. For this week’s questions: Go to it to stage our own productions, we also can michael t. cohen www.crainsnewyork.com/poll to have your say. rent it to third parties and generate funding Member, board of directors toward our not-for-profit mission, which Roundabout Theatre Company

10 | Crain’s New York Business | January 4, 2010 20100104-NEWS--0011-NAT-CCI-CN_-- 12/29/2009 2:47 PM Page 1

ECONOMIC OUTLOOK INSIDE NYC’s biggest growth industry? You might be surprised PAGE 12 The hiring picture Bright spots PAGE 13 Joblessness A look at who’s getting hit harder than others PAGE 14 Surviving small firms eye growth Cutting costs pays off, but lack of credit is still a huge concern

BY DANIEL MACHT manhattan-based chocolatier Sarah Endline jokes that business doubled this year because “people are needing a treat.” But playing to New Yorkers’collective sweet tooth during the most bitter recession in recent memory is not the sole reason for her success. In 2008, Ms. Endline diversified Sweetriot Inc.’s line of products,tapped into the airline business and fought hard to retain existing customers. A year of cost cutting and other recession-fighting strategies are beginning to pay off for many of New York’s small businesses. Given official assurances that the downturn is over, or at least has bottomed out, these of industries,including a rebound in entrepreneurs are hopeful that bet- auto sales and strong hotel occupan- ter times are ahead. Yet they remain cy. The New York Fed’s Empire worried, especially about the lack of State Manufacturing Survey also credit from banks and other sources. showed that expectations about fu- “Small businesses are seeing ture business conditions have risen glimmers of hope on the horizon, to their highest level in years. but it hasn’t translated to more cap- Small firms that have made it ital expenditure and hiring folks,” through tough times have been in- says Holly Wade,an economist with novative and willing to take risks. HOW TO FIGHT A RECESSION: Sweetriot’s the National Federation of Inde- For example, Andy Dunn, co- Sarah Endline diversified the company’s pendent Business. founder of Manhattan-based online products; tapped into a new market—airlines; In its monthly report for Novem- men’s clothing company Bonobos, and worked to retain customers. ber, the New York Federal Reserve grew his business in the past year on

david neff david said it sees gains across a wide swath See FIRMS on Page 14

ployment down by some 40% to 50% (50,000 or more jobs). The total How to put a label on this recession number of securities workers in the city has declined by 30,000 since its peak in November 2008, and with year ago, the prospects for the city seemed bleak bers from Eastern Consolidated.On In either case,that means this reces- profits soaring, at least for this year, indeed.The most optimistic forecast,from the In- a percentage basis,that’s sion was less severe than the total will inch up marginally. about half the rate of the the sharp but brief re- Meanwhile,the state used $7 bil- dependent Budget Office, projected job losses of country as a whole. The cession of 2001-2003 lion in stimulus money to plug its 254,000. The Bloomberg administration began city will lose more jobs (225,000) or the pro- budget deficit for health care and the year more pessimistically, with 294,000 jobs in the coming months longed period of tur- education, which meant that thou- disappearing, and in May upped that figure to 328,000. I was a even as the nation as a moil in 1987-1993 sands of teaching jobs and some A whole begins to add a bit (329,000). health care jobs were saved as well. voice of doom and gloom after listening to scores of veteran ex- to payrolls. In March, a How does one square The key question is what comes ecutives who came to editorial breakfasts at Crain’s and pro- revision of the 2009 data the numbers with the next. Economists have decided this nounced the difficulties they were encountering as the worst based on better numbers fact that the last year won’t be a V cycle, meaning a sharp is likely to add to the to- seemed so perilous? It upturn. An L is possible, meaning they had ever seen. and a few billions for city and state tal jobs lost by anywhere starts with the letters months, if not years, of stagnation. Today, it is clear that this reces- budgets can do. from 10,000 to 50,000. GREG TARP,which saved un- Many worry about a W (although sion—or at least this leg of the The numbers look like this.Since Nevertheless, the DAVID told thousands of high- it needs to be tilted) in which a downturn—could be the mildest, at the local economy peaked in August bottom line is that the paying Wall Street jobs. short upturn is followed by anoth- least in terms of job losses, the city 2008, New York City has lost total job loss could be as At one point,most fore- er steep decline. Which letter wins has experienced in 30 years. Ah, 140,000 jobs,or 3.7% of the total,ac- little as 157,000, the latest IBO casts were certain Wall Street would out is the central economic ques- what hundreds of billions for banks cording to seasonally adjusted num- forecast, or 200,000, my best guess. be permanently changed, with em- tion of 2010.

January 4, 2010 | Crain’s New York Business | 11 20100104-NEWS--0012,0013-NAT-CCI-CN_-- 12/29/2009 2:48 PM Page 1

REPORT ECONOMIC OUTLOOK

ARMORY HAMMERED: Cheerless Bronx n Bronx politicians and activists killed a 2,200-job redevelopment of the long- have limited educational attain- empty Kingsbridge Armory, Borough’s rebound ment and skills, and thus many of insisting the project’s retail stalls as jobless rate the jobs in today’s economy are not jobs didn’t pay enough. available to them,” says Jonathan soars and developers Bowles of the Center for an Urban are told to go away Future. The borough’s relatively low rents and abundance of subsidized BY JOE WALKER housing have exacerbated the gap with the rest of the city, notes Joan even for the bronx, 2009 was a Byron of the Pratt Center for Com- bad year. The Stella D’oro cookie munity Development. factory was closed, and its 150 jobs “The Bronx is a place for folks were shipped to Ohio. The bor- who can no longer afford to live in ough’s unemployment rate soared to Harlem or upper Manhattan,’’ she 13.3%, highest in the state. A $310 says.The result can be seen in medi- million plan to rebuild the empty an income, which dropped 5% be- Kingsbridge Armory, which would tween 2000 and 2008, to $35,033. have brought more than 1,200 per- manent jobs and 1,000 construction Big plans jobs to the borough, was scuttled. as the borough’s manufacturing Even the Bronx Zoo had to lay off base declined over the past decade, hundreds of animals because of the Bloomberg administration tar- budget cuts. geted big projects like the new Yan- The borough’s rebound, sparked kee Stadium and retail develop- by a huge investment in housing ments like the new Gateway Mall dating back to the Koch administra- to help bolster the economy. Em- tion, has stalled, and the Bronx is ployment at Gateway, which once again the most economically opened in April, has reached 2,100 troubled area in the city. after generating 2,900 temporary Experts say the jobless problem construction jobs. can be traced to two underlying de- But new political leadership in mographic statistics:The Bronx has the Bronx has decided that retail the least educated population and jobs, with their relatively low wages, one of the highest rates of incarcer- won’t help the local economy very ation in the city. much. Recently elected Borough

buck ennis “A high share of Bronx residents President Ruben Diaz Jr. points to For deal-seeking tourists, the city is the place t

season, according to Travelocity. that benefit from visitation, such as Broadway audience. an end,” says Charlotte St. Martin, Lower airfares, hotel Hotels continue to offer alluring restaurants,theaters and retail,”says “At the start of 2009, the world executive director of The Broadway prices help bring package deals, like free tickets to John Fox, senior vice president of thought Broadway was coming to League. “But our numbers show museums, VIP shopping experi- PKF. back crowds; B’way ences and discounted room rates. According to PKF, the average Some of the city’s most well- room rate will rise slightly to $218 in also gets a boost known accommodations, like the the first quarter of 2010 from $216 Waldorf Towers, the Carlyle and for the last quarter of 2009. The BY ANASTASIA ECONOMIDES Loews Regency, will provide a number of rooms sold will go up by complimentary third night when 4.5%, although the occupancy rate with the city’s economy still staying for two nights in the begin- will fall slightly because of the addi- bruised from the impact of the re- ning of 2010. tion of new rooms. cession, one sector is healing faster The comparison with the rest of than the rest—the tourism industry. the country tells the story; the na- NYC & Company, the city’s of- Nothing’s more tional occupancy rate next year will ficial tourism agency, had expected be a little less than 60%. a total of 45 million visitors by the important to end of 2009. It had exceeded that Foreign matters goal by about 400,000 at the end of NYC tourism nothing has been more impor- November, with numbers for the tant to the tourism sector than ef- usually robust December yet to be right now than forts to lure foreign visitors. added. NYC & Company has used in- “We are doing well and will con- foreign visitors creased funding from the city to tinue to do well,” says George Fer- open 18 international offices and titta, chief executive of NYC & will launch an advertising cam- Company. paign in the London subways this year—England remains the No. 1 Bodes well for 2010 Most of all,the average room rate source of international tourists. the unexpected strength in in Manhattan continues to drop. In New York is the No. 1 destination tourism can be tracked to low air- 2009, it fell 22% to a projected $242 for travelers from Brazil, Russia, fares, hotel deals and the weak dol- from an estimated $311 in 2008 and China, France and Australia. lar—all of which are expected to $303 in 2007, according to consult- Much of the resiliency of Broad- continue this year. ing firm PKF,making the city a big- way can be traced to the same The average domestic airfare to ger bargain than ever. source, with international theater- New York City was down 8% to $355 “I think that bodes well for the goers buying a record 21% of the when compared with the previous longer term. It also bodes well for 12.2 million tickets sold last season.

year for flights during the holiday the other segments of the economy Tourism accounts for 63% of the buck ennis

12 | Crain’s New York Business | January 4, 2010 20100104-NEWS--0012,0013-NAT-CCI-CN_-- 12/29/2009 2:49 PM Page 2

REPORT ECONOMIC OUTLOOK x needs a boost

asks,“How are we creating jobs and BRONX BOMBERS we’re still poor?” The borough president led the Some of the economic challenges facing the city’s poorest borough: opposition to the administration’s proposal to turn the long-aban- doned Kingsbridge Armory into a retail center, insisting on a require- 26% ment that jobs pay what he calls a SHARE of manufacturing jobs “living wage’’ of $10 an hour plus lost between 2000 and 2008 benefits. The city’s designated developer said no national retailer would agree to such a demand. The City Council rejected the proposal in 35% mid-December because of the ON HIS FEET: PROPORTION of Bronx work force wage dispute. Bruce D’Agata employed in health care and social jumped from assistance Armory is history luxury to discount, the armory project appears to be landing at dead. Mr. Diaz claims a victory of Century 21 in sorts. “For the first time in a long Queens. 68% time, we see how the interests of the PROPORTION of residents over 25 people have prevailed over corpo- with high school diploma, compared rate America,” he says. with 84% for entire state But the city’s business commu- nity—from the Real Estate Board of New York to the Partnership for New York City—as well as con- larry ford 5% structions unions argue that the ac- DECLINE in median household tion would cripple future develop- income from 2000 through 2008 ment in the hard-hit borough. “What you’ve done is make it Where’s the most hiring? much more difficult to do business in the Bronx,” says Jesse Masyr, a the decline in median income—de- lawyer for The Related Companies. spite strong job growth in the bor- “Developers will go somewhere else Retail and social services ough over the past decade—and where they’re welcome.”

