Starrett City Bidder Makes Last-Ditchpitch
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nb11p01.qxp 3/9/2007 7:30 PM Page 1 TOP STORIES REPORT ABC Home’s SMALL co-founder returns BUSINESS to revive store New Fulton Fish Market with offbeat ideas a cooperative triumph PAGE 2 ® PAGE 19 Giant jet headed to JFK, testing $200M upgrade VOL. XXIII, NO. 11 WWW.NEWYORKBUSINESS.COM MARCH 12-18, 2007 PRICE: $3.00 PAGE 3 Stephanopoulos inks lucrative book Starrett City deals with 2 rival publishers bidder makes NEW YORK, NEW YORK, P. 6 Executive pay last-ditch pitch at hospital, insurer exposes truths efficiencies. about health care Clipper says plan It also wants to take advantage of some of the 6 million square feet GREG DAVID, PAGE 13 reduxpictures.com ensures low rents; THOSE DANCIN’ FEET: Nederlander New Century, a joint venture with a Beijing company, will of development rights that come present a tour of 42nd Street this fall. It is also developing a venue circuit and ticket service. foes want Mitchell- with the site by building new hous- Banks mobilize Lama protected ing for senior residents, a retire- to fight Spitzer’s ment facility for members of the city’s labor unions and small-scale loophole-closing BY JULIE SATOW retail,with a designated area for lo- THE INSIDER, PAGE 14 Broadway hitmakers cal entrepreneurs. the prospective buyer of Starrett “When we say we mean afford- City is making a last-ditch effort to able, we mean it,” says Leonard BUSINESS LIVES heading to China save its bid for the Brooklyn hous- Grunstein, a partner at law firm CHILDLESS BY CHOICE ing complex by preparing a propos- Troutman Sanders, which Clipper al to preserve low rents for the com- Equity hired to oversee its strategy. Nederlander latest Broadway shows throughout Chi- plex’s 6,000 apartments and The developer has also re- na and help develop a marketing develop unused land to re- $221K tained a second law firm, a to find huge market system for live entertainment.The coup its investment. THE PRICE, public relations expert and effort could set the stage for a the- The plan,expected to be calculated per a lobbyist to bolster the irresistible; creating unit, that ater industry similar to that of the circulated this week, is Clipper has campaign. show infrastructure United States. aimed at easing fears that offered to pay But housing officials The fledgling venture will the $1.3 billion purchase and politicians—many of More two-income launch a tour of 42nd Street in price is so high that the landlord whom came under fire for failing to couples opt out of baby BY MIRIAM KREININ SOUCCAR Shanghai this September. would have to sharply raise rents. block the recent $5 billion sale of race PAGE 29 “We’re going to be able to pro- Clipper Equity, formed by in- affordable housing complexes new york’s most famous Broad- vide a sense of comfort and conti- vestor David Bistricer for the pur- Stuyvesant Town and Peter Coo- way family is heading to China. nuity for Broadway producers in pose of buying Starrett City, says per Village—have condemned the Nederlander Worldwide En- China,” says Bob Nederlander Jr., that it can trim operating expenses deal. They blast Mr. Bistricer’s AT DEADLINE tertainment plans to announce president of Nederlander World- by installing new heating and cool- record, citing thousands of viola- next week that it is forming a com- wide. ing systems, lowering manage- tions at his other properties. They SOHO IS THE MOST POPULAR pany that will present tours of See BROADWAY on Page 8ment fees and improving overall See LAST-DITCH on Page 10 SHOPPING NEIGHBORHOOD in New York City, according to the 7,500 people polled for Zagat’s new shopping guide, which comes out Tuesday. IN THE MONEY Newcomers such as Uniqlo, Effort to rein in pay Ugg and Alessi have helped make SoHo a hot spot.This is the first Zagat shopping gathering steam survey to poll respondents about their favorite neighborhoods. “There’s been they produce supersized financial an incredible revival of SoHo,” Shareholders target results. says Nina Zagat, co-founder 60 companies over The spotlight will be aimed at of the guidebook company. some of New York’s most impor- CEO compensation tant companies, including Avon $22.0M $11.5M CITIGROUP INC. IS EXPECTED TO Products Inc., Bear Stearns Cos., JAMIE DIMON ANDREA JUNG ANNOUNCE later this month Colgate-Palmolive Co. and J.P. J.P. Morgan Chase & Co. Avon Products Inc. that it will slash expenses by BY AARON ELSTEIN Morgan Chase & Co. This year $2 billion over the next two or could prove to be a crucial test of three years, according to Punk in the coming weeks, nearly 60 whether shareholder resolutions Ziegel & Co. analyst Dick leading companies will be asked to can pressure corporate America to Bove.That amounts to about sign on to a seemingly straightfor- change how it approaches execu- See AT DEADLINE on Page 2 ward proposal: Top executives tive compensation. should get supersized pay only if “Pay for performance is a sim- ple idea that every company agrees with in theory,” says Julie Gozan, 11 5 director of corporate governance at Amalgamated Bank, which has drafted a handful of pay-for-per- $18.3M $25.7M ELECTRONIC EDITION formance resolutions.