CNYB 03-23-09 A 1 3/20/2009 8:08 PM Page 1

INSIDE AIG’s TOP STORIES shame —Greg David’s Recession no looking for civic leaders who match for NYC don’t come private schools ® from finance Page 11 PAGE 3 Stores seek buzz boost, embrace VOL. XXV, NO. 12 WWW.CRAINSNEWYORK.COM MARCH 23-29, 2009 PRICE: $3.00 fledgling designers PAGE 3 Tenants dumping These CEO surplus space puts pressure on rents PUBLISHER pay grades PAGE 3 SPECIAL REPORT are an A+

BACK Imagine: Execs CUTS ABOVE who see bonuses CEOs who took outsize shrink even when pay reductions in 2008 they outperform SCOTT BOK FROM (PICTURED) AND SIMON BY AARON ELSTEIN BORROWS OF GREENHILL the rarest sight in corpo- The stock rose HEALTH CARE DEAD! 8% last year, rate America might be a RECESSION RIDE chief executive at a profitable but the co-CEOs chopped their pay to $5.5 million G As capital dries up and company who, in recogni- tion of tough times, takes a each from $22 million and revenue falls, hospitals are $24 million, respectively. putting projects on hold and pay cut. crying for state aid. PAGE 13 Amid extraordinary pub- lic outrage over executive NOAH G Hospital for Special GOTTDIENER bonuses at American Inter- OF DUFF & Surgery is a rare success national Group Inc.and oth- PHELPS story.What are the lessons? er bailed-out financial com- PAGE 13 panies, a handful of CEOs His total comp G Walking the tightrope of was pared by accepted reduced compen- 4%, debt collection. PAGE 17 despite sation last year in spite of revenue and earnings strong corporate perform- jumps and a stock dip of ance. In most cases, they just 3%. BUSINESS LIVES With debtors at crain’s composite image work at firms that were until BACK FROM IRAQ dia Inc. has cheated death—again! recently private partnerships EDWARD bay, Pecker turns That’s right! The man who built a or that still have the LUDWIG Veterans find wobbly empire out of weekly tabloids founder’s relatives on the OF BECTON new careers to writing AMI’s like the Enquirer, glossy celebrity title board. Such ties deter CEOs DICKINSON help their Star and health magazines Shape and from indulging their greedi- Pay was transition next chapter Men’s Fitness recently convinced the er instincts. back to whittled to company’s bondholders to take a 40% “When it comes to pay, $7.5 million civilian life BY MATTHEW FLAMM haircut—and keep the company alive! there are leaders in the busi- .PAGE 23 from $8.1 million, while net In fact, the debt restructuring, com- ness world with a sense of income surged 27% and the national enquirer won’t report pleted in late January, was only the most ethics and doing the right revenue jumped 13%. this story about its parent company, but recent last-minute rescue of AMI. Mr. thing,” says Vineeta Anand, Source: Company filings it’s true! David Pecker’s American Me- See AMI on Page 8 See RARE BUNCH on Page 8

INDEX Madoff victims flood Judaica market with treasures

IN THE MARKETS ______4 REAL ESTATE DEALS ______5 Hanukkah lamp there. CROWN JEWEL: A silver Torah crown is on First they lose their money, the block at J. Greenstein & Co. NEW YORK, NEW YORK ______6 Jonathan Greenstein, chair-

SMALL BUSINESS ______7 then their family heirlooms man of auction house J.Green- stein & Co., was receiving two cation and consignment of an- THE INSIDER ______12 or three e-mails a week from tique Judaica. CLASSIFIEDS ______18 BY HILARY POTKEWITZ people suddenly interested in By the time he received word of CORPORATE LADDER ______22 selling antique Jewish heirlooms. a set of silver cups engraved with He- EXECUTIVE MOVES ______22 sometime in january, the e-mails started com- He typically gets two or three a brew letters indicating that they were

SeeTABLE AT TALK DEADLINE ______on ______Page ______2 ______23 ing more frequently, describing an 18th-century month at his Queens-based compa- smelted from coins given out by a long- Polish silver candelabra here, an Italian bronze ny,which specializes in the authenti- See JEWISH TREASURES on Page 9 12

5 NEXT WEEK CRAIN’S UNVEILS NEW YORK’S ELECTRONIC EDITION RISING STARS NEWSPAPER 71486 01068 0 CNYB 03-23-09 A 2,3 3/20/2009 8:09 PM Page 1

PERSONAL APPEALS: Formerly homeless teens IN BRIEF Robert Tucker, Tyara Kellman (middle) and Diasia Owens make THE BELEAGUERED ART MARKET MAY BE fundraising calls for SHOWING SIGNS OF LIFE. NEW YORK’S Covenant House. annual Asian Art Week ended last Friday with the auction houses reporting strong sales. Christie’s auction of fine Chinese art from the Arthur M. Sackler collections sold 99% of its lots for a total of $10.8 million, more than double the sale’s high estimate of $5.2 million. And its fine Chinese ceramics and works of art sale hauled in $15.9 million, well over the $10.7 million high estimate. Sotheby’s two Asian art sales totaled $7.2 million, within the expected range of $6.7 million to $9.8 million. LOCAL 32BJ OF THE SERVICE EMPLOYEES INTERNATIONAL UNION IS considering buying 72 Wall St., one of the two buildings that troubled insurer AIG is attempting to sell, according to the organization’s broker, Mark Weiss, an executive vice president at Newmark buck enn Knight Frank. Last week, AIG said it is was evaluating the sale of 72 Wall St. and 70 Pine St., which are connected by a bridge, as part of its divesture strategy. Mr. Weiss says the union is exploring numerous options, including a purchase or a lease. It currently rents 300,000 square feet at 101 Sixth Ave., and its lease expires in 2011. Next month, the ASPCA will encour- age animal lovers across the country to THE PIERRE HOTEL IS GEARING UP FOR ITS hold their own fundraisers, like bake sales REOPENING IN JUNE AFTER A $100 MILLION Donors: Prepare or dog washes, for the organization. Their renovation that closed the stately property more efforts will then be documented on the as- than a year ago.The grande dame will also sociation’s Web site, giving the donors unveil two new dining venues later this their 15 minutes of fame. The ASPCA summer. Le Caprice, a celebrated eatery in hopes to raise $100,000 the first year. London, will open at the Pierre, and a cocktail for the hard sell While every little bit helps, such efforts lounge, 2 East, is being built off the Fifth may not be enough. New Yorkers gave Avenue lobby.The hotel will open with 189 more to charity in 2008 than residents of guest rooms and suites, and it says room rates other states,but this year they plan to make will begin at $895. As contributions tumble, nonprofits deeper cuts in their giving than donors in turn to creative, less costly strategies other states, according to a recent Cygnus CORRECTION Applied Research Inc. survey. fundraising costs wherever they can by Jay Sugarman was not a co-founder of real estate fund Starwood BY MIRIAM KREININ SOUCCAR Spending less Capital Group. This fact was misstated in a March 9 story on cash dropping the bells and whistles at galas, or shortfalls and other borrowing troubles at his real estate lending even scrapping big parties altogether. with that in mind, local charities are company, iStar. donors to Covenant House New York, “If we want to meet our fundraising trying to save money even as they try to the city’s largest homeless shelter for run- goals, we have to find new ways to do it,” raise it. City Harvest, which collects left- vol. xxv, no. 12, march 23, 2009—Crain’s New York Business (issn away youth, received quite a surprise this says Jo Sullivan,senior vice president of de- over food from restaurants and other 8756-789x) is published weekly, except for a combined issue 4th week of December by Crain Communications Inc., 711 Third winter when they picked up the phone. velopment at the ASPCA, which is trying kitchens and delivers it to hunger relief Ave., New York, NY 10017. Periodicals postage paid at New York, Instead of hearing the typical telemar- to raise $72 million in 2009. agencies, was able to trim its April 22 N.Y. and additional mailing offices. Postmaster: Send address keting call in search of funds, they were With fewer corporate sponsors and spring gala budget by 20%. The group changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: greeted by formerly homeless teens thank- deep-pocketed donors to lean on, some found out that another nonprofit,the Food Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, $59.79 one ing them for changing their lives and invit- nonprofits are turning to the Obama cam- Allergy Initiative, is holding a lunchtime year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2009 by Crain Communications Inc. ing them to visit the center to see what paign’s Web-based fundraising approach, fundraiser at the same venue, Cipriani, on All rights reserved. their money has accomplished. relying on small amounts from the masses. the same date. The two will share flowers Executives at the nonprofit didn’t want On March 1, the Metropolitan Coun- and other decorations. to exploit their young residents, but with “We’re definitely turning things down a donations in a free fall—Covenant House bit,” says Jilly Stephens, executive director ECONOMETER recently had to cut 15% of its $22 million WHO WILL GIVE? of City Harvest. “Even the invitation pa- budget and lay off 17 people—they need- per is thinner.” Weekly directional of the city’s economy. New Yorkers’ plans for charitable donations ed to take drastic measures. in 2009. City Harvest is also tweaking the name THE ROAR of the Fed’s printing presses drowned out of its spring gala: It’s now “An Evening critics claiming that Washington isn’t doing enough to High-impact results 1,869 survey respondents of Practical Magic” instead of “Practical  revive the economy. The Fed promised to pump $1.15 trillion worth of fresh greenbacks into the markets. the results were dramatic. Donors Anticipate no change 34.4% Magic Ball,”reflecting more somber times. who received a call from an at-risk youth The YWCA of the City of New York’s were 50% more likely to make another do- It is too soon to tell 31.3% big summer gala on June 25 is morphing

POSITIVE NEGATIVE nation and request a tour of the facilities. into a cocktail party. Since the event may

  Expect to decrease giving 20.4%  CLOUDY Getting someone in for a tour increased not have as much appeal as the traditional the likelihood of a donation an additional Expect to increase giving 13.3% sit-down dinner, the organization doubled S Y T 25%. Now Covenant House is extending its event committee to more than 50 chair- O Don’t know N 0.6% R the program by having a group of five teens people from a variety of industries. The N M U make calls once a month. Source: Cygnus Applied Research Inc. hope is that they’ll each bring a guest, Y S “We’re trying to create more personal thereby increasing the head count. relations with our donor base,” says Execu- Even so, the YWCA, which was forced tive Director Jerome Kilbane. “It’s become cil on Jewish Poverty held a “virtual gala,” to cut its $8.5 million budget by 23% this more important with the economic crisis.” where instead of going to a fancy ballroom, year, is keeping expectations low. Last 4.98% 2.53% +0.5% Not every nonprofit has teenage run- 885 participants paid $18 to make dinner year’s gala raised $160,000; this year the Average rate for a Yield on 10-year Bloomberg/ aways to pull at donors’ heartstrings. But in their own homes. They received dis- group is hoping for half that amount. 30-year fixed Treasury notes on Crain’s NY Stock mortgage last Wednesday, after Index weekly charities across the city are scrambling to counts from kosher groceries and restau- “We’re looking at it from a long-term week, near a the biggest daily change find their own creative ways to raise mon- rants and were invited to watch online a perspective this year,” says Jerome Grant, 60-year low drop since ey. With donations plummeting, no ef- mock awards ceremony with board mem- vice president for development and exter- (Freddie Mac) the ’87 crash fort—not even a bake sale—is deemed too bers making speeches. The event raised nal affairs at the YWCA. “It’s very much small.At the same time,groups are cutting around $15,000. about networking and cultivation.”

2 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 2,3 3/20/2009 8:09 PM Page 2 Lining up at elite schools

Amanda Uhry, owner of “We were expecting this applied to 12 schools,”she says.“For Fewer wealthy folks Manhattan Private School process to be easier this year the money we’re paying the pre- means it’s easier Advisors, which has about because of the recession,but school, they should have helped us 1,400 clients a year. “They it wasn’t,” says the mother, get into one school. I’m horrified by to get into prestige could charge $50,000 a who didn’t want to be iden- all of this.” K-12s, right? Wrong year and still have takers. tified because she had spo- It’s a recession-proof in- ken negatively about Trevor. Some hope for the wait-listed dustry.” “Every school we went into consultants say there’s a chance a BY MIRIAM KREININ SOUCCAR Educators say the recent said, ‘We have 450 appli- few spots will open up this summer, baby boom and the increas- SOLD OUT: Spots cants for 42 spots.’ ” when the biggest portion of the parents who can still afford New ing number of families at Dalton School are The frenzy stunned $32,000 tuition is due and some York’s exclusive private schools and staying in the city has still in high demand. many New York parents, households realize they simply can’t thought that the cutthroat admis- sharpened competition. who spent hours touring make the payment. But that will sions process might be somewhat From 2000 to 2007, the postnew york schools,writing essays about help just a fraction of the many easier this year have just received a number of children under 5 living in cuts into making any sacrifice for a their 5-year-olds and sitting through thwarted families. major shock. Manhattan rose by more than 32%, private education. nerve-wracking interviews only to In this environment, even sib- Despite the drooping Dow and according to census data. In upper- New Yorkers know that getting a be disappointed. lings of those already in certain mounting layoffs on Wall Street, middle-class neighborhoods,having child into an elite school is never A doctor whose son attends a schools—generally a shoo-in—are kindergarten admissions at such a large family has become the ulti- easy, but many thought that what prestigious preschool downtown being rejected. schools have never been more com- mate status symbol. looks like the biggest economic cri- applied to seven institutions, in- Stacey Radin, president of Cor- petitive, according to administra- sis since the Great Depression cluding Dalton, Dwight and Abra- porate Equilibrium, a leadership tors. Applications for the 2009-10 Growing families would have made these coveted ham Joshua Heschel. Her son was consultancy, says a friend applied to academic year were up at least 10%, “most of our families are having spots a bit less difficult to come by. rejected at three and wait-listed at get her son into Ethical Culture a record at most schools. Officials three children, and many are having One mother on the Upper East the rest. The doctor, who refused to Fieldston School, where her daugh- say they had to turn away about 20 four,” says Gabriella Rowe, head of Side applied to eight schools for her give her name for fear of hurting the ter is already a student.The son was kids for each kindergarten spot. In the Mandell School on the Upper daughter. Riverdale, Dalton and boy’s chances on the lists, is con- wait-listed. fact, at least 350 kids were “shut West Side, where tots listen to Columbia Grammar—the three fused about why her son—who “My friend and I were both out”—private school slang for get- opera, among other activities. “I preferred spots—turned her down. scored an impressive 99 on the Ed- shocked, [especially] considering ting rejected from every place to can’t even count the number of preg- In the end, the family got only one ucational Records Bureau entry the recession,” says Ms. Radin, which they applied—double the nant moms in our school, and most acceptance, at Trevor Day, their last test—wasn’t accepted. whose two kids also go to Fieldston. number in 2008, according to Man- of those are third children.” choice. Still, they would rather pay Adding insult to injury,adminis- “But recently I was chaperoning an hattan Private School Advisors. Education is a top priority for the roughly $30,000 tuition there trators at the preschool blame her. event, and one mother remarked “We have around 1.4 million these families, so even those who than send their child to P.S. 6, their “We were told by our admissions that Fieldston’s applications were kids in New York City and maybe would consider public schools have neighborhood public school—and officer that we didn’t cast a wide larger than ever this year. She com- 3,000 spots in private school,” says been scared by the threat of budget one with a stellar reputation. enough net—like we should have pared it to getting into Brown.”
Stores seeking fresh new faces Tenants

In need of buzz, Saks, Bloomie’s, Barneys dumping and others stock up on fledgling designers of young New York designers are space BY ADRIANNE PASQUARELLI finding that the recession may be the best time to make their mark. on april 3, dozens of wannabe de- “The stores are looking to goose Surge in subleasing signers bearing armloads of their their lineups with designers who drives rents down; creations will line up on the side- people haven’t seen before and walk outside Bloomingdale’s 60th aren’t tired of,” says Susan Scafidi, pressure on Park Street entrance, eager for their shot intellectual property and fashion at the big time. The department law professor at Fordham Universi- BY THERESA AGOVINO store, owned by Macy’s Inc., is ty School of Law. “There is a hole hosting its new B-Seen event, an to be filled.” citigroup announced last week open casting call where prospective To heighten the impact of new that it was dumping 1.4 million designers showcase their wares. discoveries, Saks recently spent square feet of space into the Man- “Hopefully, we’ll see some bur- months renovating the contempo- hattan office market. Though the geoning designer, someone who rary apparel department on the news was not entirely unexpected, it will become the next Ralph Lauren fifth floor of its New York flagship. couldn’t have come at a worse time. or Donna Karan,” says Stephanie Called Workshop, the 3,600- In the past two months,founder- Solomon, fashion director at square-foot space boasts an indus- ing financial firms and others have Bloomingdale’s, which staged its trial design, with a concrete floor thrown surplus office space back on first formal B-Seen event last and exposed ceiling pipes.The for- the market,increasing the amount of month and will also hold calls in the mat, which will be rolled out to ad- such space by 17%.Those additions, spring and fall. ditional stores this fall, will display which come on top of a near-dou- emerging labels like Vena Cava, bling of sublease space last year, are Fading interest along with exclusive items, includ- helping to drive rents down sharply. bloomingdale’s, Saks Fifth Av- ing a floral dress from Elizabeth INDIE DESIGN: Long struggle looms enue,Barneys New York and others and James. Douglas Reker are all trying to inject new life into “It’s important to differentiate freelances in his East since late last year, Manhattan their fashion offerings at a time our assortments,” says Colleen Village basement office rents have fallen 25% to 35%, when shoppers’ interest is fading Sherin, fashion market director at while he waits for a according to brokers. Grubb & El- right along with their financial Saks. This strategy will set Saks call from Barneys. lis New York Inc. estimates that it health. The open casting call, pio- apart from the competition, she could take three years for the market neered nearly 50 years ago by up- notes. to absorb the acres tenants have shed scale store Henri Bendel, is one of The need for an extra edge is as in recent months, which would be several ways that stores are trying to clear as the store’s frayed bottom bad for landlords. uncover new talent, generate extra line. February same-store sales “The sublease space is putting a buzz—and,hopefully,reverse falling plunged 26%, and last week credit huge amount of pressure on the

same-store sales.Meanwhile,a host See SEEKING on Page 9 buck ennis See TENANTS on Page 8

