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INSIDE

TOP STORIES Vanity publishing’s REPORT next chapter: online Crain’s picks growth spurt ® six standouts PAGE 2 PAGES 13-18 Fans thirsty for VOL. XXVI, NO. 22 WWW.CRAINSNEWYORK.COM MAY 31-JUNE 6, 2010 PRICE: $3.00 World Cup soccer hit the city’s ethnic bars PAGE 2 Why Steve Rattner was booed at big BIZ ANDY hedge fund confab IN THE MARKETS, PAGE 4 What’s not to love in Cuomo’s Go on; guess what Albany agenda? Still, don’t think Google’s worth to New York City he’s not a big-government guy PAGE 12 BY ERIK ENGQUIST Q&A: Jon Tisch gets if new york’s business community had written Andrew Cuomo’s a dose of Super gubernatorial platform itself, the document would not have looked Bowl fever in May much different. All of its Holy Grails are in the 224-page plan. Caps on PAGE 26 state spending and property taxes? Check. No sales- or income-tax in- creases? Check. A freeze on government salaries? Check. Add in pledges to downsize state government, make public pensions less gen- erous and overhaul economic-development programs, and enthusiastic reactions are easy to find. “We’re very pleased,” says Kenneth Adams, president of The Busi- ness Council of New York State.“These are economic reforms that will drive private-sector job growth.” “I couldn’t believe it when I read it,” gushes Kathryn Wylde, president of the Partnership for New York City. Still, there are red flags for business. Mr. Cuomo favors requiring state approval of health insurance rates, which business groups gener- ally oppose. His plan describes Indian Point See BUSINESS on Page 23

EDITORIAL Reformers must rally to break Albany’s status quo Page 10 BUSINESS LIVES GREG DAVID How Cuomo’s strategy makes others share in the hard work Page 11 GOTHAM GIGS newscom Celebrity tailor measures up P. 25 G ANNE FISHER on a business contest just How union prevailed SL Green for women P. 25 G GAEL GREENE discovers on buying a secret garden P. 27 in city’s Tavern deal Union chief wary of operator from start spree INDEX negotiate a labor contract covering NEW YORK, NEW YORK Landlord gambles ______6 BY LISA FICKENSCHER Tavern’s 400 employees. NEIGHBORHOOD JOURNAL ______7 They first met a year ago, when on firming economy THE INSIDER ______8 the collapse in the negotiations Mr.Poll suggested that they get to- and rising rents REAL ESTATE DEALS PLUS ______9 between restaurateur Dean Poll, gether, along with his attorneys, at CLASSIFIEDS whom the city chose to run Tavern Mr. Ward’s office on Ninth Av- ______19 BY THERESA AGOVINO

on the Green, and union boss Pe- enue in midtown. The restaura- newscom FOR THE RECORD ______22 ter Ward may have surprised a lot teur, who was feeling confident HOT JOBS LAKE EFFECT: Following the tumult, the ______25 of people—but the breakdown was about his chances to win the city’s mayor has threatened to eliminate Tavern. a dearth of bargains, the still- EXECUTIVE MOVES ______25 a long time in the making.The pair approval to operate Tavern,said he tenuous recovery and tight credit

THE WEEK AHEAD ______27 clashed many months before they wanted more information about markets are keeping most would-be sat down together in late 2009 to the business’s labor agreement. promised $25 million in capital im- buyers of Manhattan commercial During the meeting, Mr. Poll provements on the building. “I felt real estate on the sidelines.

22 quickly concluded that he couldn’t that my hands were tied, that the Not mighty SL Green Realty

5 accept the terms. While he had no union demands would not enable Corp., which already owns 23 mil- beef with the wages and other ben- me to have the control I needed.” lion square feet of space in Manhat- efits,he took issue with the pension Mr.Ward,president of the New tan. fund,job categories,work rules and York Hotel & Motel Trades Coun- Since the beginning of the year, ELECTRONIC EDITION arbitration arrangements. cil, was immediately turned off. New York’s largest commercial “I wanted to get a return on my “We pressed him to sign an landlord has purchased two office NEWSPAPER See UNION on Page 23 See SL GREEN on Page 23

71486 01068 investment,”says Mr.Poll,who had 0 20100531-NEWS--0002,0003-NAT-CCI-CN_-- 5/28/2010 8:27 PM Page 1

IN BRIEF HEALTH INSURER AETNA HAS TOLD LOCAL HOSPITAL CHAIN CONTINUUM HEALTH Global fans share a Partners to “prepare for termination” of a contract that expires June 5, according to a Continuum e- mail to its affiliated doctors last Friday. Contract negotiations are scheduled to continue this week, In New York, it’s easy to catch soccer but both sides are publicly talking tough. An Aetna spokesman says Continuum is asking for fever at a variety of bars and restaurants new rates that are nearly 20% higher over a three- year period than the insurer is willing to pay.The contract affects some 48,000 Aetna patients of But thanks to the growth of satellite and Beth Israel Medical Center, St. Luke’s- BY HILARY POTKEWITZ cable offerings, and new waves of soccer- Roosevelt, Long Island College Hospital and mad immigrants over the past decade, it’s New York Eye and Ear Infirmary. thirty-two teams from six continents now quite easy to find sports bars showing will compete next month in soccer’s FIFA the full tournament. A DEAL BY THE ASSOCIATED PRESS TO RENT World Cup,the world’s most popular tour- For those hoping to cheer for SPACE TO AN ADVOCACY GROUP HAS RAISED nament, which kicks off June 11 in South their team in a crowd of fel- hackles among AP staffers.The AP’s Global Africa. low countrymen, or Media Services division has leased space in the In New York,it’s easy to catch the fever. those seeking a more company’s Washington, D.C., building to WIN Nearly every nation can claim a few bars or authentic “foot- TV, the television arm of Council for a restaurants, and the monthlong tourna- ball” experience, Democratic Iran. WIN TV will also use AP’s ment is an excuse for bar owners to fly na- Crain’s offers a television studio.The News Media Guild, tional flags and brag about the size of their list of ven- which represents AP staffers, has questioned … flat screens. getty images the ethics of renting to an advocacy group and Thousands of Big Apple barkeeps are the security issues involved in having the group calculating time zones (South Africa is six in the building. An AP spokesman says it will hours ahead), renting TV projectors and address the matter with the union. planning breakfast menus. It’s good busi- ness: The tournament can bring a huge THE CORO NEW YORK LEADERSHIP CENTER IS revenue boost for establishments able to NOW ACCEPTING APPLICATIONS FOR tap into the frenzy. Leadership New York, its mid-career leadership “We’d get shot if we didn’t show the The tournament program, which seeks civic-minded candidates World Cup,” says Edgar Ferreira, co-own- from the private, public and nonprofit sectors er of O Lavrador Restaurant and Bar, a can bring a huge who are committed to strengthening New York Portuguese-Iberian place on 101st Avenue City.The part-time program begins in in Jamaica, Queens. More than 1,000 revenue boost for September and concludes in May. Coro New Queens residents are Portuguese-born, York is hosting an upcoming information and another 3,000 are native Spaniards, local businesses session June 10, and the application deadline is which means plenty of rabid soccer fans. July 2.To get more information, or to RSVP for an information session and to apply, visit Opening early www.coronewyork.org or e-mail like many nightspots, O Lavrador will [email protected].
open at 7 a.m.for early games.Mr.Ferreira sets up a 10-foot projection screen in addi- ues sure to set the right mood. ONE TO WATCH: tion to his six giant flat-screen TVs. As for As one of just three South African Portugal’s BY THE NUMBERS breakfast, he sees no need to stray from the eateries in the city, Madiba Restaurant, on Cristiano Ronaldo typical Iberian menu of seafood, meat and Dekalb Avenue in Fort Greene, Brooklyn, Weekly shift of the city’s economy sausage. is playing up its host-country role. South “When you’re watching soccer, you African owners Mark and Jenny MEDIOCRE AT BEST From city job numbers to don’t want pancakes and eggs,” he says. Henegan will hold an opening cer- national figures on home sales and consumer “You want a steak sandwich.” emony party with live music.  confidence, signals all pointed up, but hardly dramatically. At least the Euros settled down. During the World Cup, O Lavrador’s They’ll broadcast every match live crowd can grow by 40%. Though proudly on giant video screens and conduct Portuguese, Mr. Ferreira admits his loyal- interviews with locals attending the $502M 1.23% $3.25M ties are split as a business owner. He’ll se- games via Skype. VALUE MANHATTAN VALUE of Leon cretly cheer for Spain, too. “The farther To watch reigning World Cup of NY area APARTMENT Levy Foundation construction vacancy rate grant to B’klyn both teams go, the more business we get,” champ Italy among Italians, head to starts in April, in April, down Public Library, he says. Arthur Avenue in the Bronx. Mike’s down 45% from a from 2.28% a largest ever It was once tough to find places to Deli and the Arthur Avenue Retail Mar- year earlier year earlier received watch the World Cup in New York, due to ket, owned by David Greco, will be open Source: McGraw- Source: Source: Brooklyn See SOCCER on Page 24 Hill Construction Citi Habitats Public Library lack of popularity and time-zone issues.

