$200M Tug-Of-War Looming Downtown Primaries' Deadly Fallout

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INSIDE Michael Gross TOP STORIES on NY’s Apartment rentals battling are slowing again. news Freebies, anyone? ® barons PAGE 2 P. 2 Runway shows rewind to VOL. XXVI, NO. 38 WWW.CRAINSNEWYORK.COM SEPTEMBER 20-26, 2010 PRICE: $3.00 looks from the 1970s PAGE 2 $200M Typically quiet tug-of-war changing of the guard at looming Wiley & Sons PAGE 3 downtown If you think it’s bad on Wall Street now, Utilities face off with just wait culture groups and others in battle over PAGE 3 unspent 9/11 funds Algonquin’s Round Table sets a place BY THERESA AGOVINO for Marriott as a government agency set up to NEW YORK, NEW YORK, P. 6 help rebuild Ground Zero and environs after the Sept. 11 attacks nears the end of its mission, a major battle is building over the fate of the approximately $200 million that’s still left in its kitty. BUSINESS LIVES On one side are Consolidated Edi- son and Verizon,which say the vast majority rightfully belongs to them because it came from a fund that was primarily earmarked for utilities. On the other, a group of people are arguing for a broader use of the funds.Their positions were hugely bolstered earlier this month when the board of the Low- er Manhattan Development Corp.voted to allow the cash to be used for a multitude of purposes. GOTHAM GIGS See DOWNTOWN’S on Page 30 Meet a different kind of delivery guy P. 33 G ANNE FISHER

on buck ennis social networking for budding tycoons P. 33 Primaries’ G MOVERS & SHAKERS Adam Klein is making deadly beautiful eMusic P. 34 G GAEL GREENE takes a bite out of Eataly P. 35 NEW FACE OF LABOR fallout From busboys to nannies to taxi drivers, GOP Chairman Cox INDEX loses—big-time. One IN THE MARKETS ______4 workers discover fresh ways to organize winner: gay marriage THE INSIDER ______8

REAL ESTATE DEALS ______12 work force,”the 62-year-old Barbados native recalls BY DANIEL MASSEY BY ERIK ENGQUIST NEIGHBORHOOD JOURNAL ______14 thinking. The signing marked the climax of a six-year cam- FOR THE RECORD ______15 late last month, as Gov. David Paterson signed paign by Domestic Workers United to gain long- last week’s election was a disaster CLASSIFIEDS ______27 the Domestic Workers Bill of Rights into law at a denied rights for nannies and housekeepers.But the for some candidates—it’s hard to imag- HOT JOBS ______33 Harlem community center, Barbara Young, a nanny 200,000 workers who stand to gain from the new ine Rick Lazio resurrecting his political EXECUTIVE MOVES ______33 for 17 years, could barely contain her glee. law are not the only group whose prospects look career after his crushing defeat by Carl

THE WEEK AHEAD ______35 “After so many years and so many people de- brighter. Organizations that represent workers Paladino in the Republican gubernato- pending on us, we are now recognized as part of the See THEY’RE THE NEW on Page 30 rial primary—but it also damaged some who were not on the ballot.The effects will likely reverberate in November’s 38

5 SPECIAL REPORT: election and beyond. The demise of Mr. Lazio, who was WHY CAN’T THIS SMALL his party’s formal nominee, dealt what P. 17 may be a fatal blow to state Republican ELECTRONIC EDITION BUSINESS GET A LOAN? Chairman Edward Cox. Mr. Cox had recruited Suffolk County Executive NEWSPAPER Plus: Top Women-Owned Companies See PRIMARIES’ on Page 8 71486 01068 0 20100920-NEWS--0002,0003-NAT-CCI-CN_-- 9/17/20107:01PMPage1

bloomberg news O the bles mount,while Murdoch’s trou- nal’s lossesand theJour- nates,as war thatfasci- the broadsheet News man’s Zucker- Mort York Post tween his tabloid warbe- ing wasthe newspaper- local for denials. It’s war Forget the Street Journal of Jr.’s OchsSulzberger Arthur inthelatestissue claim Times theTimes But clearly, equivalent ofself-cutting. arethe deathofprint and regular whingingabout oftheiPadPage 1idolatry the paperandwhetherits and buyouts haveenfeebled ofthelayoffs whetherall tive, iseffec- management style Jr.’sArthur encounter-group arguewhether can ther’s.One compared withhisfa- packs whathispaper describes aptly “Pinch,” despised nickname, snipedthathisson’srecently agree withthebloggerwho Sr.’s Sulzberger Times “Punch” third wife’s socialaspirations. Dow Jonesstatusandhis more reflective ofhispost- enue—a stage Av- ment onFifth apart- Rockefeller what wasoncea gade now livesin rene- mer SoHo Thefor- evolved. has Murdoch sosimple. ally things are notre- But wolves. ternet lic desire andIn- verse besiegedbycoarsepub- of rectitude inamediauni- thelastbastion , by theTimes tablished orderepitomized sessed withtopplingthees- ob- down-market Visigoth Murdochasa tive casts tospike. price stock itsbatteredstake caused wasuppinghis Slim Carlos billionaire mor thatMexican thatamere ru- destabilized 2 VIEWPOINT | Crain’s New York Business I worked for Arthur Ochs I worked forArthur The conventionalnarra- Until Murdochboughtthe Vanity Fair Times .Now,it’s and couldn’t helpbut Daily is so New Times, and are notatwar. Murdoch’s by tigation ofvoicemailhacking inves- a wayIhopeheadmired.The Times ne recent sunday, that hisTimes to come off the gloves expect goes, Once Punch MICHAEL GROSS went after Rupert Murdoch in Murdoch Rupert went after has | 0 2010 20, September eso the World News of other books. , Gallery Rogues’ istheauthorof Michael Gross begins. That’s when thereal broadsheet war out: watch though, goes, OncePunch Pinch. dare against stageaputsch will one inthefamily alive,no Aslongashe’s five years. He’s forabout ill beengravely waterisPunch. that dirty that thedamholdingback suspect .I fortheJournal doch from Mur- who got$5billion outliketheBancrofts, sell gotowarand will Sulzbergers to theirshared assets.” ofdecisionsrelating plexity families “manage thecom- lined withtheJournal phere endedonabirdcage streaked across theblogos- lowers thebarforMurdoch. powerful andproducts,which the promoting thepopular, they’re just Too now, often ed journalismandpandering. balance betweenhigh-mind- a tostrike tions usedtotry sec- The editorsofitssofter shortcomings. it alsohasnew Many haveaskedifthe A recent animationthat , the drama in thedrama , Journal and Murdoch’s Wall WSJ high-net-worth generational, helping multi- in who specialize ers havehired, theSulzberg- says the counselorsVF fate? Probably not papers from that news- American keep thelastgreat can What . Times The New York etgtos But vestigations. mounting bigin- and hard news incovering pack leadsthe still great websiteand the where it’s due— must givecredit sized. mains super- self-regard re- asits even ished, been dimin- 740 Park re one True, Times and the belied and has a Return of rental freebies? conservative hemlines conservative Boogie nights and and colorful styles. were featuring bright stripes Jacobs to Tory Burch (above) ooo,fashiondirector atBloom- Solomon, Stephanie says change insilhouette,” designers. from several necklines andplunging stripes bright leg pants, last concluded Thursday,featured wide- atNew ways York Fashion Week,which Therun- 2011. comespring pression, offree decade lovedriven andself-ex- thedisco- tothe1970s, style-rewind consumers should BY ADRIANNE PASQUARELLI value inspringshows hybrid ofluxuryand consumers with Designers entice DESIGNERS stopped giving concessions,” says Gary says stopped givingconcessions,” we spring,so in thelatewinterandearly month’s free rent. tive tenantswiththepromise ofone prospec- tostopluring lords inthecity oneofthefirstland- Glenwood became 24 residential buildings. as incentivetorent inatleastfourofits therecession upduring began picking atabthatit broker fees, tenants’ paying buildingsinthecity,stopped apartment ofluxury aprominent landlord ment, GlenwoodManage- six weeksago, BY AMANDA FUNG more concessions vacancies mayforce Uptick inresidential THAT ’70 “The biggest news isthatthere’s biggestnews “The a “The market started gettingbetter market started “The That movefourmonthsafter came from Marc S SHOW get ready fora Wu (above). of Cynthia Rowley and Jason comeback in the collections waisted trouser makes a THE WIDE-LEGGED, BIG PANTS ati eta oe,asignthatfashion last inneutraltones, looksthat demand forvaluebyoffering signers are alsogivingintoconsumers’ de- For now, Retail. cording toKantar ac- the weaknumbersinAugust 2009, store saleswere upamodest3.4%over lowed aso-sosummer—August same- Fashion Week fol- mains tobeseen. and ontothesalesfloor. force consumersoutoftheirclosets itemsrepresent to new aneffort Such thenation. nomic malaiseaffecting from theeco- themselves unshackle to showrics thatdesignersare trying fab- andluxurious ’70s-inspired styles retailers.” wardrobe—and for that’s goodnews you needtorefresh your silhouette, there’s in achange “When ingdale’s. high- many brokers saythatthedisappearing Infact, too faraheadofthemarket. havegotten iflandlords ple wondering hassomepeo- pause intheirshrinkage the 2009, of 2.46%hitinFebruary are below well still thenear-peaklevel eight months. increase logged in monthly Thatwasthefirst Habitats. Citi largest rental brokerage, fromto areport thecity’s vacancies according the monthbefore, upfrom 0.88% reached 1.1%, Manhattan, In rates. idential vacancy res- inaverage slight—uptick inAugustport ofasurprising—though duetoare- beginning tohavedoubts, remain strong.” hopefulthatthemarket will wood.“I’m anexecutivedirector atGlen- Jacob, Whether those efforts bear fruit re- bearfruit thoseefforts Whether Fresh pants, itemslikebell-bottom Even though vacancy rates Even thoughvacancy are somelandlords however, Now, chiffon. lavish use of silk and Packham (above) made Max Azria and Jenny DESIGNERS LUXURY FABRICS like BCBG runways. Rodriguez (above) filled the Nanette Lepore and Narciso from designers such as LENGTHS CALF-GRAZING FALLING HEMLINES time in8months upforfirst rate, vacancy AUGUST 1.1% BAD SIGN those not completely onboardwiththe those notcompletely Even Burch rode theretro aswell. train Derek and Lam Tory from the’70s. vivid colorsandvamped-uplooks lastMondaywasshowingcollection whointhedebutofhisspring Jacobs, state oflimbo.” “Fashion isina Stylesight. ing firm women’s editorattrend track- ganaro, JoannaMan- says either,” ting better, butthey’re notget- not gettingworse, lighteneduptheirlooks. sion withblack known fortheirobses- Donna Karan, like Eventhose, to Alexander Wang. from DennisBasso lections ofeveryone peach andnudeshowed upinthecol- blush, White, about thecomingyear. houses andretailers remain cautious with roughly 60%inDecember.with roughly concessions,compared month included itrented last that 20%oftheapartments CitiHabitats reports Similarly, dent. have tocutrents—already down 15% might dole outconcessionsagain.They lords couldbeforced todomore than land- Iftheslowdown happens, son. slow sea- fall ket asitentersthetypically concessions are underminingthemar- That didn’t seemtoinhibitMarc saythatthingsare reports “Market adod ieEute n.and EquitiesInc. Landlords Time See BOOGIE NIGHTS onPage31See BOOGIENIGHTS ei,thebrokerage’s presi- Lewis, accordingtoMarc a yearago, pared with75%ofitslistings com- with anyincentives, Metro’s rental listingscome 21NY a thirdofCentury just tighten thescrews.Today continuedto landlords er, from pre-recession levels. inManhattan on average See RENTFREEBIESonPage29 vrtesme,howev- thesummer, Over embraced embraced lighter hues. goodbye to black and Alexander Wang said Karan (above) and DESIGNERS LIGHT NEUTRALS such as Donna

getty images getty images 20100920-NEWS--0002,0003-NAT-CCI-CN_-- 9/17/20107:01PMPage2 Wall St. can bank on problems company byitscover Don’t judgeabook get anyworse?Justwait layoffs coming.Couldit Plunging profits.More Trading-desk breakups. and currentPeter chairman isahis- Wiley Younger brother stepped down in2002. divisionuntilhe book editorinthecollege andatext- wasbothchairman descendant, asixth-generation II, Wiley Bradley ters. ence around thefirm’s Hobokenheadquar- another era. workplace thatseemslikeathrowback to anda family-friendly over thepastdecade doubled thathasnearly price astock result: asbothstableandcutting-edge.The nized recog-multifaceted businessthatiswidely buildinga in theprocess quietly knitting, mer’s toits stuck bookshasresolutely travel the low-key publisherof undDrang,the Sturm tosleep. observers thatitcouldhaveput tion wassoorderly thetransi- CEOs inits203-yearhistory, 10other companythathashadonly run Asbefitsafamily- retirewho will inApril. Pesce, succeeding William lishing house, executiveofthepub- named thenextchief was Inc., &Sons veteran ofJohn Wiley an18-year Smith, Stephen week, last BY MATTHEW FLAMM tend to be failed Silicon tend tobefailedSilicon Valley startups. butthey ontheirbooks, less thanthecash dumped-upon companiestobe valuedat It’s not unusual for stored intheirvaults. forlessthanthecash trade lon—currently Citigroup andBank of New York Mel- BankofAmerica, institutions—including thatsharesby investorstobesogrim of21 andlayoffs. a fresh waveofrestructuring atmostbanksare abouttotrigger declines whilebigprofit andrevenue Washington, divisions inresponse todirectives from trading proprietary mantle theirlucrative Banks are beginningtodis- gin towearoff. rates thatkept Wall alivelastyearbe- Street bailoutsandzero-percent interesternment andtheadrenaline shotsofgov-prosperity togrow to ability theirwayback banks’ economystrains as thecrummy down even wall ishurting—big-time. street BY ELSTEIN AARON Quite profitable, too Quite profitable, cutting-edge shop. Wiley hasbecome Low-key, family-run Family membersare aregular still pres- known forgossipand In anindustry “There’s of confi- lack justastriking future ofbankingisdeemed Indeed,the isbearing revolution The regulatory For Dummies how-to guidesandFrom-

helen tinner/wiley archives Wiley is one of the few trade publishers trade isoneofthefew Wiley onlineinthelate1990s, entific journals Andthankstotheneedputitssci- tles. ti- marketable andbranded niches easily peersandinsteadfocusedon its hit-driven vision hasfollowed adifferent route from house’sthrifty booksdi- 25-year-oldtrade the publisher, scientific andeducational the company. whosework hasbeen publishedby torian institution, suffered a black eye lastweek eye suffered ablack institution, best-run regarded astheindustry’s widely MorganChase, EvenJ.P. reserves. capital banks over timetomore thandoubletheir standard-settersordered Swiss while, Protectionsumer Financial Bureau.Mean- Con- much-despised (bybankers,anyway) where oversee shewill thecreation ofthe administration, joinedtheObama cially offi- professor Elizabeth School Warren, Law Harvard nemesis-in-chief, industry’s banking TheAmerican changing times. Bove Research. atRochdale Richard bankinganalyst observes dence,” BECAUSE THAT’S IS WHERETHEMONEY Note: Cash includes cash reserves for regulatory purposes. Note: Cashincludescashreservesforregulatory Wells Fargo J.P. MorganChase Bank ofAmerica Citigroup Bank ofNewYork Mellon BANK The stock market value of major banks as a proportion of the cash on their books onWly&Sons. John Wiley & 203-year history of chief executive in the become just the 11th Stephen Smith will MEET THE NEW CEO: Embracing thelessonsitlearnedasa Last weekbrought moreof Last evidence AKTCPCS AS % OF CASH CASH MARKET CAP 15 $75B $90B $135B $222B $158B $270B $136B $113B ning off videos and iPhone appsfrom its ning offvideosandiPhone like Travelocity.The companyisalsospin- white-label contentsuppliertowebsites a mers.com andFrommer’s Unlimited, From- theadvertising-supported include has beenCOO forthepastyear. who Smith, Mr. says to digitaloryou die,’” now prepared forthedigitalera. eid”hedgefund managerGeorge a period,” economy won’t soon. turnaround anytime some veteraninvestorsare warning thatthe which chokesoffaneconomicrecovery.And andothersmallbusinesses, tostartups cially profit- espe- tolend, banksare lesslikely squeezed all, After else’s. ing everyone haveawayofbecom- but bankers’problems ple whobrought theeconomy toitsknees, who couldn’t accesstheiraccounts. ofpeople millions frustrating 48 hours, when itsconsumerwebsitewentdown for 3B$86B $31B Some of Some Wiley’s digitalbusinessesnow ‘Move customerswere us, telling “Our “We’re liabletobeinabearmarket for It maybetoughtoshedatearforthepeo- See BOOKPUBLISHERonPage29 e ALST. onPage31 See WALL Source: Rochdale Research MARKET MARKET CAP 180% 175% 42% 36% 61% published Sept. 13. address was misstated in the article “Welcome to Jacobsville,” Olive & Bette’s was formerly located at 384 Bleecker St. The CORRECTION Source: Eastern Consolidated Weekly shiftofthecity’s economy sums inelections. thatbigcompanieswouldinvesthuge circles sparking fearsinDemocratic Commission, Federal Election Unitedv. spending inCitizens oncorporate longtimerestrictions lifted thehighcourt thisyear, Early Blasio’s website. de accordingtoMr. stay outofelections, andGileadhavealready agreedMicrosoft to Dell, IBM, Group Inc., GoldmanSachs Blasio. which wasrequestedAdvocateBillde byPublic updating itswebsitetoreflectpolicy, thenew insteadquietly itsdecision, not trumpet bankdid advertisements.The electioneering tospendunlimitedamounts on corporations allowing ruling landmark Court Supreme TO SPEND MONEY ON ELECTIONS, DESPITE A J.P. MORGAN CHASE & CO. HAS AGREED NOT iaporae t otcs plansandsite. itscontacts, misappropriated thatNYPC’sIts lawsuitalleges backers wasrejected bythestate. Hospital inQueens York Immaculate siteofMary ontheformer Protonmillion CancerCenterofNew Therapy rival’s plantobuildthe$273 competitor.The itwassuedbya center, proton beamcancer chosen bythestatetobeNew York’s first NYPCwas Butoneweekafter February. in 57thSt. at621 begin construction W. theNew York Proton Centerisslatedto Sinai, Montefiore andMount NYULangone, Israel, Beth Sloan-Kettering, ofMemorial consortium andahospital Oncology held 21stCentury byprivately Backed ment centerinManhattan. $235 MILLION PROTON BEAM CANCER TREAT- NEW YORK STATE IS CLOSE TO APPROVING A vne eri,MI Detroit, Avenue, Crain’s New York Business address changesto: Send Postmaster: and additionalmailingoffices. NY New York, by Cr weeks ofDecember, andthethirdfourth August andthefirstweek ofSeptember, weekof thefifth weekofJuneandthefirst weekofJuly, the fourth 2010— ) (issn 8756-789x is exceptforcombinedissues published weekly 20, september 38, no. xxvi, vol. ( All rights reserved. rights All ©Entire contentscopyright $109.79 slightly below the peak levels hit in August 2008 adjusted private sector employment in the city stood only COULD HAVE BEEN WORSE +37.8% 888) Source: RealtyTrac BY THENUMBERS homes entering IN BRIEF August August vs. July foreclosure in RISE IN Fax (313) . 909-9111 GET ADAILY DOSEAT @STATSANDTHECITY ADDICTED TONUMBERS? w er.(S o 13676-0444-RT) (GST No. two years. 0 2010 20, September for jobless benefits fell nationwide. added jobs than lost them. Meanwhile, claims years, more sectors of the city’s economy THE RULES MAJORITY NYC eidcl otg ada e ok N.Y., York, New at Periodicals postagepaid . 10017 48207-2912. 9/12, down 2.5% $64.3M ticket sales for 4 vs. a year earlier Source: Broadway weeks ended 446 BROADWAY Circulation Department, , i omnctosInc., ain Communications 2010 - League .$ 6777 As of August, total seasonally by Crain Communications Inc. Communications by Crain for service: subscriber | Crain’s New York Business 3.00 For the time first in two Crain’s New York Business oy $59.79 a copy, Authority ofNY&NJ import import volume at Port Port of NY/NJ in July from a year 21.3% INCREASE IN Source: Port 711 earlier 1155 Third Ave., one year, Gratiot Call | 3 20100920-NEWS--0004-NAT-CCI-CN_-- 9/17/2010 7:29 PM Page 1

IN THE MARKETS by Aaron Elstein

Preferred treatment at Citi nder pressure from shareholders and regulators, Citigroup has almost completely overhauled its board in the past couple of years. Out are folks who s U seemingly snoozed while the bank nearly sank, including former Treasury Secretary Robert Rubin and former CIA director John Deutch. In are people like former New York state banking superintendent bloomberg news Diana Taylor and former Pimco co-CEO William Thompson. Now, two more directors may soon join the 15-member board—only through the backdoor. First, a little history: In 2008, Citi raised billions of dollars

in fresh capital to offset its humon- store its dividend to the preferred gous mortgage-related losses.Much shareholders, which, according to of that cash was generated by selling Bloomberg, include divisions of in- preferred shares,a class of stock that surance companies Genworth Finan- grants investors rights not offered to cial Inc. and Manulife Financial Corp. common shareholders, such as Neither investor sounds like a rab- higher dividends. But Citi couldn’t ble-rousing dissident, but remem- raise enough capital to cover all of its ber:These guys haven’t been paid for losses and soon had to turn to the a while. U.S. government for assistance by CreditSights estimates that it selling Uncle Sam—yes—preferred would cost Citi an easy-peasy $26 stock.Citi’s problems were so dire,it million a year to restore its preferred turned out, that in the summer of dividend.Citi declines to comment, 2009 the government converted its but even if the bank wanted to pay preferred stake into common stock, up, there could be potential compli- which immediately gave it a better- cations. than-33% stake in the bank. In ad- For starters, the government re- dition, cash-strapped Citi was mains Citi’s largest common share- forced to suspend all dividend pay- holder, and who knows what it outs to common and preferred would think about the bank paying shareholders. a dividend to some investors and not Now, the skinny: According to others. And there is a very good rea- the fine print in the prospectus for a son that Citi, in the delicate words $3.2 billion preferred stock offering of CreditSights, has been “highly completed in early 2008, preferred protective of its capital” since its holders get to appoint two directors near-failure two years ago. if Citi fails to pay them a dividend Absorbing two board members for six quarters.That means Citi has not of management’s choosing is a until the end of next month to re- price Citi might have to pay. He oughta be in pictures keep your eyes open for a real, live they are prospecting, they’re Wall Streeter in Oliver Stone’s se- traders,” Mr. Belesis, 35, says of his quel to Wall Street opening later this brokers. week. Anastasios “Tommy” Belesis, the Like Michael Douglas’ leg- chief executive and owner of John endary Gordon Gekko character, Thomas Financial, a brokerage in low- Mr. Belesis has had his run-ins with er Manhattan, plays the role of regulators, although they’re nothing Shia LaBeouf ’s investment like the years in prison that Mr. banker boss in the film, writes Gekko served for insider trading. Bruce Kelly at Crain’s sibling Mr. Belesis was sacked by a for- publication InvestmentNews. mer employer in 2005 due to an Evidently, John Thomas “inaccurate representation of Financial appealed to identity to a customer,” Mr. Stone’s sense of according to a regulatory what a hard-charg- filing. Mr. Belesis says ing Wall Street firm the former firm was should look and making a grab for the sound like: “They office of brokers he are cold-calling, controlled. gerardo tabones e Business Bank

Sterling4Biz.com 212.757.1100 THE NUMBER OF OFFICIAL STUDIES, reports and rule-making bodies created pursuant to the Dodd-Frank financial reform law, according to 421 a J.P. Morgan Chase & Co. presentation.

