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TOP STORIES Keep the Rent hikes force city’s fiscal tony firms to seek suspenders cheaper space —Alair Townsend on the need for PAGE 2 a Financial ® Control Board Oldies, rock radio Page 11 stations soar with people meters; losers cry foul VOL. XXIII, NO. 47 WWW.CRAINSNEWYORK.COM NOVEMBER 19-25, 2007 PRICE: $3.00 PAGE 3 Diddy speaks out on branding, More labor music’s many ills PAGE 3 unrest on Thain may fix Merrill, but it’s too soon to buy shares tap in NYC IN THE MARKETS, PAGE 4 Rabbis make office Workers want bigger Workers are demanding a calls, Christians greater share of the prosperity that piece of the pie; many of the city’s employers have get a Web site and enjoyed in recent years. But com- off-Broadway sings managers fear panies are reluctant to commit to NEW YORK, NEW YORK, P. 6 slowing economy generous long-term contracts just when the economy is slowing down. In some industries in which BY TOM FREDRICKSON companies have been struggling, BUSINESS LIVES employers are looking for conces- PET PERKS the flurry of strikes in New sions from workers, who are dig- York City may only mark the be- ging in their heels. Firms extend PRASHANT BHATIA MEREDITH WHITNEY DICK BOVE ginning of a long,cold winter of la- “There is anger out there, and it benefits to bor strife. is exacerbated by the opulent life- four-legged “Bankruptcy “[Citigroup] “The brokers Strikes by Broadway workers style that everybody sees,” says family and TV scriptwriters seemed to be Richard Boris, executive director members risk at E*Trade will be forced should be setting the stage for increasingly of the National Center for the PAGE 31 cannot be to sell sold at contentious contract talks in a Study of Collective Bargaining in ruled out.” assets.” once.” number of industries. Those af- Higher Education at Hunter Col- fected include the thousands of lege. “We have now the recipe for people who clean Manhattan of- very charged collective bargaining fice buildings and work in office across the board.” cafeterias, as well as radio news Unite Here is waging a cam- ATTACK-DOG writers and telephone technicians. See LABORon Page 8 AT DEADLINE HEALTH INSURANCE COSTS FOR ANALYSTS LARGE EMPLOYERS in the New Further trials ahead York area increased 6.3% for Blunt-talking group has shaken active workers this year, to an average of $8,730 per markets, driven out CEOs; employee.The increase is for Spitzer’s agenda much higher than the 5.1% has it gone too negative? that employers nationwide are experiencing, according to a BY AARON ELSTEIN Wish list at risk GOVERNOR’S survey released Monday, No. as Bruno feud helps PRIORITIES 19, by Mercer. Local in the past month, the credit crisis has forced banks to employers expect costs to write off more than $50 billion worth of subprime-related fuel Albany gridlock G RENEW horse-racing franchise climb more than 7% next year.

getty images: dog G Employers nationwide expect / debt, driven the heads of Citigroup and Merrill Lynch from REFORM campaign finance an increase next year of only their plush corner offices and sent shock waves through BY ERIK ENGQUIST G REVISE Wicks Law 5.9%. global financial markets. G BAN junk food from schools It has also made heroes of a handful of hitherto humble gov.eliot spitzer abandoned his AS THE STRIKE BY THE WRITERS analysts leading the charge to force banks to come clean— controversial plan to give driver’s G PASS power plant siting law GUILD OF AMERICA drags into to quantify the damage and to compel players at the center licenses to illegal immigrants in or- a third week, at least one of the disaster to walk the plank. der to focus on his larger agenda, group of production workers but Albany insiders say it’s still un- and political support for the gover- are unlikely to be affected— Formerly known as docile pencil-pushers routinely par- likely that he will accomplish much nor, and Senate Majority Leader those who work on the four roting the happy talk of the companies they follow, half a in the coming months. Joseph Bruno’s animosity toward soap operas filmed in New dozen among the group of about 20 brokerage analysts who Mr. Spitzer’s priorities include him, have dashed hopes for major York City.The daytime track Wall Street have risen snarling from their cubicles. a slew of bills that piled up when progress. See AT DEADLINE on Page 2 See ATTACK-DOG ANALYSTS on Page 8 discord shut down the capital in “In all of my years in Albany—

bloomberg news: street, wall bhatia, whitney June. Since then, declining public See MORE TRIALS on Page 9 47

5 REPORT TECHNOLOGY WEB EXCLUSIVE Online ads powering boom; Slide show of some ELECTRONIC EDITION hybrid workers in demand; of the city’s online 100 fastest-growing advertising

NEWSPAPER companies Pages 19-26 workforce www.crainsnewyork.com/slideshows/tech 71486 01068 0 CNYB 11-19-07 A 2 11/16/2007 7:57 PM Page 1

AT DEADLINE Continued from Page 1 six-figure advertising campaign Swanky offices dramas, including All My against JetBlue Airways for Children and One Life to Live, paying its guards poorly. have scripts written to keep The ads from Service them going through the end of Employees International Union January. If the strike continues, Local 32BJ appear on cable feel crunch the shows will hire nonunion television, taxi television and the ghostwriters to sustain the Internet.The union is seeking episodes, sources say. to organize workers of Summit Meanwhile, speculation is Securities, which provides 80 mounting that late-night talk guards to JetBlue.The workers of rent hikes shows are considering returning are paid just $20,000 a year, one to the air after Thanksgiving, ad claims, “not enough to feed a with hosts including David family.” Many firms decide to relocate Letterman and Jon Stewart, writing their own shows. PRESIDENTIAL CANDIDATE JOHN EDWARDS PLANS to create a to less desirable buildings SPANISH FAST-FASHION RETAILER profile on Community Connect ZARA IS CONSIDERING leasing a Inc.’s five niche social BY THERESA AGOVINO four-story, 16,000-square-foot networking sites— space at 500 Fifth Ave., at West BlackPlanet.com, the tower at 450 park ave. is clean, elegant and 42nd Street, according to MiGente.com, AsianAve.com, efficiently managed, and its location in one of industry insiders. Landlord 500 GLEE.com, and Fifth Ave. earlier this year Faithbase.com—according to Manhattan’s premier office districts bestows a ousted its former retail tenants, the Manhattan-based firm. His certain cachet. Lee Elman loves having his including tobacconist Nat wife will also answer questions business at the site. Sherman, to make room for a posted by members. Opponent fashion flagship. A Zara Barack Obama has had a profile His love has boundaries, however. Mr. Elman’s competitor, Swedish H&M, on the sites since Oct. 5 and has rent will more than double when his lease expires opened a store on the opposite attracted more than 200,000 next October, to about $140 a square foot. Because corner in September.The asking friends. In additions, CCI says it the added expense will significantly cut into his rent is about $125 a square foot. is in talks with Sen. Hillary None of the brokers involved in Clinton’s campaign team. CCI’s profit margins, Mr. Elman is looking for new the negotiations would sites have more than 19 million space. Unless he can find a place to share in comment. members. another swanky building, Mr. Elman is RIVERWIRED INC., A NEW SOCIAL A PUBLIC VIEWING OF THE FIVE resigned to downgrading to a location with NETWORKING SITE that aims to PROPOSALS to develop the fewer amenities and less panache. provide “light green” Hudson Rail Yards begins “I need to move out,” says Mr. environmental content to the Monday, Nov. 19, at a storefront Elman, president of an mainstream market, goes live in at 335 Madison Ave.The January.The site, founded in exhibit will be opened for 14 eponymous real estate investment April by Catherine Billon, a days, including weekends, from firm. “Rents are crazy.” former Time Warner executive, 8 a.m. to 8 p.m. Comments Brokers say dramatic rent plans to generate revenue will be accepted at the site and hikes have spurred increasing through advertising. It has online. An MTA spokesman raised $1.5 million in seed says the public’s opinions will numbers of office tenants at the capital. be among the criteria city’s better addresses to seek considered as the agency space in less illustrious quarters. A UNION REPRESENTING narrows the number of In the past 10 years, rents in the “CRAZY RENTS”: Lee SECURITY GUARDS is launching a proposals it will evaluate. I Elman’s real estate highest-quality buildings have investment firm must move to a less more than doubled, forcing prestigious address. nonprofits and businesses with THIS WEEK IN CRAIN’S thin margins—such as ad agencies and architecture ALAIR TOWNSEND ------11 33 See RENT HIKES on Page 9 THE INSIDER------12 david neff david

WEEK IN REVIEW ------14

REAL ESTATE DEALS------16 THE WEEKS AHEAD ------17 Ferry deal hits choppy sea NEIGHBORHOOD price for the boats and other related pay has not been disclosed. JOURNAL------18 Price dispute over equipment that Statue Cruises must If no agreement is reached soon, REPORT: boats to Ellis Island, acquire as a condition of its new Statue Cruises will likely have to contract with the National Park bring in its own boats by Jan. 1, TECHNOLOGY ------19 Statue of Liberty Service, which manages both his- when the company must take over SMALL BUSINESS ------27 toric sites. the route. A National Park Service BY LISA FICKENSCHER Statue Cruises is a subsidiary of spokesman says the company could CLASSIFIEDS ------28 San Francisco-based Hornblower agree to lease Circle Line Down- just six weeksbefore Statue Cruis- Yachts, which won the 10-year, town’s boats. BUSINESS LIVES------31 es is supposed to begin ferrying pas- $350 million contract in June, re- The federal agency originally set CORPORATE LADDER------33 sengers to the Statue of Liberty and placing Circle Line Downtown. a deadline of Oct. 2 for the transfer. Ellis Island it has yet to secure a fi- J.B. Meyer, chief executive of That deadline was extended in Au- EXECUTIVE MOVES------34 35 nal deal for the seven boats it needs. Circle Line, insists that the negotia- gust to Jan. 1, when it became clear BOB LAPE ------35 Negotiations to purchase seven tions between the companies are not that the companies would need boats owned by Circle Line Down- acrimonious. He believes that his more time. vol. xxiii, no. 47, november 26, 2007—Crain’s New York Business (issn 8756-789x) is pub- lished weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- town, the outfit that held the ferry boats are worth more than Horn- Despite the protracted negotia- icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address concession for over 50 years, are at blower is willing to pay for them. tions, the federal agency insists fer- changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a an impasse. As of early this month, The Parks Service officially esti- ry service to the national monu- copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents the matter is in arbitration. mates the vessels and equipment are ments won’t be interrupted. copyright 2007 by Crain Communications Inc. All rights reserved. The two companies have been in worth approximately $20 million. talks since August. At issue is the How much the company is willing to COMMENTS? [email protected]

2 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 3 11/16/2007 8:04 PM Page 1 Arbitron roils radio New way Use of digital ratings gering. Oldies station WCBS-FM to sell had 4.2 million people tuning in UP AND DOWN THE DIAL during an average week.In the sum- gizmo buoys rock, People meters cause a reordering of New York radio station rankings. mer survey—the last to use diaries— upsets urban and the station’s cumulative audience, or PORTABLE PEOPLE METERS1 PAPER DIARIES2 booze Hispanic stations “cume,” was just under a million. 1 WLTW-FM Adult contemporary 1 WHTZ-FM Pop Rock and pop formats generally 2 WHTZ-FM Pop 2 WRKS-FM Urban adult contemporary A&P buys innovative moved up in rankings.That has been 3 WCBS-FM Classic hits 3 WLTW-FM Adult contemporary BY MATTHEW FLAMM good news for Clear Channel Radio, 4 WAXQ-FM Classic rock 4 WSKQ-FM Spanish tropical chain to boost its which has the top three stations 5 WSKQ-FM Spanish tropical 5 WINS-AM All news wine, beer sales this just in: Chuck Berry beats among listeners 25 to 54 years old, Chaka Kahn. And Led Zeppelin is and for CBS Radio.The operator re- 5 WABC-AM News/talk 6 WBLS-FM Urban contemporary doing better than Daddy Yankee. turned WCBS-FM to its oldies for- 7 WKTU-FM Rhythmic adult contemporary 7 WCBS-FM Classic hits BY LISA FICKENSCHER Oldies and classic rock are the mat and converted WXRK-FM 8 WWFS-FM Adult contemporary 8 WQHT-FM Rhythmic contemporary big winners in the first month of the back to rock from talk earlier this year. 8 WWPR-FM Urban contemporary 9 WPAT-FM Spanish contemporary great atlantic & Pacific Tea Co., first New York radio survey to use 10 WINS-AM All news 10 WWPR-FM Urban contemporary the supermarket giant, purchased a Highs and lows portable people meters, which have 10 WCBS-AM All news Based on listeners aged 12 and over, Mon. to Sun., 6 a.m. to local wine retailer, Best Cellars, and midnight. 1-Sept. 20 to Oct. 17. 2-June 28 to Sept. 19. In case replaced the handwritten diaries “those formats were under-sam- 10 WRKS-FM Urban adult contemporary- of ties, stations are listed under the same ranking number. plans to install the innovative mer- that Arbitron used for decades. Ur- pled in the diaries,” says Don chant in at least 29 of its grocery Source: Arbitron Inc. ban and Spanish-language stations Bouloukos,New York market man- stores across several states. have been the losers—sparking a ager for CBS Radio. The Montvale, N.J.-based con- chorus of complaints about the But while rock and pop stations nel.They called for Arbitron to im- have always focused on listeners who glomerate, which owns Food Em- makeup of the Arbitron panels. are breaking out the champagne, mediately create bigger, more di- stay tuned for at least five straight porium, A&P and Waldbaums, and Most of all,the new system is giv- urban and Hispanic stations are verse panels. minutes. So far, the number of those is in the process of buying Pathmark, ing radio good news for a change. crying foul. The mounting contro- In a statement last week, Arbi- listeners is down double digits. will pay Best Cellers’ owners on the Despite iPods, satellite radio and the versy over their ratings echoes the tron said a review of the data will be basis of the company’s beer, wine Internet, the mother of all wireless troubles Nielsen had rolling out lo- completed this month and that ac- Is that listener loyal? and spirits business over the next technology still sends a strong signal. cal people meters to measure televi- tion will be taken based on its find- radio operators say that cume four years. In fact, more people are tuning sion viewing three years ago. ings. Some station managers who has to be considered, but some ad- in to stations than anyone knew R&B stalwart WBLS-FM, No. met with Arbitron complain that it vertisers don’t agree.“Those listen- Pioneering merchant from the diary method, which re- 1 among listeners 25 to 54 years old promised improvements in three or ers are not loyal,” argues Mark “we wanted the valuation of Best quired panelists to remember what this summer, plunged to 12th place four months. “Fix it now,” says Lefkowitz, media director, Furman Cellars to be based upon the positive they listened to.The meters, which with the meters. Spanish-language Deon Levingston, general manag- Roth Advertising Inc. changes we’ll make in their chain,” can be clipped to a belt or purse, WPAT slid to 19th from 7th,as sis- er of WBLS. “There’s too much Still, most marketers appreciate says Joshua Wesson,co-founder and record station choices automatical- ter signal WSKQ dropped to sev- money at stake.” what they consider to be a more ac- co-owner of the business. In addi- ly all day long. enth place from fourth. Debate will no doubt continue curate measuring system. “There is tion, he said, “They Insiders say the biggest surprise in Those stations say that Arbi- once the official numbers from the going to be an adjustment period,” did buy our existing the October survey is that radio is so tron’s sample panels include too few three-month survey come out in says Jerry Levy, a principal of JL 5 stores, and we are healthy. “It’s reaching a vast audi- members of their communities—a January—and stations start negoti- Media Inc. “And then it will all BEST CELLARS not disclosing that stores in three ence,”says Dennis McGuire,region- view seconded in a letter sent to the ating with Madison Avenue. shake out.” states include amount.” al broadcast director for Carat USA. ratings firm last week by four radio While the meters show a bigger an upper East Best Cellars has Some of the numbers are stag- operators, including Clear Chan- cume for many stations, advertisers COMMENTS? [email protected] Side outlet five stores in three states, including its first store, opened 11 years ago on the Upper East Side.The merchant pioneered the movement to demys- tify wine, selling bottles by such cat- egories as “luscious,” “juicy” and Diddy on the art of 360 deals “big.” The majority of its merchan- dise sells for less than $15 (Crain’s, Aug. 29). record industry’s latest magic bullet. Mr.Combs’focus on building an to do their homework, be selective The supermarket company, Branding vet notes “Right now, everyone just says urban lifestyle empire began more and have a passion for the products called A&P, has 19 stand-alone snags in labels’ plans this brand-building concept out of than a decade ago, even before he they are touting, says Mr. Combs. liquor stores in Connecticut, New their mouths so easily, claiming it’s became a huge name on the music Jersey and Delaware,and another 10 to share in musicians’ revolutionizing the industry,” he scene. Becoming a business stores located within its supermar- overall revenues says. “But it takes a certain type of “He created a movement, and “you have to become and under- kets in those states,according to Mr. superstar who understands at all he’s carried that over into everything stand the business you take on,” he Wesson.Those stores will eventual- times what it takes to be he’s done in the branding space,” says. A towering poster in Times ly be converted to Best Cellars. BY SAMANTHA MARSHALL in the middle of a 360 says Rob Stone, a former colleague Square of Mr. Combs, decked out In New York, grocery stores are situation. This is not of Mr. Combs’ at Arista Records. in clothing from his eponymous not allowed to sell wine and spirits, while the music business con- going to solve the la- He now heads Cornerstone Promo- Sean John line, says it all. so Mr. Wesson will work with A&P tinues its downward spiral, the lat- bels’ problem.” tion, which specializes in leveraging Mr. Combs demonstrates his to develop its beer program. est talk among label executives is re- music to market consumer products. commitment to the products under volving around so-called 360 deals: Brand bonanza “Early on,I made a 360 deal with his umbrella with the latest addi- FreshDirect connection ventures designed to give them a the hip-hop mogul myself,” Mr. Combs says. “What tion to his roster of luxury products: best cellars also has a contract piece of all the revenues that come knows whereof he separates me is that I always Ciroc, a premium vodka that he’s with online grocer FreshDirect to an artist’s way. speaks.He has been had a blueprint to be a lifestyle marketing in partnership with dis- sell wine to the grocer’s customers. Executives say monetizing and so successful at brand. The things people are tributor Diageo. He plans to be Mr. Wesson says that Best Cel- sharing in every aspect of a per- building brands talking about doing now I al- hands-on in developing the liquor’s lars will continue to service former’s career—from recording outside of music that ready did.I always wanted to marketing campaign. FreshDirect’s customers until its and publishing to movies, mer- fashion, fragrances, diversify.” “This is not about me just throw- contract expires in October 2008. chandising and endorsement restaurants, television Building his ing a couple of parties and sticking He won’t rule out extending the deals—could make up for losses in and film production, brands didn’t come Ciroc in a music video,” he says. arrangement. record sales. But critics argue that and now vodka collec- easily. Artists inter- Of course, music still matters to “It’s not a conflict, because A&P the strategy is just another way for tively make up the lion’s ested in exploring Mr. Combs. doesn’t have an equivalent online the majors to take money out of an share of Bad Boy branding and en- “Music is that thing that makes wine and beer business,” he says. artist’s pocket. Worldwide Entertain- dorsement op- [my products] sexy and edgy and Mr. Wesson is less certain about When this reporter sat down for ment Group’s approxi- portunities need gives me that direct connection to the status of his stores, some of a recent interview with Sean “Did- mately $500 million in the consumer,” says Mr. Combs. which might be spun off. “It all de- dy” Combs, one of music’s biggest annual sales. Music ac- DIDDY’S IMAGE “It’s an endorsement of how cool my pends, on how the stores fit in with voices and a leading architect of the counts for just $100 towers over Times brand is.” A&P’s growth plans,” he says concept of artist as brand, he ex- million, according to Square, viewed from pressed a few reservations about the industry estimates. his corner office. COMMENTS? [email protected] COMMENTS? [email protected]

November 19, 2007 | Crain’s New York Business | 3 CNYB 11-19-07 A 4 11/16/2007 8:06 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL A badly mauled Merrill +0.9% faces further traumas The Bloomberg/ Crain’s New numbers are pretty useless at the moment. Merrill still has considerable York Index Respected new boss Estimates for next year’s profits are sure to strengths, notably the industry’s most rose 0.9% to has tough decisions slip. After writing down the value of its productive retail sales force—its 14,000- end the subprime-related se- strong thundering week at on future write-downs curities by a stunning herd. Bank of Ameri- 365. The ➡ $8 billion last month, ca analyst Michael S&P 500 Merrill still has about Hecht estimates the Index rose BY AARON ELSTEIN $21 billion of sub- retail division’s worth 0.4%, prime exposure. at $40 billion. closing at veryone agrees that Mer- Mr. Thain will The rub is that 1459. rill Lynch & Co. made the want to wipe the Merrill now has a total ideal choice in naming John slate clean by taking market capitalization Thain chief executive last all his losses at the of $49 billion. That week. outset, but there are means that investors RISERS EHis long record of success at Goldman limits on how far he are effectively valuing 5-DAY 1-MONTH 3-MONTH CLOSING Sachs, not to mention his stunning can go without doing everything else at the % CHANGE % CHANGE % CHANGE PRICE achievement in transforming the New serious damage. As a firm—including its Sotheby’s +15.5% -29.2% -4.1% $37.84 York Stock Exchange, suggests that the result, some analysts 49% stake in money MBIA +8.7% -41.0% -34.1% $37.49 doctor’s son from Antioch, Ill., will even- are resigned to a manager BlackRock tually cure what ails the world’s largest steady stream of and big investment Saks +7.9% +6.7% +23.8% $20.99 brokerage. painful write-downs banking franchise—at Tiffany +7.6% -13.0% +13.7% $47.27 But now is no time to be buying Mer- throughout 2008. In Market cap $49 billion a bargain basement $8 Lehman Bros. +7.5% +2.9% +14.0% $62.43 rill’s stock. Simply put, the company still the meantime,the Se- Projected 2008 P/E 7 billion. Investors are faces immense mortgage-related losses curities and Exchange Book value per share $39.60 worried about further and a market for investment banking Commission is inves- asset write-downs. SINKERS services that is looking wobbly at best. tigating how Merrill Analysts surveyed 5-DAY 1-MONTH 3-MONTH CLOSING “It’s too early to be excited about Mer- valued its subprime by Reuters Funda- % CHANGE % CHANGE % CHANGE PRICE rill,”says Alan Brochstein,principal at in- portfolio in the first place. mentals forecast Merrill’s 2008 earnings E*Trade -36.2% -56.9% -59.6% $5.48 dependent research firm AB Analytical Merrill also faces the prospect of de- at $6.8 billion on revenue of $36 billion. Martha Stewart -7.9% -20.4% -20.3% $10.48 Services, who is short all big financial clining profits in its investment banking That would be a huge jump over this stocks. “The real earning power of this Avis Budget Group -7.4% -25.2% -21.2% $16.43 unit. Retreating from lucrative bond un- year’s expected earnings of $2.6 billion. firm is absolutely unknown at this point.” derwriting activities could cut the firm’s But such optimism depends on Merrill’s Finlay Enterprises -7.3% -13.4% +13.7% $4.07 Though Merrill’s stock,trading at only net income by $1.4 billion next year, ac- ability to avoid more heavy losses. Jarden -5.6% -16.4% -10.9% $26.80 seven times expected earnings,looks wild- cording to Sanford C. Bernstein & Co. ly attractive by traditional measures, those analyst Brad Hintz. COMMENTS? [email protected] THIS IS OUR MARKET... STOCKS TO WATCH by Erik Ipsen Processing half a billion prescriptions pays handsome dividends for Medco IN TROUBLED TIMES, investors move cash into ultrasafe securities like Treasuries and shares of rock-solid corporations—and boost their intake of stress-reducing drugs. Medco, the nation’s largest pharmacy-benefits manager, wins either way. No wonder its stock hit new records last week and is up 81% this year. Add the recent purchase of a diabetes-testing company and Medco’s projected 2008 P/E ratio of 22 looks fine. Dealing with teens is tough for parents. But it can be murderous for retailers, which is one reason Aéropostale’s record of solid growth has earned the apparel maker a loyal following on Wall Street. It is expected to post a third- quarter profit gain of 15%, following a 123% rise in the previous quarter. Problem is that the company now faces something acting a lot crankier than teens: millions of fretful consumers. The shares rose 12% last week. Admit One, the trusted source for the acquisition and sale of live event tickets for over 20 years… With petroleum at nearly $100 a On the Buy side and Sell side — we offer our clients true market value, secure transactions and dependable service. barrel and demand rising, you would Let Admit One connect you and your clients to the events that matter. think that the business of hauling the stuff over the high seas would be buoyant. But too many shipowners (646) 307-4239 made the same assumption and www.admitone.com poured cash into huge new tankers. email: [email protected] That led to a glut of capacity, falling 1412 Broadway, New York, NY tanker rates, and, lately, a sinking feeling for shareholders of Overseas SPORTS •THEATER •CONCERTS Shipholding Group. Its stock is off 12% in the past month. On the Bloomberg Terminal: Type TIXX or email [email protected] charts: grange paul

4 | Crain’s New York Business | November 19, 2007 Project6 11/12/07 12:03 PM Page 1

Dear Port Authority of New York and New Jersey, Welcome to Stewart International Airport.