DOWNSIDE OF RECOVERY As the NY area pulls out of recession, inflation, as measured by the CPI, is heating up again—although it remains low by historical standards. Vanity publishing: the next c

Kindle e-reader editions—a huge number tional tools. Others hope to land main- Do-it-yourself surges as for a self-published title. stream deals. All of them are fueling phe- e-books take off and big “It made me think,‘Why did I spend the nomenal growth in the industry. last year-and-a-half waiting for my knight CreateSpace released 21,819 titles in publishers make cuts in shining armor?’ ” Ms. Matthys says. 2009, more than double its 2008 number, More and more would-be authors are according to R.R. Bowker, which assigns Source: U.S. Dept. of Labor asking some version of that question. As ISBNs (International Standard Book BY MATTHEW FLAMM new technology has lowered the barrier of Numbers) for books sold through retail vol. xxvi, no. 22, may 31, 2010—Crain’s New York Business (issn entry and trade publishers have cut back channels. Author Solutions Inc. says it put 8756-789x) is published weekly, except for combined issues June dog trainer and blogger Sheryl Matthys due to the recession, all kinds of people are out 20,171 titles in 2009, or close to dou- 28/July 5, Aug. 30/Sept. 6, and Dec. 20/Dec. 27, by Crain Com- munications Inc., 711 Third Ave., New York, NY 10017. Periodicals spent nearly two years trying to find a pub- doing it themselves,including well-known ble its prior-year number. And San Fran- postage paid at New York, N.Y., and additional mailing offices. lisher for her book about canine and hu- commentator Andrew Sullivan, who re- cisco-based Blurb—which lets authors Postmaster: Send address changes to: Crain’s New York Business, man relationships. This spring, the Long cently published The View From Your Win- and artists create books for sale through its Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111.Fax Island-based author threw in the towel and dow through Blurb and sold the photo website—released 1.2 million titles in (313) 446-6777.$3.00 a copy, $59.79 one year, $109.79 two years. uploaded Leashes and Lovers on Amazon’s compendium on his blog,The Daily Dish. 2009, a bump of more than 50% over the (GST No. 13676-0444-RT) ©Entire contents copyright 2010 by Crain Communications Inc. CreateSpace self-publishing website. Some authors are happy to self-publish prior year. All rights reserved. Two months later, she has sold around because they like being in control or they New players are joining the market, in- 1,000 print-on-demand paperbacks and consider their books keepsakes or promo- cluding Barnes & Noble Inc., which will

2 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0002,0003-NAT-CCI-CN_-- 5/28/2010 8:27 PM Page 2

A better e a common goooal deal for

WHERE TO GO NATIVE FOR WORLD CUP the help? SOUTH AFRICA SLOVAKIA FRANCE Host country Making its World Cup debut Won World Cup in 1998 Domestic workers Bill MADIBA RESTAURANT BOHEMIAN HALL & BEER CAFÉ CHARBON 195 Dekalb Ave. GARDEN 170 Orchard St. of Rights scheduled for Brooklyn 29-19 24th Ave. Manhattan a Senate vote on Tuesday (718) 855-9190 Queens (212) 420-7520 Neighborhood: Fort Greene (718) 274-4925 Neighborhood: Lower East Side Neighborhood: Astoria BY DANIEL MASSEY UNITED STATES NETHERLANDS AND ENGLAND HONDURAS Orange have never won it all a bill that would provide New York’s Will cheer teams at official USA pub Hasn’t played in WC since ’82 BXL CAFE 200,000 domestic workers with overtime pay, NEVADA SMITHS LA ORQUIDEA RESTAURANT 125 W. 43rd St. vacation and sick days and the right to a 74 Third Ave. 500 E. 149th St. Manhattan weekly day of rest is set for a Tuesday Senate Manhattan Bronx (212)-768-0200 vote. (212) 982-2591 (718) 585-1488 Neighborhood: Midtown The Domestic Workers Bill of Rights— Neighborhood: East Village Neighborhood: Mott Haven IVORY COAST which stalled last year due to the Senate MEXICO SOUTH KOREA The Elephants played in the coup—has 26 co-sponsors, including Frank Mexican-born New Yorkers Former host nation 2006 World Cup, winning one game Padavan, a Republican from Queens. The will be out in full force FULL GOSPEL NEW YORK CHURCH NEW IVOIRE RESTAURANT legislation’s prime sponsor, Diane Savino, TULCINGO DELI 130-30 31st Ave. 76 E. 119th St. D-Staten Island, says she’s been promised 12 5520 Fifth Ave. Queens Manhattan additional “yes” votes, including five from Brooklyn (718) 321-7800 (212) 410-5982 Republicans. There is no organized opposi- (718)-439-2896 Neighborhood: Flushing Neighborhood: Harlem tion to the bill. Neighborhood: Sunset Park In addition to paid time off and overtime PORTUGAL ARGENTINA pay, the bill would compel employers to give GERMANY AND SPAIN AND SPAIN domestic workers,such as nannies and house- Made quarter-finals since ’82 Portuguese and Spanish fans sit on Argentina coached by Diego Maradona keepers, notice of termination and would LORELEY RESTAURANT opposite sides in this bar LA ZARZA cover them under basic discrimination laws. & BIERGARTEN O LAVRADOR RESTAURANT AND BAR 166 First Ave. The bill’s sponsors want to ensure that do- 7 Rivington St. 138-40 101st Ave. Manhattan mestic workers gain rights denied to them un- Manhattan Queens (212) 477-1111 der many federal and state labor laws. For ex- (212) 253-7077 (718) 526-1526 Neighborhood: East Village Neighborhood: Lower East Side Neighborhood: Jamaica ample, the National Labor Relations Act, NIGERIA which guarantees employees the right to or- ITALY SLOVENIA AND GHANA ganize, excludes domestic workers; the Fair Watch it in the “other” Little Italy Balkan stronghold Nigeria failed to qualify in 2006 Labor Standards Act,which sets federal min- MIKE’S DELI AND THE ARTHUR RESTAURANT OLD BRIDGE MIRAGE AFRICAN RESTAURANT imum wage and overtime standards, does not AVENUE RETAIL MARKET 28-51 42nd St. 2143 Cortelyou Road include them; and civil 2344 Arthur Ave. Queens Brooklyn rights laws that protect Bronx (718) 932-7683 (718) 941-4452 workers against discrimina- (718) 295-5033 Neighborhood: Astoria Neighborhood: Flatbush tion do not apply to most 99%OF DOMESTICS Neighborhood: Morris Park domestic workers. in New York NEW ZEALAND GREECE “We’re trying to give are foreign-born BRAZIL Kiwis end their 30-year World Debt crisis will be forgotten domestic workers the same Five-time World Cup champion Cup drought during World Cup opportunities other workers have to obtain FAVELA NELSON BLUE AVENUE CAFÉ basic rights and key protections,”says Priscil- 33-18 28th Ave. 36 Peck Slip 3527 30th Ave. la Gonzalez, director of Domestic Workers Queens Manhattan Queens United, a nonprofit advocacy group pressing (718) 545-8250 (212) 346-9090 (718) 278-6967 for the bill’s passage. Neighborhood: Astoria Neighborhood: South Street Seaport Neighborhood: Astoria Employers who don’t comply would be subject to civil and criminal penalties, and both the labor commissioner and attorney general could bring legal action against them. Should the bill pass, Domestic Workers United will conduct an outreach campaign to let workers know their rights and make sure iUniverse and Xlibris—had revenue of employers understand their obligations. around $100 million in 2009, according to a The group says 99% of domestic workers person familiar with its finances. It is expect- are foreign-born,95% are people of color and t chapter’s online ed to go public by the fall. A spokesman for 93% are women. the company declined to comment on finan- After years of efforts by domestic workers launch its PubIt service this sum- cial matters. and their advocates, the bill seemed headed mer. Unlike the vanity publishers Despite the range of choices available to to passage last year, but it was derailed by the of old, self-publishing companies the aspiring author, self-publishing is no pic- Senate coup. A less complete version passed see themselves as a respected part nic for anyone who wants to make a career out in the Assembly. If the Senate approves the of the book-world ecosystem, nur- of writing. measure next week, the two bills would then turing new talent as their commer- “It’s extraordinarily difficult,” says David be brought together via reconciliation. cial rivals rely on blockbusters. Carnoy,a CNET editor who published med- “I hope we emerge with a version that is a “Traditional publishers are the ical thriller Knife Music with CreateSpace in lot closer to the Senate’s bill,” says Ms. Savi- New York Mets, only they’ve cut 2008 after it was turned down by around 20 no. “I don’t think we should give domestic out their farm team,” says Keith BOOKING IT: David houses. workers bare-bones protection when all of Ogorek, senior vice president of Lamb just bought Mr. Carnoy worked tirelessly on the the evidence shows that they have been ex- marketing at Author Solutions, Vantage Press. book’s marketing, writing about the self- ploited for decades.” based in Bloomington, Ind.“We’re publishing process on CNET and creating an Busloads of domestic workers are expect- developing the farm team.” albert martin iPhone app to give away free copies. He also ed to travel from New York City to Albany to Fielding the farm team is a good business. $2,000 or $3,000 more. Publishers also get a spent more than $7,000 on editing, design be present for the vote.The bill would be the Authors can expect to pay anywhere from percentage of sales. and marketing initiatives on Amazon,and he first legislation in the nation to recognize do- $300 to $5,000 for help with editing, cover Author Solutions—the umbrella compa- learned how hard it is to meet the standards mestic workers as a work force and give them design and formatting. Marketing can add ny of self-publishing outfits AuthorHouse, See DIY BOOKS on Page 24 rights.