“It’s time for REUBEN MARK JAMES CAYNE shareholders to speak up.” Colgate-Palmolive Co. Bear Stearns Cos. The assault on skyrocketing NEWSPAPER 2005 pay. Sources: J.P. Morgan Chase and Equilar See EFFORT on Page 8 bloomberg news 71486 01068 0 CNYB 03-12-07 A 2 3/9/2007 7:16 PM Page 1 AT DEADLINE Continued from Page 1 today’s edition. Despite help 4% of the giant bank’s non- from NBC’s powerful interest expenses last year. Chief promotional juggernaut, the Executive Charles Prince has Today show, iVillage has barely promised investors that he will bumped up its number of take drastic action to rein in monthly unique users, which costs. has been stuck at around 15 million. AIR AMERICA RADIO’S NEW PRESIDENT, Mark Green, has RENOWNED CHOCOLATIER, extended his hand to New York JACQUES TORRES is opening his Post editorial page editor Bob second sweet shop in McManus—who has apparently Manhattan at 285 Amsterdam slapped it back. In a posting last Ave., between West 73rd and week on the Huffington Post, West 74th streets, according to Mr. Green said he had proposed Newmark Knight Frank Retail, that Mr. McManus come on Air which brokered the deal.The America to discuss the Post’s asking rent is $250 a square right-leaning views, and that foot.This will be Mr.Torres’ Air America’s left-leaning third location in the city. He NO CONTEST: Sarah commentators write an op-ed opened his first store, which Stewart favored the column for the paper. Mr. doubles as his factory, in challenge and McManus says that he doesn’t Dumbo, Brooklyn, six years ago. gratification of the consider the e-mail he received He also has a site in SoHo. Corporation Counsel’s from Mr. Green to be a serious office over bigger offer. “If he’s serious about it, he THE WORLD TRADE CENTER earnings. can pick up the phone and call MEMORIAL FOUNDATION received me,” says Mr. McManus. a $500,000 donation from Great buck ennis American Insurance Group to MANHATTAN-BASED SPEECHCYCLE help build the memorial and INC. HAS RAISED $10 million in adjacent museum at Ground its first effort to win Zero.The foundation has raised institutional financing.The more than $253 million so far company, which was founded in from more than 30,000 donors Public lawyer pay wars 2001, develops and licenses in 23 countries. advanced automated call center technology to major cable NEW YORK CITY COLLEGE OF Agencies, interest groups hike entry-level salaries television companies. TECHNOLOGY plans to unveil a SpeechCycle will use the Web site next month for investment to enhance its students who are military BY HILARY POTKEWITZ technology and expand its veterans.The $60,000 project, business overseas. Venture described as a network of nasrina bargzie was ecstatic when she began her job at the American Civil Liberties capital firm M/C Venture services, will provide quick Union in September. It was her dream job—working on high-profile civil rights cases. What’s Partners in Boston was the lead answers to veterans’ questions more, it paid $59,000 a year. investor. about federal benefits or other support services.The site is one “It was a total surprise to me,” says Ms. Bargzie, 26, who recently graduated from law school. A YEAR AFTER NBC UNIVERSAL of several City University of She had expected to make in the $40,000 range—what she figured was “the norm” at public PURCHASED iVillage for New York pilot projects for the interest organizations. $600 million, the women’s approximately 3,000 students in portal is languishing, its schools who have served in Actually, she is luckier than she knows. Starting salaries for ACLU lawyers had hovered at Advertising Age reports in the armed forces. I about $36,000 until two years ago, when new leadership instituted across-the-board pay See MORE PAY on Page 9 THIS WEEK IN CRAIN’S GREG DAVID ------------------------------------13 ABC Home’s letter-perfect THE INSIDER------------------------------------14 WEEK IN REVIEW -----------------------16 CEO restores By most accounts, the chief exec- Weinrib—owner of sister company NEIGHBORHOOD utive’s unconventional efforts are ABC Carpet Co.—admits he’s sur- furnishings retailer paying off for ABC Home,one of the prised by the turnaround.