P. S. We fly nonstop from Stewart to Orlando, Ft. Lauderdale and West Palm Beach.

©2007 JetBlue Airways CNYB 11-19-07 A 6 11/16/2007 6:18 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

Since September, more than Christians get 5,000 people—including New mass spirituality Yorker photographer Gus Powell— have posted 250,000 images. Mr. merry miller’s 15 minutes of Murabayashi raised $4.2 million fame aren’t quite over.The former to start the service. Learning Annex booker (below) gained notoriety this summer when her disastrous ABC News Wine cellar Now interview with actress Holly gets serious Hunter became a YouTube sensation. She parlayed her media to compete with Union Square moment into a guest-host gig on Wines & Spirits and other trendy the The View last month, sitting- shops that offer endless tasting in for conservative Elisabeth parties, Bacchus Wine Made Hasselbeck. Simple will next week open a Now, Ms. Miller is getting newly finished basement to which religion. On the day before it hopes to attract the city’s most landov Christmas, the former Miss Dallas serious oenophiles. will launch God’s Social Network, The 2,800-square-foot, $1 Rabbis call on a site where ministers will be able million space includes a glass- to post their enclosed tasting room and a industry titans sermons, climate-controlled area with 200 churches can collectible and premium bottles. o, there’s this rabbi connect The once tiny Upper West Side who makes house congregants retailer now stocks more than 800 calls. … That may and believers labels. S can find each “We catered to a small radius sound like the start of a joke, other. of people in our neighborhood,” but in fact, Aish New York, “I wanted a says co-owner Deen Solebo.“Now a Jewish center on the place where we can hold our own with the BUSINESS BREAKFAST FORUM Upper West Side, actually people who Sherry-Lehmanns and Astor sends rabbis to the offices of believe in God Wines & Spirits of the city.” can have their Wall Street titans for regular own

MEET THE NEW STATE COMPTROLLER one-on-one sessions in community,” buck ennis Off-Broadway subjects ranging from says Ms. Miller, who’s signed up goes to market televangelist Paula White. Kabbalah to managing a Backed by private investors, far from broadway’s struggle to Comptroller Thomas DiNapoli will discuss difficult partner—in the God’s Social Network will make settle its strike, off-Broadway is money from advertising and trying to raise its profile and his first year in office and the issues facing Talmudic sense, of course. Matthew Bronfman, books, sermons and music sales. increase audiences.To shine a him including the growing controversy light on its often-overlooked over control of New York’s pension fund. managing director of ACI productions,The League of Off- He will be questioned by Crain’s editor Capital; Bob Hormatz, vice Hobbyists’ shot Broadway Theaters and Producers Greg David and another journalist. chairman of Goldman at photo payday will raise the curtain this year on Sachs; and Neil Cole (above), an event similar to the Great Thomas DiNapoli amateur shutterbugs vying to White Way’s annual “Broadway chairman of Iconix Brand be the next Annie Leibovitz, start on Broadway” concert in Times Group (and brother of posting! PhotoShelter, a Square. Kenneth), are part of the Flickr-like site that lets The casts of a number of DATE: DECEMBER 6, 2007 wannabes sell their images musicals, including Altar Boyz and rapidly expanding tribe.The alongside those of professionals. The Fantasticks, will perform at PLACE: GRAND HYATT HOTEL program grew out of a Debuting on Monday, Nov. 19, this year’s Union Square holiday 42ND ST. AND GRAND CENTRAL TERMINAL business-speaker series at www.photoshelter.com, hopes to market, taking the stage from 4 to Aish and has doubled to 40 gain advantage over established 4:30 p.m. for four Fridays starting TIME: Networking Breakfast 8:00–8:30 a.m. services like Corbis or Getty by Nov. 30.The league will also have Program 8:30–9:30 a.m. pupils in the past two years. giving photographers 70% of a a booth there offering 50% “To study Judaism is sale, versus the 50% the discount coupons for productions. COST TO ATTEND: difficult to fit into your life,” competition pays. “The league is stepping up its says Rob Medway, a partner “The demand for content promotional activity,” says $65 for individual ticket(s) $600 for table(s) of ten is increasing,” says Allen President George Forbes.“We’re if pre-registered by Nov. 29th, if pre-registered by Nov. 29th, at hedge fund Royal Murabayashi, PhotoShelter’s chief trying to take a lesson from $70 thereafter. $700 thereafter. Capital. “This basically executive and a co-founder of Broadway.” He says the timing is HotJobs.com.The staff “weeds coincidental. To register go to crainsnewyork.com, or fax your business card and credit card gives you no excuse.” information to “DiNapoli Breakfast” at 212-210-0499. out terrible photos” and edits Of course, no one asks for images for artistic and commercial Contributors: Lisa Fickenscher, Matthew money—but the program usefulness, he adds. Flamm, Amanda Fung, Miriam Souccar You must be pre-registered to attend these events. All tickets are non-refundable. For more information, call the Events Hotline at 212-210-0739. ain’t cheap. “It is a very expensive proposition to go LAUGH LINKS to someone’s office,” says SPONSORED BY: Rabbi Adam Jacobs, Aish’s WITH THE TELEVISION writers’ strike killing late-night TV managing director. “In some shows, humor junkies jonesing for David Letterman or Jon Stewart jokes can find an outlet for their addiction ways, we are targeting on the Web at http://lateshowwritersonstrike.com/ people who can give healthy and www.youtube.com/watch?v=PzRHlpEmr0w.

donations.” bloomberg news

6 | Crain’s New York Business | November 19, 2007 Project4 11/8/07 3:10 PM Page 1

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Securities firms explore IPOs despite turmoil

Group raised $1.15 billion through balked when KKR filed in July— jumped 13%. Financial Network. “I don’t know if Och-Ziff raises its $32-per-share IPO. But jittery just as the credit crunch was getting Since they debuted Feb.9,shares the slate will ever be truly cleaned of $1.15 billion, but investors weren’t impressed. After a into full swing and buyout firms of Fortress have dropped to $17.12 pessimism,” he says. pop, the stock slid, closing Friday were rapidly falling out of and are now trading 7% be- shares fall; KKR week at $28, off 12.5%. favor. low their IPO share price of Spinoff succeeds seeks to revive deal Not to be left out, private equity $31 $18.50. Similarly, Black- still, it’s not all gloom and doom firm KKR & Co. got its $1.25 bil- Moment of glory INITIAL PRICE stone, which went public at for IPOs. Shares of MSCI Inc., a of Blackstone’s lion IPO back on track by refresh- hedge fund manager IPO; the stock $31 a share on June 22, has spinoff of Morgan Stanley indexes BY CATHERINE TYMKIW ing the offering with updated fi- Fortress Investment Group has fallen 26%, seen its stock tumble 26%, and analytics business, surged 39% nancials. and private equity firm to $23.07 closing at $23.07 on Friday. on their first day of trading last week big losses on Wall Street haven’t Though the report painted a rosy Blackstone Group had brief With three newly public after the company raised $252 mil- deterred securities-related firms picture—a 26% jump in profits—it moments of euphoria when they financial firms barely treading wa- lion in an offering that priced at $18 from trying to cash in on initial pub- accounted for only the first half, went public earlier this year. Both ter,there is no compelling reason for a share. The stock closed at $24.96 lic offerings. which doesn’t include the worst of firms saw their stocks debut to great another one to go public in the cur- on Friday, up 39%. Last week, hedge fund manager the subprime mess. enthusiasm: The price of Fortress’ rent environment, according to Och-Ziff Capital Management Investors and analysts had stock doubled, and Blackstone’s David Menlow, president of IPO COMMENTS? [email protected]

Brothers turned Sanford C. Bern- seem to be stepping up their offen- stein analyst, has been sucked into sive as the crisis deepens and could Attack-dog analysts emerge the brawl.After writing a report say- commit the same error that Henry ing that Wall Street would suffer Blodget and other overly optimistic Continued from Page 1 that Charles Prince re- until firms could get subprime analysts did at the height of dot- In the last week alone, they have CUTTING TO THE CHASE sign as chief executive. mortgages and other toxic securities com dementia: forecasting that the warned that banks face up to $130 “The bottom line off their hands, he found himself trend of the moment will continue billion in subprime-related losses, here is almost all the confronted in his local suburban ad infinitum. that Citigroup might have to sell off investors that I talk Starbucks by a stressed-out senior “The name of the game is getting some assets and that electronic broker with feel like there bank official. noticed, and no one does that by E*Trade is at risk of bankruptcy. needs to be more sig- having views that are in the middle Never mind that those two com- nificant changes in Confrontation in Starbucks of the pack,” says Raphael Soifer, a panies have dismissed the predic- terms of management,” “hey, hintz, you’re wrong!” the former banking analyst at Brown tions.The fact is that in recent weeks Mr. Mayo snapped. banker thundered at Mr. Hintz, Brothers Harriman who is now an these analysts have not only moved Three weeks later, who was enjoying a Sunday out with industry consultant. markets but shaken them—as well Mr. Prince was gone. his 17-year-old son. It is worth noting that one of the as many chief executives—with MICHAEL MAYO BRAD HINTZ Even little-known Citigroup analyst Prashant Bha- earliest and most vocal critics is now forecasts that more often than not “[Prince] said this “We have lost analysts are making tia raised eyebrows among even his changing his tune. have proved prescient. noise.A research report most aggressive peers last week when Dick Bove, a banking analyst at “There are a few banking ana- was the year of confidence in early this month from he warned of a 15% chance that on- Punk Ziegel with about 40 years’ex- lysts saying what needs to be said on no excuses. ... Merrill Lynch’s CIBC World Markets’ line broker E*Trade Financial could perience, is beginning to think that how bad things are getting,” says So what are the risk Meredith Whitney go bust because of losses looming in the worst is over. Last week, he up- Doug Pratt, a portfolio manager at repercussions?” management.” sent Citi’s share value its portfolio of mortgage-related se- graded shares of investment bank Mesa Capital Management. into a one-day, $14 bil- curities. He also saw a “real possibili- Lehman Brothers to “market per- bloomberg news “They’re really causing havoc in landov lion nosedive. She sug- ty” of a run on the bank. form” from “sell.” high places.” gested that the divi- Within hours, E*Trade’s stock Mr. Bove questions not only the last five years. But it is for taking his dend of the nation’s largest bank was had plunged nearly 60%. The com- calls made by some of his rivals but Taking a crusade to the top crusade directly to the top that he in jeopardy and that its capital levels pany could do little but rage. “We their motivation. the sharpest attacks come from earns his highest marks. were so low that it might have to take exception to the sensationalism “A lot of the people talking Michael Mayo of Deutsche Bank, a Mr.Mayo,who as recently as July shed assets. Ms. Whitney, who has based on unfounded speculation,” it tough now are protecting their long-hibernating bear rediscover- had rated Citigroup shares his “top been toiling on Wall Street for 11 said. [posteriors],” he says.“They should ing his claws.Last week,he estimat- pick,” displayed the passion of the years,has said she has received death It remains to be seen whether the have been saying these things ed that banks and brokerages face betrayed during a conference call threats since issuing the report. worst-case scenarios that Ms. months ago.” losses titanic enough to wipe out with the company’s management Even Brad Hintz, the former Whitney,Mr. Bhatia and others en- Wall Street’s pretax earnings of the last month and all but demanded chief financial officer at Lehman vision will come to pass. But they COMMENTS? [email protected]

and nonunion stations. This could ecutive director of WGA East. potentially force out union mem- The union represents writers Labor unrest expands in NYC bers at some stations. only in New York, Los Angeles and Over the two and a half years Chicago, who are “among the most Continued from Page 1 Other job actions against Ara- ment last week that building owners since the last writers’ contract ex- profitable in the CBS universe,”Ms. paign in the city and the nation to mark-run cafeterias could follow. should be prepared for a job action. pired, CBS has stuck to its guns on Toback says. The profits they bring lift the living standards of cafeteria Food service workers at the Fashion “The possibility of a strike always that and other key issues. In a memo in to larger stations helps prop up workers. Food service company Institute of Technology and Citi- exists,” the RAB noted. sent to staff last week,CBS notes that weaker CBS properties in smaller Aramark is the target of a strike by group, whose contracts have ex- Meanwhile, the union points to its final offer awards 3% annual pay markets that are not represented by about 70 Unite Here Local 100 pired,have voted to authorize strikes. soaring rents and low vacancy rates the guild, she says. members who work in Aramark- Hundreds of workers at J.P.Morgan in the Manhattan office market,and Food service The impasse in negotiations with operated cafeterias in New York Chase,the United Nations and oth- says its members should benefit CBS led the union to call for a vote Life’s headquarters and at 55 Water er Manhattan workplaces also face from landlords’ growing revenues. veterans may to authorize a strike.Results are slat- St., the city’s largest office building. expiring contracts. “There is no excuse for holding ed to be released Monday, Nov. 19. “Workers who have been on the back on the real wage increases that take home less Some companies are taking pains job 13 or 14 years at New York Life Pressure to hold the line these hardworking men and women to reach settlements with unions ear- are taking home less than $500 a as the economy slows, employers deserve and need to get by in New than $500 a week ly and avoid strikes. Verizon Com- week,” says Matt Furshong, a re- are feeling more pressure to hang York,” says Mike Fishman, presi- munications’ contract with 55,000 searcher at the union local.“This is a tough in contract talks. dent of SEIU Local 32BJ, which East Coast employees, including company that is trying to hold down “The condition of the economy represents the building cleaners. 10,000 in New York City,doesn’t ex- the wages in the industry, and the looks murkier than it did even six For some employees, such as pire until next August. Still, Verizon workers are trying to raise them up.” months ago,” says James Berg, pres- those working in news broadcasting, asked the Communications Work- The company’s current offer to ident of the Realty Advisory Board the struggle is to not lose ground. increases without retroactivity for ers of America to begin negotiations the union would lift wages by be- on Labor Relations, which is nego- Local radio has been a weak area for employees in TV and network radio, last week. With working-class re- tween 40 cents and 50 cents an hour, tiating with 26,000 office cleaners CBS Corp., as it has lost business to and provides 2% to local radio em- sentment high, and memories of a which Mr. Furshong says is inade- on behalf of 1,000 building owners. Internet companies and other com- ployees “in recognition of more chal- punishing 18-day strike in 2000 still quate. “The workers are looking for RAB officials note that early talks petitors. CBS has pushed for drastic lenging times faced by local radio.” vivid, executives may be right to talk a dignified wage,” he says. on a new contract, scheduled to go concessions from the Writers Guild But demanding lower pay for ra- to the union well ahead of time. Aramark officials declined to into effect Jan. 1, have been cordial. of America, including the right to dio employees unfairly penalizes the comment. However, the group said in a state- combine the workforces of union guild,says Ann Toback,assistant ex- COMMENTS? [email protected]

8 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 9 11/16/2007 2:57 PM Page 1

interest usually trumps other things,” says Mr. Sanders. “It’s not More trials ahead for Gov. Spitzer’s agenda enough for Joe Bruno to say, ‘The governor has failed.’ That’s not Continued from Page 1 height of his power. They include he can still govern, cannot play says the bitterness between Mr. enough of a message to carry 28 years in the Legislature—I’ve passing a new power plant siting hardball. Spitzer and Mr. Bruno should not throughout the year into the very never seen the environment as con- law,ridding schools of junk food and For example, he is likely to settle impede progress. critical elections of 2008.” tentious politically as it is, and obvi- reforming the archaic Wicks Law, for a campaign finance reform pack- Others predict that Mr. Bruno ously that is going to make things which inflates the cost of public age that won’t remove the taint of Not about personalities, says aide will continue to stymie the gover- very difficult,” says Steven Sanders, construction. money from state politics. And to “the governor has always said he nor. a lobbyist and a former assembly- “Those are the easy ones,”says the secure even a weak bill, he may have doesn’t take any of this personally,” “Bruno is convinced that because man from Manhattan. “The issues governor’s communications director, to yield to the Assembly’s desire for Ms. Anderson says.“He works hard of Spitzer’s current lack of credibility, are difficult enough.” Christine Anderson. “There should a legislative pay raise and cave in to at the business at hand and hopes Albany gridlock is at least as likely be Adds Laura Haight, an environ- be no reason other than pure ugly Senate Republicans’ demands as others recognize that there’s a duty blamed on Spitzer as on the Senate,” mental lobbyist with the New York politics that they shouldn’t get done.” well, Albany observers say. they all have to the public,and hopes says one Democratic lobbyist. Public Interest Research Group, But ugly politics are hardly in Some say that even modest com- that that prevails over some of the Even more challenging for Mr. “It’s toxic.” short supply. promises appear to be out of the other, uglier sentiments that have Spitzer than achieving his legisla- Next month will be telling. The Mr. Spitzer and Mr. Bruno no question. prevailed in the last few months.” tive goals will be reforming the state New York Racing Association’s au- longer speak. Even when they were “The Republican senators and Some observers believe that Mr. budget by slashing health care thorization to operate the state’s meeting publicly in the governor’s the governor have no interest in ac- Bruno will soften his stance in order spending and eliminating business- horse-racing franchise expires at conference room six months ago, commodating one another,” Mr. to achieve results that vulnerable tax loopholes. That fight will heat year’s end, and the Legislature is ex- disharmony was evident. “This is Sanders notes. “There’s a fierce at- Republican senators can present to up in February and March. pected to convene in mid-Decem- my room, Joe,” Mr. Spitzer snapped mosphere, and that’s not going to voters next year, when the GOP’s “It’s going to be an uphill battle ber to renew NYRA’s deal or pick when the majority leader tried to evaporate anytime soon.” two-seat majority in the chamber in the Legislature with his entire another operator. The governor bring up the Republicans’ wish list. Mr. Spitzer’s problems with Mr. will be in jeopardy. agenda,” says Ms. Haight. wants to keep NYRA, but Mr. Mr. Spitzer has also irked lawmak- Bruno also have made life difficult “The real personal animus is pal- Bruno has other ideas. ers by announcing policies without for government relations profes- pable, but in Albany, political self- COMMENTS? [email protected] “They’re going to resolve it, be- consulting them. sionals. cause they have to resolve it,” says “Everybody—and it doesn’t political strategist Hank Sheinkopf, Grants for Republican senators matter if you’re a public interest lob- who represents one of NYRA’s now that the governor’s public byist or a business lobbyist—is competitors. approval rating has fallen below somewhat baffled about how we Unlike the horse-racing matter, 50%, Mr. Bruno is positioned to move forward in this climate,” says the governor’s legislative goals lack grab state grants for his members’ Ms. Haight. “We’re all crossing our the pressure of a deadline and will be districts and cut property taxes for fingers and hoping the relationship harder to achieve now than in the senior citizens. Mr. Spitzer, needing improves.” spring, when Mr. Spitzer was at the achievements to demonstrate that The governor’s spokeswoman Rent hikes hit swanky offices

Continued from Page 2 firms—to explore less costly op- tions. “Companies need to look outside the box,” says David Goldstein, ex- ecutive managing director of bro- kerage Studley. Hunger That’s not easy, though. Some tenants worry that a less lofty perch might turn off clients. Others say that finding an affordable, suitable office in a midmarket building is

tough because supply is limited and grange paul rents in those properties have also Obliterated. risen significantly. Brokers are eager to see if ad headquarters in high-end space on Nearly two-thirds of Manhat- agency WPP, now in a Class A of- Fifth Avenue—thanks to the con- tan’s office space is in top-end build- fice on Eighth Avenue.,will decamp nections of founder and Chief Ex- WHAT’S YOUR VISION FOR THE FUTURE? ings, which leaves few moderate to a Class B building at 636 11th ecutive Richard Kahn—but needed choices. Ave., as some have suggested. Such to move. a move would be particularly signif- The group wanted to stay in the Range of amenities icant because 11th Avenue is off the Grand Central vicinity so that em- manhattan buildings are divided beaten office track. ployees could easily get to client Set your vision in motion today at into three main categories: A, B and In an effort to make Class B of- schools,Mr.Kahn says.But even the Tel Aviv University, Israel’s leading C. Class A products are generally fices more desirable, some landlords area’s Class B rents of about $52 a new, large, well-located and loaded are upgrading their facilities and square foot were prohibitive. Two institution of higher learning. with such amenities as 24-hour se- amenities months ago, the group moved to 90 curity. Class B buildings are older, For example, Trinity Church is Broad St., where asking rent is $43 Give a gifted biology student a scholarship. smaller and provide fewer services. transforming its holdings in Hud- a square foot. Underwrite a new chemistry lab. Class C offers no frills. son Square, which formally housed Sponsor a pioneering research program. Because the definitions are printing operations, into attractive Apologizing for luxury somewhat subjective, brokers don’t spaces desired by creative tenants. mr. kahn says he is pleased with Your vision can have a powerful impact on our future. necessarily agree on a building’s cat- MTV will move to 345 Hudson St. the new space: It was recently re- Explore the possibilities. Let us help. egory. What one broker considers next year, and some argue that the done,is affordable and close to pub- Class A because of location and de- renovation will produce Class A- lic transportation.He concedes that Call Roni Krinsky at 212.742.9070, ext. 77 sign, another might deem Class B level amenities. The space isn’t he often found himself apologizing or [email protected] on the basis of lackluster manage- cheap—Trinity’s rents range from for Urban Assembly’s former luxu- ment. Still, Class B rents average the high $40s to low $50s a square rious digs and explaining to visitors $47.70 a square foot in Manhattan, foot. that the group wasn’t paying market almost $28 less than the top tier, ac- That’s still out of reach for some. rent. cording to Cushman & Wakefield Suzanne Sunshine,head of the non- Others,however,desire the pres- Inc. The difference was just $16.83 profit practice at CB Richard Ellis, tige that accompanies an impressive a square foot a year ago. says her clients can only afford $40 address. His company’s image may Tenants that have had Class A to $45 a square foot, so confine suffer when it vacates Park Avenue, space and recently signed leases for themselves to looking at Class B and but Mr. Elman says the cost savings Class B include Renfro Corp., Har- C space. now outweigh that concern. E X P A N D I N G T H E F U T U R E www.aftau.org ry Fox Agency Inc. and Viacom’s Urban Assembly, a nonprofit MTV division. that manages public schools, had its COMMENTS? [email protected]

November 19, 2007 | Crain’s New York Business | 9 CNYB 11-19-07 A 10 11/16/2007 12:29 PM Page 1

VIEWPOINT Another tough choice for guv editor in chief Rance Crain publisher Jill R. Kaplan ere’s a fact that should worry Gov. surcharge on anyone making at least $500,000, a politically EDITORIAL Eliot Spitzer: In an effort to oppose attractive idea that many legislators may find hard to resist. editor Greg David deputy managing editors Valerie Block, any reductions in state health care It’s unclear what game Mr. Francis is playing. Given his Erik Ipsen assistant managing editor spending, health care workers union boss’s repeated pledge not to raise taxes, the director knows Robert Hordt 1199 SEIU has increased the size of its that the state can’t contributing editor–reports Elizabeth MacBride war chest to $20 million, twice the increase spending at columnist Alair Townsend amount that it needed to bloody the twice the rate of senior reporters Aaron Elstein, Lisa Fickenscher, Matthew Flamm, governor when he tried to rein in spending this year. revenues. Either the Tom Fredrickson, Samantha Marshall, Last week, the governor abandoned his unpopular plan to governor will have to Anne Michaud, Miriam Kreinin Souccar H reporters Theresa Agovino, Barbara Benson, offer driver’s licenses to illegal immigrants, saying that he change his thinking on Elisabeth Butler Cordova, Erik Engquist, Amanda Fung, Hilary Potkewitz, Gale Scott needed to focus on his agenda.The biggest problem Mr. spending hikes or restaurant critic Bob Lape Spitzer faces is that his priorities are likely to be abandon his tax pledge. art director Steven Krupinski deputy art directors Carolyn McClain, overwhelmed by the sudden shift in the state’s budget Politically, Mr. Daniel Mednick staff photographer Buck Ennis projections. Spitzer is in a tight copy desk chief Wendy Zuckerman Actually, there are many warning signs that should spot. His missteps have copy editors Michele Arboit, Thaddeus Rutkowski concern the governor: cost him valuable public research editor Denise Southwood associate research editor Earlier this month, the state Division of the Budget support and put him in Adrianne Pasquarelli predicted that the deficit for the fiscal year beginning April 1 a poor position to take www.crainsnewyork.com online editor Catherine Tymkiw bloomberg news would jump to $4.3 billion. State Comptroller Thomas on the health care online reporter Kira Bindrim DiNapoli, who concurs with that figure, recently noted that workers union again. EDITORIAL AND ADVERTISING OFFICES a fifth of all state revenues come from Wall Street. With He is in a poor Education spending, 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 bonuses in the financial service sector being pared back and position to cut another huge part of advertising: 212.210.0259 profits plunging, the only possible conclusion is that the the budget, will be Cable craincom nyk health or school Fax 212.210.0499 projected deficit is likely to rise in the coming months. difficult to cut, as it is Entire contents ©copyright 2007 Crain Communications Inc. All rights reserved. As a result of Mr. Spitzer’s initiatives and the Legislature’s expenditures one of his top priorities. ®CityBusiness is a registered trademark of MCP reckless spending, the budget is on a steep escalator. At a It’s also a sacred cow on Inc., used under license agreement. TO SUBSCRIBE: recent conference, Budget Director Paul Francis indicated Long Island, where he Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. that next year’s budget would increase 10%—putting the hopes to oust www.crainsnewyork.com total north of $130 billion—but that revenues would grow Republican senators to ADVERTISING AND MARKETING only 5%. He suggested that the administration is willing to win control of the Senate. At the same time, he says he is advertising director Jeff Adler business development manager spend another $1.3 billion for school aid and $1.6 billion on committed to fiscal responsibility. Robert N. Grossman Medicaid as more people enrolled in the program. Mr. Spitzer won election as governor because he promised senior account manager William E. Squitieri Some of Mr. Spitzer’s most loyal supporters are agitating to make the tough choices, no matter what the politics. His account executives for a tax increase.The Working Families Party wants a pledge will be put to the test next year. Andrew Carlin, Lisa Pearly, Jennifer Siniscalchi western account manager Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified print & online John Gallagher newsletter product manager Catherine Evans Gittens LETTERS TO THE EDITOR sales coordinator, print & online Lulé Haznedari sales coordinator Anita Perrino credit Pat Grondziak 313.446.6082 marketing director Amy Crossman marketing manager Jill H. Bottomley marketing coordinator Jenny Mashberg It takes a village of teachers Andrea Richardson circulation manager assistant circulation manager Rosalie Ford GROUP BONUSES, NOT with a great third-grade teacher never recognized the value of SINGLE MERIT PAY general manager, interactive might not show up until the child teacher collaboration.The new Marc Minardo alair townsend’s Nov. 5 is in the fourth grade. plan promises to become a technical producer Danny Porter column, “Teacher merit pay faces That’s why group bonuses are national model that can be NEW YORK PRODUCTION tough test,” incorrectly assumes more appropriate than individual embraced by everyone. production and pre-press director that deciding who the best merit pay. Spreading the bonuses robert e. riccobono Michael Corsi teachers are is a no-brainer. It’s around—while perhaps appearing advertising production manager actually not so easy. to dilute the impact of the WRITE TO US Marilyn DeMilta Often, teachers with the best recognition—is the only practical Letters to the Editor: Crain’s New York Business, PUBLISHED BY CRAIN COMMUNICATIONS INC. reputations do not show way to reward teachers. 711 Third Ave., New York, NY 10017. Fax letters to chairman Keith E. Crain measurable student performance In 1998, when I was (212) 210-0799. Send e-mail to Crain’s staffers president Rance Crain increases in a given year. Kids superintendent of District 19, by using their first initial, their last name and secretary Merrilee Crain @Crain.com. For example, Editor Greg David is at treasurer Mary Kay Crain learn in spurts. Skills sometimes Brooklyn, a merit pay plan [email protected]. Names are in the list to the executive vp, operations William Morrow just kick in. focusing on principals was tried. right. All letters are subject to publication, senior vp, group publisher Gloria Scoby A great learning experience The approach failed because it provided they are signed. group vp, technology, circulation, john h.john howard manufacturing Robert C. Adams vice president/production & manufacturing David Kamis chief information officer Paul Dalpiaz WHAT’S COMING UP IN CRAIN’S? corporate circulation director Patrick Sheposh