March 23, 2009 | Crain’s New York Business | 3 CNYB 03-23-09 A 4 3/20/2009 7:01 PM Page 1

IN THE MARKETS by Aaron Elstein and Amanda Fung

Big Mack? More like quarter-pounder organ stanley’s bubble- era hangover just won’t Mquit. The former invest- ment bank is expected to post an- bloomberg news other quarterly loss under CEO John Mack when it reports first- VALUE MEAL? quarter results next month, accord- Under CEO John Mack, Morgan Stanley ing to brokerage firm Fox-Pitt Kel- may have lost money in three of the ton. Such a loss would represent the past six quarters. Profits and losses are esteemed firm’s third unprofitable in billions of dollars. quarter in the past six. Morgan Stanley never had an unprofitable quarter in its first 72 years of exis- tence, dating back to 1935. The continued difficulties at Morgan Stanley raise questions about the claims of Citigroup Inc. and Bank of America executives, who insist their institutions are return- ing to profitability. The problem, which Morgan Stanley shares with Citi, BofA and others, remains de- teriorating mortgages. *Forecast.Sources: Morgan Stanley, Fox-Pitt Kelton Fox-Pitt analyst David Trone predicts Morgan Stanley will suffer $800 billion in commercial mort- a total of $2 billion in write-downs gage-related write-downs in the and credit losses,which should drive first quarter, and losses of another Morgan Stanley to a loss of $124 $100 million from residential mort- million, or 12 cents a share. gages and $200 million from loans Although the near-term outlook related to the vanished leveraged- is bleak, Morgan Stanley shares are buyout business. up 26% so far this year. Investors Factoring in additional losses reckon the bank’s pending purchase from asset management and mer- of Citigroup’s Smith Barney bro- Sooner or later, chant banking, Mr. Trone forecasts kerage will pay off down the road. everyone in your position International at the fifth-highest investment grade, and late last year it was one thinks about it. Business Machine, of the few companies to successful- ly raise big bucks ($4 billion in indeed IBM’s case) from the sale of dollar- one u.s. business in hyperdrive: denominated corporate bonds. IBM, which recently reported a big A spokesman at IBM headquar- payroll provider boost in profits for 2008 and is now ters in Armonk, N.Y., declined to Why doesn’t my rumored to be in talks to acquire comment on talk last week that the Sun Microsystems Inc. company was close to an offer more to me and my employees? for an estimated $7 bil- agreement to buy Santa lion in cash. That per- Clara, Calif.-based Sun, Fidelity Investments does. Our web-based payroll service isn’t just better than formance has not gone the fourth-largest maker the rest, it’s truly unique. We’ve changed what a payroll service can mean to your unnoticed. IBM shares of computer servers. Such are down just 22% in a deal, however, would so- business and your employees – that’s why small and medium-sized businesses the past 12 months, lidify IBM’s dominance in like yours aren’t just thinking about it, they’re switching to Fidelity HR/Payroll. beating the overall the $50 billion server mar- stock market as well as ket, giving it a 50% share Let us show you how we can help you be more productive at work, and give your peers Dell Inc. and and fending off formida- Hewlett-Packard Co., ble rivals like Cisco Sys- employees access to tools that can help them better manage their paycheck and whose stocks have been tems Inc., which recently prepare for the future. down 50% and 37%,re- entered the server game. spectively. IBM shares IBM also benefits Fidelity HR/Payroll. closed at $92.51 Friday. 50% from the higher-margin “IBM is in a position long-term software and Simplify your workload. Empower your employees. IBM AND SUN’S of strength,” says Shaw combined market service contracts that fol- fidelitypayroll.com/nyc Wu,an analyst at Kauf- share in computer low purchases of hard- man Bros. “An acquisi- server business ware such as servers. Such or call 1-866-415-8221 tion would reinforce its “soft” items account for prominence.” about half of IBM’s profits. Sun would be fairly easy to swal- Earnings per share in 2008 were low. IBM has $14.3 billion in cash. $8.93, up 24% from 2007, on rev- Access to the debt markets should enue of $103.6 billion, up 5%. IBM also be easy: Both Moody’s and recently reaffirmed its EPS esti- Standard & Poor’s rate IBM debt mate of $9.20 for 2009.

4 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 5 3/20/2009 1:20 PM Page 1

REAL ESTATE DEALS

The GSA signed one lease for 6,500 square feet at 933 Flatbush Ave. Building systems firm doubles space in Flatbush, Brooklyn, and another for 7,300 square feet at 92-11 165th St. in Jamaica, Queens. Both leases around $70 a square foot—a bargain Landlord Gilman Management run about 18 months. Need for parking Cut-rate rent makes price that is another sign of a weak- Corp. represented itself. The tenant plans to move into was challenge in SoHo shop shoe-in ening market. Real estate sources —adrianne pasquarelli the locations in August, according say a space in that neighborhood to Eric Altschul, a broker at CPEX TEC’s search; new limited-edition sneaker store could easily have fetched around Real Estate who, along with col- home in Queens Flight Club is getting a bigger foot- $200 a square foot 12 months ago. Nose counters league Ryan Condren,marketed the print. The retailer recently signed a “Being right in the middle of in short-term deals spaces on behalf of landlord Aftor T fter a long search, seven-year lease for its third Manhat- SoHo on a main thoroughfare was Realty Inc. TEC Systems Inc. has tan location,taking 1,000 square feet really appealing to them,” says Peter the u.s. general services Ad- Messrs. Altschul and Condren found a larger space in on the ground floor of 267 Lafayette Levitan, the Sierra Realty Corp. as- ministration has leased two spaces negotiated the deal by responding to Long Island City, St., on the corner of Prince Street. sociate director who represented for the Census Bureau’s commerce a request for proposals issued by the Queens, for its expand- The space, which includes a Flight Club. “Now that rents are department.The spaces will be used GSA roughly eight months ago. Aing operations. small storage basement, leased for coming down, it was a no-brainer.” to prepare for the 2010 Census. —amanda fung The 28-year-old firm, which in- stalls heating, ventilation and other building systems, signed a 10-year lease for 25,000 square feet at 47-25 34th St. The asking rent was $15 per square foot. The company will be moving to its new fourth-floor home from its old location two miles away at 54-08 Vernon Blvd., where it occupied 12,000 square feet. “They’ve been looking to expand for a few years,” says Jeff Unger, a broker at Kalmon Dolgin Affiliates Inc., who represented the tenant. “They like Long Island City and its proximity to Manhattan.” TEC had been looking for a place with on-site parking for 25 cars. There are only a few buildings in the area with parking, according to Mr. Unger. “It was imperative for them.” The landlord, 47-25 34th Street Associates Inc., was represented in- house by Peter Thorsen. —amanda fung Numbers add up for accountant cornick garber & sandler re- newed its lease for nearly 19,250 square feet at 825 Third Ave., between East 50th and East 51st streets, for another four years. V Cornick, an accounting firm, has occupied the entire fourth floor of the building for four years. An asking E rent for the deal was not avail- able.Sources say asking rents in the building range from $60 a square foot to 825 Third Ave. $75 a square 6 foot. However, Cornick is subleasing the space and such transactions tend to carry low- er rents. Cornick considered other op- tions but decided to stay for several reasons, including a desire to avoid disrupting its business and to save money by forgoing moving costs. “They are very comfortable where they are,” says Bruce Wein- berg, the CB Richard Ellis Inc. bro- ker who represented Cornick. CB Richard Ellis brokers Greg Tosko and Ken Meyerson repre- sented the landlord, Advance Mag- azine Publishers. —theresa agovino

SRS-1007 850 Third Display.indd 1 March 23, 2009 | Crain’s New3/12/09 York Business 6:05:58 PM | 5 CNYB 03-23-09 A 6 3/20/2009 6:23 PM Page 1

Prime Times NEW YORK,NEW YORK 218 West th Street Square edited by Valerie Block 40 Location

■ ImmediateImmediate availability. Full flflooroor - 13,800 rsfrsf ■ ExpansionExpansion opportunitiesopportunities ■ GGenerousenerous workletteworkletterr New magazine ready to rumble ■ 24/724/7 buildingbuilding access with conciergeconcierge ■ NNewew eelevatorslevators ma cage is about to get into the ring with Fight!, ■ AcrossAcross from the new New York Times buildingbuilding Ultimate Grappling and all the other magazines that Mcelebrate the sport of mixed martial arts. Punches, kicks and choke holds are allowed, but there’s no biting. Harris Publications—which will let MMA Cage loose on newsstands June 2—believes it has what it takes to win. “We are very aggressive on the newsstand,” says Executive Publisher Jonathan Rheingold, pointing to the success the Manhattan-based company has had with hip- hop bible XXL and hoops title Slam.“Cage will educate new fans and respect the die-hards.” The title refers to the octagonal cage in which mixed martial arts matches take place.The sport combines boxing, karate and Brazilian-style jujitsu. Harris plans to distribute 225,000 copies and reach paid circulation of 100,000.The title will be published quarterly for now. Despite the recession and print media’s collapse, Mr. Rheingold is also hoping to attract advertisers interested in reaching young male readers. “[MMA] is a fan-driven sport,” he says. “And it’s booming.”

Magnolia Mondays.The cupcakes Cool sounds will replace the restaurants’ replace Muzak traditional complimentary cup of chocolate pudding. 100% COMMISSIONS el media group is taking the low PAID ON SIGNING road in search of big bucks.The music service provider that brings Art arrives expensive sound systems and cool at terminal FOR LEASING INFORMATION, CONTACT: grooves to Scoop stores, Nobu restaurants, Hotel Gansevoort and chic and stylish apparel, up- CAROL SACKS [email protected] 212.452.6055 other hip locations wants to Cupcakes to-the-minute designs, and MICHAEL DUBIN [email protected] 212.452.6042 capitalize on the misfortunes of in new places innovative artworks and sculptures Muzak, the industry’s big kahuna will soon be on view in a most that recently filed for bankruptcy. for the first time, the famed unlikely place: the Port Authority El Media, with annual Magnolia Bakery is offering its Bus Terminal. LEASING & MANAGEMENT revenues of $2 million, charges tasty cupcakes outside its three The Times Square Alliance Savittpartners.com clients about $150 a month per bakeries in Manhattan. and the Fashion Center BID are location for its customized But owner Steve Abrams is teaming with the transportation playlists. Now, it’s rolling out a keeping the recipe in the family. hub to lease a 2,500-square-foot $39.95-a-month service for major His brother, Danny Abrams, who retail space at 625 Eighth Ave., at chains like TGI Friday’s and owns the two Mermaid Inn West 41st Street. Applebee’s. Though the new restaurants—in the East Village The small storefront will house service, iStyle Music, is a one- and on the Upper West Side— the wares of emerging fashion format-fits-all approach, its price will offer the cupcakes as dessert. designers and artists on a rotating is designed for hard times. “Any time people are exposed basis.Tenants using the space for Partners Ernie Lake, a record to his product, it’s good for him,” retail or art exhibits will pay only producer who’s worked with says Danny of his older brother’s electricity, air conditioning and Pink, Usher and Brandy, and Josh cupcakes. “It works for both of other maintenance costs.The first Meet Comptroller Thomas DiNapoli Katz, a former BMG executive, say us.” designer is scheduled to arrive the product is hardly elevator The mini cupcakes will make May 1. Come hear Comptroller DiNapoli discuss his proposal to music. “It’s the antithesis of their restaurant debut at both diversify the investments of the state pension plan to Muzak. It’s great sound and locations on March 31 as the first Contributors: Lisa Fickenscher, improve performance. He will be questioned by Crain’s edi- quality,” says Mr. Katz. of an ongoing weekly special, Matthew Flamm, Adrianne Pasquarelli torial director, Greg David, on the state budget, the state's overall fiscal problems and his own future political plans.

SPONSORED BY: DATE: Tuesday, April 14, 2009 CRAIN’S AWARDS TIME: 8:00-8:30 am Networking Breakfast 8:30-9:15 am Program SEEKING TOP ENTREPRENEURS VENUE: Grand Hyatt Hotel • 42nd St. and Grand Central Terminal CRAIN’S SEEKS NOMINATIONS for its 14th annual awards for top entrepreneurs. The six winners will have distinguished themselves by showing a pattern of growth in TICKETS: $70 for individual tickets if pre-registered by April 7; $75 thereafter. their businesses and contributing to their communities’ quality of life. $650 for table(s) of ten if pre-registered by April 7; Business owners must be running for-profit enterprises that have been in $750 thereafter. business for at least three years. They must employ no more than 150 people, have annual sales of no more than $40 million and be headquartered in New York City. To register go to crainsnewyork.com, or fax your business card Entrepreneurs can nominate themselves or they can be nominated by a business and credit card information to “DiNapoli Forum” at 212-210-0499. contact. The entry deadline is noon on April 1. Winners will be profiled in the June 1 issue. You must be pre-registered to attend this event. All tickets are non-refundable. To nominate someone, send his or her name, address and a letter detailing commercial and civic For more information, please call the events hotline at 212-210-0739. accomplishments to Crain’s Top Entrepreneur Awards, 711 Third Ave., New York, NY 10017. The information can also be e-mailed to [email protected] or faxed to (212) 210-0799.

6 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 7 3/19/2009 8:40 PM Page 1

SMALL BUSINESS

A        ’  . buck ennis NEAT TRICK: Michael Sachs (left) and Jeff Frumin throw a new drink into a crowded sector. Pick-me-up enters a down market JOE TORRE, MANAGER T    THE UNPRECEDENTED. Since 1919, J.H. Cohn has guided clients Entrepreneurs ment company, as well as promo- through fi ve wars, 16 recessions, and 17 tions agency UCG Marketing. recoveries. Clients know they can rely on launch hangover The guys sat down with bever- J.H. Cohn’s experienced tax, audit, and age executives from 15 different accounting professionals to help them ‘recovery’ drink companies to tout their product and take in feedback. Along the way, meet uncertain times. It’s why I won’t BY KIRA BINDRIM they snagged three major backers: face a new management challenge Jack Belsito, former chief executive without J.H. Cohn. the time: 8 a.m. Friday morning. of Snapple; Hank McInerney, for- The culprit: four ill-advised tequila mer chief executive of Tetley Tea; shots the previous evening. The and David Kanbar, former execu- feeling: dehydrated, exhausted, tive vice president and director of hung over. The cure: a new azure- Skyy Spirits. hued beverage called Code Blue. “I thought,‘This isn’t a drink that Call 1-212-297-0400 or visit www.jhcohn.com Or at least that’s what Michael you might have every day, but it’s New York City, White Plains, and Jericho Sachs, along with brothers Jeff and great for what it is,’”says Mr.Kanbar. Other offi ces in New Jersey, Connecticut, and California Member of Nexia International, a worldwide network Steven Frumin, hope their “recov- “There’s a need in the market for it.” of independent accounting and consulting fi rms. ery” drink will be for hardworking, hard-playing urban dwellers. Finding outlets The fact that the former college indeed, Code Blue, which was buddies have launched Code Blue three years in the making, plowed in the heart of a recession confirms through its January launch in the not only their belief in the concept, Big Apple and has since rolled out but also the faith of three beverage in Boston. The drink is sold in ho- industry veterans who are the start- tels, health clubs and bodegas, and up’s angel investors. earlier this month became available Doing promotions in the in all 230 Duane Reade locations in nightlife industry, Messrs. Sachs the New York metro area. and Frumin came up with the idea There are undoubtedly growing for Code Blue while commiserating pains ahead. Launching a new over their hangovers. product in the crowded beverage Working with food scientist and marketplace is no small feat, even Gatorade co-developer Sumner without a nationwide recession. Katz, the marketers-turned-entre- “They’ve joined a category, but preneurs came up with a formula they’re not leading one or creating a that included standard electrolytes, new one,” says Tom Pirko, presi- vitamins and minerals. It had two dent of beverage industry consul- additional ingredients: “reduced tancy Bevmark. “Whether they glutathione,” which acts as an an- succeed will depend more than any- tioxidant, and a blend of agave nec- thing on their ability to get inside tar and prickly pear juice, consid- the consumer’s head and say, ‘This ered to have anti-inflammatory is different.’ ” properties. Nor is Code Blue the cheapest thing on the shelf. The drink runs Valuable experience $3.50 per 12-ounce bottle. the code blue team knows its tar- Mr. Pirko says the drink might get demographic. Mr. Sachs, for- benefit from its niche focus.“If you’ve merly marketing manager for Bac- got a severe headache and you’re hav- ardi’s Grey Goose Vodka, has more ing double vision because of last than a decade of experience in the night’s blowout,this has an over-the- wine-and-spirits industry. On the counter medical appeal,” he says. marketing side,the Frumin brothers The clear minds behind Code co-founded Universal Promotions Blue agree. “We’re solving a prob- Inc., a Boston-based event manage- lem,” says Jeff Frumin.