4 | Crain’s New York Business | September 20, 2010

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NEW YORK,NEW YORK edited by Valerie Block

The new title “will clearly say Algonquin Hotel checks in to our readers exactly what to expect,” says Editor-in-Chief with Marriott International Norman Vanamee.The four-year- or more than 100 years, the Algonquin Hotel has old magazine focuses on luxury deals, while the website offers a nurtured its image as an artists haven and an range of advice. independent property outside of the mainstream, According F to Publisher where actors and literary giants like Dorothy Parker once gathered at the famous Round Table. Ernie Renzulli, the fall issue has Now the Algonquin can be found on the website of one attracted a of the biggest hotel chains in the world.This week, the record 40 pages storied property will announce that it has joined the of advertising. Recent issues Marriott International Inc. group of hotels. It will have averaged in become the first New York City property to be part of the the low 30s. He Marriott Autograph Collection, a new brand launched earlier adds that the title is close to this year that features breaking even. “We’ll never be a huge circulation magazine,” he historic or iconic says, “but in tandem with online, hotels. Eleven others we offer a unique opportunity to currently reside in advertisers.” the portfolio. By teaming up Equinox, Citibabes with Marriott, the keep the kids busy 174-room Algonquin a new deal between Equinox gains access to a Holdings Inc. and Citibabes will bloomberg news powerful reservation make it easier for parents to get in system, as well as a popular loyalty rewards program. In their workouts. Equinox signed an return, the landmark hotel is expected to maintain exclusive pact with Citibabes that will bring the latter’s menu of kids’ Marriott’s brand standards.To that end, the Algonquin, classes to the luxury gym. which is owned by HEI Hospitality, completed a renovation The licensing agreement helps in August. Equinox upgrade services at its 33 “We are actively looking for other New York hotels to add outlets with kids’ clubs, offering art, singing and yoga-like classes to the collection,”says a Marriott International spokeswoman. for children aged three months to nine years. Parents will pay $30 an Grodin makes feature musicians and a video hour, which includes a half-hour projection screen for lyrics. “I of free child care. Until now, one-night stand haven’t seen all the bills,” he says. Equinox had offered baby-sitting, He hasn’t done much promotion but no formal programming. comedic actor Charles Grodin either, but he figures that it’ll be The SoHo-based Citibabes— (below), known for his deadpan easy enough to fill the 115-seat whose clients include models Heidi delivery, is heading back to the theater. Already on the guest list: Klum and Christy Turlington and New York stage for the first time Elaine May, who directed celebrity chef Bethenny Frankel— since his 1975 role in Same Time, Heartbreak Kid, and singer Art will outfit the clubs with new toys Next Year. Well, at least for one Garfunkel. He doesn’t know if that focus on creativity. Citibabes night.The star of 1970s classic critics will come, and at any rate, Chief Executive Tracey Frost says The Heartbreak Kid and Midnight he’s not expecting too much. “I that the deal has the potential to Run will present a new musical just wanted to get up in front of an be a “multimillion-dollar revenue comedy, Lucky and Tough Times, audience,” he says. opportunity for both sides.” Saturday, Sept. 25, at The Metropolitan Room on West Contributors: Lisa Fickenscher, 22nd Street. Sherman’s travels Matthew Flamm, Daniel Massey TV actor Richard Kind will join with USA Today Mr. Grodin on stage in the show about two men who claim to have sherman’s travel—the four- ART FOR SALE written classic American songs year-old print offshoot of like Simon & Garfunkel’s ShermansTravel.com—is being NEW YORKERS are about to get “Sounds of Silence.” Mr. Grodin rechristened. It’s also getting bigger. a double dose of the Affordable got the idea for the show a year While many other magazines Art Fair. AAF ago at songwriting are struggling to grow, the NYC will great Ervin Drake’s Manhattan-based title, which has launch its 90th birthday a circulation of about 250,000 first fall bash. copies, will soon add another event in Mr. Grodin— 150,000.They’ll be tucked inside Manhattan who doesn’t have a the weekend edition of USA from Sept. typewriter, let alone Today in the next week or two 30 -Oct. 3. a computer— and distributed to upscale hotels. More than hasn’t tallied And starting with that fall issue, 60 galleries will participate in the the costs for the five-times-a-year magazine fair, to be held at 7 West 34th St. the event, will be known as Smart Luxury which will Travel.

6 | Crain’s New York Business | September 20, 2010

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that extending the Bush tax cuts, which expire Dec. 31, for all earners would benefit consumer demand. Primaries’ fallout THE INSIDER But the group has not focused on the tax cuts. In a sense, it doesn’t have to: Republicans hoping to Continued from Page 1 bor-backed John Ruiz in the Demo- by Erik Engquist and Jeremy Smerd regain control of Congress are Steve Levy last spring as an alterna- cratic primary for an open seat. pressing the issue for it. tive to Mr. Lazio, whose abysmal A spokesman for Democrats for fundraising led the chairman to con- Education Reform, a pro-charter clude he was not viable. The move school group, points to upstate As- Gillibrand spent failed,but weakened an already strug- semblyman Sam Hoyt’s defeat of “an $7M of $11.2M gling candidate, leaving Mr. Lazio aggressive anti-reform challenger” as Tax cuts for all? vulnerable to Mr. Paladino’s largely a win for charters. Mr. Hoyt was also sen. kirsten gillibrand has self-funded challenge. aided by the League of Conservation already spent nearly $7 million of Both of Mr. Cox’s Voters and other forces. Dems’ quandary the $11.2 million she has raised for U.S. Senate candi- Taken together, charter schools, her first statewide election bid. dates also went down. the UFT and Wall Street will have Only $2.6 million of the David Malpass lost to less influence among city lawmakers ith the midterm election expenditure was for future TV ads former Rep. Joseph as a result of their candidates’failures. six weeks away, vulnerable (the campaign bought the airtime DioGuardi for the right The primary results brought pain congressional Democrats in advance to secure cheaper rates). to face Sen. Kirsten Gilli- or gain for a number of others: Ms. Gillibrand has spent heavily on brand,and Gary Berntsen was find themselves in a middle- consultants of all kinds—fund- clipped by Jay Townsend, who moves WINNERS class tax cut quandary: to raising, media, research, Web, field on to face Sen. Charles Schumer. Organized labor. As is their custom, extend the Bush tax cuts for everyone, or just and general—her filings show. The chairman’s final bit of salt in unions such as 32BJ, 1199 and the W M. McMahon the wound was his son Chris Cox’s Hotel Trades Council generally households making less than $250,000? The loss in a Suffolk County congression- backed incumbents, including state city’s congressional delegation largely supports Espada’s al primary,although the elder Cox did Sens. Shirley Huntley, extending the tax cut only for the working and colleagues back off not endorse in that race. Velmanette Mont- middle classes.The lone exception is Rep. Charter school proponents and gomery, Bill Perkins Michael McMahon state senators who had long their hedge fund backers are also lick- and Bill Stachowski, (D-Brooklyn), who was one wanted to rid their chamber of ing election-night wounds. They and Reps. Carolyn of 31 Democrats to sign a letter urging House Pedro Espada Jr. had their wish come funded three insurgent state Senate Maloney, Charles Speaker Nancy Pelosi to extend the Bush tax true last Tuesday when the candidates, only to see them pum- Rangel and Edolphus cuts for all households. M. Grimm incumbent lost to his Democratic meled by incumbents viewed as hos- Towns. All but Mr. Sta- primary opponent, Gustavo Rivera, tile to charter schools: Bill Perkins in chowski won handily in a supposedly Vulnerable Democrats worry Party favorite who marched to 62% to 33%. But not one state Manhattan, Velmanette Mont- anti-incumbent year.The lone labor- that Republicans will paint them as victory in last Tuesday’s primary by legislator campaigned with Mr. gomery in Brooklyn and Shirley backed challenger, Gustavo Rivera, tax-and-spend liberals despite trouncing Republican Party- Rivera on election day. Only City Huntley in Queens. destroyed Bronx state Sen.Pedro Es- national polls showing support for backed Michael Allegretti. Councilmen Oliver Koppell and “If you’re going to make a state- pada Jr. letting the tax cuts sunset for high In New York City, about 3% of Fernando Cabrera greeted Bronx ment, you have to either win or be Working Families Party. Entering the earners. And there is no households earn more than voters with Mr. Rivera, according competitive, because if you get election season weakened by an in- congressional Democrat in the city $250,000 annually, according to the to the challenger’s official schedule. crushed it sends the opposite mes- vestigation, the party focused on de- more vulnerable than Mr. Fiscal Policy Institute.The national Mr. Rivera’s spokeswoman says sage,” one legislator says. “People are feating Mr. Espada and succeeded, McMahon. His Republican average is 2.2%.The Business Sens. Eric Schneiderman and Liz going to believe this is a paper tiger.” albeit with plenty of help. Its other challenger is Michael Grimm,a Tea Council of New York State argues Krueger helped earlier in the race. Wall Street and the financial ser- races were low-hanging fruit: It vices industry made a backed Mr. Rangel, Ms. Maloney similar gamble by in- and Mr. Perkins.The WFP support- vesting in insurgent ed front-runner Francisco Moya for Reshma Saujani. an open Queens Assembly seat, and She took on Rep. he trounced black sheep Hiram Carolyn Mal- Monserrate. communicate. oney, who had Gay marriage. The top target of supported the Empire State Pride Agenda, Fight collaborate. sweeping financial regulation bill and Back New York, Human Rights won passage of credit card reforms Campaign and Marriage Equality that will curb banks’profits.Ms.Sau- New York was Mr. Stachowski of jani raised more than $1.3 million but Buffalo, who had voted against gay Event Information won only 19% of the vote in an Upper marriage and the Sexual October 6, 2010 East Side district where support for Orientation Non-Dis- New York, NY Wall Street is thought to be greater crimination Act. He Gotham Hall Join AVI-SPL, the largest global integrator of AV systems and services, than elsewhere. lost to Tim Kennedy. for our FREE AVI-SPL University event in New York City! “To send a message, you’ve got to LOSERS Register Today! At AVI-SPL University, you’ll: have a candidate with some sem- blance of a decent performance,” the Landlords. Mr. Espada’s Online www.avispl.com/events legislator says. “I didn’t expect [Ms. defeat will make it harder for Saujani] to win, but you can’t get beat the Real Estate Board of New York By Phone by 60 points.” and the Rent Stabilization Associa- Toll free (877) 440-6205 The United Federation of Teach- tion to defeat pro-tenant bills in the For more information, visit www.avispl.com/events or call (877) 440-6205. ers made the same mistake, running Senate. A spokesman for REBNY Gregory Lundahl against Assembly- says several Democratic man Jonathan Bing as payback for senators from outside Mr. Bing’s bill reforming seniority. the city remain a for- But Mr. Bing won by a huge margin. midable obstacle for “An 84% victory is unlikely to deter such bills. me from doing anything other than Diana Taylor. Mayor 6052i NXD-435P fighting for my constituents,”he says. Michael Bloomberg’s SMART Board™ 4.3” Modero Portrait Meanwhile, charter school back- girlfriend, a prospective candidate in Interactive Display Wall/Flush Mount Touch Panel ers largely ignored Robert Rodriguez, 2012, campaigned with Mr. Malpass Touch-enabled LCD display designed to give you Allows for Modero Touch Panel functionality in a a Yale-educated, pro-charter Assem- and Ms. Saujani. She went 0-for-2. access to digital materials and make interacting with vertical form factor, perfect for keypad replacement bly candidate in the charter school State Conservative Party. If Mr. your notes a more intuitive and engaging experience. in a room or schedule display outside of a room. mecca of Harlem.“If there was a race Lazio doesn’t get 50,000 votes on the for charter school supporters to invest Conservative line in November, the in, this was the one,” says one law- party will lose its ballot position in fu- New York Ofﬁ ce maker. Mr. Rodriguez defeated la- ture contests. newscom, news daily 10-40 45th Avenue, Long Island City, NY 11101 (718) 806-4040 For daily political and government news, subscribe to CRAIN’S INSIDER @ www.crainsnewyork.com/insider

8 | Crain’s New York Business | September 20, 2010

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VIEWPOINT More policy, less politics editor in chief Rance Crain publisher, vp Jill R. Kaplan arl paladino, who only two months “wacko,” as one did last week. ago was casting about for attention, is Mr. Paladino, for his part, must do more than mock his EDITORIAL editor Xana Antunes now fielding more interview requests rival as “Prince Andrew” and denigrate him as an Albany managing editor Glenn Coleman deputy managing editors Valerie Block, than he can handle. It’s not just because insider and a captive of special interests. He ought to go Erik Ipsen he became the surprise Republican through the Democrat’s 224-page agenda and force Mr. contributing editor Elizabeth MacBride nominee for governor last week. Mr. Cuomo to provide more specifics. For instance, Mr. Cuomo columnists Greg David, Alair Townsend Paladino is a loose cannon who makes proposes a “financial emergency” plan to freeze state politics editor Erik Engquist pulse editor Barbara Benson headlines with explosive quotes on a daily basis. employees’ salaries for one year when their contracts expire senior reporters Theresa Agovino, in April 2011.That very modest measure would do nothing Aaron Elstein, Lisa Fickenscher, CThat might be a welcome development for the media, but Matthew Flamm, Miriam Kreinin Souccar not so much for New Yorkers.To be sure, a segment of the to reduce the projected $8.2 billion budget deficit, which reporters Marine Cole, Amanda Fung, Daniel Massey, Adrianne Pasquarelli, population has bought into Mr. Paladino’s message that the already assumes no pay increases, and it suggests that pay Hilary Potkewitz, Jeremy Smerd art director Steven Krupinski problems in Albany can be solved with a baseball bat. But hikes would resume in deputy art directors Carolyn McClain, most know better.They seek and deserve a gubernatorial the following year, Daniel Mednick Name-calling staff photographer Buck Ennis campaign that presents feasible solutions to the state’s fiscal when the annual deficit copy desk chief Wendy Zuckerman and ethical predicaments. is projected to surpass copy editor Thaddeus Rutkowski by either side research editor Denise Southwood The Democrats and their nominee, Andrew Cuomo, $13 billion. assistant research editor Maia Blume accomplishes editorial interns David Montalvo, must hold up their end of the bargain.The temptation will Of course, Mr. Laura Mortkowitz be great to simply hammer Mr. Paladino for his crude quotes Paladino’s goal is to www.crainsnewyork.com nothing web editor Brian Tracey and his past forwarding of offensive e-mails. Indeed, Mr. win, and at the moment senior producer Elisabeth Butler Cordova Cuomo’s allies began doing exactly that even before all the for voters he seems convinced producer Kira Bindrim Republican primary votes had been counted. that his seat-of-the- EDITORIAL AND ADVERTISING OFFICES The state Democratic Party had the chutzpah to release a pants, bomb-throwing 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 commercial last week calling Albany a “swamp of style is succeeding. But advertising: 212.210.0259 Cable craincom nyk corruption” in which donors like Mr. Paladino lavish money his voters in the primary comprised a small fraction of the Fax 212.210.0499 on politicians and get favors in return.The ad did not electorate. A deeper and more substantive approach would Entire contents ©copyright 2010 Crain Communications Inc. All rights reserved. mention that Democrats as well as Republicans happily not only be more civil, it would build a constituency for real ®CityBusiness is a registered trademark of MCP accepted Mr. Paladino’s donations. solutions for New York, no matter who wins the election. Inc., used under license agreement. We’re not so naive as to expect a campaign free of politics. Name-calling by either side accomplishes nothing for voters, TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. But there must be policy as well. Mr. Paladino, for example, except perhaps to discourage even more of them from $3.00 a copy, $59.79 one year, $109.79 two years. proposes to cut state spending by 20% in his first year. casting ballots in November. www.crainsnewyork.com Sounds wonderful, but how would he achieve it? Mr. Mr. Paladino’s energy has the potential to draw great ADVERTISING AND MARKETING advertising director Trish Henry Cuomo must press him for answers rather than just attention to the campaign. Our hope is that voters get real estate sales manager Cornelius P. Gore unleashing his attack dogs to portray his opponent as a something of value, not a train wreck. senior account managers Irene Bar-Am, Courtney McCombs, William E. Squitieri account executive Anthony Mowad sales manager, classified print & online John Gallagher sales coordinator, print & online CRAIN’S ONLINE POLL COMMENTS Lulé Haznedari newsletter product manager Alexis Sinclair IS CARL PALADINO’S credit Todd J. Masura 313.446.6097 marketing director Amy Crossman WIN GOOD OR BAD FOR assistant marketing manager Taxing credulity Sabra Harrison ANDREW CUOMO? director, audience development John LaMarca Date of poll: Sept. 15 ABOUT THAT $250,000 MORE TAX TALK senior audience development manager BUSH-TAX-CUT CUTOFF Tarek Cotran 288 votes just when and how do small businesses have in an opinion column, Mike Elmendorf, “capital gains” that would be adversely affected general manager, interactive New York state director of the National by an increase in the Bush-era capital gains Marc Minardo GOOD. Mr. web developer, interactive Federation of Independent Business, argues rate? Business income is not subject to these Paladino’s . 50% Chris O’Donnell views are against ending the Bush tax cuts for families rates; they apply only if the business or its extreme, and earning more than $250,000 (“Tax hikes would assets are sold. Different discussion, Mr. NEW YORK PRODUCTION he will drive hit business owners hard,” Sept. 13). Elmendorf. production and pre-press director

even more Mr. Elmendorf points out that many small Similarly, most S corporations typically do Michael Corsi advertising production manager voters into Mr. . Cuomo’s camp. 50% business owners pay taxes on their business not pay dividends.The tax planning usually Suzanne Fleischman Wies income based on individual tax rates. A undertaken is to avoid dividends and instead reminder, then, that small business owners distribute the majority of income by means of PUBLISHED BY CRAIN COMMUNICATIONS INC. pay taxes on their net income after deductions compensation. Dividends in the typical small chairman Keith E. Crain for employees and other business expenses. business situation are minimal. president Rance Crain Merrilee Crain If the tax cut elimination affects only those Mr. Elmendorf also neglects to note that secretary BAD. The treasurer Mary Kay Crain making more than $250,000 per year, then President Obama wants to allow businesses to executive vp, operations William Morrow Republican’s senior vp, group publisher Gloria Scoby wealth and his the “small business” owners hit by a return to write off the full cost of assets purchased.That the old tax rates are in that group of people not only will provide a significant benefit to group vp, technology, circulation, highly motivated manufacturing Robert C. Adams supporters pose earning far more than the general public. small corporations, it will generate a significant vice president/production & a real threat to Mr. Elmendorf leaves the impression that stimulus to the economy. manufacturing David Kamis the Democratic mom-and-pop businesses are going to pay —robert stern chief information officer Paul Dalpiaz front-runner. taxes on their gross income. corporate circulation/audience development director Kathy Henry That is not true. CRAIN’S WELCOMES SUBMISSIONS to its opinion Trying to disguise a tax on the wealthy as a pages. Send letters to [email protected]. founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to tax on small business owners is just not an Send columns of 475 words or fewer to www.crainsnewyork.com/poll to have your say. accurate way of presenting the facts. [email protected]. Please include the writer’s —jim rice name, company, address and telephone number.