May 31, 2010 | Crain’s New York Business | 3 20100531-NEWS--0004-NAT-CCI-CN_-- 5/28/2010 7:44 PM Page 1

NY’s Medicaid payment system IN THE MARKETS missed $500M in bad payouts by Aaron Elstein CSC did not respond to requests we studied the system we had and Program does such for comment on Mr. DiNapoli’s re- worked with the comptroller and a poor job it should port,but its website calls the program Medicaid inspector general to deter- “the largest, most technically sophis- mine what was needed. Pretty soon, That smell? Fresh money. be scrapped, says ticated Medicaid system in the coun- we’ll be ready to ask for proposals.” try,”noting that it annually sends out That sound? Fresh money. state comptroller $49 billion in payments. Better to buy than fix The state’s health department there is general agreement that tea party rally is probably the best place to find a BY GALE SCOTT says the system was primarily de- purchasing a new system will be crowd that’s mad as hell at the Obama administration. signed to process payments quickly, faster and more efficient than repro- replacing a $900 million Medic- which eMedNY has done well. “It’s gramming the old one to do jobs it But a gathering of Wall Street folk will do in a pinch. A 1,500 hedge-fund managers aid payment computer system may not fair to say it’s failed,” says a de- wasn’t designed to handle. One rea- Last week, gathered for an annual be a tough sell with the public in New partment spokeswoman. son for that, says James Sheehan, the conference that doubles as a charitable York’s current financial climate. However, since the contract was Medicaid inspector general,is that as fundraiser to hear investment ideas from But the state Department of awarded in 1998, state and federal the federal government steps up its Health will soon release a request for governments have placed a higher efforts to detect Medicaid fraud,pro- some of the best minds in their business. proposals to do just that.A recent re- priority on cutting spiraling Medic- grammers are constantly being told A common theme among the speakers port from state Comptroller Thomas aid costs by rooting out fraud and to add data systems to eMedNY, was the mess the administration has made DiNapoli says the current system abuse.The current system has a lim- such as a new federal database that does such a poor job of detecting im- ited ability to detect fraudulent pat- assigns every medical provider a of the nation’s finances due to heavy proper payments that it terns, Mr. DiNapoli says. unique identifying number. borrowing.The bill, it was sourly should be scrapped. The Plagued from the be- “It takes too long for people to noted, will be paid with report notes that nearly a ginning with delays and write new code to do edits for eMed- higher taxes on the very third of the $126.9 billion $900 cost overruns, the system NY,” says Mr. Sheehan. Obama pal Steve the state spent in fiscal MILLION came on line in 2005,near- The system was not designed for people who could Rattner was booed 2009-2010—an estimated Cost to replace ly three years late and at the intensified data mining that Mr. afford $4,000 tickets to by the crowd $38.4 billion—went to state’s current twice the cost the company Sheehan’s office has employed to find the half-day conference Medicaid, making im- originally bid. Mr. Di- fraud.For instance,Mr.Sheehan had bloomberg news proper payments a costly payment system Napoli places some of the to use Social Security databases and at the Time Warner Center (bottled shares in miner African Barrick Gold in proposition. blame on the health de- state and local vital-statistics data in water and fruit bars included). recent months, while remaining Known as eMedNY, partment, saying past his office’s ongoing campaign to Steve Rattner (pictured above), the short on Moody’s Investors Service and the system was designed by Comput- problems must be analyzed to pro- “find dead people on Medicaid,” former investment banker hired by Standard & Poor’s owner The Mc- er Sciences Corp., a Virginia-based vide insight into what went wrong. tracking down payments erroneous- President Barack Obama last year to Graw-Hill Cos. Department of Defense contractor, The department spokeswoman ly sent to deceased patients. oversee the restructuring of York Capital Manage- whose agreement to run it expires in points to “less than stellar manage- Even with a more efficient pay the auto industry,got a taste ment founder James Dinan 2012. Meanwhile, audits and inves- ment” of the project by a prior ad- system, Mr. Sheehan’s office will still of the crowd’s bile during recommended bottler Coca- tigations have found that it failed to ministration. “That left us with an have plenty to investigate. “We’ll his presentation laying out Cola Enterprises, which is fo- catch at least $500 million in im- expensive system that did not meet never run out of fraud,” he says, “as the administration’s eco- cusing on Europe after sell- proper Medicaid payments. the state’s needs. When we came in, long as humans are involved.”
nomic policies.He present- ing its U.S.operations back to ed a chart showing that in- Coke. Europe, Mr. Dinan flation-adjusted incomes said, has attractive growth for average Americans have prospects for soda consump- gone nowhere for years and David Einhorn tion, although the ailing euro announced: “The adminis- complicates things. He tration believes income in- thinks the stock has “20% up- equality needs to be ad- side” from its current price of dressed.” about $25 per share. “BOO!”shouted some- David Tepper, founder of We’re offering a one in the audience. Appaloosa Management, “I hope that was a joke,” who made a fortune last year a peeved Mr. Rattner said, with well-timed bets on bank full-floor opportunity reminding the crowd that stocks, recommended Bank of for all of Mr. Obama’s James Dinan America shares and American In- problems, he remains ternational Group debt. BofA, so unique, so unusual… more popular than other he said, is worth $27 per politicians—and vastly share, about 70% over its cur- more so than Wall Street. rent price. The president’s approval The recent dip in the mar- rating is 49%, according to ket has caused his fund to lose a Wall Street Journal poll $1 billion this month alone, ...that we can’t talk cited by Mr. Rattner. but Mr.Tepper,who manages Goldman Sachs’ approval $13 billion, wasn’t too con- rating? That would be 4%. David Tepper cerned. “What the hell? about it here. When the administra- What are you gonna do?” tion’s friends and foes weren’t duk- shrugged Mr.Tepper,one of the few ing it out at the conference—which who said the world’s economic But call today and we’ll show you all the “move-in-now” honors former trader Ira Sohn and problems are manageable. raises money for cancer research— One reason he can shake off his advantages of this exclusive full-floor leasing opportunity many speakers pitched cautious in- fund’s loss: Outfits like his typically at one of Midtown’s most prestigious addresses. vestments. charge management fees equal to David Einhorn—who, at the con- 2% of assets, not to mention 20% of ference two years ago, presciently profits, so $13 billion in assets identified Lehman Brothers’ prob- should generate $260 million just in
Jordan Mandel Scott Grayson Frederick K. Marek lems—said he’d bought gold and management fees for his firm. bloomberg news photos 212.486.4599 212.486.3125 212.486.2582 [email protected] [email protected] SHARE of professional investors who believe New York will be The Vortex Group, LLC ■ 570 Lexington Avenue ■ New York, NY 10017 65%“the leading global financial

www.vortexre.com center” in five years, according to a survey by brokerage CLSA. Another 31% picked Hong Kong, and just 2% named London.