old University of Michigan graduate Ms. Dornfeld is now a service Discounters and moved to New York in 2008, only to professional at a living facility for er (34 versus 31), and revenue and public service discover the worst job market in developmentally disabled people. “I attendance increased by almost 3%. decades. Grants, endowments and am with them when they have din- e to be Broadway is on target to do as add to payrolls amid government programs were being ner, when they get ready for bed,” well as last season’s record-breaking cut, and recent graduates from psy- she says. “It is an extremely satisfy- number of 43 openings, says the 10% jobless rate chology programs, such as herself, ing job.” otherwise.” league. So far, 15 show openings are were left doing volunteer work. Elsewhere, in the for-profit For the week ended Dec. 6, more confirmed from January through BY JOEL SCHECTMAN “It’s hard not to take it personal- world, high-end retailers have been shows are running than a year earli- May.
ly,” she says. “I had almost given up hit hard in the downturn, but dis- craig goldstein is one of the lucky on jobs in psychology, and I was count chains have attracted con- ones. A senior business develop- willing to take just about anything.” sumers hungry for bargains. And ment officer at CIT in New York for But then she found YAI, a non- that can mean jobs. 10 years, he survived several rounds profit providing services for the de- AJ Wright opened a new store in of layoffs as the troubled lender velopmentally disabled that has Flatbush in November, bringing on moved toward bankruptcy.Then he hired 317 people in the past six 119 workers,according to New York jumped,landing a good job in a field City’s Department of Small Busi- where competition is intense for the ness Services, which helped place few positions available: He’s now Century 21 will many of those employees. Century one of six new hires at TD Bank, 21 plans to open a department store which is building an asset-based open a store in in Rego Park in February and will lending unit. hire 350 people—good news for “I was fortunate, because I know Rego Park in people like Bruce D’Agata. many people from CIT who don’t Mr. D’Agata lost his job at For- have jobs,” says 45-year-old Mr. February and tunoff in Westbury when the com- Goldstein. “I had basically three pany went out of business earlier days off between Job A and Job B.” hire 350 people this year. He had worked at For- Despite hopes that the city’s tunoff for 30 years. economy has hit bottom, the job “It meant starting from scratch,” market in New York City remains Mr. D’Agata says.“You are sudden- cruel. The unemployment rate is ly trying to sell yourself all over 10% and the number of people not months, including Ms. Dornfeld. again.” counted in that figure because “During a bad economy,the need He got the chance to do that they’ve given up searching for work for these services doesn’t decrease,” when a former colleague recom- is in the tens of thousands. says Phillip Levy, chief executive of mended him for an interview at the But a few niche sectors continue the nonprofit, which has a staff of new Century 21 store in Rego Park. to add jobs.While asset-based lend- 5,500. Mr. D’Agata was hired as a general ing is one of the bright spots in fi- Fortunately, YAI has seen a 15% manager. nance,broader areas like social serv- increase in contributions recently, He’s not alone in making the ices and discount retailers are also in which Mr.Levy attributes to the or- move to a discounter. hiring mode. ganization’s 55-year track record. “Most of the people who were Bradleigh Dornfeld spent nearly Overall social services employment managing with me at Fortunoff,” he a year after college looking for work in the city has increased by 3,000 in says, “have gone to off-price retail- in psychology research.The 23-year- the past 12 months. ers like T.J. Maxx or Marshalls.”

January 4, 2010 | Crain’s New York Business | 13 20100104-NEWS--0014-NAT-CCI-CN_-- 12/29/2009 2:50 PM Page 1

REPORT ECONOMIC OUTLOOK Hard times are harder for some New Yorkers

ers.Crain’s analyzed the Census Bu- with blacks faring just slightly worse Crain’s identifies reau’s monthly survey results for the in 2007 (6.8% for blacks and 6.1% NEW YORK GRITTY: A BREAKDOWN three months ended in November. for Hispanics). But then job losses people smacked NOT EVERYONE HAS BEEN HIT EQUALLY by job losses this recession. The charts (The borough-wide figures are for hit blacks much harder in 2008 below show unemployment rates for the three months ended in November in the three months ended in Octo- (11.2% compared with 6.9%). by biggest job losses each of the past three years; figures are not seasonally adjusted. ber.) To determine how unemploy-  The Bronx suffered the highest ment has shifted over time,the 2009 unemployment rate of the five bor- BY EDUCATION BY MIKE REICHER period was compared with the same oughs, with Brooklyn second-high- period in 2008 and 2007. A few sur- est. In 2009, the Bronx, at 13.3%, No high school diploma
High school diploma
Some college
College grad depending on who’s asking, when prises and some classic themes was more than two percentage they’re asking and what they’re ask- emerged: points higher than Brooklyn, at ing, New York City’s job losses have  Having attended some college, 11.1%. The other three boroughs fallen particularly hard on different but leaving or finishing short of a topped out at 9.2%. demographic groups in the city. One four-year degree, didn’t give people  Men were hit harder during organization says it’s Latinos.Anoth- an advantage over those with only a this recession than women, espe- er group says it’s non-Hispanic blacks high school diploma. In fact, those cially in 2008,when they had a 6.8% and the well-educated, or maybe it’s who attended some college or had unemployment rate, compared with black men. The groups’ assessments an associate’s degree actually had a 5.1% for females. have also changed over time. higher rate of unemployment than The analysis was based on the A look back over the past three high school graduates. U.S. Bureau of Labor Statistics’ years shows some New Yorkers have  Blacks and Hispanics had the Current Populations Survey and definitely suffered more than oth- highest rates of unemployment, was not seasonally adjusted.

Those wanting to take advantage of new opportunities to expand are BY BOROUGH Firms eye growth still finding banks unwilling to part with cash. In fact, the credit squeeze
Bronx
Brooklyn
Manhattan
Queens
Staten Island Continued from Page 11 30.5% last year compared with has gotten worse in recent months, the strength of e-commerce, reli- 2008, according to the Monster with no banker reporting eased giously keeping abreast of his cus- Employment Index, which scours credit standards, according to the tomers’ needs on social networking online hiring across hundreds of New York Fed. Even the federal sites. He asked those who had sites, including Monster.com. government’s small business lend- shopped with him only one time, ing, designed for creditworthy bor- “What should we do?” One idea: Working harder rowers who have had trouble find- make a cheaper pair of pants. The sarah berman, founder and presi- ing loans elsewhere, fell 36% for company did. dent of marketing firm Berman fiscal year 2009, ended Sept. 30. And Eugene Choi, the owner of Group Inc., has not replaced five Pravina Raghavan, New York Grace Cleaners, a dry-cleaning workers lost through attrition since district director for the Small Busi- store in midtown, launched his first the recession hit. ness Administration, says the num- direct-mail campaign and hired an “When people ask me, ‘How’s bers are less dire if you start the tal- extra worker to improve service, business?’I think of a saying I heard: ly in February, after President even though the moves pushed him You have to work a lot harder to not Barack Obama’s stimulus act elimi- into the red. “It’s a gamble,” he ad- get as far,” she says. nated fees and upped the guarantee mits,insisting the steps will position Back when the luxury condo- for banks. Lending has surged 80% Figures are for the three months ended in October. the business to benefit as the econ- minium market was red-hot, Ms. since February, she says. But money BY RACE omy improves. Berman says, print campaigns for for those special loans ran out in No- Continuing high unemploy- the construction industry were her vember,leaving more than 700 busi-
Black, non-Hispanic
Hispanic ment worries even the most opti- bread and butter. She has since sta- nesses nationwide to languish on a
White, non-Hispanic
Asian and all other mistic small business people. bilized business at the four-year-old federal wait list until the president The city’s jobless rate remains in firm by diversifying into union and can deliver renewed funding for the the double digits, with online help- trade association work—and by fo- program as promised. In the mean- 10.1% wanted ads flat last fall and down cusing more on Internet campaigns. time, other businesses can try their luck with a regular SBA loan. Not banking on banks “i don’t see the banks opening up,” says David Kistner, founder of Green Apple Cleaners, which tar- gets upscale customers in Manhat- tan,Brooklyn and New Jersey.After being denied a loan a year ago, Mr. Kistner changed his focus at the fast-growing three-year-old com- BY GENDER pany from “expanding to retaining.”
Female
Male He sold two stores, closed one and renegotiated leases at his other four 12.0% 6.9% stores. Counter workers were re- trained as “brand ambassadors” to win accounts at buildings with doormen. The next time he raises money,it will be through an equity offering, a plan the founders of Bonobos and Sweetriot also say they favor in lieu of debt financing. “We are bullish on the second WELL-SUITED: Eugene Choi half of next year, but into the first took risks to position Grace quarter it is still going to be tough,” Cleaners for an improved Mr. Kistner says. “I still see a lot of economy. friends with résumés, and that is al- Sources: Bureau of Labor Statistics, Census Bureau

catherine gibbons catherine ways an indicator.”

14 | Crain’s New York Business | January 4, 2010 nb01p15.qxp 12/29/2009 5:08 PM Page 1

REPORT ECONOMIC OUTLOOK

where every job produces two oth- ment will come back. After the last reductions that will outnumber new ers across the city economy. downturn, hiring on Wall Street hires. Also, some of Wall Street’s Tough love recovery “Firms are going to be hesitant inched along. Employment never bread-and-butter moneymakers— to add people to payrolls if there’s reached its prerecession peak of such as mortgage-backed securi- still uncertainty around compensa- more than 200,000 jobs, but instead ties—have become less profitable. Continued from Page 1 altered spending patterns—perhaps tion and activities they can engage topped out at 186,100 in 2007. The “They’ll likely shed some of by how the national economy is do- permanently.There’s also the possi- in,” says Marissa Di Natale, senior Independent Budget Office fore- those operations, resulting in job ing and how the financial sector is bility of hefty state budget cuts,both economist at Economy.com. “I’m casts that the financial industry losses,” Mr. Turetsky says. doing,” says Jason Bram, an econo- in New York and around the nation, thinking 2010 is going to be a pret- won’t stop losing jobs until the mid- Big changes in securities indus- mist at the Federal Reserve Bank of that would counter the effects of the ty weak year for New York City.” dle of 2012. try bonuses could also be on the New York. stimulus and hinder recovery. While Wall Street’s brisk re- horizon.New federal compensation No one is yet expecting a strong bound as measured by profits is a A new landscape rules could restrict the amount paid national recovery,which clearly por- A leaner securities industry plus for the city economy, it doesn’t “what’s particularly unique out in cash,so even though the 2009 tends anemic growth for the city. uncertainty shrouds the securi- necessarily mean that a hiring push about this recession is that it not bonus pool is predicted to be higher “If there’s going to be a weak re- ties industry—the second vital is around the corner. A lot of those only hit the city’s major economic than the 2008 one, the city’s budget covery,you get weak profit growth,” component to any local recovery. profits—estimated at $59 billion for driver, but it’s changed the land- might not see an immediate benefit. says James Brown, principal econo- The engine that drives the city 2009—are driven by the trading scape of that industry,” says Doug Every recession is different, of mist at the state Department of La- economy has shed 29,000 jobs over desk, which tends to be less labor- Turetsky, chief of staff at the IBO, course,but if historical patterns hold bor. “That means not much spend- the past two-plus years and will intensive than activities like mergers referring to the end of the invest- up, the slow growth on Wall Street ing on advertising, legal services, emerge from the financial crisis and acquisitions and initial public ment banks that formerly dominat- could hold back the city’s recovery. accounting and all the other things leaner, despite signs that it is re- offerings. ed Wall Street. “What this means Increased Wall Street employment we do here in New York.” bounding faster than expected. Big city firms have also benefit- over the long term is still to play sparked the upswings that followed It’s still very difficult for firms Changes in regulations, financial ed from low interest rates and gov- out.” the past two recessions. and consumers to get credit, and the products and the makeup of the ernment guarantees, neither of Mr. Turetsky says further indus- “It’s not until you see a decisive housing downturn caused a sharp firms themselves could all tamp which will be around forever. try consolidation is expected, since upturn in securities employment drop in household wealth that has down employment in the sector, Plus, past recoveries show a lag firms like Lehman Brothers and that the city’s economy typically between when Wall Street firms be- Merrill Lynch have still not been turns up,”says Mr.Bram of the New gin making money and when they completely absorbed into their new York Fed. “And that’s one industry WHAT’S AHEAD start hiring. Even then, there’s no parent companies. The process will nationally that’s such a question guarantee that full industry employ- almost certainly lead to further staff mark.”
NY AREA’S UNEMPLOYMENT ROLLER COASTER A look at average quarterly jobless rates for the past two years and the next five.