10 | Crain’s New York Business | September 20, 2010 20100920-NEWS--0010,0011-NAT-CCI-CN_-- 9/17/2010 1:59 PM Page 2

OPINION

Paladino will follow in the footsteps of Messrs. Vallone, McCall and Cuomo landslide Faso and be wiped out when voters choose between him and Attorney General Andrew Cuomo. I’m bet- not preordained ting they are wrong. Consider the money issue. Mr. Paladino has considerable personal onsider the results of the last three guberna- financial resources to draw upon.He spent at least $3 million of his own torial elections in New York. money in the primary and is proba- In 2006,Democrat Eliot Spitzer crushed long- bly going to open his wallet further time Republican stalwart John Faso, 70% to 29%. in the next two months. In 2002, Republican George Pataki won a It will also matter that Mr. Pal- adino is an outsider and not the Cthird term, defeating then state Comptroller Carl McCall by 17 anointed choice of the GOP estab- percentage points. lishment. His supporters are clearly In 1998, Mr. Pataki swatted away City Council Speaker Peter more enthusiastic about him pre- cisely because of that. He is also in a Vallone by 19 points. public, few want to risk retaliation The average margin in those when they bid for a state contract, elections: 25 percentage points. seek to influence regulatory action, Candidates like One has to go all the way back to or lobby for legislation. The real 1994 to find a competitive race. Mr. world trumps ideology. Mr. Paladino Pataki, then a state senator, denied Without money, a candidate Mario Cuomo a fourth term by get- can’t afford the television advertis- have a lot of ting 49% of the vote to Mr.Cuomo’s ing that is crucial to winning any 45%. race and is the single most impor- appeal right now Given last week’s Republican tant factor in ousting an incumbent. primary victory by the off-the- In each of these elections, except for charts controversial Carl Paladino, Mr. Pataki’s first campaign, the is history about to repeat money overwhelming- itself with another land- ly went to the likely position to mobilize upstate voters slide gubernatorial vic- winner. in a way that we haven’t seen since tory? Or will Mr. Pal- The ever-weaker the Pataki-Cuomo race. adino prove the Republican Party offers Mr. Cuomo is still the odds-on exception to the rule, the rest of the answer. favorite to win—and by a sizable like Mr. Pataki? The GOP simply margin. His war chest will top any- The reason so many doesn’t have the base to thing Mr. Paladino commits, and New York races result in win; there are only 2.7 his policy positions have attracted lopsided wins begins million registered Re- broad support, including that of with money. Most cam- publicans in the state, business leaders and some well- paign contributions are half the number of De- known Republicans. Meanwhile, an investment on the GREG mocrats. Mr. Pataki’s Mr. Paladino’s outrageous com- part of business execu- DAVID two re-election cam- ments will turn off many voters. tives and unions to se- paigns were personal But as elections around the cure access to people affairs in which he country have shown,candidates like who can affect their fortunes. Just raised tens of millions of dollars to Mr. Paladino have a lot of appeal. the way no one buys a stock headed protect himself while his party lost His big primary win last week over to bankruptcy, few people want to ground in both the Assembly and the anointed and lackluster Rick waste money on a loser.Worse,since the state Senate. Lazio was a surprise.His showing in New York City Susan Engel campaign financing reports are Most pundits believe that Mr. November may be another one. WOMEN IN THE BOARDROOM CEO Portero Luxury

November 1, 2010 3:00 PM to 6:00 PM Barrie Berg (registration at 2:30pm) CEO COMMENTS ?What If! Americas Grand Hyatt New York (109 East 42nd Street, Meesha Rosa New York, NY 10017) ALL WINNERS, NO LOSERS solution: good for Pixable, good for week period. Director, Corporate Board Trinity and good for the city. Voting by mail makes it easier Services & Marketing Operations Cost: $125 individual tickets you are missing some important —carl weisbrod for people to vote.Turnout Catalyst

context relating to Pixable’s first President,Trinity Real Estate increases. It’s up as much as 40% in To Register Online: private-market lease (“Landlords Oregon. And taxpayers save many www.NewYorkWIB2010.eventbrite.com Marie Wilson can’t yet cut back their tenant RAGE AGAINST THE millions of dollars because there’s President & Founder For more information visit incentives,” Sept. 13). no need for Election Day The White House Project MACHINES www.womenintheboardroom.com This young, creative company expenses—no inspectors and poll spent a year in the city’s 160 Varick the poor turnout in the Sept. workers, no extra paychecks, no Street Incubator, managed by the 14 primary (and the horrible new rentals of voting locations. Presenting Partner Presenting Partner Polytechnic Institute of New York voting machines) highlights the Voting by mail is easier.There’s University, where Trinity Real need for New York state to finally no confusion over where to go. Estate contributes the space. After Voters can reflect on the ballot at reaching certain hiring and home in a less stressful and more Gold Partner Gold Partner Silver Partner Bronze Partner Hyatt Hotels financing milestones, Pixable private environment. If they have And Spas “graduated” from the incubator and questions about referenda or moved into 2,700 square feet at 137 candidates, they have more time to Media Alliances Varick St., also owned by Trinity. ask—and answer—those questions. This relocation was part of a Voter lists would be easier to joint New York City/NYU- maintain, because ballots that are Poly/Trinity strategy to create jobs returned by the Post Office as and to help promising startups grow undeliverable will cause the Board to maturity over time. Pixable was of Elections to check the 85 Broads - NY Chapter, Boardroom Bound, Catalyst, Executive Women of New Jersey, Executive Women's Golf

newscom Association - NYC Chapter, Leadership America, Manhattan Chamber of Commerce Women's Business, Menttium able to continue operations in registration and to remove the Corporation, NAWMBA Greater New York City, New York Women in Communications , New York Women’s Agenda (NYWA), Organization of Women in International Trade - New York Chapte, POWER: Opening Doors for Women, Hudson Square at a rent it could do what Oregon and other states name from the rolls. Rainbow PUSH/ Wall Street Project, SIM Women, St. Catherine University, Women Business Leaders of the U.S. Health afford, in “as is” space without have been doing: Let voters cast —paul feiner Care Industry Foundation, Women’s Association of Venture and Equity (WAVE), Women's Bond Club of New York , concessions. It is a win-win-win their ballots by mail over a two- Greenburgh Town Supervisor Women's Leadership Coaching Inc

September 20, 2010 | Crain’s New York Business | 11 20100920-NEWS--0012-NAT-CCI-CN_-- 9/16/2010 6:24 PM Page 1

REAL ESTATE DEALS PLUS

As a result, office leasing activity Park Avenue came by its more MORE FOR LESS in the 10 months ending in July av- competitive rents the hard way: As bargain, Park Downtown office space in August eraged about 198,000 square feet a Leasing activity there plummeted to month—nearly double the five-year a moribund monthly average of average logged in the good years of 19,750 square feet between Sep- 2002 to 2007, about 115,000 square tember 2008 and March 2009 as the Avenue thrives feet. recession began to take hold. The 8.5% At the end of 2007, the peak of bankruptcy of Lehman Brothers in VACANCY RATE, up from 7.5% hugely narrowed gap between office rents on the market, the average asking rent September 2008 marked the begin- one year earlier Park Avenue and those of lesser midtown on Park Avenue hit $116 a square ning of the big slide. foot,compared with the $83.40 av- Flights to quality typically take addresses is prompting a huge jump in the volume erage for midtown class A build- place in the early stage of a recovery, of lease signings on the storied avenue. ings as a whole.Today,that gap has notes Mr. McCarthy. In most cases, 88.4% “Park Avenue activity jumped dramatically narrowed hugely, with average Park it’s a phenomenon followed by an TAKING RENT as proportion of asking rent, up from 75.5% a because space became attractive,” says Ken McCarthy, head of Avenue rents of $69 a square foot, increase in rents at some point. A compared with $65.83 for top- “So far, we haven’t seen it,” Mr. year earlier research for New York at Cushman & Wakefield.“As rents quality space in midtown as a McCarthy says. Source: CB Richard Ellis fall, tenants realize they can afford better space.” whole. —marine cole REI lands at Puck Bldg. in a big way

rei, aka Recreational Equipment Inc., a seller of gear for outdoor activities, recently signed a 15-year lease for its first Manhattan location. The 39,000-square-foot flag- ship store will be housed in the Puck Building at 295 Lafayette St.The asking rent was around $275 a square foot, according to sources. “On the ground floor, you get a feeling of grandeur because of the ceiling height and the beautiful columns,”says Su- san Kurland, the CB Richard El- lis Inc. broker who represented REI in the negotiations. The store is expected to open in the fall of 2011. Lori Shabtai of Winick Realty Group represented landlord Kush- ner Cos., along with Ira Bloom of Kushner. —adrianne pasquarelli MTA inks renewal for 68,000 sq. ft. the metropolitan Transporta- tion Authority has signed on for another five years at 469 Seventh Ave., where it leases a total of 68,000 square feet.The average asking rent for the garment district space was $35 a square foot. “About 10 years ago, they signed a lease for two-and-a-half floors,” says Eric Meyer, senior managing director at Colliers International, which represented both the tenant and the landlord, the Meyer family. “In the interim, they extended and have leased the four floors.” Martin Meyer, vice chairman at Collier In- ternational, also worked on the transaction. At least one of those floors is used as the main office for one of the MTA’s biggest ongoing projects, LIRR East Side Access. Meanwhile, another 469 Sev- enth tenant also renewed its lease. World Windows, a sourcing company in the fashion industry, agreed to stay on for another six years in its 17,000-square-foot office on the fifth floor and to take on 1,000 square feet in the basement. The asking rent was $35 a square foot. —marine cole

12 | Crain’s New York Business | September 20, 2010

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NEIGHBORHOOD JOURNAL Brooklyn feels the love of rising economy

With the economy improving, As the recovery gains momen- to a report released by Cushman & Commercial leasing soars, jobs are added, she’s seeing the benefits.She recent- tum in the city,Brooklyn businesses Wakefield Inc. That gain far out- and a movie studio expands in the borough ly signed the Sky View Center in are feeling the impact. stripped Manhattan,where leasing Queens as a client and will produce Nearly 25,000 people living in activity doubled during the same offering clients in-house design and a variety of concerts and holiday the borough found work during period. BY SHANE KAVANAUGH marketing services she had previ- shows there. She plans to meet with the first half of the year, according The grow- ously outsourced to other vendors. more potential clients in coming to the Department of Labor’s most ing optimism uring the recession, To do that, Ms. Auster had to take weeks. recent statistics. Some 217,000 among Brook- Karen Auster re- some risks. She doubled her staff to square feet of commercial space lyn business- tooled her Brook- six and moved the business from her Brooklynites finding work was leased in the first half of the people repre- lyn-based events- home to an office on Flatbush Av- “we’re closing deals,” she says. year, up more than 250% from the sents a major planning business, enue. “It’s beautiful.” first six months of 2009, according turnaround, D says Carl ‘If [Brooklyn Hum, presi- businesses] dent of the survived Brooklyn Chamber of 2009, they Commerce. can survive During the re- 2010 and cession, more beyond’ than half of its members —Carl Hum Our clients’ success is our success. feared that President and CEO, their revenues Brooklyn Chamber of would plunge Commerce Introducing EisnerAmper, the leading regional dramatically, chamber sur- accounting firm in the Northeast. veys showed. Plans for expansion were put on hold. Retail rents on many commercial strips plummeted across the borough. Things looked especially grim in 2009, when a study released by successbene t plans SUCCESS successsuccess successSuccesssuccess successsuccess Rep. Anthony Weiner showed that SUCCESSSuccess SUCCESSSUCCESS FINANCIAL SERVICESSuccesssuccess success the vacancy rate of locally owned success SUCCESS SuccessSUCCESSsuccesssuccess successSUCCESSSUCCESS successSuccess Valuation Success stores in Brooklyn had reached SUCCESS SUCCESS Success SUCCESSSUCCESS Success 14.1%, topping the city average of SUCCESSSuccess successSUCCESS SUCCESS 12.1% by a full two percentage SUCCESS Success SUCCESS points. SuccessSuccessSuccess SUCCESS SUCCESS Success SUCCESS Retail rents have begun to stabi- SuccessSuccess SUCCESS Success Success lize in recent months, says Mr. Success

Success Success Hum. In a chamber survey con- Success ducted at the beginning of the year, SUCCESS Success Success one-third of businesses said they From Main Street Success to Wall Street. Success SUCCESS planned to hire or expand in the SUCCESSSUCCESS next year. successSuccess “If they survived 2009, they can SuccessSuccess Tax Planning survive 2010 and beyond,” Mr. SuccessSuccess Success Success Success Hum says. SuccessSuccessSuccess Success Success Success Much of the improvement can Success SuccessSuccess SuccessSuccessSuccessBusiness Services SUCCESSAuditSuccessSuccess be traced to the increasing lure of SUCCESS IPOsSUCCESSSuccess SuccessSuccessSuccess Success SuccessSuccess Brooklyn as a place to live. SUCCESSSuccess Steiner Studios soars “certainly, for anyone under 30, Brooklyn is now their first choice and not their second choice,” says Doug Steiner, president of Steiner Studios. Charles Weinstein, CPA His Brooklyn Navy Yard-based Chief Executive Officer company is contributing to the 212.949.8700 growing prosperity. Mr. Steiner will break ground in November on Howard Cohen, CPA an $85 million, 260,000-square- Chairman foot expansion of his Navy Yard 732.287.1000 studios just six years after they opened. The project will create www.eisneramper.com 1,000 well-paying jobs in Brook- lyn, he says. The picture isn’t entirely rosy. EisnerAmper LLP Brooklyn’s 10.5% unemployment Accountants & Advisors rate is second only to the Bronx’s 13% among the five boroughs. And Eisner LLP and Amper, Politziner & Mattia, LLP have combined their accounting, tax and advisory services practices. New York | New Jersey | Pennsylvania | Cayman Islands downtown Brooklyn has struggled to compete against Manhattan when it comes to leasing commercial real estate. Ms. Auster says she is looking forward to the competition. “I can see the horizon,” she adds. “I can see it.”

14 | Crain’s New York Business | September 20, 2010 20100920-NEWS--0015-NAT-CCI-CN_-- 9/16/2010 6:24 PM Page 1

FOR THE RECORD

(718) 999-1234 or G Tender Creative signed a 10-year lease stock at $26.69 on Sept. 8, in a [email protected]. for 5,150 square feet at 42-44 Greene St., transaction worth $10,674,932. ABOUT THIS SECTION a five-story, 24,000-square-foot building G Health and Hospitals Corp. FOR THE RECORD is a weekly listing of information from the public record that owned by Zar Property NY. Elizabeth Kevin M. Cameron, director and special Requests proposals by 5 p.m. on Oct. 29 Juvlier of Tungsten Property represented adviser to the chairman, exercised can help businesspeople in the New York area find opportunities, potential for management services for the tenant. David Zar negotiated in- options on 300,000 shares of common new clients and updates on competitors. environmental and plant-maintenance house on behalf of the landlord. The stock at $15.73 on Aug. 30, in a To ask questions or get more information on this section, contact Denise operations. For additional information asking rent was $45 a square foot. transaction worth $4,719,000. Southwood at [email protected]. regarding this solicitation, contact Joseph Quinones at (212) 788-5423 or G Celgene Corp. (CELG) [email protected]. STOCK TRANSACTIONS Sol J. Barer, executive chairman, exercised options on 169,016 shares of Following are recent insider transactions at common stock at $42.39 on Sept. 8, in a BANKRUPTCIES Listings are alphabetical by category and REAL ESTATE DEALS New York’s largest publicly held companies transaction worth $7,164,588. department. filed with the Securities and Exchange The following listings are selected from the Companies that would like to have details of Commission by executives and major G Estée Lauder Cos. (EL) most recent available filings by companies CONSTRUCTION SERVICES their recent transactions appear in these shareholders. Listings are in order of Gary M. Lauder Grat Remainder seeking bankruptcy protection in the G Department of Parks & Recreation listings should e-mail descriptions following transaction value.The information was Trust exercised options on 82,000 Southern and Eastern Districts of New Seeks competitive sealed bids by 10:30 this format to [email protected], obtained from Thomson Reuters. shares of common stock at prices York. Information was obtained from U.S. a.m. on Oct. 7 for the reconstruction of with “Real estate transaction” in the subject ranging from $32.15 to $40.50 Bankruptcy Court records available on Owen F. Dolen Park at Westchester line, or enter them online at G Motorola Inc. (MOT) between Aug. 3 and Aug. 9, in a Public Access to Court Electronic Records. Square in the Bronx. For more crainsnewyork.com/submitadeal. Deals are Carl C. Icahn, beneficial owner, transaction worth $3,020,400. During Listings are in alphabetical order. information regarding this solicitation, listed in order of square footage. purchased 14,786,570 shares of the same time, it sold 102,000 shares contact Juan Alban at (718) 760-6771 or common stock at prices ranging from at prices ranging from $58.31 to G Acorn Elston [email protected]. COMMERCIAL $7.49 to $7.52 between Aug. 25 and $59.65, in a transaction worth 4 E. 72nd St. G HealthFirst signed a 20-year lease for Aug. 31, in a transaction worth $5,997,855. It now indirectly holds Filed for Chapter 11 bankruptcy G Department of Transportation 172,600 square feet at 100 Church St.,a $110,899,160. He now indirectly holds 1,585,890 shares. protection on Sept. 8. The filing cites Seeks competitive sealed bids by 11 a.m. 21-story, 1,104,840-square-foot 250,427,008 shares. estimated liabilities of $500,001 to on Oct. 6 for the reconstruction of piers building owned by SL Green Realty G Hain Celestial Group Inc. (HAIN) $1 million and estimated assets of at the Staten Island Ferry facility. For Corp. Derek Trulson, Daoud Awad and G Cognizant Technology Solutions Corp. Carl C. Icahn, beneficial owner, $10,000,001 to $50 million. Among the additional information regarding this Bill Peters from Jones Lang LaSalle (CTSH) purchased 265,200 shares of common creditors with the largest unsecured bid, contact Earl Baim at represented the tenant. Brian Francisco D’Souza, president, chief stock at prices ranging from $22.16 to claims are Paul Hastings, owed (212) 487-3137. Waterman, James Kuhn, John Fanuzzi, executive and director, sold 354,993 $23.01 between Aug. 30 and Sept. 2, in a $469,542.49; and Plumbing Systems Hal Stein and Lance Korman of shares of common stock at prices transaction worth $5,996,845. He now Inc., owed $25,139.54. G New York City Police Department Newmark Knight Frank negotiated on ranging from $62.43 to $63.45 between indirectly holds 5,976,520 shares. Seeks competitive sealed bids by 11 a.m. behalf of the landlord. The asking rent Sept. 7 and Sept. 8, in a transaction G Matphil Corp., DBA J.J. Auto Repair on Oct. 5 for an air-conditioning system was $40 per square foot. worth $22,165,390. He now directly G Vornado Realty Trust (VNO) 200 Elmont Road, Elmont, L.I. upgrade. A mandatory prebid meeting holds 84,458 shares. Russell B. Wight, trustee, sold 70,000 Filed for Chapter 7 bankruptcy will be held at 10 a.m. on Tuesday, Sept. G IDB Communications Group Inc. shares of common stock at prices protection on Sept. 7. The filing cites 21, at the 108th Precinct Station House, signed a three-year renewal for 35,000 Gordon J. Coburn, chief financial ranging from $83.79 to $86.97 between estimated liabilities of $50,001 to 5-47 50th Ave., Queens. Contact square feet at 90 John St., a 32-story, officer, chief operating officer and Sept. 1 and Sept. 3, in a transaction $100,000 and estimated assets of $0 to Stephanie Gallop at (646) 610-5225 or 201,008-square-foot building owned by treasurer, sold 70,000 shares of common worth $5,961,749. He now directly $50,000. Among the creditors with the [email protected] for The Moinian Group. Adam Leshowitz, stock at prices ranging from $60.50 to holds 6,366,500 shares. largest unsecured claims are Advanta additional information. Jamie Jacobs and Robert Sattler of $63.79 between Sept. 2 and Sept. 8, in a Bank Corp., owed $11,015.26; and Newmark Knight Frank represented transaction worth $4,370,000. He now Sandeep Mathrani, executive vice Chase Bank, owed $8,937.84. GOODS AND SERVICES the owner, while Jeffrey Heller of directly holds 13,784 shares. president of retail real estate, sold 29,709 G Department of Citywide Administrative Cushman & Wakefield negotiated on shares of common stock at prices G Metro Dairy Distributors Cooperative Services behalf of the tenant. The average asking Thomas M. Wendel, director, exercised ranging from $81.99 to $85.07 between Inc. Requests competitive sealed bids by rent for the building is $35 a square options on 40,000 shares of common Aug. 26 and Sept. 2, in a transaction 881 E. 141st St., Bronx 10:30 a.m. on Oct. 6 for catheter, safety, foot. stock at prices ranging from $21.85 to worth $2,471,999. He now directly Filed for Chapter 11 bankruptcy IV solution and IV sets. Contact Anna $34.51 on Sept. 3, in a transaction worth holds 10,000 shares. protection on Aug. 27. The filing cites Wong at (212) 669-8610 or G Ladas & Parry signed a 15-year lease $1,127,200. On the same day, he sold estimated liabilities of $1,000,001 to [email protected] for further for 24,000 square feet at 1040 Sixth 60,000 shares at $62.05, in a transaction G HMS Holdings Corp. (HMSY) $10 million and estimated assets of details. Ave., a 24-story, 300,000-square-foot worth $3,723,000. He now directly William F. Miller, director, sold 40,000 $1,000,001 to $10 million. Among building owned by Skyline holds 60,000 shares. shares of common stock at prices creditors with the largest unsecured G Department of Education Developers. Erik Schmall of Studley ranging from $55.05 to $55.54 between claims are Fage USA Dairy Industry Requests competitive sealed bids by acted on behalf of the tenant. G WebMD Health Corp. (WBMD) Sept. 7 and Sept. 8, in a transaction Inc., owed $430,632; and Stonyfield 4 p.m. on Oct. 13 for classroom and art Matthew Leon and Billy Cohen of Martin J. Wygod, chairman, exercised worth $2,218,317. He now directly Farm, owed $191,536.38. supplies for all schools and offices under Newmark Knight Frank represented options on 399,960 shares of common holds 94,845 shares. the jurisdiction of the Board of the landlord. The asking rent was $46 G Queens Plaza Development Education of the City of New York. A a square foot. 100 Quentin Roosevelt Blvd., Garden prebid conference is scheduled for City, L.I. Tuesday, Sept. 21 at 1 p.m. at Brooklyn G Forrest Solutions signed an 11-year DEALS ROUNDUP Filed for Chapter 11 bankruptcy Borough Hall, 209 Joralemon St. For lease for 17,684 square feet at 19 W. 44th St. protection on Sept. 8. The filing cites more information, call (718) 935-2300 , an 18-story, 292,968-square-foot TRANSACTION SIZE estimated liabilities of $10,000,001 to or e-mail building owned by SL Green Realty COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE $50 million and estimated assets of [email protected]. Corp. The firm will move into the ninth $10,000,001 to $50 million. Among the floor. Paul Haskin of CB Richard Ellis ZymoGenetics Inc. $938.2 Bristol-Myers Squibb Co. SB M&A creditors with the largest unsecured G Department of Parks and Recreation represented the tenant in the (Manhattan) claims are U.S. Bank National Requests competitive sealed bids by transaction, while Ashley Gee, Meghan Scientific Games Corp. $250.0 Not disclosed GCI Association, owed $15.1 million; and 3 p.m. on Oct. 14 for the operation and Holzhauer and David Kaufman (Manhattan) Cetra/CRI Architecture, owed maintenance of interior food concession, negotiated on behalf of the landlord in- Cortview Capital Securities $125.0 Warburg Pincus (Manhattan) GCI $349,038.82. seasonal cafés and mobile food units at house. The asking rent was $45 a square 19 W. 44th St. $123.2 Deka Immobilien Investment GmbH SB M&A Randall’s Island Park, Manhattan. A foot. in midtown Manhattan G Taiz Holding recommended on-site meeting and tour Origin Foods (55%) $77.7 CapVest Ltd., PineBridge FB M&A 78 Laight St. is scheduled for Tuesday, Sept. 21 at 1 G Lucas Group signed a five-year lease Investments (Manhattan) Filed for Chapter 11 bankruptcy p.m. Contact Evan George at for 6,000 square feet at 500 Fifth Ave.,a REDS Management $45.0 Not disclosed GCI protection on Aug. 26. The filing cites (212) 360-2495 or 59-story, 686,353-square-foot building (Manhattan) estimated liabilities of $1,000,001 to [email protected]. owned by L&B Realty Advisors. The G-Mobile Holdings Ltd. $30.0 Musa Capital Advisors Ltd. GCI $10 million and estimated assets of firm will occupy part of the 11th floor. (Manhattan) G Economic Development Corp. $1,000,001 to $10 million. Among Richard Charkham and Justin Halpern Good Start Genetics Inc. $18.0 Safeguard Scientifics Inc., GCI creditors with the largest unsecured Requests proposals by 4 p.m. on Oct. 6 of CresaPartners represented the tenant, OrbiMed Advisors (Manhattan), claims are Vestry Marketing, owed for temporary staffing services for the while Sean Kearns and Harry Blair of SV Life Sciences Advisers $200,000; and Sledgehammer, owed department. Questions regarding this Colliers International represented the Coulomb Technologies Inc. $16.4 Rho Capital Partners Inc. GCI $10,000. request should be sent to Maryann landlord. The asking rent was $49 per (Manhattan), Voyager Capital, Siemens Catalano at [email protected]. square foot. Venture Capital GmbH, LS Industrial Systems, LS Corp., Hartford Ventures, GOVERNMENT CONTRACT G Fire Department of New York RETAIL Harbor Pacific Capital OPPORTUNITIES Seeks competitive sealed proposals by 4 G Bikini Editorial Inc. signed a 10-year Freshstart Venture Capital $7.5 Not disclosed GCI p.m. on Oct. 27 to provide inventory, lease for 5,750 square feet at 64-68 Corp. (Long Island City, Queens) Following are selected contract alterations, repairs, embroidery services, Wooster St., a five-story, 24,000-square- opportunities recently announced by New software development and other training foot building owned by Zar Property Selected deals announced for the week ended Sept. 11 involving companies in metro New York. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing York City agencies. To learn how to sell and development services for the NY. James O’Reilly of Tungsten shares of a company with the participation of a financial buyer. GCI: Growth capital investment goods and services to city government, department’s protective apparel and Property represented the tenant. David represents new money invested in a company for a minority stake. SB M&A: Strategic buyer visit www.nyc.gov/selltonyc. For a clothing distribution program. Zar negotiated in-house on behalf of the M&A represents a minority or majority acquisition of existing shares of a company without the searchable database of current procurement Questions regarding this bid should be landlord. The asking rent was $45 a participation of a financial buyer. source: capitaliq notices, visit www.nyc.gov/cityrecord. directed to Kristina LeGrand at square foot.

