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CRAINSNEW YORK BUSINESS NEW YORK BUSINESS® DECEMBER 5 - 11, 2016 | PRICE $3.00 And the Heads Subway Grammys roll at surge go to ... VOL. XXXII, NO. 49 WWW.CRAINSNEWYORK.COM CUNY Soon-to-open Leadership Will union extension sparks shifts in concessions bring real estate boom wake of guv’s awards show back on Second report P. 5 to Gotham? P. 7 Avenue P. 8 NEWSPAPER P001_CN_20161205.indd 1 12/2/16 9:43 PM “We’ve been able to give our employees this great experience, and they’ve been able to have this pride of being able to say ‘I work at One World Trade.’” TREVOR KAUFMAN, CEO PIANO “Whenever anybody asks me, ‘Where do you work?’ One World Trade really resonates.” ERAN BARAK, GLOBAL HEAD OF BUSINESS OPERATIONS SYMPHONY BE INSPIRED THE PREBUILTS AT ONE WORLD TRADE CENTER 21 OFFICE SUITES FROM 5,000–25,000RSF IMMEDIATE OCCUPANCY FLEXIBLE TERM LENGTHS INSPIRING VIEWS COMMUNITY OF INNOVATIVE PEERS 25,000SF AMENITY FLOOR EXCLUSIVELY FOR TENANTS AND THEIR GUESTS ONEWTC.COM DISCOVER WHY COMPANIES AT ONE WTC FOR LEASING ERIC ENGELHARDT TARA STACOM ARE INSPIRED TO REACH NEW HEIGHTS INQUIRIES: +1 (212) 667 8704 +1 (212) 841 7843 CN018071.indd 1 11/30/16 12:48 PM Crains Full Page DECEMBER 5 - 11, 2016 CRAINSNEW YORK BUSINESS FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE Donald Trump’s Preet pick 4 AGENDA 5 IN CASE YOU MISSED IT OF PRESIDENT-ELECT Donald Trump’s nominees so far, the State floats 6 ASKED & ANSWERED decking over most curious—from a New York perspective—is Preet South Bronx Bharara, President Barack Obama’s U.S. attorney for the 7 ENTERTAINMENT rail yard. Will 8 WHO OWNS THE BLOCK investors Southern District, who agreed last week to work under bite? Republican Attorney General-nominee Jeff Sessions. Sen. 10 REAL ESTATE Charles Schumer, who had long ago hired Bharara as his 11 VIEWPOINTS chief counsel, reportedly blessed the deal, lending it an aura FEATURES of bipartisanship. The choice indicates that Trump, who has said he will 12 BEST PLACES TO WORK “drain the swamp” in Washington, likes what Bharara has done so far in New York, where he has taken down former A leak of confiden- state Sen. Majority Leader Dean Skelos, a Republican, and tial law enforce- Assembly Speaker Sheldon Silver, a Democrat, among others. “ In Bharara, Trump finds a prosecutor who is above re- ment information proach and who can keep the pressure on Mayor Bill de Bla- corrupts the integ- sio, whom Trump has called “the worst mayor in the history rity of our criminal of New York City.” Bharara is investigating the mayor’s fund- P. 37 raising operations and role in the sale of Long Island College justice system NIKEIA MARKS Hospital. Retaining Bharara also makes life uncomfortable 37 GOTHAM GIGS for Gov. Andrew Cuomo. Bharara recently obtained a guilty plea—and coopera- tion—from a Cuomo confidant and has charged others, including a former top aide, 38 SNAPS in a wide-ranging indictment involving the governor’s upstate economic-develop- 39 PHOTO FINISH ment programs. CORRECTION All this suggests that Bharara will continue to be given wide discretion in how The Segal Group is the fifth-largest benefits con- he conducts his job. Some insiders are speculating there could be fallout from Rudy sultant in New York. Its rank was misstated in the Giuliani’s boast in October about having connections inside the FBI that would af- list of the largest benefits consultants, published May 16. fect the election. “We’ve got a couple of surprises left,” the Trump surrogate told Fox News on Oct. 25. Three days later, FBI Director James Comey said agents working on the Anthony Weiner sexting investigation had found emails that appeared rel- evant to the Hillary Clinton email probe, which he had previously said was closed. Some former prosecutors believe a Southern District investigation into a pos- sible leak in the Weiner case is imminent, if not already underway. Bharara’s office declined to comment. “A leak of confidential law enforcement information is always troubling because it corrupts the integrity of our criminal justice system and calls its fairness into doubt,” said a former assistant U.S. attorney in the Southern District. “Nowhere is this more true than when the investigation itself involves allegations of corruption by public officials, because the leaks are inevitably seen as politically mo- tivated attacks.” Giuliani was an effective surrogate but, like Gov. Chris Christie (and ON THE COVER perhaps for similar reasons), he seems to have been pushed aside. If an investiga- tion materializes, then Trump—intentionally or not—would really have a bipartisan claim to draining the swamp. DIGITAL