4 | Crain’s New York Business | May 31, 2010 WE SUGGESTED THEY HIT A BUMP IN THE ROAD. HIT A BUMP IN THEY WE SUGGESTED TO HELP A CONSTRUCTION FIRM RUN SMOOTHLY, SMOOTHLY, FIRM RUN A CONSTRUCTION TO HELP LIABILITY WORKERS COMPENSATION WORKERS PROPERTY PROPERTY COMMERCIAL AUTO AUTO COMMERCIAL When a construction company had a problem with gravel falling off their trucks and hitting trucks and hitting When a construction company had a problem with gravel falling off their that trucks were other vehicles, our Commercial Auto experts investigated the situation. Seeing to help settle the leaving their locations with loose loads, we recommended inducing vibration programs work. load, making the roads safer for everyone. The bottom line is, our loss control keep you and your Plus, should an accident occur, we investigate quickly and thoroughly, our policy. For more broker informed and resolve your claim in a timely manner. That’s information, contact your broker or agent or visit libertymutualgroup.com/commauto.

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NEW YORK,NEW YORK edited by Valerie Block

Moore gets more for her memoir emi moore has made a fortune by starring in blockbuster movies like Ghost and Indecent Proposal and has shocked the masses by Dappearing on the cover of Vanity Fair naked and pregnant. Now, she’s cashing in on her memoir, which HarperCollins Publishers bought for more than $2 million, according to industry sources. In lieu of a proposal, the star’s agent, Luke Janklow, sent around a recent GO AHEAD, profile of Ms. Moore (right) from The New York Times.The article focused on the 47-year-old actress’s life as a mother, political activist and wife of much-younger actor Ashton Kutcher, as well as her recent CALL YOURSELF roles in smaller films. According to several publishing executives, Ms. Moore met only with those houses willing to bid at least $1 million. But to the surprise of

some editors who met with her, the book she wants to write is getty images A MORNING primarily about her own mother, Virginia King, a longtime alcoholic with whom Ms. Moore had a notoriously difficult relationship. Ms. King died in 1998 from a brain tumor. PERSON. Neither Mr. Janklow nor a HarperCollins spokeswoman responded to requests for comment.

choose the courses they’re (eating disorders or drug use, Musical chairs registered for. Students submit anyone?), Ms. Cole says “the at the Times their transcripts, and the site uses whole premise of Modeling Camp their academic history to calculate is about personal development Tell us why your company is so great by spring has come to The New the odds of their receiving various and boosting self-esteem.” nominating it as one of New York City's Best York Times’ Business section in grades. Students make their bets The $999 summer sessions, to more ways than one. Following and, based on their investment be held at the New York Helmsley Places to Work. Nominations are open for this the paper’s staff cuts last fall, and the odds, get cash for hitting Hotel, include photos, a portfolio annual NYC honor, recognizing outstanding reporters who might have their target. “The idea is for and a T-shirt. changed beats stayed in place as students to get some skin in the employers in the "ve boroughs. Companies management waited to see where college game,” says Ultrinsic will be pro"led in Crain’s New York Business people would be needed. Chief Executive Steven Wolf,a and honored at an event in fall 2010. Now that things have settled Queens College alum. down, everybody seems to be Ultrinsic, which is in its second moving at once. round of funding, is currently To cite just a few of the changes: available at New York University Julie Creswell has moved to the daily and University of Pennsylvania. section from Sunday to cover This fall, it launches sites for finance—while Peter Goodman, who Columbia University, St. John’s wrote for the daily section, is University, Queens College, Blues club has moving to Sunday. Stephanie SUNY Binghamton and others. reason to sing Clifford has left the advertising and magazine beat to cover retail. b.b. king blues Club & Grill on Motoko Rich, who covered the book Modeling camp West 42nd Street will mark its industry, is doing economic news, hits the city 10th anniversary this week with while Julie Bosman has left Metro an all-star concert on June 3 to take Ms. Rich’s place. David after 16 years in less-than- featuring Patti LaBelle. Kocieniewski, who used to write fashionable Tysons Corner, Va., Throughout June, other big about New Jersey, is now writing Modeling Camp is making its first names, including Chuck Berry and about taxes. “We had to see who foray into the epicenter of style. Boyz II Men, will perform at the was going to take the buyouts,” says Owner Heather Cole, a former club, one of a trio owned by the Business Editor Larry Ingrassia, model from the U.K., will Bensusan family. adding that reporters who bring her boot camp to Patriarch Danny Bensusan opened want to move around New York for two the Blue Note Jazz Club in tend to change beats three-day sessions in Greenwich Village 29 years ago. every two or three years. July and August. Since then, three of his four The 13- to 18-year- children—one is still in college— Betting site old fans of America’s and his wife, Lillie, have entered the g Next Top Model will business, which also includes the et ty learn the basics, get hair three-year-old Highline Ballroom makes grade images www.bestplacestoworkNYC.com and makeup sessions with pro in the meatpacking district. college kids who need an stylists Charles Ward and Shannon President Steve Bensusan, who incentive to score high marks may Grey Williams and be photographed oversees booking the talent, says find their motivation at by fashion that despite the family focus on Ultrinsic.com.The year-old photographer Barry concert venues, none of them is startup that lets students gamble Hollywood. Top Model particularly musical. “We quickly on their ability to get certain alums Ebony Haith learned that our talents are behind grades is expanding this fall to 37 (above) and Lisa the scenes,” he says. schools from two. Ramos (right) will stop Ultrinsic users log on at the by to chat with the girls. Contributors: Kira Bindrim, Lisa beginning of each semester and Despite the business’s bad rep Fickenscher, Matthew Flamm

6 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0007-NAT-CCI-CN_-- 5/28/2010 12:02 PM Page 1

NEIGHBORHOOD JOURNAL Fixes eyed for B’klyn’s scary 4th Ave.

which only aggravated longstanding New York City Transit, which be meeting with Mr. Markowitz in After years of talk traffic and safety issues. closed the station more than 25 coming weeks to discuss raising the and fatalities, officials Neighborhood residents have years ago. rest of the money needed to start this had some modest successes in recent project. So far, the group has com- FOURTH AVENUE as “Brooklyn Boulevard” offer a plan to begin years, however. Two years ago, the $3 million is needed mitments for $800,000 of the need- Park Slope Civic Council intro- if the entrance is reopened,“peo- ed $3 million. to transform artery duced a plan to reopen the east side ple wouldn’t have to cross Fourth In addition,as part of a downtown visible roadway signs, according to subway station serving the F train Avenue, and there would be less Brooklyn traffic-calming plan, the Craig Hammerman, district manag- BY AMANDA FUNG on Fourth Avenue between Ninth conflict between vehicles and city Department of Transportation er of Community Board 6, which and 10th streets, to alleviate foot pedestrians,” says Michael Cairl, a recently adjusted traffic signals to give covers Park Slope.“The city has been arlier this year, traffic across the massive road. The member of the Park Slope Civic pedestrians more time to cross Fourth making important incremental im- Brooklyn’s Fourth Av- group has discussed the plan with Council.He adds that his group will Avenue, and it has installed large and provements to safety,” he adds.
enue earned the nasty distinction of being named the borough’s Ethird-most-dangerous thorough- fare for pedestrians. Despite a decade’s worth of sporadic efforts to improve safety,the avenue earned its ranking the hard way.Between 2006 and 2008, the street had six pedes- trian fatalities, according to the Tri- State Transportation Campaign. Last month, officials of the four neighborhoods that Fourth Avenue runs through—downtown Brook- lyn, Park Slope, Sunset Park and Work. Bay Ridge—finally got some prom- ising news: Borough President Marty Markowitz unveiled a pic- ture-packed 88-page plan to trans- form Fourth Avenue into “Brooklyn It’s a force that continues Boulevard.” “This plan is more comprehen- sive than what we’ve seen in the to change the world. past,” says Jeremy Laufer, district manager of Community Board 7, which represents Sunset Park. “We view it as a good way to begin dis- cussions in our community.” The plan,“Vision for the Fourth Avenue Corridor,” was put together by urban-planning students from New York University’s Robert F. Wagner Graduate School of Public Service, at the request of Mr. Markowitz. The plan outlines ways to improve the 6.2-mile artery, which stretches from downtown Brooklyn all the way to the foot of the Verrazano-Narrows Bridge. Proposed improvements among the changes recommend- ed are installing temporary median improvements—everything from artwork to plantings—and adding benches, trees and better lighting. The planners also called for creating textured crosswalks and increasing the size of pedestrian refuges in the middle of road medians. The rub for the tens of thousands of people who live on or near Fourth Avenue is that all the proposals are just that and, as such, any of the rec- ommended improvements are probably years away. “This report includes illustra- tions and recommendations for po- tential treatments but is by no means a finalized streetscape plan,” says Powerful forces are at work around the world today. Forcing Mr. Markowitz.“The completion of employers to ask some difficult questions of their talent strategy. these students’work constitutes only one small initial step in what will Right Management can help your company keep pace by making prove to be a much larger process.” sure your talent strategy aligns with your business strategy. Get In fact, in recent years the situa- this right, and it can accelerate performance throughout your tion has only gotten worse. When the city rezoned Park Slope seven organization. The world of work is changing. Is your company years ago,higher buildings were per- ready? Sample our thinking on the subject at Right.com/work mitted along the avenue.That led to a population boom, as well as more commercial and retail development,