To sign up for Crain’s new twice-weekly SMALL BUSINESS NEWSLETTER, go to www.crainsnewyork.com/smallbiz CNYB 03-23-09 A 8 3/20/2009 8:10 PM Page 1

last week that a decline in EBITDA of between 8% and 9% by Sept. 30, PRIME SPACE HITS THE SALES BIN AMI’s next chapter 2009, could put the company in vi- olation of its covenants—again. Asking prices per square foot Continued from Page 1 and its sister tabloids was supposed to The constant drumbeat of bad Pecker, the company’s chief execu- finance an ambitious expansion. But news has also hurt AMI with adver- 299 Park Ave. 1114 Sixth Ave. 245 Park Ave. tive, has spent much of the past two competition from new gossip maga- tisers.“What is the level of advertis- years skirting default and negotiat- zines ate into the Enquirer’s circula- er confidence in these magazines?” ing with bondholders and banks, tion, which is now down to fewer asks George Janson, director of achieving one life-saving extension than 900,000 copies, or more than print for Mediaedge:cia. after another. 60% below what it was 10 years ago. Mr. Pecker argues that advertis- Now the company has reduced its Mr.Pecker and his backers,Ever- ers have stayed on board. While ad debt to $835 million from $1.1 bil- core Capital Partners and Thomas pages across the magazine industry lion, and it was able to push back the H.Lee Partners,also spent some $30 fell 12% in 2008 versus year-earlier maturities on its bonds in return for million converting Star into a glossy levels, according to Publishers In- giving the bondholders a 95% equi- title under celebrity magazine queen formation Bureau,AMI’s titles were 52% OFF 38% OFF 56% OFF ty stake.There’s a new board, whose Bonnie Fuller. Though the remake down only 6%. members include former Harvard brought in national advertisers,com- Muscle & Fitness and Flex have Business Review Publisher Cathryn petition from entertainment Web defied the trends,too,with pages ris- Cranston and MarketWatch sites has driven down newsstand ing 17% and 26% through April. founder Larry Kramer. The compa- sales to just over 600,000 copies from Shape and Men’s Fitness are posting ny is even looking to the future, with more than 900,000 in 2004. double-digit percentage decreases Landlord’s price Landlord’s price Landlord’s price* the recent purchase of RadarOn- but are still outperforming monthlies $125 $105 $135 line.com, which it has transformed Declines offset overall, which have slid 22%, accord- from a snarky media news blog into mr.pecker says that cover price in- ing to Media Industry Newsletter. Sublease price Sublease price Sublease price a celebrity gossip site. creases for both Star and the tabloids Mr.Pecker also says that the cap- $60 $65 $59 Mr. Pecker insists that AMI is have offset circulation declines. ital restructuring reflects current *As of February. done flirting with disaster. “We can AMI still makes money.Revenue market conditions and leaves the manage, we can compete, we don’t for the fiscal nine months ended company room to maneuver. have guns to our heads,” he says. “I Dec. 31 came to $349 million, down “This company isn’t broken and can’t ask for anything more.” just 5% versus the year-earlier peri- never was,” says a bondholder who Well, in his next life, the former od. But the declining value of the was involved in the restructuring. Tenants dump space CEO of Hachette Filipacchi maga- company’s assets resulted in a $217 Mr. Pecker is forging ahead. zines might want to ask for better million write-off, which led to a net With financing from Yucaipa Cos., timing. The company that Mr. loss of $190 million for the period. AMI has just relaunched RadarOn- Continued from Page 3 Dennis Friedrich, president and Pecker has put together was always And the debt restructuring hasn’t line.com. The site had 1 million market,” says David Arena, presi- chief executive officer of U.S. oper- a step behind the trends. eased all the pressure. Standard & unique visitors in February, accord- dent of Grubb’s New York office. ations at Brookfield Properties, says He started by purchasing weekly Poor’s still has a negative outlook on ing to comScore Media Metrix. “For companies that want to get rid the sublease space often doesn’t af- tabloids Enquirer and Star in 1999 the company, although it recently Shape will roll out a new Web site in of their space, no rent is too low.” fect negotiations with prospective for nearly $800 million,and acquired raised its corporate debt rating to May, and Men’s Fitness will follow. Landlords increasingly find tenants because most want a longer fitness publisher Weider Publica- “CCC+” from “selective default.” “As we develop these products, it’s themselves pitted against their own lease. He believes the overall lack of tions for $350 million in 2003. S&P analysts Tulip Lim and Hal going to create a lot of value for the tenants in an effort to fill vacancies. demand is the primary cause of the Steady cash from the Enquirer Diamond wrote in a research note shareholders,” Mr. Pecker says.
The competition comes as fewer decline in rents. companies are signing new leases because they’re wary of making de- Lehman fallout cisions during a recession. Leasing but the amount of sublease A rare bunch: CEOs with pay volume is down 48% from last year, footage is only going to grow. according to Cushman & Wakefield Sources expect Barclays Bank to try Inc. to unload half a million square feet Continued from Page 1 than half,yet the company remained performance exceeded targets set by “It’s a really tough time to get at 1301 Sixth Ave. that it inherited chief research analyst at the AFL- solidly profitable as many Wall the board. tenants to make commitments,” in the purchase of Lehman Broth- CIO’s office of investment. “But it’s Street competitors turned to the But Duff & Phelps seemed eager says Andrew Sachs, an executive di- ers’ investment banking business a pretty small group.” federal government for a rescue, to mitigate the current environ- rector at Cushman. “Landlords last year. Often those taking symbolic or were acquired or collapsed. Rather ment’s effects on Mr. Gottdiener by need to be more competitive.” Sublease space is not just inex- drastically reduced pay at troubled than demand raises for dramatically granting him $1.3 million worth of Grubb & Ellis estimates that pensive; it is tenant-ready. The of- companies still have lucrative bonus outperforming their peers, Green- shares,which won’t count as pay un- about 14 million square feet of sub- fices are already built out and might and stock packages. Accepting a hill co-CEOs Scott Bok and Simon til they vest.Duff & Phelps declined lease space, representing 29% of to- even include furniture, which pro- salary of $1 for 2009, Vikram Pan- Borrows each agreed to have their to comment. tal space, is available.The firm fore- vides big savings to companies dit of Citigroup Inc. was awarded total compensation slashed to about casts that number could rise to 19 equipping a location. $35 million in stock last year as a $5.5 million from $22 million and Net income up 27%; pay down 7% million square feet, roughly 33% of But brokers warn that subleas- “sign-on”bonus for taking the CEO $24 million, respectively, in 2007. similarly, medical device maker the total, by year-end. ing also carries significant risks.For role.He joined the company in 2007 A severe drop in Greenhill’s core Becton Dickinson & Co. reduced Park Avenue is awash in sublease example, if a company goes out of after it acquired his hedge fund for merger advisory business drove total compensation for CEO Ed- space. After acquiring Bear Stearns business, the sublessor could be $800 million. lower cash bonuses for the two ward Ludwig last year by 7%,to $7.5 Cos. last year, J.P. Morgan Chase forced to pay the more expensive “You’ll see people sometimes CEOs: Mr. Bok’s fell 89% and Mr. million, while net income jumped has put 600,000 square feet on the original rent or be forced out alto- cutting their salaries in tough times, Borrows’ 95%. To help soften the 27%,to $1.2 billion,and revenue in- market in three separate locations gether. but that’s the extent of it,” says blow, Greenhill granted Mr. Bok creased 13%, to $7.2 billion. and is expected to add another “Tenants really have to investi- Steven Hall of Manhattan compen- $1.9 million worth of shares and Much of the decline in Mr. Lud- 500,000 square feet at 277 Park in gate their sublandlord,” says Paul sation consultancy Steven Hall & Mr. Borrows $3.8 million worth. wig’s compensation was related to coming months. Myers, executive vice president at Partners. “Usually they make up the Greenhill didn’t return a call seek- the New Jersey-based company’s as- CB Richard Ellis. “Subleasing is pay in other areas.” ing comment. suming a lower rate of return on his Empty feeling on Park difficult.” At financial advisory firm Duff pension assets. Like many other brokers say landlords on the Additionally, a lot of space is Taking a knife to cash bonuses & Phelps Corp., CEO Noah Gott- public companies, Becton granted prestigious strip are asking an aver- available only in short-term deals or the thin ranks of heroic CEOs diener saw his total compensation its CEO a healthy amount of age of $96 a square foot—down 18% isn’t configured for a smaller tenant. taking pay cuts shrink further when slip 4% last year, to $4.6 million. In stock—in his case, $5 million worth from last year—but are getting A significant portion of financial such goodies as unvested equity 2008, its first full year as a publicly last year—to offset a decline in pay. about $20 less than that. Mean- firms’space is on large floors that are grants are considered. Common- traded company, Duff & Phelps The grant isn’t officially considered while,their tenants up and down the not easily divided. place and often substantial, these turned profitable, with $38 million part of his total compensation be- avenue are subleasing their surplus Mark Weiss,executive vice pres- payments are routinely excluded of operating income; revenue grew cause it hasn’t vested. office space for about $56 a square ident at Newmark Knight Frank, from total executive compensation 9%, to $392 million. Its share price Still, there are signs that Becton foot. looked at various sublease options in companies’ annual regulatory fell just 3%, vastly better than those board members—including Henry At 245 Park Ave., for instance, for WestLB. But in December, the filings. for most financial institutions. Becton Jr., the son of a former CEO sublease space is going for $59 a German bank finally signed a 15- One example of CEOs taking a Mr. Gottdiener’s total compen- and grandson of a founder—are square foot, while landlord Brook- year lease directly with the landlord hit when they could have legiti- sation dropped mainly because of a toughening their pay standards. field Properties had been asking at 7 World Trade because the deal mately argued for better pay can be 26% plunge in his cash bonus, to Citing disappointing stock per- $135.Up the street,UBS is trying to provided options for expanding and found at Greenhill & Co., a bou- $883,000. In a regulatory filing, formance at the start of 2009, the sublease space at 299 Park for about contracting. tique investment bank that was a Duff & Phelps said it cut its execu- board said it was granting fewer $60 a square foot.Its landlord,Fish- “We needed flexibility, and ulti- closely held partnership until 2004. tive bonus pool by $4.7 million “due shares to Mr. Ludwig and other top er Brothers, is asking $125. mately that’s what we got,” Mr. Greenhill’s share price actually to the current economic environ- officers. Becton Dickinson declined Fisher Brothers didn’t return a Weiss says. “It’s hard to create that rose 8% last year. Earnings fell more ment,” even though its financial to comment.
call. with a sublease.”

8 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 9 3/20/2009 3:16 PM Page 1

comment on consignors’motivations. tied to those who did. 19th-century German menorah that The most anticipated auction Abraham Kugielsky is the only I really didn’t think I was going to sell, Jewish treasures item at Kestenbaum is a book called one of 11 siblings to go into the 35- but sometimes you have no choice.” the Prague Haggadah. It’s one of year-old family business: private Last summer,the menorah would Continued from Page 1 an estimated value exceeding $30,000, five surviving books from a 1526 sales of Jewish and Hebrew art and have sold for as much as $6,000, he dead grand rabbi, Mr. Greenstein include a gilded silver and diamond woodcut printing that’s believed to religious artifacts.Business has been estimates. Now, with so much an- suspected greater forces were at Torah pointer crafted in the 1780s. be the first illuminated Jewish text crushingly slow lately, which he at- tique Judaica on the market,he’ll feel work. Clients soon confirmed the Elisa Schindler,the rabbi’s eldest printed in central Europe after the tributes to both the economy and lucky to get $4,000. culprit: Bernard Madoff. daughter,says her father first invest- Jews were expelled from Spain.The the Madoff effect: His clientele It’s a cruel juxtaposition. Even as Auction houses are reporting a ed with Mr. Madoff in 1996.“Our last time a Prague Haggadah be- would have included many Madoff FBI investigators inventory the sharp increase in the number of an- hope,” she adds,“is that these sacred came available, more than a dozen investors. Madoff family’s jewelry, art and an- tique Jewish artifacts being offered objects find a sacred home.” years ago, it fetched $277,500 at “These collectors have been hurt tiques, many Madoff clients are do- for spring auctions.Dealers who spe- Sotheby’s in New York. The book’s financially, and they’re not really ing the same:dusting off family heir- cialize in this niche say that the The Prague Haggadah estimated value in the current mar- buying anything unless it’s very rare looms and assessing their collections. amount and quality of newly avail- manhattan’s kestenbaum & co., ket: $120,000 to $150,000. and they just can’t pass on it,”he says. “The market is a lot more chal- able items blows away offerings from which specializes in rare manuscripts Mr. Madoff ’s fraud also created a As a result, Mr. Kugielsky finds lenging now,” says Mr. Kugielsky. past auction seasons. and Judaica, will have an auction on group of victims once removed,those himself reaching into his family’s pri- “One thing’s for sure: If anyone is “The Italian bronze menorah is April 2 with a robust 328 lots. Chair- who didn’t invest in any Madoff-re- vate collection for special items in or- able to buy,now is a great time.Prices magnificent,”says Mr.Greenstein.“I man Daniel Kestenbaum declines to lated funds but whose livelihoods are der to raise money. “There’s this are being kept fair and low.”
knew in my heart that this guy want- ed to hand it down to his son and grandchildren.” Instead, it’s listed in the June catalog. Investments of all kinds have had a disappointing run lately,aside from the Madoff catastrophe. But while the economy at large has played a role in the flood of antiquities, many point to one definite villain. “[Mr.Madoff ’s] reach of destruc- tion was so unbelievable,” says Mr. Greenstein.“People are parting with things you know they wouldn’t nec- essarily part with.It’s heartbreaking.” J. Greenstein’s June auction al- ready has more than 200 lots of an- tique Judaica, while its more typical auction size is about 130 lots. The widow of the late Rabbi Alexander Schindler,one of the lead- ers of the modern Reform Jewish movement, consigned several items to Mr.Greenstein.The artifacts,with Seeking

new faces With HSBC Premier, you can transfer money instantly online between your HSBC accounts around the world. So you can have money (Rupiah) in the bank (tepi) in Continued from Page 3 ratings firm Moody’s downgraded Jakarta before you even leave the ground at JFK. Imagine Saks’ debt to B3, deep in junk terri- how much easier your global life will be with the world’s tory. Step off the plane most comprehensively linked-up banking. In 40 countries, While Bloomingdale’s is faring you can count on our highest level of personal service, slightly better than Saks, the store is so you can take advantage of all the world has to offer. beating the bushes for fresh talent. “We’re entering a transforma- knowing Begin a Premier relationship by April 25, 2009 with a tion in retail,” says Ms. Solomon, who is hoping her new discoveries qualifying deposit of new money and receive your choice will help lead the way. you’ve got Rupiah of a Relaxed Traveller Set & throw from Molton Brown, Meanwhile, Henri Bendel is re- London’s luxury purveyor of bath and body care, or the doubling its efforts. The store ex- brand new Amazon Kindle 2,™ a lightweight digital reader pects a crowd of hundreds at its fa- that lets you carry over 1,500 titles in your pocket.1 mous Open See call Monday. in the tepi. Fashion Director Ann Watson Call 1 866 909-1267, stop by a local HSBC branch or predicts that recently laid-off bankers visit HSBCPREMIERUSA.com/passport to learn more and advertising execs will show up. “You’ll find a lot of people tap- about HSBC Premier and a world of possibilities. ping into their creativity,” she says. For scores of young designers like Carlos Santiago, it all adds up to a rare opportunity. Mr. Santiago, who specializes in women’s cocktail dress- es, attended Bloomingdale’s call ear- lier this month. “People are tired of the same old labels,” says the 34-year-old. 1 Offer valid when you begin a new Premier Relationship in the United States with a minimum of $50,000 funded in new money by April 25, 2009. New money is defined as funds Similarly, Douglas Reker, who or positions not previously held by any member of the HSBC Group over the past consecutive six months. Offer not valid on Retirement (IRA) Brokerage Accounts or for existing founded his own label a year ago, is HSBC Premier clients. Employees cannot use Vanguard balances to qualify for this offer. To qualify for HSBC Premier, you need to maintain $100,000 in combined personal deposit waiting to hear whether Barneys and investment balances or $500,000 in combined personal deposit, investment, and credit/mortgage balances. Business owners may use their commercial balances to qualify for personal Premier membership, but these balances cannot be used to meet the new money requirements. A monthly maintenance fee of $50 will be incurred if minimum balance will pick up his fall collection,which requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. The Annual Percentage Yield (APY) and balance was inspired by miniature figurines. for a Premier Checking Account which is accurate as of March 1, 2009, is 0.05% APY on balances of $5.00 or more. APY is variable and subject to change after opening. Charges In the meantime, the 31-year-old and fees may reduce earnings. Qualified customers will be notified via mail within 90 days of opening an account; notification will include instructions for redeeming gift of choice. Limit one gift per customer. This offer cannot be combined with any other offers or promotions, is nontransferable, and good while supplies last. Any gift not redeemed by freelances, designing fabric prints. July 31, 2009, will be forfeited. The cost of the gift will be reported on IRS Form 1099. Premier relationship must remain open for a minimum of six months or value of gift will be “I’m in the process of interview- deducted from account proceeds at closing. ing at Liz Claiborne,” Mr. Reker Amazon and Kindle are trademarks of Amazon Technologies, Inc. or its affiliates. To purchase content for your Kindle, a credit or debit card issued by a U.S. Bank with a U.S. billing says.
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March 23, 2009 | Crain’s New York Business | 9 CNYB 03-23-09 A 10 3/20/2009 2:26 PM Page 1