Unemployment rate

Includes the five boroughs and Putnam, Rockland and Westchester counties in New York, and Bergen, Hudson and Passaic counties in New Jersey. Sources: Bureau of Labor Statistics (historical data), Moody’s Economy.com (forecasts)

BOOMS AND BUSTS IN NYC SECURITIES EMPLOYMENT The dot-com bubble was very good to the securities industry. But average annual employment in the sector, which peaked at 200,300 in 2000, has never fully rebounded since the tech crash.

NYC securities employment

*As of end-November. Sources: Bureau of Labor Statistics, NYS Department of Labor, Securities Industry and Financial Markets Association POWER POINTS Weather-adjusted peak electrical load for the New York area.

Megawatts

Steven Mayer, CPA 6 East 43rd Street New York, NY 10017 www.amper.com 212.682.1600 “Seeing Beyond the Numbers...”sm [email protected]

Source: Consolidated Edison Co. of New York

January 4, 2010 | Crain’s New York Business | 15 nb01p16-17cl.qxp 12/30/09 1:15 PM Page 16

REAL ESTATE PUBLIC & LEGAL NOTICES

Notice of Qualification of AgencyWorks, JULGIL COCON LLC, Articles of org. BODHAN BROTHERS LLC a domes- Notice of Formation of AZTEC COMMERCIAL LLC. Authority filed with NY Dept. of filed N.Y. Sec. of State (SSNY) 14th tic Limited Liability Company (LLC) ASSOCIATES, LLC. Cert. of INVESTMENT State on 11/12/09. Office location: NY day of October 2009. Office in New filed with the Sec of State of NY on Conversion filed with Secy. of State of County. LLC formed in DE on 5/18/99. York Co. at 1 Maiden Lane, 5th floor, 9/18/09. NY Office location: New York NY (SSNY) on 11/24/09, converting NY Sec. of State designated as agent New York, New York 10038. SSNY County. SSNY is designated as AZTEC ASSOCIATES to AZTEC of LLC upon whom process against it desig. agt. upon whom process may agent upon whom process against ASSOCIATES, LLC. Office location: may be served and shall mail process be served. SSNY shall mail copy of the LLC may be served. SSNY shall NY County. Princ. office of LLC: C/O to: c/o CT Corporation System, 111 process to 1 Maiden Lane, 5th floor, mail a copy of any process against United American Land, LLC, 430 W. 8th Ave., NY, NY 10011, registered New York, New York 10038. Reg. Agt. the LLC served upon him/her to Broadway, NY, NY 10012. SSNY des- agent upon whom process may be upon whom process may be served: Poppe & Bhouraskai, LLP, 350 5th ignated as agent of LLC upon whom served. DE address of LLC: 1209 Spiegel & Utrera, P.A., P.C. 1 Maiden Ave., Ste. 7315, NY, NY 10118-7315. process against it may be served. Orange St., Wilmington, DE 19801. Lane, NYC 10038. 1-800-576-1100. General Purposes. SSNY shall mail process to the LLC Arts. of Org. filed with DE Sec. of Purpose : any lawful purpose. at the addr. of its princ. office. State, 401 Federal St., Dover, DE Notice of Qualification of Lago Purpose: Any lawful activity. 19901. Purpose: any lawful activity. Notice of Formation of MAHLER LLC. Capital Management LLC, App. for OFFICE SPACE Arts. of Org. filed with Secy. of State of Auth. filed Sec’y of State (SSNY) Notice of Qualification of 16th Notice of Formation of GURION NY (SSNY) on 12/07/09. Office location: 12/2/09. Office location: NY County. Amendment Advisors LLC, App. for HOLDINGS LLC. Arts. of Org. filed NY County. Princ. office of LLC: 301 LLC org. in DE 11/30/09. SSNY Auth. filed Sec’y of State (SSNY) with Secy. of State of NY (SSNY) on W. 57th St., #25G, NY, NY 10019. designated as agent of LLC upon 5/21/09. Office location: NY County. 12/02/09. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be LLC org. in DE 5/18/09. SSNY desig- Princ. office of LLC: c/o Sukenik whom process against it may be served. served. SSNY shall mail copy of nated as agent of LLC upon whom OFFICE SUITES FOR RENT Segal & Graff, P.C., 404 Fifth Ave., SSNY shall mail process to Matthew process to Attn: Eric Fishman, 535 process against it may be served. 50 West 17th Street, 80-100 sf, $600-$1200. 5th Fl., NY, NY 10018. SSNY desig- S. Seminara, Esq., Gibney, Anthony & Madison Ave., 30th Fl., NY, NY SSNY shall mail copy of process to Work stations also available. nated as agent of LLC upon whom Flaherty, LLP, 665 Fifth Ave., NY, NY 10022. DE office addr.: CSC, 2711 John J. Lee, 630 Fifth Ave., 27th Fl., Great loft building, newly renovated space. process against it may be served. 10022. Purpose: Any lawful activity. Centerville Rd., Wilmington, DE NY, NY 10111. DE office addr.: 160 Lynn Whiting at 212-896-8624, SSNY shall mail process to the LLC 19808. Cert. of Form. on file: SSDE, Greentree Dr., Ste. 101, Dover, DE [email protected] at the addr. of its princ. office. Townsend Bldg., Dover, DE 19901. NOTICE OF FORMATION of Bruzina 19904. Cert. of Form. on file: SSDE, Purpose: Any lawful activity. Purpose: any lawful activities. PLLC. Articles of Organization filed Townsend Bldg., Dover, DE 19901. with the Sec. of State of NY (SSNY) Purpose: any lawful activities. NOTICE OF FORMATION OF LIMIT- on 09/24/09. Office location: NY Notice of Formation of HIS FIRST ED LIABILITY COMPANY. NAME: County. Street address of Principal KISS, LLC. Arts. of Org. filed with Notice of Qualification of LionHedge PUBLIC & LIPPMAN HUTT REAL ESTATE LLC. Business location is: 110 Wall St., Secy. of State of NY (SSNY) on BH Fund, LLC, App. for Auth. filed Articles of Organization were filed with 11th Flr., N.Y., N.Y., 10005-3817. 12/04/09. Office location: NY Sec’y of State (SSNY) 8/26/09. Office LEGAL NOTICES the Secretary of State of New York SSNY has been designated as agent County. Princ. office of LLC: 11 location: NY County. LLC org. in DE (SSNY) on 09/28/09. The latest date upon whom process against it may Stanton St., #1D, NY, NY 10002. 8/25/09. SSNY designated as agent of dissolution is 12/31/2035. Office be served. SSNY shall mail a copy of SSNY designated as agent of LLC of LLC upon whom process against it location: New York County. SSNY has Notice of Formation of M Dance & any process against the PLLC at C/O upon whom process against it may may be served. SSNY shall mail copy been designated as agent of the LLC Fitness LLC. Articles of Organization Bruzina PLLC, 130 Water Street 8D be served. SSNY shall mail process of process to 405 Park Ave., Ste. 803, upon whom process against it may be filed with Secy. of State of NY (SSNY) N.Y., N.Y., 10005. Date for to the LLC at the addr. of its princ. NY, NY 10022. DE office addr.: CSC, served. SSNY shall mail a copy of on 12/17/09. Office location: NY Dissolution: None. Purpose of PLLC: office. Purpose: Any lawful activity. 2711 Centerville Rd., Wilmington, DE process to the LLC, 136 West County. SSNY designated as agent to engage in the practice of law and 19808. Cert. of Form. on file: SSDE, Broadway, New York, New York 10013. of LLC upon whom process against any lawful act or activity. Notice of Formation of Mill Townsend Bldg., Dover, DE 19901. Purpose: For any lawful purpose. it may be served. SSNY shall mail Condominiums LLC, Art. of Org. filed Purpose: any lawful activities. process to the LLC, 350 West 57th HAPPY TEETH NY LLC Articles of Sec’y of State (SSNY) 11/17/09. Street, #16C, New York, NY 10019. EDUPROFILE LLC Articles of Org. Org. filed NY Sec. of State (SSNY) Office location: NY County. SSNY des- Notice of Formation of Anna Purpose: any lawful act or activity. filed NY Sec. of State (SSNY) 8/17/09 7/3/09. Office in NY Co. SSNY desig. ignated as agent of LLC upon whom Brisighello, LLC. Arts. of Org. filed as EDUPROFILE LLC. Office in NY agent of LLC upon whom process process against it may be served. with NY Dept. of State on 11/13/09. Notice of Qualification of OAKTREE Co. SSNY desig. agent of LLC upon may be served. SSNY shall mail copy SSNY shall mail copy of process to Office location: NY County. Princ. PPIP FUND, L.P. Authority filed with whom process may be served. SSNY of process to 160 Riverside Blvd., c/o Nat. Reg. Agents, 875 Ave of the bus. addr.: 122 Greenwich Ave., NY, Secy. of State of NY (SSNY) on shall mail copy of process to 170 West Apt. #6E, NY, NY 10069, which is Americas, NY, NY 10001, the Reg. NY 10011. Sec. of State designated 12/16/09. Office location: NY County. End Avenue, Apt. 15H, NY, NY. 10023. also the principal business location. Agt. upon whom proc. may be as agent of LLC upon whom process LP formed in Delaware (DE) on Purpose: Education consulting. Purpose: Any lawful purpose. served. Purpose: any lawful activities. against it may be served and shall 07/17/09. Princ. office of LP: mail process to: David J. Borkon, Oaktree/Arctic Slope PPIP Fund GP, NOTICE OF FORMATION OF Notice of Qualification of CF Inver Notice of Qualification of AKPD Esq., c/o Vedder Price P.C., 1633 L.P., c/o Oaktree Capital Mgmt. L.P., BAYVILLE OTC LLC. Article of Grove III RE Holdco LLC. Authority Message and Media LLC. Authority Broadway, 47th Fl., NY, NY 10019. 333 S. Grand Ave., 28th Fl., Los Organization filed with the Secretary filed with NY Dept. of State on filed with Secy. of State of NY Purpose: any lawful activity. Angeles, CA 90071. SSNY designated of State of NY (SSNY) on 12/11/09. Office location: NY County. (SSNY) on 10/14/09. Office location: as agent of LP upon whom process 10/27/2009. Office location NEW LLC formed in MI on 12/4/08. NY NY County. LLC formed in Illinois (IL) NOTICE OF FORMATION OF LIMIT- against it may be served. SSNY shall YORK County. SSNY has been des- Sec. of State designated as agent of on 3/24/09. SSNY designated as ED LIABILITY COMPANY. NAME: mail process to Corporation Service ignated as agent upon whom process LLC upon whom process against it agent of LLC upon whom process 135 WAVERLY REALTY LLC. Articles Co., 80 State St., Albany, NY 12207- against it may be served. The Post may be served and shall mail against it may be served. SSNY of Organization were filed with the 2543, regd. agent upon whom and at Office address to which the SSNY process to: c/o CT Corporation shall mail process to: c/o National Secretary of State of New York which process may be served. Name shall mail a copy of any process System, 111 8th Ave., NY, NY 10011, Registered Agents, Inc., 875 Avenue (SSNY) on 07/27/06. Office location: and addr. of each general partner are against the LLC served upon him/her regd. agent upon whom process may of the Americas, Ste. 501, NY, NY New York County. SSNY has been available from SSNY. DE addr. of LP: is C/O the LLC 145 EAST 17TH be served. MI and principal business 10001. Address to be maintained in designated as agent of the LLC upon 2711 Centerville Rd., Ste. 400, STREET RM A4. NEW YORK, NY addr.: 27777 Inkster Rd., Farmington IL: 730 N. Franklin St., Ste. 404, whom process against it may be Wilmington, New Castle Cnty., DE 10003. Purpose of LLC: to engage in Hills, MI 48334. Arts. of Org. filed Chicago, IL 60654, also the address served. SSNY shall mail a copy of 19808. Arts. of Org. filed with Secy. of any lawful act or activity. Street with MI Dept. of Energy, Labor & of the principal office. Arts of Org. process to the LLC, 135 Waverly State of DE, John G. Townsend Bldg., address of Principal Business loca- Economic Growth, 2501 Wood Lake filed with IL Secy. Of State, Room Place a/k/a 385 6th Avenue, New 401 Federal St., Ste. 4, Dover, DE tion is: 145 EAST 17TH STREET RM Circle, Okemos, MI 48864. Purpose: 531 Howlett Bldg., Springfield, IL York, New York 10014. Purpose: For 19901. Purpose: Any lawful activity. A4. NEW YORK, NY 10003. all lawful purposes. 62756. Purpose: any lawful activities. any lawful purpose.