May 31, 2010 | Crain’s New York Business | 7 20100531-NEWS--0008-NAT-CCI-CN_-- 5/28/2010 7:45 PM Page 1

education funds. The hot topic last week was state parks, many of which Mr. DEPUTY WATCH Looking for Lieber THE INSIDER Paterson planned to close in an THE BLOOMBERG ADMINISTRATION has a few candidates for the post of attempt to pressure the Legislature deputy mayor for economic development, which is being vacated by Robert by Erik Engquist, Daniel Massey and Jeremy Smerd to pass a budget. Like many of his Lieber. City Hall observers are hesitant to predict the pick, proposals, this one backfired. however, because the last deputy mayor hired, Stephen “He did not quite expect the Goldsmith, was on none of their radar screens. level of blowback to his parks If someone from the administration other than Economic proposal,” one lobbyist says. Development Corp. President Seth Pinsky is named, it would “Everybody has a park that they be perceived as a slight to Mr. Pinsky. Mr. Lieber was EDC care about in their community.” president at the time of his promotion to deputy mayor. The Legislature negotiated a Nonetheless, a source says an administration veteran other Lieber last-minute deal to keep parks open. than Mr. Pinsky could be chosen. Mayor Michael Bloomberg pledged during his re-election Paterson v. campaign to find fresh blood, but he alleviated some of the pressure to do so by hiring Mr. Goldsmith as deputy mayor for Stuy Town ruling operations. the proposal to overhaul state rent “He named Goldsmith, so he can go with an insider [this laws unveiled by Gov. David Paterson time], but he got so much good play out of Goldsmith that he

newscom Pinsky last week would “do nothing to slow may think that’s a better option,” says one longtime City Hall down the loss of affordable rent- watcher, referring to the positive media reaction. “I think it’s regulated housing,” according to going to be an outsider.” Albany follies may Housing Here and Now. Mr. Some observers mention Joshua Sirefman, a former Paterson proposed to allow interim president of EDC who left in January 2007 for Brookfield apartments receiving subsidies to be Properties. He became an independent consultant a year ago, taken out of rent stabilization.This but having worked for Mr. Bloomberg from 2002 to 2006, he is

extend into July was a response to a Court of Appeals not considered an outsider. news daily ruling that rents were illegally raised Carl Weisbrod is, because his city service predates Mr. Sirefman at Stuyvesant Town/Peter Cooper Bloomberg’s tenure. Mr. Weisbrod—who was the first president lbany continues to move in fits and starts— Village while the buildings received of EDC, from 1990 to 1994—is leaving the presidency of Trinity which is not surprising, given that the Assembly J-51 tax abatements. Church’s real estate division. He’s been a player in city “This would give landlords the development since the 1970s, but he might not want another and the Senate are at odds with each other and major relief they wanted going David Paterson demanding job at this stage of his career. with Gov. .The budget is two forward,” says tenant attorney Another issue is the fact that he plans to stay at Trinity until months late, which has slowed progress on William Gribben. “It’s a present for

January. Mr. Bloomberg needs someone before then to keep buck ennis nyc.gov nyc.gov legislation that lawmakers had hoped to be finishing up by them.” major projects moving: Coney Island, Brooklyn Bridge Park, Weisbrod A Landlords would be able to pay Governors Island, Willets Point, Bush Terminal and the South now. Word is that the legislative session, normally scheduled the tenants back without facing any Bronx Initiative. Negotiations with the state over Battery Park City, the Lower to end three weeks into June, will be extended well into July. penalties for rents that were Manhattan Development Corp. and other city-state hybrids also loom. One sign of progress was legislation passed Friday to lift the illegally raised before the court’s cap on charter schools to 460 from 200. Its passage came just ruling last October. Steven Spinola, president of the in time for the June 1 deadline for the Race to the Top contest. Real Estate Board of New York, would give landlords the peace of to renovate its PATH system is New York could receive as much as $700 million in federal applauds the proposal, saying it mind needed to make investments running into setbacks. in their units. But the Paterson bill The system upgrade centers on requires approval by the the replacement of 340 train cars. Legislature. Its passage is unlikely. According to transit-system foreman John Kochenash, 25 of the 127 new cars were already out of Goldsmith as service as of two weeks ago; four deputy mayor 2.0 were in a rail accident, and 21 have defects.The cars, under warranty by deputy mayor for Operations manufacturer Kawasaki Rail Car, are Stephen Goldsmith, who officially being repaired.The Port Authority starts this week, was hired to bring says a 20% failure rate is typical. new ideas. A self-styled believer in Web 2.0—the use of applications that Living-wage letdown boost information- supermarket union officials sharing—Mr. believe that the living-wage bill Goldsmith wants to unveiled last week in the City involve the public in Council could hurt unionized government grocery stores. innovation, a City “To introduce it without sitting Hall insider says. down and talking to us makes no First, he must sense whatsoever,” says Pat Purcell, learn the ropes. assistant to the president at United He is meeting Food and Commercial Workers with hundreds Local 1500. “We may end up of employees at city agencies, supporting the bill, but if you don’t talking with union leaders, and involve us in the process, we can’t taking stock of city government negotiate with ourselves.” projects that are under way. Mr. Insiders say the Building and Goldsmith’s chief challenge may be Construction Trades Council also money: The city faces a $3.3 billion worries that the bill could curb budget deficit in 2012. construction jobs. Jeff Eichler, director of the Retail Organizing Project of the Retail, Setback in drive Wholesale and Department Store to retool PATH cars Union, which is championing the bill, says unions’ issues can be worked the port authority of New York out. “I think we’re all supportive of & New Jersey’s $809 million effort living wages,” he says.

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8 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0009-NAT-CCI-CN_-- 5/28/2010 12:03 PM Page 1

REAL ESTATE DEALS PLUS STAFFING UP The doctor is in quarters at 111 Eighth Ave. but failed to find anything that met its Movers, growers at Worldwide Plaza requirements. “They needed to be on one floor,” he says. “It’s a tight +6,500 NUMBER of office-using jobs a growing Web-based provider of market down there in midtown added in NYC in April, health care advice and information south.” are on the rise the most since Oct. ’07 has become the first tenant to sign a He added that Worldwide lease for space at Worldwide Plaza Plaza’s high ceilings, windows on all since new owners took over the four sides and proximity to the com- in Manhattan West Side tower last year. pany’s headquarters also appealed to WebMD has signed a 10-year the firm. 200 AVERAGE number of square feet 825 enants are on the move again, and that’s good lease for 50,000 square feet at Matthew Coudert and Peter of office space per worker news for commercial real estate. Eighth Ave., better known as World- Duncan represented the landlord wide Plaza. The company plans to in-house. Source: Cushman & Wakefield Inc. In the depths of the recession, companies were move into its space, which takes up WebMD plans to move into the renewing leases rather than moving or expanding, the entire 11th floor of the 47-story new space at the end of the summer. because they wanted to avoid all nonessential building at West —james comtois property along with her colleague expenditures amid a dismal economy. 50th Street, in the Frank Doyle.Ms.Wasserberger says T late summer. The the company was drawn to the space “Last year, cash was king,” says Mitchell Steir, chief asking rent was in U.K. hedge fund because it could have its own floor. executive of Studley.“Now, tenants are feeling more optimistic the low-$60s per takes floor She adds that the landlord is build- about their prospects.” square foot. ing out the space for Arrowgrass, This is the first arrowgrass capital partners,a which is currently housed in tempo- Through May 24 of this year, 65% of the 98 deals signed in deal to be com- London-based investment firm,will rary space at 245 Park Ave. Manhattan were for relocations or expansions.That’s up from pleted in World- open its first permanent office in The 40-story building was taken 55% of the 75 deals that fell into that category in the same wide Plaza since Manhattan at 1330 Sixth Ave. this fall. over by CW Capital Asset Manage- period in 2009. Macklowe Prop- The company will lease 10,400 ment last spring after owner Harry erties was forced 825 Eighth Ave. square feet at the tower, between Macklowe failed to make his mort- The trend is even more pro- Brokers say that many tenants to give the build- West 53rd and West 54th streets. gage payment on the property. Still, nounced in Manhattan’s Class A are taking advantage of rents that ing back to its lenders, who in turn The asking rent for the seven-year the building is benefiting from the buildings, which are the most desir- have tumbled by as much as 50% sold it to George Comfort & Sons. deal, which covers the entire 32nd $30 million overhaul Mr.Macklowe able because of factors ranging from from their 2008 peaks—after fac- According to Newmark Knight floor, was $85 a square foot. engineered, which included a new location to age. So far this year, 82% toring in various landlord conces- Frank’s Kyle Ciminelli, who along Arrowgrass is typical of the high- lobby,elevators and building facade. of the 45 deals in those buildings sions—by moving into higher- with colleague David Falk repre- end financial tenants the building is CB Richard Ellis Inc. brokers were for expansions or relocations. quality buildings they couldn’t sented the tenant in the transaction, trying to attract, according to Cyn- Sacha Zarba and Scott Bogetti rep- In the same period in 2009, 46% of afford previously. WebMD initially looked for space thia Wasserberger, a broker at Jones resented Arrowgrass. the 23 deals fell into that group. —theresa agovino near its 100,000-square-foot head- Lang LaSalle who represented the —theresa agovino