VIEWPOINT In Albany, it’s Shelly’s world editor in chief Rance Crain publisher, vp Jill R. Kaplan ast week’s collapse of a well-thought-out his plan soon, and it should include: editorial director Greg David plan to rescue the Metropolitan EDITORIAL editor Xana Antunes Transportation Authority has only REALLOCATING HEALTH CARE DOLLARS FROM HOSPITALS TO managing editors Glenn Coleman, Robert Hordt deepened public cynicism about Albany. PRIMARY CARE DOCTORS AND CLINICS. New York tops the charts deputy managing editors Valerie Block, Erik Ipsen Gov. David Paterson, despite the best in spending, but the quality of health of its citizens is only contributing editor intentions, simply can’t mobilize the mediocre by almost every measure. Only by reorienting the Elizabeth MacBride columnist Alair Townsend support necessary on key issues. Senate health care system to primary care can this change. senior reporters Theresa Agovino, Democratic Leader Malcolm Smith can’t put together a Aaron Elstein, Erik Engquist, Lisa Fickenscher, majority for any action. Senate Republican leader Dean BLOCKING TAX HIKES ON UTILITIES AND HEALTH INSURERS.Gov. Matthew Flamm, Miriam Kreinin Souccar L reporters Barbara Benson, Amanda Fung, Skelos believes obstruction is the best course for the Paterson has abandoned the politically offensive soda, Daniel Massey, Adrianne Pasquarelli, minority. clothing and health Hilary Potkewitz, Gale Scott, Matthew Sollars restaurant critic Bob Lape The only important politician to Will the speaker club taxes he proposed. art director Steven Krupinski emerge intact from the debacle is Remaining are deputy art directors Carolyn McClain, Daniel Mednick Assembly Speaker Sheldon Silver.The show the same economically damaging staff photographer Buck Ennis question is whether he will show the proposals to sock it to copy desk chief Wendy Zuckerman leadership on copy editor Thaddeus Rutkowski same leadership on spending, health care utilities and health research editor Denise Southwood and taxes that he did on the MTA. spending? insurers. Make no www.crainsnewyork.com web editor Brian Tracey Consider what happened with the Sheldon Silver mistake: These will be senior producer Elisabeth Butler Cordova bloomberg news MTA.One of New York’s most quickly passed along to producer Kira Bindrim distinguished civic leaders, Richard consumers and EDITORIAL AND ADVERTISING OFFICES Ravitch, developed a plan that involves modest fare businesses, who can ill afford them. 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 increases, a small regional payroll tax on all employers and advertising: 212.210.0259 tolls on the East River bridges. Gov. David Paterson and LIMITING INCOME TAX INCREASES. If the speaker decides a tax Cable craincom nyk Fax 212.210.0499 Mayor Michael Bloomberg agreed it makes sense.The increase on the wealthy is necessary, for political or budget Entire contents ©copyright 2009 Crain speaker marshaled Assembly Democrats behind it by Communications Inc. All rights reserved. reasons, he should do what he did in 2002—make it ®CityBusiness is a registered trademark of MCP lowering the original bridge toll to the same level as the temporary. New York already imposes the highest state and Inc., used under license agreement. subway fare. local taxes in the nation, and the wealthiest already pay 40% TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. Much depends on whether the speaker acts in the same of all the income taxes collected. A permanent and steep $3.00 a copy, $59.79 one year, $109.79 two years. way when dealing with the budget. He is expected to unveil increase will damage the state’s economy. www.crainsnewyork.com ADVERTISING AND MARKETING senior account managers Cornelius P. Gore, William E. Squitieri POLL COMMENTS commercial real estate sales manager Cory Marks account executives Irene Irvill, Courtney McCombs, Anthony Mowad sales manager, classified print & online John Gallagher People shouldn’t pay losers’ bonuses sales coordinator, print & online Lulé Haznedari Anita Perrino IT IS OUR MONEY being used to prop then performance-based simply sales coordinator credit Todd J. Masura 313.446.6097 up these losers. Bonuses are disappeared. We had signing marketing director Amy Crossman supposed to be a reward for bonuses, year-end bonuses, etc. marketing manager Jill H. Bottomley performance. Not that any of this improved circulation manager Andrea Richardson —edward mooney employee performance, and assistant circulation manager certainly not executive Rosalie Ford I HAVE NEVER HEARD OF “contractual” performance! general manager, interactive bonuses. Bonuses are usually paid It is time corporations put in Marc Minardo out for good performance.These place salary caps, period.The web developer, interactive people should be happy they still amount of money some folks are Chris O’Donnell have jobs at all. earning is obscene. NEW YORK PRODUCTION —joe romano —lois schwartz production and pre-press director Michael Corsi AIG draws fire for IMPOSE A 70% marginal tax rate on A BONUS IS DEFINED as “discretionary” advertising production manager giving out bonuses Suzanne Fleischman Wies all income over $5 million, 90% after taxpayers bailed compensation. after $10 million.Then let them out the company. What in the world is wrong PUBLISHED BY CRAIN COMMUNICATIONS INC. have their darn bonuses.The with our society when we give out chairman Keith E. Crain people will get it back eventually. bloomberg news bonuses to employees of president Rance Crain —david arnow Where would those “talented” gotten away with murder by companies that have failed? Do we secretary Merrilee Crain people go? No one is hiring. offering contractual bonuses in reward failure now? Where is the treasurer Mary Kay Crain William Morrow THE ARGUMENT THAT the bonuses lieu of salary. public outrage? How can this executive vp, operations —margaret daisley senior vp, group publisher Gloria Scoby must be paid so that AIG won’t In the late ’60s, performance- happen? group vp, technology, circulation, lose their top talent is pure bogus. FOR FAR TOO LONG, companies have based bonuses were a bit of a fad; —anne forrest 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 40 Real Small What Top Real founder G.D. Crain Jr. (1885-1973) Under estate business New Yorkers M.B.A. estate chairman Mrs. G.D. Crain Jr. (1911-1996) 40 report report earn programs report March 30 April 6 April 13 April 20 April 27 May 4

10 | Crain’s New York Business | March 23, 2009 nb12p11.qxp 3/20/2009 4:06 PM Page 1

W&H Properties There is, unfortunately, too little is pleased to announce that to counter that image. Consider the biggest success sto- ries in New York. Bloomberg LP’s Gibbs & Soell products were revolutionary, help- ing traders make more money for themselves. The traders are very has leased 12,724 square feet grateful; the rest of the country is on the entire 44th fl oor at oblivious to the benefits. 60 EAST 42ND STREET 60 East 42nd Street Another New York business star of the last decade, Blackstone’s Steve Schwarzman, built an enor- mous fortune by buying up compa- nies and selling them back to the public at higher prices. This financial engineering is Gibbs & Soell useful in correcting inefficiencies was represented by in the marketplace; how it makes Erik Schmall of Studley Americans better off is not self- evident. 100% commission was paid The city’s real estate owners spent the last boom putting up on lease signing

john h. howard more office buildings and luxury high-rises—projects that are nec- essary and useful but lack the im- pact of great new neighborhoods or lasting landmarks like Rockefeller If you make it here, Center. Some of the most prominent real estate players have spent enormous sums buying up older you’ll be despised William G. Cohen, Executive VP & Principal residential complexes, with the [email protected] / 212-372-2233 idea of accelerating the end of rent “Government officials used to call us up and ask us what they should do. regulation. Jonathan T. Fanuzzi, Managing Director Now they drag us down to Washington to berate us for being so dumb.’’ No one who drives up rents for [email protected] / 212-372-2084 middle-class New Yorkers is going —wall street executive Ryan O. Kass, Director to be regarded as a civic leader. Visit us online at whpropertiesny.com [email protected] / 212-850-5475 The city’s enormous financial ichael bloomberg’s vision of New York City’s success in recent years has made it recovery seems to come from his professional myopic in many ways. A recent article in The Economist life story. hailing America’s entrepreneurial Fired by Salomon Brothers in the 1980s, Mr. spirit named Wal-Mart, Google LEADERSHIP CHALLENGE M and Facebook as examples of how WORKSHOP Bloomberg took his $10 ful as his.They will help that spirit leads to the development million severance and revive the economy. of large companies. “All LEADERS are born, founded a company that In such a severe eco- None of the most admired busi- but EXEMPLARY leaders are MADE.” brought innovation to nomic downturn,all new ness leaders in a recent list—Bill the business of financial ventures are welcome. Gates of Microsoft, Steve Jobs of based on the best-selling book information. Bloomberg But more Michael Apple, Warren Buffett of Berkshire The Leadership Challenge by Kouzes & Posner LP was so successful Bloombergs won’t do Hathaway, Michael Dell of the that it is worth $20 bil- much for the city’s repu- company that bears his name and lion today. tation. After months of Richard Branson of Virgin In this downturn,the financial crisis, capped Group—are New Yorkers. mayor often says,people by the AIG bonus con- I hope the mayor is right in think- A Highly Interactive Program to Help laid off on Wall Street troversy, most Ameri- ing that the downturn will allow oth- Executives and Managers Become will take their walking GREG cans are starting to re- ers to follow his path of entrepreneur- money and create busi- gard New York as a ship.It would be better for New York EFFECTIVE TRANSITIONAL LEADERS nesses, some of which DAVID cesspool of greed and if they sought their fortunes some- will become as success- incompetence. where other than financial services. HAUPPAUGE,NY March 30th-April 1st, 2009 $1,195 8:30am - 4:30pm CRAIN’S ONLINE POLL Payment required in advance MC/Visa/AMEX Sheraton Hotel, 110 Motor Parkway Should the U.S. block AIG from giving out bonuses? Hauppauge, NY 11788 515 VOTES Date of poll: March 16 Yes. There is no No. The company The Five Practices of Exemplary Leadership: way people is contractually • Model the way should be paid obligated to pay • Inspire a shared vision additional the employees. • Challenge the process compensation How would you after they made .84% 16%. feel if Uncle Sam • Enable others to act mistakes that tried to intercede • Encourage the heart forced taxpayers with your to bail out the employer about company. how much you Includes all course materials, plus 11 weeks post-class coaching and continental breakfast and lunch daily. $ should be paid? TO REGISTER OR FOR MORE INFORMATION, VISIT

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March 23, 2009 | Crain’s New York Business | 11 CNYB 03-23-09 A 12 3/20/2009 2:10 PM Page 1

court to stop selling the data,” says Ms. Seeley. Ms. Quinn has taken up the MTA PLAN Who’s driving train? THE INSIDER cause, but the council needs the ALTHOUGH STATE SENATE DEMOCRATS have been unable to unify their 32 state Legislature to intervene. She members to pass a viable rescue plan for the Metropolitan Transportation by Erik Engquist and Matthew Sollars might need Washington’s help as Authority, no significant effort has been made to bring the 30 Senate well, because tenant screening Republicans into the reports are subject to the Fair conversation. Meanwhile, OUT OF CONTROL: The Credit Reporting Act. the Republicans have MTA’s financial crisis hesitated to enter the fray, remains unresolved. Quinn aims to erase because any workable plan Skeleton crew would have to include a tenant blacklist in GOP office payroll tax. Endorsing new taxes would undermine a ity council speaker senate republicans, whose central plank of their central staff funding was cut when Christine Quinn is targeting a evolving 2010 campaign to Democrats took over the chamber in regain the Senate majority. problem that a few tenant January, are slashing staff from their C For the GOP to take advocates have been fighting for New York City office. Democrats, bloomberg news such a step, it would have years.They call it the who received $6.5 million for central staff last year from the GOP,gave to have some assurance that its plan would be implemented. Otherwise, “blacklist”—names of the GOP $3.1 million for that insiders say, it would be taking a political risk with little prospect of a reward. tenants from Housing purpose this year. But a spokesman Sen. Martin Golden, R-Brooklyn, says that while Republicans are Court cases. for Senate Democrats says the 30 opposed to tax increases, they could still support a solution for the MTA. Some landlords fear GOP senators got $350,000 each, “We’ve made tough decisions before,” he says. If the MTA’s financial crisis 28% more than Democratic senators had arisen when Joseph Bruno led the Republican majority, Mr. Golden tenants with Housing got last year. adds, “this would have been resolved already.” Court histories. “If [GOP senators] want more Gov. David Paterson and business groups have called for a bipartisan “Landlords are going to central staff, they could give that agreement, but each pillar of power in Albany has drawn a line in the sand, be leery of renting to you CHRISTINE QUINN money back to [Minority Leader] leaving little room for compromise. A handful of Senate Democrats won’t budge has taken up the Dean Skelos,” a Democratic on their opposition to bridge tolls, a key revenue source in proposals backed by if you know your rights cause of tenants spokesman says, somewhat the Assembly, the business community and mass-transit groups. Senate and are willing to exert with Housing Court rhetorically. Republicans won’t publicly endorse a payroll tax and say the rescue plan should histories. them,” says Louise Seeley, be accompanied by economic development funding for their upstate districts.

executive director of the buck ennis But Mr. Paterson labels that horse-trading and vows not to make such a deal. Rudy needs With the various parties having publicly backed themselves into separate Citywide Task Force on Housing Court, a nonprofit. “I’ve had to reach out corners, Albany observers are reminded of why controversial decisions tend people who can’t find housing because of this.” to be hammered out behind closed doors. republican leaders should But even that approach has not worked. Last week, Senate Minority Housing Court sells case data to being taken to court because they persuade Rudy Giuliani to change his Leader Dean Skelos complained that Mr. Paterson canceled a public aggregators who sell to landlords. live in foreclosed homes whose hiring habits if he runs for meeting of legislative leaders in order to march in a St. Patrick’s Day parade. Ms. Quinn says that even if cases mortgage holders want the property governor, GOP consultant Gerry O’Brien The governor promptly invited Mr. Skelos to a private meeting the following are amicably settled, “tenants find vacated for resale. In a double says. day with the other legislative leaders. But the Senate minority leader bolted out that they are denoted as ‘Don’t whammy, they can be evicted and The former mayor should “reach from the meeting before it was done, calling it pointless. rent to them.’ ” marked as problem tenants. outside his closed circle of friends Sheldon Silver A new wave of tenants is now “We have been trying to get the and advisers when he puts together Mr. Skelos suggested that Assembly Speaker is not inclined to compromise on a state budget plan, which is due March 31, or an MTA deal, which the governor has requested before the MTA board votes to raise fares on March 25. (Insiders say Mr. Silver will move to resolve the state budget first.) Implicit in Mr. Skelos’ remarks is an acknowledgment that Mr. Silver can insist on driving the train because—given Mr. Paterson’s low public approval ratings and the Senate’s lack of unity—the Assembly is the most OVER 1000 HUDSON RIVER powerful player in the state. On that point, he is surely correct. his gubernatorial campaign,” says distrust of the agency—which may Mr. O’Brien, who ran John prove fatal to efforts to give the CROSSINGS EVERY DAY... McCain’s 2000 presidential MTA new funding streams. campaign in New York. “His past The disconnect between the And Still the Quickest, hires have been based on loyalty, agency and elected officials is not necessarily quality. We need exemplified by the harsh words of Most Reliable Way Into Manhattan quality people to win.” Councilman John Liu, chairman of Some of Mr. Giuliani’s the council Transportation patronage hires, including Bernard Committee. Kerik and Russell Harding, have ended Mr. Liu is a up on the wrong side of the law. fan of mass transit and supported MTA chief congestion in jeopardy pricing. But he has been a if metropolitan Transportation relentless critic Authority Chief Executive Elliot of bridge tolls “Lee” Sander is ousted, it will not be proposed to because of mismanagement. shore up Rather, insiders say, Mr. Sander has the MTA’s failed to dispel the agency’s bloomberg news finances. reputation as dogmatic and Elliot Sander Mr. Liu unaccountable. In fact, his plays no personality makes him exactly the formal role in the MTA’s finances, wrong person for that task. so the agency doesn’t engage in Mr. Sander is known for his debate with him. But his arguments wonkish expertise, not his political undermine the public support that skills, and has been unable to ease the agency so desperately needs.