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16 | Crain’s New York Business | January 4, 2010 nb01p16-17cl.qxp 12/30/09 1:15 PM Page 17

PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION of DFUZE Notice of formation of HEIDARI LIM- Notice of Formation of SL Holdings I, 108 NORWOOD LLC a domestic Notice of Qualification of IQUE Entertainment Media, LLC. Articles ITED PARTNERSHIP, a domestic LLC. Arts. of Org. filed with NY Dept. of Limited Liability Company (LLC) filed Information CC. Authority filed with of Organization filed with the Limited Partnership (LP). Certificate State on 9/29/09. Office location: NY with the Sec of State of NY on NY Dept. of State on 11/6/09. Office Secretary of State of NY (SSNY) on of Limited Partnership filed with the County. Sec. of State designated as 10/27/09. NY Office location: New location: NY County. LLC formed in 11/04/09. Office location: NY County. Secretary of State on November 23, agent of LLC upon whom process York County. SSNY is designated as South Africa (SA) on 9/11/97. NY SSNY has been designated as agent 2009, NY Office Location: New York against it may be served and shall mail agent upon whom process against Sec. of State designated as agent of upon whom process against it may County. Secretary of State is desig- process to the principal business the LLC may be served. SSNY shall LLC upon whom process against it be served. The Post Office address to nated as agent upon whom process address: 580 5th Ave., Ste. 501, NY, NY mail a copy of any process against may be served and shall mail which the SSNY shall mail a copy of against the LP may be served. 10036. Purpose: any lawful activity. the LLC served upon him/her to The process to: 15 W. 26th St., 7th Fl., any process against the LLC served Secretary of State shall mail a copy LLC, 400 W. 14th St., 3rd Fl., NY, NY NY, NY 10010. SA addr. of LLC: PO upon him is C/O the LLC, 222 of any process against the LP served Notice of Formation of 26 E. 63rd 10014. General Purposes. Box 201512, Durban North 4016 SA. Riverside Drive, N.Y., N.Y., 10025. upon him/her to: 30 Sutton Place, New STREET LLC. Arts. of Org. filed with Arts. of Org. filed with Registrar, Purpose of LLC: to engage in any York, New York 10022. Purpose: To Secy. of State of N.Y. (SSNY) on April Notice of Formation of ROBERT J. Companies and Intellectual Property lawful act or activity. Street address of engage in any lawful act or activity. 15, 2008. Office location: New York SAFERSTEIN PRODUCTIONS LLC, Registration Office, The Dti campus Principal Business location is: 222 County. SSNY designated as agent a domestic LLC. Arts. of Org. filed (Block F - Entfutfukwenf), 77 Riverside Drive, N.Y., N.Y., 10025. Commercial Online Services LLC filed of LLC upon whom process against it with the SSNY on 10/22/2009. Office Meintjles St., Sunnyside, Pretoria, articles of organization on 10/26/2009 may be served. SSNY shall mail location: NY County. SSNY has been SA. Purpose: all lawful purposes. Notice of Formation of HHLP Duo in New York County, Secretary of process to: The LLC, c/o Vittorio designated as agent upon whom One Associates, LLC. Arts. of Org. State has been designated as agent Assaf, 26 East 63rd St., Apt. 12B, process against the LLC may be served. Notice of Formation of G&A filed with NY Dept. of State on for the LLC and process may be New York, NY 10021. Purpose: any SSNY shall mail a copy of process Management Associates, LLC. Arts. 11/3/09. Office location: NY County. served to 84 Old Drift Way Wilton, CT lawful activity. to: 160 W. 118th St. #5B, NY, NY of Org. filed with Secy. of State of NY Princ. bus. addr.: 44 Hersha Dr., 06897. Purpose: any lawful activity 10026. Purpose: Any Lawful Purpose. (SSNY) on 3/16/09. Office location: Harrisburg, PA 17102. Sec. of State Notice of Formation of Frye Retail, NY County. SSNY designated as designated as agent of LLC upon Notice of Formation of CLINTON LLC. Arts. of Org. filed with NY Dept. Notice of Formation of PROP ME UP agent of LLC upon whom process whom process against it may be HOUSING PRESERVATION DEVEL- of State on 11/12/09. Office location: LLC. Arts. of Org. filed with Secy. of against it may be served. SSNY served and shall mail process to: c/o OPER, LLC. Arts. of Org. filed with NY County. Sec. of State designated State of N.Y. (SSNY) on 10/8/09. shall mail process to: c/o Abigail H. CT Corporation System, 111 8th Secy. of State of NY (SSNY) on as agent of LLC upon whom process Office location: New York County. Hess Interiors, Inc., 308 E. 79th St., Ave., NY, NY 10011, regd. agt. upon 12/03/09. Office location: NY County. against it may be served and shall SSNY designated as agent of LLC Ste. 1B, NY, NY 10075, Att: George whom process may be served. Princ. office of LLC: 60 Columbus mail process to: c/o CT Corporation upon whom process against it may Constant. Purpose: any lawful activity. Purpose: any lawful activity. Circle, NY, NY 10023. SSNY desig- System, 111 8th Ave., NY, NY 10011. be served. SSNY shall mail process nated as agent of LLC upon whom Purpose: any lawful activity. to: The LLC, 601 West 26th St., Notice of Formation of ANCONIA PARTNERS LLC. Arts. of Org. filed NOTICE OF FORMATION OF U & V process against it may be served. Room 1233, New York, NY 10001. with Secy. of State of NY (SSNY) on Events LLC. Arts. of Org. filed with SSNY shall mail process to c/o NOTICE OF FORMATION OF Rum & Purpose: any lawful activity. 12/11/09. Office location: NY County. Secy. of State of N.Y. (SSNY) on Corporation Service Co., 80 State Blackbird LLC. Arts. of Org. filed with SSNY designated as agent of LLC 07/14/2009. Office location: New York St., Albany, NY 12207. Purpose: Any Secy. of State of N.Y. (SSNY) on Notice of Formation of SOFOS ASSET upon whom process against it may County. SSNY designated as agent of lawful activity. 10/15/09. Office location: New York MANAGEMENT, LLC, a domestic be served. SSNY shall mail process LLC upon whom process against it County. SSNY designated as agent of LLC. Arts. of Org. filed with the SSNY to the LLC, Attn: Corporation Service may be served. SSNY shall mail Notice of Formation of LARDON 1350, LLC upon whom process against it on 11/18/2009. Office location: NY Co., 80 State St., Albany, NY 12207- process to: 309 W. 30th Street, Suite LLC. Arts. of Org. filed with Secy. of may be served. SSNY shall mail County. SSNY has been designated 2543, regd. agent upon whom and at 2C, New York, NY 10001. Purpose: State of NY (SSNY) on 10/31/2002. process to: 406 W. 44th Street New as agent upon whom process against which process may be served. any lawful activity. Office location: NY County. SSNY York, NY 10036. Purpose: any lawful the LLC may be served. SSNY shall Purpose: Any lawful activity. designated as agent of LLC upon activity. mail a copy of process to: George whom process against it may be Notice of Formation of WEST 135th Nikas, 145 E. 57th St. 8th Fl, NY, NY served. SSNY shall mail process to: Notice of Formation of SANCTUARY APARTMENTS, LLC. Arts. of Org. filed Name of LLC: Imperial Capital LLC. 10022. Purpose: Any Lawful Purpose. The LLC, 545 Fifth Ave., NY, NY BOOKS, LLC. Arts. of Org. filed with with Secy. of State of N.Y. (SSNY) on Auth. filed with NY Dept. of State: 10017. Purpose: any lawful purpose. Secy. of State of NY (SSNY) on 10/29/09. Office location: NY County. 1/30/09. NYS fict. name: Imperial WIREFRAME SOLUTIONS LLC a 10/6/09. Office location: NY County. SSNY designated as agent of LLC Realty Holdings LLC. Office loc.: NY domestic Limited Liability Company SSNY designated as agent of LLC upon whom process against it may CENTRAL PARK RESTAURANT, LLC Co. LLC formed in NV: 3/31/06. NY (LLC) filed with the Sec of State of upon whom process against it may be be served. SSNY shall mail process Articles of Org. filed NY Sec. of State Sec. of State designated agent of NY on 10/23/09. NY Office location: served. SSNY shall mail process to: to: c/o Jonathan Rose Companies, (SSNY) 11/6/09. Office in NY Co. LLC upon whom process against it New York County. SSNY is designat- Corporation Service Company, 80 551 Fifth Ave., 23rd Fl., New York, NY SSNY desig. agent of LLC upon may be served and shall mail ed as agent upon whom process State St., Albany, NY 12207, registered 10176. Purpose: any lawful activity. whom process may be served. process to: c/o Mel Cooper, 721 5th against the LLC may be served. SSNY agent upon whom process may be SSNY shall mail copy of process to Ave., #45K, NY, NY 10022, regd. agt. shall mail a copy of any process served. Purpose: any lawful activity. c/o LePatner & Assoc., LLP, 600 upon whom process may be served. Notice of Qualification of ASN Key against the LLC served upon him/her Lexington Ave., 21st Fl, NY, NY NV addr.: 6100 Neil Rd., Ste. 500, West LLC. Authority filed with NY to The LLC, 244 5th Ave., Ste. 2435, Name of For. LP: BOWH MANAGE- 10022. Purpose: Any lawful purpose. Reno, NV 89511. Arts. of Org. filed: NY, NY 10001. General Purposes. Dept. of State on 11/3/09. Office loca- NV Sec. of State, State Capital MENT LP. Appl. for Auth. filed with tion: NY County. Princ. bus. addr.: Complex, Carson City, NV 89710. Sec. of State of NY: 7/20/09. Jurisd. 9200 E. Panorama Cir., Ste. 400, SULTAAN J. MOKAL CPA PLLC, Purpose: any lawful activity. Notice of Qualification of Basepair and date of org.: DE 7/10/09. NY Englewood, CO 80112. LLC formed in Articles of Org. filed N.Y. Sec. of Holdings, LLC, App. for Auth. filed State office loc.: New York Cty. Sec. DE on 8/30/06. NY Sec. of State des- State (SSNY) 30th day of November, Sec’y of State (SSNY) 9/21/09. of State designated as agent upon ignated as agent of LLC upon whom 2009. Office in New York Co. at 1 Notice of Formation of Saw Storage Office location: NY County. LLC org. whom process against it may be process against it may be served and Maiden Lane, 5th Floor, New York, Holdings LLC. Arts. of Org. filed with in DE 9/15/09. SSNY designated as served. Sec. of State shall mail copy shall mail process to: c/o CT New York 10038. SSNY desig. agt. Secy. of State of NY (SSNY) on agent of LLC upon whom process of process to: 1172 Park Avenue, NY, Corporation System, 111 8th Ave., upon whom process may be served. 11/20/09. Office location: NY Co. against it may be served. SSNY shall NY 10128. Addr. of LP in DE is: NY, NY 10011, regd. agt. upon whom SSNY shall mail copy of process to 1 SSNY designated as agent of LLC mail copy of process to Attn: Jeffrey National Corporate Research, Ltd., process may be served. DE addr. of Maiden Lane, 5th Floor, New York, upon whom process against it may A. Ferrell, 400 W. 55th St., #11B, NY, 615 S. DuPont Hwy., Dover, DE LLC: c/o The Corporation Trust Co., New York 10038. Reg.Agt. upon be served. SSNY shall mail process NY 10019. DE office addr.: NCR, 615 19901. Name/addr. of GP avail. from 1209 Orange St., Wilmington, DE whom process may be served: to: c/o BTP Real Estate Ltd., Attn: S. DuPont Hwy., Dover, DE 19901. Sec. of State. Authorized office in DE 19801. Arts. of Org. filed with DE Sec. Spiegel & Utrera, P.A., P.C. 1 Maiden Jessica Sillins, 224 West 49th St., Cert. of Form. on file: SSDE, where Cert. of LP is filed is: DE Sec. of State, 401 Federal St., Dover, DE Lane, NYC 10038 1 800 576-1100 Ste. 411, NY, NY 10019. Purpose: Townsend Bldg., Dover, DE 19901. of State, Duke & York St., Dover, DE 19901. Purpose: any lawful activity. Purpose: Any lawful purpose. any lawful activities. Purpose: any lawful activities. 19901. Purpose: any lawful activity.