Privately Real Small Corporate Book Economic founder G.D. Crain Jr. (1885-1973) held estate business philanthropy of outlook chairman Mrs. G.D. Crain Jr. (1911-1996) companies report report report Lists issue Nov. 26 Dec. 3 Dec. 10 Dec. 17 Dec. 31 Jan. 7

10 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 11 11/15/2007 7:53 PM Page 1

ful. I would tuck away money to fund upcoming labor settlements, only to have all the hidden pockets revealed in staff reports as part of the board’s assessment of risk. But on balance, the board was a strong ally for prudence. The board now has a statutory life through 2032. However, its au- thority to impose control periods will lapse next year. After that, if the city runs an operating deficit of more than $100 million or fails to make timely debt service payments, the board will be able only to note the fact. The board will have no money for its staff. In addition, the city’s sales tax will fall back to 3% from 4%, with a resulting loss of $1.2 billion in revenues annually. No one wants to lose the $1.2 bil- lion, and the mayor will surely call for the renewal of the higher sales- tax provision. But many observers

john h. howard john believe that the city should claim victory and declare the control- board era over. They cite the revisions to the City Charter in 2005, which incor- porated many of the fiscal practices Keep NYC in belt mandated by the Financial Emer- gency Act.They note the many oth- er monitors of the city’s finances,in- and suspenders cluding the Independent Budget Office, the city and state comptrol- lers, and civic groups such as the once gave the director of the Financial Control Citizens Budget Commission. Board, which oversees the city’s finances, an unattrac- They say there are better uses for the several million dollars that fund the tive cactus for Christmas. The gift was a humorous board. And some say the city should gesture, but it reflected the prickly relationship be- opt for full home rule. Even a key tween the state board and the city,which I then served rating-agency official wonders if it as budget director. isn’t time to “take off the training I wheels.” The board was the centerpiece of state legislation passed in Ironically, perhaps, Budget Di- rector Mark Page—on behalf of ROCKEFELLER CENTER 1975 to save New York cessing public credit Mayor Mike Bloomberg—recent- City from bankrupt- markets—the board’s ly urged the state to extend the is pleased to announce the lease extension of cy.The Financial Emer- powers were reduced to board’s full power to impose control gency Act gave the board reviewing the city’s periods. extraordinary power plans,in order to ensure Mr. Page says that the accounta- Bessemer Trust Company, N.A over the city’s finances. compliance with the bility provides a valuable check. During its early Financial Emergency Having been at the budget office and “control period,” the Act. since 1978, he has experienced the Bessemer Securities Corporation board had the power to I was budget direc- volatility in the city’s revenues first- approve or disapprove tor during part of the hand, seeing years of double-digit at 630 Fifth Avenue the city’s four-year fi- control period. I alter- growth and years of virtually no nancial plans, as well as ALAIR nated between chafing growth. Perhaps he’s looking ahead most contracts and all TOWNSEND at having someone toward what may be a tough period borrowing. In 1987, looking over my shoul- of retrenchment. after the city met specif- der, and finding the All things considered, I’m happy represented by ic hurdles—including balancing the strictures valuable in moderating to keep the belt and the suspenders, Donald A. DiRenzo, Jr. of budget for several years and fully ac- spending.They weren’t always help- too. Cushman & Wakefield, Inc.

CRAIN’S ONLINE POLL DO YOU AGREE WITH RUPERT MURDOCH’S PLAN TO MAKE THE WALL STREET JOURNAL’S WEB SITE FREE? Yes, but the for leasing information, please contact: MOST OF THE 250 respondents think newspaper Peter Brindley - Theodore Koltis - Todd Silverman will lose more that making WSJ.com free will boost the subscribers 212.715.0300 site’s visitors and online ad revenue. Only Yes, online ad 15%. and revenue will advertisers 15% think the move will cut into the offset the loss .73% 12%. No, the online number of print subscribers and of paid strategy won’t advertisers. But 12% of participants say subscribers generate enough ad that the approach will fail to attract revenue enough online advertisers to be effective.

For this week’s question: Go to www.crainsnewyork.com/poll to have your say. BerlinBostonBuenosAiresChicagoFrankfurtLondonLosAngelesMadrid MilwaukeeNewYorkNorthernVirginiaParisPhiladelphiaSanFrancisco SaoPauloSeattleSiliconValleySydneyWashingtonDCBerlinBoston CNYB 11-19-07 A 12 11/16/2007 2:06 PM Page 1

The state faces a budget deficit of $4.3 billion for the fiscal year beginning April 1. DOCUMENT DRAMA Scorecard THE INSIDER GOV. ELIOT SPITZER’S proposal to let illegal Mayor to push aliens obtain driver’s licenses, which was by Erik Engquist and Anne Michaud introduced Sept. 21, revised Oct. 27 and bicycle bill withdrawn last week, leaves a trail of insiders say the Bloomberg celebrants and sufferers in its wake: administration is preparing to push for a bill to allow bicycles to park in WINNERS Friends, enemies besiege Spitzer G commercial buildings. It would be Vulnerable Democrats running for re-election in 2008, particularly Rep. Kirsten Gillibrand, who will not have to choose between defending the nemies and friends of Gov. Eliot introduced in cooperation with Council Speaker Christine Quinn, unpopular plan and breaking with the governor. Spitzer are preparing to test two of his perhaps within the next month. G The county clerks who said they would refuse to issue licenses to bedrock pledges: to reduce health Councilman David Yassky people here illegally and ultimately got their way without an ugly legal battle. E G Labor unions, which won’t have to decide whether to support Mr. care spending and not raise taxes. introduced such a bill two years Hospital workers union 1199 SEIU, led ago, but it was opposed by building Spitzer or immigrants’ rights organizations. owners and went nowhere. But as a G TV commentator Lou Dobbs, whose relentless on-air criticism made by President George Gresham (right), is mayoral priority, the new bill is the plan a national issue. doubling its war chest to $20 million to expected to move quickly. G Chung-Wha Hong, executive director of the New York Immigration cover an advertising campaign if Currently, building owners can Coalition, whose profile soared when she was quoted in at least 50 expenditures on health care are ban bicycles, even if tenants want newspaper articles over the saga’s 55 days—more than she had been quoted them. in the preceding seven months. threatened. “With the soft economy, we’re anticipating that we’ll need to LOSERS be ready to protect our members,” an Shake-up in G Mr. Spitzer, who burned bridges with immigrant groups, Latino 1199 source says.The union’s mayor’s D.C. office legislators and liberals, and provided a soapbox for his GOP detractors. G The Bush administration, which briefly found in New York the first big campaign against the governor last the bloomberg administration’s state willing to implement its nearly defunct Real ID federal licensing law. year damaged his ratings and Washington lobbying staff is being G Senate Republicans, especially those in Queens and on Long Island, forced a compromise on health care reshuffled to emphasize press who helped rout the plan but have now lost it as a rallying point for their 2008 relations.The shift is increasing budget cuts. election campaigns. buck ennis speculation that the mayor will run G Sen. Hillary Clinton, who was ridiculed for seeming to argue both for for president. and against the proposal. The Working Families Party, $500,000 in income. Judith Chesser, the former office one of Mr. Spitzer’s most fervent WFP Executive Director Dan director and a longtime D.C. supporters last year, will make a big Cantor says the state’s last income tax lobbyist, left to take another job. push in 2008 to raise state income surcharge, which expired two years Her deputy, William Daly, has been appears to have a press background. taxes on the wealthy.The proposal ago, raised $2 billion annually and promoted, and the mayor hired She was most recently Coney Island plan calls for a 0.4% income tax was barely noticed by payers. He Lindsay Ellenbogen to fill the deputy communications director for lacks support surcharge on New Yorkers who earn scoffs at the notion that a new tax position. A mayoral spokesman Louisiana Sen. Mary Landrieu. at least $500,000 a year.The 0.4% would inspire the rich to leave the says that Ms. Ellenbogen will mayor michael bloomberg’s surcharge would raise $3.9 billion state. “They like their penthouses,” handle both press and government Coney Island redevelopment plan annually and would be marketed as Mr. Cantor says. “They’re not relations, and that the deputy has Closely watched (below) faces opposition from city giving up one day’s pay for every moving anywhere.” always filled that dual role. But she holiday trains and state lawmakers, sources say. Insiders were shocked when the transit advocates say that mayor announced the plan earlier Amtrak does not add trains on its this month without securing busier New York lines for support from Assemblyman Alec Thanksgiving week, as it does for Brook-Krasny, state Sen. Diane Savino its Northeast Corridor and other and City Councilman Domenic routes.The result is a pronounced Recchia. shortage of seats, especially from The mayor wants to rebuild the Discover the benefits New York City to Albany. amusement district and create two of hosting your next Empire Corridor trains for Nov. adjacent areas with housing and 21 and 25 were fully booked nearly retail. He needs the City Council business gathering with us four weeks in advance—faster than to rezone the site and the those in any other Amtrak corridor, Legislature to make it parkland. advocates say. An Amtrak But local officials believe Mr. spokesman says the sellout is not Bloomberg’s vision unfairly freezes unusual and that the railroad’s Web out developer Joseph Sitt, whose site warns holiday travelers to book $120 million investment and well ahead. grandiose proposal revived interest in the area. Mr. Bloomberg’s plan also Crisis brewing rankles longtime stakeholders who on the West Side saying that the future of West Side development is in doubt, Assemblyman Richard Brodsky has scheduled a Dec. 5 hearing 532 newly renovated guest rooms and suites, 20,000 square feet of meeting space, and a including many of the major dedicated banquet staff players: state development Co- chair Patrick Foye, Deputy Mayor Daniel Doctoroff and Metropolitan Transportation Authority Chief Elliot “Lee” Sander. nurtured Coney through the down Mr. Brodsky says the Pataki times. For example, Gargiulo’s administration’s underestimate of restaurant wants to build a catering the cost to rebuild and expand the hall, but proposed elements would Javits Center is far more extensive block its ocean view. than is publicly known.The No. 7 Mr. Sitt and the other subway line extension is also not opponents might try to stymie the 49 West 32nd Street, New York, NY 10001 fully funded. blueprint until a new mayor takes Tel (212) 277-2647 www.radisson.com/martinique “The whole question as to how office in 2010. But elected officials we develop the West Side is up for say the administration is willing to grabs,” says Mr. Brodsky. negotiate. I

12 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 13 11/15/2007 8:46 PM Page 1

Altria building: Deals are getting done

The 643,000-square-foot build- selling because it is moving its head- tempered by the belief that office Observers buoyed ing,between East 41st and East 42nd quarters to Richmond,Va.The pur- rents will stop growing at the dra- by sale price streets, is among the high-profile chaser is a subsidiary of Global matic rates seen over the past couple properties that observers have been Holdings Inc., a private real estate of years. The fact that about 90,000 of cigarette maker’s watching as they seek clues to the company that is part of investor Eyal square feet of the building is under- market’s direction now that financ- Ofer’s family interests. Brokerage ground may have constrained the headquarters ing has become more expensive. CB Richard Ellis represented Altria. offering prices as well. “[The sale] says, ‘What credit Mr. Hanlon says it is likely that On the other hand, Mr. Hanlon BY THERESA AGOVINO crunch?’ ” says Patrick Hanlon, a the building would have fetched a points out, the building gives the principal at advisory firm Ackman- higher price before the credit crisis, purchaser a tremendous oppor- ALTRIA GROUP’S the sale of Altria Group Inc.’s Ziff Real Estate Group. “Given the since there probably would have tunity. When Altria leaves the Park Avenue Park Avenue headquarters for $525 debt market,that sale price is a good been more bidders. He notes that tower in early 2008, the property headquarters. million, or $816 a square foot, is a number.” tighter lending practices have limit- will be essentially vacant. That sign that the commercial real estate Sources say there were 10 bids for ed the number of parties that can af- means the new owner will have a in short supply in Manhattan. market in Manhattan remains strong 120 Park Ave., which Altria, owner ford very expensive properties. very large contiguous block of space despite the credit crunch. of cigarette maker Philip Morris, is He also says that bids were likely to offer tenants,and such parcels are COMMENTS? [email protected] Gore firm ADVERTISEMENT finds bit of green in NYC Former VP’s office in energy-efficient midtown tower

BY THERESA AGOVINO

former vice president Al Gore’s investment firm reached an agree- UNLOCKING NEW YORK’S HIDDEN ASSETS ment to lease a 5,000-square-foot office on the 48th floor of 1 Bryant Park, a building being constructed By Barbara Chang, Chief Executive Ofcer, NPower by The Durst Organization. If New York is to continue attracting ment, and culminates in employment opportunities in all sec- Crain’s New York Business report- ed in September that Mr. Gore’s and retaining high-tech industries, tors. Exposure to the nonpro.t sector early and often during Generation Investment Manage- something has to change. The city their training helps graduates not only launch a career in tech- ment was looking for space that today simply does not have enough nology but also become good citizens and neighbors who, in meets high standards for energy ef- workers with the skills demanded by turn, help disadvantaged youth. It comes full circle at TSC. ficiency and environmental friend- companies that could help widen Sili- Today, more than 200 students have graduated from liness. Durst is hoping that the U.S. con Alley into a boulevard. We face a TSC’s rigorous 16-week training programs in lower Manhattan Green Building Council will award talent shortage at all points along the and Brooklyn. The program is now expanding to serve more its completed building a platinum certification, the top level available. continuum of information technology than 100 students a year. More than 80 percent of students Asking rents in the tower, which (IT) skills, from computer scientists and engineers to network successfully graduate and .nd work in IT jobs that pay a de- is slated to open in May, are around support technicians and people to provide help-desk services. cent living wage, even by New York standards. And with TSC $185 per square foot, according to Graduating more scientists and engineers is a long-term training under their belt, a growing number of graduates are brokers. education challenge for our nation. But the demand for IT con.dent enough to take the Microsoft Certi.ed Professional Generation Investment is based workers can also be addressed by tapping a city resource exam, a credential that is considered the gold standard in IT in London. Its U.S. operations are now located in Washington, D.C.; that is plentiful yet woefully ignored – our city’s disconnected employment and career advancement. that office will be shuttered upon youth. Out of school, unemployed or working near minimum TSC’s success is due to generous support from forward- the move into New York. wage, these young people are technologically )uent and have thinking companies. Among them is Microsoft, which fuels Mr. Gore won the Nobel Peace the potential to excel in an IT career. They just lack formal TSC through Unlimited Potential grants and the volunteer Prize last month for raising aware- training. efforts of many Microsoft employees who tutor students and ness of the dangers of global warm- Closing this talent gap--while doing social good--is a goal offer professional guidance. ing. He brought environmental is- of NPower NY, part of a national network of nonpro.t orga- Our experience has reminded us what a tremendous sues to the forefront with his documentary An Inconvenient Truth nizations that help thousands of other nonpro.ts to expand asset the city’s young people truly can be. We’ve learned that and book by the same name.The film their impact through the strategic use of technology. In 2002, technology can be a wonderful tool for realizing their poten- won the Oscar for best documentary NPower NY launched the Technology Service Corps (TSC), tial—and for realizing a brighter future for all New York. feature earlier this year. Mr. Gore which offers IT training to marginalized young people who can also received an Emmy in Septem- help meet the growing demand for IT talent in the city. ber for Current TV,a cable network What’s most innovative about TSC is the public/private/ Young people may hold the key to he launched with a partner in 2005. the city’s future as a hub for high tech In addition, Silicon Valley ven- nonpro.t partnership that starts with NPower NY’s training, ture capital firm Kleiner Perkins continues with student internships in nonpro.ts and govern- Caufield & Byers announced last week that Mr. Gore will become a partner, and that it will collaborate Learn more at microsoft.com/issues with Generation Investment to fund and nurture green businesses. © 2007 Microsoft Corporation COMMENTS? [email protected]

November 19, 2007 | Crain’s New York Business | 13 CNYB 11-19-07 A 14 11/16/2007 3:00 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

ECONOMIC SPOTLIGHT Changing of Wall Street’s top ranks NYSE EURONEXT President DUNCAN NIEDERAUER (left) will succeed JOHN THAIN (right) as chief executive of the exchange on Dec. 1, when Mr. Thain joins MERRILL LYNCH as its new CEO. Mr. Thain, known for his deal- making expertise, is credited with overhauling NYSE’s trading system and orchestrating the NYSE-Euronext merger. Mr. Niederauer, who helped form Archipelago Holdings, is expected to stay on the acquisitive course set by Mr. Thain, with an eye toward buying a derivatives exchange. getty images bloomberg news Green learning Murdoch plans fourth quarter. … Bear Stearns Economy Watch Cos. said it would write down a the city plans to build its first free Journal site lower-than-expected $1.2 billion NY area prices edged up in October. The city’s jobless rate also rose—climb- green school in Battery Park City, in the fourth quarter related to its ing 1 percentage point above the year-earlier level—while the U.S. held steady. slated for completion in 2010.The news corp. Chairman Rupert credit portfolio. SEPTEMBER ’07 OCTOBER ’07 COMPARISON school, to serve 950 elementary Murdoch plans to make access to 1 and middle-school students, will The Wall Street Journal’s Web site NY area inflation change 0.0% +0.1% +3.1% use energy-efficient lighting, free, in an effort to ramp up the Specialists NYC unemployment rate 5.1% 5.3% 4.7%2 insulation, solar panels, boilers and number of visitors and boost dwindle OCTOBER JOB TOTAL 3 12-MONTH CHANGE plumbing. online ad revenue.The site NYC employment 3,753,200 +57,000 currently has around 1 million van der moolen holdings is paying subscribers and generates closing its VDM Specialists USA 1-Inflation rate for the latest 12-month period. 2-U.S. unemployment rate. 3-End-month figure, FAO Schwarz not seasonally adjusted. $50 million to $70 million in user unit, leaving only five specialist dresses up fees each year. firms remaining at the New York NYC Hotel Stats Broadway Stats Stock Exchange. Specialist firms fao schwarz acquired children’s have struggled in the face of The average daily room rate Broadway took a hit in the week end- luxury clothing brand Best & Co. IBM buys increased regulatory scrutiny and jumped while occupancy slipped in ed 11/11 as the strike began. Atten- FAO plans to sell its own toys in declining market share. September, PKF Consulting data dance fell to levels last seen in Sept. software firm show. The averages for the first nine ’06; gross hit its lowest point since international Business Tyco verdict upheld months were $276.58 and 86.1%, Sept. ’05, The League of American Machines Corp. said it will buy topping year-earlier levels. Theatres and Producers says. Canadian software firm Cognos a new york appeals court upheld Inc. for $4.9 billion to compete the convictions of former Tyco with Oracle and SAP AG. International Chief Executive Cognos uses business intelligence Dennis Kozlowski and former software to help track corporate Chief Financial Officer Mark performance. Swartz, who together stole about FAO SCHWARZ will sell toys at Best & Co. $137 million from the firm. Messrs. Kozlowski and Swartz Shareholders have been in prison for more than Best & Co.’s flagship Connecticut get Sirius two years after being sentenced to store and through the clothier’s 8 1/3 to 25 years. catalog. shareholders of Sirius Satellite Radio Inc. approved the company’s Citi shake-up $5 billion acquisition of rival XM Law firm merger Satellite Holdings Inc.The merger, breaks down Capital IQ’s Weekly Deals Report citigroup inc. said it would however, is far from a done deal. It reorganize its investment banking still needs clearance from two merger talks between TRANSACTION SIZE unit, combining its equity and tough regulators—the Department Chadbourne & Parke and COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE fixed-income businesses and of Justice and the Federal London-based Watson Farley & Gramercy Capital Corp. $100.0 Not disclosed GCI reshuffling the co-heads of its Communications Commission. Williams fell apart after 11 Manhattan credit markets unit.The move months. Horizon Wimba Inc. $8.4 Ascend Venture Group GCI follows the resignation of Citi Manhattan Chief Executive Charles Prince on Finance firms Papal visit Takkle Inc. $7.0 Liberty Associated Partners, GCI Nov. 4. look ahead Manhattan Greycroft Partners, WMG Investments pope benedict xvi (left) will Iptivia Inc. $6.5 Paladin Capital Group, OmniCapital Group GCI goldman sachs group visit Manhattan during his first Manhattan AOL acquires Inc. Chief Executive trip to the United States Plastinum Polymer $1.8 Not disclosed GCI Lloyd Blankfein told April 15 to 20.The pope Technologies Corp. ad service Manhattan an investor will stop at Ground Quigo n/a AOL SB M&A aol acquired social-search conference that Zero, celebrate a mass Manhattan service Yedda Inc. for an he doesn’t expect at Yankee Stadium and Clipmarks n/a Forbes Media SB M&A undisclosed sum, marking its fifth the bank, which speak at the United Manhattan acquisition this year. Yedda, based recorded $1.48 Nations. Selected deals announced during the week of Nov. 4 for companies headquartered in metro New in Manhattan, matches user billion in charges for —from staff York. n/a Not available. GCI: Growth capital investment represents new money invested in a com- questions to related topics online the third quarter, to reports and pany for a minority stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without the participation of a financial buyer. and will become part of AOL’s report a major bloomberg news

paul grange paul Platform A advertising arm. subprime loss in the reports bloomberg news 14 | Crain’s New York Business | November 19, 2007 Project6 10/16/07 3:58 PM Page 1

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REAL ESTATE DEALS

upwardly mobile audience who’s moving into the area.” ASPCA’s new lease is cat’s meow Ms. Jihee plans to roll out as many as 10 locations across the country in the next two years. The dogs on the premises,but canine ap- Madison Avenue shop is slated to Finds animal-friendly pearances will be more limited. open in January.The asking rent was space on Eighth Pooches may show up for special $160 per square foot. events or when an employee runs Another Winick Realty broker, Ave.; Korean beauty into a pet-care emergency. Young Byunn, negotiated on behalf salon always open The nonprofit’s administrative of Hair Party 24hr and represents offices are currently housed in the company exclusively. enants often have un- roughly 15,000 square feet at 110 —elisabeth butler cordova usual demands.Take the Fifth Ave., between West 16th and American Society for West 17th streets. Pets aren’t al- the Prevention of Cruel- lowed at that site. SurroundArt ty to Animals, for exam- The nonprofit decided to seek a spreads out Tple.When it set out to find a new lo- new location because it wanted cation for its administrative offices, more space and the renewal prices surroundart is more than dou- it wanted a space where animals were too high. SURROUNDART, an art services provider, is expanding its space in the Brooklyn Navy Yard. bling its space at the Brooklyn Navy would be as welcome as people. “It is always challenging to work Yard, where it will occupy a total of The ASPCA found the space it for a nonprofit,”says Pamela Title,a 167,000 square feet. was looking for at 520 Eighth Ave.,be- broker at Murray Hill Properties, gan about 10 years ago. erate at 76 Madison Ave., at East 28th The company, which provides tween West 36th and West 37th which represented the ASPCA. “It —theresa agovino Street, 24 hours a day, 365 days a services to the art community,such as streets, where it recently signed a is challenging to find a building year. storage, packing and transportation, 15-year lease for 35,000 square feet. with an attractive appearance at a Hair Party 24hr will cater to signed a 20-year lease for 96,000 “It was a priority for us to get an- reasonable price.” 24/7 hair salon young clients who might want to square feet in two buildings.Rent for imal-friendly space, but we knew, The asking rent at the agency’s comes to Big Apple stop in for a late-night makeover be- the new space starts at $20 a square depending on the cost of the space, new location, where it will occupy fore heading to the city’s dance foot, says Andrew Kimball, chief ex- it would be a challenge,” says the entire seventh floor, is $42 a the city that never sleeps is about clubs. Founder Kim Jihee already ecutive of the Brooklyn Navy Yard. Stephen Musso,executive vice pres- square foot, according to Eric Gur- to get one more reason to stay operates a chain of successful loca- SurroundArt signed a lease for ident and chief of operations at the al, a broker at Newmark Knight awake. tions in Asia and signed a 10-year 8,000 square feet at the yard four ASPCA. Frank, which represented the land- Seoul, Korea-based Hair Party lease for the Madison Avenue store. years ago and has been expanding Mr. Musso says that cats too lord, sister company Newmark 24hr has leased a 2,200-square-foot “This tenant was the right fit for ever since. It now occupies a total of traumatized to be housed at the AS- Holdings.He says the ASPCA lease location near Madison Square Park the space,” says Lori Shabtai, the 71,000 square feet in the industrial PCA’s shelter in its headquarters at marks the end of the transformation for its first U.S.beauty salon.Known Winick Realty Group broker who complex. 424 E. 92nd St. will be cared for at to an office building from a manu- for its wild colors and fashion-for- represented building owner Cen- The firm’s additional space will the new site. The lease also allows facturing facility, a process that be- ward styles,Hair Party 24hr will op- taur Properties in the deal. “It’s an See REAL ESTATE on Page 17

New administration means new reality for New York health-care providers

Ambitious reform plans for New York’s health-care system include universal coverage and reining in the state’s $45 billion Medicaid bill, according to Peter Epp and Gil Bernhard, managing directors with RSM McGladrey. There are three recommendations for health-care providers. Focus on IT systems. “Adapting to rapid change hinges on IT,” says Epp. “The state is the biggest payer in our market and wants to shift from a service-based to an outcome-based mindset. It wants to emphasize ambulatory over in-patient care. Providers will need to collect, retrieve and report data in new ways – that means building IT systems with the flexibility to adapt.” Redouble compliance efforts. “Crackdowns on fraud and overpayments will be central to the state’s efforts,” says Bernhard. “Providers should make sure their billing, coding and compliance practices and systems are solid.” Keep an eye on Albany. “With plans this ambitious, the devil will be in the details, and those will continue to evolve,” says Epp. “Providers will need to keep in tune with the state’s plans and be part of the dialogue.” RSM McGladrey offers a wealth of resources for providers in this challenging environment. Our resources and range of experience position us to help clients in a complex and demanding industry.” To learn how we can help your company, call 866.753.3761, or e-mail NYoffi[email protected].