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SMALL BUSINESS INSIDE Pravina Raghavan of the SBA defends bootstrapping PAGE 23 How to keep your medical bills under control PAGE 24 Rankings of women-owned firms PAGE 26

SIMA FELDSHER Tele-Automation, telecom services Page 20

DECLINE AND FALL Loans to small businesses in New York state. DENNIS ROSENTHAL Jonkeith Communications, IT consultancy Page 18

RICARDO REZK Rico M. Panada, seller of packaged empanadas Page 20

Source: New York State Department of Banking

ANU PRESTONIA Khamit Kinks, hair salon Page 22 photos by buckphotos ennis Why can’t these companies get a bank loan? Inside the broken small business finance system

BY ELIZABETH MACBRIDE the recovery—if only they can find the capital to do so.They show up in surveys, too. A recent one by Pepperdine University found that access to early this month, the National Federation of Independent Business capital was the No. 1 business issue for half of private companies nationwide. released another dismal monthly report on small business hiring. Many of Both the total volume and total value of small business lending in New the owners surveyed see weak demand and remain fearful about the future. York state tumbled by nearly half between 2006 and 2009. Constrained by Don’t expect them to be leading the nation into recovery anytime soon. old underwriting traditions that arguably place too much emphasis on real But another group of entrepreneurs is willing to take calculated risks on See WHY on Page 18

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REPORT SMALL BUSINESS

ing interest rates, is now crushing the company; she is,he says,consid- HOW TO HELP Why are loans so hard to get? ering personal bankruptcy. SMALL BUSINESSES BANKS: A LONG, SLOW CLIMB Continued from Page 17 Mo.-based Kauffman Foundation, slowly to provide much economic BACK TO NORMALCY congress passed a package of estate prices—and new capital-re- which researches entrepreneurship. growth at this stage of the recovery. aid to small businesses last serve requirements imposed by fi- “We’re rationing capital so aggres- “Statewide, small businesses have at first glance, small business week. Among the measures in nancial reform—banks are still seen sively that we are limiting growth.” lost 337,000 jobs [since the begin- banking seems to offer an opportuni- it are a $30 billion loan fund as miserly, especially in the tricky As traditional bank lending lan- ning of the recession],” says Steven ty for healthy banks. The financial for small community banks small business lending market. guishes,credit cards—a central facet Cohen, deputy commissioner of the crisis decimated longtime small busi- and new loan limits in the “There are good companies out of small business financing in recent Empire State Development Corp. ness lenders like CIT, but left other SBA’s key program: $5 million there that can’t get credit,” says Bar- years—have become a much less re- stalwarts like Wells Fargo standing. instead of $2 million. ry Sloane, chief executive of Man- liable and costlier source of both The politicians certainly want New York state is stepping hattan-based Newtek Business Ser- startup and operating capital. Ven- banks to jump back into the Main up, too, with plans for a $50 vices Inc., a publicly held company ture capitalists,too,have pulled back ‘Statewide, small Street lending business. Under po- million fund for lenders that’s that is stepping into the lending sharply, as the underlying econom- businesses have lost litical pressure,all of the major banks to be up and running by the market because it sees an opportu- ics of their business have changed. committed to increasing their small end of this year. nity. “When I hear bankers on TV Meanwhile, a growing number of 337,000 jobs [since business lending this year—Wells Here are some other ideas say there’s no loan demand, that’s alternative lenders are stepping into the beginning of Fargo’s was up by 30% in the second about how to help. crazy.I’m surprised their noses don’t the gaps left by established players. quarter nationwide, compared with grow. There’s almost nobody that But they are making loans in num- the year-earlier period; J.P. Morgan the recession]’ THE FEDERAL GOVERNMENT can meet their ridiculous under- bers too small to have a real impact. —Steven Cohen, Empire State Chase’s was up 37%; Citibank and 1. needs to stop writing standards.” It’s hard to get a complete view of Development Corp. Bank of America say their small But there’s more to the story of the fractured financing system for business lending is up, too. intervening in the the small business credit drought small business. (Even the Federal The problem is that everyone is financial markets by than overly nervous bankers. Many Reserve Board, which this past sum- “They’re not yet hiring, and we need coming off such low numbers from purchasing Treasury people involved in getting money to mer held a national conference on in- them to.” 2008 and 2009 that the increases are securities. They are small businesses, from venture capi- creasing capital flows to small busi- much smaller than they appear.The crowding out private investment talists to nonprofit lenders, say the nesses, bemoans the dearth of data.) CREDIT CARDS: CHANGING number of bank loans made to small and have created an environment small business financing system re- But studies suggest, and interviews RULES FOR BORROWERS businesses in New York state where risk/return imbalances mains in disarray nearly three years with both entrepreneurs and execu- dropped to 203,832 in 2009 from have been created. So now after the start of the recession. “The tives in finance confirm, that the sys- attorney eric dixon sat down at 466,400 in 2006, according to the nobody can assess and price risk system isn’t working,” says Paul Ke- tem is fundamentally in transition— his 23rd Street office last month to state Banking Department. appropriately. drosky,a senior fellow at Kansas City, and, unfortunately, changing too check his accounts online, including The return to normalcy is likely —JOHNK . PAGLIA that of a credit card issued by J.P. to be very slow,because of the hang- Associate professor of finance, Morgan Chase. He was surprised to over from the financial crisis. Pepperdine University PAYING OFF CREDIT CARD DEBT see that the minimum payment on Consider Wells Fargo. The an account balance of less than bank’s takeover of Wachovia, final- 2. BANKS SHOULD discontinue BACK IN SPRING 2009, Dennis $5,000 had jumped into the triple ized this past spring, left one of the the use of personal Rosenthal was sure that Jonkeith digits. top small business lenders elsewhere credit scores to Communications, his “That made me look for the in the nation with 21 bank branch- evaluate Main Street Manhattan-based IT rate,” he says. es in New York City. Wells Fargo small businesses. consultancy, qualified for a loan Mr. Dixon insists he’s never aims to grow its share of the local Using them results through the federal stimulus bill. missed a payment—he uses the small business lending market, says in significant bank losses and It didn’t work out as he planned. card for the occasional marketing John Cole, business banking divi- leaves millions of performing Revenues at his company purchase and as a cash-flow cush- sion manager for New York, New small businesses unable to were dropping at the time, and ion—so what he saw came as a Jersey and Connecticut. access credit and create jobs. shock: The rate had jumped from Yet it’s harder to expand than it he had built up $35,000 of debt —MITCH JACOBS 6% to 9%. seems. That’s because Wells Fargo on his three business credit J.P.Morgan says it is not raising hasn’t changed its underwriting Chief executive, cards. Then he heard about the rates on its small business cards, but principles.As at most banks,under- Alternative lender new America’s Recovery Capital could not offer more details about writing for small loans is done par- On Deck Capital Loan Program, known as ARC, Mr. Dixon’s story. But the scenario tially via an automated system. Ex- which offers loans of up to Mr. Dixon describes is increasingly perts say banks’ loan approval rates 3. CREDIT CARDS have become $35,000 to businesses that have been profitable for two of the past three common. Small businesses weren’t for small businesses fall between the central piece of years. Jonkeith had been in the black in 2006 and 2007. “I thought I was the covered in the new financial reform 20% and 30%. the small business poster child for this program,” Mr. Rosenthal says. bill that enacted consumer protec- Mr. Cole says that at Wells Far- financing system. He contacted the Midtown Manhattan Small Business Development tions against practices like hair-trig- go, loans are made based on cash Those that small Center at Baruch College for help, then attacked a mountain of paperwork. ger rate increases. flow plus collateral. Most small businesses use “There was a tremendous amount of forms for a small amount of money,” he What makes this a more serious businesses’ cash flow has declined, should be subject to the same says, citing requests for three years of tax returns and detailed financial problem is that credit cards have and most owners have seen the val- protections consumers’ are: projections. quietly grown into the central piece ue of their real estate drop. against hair-trigger rate increases Mr. Rosenthal decided to target J.P. Morgan Chase, since it not only was of the small business financing sys- “The requirements from banks and the like. participating in the program but also was his bank. The upshot: He was tem. As bank loans became harder are very tough,and the loan package —PAUL KEDROSKY turned down in August 2009, he says. to come by and the paperwork more has to be nearly perfect to get ap- Senior fellow, A stunned Mr. Rosenthal wrote to J.P. Morgan Chief Executive Jamie demanding, business owners put proved,” says Zahra Amanpour, di- Entrepreneurially focused Dimon, protesting the decision and copying several members of Chase’s their debt on their cards, sometimes rector of NYC Business Solutions, Kauffman Foundation board. About six weeks later, he got approved for a loan. at rates that would make consumers’ which is part of the Department of It’s not clear if his letter was a factor. And the ARC loan was much smaller eyes pop. Small Business Services and helps 4. THERE HAS BEEN a huge than requested—just $23,000. Plus, there were six monthly payments, A survey by the Washington, owners with a variety of tasks, in- destruction in the starting in November 2009, that weren’t paid to him but went to his credit D.C.-based National Small Busi- cluding getting loans. marketplace. The card companies instead. The first five covered only the minimum payments, ness Association found that among “While we’ve seen some banks trust factor is gone; while the final one covered the rest. companies with fewer than 500 em- loosen up, it’s nothing to get excited small businesses that A Chase spokesperson couldn’t comment specifically about Mr. ployees, 34% carried more than a about,” says Ms. Amanpour. put all their eggs in Rosenthal’s case but said, “We worked hard to meet the detailed quarter of the company’s overall Some banks have started or one bank’s basket are in trouble. debt load on a credit card. beefed up what are called “second requirements of the ARC program and made the most ARC loans of any bank They should take charge by main- More than 70% of owners with look” programs to re-examine loan in the country.” taining their business credit score, a card used for business expenses applications that were denied. That Still, the loan helped Mr. Rosenthal pay off his credit card debt. He also reported paying interest of more may be helping: A July Federal Re- available from Dun & Bradstreet decided to move away from software and hardware installation to pure than 10%. serve survey found that big banks na- and Equifax. Lenders won’t tell you consulting, a move that required fewer upfront purchases. Revenues for 2009 Mr. Dixon—who works for tionwide had reported easing their they are using it, but they are. were about $152,000. companies and people caught up in small business lending standards for —ROHIT AROR For now, he figures it’s not worth trying again for a different type of loan. state investigations—has a client in the first time since late 2006. Chief executive, “It’s hard for a service business to get bank funding,” he says. the pet care business who financed But many observers say that ex- Manhattan-based lending —ANNE FIELD her company entirely on credit pecting banks to take greater risks is marketplace Biz2Credit cards. Debt in the six figures, at ris- See WHY on Page 20

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REPORT SMALL BUSINESS GRABBING A LIFELINE OF CREDIT BUSINESS OWNER Sima Feldsher faced a major problem last year: New Why are loans so hard to get? equipment was coming on the market and the five technicians at her seven-employee Manhattan- Continued from Page 18 Over the years,nonprofits such as varying percentage points over based company, Tele-Automation, nonsensical, in light of the fact that Seedco and microlenders like Acción prime for 10- to 25-year loans. needed to be trained in how to use it. so many saw healthy profits last year, International and Grameen Bank, The bottom line here for more Started in 1990, the company when they weren’t lending much. along with a handful of for-profit small businesses? A higher cost of designs, installs and maintains high- “What would be the incentive?” companies, had come to serve as a capital that sometimes isn’t much end telecom equipment. But training asks Lesia Bates Moss, president of second tier behind the banks. But less than what credit card companies employees meant sending them to nonprofit alternative lender Seedco those distinctions are blurring now as charge their favored customers. workshops and paying for hotel Financial. “Banks have shown they the banks stay on the sidelines. rooms. Plus, many corporate customers had either shut their doors or were can be profitable with higher capital Newtek provides small business VENTURE CAPITALISTS: paying their bills more slowly than before. As a result, her projected revenues requirements and stronger under- services such as website design and THE FASTEST ADAPTERS for 2009 were about $900,000, down from $1.3 million the year before. writing.” merchant services, but recently ex- Ms. Feldsher had taken out a $100,000 line of credit with Citibank about 15 panded its lending operation and is meet a new breed of equity in- years before and, she says, had paid on time. So she asked to increase the ALTERNATIVE LENDERS: now poised to make $75 million vestors called “super-angels.” One amount to $200,000. Request denied. She then tried Bank of America, where CHARGING MORE worth of small business loans example is Philadelphia-based First she’d also had a $100,000 line of credit. Still no luck. through the government’s SBA Round Capital,which opened a New Ms. Feldsher reached out to Seedco, a nonprofit that works with small where banks are hesitant to lending programs.In addition,it has York office on Union Square in May. businesses. Seedco had helped her before: She’d received a three-year step, alternative lenders are wading a portfolio of $50 million in short- First Round thrives on the idea $100,000 loan at a 4% interest rate right after the Sept. 11 terrorist in. Take Seedco. From its office on term receivables financing. that startups now require much less attacks. Three years later, she’d taken out another $100,000 loan. “They Broadway, it lends money to small Chief Executive Barry Sloane capital than they did 10 years ago, at knew our account, our history,” she says. businesses as a way of helping disad- says Newtek’s lending numbers may the peak of the Internet boom. vantaged communities. With a loan climb by as much as 50% in 2011. That’s when many existing venture In about 60 days, Ms. Feldsher was approved for a five-year, $250,000 portfolio of $33 million nationwide, “We never wanted to be a big capital funds were born. Entrepre- loan with an 8% rate. She’s used it to pay for training and new equipment, as Seedco Financial is now set to lend lender,” he says. “But we see an op- neurs no longer need the $2 million- well as other expenses. “We’re much stronger today,” she says. $20 million in 2010,and has recent- portunity.” and-up investments VC shops are —ANNE FIELD ly added eight staffers to bring its While the doors at Seedco, structured to make. employee total to 36. Newtek and other alternative “There’s a transition going on lenders are open wider to small now,” says Anand Sanwal, chief ex- businesses than the doors at banks ecutive of Manhattan-based CB In- are—both organizations, for insights, a research company that fol- stance, embrace startup financ- lows the field. “Are these large . ing—it’s important to note that mega-funds that were popular in the BoardServeNYC org they also charge higher interest late 1990s and early 2000s going to rates. Seedco’s rates are typically 1 be possible going forward? People to 2 percentage points above a stan- are asking.” GIVE BACK. dard bank loan; Newtek charges See WHY on Page 22 MONEY FOR GROWTH IT’S A CONUNDRUM, to say the least: CONNECT. To boost growth, Ricardo Rezk needs a bigger space. But he can’t get a bank loan until he makes more money. In 2004, Mr. Rezk started Rico M. Panada, a Bronx-based seller of packaged empanadas, stuffed turnovers popular in his native LEAD. Buenos Aires. He sells to Whole Foods, gourmet markets and other supermarket chains. In 2009, he realized he couldn’t NEW YORK CITY: continue to grow the business and branch out past the tristate area unless he moved from his 1,500-square-foot building to something much bigger. After GIVE BACK IN A NEW WAY several months of searching, he found perfection: a 5,000-square-foot space, also in the South Bronx. But the move required a major renovation, not to mention a $150,000, 1,000-square-foot industrial freezer. Hundreds of nonprofit organizations in NYC, in all five boroughs, are seeking new board Mr. Rezk figured he stood a better chance of getting a bank loan to help fund the move if he owned the property, rather than leasing it. With that in members – talented and committed individuals eager to share their skills and expertise. mind, in April 2009, according to Mr. Rezk, he approached J.P. Morgan Chase, his bank, with what he describes as a careful, conservative BoardServeNYC connects nonprofit organizations with individuals who want to business plan, description of distributors and supermarket chains give back through board service. clamoring for his product, a FICO score of over 800, and a request for a $1.2 million loan. BoardServeNYC accepts applications from potential board candidates and He says he was advised to drop the effort. According to Mr. Rezk, the bank NYC nonpofit organzations year round. had changed its policy and could only fund the purchase and renovation if he had a bigger profit. Trouble was, his inability to expand was cramping both his revenues and profits. Revenues of about $250,000 have been flat for the Apply today. Visit BoardServeNYC.org to learn more. past two years, as have profits. Plus, according to Mr. Rezk, being in the food industry also was a mark against him. “I felt totally defeated,” he says. J.P. Morgan Chase wouldn’t comment on specific applications, but said PROUD PARTNER that its nationwide small business lending is up 37% to $4.5 billion in the first six months of 2010, compared with the same period the year before. Recently, Mr. Rezk had to turn away business from a Texas-based GIVE. ADVOCATE. VOLUNTEER. supermarket chain interested in selling his product—he lacked the manufacturing capacity. But the story isn’t over. Just a few weeks ago, a real LEAD estate broker told him about another potential property and gave him a CORPORATE LIVE UNITED contact at a local small business development group that might be able to SPONSOR help him find money. Mr. Rezk plans to keep trying. unitedwaynyc.org —ANNE FIELD