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May 31, 2010 | Crain’s New York Business | 9 20100531-NEWS--0010-NAT-CCI-CN_-- 5/28/2010 2:07 PM Page 1

VIEWPOINT It’s up to you, New York editor in chief Rance Crain publisher, vp Jill R. Kaplan or years, business interests and Lest we forget, when Eliot Spitzer campaigned for the EDITORIAL conservative think tanks have been governorship in 2006, he similarly offered a get-tough editor Xana Antunes managing editor Glenn Coleman warning the state government of fiscal approach. By mid-2007, attack ads had sunk the new deputy managing editors Valerie Block, doom, crying out for sane budgeting and governor’s approval rating, and the Legislature wouldn’t give Erik Ipsen contributing editor laying out solutions. But their calls have him the time of day. While Mr. Spitzer’s lack of political Elizabeth MacBride fallen on deaf ears, and their proposals have savvy was a major factor, he was also fighting a lonely battle. columnists Greg David, Alair Townsend politics editor Erik Engquist gathered dust on shelves in Albany. The next governor will need more meaningful support from pulse editor Barbara Benson senior reporters Theresa Agovino, Even as recession has pushed the state’s finances to the the business community and others to rally the populace Aaron Elstein, Lisa Fickenscher, brink of long-predicted disaster, the demands for reform behind the banner of fiscal reform. Matthew Flamm, Miriam Kreinin Souccar F reporters James Comtois, Amanda Fung, have gained only limited traction. Both the New York In the past, a defeatist attitude has prevailed—an Daniel Massey, Adrianne Pasquarelli, Senate and the Assembly have proposed borrowing schemes assumption that Assembly Speaker Sheldon Silver is too Hilary Potkewitz, Jeremy Smerd art director Steven Krupinski to postpone some of the pain, with the Pollyannaish dominant a force and deputy art directors Carolyn McClain, expectation that structural budget deficits will somehow will always protect Daniel Mednick Reformers of all staff photographer Buck Ennis disappear on their own. teachers unions, trial copy desk chief Wendy Zuckerman stripes have a copy editor Thaddeus Rutkowski Into this bleak picture stepped Attorney General lawyers and the health research editor Denise Southwood Andrew Cuomo, the Democratic nominee for governor care lobby. In fact, Mr. assistant research editor Maia Blume rare opportunity editorial researcher and the front-runner in the race, with a 224-page blueprint Silver listens first to his Selena Shen that echoes the long-ignored calls for fundamental fiscal to empower the members, who in turn www.crainsnewyork.com web editor Brian Tracey reform. He’s hardly the first candidate to promote next governor take their cue from senior producer Elisabeth Butler Cordova spending caps, a freeze on government salaries and the like, constituents.The producer Kira Bindrim but he’s the first leading Democrat to do so in such a special interests EDITORIAL AND ADVERTISING OFFICES comprehensive way. 711 Third Ave., New York, NY 10017-5806 understand this and editorial: 212.210.0277 Fax 212.210.0799 This presents an opportunity that advocates for reining in tailor their advocacy efforts accordingly.The business advertising: 212.210.0259 Cable craincom nyk state government cannot afford to squander. Given that Mr. community must do the same, even if it cannot match dollar Fax 212.210.0499 Cuomo’s Republican rivals espouse the same fiscal for dollar and protester for protester. Entire contents ©copyright 2010 Crain Communications Inc. All rights reserved. philosophy, it is incumbent on reformers of all stripes to The stars are aligned for change. New Yorkers are ®CityBusiness is a registered trademark of MCP generate popular momentum for their cause to empower increasingly upset about their property taxes and the morass Inc., used under license agreement. whoever assumes the governorship. in Albany.The recession has made them more conservative TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. They cannot do this by patting themselves on the back with their own spending, and they expect state government $3.00 a copy, $59.79 one year, $109.79 two years. and sipping wine at the University Club.They must compete to follow suit. With a little encouragement, they will resist www.crainsnewyork.com effectively with the special interests that will campaign for the scare tactics that have blunted reform efforts in the past ADVERTISING AND MARKETING the status quo with television and radio advertisements, and will empower the next governor to turn this ship advertising director Trish Henry real estate sales manager Cornelius P. Gore rallies, phone banks and direct mail. around. senior account managers Irene Irvill, Courtney McCombs, William E. Squitieri account executive Anthony Mowad sales manager, classified print & online John Gallagher CRAIN’S ONLINE POLL COMMENTS sales coordinator, print & online Lulé Haznedari newsletter product manager WAS IT APPROPRIATE TO Alexis Barney credit Todd J. Masura 313.446.6097 OK A MUSLIM CENTER marketing director Amy Crossman Suggestions for Albany director, audience development NEAR GROUND ZERO? John LaMarca THE POWER OF REAL NUMBERS candidates who refuse to sign the platform. senior audience development manager Date of poll: May 26 A successful boycott against candidates who Tarek Cotran 429 votes you mention in your May 17 editorial on the reject reform would inspire Albany to reform general manager, interactive state budget mess (“Do the math already, itself very quickly. But if those who support Marc Minardo Albany”) that New York could easily raise $700 reform contribute to candidates who oppose web developer, interactive No. Building this Chris O’Donnell

project so close . 59% million by taxing soda syrup and allowing wine reform, why should anyone expect change?

to Ground Zero sales in supermarkets. While both points might —paul feiner NEW YORK PRODUCTION will reopen 41%. be debatable, I would add to your analysis of the Town supervisor wounds for many production and pre-press director Albany quagmire by wondering why the “brain Greenburgh, N.Y. Michael Corsi victims’ families. trust” for eight years (past and present) has not advertising production manager been able to award a contract to a business RETURN OF THE LIVING WAGES Suzanne Fleischman Wies Yes. It shows the world that entity that would bring $1.5 million per day to PUBLISHED BY CRAIN COMMUNICATIONS INC. American values extend to New York state in direct revenue, with an up- anyone promoting “living wage” mandates people of all faiths. chairman Keith E. Crain front “cash infusion” of $300 million? (“Living-wage debate gets broader—and president Rance Crain Namely: video slot machines at Aqueduct. louder,” May 24) ought to take a look at what is secretary Merrilee Crain If it had been awarded even five years ago, going on in Greece. Pay and benefit rules, if treasurer Mary Kay Crain the state might be facing an easier burden than overly broad, can stifle an economy.The pro- executive vp, operations William Morrow senior vp, group publisher Gloria Scoby the $9.2 billion deficit it is dealing with now. posal for New York City will only result in fewer group vp, technology, circulation, —thomas mina jobs and opportunities for economic advance- manufacturing Robert C. Adams Saratoga Springs, N.Y. ment. We have to let the free market work. vice president/production & —robert friedman manufacturing David Kamis chief information officer Paul Dalpiaz want albany politicos to get religion? The corporate circulation/audience business community, which funds the ten dollars an hour? How dare anyone development director Kathy Henry campaigns of most statewide officials and suggest such a thing? Before you know it, the founder G.D. Crain Jr. (1885-1973)

buck ennis lawmakers, should come up with a reform riffraff from working-class families could chairman Mrs. G.D. Crain Jr. (1911-1996) For this week’s questions: Go to agenda and ask all candidates (incumbents and actually make a living. Where would we get the www.crainsnewyork.com/poll to have your say. challengers) to sign a statement supporting the cannon fodder to fight the rich man’s wars? platform.Then it should boycott fundraisers of —rich austin