1185 Avenue of the Americas 5th Floor New York, NY 10036 212.372.1000 Peter Epp Gil Bernhard Managing Director Managing Director

RSM McGladrey is a leading professional services firm providing accounting, tax and business consulting. RSM McGladrey operates in an alternative practice structure with McGladrey & Pullen LLP, a partner-owned CPA firm that delivers audit and attest services. Through separate and independent legal entities, they work together to serve clients’ business needs. Together, the companies rank as the fifth largest U.S. provider of accounting, tax and business consulting services (source: Accounting Today), with 8,000 professionals and associates in nearly 100 offices. RSM McGladrey Inc. and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms. RSM McGladrey is a wholly owned

© 2007 RSM McGladrey Inc. indirect subsidiary of H&R Block (NYSE: HRB).

16 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 17 11/15/2007 5:00 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS Free. (718) 960-8697 or networking reception. 5:30 p.m. to DECEMBER 5 session on Microsoft Dynamics GP. NOVEMBER 20 [email protected]. 8 p.m., Commerce Bank, 469 Seventh B’nai B’rith Real Estate Unit holds 12 p.m. to 2 p.m., Microsoft, 1290 Sixth Lower Manhattan Business Solutions NOVEMBER 28 Ave. Fee: $35. (718) 757-6933. lunch on making housing more Ave., Carousel conference room, sixth Center holds seminar on business Networking for Professionals holds DECEMBER 5 affordable and sustainable. 12 p.m. to floor. Free. (888) 869-4090, ext. 707, or insurance. 9 a.m. to 12 p.m., 110 high-speed networking reception. 6:30 The Five O’Clock Club Executive Job 2 p.m., Cornell Club, 6 E. 44th St., Ivy [email protected]. William St., fourth floor. Free. p.m. to 8:30 p.m., Techspace, 41 E. 11th Search Group holds seminar on how to Room. Fee: $55 in advance, $65 at the DECEMBER 11 (212) 618-8914. St., 11th floor. Fee: $25 members and turn job interviews into offers. 6:30 p.m. door. (212) 885-7239 or Camba’s Small Business Services holds NOVEMBER 20 $35 nonmembers in advance online, $40 to 8:30 p.m., 11 Penn Plaza, fifth floor. [email protected]. workshop on repairing credit. 6 p.m. to DFC Vision Co. holds workshop on at the door. (212) 227-6556 or Fee: $50. (914) 788-5482 or DECEMBER 6 8:30 p.m., 884 Flatbush Ave., Brooklyn, sales and marketing solutions. 3 p.m. to [email protected]. [email protected]. North Fork Bank, Light of Gold PR and second floor. Free. Preregistration 5 p.m., 12 Desbrosses St., first floor. NOVEMBER 28 DECEMBER 5 MPA Public Relations hold networking required. (718) 282-2500, ext. 242, or Free. (888) 699-5659 or Business Network International- The Institute for International Socio- reception. 6:30 p.m. to 9 p.m., North [email protected]. [email protected]. Chapter 37 holds networking breakfast. Economic Studies and the Japan Society Fork Bank, 845 Third Ave. Free. —sarah studley 7 a.m. to 8:30 a.m., Pera Brasserie, 303 hold lunch on global climate change: (646) 278-5658 or NOVEMBER 26-DECEMBER 2 Madison Ave. Free. (201) 289-2208 or economic implications and [email protected]. NOVEMBER 27 [email protected]. opportunities. 12 p.m. to 2:30 p.m., More meetings online at American Business Media holds NOVEMBER 29 Japan Society, 333 E. 47th St. Free. DECEMBER 10-16 www.crainsnewyork.com breakfast: B-to-B meets online video. Japan Society holds seminar on the next (212) 715-1247 or DECEMBER 11 Click on “Events” 8:30 a.m. to 11 a.m., McGraw-Hill tech revolution. 6 p.m. to 8 p.m., The [email protected]. Integrity Partners holds information Conference Center, 1221 Sixth Ave., New School, 66 W. 12th St., conference second floor. Fee: $75 members, $95 room 510. Free. (267) 266-9209. nonmembers. (212) 661-6360, ext. NOVEMBER 29 3337, or [email protected]. Score New York City holds seminar on NOVEMBER 27 not-for-profit businesses. 10 a.m. to The New York Public Library holds 12:30 p.m., American Management lecture on getting a head start on 2007 Association, 1601 Broadway, eighth taxes. 5:30 p.m. to 7 p.m., Science, floor. Fee: $40. (212) 264-4507 or Industry and Business Library, 188 [email protected]. Madison Ave., room 018. Free. NOVEMBER 29 (212) 592-7000. Power Networking Business Series NOVEMBER 27 holds networking meeting. 6 p.m. to 480 Merrill Lynch holds dinner on 8 p.m., Baton Rouge Restaurant, 458 W. balancing risk and return. 6:30 p.m. to 145th St. Fee: $20. (718) 380-2062. 8 p.m., Dean’s Restaurant, 801 Second Ave., upstairs. Free. (212) 382-8592 or DECEMBER 3-9 RED HILL ROAD [email protected]. DECEMBER 3 NOVEMBER 27-DECEMBER 18 The New York Society of Security MIDDLETOWN, NEW JERSEY The Enterprise Center @ Fashion Analysts hosts program on the outlook Institute of Technology holds course on for the chemical industry. 5:45 p.m. to the power of negotiation. 6 p.m. to 9:15 7:45 p.m., 1177 Sixth Ave., second floor. p.m. on Tuesdays, Seventh Avenue at Fee: $35 members, $50 nonmembers. West 27th Street, seminar room 5. Fee: (646) 871-3405. $140. (212) 217-7250 or DECEMBER 3 [email protected]. FaceToFace Speed Networking holds NOVEMBER 28 Crain’s New York Business and the five borough chambers of commerce hold TO LIST YOUR EVENT lunch with Donny Deutsch, keynote Crain’s lists business meetings online and includes speaker at the New York Xpo for them in the print edition on a space-available basis. Business. 11:45 a.m. to 1:30 p.m., Jacob Events in New York City with admission fees of less K. Javits Convention Center, 655 W. than $300 are considered for the print publication. 34th St. Fee: $75. (212) 210-0739 or Listings can be submitted only through the Crain’s www.crainsnewyork.com/events. Web site. To submit a calendar listing, go to NOVEMBER 28 www.crainsnewyork.com and click on “Events.” Small Business Development Center at Sponsors have a choice of several free or paid Lehman College holds workshop on listing options. All business events will be posted year-end tax planning and strategy. online within two business days. 11 a.m. to 2 p.m., 250 Bedford Park Crain’s can neither confirm receipt of listings nor say Blvd. West, Bronx, library room B27C. if or when event listings will appear in the print edition. A PRIME MONMOUTH COUNTY LOCATION Real Estate Deals AT EXIT 114 OF THE GARDEN STATE PARKWAY Continued from Page 16 SoHo for bigger, cheaper space in be split between an 89,000-square- TriBeCa. • 285,000 square feet of • Striking atrium lobby, foot building that is being built and The company, which designs prime office space at newly designed for a 7,000-square-foot building that is shoes and accessories in New York Exit 114 of the maximum sunlight being renovated. and manufactures them in China, Garden State Parkway exposure Michael Murray, SurroundArt’s has signed a 10-year lease for 10,500 chief executive, says the company square feet at 174 Hudson St.,between • Complete landscape • Glass-enclosed elevator redevelopment with will take over the buildings in June Vestry and Laight streets. It will re- • Brand-new common areas and then start interior construction. locate from 110 Greene St. by rich foliage and lush The buildings won’t be ready for oc- March 1, after nearly 23 years there. greenery intertwined • May be subdivided cupation until next November. Sur- “We lost our lease,” says Thomas with welcoming pedestrian • Within minutes of roundArt plans to sublease part of Paccione, controller at Fortune walkways PNC Arts Center the space, but the specific portion Footwear. “Our building, like many • Excellent parking hasn’t been decided. in SoHo, is going through a renais- SurroundArt officials say the sance of sorts”and will become a res- new building will receive a silver cer- idential building. tification from the U.S. Green Brad Gerla, a broker at CB Available from: Building Council,which rates struc- Richard Ellis, helped Fortune tures’ environmental friendliness. Footwear find a new home. When There are four levels of certification: SoHo’s asking rents of $50 to $60 certified, gold, silver and platinum. per square foot proved too expen- —theresa agovino sive, the company moved its search to TriBeCa. The asking rent on Hudson Street was in the mid-$40s. Shoe designer Hudson Alley Inc. owns the pulls up stakes building Fortune Footwear is mov- ing into and negotiated the deal in- shoe designer Fortune Footwear house. Inc. is leaving its longtime home in —elisabeth butler cordova

November 19, 2007 | Crain’s New York Business | 17 CNYB 11-19-07 A 18 11/15/2007 4:57 PM Page 1

NEIGHBORHOOD JOURNAL Queens nailed for illegal building

Report for September, which in- September report was the first to “Right now, Increased scrutiny cludes details on building violations highlight Queens as part of a new every develop- may have inflated across the city, showed that the system of presenting the data. Each er or contrac- number of violations in Queens month, the Build Report will focus tor who wants violations data; soared 25% over the year-earlier lev- on a different borough. Queens was to get away el. On the other hand, department chosen randomly as the first. with something ramping up retail officials note they stepped up the But many people in Queens are knows that the number of inspections in Queens by convinced that the problem is real. likelihood of an COURTLY LOVE: 65 Court is just one site targeted for ground-floor retail. llegal construction is on 23% this September—demonstrat- “Illegal construction is out of inspector show- the rise in Queens, according ing, perhaps, the old adage that the control in this city,”says City Coun- ing up while to the Department of Build- more you look, the more you find. cilman Tony Avella, who represents he’s doing the illegal activity is nil.” ber. Potential fines range from ings. Or is it? Buildings Commissioner Patri- Flushing and Bayside—areas with The department issued 570 vio- $2,500 for first infractions up to The agency’s monthly Build cia Lancaster points out that the a high concentration of violations. lations in Queens during Septem- $10,000 for repeat offenses. I Mr. Avella says that such penal- ties are far too low and enforcement far too lax.To tackle the latter prob- lem in areas where there’s lots of construction, such as Flushing, he recently proposed that local resi- dents be trained and deputized as surrogate inspectors. Mr. Avella wants the volunteers to be given the power to issue citations in their neighborhoods. —hilary potkewitz Selling the city on Brooklyn retail years ago, Joseph Chan went to a ground-floor office at 65 Court St. to fill out forms for a teaching job. Today,as president of the Downtown Brooklyn Partnership, he wants to make sure no one does that again— that is, does paperwork in what could be a bustling retail location. Too many of downtown’s pub- licly owned street-level locations are offices or simply vacant spaces, Mr. Chan says.His organization aims to fill in those retail gaps. It has begun by targeting a Department of Edu- cation office at 65 Court,the impos- ing Brooklyn Municipal Building at 210 Joralemon St. and a mostly empty Metropolitan Transportation Authority property at 370 Jay St. “We believe an economic case can be made for moving govern- ment to space that would still work, and repurposing that ground-floor space into retail that would generate THE NUMBER ONE SMALL BUSINESS ISSUE IS HOW TO economic activity,” Mr. Chan says. The partnership has submitted PAY FOR HEALTH INSURANCE. IT DOESN’T HAVE TO BE. an analysis of the retail possibilities for the three buildings to city and MTA officials.The initial response If you’re not quoting HIP, you can rest assured that your competition is. from the Bloomberg administration about its two buildings was enthusi- * • 6% Commission on HIP Select EPO/PPO astic. The MTA plans to renovate • 4% Commission on HIP Classic HMO 370 Jay St.and include ground-floor retail, but the agency’s timetable isn’t clear. • Plans starting as low as $223/mo. • Free eyeglasses, massage therapy, $200 gym There may be another reason for • Leading facilities like Montefiore Medical Center, reimbursement and alternative medicine.** the public sector to act: Ground- North Shore / Long Island Jewish and Lenox Hill Hospital. floor rents for retail space in down- • Rated “excellent” by the National Committee for town Brooklyn range from $80 to as • 25,000 physicians in neighborhoods where your Quality Assurance for Commercial HMO & POS plans. much as $200 per square foot. clients live and work. • Flexible cost-sharing options available. “We’re in a pretty good cycle • A broad range of products to suit your client’s needs now, and it’s time to capitalize on that,” says Mr. Chan. for both slice or full replacement. The Municipal Building would command particularly high retail Call for more rents,the partnership’s analysis says. Visit HIPUSA.COM information: 1-888-447-7864 Seven subway lines and eight bus lines converge there, and daytime pedestrian counts rival those of * For new business on Select EPO/PPO only. Accredited by the National Committee for Quality Assurance (NCQA). A nationally recognized ** Only applies to HIP Classic and Small Group HIP Select EPO/PPO products. evaluation that purchasers, regulators and consumers can use to assess managed care plans. Manhattan’s busiest retail strips.The ® 2007 HIP Health Plan of New York. Commercial HMO and Commercial Point-of-Service plans. property could house two 22,000- square-foot stores in lofty space. —erik engquist

18 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 19 11/15/2007 3:14 PM Page 1

TECHNOLOGY INSIDE Fastest-growing companies in the New York area PAGE 24 “As more media becomes digital, money in the marketplace matters less.” Greg Smith, COO of Neo@Ogilvy, Page 22 Online ads power NYC HOMEGROWN PHENOMENON Right Media Michael Walrath Founder 21 tech boom

BY JUDITH MESSINA n technology circles, New York has been considered an also-ran to Silicon Valley and Boston for years.That perspective gained even more traction when the city’s digital economy began to slide in 2000 and all but collapsed after Sept. 11. TRANSPLANT The boom in online advertising is changing that view.The Quigo I revolution has reignited New York City’s tech sector, spurring growth Henry Vogel Chief revenue officer 21 as companies are drawn to its deep pool of creative talent and concentration of content-critical industries: advertising, communications, media and publishing. “The demand, the advertising and all the decision-makers are here,” says Steve Brotman, managing director of Manhattan-based venture capital firm SAVP and founder of AdOne Classified Network, one of the first Internet ad networks. “Half the companies are in New York; the other half need to open an office in New York.” RISING DIVISION Many are doing that.The two major portals, Google and Yahoo, are Neo@Ogilvy building up their operations in the city—Google with a 700-employee Greg Smith office, and Yahoo with a research center and the acquisition of two up- Chief operating officer 22 and-coming tech companies. AOL is moving its headquarters here, in

part because of the skilled workforce their own operations. available. And finally, a resurgent Silicon Alley Smaller outfits are joining the rush. is spawning startups again.Michael Wal- Israeli transplant Quigo Technologies rath, founder of ad exchange Right Me- has found success—and a buyout by dia, one of Yahoo’s recent purchases, says AOL—as one of Google’s few credi- he has never bought into the notion that ble competitors. San Francisco-based it’s impossible to build a great tech com- VideoEgg is one of the many small Web pany outside of Silicon Valley. NEWCOMER advertising innovators that are placing “The heart and soul of [the advertis- VideoEgg big bets by opening a New York office. ing] business is here,” Mr. Walrath says. Michael Hess Meanwhile,the surge in online adver- “Being able to hire people who have real Vice president tising is spurring growth at Madison Av- media experience and understand how of sales 23 enue stalwarts, such as Ogilvy, that are the art and science of media interplay is buying digital agencies or establishing a huge advantage.” WEB EXCLUSIVE A slide show of the workforce Hybrids taking over the workforce behind the online ad boom. Go to crainsnewyork.com/ ent but a tool I could do prized of workers in online adver- slideshows/tech In high demand, these employees creative things with,” says tising: a “hybrid” thinker, com- combine technical, artistic expertise Q&A Mr. Estis, who was lured bining technical and artistic to New York from Cali- skills. New York is a magnet for office of Avenue A|Ra- A VOICE ARTIST fornia after he worked on this new breed of talent, who are BY DANIEL MASSEY discusses the zorfish to snag him as a online market a campaign for Microsoft in turn critical to developing the creative director last sum- Page 20 Visual Studio that mim- kinds of projects that are keeping it wasn’t just David Estis’back- mer. icked video games.“Not a the city at the forefront of the on- ground in photography and It was both. lot of people know what the capa- line advertising boom. painting or his skills as a pro- “I realized the technology was bilities are,” he says. “You’re looking for someone grammer that led the New York not something completely differ- Mr. Estis, 34, is that most See HYBRID on Page 20

November 19, 2007 | Crain’s New York Business | 19 CNYB 11-19-07 A 20 11/15/2007 3:16 PM Page 1

REPORT TECHNOLOGY

Earlier this year, Brooklyn Bor- ough President Marty Markowitz Hybrid workers in short supply; raids rise announced plans for a high school with an emphasis on advertising and new media. Continued from Page 19 office here in 2004. for employees in faraway places, says. “The result was pretty cool.” Advertising is the fastest-grow- who can think, for sure, but also “There are no categories for including Australia, Korea and Hybrid thinkers don’t necessari- ing sector of Pratt Institute’s com- someone who is open-minded to do some of the new things we’re doing Sweden. ly need a computer science degree munications design program. And other than the traditional,”says Paul now,” Mr. Lavoie says. Especially hard to find are mid- and an M.F.A., either. Elizabeth at Polytechnic University’s Inte- Lavoie, chairman of Taxi Inc., a But the demand for hybrid dle and upper managers who can Zea, a partner at Gilbert and Co., a grated Digital Media Institute, 27 Toronto ad agency that opened an thinkers outstrips the supply, even oversee multiplatform projects, be- management consulting firm that students are enrolled in a new un- in New York.Companies struggling cause most of them came of age identifies and recruits hybrids,looks dergraduate program that synthe- to find such workers—who can when television and print ruled. for people who have taken risks and sizes creative and technical skills. NICE WORK, AND transform an online ad into an inter- Flash programmers—who create lived abroad,and who exhibit an en- “In another 25 years, there won’t PLENTY OF IT active experience—are offering ads that engage the audience trepreneurial spirit. be such a thing where they teach five-figure referral bonuses, recruit- through animation and interactivi- “The people you want don’t have graphic design but not program- Pay in online ad-related jobs in the ing from abroad and establishing in- ty—are also particularly sought-af- pretty résumés,” Ms. Zea says. ming,”says Carl Skelton,director of New York area.* house training programs. ter specialists. Polytech’s program. “Because it Companies raid others for talent, Jane Chen, a designer at Hard-wired for MySpace won’t work.” dangling extra cash and challenging Agency.com, says New York’s on- future workers may come out of Mr. Estis, whose duties at Av- $102,070 projects as enticements, says line advertising workforce is seri- art as well as engineering programs. enue A|Razorfish include hiring Art director Danielle Dorter, associate human ous, driven and drawn to projects Many people are looking to the next hybrid thinkers, is also looking resources director at G2 Direct & that allow experimentation. generation, who seem to have been hopefully to the future. Digital,a marketing and advertising For example, she was excited by born with fingers made for texting “Just now, we’re starting to see $100,160 agency that is a subsidiary of the her recent work on an interactive and brains hard-wired for MySpace the effect of students who are grad- Producer/director Grey Global Group. assignment for spirits maker Jame- and Facebook. uating with this technology,” he The stiff competition con- son that let customers personalize “Our future is kids,” Mr. Lavoie says. “When I was going to school, tributes to high turnover rates. their own T-shirts. says.“They’re more open to embrac- it didn’t exist.” $75,650 “It’s really hard to retain people,” “You could type letters in, to in- ing new ideas and new ways of Announcer Ms. Dorter says. “You can go down teract with the banner,” Ms. Chen working.” COMMENTS? [email protected] the street for $10,000 more.” $62,460 Creative recruiting Film and video editor companies find that in addition to offering monetary rewards, they need to use recruiting methods that instead of having a physical ad between producers of the video $61,230 are as creative as the people they are banner on a Web site, there will be games and the union, and the Multimedia artist/animator trying to attract. just a voice-over. union is trying to negotiate to get Avenue A|Razorfish recently better pay. held a referral contest with a grand & Q: Do more people want to be voice- prize of $10,000. Taxi runs a com- QA over artists? Q: Classified advertising sites for $58,180 prehensive in-house training pro- A: It’s a very competitive voice talents have been springing up Graphic designer gram. business.There are a lot of people in recent years. One of the newest, Most agencies have raised the who want to get into voice-over Manhattan-based Voice123,serves as salaries of experienced professionals The market work because they have the a market for people who don’t have $43,530 who understand the digital land- misconception that agents or managers. Camera operator scape, and creative freelancers with it’s a get-rich-quick Contract jobs A: What Voice123 *Includes New York City, northern New Jersey and technical skills now command as for online scheme, that they allows people who Long Island. much as $250 an hour. can stay at home, ‘are high- are starting out to do Source: Bureau of Labor Statistics Using the city itself as a draw, record their voice in is showcase their many firms have begun searching voice-overs their pajamas, paying, like voice-over reels to a unshaven in a much wider T-shirt … and make $150,000 audience of Talent in demand lots and lots of or $200,000 talent seekers for Web advertising, money. Now in nationwide. Talent some cases, that’s a year’ seekers who are audiobooks; business true, but usually for looking for specific well-established voices and reads will is competitive voice artists. come across their reels through a Envision,Inspire,Innovate he explosion of online Q: Do you work in detailed search, like a search engine advertising has rippled your pajamas? works. across many industries, A: Sometimes. I have a home This is a great springboard for in some cases unexpect- studio and a recording studio in newcomers. … It used to be that edly. Voice-over artists Manhattan. people had to produce reels and Tare among those who are benefiting. CDs and spend lots of money on As multimedia hits the Web,the de- Q: Two unions represent voice-over design and mailing. mand for voice talent is artists: the Screen Actors The perfect setting... surging.Crain’s contribut- Guild and the American Q: Has the explosion in multimedia ing editor Elizabeth Federation of Television changed the kinds of voices that people Large and Small Conference Rooms MacBride asked longtime and Radio Artists. Does want? Accommodating 10-250 Attendees voice-over artist Peter that mean that the pay is A: It’s the young people who are Close Proximity to Manhattan Rofé, who is also a coach generally good across the using the technology, so the and co-author of the up- industry? audience that [advertisers and Private, distraction-free environment, ideal for coming Voice for Hire, A: It runs the gamut. others] are catering to is 18- to 25- board meetings, strategic planning and senior management retreats. about the voices in de- You can have somebody year-olds. 187 well-appointed guestrooms, wired and wireless Internet access. mand today. Peter Rofé with a contract job, like In general, what the advertisers Enabling technologies throughout. being the voice of and agencies want is somebody Serving award-winning cuisine. Q: What are the booming something. A lot of who sounds very real, plausible and markets for voice-overs? those jobs are high-paying, like your friend. Right now, everything 516516516-516---671671671671----6400640064006400 A: Video games. There are flash $150,000 or $200,000 a year. And is about what’s natural, what’s www.glencovemansion.com presentations online for Web sites, any of those announcers might organic, what’s raw. streaming videos, podcasts, things have several jobs. On the other Sometimes, as a voice artist, you Within 30 miles of New York City like that. The audiobook market is end, say it’s a one-time nonunion want to sound indifferent, as 21 miles from LaGuardia and JFK i Convenient to the LIRR really expanding with MP3 players video game job. Someone might strange as that sounds. and iPods. All kinds of advertising. get paid between $150 and $500. For instance, one new thing is that … In fact, there’s a conflict now COMMENTS? [email protected]

20 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 21 11/15/2007 3:25 PM Page 1

REPORT TECHNOLOGY

HOMEGROWN PHENOMENON Silicon Alley success story reshaping ad market Right Media allows were producing results. HEAD COUNT Mr.Walrath figured there had to sites to list, sell space be a better way. With angel money from New York entrepreneurs Jon- to highest bidder; ah and Noah Goodhart, he started 67 200 an ad consulting business; he later Yahoo sweeps in 2005 2007 created a real-time exchange. Using Right Media, Web sites list and sell BY JUDITH MESSINA ad space to the highest bidder. Ad- outright for $650 million—nearly vertisers bid on those venues in an coming from a family of teachers 10 times revenues. effort to maximize their chances of and artists, Right Media founder “We had built a meaningful busi- reaching their target audience. The Michael Walrath was an unlikely ness, but to have the largest publisher open exchange levels the playing candidate to become an Internet en- sign on was very important,”says Mr. field, especially for small Web sites trepreneur.Growing up in suburban Walrath. “The endorsement for the with limited access to advertisers, MICHAEL WALRATH Connecticut, in a home where “The exchange model was tremendous.” and helps attract revenue for space designed Right Wall Street Journal was never a fix- that might otherwise go begging. Media’s exchange ture,” he viewed business as dry and Direct marketing veteran Today, some 30,000 buyers and model to level the uninteresting. mr. walrath, 32, earned his ad sellers trade 5 billion online ads a advertising playing That didn’t stop him from build- stripes at DoubleClick, working for day. Right Media makes money— field for Web sites.

ing one of the most successful com- three years in direct marketing while revenues are expected to be $70 mil- roger hagadone panies to emerge from the New York that firm was breaking ground in lion this year—by taking a small cut City technology scene in recent online advertising. In 2003, he of each transaction. year has grown its staff by 20% to be better positioned to grow. years. With a business that works founded Right Media. “[Right Media] has a good way about 200. And what about that family- like a stock exchange, Manhattan- At the time, Web sites were sell- of monetizing this inventory,taking Its acquisition by Yahoo will help bred aversion to business? based Right Media is reinventing ing and making money on premium the network model and making it an Yahoo distribute its own huge in- “I have a whole different per- the way Internet display ads are ad space,but they were losing poten- anonymous and far-reaching plat- ventory of ad space, though it re- spective today,” Mr. Walrath con- bought and sold.The model,in fact, tial revenues on nonprime ad space. form,” says Jupiter Research analyst mains to be seen whether Right Me- cedes.“[Today] The Wall Street Jour- so impressed Yahoo that last year the Relying on big networks for place- Emily Riley. dia’s other participants will worry nal is a fixture on my laptop.” giant portal invested $45 million in ment, advertisers often didn’t know Right Media has opened seven about Yahoo’s position as middle- the company and in July bought it where their ads ran or whether they offices nationwide and in the past man. For its part, Right Media will COMMENTS? [email protected]

TRANSPLANT Tiny shop surprise winner in battles with Google

publisher’s site, the publisher con- Israeli firm Quigo HEAD COUNT trols its own ad relationships. found connections “We have separated ourselves from the pack of smaller providers,” in NYC; AOL to buy 55 100 says Henry Vogel,Quigo’s chief rev- up-and-comer enue officer. “I don’t think we will 2005 2007 displace Google or Yahoo.” Quigo, which moved to New BY AMANDA FUNG York City from Israel in 2002 to be ads below or to the side of a Web closer to big media companies and of all the niches in the online ad- page. For instance, NYTimes.com Madison Avenue,clearly is winning vertising universe, tiny Manhattan will use Quigo’s technology to put a its share of clients. In June, Time ad shop Quigo happens to occupy Toyota text ad for the hybrid car Inc. dropped Yahoo and selected the one dominated by Google. Prius on a page with a story about en- Quigo to deliver all the targeted text The surprise is the degree to vironmentally friendly homes. and display ads on 15 of its major which it’s succeeding there. After Web sites, including Time.com and Quigo proved it was able to snatch Where the ads are People.com. Time estimates that top clients away from Google,AOL but quigo, which has multiyear Quigo will help the media company FINDING ITS LEVEL: last month announced it would buy contracts with about 500 publishers, generate at least $100 million in rev- Quigo’s Henry Vogel doesn’t think the seven-year-old Quigo for an esti- differentiates itself from bigger enue over its three-year contract. company “will displace mated $350 million. providers through its transparency. Analysts estimate that Quigo has Google or Yahoo.”