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wide. With default rates that are typical for portfolios of that size,the Why are loans so hard to get? company says it is on track to dou- SOMETIMES, ble its lending this year. SOMETHING Mitch Jacobs, chief executive of Continued from Page 20 Yet the fact is, there simply aren’t ence is a sign that the private equity On Deck, says that the small busi- IS BETTER First Round seems to be one an- enough firms like First Round to world is adapting faster than other ness financing system has never swer to the question. According to make up for the lack of investment by parts of the small business financing worked well.The credit drought has THAN NOTHING founder Howard Morgan, super- other venture capital funds. VC in- system. Interestingly, it’s also one of worsened conditions for small busi- angels like First Round invest vestments in New York area compa- the investors in On Deck Capital, a nesses, he says, but that’s not as im- IN 2006, Anu Prestonia relocated $250,000 to $1 million, with an av- nies dropped to $1.4 billion last year, fast-growing Manhattan-based portant as what is turning into a her then-10-year-old hair salon, erage investment of $500,000. from $2.1 billion in 2006. They are company that uses software to eval- window of opportunity for reform. Khamit Kinks, from TriBeCa to Indeed,Mr.Morgan financed his on track to climb this year, but uate a small business’s cash flow and “There has never been adequate Brooklyn, after her landlord first venture back in 1992 to the tune nowhere near 2006’s level. In 2000, makes small,short-term loans based access to capital,” he says. “The doubled her rent. But many of her of $5 million; his latest, which he venture capitalists made $10 billion on that cash flow. change is not as important as the fo- clients “didn’t want to cross the sold after only seven months, called of investments in the New York area. On Deck has deployed $80 mil- cus that everyone now has on small bridge,” she says. As a result, the for an investment of just $750,000. Still, First Round Capital’s pres- lion of capital in 3,000 loans nation- business and Main Street.” move meant practically starting from scratch. Just as she’d begun to rebuild her business in earnest, the recession hit. Revenues fell to about $700,000 in 2009, from more than $800,000 before the move from TriBeCa. Ms. Prestonia knew she needed to offer day spa services to remain competitive and start sending her eight- person staff to receive additional

training. The answer, she decided, was to take out a loan. In January 2009, a friend suggested that, instead of going it alone, she contact the Brooklyn Small Business Development Center at Citytech at the New York City College of Technology. Working with José Manuel De Jesús, a business counselor at the SBDC, Ms. Prestonia applied to a fund started in 2001 after the Sept. 11 attacks and run by the New York Business Development Corp. It was a tough slog. In the middle of applying, the fund ran out of money, according to Mr. De Jesús. Then the duo tackled more paperwork and tried another lender. Still no luck. “I was ready to give up,” says Ms. Prestonia. “But they were determined to get me a loan.” Finally, they found Superior Financial Group, a nonbank, SBA-approved lender based in Walnut Creek, Calif. More than a year after starting her search, she won approval for a $25,000 loan—considerably less than the $100,000 she had first asked for, but still a lifesaver. Ms. Prestonia has used the money mostly as a cash-flow cushion and has had to put her more ambitious plans on hold. “In the old days, she would have been able to get the $100,000,” says Mr. De Jesús. “But the times are different.” —ANNE FIELD

22 | Crain’s New York Business | September 20, 2010 20100920-NEWS--0023-NAT-CCI-CN_-- 9/16/2010 6:26 PM Page 1

REPORT SMALL BUSINESS

becomes the best way to continue. The reason for me was that it allowed Bootstrapping is not a bad word the owners to determine what clients to engage and what international ex- strapping allows you to determine your business to the next I owned a small business con- pansion we wanted.We did not have SBA provides help how to grow and build your business level. This is where the sulting firm for six years, and it to worry about how a launch in a new for entrepreneurs at a pace that is comfortable for you. SBA can help finance a was great being able to build it country would affect our bank pay- Another benefit of bootstrap- small business through from its first client to its 30th. ment or whether the equity partners who self-fund biz ping is that when you do decide to our loan-guarantee pro- Consulting is one of the hard- would vote for it. bring in third-party financing, you grams,such as the 7(a) and est businesses to raise financ- Bootstrapping isn’t a bad word.If sk any entrepreneur, can show a track record of success.It 504. The 7(a) program can ing for,as it deals with in- you do your research and prepare ef- current or aspiring,their allows investors/banks to under- be used for just about any tellectual capital and not fectively, it can help you start your biggest concern about stand that you have the business in- small business need, a brick-and-mortar as- small business, and the SBA and its launching or growing tellect to maintain and grow a prof- and the 504 program is PRAVINA set. Bootstrapping is one partners can help you along the way. their business, and the itable and successful business.It also generally used to pur- RAGHAVAN of the most practiced Aanswer will come quickly: money. allows you to decide what type of fi- chase real estate or ways to start the busi- Pravina Raghavan is the SBA’s New York As entrepreneurs search for capi- nancing you will need to advance equipment. ness, and eventually it district director. tal, they may hear that a business needs to bootstrap, which means financing the business with their own funds. Some consider bootstrapping to be an ugly word, implying that it means a business is weak or not a “real” business. However, the reality is that bootstrapping often allows entrepreneurs to keep control of their business and minimize their debt, even as they assess when and how to grow the business, possibly through outside investors or financing. What does this mean for an entrepreneur? You need to figure how your business can survive on the amount you can put in as an initial and ongoing investment. It involves being realistic about what is needed to survive and grow, and also about identifying the exit points. It can be tough to take a hard look and answer these questions, but it is critical to

the business’s success. Group, Inc. Photos: John Pinderhughes Inc. Ad: UniWorld © 2010 Consolidated Edison Company of New York, The SBA can help luckily,there are several free,helpful resources to assist you with this process. If you are in New York City, there is the U.S. Small Business Ad- ministration (www.sba.gov) or New York City’s Department of Small Business Services. If you are thinking more nationally,the SBA has partnerships with various organizations such as SCORE—Counselors to Ameri- ca’s Small Business, Small Business Development Centers and Women’s Business Centers to assist in building your business plans and contacts. For more information on these organizations, visit www.sba.gov. After you’ve built a plan that includes both your business’s strengths and weaknesses (which should be a living document and updated every quarter), financing becomes a critical element.This is where bootstrapping comes into play. What do you Alina Seyler, CEO, Carpet Fashions; Jennifer Jackson, President T&T Janitorial Services, Inc.; Eileen Guzzo, President & CEO, Donnelly & Moore need to get your first client,your first Corporation; Joyce Takiguchi, President & Co-founder, Comstar International, Inc. (eco-friendly chemical manufacturer) prototype, or to market your business? These are questions that can be answered by looking at what investment you can put in, the type of re- What Ceiling? turn you require and the time frame. It involves looking at your personal Women business owners who partner with the Con Edison Supplier Diversity Program routinely shatter finances and seeing what is possible glass ceilings. And any other barriers that get in their way. Whatever the business – from construction to for investment in the business. cleaning services – women entrepreneurs throughout the New York region have turned their partnerships Why do it? Many businesses survive and thrive on bootstrapping. It with Con Edison into economic opportunity for themselves, their employees and their communities. allows the owners to make decisions Find out how powerful a partnership can be. Con Edison. ON IT. about when to bring on new resources or assets, or to launch a new product line. When you obtain financing, someone else is part of the Visit www.conEd.com/supplierdiversity or call Joy Crichlow, Director, equation. If it is the bank, they are Con Edison Supplier Diversity Program at 212-460-3076. claiming a part of your profit. If it is an equity partner or venture capital- ist, they are guiding your decisions on how to grow the business. Boot-

September 20, 2010 | Crain’s New York Business | 23 20100920-NEWS--0024,0025-NAT-CCI-CN_-- 9/16/2010 5:30 PM Page 1

REPORT SMALL BUSINESS

HOW-TO are willing to negotiate their prices. Here are some tips on how you can Unexpected medical bills? Negotiate! negotiate lower bills from the moment you book an appointment.

“If I ever had a situation like that TIP 1 Health care advocacy firms can help slash costs again, I would use them without Prevent big bills ahead of time. hesitation,” says Mr. Palmer. just one day—last summer.As Mur- Black Bear Capital Management in High out-of-pocket medical if your doctor recommends a BY ELAINE POFELDT phy’s law would have it, she suffered Manhattan,turned for help to Med- costs are a harsh fact of life for many procedure such as a colonoscopy, severe stomach pains and needed ical Cost Advocate, a firm in Wyck- entrepreneurs because they and don’t assume you have to have it lenn palmer found tests in the emergency room the off, N.J., that negotiates medical their dependents either lack medical done at the facility he or she initial- himself owing $7,000 night before she was to join New bills for clients with hospitals and insurance or have plans that require ly suggests, advises Dr. Jan Berger, in medical bills after York University’s health plan as an other providers in exchange for 35% them to shoulder a large share of the chief medical officer at Silverlink his daughter’s health incoming law student. of the savings.The company helped costs. But as Mr. Palmer’s experi- Communications, a medical com- coverage lapsed—for Mr. Palmer, chief executive of him shave about $4,000 off his bill. ence shows, some medical providers munications firm. Your physician G may have another affiliation some- where else that charges less. “Ask if there is an outpatient facility where you can get the procedure done at a lower cost,” she advises. To make sure alternative facilities are up to snuff, consider using the U.S.Department of Health and Hu- man Services’ Hospital Compare tool at hospitalcompare.hhs.gov. You can use the “Quality of Care” section of the site to see how a facility stacks up next to other local options. It shows data from surveys of patients on the care they received,information on how closely a facility follows recommended medical guide- lines,and the survival rate of patients after undergoing a given procedure.

TIP 2 Learn the going rates. if you pay large portions of your medical bills out-of-pocket, famil- iarize yourself with typical fees in New York City for a particular type of office visit or procedure.Then use that information to negotiate. “When someone is not insured, they often pay two to three times as much as anyone else in the waiting room,” says Betty Heiman, president of Transparent Health Net- work, a young company that secures medical care at prearranged prices for its several hundred mostly unin- sured members.The rates, based on Medicare reimbursements, are Buy raw materials from Mexico. available for 3,000 doctors, dentists and medical facilities in New York and New Jersey.Members pay $39 a Research development in the USA. month for individual plans and $54 for household memberships. To learn what rates local hospi- Ship packages to China. tals and medical providers typically accept, check out sites such as

1 Healthcare Blue Book (healthcare With ofﬁces in over 60 countries and territories, HSBC has the capability to provide you bluebook.com), New Choice with on-the-ground connections to help you grow your business internationally. Working Health (newchoicehealth.com), with your relationship manager, you will gain insights and discover how to navigate and OutOfPocket (outofpocket.com) understand the international marketplace. and PriceDoc (pricedoc.com).

Visit your local branch, call 866 427-2094 or TIP 3 go to us.hsbc.com/unlock to ﬁnd out more. Check bills for mistakes and overcharges. if you need to go to the hospital, don’t accept bills that lump all charges together,advises Beth Mor- gan, president of Medical Bill De- tectives, a medical-negotiation firm in Wilton, Conn., that represents consumers nationally. Call to ask for an itemized ver- sion. You may be able to negotiate a 1The HSBC Group operates through a network of afﬁliates and subsidiaries around the world. reduction if you notice that you were In the United States, products are offered through HSBC Bank USA, N.A. Member FDIC, Equal Credit Opportunity Lender. billed for services you did not receive ©2010 HSBC Bank USA, N.A. or find charges that seem unusually high or should have been covered in

24 | Crain’s New York Business | September 20, 2010 20100920-NEWS--0024,0025-NAT-CCI-CN_-- 9/16/2010 5:30 PM Page 2

REPORT SMALL BUSINESS

the cost of the procedure,such as sur- time as possible—and not let that panies and entrepreneurs in New gical equipment,robes and dressings. get the better of you.” York City. “Ask questions,” Ms. Morgan “An attorney [for the hospital] urges. TIP 6 will give you a better discount than If you get an “explanation of ben- Weigh risks of playing hardball. the preceding collection agency efits” from your insurance company will,” he says, noting that it’s often that requires you to pay high out-of- what if you’re facing a crushing hard for attorneys to prove in court pocket costs, look out for a code in- hospital bill and you don’t have a that a consumer even owes a debt, dicating that your insurer has paid prayer of paying it, even through a because crucial documents can be the “usual, customary and reason- payment plan? Delaying payment lost by others who’ve handled the able rate,” or UCR, for your care, until the 11th hour—when the bills before them. COFFEE AND SAVINGS: Medical Cost says attorney Jay Nussbaum, chief hospital takes legal action—may be Delaying payment could hurt Advocate chief executive Derek Fitteron executive of Healthcare Watchdog, your best negotiating tool, says your credit score,Mr.Nitzkin warns. (right) helped chop $4,000 from Black a medical-negotiation firm that Gary Nitzkin, a credit and collec- But if you can’t come up with the Bear Capital Management CEO Glenn does business in and around New tions attorney in Southfield, money, this approach may be more Palmer’s medical bill.

York City.The UCR is supposed to Mich., whose clients include com- palatable than going bankrupt. buck ennis reflect what doctors in your area usually get paid for a given type of office visit or procedure. Often, he says, insurance companies provide unrealistically low reimbursements. By contacting medical professionals in your area who do the same type of SUNDAY OCTOBER 17 work to see what they charge, you may be able to gather evidence that KIDNEY SOUTH STREET SEAPORT, NYC proves you were not reimbursed ad- 2010 equately, he says. NEW YORK CITY KIDNEY WALK TIP 4 WALK Consider hiring help. if you don’t have the time to fight a hospital bill or insurance company that you think has treated you unfairly,consider hiring a medical-negotiation firm to do battle for you. “Many of our subscribers are very capable, but they have lives,” says Mr. Nussbaum. These shops are typically staffed by professionals with backgrounds in medicine, medical coding, insurance or law,and they use their insider’s knowledge of medical pricing to cut better deals for clients on medical care. Look for a firm with pricing that suits the number of medical bills you typically have. Medical Cost Advocate, for in-

stance,lets you use its service for one THANKS TO OUR MAJOR SPONSORS bill at a time by entering information from each into its website. Healthcare Watchdog charges individual subscribers $14.95 a month to deal with an unlimited number of medical bills, plus 28% of any savings it secures. Healthcare Watch- dog also offers a business-to-business service, helping doctors’ offices to collect more from insurance companies on batches of submitted claims. incorporated

TIP 5 Enlist your doctor in the cause. your doctor may be able to help you if your insurance company has tried to avoid paying for your care by saying it isn’t medically necessary. Ask him or her to write a letter—ide- ally including citations from medical journals—explaining why it is. “Denials are part of the business plan [of insurers],” Mr. Nussbaum says.“Winning on them is absolute- ly possible, as long as you are willing WALK WITH US! to dig in and understand that they ACROSS THE BROOKLYN BRIDGE AND HELP FIGHT KIDNEY DISEASE. are going to take up as much of your 1 in 9 Americans have kidney disease and most don’t know it.

To sign up for Crain’s SMALL BUSINESS newsletter, go to WALK.KIDNEY.ORG/NEWYORKCITY TO FORM A COMPANY TEAM CALL 212.889.2210 x221 www.crainsnewyork.com/smallbiz.

September 20, 2010 | Crain’s New York Business | 25 20100920-NEWS--0026-NAT-CCI-CN_-- 9/16/2010 6:24 PM Page 1

REPORT SMALL BUSINESS NY Area’s Largest Women-Owned Companies Ranked by 2009 revenues