January 4, 2010 | Crain’s New York Business | 17 20100104-NEWS--0018-NAT-CCI-CN_-- 12/29/2009 2:51 PM Page 1

FOR THE RECORD

conference is scheduled for Jan. 11 and personal advantage, and that these the health and beauty aids company, Jan. 12 at 10 a.m. at 79-01 Broadway, transactions are frequently associated with exercised options on 50,000 shares of ABOUT THIS SECTION Elmhurst, Queens, in the sixth-floor future stock price performance. Listings are common stock at $35.00 on Dec. 3, in a FOR THE RECORD is a weekly listing of information from the public record that conference room of Annex G. in order of transaction size. Information transaction worth $1,750,000. On the Documents are available for download at and data were obtained from Thomson same day, he sold 50,000 shares at can help businesspeople in the New York area find opportunities, potential http://nyc.gov/hhc. Questions regarding Reuters. $50.00 in a transaction worth new clients and updates on competitors. this bid can be directed to Diane $2,500,000. He now directly holds To ask questions or get more information on this section, contact Denise Pourakis at (718) 883-6000 or G Moody’s Corp. (MCO) 29,062 shares. Southwood at [email protected]. [email protected]. Berkshire Hathaway Inc. sold 2,709,296 shares of common stock at prices John Dempsey, group president, ranging from $24.81 to $25.04 between exercised options on 20,833 shares of REAL ESTATE DEALS Dec. 7 and Dec 8, in a transaction worth common stock at $42.58 on Dec. 3, in a $67,673,128. The company now transaction worth $887,069. On the BANKRUPTCIES [email protected] for The latest real estate deals are provided by indirectly holds 35,357,400 shares. same day, he sold 20,833 shares at information. brokers and/or their representatives. $49.75 in a transaction worth The following listings are selected from the Companies that would like information G Vornado Realty Trust (VNO) $1,036,442. He now directly holds 20 most recent available filings by companies Seeks competitive sealed bids by 11 a.m. on their real estate transactions to appear Steven Roth, chairman of the board shares. seeking bankruptcy protection in the on Jan. 27 for all labor, material and in this section should e-mail descriptions at the real estate investment trust, Southern and Eastern Districts of New equipment required for streetscape and information that follow this format to exercised options on 1,530,700 shares of G Steven Madden Ltd. (SHOO) York. Information was obtained from U.S. improvements at La Guardia [email protected] with common stock at $30.16 on Dec. 7, in a Arvind Dharia, chief financial officer Bankruptcy Court records available on Community College, Queens. A “Real estate transaction” on the subject transaction worth $46,171,728. and secretary at the footwear company, Public Access to Court Electronic Records. mandatory prebid meeting and site visit line. Deals are listed in order of square exercised options on 60,000 shares of Listings are in alphabetical order. will be held on Jan. 14 at 10 a.m. at footage. Robert P.Kogod, trustee, sold 50,000 common stock at $13.90 on Dec. 9, in a 31-10 Thomson Ave., Long Island City, shares of common stock at $70.02 on transaction worth $834,000. Between G Bozrock dba Olana Restaurant Queens. For more information, contact OFFICE Dec. 3, in a transaction worth Dec. 9 and Dec. 10, he sold 60,000 72 Madison Ave. contract officer MaryAnn Bellomo Gibson Dunn & Crutcher, a law firm, $3,501,000. He now indirectly holds shares at prices ranging from $38.50 to Filed for Chapter 11 bankruptcy at (212) 541-0440 or has renewed and expanded its lease at 222,377 shares. $40.01 in a transaction worth protection on Dec. 10. The filing cites [email protected]. 200 Park Ave., the MetLife Building, to $2,361,958. He now directly holds estimated liabilities of $100,001 to cover more than 260,000 square feet. G IAC/InterActiveCorp (IACI) 32,000 shares. $500,000 and assets of $100,001 to G Department of Parks and Recreation The building is 58 stories, contains Liberty Media Corp. sold 1,138,400 $500,000. No specific debts are listed. Requests competitive sealed bids by approximately 3.1 million square feet shares of common stock at prices G Cognizant Technology Solutions 10:30 a.m. on Dec. 28 for reconstruction and is owned by Tishman Speyer. The ranging from $19.03 to $19.29 between Corp. (CTSH) G Core Electric Inc. of the roof and interior of the mezzanine tenant was repped by Lewis Miller and Dec. 2 and Dec. 9, in a transaction Lakshmi Narayanan, vice chairman of 360-3 Knickerbocker Ave., Bohemia, at the bathhouse in Crotona Park, Andrew Sussman of CB Richard Ellis, worth $21,775,322. The company now the board at the software company, L.I. Bronx. A prebid meeting is scheduled and Tishman Speyer was repped in- indirectly holds 11,299,200 shares. exercised options on 30,000 shares of Filed for Chapter 11 bankruptcy for Jan. 8 at 11 a.m. at the site. house by Megan Sheehan and Calvin common stock at $2.37 between Dec. 2 protection on Dec. 9. The filing cites Questions regarding this bid should be Farley. Asking rents at the building are G Forest Laboratories Inc. (FRX) and Dec. 3, in a transaction worth estimated liabilities of $1,000,001 to directed to Juan Alban at (718) between $70 and $90. Howard Solomon, chairman of the $71,100. During the same period, he $10 million and assets of $100,001 to 760-6771 or [email protected]. board and chief executive at the sold 30,000 shares at prices ranging $500,000. Among the creditors with Home Shopping Network Inc. has pharmaceuticals company, exercised from $45.55 to $45.78 in a transaction the largest unsecured claims are the GOODS AND SERVICES signed a seven-year, 7,114-square-foot options on 1,200,004 shares of common worth $1,368,800. He now directly Internal Revenue Service, owed G Economic Development Corp. lease covering the entire 18th floor and stock at $13.15 on Dec. 11, in a holds 2,130,000 shares. $80,316.90; and the New York State Seeks proposals by 4 p.m. on Jan. 25 for penthouse of 545 Madison Ave. The transaction worth $15,778,253. Department of Taxation and Finance, consulting services for the NYC Capital 140,000-square-foot building is owned G HMS Holdings Corp. (HSMY) owed $5,644.16. Access Revolving Loan Guarantee by LCOR. Lisa Kiell, Frank Doyle, G Warnaco Group Inc. (WRC) William F. Miller III, director at the Program. An optional informational David Kleiner and Andrew Flint of Joseph R. Gromek, president, chief data processing company, sold 25,000 G Emily Auto Service Inc. session will be held on Jan. 6 at 12 p.m. Jones Lang LaSalle acted on behalf of executive and director at the apparel shares of common stock at $45.21 on 1705 Jerome Ave., Bronx Solicitation documents are available for the landlord, and CB Richard Ellis’ company, exercised options on 150,000 Dec. 3, in a transaction worth Filed for Chapter 11 bankruptcy download at www.nycedc.com/rfp. For William Iacovelli repped the tenant. The shares of common stock at $9.55 $1,130,250. He now directly holds protection on Dec. 14. The filing cites more information or to RSVP for the asking rent was $75 per square foot. between Dec. 3 and Dec. 4, in a 204,343 shares. estimated liabilities of $500,001 to $1 information session, contact Maryann transaction worth $1,432,500. During million and assets of $1,000,001 to $10 Catalano at (212) 312-3969 or Bioisco Inc. has signed a five-year, the same period, he sold 150,000 shares G Drew Industries Inc (DW) million. Among the creditors with the [email protected]. 4,000-square-foot lease at 598 at prices ranging from $43.01 to $43.75, Edward W. Rose III, lead director at the largest secured claims are Acqua Capital, Broadway, owned by Steve Mosery. in a transaction worth $6,475,495. He metal products company, sold 28,922 owed $720,000; and the Internal Seeks proposals by 4 p.m. on Feb. 25 for Nick Zervis and David Gomez of now directly holds 305,975 shares. shares of common stock at prices Revenue Service, owed $14,520. the creation and maintenance of a New GlenMark Realty repped the tenant, ranging from $20.05 to $20.52 between York City building technology and Steve Mosery negotiated the lease G Estée Lauder Cos. (EL) Dec. 4 and Dec. 10, in a transaction G MDS Marketing Group Inc. innovation center. An optional for himself. The asking rent was $28 per Richard W. Kunes, executive vice worth $592,946. He now directly holds P.O. Box 256, East Norwich, L.I. preproposal meeting will be held at square foot. president and chief financial officer at 2,516,180 shares.
Filed for Chapter 7 bankruptcy 11 a.m. on Jan. 25 on the sixth floor protection on Dec. 7. The filing cites of 110 William St. For additional Cunningham Dental has signed a 10- estimated liabilities of $100,001 to information or to RSVP,contact year, 3,145-square-foot lease at 291 $500,000 and assets of $0 to $50,000. Maryann Catalano at (212) 312-3969 Broadway, a 150,000-square-foot DEALS ROUNDUP Among the creditors with the largest or [email protected]. building owned by Sutton Management. unsecured claims are Chase, owed Both the landlord and the tenant were TRANSACTION SIZE $102,582.09; and Citibank, owed OTHER SERVICES represented by David Gomez of COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE $65,000. G Battery Park City Authority GlenMark Realty.The asking rent was Requests qualifications by 4 p.m. on Jan. $35 per square foot. NBC Universal Inc. $13,750.0 Comcast Corp. (51%) SB M&A 29 to lease, operate and maintain Pier A, (Manhattan) GOVERNMENT CONTRACT a 38,725-square-foot building at the RETAIL NBC Universal Inc. $5,800.0 General Electric Co. (20%) SB M&A OPPORTUNITIES southwestern tip of Manhattan. St. Luke’s-Roosevelt Hospital has (Manhattan) Proposal documents are available for signed a 10-year lease for 3,000 square Arch Aluminum & $62.0 Grey Mountain Partners FB M&A Hundreds of potential government download at www.batteryparkcity.org. feet on the ground floor and 2,500 Glass Co. (Manhattan) contracts are available in our area.The For more information, contact Daniel square feet in the basement of 2771 WCI Communities Inc., $38.5 Chetrit Group (Manhattan), SB M&A following are selected contract opportunities Baldwin at (212) 417-4144 or Frederick Douglass Blvd., a 180,000- an Oceanside Property individual investors recently announced by New York City [email protected]. square-foot co-op building. The in Pompano Beach, Fla. agencies.To learn how to sell goods and commercial and garage space of the 525 Third Ave. at 35th St. $28.3 Not disclosed SB M&A services to city government, visit G Department of Youth and Community building is owned by Duvernay + (Manhattan) www.nyc.gov/selltonyc. For a searchable Development Brooks, Pennrose Properties and ideeli Inc. (Manhattan) $22.0 Constellation Ventures (Manhattan), GCI database of current procurement notices, Seeks competitive sealed proposals by Harlem Congregations for Community StarVest Partners (Manhattan) visit www.nyc.gov/cityrecord. Listings 2 p.m. on Jan. 27 for qualified Improvement Inc. Matthew J. Gorman Ener1 Inc. (Manhattan) $20.0 Itochu Corp. GCI are alphabetical by category and organizations to provide Out of School and Joshua W. Gettler of New Street HipLogic Inc. $7.0 Bay Partners, Benchmark Capital, GCI department. Time High School Transition programs Realty Advisors repped the owners, and Stage 1 Ventures, Accrue Sports and in Queens for students entering Grade 9 Daniel Woods of Grubb & Ellis and Entertainment Ventures (Manhattan) CONSTRUCTION SERVICES in September. A preproposal conference Elizabeth L. Martin of E.L. Martin Seeking Alpha Ltd. $7.0 Accel Partners, Benchmark Capital, GCI G City University of New York will be held on Jan. 11 in the second- Partners acted on behalf of the tenant. (Manhattan) DAG Ventures Seeks competitive sealed bids by 11 a.m. floor auditorium at 156 William St. The asking rent was $40 per square foot. Vizu Corp. $6.8 Draper Fisher Jurvetson, iNovia GCI on Jan. 21 for all labor, material and For information, contact Daniel Capital, Greycroft (Manhattan), equipment necessary for the Symon at (212) 513-1820 or individual investors construction of a new modular-building [email protected]. STOCK TRANSACTIONS child-care center, including pedestrian Selected deals announced during the week ended Dec. 5 involving companies in metro New G Health and Hospitals Corp., Queens York. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing access and walkway, at Lehman College The following are recent insider shares of a company with the participation of a financial buyer. GCI: Growth capital investment in the Bronx. A mandatory prebid Health Network transactions at New York’s largest publicly represents new money invested in a company for a minority stake. SB M&A: Strategic buyer conference and site visit is scheduled for Seeks proposals by 4 p.m. on Jan. 22 for held companies filed with the Securities and M&A represents a minority or majority acquisition of existing shares of a company without the 1 p.m. on Jan. 7 at 250 Bedford Park the management and operation of a Exchange Commission by executives and participation of a financial buyer. Blvd. West, room 336, Bronx. Contact parking garage at Elmhurst Hospital major shareholders. It’s believed that source: capitaliq Michelle Bent at (212) 541-0440 or Center. A mandatory preproposal insiders may time transactions to their

