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And Louder NYC’S Tourism Biz Braces for Damage Citywide Minimums from Euro’S Tumble Sought Despite Armory PAGE 4 Fiasco, Mayoral Hostility

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And Louder NYC’S Tourism Biz Braces for Damage Citywide Minimums from Euro’S Tumble Sought Despite Armory PAGE 4 Fiasco, Mayoral Hostility 20100524-NEWS--0001-NAT-CCI-CN_-- 5/21/2010 8:08 PM Page 1 INSIDE It’s Tea, TOP STORIES and no This trash collector sympathy, is piling on, even as for Albany —Alair Townsend the biggies pull out ® on the budget PAGE 2 mess. Page 11 New York & Co. taps VOL. XXVI, NO. 21 WWW.CRAINSNEWYORK.COM MAY 24-30, 2010 PRICE: $3.00 new CEO for fashion remake Living-wage PAGE 2 debate gets State tax breaks play starring role in broader— city’s film fade-out PAGE 3 and louder NYC’s tourism biz braces for damage Citywide minimums from euro’s tumble sought despite armory PAGE 4 fiasco, mayoral hostility Forget about stocks BY DANIEL MASSEY or bonds or gold. a fierce debate over city-mandated Timber’s your bet wage levels that derailed the redevelop- IN THE MARKETS, PAGE 4 ment of the Kingsbridge Armory in the Bronx late last year is set to spread across the five boroughs.A bill that will force projects that receive any subsidies from the city to pay wages of at least $10 an hour plus benefits for all jobs they create is slated to be introduced in the City Council on Tuesday. The introduction will kick off a city- wide push by a coalition of labor, com- See LIVING on Page 30 BUSINESS LIVES EXPANDING: Cathie ‘Shadow’ Black is launching GOTHAM GIGS new titles and bringing in fresh Wendy Wild is crazy. condos dim talent at Hearst. About radio, that is P. 33 G ANNE FISHER on how redux sale outlook a teen entrepreneur’s boot camp works P. 33 G MOVERS & SHAKERS A Vast supply of units force behind Museum of African Art P. 34 lurking just off market G GAEL GREENE gets could slam prices tamed at The Lion P. 35 Hearst’s in the Black Mag trailblazer grows ads in a recession, BY AMANDA FUNG INDEX a little over two years ago,SDS Procida suspended plans to market The NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _7 although online is still a work in progress Dillon, its 83-unit Hell’s Kitchen con- THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 do, when residential real estate tanked. SMALL BUSINESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 magazine insiders, but she could just as well have Months later, it faced a second setback: BY MATTHEW FLAMM GREG DAVID _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 been celebrating Hearst’s upbeat first half. the collapse of the project’s lender. Through a combination of long experience and With financing for The Dillon now in REAL ESTATE DEALS PLUS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _14 at a party atop The Standard Hotel last week, in steel nerves,the 66-year-old Ms.Black proved that it place and condominium sales picking CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _26 a sleek gray and white Michael Kors dress, Hearst is possible to grow a business through the earthquakes up, the developer finally put the units FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _28 Magazines President Cathie Black looked about as of an economic downturn and a digital transition. on the block three weeks ago. EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _33 happy as a print publisher could be in 2010. She was Ten of the company’s 14 magazines posted ad The Dillon’s owners have lots of THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _35 there to introduce the new editors of four titles to a page gains through June, with signature titles Cos- company.Their building is one of more glittering crowd of marketers, media buyers and See HEARSTon Page 30 See SHADOW on Page 30 21 5 TOP PUBLICLY HELD COMPANIES J.P. Morgan Chase ousts Citigroup as New York’s No. 1. ELECTRONIC EDITION News Corp. dethrones Time Warner as city’s largest media company. NEWSPAPER Managers (the good ones) strut their stuff. And more. PAGES 17-25 71486 01068 0 20100524-NEWS--0002,0003-NAT-CCI-CN_-- 5/21/2010 8:07 PM Page 1 tion two years ago, Mr. Bergamini and his IN BRIEF partners hauled it in for $13 million.In com- Carting company ing weeks, Action will close on the purchase LEHMAN BROTHERS PAID ITS BANKRUPTCY of its first two waste-transfer stations and a LAWYERS AND MANAGERS $794 MILLION IN dozen trucks from another out-of-state the 19 months since it collapsed in September waste industry giant,Republic Services Inc., 2008, according to Securities and Exchange takes bigger haul that wanted out of New York City. Commission filings. Restructuring firm In the three years since Mr. Bergamini Alvarez & Marsal leads the payment stakes, became chief executive, Action has be- taking in $277.4 million in fees through April. come one of the two largest of the city’s 70 Weil Gotshal & Manges, Lehman’s lead Action buys rivals, pushes for higher rates or so carting businesses, not including the bankruptcy lawyer, earned $182.3 million. 180 other companies that pick up only Lehman has said that it may take another five from a senior center on West 49th Street construction and demolition debris. The years to unwind the firm and sell off all of its BY ERIK ENGQUIST and convicts from Midtown Community Action Carting logo has become ubiqui- assets. Court, and turns them into revenue, good- tous on trash bins across the city. ronald bergamini proves the old saying will and productive employees,respectively. Mr.Bergamini and partner Michael Di- THE CITY ECONOMIC DEVELOPMENT CORP. IS that one man’s trash is another’s treasure. Its appetite for society’s unwanted ap- Bella rounded up private equity investors in ISSUING A REQUEST FOR PROPOSALS TODAY His company, Action Environmental plies to business deals,too:When Houston- 2007 and bought a majority interest in seeking a developer to build out a Harlem site, Group, collects beer cans from Yankee Sta- based behemoth Waste Management Inc. Newark-based Action for $7 million. The dubbed Mart 125, which will become home to dium and Citi Field, food waste at no cost decided to sell off its city collection opera- Waste Management deal nearly tripled the National Jazz Museum in Harlem and Action’s size,boosting revenues to ImageNation Sol Cinema.The vacant, city- $65 million from about $23 mil- owned, 10,000-square-foot site—located at lion.They have since edged up to 125th Street between 7th and 8th avenues— $70 million, despite the worst re- would enable the winner to build up to 67,000 cession in decades, and will sur- square feet, including a 2,500-square-foot café pass $100 million after the Re- or retail space. public purchase takes effect. The Republic deal is a rarity TOTAL RADIO ADVERTISING REVENUE GREW for city haulers—few own trans- 6%, TO $3.7 BILLION, IN THE FIRST QUARTER fer stations. For Action, it will of 2010 compared with the prior-year period, mean simpler logistics and fewer according to the Radio Advertising Bureau. middlemen. For the same reason, The results marked the first period of radio Action last year built a $5 million revenue growth in two years and the largest recycling center in the Bronx, percentage increase since the third quarter of where it separates and bundles 2000, when revenue rose 8%. aluminum, cardboard and other materials for sale to China. Cart- ing is “really a logistics business,” Mr. Bergamini says. BY THE NUMBERS The company’s growth is not without risk. New York City is a Weekly shift of the city’s economy notoriously difficult place to do HERE + THERE It’s not just the Euros that are business, but it is especially so for struggling. A new high for the proportion of mort- carters, who must navigate addi- gages in foreclosure and a dip in the consumer tional bureaucracies established price index signal problems at home, too. when former Mayor Rudy Giu- liani and former Manhattan Dis- $62M 13,938 10 trict Attorney Robert Morgen- VALUE OF NYC GIGAWATT- NUMBER OF thau squeezed the Mafia out of TALKING TRASH: the industry in the late 1990s.
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