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REQUEST FOR PROPOSALS REAL ESTATE AUCTION

CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of Autumn NOTICE OF FORMATION OF Notice of Qualification of SOURCERY Games RS I, LLC. Authority filed with Skywriting Media LLC. Article of SOLUTIONS LLC. Authority filed with NY Dept. of State on 8/6/10. Office Organization filed with the Secretary Secy. of State of NY (SSNY) on location: NY County. Princ. bus. of State of NY (SSNY) on 4/26/2010. 08/03/10. Office location: NY County. addr.: 54 Thompson St., 4th Fl., NY, Office location NEW YORK County. LLC formed in Delaware (DE) on NY 10014. LLC formed in DE on SSNY has been designated as agent 06/25/10. Princ. office of LLC: 360 8/2/10. NY Sec. of State designated upon whom process against it may Madison Ave., 18th Fl., NY, NY 10017. as agent of LLC upon whom process be served. The Post Office address SSNY designated as agent of LLC against it may be served and shall to which the SSNY shall mail a copy upon whom process against it may AUCTION OFFICE SPACE mail process to: c/o CT Corporation of any process against the LLC be served. SSNY shall mail process System, 111 8th Ave., NY, NY 10011, served upon him/her is C/O the LLC to c/o Zachary Wydra, Beck Mack & regd. agent upon whom process may 72 Seaman Avenue 1C. New York, Oliver at the princ. office of the LLC. Wall Street be served. DE addr. of LLC: 1209 NY 10034. Purpose of LLC: to DE addr. of LLC: 2711 Centerville Boutique Law Firm in Class A space on Orange St., Wilmington, DE 19801. engage in any lawful act or activity. Rd., Ste. 400, Wilmington, DE 19808. Wall Street with federal and state Cert. of Form. filed with DE Sec. of Street address of Principal Business Arts. of Org. filed with DE Secy. of commercial litigation and related State, 401 Federal St., Dover, DE location is: 72 Seaman Avenue 1C. State, P.O. Box 898, Dover, DE 19901. Purpose: any lawful activity. New York, NY 10034. 19903. Purpose: Any lawful activity. bankruptcy practice seeks comparable firm of highly credentialed attorneys Notice of Formation of Carmen NY Notice of Formation of 555 WEST Notice of Formation of GWB DEVEL- having at least a $ 1 million, compatible, LLC. Art. of Org. filed with Secy. of 23RD PROPERTIES, LLC. Arts. of OPMENT PARTNERS, LLC. Arts. of low cost income book of business State of NY (SSNY) on 05/13/2010. Org. filed with Secy. of State of NY Org. filed with Secy. of State of NY for potential expansion in collegial Office location: NY Co. SSNY desig- (SSNY) on 08/13/10. Office location: (SSNY) on 06/30/10. Office location: nated as agent of LLC upon whom NY County. SSNY designated as NY County. Princ. office of LLC: 250 environment; Opportunities beginning process against it may be served. agent of LLC upon whom process W. 57th St., Ste. 1120, NY, NY 10107. with counsel and referral arrangements SSNY shall mail process to the LLC, against it may be served. SSNY shall SSNY designated as agent of LLC and space sharing. Contact managing c/o Michael Goodman, 125 Jericho mail process to the LLC, 24 Altamont upon whom process against it may partner at [email protected]; Turnpike, Ste. 300, Jericho, NY 11753. Ct., Morristown, NJ 07960. Purpose: be served. SSNY shall mail process principals only. Purpose: any lawful act or activity. Any lawful activity. to the LLC at the addr. of its princ. office. Purpose: Any lawful activity. Notice of Formation of PHELAN, LLC. Notice of Formation of JAZTB LLC. VISIT OUR WEBSITE Arts. of Org. filed with Secy. of State Arts. of Org. filed with Secy. of State Notice of Formation of 501 Madison- of NY (SSNY) on 8/19/10. Office of NY (SSNY) on 08/04/10. Office Sutton LLC. Arts. of Org. filed with NY CRAINSNEWYORK.COM location: NY County. SSNY designated location: NY County. SSNY designat- Dept. of State on 7/22/2010. Office as agent of LLC upon whom process ed as agent of LLC upon whom location: NY County. Sec. of State against it may be served. SSNY shall process against it may be served. designated agent of LLC upon whom mail process to princ. bus. loc.: c/o SSNY shall mail process to process against it may be served and PUBLIC & LEGAL NOTICES The LLC, 144 E. 24th St., 5D, NY, NY Corporation Service Co., 80 State St., shall mail process to the principal 10010, Attn: Chris Ann Phelan. Albany, NY 12207, regd. agent upon business addr.: 1185 Park Ave., NY, NOTICE OF FORMATION OF Salem Purpose: any lawful activity. Notice of Formation of ICER of 322 W. whom and at which process may be NY 10128, Attn: Grace S. Sutton, 138th Street, LLC. Art. of Org. filed Ginger LLC. Article of Organization Notice of Qualification of CenturyTel served. Purpose: Any lawful activity. regd. agent upon whom process may with Secy. of State of NY (SSNY) on filed with the Secretary of State of Long Distance, LLC. Authority filed be served. Term: until 12/31/2060. 05/26/10. Office location: NY Co. NY (SSNY) on 06/10/2010. Office with NY Dept. of State on 6/14/10. Notice of Formation of limited liability Purpose: any lawful activity. SSNY designated as agent of LLC location NEW YORK County. SSNY Office location: NY County. LLC company (LLC). Name: Derived Data, upon whom process against it may has been designated as agent upon formed in LA on 1/14/02. NY Sec. of LLC. Articles of Organization filed Notice is hereby given that a license, be served. SSNY shall mail process whom process against it may be State designated as agent of LLC with Secretary of State of New York number 1247222 for liquor has been to the LLC, c/o ICER Brands, LLC, served. The Post Office address to upon whom process against it may (SSNY) on 7/15/2010. NY office loca- applied for by the undersigned to sell 1385 Broadway - 16th Fl., New York, which the SSNY shall mail a copy of be served and shall mail process to: tion: New York County. SSNY has liquor at retail in a wine bar and cafe NY 10018. Purpose: any lawful act any process against the LLC served c/o CT Corporation System, 111 been designated as agent of the LLC under the Alcoholic Beverage Control or activity. upon him/her is C/O the LLC 45 8th Ave., NY, NY 10011, regd. agent upon whom process against it may Law at 53 Irving Place, New York, West 60th St,, #5J. New York, NY upon whom process may be be served. The post office address to New York County for on premises Notice of Formation of Remedy 10023. Purpose of LLC: to engage served. LA and principal business which SSNY shall mail a copy of any consumption. H.O.C Wine Inc. d/b/a Hospitality Group LLC. Arts. of Org. in any lawful act or activity. Street addr.: 100 CenturyLink Dr., Monroe, process against the LLC served upon Pierre Loti Wine Bar & Cafe filed with NY Dept. of State on address of Principal Business loca- LA 71203. Arts. of Org. filed with LA him/her is: Oleg Doina, 866 United 8/2/10. Office location: NY County. tion is: Same as above. Sec. of State, 8585 Archives Ave., Nations Plaza, Ste 566, New York, NY Notice of Qualification of APOLLO Sec. of State designated as agent of Baton Rouge, LA 70809. Purpose: 10017. Purpose/character of LLC: CREDIT MANAGEMENT II, L.P. LLC upon whom process against it Name of For. LP: AB PERRY VALUE all lawful purposes. any business activity allowed by law. Authority filed with Secy. of State of may be served and shall mail PARTNERS (INTERMEDIATE) L.P. NY (SSNY) on 07/30/10. Office loca- process to the principal business Appl. for Auth. filed with Sec. of State Notice of Qualification of CANTERBURY Notice of Qualification of AGA 15th tion: NY County. LP formed in addr.: 350 William St., Scotch Plains, of NY: 6/22/2010. Jurisd. and date of JUPITER, L.L.C. Authority filed with Street, L.L.C. Authority filed with NY Delaware (DE) on 06/29/10. Princ. NJ 07076. Attn: John J. Roder, Jr. org.: DE 6/8/2010. Princ. bus. loc.: Secy. of State of NY (SSNY) on Dept. of State on 6/11/10. Office office of LP: Attn: John J. Suydam, 9 Purpose: any lawful activity. 1345 Ave. of the Americas, NY, NY 08/30/10. Office location: NY County. location: NY County. Princ. bus. W. 57th St., 43rd Fl., NY, NY 10019. 10105. NY State off. loc.: NY Cty. LLC formed in Delaware (DE) on addr.: 245 Park Ave., 26th Fl., NY, NY SSNY designated as agent of LP NOTICE OF FORMATION OF LIMITED Sec. of State designated as agent 08/27/10. Princ. office of LLC: 350 10167. LLC formed in DE on 6/2/10. upon whom process against it may LIABILITY COMPANY. NAME: REDI- upon whom process against it may Park Ave., 4th Fl., NY, NY 10022. NY Sec. of State designated as agent be served. SSNY shall mail process CHEM LLC. Articles of Organization be served. Sec. of State shall mail SSNY designated as agent of LLC of LLC upon whom process against it to the LP at the addr. of its princ. were filed with the Secretary of State copy of process to: c/o AB Perry upon whom process against it may may be served and shall mail process office. Name and addr. of each gen- of New York (SSNY) on 08/16/10. Value Partners GP LLC, 1345 Ave. of be served. SSNY shall mail process to: c/o CT Corporation System, 111 eral partner are available from SSNY. Office location: New York County. the Americas, NY, NY 10105. Addr. to c/o Corporation Service Co. (CSC), 8th Ave., NY, NY 10011, regd. agent DE addr. of LP: c/o Corporation SSNY has been designated as agent of LP in DE is: Corporation Service 80 State St., Albany, NY 12207-2543. upon whom process may be served. Service Co., 2711 Centerville Rd., of the LLC upon whom process Company, 2711 Centerville Rd., Ste. DE addr. of LLC: c/o CSC, 2711 DE addr. of LLC: The Corporation Ste. 400, Wilmington, New Castle against it may be served. SSNY shall 400, Wilmington, DE 19808. Name/ Centerville Rd., Ste. 400, Wilmington, Trust Co., 1209 Orange St., Cnty., DE 19808. Arts. of Org. filed mail a copy of process to the LLC, addr. of GP avail. from Sec. of State. DE 19808. Arts. of Org. filed with DE Wilmington, DE 19801. Arts. of Org. with The Secy. of State of the State c/o Mordente Law Firm, LLC, 160-29 Authorized office in DE where Cert. Secy. of State, Div. of Corps., 401 filed with DE Sec. of State, 401 of DE, Dept. of State, Div. of Corps., Union Turnpike, Fresh Meadows, of LP is filed: DE Secy. of State, Federal St., Dover, DE 19901. Federal St., Dover, DE 19901. John Townsend Bldg., Dover, DE New York 11366. Purpose: For any Townsend Bldg., Dover, DE 19901. Purpose: Any lawful activity. Purpose: any lawful activity. 19901. Purpose: Any lawful activity. lawful purpose. Purpose: any lawful activity.

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PUBLIC & LEGAL NOTICES Notice of Qualification of DWUWS Notice of Qualification of CYAN Notice of Qualification of Spring Notice of Qualification of Building NOTICE OF FORMATION of Paint LLC. Authority filed with Secy. of Management Group LLC. Authority Studios New York, LLC. Authority Blocks (US), LLC. Authority filed with Perfection NY, LLC. Article of State of NY (SSNY) on 07/28/10. filed with Secy. of State of NY (SSNY) filed with NY Dept. of State on NY Dept. of State on 7/26/10. Office Organization filed with the Secretary Office location: NY County. LLC on 7/13/10. Office location: NY 8/9/10. Office location: NY County. location: NY County. LLC formed in of State of NY (SSNY) on 8/20/2010. formed in Delaware (DE) on County. LLC formed in Delaware (DE) Princ. bus. addr.: 50 Varick St., NY, FL on 5/7/10. NY Sec. of State des- Office location: NY County. SSNY 07/19/10. Princ. office of LLC: c/o on 2/26/10. SSNY designated as NY 10013. LLC formed in DE on ignated as agent of LLC upon whom has been designated as agent upon Janover, LLC, 805 Third Ave. - 10th agent of LLC upon whom process 8/4/10. NY Sec. of State designated process against it may be served whom process against it may be Fl., NY, NY 10022. SSNY designated against it may be served. SSNY shall as agent of LLC upon whom process and shall mail process to: CorpDirect served. The Post Office address to as agent of LLC upon whom process mail process to: c/o Corporation against it may be served and shall Agents, Inc., 10 E. 40th St., 10th Fl., which the SSNY shall mail a copy of against it may be served. SSNY shall Service Company (CSC), 80 State St., mail process to: c/o CT Corporation NY, NY 10016. FL and principal any process against the LLC served mail process to the LLC at the addr. Albany, NY 12207. DE address of System, 111 8th Ave., NY, NY 10011, business addr.: 14004 Roosevelt is 100 Debs Pl, Suite 24G, Bronx, NY. of its princ. office. DE addr. of LLC: LLC: c/o CSC, 2711 Centerville Rd., regd. agent upon whom process may Blvd., Ste. 601H, Clearwater, FL Purpose of LLC: to engage in any c/o Corporation Service Co., 2711 Ste. 400, Wilmington, DE 19808. Arts. be served. DE addr. of LLC: c/o The 33762. Arts. of Org. filed with FL Sec. lawful act or activity. Street address Centerville Rd., Ste. 400, Wilmington, of Org. filed with DE Secy. of State, Corporation Trust Co., 1209 Orange of State, 2661 Executive Center of Principal Business location is: 100 DE 19808. Arts. of Org. filed with 401 Federal St., Ste. 4, Dover, DE St., Wilmington, DE 19801. Cert. of Circle, Tallahassee, FL 32301. Debs Pl, Suite 24G, Bronx, NY., 10475. Secy. of State - DE, Div. of Corps., 19901. Purpose: any lawful activity. Form. filed with DE Sec. of State, Purpose: any lawful activity. John G. Townsend Bldg., 401 401 Federal St., Dover, DE 19901. NOTICE OF FORMATION OF LIMITED Federal St., Dover, DE 19901. Notice of Formation of BSG Members Purpose: any lawful activity. Notice of Formation of G&S SOLAR LIABILITY COMPANY. NAME: ALL Purpose: Any lawful activity. LLC. Art. of Org. filed with Secy. of INSTALLERS LLC. Arts. of Org. filed MY BIDS L.L.C. Articles of Organization State of NY (SSNY) on 12/15/09. Office Notice of Formation of Carlton House with Secy. of State of NY (SSNY) on were filed with the Secretary of State 1559 LEXINGTON AVENUE REALTY, location: NY Co. SSNY designated Development LLC. Arts. of Org. filed 01/15/10. Office location: NY of New York (SSNY) on 08/12/10. LLC a domestic Limited Liability as agent of LLC upon whom process with Secy. of State of NY (SSNY) on County. Princ. office of LLC: 211 E. Office location: New York County. Company (LLC), filed with the Sec of against it may be served. SSNY shall 7/13/10. Office location: NY Co. SSNY 43rd St., NY, NY 10017. SSNY des- SSNY has been designated as agent State of NY on 6/17/10. NY Office mail process to the LLC c/o Robinson designated as agent of LLC upon ignated as agent of LLC upon whom of the LLC upon whom process location: New York County. SSNY is Brog Leinwand Greene Genovese whom process against it may be process against it may be served. against it may be served. SSNY shall designated as agent upon whom & Gluck, PC, Attn: Robert M. Milner, served. SSNY shall mail process to: SSNY shall mail process to the LLC mail a copy of process to the LLC, process against the LLC may be Esq., 1345 Ave of the Americas, 31st National Registered Agents, Inc., 875 at the addr. of its princ. office. 36 West 20th Street, 3rd Floor, New served. SSNY shall mail a copy of Fl., New York, NY 10105. Purpose: Ave. of the Americas, Ste. 501, NY, NY Purpose: Any lawful activity. York, New York 10011. Purpose: For any process against the LLC served any lawful act or activity. 10001. Purpose: any lawful activities. any lawful purpose. upon him/her to The LLC, 351 E. Notice of Formation of YTR SOLU- 61st St., #10C, NY, NY 10065. Notice of Qualification of CENTRO NP ACQUA RPS LLC App. for Auth. filed TIONS LLC. Arts. of Org. filed with Notice of Formation of AMBASSADOR General Purposes. MONROE PLAZA, LLC. Authority NY Sec. of State (SSNY) 8/25/2010. Secy. of State of NY (SSNY) on MEDIA SALES LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) LLC was organized on 8/13/2010 in 08/11/10. Office location: NY County. filed with Secy. of State of NY (SSNY) NOTICE OF FORMATION OF Christel on 07/16/10. Office location: NY DE. Office in NY Co. SSNY desig. as SSNY designated as agent of LLC on 12/02/09. Office location: NY D’Agostino, LLC. Article of Organization County. LLC formed in Delaware (DE) agent of LLC upon whom process upon whom process against it may County. SSNY designated as agent filed with the Secretary of State of on 07/09/10. SSNY designated as may be served. SSNY to mail copy of be served. SSNY shall mail process of LLC upon whom process against NY (SSNY) on 02/23/09. Office loca- agent of LLC upon whom process process to 110 Greene St., Ste. 1100, to Corporation Service Co., 80 State it may be served. SSNY shall mail tion: New York County. SSNY has against it may be served. SSNY shall NY, NY 10012. Required office at St., Albany, NY 12207-2543, regd. process to c/o the LLC, 245 W. 17th been designated as agent upon whom mail process to c/o Corporation 3500 S. Dupont Hwy., Dover DE agent upon whom and at which St., 2nd Fl., NY, NY 10011-5387. process against it may be served. Service Co., 80 State St., Albany, NY 19901. Cert. of Org. filed with SSDE, process may be served. Purpose: Purpose: Any lawful activity. The Post Office address to which the Any lawful activity. 12207-2543. DE addr. of LLC: 2711 401 Federal St., Ste. 3, Dover DE Notice of Formation of SCKB Partners SSNY shall mail a copy of any process Centerville Rd., Ste. 400, Wilmington, 19901. Purpose: Any lawful purpose. against the LLC served upon him is CC REALTY SERVICES LLC, a LLC. Art. Of Org. filed with Secy. Of DE 19808. Arts. of Org. filed with State of NY (SSNY) on 6/21/10. C/O the LLC United States Corporation Secy. of State, Div. of Corps., Notice of Formation of RONAJ LLC. domestic Limited Liability Company Agents, Brooklyn, NY 11228. Arts. of Org. filed with Secy. of State (LLC) filed with the Sec of State of Office Location: New York County. Townsend Bldg., Dover, DE 19901. SSNY designated as agent of the LLC Purpose of LLC: To engage in any Purpose: Any lawful activity. of NY (SSNY) on 07/21/10. Office NY (SSNY) on 7/16/10. NY office lawful act or activity. Street address location: NY County. Princ. office of Location: New York County. SSNY is upon whom process against it may of Principal Business location is: 310 NOTICE OF FORMATION OF Honest LLC: c/o Sky Management, 226 E. designated as agent upon whom be served. SSNY shall mail a copy of W 72 St., New York, NY 10023. Crafts LLC. Articles of Organization 54th St., Ste. 402, NY, NY 10022. process against the LLC may be any process to: c/o Jerome H. filed with the Secretary of State of NY SSNY designated as agent of LLC served. SSNY shall mail a copy of Siegel, M.D., P.C., 60 East End Ave., NOTICE OF FORMATION OF LIMITED (SSNY) on 6/10/10. Office location upon whom process against it may any process against the LLC served New York, NY 10028. Purpose: To LIABILITY COMPANY. NAME: BRAND NEW YORK County. SSNY has been be served. SSNY shall mail process upon him/her to The LLC, c/o engage in any lawful act or activity. SPIRIT DESIGNS LLC. Articles of designated as agent upon whom to the LLC at the addr. of its princ. Clemente Cohen, 49 E. 86th St., NY, Notice of Formation of NAMM FAMILY Organization were filed with the process against it may be served. office. Purpose: Any lawful activity. NY 10028 General Purpose ASSOCIATES, LLC. Arts. of Org. filed Secretary of State of New York (SSNY) The Post Office address to which the with Secy. of State of NY (SSNY) on on 07/30/10. Office location: New SSNY shall mail a copy of any NOTICE OF FORMATION of Wanclan Notice of Formation of Hester Street LLC. Art. of Org. filed with Secy. of 08/03/10. Office location: NY County. York County. SSNY has been desig- process against the LLC served upon Productions, LLC. Article of Organization Princ. office of LLC: 875 Park Ave., nated as agent of the LLC upon whom him/her is C/O the LLC 7014 13th filed with the Secretary of State of State of NY (SSNY) on 07/23/2010. Office location: NY Co. SSNY #10A, NY, NY 10075. SSNY desig- process against it may be served. Ave., Ste. 202. Brooklyn, NY 11228. NY (SSNY) on 06/21/10. Office location: nated as agent of LLC upon whom SSNY shall mail a copy of process to Purpose of LLC: to engage in any NY County. SSNY has been desig- designated as agent of LLC upon whom process against it may be process against it may be served. the LLC, 330 East 48th Street, New lawful act or activity. Street address nated as agent upon whom process SSNY shall mail process to c/o York, New York 10017. Purpose: For of Principal Business location is: 140 against it may be served. The Post served. SSNY shall mail process to the LLC, 113 Hester Street, Andrew Namm at the princ. office of any lawful purpose. E. 81st St. #3A. New York, NY 10028. Office address to which the SSNY the LLC. Purpose: Any lawful activity. shall mail a copy of any process New York, NY 10002. Purpose: Notice of Formation of ICER Outlets, Notice of Formation of WyThe Funding against the LLC served upon him is any lawful act or activity. Notice of Formation of TAMARA YORK LLC. Art. of Org. filed with Secy. of LLC amended to Wythe Funding LLC. C/O the LLC 7014 13th Avenue, Suite PUBLIC RELATIONS, LLC. Arts. of State of NY (SSNY) on 02/26/10. Arts. of Org. filed with Secy. of State 202, Brooklyn, NY, 11228. Purpose NOTICE OF FORMATION OF Pay and Org. filed with Secy. of State of NY Office location: NY Co. SSNY of NY (SSNY) on 7/29/10. Office of LLC: to engage in any lawful act or Clean LLC. Arts. of Org. filed with (SSNY) on 05/05/10. Office location: designated as agent of LLC upon location: NY County. SSNY designated activity. Street address of Principal Secy. of State of NY (SSNY) on 3/4/10. NY County. SSNY designated as whom process against it may be as agent of LLC upon whom process Business location is: 250 E. 30th Office location: New York County. agent of LLC upon whom process served. SSNY shall mail process against it may be served. SSNY shall Street, Apt. 6B, New York, NY, 10016. SSNY designated as agent of LLC against it may be served. SSNY shall to the LLC, c/o ICER Brands, LLC, mail process to: The LLC, 207 W. upon whom process against it may mail process to Corporation Service Notice of Qualification of AMB LOCAL 1385 Broadway - 16th Fl., New York, 25th St., Ste. 602, NY, NY 10001. be served. SSNY shall mail process Co., 80 State St., Albany, NY 12207- MEDIA LLC. Authority filed with Secy. NY 10018. Purpose: any lawful act Purpose: any lawful activity. to: 1011 Beverley Road Brooklyn, NY 2543, regd. agent upon whom and at of State of NY (SSNY) on 06/10/09. or activity. 11218. Purpose: any lawful activity. which process may be served. Office location: NY County. LLC Notice of Formation of IND. REV. LLC. Purpose: Any lawful activity. Name of LLC: THE FEARLESS Art. of Org. filed with Secy. of State formed in Delaware (DE) on 05/08/09. Notice of Formation of 2861-2865 GROUP LLC. Art. of Org. filed Dept. of NY (SSNY) on 03/12/10. Office SSNY designated as agent of LLC Broadway LLC. Art. of Org. filed with DIAMOND HILL PROPERTY HOLD- of State of NY on 7/9/2010. Off. Loc. location: NY Co. SSNY designated upon whom process against it may Secy. of State of NY (SSNY) on INGS LLC Articles of Org. filed NY in NY: NY Cty. Princ. bus. loc.: Robert as agent of LLC upon whom process be served. SSNY shall mail process 07/28/10. Office location: NY Co. Sec. of State (SSNY) 8/3/2010. Davidman, 15 E. 26th St., Ste. 802, against it may be served. SSNY shall to Vincent Lombardo, 195 Tanglewood SSNY designated as agent of LLC Office in NY Co. SSNY desig. agent NY, NY 10010. Secy. of State desig- mail process to the LLC, c/o ICER Dr., Staten Island, NY 10308. DE upon whom process against it may be of LLC upon whom process may be nated as agent of LLC upon whom Brands, LLC, 1385 Broadway - 16th addr. of LLC: 1521 Concord Pike, served. SSNY shall mail process to the served. SSNY shall mail copy of process against it may be served. Fl., New York, NY 10018. Purpose: #301, Wilmington, DE 19803. Arts. of LLC, c/o Humes & Wagner LLP, 147 process to 24 O’Shea Lane, Summit, Sec. of State shall mail a copy of any lawful act or activity. Org. filed with Jeffrey W. Bullock, Forest Ave., Locust Valley, NY 11560. NJ 07901. Purpose: Any lawful pur- process to: Robert Davidman, 15 E. Dept. of State, Div. of Corps., John Purpose: any lawful act or activity. pose. Principal business location: 45 26th St., Ste. 802, NY, NY 10010. Notice of Qualification of COHESIVE G. Townsend Bldg., 401 Federal St., Park Ave., #1606 , NY, NY 10016. Purpose: any lawful activity. CAPITAL PARTNERS, L.P. Authority #4, Dover, DE 19901. Purpose: Any Notice of Qualification of AMBASSADOR filed with Secy. of State of NY (SSNY) lawful activity. PUBLICATIONS, LLC. Authority filed Notice of Qualification of BROOKFIELD NOTICE OF QUALIFICATION OF DT on 08/06/10. Office location: NY with Secy. of State of NY (SSNY) on REAL ESTATE TURNAROUND FUND ORTHOPAEDIC INSURANCE County. LP formed in Delaware (DE) Notice of Qualification of Hamptons 04/06/01. Office location: NY County. GP OF GP, LLC. Authority filed with AGENCY, LLC. Arts of Application on 07/06/10. Princ. office of LP: c/o Residence II LLC. Authority filed with LLC formed in Delaware (DE) on Secy. of State of NY (SSNY) on for Authority filed with the Secy of Cohesive Capital (GP), L.P., 650 5th Secy. of State of NY (SSNY) on 01/19/01. Princ. office of LLC: 231 08/26/10. Office location: NY County. State of New York (SSNY) on Ave., 31st Fl., NY, NY 10019. SSNY 8/9/10. Office location: NY County. W. 29th St., Ste. 401, NY, NY 10001. LLC formed in Delaware (DE) on 4/15/10. N.Y. Office Location: NY designated as agent of LP upon whom LLC formed in Delaware (DE) on SSNY designated as agent of LLC 02/24/10. Princ. office of LLC: c/o County. LLC formed in DELAWARE process against it may be served. 8/5/2010. SSNY designated as upon whom process against it may Brookfield Asset Management LLC, on 1/19/10. SSNY designated as SSNY shall mail process to c/o agent of LLC upon whom process be served. SSNY shall mail process Three World Financial Center, NY, NY agent of LLC upon process may be Cohesive Capital Partners, 650 5th against it may be served. SSNY to c/o Cowan, DeBaets, Abrahams & 10281-1010. SSNY designated as served and shall mail a copy of any Ave., 31st Fl., NY, NY 10019. Name shall mail process to: c/o Sheppard LLP, 40 W. 57th St., NY, agent of LLC upon whom process process to the LLC: 111 Eighth and addr. of each general partner are Corporation Service Company, 80 NY 10019. Arts. of Org. filed with DE against it may be served. SSNY shall Avenue, New York, NY 10011. The available from SSNY. DE addr. of LP: State St., Albany, NY 12207-2543. Secy. of State, Lookerman and mail process to the LLC at the addr. of Principal Business Address of the c/o Corporation Service Co., 2711 Address to be maintained in DE: Federal St., Dover, DE 19901. As its princ. office. DE addr. of LLC: c/o LLC is: 110 West Rd, Suite 227, Centerville Rd., Wilmington, DE 19808. 2711 Centerville Rd., Ste. 400, amended by Cert. of Amendment Corporation Service Co., 2711 Towson, MD 21204. Purpose of LLC: Arts. of Org. filed with Secy. of State Wilmington, DE 19808. Arts of Org. filed with SSNY on 09/10/07, the Centerville Rd., Ste. 400, Wilmington, INSURANCE PRODUCER SELLING, of DE, Dept. of State, Div. of Corps., filed with DE Secy. Of State, 401 name of the LLC is: AMBASSADOR DE 19808. Arts. of Org. filed with Secy. SOLICITING AND ADMINISTERING John Townsend Bldg., Dover, DE Federal St., Ste. 4, Dover, DE 19901. MEDIA GROUP, LLC. Purpose: Any of State of DE, 401 Federal St., Dover, INSURANCE PROGRAMS. 19901. Purpose: Any lawful activity. Purpose: any lawful activities. lawful activity. DE 19901. Purpose: Any lawful activity.