10 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0011-NAT-CCI-CN_-- 5/28/2010 2:07 PM Page 1

advisoryad4x7.ai 1 5/27/10 11:36 AM OPINION

idential development and ways to JOIN CRAIN’S improve their efficacy.These incen- Stalled projects: tives—like the 421a program—are crucial to expanding the tax base and creating jobs. ADVISORY The City Council should be part Time to get moving of this effort so that any legislative proposals made by the working group would have a consensus and PANEL BY RICHARD T. ANDERSON could be acted on quickly. Second, no initiative will work ew york city is currently home to nearly 600 without the participation of the stalled construction sites spread throughout the lending institutions that initially fi- nanced these projects. Lenders five boroughs. These sites represent some 11,000 should be brought to the table to units of new housing, additional commercial and help policymakers understand prac- industrial space, several hundred million dollars tical ways government can assist in Looking for readers to share in unrealized investment and thousands of jobs for the embat- making stalled projects financially N viable for the banks. tled construction industry. The New York Building Congress Third, cut the red tape.The time views and opinions. believes that the mayor and the City Council can take steps to it takes developers to navigate the city’s labyrinth of permitting and hasten completion of many of these ing through the lengthy permitting oversight agencies is an enormous stalled projects and unlock their process a second time. Another re- hidden cost to development. The benefits more quickly. cent joint effort sought to create af- city should make it a priority at all of These projects are frozen primari- fordable housing by converting un- its oversight agencies to make the ly due to underlying economic fac- finished or unoccupied market-rate permit and approval process more tors,including weakness arising from housing. It’s a good start, but more efficient without sacrificing safety. regional job losses, lack of construc- can and must be done. The city’s stalled construction Sign up for FREE today. tion financing and a temporary over- First and most important, the sites serve as a highly visible reminder supply of new residential units.While mayor should convene a task force of of the recession’s impact,but they also www.crainsnewyork.com/advisory everyone would prefer that a rising government and civic leaders to take offer the opportunity to create jobs economy jump-start a full-scale re- a comprehensive look at the city’s and spur economic development. sumption of these projects, the slow inventory of stalled sites and recom- The mayor and the City Council CRAIN’S NEW YORK BUSINESS pace of recovery makes this unlikely. mend steps that government, to- must take up the issue of stalled con- Mayor Michael Bloomberg and gether with the development and fi- struction sites,help the construction the City Council deserve full credit nancial communities, must take to industry get back to work and help for recently enacted legislation that restart projects. At the top of their New York City’s economic recovery. allows owners to renew their build- list should be an examination of the ing permits for up to four years and array of financial incentives avail- Richard T.Anderson is president of the New to restart construction without go- able to support commercial and res- York Building Congress.

The first is the dynamic so clear- ly on display in Albany: The gover- Cuomo’s ‘Agenda’ nor (whether named Pataki, Spitzer or Paterson) proposes a responsible budget, and the Assembly and the Senate respond by restoring as vs. Albany as usual much spending as possible.A cap on state spending will change that process. ubernatorial candidate Andrew Cuomo The second is that the challenge has proposed slashing state agencies by one-fifth isn’t just fixing state government. and paring the responsibilities of others without Remember, factoring in the local taxes is what makes New York’s tax the meddling of the state Legislature. burden the second-highest in the He also wants to get the Legislature out of the nation. Limiting local property tax- business of setting health care payments and to institute other es is the only way to get school G boards, county executives, and vil- measures to curtail the use of Medicaid. He plans to impose a lage and town officials to make the one-year freeze on state employees’ salaries, create cheaper and difficult decisions needed. Of course, none of this addresses less expensive pensions ply to cap both state Mr. Cuomo’s biggest obstacle: for new workers, and spending and local There is absolutely no sign that oth- require everyone em- property taxes, making er Democrats—especially in the ployed by the state to others share in the hard Assembly—are prepared to accept contribute more to the work. severe limits on state and local gov- cost of their health care The few people will- ernment spending. The inevitable coverage. ing to be critical of his consequence will be intense pressure While those are sig- program (and most are for salary freezes or givebacks for nificant steps, they willing to do so only off public employees. won’t close the state’s the record) say Mr. Mr. Cuomo’s Agenda could budget deficits. Nor Cuomo has not con- improve New York. Whether his will they restrain local GREG nected the dots between plan will be implemented is far from taxes. And Mr. Cuomo DAVID how the caps work and certain. knows it. He has ruled how spending will actu- out tax increases and ally get cut. There’s Go to “Greg David on New York” at borrowing in his Agenda for New truth in that charge, but it ignores www.crainsnewyork.com for more on the York; his ultimate strategy is sim- two realities. Cuomo plan.

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May 31, 2010 | Crain’s New York Business | 11 20100531-NEWS--0012-NAT-CCI-CN_-- 5/28/2010 2:08 PM Page 1

GOOGLE’S ECONOMIC VALUE, BY STATE Amount Google: $6.3B to NY in ’09 No. of advertisers/ Value received, donated, Total value, State website publishers in millions* in millions in millions California 262,400 $14,098.2 $27.1 $14,125.2 billion in economic value in New as an engine of growth of economic Search-engine giant York last year. activity and value creation,” says New York 114,400 $6,240.4 $24.6 $6,265.1 touts AdSense, In a state-by-state analysis, the Eileen Naughton, director of media Illinois 57,700 $3,234.4 $3.9 $3,238.2 Mountain View, Calif.-based com- sales at Google. “Plus, we’re asked Texas 104,100 $3,181.4 $2.8 $3,184.2 AdWords, grants pany claims that it generated $54 for this information a lot.” Florida 118,700 $3,158.2 $2.7 $3,160.9 billion in economic activity in the To come up with its analysis, United States in 2009, including Google tallied advertising revenue Washington 44,700 $2,804.6 $3.1 $2,807.7 BY KIRA BINDRIM $14.1 billion in its home state.In the from advertisers and publishers that Massachusetts 43,000 $2,226.0 $6.1 $2,232.1 Northeast Corridor, those numbers use its AdSense and AdWords pro- Georgia 48,200 $1,413.4 $2.4 $1,415.8 google is pushing back. As regu- boiled down to $6.3 billion in New grams. With AdSense, publishers lators raise red flags over the tech ti- York, $1.4 billion in New Jersey and receive 68% of revenue from each ad New Jersey 49,500 $1,412.0 $2.8 $1,414.9 tan’s market dominance,the compa- $743 million in Connecticut. Google places on their site, while Pennsylvania 48,500 $1,276.8 $3.3 $1,280.1 ny is looking to tout the positive “This is about shifting the para- AdWords lets advertisers bid to as- Not all figures add up to totals due to rounding. *Economic value received by advertisers and website publishers. effects of its monolithic search busi- digm from thinking of Google as a sociate their ads with certain search ness, which it says generated $6.3 mere search engine to looking at it keywords. (For Google users, these appear as sponsored search results.) Google also included the value of advertisements paid for by Google Grants, through which select non- profits can spend up to $10,000 per month on ads to raise funds or edu- cate the public. Focus on search RUN YOUR in new york, Google served 114,400 advertisers and website publishers last year, which received a total of $6.2 billion in economic value through AdSense, AdWords and organic search. The company BUSINESS. also doled out 650 grants, which generated $24.6 million in advertis- ing. Grants went to nonprofits in- cluding the March of Dimes Foun- dation, Natural Resources Defense DON’T RUN Council, Teach for America and Witness, a Brooklyn-based organi- zation that provides training for groups to use video in human- TO THE BANK. rights campaigns. The economic-impact study does not include money generated from Google-owned YouTube, dis- • FREE High-Performance TD Bank play advertisements, Google Maps BusinessDirect Online Banking or, more important, the company’s real estate holdings and employee • Real-Time Information head counts throughout the coun- try.“It’s really just looking at the val- & Transactions ue of a paid search result, and the value of search to business overall,” • E-Statements & Check Images says Ms. Naughton. Google’s Chelsea office has • Tiered Levels of Access more than 1,500 full-time employ- ees focused on advertising and en- • ACH, Wire & gineering. Last week’s report came amid a Bill Payment wave of problems for Google. The company has faced scrutiny from federal regulators over its domi- nance in the search markets— Google accounts for some 65% of searches—and its recent acquisition THREE YEARS IN A ROW! of mobile-advertising firm Ad- “Highest in Customer Satisfaction with Small Business Banking” Mob, which raised antitrust con- – J.D. Power and Associates cerns. Google has also come under fire for collecting personal informa- tion through its Street View appli- cation. Visit your nearest TD Bank, connect to www.tdbank.com or call 1-888-751-9000 and open a business account today. Microsoft ecosystem google’s report arrived on the heels of a similar analysis from rival Microsoft. In October, the latter company released a study conduct- ed by Interactive Data Corp. assess- ing the economic impact of Win- dows 7. That report estimated that New York IT employment related to Windows 7 would total 166,098 by the end of 2010, or 22% of total IT employment. It also found that in- dependent New York companies in

TD Bank N.A., formerly Commerce Bank, received the highest numerical score in the proprietary J.D. Power and Associates 2007-2009 Small Business Banking Satisfaction StudiesSM. 2009 study based on 7,226 the local Microsoft ecosystem total responses, measuring 27 fi nancial institutions and measures opinions of small business customers with annual revenues from $100,000 to $10 million. Proprietary study results are based on experiences and perceptions of customers would invest $3.5 billion in their lo- surveyed in July-August 2009. Your experiences may vary. Visit jdpower.com. Some restrictions and fees may apply; check your account agreement for more information. | TD Bank, N.A. cal economies this year.