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12 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 13 3/19/2009 7:18 PM Page 1

HEALTH CARE INSIDE The largest hospitals in the New York area PAGE 16 “We can’t get credit or capital, and the ER is full of people without coverage.” —Dr. Steven Safyer, Montefiore Medical Center, Page 14 RECESSION RIDE MARRIAGE OF EQUALS: The Hospital for Special Surgery weds practice and research. Prognosis for hospitals sinking buck ennis Outlier as revenue declines, capital dries up BY GALE SCOTT HSS stars AT A PHOTO OP IN DECEMBER, officials of North Shore-Long Island Jewish Health System stuck a ceremonial shovel in the ground to as surgery herald the start of a $123 million expansion of Schneider Children’s Hospital.That’s as far as they got. specialist Due to declining revenue, shrinking endowments, tight credit and uncertainty about federal Filling a niche relief, the project is on hold. PROJECTS ON HOLD It’s the same story all over can prove efficient New York. MONTEFIORE MEDICAL CENTER $100 million renovation of Our Lady of and successful “I wouldn’t be surprised to Mercy Hospital in the Bronx, $25 million see a lot of hospitals left with replacement of OLM’s health information BY CAROLYN COLWELL holes in the ground,” says Bob technology system Shapiro, NS-LIJ’s chief MOUNT SINAI MEDICAL CENTER when doctors in Florida told financial officer, whose system $42 million replacement of electronic Dan Fibkins that his hands medical records system, $11 million would have to be amputated,he now has two other major six-bed intensive care unit conversion came to New York in search of capital projects on hold as well. NORTH SHORE-LONG ISLAND JEWISH another answer. After years of being an HEALTH SYSTEM He found it at the Hospi- economic sector that held the $300 million nine-story tower for Katz tal for Special Surgery. Dr. Women’s Hospital at LIJ Medical Cen- Michelle Carlson, an HSS course while others ter in Manhasset, $132 million 115- hand specialist and orthopedic floundered, New York City’s bed psychiatric unit at Zucker Hillside surgeon, has operated on Mr. hospital industry is in trouble. Hospital in Queens Fibkins five times so far,repair- As the number of uninsured ing the power company line- man’s nerves,tendons and mus- grows and people put off elective procedures, capital for cles that were damaged by a new projects has dried up and income is down. surge of 7,200 volts. “Even the wealthiest hospitals are affected,” says Russ “She was like an angel walk- ing in,” says Mr. Fibkins of his Rudish, a vice chairman of Deloitte specializing in health first meeting with Dr. Carlson. care providers. “We’re seeing buildings on hold and See SPECIALIST on Page 15 See HOSPITALS on Page 14 getty images

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March 23, 2009 | Crain’s New York Business | 13 CNYB 03-23-09 A 14 3/19/2009 7:19 PM Page 1

REPORT Hospitals pressured

Continued from Page 13 State University of New York-New information technology contracts Paltz’s Center for Research, Re- canceled. We’ve got lots of clients gional Education and Outreach. canceling multimillion-dollar deals.” In the past two recessions, in the Precarious positions early 1990s and after Sept.11,hospi- even if the hospitals win the tals were mainstays of the city’s econ- Medicaid battle, as many observers omy, adding jobs while the overall expect, the state is not likely to step workforce contracted. Hospitals in to save individual hospitals. Al- were even able to continue major bany stood with arms folded as Car- projects while construction in the itas pleaded for a bailout.Nor has the rest of the city was faltering. state stepped in to assume more than Two factors may make the story $130 million of North General Hos- different this time around:The trou- pital’s debt to facilitate a takeover by ble in the capital markets is making Mount Sinai Medical Center. it hard even for healthy hospitals to Many hospitals are planning on borrow money,and the drops in rev- some reduction in state funding. enue are greater. “Most executives I talk to are Most companies caught counting on a 20% cut,” says wexler up in the recession have lit- 80% Martin Arrick, a managing healthcare-properties.com tle choice but to slash budg- OF HOSPITALS director at Standard & Poor’s. surveyed said ets. Hospitals have another they were In 2008, New York hos- option: government money. having problems pitals’ operating margins They are lobbying hard to getting credit sank to an average of nega- forestall or reduce state tive 2.2%, according to a budget cuts and are asking for a big joint survey by GNYHA and the share of $12.65 billion in Medicaid Healthcare Association of New money scheduled to come to New York State. That’s a drop of 6 per- York from the federal government centage points from 2007. over two years. The state Department of Health “Hospitals’ backs are against the takes issue with the survey, saying wall,” says Kenneth Raske, presi- that it only included 98 hospitals dent of the Greater New York Hos- statewide—fewer than half of the pital Association. “We could see total—and that revised numbers massive layoffs.” could paint a picture that’s less bleak. Hospital employment in New Even strong hospitals are running York City as of Jan. 15 totaled into problems in the credit market. 158,900,up from 157,200 a year ear- About 80% of hospitals surveyed said lier. The numbers don’t take into ac- they were having problems getting count the February closure of Cari- credit. Only hospitals with an A rat- tas,a two-hospital system in Queens. ing or above are able to sell bonds, Some 2,500 lost jobs. Last week, says Mr. Arrick. New York hospitals Brookdale Hospital announced 250 have some of the slimmest profit layoffs. margins in the nation, he adds. The traditional buyers of hospital Switch to the bank Paterson says no bonds, such as insurance companies so far, Albany is balking at the hos- and hedge funds, don’t have the pitals’ demands. Resisting a hard- money to buy them now.In addition, hitting union/hos- banks are less will- that hasn’t switched pital ad campaign ing to provide the and lobbying pres- In 2008, letters of credit sure, Gov. David that allow hospi- Paterson says he operating tals to borrow in its focus from won’t use federal the short term. stimulus money to margins, “We can’t get negate a $1.3 billion short-term credit, hit to hospitals’bot- already slim, we can’t get capi- your business for tom lines due to a tal, and the emer- combination of narrowed more gency room is fill- new taxes and shifts ing up with people in spending pro- who lost their 80 years. posed in the 2009- health coverage,” 10 state budget. says Steven Saf- State Health yer, chief execu- Commissioner Richard Daines de- tive of Montefiore Medical Center fends the administration’s stance. in the Bronx. Dr. Daines says that part of the hit Montefiore is delaying a $125 to hospitals’ bottom line is due to a million renovation of Our Lady of plan to shift $30 million in Medic- Mercy Hospital, a 1960s-era Bronx aid spending to primary care from facility acquired last year. Inability to acute care, a reform that has been get financing quashed a New York- long in coming. He says that the Presbyterian Hospital plan to take current hard times are no reason to over and rebuild Westchester Square delay reform, and that without a Medical Center. shift, Medicaid costs will continue NS-LIJ’s Mr. Shapiro says that to grow. things could pick up once there’s a CALL STERLING TODAY The battle is consuming Albany. slight thaw in the frozen credit mar- “The hospital sector’s a very power- ket. “As soon as we have confidence 212.757.1100 ful actor, and like the higher educa- in banks and the banks have confi- tion sector it’s maximizing the pres- dence in other banks, individuals EST.1929. Member FDIC. sure to get what it wants,” says and mutual funds will start buying Gerald Benjamin, director of the hospital bonds again,” he says.

14 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 15 3/19/2009 7:28 PM Page 1

REPORT HEALTH CARE A SECOND CHANCE: Dan Fibkins (with his wife, Tuesday) was told area and from around the world. that his hands would About 14% of inpatients come from have to be amputated, Specialist HSS stars outside metro New York. but HSS’s Dr. MIchelle For each procedure and patient, Carlson is working to the hospital staff, from the cleaning repair them. Continued from Page 13 Indeed, New York’s other famous crew to the doctors, follow “path- Patients such as Mr. Fibkins are specialized institution, Memorial ways”to create consistent systems of turning the Hospital for Special Sloan-Kettering, is also doing well. care. The repetition helps staff pin- Surgery into a rare New York health HSS has become a top research point and solve problems, which in care success story. Surgical volume center and one of the more financial- turn means fewer complications, continues to rise, and the hospital, ly successful hospitals in New York. which in turn keeps costs down. located in Manhattan’s famous Bed- In 2007,operating income was $14.5 pan Alley, is planning the second million, and the hospital raised $47 Success saves expense phase of its $235 million expansion. if a total hip replacement has The facility is unusual in anoth- to be redone (regardless of the facil- er way, too: It’s the nation’s only HSS AT A GLANCE ity at which it was originally per- nonprofit, academic freestanding formed), it costs about $65,000. BEDS 162 hospital specializing in orthopedics. That compares with $15,000 to Reformers point to the hospital as OPERATING BUDGET, 2008 $30,000 when it works the first an example of the way that special- $497 million, including time, says Timothy Wright, the ization could benefit health care in $32 million for research director of HSS’s Department of the United States. OPERATING INCOME, 2007 Biomechanics. HSS surgeons per- $14.5 million formed 7,366 knee and hip replace-

Role model ments last year,says Chief Executive buck ennis “what we would like is a whole NET ASSETS $358.9 million Louis A. Shapiro. chain of HSSes,”says Harvard Busi- SURGICAL VOLUME INCREASE Like Memorial Sloan-Ketter- “By looking at removed im- the hospital’s independence. And ness School professor Regina Her- 20% over the last two years; ing—but unlike many other, newer plants,we have greatly increased the consumers give it a vote of confi- zlinger.Dr.Jason Hwang,co-author 65% over the last 10 specialty hospitals—the Hospital longevity and performance of the dence: A full 78% of HSS patients of The Innovator’s Prescription,is an- for Special Surgery marries practice implants that are going into pa- awarded it a 9 out of 10 quality rat- other fan of HSS and other special- with research. tients,” Mr. Wright says. ing, according to data from the U.S. ty hospitals. million, its highest total ever. For instance, Mr.Wright and his At one time, the Hospital for Department of Health and Human For years,as organizations stead- Part of the reason is demograph- team of mechanical engineers study Special Surgery re-evaluated its Services. On average, just 64% of ily grew larger, the watchword in ics: The hospital benefits because every failed joint-replacement de- path: In the late 1980s, as hospitals patients nationwide give their hos- health care was continuity of care. aging baby boomers fuel the market vice removed from a patient. Their began to merge, HSS considered pitals that rating. Now the idea of specialty hospitals for orthopedics and rheumatology, discovery that implants pitted and that option. But staffers advocated “We have the privilege of focus- is coming to the fore, as research the fields in which the hospital spe- cracked because of the way they were fiercely to maintain the facility’s ing on one thing,” says Mr. Shapiro. shows that higher volumes produce cializes.But HSS attracts patients of sterilized contributed to changes in freestanding status,says Mr.Wright. “We therefore have the responsibil- better quality and greater efficiency. all ages, both from the immediate the manufacturing process. These days, no one challenges ity to be the best at that.”

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March 23, 2009 | Crain’s New York Business | 15 CNYB 03-23-09 A 16 3/19/2009 7:21 PM Page 1

REPORT HEALTH CARE

RANGE OF SALARIES, FOCUS OF ACTIVITY New York Area’s Largest Hospitals SALARIES New York-Presbyterian Ranked by operating expenses Hospital CEO Herbert Pardes, who 2008 2007 2008 earned $4,736,824 in 2007, was the operating operating 2008 2008 number of 2008 expenses expenses number of number of ambulatory inpatient highest-paid executive on the list. Rank Hospital/Network affiliation Phone/Web site (in millions) (in millions) certified beds1 employees2 care visits3 days4 Bellevue Hospital Center’s Lynda Curtis New York-Presbyterian Hospital5 (212) 746-5454 $2,993.0 $2,859.6 2,242 18,439 1,790,917 710,810 earned $245,423, the lowest salary. 525 E. 68th St. www.nyp.org 1 New York, NY 10021 LOCATION New York City is the New York-Presbyterian Healthcare System center of the area’s hospital activity, Executive6: Herbert Pardes, M.D., president, chief executive 2007 compensation7: $4,736,824 with two-thirds of the top15 hospitals Montefiore Medical Center (718) 920-4321 $2,448.28 $2,193.0 1,491 16,722 2,761,229 440,999 111 E. 210th St. www.montefiore.org located within city limits. 2 Bronx, NY 10467 Independent BEDS The 15 largest hospitals Executive6: Spencer Foreman, M.D., president, chief executive9 2007 compensation7: $2,761,48410 averaged 928 certified beds; New Memorial Sloan-Kettering Cancer Center (212) 639-2000 $1,614.8 $1,511.5 514 6,667 466,884 139,847 York-Presbyterian Hospital has the 1275 York Ave. www.mskcc.org 3 New York, NY 10065 most, with 2,242. Independent Executive6: Harold Varmus, M.D., president, chief executive 2007 compensation7: $2,817,48311 North Shore University Hospital (516) 562-0100 $1,370.08 $1,312.0 915 6,639 712,911 310,091 at Manhasset www.northshorelij.com 4 300 Community Drive Manhasset, NY 11030 North Shore-Long Island Jewish Health System Executive6: Michael J. Dowling, president, chief executive, North Shore-Long Island Jewish Health System 2007 compensation7: $1,503,77312 Mount Sinai Hospital (212) 241-6500 $1,318.713 $1,253.314 1,40613 8,13913 685,38813 377,27813 1 Gustave L. Levy Place www.mountsinai.org 5 New York, NY 10029 Mount Sinai Health System Executive6: Kenneth L. Davis, M.D., president, chief executive 2007 compensation7: $1,135,837 Beth Israel Medical Center (212) 420-2000 $1,216.98 $1,210.5 1,111 6,535 637,769 285,995 First Avenue at 16th Street www.chpnyc.org 6 New York, NY 10003 Continuum Health Partners Inc. Executive6: David Shulkin, M.D., president, chief executive15 2007 compensation7: $705,371 NYU Langone Medical Center (212) 263-7300 $1,205.58 $1,079.2 1,069 6,817 602,700 240,905 550 First Ave. www.nyumc.org 7 New York, NY 10016 Independent Executive6: Robert I. Grossman, M.D., chief executive 2007 compensation7: $422,500 Long Island Jewish Medical Center (516) 470-7000 $1,120.08 $1,037.0 867 6,269 570,033 284,849 270-05 76th Ave. www.northshorelij.com 8 New Hyde Park, NY 11040 North Shore-Long Island Jewish Health System Executive6: Michael J. Dowling, president, chief executive, North Shore-Long Island Jewish Health System 2007 compensation7:—12 Hackensack University Medical Center (201) 996-2000 $1,116.7 $1,118.8 775 6,142 2,693,112 246,424 30 Prospect Ave. www.humc.com 9 Hackensack, NJ 07601 Independent Executive6: John P.Ferguson, president, chief executive 2007 compensation7: n/d St. Luke’s-Roosevelt Hospital Center (212) 523-4000 $1,039.48 $1,060.7 1,028 5,565 591,214 262,596 1000 10th Ave. www.chpnyc.org New York, NY 10019 10 Continuum Health Partners Inc. Executive6: Frank J. Cracolici, president, chief executive15 2007 compensation7: $637,570 Maimonides Medical Center5 (718) 283-6000 $915.6 $831.0 705 5,629 344,273 241,758 4802 10th Ave. www.maimonidesmed.org 11 Brooklyn, NY 11219 Independent Executive6: Pamela Brier, president, chief executive 2007 compensation7: $961,95016 Westchester Medical Center5 (914) 493-7000 $757.8 $707.3 635 4,113 98,192 197,413 100 Woods Road www.worldclassmedicine.com 12 Valhalla, NY 10595 Independent Executive6: Michael D. Israel, president, chief executive 2007 compensation7: n/d17 Winthrop-University Hospital (516) 663-0333 $725.4 $649.1 591 5,100 238,392 174,736 259 First St. www.winthrop.org 13 Mineola, NY 11501 Independent Executive6: Daniel P.Walsh, president, chief executive18 2007 compensation7: $619,200 Saint Vincent Catholic Medical (212) 604-7000 $708.4 $658.8 662 4,544 1,083,132 185,658 Centers - St. Vincent’s Manhattan www.svcmc.org 14 and St. Vincent’s Westchester Hospitals5 170 W. 12th St. New York, NY 10011 Saint Vincent Catholic Medical Centers Executive6: Henry J. Amoroso, president, chief executive19 2007 compensation7: $443,173 Bellevue Hospital Center20 (212) 562-4141 $680.8 $629.1 912 4,911 591,210 233,734 462 First Ave. www.nyc.gov/hhc 15 New York, NY 10016 NYC Health and Hospitals Corp. Executive6: Lynda D. Curtis, executive director, Bellevue Hospital Center; senior vice president, South Manhattan Health Network 2007 compensation: $245,42321 New York area includes NYC and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain’s uses staff research, extensive surveys and the most current references avail- able to produce its lists, but there is no guarantee that these listings are complete. To qualify for this list, a hospital must be located in the NY area. Hospitals are ranked by unrounded total operating expenses of separately incorporated facilities, as identified by Medicare number. Information was supplied by the hospitals unless otherwise noted. Operating expenses are for calendar year unless otherwise noted. n/d Not disclosed. 1-Hospital beds only, excluding nurs- ery; as of Dec. 31. 2-Full-time and full-time-equivalent only, including house staff; as of Dec. 31. 3-Includes emergency room, outpatient, home care, etc.; as of Dec. 31. 4-Excludes newborns; as of Dec. 31. 5-All 2008 figures are unau- dited. 6-Chief executive or highest-paid official in 2007. 7-Cash compensation figures were obtained from each hospital and verified against each hospital’s Form 990 for 2007--the latest available--unless otherwise noted. Figures exclude contributions to benefit plans and deferred compensation or expense account and other allowances, unless otherwise noted. 8-Unaudited. 9-On Jan. 7, 2008, Steven M. Safyer, M.D., became president and chief executive. 10- Due to Dr. Foreman’s retirement in Jan. 2008, this figure includes two annual bonuses; 2006 bonus of $557,142 paid in Jan. 2007, and 2007 bonus of $550,402 paid in Dec. 2007. 11-Compensation includes all affiliated institutions of MSKCC. 12-Michael J. Dowling’s compensation of $1,503,773 reflects compensation from all health entities. 13-Based on 2007 audited financial statements. 14-Based on 2006 audited financial statements. 15- Due to structural changes in Sept. 2008, Stanley Brezenoff, president and chief executive of Continuum, assumed chief executive responsibilities at all hospitals in the system. 16-Hospital did not disclose compensation. Figure obtained from hospital’s 2007 Form 990. 17-Hospital did not disclose compensation. Hospital is a public benefit corporation and does not file a Form 990. 18-On March 1, 2009, John F. Collins became president and chief executive. 19-On July 1, 2007, Mr. Amoroso became president and chief executive. 20-Hospital operates on a fiscal year; all data are as of June 30. 21-Compensation is for fiscal year ended June 2008. research: Denise Southwood, Maia Blume, Selena Shen ➚➚ PURCHASE THIS LIST AND ALL OF CRAIN’S BUSINESS LISTS @ WWW.CRAINSNEWYORK.COM/LISTS 16 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 17 3/19/2009 7:22 PM Page 1