“Quigo’s technology is good and Its technology allows marketers to about 10% of the contextual ad mar- buck ennis their approach to working with ad- bid for or buy specific locations on a ket, compared with Google’s com- vertisers and publishers is the best site or even a Web page, so advertis- manding 70%. Search and contextu- and the New York Post’s Web site to mats with its launch of online video I’ve ever seen,” says Hope Gurion, ers know where their ads will appear. al ad revenue is projected to reach $17 its roster.About 95% of its clients are and premium sponsorship services vice president of business develop- This drives up the prices for high- billion in 2011, up 89% from this exclusive, according to Mr. Vogel. this month. “There is an online ad ment at CareerBuilder.com. “That traffic Web sites and helps publishers year, according to eMarketer. Quigo, which has raised about revolution going on,” says Michael is what fuels their success.” earn more. Google and Yahoo only In addition to the Time coup, $50 million from firms including Yavonditte, Quigo’s chief executive. AOL,a struggling online pioneer, recently started revealing informa- Quigo recently renewed contracts Walt Disney Co.’s Steamboat Ven- “We are building products and try- hopes Quigo’s technology will help tion on online ad placement to adver- with FoxNews.com,ABCNews.com tures, Institutional Venture Partners ing to be as successful as possible.” boost its online ad presence. Like tisers. Additionally, while Quigo and CareerBuilder.com.Last month, and Highland Capital Partners, is Google, Quigo places targeted text powers the sponsored links on each it added Slate.com, TheStreet.com moving into emerging online ad for- COMMENTS? [email protected]

November 19, 2007 | Crain’s New York Business | 21 CNYB 11-19-07 A 22 11/15/2007 3:27 PM Page 1

REPORT TECHNOLOGY

RISING DIVISION Digital unit’s strategy: Zero in on the viewers Neo@Ogilvy uses clients. In March, it bought Global HEAD COUNT Strategies International, a consult- search capabilities ing firm that helps advertisers mar- ket their products using search to determine where, 150 560 technology. Search strategies—ef- when ads should run forts to get a company’s Web site 2005 2007 high on the list of search engine re- sults—are an increasingly impor- BY JUDITH MESSINA tant part of companies’ marketing moms on BabyCenter.com. efforts. greg smith, chief operating officer “I’ve had to flip my thinking,” One of Neo’s biggest successes so of Neo@Ogilvy, used to think that says Mr.Smith.“More and more,we far has been winning the reportedly having as many people as possible know who the right target is and $100 million Kodak account, which see an advertisement was the best how to get to [her].” it did with sister agency MindShare. way to reach a target audience. In an advertising world with an Agencies such as Neo and Mind- GREG SMITH of Neo@Ogilvy says he Now, as online ad targeting gets ever-expanding number of venues, share that are part of a larger organ- had to flip his thinking increasingly sophisticated, he pays from e-mail to search engines to ization have an advantage in pitch- about audience size. more per view, but he can home in blogs to Internet video, the key ing the likes of Kodak: They can on a precisely defined audience at a question is no longer just what a offer comprehensive packages to the

catherine gibbons catherine moment in time, such as expectant campaign should say, but where it consumer products giants. should run, in what form, and how “Neo is an essential part of the the results ought to be measured. equation,” says Jean-Philippe Ma- heu, Ogilvy’s chief digital officer. Key member of stable “Creative and media are much more that’s where Neo@Ogilvy, a dig- intertwined than they ever were.” ital and direct media strategist, Neo clearly benefits from the Amper comes in. Formed two years ago, the leverage its giant family wields, but unit of WPP’s Ogilvy Group al- increasingly such units also are ready counts heavyweights Kodak, teaching their parents a few things ...Taking Our Technology IBM and Lenovo among its clients about doing business in an advertis- Clients to the Top and has 560 employees in nine of- ing world where many of the old fices worldwide. WPP, which says rules no longer apply. that more than 20% of its $11 billion “As more media becomes digital, in revenue is now coming from dig- money in the marketplace matters hat makes Amper one of the ital and direct media buying and less,” says Mr. Smith. “Anyone can Crain's New York Business fastest- planning, cited Neo as one of the come in and through careful arbi- Wgrowing CPA firms and one of the most successful companies in its sta- trage get what they need, no matter largest firms in the US? It's the trust and ble in 2006. what their size.” confidence that thousands of companies Neo@Ogilvy has been investing have placed in us for more than 40 years. in search capabilities it can offer COMMENTS? [email protected]

You should know that Amper has:

One of the leading software, Internet commerce, IT services and life science practices in Metro New York
Served nearly100 public and privately held software companies
Specialists in accounting, domestic and international tax matters, and consulting
An extensive financing, legal, and business network

For more information on how Amper can meet your needs, contact us today:

Mike Lopez, CPA 6 East 43rd Street New York, NY 10017 212.682.1600 [email protected]

“Seeing Beyond the Numbers...” www.amper.com

22 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 23 11/15/2007 3:52 PM Page 1

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NEWCOMER Small West Coast firm sees dollar signs in city

VideoEgg has specialized distri- VideoEgg leads HEAD COUNT bution. Its technology allows ad in ads for social placement within widgets—appli- * cations that networkers can use to networking sites; 10 90 share everything from movie picks to photos. Facebook alone has 5,000 competition grows 2005 2007 widgets; VideoEgg recently began *12 in New York. delivering video ads to 100 widgets. BY AMANDA FUNG VideoEgg has received money from sources that include WPP, for many ambitious online ad of 35 million Web users a month. August Capital,Maveron and Focus companies,at some point New York The company is building on Ventures. It has opened offices in is the next logical step. those numbers in New York. five other major markets: Chicago, That point came recently for “We blitzed the ad agencies and Detroit, London, Los Angeles and VideoEgg.The San Francisco outfit advertisers with calls,” says Mr. Toronto. But most of its revenues, made a name for itself by developing Hess, whose Katonah, N.Y., home which the company says have been HERE TO STAY: “It is a technology that delivers video ads served as the office here before the growing at 40% a month, are gener- vital for us to have a big presence in New to social networking sites like Face- staff reached critical mass; ated in New York. York,” says sales chief book.With a $34 million infusion of VideoEgg then moved to the Flat- Michael Hess.

venture capital, it set its sights on iron district. “There is a large de- COMMENTS? [email protected] buck ennis getting more contracts from bigger mand to learn about our solution.” clients. In September, the firm pitched a tent in Manhattan. Small fish in growing pond “It is vital for us to have a big pres- but videoegg, started in 2004 by CORPORATE & INVESTMENT BANKING I ASSET MANAGEMENT I PRIVATE WEALTH MANAGEMENT ence in New York,” says Michael three Yale graduates, hasn’t picked Hess, VideoEgg’s vice president of an easy growth recipe. It faces com- sales.“There is tons of money here.” petition from giants like Google’s VideoEgg’s main product is YouTube, which launched its ver- overlay video ads, which run on the sion of overlay video ads this sum- bottom of the computer screen. mer.Online video ad spending,pro- Consumers generally find them less jected to be $600 million this year,is irritating than the dominant preroll expected to reach $7 billion in 2012, ads,which people are often forced to and the field is bound to get crowd- watch before they can view a video. ed, according to Forrester Research. So far, VideoEgg has handled “Online video is so new, and 300 brand campaigns on 90 net- VideoEgg is so small in the space,” working sites for such companies as says Shar VanBoskirk, principal an- Burger King, Ford, General Mo- alyst at Forrester. “Its challenge is tors, Microsoft, Nike and Universal educating advertisers on why they Pictures.The ads reach an audience should work with them.” Setting the stage for our clients’ success.

Knowledge is power.

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CRAIN’S BREAKFAST FORUMS Deutsche Bank Securities Inc., a subsidiary of Deutsche Bank AG, conducts investment banking and securities activities in the United States. Deutsche Bank Securities Inc., is a member of NYSE, NASD and SIPC. © 2007 Deutsche Bank AG.

November 19, 2007 | Crain’s New York Business | 23 CNYB 11-19-07 A 24 11/15/2007 4:48 PM Page 1

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Best-Performing Publicly Traded Companies in the New York Area Largest in shareholder returns: American Real Estate Partners1 Top 5 in Revenue Growth Top 5 in Net Income Growth

Northstar Realty Finance +277.9% $544.0 Macquarie Infrastructure Co. Trust +228.5% $1,783.6 +441.1% 247 173 1-Rank on ’07 list of top publicly held companies: 240.

158 Sirius Satellite Radio +267.2% $5,098.0 194 AmTrust Financial Services Inc. +227.4% $788.5 Largest in revenues and net income: Citigroup2 112 Covanta Holding +213.6% $4,155.1 247 Northstar Realty Finance +179.8% $544.0

242 Crystal River Capital +152.8% $361.6 157 Nymex Holdings +159.3% $11,784.4 $146,905M ’06 REVENUES 195 OSI Pharmaceuticals +126.4% $2,395.3 25 Arrow Electronics +147.2% $4,459.1 ■ Rank on ’07 list of largest publicly held companies ■ Three-year annualized growth rate ■ Market capitalization (in millions) $21,538M ’06 NET INCOME Companies were drawn from Crain’s 2007 list of the area’s 250 largest publicly held companies. Not all of them appear in the list below, which ranks companies based on a combination of measures. Market capitalization: closing stock price on Nov. 9, multiplied by the number of common shares outstanding for the most recent quarter. See Page 26 for notes on growth rate for revenue and income. 2-Rank on ’07 list of top publicly held companies: 1. New York Area’s Fastest-Growing Companies Based on the sum of firm rankings in revenue growth rate, net income growth rate and share price appreciation

Three-year Three-year annualized annualized Closing revenue 2006 net income 2006 Three-year price for growth revenue growth net income share price shares on Rank Company/Ticker symbol Phone/Web site rate/Rank (in millions) rate/Rank (in millions) appreciation/Rank 11/9/07 Industry/Number of employees

Icahn Enterprises 1 (IEP) (212) 702-4300 +68.4% $1,477.9 +124.8% $798.8 +409.8% $127.22 Building operator 1 767 Fifth Ave., New York, NY 10153 www.icahnenterprisescom 16 8 4 13,370 Cognizant Technology Solutions Corp. (CTSH) (201) 801-0233 +57.0% $1,424.3 +59.5% $232.8 +193.9% $30.79 Software 2 500 Glenpointe Centre West, Teaneck, NJ 07666 www.cognizant.com 23 26 17 38,800 AllianceBernstein Holding (AB) (212) 969-1000 +53.0% $359.5 +60.5% $325.0 +150.6% $74.55 Financial services 3 1345 Sixth Ave., New York, NY 10105 www.alliancebernstein.com 27 25 25 4,914 Celgene Corp. (CELG) (908) 673-9000 +49.0% $898.9 +39.0% $69.0 +354.2% $62.89 Biotechnology 4 86 Morris Ave., Summit, NJ 07901 www.celgene.com 31 46 6 1,287 Comtech Telecommunications Corp. 2 (CMTL) (631) 962-7000 +31.0% $391.5 +67.1% $45.3 +227.7% $50.83 Communications equipment 5 68 S. Service Road, Melville, NY 11747 www.comtechtel.com 53 22 13 1,228 Gramercy Capital Corp. 3 (GKK) (212) 297-1000 +125.5% $195.3 +78.2% $55.9 +61.3% $23.42 Real estate investment trust 6 420 Lexington Ave., New York, NY 10170 www.gramercycapitalcorp.com 6 18 66 0 4 Goldman Sachs Group Inc. 5 (GS) (212) 902-1000 +43.2% $69,353.0 +47.0% $9,537.0 +113.6% $211.33 Securities 7 85 Broad St., New York, NY 10004 www.goldmansachs.com 34 36 32 26,467 M&F Worldwide Corp. (MFW) (212) 572-8600 +96.1% $722.0 +16.0% $36.2 +346.7% $50.55 Camera systems, licorice extract 8 35 E. 62nd St., New York, NY 10021 www.mandfworldwide.com 8 90 7 3,462 BlackRock Inc. (BLK) (212) 810-5300 +51.9% $2,098.0 +27.6% $322.6 +157.5% $191.20 Investment advice 9 40 E. 52nd St., New York, NY 10022 www.blackrock.com 28 63 23 5,113 Coach Inc. 6 (COH) (212) 594-1850 +30.4% $2,111.5 +55.8% $494.3 +112.5% $32.58 Leather products 10 516 W. 34th St., New York, NY 10001 www.coach.com 56 29 33 7,500 Jarden Corp. (JAH) (914) 967-9400 +87.1% $3,846.3 +49.4% $106.0 +50.0% $28.39 Consumer products 11 555 Theodore Fremd Ave., Rye, NY 10580 www.jarden.com 11 34 76 20,000 Universal American Financial Corp. (UHCO) (914) 934-5200 +41.8% $1,305.1 +40.5% $119.3 +83.5% $23.22 Insurance 12 6 International Drive, Rye Brook, NY 10573 www.uafc.com 35 44 46 4,100 Empire Resources Inc. (ERS) (201) 944-2200 +32.2% $426.0 +35.1% $8.7 +143.4% $5.80 Semifinished aluminum products 13 1 Parker Plaza, Fort Lee, NJ 07024 www.empireresources.com 48 50 27 65 Leucadia National Corp. (LUK) (212) 460-1900 +50.5% $827.8 +25.0% $189.4 +119.1% $45.46 Insurance 14 315 Park Ave. South, New York, NY 10010 www.leucadia.com 29 70 31 1,323 Children’s Place Retail Stores Inc. 7 (PLCE) (201) 558-2400 +36.2% $2,017.7 +55.0% $84.6 +66.4% $25.58 Apparel stores 15 915 Secaucus Road, Secaucus, NJ 07094 www.childrensplace.com 43 30 57 21,400 Hess Corp. (HES) (212) 997-8500 +25.2% $28,067.0 +43.9% $1,916.0 +120.3% $71.69 Petroleum 16 1185 Sixth Ave., New York, NY 10036 www.hess.com 67 39 30 13,700 Signature Bank (SBNY) (646) 822-1500 +63.6% $261.0 +136.0% $33.4 +23.7% $36.15 Banking 17 565 Fifth Ave., New York, NY 10017 www.signatureny.com 18 7 112 416 Overseas Shipholding Group Inc. (OSG) (212) 953-4100 +32.1% $1,047.4 +47.9% $392.7 +72.8% $65.94 Shipping 18 666 Third Ave., New York, NY 10017 www.osg.com 49 35 53 3,980 Lehman Brothers Holdings Inc. 5 (LEH) (212) 526-7000 +39.3% $46,709.0 +33.1% $4,007.0 +76.9% $58.07 Securities 19 745 Seventh Ave., New York, NY 10019 www.lehman.com 40 55 49 25,936 Navigators Group Inc. (NAVG) (212) 244-2333 +20.0% $526.6 +111.4% $72.6 +74.4% $57.43 Insurance 20 1 Penn Plaza, New York, NY 10119 www.navg.com 84 11 51 342 SL Green Realty Corp. (SLG) (212) 594-2700 +28.1% $596.5 +31.0% $220.7 +147.3% $111.48 Real estate investment trust 21 420 Lexington Ave., New York, NY 10170 www.slgreen.com 61 60 26 814 Investment Technology Group Inc. (ITG) (212) 588-4000 +20.6% $586.3 +32.7% $97.9 +204.1% $39.44 Securities trading services 22 380 Madison Ave., New York, NY 10017 www.itginc.com 81 56 16 1,069 Greenhill & Co. (GHL) (212) 389-1500 +31.9% $290.6 +18.6% $75.7 +183.6% $68.22 Securities 23 300 Park Ave., New York, NY 10022 www.greenhill-co.com 51 84 19 201 Systemax Inc. (SYX) (516) 608-7000 +12.3% $2,345.2 +141.5% $45.1 +233.1% $19.86 Computers and related products 24 11 Harbor Park Drive, Port Washington, NY 11050 www.systemax.com 136 6 12 3,287 E*Trade Financial Corp. (ETFC) (646) 521-4300 +27.1% $3,848.4 +45.8% $628.9 +67.3% $8.59 Financial services 25 135 E. 57th St., New York, NY 10022 www.etrade.com 63 37 56 4,126 Knight Capital Group Inc. (NITE) (201) 222-9400 +20.4% $951.2 +60.8% $158.3 +66.2% $12.78 Securities 26 545 Washington Blvd., Jersey City, NJ 07310 www.knight.com 82 24 58 844 Jefferies Group Inc. (JEF) (212) 284-2300 +28.4% $1,963.2 +34.8% $205.8 +67.6% $24.11 Securities 27 520 Madison Ave., New York, NY 10022 www.jefco.com 60 52 55 2,254 Sequa Corp. (SQA.A) (212) 986-5500 +12.2% $2,183.8 +85.8% $65.6 +216.3% $172.65 Aerospace 28 200 Park Ave., New York, NY 10166 www.sequa.com 137 15 15 10,155 G-III Apparel Group Ltd. 7 (GIII) (212) 403-0500 +23.8% $427.0 +16.3% $13.2 +245.6% $14.62 Apparel 29 512 Seventh Ave., New York, NY 10018 www.g-iii.com 72 89 11 510

24 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 25 11/15/2007 4:50 PM Page 1

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Three-year Three-year annualized annualized Closing revenue 2006 net income 2006 Three-year price for growth revenue growth net income share price shares on Rank Company/Ticker symbol Phone/Web site rate/Rank (in millions) rate/Rank (in millions) appreciation/Rank 11/9/07 Industry/Number of employees