18 | Crain’s New York Business | January 4, 2010 CN013424 12/29/09 10:53 AM Page 1

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Media, others, driven to drink

Continued from Page 3 most of their wine needs. “We are are purchased from small vineyards, for the unique selection and the con- looking to change consumer behav- says Tim Zagat, chief executive of venience of home deliv- ior,” he says. the publishing company, which ery.Sherry-Lehmann’s In the past, wine partners with Direct Wine. Cus- three programs range clubs typically tomers are also asked to rate the in price from $198 to We aim to be shipped about two or wines online, and if they don’t like $239 for a case:It can as competitive three bottles a month the taste of a particular bottle, they be a one-time deliv- to consumers. Glob- can deduct it from their bill. ery or on a recurring as stores al Wine and others basis, with no ship- now send out a mini- Unique features ping charge for deliv- mum of six bottles. “we wanted some aspects of our ery within New York The larger quantities club to be unlike any others,” says City.The Times offers two reduce shipping costs, and Mr. Zagat. programs, one for $90 and one the clubs hope that will cut the But there’s one club that could for $180 for half a case, plus number of trips to the local mer- dwarf all others.The wine industry WATER WORLD: $19.95 for shipping. chant. is salivating at the thought of A sea turtle Mr. Adams, however, believes Oprah Winfrey sponsoring a club, swimming at Pricing it right wine club enthusiasts will still shop and some insiders are encouraging the New York “we aim to be as competitive as in stores. “Consumers like to buy her to step in—though she has Aquarium. stores”on pricing,says Simon Lit- wine many different ways. Clubs never indicated publicly that she tler, chief executive of Global won’t change that dynamic,” he will. “It would be awesome,” says Wine. says. Mr. Hinman. “Look at what her Ultimately, Mr. Littler Zagat Wine customers won’t book club does. She would be the hopes, customers will find the club’s products biggest celebrity ever to hit the in- buck ennis rely on the club for in stores, because they dustry.”
NY zoos’ master plan

Credit thaw? Don’t bank on it Continued from Page 1 offs, and closed four exhibitions. plan—a development road map of Though the WCS finished the year Continued from Page 1 easier than offices because govern- Gallery Building. Nearly half of the sorts—calls for 20 new projects to without a deficit, executives there record with the building, doubling ment agencies Fannie Mae and building’s tenants are galleries, and be completed at the animal parks in are worried about city and state its net income since buying it in Freddie Mac are still buying resi- one successful major art exhibitor the next five to seven years. It in- funding cuts this year and have no 2006 for $69 million. dential loans from banks. But other occupies all of the retail space on the cludes a massive Safari Adventure idea if fundraising will improve. Yet after approaching at least 50 segments of the market such as con- ground and second floors. Under exhibit at the Bronx Zoo,where vis- banks for a $33.6 million loan back struction of office buildings and ho- the building’s previous owners, that itors will be able to experience what Aquarium gets first upgrade in February,only four even respond- tels remain moribund. Size, too, can space had been a hodgepodge of it’s like to go on an African safari, “this is not the environment to do ed, and none offered the full be a deal killer. Securing a loan ground-floor shops and second- with the help of a “4-D”theater that a campaign, but we are still moving amount. A revamped proposal sent greater than $300 million is all but floor offices. will offer movie watchers the added ahead,” Mr. Cook says. “Any adap- out to about 70 lenders a month lat- impossible without tapping several Instead of attracting potential dimension of smells and other sen- tive organization always looks to- er also fell short. APF’s broker en- additional lenders to share the risk. lenders, Mr. Perl discovered that in sory elements. ward the future, and I decided we couraged it to take what it could One of the problems is that the a more risk-averse climate,the strat- “This plan provides us with a way needed to do this to envision a future get—a $30 million loan with a big Wall Street firms that dominat- egy frightened them. to look at our mission and think at the end of the economic crisis.” whopping 9.5% interest rate. ed real estate financing at the peak “A lot of lenders didn’t want to fi- about how we interface with our The first major upgrade to get off “I couldn’t believe that was the of the market are now sidelined. nance an industry-specific building guests and how we handle the com- the ground is a $100 million initia- best we could do,” says Mr. Perl. However, for borrowers with and especially didn’t want a gallery plex requirements of caring for the tive to transform the New York It wasn’t until June that he finally good reputations, solid assets and building in a recession,” explains animals,” says Bob Cook, the Aquarium in Coney Island.The city found a lender willing to extend the little debt, there will be funds, as Mr. Perl. Wildlife Conservation Society’s ex- is paying for roughly $65 million of full amount at a reasonable,7% inter- APF proved in the even more diffi- Quietly dropping the building’s ecutive vice president and general the cost for the redevelopment, est rate. APF’s excruciating six- cult market conditions of six name in the second round of appeals director of living institutions. dubbed A Sea Change at the New month saga provides a window into months ago. In the end, it got a loan for financing didn’t help much, Mr. Cook manages all five WCS York Aquarium, which will include the dysfunctional state of the credit from a veteran New York real estate though. With only days left before parks in New York, which attract a new Ocean Wonders exhibit fea- markets, which even six months lat- lender: M&T Bank. the original loan was due, Mr. Perl’s more than 4 million visitors a year. turing new shark tanks, a complete- er have improved only slightly. best credit offer was still the one “What we do is major—it’s not like ly new Conservation Hall, a refur- with a 9.5% interest rate. Nonethe- building a museum or an office bished Aquatheater and a new A return to “old lending standards” Borrowers need less, he turned it down. building,” he says.“We create mini- exterior connecting the aquarium “things are definitely getting In mid-June, he got his break. ecosystems for animals; we create with the ocean. better,” says Russell Schildkraut, a to pony up The offer from M&T arrived, and environments.” The renovations are expected to principal at Ackman-Ziff Real Es- the deal was signed in August. make the aquarium a major cultural tate Group, APF’s financial broker. at least 40% of “It was the most frustrating ex- Ambitious plan; unusual time attraction, increasing the annual Partly, that reflects the fact that perience,” says Mr. Perl. executives at the WCS declined to number of visitors to 1 million from the total collapse of the financial a building’s put a total price tag on the improve- the current 750,000. system that many feared might oc- Barest hints of recovery ments since most of the projects are “A Sea Change at the New York cur after Lehman Brothers’ bank- price in cash these days, most borrowers will in the very beginning stages. But Aquarium will establish once again ruptcy on Sept. 15, 2008, did not still find dealing with creditors frus- some projects will have their own WCS’ leadership in Brooklyn’s cul- happen. trating in the extreme, but there are fundraising efforts, and once the tural environment and anchor the “The world didn’t end,” says at least some signs of improvement. economy improves, the WCS will Aquarium in the renaissance of Steven Kohn,president of Cushman Last summer,for example,the Bank launch a formal campaign to raise Coney Island,” says Steve Sander- & Wakefield Sonnenblick Gold- of China loaned about $120 million money for a number of undertakings. son, chief executive of the WCS. man, a real estate financing firm. APF was helped by its 15-year to finance a sale-leaseback deal for The decision to launch the am- Up next is a new jaguar exhibit at But it has changed. Today, there track record and portfolio of half a 21 floors in the New York Times bitious plan comes at an unusual the Queens Zoo, marking the first are not only far fewer lenders active dozen buildings in the city, with 24 Building on Eighth Avenue. Ex- time, with the zoos—like other cul- time the endangered wildcats will in the real estate market, their stan- W. 57th St. being the most promi- perts hailed it as a signal of interest tural institutions—still reeling from be shown in a local park. The zoo dards are much tougher. Borrowers nent. It was also prepared to be flex- from new funding sources. the financial crisis. Last spring, the hopes to start building it by late this year will need to pony up at least ible in terms of how it pitched its Similarly, government efforts to WCS made news when it “fired” a spring. 40% of an office building’s price in building. restart large-scale real estate lending number of animals at the Bronx Zoo The WCS is also in the design cash, up from as little as 5% at the Still, APF started the refinanc- are also beginning to yield results. because of funding cuts and shipped phase of a new 8,000-square-foot peak of the market in 2007.And any ing process six months before its Late last year, Developers Diversi- them off to institutions around the Wildlife Ambassadors Center at the borrower looking for money for loan was due in June. When its ini- fied Realty Corp. was able to close a country. Bronx Zoo, where visitors will be projects whose success hinges on tial query to lenders failed to garner $400 million commercial-mort- For the last fiscal year that ended able to see the animals up close and rising rents will be hard pressed to much enthusiasm, APF altered its gage-backed securities loan—the June 30, the WCS cut $15 million even touch them; and a new health find lenders at any price. strategy slightly before sending out only such deal done in 2009—with out of its $210 million operating care facility to help animals with se- “We are returning to old lending the second. help from the government’s Term budget. It eliminated 186 posi- vere illnesses. The zoo hopes to be- standards,” says Mr. Kohn. The first proposal highlighted Asset-Backed Securities Loan Fa- tions—15% of the work force— gin the feasibility study for the safari Financing apartment houses is the property’s name,The New York cility program.
through buyouts, attrition and lay- attraction within the next year.