REPORT HEALTH CARE UNEASY MONEY people who are at NYS hospitals’ bad 500% of the poverty Cracking down on unpaid bills debt and charity care, level, up from 300%. in billions of dollars. In this economy, medical receivables in 2008 and ex- via Medipent, banking $150,000. lenging,” says Mark Ru- 2002 $1.563 debt collectors are Hospitals seek ways pects to double its volume this year. “I like that it’s competitive and kavina, executive director walking a tightrope, to collect that won’t New Island Hospital,which fore- there’s a guaranteed return,”he says. of The Access Project. 2003 $1.573 observers note. sees a 10% increase in bad debt this Many hospitals are re- 2004 $1.646 “I’m reaching a pa- trigger a PR crisis year, is one of those seeking new ap- Care provider twice removed doubling efforts to con- tient who visited the proaches.In 2007,Drew Pallas,chief hospitals that use middlemen ap- nect patients to financial 2005 $1.640 hospital months ago, BY JUDITH MESSINA financial officer of the Bethpage,L.I., prove the bidders, set the collection aid sources, including 2006 $1.678 going after $300 in de-

hospital,put $7 million in written-off terms and choose the winning bids. Medicaid.New Island has Source: NYS Department of Health ductibles, and the pa- bracing for a recessionary tide accounts out to bid using Medi- But the practice worries some con- expanded its financial tient is out of work,” of bad debt,New York area hospitals pent’s online platform. It now has a sumer advocates,because it creates a counseling service. The says Ed Berenblum, are grappling with a tough question contingency arrangement with ERC layer between patient and hospital. North Shore-Long Island Jewish health care GM at Genpact, which this year:How far can a nonprofit go of Jacksonville, Fla. Mr. Pallas also “It may make people’s ability to system has increased its staff of provides billing services. “You can- to collect the money it is owed,when recently sold $8 million in old debt negotiate with collectors more chal- counselors and expanded services to not forget that.”
it has a mission to help people? Some hospitals are trying harder to help people enroll in government programs. Others are mining ac- counts to uncover missed revenue, turning over more receivables to col- lection agencies or—in a controver- sial new trend—using the Internet to auction off receivables or sell ® them outright. Now buy ANY BlackBerry, If patients are unable to pay,hos- pitals sometimes reduce the amounts they owe, which can help those who’d otherwise not be able to pay at get another one FREE! all. Hospitals may be forced to do that a lot more as cash-strapped con- sumers struggle just to pay the rent. Let our Small Business Specialists show you how you can do more with email and save. After spending six days at North Shore University Hospital in Man- A BlackBerry Smartphone lets you get more done on the go; stay on top of your email, open attachments, hasset with an E. coli infection a few edit files and more. Get the productivity of a BlackBerry on America’s Largest and Most Reliable 3G Network. years ago, then-uninsured New York City teacher Susan Halley And now, for every BlackBerry you buy, get another one free. went home with a bill for $27,000— Free BlackBerry Smartphone of equal or lesser value. New 2-yr. activation on voice plan with email feature, or email plan req’d per phone. almost as much as her annual salary. Last year, she worked out an agree- ment that reduced the tab to $8,000. “I explained to them, ‘I want to pay you, but I can’t pay the amount you’re asking,’ ” says Ms. Halley. Hospitals often have a tricky time collecting from patients. Patients who are uninsured face inflated bills because they aren’t covered by the lower rates negotiated by insurers. Some people, angry at the size of the tab or seeing health care more as a right than a choice, may shove such bills to the bottom of the pile. The PR nightmare for institutions that push too hard can have big repercus- sions—especially when people have many hospitals to choose from. Compensation or bust BlackBerry 8830 BlackBerry CurveTM BlackBerry StormTM BlackBerry PearlTM the recent increase in receivables World Edition The Smartphone that The world’s first touch Sleek inbox that works nationwide leaves institutions little International traveler knows how to have fun screen global BlackBerry where you do choice but to get more aggressive, that’s all business however.The value of uncompensat- $ 99 $ 99 $ 99 $ 99 ed care provided by U.S. hospitals 99 99 199 19 rose to $924 million in the third $169.99 2-yr. price – $70 $169.99 2-yr. price – $70 $199.99 2-yr. price. $119.99 2-yr. price – $100 quarter of 2008, an 8% increase from mail-in rebate debit card. mail-in rebate debit card. mail-in rebate debit card. the same period in 2007, the Ameri- can Hospital Association says. The Get the right tools for your small business. Contact a Small Business Specialist today. Healthcare Association of New York State estimates that hospitals here provide more than $1.6 billion in un- Call 1.800.VZW.4BIZ Click verizonwireless.com/smallbusiness Visit a Verizon Wireless storestore compensated care every year. Some hospitals are using the In- VERIZON WIRELESS COMMUNICATIONS STORES See store for Return/Exchange Policy.

ternet to bid out receivables to third BRONX NEW! 2150 White Plains Rd. 718-829-3179 NASSAU Massapequa 5070 Sunrise Hwy. 516-797-3880 parties. Or they’re auctioning old NEW! 416 Westchester Ave. 718-292-4111 Westbury 49 Old Country Rd. 516-937-2960 BUSINESSBUSINESS CUSCUSTOMERSTOMERSRS HABLAMOSHAH BLAMOS debt outright through middlemen MANHATTAN 342 Madison Ave. @ 43rd St. 212-856-6100 SUFFOLK East Northport 4000 Jericho Tpke. 631-499-1820 1-800-899-42491-800-899-4249 ESPAÑOLESPAÑÑOL such as Manhattan-based TriCap Union Square 859 Broadway 212-206-7587 Smith Haven 1 Smith Haven Mall 631-382-3720 Technology Group or Medipent, 57 W. 57th St. btwn. 5th & 6th Ave. 212-980-4860 WESTCHESTER Hartsdale 355 N. Central Ave. 914-286-4120 134 W. 34th St. btwn. 6th & 7th Ave. 917-351-8000 which got its start in Manhattan and 100 Wall St. & Water 212-510-6160 now operates out of Montana. NEW! 4251 Broadway @ 181 St. 212-781-6034 TriCap,which rolled out its plat- form in 2007, says it has a stable of Activation fee/line: $35. IMPORTANT CONSUMER INFORMATION: Subject to your Major Account Agreement or Customer Agreement, Calling Plan, rebate form and credit approval. Up to $175 early termination fee/line and other charges. Device capabilities: Add’l charges apply. Offers and coverage, 100 bidders and 200 hospital clients, varying by service, not available everywhere. Network details and coverage maps at verizonwireless.com. While supplies last. Shipping charges may apply. Rebate debit card takes up to 6 weeks & expires in 12 months. Limited-time offer. BlackBerry,® RIM,® Research In with 70 in New York and New Jersey. Motion,® SureType® and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. © 2009 Verizon Wireless. 76068 The firm disposed of $1.6 billion in

March 23, 2009 | Crain’s New York Business | 17 nb12p18-19cls.qxp 3/20/09 11:33 AM Page 18

COUNTRY CLUB MEMBERSHIP PUBLIC & LEGAL NOTICES

REQUEST FOR PROPOSALS Amalgamated Life Insurance NOTICE OF FORMATION OF Jeffrey Notice of Qualification of Maiden Re Colonia Country Club Insurance Services LLC. Authority Company is committed to pre- W. Varcadipane PLLC. Article of Executive Membership REQUEST FOR BIDS Organization filed with Secretary of filed with Secy. of State of NY (SSNY) Now Available RENOVATION, OPERATION venting fraud in regard to the State of NY (SSNY) 12/01/08 Office on 3/5/09. Office location: NY County. AND MAINTENANCE OF A insurance coverage it issues. location NY County. SSNY designated LLC formed in Delaware (DE) on as agent upon whom process may be 12/12/07. SSNY designated as agent NEWSSTAND AT CITY HALL Therefore, Amalgamated Life, PARK, LOCATED AT MURRAY served. Address SSNY shall mail any of LLC upon whom process against it STREET ON BROADWAY, MANHATTAN as required by the New York process is 500 W. 56 St., 821. NY, NY may be served. SSNY shall mail State Insurance Department 10019. Purpose of PLLC: engage in any process to: c/o National Registered All bids submitted in response to this RFB lawful act or activity. Principal Business Agents, Inc., 875 Avenue of the must be submitted no later than makes the following statement: location: 500 W. 56 St. NY, NY 10019. Americas, Ste. 501, NY, NY 10001. Wednesday, April 8, 2009 at 11:00 am. Address to be maintained in DE: 1209 We are pleased to announce that a Any person who knowingly and For more information, contact: Eve Orange St., Wilmington, DE 19801. limited number of Executive with intent to defraud any insur- Notice of Formation of DRMBRE APT Arts. of Org. filed with DE Secy. Of Mersfelder, Project Manager, NYC Parks 14D-12A, LLC. Arts. of Org. filed with Memberships are available for the & Recreation, Division of Revenue and ance company or other person, State, 401 Federal St., Ste 4., Dover, DE 2009 Golf Season. Concessions, 830 Fifth Avenue, the Secy. of State of NY (SSNY) on 19901. Purpose: any lawful activities. files an application for insurance 12/10/08. Office location: NY County. Priced at $2,000 per corporate Arsenal-Central Park, Room 407, New York, NY 10065 or call (212) 360-3407 or or statement of claim containing Principal office of LLC: 411 E. 53rd account, allows up to 8 employees to download the RFB, visit http://www.nyc. St., Unit 6F, NY, NY 10022. SSNY Notice of Formation of MP PEARL access for weekday golf plus full gov/parks/businessopportunities and click any materially false informa- designated as agent of LLC upon LLC. Arts. of Org. filed with Secy. of clubhouse and dining privileges. on the “Concessions Opportunities at tion,or conceals for the purpose whom process against it may be State of NY (SSNY) on 3/5/09. Office Contact Kevin Fiske, General Manager Parks” link. Once you have logged in, click served. SSNY shall mail process to location: NY County. SSNY designat- on the “download” link that appears of misleading, information con- at 732-381-9500 ext. 12 for details or adjacent to the RFB’s description. You can Michael Berger, 62 Sumner Rd., ed as agent of LLC upon whom on the web @www.ColoniaCC.net. also email her at eve.mersfelder@ cerning any factual material Greenwich, CT 06831. Purpose: Any process against it may be served. “2008 Best Country Club in Central New Jersey” parks.nyc.gov. there-to, commits a fraudulent lawful activity. SSNY shall mail process to: The LLC, Home News Tribune 545 Fifth Ave., Ste. 600, NY, NY TELECOMMUNICATION DEVICE FOR act, which is a crime. They will 10017. Purpose: any lawful purpose. THE DEAF (TDD) 212-504-4115 Notice of Formation of ODINARES, NETWORK CABLING be subject to a civil penalty not LLC. Arts. of Org. filed with Secy. of to exceed five thousand dollars State of NY (SSNY) on 03/03/09. Notice of Qualification of Flexion • Office Wiring • Voice • Data • Video Office location: NY County. Principal Management, LLC, App. for Auth. Notice of Formation of FEED THE and the stated value of the claim • Surveillance • Lobbies • LCD & office of LLC: 350 Fifth Ave., Ste. filed Sec’y of State (SSNY) 9/5/08. DOG, LLC. Arts. of Org. filed with Plasma Installations. for each violation. 4400, NY, NY 10118. SSNY designat- Office location: NY County. LLC org. Secy. of State of NY (SSNY) on 212-851-6983 Warnercable.net ed as agent of LLC upon whom in DE 9/3/08. SSNY designated as 02/24/09. Office location: NY County. Anyone knowing of a fraudulent process against it may be served. agent of LLC upon whom process SSNY designated as agent of LLC act should call Mark Schwartz at: SSNY shall mail process to the LLC against it may be served. SSNY shall upon whom process against it may PERSONALIZED at the address of its principal office. mail copy of process to 733 Third be served. SSNY shall mail process Amalgamated Life MATCHMAKING Purpose: Any lawful activity. Ave., 11th Fl., NY, NY 10017. DE to Corporation Service Co., 80 State Insurance Company office addr.: c/o CSC, 2711 St., Albany, NY 12207-2543. 333 Westchester Ave. Centerville Rd., Wilmington, DE ABURR LLC, a domestic Limited PERSONALIZED Purpose: Any lawful activity. 19808. Cert. of Form. on file: SSDE, White Plains, NY 10604 Liability Company (LLC) filed with the Townsend Bldg., Dover, DE 19901. MATCHMAKING Sec of State of NY on 2-4-09. NY 800-624-5844 Purpose: any lawful activities. Notice of Formation of PRODIGY Office location: NY County. SSNY is BETTER MATCHES CAPITAL GROUP, LLC. Arts. of Org. designated as agent upon whom WITH PHOTOS filed with Secy. of State of NY (SSNY) Notice of Formation of Neshgold, L.P. process against the LLC may be NOTICE OF FORMATION OF MONEY BACK GUARANTEE on 02/25/09. Office location: NY Application for Authority filed with Secy. served. SSNY shall mail a copy of ASHURST LLP. Notice of Reg filed County. Principal office of LLC: 72 of State of NY (SSNY) on 03/02/09. any process against the LLC served with NYS Dept of State Div of Hand-selected introductions Greene St., 2nd Fl., NY, NY 10012. Office location: NY County. Original upon him/her to Adrienne Cannella, Corporations on 11/29/07. SSNY designated as agent of LLC for attractive singles jurisdiction: Delaware. SSNY desig- 200 W. 57th St., Ste. 1304, NY, NY Jurisdiction: England & Wales. LLP upon whom process against it may be nated as agent of L.P. upon whom 10019. General purposes registered at Companies House, MEETOVERDRINKS.COM served. SSNY shall mail process to process against it may be served. London on 7/31/07. Address in the LLC at the address of its principal SSNY shall mail process to the L.P., England: c/o The Partnership, MANHATTAN 212.204.7315 office. Purpose: Any lawful activity. c/o Neil S. Goldstein, Esq., Robinson Notice of Formation of Alive Idea Media Broadwalk House, 5 Appold St, WESTCHESTER 914.698.8899 Brog Leinwand, et al., 1345 Ave. of the Group LLC. Arts. of Org. filed with Secy. London EC2A 2HA. Office location: CONNECTICUT 203.877.2500 Notice of Formation of RitaSue Americas, 31 Fl., New York, NY 10105. of State of NY (SSNY) on 5/15/08. New York County. Principal office of Siegel Resources, LLC. Articles of Purpose: any lawful act or activity. Office location: NY County. SSNY des- LLP: 156 W 56th St, NY, NY 10019. Organization filed with Secy. of State ignated as agent of LLC upon whom Secretary of State of New York process against it may be served. of NY (SSNY) on 3/11/09. Office Notice of Formation of ImageKing (SSNY) designated as agent of LLP SSNY shall mail process to: Greg W. location: NY County. SSNY designated Visuals LLC. Arts. of Org. filed with upon whom process against it may REAL ESTATE Brooks, 119 Fifth Avenue, 3rd Fl., NY, as agent of LLC upon whom process Secy. of State of NY (SSNY) on be served. SSNY shall mail process NY 10003. Purpose: any lawful activity. against it may be served. SSNY shall 2/13/09. Office location: NY County. to LLP at the address of its principal COMMERCIAL/NEW JERSEY mail process to the LLC, 17 West SSNY designated as agent of LLC office. Purpose: Any lawful activity. 54th St., 9B, New York, NY 10019. upon whom process against it may Notice of Formation of STRATEGIC Purpose: any lawful act or activity. be served. SSNY shall mail process EXPERIENTIAL GROUP, LLC. Arts. Notice is hereby given that a license, 25,000 Sq/ft to: 227 E. 45th St., NY, NY 10017. of Org. filed with Secy. of State of NY number 1219429 for liquor has been Avail. For Retail Lease NOTICE OF FORMATION of COREY Purpose: any lawful activity. (SSNY) on 02/18/09. Office location: applied for by the undersigned to sell DISTASIO, L.AC., PLLC. Articles of NY County. Principal office of LLC: liquor at retail in a restaurant under 49 W. 27th St., 5th Fl., NY, NY 10001. Elmora Ave. Elizabeth, NJ Organization filed with the Secretary Notice of Qualification of INTERMIX the Alcoholic Beverage Control Law of State of NY (SSNY) on 02/20/09. SSNY designated as agent of LLC at 308 East 6th Street, Store #2 (East AGENT, LLC. Authority filed with Secy. upon whom process against it may (718) 332-1111 Jon Chiaro Office location: NY County. SSNY has of State of NY (SSNY) on 03/06/09. Store), New York, New York 10003 for been designated as agent upon whom be served. SSNY shall mail process on premises consumption. Applicant- Office location: NY County. LLC to Corporation Service Co., 80 State process against it may be served. formed in Delaware (DE) on 02/23/09. M&R Restaurant Holdings Corp. The Post Office address to which the St., Albany, NY 12207-2543. SSNY designated as agent of LLC Purpose: Any lawful activity. TELECOMMUNICATIONS SSNY shall mail a copy of any upon whom process against it may be Notice of Qualification of LionHedge process against the PLLC served served. SSNY shall mail process to Paulson Recovery Fund, L.P., App. upon him is C/O the PLLC, 217 E. 22 Corporation Service Co., 2711 Notice of Registration of BRONSTEIN for Auth. filed Sec’y of State (SSNY) Street, #32, NY, NY, 10010. Date of Centerville Rd., Ste. 400, Wilmington, VAN VEEN & SCHUCK, LLP, a 1/15/09. Office location: NY County. LP Dissolution: No Specific Date. Purpose DE 19808, which is also the DE domestic LLP. Notice of Reg. filed org. in DE 1/14/09. SSNY designated of PLLC: Acupuncture. Street address address of LLC. Arts. of Org. filed with with the SSNY on 02/19/09. Office as agent of LP upon whom process of Principal Business location: 217 E. Jeffrey W. Bullock, Secy. of State, Div. location: NY County. SSNY has been against it may be served. SSNY shall 22 Street, #32, NY, NY, 10010. of Corps., 401 Federal St., Dover, DE designated as agent upon whom mail copy of process to c/o LionHedge 19901. Purpose: Any lawful activity. process against the LLP may be LLC, 405 Park Ave., Ste. 803, NY, NY served. SSNY shall mail a copy of 10022. DE office addr.: CSC, 2711 Notice of Qualification of The Catalyst process to: The LLP, 150 East 58th Credit Opportunity Fund, L.P. NOTICE OF FORMATION OF LIM- Centerville Rd., Wilmington, DE St., 21st Fl., NY, NY 10155. Purpose: 19808. Cert. of LP on file: SSDE, Authority filed with NY Dept. of State ITED LIABILITY COMPANY. NAME: To Practice The Profession Of Law. on 2/4/09. Office location: NY County. WILLIAM STREET HOSPITALITY Townsend Bldg., Dover, DE 19901. LP formed in DE on 6/10/03. NY Sec. LLC. Application for Authority was Name/addr. of each gen. ptr. avail. at of State designated as agent of LP filed with the Secretary of State of NOTICE OF FORMATION of Study SSNY. Purpose: any lawful activities. upon whom process against it may New York (SSNY) on 12/11/08. The Bright Tutors LLC. Arts. Of Org. filed be served and shall mail process to LLC was originally filed with the with Secretary Of State of N.Y. the principal business addr.: 767 Secretary of State of Delaware on (SSNY) on 12/30/08. Office location: Third Ave., 32nd Fl., NY, NY 10017. 11/19/08. Office location: New York New York County. SSNY designated DE addr. of LP: c/o Incorporating County. SSNY has been designated as agent of LLC upon whom process VISIT OUR WEBSITE Services Ltd., 3500 S. DuPont Hwy., as agent of the LLC upon whom against it may be served. SSNY shall Dover, DE 19901. Name/addr. of process against it may be served. mail process to principal business genl. ptr. available from NY Sec. of SSNY shall mail a copy of process location: Study Bright Tutors c/o Bruce CRAINSNEWYORK.COM State. Cert. of LP filed with DE Sec. to the LLC, 56 West 45th Street, 4th Brittain 305 West 76th St. NY NY of State, P.O. Box 898, Dover, DE Floor, New York, New York 10036. 10023. Purpose: Any lawful activity. 19903. Purpose: any lawful activity. Purpose: For any lawful purpose. 1181771 m3-Tu a7