Polo Ralph Lauren Corp. 8 (RL) (212) 318-7000 +17.4% $4,287.4 +33.3% $400.9 +171.1% $67.96 Apparel 30 650 Madison Ave., New York, NY 10022 www.polo.com 97 54 21 14,000 Arrow Electronics Inc. (ARW) (631) 847-2000 +16.8% $13,577.1 +147.2% $388.3 +61.5% $36.33 Electronics 31 50 Marcus Drive, Melville, NY 11747 www.arrow.com 103 5 65 12,000 Phillips-Van Heusen Corp. 7 (PVH) (212) 381-3500 +10.0% $2,090.6 +119.4% $155.2 +174.4% $41.91 Apparel 32 200 Madison Ave., New York, NY 10016 www.pvh.com 152 10 20 10,900 L-3 Communications Holdings Inc. (LLL) (212) 697-1111 +35.1% $12,476.9 +23.7% $526.1 +59.5% $111.70 Communication systems 33 600 Third Ave., New York, NY 10016 www.l-3com.com 44 71 69 63,700 National Financial Partners Corp. (NFP) (212) 301-4000 +32.4% $1,077.1 +34.8% $57.6 +37.6% $50.04 Financial services 34 787 Seventh Ave., New York, NY 10019 www.nfp.com 47 51 91 2,642 Merrill Lynch & Co. (MER) (212) 449-1000 +34.9% $68,622.0 +25.0% $7,499.0 +49.2% $53.27 Securities 35 4 World Financial Center, New York, NY 10080 www.ml.com 45 69 77 56,200 Covanta Holding Corp. (CVA) (973) 882-9000 +213.6% $1,268.5 n/m $105.8 +274.9% $27.00 Insurance 36 40 Lane Road, Fairfield, NJ 07004 www.covantaholding.com 3 180 9 3,300 Drew Industries Inc. (DW) (914) 428-9098 +27.3% $729.2 +16.9% $31.0 +82.2% $33.66 Metal products 37 200 Mamaroneck Ave., White Plains, NY 10601 www.drewindustries.com 62 86 47 3,690 Entertainment Distribution Co. 9 (EDCI) (770) 283-1000 +81.6% $348.5 +36.5% $4.0 +3.5% $1.01 Communications and entertainment 38 825 Eighth Ave., New York, NY 10019 www.edcllc.com 12 49 137 2,200 Bio-Reference Laboratories Inc. 10 (BRLI) (201) 791-2600 +21.0% $193.1 +20.0% $11.3 +106.5% $30.95 Medical laboratories 39 481 Edward H. Ross Drive, Elmwood Park, NJ 07407 www.bioreference.com 79 83 36 1,551 Movado Group Inc. 7 (MOV) (201) 267-8000 +17.3% $532.9 +29.9% $50.1 +88.1% $26.62 Watchmaker and retailer 40 650 From Road, Paramus, NJ 07652 www.movadogroup.com 98 61 43 1,300 Steven Madden Ltd. (SHOO) (718) 446-1800 +14.0% $489.4 +31.3% $46.3 +125.0% $23.00 Footwear 41 52-16 Barnett Ave., Long Island City, NY 11104 www.stevemadden.com 120 59 28 1,498 Bear Stearns Cos. 5 (BSC) (212) 272-2000 +30.8% $16,551.4 +21.1% $2,053.9 +45.3% $96.91 Securities 42 383 Madison Ave., New York, NY 10179 www.bearstearns.com 55 79 82 13,566 Nasdaq Stock Market Inc. (NDAQ) (212) 401-8700 +41.3% $1,657.8 n/m $127.9 +388.4% $41.24 Electronic stock market 43 1 Liberty Plaza, New York, NY 10006 www.nasdaq.com 37 180 5 898 Alleghany Corp. (Y) (212) 752-1356 +23.7% $1,209.2 +15.7% $251.2 +64.8% $391.50 Insurance, mineral products 44 7 Times Square Plaza, New York, NY 10036 www.alleghany.com 73 91 59 1,411 MSC Industrial Direct Co. 11 (MSM) (516) 812-2000 +16.0% $1,317.5 +37.8% $136.4 +60.7% $45.68 Industrial products 45 75 Maxess Road, Melville, NY 11747 www.mscdirect.com 109 47 68 3,775 Morgan Stanley 5 (MS) (212) 761-4000 +30.1% $76,551.0 +25.4% $7,472.0 +29.5% $54.20 Securities 46 1585 Broadway, New York, NY 10036 www.morganstanley.com 57 67 102 55,310 Moody’s Corp. (MCO) (212) 553-0300 +17.8% $2,037.1 +27.5% $753.9 +58.0% $38.65 Credit rating agency 47 99 Church St., New York, NY 10007 www.moodys.com 93 64 70 3,400 Asbury Automotive Group Inc. (ABG) (212) 885-2500 +11.5% $5,748.3 +58.7% $60.7 +62.3% $17.36 Auto dealerships 48 622 Third Ave., New York, NY 10017 www.asburyauto.com 141 27 61 8,300 Lifetime Brands Inc. (LCUT) (516) 683-6000 +41.8% $457.4 +22.7% $15.5 +18.0% $12.36 Housewares 49 1000 Stewart Ave., Garden City, NY 11530 www.lifetimebrands.com 36 75 120 1,199 J.P. Morgan Chase & Co. (JPM) (212) 270-6000 +30.8% $99,302.0 +29.1% $14,444.0 +17.9% $42.31 Financial services 50 270 Park Ave., New York, NY 10017 www.jpmorganchase.com 54 62 121 174,360 Alpharma Inc. (ALO) (201) 947-7774 +10.9% $653.8 +81.4% $82.5 +50.8% $20.24 Pharmaceuticals 51 1 Executive Drive, Fort Lee, NJ 07024 www.alpharma.com 146 16 75 1,400 Curtiss-Wright Corp. (CW) (973) 597-4700 +19.8% $1,282.2 +15.5% $80.6 +62.1% $54.08 Aerospace and defense 52 4 Becker Farm Road, Roseland, NJ 07068 www.curtisswright.com 86 92 62 6,233 MetLife Inc. (MET) (212) 578-2211 +11.3% $48,396.0 +41.0% $6,293.0 +68.8% $64.28 Insurance 53 200 Park Ave., New York, NY 10166 www.metlife.com 143 43 54 47,000 NYMagic Inc. (NYM) (212) 551-0600 +18.4% $200.5 +20.4% $29.9 +52.9% $23.47 Insurance 54 919 Third Ave., New York, NY 10022 www.nymagic.com 90 80 74 146 Aéropostale Inc. 7 (ARO) (646) 485-5398 +24.4% $1,413.2 +25.3% $106.6 +24.9% $23.52 Apparel stores 55 112 W. 34th St., New York, NY 10120 www.aeropostale.com 70 68 108 10,756 Kimco Realty Corp. 12 (KIM) (516) 869-9000 +18.4% $891.8 +20.1% $428.3 +55.2% $37.90 Real estate investment trust 56 3333 New Hyde Park Road, New Hyde Park, NY 11042 www.kimcorealty.com 91 82 73 618 Vornado Realty Trust (VNO) (212) 894-7000 +23.0% $2,974.0 +6.7% $560.1 +84.2% $98.83 Real estate investment trust 57 888 Seventh Ave., New York, NY 10019 www.vno.com 74 128 45 3,477 Standard Microsystems Corp. 13 (SMSC) (631) 435-6000 +19.7% $370.6 +7.9% $27.0 +94.0% $36.13 Semiconductors 58 80 Arkay Drive, Hauppauge, NY 11788 www.smsc.com 87 124 39 856 NBTY Inc. 14 (NTY) (631) 567-9500 +16.4% $1,880.2 +11.1% $111.8 +100.1% $32.02 Pharmaceuticals 59 90 Orville Drive, Bohemia, NY 11716 www.nbty.com 107 112 38 10,900 Assurant Inc. (AIZ) (212) 859-7000 +4.4% $7,963.2 +56.9% $717.4 +107.9% $63.45 Insurance 60 1 Chase Manhattan Plaza, New York, NY 10005 www.assurant.com 199 28 34 13,400 Newcastle Investment Corp. (NCT) (212) 798-6100 +54.0% $558.6 +31.6% $127.9 -36.3% $13.87 Real estate investment trust 61 1345 Sixth Ave., New York, NY 10105 www.newcastleinv.com 25 57 182 0 4 Scientific Games Corp. (SGMS) (212) 754-2233 +17.0% $897.2 +8.6% $66.8 +92.6% $32.26 Wagering and lottery systems 62 750 Lexington Ave., New York, NY 10022 www.scientificgames.com 102 122 40 5,500 Delta Financial Corp. (DFC) (516) 364-8500 +66.9% $512.1 -23.9% $29.8 +48.2% $2.06 Mortgage financing 63 1000 Woodbury Road, Woodbury, NY 11797 www.deltafinancial.com 17 169 79 1,395 Alexander’s Inc. (ALX) (201) 587-8541 +31.6% $198.8 n/m ($75.0) +107.5% $358.50 Real estate investment trust 64 210 Route 4 East, Paramus, NJ 07652 www.alx-inc.com 52 180 35 96 Monster Worldwide Inc. (MNST) (212) 351-7000 +39.3% $1,116.7 n/m $37.1 +76.1% $35.78 Online career services, advertising 65 622 Third Ave., New York, NY 10017 www.monsterworldwide.com 39 180 50 4,900 Dover Corp. (DOV) (212) 922-1640 +21.8% $6,511.6 +16.7% $561.8 +28.5% $45.90 Industrial equipment 66 280 Park Ave., New York, NY 10017 www.dovercorporation.com 77 87 105 33,000 Bank of New York Mellon Corp. 15 (BK) (212) 495-1784 +12.5% $9,027.0 +37.6% $3,011.0 +39.7% $44.84 Banking 67 1 Wall St., New York, NY 10286 www.bankofny.com 133 48 88 22,961 Barr Pharmaceuticals Inc. 6 (BRL) (201) 930-3300 +13.3% $1,314.5 +26.2% $336.5 +49.1% $52.42 Pharmaceuticals 68 400 Chestnut Ridge Road, Woodcliff Lake, NJ 07677 www.barrlabs.com 126 66 78 2,040 ITT Corp. (ITT) (914) 641-2000 +17.2% $7,807.9 +12.9% $581.1 +57.3% $63.11 Defense systems and services 69 4 W. Red Oak Lane, White Plains, NY 10604 www.itt.com 100 101 71 37,500 News Corp. 6 (NWS.A) (212) 852-7000 +13.4% $25,327.0 +41.2% $2,314.0 +24.6% $22.13 Entertainment and media 70 1211 Sixth Ave., New York, NY 10036 www.newscorp.com 125 42 109 47,300 Hain Celestial Group Inc. 6 (HAIN) (631) 730-2200 +16.6% $738.6 +10.5% $37.1 +63.9% $31.62 Food and beverage products 71 58 S. Service Road, Melville, NY 11747 www.hain-celestial.com 105 114 60 2,074 Continued

November 19, 2007 | Crain’s New York Business | 25 CNYB 11-19-07 A 26 11/15/2007 4:52 PM Page 1

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Three-year Three-year annualized annualized Closing revenue 2006 net income 2006 Three-year price for growth revenue growth net income share price shares on Rank Company/Ticker symbol Phone/Web site rate/Rank (in millions) rate/Rank (in millions) appreciation/Rank 11/9/07 Industry/Number of employees

Triarc Cos. (TRY.B) (212) 451-3000 +61.8% $1,243.3 n/m ($11.3) +46.6% $10.20 Restaurant franchisor 72 280 Park Ave., New York, NY 10017 www.triarc.com 19 180 81 24,372 Warnaco Group Inc. 12 (WRNC) (212) 287-8000 +14.0% $1,827.5 +9.3% $50.8 +91.1% $35.19 Apparel 73 501 Seventh Ave., New York, NY 10018 www.warnaco.com 121 119 41 10,287 Starwood Hotels & Resorts Worldwide Inc. (HOT) (914) 640-8100 +8.9% $5,979.0 +50.0% $1,043.0 +39.9% $51.82 Hotels 74 1111 Westchester Ave., White Plains, NY 10604 www.starwoodhotels.com 163 33 87 145,000 Henry Schein Inc. (HSIC) (631) 843-5500 +17.3% $5,153.1 +8.5% $163.8 +62.0% $59.09 Medical and hospital equipment 75 135 Duryea Road, Melville, NY 11747 www.henryschein.com 99 123 63 11,400 WHX Corp. (WXCP) (914) 925-4413 +16.7% $461.0 n/m ($18.2) +725.7% $5.00 Metal products 76 555 Theodore Fremd Ave., Rye, NY 10580 www.whxcorp.com 104 180 2 1,628 Prudential Financial Inc. 12 (PRU) (973) 802-6000 +7.6% $32,484.0 +23.3% $3,428.0 +90.4% $93.35 Insurance 77 751 Broad St., Newark, NJ 07102 www.prudential.com 171 73 42 39,814 Alcoa Inc. (AA) (212) 836-2674 +14.4% $30,379.0 +33.8% $2,248.0 +19.3% $37.09 Alumina and aluminum products 78 390 Park Ave., New York, NY 10022 www.alcoa.com 117 53 118 123,000 Medco Health Solutions Inc. (MHS) (201) 269-3400 +7.4% $42,498.7 +14.0% $630.2 +168.2% $95.07 Pharmacy benefits management 79 100 Parsons Pond Drive, Franklin Lakes, NJ 07417 www.medco.com 173 98 22 15,700 American Home Mortgage Investment Corp. (AHM) (516) 949-3900 +29.8% $1,043.8 +52.9% $263.5 -96.0% $0.09 Real estate investment trust 80 538 Broadhollow Road, Melville, NY 11747 www.americanhm.com 58 31 206 7,409 Sirius Satellite Radio Inc. (SIRI) (212) 584-5100 +267.2% $637.2 n/m ($1,104.9) +19.9% $3.47 Satellite radio 81 1221 Sixth Ave., New York, NY 10020 www.sirius.com 2 180 116 722 Lazare Kaplan International Inc. 16 (LKI) (212) 972-9700 +37.5% $528.0 +11.8% $1.5 -9.0% $9.35 Jewelry and watches 82 19 W. 44th St., New York, NY 10036 www.lazarekaplan.com 41 107 154 223 Hudson City Bancorp Inc. (HCBK) (201) 967-1900 +26.2% $1,621.1 +11.6% $288.6 +13.0% $14.94 Banking 83 West 80 Century Road, Paramus, NJ 07652 www.hcsbonline.com 65 108 129 1,319 Inter Parfums Inc. (IPAR) (212) 983-2640 +20.0% $321.1 +8.6% $17.7 +31.3% $22.25 Fragrances and beauty aids 84 551 Fifth Ave., New York, NY 10176 www.interparfumsinc.com 83 121 99 235 CIT Group Inc. (CIT) (212) 771-0505 +14.9% $6,927.7 +22.7% $1,046.0 +18.5% $30.56 Commercial and consumer finance 85 505 Fifth Ave., New York, NY 10017 www.cit.com 114 76 119 7,345 C.R. Bard Inc. (BCR) (908) 277-8000 +11.5% $1,985.5 +17.3% $272.1 +42.2% $83.55 Medical equipment and supplies 86 730 Central Ave., Murray Hill, NJ 07974 www.crbard.com 140 85 86 9,400 W.P. Carey & Co. (WPC) (212) 492-1100 +21.8% $273.3 +14.5% $86.3 +0.5% $33.88 Real estate advisory 87 50 Rockefeller Plaza, New York, NY 10020 www.wpcarey.com 76 95 141 0 17 Volt Information Sciences Inc. 10 (VOL) (212) 704-2400 +13.3% $2,338.5 +93.9% $30.7 -22.0% $15.12 Help supply services 88 560 Lexington Ave., New York, NY 10022 www.volt.com 127 13 176 46,000 Village Super Market Inc. 2 (VLGEA) (973) 467-2200 +4.1% $1,016.8 +14.1% $16.5 +190.3% $53.03 Grocery stores 89 733 Mountain Ave., Springfield, NJ 07081 www.shoprite.com 202 97 18 4,400 AEP Industries Inc. 10 (AEPI) (201) 641-6600 +13.2% $802.1 n/m $62.9 +272.2% $36.72 Plastic products 90 125 Phillips Ave., South Hackensack, NJ 07606 www.aepinc.com 128 180 10 1,800 Pall Corp. 2 (PLL) (516) 484-5400 +7.7% $2,016.8 +12.1% $145.5 +79.2% $37.69 Industrial equipment 91 2200 Northern Blvd., East Hills, NY 11548 www.pall.com 170 105 48 10,828 Dow Jones & Co. (DJ) (212) 416-2000 +7.0% $1,783.9 +31.4% $386.6 +35.4% $59.65 Information services 92 200 Liberty St. Tower A, New York, NY 10281 www.dowjones.com 178 58 93 7,400 Provident Financial Services Inc. (PFS) (201) 333-1000 +14.7% $314.1 +42.0% $53.7 -20.1% $15.75 Banking 93 830 Bergen Ave., Jersey City, NJ 07306 www.providentnj.com 115 41 174 877 Becton Dickinson & Co. 14 (BDX) (201) 847-6800 +9.4% $5,840.2 +11.2% $752.3 +61.7% $81.45 Medical equipment and supplies 94 1 Becton Drive, Franklin Lakes, NJ 07417 www.bd.com 159 111 64 26,990 Nu Horizons Electronics Corp. 13 (NUHC) (631) 396-5000 +28.7% $737.5 n/m $9.9 +34.7% $6.78 Electronics 95 70 Maxess Road, Melville, NY 11747 www.nuhorizons.com 59 180 96 748 Cablevision Systems Corp. (CVC) (516) 803-2300 +13.8% $5,927.5 n/m ($126.5) +103.7% $26.28 Cable and pay television 96 1111 Stewart Ave., Bethpage, NY 11714 www.cablevision.com 124 180 37 16,218 iStar Financial Inc. (SFI) (212) 930-9400 +21.4% $992.6 +9.7% $374.8 -4.4% $29.80 Real estate investment trust 97 1114 Sixth Ave., New York, NY 10036 www.istarfinancial.com 78 116 149 214 Bel Fuse Inc. (BELFB) (201) 432-0463 +17.2% $254.9 +22.3% $25.2 -17.7% $30.30 Electronics 98 206 Van Vorst St., Jersey City, NJ 07302 www.belfuse.com 101 78 168 1,956 Ann Taylor Stores Corp. 7 (ANN) (212) 541-3300 +13.8% $2,342.9 +12.4% $143.0 +17.1% $30.53 Apparel stores 99 7 Times Square, New York, NY 10036 www.anntaylor.com 123 102 122 17,700 Gamco Investors Inc. (GBL) (914) 921-3700 +11.3% $290.8 +11.9% $69.5 +34.1% $54.71 Investment advice 100 1 Corporate Center, Rye, NY 10580 www.gabelli.com 144 106 97 200 Source: Standard & Poor’s Compustat; additional research by Denise Southwood and Sarah Studley New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Companies were drawn from Crain’s list of the area’s 250 largest publicly held companies, published on May 28, 2007. They must be headquartered in the New York area and must have been publicly traded for at least three years as of July 31, 2007. All financial data are for fiscal 2006 and come from the companies’ most recent 10-K’s, which were filed by July 31, 2007. All financial data are for companies’ fiscal years, which correspond to the calendar year except where noted. The most recent financial data for companies with fiscal years ending in June through December are for the year ended in 2006; the most recent financial data for companies with fiscal years ending in January through May are for the year ended in 2007. All numbers except stock closing prices have been rounded to one decimal place. Revenue growth rate, net income growth rate and share price appreciation are based on unrounded numbers. All companies were publicly traded under the given ticker symbols as of July 31, 2007. Rank: where a company falls when ranked among qualifying companies from the list of the 250 largest publicly held companies. Overall rank: based on the sum of the rankings in revenue growth rate, net income growth rate and share price appreciation. In cases for which the sums of the rankings are tied, companies are ranked by revenue growth rate. Three-year annualized growth rate for revenue and income: three-year compound growth rate based on four years of data that return a linear percent rate of growth. Restated data are used where available. In cases for which net income growth rate could not be calculated due to a negative net income value, companies are considered to be tied at the rank of 180. Revenue and Income: 2006 annual revenues and income, including extraordinary items and discontinued operations. Three-year share price appreciation: percent change in the company’s share price from July 31, 2004, to July 31, 2007. Number of employees: the number of employees reported in the most recent 10-K’s. n/m Not meaningful. 1-On Sept. 17, 2007, American Real Estate Partners changed its name to Icahn Enterprises. 2-Fiscal year ends July 31. 3-Company uses year-to-year percent change for revenue and income. 4-The company hires another firm to manage day-to-day operations. 5-Fiscal year ends Nov. 30. 6-Fiscal year ends June 30. 7-Fiscal year ends Jan. 31. 8-Fiscal year ends March 31. 9-On May 10, 2007, Glenayre Technologies Inc. changed its name to Entertainment Distribution Co. 10-Fiscal year ends Oct. 31. 11-Fiscal year ends Aug. 31. 12-Company uses a two-year growth rate for revenues and income. 13-Fiscal year ends Feb. 28. 14-Fiscal year ends Sept. 30. 15-On July 1, 2007, The Bank of New York acquired Mellon Financial. 16-Fiscal year ends May 31. 17-A wholly owned subsidiary of W.P. Carey & Co. employs individuals who perform services for W.P. Carey.

ALPHABETICAL LISTING OF COMPANIES COMPANY RANK COMPANY RANK COMPANY RANK COMPANY RANK COMPANY RANK

AEP Industries Inc. ------90 Cablevision Systems Corp. ------96 Greenhill & Co. ------23 M&F Worldwide Corp. ------8 Polo Ralph Lauren Corp. ------30 Aéropostale Inc.------55 Celgene Corp. ------4 Hain Celestial Group Inc. ------71 Medco Health Solutions Inc. ------79 Provident Financial Services Inc. ------93 Alcoa Inc. ------78 Children’s Place Retail Stores Inc. ------15 Henry Schein Inc. ------75 Merrill Lynch & Co. ------35 Prudential Financial Inc. ------77 Alexander’s Inc. ------64 CIT Group Inc. ------85 Hess Corp. ------16 MetLife Inc. ------53 Scientific Games Corp. ------62 Alleghany Corp.------44 Coach Inc. ------10 Hudson City Bancorp Inc. ------83 Monster Worldwide Inc. ------65 Sequa Corp. ------28 AllianceBernstein Holding------3 Cognizant Technology Solutions Corp. ------2 Icahn Enterprises ------1 Moody’s Corp. ------47 Signature Bank ------17 Alpharma Inc. ------51 Comtech Telecommunications Corp. ------5 Inter Parfums Inc. ------84 Morgan Stanley ------46 Sirius Satellite Radio Inc. ------81 American Home Mortgage Investment Corp.------80 Covanta Holding Corp. ------36 Investment Technology Group Inc. ------22 Movado Group Inc. ------40 SL Green Realty Corp. ------21 Ann Taylor Stores Corp. ------99 Curtiss-Wright Corp. ------52 iStar Financial Inc. ------97 MSC Industrial Direct Co. ------45 Standard Microsystems Corp. ------58 Arrow Electronics Inc. ------31 Delta Financial Corp. ------63 ITT Corp. ------69 Nasdaq Stock Market Inc. ------43 Starwood Hotels & Resorts Worldwide Inc. ------74 Asbury Automotive Group Inc. ------48 Dover Corp. ------66 J.P. Morgan Chase & Co. ------50 National Financial Partners Corp. ------34 Steven Madden Ltd. ------41 Assurant Inc. ------60 Dow Jones & Co. ------92 Jarden Corp. ------11 Navigators Group Inc. ------20 Systemax Inc. ------24 Bank of New York Mellon Corp. ------67 Drew Industries Inc. ------37 Jefferies Group Inc. ------27 NBTY Inc. ------59 Triarc Cos. ------72 Barr Pharmaceuticals Inc. ------68 E*Trade Financial Corp. ------25 Kimco Realty Corp. ------56 Newcastle Investment Corp. ------61 Universal American Financial Corp. ------12 Bear Stearns Cos. ------42 Empire Resources Inc. ------13 Knight Capital Group Inc. ------26 News Corp. ------70 Village Super Market Inc. ------89 Becton Dickinson & Co. ------94 Entertainment Distribution Co. ------38 L-3 Communications Holdings Inc. ------33 Nu Horizons Electronics Corp. ------95 Volt Information Sciences Inc. ------88 Bel Fuse Inc. ------98 Gamco Investors Inc. ------100 Lazare Kaplan International Inc. ------82 NYMagic Inc. ------54 Vornado Realty Trust ------57 Bio-Reference Laboratories Inc. ------39 G-III Apparel Group Ltd. ------29 Lehman Brothers Holdings Inc. ------19 Overseas Shipholding Group Inc. ------18 W.P. Carey & Co. ------87 BlackRock Inc. ------9 Goldman Sachs Group Inc. ------7 Leucadia National Corp. ------14 Pall Corp. ------91 Warnaco Group Inc. ------73 C.R. Bard Inc. ------86 Gramercy Capital Corp. ------6 Lifetime Brands Inc. ------49 Phillips-Van Heusen Corp. ------32 WHX Corp. ------76

26 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 27 11/15/2007 5:39 PM Page 1

SMALL BUSINESS Web ticketer gives great performance THEATERMANIA To gain an edge, TheaterMania build word-of-mouth. seats regionally. The company also TheaterMania gets has played the service card, provid- But for all its success, Theater- does informal consulting for the- FOUNDED 1999 into baseball but still ing producers with e-mail addresses Mania hasn’t cracked the Broadway aters on matters like advertising and NUMBER OF EMPLOYEES 35 and other data about ticket buyers market, where owners—including promotion. can’t crack Broadway for free. Larger ticketers tend to The Shubert Organization, which Not all efforts have been fruitful. ANNUAL REVENUES $25 million charge for such information. owns Telecharge—not producers, The company launched a print pub- SITE VISITORS 600,000 to BY WENDY DAVIS “They allow you to know and choose ticketing agents. lication, TheaterMania.com Maga- 1 million a month communicate with your customers,” zine, in 2004, but it lasted just two n 2002, after two years in op- says Ken Davenport, who uses The- Offering advice years. Ms. Shugart says that the title AVERAGE TICKET PRICE $28 eration, TheaterMania was aterMania as the agent for his show in new york, TheaterMania main- was “a good promotional piece” but BIGGEST HIT Minor-league base- doing just fine. Every week, at Webster Hall, The Awesome 80s ly sells tickets for off-off-Broadway simply cost too much to produce. ball; sold about 200,000 tickets new subscribers signed on for Prom. He wanted to be able to e- houses of 99 seats maximum, but it for each of its teams this season the company’s free, ad-sup- mail audience members to help handles houses as large as 1,500 COMMENTS? [email protected] Iported online service that offers list- ings and discounts, as well as a newsletter about current shows. But then, a regular advertiser—a small Manhattan theater compa- ny—asked if the site would handle ticketing, too. Intrigued, Theater- Mania President Gretchen Shugart asked other theater proprietors if they would be interested and began exploring the costs of expanding into e-commerce. About half of TheaterMania’s estimated revenue of $25 million now comes from ticketing, primari- ly for smaller venues.The other half is generated by online ads that ac- company the listings and reviews and that are in e-mail blasts that go out to 400,000 subscribers every two weeks. “Ticketing is growing very quickly, so over time we think that will really be the largest business,” says Ms. Shugart, who has a bank- ing background. “We addressed a market need for a ticketing system.” That was the case with Perfor- name, design and related marks are trademarks of Hyatt Corporation. ©2007 All rights reserved. HYATT mance Space 122 in the East Vil- lage,which turned to TheaterMania in 2003, after rave reviews for the play Matt & Ben triggered an on- slaught of orders that threatened to overwhelm the organization’s soft- ware system. “Basically,they saved our butts on that show,” says producer Victoria Lang. In fact, PS 122 was able to sell tickets through TheaterMania the same day that Ms.Lang made the re- quest.(She was so impressed that she later joined TheaterMania’s board.) See a show, go to a game as word of such successes spread, Ms. Shugart got more stages and thought about new markets. “If firms uncover an underserved niche in one marketplace, there’s no reason they shouldn’t be able to replicate what they’re doing [else- where],” says Ira Davidson, director of the Small Business Development Center at Pace University. Theatermania now sells seats for A FORWARD-THINKING SPACE FOR YOUR FORWARD-THINKING BUSINESS. several hundred performance spots in cities nationwide, including Chicago, Los Angeles and Miami. It also branched out into sports this INTRODUCING THE CONFERENCE CENTER FOR SMALL MEETINGS AT HYATT REGENCY O’HARE. year, handling sales for three minor league baseball teams. The compa- ny currently has tickets on sale for almost 260 events and productions. Finally, a small meeting center designed to accommodate your biggest ideas. Part of a $60 million The field gets tougher as The- renovation, our new conference center features a state-of-the-art AV system, 24-hour FedEx Kinko’s aterMania expands. Big companies on site, wireless and wired Internet access throughout the conference center, ergonomic chairs, and even like Telecharge and Ticketmaster your own meeting concierge. It’s the perfect space for big ideas to grow. For more information, have your have long dominated sales for high- meeting planner contact a Hyatt Representative, call 847 696 1234 or visit hyattregencyohare.com. end venues, and it has to compete with other local shops, like San Francisco-based Vendini.