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sures disrupting the entire industry. “Publishers that market to a gen- The weak economy could force li- eral audience are vulnerable to the Book publisher is Wiley, indeed braries and schools to cut spending closing of bookstores,” says Mike on textbooks and journals. And the Shatzkin, chief executive of The Idea Continued from Page 3 ical and scholarly, which con- The company has also benefited abundance of free content on the Logical Co., who consulted for Wi- extensive line of cookbooks and For tributed slightly more than half of from its no-nonsense approach to Web could take a toll on the For ley in the early 1990s.“Wiley markets Dummies titles. sales; higher education; and profes- trade books, which, together with Dummies series and may already be to audiences they’re familiar with and Wiley’s somewhat unusual com- sional/trade—displayed growth in professional publishing, con- eating away at the Frommer’s books, is insulated from that concern.” bination of three diverse publishing the first quarter of fiscal 2011,which tributed a quarter of Wiley’s $1.7 whose sales are down from a year ago. Some analysts also think that lines has worked to its advantage in ended July 31. Total revenue rose billion in sales in fiscal 2010. But Wiley is in a far better place specialized nonfiction titles will other ways. Business titles produced 9%, not counting currency changes, than many of its peers in trade pub- prove more resistant than general- by the trade division get bundled with to $408 million, while operating in- Abundance of free content lishing, not least because it stopped interest best-sellers to the down- higher-education books and sold come spiked 26%, to $63 million. “we started with a publishing publishing fiction before the Civil ward pressure on e-book prices. through academic channels, as do Wiley’s focus on innovation in model that said we weren’t going to War.Its niche titles targeting specif- “Wiley has unique brands and good CliffsNotes and For Dummies titles, the scientific and educational space compete for the big-name authors,” ic communities are easier to market brand equity,” says Mr. Crum. achieving a level of synergy that has has helped it take market share from Mr. Smith says. “[The trade divi- online—and rely less on brick-and- “They are more immune to some of eluded many other publishers. competitors such as The McGraw sion] is run very tightly, with very mortar bookstore displays—than the headwinds that other publishers Wiley may be unexciting, but it’s Hill Cos., according to Stifel Nico- close attention to margins.” the general-interest books that may confront.” consistently profitable. All three di- laus & Co.analyst Drew Crum,who Despite its digital savvy, however, make up the bulk of what Random It turns out that boring can be visions—scientific, technical, med- rates the stock a “buy.” Wiley is still vulnerable to the pres- House or HarperCollins produces. good business. Rent freebies A Real Approach for redux? Reaching Your Goals. Continued from Page 2 Rose Associates gradually began pulling back on concessions in the spring as lease signings picked up. Time Equities’ residential rental buildings are 100% occupied. “I do not have one vacant apartment,” says Roberta Axelrod, director of rentals at Time Equities. “There is no need for concessions.” Most of Rose’s 18 rental buildings are 98% occupied. The only ones where it is still offering a month’s free rent are its newer buildings—the 309-unit Aire on the Up- per West Side and the 339-unit 184 Kent in Williamsburg, Brooklyn. Money spinners at other new developments around town,like the 196-unit Cor- ner at 200 West St.and the 288-unit Ohm in Chelsea, concessions still exist because landlords are keen to turn empty apartments into money- spinners. That is especially true of larger projects.The Corner is offer- Boyd G. Adelman ing one month’s free rent, while President, Marathon Enterprises, Inc. (Sabre ) Ohm is offering two months’ free rent.Ohm is 75% occupied,and The and State Bank Client Corner is 82% occupied. “If you need to fill up a new building, concessions are a mandate,” says Jeffrey Levine, chairman of Dou- glaston Development, which built Ohm. “You need to be aggressive.” What remains to be seen is whether the market will have a re- cessionary relapse that will force more landlords to get aggressive Put Your Business in a Be er State. again. With the student rush com- Every day provides new possibilities to prove dreams can be realized. ing to an end this month and colder weather approaching, activity will State Bank supports this visionary spirit with real people and real solutions almost certainly slow. “During the next few months,we that free your business to pursue opportunity – to imagine, to plan and will see less demand and a bit more product,” says Gordon Golub, di- expand. You’ll * nd proven expertise, genuine exibility and a relationship rector of rentals at Citi Habitats. focus that inspires trust. More than bankers, we’re business people, While most landlords insist they’re still optimistic, they quietly listening, learning and responding to your needs, so you can take on concede they’re prepared to be flex- tomorrow. is is the power that comes from pu ing your business in a ible. 516.465.2300 “I don’t have a crystal ball,but we be er state. Opportunity is calling. Let’s get to work www.statebanko i.com have a few more weeks until traffic [normally] dies down,” says Chiho Machado, director of onsite leasing at Rose Associates. “If we have to bring concessions back, we will.”

September 20, 2010 | Crain’s New York Business | 29 20100920-NEWS--0030-NAT-CCI-CN_-- 9/17/2010 7:31 PM Page 1

up an affiliated organization so it They’re the new face of labor could endorse and donate to candi- Continued from Page 1 perts believe worker centers will play severance and moral suasion. In ad- dates. And Make ranging from busboys to freelance a pivotal role in the future of the la- dition to the new domestic worker the Road is follow- writers are increasing their clout, bor movement. Across the state, at law and the paid sick leave and free- ing suit. Benefits winning rights for low-wage,immi- least 26 groups are operating, with lancer proposals, a bill championed have increasingly grant and contingent workers who those in the city directly representing by immigrant worker center Make become a rallying had for years fallen outside the scope more than 150,000 workers and the Road New York that increases cry for the groups. of mainstream labor and its collec- reaching hundreds of thousands penalties on employers who violate The Freelancers In- tive bargaining agreements. more.Several have expanded nation- wage and hour laws won passage in surance Company The groups, often referred to as wide, and many are headed by the state Senate and Assembly last provides health in- worker centers, typically represent women, with immigrant members session.And a near-unanimous mar- surance rates 75% workers in industries not covered playing key roles in decision-making. gin in both houses passed a measure below market. A under existing labor laws or that are “Groups that were considered to increase penalties for assaults $100 annual mem- difficult to organize due to workers’ marginal to the future of the labor against taxi drivers that the Taxi bership fee paid by immigration status. They initially movement are now seen as quite es- Workers Alliance pushed. drivers like Victor sential to the future Salazar to the Taxi Pressing for back pay of unions,” says Jan- Workers Alliance VICTOR SALAZAR Driver is part of taxi workers’ push for benefits. ice Fine, an expert the groups have also become in- gets them free legal on worker centers at creasingly adept at winning big advice and $5,000 the Rutgers Univer- chunks of back pay for their mem- worth of life insurance.The 15,000- fits become unsustainable in a labor sity School of Man- bers. For example, Make the Road member group’s next big campaign market stocked with a multitude of agement and Labor secured some $13 million a year in is aimed at taking control of the workers with no protections. Immi- Relations. Some unpaid wages and benefits, the credit card processing fee for cab grants and low-wage workers make traditional unions Restaurant Opportunities Center of rides and using the funds received to up a growing part of the work force have begun reach- New York has won $5 million for its start a drivers health fund.Long de- that cannot be outsourced abroad. ing out beyond their members,and the Chinese Staff and pendent upon foundation funding, In response, Make the Road has core membership: Workers’ Association last year se- many groups are starting to collect partnered with the Retail,Wholesale The United Federa- cured $550,000 for 25 garment modest dues from their members. and Department Store Union to or- tion of Teachers workers who toiled for 80 hours a Traditional unions, which had ganize low-wage immigrant retail brought 28,000 week for only $3 an hour. workers.And the Laborers’In- home-based child- More and more, battles ternational Union of North care providers into over lost wages are getting a America has joined forces with its ranks, and 32BJ boost from the Department El Centro del Inmigrante. SEIU has launched of Labor, which placed a Negotiations, of a sort photos: buck ennis an aggressive cam- new emphasis on collabo- ARIANE CONRAD Freelance writer joins her union’s election efforts. paign among school rating with worker centers the worker centers might cafeteria workers. under former Commission- not be collectively bargaining Increasingly, er M. Patricia Smith. in the traditional sense, but focused on workers who had their employers are paying attention. “We have limited re- taxi workers now sit down wages skimmed or who did not re- While some have been forced to deal sources, and worker centers regularly with the city to dis- ceive minimum wage. But recently, directly with centers that have waged can and do play an impor- cuss working conditions, they’ve become more sophisticated, legal challenges against them,others tant role in referring cases to freelancers now negotiate for forming strategic partnerships with now have to contend with the us,” says Lorelei Salas, the their health care, and domes- unions and the state Department of prospect of new laws—such as the DOL’s director of strategic tic workers have rights man- Labor, establishing health and ben- paid sick leave bill before the City enforcement. dated by law that other work- efits programs, flexing political Council and a bill in Albany that The worker centers have ers have gained only via muscle and championing legislation would penalize employers who stiff also started to play politics. collective bargaining. that bolsters workers’ rights. Mean- freelancers—that challenge their Last week, 36-year-old “We’re looking at a grow- while, they’re forcing established business practices. In some cases, freelance writer Ariane ing disparity of income with unions to embrace them and prod- employers have welcomed the cen- Conrad passed out flyers in BARBARA YOUNG Barbados native has been a nanny for 17 years. no end in sight,” says Sara ding employers to engage them. ters’work as leveling the playing field support of attorney general Horowitz, executive director by forcing all companies to comply candidate Eric Schneider- of the Freelancers Union. Employers paying attention with wage and hour laws. man,who was endorsed by the Free- initially turned their backs on the “Groups are saying,‘We have to fig- with private-sector unions on Worker groups have made signif- lancers Union, outside a Brooklyn worker centers, are now embracing ure out how to create a social safety the decline, representing just 16% of icant progress on the legislative front, subway station. The group—which them, as they recognize that union net. And we’re going to do it in workers in New York City, many ex- through a combination of sheer per- has 90,000 members in the city—set jobs with decent salaries and bene- whatever way works.’ ”

finished or is close to it. That’s al- allotment. The problem is that at Downtown’s $200M tug-of-war lowing the LMDC to at last get a least three of the estimates of how clear view of where there might be much the utilities would spend in excess funds. In addition, others are each category were wrong. Continued from Page 1 well as infrastructure. Last week at a City Council hearing pushing for a decision before the According to LMDC board A decision governing how it can Consolidated Edison begs to about the LMDC, around 10 arts election brings in new leaders and members who requested anonymity, be doled out is expected in the com- differ. The company insists it is en- organizations pleaded for funding. possibly new priorities. the agency’s leadership maintains ing weeks. titled to between 70% and 93% of Initially, many people believed Meanwhile, the LMDC is near- that any excess from each category The money is the only remaining that cash. It also says that if that the entire $200 million should be ing the end of its two primary mis- should go back to the general fund. unallocated portion of the $2.7 bil- money does not come its way its devoted to the performing arts cen- sions: allocating the funds and over- It also insists it isn’t obligated to pay lion in federal funds handed to the ratepayers will be forced to ante up ter slated for Ground Zero, but that seeing the dismantling of the former the utilities for any shortfalls in oth- city and state for them to disburse another $50. idea has lost some steam since plans Deutsche Bank Building,which was er categories. through the LMDC to help revital- “That money shouldn’t go any- for that facility have stalled.LMDC badly damaged in the attacks. The Con Ed officials say they simply ize downtown. Major beneficiaries where until all the utility needs are board member Julie Menin, who demolition is expected to be com- can’t comprehend that logic, since of LMDC funds include the Sep- satisfied,” said John Banks, Con also chairs the local downtown completed in December. Sources say the fund was largely set up to pay tember 11 Memorial, the East Riv- Ed’s vice president for government munity board, says it wouldn’t make that at that point it’s likely the utilities. er Esplanade and Hudson River relations. sense to earmark funds for some- agency will be folded into the Em- Sources say that a portion of the Park. Verizon says it is still owed mil- thing that might not get built for pire State Development Corp., money will go the utilities, but the Less visibly, the agency has also lions of dollars as well. years—if ever. which will disburse allocated funds, question is how much and when. funded far less glamorous projects, Community leaders insist that oversee projects and conduct audits. “I think the money should be including rebuilding the area’s bad- the remaining funds should be used Prioritizing jobs But before the LMDC can close, spent as quickly as possible.There is ly damaged utility infrastructure for other worthy projects. They in- “the most important thing we the fate of the $200 million must be such need,” says David Emil, presi- through a special $750 million fund. sist that the utilities have already can do with the money is to create decided,and that process starts with dent of the LMDC. But he adds But now the LMDC is saying that gotten their fair share.To date, Con and retain jobs,” she says. sorting out just how much the utili- that it is just as important to set up a the remainder of that money— Ed has received $164 million, while The controversy over the $200 ties should get. Originally, the fund transparent process that allows for about $200 million—can be used to Verizon has taken in $185 million. million is coming to a head now be- was to disburse money to them un- public comment and ideas when se- fund projects in such far-flung fields Meanwhile, the list of possible cause much of the accounting of the der six different categories of work, lecting the organizations that will as culture and affordable housing,as alternative recipients is growing. utility firms’ bills has either been each with a separate reimbursement receive the funds.

30 | Crain’s New York Business | September 20, 2010 20100920-NEWS--0031-NAT-CCI-CN_-- 9/17/2010 7:03 PM Page 1

Boogie nights BY THE NUMBERS Wall St. banks on problems Out on the town Continued from Page 2 ON FRIDAY, SEPT. 10, the second annual Continued from Page 3 who make bets for the house account—a prac- trend still went back in time,chiefly in the form Fashion’s Night Out shopping extravaganza Soros told a forum last week, adding that he tice that banks must curb under new financial of the bell-bottom pant, seen in the collections attracted 49.1% more traffic than last year’s sees stagflation lurking in the United States rules out of Washington. of Cynthia Rowley and Jason Wu.In the recent event, according to ShopperTrak. and Europe—a devastating combination of J.P.Morgan is eliminating 20 mostly Lon- past, low-rise skinny pants and leggings were More than 1,000 stores participated in high inflation and unemployment. don-based commodities traders, but analysts key items,so the new trouser,with a wider,more the citywide retail party, compared with Plenty of sharp people disagree with Mr. believe it will eventually shut down propri- flattering leg and a higher waistline, is an item about 800 retailers for the 2009 debut. Soros’ dire economic outlook.Warren Buffett, etary trading in stocks and bonds,too.All told, many shoppers don’t already own. And by Already, Bloomingdale’s reports that FNO for one,says he’s hiring people in all of the com- “prop trading” accounts for about 2% of the showing more pants, a look generally associat- sales were stronger this year. panies he owns and is “bullish” on the future. bank’s earnings, or some $175 million at last ed with the fall shows, designers can convince But the mood is anything but bullish on count, according to Rochdale Research. shoppers that they need to buy new tops as well. Movin’ on up Wall Street nowadays. In the first half of this “Trousers are a somewhat new category FASHION WEEK’S MOVE UPTOWN to the more year, profits at New York Stock Exchange Special pain awaits Bank of America [for spring],” says Susan Scafidi, academic di- spacious Lincoln Center gave the glitzy event member firms fell by a bonus-crushing 60%, the in-house trading businessis more im- rector of the Fashion Law Institute at Ford- room to grow. Organizer IMG produced 98 to $15 billion, and revenues dropped by a portant for Goldman,where the approximate- ham University School of Law. “If you buy runway shows, compared with 81 last year. quarter.The revenue declines, combined with ly 70 equity traders it is believed to be ready to trousers, you have to buy at least one other And more than 115,000 people attended, higher operating costs resulting from stiffer part with contribute about 5% of revenue, ac- piece—a blouse or a jacket to wear on top.” an increase of 15,000 over the year before. regulation, will force banks to shed staff. cording to a person familiar with the matter. Also new for spring: dropped hemlines. On Raking it in “Over the next 18 months, Wall Street will The most painful cuts may lie at Bank of the catwalks,the skirt and dress lengths fell from FASHION WEEK was expected to generate go through yet another iteration of resizing not America. Last week’s new regulatory capital their mid-thigh highs to below the knee, calf- more than $385 million in total economic seen since the post-dot-com era,” analyst rules would leave the bank with a $3.7 billion length,or even to the floor,a trend that began to impact for the Big Apple, according to Mayor Meredith Whitney warned clients last month. shortfall,according to CreditSights.The bank emerge at the February shows. Though hem- Ms.Whitney,known for her bearish views, has many options to fill the hole, including Michael Bloomberg. The estimate doesn’t lines usually drop along with the economy, ex- forecast that Wall Street could shed up to 10% selling such assets as its 34% stake in money- perts believe designers featured such conserva- trail far behind sunnier days—the two of its work force, which would translate to management firm BlackRock. tive looks for lack of anywhere else to go. Fashion Weeks of 2008 resulted in an 16,000 jobs lost in New York. Add that to the But Mr. Bove thinks much more dramatic “We’ve been seeing short for so long that overall economic impact of $773 million. 30,000 securities-industry jobs already lost surgery will be needed, arguing that BofA, this new, longer length looks fresh and gives a here since September 2008,and the city would with $2.4 trillion in assets,will ultimately need reason to buy,” says Colleen Sherin, women’s suffer a 25% fall in its best-paid work force— to shrink by $500 billion to satisfy regulators. fashion director at Saks Fifth Avenue. Yet value continued to walk the runways. the steepest decline on record.(The records go Such a dramatic slim-down, he figures, would Designers took a chance with more expen- Mr.Wang and design house Rag & Bone used back only to 1973, by the way.The 1930s data require parting with certain divisions of Mer- sive fabrics, hoping the high quality of light utilitarian elements of active wear,like a draw- were probably worse.) rill Lynch and shedding other assets. silks, lightweight yarns and chiffons will at- string or extra zipper, to make garments— The job cuts are only the beginning, al- BofA won’t comment on particular moves, tract consumers starved for luxury. BCBG dressed up or dressed down—wearable for though they could accelerate in a month or so but at a conference last week, CEO Brian Max Azria and Jenny Packham featured sev- multiple occasions,and even multiple seasons. as more firms complete budgeting for 2011. Moynihan acknowledged that change is cer- eral dresses made of silk, as opposed to the It’s about “getting the most bang for your J.P.Morgan Chase and Goldman Sachs are tainly coming,saying,“We’re just hard at work washable cotton jersey of last year. buck,” says Ms. Manganaro. both taking preliminary steps to shed traders transforming our company.”