18 | Crain’s New York Business | March 23, 2009 nb12p18-19cls.qxp 3/20/09 11:33 AM Page 19

PUBLIC & LEGAL NOTICES

Notice of Qualification of ASHBURN- Notice of formation of Limited Liability Notice of Qualification of JPMORGAN NOTICE OF FORMATION OF LIMIT- Notice of Formation of RAINMAKER HAM ROCK CAPITAL MANAGE- Company (LLC). Pamela Gale LLC. ASIA PRIVATE EQUITY FUND LLC. ED LIABILITY COMPANY. NAME: MANAGEMENT, LLC. Arts. of Org. MENT LLC. Authority filed with Secy. Articles of Organization with the Authority filed with Secy. of State of JAPY RESTAURANT LLC. Articles of filed with SSNY on 7/20/07. Office of State of NY (SSNY) on 01/30/09. Secretary of State of New York (SSNY) NY (SSNY) on 01/30/09. Office loca- Organization were filed with the location: New York County. SSNY Office location: NY County. LLC on 10/17/08. N.Y. Office location: NY tion: NY County. LLC formed in Secretary of State of New York designated as agent of LLC whom formed in Delaware (DE) on 01/26/09. County. SSNY has been designated Delaware (DE) on 11/12/08. Principal (SSNY) on 11/16/07. The latest date process against may be served. Principal office of LLC: 455 Central as an agent upon whom process office of LLC: 245 Park Ave., NY, NY of dissolution is 12/31/2075. Office SSNY shall mail process to: c/o The Park West, 19C, NY, NY 10025-3847. against it may be served. The Post 10167. SSNY designated as agent of location: New York County. SSNY has LLC, SHANE L. BENSON, 100 SSNY designated as agent of LLC Office address to which the SSNY LLC upon whom process against it been designated as agent of the LLC Suffolk St., Apt 1A, New York, NY upon whom process against it may be shall mail a copy of any process may be served. SSNY shall mail upon whom process against it may be 10002. Purpose: all lawful activities. served. SSNY shall mail process to against the LLC served upon her is process to c/o Corporation Service served. SSNY shall mail a copy of the LLC at the principal office of the C.O. the LLC. The principal address Co. (CSC), 80 State St., 6th Fl., process to the LLC, 111 Avenue C, ALICIA HALEGUA STYLE LLC LLC. DE address of LLC: Corporation of the LLC is 1 Central Park West, NY, Albany, NY 12207. DE address of New York, New York 10009. Purpose: Articles of Org. filed NY Sec. of State Service Co., 2711 Centerville Rd., NY 10023. Purpose character of LLC: LLC: c/o CSC, 2711 Centerville Rd., For any lawful purpose. (SSNY) 9/16/08. Office in NY Co. Wilmington, DE 19808. Arts. of Org. to engage in any lawful act or activity. Ste. 400, Wilmington, New Castle SSNY desig. agent of LLC upon filed with Secy. of State of DE, Div. of Cnty., DE 19808. Arts. of Org. filed Notice of Formation of HIP HOP USA whom process may be served. SSNY Corps., John G. Townsend Bldg., 401 Notice of Formation of WHEATLEIGH with Secy. of State of DE, Secy.of LLC, a domestic LLC. Arts. of Org. shall mail copy of process to 210 E. Federal St., Ste. 4, Dover, DE 19901. MANAGEMENT LLC. Arts. of Org. State Corp. Dept., Records Section, filed with the SSNY on 12/02/08. 65th St., Unit 17L, NY, NY 10065, Purpose: Any lawful activity. filed with Secy. of State of NY (SSNY) Townsend Bldg., Loockerman & Office location: NY County. SSNY has which is also the principal business on 01/23/09. Office location: NY Federal St., Dover, DE 19901. been designated as agent upon location. Purpose: Any lawful purpose. Notice of Formation of Last Voices County. Principal office of LLC: 15 W. Purpose: To invest in operating com- whom process against the LLC may (USA) LLC. Arts. of Org. filed with 39th St., 8th Fl., NY, NY 10018. SSNY panies and limited partnerships and be served. SSNY shall mail a copy of Notice of Qualification of Prosium Secy. of State of NY (SSNY) on designated as agent of LLC upon other pooled investment vehicles that process to: Curtis Sherrod, 323 West Fund Management, LLC, App. for Auth. 11/24/08. Office location: NY County. whom process against it may be make corporate finance and venture 138th St., Ste 300, NY, NY 10030. filed Sec’y of State (SSNY) 11/24/08. SSNY designated as agent of LLC served. SSNY shall mail process to capital investments. Purpose: Any Lawful Purpose. Office location: NY County. LLC org. upon whom process against it may the LLC at the address of its principal be served. SSNY shall mail process in DE 11/21/08. SSNY designated as office. Purpose: All lawful purposes. Notice of Qualification of BRC SPV I, BITS AND ATOMS, L.L.C. Art. of Org. to: c/o Frankfurt Kurnit Klein & Selz, agent of LLC upon whom process LP. Authority filed with Secy. of State Filed Sec. of State NY 1/30/2009 Off. P.C., 488 Madison Ave., 10th Fl., NY, against it may be served. SSNY shall Notice of Qualification of Antipodean of NY (SSNY) on 2/12/09. Office Loc. New York Co. SSNY designated NY 10022, Attn: Jerrold B. Spiegel, mail copy of process to Attn: John H. Advisors LLC filed under the original location: NY County. LP formed in as agent upon whom process against Esq. Purpose: any lawful activity. Pettey, 111 Broadway, 10th Fl., NY, name Antipodean Capital, LLC, App. Delaware (DE) on 2/6/09. SSNY des- it may be served. SSNY to mail copy NY 10006. DE office addr.: c/o CSC, for Auth. filed Sec’y of State (SSNY) ignated as agent of LP upon whom of process to THE LCC c/o Anthony 2711 Centerville Rd., Wilmington, DE Notice of Formation of JOSLYN LEVY 12/16/08. Office location: NY County. process against it may be served. Townsend, 115 E 9th St, Ste. 10H, 19808. Cert. of Form. on file: SSDE, & ASSOCIATES LLC, a domestic LLC org. in DE 12/15/08. SSNY des- SSNY shall mail process to: Daniel NY, NY, 10003. Purpose: Information Townsend Bldg., Dover, DE 19901. LLC. Arts. of Org. filed with the SSNY ignated as agent of LLC upon whom Beltzman, 1270 Broadway, Ste. 1009, technology consulting services. Purpose: any lawful activities. on 12/16/08. Office location: NY process against it may be served. NY, NY 10001, also registered agent. County. SSNY has been designated SSNY shall mail copy of process to DE address of LP: 2711 Centerville Notice of Formation of Clara Fox Notice of Formation of Engel Advisors, as agent upon whom process against Attn: Eric Chen, 499 Park Ave., 10th Rd., Ste. 400, Wilmington, DE 19808. Ricciardi, LLC. Arts. of Org. filed with LLC. Arts. of Org. filed w/ Sec. of State the LLC may be served. SSNY shall Fl., NY, NY 10010. DE office addr.: c/o Name/address of genl. ptr. available Secy. of State of NY (SSNY) on of NY (SSNY) on 1/15/09. Office mail a copy of process to: 230 W CSC, 2711 Centerville Rd., Wilmington, from SSNY. Cert. of LP filed with DE 1/15/09. Office location: NY County. location: New York County. Principal 105th St. Apt 9D, NY, NY 10025. DE 19808. Cert. of Form. on file: Secy. of State, Federal & Duke of York Sts., Dover, DE 19901. Purpose: SSNY designated as agent of LLC business address: 1075 Park Ave., Purpose: Any Lawful Purpose. SSDE, Townsend Bldg., Dover, DE upon whom process against it may 19901. Purpose: any lawful activities. any lawful activities. Apt. 5D, NY, NY 10128. SSNY desig- be served. SSNY shall mail process nated as agent for service of process Notice of Qualification of AG MORT- to: 123 Sullivan St., Unit #1, NY, NY against LLC & shall mail a copy to GAGE VALUE PARTNERS MASTER Notice of formation of Limited Liability NOTICE OF FORMATION of Law 10012. Purpose: any lawful activity. Leonard Witman Esq., Witman FUND, L.P. Authority filed with Secy. Company. Name: Wight Partners Office of Anna E. Vira, PLLC. Art. of Stadtmauer, P.A., 26 Columbia Tpke, LLC. Articles of Organization filed Org. filed 01/27/09 with Sec of State of State of NY (SSNY) on 02/06/09. Notice of Formation of 349 W 53 Florham Park, NJ 07932. Purpose: Office location: NY County. LP formed with the Secretary of State of New of NY (SSNY). Office in NY County. engage in any lawful activity. York (SSNY) on 1/7/2009. Office SSNY designated agent for service of Property, LLC, Art. of Org. filed Sec’y in Cayman Islands on 10/28/08. of State (SSNY) 12/10/08. Office Principal office of LP and Cayman location: New York County. SSNY has process against the PLLC with copy location: NY County. SSNY designated Notice of Formation of 72nd STREET Islands address is: c/o Ogier been designated as agent of the LLC mailed to the PLLC: 1040 Ave. of the as agent of LLC upon whom process HOLDING LLC. Arts. of Org. filed with Fiduciary Services (Cayman) Ltd., upon whom process against it may Americas, Suite 1101, NY, NY 10018. against it may be served. SSNY shall Secy. of State of NY (SSNY) on Queensgate House, S. Church St., be served. SSNY shall mail a copy of Purpose: law practice. mail copy of process to c/o Daniel 12/12/03. Office location: NY County. P.O. Box 1234, George Town, Grand process to the LLC, 150 East 93rd Stav, 349 W. 53rd St., NY, NY 10019. SSNY designated as agent of LLC Cayman, Cayman Islands. SSNY St., #4D, NY, NY 10128. Purpose: For Notice of Qualification of DSRM Purpose: any lawful activities. upon whom process against it may designated as agent of LP upon any lawful purpose. Brokerage LLC. Authority filed with be served. SSNY shall mail process whom process against it may be NY Dept. of State on 3/5/09. Office to the LLC, c/o Empire Mgmt., 347 served. SSNY shall mail process to Notice of Formation of NFF NEW location: NY County. Princ. bus. addr.: NOTICE OF FORMATION OF LIMITED Fifth Ave., 16th Fl., Ste. 1600, NY, NY c/o Angelo, Gordon & Co., L.P., 245 MARKETS FUND IX, LLC. Arts. of 255 Vista Valley Dr., Fruita, CO 81521. LIABILITY COMPANY. NAME: 86 10016. Purpose: Any lawful activity. Park Ave., 26th Fl., NY, NY 10167. Org. filed with Secy. of State of NY LLC formed in DE on 12/18/08. NY GUERNSEY, LLC. Articles of The registered agent of the company (SSNY) on 11/20/08. Office location: Sec. of State designated as agent of Organization were filed with the upon whom and at which process NY County. Principal office of LLC: LLC upon whom process against it Secretary of State of New York Notice of Formation of 15 William against the company can be served is 70 W. 36th St., 11th Fl., NY, NY may be served and shall mail (SSNY) on 07/21/08. Office location: Street 34-E, LLC. Arts. of Org. filed Corporation Service Co., 80 State 10018. The latest date on which the process to: c/o CT Corporation New York County. SSNY has been with Secy. of State of N.Y. (SSNY) on St., Albany, NY 12207. Name and LLC may dissolve is 11/19/2058. System, 111 8th Ave., NY, NY 10011, designated as agent of the LLC upon 2/18/09. Office location: NY County. address of each general partner are SSNY designated as agent of LLC regd. agt. upon whom process may whom process against it may be SSNY designated as agent of LLC available from SSNY. Arts. of Org. upon whom process against it may be served. DE addr. of LLC: 1209 served. SSNY shall mail a copy of upon whom process against it may be filed with The Registrar of Companies, be served. SSNY shall mail process Orange St., Wilmington, DE 19801. process to the LLC, c/o Shupack & served. SSNY shall mail process to: c/o Ground Fl., Citrus Grove Bldg., to Nonprofit Finance Fund at the prin- Arts. of Org. filed with DE Sec. of Hardy, LLP, 450 Seventh Avenue, Snitow Kanfer Holtzer & Millus, LLP, Goring Ave., George Town, Grand cipal office of the LLC. Purpose: Any State, 401 Federal St., Dover, DE 13th Floor, New York, New York 10123. 575 Lexington Ave., 14th Fl., NY, NY Cayman, Purpose: Any lawful activity. lawful activity. 19901. Purpose: any lawful activity. Purpose: For any lawful purpose. 10022. Purpose: any lawful activity.

March 23, 2009 | Crain’s New York Business | 19 CNYB 03-23-09 A 20,21 3/19/2009 8:50 PM Page 1

BUSINESS buck ennis

GOTHAM GIGS From music to meringues Leaving front lines, JOHN DELUCIE, 47, wanted two things from his career: never to have to wear a business suit or shave ever again. Now the making fresh starts executive chef at The Waverly Inn, he’s fulfilled his goals. Returning veterans look toward new goals ROCK ’N’ ROLL An avid guitar player who dreamed of being a BY DANIEL MASSEY rock star, he scored numerous gigs while attending NYU. rmy staff sgt. brian laguardia lost some of his best friends in Iraq, But he knew that one day, he had to get serious. A few years but their deaths are not the ones that haunt him the most. Since he later, he started working in returned to New York City almost two years ago, four members of his sales and advertising. 180-person unit have committed suicide. SLICE AND DICE Around his “We lost people there.That is terrible but understandable, because 30th birthday, he took a New you’re at war,” he says. “It’s a lot harder to explain losing soldiers back School cooking class that here. You feel something has failed.” prompted him to switch gears. Sgt. Laguardia, 35, wants to do something about that failure. One in five newly He landed his first job slicing prosciutto at Dean & DeLuca Adischarged veterans experience symptoms of post-traumatic stress disorder or major and spent the next few years re- depression, and Sgt. Laguardia thinks that giving them ways to use the skills they fining his kitchen skills. In late developed in the military would help smooth their transition to civilian life. 2006, Mr. DeLucie became a He wants to start an organization that would send veterans back into conflict areas in partner at The Waverly Inn— Vanity Fair editor Graydon relief roles, enabling them to help people while also developing more positive memories. Carter’s celebrity haunt. “You need people in this kind of work who have been in combat, been in tough situations,” Sgt. Laguardia says. SWEET SUCCESS The restau- rant, which has original works of art lining the walls, caters to To achieve his goal, he enrolled down. He served three tours flying secure that highly coveted spot of the city’s elite.The icing on the in a master’s program in global af- C-130s over Iraq and Afghani- staff writer at Newsday.” cake: Mr. DeLucie’s memoir fairs at New York University; he stan,and returning to the streets of For other local veterans, their The Hunger, on the transition hopes to land a job with the Unit- Queens couldn’t live up to the ex- service inspired careers in social from the office to the kitchen, ed Nations or a major relief agency. citement of transporting Iraqi work. will be released May 12. Sgt. Laguardia isn’t the only President Jalal Talabani to a meet- Sgt. Michael Day joined the —maia blume New Yorker to gain career inspira- ing with President George W. Marines out of high school and tion while serving in Iraq or Bush. But the 33-year-old is ea- served a tour in Iraq from February Afghanistan. Pursuing careers in gerly awaiting the fall, when he’ll to July in 2003.In Iraq,he was part EXPERT OPINIONS fields like social work, journalism head to journalism school. of a combat support team that pro- and photography has helped serv- Maj. Irani had been interested vided security for a commanding SECRETS FOR ONLINE ice members turn some of the most in writing since winning an essay general. SUCCESS devastating aspects of their experi- contest in sixth grade, but power- Life-changing events understand your oppor- ences into positives. ful childhood memories of his un- President Barack Obama has cle, an Indian Air Force pilot, led he arrived in Al Dinawiya just tunity online. Look at your laid out plans to bring home him to dream of flying. When after Iraqis had burnt down the competitors’ Web sites and see most of the 142,000 he arrived in the Middle city’s college of science. how they are marketing their troops now serving in East for his first tour in “It was a powerful moment,” brands. Come up with specific Iraq by August 2010. 2005, his second career Sgt. Day says.“It made me want to priorities so you don’t waste While the draw- 142,000 path started to emerge. be in a role where I could create time and money, and write out down there will allow “When I first got to policy that would help restructure an online marketing plan. U.S. TROOPS serving for a troop increase in in Iraq; Obama plans Iraq, I noticed there institutions that were being de- Search engine optimization Afghanistan—esti- to bring most home was a lot more to what stroyed.” will increase the visibility of mated at 17,000— by 2010 we were doing than just Back home, dreams of rebuild- your site, so make sure it’s not floods of service mem- blowing stuff up left and ing ran headlong into the reality of Flash-heavy and the content is bers will be returning home. right,” Maj. Irani says, echoing a crumbling personal life. His wife live. Develop appropriate Web Mr. Bush’s complaint that papers had a miscarriage while he was copy, and take a look at your Falling between the cracks weren’t covering the whole story. away, and their time apart made overall brand. Have a PR kit “the readjustment is the big- So, between his first two tours, them “complete strangers,”leading ready to help expand your gest piece,” says Joseph Bello, he convinced Newsday to let him to a divorce. network. assistant director of the Veteran start a blog. He wrote about flying Sgt.Day was reduced to stocking —jasmine sandler Services Office at LaGuardia over Saddam Hussein’s home- shelves in a Chicago Target store. President and founder Community College. “You’re used town, Tikrit, and about transport- One day, he simply broke down. Agent-cy Online Marketing Inc. to a structured environment, and ing flag-draped coffins.In August, “I had led 20 Marines in Iraq,” you come back to a city of 8.3 mil- he told readers of his mission to be- he says.“I had this 18-year-old kid lion and get lost in the crowd.” come a journalist. in charge of me, and I had just For retired Air Force Maj. Jay “I’m going to pursue a new set served in a war. I started to cry.” Irani, coming home has been a let- of goals,” he wrote, “and one day See VETS on Page 23 istockphoto