November 19, 2007 | Crain’s New York Business | 27 nb47p28_29cls.qxp 11/15/07 5:05 PM Page 28

BUSINESS MANAGEMENT BUSINESS SERVICES PUBLIC & LEGAL NOTICES Business Management Services

Cash Management Services ● Bill Payment Notice of Formation of 135 LLC. Arts. of Org. Notice of Formation of Caprock LLC. Arts. of Notice of Qualification of HFS REALTY NEW Tax & Financial Services ● Financing Assistance filed with Secy. of State of N.Y. (SSNY) on Org. filed with NY Dept. of State on 10/10/07. YORK 6, LLC. Authority filed with Secy. of (212) 631-9500 ● www.mayercpa.com 10/20/06. Office location: NY County. SSNY Office location: NY County. Secy. of State State of N.Y. (SSNY) on 9/21/07. Office designated as agent of LLC upon whom designated as agent of LLC upon whom location: NY County. LLC formed in Delaware process against it may be served. SSNY shall process against it may be served and shall (DE) on 9/12/07. SSNY designated as agent mail process to principal business location: of LLC upon whom process against it may be Cash Management & CFO Services mail process to: c/o Evenson Best LLC, 641 c/o Kramer Levin Naftalis & Frankel LLP, 1177 Ave. of the Americas, NY, NY 10011, principal served. SSNY shall mail process to: c/o CT Avenue of the Americas, NY, NY 10036, Attn: business address of the LLC. Purpose: any Corporation System, 111 8th Ave., NY, NY BUSINESS SERVICES INVESTMENT OPPORTUNITY Jay A. Neveloff. Purpose: any lawful activity. lawful activity. 10011, registered agent upon whom process may be served. DE address of LLC: 1209 $300k Raise/15% ROI Notice of Formation of Trident Communications Notice of Formation Carolyn Li Group, LLC Orange St., Wilmington, DE 19801. Arts. of for major motion picture. A-list talent LLC. Arts. of Org. filed with Secy. State of NY art. of org. filed Secy. of State NY (SSNY) Org. filed with DE Secy. of State, 401 Federal with known distributor attached. (SSNY) on 8/22/07. Office location: New York 10/3/07. Off. loc. in NY Co. SSNY designated St., Ste. 4, Dover, DE 19901. Purpose: all Greenlight funding in place, $25k County. SSNY designated as agent of LLC as agent of LLC upon whom process may be lawful purposes. units avail. Commercial & private upon whom process against it may be served. SSNY shall mail copy of process to: investors/ fund raisers welcome. served. SSNY shall mail process to: Trident Joshua A. Sabo, Esq., 40 Buckbee Rd, Troy, Notice of Formation of TODA NEW YORK Credited investors only Communications LLC, 20 West 22 St., 12th NY 12180. Purpose: Any lawful purpose. LLC, a domestic Limited Liability Company. Call Liza @ 917-509-6181 Floor, NY, NY 10010. Purpose: Any Lawful Arts. of Org. filed with the SSNY on 09/21/07. act. 905020 w.o. Notice of Qualification of Dolphin Limited Partnership III, L.P. Authority filed with Secy. Office location: New York County. SSNY has RELOCATION SERVICES of State of NY (SSNY) on 5/5/06. Office been designated as agent upon whom process NOTICE OF FORMATION of WS Tour LLC, a location: NY County. LP formed in Delaware against the LLC may be served. SSNY shall domestic Limited Liability Company. Arts. of (DE) on 1/3/06. SSNY designated as agent of mail a copy of process to: The LLC, 250 West Org. filed with the SSNY on 07/10/07. Office LP upon whom process against it may be Broadway 6th Floor, New York, NY 10013. location: New York County. SSNY designated served and shall mail process to: The LP, 156 Purpose: Any Lawful Purpose. as agent upon whom process against the LLC W. 56th St., #12C, NY, NY 10019. DE address may be served. SSNY shall mail process to: of LP: DE Corporation Organizers, Inc., 1201 NOTICE OF FORMATION OF LIMITED LIABILITY Corporation Service Company, 80 State Street, N. Market St., PO Box 1347, Wilmington, DE COMPANY. NAME: 26 EAST SECOND STREET, Albany, NY 12207. Principal business location: 19801. Name/address of genl. ptr. available LLC. Articles of Organization were filed with 260 W. 44th Street, #501, NY, NY 10036. from SSNY. Cert. of LP filed with DE Secy. the Secretary of State of New York (SSNY) Purpose: loan to touring theatrical production. of State, P.O. Box 898, Dover, DE 19903. on 09/21/07. Office location: New York County. Purpose: any lawful activity. SSNY has been designated as agent of the Name of LLC: BOLOGNA68 LLC. Articles of LLC upon whom process against it may be Org. filed NY Dept. of State 7/12/07. Office Notice of App. For Auth. for foreign LLC served. SSNY shall mail a copy of process location in NY: New York County. Secy. of named INSCAP ASSET MANAGEMENT, LLC to the LLC, c/o Nancy Chan, 252 Front Street, State of NY (SSNY) designated as agent of filed with NY Dep. of State 10/12/07; formed New York, New York 10038. Purpose: For LLC upon whom process against it may be in DE 08/01/07; NY Office, Principal Location any lawful purpose. served. SSNY shall mail a copy of process and address to which Sec. of State can mail REAL ESTATE to c/o Bologna68 LLC, 154 Attorney Street, copy of process: 230 Park Ave., 21FL, NY NOTICE OF FORMATION of Petrie Point Suite 201, New York, NY 10002. Purpose: City, NY County, NY State, 10169; NY Sec. Designs LLC. Arts. of Org. filed with Secy. any lawful activity. of State designated as agent upon whom of State of NY (SSNY) on 9/28/07. Office COMMERCIAL REAL ESTATE process against the company may be served; location: New York County. SSNY designated Notice of Qualification of Dyn Marine Services Office maintained in Juris. of Org. The as agent of LLC upon whom process against of Virginia LLC. Authority filed with NY Dept. Corporation Trust Company, 1209 Orange St., it may be served. SSNY shall mail process of State on 10/10/07. Office location: NY Wilmington, DE 19801; Art. of Org. filed with to: 140 Sullivan Street, #6, NY, NY 10012. County. LLC formed in Virginia (VA) on DE Sec. of State 401 Federal St., Ste. 4, Dover, Principal business location: 140 Sullivan 2/8/05. NY Secy. of State designated as agent DE 19901; Purpose: any lawful activity. Street, #6, NY, NY 10012. Purpose: Any of LLC upon whom process against it may be lawful act. served and shall mail process to: c/o CT Notice of Formation of Lankenau Limited Corporation System, 111 8th Ave., NY, NY Partnership. Cert. filed with NY Dept. of State Notice of Conversion of Rainier Northwest 10011, registered agent upon whom process on 6/1/2007. Office location: NY County. Secy. JFK Associates, a partnership, to Rainier may be served. VA and principal business of State designated as agent of LP upon Northwest – JFK L.L.C. Certificate filed with address: 3190 Fairview Park Dr., Ste. 700, whom process against it may be served and Secy. of State of NY (SSNY) on 9/21/07. Falls Church, VA 22042. Arts. of Org. filed shall mail process to: 20 W. 86 th St., Apt. Office location: NY County. SSNY designated with VA Secy. of the Commonwealth, 1300 10A, NY, NY 10024. Name/address of each as agent of LLC upon whom process against E. Main St., Richmond, VA 23218. Purpose: genl. ptr. available from Secy. of State. Term: it may be served. SSNY shall mail process to: any lawful activity. until 5/22/2057. Purpose: any lawful activity. The LLC, c/o Rainier Northwest Development Corporation,1411 Fourth Ave., Ste. 901, Seattle, Notice of Conversion of 148 West 10th Street 44 WALKER LLC, a domestic Limited Liability WA 98101. Purpose: any lawful activities. Company, a partnership, to 148 West 10th Company (LLC) filed with the Sec of State of Street Associates, LLC. Certificate filed with NY (SSNY) on 8/17/07. NY Office location: Notice of Qualification of GAIA USA, LLC. Secy. of State of NY (SSNY) on 9/13/07. NEW YORK County. SSNY is designated as Authority filed with Secy. of State of N.Y. Office location: NY County. SSNY designated agent upon whom process against the LLC (SSNY) on 9/27/07. Office location: NY as agent of LLC upon whom process against may be served. SSNY shall mail a copy of County. LLC formed in New Jersey (NJ) on it may be served. SSNY shall mail process to any process against the LLC served upon 5/31/07. SSNY designated as agent of LLC principal business location: c/o The Brodsky him/her to THE LLC, ATTN: MICHAEL MARVISI, upon whom process against it may be served. Organization, LLC, 400 W. 59th St., NY, NY 332 CANAL ST., 2ND FLR., NY, NY 10013. SSNY shall mail process to the principal office 10019. Purpose: any lawful activity. General purposes. address/principal business location of LLC: Mr. Martin Manuel, 400 Madison Ave., NY, NY Notice of Formation of BNS Varick St. LLC. Notice of formation of Ng’s Kampiry, LLC, 10017, registered agent upon whom process Arts. of Org. filed with Secy. of State of NY a limited liability company. Articles of may be served. Cert. of Form. filed with NJ (SSNY) on 9/27/07. Office location: NY Co. Organization filed with the Secy of the State of Dept. of Revenue, 225 West State Street, SSNY designated as agent of LLC upon whom New York (SSNY) on 09/14/07. Office located Trenton, NJ 08625. Purpose: any lawful activity. process against it may be served. SSNY shall in NY County. SSNY has been designated for mail process to: c/o Paracorp Inc., 2804 service of process. SSNY shall mail a copy of INVESTMENT OPPORTUNITY Gateway Oaks Dr., Ste #200, Sacramento, CA any process served against the LLC to c/o Coming Up 95833-3509. Purpose: any lawful activities. THE LLC, 159 West 25th Street – 6FL New Own Championship Golf Course in the Sun York, NY 10001. Purpose: any lawful purpose. on the Calendar Notice of Formation of Nastasi Maintenance & 4-Star Highly Profitable Course in Central FL Construction LLC. Arts. of Org. filed with Secy. Notice of Qualification of SoHo Core Portfolio • 11% Cap Rate w 50K Rounds/yr every yr of State of NY (SSNY) on 2/10/05. Office II, LLC, App. for Auth. filed Sec'y of State • Good 1031 replacement property location: NY County. SSNY designated as (SSNY) 8/14/07. Office location: NY County. • Convenient Location on I-95 Close to Orlando November 26th agent of LLC upon whom process against LLC org. in DE 8/10/07. SSNY designated as • Gary Player design with full Golf Academy it may be served and shall mail process to: agent of LLC upon whom process against it Privately Owned Albin & Richman, 600 Old Country Rd., Garden may be served. SSNY shall mail copy of $6,950,000; Call Bill Sawyer 203-625-0900 City, NY 11530. Purpose: any lawful activity. process to Attn: Matthew B. Siano, Esq., 379 Companies W. Broadway, 5th Fl., NY, NY 10012. DE office OFFICE SPACE Notice of Formation of Datafloat, LLC, Art. of address: c/o CSC, 2711 Centerville Rd., Org. filed Sec'y of State (SSNY) 9/17/04. Wilmington, DE 19808. Cert. of Form. on file: Office location: NY County. SSNY designated SSDE, Townsend Bldg., Dover, DE 19901. December 3rd as agent of LLC upon whom process against 212-947-5500 Purpose: any lawful activities. Real Estate it may be served. SSNY shall mail copy of FOR ALL OFFICE, RETAIL & LOFT SPACES process to Ben Clarke, 26 Broadway, Ste. 745, Notice of Qualification of Urban Retail Properties New York City, Brooklyn, Queens NY, NY 10006, the Reg. Agt. upon whom proc. Co., LLC. Authority filed with NY Dept. of 500–50,000 SF may be served. Purpose: any lawful activities. State on 10/15/07. Office location: NY County. UNDER MARKET SUBLETS – NO FEE! December 10th Principal business address: 900 N. Michigan Search our listings @ www.midcomre.com Notice of Conversion of 231-235 West 13th Ave., Chicago, IL 60611. LLC formed in Call Paul 212 947-5500 x 100 Small Business Street Associates, a partnership, to 231-235 Delaware (DE) on 8/29/07. NY Secy. of State Name of LLC: Bismarck Furnishings & West 13th Street Associates, LLC. Certificate designated as agent of LLC upon whom Decorative Objects, LLC. Arts. of Org. filed Prime Murray Hill filed with Secy. of State of NY (SSNY) on process against it may be served and shall NY Dept. of State 9/27/07. County off. loc.: 9/25/07. Office location: NY County. SSNY mail process to: c/o CT Corporation System, New York Cty. Principal bus. loc.: 270 (Grand Central Area) To place your classified designated as agent of LLC upon whom 111 8th Ave., NY, NY 10011, registered agent Lafayette Street, NY, NY 10012. Sec. of State 39th & Park Elevator Professional process against it may be served. SSNY upon whom process may be served. DE designated as agent of LLC upon whom Townhouse Ground Floor & ad call John Gallagher shall mail process to principal business address of LLC: 1209 Orange St., Wilmington, process against it may be served. Sec. of Garden 1600 sf location: c/o The Brodsky Organization, LLC, DE 19801. Arts. of Org. filed with DE Secy. of State shall mail a copy of process to 270 4th floor also available @ 212-210-0189 400 W. 59th St., NY, NY 10019. Purpose: State, 401 Federal St., Dover, DE 19901. Lafayette Street, Ste. 1302, NY, NY 10012. Owner 516-569-6700 any lawful activity. Purpose: any lawful activity. Purpose: any lawful activity.

28 | Crain’s New York Business | November 19, 2007 nb47p28_29cls.qxp 11/15/07 1:13 PM Page 29

PUBLIC & LEGAL NOTICES

212 EAST 85TH STREET, LLC. Articles of Org. Notice of Qualification of PDH Partners, LLC. Notice of Qualification of MidOcean III Private filed NY Sec. of State (SSNY) 09/21/07. Office Authority filed with Secy. of State of N.Y. Investors, LLC. Authority filed with Secy. of in New York Co. SSNY desig. agent of LLC (SSNY) on 10/23/07. Office location: NY State of N.Y. (SSNY) on 10/15/07. Office upon whom process may be served. SSNY County. LLC formed in Delaware (DE) on location: NY County. LLC formed in Delaware shall mail copy of process to JAS Management 10/19/07. SSNY designated as agent of LLC (DE) on 9/26/07. SSNY designated as agent Co., Inc., 216 E. 85th St., Ste. 1A, NY, NY upon whom process against it may be served. of LLC upon whom process against it may be 10028. Purpose: Any lawful purpose. SSNY shall mail process to principal business served. SSNY shall mail process to: c/o location: Peter Friedman, c/o Friedman Corporation Service Company (CSC), 80 Notice of Qualification of Hawkes AP, LLC. Equities, LLC, 750 Lexington Ave., 26th Fl., NY, State St., Albany, NY 12207. DE address of Authority filed with NY Dept. of State on NY 10022. DE address of LLC: Corporation LLC: c/o CSC, 2711 Centerville Road, Ste. 10/9/07. Office location: NY County. LLC Service Company, 2711 Centerville Road, Ste. 400, Wilmington, DE 19808. Arts. of Org. formed in California (CA) on 9/12/01. NY 400, Wilmington, DE 19808. Arts. of Org. filed with DE Secy. of State, Townsend Bldg., Secy. of State designated as agent of LLC filed with DE Secy. of State, 401 Federal St., Dover, DE 19901. Purpose: any lawful activity. upon whom process against it may be served Ste. 4, Dover, DE 19901. Purpose: real estate and shall mail process to: 11726 San Vicente investments and operations. Notice of Formation of LATE NIGHT PROPERTY Blvd., Ste. 300, Los Angeles, CA 90049, Attn: LLC. Arts. of Org. filed with Secy. of State Llewellyn Werner. CA and principal business Notice of Formation of Ardmore Interiors, of N.Y. (SSNY) on 8/15/07. Office location: address: 11150 Santa Monica Blvd., Ste. 400, LLC. Arts. of Org. filed with Secy. of State NY County. SSNY designated as agent of Los Angeles, CA 90025, Attn:Marc S. Primiani. of NY (SSNY) on 6/14/07. Office location: LLC upon whom process against it may be Arts. of Org. filed with CA Secy. of State, 1500 Notice of Qualification of Blue Source, LLC. NY Co. SSNY designated as agent of LLC served. SSNY shall mail process to: The 11th St., Sacramento, CA 95814. Purpose: Authority filed with NY Dept. of State on upon whom process against it may be LLC, 145 Hudson St., Unit Ground B, NY, any lawful activity. 10/15/07. Office location: NY County. LLC served. SSNY shall mail process to: The NY 10013. Purpose: any lawful activity. formed in Utah (UT) on 5/7/01. NY Secy. of LLC, 35 West 110th St., Ste 4K, NY, NY Notice of Formation of Stelle By Gilber State designated as agent of LLC upon whom 10026. For any lawful purpose. Notice of Formation of Wentworth Hotel, LLC. Gilmore, LLC. Arts. of Org. filed with Secy. process against it may be served and shall Arts. of Org. filed with Secy. of State of N.Y. of State of NY (SSNY) on 9/11/07. Office mail process to: c/o CT Corporation System, Notice of Qualification of 15 Cliff L.L.C. (SSNY) on 10/19/07. Office location: NY location: NY Co. SSNY designated as agent 111 8th Ave., NY, NY 10011, registered agent Application for Authority filed with Secy. County. SSNY designated as agent of LLC of LLC upon whom process against it may upon whom process may be served. UT and of State of N.Y. (SSNY) on 4/30/02. Office upon whom process against it may be served. be served. SSNY shall mail process to: The principal business address: 3165 E. Millrock location: NY County. Principal business location: SSNY shall mail process to: c/o Kramer Levin LLC, 307 West 38th St., Ste 804, Ny, NY Dr., Ste. 340, Holladay, UT 84121. Arts. of 290 Park Avenue South, 14th Fl., NY, NY Naftalis & Frankel LLP, 1177 Avenue of the 10018. Purpose: any lawful activities. Org. filed with UT Secy. of State, 160 E. 300 10010. LLC formed in Delaware (DE) on Americas, NY, NY 10036, Attn: Michael Fein. South, Salt Lake City, UT 84111. Purpose: 4/29/02. SSNY designated as agent of LLC Purpose: any lawful activity. any lawful activity. upon whom process against it may be served. SSNY shall mail process to: 290 Park Avenue Notice of Qualification of Capricorn Advisers, Notice of Qualification of Richland Towers South, NY, NY 10010, Attn: General Counsel. LLC. Authority filed with NY Dept. of State NYC Distributed, LLC. Authority filed with DE address of LLC: c/o CSC, 2711 Centerville on 10/5/07. Office location: NY County. LLC NY Dept. of State on 10/2/07. Office location: Road, Ste. 400, Wilmington, DE 19808. formed in Delaware (DE) on 9/28/07. NY NY County. Principal business address: 400 Certificate of Formation filed with DE Secy. of Secy. of State designated as agent of LLC N. Ashley Dr., Ste. 3010, Tampa, FL 33602. State, Loockerman & Federal St., Dover, DE upon whom process against it may be served LLC formed in Delaware (DE) on 3/10/05. 19901. Purpose: any lawful activity. and shall mail process to the principal business NY Secy. of State designated as agent of address of the LLC: 250 University Ave., LLC upon whom process against it may be Notice of Qualification of Chelsea Hotel Ste. 300, Palo Alto, CA 94301. DE address served and shall mail process to: CorpDirect Associates, L.L.C. Authority filed with NY of LLC: c/o National Corporate Research, Agents, Inc. (CDAI), 225 W. 34th St., Ste. Dept. of State on 10/16/07. Office location: Ltd., 615 S. DuPont Hwy., Dover, DE 19901. 910, NY, NY 10122. DE address of LLC: NY County. Principal business address: 2901 Cert. of Form. filed with DE Secy. of State, CDAI, 615 S. DuPont Hwy., Dover, DE 19901. Butterfield Rd., Oak Brook, IL 60523. LLC 401 Federal St., Ste. 4, Dover, DE 19901. Arts. of Org. filed with DE Secy. of State, formed in Delaware (DE) on 10/11/07. NY Purpose: any lawful activity. 401 Federal St., Ste. 4, Dover, DE 19901. Secy. of State designated as agent of LLC Purpose: any lawful activity. upon whom process against it may be served Notice of Formation of Rossi Living LLC. Arts. and shall mail process to: c/o CT Corporation of Org. filed with Secy. of State of N.Y. (SSNY) Notice of Formation of Tango Realty NY System, 111 8th Ave., NY, NY 10011, registered on 10/15/07. Office location: NY County. SSNY LLC. Arts. of Org. filed with Secy. of State agent upon whom process may be served. DE designated as agent of LLC upon whom of N.Y. (SSNY) on 10/16/07. Office location: address of LLC: 1209 Orange St., Wilmington, process against it may be served. SSNY shall NY County. SSNY designated as agent of DE 19801. Arts. of Org. filed with DE Secy. of mail process to: Marco Rossi,1623 Third LLC upon whom process against it may be State, 401 Federal St., Dover, DE 19901. Avenue, Apt. 33J, NY, NY 10128. Purpose: served. SSNY shall mail process to: 706 W. Purpose: any lawful activity. any lawful activity. 180th St., Ste. #1, NY, NY 10033. Purpose: any lawful activity. HIT THE GROUND RUNNING IN THE NEW

Notice of Qualification of Gemini 305 West YEAR! 39th Street H, LLC. Authority filed with Secy. Notice of Qualification of WMT Investors LLC. of State of NY (SSNY) on 10/ 15/07. Office Authority filed with Secy. of State of N.Y. location: NY County. LLC formed in Delaware (SSNY) on 9/21/07. Office location: NY (DE) on 10/9/07. SSNY designated as agent Advertise in Crain’s County. LLC formed in Delaware (DE) on of LLC upon whom process against it may be 9/12/07. SSNY designated as agent of LLC served. SSNY shall mail process to: William Most Popular issue upon whom process against it may be served. T. Obeid, 200 Park Ave South, Ste 1305, NY, SSNY shall mail process to principal business NY, 10003, also registered agent. Address to of the Year, Crain’s location: One Penn Plaza, Ste. 2805, NY, NY be maintained in DE: 16192 Coastal Hwy, 10119. DE address of LLC: 2711 Centerville Lewes, DE 19958. Arts. of Org. filed with DE 2008 Book of Road, Ste. 400, Wilmington, DE 19808. Secy. Of State, 401 Federal St., Ste 4., Dover, Arts. of Org. filed with DE Secy. of State, DE 19901. Purpose: any lawful activities. P.O. Box 898, Dover, DE 19903. Purpose: Lists! any lawful activity. Notice of Qualification of AG CNG LLC. Authority filed with Secy. of State of N.Y. Notice of Formation of HUSA Go Grid Holding, (SSNY) on 10/31/07. Office location: NY LLC. Arts. of Org. filed with NY Dept. of State County. Principal business location: 245 Park Notice is hereby given that a license (#TBA) on 10/3/07. Office location: NY County. Secy. Ave., 26th Fl., NY, NY 10167. LLC formed in for Beer & Wine has been applied for by of State designated as agent of LLC upon Delaware (DE) on 11/3/03. SSNY designated Cafe Bohm Inc, at retail, in a Restaurant, whom process against it may be served and as agent of LLC upon whom process against Reach 236,000 Readers! under the ABC Law, at 45 W. 8 St. NY, NY shall mail process to the principal business it may be served. SSNY shall mail process to: 10011 for on-premises consumption. address of the LLC: c/o Gotham Organization, c/o Corporation Service Co. (CSC), 80 State Inc., 1010 Ave. of the Americas, 4th Fl., NY, St., Albany, NY 12207. DE address of LLC: c/o Notice of Qualification of 100 W 92 Holdings, NY 10018, Attn: David Pickett. Purpose: any CSC, 2711 Centerville Rd., Wilmington, DE LLC. Authority filed with Secy. of State of N.Y. lawful activity. 19808. Arts. of Org. filed with DE Secy. of To Advertise Call John Gallagher (SSNY) on 10/15/07. Office location: NY County. State, Townsend Bldg., Dover, DE 19901. LLC formed in Delaware (DE) on 3/14/07. Notice of Formation of Trummer Bar Holdings Purpose: any lawful activity. 212-210-0189 SSNY designated as agent of LLC upon whom LLC. Arts. Of Org. filed with Sec’y. of State process against it may be served. SSNY shall of NY (SSNY) on 10/16/07. Office location: Notice of Formation of BANCROFT NY LLC. mail process to principal business location: New York Country. SSNY designated as agent Arts. of Org. filed with Secy. of State of N.Y. c/o Claremont Parking LLC, 70 E. 55th St., 7th of LLC upon whom process against it may (SSNY)on 10/29/07. Office location: NY County. Fl., NY, NY 10022. DE address of LLC: 2711 be served. SSNY shall mail process to c/o SSNY designated as agent of LLC upon whom Centerville Road, Ste. 400, Wilmington, DE Trummer Bar Holdings LLC, 172 Delancey process against it may be served. SSNY shall 19808. Arts. of Org. filed with DE Secy. of Street, #5D, NY, NY 10002. Princ. Bus. loc: mail process to: Territ Management, Inc., State, 401 Federal St., Ste. 4, Dover, DE 19901. 172 Delancey Street, #5D, NY, NY 10002. 1776 Broadway, Ste. 1700, NY, NY 10019. Purpose: any lawful activity. Purpose: Any lawful act. Purpose: any lawful activity.

November 19, 2007 | Crain’s New York Business | 29 CNYB 11-19-07 A 30 11/15/2007 7:55 PM Page 1

AOL Black Voices pumping up volume

Last month, the former Black a fraction of those nationwide formerly Black Voice’s general man- Site’s director looks Enterprise.com executive became users: It drew 2.5 million unique ager, and Nicholas Charles, previ- to expand content, director of AOL Black Voices,over- visitors in September, according to ously editor in chief, have joined seeing the African-American news comScore Media Metrix. Never- BET.Mr.Muhammad has assumed increase visitors; and entertainment site’s editorial theless, the site is edging out its ma- their responsibilities. content,business strategy,new part- jor rivals. BET.com, the entertain- rivals on his heels nerships and expansion. ment and news Web site operated by Eyeball advantage “I want to extend our lead and ex- Viacom’s BET Network, drew 2.3 of course, the site that lures the BY AMANDA FUNG pand our coverage on news and is- million unique visitors that month. most eyeballs has the advantage sues that are relevant to the black BlackPlanet.com, a social network- with advertisers looking to target while aol black voices is one of community,” says Mr. Muhammad, ing site for African-Americans, African-Americans. That group the top Web destinations for Af- a former journalist, who has his eye lured 2.2 million. will spend $1.1 trillion in 2011, up rican-Americans, Tariq Muham- on the 20 million African-American These competitors are trying from $799 billion in 2006, accord- mad believes that there is room for Internet users in the United States. hard to catch up, however—largely ing to projections from the Selig LISTEN UP: Tariq Muhammad has 20 million improvement. AOL Black Voices attracts only by stealing talent. Both Janet Rolle, Center for Economic Growth. African-American Internet users in his sights.