20 | Crain’s New York Business | January 4, 2010 20100104-NEWS--0021-NAT-CCI-CN_-- 12/29/2009 2:51 PM Page 1

18% of laid-off workers are rehired by their former employer BUSINESS LIVES Source: Right Management HOT JOBS EXECUTIVE INBOX

VICE PRESIDENT, Anne Fisher CONSUMER MARKETING COMPANY Nickelodeon Employees not JOB DESCRIPTION Head marketing for Nickelodeon, getting the TeenNick, Nicktoons and more memo? MOST IMPORTANT TASKS Create marketing strategies for EVER GET THE FEELING the properties like SpongeBob carefully worded messages SquarePants and iCarly you’ve been sending to your CREDENTIALS NEEDED Ten people are just not sinking in? years-plus with an ad agency or “Sometimes you can tell by an entertainment company; listening to watercooler chat MBA preferred whether your employees have SALARY Depends on experience understood what you’ve been RECRUITER In-house telling them,” notes Daryl Pigat, who heads up three DOWNSIDE Youth sector is highly competitive New York City branches of staffing firm OfficeTeam UPSIDE Work for industry leader (www.officeteam.com). “If the Nickelodeon is seen in more information hasn’t been clear, than 86 million households in the rumor mill will fill in the the United States and another blanks.” 471 million globally. The vice The communication gap president, who reports to the showed up in a recent chief marketing officer, would OfficeTeam survey be creating campaigns that of managers reach viewers around the world. and employees at the 1,000 —MIRIAM KREININ SOUCCAR largest companies in the U.S.: 69% of bosses say they’ve offered BUNDLE OF JOY: Midwife Linda more detailed and frequent Gaglioti has her bulletins to workers, on topics like hands full at the economy and the company’s EXECUTIVE MOVES Maimonides problems and prospects, and Medical Center, 56% believe that the information Silverstein Properties: the city’s busiest has been of “higher quality” than Martin S. Burger, 44, birthing hospital. was named executive before the recession. Yet only vice president at the leine karjean 37% of employees, or barely more real estate than a third, agree. development and GOTHAM GIGS Why is that? Mr. Pigat thinks investment firm. He the main culprit is the overuse was most recently of e-mail: “Some things are better president and chief executive at Artisan Real Estate Ventures, which he explained in person, where you founded. give people a chance to ask Ford & Harrison: Stephen E. Zweig, 60, questions, than electronically. You was promoted to managing partner of Baby Countdown may also have to repeat things the New York office from partner at the several times to make sure law firm. across the city, New Yorkers donned silly hats, toasted and made everyone gets it.” He regularly polls Ernst & Young: Florence Lentini, 52, Delivering joined the accounting and advisory lots of noise on New Year’s Eve.There were celebrations in the labor his own staffers to find out what services firm as a principal. She was the last and delivery rooms at Maimonides Medical Center in Brooklyn as questions they’d like answered, formerly a principal at XRoads well—minus the noisemakers. ¶ “We don’t allow them,” says Linda and holds town hall meetings Solutions Group. baby of where employees can speak up. John Llewellyn, 43, joined as a principal. Gaglioti, a midwife at the city’s busiest birthing hospital. “We’re A shortage of clear He was previously a principal at the old trying to keep people calm.” ¶ As midnight approaches on Dec. 31, information in-house can cause Deloitte Financial Advisory Services. productivity to hit the skids, RHYS Commercial: Jon expectant fathers are making plenty of noise. “They’re telling their E. Sabrowski, 45, (tax) year— wives to push, push, push,” says Ms. Gaglioti, “because they want Mr. Pigat says: “People waste too joined as a principal much time worrying rather than and executive vice or the the tax credit that year.” ¶ Other couples are vying to deliver the working.” He adds, “Sometimes president of the real city’s first baby of the New Year—a distinction that (as of press time) there really is no problem, and estate firm’s first baby has eluded Maimonides. ¶ In general, New Year’s Eve is a quiet that’s what needs to be spelled investment sales out—in person, if possible, rather division. He was night, says the midwife, though she’s not sure why.“If you’re having of the new than by e-mail.” previously at FirstService Williams, small contractions and you’re preoccupied at a party, you might not where he was a senior managing Might be a worthwhile New director. feel it as much,” she offers. ¶ Ms. Gaglioti became a midwife 15 years Year’s resolution: less e-mail, Goldman Sachs Asset Management: John ago. “It’s all I ever wanted to do,” she says. She joined Maimonides more face time. Melvin, 40, joined as a managing with her best friend from Columbia University’s midwifery program, director and global head of insurance HAS YOUR COMPANY made an fixed income portfolio management. He and the two women helped deliver each other’s children at the hospital. effort to step up communication was previously a managing director at “It’s nice,” she says, “when we can keep it within the hospital family.” during this downturn? Tell us at See EXECUTIVE MOVES on Page 22 —lisa fickenscher www.crainsnewyork.com/execinbox.

January 4, 2010 | Crain’s New York Business | 21 20100104-NEWS--0022-NAT-CCI-CN_-- 12/29/2009 2:52 PM Page 1

RÉSUMÉ REVIEW Growing the holistic way Is your job search all it could be? We ask the experts. Open Center’s prez, really have purposes.I was interest- dance, which was shooting up by NAME SEBOUH YEGPARIAN ed in the legal profession and in 20%. That means that a lot of peo- OBJECTIVE formerly an attorney, helping other people get a deeper ple like what we do, and we didn’t To transfer my international sales and understanding of themselves. I’m have enough room for them. We marketing experience in the recording says goal is to ‘work 69 years old, but I feel like I’m just were renting outside space right and industry into other media businesses, such going at some of these missions. I left, and selling out on classes. as television or the Web less, enjoy more’ retired from the law four years ago. What are your new attendance goals? PROFESSIONAL EXPERIENCE Why did you decide to expand? We were at 10,000 people a year. If  Razor & Tie Entertainment BY ADRIANNE PASQUARELLI When the real estate market was go- our growth curve continues, we ex- Senior vice president, sales, March 2005 to March 2009; vice ing through the roof three years ago, pect to be at 15,000 by the end of president, sales, January 2002 to February 2005; senior director, fter 25 years in SoHo,the we realized that our assets were tied 2010. sales-marketing, December 1997 to December 2001 Open Center has moved on up in bricks and mortar. Led a team that increased gross sales 12-fold in eight years, tripling up.The holistic learning or- We realized we Any new services on tap? market share and resulting in 20 gold and platinum releases  Profile Records ganization sold its former could sell [our We’re doing more long-term Director, national sales/marketing, April 1994 to November 1997 Ahome, a funky condominium at 83 condominium] training for careers,so people can Directed sales/distribution and marketing operation on all new and Spring St., for more than $7 million and use the pro- bring holistic concepts and prac- catalog releases for four labels late last year. ceeds to sustain tices into their real life. We’re In August, the a rental for at doing one on voice dialogue, and EDUCATION popular New least 10 years. programs on tai chi and medi-  Georgetown University, B.S., international management MOVERS & York institu- Another driver tation. We now have a bookstore  Nijenrode, The Netherlands School of Business, international business SHAKERS tion relocated for the move café and a grand hall that we diploma to a 16,000- was atten- sometimes rent out on the second  New York University, certificate in digital media marketing expected in square-foot floor. December 2010 space at 22 E. Walter EXPERT ADVICE 30th St., ex- Have you raised your prices? Beebe panding its Right now we’re holding Network with individuals at your previous employers. Also check out the size by al- prices, so that particularly alumni lists from the schools you attended and find anyone in the most in this down economy,peo- entertainment field. Call them up, and offer to buy them a cup of coffee. 50%. Now, Walter Beebe, the ple who may need this ap- To improve your résumé, include your total years with each employer next current president and one of proach to life more than to the company name, instead of making the reader add them up: for example, your years at Razor & Tie are 1997 to 2009. Graduation years the nonprofit’s founders, has ever can come in and make are not always needed; however, it would be helpful in this case. And big plans for growth. use of it. make your résumé fit onto one page. — , career services expert, Vault.com How does a corporate attorney Did you make a New Year’s connie thanasoulis-cerrachio end up heading a holistic resolution? To contact this candidate or to be featured in “Résumé Review,” e-mail us institution? Work less and enjoy more, at [email protected]. You make a mistake in look- after two years of the op- ing for a purpose in life—we posite!