20 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 20,21 3/19/2009 8:51 PM Page 2 buck ennis SECOND SIGHT: Taking photos gave Chris Vongsawat a new outlook on his tour of duty. Pictures worth a thousand tours Soldier finds real Afghanistan

BY DANIEL MASSEY rom behind the bulletproof glass of his armored vehicle, Afghanistan became a jumble of targets and threats. The countryside, the mountains, the people all vanished in the haze of war. “When you go down a highway, you’re thinking: ‘What’s the distance between me and the next vehicle? Where are possible enemy Fpositions? How are we going to react?’ ” says 1st Lt. Chris

Vongsawat, 28, who returned in for architectural projects. In 2007, January after a year in the war- however,while serving in the New torn land. “It’s sad when you’re in York National Guard, he got the a country as beautiful as Afghan- call: He was needed to help train istan and the humanity of the Afghanistan’s troops. place disappears.” The timing could not have been He joined the Army out of high worse. Reading Martin Luther school, eager to prove his man- King Jr., Mohandas Gandhi and hood and erase memories of a Howard Zinn had transformed childhood during which he was Lt. Vongsawat’s views on war, and routinely taunted and mugged on by the time he arrived in Kabul last the streets of the Bronx. He spent March, he had no desire to partic- two years on active duty in Hawaii. ipate in a conflict he opposed. Then, through the Reserve Offi- “It’s something I struggled with cers’ Training Corps program, he constantly,” he recalls. earned a design degree at the At first, Lt. Vongsawat just Rochester Institute of Technology. wanted to tough out his tour and He moved back to New York, get back home. But his experience landing a job at a Manhattan firm took on a new sense of meaning af- where he created 3-D renderings See REAL on Page 23

IMAGES OF AFGHANISTAN To view a selection of CHRIS VONGSAWAT’S pictures from his tour of duty, log on to www.crainsnewyork.com/afghanistan

SPOILS OF WAR: Frustrated by the media coverage of Iraq, Jay Irani started a blog to tell his side of the story. He now plans to become a journalist. buck ennis

March 23, 2009 | Crain’s New York Business | 21 CNYB 03-23-09 A 22 3/19/2009 8:04 PM Page 1

BUSINESS LIVES CORPORATE LADDER Eric Hara Chef bets on Oak Room Rising star meets see if I can make it on my own name.” PERSONNEL FILE challenges of fabled The restaurant had been closed since Feb. 28, after the departure of EATERY Oak Room, Plaza Hotel eatery head-on chef Joel Antunes.The pricey menu TITLE Executive chef was a problem, say the owners, who have jettisoned Mr. Antunes’ $26 AGE 30 BY LISA FICKENSCHER burger and $58 lasagna appetizer. RÉSUMÉ Executive chef, Fishtail Mr. Hara’s incarnation features and David Burke Townhouse t least one young comparatively affordable American chef is willing to take a fare,such as braised short ribs for $32. PERSONALITY Boisterous gamble in his career HOBBIES Painting, skateboarding during this recession. Eat-in kitchen Eric Hara, new chef of “we want to make people feel like the Plaza Hotel’s Oak Room, left a they are eating in their own And the Plaza faces its own array

A buck ennis secure job with celebrity chef David kitchen,” says co-owner Joey Alla- of challenges. It finished a glitzy Burke for a famed though troubled ham. $400 million renovation in time for restaurant that needs to reinvent it- That’s a tall order.With its vault- a punishing recession, the famed A revamped menu and tweaks to “I got arrested a few times,” Mr. self—fast. ed ceiling, dark-wood paneling and Palm Court restaurant was closed at the decor at the Oak Room and Oak Hara says. “I was going down a bad “A lot of people think I’m crazy,” chandeliers, the Oak Room is more the end of last year as a money loser, Bar won’t change the formal image, path.” says Mr. Hara, who relaunched the regal than homey—not to mention and some condo owners are dissat- but colleagues say Mr. Hara has the He quit high school at 16,and his spot last week.“But I figure that I’m that it resides in one of the city’s isfied with the quality of their new cooking chops to overcome that concerned grandfather reached out young and can roll the dice now to most opulent hotels. residences. challenge. to contacts in the food business to “If there is a guy who can turn it help get the boy into culinary school around, Eric is the one,” says Del- in Santa Barbara. monico’s Executive Chef Rick Laakkonen,who five years ago hired Lifesaver Mr. Hara as his executive sous chef “cooking saved my life,” says Mr. at Tao. “He’s fearless, and truly has Hara, who was also inspired by his the temperament to handle the job.” Lebanese father, a talented cook. Mr. Hara spent three years in the Though Mr. Hara never com- Burke empire. He was executive pleted high school, he earned his chef at David Burke & Donatella— culinary credential and got an asso- which became David Burke Town- ciate degree from Santa Barbara house—and was most recently at City College. After working in top Fishtail,which opened late last year. kitchens from California to Canada, Mr. Burke declined to comment for he arrived in Manhattan in 2003. this story, and Mr. Hara concedes Then a newlywed, he now has a 2- that his former boss remains angry year-old son. with him for leaving. Mr.Hara knows the Oak Room’s The young toque is no stranger owners have a lot invested and that to conflict. He grew up in a tough the pressure to perform is enor- neighborhood in Los Angeles, mous.“But at the end of the day,”he where as a young teenager he ran says,“you just have to go in there and COZENCONFIDENCE into trouble with the law. put your head down.”
EXECUTIVE MOVES

ACCOUNTING & CONSULTING relationship manager. He had been Bain & Co.: Natan Shklyar, 34, was named managing director and head of financial partner. He was director and managing planning, multifamily office group, at partner at Arthur D. Little Inc. US Trust. Protiviti: Martin Breheny, 33, was Phil Kircher, Trial Lawyer promoted to director from associate LAW director. Hartman & Craven: Anne E. Pitter, 47, was named partner. She had been a ADVERTISING & COMMUNICATIONS partner at Thelen. Winning takes confidence. Ketchum: Jonathan Kopp, 42, joined as Phillips Nizer: Elliot E. Falk, 56, joined as global director of Ketchum Digital. He partner. He had been counsel at Herrick Whether you need an unrivaled trial lawyer or corporate formerly was partner at SS+K. Feinstein. counsel who understands your business, our attorneys VoodooVox: Gregory Wester, 45, was Roberts & Holland: Debra Silverman have the training and flexibility to help you win. promoted to chief operating officer from Herman, 34, was promoted to partner vice president of product and strategy. from counsel. For worldwide offices, visit us at cozen.com. FINANCE & INSURANCE MEDIA & ENTERTAINMENT Basis Investment Group: Tammy K. Gas Station TV: Victor Germain, 40, was Heyman, 42, was appointed president. named senior vice president of business She was formerly senior managing development. He had been vice director at CWCapital. president of national sales, Eastern Cohen & Steers Inc.: David Edlin, 47, region, at Screenvision. joined as senior vice president and MTV Networks International: Mark Jones, national sales manager. He was 40, joined as senior vice president of previously national sales director at Viacom brand solutions. He previously Geoffrey D. Ferrer, Office Managing Partner AllianceBernstein Investments. was vice president of Viacom brand 16th Floor, 45 Broadway Northern Trust: John Voltaggio, 38, was solutions at MTV Networks. New York, New York 10006 named senior vice president and lead 212.908.1201 | [email protected] The confidence to proceed. REAL ESTATE Colliers ABR Inc.: Steve Braun, 60, joined ® Find Crain’s calendar listings for as director. He had been a director at © 2009 Cozen O’Connor The Weeks Ahead online at www.crainsnewyork.com/events Cushman & Wakefield Inc.

M —maia blume

22 | Crain’s New York Business | March 23, 2009 CNYB 03-23-09 A 23 3/19/2009 8:53 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape Like Grandma used to make Zanaro’s of White Plains serves great- tasting Italian comfort food; price is right

n apb—All Palates Bul- letin—is hereby issued to fans of creative, top- quality and value- packed Italian food.Re- Aport at once to Zanaro’s in the AT THE ‘VILLA’: White Plains City Center. Atten- Zanaro’s chef Joe tion must be paid to the kitchen’s ZANARO’S DiMaggio Jr. and 1 Mamaroneck Ave. owner Zane Tankel. new commander, who is turning the (at Main Street) four-year-old restaurant in a former White Plains buck ennis bank on its savory ear.This bank re- (914) 397-9400 turns your interest with a delicious www.zanarosny.com proof ” menu. He attributes many dressings, such as tangerine vodka bia.They provide a homey backdrop payout. ### recipes to his Italian grandmoth- and tarragon (no fat). World-class for the likes of seafood fra diavolo, Almost 300 guests may be seat- ers—one from the north, near creamy polenta is slathered with braised short ribs over pasta or ed under a 40-foot ceiling in a CUISINE Italian Como, the other from Sicily. A wild mushrooms and shallots in veal bone-in chicken scarpariello with David Rockwell-designed, bal- WINES 50 choices, five by the glass Bolognese sauce of three meats sim- demi-glace hyped with dry Marsala, sausage and peppers. Chef DiMag- conied “villa.”Up to 16 patrons may mers six hours before additions of artichoke ragout and molten pro- gio’s crew has a wonderful way with DRESS No code dine inside the villa’s vault. cognac, tomato paste and 75 cloves volone. It is among the best $9 val- fish of all kinds, creating mojito Zanaro’s chef and managing NOISE LEVEL Moderate of garlic. This is for tossing with ues anywhere! sauce for swordfish,cooking sea bass partner, Joe DiMaggio Jr., is so gift- PRICE RANGE $16-$22 rigatoni and stuffing mozzarella- Another stunner is a trio of in a miso crust and adding wild ed—and his food so captivating— WINE MARKUP 110%-200% covered hot peppers. plump, butterflied shrimp, pan- mushroom fumé, and giving tender that I could not wait to revisit this CREDIT CARDS All major Chef DiMaggio makes sure seared under butter, parsley, lemon, diver scallops a flavorful crust. 17,000-square-foot extravaganza to farmed rabbits are fed a diet of ju- white wine, garlic and olive oil. Italian desserts don’t normally see if everything was as good as the RESERVATIONS Suggested niper berries, sage and apples for Zanaro’s Neapolitan-style 12- rate raves, but Zanaro’s do. Lemon- first time. It was. HOURS Mon.-Thurs., 11 a.m.-11 p.m., seven weeks before delivery. inch pizzas and generous pastas coconut polenta cake and choco- Credit Zanaro’s owner,restaurant Fri.-Sat., 11 a.m.-midnight, Sun., 11 Zanaro’s bakes everything on continue the quality beat. Pizza in late-hazelnut napoleons are mind- entrepreneur Zane Tankel (Apple- a.m.-10 p.m. premises, including toothsome cia- Purgatory sports poached eggs and blowers. There is also a superior bee’s franchises,Chevy’s),with luring ####= Outstanding batta bread that’s sliced and garlic- spicy pepper oil in addition to San tiramisu as well as a yummy ode to chef DiMaggio—a distant cousin of ###= Excellent oiled before being crowned with im- Marzano tomatoes, basil and Ro- Almond Joy candy bars. baseball’s Joe D.—to White Plains. ##= Very good ported Sicilian tuna, white beans mano cheese. Artichokes, cara- Here is food as we want and need For a Glen Cove native whose early #= Good and capers, or with grilled shrimp, melized onions and sautéed spinach it today—great tasting, comfort- years were divided between Long Is- basil and cherry tomatoes. All soups are among seven items on the crisp, steeped and priced right. Friendly, land and Italy, the siren song of the are made to order, including one of thin vegetarian pie. knowledgeable servers and awe- kitchen came at age 9.He saw an Ital- ter helping to build hundreds of (Grandma’s) all-time great pasta e Many items are prepared and some surroundings complete a com- ian chef driving a Ferrari. restaurants around the world. fagioli. served in black clay pots made by the pelling package. Chef DiMaggio now alternates At Zanaro’s, he harnesses a pas- First-course dishes ($5 to $14) La Chamba Indian tribe in a small The modest wine list has no between a Ferrari and a Corvette af- sion for food and art in a “recession include salads with imaginative village visited by the chef in Colom- vintages.

But in January,upon his return to Vets’ fresh starts Real Afghanistan New York, he learned that his firm had virtually collapsed amid the re- cession. Without a steady income, Continued from Page 20 Continued from Page 21 living their lives,” he says. he was forced to put his career The 29-year-old was recently di- ter he went on eBay and bought a He snapped pictures as he trav- change into fast-forward. agnosed with PTSD, but some of Nikon digital camera. He realized eled each day up and down Jalalabad As he files for conscientious- his most difficult experiences are that it could be a therapeutic vehicle Road in Kabul.He took photos as he objector status and an honorable helping him forge a new career.The to help him through the year. participated in the largest convoy of discharge from the Army,Lt.Vong- veteran, who majored in sociology “If I could take pictures of peo- the American occupation, through sawat is scraping by on unemploy- and political science at Northwest- ple,” he thought,“I could establish a five of the most dangerous provinces. ment benefits and savings, while ern,is now working on a master’s de- connection and take away this guilty From inside his vehicle, he turned hoping to land a job as a photogra- gree at the Columbia University WORK FORCES: Michael Day’s experiences feeling, this feeling of weakness.” his lens on ordinary Afgha- pher’s assistant.Two of his pic- School of Social Work, with an em- have led him to pursue a degree in social work. Lt. Vongsawat started snapping nis, until he had 17,000 tures—one of his convoy in phasis on policy. He’ll begin an in- photos, lots of them. He shot pic- images in all. a sandstorm and another ternship next year with the United tures of an abandoned tank factory His perspective on showing an Afghani Nations Development Program and a sense of hopelessness. covered in graffiti,an American sol- the country and his ex- 17,000 cook in a military dining hopes to eventually help rebuild She’s now in a master’s program dier training a group of Afghanis,an perience there flipped PHOTOGRAPHS facility—were included war-torn areas. at NYU’s Silver School of Social SUV ravaged by a suicide bomber. upside down. of Afghanistan shot by in “2,191 Days and Brooklyn native Mariel Sosa is Work and is working full-time at a “Taking photos became my sec- “It reframed the way Chris Vongsawat Counting,” a recent exhi- pursuing the clinical side of social Department of Veterans Affairs ond mission every day,” he says. I looked at what I was bition on the Iraq and work. She had studied the subject as health facility in Manhattan, where Because he spent most of his time going through,” Lt. Vong- Afghanistan wars held at the an undergraduate, but serving two she helps vets make the transition in his military vehicle, Lt. Vong- sawat says. Powerhouse Arena in Brooklyn. tours in Iraq from 2003 to 2005 back to civilian life. sawat felt he was unable to capture a It also inspired him to become a “His images resonate,” says helped focus her practice. The 28- “The population is near and dear complete view of the country—un- professional photographer. He de- Maya Joseph-Goteiner, co-curator year-old remembers how she once to me,”she says.“I want to help them til he started taking photos through cided that when he got home, he’d of the exhibit. “They have that hu- had to take an M4 weapon away maneuver through a system that can the bulletproof glass in front of him. take classes and gradually make the man quality that a lot of images of from a friend who was overcome by be overwhelming at times.”
“I started to see the real people transition away from his old job. war don’t have.”

March 23, 2009 | Crain’s New York Business | 23 CN012779 3/6/09 3:49 PM Page 1

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