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September 20, 2010 | Crain’s New York Business | 31

20100920-NEWS--0033-NAT-CCI-CN_-- 9/16/2010 6:25 PM Page 1

Top NYC companies for working moms: Accenture American Express AOL Bristol-Myers Squibb Citigroup BUSINESS LIVES Working Mother 100 Best Companies HOT JOBS EXECUTIVE INBOX

DIRECTOR OF Anne Fisher DEVELOPMENT ORGANIZATION Harlem An online Educational Activities Fund community for JOB DESCRIPTION Lead fundraising; leverage existing partner- budding tycoons ships; cultivate new relationships WHEN JARED O’TOOLE and Matt MOST IMPORTANT TASKS Build Wilson graduated from college in and implement fundraising program May 2008, the recession had CREDENTIALS NEEDED B.A. or knocked the job market for a equivalent degree; demonstrated loop. The two friends from success in raising funds Hopewell Junction, N.Y., moved back into their parents’ homes. SALARY Directors earned in the “For a while we did landscaping, mid-$50,000s in 2007 sold windows, moved furniture,” RECRUITER Commongood Careers says Mr. O’Toole. “But we really DOWNSIDE Raising money in a wanted to do something online. down economy So we asked our peers who were starting companies what UPSIDE Helping underprivileged challenges they were facing.” children in the neighborhood KEEPING IT COOL: New York Organ Those conversations turned Harlem Educational Activities Donor Network team into Under30CEO.com. The site aims to help public school stu- leader Anthony offers free advice on how to run dents develop intellectual curiosi- Giudice on the job. a fledgling business. In the first ty, academic abilities, social val- year, traffic jumped to more than ues and personal resilience. 90,000 page views a month —EMILY LAERMER from about 10,000. Financed by advertising, Under30CEO.com has two full- time employees—Mr. O’Toole and EXECUTIVE MOVES Mr. Wilson—and one part-time staffer. Annual revenues are still Citigroup: Cece in the low six figures, and the site Stewart, 52, joined as has been profitable for the past president of U.S. buck ennis six months. consumer and Katie Shea, age 23, is a commercial banking. GOTHAM GIGS She was most recently devotee. Last summer, two at Morgan Stanley, weeks after graduating from New where she served as York University, Ms. Shea and her president of the retail banking group erstwhile roommate Susie Levitt and chief executive of Morgan Stanley started Funk-tional Footwear, Private Bank. which makes CitySlips, ballet- Protiviti: John Quinn, 57, joined the Special Delivery slipper-like shoes that come with consulting and internal audit firm as a managing director and leader of the a tote bag. CitySlips are meant to investigations team in the litigation, anthony giudice saves lives every day. And although he rarely be slipped on when those Jimmy restructuring and investigative services ‘Organs meets those he rescues, he knows their hearts are in the right Choos (which go into the tote) practice. He had been a partner in the begin to pinch too much. Funk- forensic practice at KPMG. don’t have place—unless it’s their new kidneys he’s become familiar with. ¶ No, tional Footwear has already sold Alvarez & Marsal: Faye he’s not a surgeon; he’s the delivery guy.The 30-year-old Queens more than 200,000 pairs of Wattleton, 67, joined an internal the professional native is a team leader for the New York Organ Donor Network, $24.95 CitySlips. services firm as a clock, but which coordinates donations for 100 local hospitals. Mr. Giudice One bit of helpful advice Funk- managing director. zips into operating rooms carrying a bright-orange cooler. He tional Footwear’s founders got She previously served time is from Under30CEO.com: the as the president of the examines the donor organ for viability, flushes it with preservative acronym KISS, for Keep It Simple, Center for the of the solution, nestles it in ice, and races to another hospital where a sick Stupid. “We’re now asking most Advancement of Women, which she co- of our distributors, commission founded. patient is waiting. ¶ Hearts and lungs travel by helicopter; kidneys, MSG Entertainment: Phil Ernst, 53, was essence’ livers and small bowels by ambulance. “Organs don’t have an sales reps, and others we work appointed senior vice president of with to condense proposals and touring productions. He most recently internal clock,” says Mr. Giudice, who majored in biology at contracts,” says Ms. Shea. served as senior vice president and lead Fordham University,“but time is of the essence.” He’s one of just six Mr. O’Toole expects the online booker for Live Nation in New York. community to keep growing. “We Rockefeller Foundation: organ preservationists in the city. ¶ The youngest son in a tight-knit Heather Grady, want new grads to know they do 51, was named vice president of Sicilian clan, Mr. Giudice abandoned plans for medical school, and an foundation initiatives. She was internship in a transplant unit led him to preservation.“The outside have options,” he says. previously managing director at Realizing Rights: The Ethical world probably doesn’t know the pivotal role we have,” he says,“but WHAT’S THE BEST ADVICE you got Globalization Initiative. the surgeons and the transplant teams do, and that’s gratifying.” from a business owner? Tell us at See EXECUTIVE MOVES on Page 34 —hilary potkewitz www.crainsnewyork.com/execinbox.

September 20, 2010 | Crain’s New York Business | 33 20100920-NEWS--0034-NAT-CCI-CN_-- 9/17/2010 11:36 AM Page 1

RÉSUMÉ REVIEW Goal: Pump up the volume Is your job search all it could be? We ask the experts. written by more than 150 experts. we’re going to become an open site. eMusic.com chief And you get special treatment. We You’ll be able to visit and experi- NAME STEPHEN J. WEINSTEIN will revamp site, add had an event recently where 40 of ment before you have to commit to SUMMARY our members got to spend an membership. And though our pri- Experienced project manager with a major label tracks evening with [E Street Band mem- mary focus is on catalogs from indie, background in health care and facilities ber] Steven Van Zandt. You don’t jazz and classical [labels],we made a planning BY MATTHEW FLAMM get that anywhere else. deal with Sony a year ago and we’ll be extending to the other majors. PROFESSIONAL EXPERIENCE ndie label-oriented eMu- eMusic subscribers pay just 50 cents We have 10 million tracks now, and Continuum Health Partners, 2006-2010 sic.com,the iTunes alternative, per track. Do labels have a problem we’ll have 17 million by the end of Corporate director, planning, design and construction recently hired digital media with that? this year. We’re going from narrow Managed a team on more than 35 projects worth about $85 million veteran and former Booz Allen Of the music our members down- and deep to broad but still deep. Museum of Modern Art, 2000-2005 IHamilton consultant Adam Klein load, 75% of it is full al- Senior project manager as its new chief executive. Mr. Klein bums. Artists love it It’s been hard for music retailers to Managed design and construction of the renovation and expansion of is revamping the subscription web- when you take a body of make money in the digital age. How the museum site—which offers 24 tracks per their work, and obvi- close are you to being in the black? Cornell University Medical College, 1998-2000 month for $11.99—and forging ously the music com- We’re hovering around prof- Senior project manager deals with major labels. In the fall, panies love it because itable. We have projections for Directed renovation and construction for laboratories, offices, faculty he’ll launch a that’s always a better very exciting growth over the housing, other facilities marketing economic deal for them. next two years. We don’t New York University Medical Center, 1992-1998 campaign in When Arcade Fire need to grow a huge Senior project manager MOVERS & hopes of in- came out with its latest amount to be prof- Managed multiple construction projects including planning, design, creasing album, 17% of all of itable. renovation and modernization of labs, offices and classrooms SHAKERS membership its digital sales came from its cur- through us. Also, by What’s on your EDUCATION Adam rent 400,000. virtue of [subscrip- iPod? Brooklyn College, B.S., accounting In business tions], we have I’m a complete Résumé appears in condensed form. Klein since 1998, regular income and jazz lover. Since EXPERT ADVICE the privately can structure dif- I’ve been with held company ferent relation- eMusic I’ve sub- Stephen has a very solid background with top institutions. He presents his has revenue of about $65 million,up ships with labels stantially grown skill sets and experience relatively well. However, he should use a more from $6 million in 2003, but has yet and artists that re- out my library, standard and direct format. He should also be more specific about his to turn a profit. flect that stability. particularly Miles achievements. A helpful general rule is to assume that the person Davis. I’m also a reviewing your résumé will give it 30 seconds as a first pass. Make sure the What do you offer that’s so different You’ve been brought huge fan of Bruce document speaks quickly. from iTunes? in to shake things Springsteen. Basi- —marc gouran, president, Solomon-Page Healthcare Group We’re a club. You get the best prices up. What’s going cally, I’ve grown my To contact this candidate or to be featured in “Résumé Review,” e-mail us available, and you get a highly re- to change? library,which is what a at [email protected]. spected editorial service that we run Starting in mid- lot of people do when through our blogs and our e-mails, November, they join us.

EXECUTIVE MOVES Sheppard Mullin Richter & Hampton: Oberstein, 35, was named director of Courtyard by Marriott in Aguadilla, previously an associate in acquisitions James R. Hays, 49, was named a partner communications at the hospitality Puerto Rico. and development at CB Developers. in the law firm’s labor and employment organization. She joins from the Ritz- ideeli: Barbara Levy, Sidley Austin: Alyssa A. Grikscheit, 41, Continued from Page 33 practice group. He was previously at Carlton, where she served as area 55, joined the online joined the law firm as a partner. She had F.E.G.S. Health and Human Services Mintz Levin, where he served as a director of public relations. shopping community been a partner at Goodwin Procter. System: Judith Pincus, 45, was appointed partner. Condé Nast: Monica as senior vice president Marsh Inc.: Jay Sharma, 40, was senior vice president of the WeCARE BWise: Joseph C. LeBas, 39, joined the Ray, 47, was named of retail strategy. She promoted to multinational client service division at the nonprofit organization. risk and compliance management executive vice was formerly executive director at the insurance and risk She was formerly the first deputy software company as president, North president of consumer vice president at Ross management services firm. He was commissioner for the New York City America. He was formerly senior vice marketing at the Stores Inc. previously a client executive. Department of Juvenile Justice. president of the Americas at Vivisimo. magazine publishing UJA-Federation of New Studley: Ian Zilla, 34, Young & Rubicam North G2 USA: Brian Hull, company. She York: Mark Medin, 46, was named senior was promoted to America: Chris Hayes, 43, joined the previously served as vice president for financial resource corporate managing 39, was appointed marketing services senior vice president development. He previously served as director at the real chief marketing officer agency as executive of corporate digital development at executive vice president at Hillel: The estate services firm. at the marketing creative director of the Time Inc. Foundation for Jewish Campus Life. He was previously communications interactive marketing MediaLink: Edward Adler, 56, joined the The Corcoran Group: Andrew Levinson, managing director. agency. He was practice. He joins advisory firm as a senior partner. He was 32, was named director of business Schnader Harrison previously at Euro from Organic Inc., formerly at Time Warner Inc., where he development at the real estate Segal & Lewis: Cynthia RSCG 4D, where he where he most served as executive vice president of brokerage. He was previously managing Fischer, 59, was promoted to co-chair of served as marketing director, Europe, recently served as group creative corporate communications. director at Riverside Strategic Advisors. the law firm’s nonprofit organizations and global brand director for the director. LeClairRyan: James T. Seery, 48, joined New York Restoration Project: Amy practice group. She continues as partner. Unilever account. The Leading Hotels of the World: Jennifer the law firm as a shareholder. He was Freitag, 47, was named executive Invesco Real Estate: Todd Bassen, 50, was formerly a partner at DLA Piper. director at the park restoration named senior acquisitions director at the Rose Associates Inc.: Chiho Machado, 41, nonprofit. She was formerly the United real estate investment firm. He was was promoted to director of on-site States program director at World previously senior vice president of CORPORATE LADDER leasing at the real estate developer. She Monuments Fund. acquisitions at Vornado Realty Trust. was formerly manager of on-site leasing. Paramount Realty USA: James Angoff, 40, Razor & Tie: John P.Luneau, 55, was REVLON LANDS SEASONED MARKETING EXEC Francis Cauffman: David L. Labe, 52, joined the real estate services firm as a promoted to vice president of business was promoted to director of director. He was formerly a vice and legal affairs at the entertainment JULIA GOLDIN was appointed senior vice president and global communication at the architecture firm. president at Merrill Lynch Mortgage company. He was formerly senior chief marketing officer at Revlon Inc. Ms. Goldin, 41, joins He was previously manager of client Lending Inc. counsel, business and legal affairs. from The Coca-Cola Co., where she held senior marketing relations. JWT New York: Matt Hartsko Financial Services: David positions in the United States, Europe and Asia, most Sterling Infosystems Inc.: Robert Iadanza, MacDonald, 35, was Seelenfreund, 45, joined as senior vice recently as senior vice president and deputy chief marketing 40, joined the employment services firm promoted to executive president of business development. He officer of Coca-Cola Japan. Prior to Coke, she worked for as director of account management. He creative director at the was vice president of commercial loans was previously a vice president at marketing at Community National Bank. Quaker Oats Co. in Chicago. As she takes the reins of Plattform Advertising. communications —maia blume Revlon’s marketing efforts, she will oversee brands Judith Neal Johnson, 55, was appointed agency. He was including Revlon, Almay and Revlon Colorsilk. Revlon vice president for client services. She previously a creative reported $327.7 million in third-quarter revenues, up joins from BCD Travel, where she director. EXECUTIVE PROMOTIONS from $321.8 million for the year-earlier period. served as a senior vice president. Sierra Realty Corp.: Brooke Lovell, 31, was The fastest way to get an announcement into The GEM Hotel Midtown West: Jose named vice president of —MAIA BLUME Crain’s is to submit details online. Fill out the form Mojica, 35, joined as general manager. communications and marketing at the at www.crainsnewyork.com/submit. The He was formerly the general manager at real estate services company. She was Executive Moves column is also available online.

34 | Crain’s New York Business | September 20, 2010 20100920-NEWS--0035-NAT-CCI-CN_-- 9/17/2010 11:37 AM Page 1 chemex / INSATIABLE NYC.” NETWORKING FOR PROFESSION- CRITIC ALS will host the event at the Galway flickr.com Gael Greene THE Hooker Pub from 6:30 p.m. to 8:30 p.m. at 7 E. 36th St. Members pay $20. Nonmembers pay $30 if they purchase online tickets in advance. At the door, WEEK the charge is $35, cash only. E-mail Eating Eataly: adminnfp@networkingforprofessionals AHEAD .com or call (212) 227-6556. WORKSHOPS SEPT. 27-OCT. 3 MONDAY, SEPTEMBER 27 Mario’s temple The NEW YORK REAL ESTATE INSTITUTE redux offers a course on property management PROGRAMS & SEMINARS basics on the second floor of its building WHAT HE’S Manzo brings the TUESDAY, SEPTEMBER 28 at 139 W. 35th St. The fee is $50, and THE FORTE FOUNDATION invites you to preregistration is required. Contact the READING beef, not to mention attend “The M.B.A. Value Proposition,” institute at (212) 967-7508 or send an a forum where women can discover the e-mail to [email protected]. WFAN SPORTS-RADIO personality the big veal chop benefits of an M.B.A. degree, while Craig Carton reads mostly meeting representatives from business CULTURAL EVENTS magazines in his off-air time, ario batali has schools. The event runs from 6 p.m. to MONDAY, SEPTEMBER 27 GERALD W. LYNCH THEATER starting with GQ and Men’s described Eataly 9 p.m. in the Citi Conference Center at The at John Jay College presents a reading of The Health. He needs the men’s titles, NYC—the sprawl- 388 Greenwich St. The fee is $10. For information, contact (512) 535-5157. Master Forger, by David Wiener, as part he explains, to keep up with his ing Italian grocery

steven richter of First Throws, the theater’s playwriting co-host, National Football League store he and the BIG CUT: Manzo’s veal chop TUESDAY, SEPTEMBER 28 salon. The show is at 7 p.m. at 899 legend Boomer Esiason— MBastianichs (Lidia and son Joe) Visit the SEPTEMBER 11 PREVIEW SITE for 10th Ave. Admission is free. Call especially now that Boomer & cooked up with Eataly’s creator, Os- a discussion hosted by the Royal (212) 237-8005. Carton in the Morning is sim- car Farinetti, with money from Tori- EATALY Institution of Chartered Surveyors.The Pick ulcast on cable network MSG. no—as “a temple where food is more 200 Fifth Ave. event will be held from 5:30 p.m. to SATURDAY, OCTOBER 2 of the 7 p.m. at 20 Vesey St. Admission is $25. GOVERNORS ISLAND will be “When you sit next to an MVP sacred than commerce.”That means (212) 229-2560 week who once did a Hanes commer- we foodiots must not merely sit down www.newyork.eataly.com For information, call (212) 847-7400. transformed into a food destination. Pig Island, a cial, it’s tough,” Mr. Carton says. and eat at the beef-centric Manzo WEDNESDAY, SEPTEMBER 29 celebration featuring local pork, seasonal Men’s Health helps with his Ristorante, Il Pesce’s seafood kitchen, Attend the WALL STREET TECHNOLOGY foods, live bluegrass music and craft beer, the Pizza/Pasta café and the Coffee abs, and GQ with style. “Some CUISINE Italian ASSOCIATION’s “Leveraging Hot will include 60 whole pigs prepared by people keep up with the Bar, or even graze in the tasting Piaz- Technologies” seminar at the Westin talented chefs from some of the city’s top za. No:To worship in Mario’s temple, PRICES Pizzas $14, steak for New York at Times Square, 270 W. 43rd venues.The event runs from 11:30 a.m. Joneses,” he adds. “I try to keep we must shop,then go home and cook! two $95 St., from 7:30 a.m. to noon. For to 4:30 p.m. at Carder Road and is a up with the Boomers.” information, call (732) 530-8808 or e- fundraiser for Food Systems Network When it comes to books, Mr. Maybe Eataly will become Whole OPEN 7 a.m. to 11 p.m., Monday Foods Italiano for the locals.But I live mail [email protected]. NYC.Tickets range from $75 to $85 and Carton leans toward Dr. Seuss through Sunday include unlimited tastings. Visit and Don Freeman’s Corduroy, a at the opposite end of town. I’m here NETWORKING RECEPTIONS RESERVATIONS Manzo only, www.ilikepig.com for tickets and more series about a teddy bear. “I have for dinner on opening night. I shoul- MONDAY, SEPTEMBER 27 information. der my way toward the tasting Piazza, starting Oct. 1 It’s time for “High Speed Networking —maggie wells three kids,” he explains. “And where a ravenous rabble vie for nibbles NOISE LEVEL Lively buzz [those books] are at my level.” of cured meat, crudo and formaggi. To view Crain’s full calendar listings, go to www.crainsnewyork.com/events —MATTHEW FLAMM A space opens for our threesome at I can’t wait to return. a salumi-slicing station.A busboy de- I will definitely go back. livers crusty pale beige bread wrapped I’ll let them simmer awhile. in crinkled brown tissue paper, and NO HATS dishes of fig and orange peel mostar- Never again. da and honey. The “gran selezione di salumi e formaggi con pane e miele” on a wooden board we are sharing is white tablecloths and votive candles? sensational—speck, prosciutto, sala- The four of us vote down the $75 Expect us to be mi, creamy sweet gorgonzola, chunks six-course tasting menu and a $65 of Parmigiana, mozzarella, taleggio five-course Ligurian menu to craft and pecorino di fossa.I’m unwilling to our own—three antipasti, two primi leave a morsel of cheese. and two secondi.Except for the mar- YOUR PARTNER. We move on to the pizza corner, velous oversized veal chop—deli- where a duo of masters from Naples ciously pink, perfectly car- is shoving pies into a pair of amelized—and the salad of sparkling gold-tiled ovens. We’re vegetables, portions are measured. I $29,000,000 $8,500,000 $8,500,000 $17,500,000 sharing an exquisite little mixed sal- found myself feeling cheated with Senior Credit Senior Revolving Senior Revolving Revolving Credit ad—baby arugula,slivers of remark- just a tablespoon of carne cruda, the Facility Credit Facility Credit Facility Facility ably fragrant fennel and pickled wonderfully flavored tartare with a Provided for Provided for Provided for Provided for vegetables, meticulously dressed— quail egg.Small pink curls of “arista,” with our “maruzzela”pie (anchovies, Tuscan roasted herb-stuffed pork, black olives and fresh basil).It’s din- with fennel salad and bagna cauda, ner-plate size, wonderfully free- don’t quite make up for missing form and properly blistered, very Mario flashes like warm calf ’s Neapolitan, soft and soggy. But the tongue in a Barbaresco vinaigrette ASSET-BASED FINANCING dough is only mildly flavorful, not and brains with an oxtail ragu. But my idea of great pizza. then come tagliata,juicy rare slices of e’re helping businesses like yours grow. Big hair-roller-shaped pac- beef,with corn,chanterelles,charred cheri—“very al dente like in Italy,”the onion and truffle vinaigrette, and See why we’ve earned our reputation as a leading provider of working capital menu promises—with bits of cala- that perfect veal chop, “smoked in financing to growing companies. For more information, contact Warren Mino, President, mari, grouper, clams and scallops hay,” the menu claims. at 212-806-4500 or visit us at Websterbcc.com to submit an online application for chase my pizza blues. Long loose I admire pastry chef Luca Mon- credit or find our nearest location. curls of artisan fusilli with tomato and tersino’s baba al limoncello with meat ragu are good,too,although not lemon cream,but even more satisfy- NEW YORK | BOSTON | PHILADELPHIA | HARTFORD | PORTLAND the sheer triumph of that paccheri. ing is a cup of chocolate gelato. Back again Wednesday night, we “When I said that four would be finish a mostly satisfying dinner at sharing this cup, the server asked if NYSE:WBS* Manzo, Eataly’s celebration of the I wanted more,” our friend reports. ® cow,notably the Razza of Piedmont, First week,that seems to sum up the Visit Websterbcc.com now being raised in America. Will house attitude. All credit facilities are subject to the normal credit approval process. New Yorkers be willing to spend * The NYSE ticker symbol of WBS is assigned to Websterial FinancCorporation and does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes. $200 a couple for a steak dinner in a Copyright © 2010 by Gael Greene. Webster Business Credit Corporation is a subsidiary of Webster Bank, N.A. Member FDIC. Equal Housing Lender. The Webster Symbol and Webster Business Credit are registered in the U.S. Webster Bank, N.A. Member FDIC grocery store, granted with crisp Syndicated by www.insatiable-critic.com. Patent and Trademark Office.

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