“Successfully appealing to Afri- can-American consumers online requires understanding them as a separate consumer group,” says Michael Chapman, editorial direc- tor of research firm eMarketer. Mr. Muhammad has spent more than a decade figuring out what African-American audiences want. In the late 1990s,he was the tech ed- itor for Black Enterprise magazine, a niche business and personal finance publication. During the dot-com Sites must see African-Americans as a separate consumer group

boom, he left the publishing world to satisfy an entrepreneurial itch. In 2000, Mr. Muhammad co- founded iClique, a company syn- dicating online content that be- came a casualty of the Internet collapse. Picking up the pieces, he returned to Black Enterprise as a Web consultant. He was later hired as director of interactive media at BlackEnterprise.com,which he had helped create during his early days at the magazine. “Tariq was definitely a great fit to head up AOL Black Voices, bring- ing more than a decade of advertis- ing and content expertise to an al- ready talented team,” says Mike Rich, senior vice president of AOL Music, Moviefone, Television and MAGICAL PC Black Voices. See you later, CNN mr. muhammad hopes to beef up MANAGEMENT. Black Voices’ content, making it an even better source of online news and information for African-Amer- icans. Ideally, he says, Black Voices will be so comprehensive that users will no longer have to go to sites like CNN.com for news. But he ac- REMOTE PC SUPPORT GRANTS EVERY I.T. WISH. knowledges that the company has With Intel® vProTM processor technology, your IT manager or IT service provider can diagnose and repair work to do. “We do really well in entertain- PCs remotely, even when they’re off or the operating system is down.* So you can get back to what’s intel.com/smallbusiness ment coverage,”he says.To enhance really important: managing your business. Learn how easy it can be at the site, he adds, “we could empha- size news—not breaking stories,but Intel® AMT requires the computer system to have an enabled chipset, network hardware and software, a connection with a power source and a corporate network connection. Setup requires configuration and may require scripting with the management console or further integration into existing security frameworks, and modifications or implementation of new business processes. For more information, giving people analysis of the story see http://www.intel.com/technology/manage/iamt ©2007 Intel Corporation. Intel, the Intel logo and Intel vPro are trademarks of Intel Corporation in the U.S. and other countries. All rights reserved. and how it affects them as African- Americans.”

COMMENTS? [email protected]

30 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 31 11/15/2007 8:39 PM Page 1

BUSINESS TABLE TALK Tavern on the Green has the wow factor, but food and service—not so much PAGE 35 buck ennis

GOTHAM GIGS

TRUE BLUE: Rachel On parade Hitchcock is reluctant ROBIN HALL to tell supervisors , 60, has run the that she needs to get Macy’s Thanksgiving Day home to take care of Parade since 2001. He also her dog, Beasley. organizes the Macy’s 4th of July Fireworks and the Macy’s Flower Show, but the parade is his biggest event. LAY OF THE LAND A former copywriter and creative director, Mr. Hall rejoined Macy’s for the third time— this time as parade executive producer—on the night before Thanksgiving in 2000. Though he had worked for the store before, he had never been involved with any of its large-scale events. After accepting the job offer, Mr. Hall walked the parade route from West 77th Street to Herald Square to get a feel for his new position. “I must say that I was terrified,” he recalls. “I had not thought about how they did all of this stuff.” QUICK STUDY Mr. Hall learned quickly. He now oversees four teams: the studio group, which assembles the floats; the development group, which manages marketing partnerships; the creative group, which handles music and costumes; and the operations group, which takes care of street details. “When you’re at the parade, you never think how it comes together,” says Mr. Hall. “That’s the magic of it.” NEW KIDS ON THE BLOCK Mr. Pet benefits Hall recruits 7,000 Macy’s volunteers to help out with Firms start to recognize four-legged family members the parade; 1,800 of them will

handle the balloons.This buck ennis year’s new floating characters include Shrek, Hello Kitty BY LISA FICKENSCHER and Abby Cadabby from Sesame Street. ucky marley. three days a week, the 12-year-old, charcoal-colored TURKEY DAY On standard poodle enjoys a 30-minute outing with her walker. The other THE STATS Thanksgiving, Mr. Hall two weekdays, she romps with pals at the Ritzy Canine Carriage marches at the head of the House on East 40th Street. And when her owner travels, Marley moves parade. He cuts the ribbon in in with her pet-sitter in a Fifth Avenue brownstone overlooking Cen- the opening ceremony, chats tral Park. with co-host Al Roker and of6% companies now allow walks down to West 34th For Marley, it all adds up to the perfect life. For her owner, advertising pets in the workplace, Street. Armed with a radio, he executive Cindy Scott, it adds up to bills of more than $200 a week. compared with always checks in with his No wonder that Ms. Scott was among the first to sign up when she teams periodically to make learned that her employer,TBWA\Chiat\Day, had arranged for a discount sure that all safety measures with a local dog-walking service. are in place. “We worry about safety,” Mr. Hall says. “We’re L“Given the amount of money I spend on this dog—even her haircuts cost more than mine— fixated on it.” every little saving helps,” says Ms. Scott,TBWA’s director of marketing strategy. 4%in 2003 —adrianne pasquarelli In recognition of how important animal companions are to many See PET BENEFITS Page 32 Source: Society for Human Resource Management

November 19, 2007 | Crain’s New York Business | 31 CNYB 11-19-07 A 32 11/15/2007 8:41 PM Page 1

BUSINESS LIVES Pet benefits: the new frontier THE CALL OF THE NOT-SO-WILD AFTER YEARS OF PLEADING, my Continued from Page 31 ness of pets’ importance to employ- when her 12-year-old Akita-shep- 10-year-old son, Ryan, finally employees, a growing number of ees and their families is good news herd, Targhee, needed surgery for a got his wish last year when my companies are adding pet-related for those juggling the demands of tumor. She had to take a week off husband and I adopted a 4- perks to their menu of benefits. work and pet parenthood. with short notice to give him the re- year-old West Highland Terrier. About 1% of firms nationwide Most working pet owners, quired round-the-clock care. Having grown up with cats, I foot the bill for care arrangements though, get little help. “My boss is a dog lover, so she was dubious about having a when workers travel, versus virtual- Rachel Hitchcock, a Manhat- could empathize,” Deborah says. dog, but Snowball and I have ly none just a few years ago, accord- tan-based fundraiser for the Uni- bonded in a way I never ing to the Society for Human Re- versity of Pennsylvania, rushes Staggered schedules imagined. My canine-loving source Management. home from work each targhee is a lucky pooch in an- mother-in-law was also shocked Helping workers cope evening to feed and play other way: Deborah and her hus- by my conversion. with the costs of pet care is 60 with her 3-year-old pug, band, also a psychologist, coordi- My boss might also have becoming more prevalent LARGE FIRMS Beasley. He waits for Ms. nate their schedules so that Targhee been surprised. in New York. American now offer reduced- Hitchcock by the door in never spends more than seven hours rate coverage for When Snowball got a nasty Snowball and the writer. Express, DoubleClick and veterinary care their Washington Heights alone. In addition, he gets a midday ear infection recently, our Viacom are among the apartment, where he stroll in the neighborhood with his veterinarian had only one available opening—on a Wednesday afternoon. nearly 60 large companies spends the entire day— walker, from Fetch. That meant I would need to work from home. that offer reduced-rate veterinary with the exception of a half hour As a result of their dog obliga- I don’t hesitate to tell my editor when my son is sick, but my dog? I felt coverage from VPI Pet Insurance. with his walker from A Lucky Dog. tions,the couple rarely enjoy a night like one of those overzealous pet owners who carry photos of their furry In 2000, only a handful of firms had When Ms. Hitchcock has to out during the week. friends in their wallets, right next to the pictures of their significant others. such arrangements. travel to Philadelphia for the day “We’d love to go out to dinner af- In the end, I worked from home, Snowball made a full recovery—and I’ve Some firms, including TBWA, and knows she will get home late, ter work,”Deborah says.“Our social decided that I am one of those sappy pet people after all. News Corp., Pixar and PeopleSoft, she worries about Beasley. activities are definitely limited.” —LISA FICKENSCHER have negotiated discounts with “I’ll lean on our senior managers A fortunate few have the flexi- dog-walking services. to say what time they think our bility to bring their pets to the meeting will end,though I try not to office. Jon Paul Buchmeyer, who Furry dependents tell them why I’m asking,” she says. owns public relations firm Tentpole Ms. Scott was able to do the that she can spend more quality “we anticipate that in the future, Most small firms don’t have for- NY, does so at least once a month. same with Marley before she was time with Marley. employers will pay a portion of the mal policies but are often support- His 4-year-old bichon frise, Frida, transferred to Manhattan from Los “Everyone knows that she is the cost [of pet care],” says Paul Mann, ive of pet owners’ needs. trots freely around the small Angeles 18 months ago. Employees dog that runs my life,” Ms. Scott chief executive of Fetch, which of- Deborah, a psychologist at a Chelsea space, greeting his col- there are allowed to bring well-be- says. “But occasionally you do get fers services in 34 states. “Pets have clinic in Manhattan who requested leagues. haved dogs into the office. the person who says, ‘Get a life.’ ” become like kids.” anonymity because of the nature of “Frida brightens everyone’s day,” But Ms. Scott now manages to Companies’ newfound aware- her work, found that out a year ago, Mr. Buchmeyer says. work from home most Fridays so COMMENTS? [email protected] OUR TRAINS STILL LET OFF 16 9 DAILY DAILY DEPARTURES DEPARTURES — TO — — TO — WASHINGTON, DC* BOSTON*

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32 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 33 11/15/2007 8:43 PM Page 1

BUSINESS LIVES CORPORATE LADDER Stephen Yee Publishing experiment Scientific American’s spected but that has never done a particularly good job of raising its PERSONNEL FILE new president brings profile. The executive will be spending MAGAZINE Scientific American media savvy to brand- his time getting the sales,marketing TITLE President and editorial divisions to find new expansion effort opportunities for building reader- AGE 47 ship and revenue.He will also deter- RÉSUMÉ Global marketing chief, BY MATTHEW FLAMM mine which elements of the Scientif- Reuters Media; general manager, ic American franchise can best be Moviefone and AOL Movies tephen yee,the new presi- adapted to the Web. dent of Scientific American, MANAGEMENT STYLE Open comes to his job highly rec- Proving relevance and direct ommended and well-quali- overall, Mr. Yee will be responsi- SPEAKS Mandarin and French fied, but not in ways one ble for making the case that Scientif- Smight expect of an executive chosen ic American is more relevant than to lead such a prestigious magazine. ever. copies guaranteed to advertisers, He has no background in sci- “If you look at the California 3%, to 575,000 copies. ence, unless you count the micro- wild fires, or the drop in water levels Ad pages were up 12% through scope he played with as a child and in the Great Lakes—these are issues September,and ad revenue grew the fact that his father started his ca- that affect daily life,” he says. “We 18%, to $25 million, according to reer as a chemist. help people figure out the science Publishers Information Bureau. Mr. Yee also has no experience behind [public] policy.” His marketing experience wasn’t with magazines. He most recently Mr. Yee succeeds Gretchen the only thing that made Mr.Yee the headed up global marketing for Teichgraber, who left in the spring. most suitable person for the job. He

Reuters Media. Scientific American has already has a reputation for working well buck ennis Before that, he helped build begun extending its reach. Its Web with others. Moviefone and AOL Movies. He site is relaunching this month to tar- “He has always built extraordi- American through a difficult period marketing sensibility to connect also worked on digital strategy at get a wider audience,and the title it- nary teams,” says Janet Scardino, for print. A lack of experience with Scientific American with a new and Sony Online Entertainment and self is seeing improved advertising president and chief marketing offi- magazines was beside the point. broader audience,” says Brian Na- launched products, like the Ghost- and circulation numbers. cer of The Knot, who hired Mr. Yee pack, president of Macmillan and writer show,books and CD-ROMs, Single-copy sales were up 13% in at Reuters. Digital native chairman of the magazine. “He un- at Children’s Television Workshop. the first half of 2007, according to Most of all, he struck executives “we were looking specifically for derstands that that’s what any media Mr. Yee is once again charged the Audit Bureau of Circulations. at Macmillan—the magazine’s par- someone who was a digital native, property is about.” with expanding a global media Scientific American recently raised its ent company—as the candidate someone fundamentally entrepre- brand—one that’s profitable and re- rate base, which is the number of best-qualified to lead Scientific neurial and someone who had the COMMENTS? [email protected]

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November 19, 2007 | Crain’s New York Business | 33 CNYB 11-19-07 A 34 11/15/2007 8:45 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING ADVERTISING & COMMUNICATIONS FINANCE & INSURANCE Accenture: Cathinka Wahlstrom, 41, was Euro RSCG Worldwide: Andrew Benett, 36, AXA Equitable Life Insurance Co.: Kevin HOT JOBS promoted to managing partner, New was promoted to co-president and Molloy, 36, was promoted to senior vice York metro, and continues as senior continues as global chief strategy officer. president, distribution finance, from vice executive, financial services. Jeff Brooks, 37, was promoted to co- president, distribution finance. KPMG: Jennifer Anderson, 34, was president. He had been chief executive Commercial Finance Association: Andrej WANTED: DIRECTOR OF DEVELOPMENT promoted to partner from senior of Euro RSCG 4D. Suskavcevic, 39, was appointed chief manager. Gibbs & Soell Inc.: Roger Ardan, 41, executive. He had been vice president, ORGANIZATION International Women’s Health Coalition Eugene Chan, 38, was promoted to joined as vice president and head of the operations, at Financial Executives JOB DESCRIPTION Oversee budget and manage all fundraising partner from senior manager. professional-financial services group. He International. Maureen Evers-Willox, 36, was promoted had been senior vice president and head Brian P.Cove, 45, was promoted to chief activities to partner from senior manager. of legal and professional services operating officer from deputy executive MOST IMPORTANT TASK Achieve 2010 budget target of $10 million David Farber, 33, was promoted to practices at Edelman. director. partner from senior manager. Linkstorm: Scott Kolber, 49, was promoted Guy Carpenter & Co.: David Rains,42, CREDENTIALS NEEDED 10-plus years of fundraising experience in an Kroll: Jed Davis, 46, has joined as to senior vice president of business was appointed managing director and U.S. entrepreneurial setting; outstanding communication skills managing director. He was formerly an development from vice president of sales. practice leader. He had been vice president SALARY Minimum $130,000 assistant U.S. attorney in Brooklyn. Scott Waxenberg, 44, joined as vice of sales at Transamerica Reinsurance. Marks Paneth & Shron: Sharon Sabba president of sales. He had been sales MRU Holdings Inc.: John Derham, 41, RECRUITER Joyce Munn, Global Nonprofit Network Fierstein, 48, was promoted to partner director, Eastern region, at Tribal Fusion. joined as chief marketing officer. He had from coordinating director, litigation been chief marketing officer at Advanta DOWNSIDE Having to attain ambitious goal in a competitive fundraising services group. APPAREL & RETAIL Bank Corp. environment Joseph J. Kanjamala, 45, was promoted to Brooks Brothers: Diane Hamilton, 49, UPSIDE Opportunity to work for a prominent nonprofit partner, nonprofit industry group, from joined as president and chief operating HIGH TECH & NEW MEDIA senior audit manager, nonprofit industry officer, a new position. She had been Eyeblaster: Sarit Firon, 41, joined as This is a new post at IWHC. The 23-year-old Manhattan group promotes group. with the Lighthouse Retail Group, chief financial officer. She had been and protects the sexual and reproductive health and rights of women Protiviti Inc.: Rocco Grillo, 40, was which she co-founded. chief financial officer and vice president worldwide. It has a $6 million budget; donors include private founda- promoted to managing director from of finance at Olive Software. tions, United Nations agencies and European governments. director. ARCHITECTURE & DESIGN Motionbox: Liz Hughes, 46, joined as vice UHY Advisors: Wayne Hoeberlein, 55, The New York Botanical Garden: Frank president of business development. She —AMANDA FUNG joined as managing director. He was Genese, 48, joined as vice president, had been vice president of strategic formerly a managing director at Aon capital projects. He had been a director, accounts at Iconoculture Inc. Consulting. at the New York Institute of Technology. Real-Time Technology Solutions Inc.:

Lauren Medway, 31, joined as director of Time Inc. marketing. She had been assistant Faith & Values Media: Robert N. director of marketing and Thomson, 63, was appointed executive communications at American vice president and chief operating University. officer, national interfaith cable Tacoda: Khan Smith, 33, was promoted coalition. He had been executive to chief privacy officer from vice chairman of subsidiary Lightworks president, product management. Enterprises Inc. Gemstar-TV Guide International Inc.: LAW Tucker Snedeker, 34, was appointed Baker & McKenzie: Sigurd Ansgar executive director, mobile entertainment Get access to Sorenson, 46, joined as partner. He had group, a new position. He had been a been counsel at Clifford Chance. vice president at Bluestreak Technology. Curtis Mallet-Prevost Colt & Mosle: NBC Universal: Ian Trombley,36,was Thousands of building products! Andrea K. Stimmel, 53, joined as business promoted to executive vice president development director, a new position. from senior vice president, broadcast She had been principal and director of operations group. marketing and communications at BDO SpiralFrog Inc.: Jennifer Link, 30, joined Seidman. as vice president of licensing. She had If you need information on building products for your Foley & Lardner: Jeff Greene, 37, joined as been a director at Warner Music Group. office or facility – Reserve your set of Sweets now! partner. He was formerly partner at Tribeca Film Festival: David Kwok,29, Morgan Lewis & Bockius. was promoted to director of Manatt Phelps & Philips: Robert Graham programming from senior programmer. Gibbons, 45, joined as partner. He had Julie La’Bassiere, 36, joined as director of The 2008 Sweets will include over 1,000 completely updated product been partner at Morgan Lewis & industry relations. She had been chief Bockius. operating officer, marketing and catalogs from all types of manufacturers. All catalogs are organized by McCarter & English: Howard M. strategic partnerships at Indiein. product type, making it easy to browse and compare different products. Berkower, 49, joined as partner. He had been partner at Zukerman Gore & REAL ESTATE Brandeis. CB Richard Ellis: Annette Healey, 55, was Your order will also include the Sweets McKee Nelson: Alice F.Yurke, 45, joined promoted to senior vice president from as partner. She had been partner at first vice president. Directory, featuring full contact information Morrison & Foerster. Jason Pollen, 35, was promoted to senior and product descriptions for thousands Peckar & Abramson: Richard H. vice president from first vice president. Schwartz, 40, was promoted to partner Century 21 NY Metro: Marc Lewis, 58, of manufacturers. from special counsel. was appointed chief operating officer, Reed Smith: Christian Samay, 38, joined rentals and investment sales. He had as partner. He was formerly partner at been vice president and senior McCarter & English. managing director at Manhattan Apartments. MEDIA & ENTERTAINMENT Paul Bologna, 37, was named vice To order, call: Alloy Media + Marketing: Kent Haehl, 41, president of rentals. He had been group was appointed chief executive of leader and agent at Manhattan 1-800-442-2258 Channel One Network. He had been Apartments. executive vice president of In-Store Grubb & Ellis Co.: Stuart Siegal, 40, was You’ll get the complete Broadcasting Network. promoted to executive managing director Alpha Media Group Inc.: Lori Ann Dente, from managing director. volume set of Sweets 44, was named chief financial officer and Halstead Property: Barbara Licalzi,50, catalogs for just chief operating officer. She had been a was promoted to executive vice president vice president and assistant controller at from senior vice president. Peter Martin, 59, was promoted to EXECUTIVE PROMOTIONS executive vice president from senior vice president. $199 Crain’s lists the promotion and hiring of New York Kathleen Moosher, 46, was promoted to area senior executives on a space-available basis, executive vice president from senior vice with priority given to positions in New York City. president. The fastest way to get an announcement into The Staubach Co.: Chris Kraus, 48, was Crain’s is to submit details online by filling out the promoted to principal from senior form at www.crainsnewyork.com/submit. The managing director. Executive Moves column is also available online. Drew Saunders, 32, was promoted to Crain’s cannot confirm receipt of listings or say senior managing director from director. when they will appear. —sarah studley

34 | Crain’s New York Business | November 19, 2007 CNYB 11-19-07 A 35 11/15/2007 3:30 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape tasty, surrounded by mashed Yukon dropped petals on the table on a Gold potatoes, broccolini and return. tomato gratin. A sautéed fillet of The restaurant’s wine list is long, normally bland branzino is hand- but both a bottle of white and a glass somely accented with olive, lemon of red were off on our first pass. Bad and caper relish, and sautéed zuc- choices? No, bad wine. chini, onions and piquillo peppers. Thanksgiving and all other holi- Parmesan-crusted chicken days bring Tavern on the Green to breast has the right taste profile but mind, but I want it to be better. is dry. Similarly, goat cheese ravioli is flavorful but undercooked,as were COMMENTS? [email protected] the peas with them. Shellfish-only cioppino served with saffron-fennel aïoli might be better enjoyed if someone would bring a bowl for dis- carded shells. No one does. Fall dessert choices ($11) include an apple trio—tarte tatin, apple sor- bet and apple gelée with caramel sauce—more like apple 2.5 in my book. The real winner is crunchy peanut butter cookie-milk choco- late parfait, with dulce de leche sauce. It’s not in a parfait glass, and

buck ennis it doesn’t matter at all. SKIN-DEEP: Situated on virtually priceless real estate, the multiroomed dining complex offers an incomparable experience of Central Park. For those who like their choco- late bitter, a hazelnut chocolate Napoleon, with layers of crunchy duce. Mr. Young blends caramelized meringue and hazelnut praline for butternut squash with apple cider, added texture, hits the spot. maple essence and cassia into a com- But sour cream-mascarpone Looks aren’t forting seasonal soup. A multihued cheesecake lacks requisite sweet- terrine of heirloom beets is layered ness, and the strawberries that come with warm truffled goat cheese, and with it are not ready for prime time. heirloom tomatoes are the launch Tavern has both service and everything pad for rich, creamy burrata moz- housekeeping issues. Wait staffers zarella wrapped in prosciutto. are slow or absent when it comes to Tavern on the Green’s ing from this critic—along the way. Other first courses ($12 to $21) things like clearing empty glasses Tavern on the Green presents Mr. are beef carpaccio drizzled with and make useful appearances only site, lush design don’t Young with the whole enchilada of rich, unfiltered olive oil, framed in sporadically. Stains were visible on culinary challenges. arugula and red onion and crowned tablecloths on one visit—before the cancel out so-so food The new menu shows his keen eye with Parmesan curls. Tavern’s crab meal, that is—and wilting flowers for flavor-building with fresh pro- cake is fine and crisp,but its coleslaw and careless service companion falls flat. Main courses are hit-and-miss. ver-the-top is the Blue cheese-crusted beef fillet with A MATTER OF natural state of things crispy onions and potato gratin is a Perspective at New York’s famed lusty plateful. Lamb shank braised Tavern on the Green, in Côtes du Rhône is tender and where the installation Oof a $1.2 million mural in its Pavil- ion Room will shortly intensify the visual supersaturation. Be More The leave-no-tree-unlit hospi- Competitive tality spectacular created by the late TAVERN ON THE Warner LeRoy and now run by his GREEN Implementation of state-of-the-art daughter Jennifer scarcely needs Accounting,Distribution,CRM, more eye candy. But the major par- Central Park West (at West 67th Street) Manufacturing & Service Software ty room is being completely (212) 873-3200 wrapped by a 162-foot mural de- that will enable you to: picting Central Park. Big-space SETTING ### • Increase Productivity muralist Ron Genereux took 10,000 FOOD # photographs of the park, and a • Improve Customer Satisfaction dozen artists have been working for CUISINE American • Reduce Costs & Increase Profits M&K takes a closer look. a year to translate the master’s epic As certified public accountants and business consultants, vision into reality. WINES 260 choices, 41 by the Microsoft Dynamics NAV Tavern has always dealt in boxcar glass (Navision) & GP (Great Plains) we understand that the difference is in the details. From number - numbers. Half a million visitors a DRESS No code crunching to strategic business planning, M&K looks at your year; No.1 or 2 highest-grossing in- NOISE LEVEL Loud business and financial situation from every point of view. It’s not just dependent restaurant in the coun- about the bottom line, but how you get there. That’s the M&K Way. try; gazillions of colorful bulbs PRICE RANGE $29-$41 limning its environs to welcome in WINE MARKUP 100%-350% holiday seasons for 30 years; and dozens of crystal chandeliers adorn- CREDIT CARDS All major ing its glass-walled rooms. RESERVATIONS Recommended And more than a few chefs have HOURS Open 365 days a year; A. B. Computer Systems, Inc. attempted to oversee the brain- NY/NJ/CT – www.abcsi.com bending logistics of the kitchen and Lunch, 11:30 a.m.-3 p.m.; Marcum & Kliegman LLP myriad rooms filled with diverse ac- Dinner, 5-10:30 p.m.; Brunch, (800) 440-4082 Free Seminars & Webinars Certified Public Accountants & Consultants tivities playing out simultaneously. Sat.-Sun., 10 a.m.-3 p.m. NEW YORK The latest top toque is Brian ####= Outstanding MELVILLE www.MKLLP.com Can you guess ### 800.921.0777 Young, formerly of Mainland, = Excellent GREENWICH what this image is? Citarella and Le Bernardin.His cre- ##= Very good Email your answer to: GRAND CAYMAN dentials are impeccable, and his #= Good [email protected]. work has earned plaudits—includ-

November 19, 2007 | Crain’s New York Business | 35 Project23 10/31/07 4:22 PM Page 1

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