EXECUTIVE MOVES company as senior vice president of continue in his role as chairman and InterMerchant Securities: Craig Boden, partner in the law firm’s bankruptcy marketing and third-party strategic chief executive at Mancini Duffy, an 35, joined as head of the investment department. She was previously counsel. alliances. She was previously the owner architecture and interior design firm. banking department. He was Andrew C. Finch, 41, was promoted to Continued from Page 21 of EGP Enterprises. WE tv and Wedding Central: Jennifer previously in investment banking and partner in the litigation department. He Deutsche Insurance Asset Manage- Cooley Godward Kronish: Jeffrey L. Cohen, Robertson, 41, was promoted to senior institutional sales at Laidlaw & Co. was formerly counsel. ment. 34, was promoted to partner in the vice president of digital media and Doremus: Joanna Berke, Lubin School of Business at Pace Wildlife Conservation bankruptcy and restructuring practice. business development. She was 37, was promoted to University: Tom Jones, 71, was named Society: Bertina He was formerly an associate. previously a vice president. senior vice president director of the Center for the Study of Ceccarelli, 45, was Ian R. Shapiro, 39, was Andrea Bell Macey, 37, was promoted to and director of client International Accounting Standards. He appointed executive promoted to partner in vice president of digital media and services at the business was previously vice chairman at the vice president for the litigation business development from director. communications ad International Accounting Standards global resources. She department. He was Carter Ledyard & Milburn: Brooks S. Clark, agency. She was Board. was formerly senior previously an 43, joined the law firm as a partner. He previously senior vice Collective: Margee Challa, 43, joined the vice president of associate. was formerly counsel at Kaye Scholer. president and account director. production house as a director. She was institutional advancement at United American Institute of Nancy J. Friedman Public Warner/Chappell Music: Ryan Press, 30, formerly life and beauty director at Way of New York. Architects New York Relations: Jennifer was named senior director of urban Good Films. Kenn Viselman presents: Eileen Potrock, Chapter: Anthony P.Schirripa, 55, was Maguire Coughlin, 37, A&R at the music publishing arm of Dechert: Brian E. Greer, 30, was 54, joined the global entertainment appointed president for 2010. He will joined as managing Warner Music Group Corp. He was promoted to partner in the business director. She was most most recently at Press Conference restructuring and reorganization group recently a senior vice Management, which he founded. at the law firm. He was formerly CORPORATE LADDER president at M. Silver LeClairRyan: Neil J. Ekblom, 50, joined counsel. Associates. the law firm as a shareholder in the tort MSG Media: David E-MARKETING EXPERT MOVES TO NEW FIRM New York Hall of Science: Martin Duus, defense group and will lead the medical Clark, 39, was 56, was appointed vice president of malpractice defense team in the New RACHEL CHOU, 42, was appointed chief marketing officer at Open Road appointed executive institutional advancement. He was York office. He was previously a partner vice president of sales. Integrated Media, a content marketing company for e-books launched in previously director of strategy at Clausen Miller. He was most recently October by Jane Friedman, the former chief executive of HarperCollins development at Eyebeam Art and Scott W.Bermack, 45, joined as a partner at Joost.com, where he Publishers, and film producer Jeffrey Sharp. Ms. Chou moved to Open Road from Technology Center. in the tort defense group and as a was a founding HarperCollins, where she served as vice president of online Lotame: Eric Porres, 34, joined the member of the medical malpractice member. product development and launched AuthorAssistant, audience marketing platform as chief defense team. He was previously a Catalyst:SF: Cody R. Duval, 35, was a digital program that allows authors to deliver marketing officer. He was most recently partner at Callan Koster Brady & named general manager of client a founding partner at Underscore Brennan. services, a newly created position at multimedia content to corporate and partner Web Marketing. J.H. Cohn: Ronald A. Kaplan, 46, joined the marketing-services consulting sites. Previously, she worked for Scholastic.com and Juvenile Diabetes Research Foundation: the accounting and consulting firm as a firm. He was previously a freelance R/GA. Ms. Chou brings plenty of online content and Karin Hehenberger, 37, joined as senior partner and director of the firm’s real client management and business product development experience to her new role. She will vice president for strategic alliances. She estate industry practice. He was most development contributor at be responsible for developing the company’s Web- was most recently at Johnson & recently at RSM McGladrey, where he Mechanikal. marketing platform and making use of social media Johnson, where she was vice president of was a partner. —maia blume metabolic strategy and business Traxi: Thomas J. Devitt, 42, was named and other emerging technologies to allow authors to development. managing director at the financial connect with their readers and enhance marketing Seyfarth Shaw: Simeon Spencer, 43, joined advisory and consulting firm. He was EXECUTIVE PROMOTIONS and sales efforts. Open Road Integrated Media the law firm’s international labor and previously a director at BMO Capital The fastest way to get an announcement into opened its doors in October 2009. employment practice group as a partner. Markets. Crain’s is to submit details online. Fill out the form —maia blume He was most recently a partner at Paul Weiss Rifkind Wharton & Garrison: at www.crainsnewyork.com/submit. The Morgan Lewis. Alice Belisle Eaton, 35, was promoted to Executive Moves column is also available online.

22 | Crain’s New York Business | January 4, 2010 20100104-NEWS--0023-NAT-CCI-CN_-- 12/29/2009 2:53 PM Page 1 chemex / INSATIABLE CRITIC will hold a workshop from 8 a.m. to flickr.com Gael Greene 1 p.m. at CUNY Graduate Center, THE 365 Fifth Ave., conference level C, on social integration into the marketing, communications and service platforms. WEEK The fee is $195. For additional information, contact (800) 830-6687 or How now, Obao? [email protected]. AHEAD SEMINARS TUESDAY, JANUARY 12 JAN. 11-17 The NEW YORK CPA FORUM will hold a Huynh’s latest breakfast seminar on estate planning in economically turbulent and politically INFORMATION SESSIONS uncertain times from 8 a.m. to 10 a.m. at WHAT HE’S The on-the-move chef MONDAY, JANUARY 11 UBS Building, 1285 Sixth Ave., 14th- Join WIBO from 6 p.m. to 8 p.m. at Bed- floor conference center. Fees are $60 in READING premieres midtown Stuy Restoration Plaza, 1368 Fulton St. advance and $75 at the door. For more to find out if a business of your own is information, call (212) 246-3082 or JERRY HULTIN, president of the noodle shop right for you. For details about the free e-mail [email protected]. Polytechnic Institute of New York session, call (212) 684-0854, ext. 0538, University, is plowing through admitI’m mesmerized by the or e-mail [email protected]. CULTURAL EVENTS FRIDAY, JANUARY 15 Pick William Hogeland’s The Whiskey audacity of Michael Huynh’s NETWORKING RECEPTIONS of the Rebellion: George Washington, feverish empire building. Spend an evening with the TUESDAY, JANUARY 12 VIENNA PHILHARMONIC week Alexander Hamilton, and the Landlords are begging him to NETWORKING FOR PROFESSIONALS will ORCHESTRA at Carnegie Hall Frontier Rebels who Challenged take their abandoned restau- steven richter COOL AND HOT: spicy beef salad hold a reception from 6:30 p.m. to 8:30 for a concert of Beethoven, America’s Newfound Sovereignty. Irant spaces,he confides,and he must p.m. at Galway Hooker Pub, 7 E. 36th Schoenberg and Wagner. The concert The subjects covered—violence, leap now before the economy turns. St. The fees are $20 for members in begins at 8 p.m. and takes place in the alcohol, taxes and the creation of I’ve loved his Vietnamese cooking advance, $30 for nonmembers in advance Stern Auditorium at 881 Seventh Ave.; OBAO federal authority—are a far cry from since I first tasted his haunting yam and $35 at the door for all. For further tickets range from $33.50 to $219. Go 222 E. 53rd St. the tech, science and engineer- soup at Bao 111. details, contact (212) 227-6556 or online to www.carnegiehall.org to (212) 308-5588 ing courses I’ve followed his trail of broken [email protected]. purchase tickets or get more details. that make up most of www.obaonyc.com NYU Poly’s curriculum. Mr. Hultin, hearts—the lovelorn restaurateurs PROGRAMS & WORKSHOPS SATURDAY, JANUARY 16 he’s left behind—from Drew Nie- ½ who found the book while browsing TUESDAY, JANUARY 12 The NEW MUSEUM presents an on his Kindle, chose it specifically porent of Mai House to Bun/Soho, CUISINE Pan-Asian Stop by the NEW YORK PUBLIC LIBRARY exhibition of larger-than-life still lifes before fleeing to a partnership at Bar- for a program on reshaping your career and installations by Urs Fischer. The because it seemed different. Bao, quickly cutting out to create PRICE RANGE Entrées $10-$16 for today’s economy from 6 p.m. to museum is located at 235 Bowery and is So, has the tech school presi- dent given up on paper books? Baoguette, the burgeoning Viet- HOURS Mon.-Sat., 11 a.m.-11 p.m. 7 p.m. at the Science, Industry and open from 12 p.m. to 6 p.m. on the namese sandwich shop concept for Business Library, 188 Madison Ave., weekends. General admission is $12, Mr. Hultin says that nothing beats his wife,Thao Nguyen,with a sidestep RESERVATIONS Not accepted room 018. The program is free. Call and admission is $10 for seniors, $8 for a bookstore for finding a range of to the West Village and the sensa- (917) 275-6975 for more information. students and free for members and titles, but he prefers the Kindle NOISE LEVEL Lively guests under 18. For more information, tional little Pho Sure,followed byBia WEDNESDAY, JANUARY 13 for zeroing in on an author. “It’s I can’t wait to return. call (212) 219-1222. Gardenonthe Lower East Side,Spot, The BUSINESS DEVELOPMENT INSTITUTE —maia blume pretty handy,” he says. the dessert shop on St. Mark’s Place I will definitely go back. His students would be proud. with Bao Ong,and now Obao,first of I’ll let them simmer awhile. To view Crain’s full calendar listings, go to www.crainsnewyork.com/events —KIRA BINDRIM his proposed noodle shop collection. NO HATS Never again. Barely over jet lag from two weeks in Paris, the two of us troop into the narrow little midtown storefront that ey mustard-glazed spareribs wrapped houses Obao. We’re meeting our around sugar cane skewers are too Vietnamese friend Truyen, a cham- sweet for me.And I can’t bring myself pion of Michael’s and a confidante of to finish a blowsy summer roll—with his wife’s. I’m not sure Michael’s ex- a skimpy half shrimp slice,some wilt- pecting me, but he’s there in the de- ed herbs and too much vermicelli. serted front area with its open What shall we have next? We are kitchen and as yet unlicensed bar. debating, when out of the kitchen He settles the three of us into a come Michael’s choices for us: mar- compact booth alongside long com- velously crusty Bangkok chicken to munal tables in the dark back room, douse in fragrant anchovy sauce, and also spottily occupied this Thursday barbecued pork chops Vietnamese evening. Strips of mirror set in the style, cut thin and caramelized. A wall and lightbulbs inside a picture bowl of sticky rice with bits of chick- frame feel slightly shabby contrast- en and sausage, and two covered ed with the charm of Pho Sure and dishes, one holding garlicky water the clever touches at BarBao. He’s spinach, the other, sautéed pea We call it Hope Lodge. the designer; the contractor, too. shoots, are parked alongside. Cancer patients call it Soon enough, platters arrive, but What we crave now is something no serving spoons. I’m put off by sweet. The house is just starting to grayish thins of beef, but I’m quickly add desserts. Tonight’s effort is bat- seduced by the powerful tangle of fla- tered fried banana stuffed with wal- vors and textures in the spicy beef nut paste next to a mound of weirdly salad: cucumber cool, pineapple candied walnuts. Very nasty. Birthday sweet,two kinds of mint,roasted rice, Saturday night, we are back with Headquarters. pomelo, an essence of coconut, pick- friends.Alas,the Vietnamese chick- led carrot tang, peanut crunch and— en salad with cabbage slaw does not watch out—little shocks of torrid red come close to the beef salad dazzle. chili. Radish noodles are the same Oddly grizzled spring rolls might be HOPE LODGE NYC A world with more birthdays is literally right around the corner. Located gummy little morsels I love as daikon forgiven, but not the two leaves of JEROME L. GREENE FAMILY CENTER just steps from Penn Station, Hope Lodge gives cancer patients and their caregivers a free home-away-from-home while they undergo cake in BarBao’s duck hash, equally dead lettuce our server suggests we cancer treatment. It’s the best place in New York to fi nd comfort, as addictive as Pho Sure’s pan-fried wrap them in. But the Pad See Iew, support and the people who know that another birthday is truly rice cake with duck sausage. Korean short ribs with wide noo- something to sing about. To learn how you can support New York’s Huynh’s luscious spin on classic dles, mustard greens and green birthday headquarters, visit HopeLodgeNYC.org.

pad Thai is to weave in smoked tofu mango kimchee, restores my faith. I American Cancer Society, Inc. 2009 © and dried red snapper instead of fish hope the key is ordering well, but I paste.Then,rather than stir-fried egg, suspect that it’s having Huynh him- he sets a quivering poached orb on top self in the kitchen. to smoosh in,creating an unexpected silken stickiness. Palm sugar and Copyright © 2009 by Gael Greene. tamarind add a faint sweetness.Hon- Syndicated by www.insatiable-critic.com.

January 4, 2010 | Crain’s New York Business | 23 CN013409 12/10/09 6:06 PM Page 1

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