DISPATCHES Go to CrainsNewYork.com CONFERENCE CALLOUT DECEMBER 14 CRAIN’S READ Fighting financial BREAKFAST FORUM troubles, Abyssinian Development Corp. > Join Crain’s and New York Police has sold off more Commissioner James O’Neill than one-third of its for a morning discussion about $155 million real es- the NYPD’s plans tate holdings. Chairman to maintain public safety Calvin Butts tells Crain's and implement that better times are neighborhood policing. ahead for the Harlem nonprofit. NEW YORK n Studies from NYU Langone and Johns ATHLETIC CLUB Hopkins show that synthetic magic mush- 8 a.m. to 9:30 a.m. rooms can reduce depression and anxiety [email protected] in cancer patients. The drug could prove cheaper and more effective than conven- Vol. XXXII, No. 49, December 5, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for tional psychiatric medication. double issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send n Less than two weeks after BMW launched address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. For its ReachNow car-sharing service in Brook- subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. lyn, Daimler AG has started to upgrade its 13676-0444-RT) ©Entire contents copyright 2016 by Crain Communications Inc. All rights reserved. Car2go fleet. Daimler's two-seater Smart Cars will now contain heated seats, larger cabins and more powerful engines. BLOOMBERG, BUCK ENNIS DECEMBER 5, 2016 | CRAIN’S NEW YORK BUSINESS | 3 P003_CN_20161205.indd 3 12/2/16 9:44 PM WHAT’S NEW DECEMBER 5, 2016 AGENDAHostels want to return to New York. The city should welcome them back udget-conscious travelers would love to have some- where safe and inexpensive to stay in New York City. Hostel executives are eager to invest millions to ac- commodate them. Commercial landlords would gladly Blease or sell property to the industry. Local tourist attractions and small DUTCH TREAT: An businesses would appreciate new visitors. Edgy neighborhoods would Amsterdam property run bene t from their activity and spending. And the government would by Generator welcome the added tax revenue. Hostels, one of the hostel Hostels would create many winners—but so far not enough, appar- operators ently, for lawmakers to pass a bill allowing them to ourish here. eyeing the Big Apple A 2010 statute banning short-term apartment rentals inadvertently ruined the economics of hostels, leading most of New York City’s to close. The few that remain face limitations on sleeping arrangements— The bill also needs a new primary sponsor or some advocacy from no more than four guests to a room, for example—that render their its current one, Councilwoman Margaret Chin. She has no discernible traditional dormitory-style cost structure impossible. enthusiasm for the measure, having inherited it from a colleague who Legislation to x this was drafted by a city task force in 2011 but, in- left of ce. It needs a true champion to research and reshape the legis- credibly, the City Council has given it scant attention. The hostel indus- lation and win over powerful interests, especially owners of unionized try is trying to revive it but has been strug- hotels and the politically potent union gling just to get the chamber to schedule a A 2010 law inadvertently crippled that represents their workers. Hostels hearing, which is crucial because changes are serve an entirely different clientele than needed to re ect the advent of quickie rent- the industry, pricing out young and unionized hotels, so the union ought to als booked on the internet. Provisions should budget-conscious travelers be neutral about their return to the city, be added to reassure council members that if not in favor of it. The bill also needs hostels will not be like Airbnb, which is dis- community and de Blasio administration liked by many city lawmakers because some folks use the listing service support, which can be generated by adding terms that restrict hostels to to book tourists in what should be affordable housing for New Yorkers. commercial areas. The bill would support those legislators’ interests because hostels would Every year that hostels are frozen out costs New York up to $500 compete with Airbnb for budget travelers without using apartments or million in lost revenue, while rival cities like London are cashing in. It’s land zoned for residential use. time we showed this industry a little hospitality. — THE EDITORS FINE PRINT Nonpro t FuzeHub announced a $5 million fund to support startup and small manufacturers. “We are con dent that these grants will have a meaningful impact in terms of enabling companies to create jobs and make new investments here in New York,” the group said.