12 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0013-NAT-CCI-CN_-- 5/27/2010 4:26 PM Page 1

SMALL BUSINESS ➚ON THE WEB @ WWW.CRAINSNEWYORK.COM EXCLUSIVE Video interviews of our award winners can be found online. Go to crainsnewyork.com/ smallbizawards

Chris Paradysz Dan Hoffman PM Digital M5 Networks Teresa Carleo Plant Fantasies

Gaby Basora Tucker by Gaby Basora

Alex Mashinsky GroundLink Ntiedo Etuk Tabula Digita

photos by buck ennis

rain’s 2010 top entrepreneurs stand out for the perseverance and Of course, this kind of luck doesn’t just strike—it’s made.Teresa Carleo’s Plant ingenuity they bring to New York’s business community. Fantasies took off when she happened to win work at a building owned by Bernard The six entrepreneurs, representing a cross-section of industry, lead Spitzer, a major landlord. Fortuitous coincidence? Yes, but one born of hours fast-growing companies, with average growth rates for the past four walking the pavement making pitches at every possible stop. years that total more than 100%. Innovation is another hallmark of this year’s winners, who have variously set out CFar from allowing the trials of doing business in the city to daunt them, these six to revolutionize phone service, ground transportation and education. entrepreneurs took advantage of the dynamism of New York. For them, the Several winners are serial entrepreneurs, a breed that is increasingly common in seemingly random encounters that are a hallmark of life in the city were a spur. the city. Given the city’s new focus on improving the environment for small A rainy-day wait for a taxicab. A Barneys connection made at a dinner party. An businesses, we asked this year’s class of top entrepreneurs for their thoughts on how offhand remark by a high-school student. the city can nurture entrepreneurs.Their answers accompany each story.

May 31, 2010 | Crain’s New York Business | 13 20100531-NEWS--0014-NAT-CCI-CN_-- 5/27/2010 4:26 PM Page 1

REPORT SMALL BUSINESS Designer takes bold prints, fashions success

Distinctive line finds key outlets TUCKER BY GABY BASORA aby basora is still bemused that the loose-fitting peasant blouse with bold prints she made for herself Founded: 2006 and sold to friends five years ago turned her into an Employees: 6 G What NYC should do to nurture international design sensation. Her unforeseen good fortune began at dinner one night, when a friend introduced her to a entrepreneurs: For years, New York designers have fled New York Barneys New York buyer and a meeting was arranged. because it’s too expensive to rent NEXT STEP: Gaby Basora space. New York should take says she will probably bring “I arrived at Barneys with swatch- gram will sell for five weeks this fall. inventory of its space throughout in a business partner es stapled to paper,” says Ms. Basora. The classic Tucker blouse will retail the five boroughs, particularly to build scale. “I had no idea what I was doing.” for $25 at Target’s 1,400 stores, outside of Manhattan, and make a Barneys did. They spotted a compared with $265 at department dedicated effort to create factory trendsetter, and placed an order for stores and boutiques. facilities by offering manufacturers 400 blouses in 30 of her distinctive “Gaby Basora understands what incentives to stay in the city. clothing designer. “I was afraid I first setback. A 250-square-foot prints. Six weeks later, the retailer pieces belong in a woman’s wouldn’t be able to make a living do- boutique she opened on the Lower ordered 2,000 more. She filled the wardrobe,” says Joshua Thomas, a ing what I loved,” she says. East Side closed six months later. order by working with the New York Target spokesman. “Her line is bo- Though the orders came in fast She thought having her own bou- City factory that had done her ini- hemian and eclectic; yet it has a uni- after her success at Barneys in 2006, tique would shore up her line in case tial friends-and-family batch. versal appeal.” Ms.Basora built her company slow- retailers canceled orders during the Barneys put her on the map. An ly. She worked from home at first, recession. “But orders weren’t can- overnight success, Tucker by Gaby Planting the seeds then shared space with other de- celed, and I realized it was wrong to Basora is sold in 200 retail stores na- a twist of fate was responsible for signers and waited until 2007 to rent sell my merchandise and compete tionally and internationally, includ- Ms. Basora’s success, but her life ex- her own studio on West 14th Street. with my retail accounts,” she says. ing Bloomingdale’s, Intermix and perience had prepared her for it.The She has borrowed money from fam- Now she is at a crossroads. If she Scoop NYC. A cult phenomenon daughter of a skilled knitter, she left ily, hired interns and rolled up her is to continue growing her business with industry insiders and celebri- Seattle at 15 to finish high school in own sleeves to ship and pack orders. at the same pace,she simply can’t fill ties like Drew Barrymore and Cam- Paris. Later, she studied writing and After moving to New York in She outsourced some manufactur- both roles of designer and business eron Diaz, the label has been touted literature at Sarah Lawrence Col- 1988, Ms. Basora became a fashion ing to China to save money, though manager effectively. by nearly every fashion magazine. lege. The designer used to enlarge stylist and had children (she’s now she later decided to produce all of “To build scale and grow the A line Ms. Basora recently creat- candy wrappers to see how they’d the mother of three). At the time of her 50,000 items a year in New York company, I will probably have to ed in collaboration with Target for work as a print. Everything visual or the Barneys encounter, she had giv- City to support manufacturing here. bring in a business partner,”she says. the retailer’s Go International pro- sensual is a seed for her work. en up her dream of becoming a Last year, Ms. Basora had her —tina traster

PLANT FANTASIES Slow-tended, a business blossoms Founded: 1987 Employees: 40 What NYC should do to nurture Plant Fantasies serves a who’s who entrepreneurs: The city could help new businesses by providing n 1987,Teresa Carleo did what so many irked employees them with a venue to showcase do when passed over for a promotion: She quit her job to their craft to other companies. Istart her own business. She didn’t leave the landscaping company with a Rolodex of clients, and she had limited horticulture experience, but neither factor diminished Ms. Carleo’s resolve to plant and prune in

the concrete jungle of Manhattan. she responded affirmatively. She She named her one-woman busi- took Polaroid snapshots and made a ness Plant Fantasies. “I had a lot of beeline to Otto Keil, owner of a energy and passion,”says Ms.Carleo. Long Island wholesale nursery. MAGIC GARDEN: That was about all she had. There, she got a quick tutorial on Teresa Carleo lives out her Plant In between cold-calling building what she should plant and where. A Fantasies. fees ranging from $1,200 for a cou- managers and owners from her one- stack of books filled in the gaps. ple of plantings to $600,000 for a bedroom apartment, Ms. Carleo “I didn’t know how to price any- multilevel, high-end exterior land- walked the city’s streets,keeping her thing and had to ask the nursery,” scape. In a difficult real estate mar- eyes peeled for Mother Nature’s she says. stacks of gardening supplies and growth by becoming a certified ket where property owners are fixat- bounty. Bushes in front of buildings bushels of greenery out of the apart- woman-owned business—a recog- ed on maintaining appearances to and flora in lobbies represented po- Moving was a great move ment she shared with her husband nition that has enabled her to win attract tenants, Ms. Carleo’s flour- tential customers. soon the fledgling entrepreneur and into an 800-square-foot loft space. ever-larger and more complex proj- ishing business is on track to gener- She hit pay dirt when a doorman was handling other Spitzer proper- Obsessed with meeting her ects, including from New York state, ate $5 million in revenues this year, gave her the number of his employ- ties, relying on taxis or a “man with monthly office rent of $700, Ms. such as constructing green roofs. a 25% jump over 2009’s $4 million. er, Spitzer Engineering, which con- a van” to squire her to job sites to in- Carleo expanded her services to in- Today, from its 3,500-square- She still uses the same nursery. tracted her to install and maintain stall, rotate and water. She got up clude everything from installing and foot work space on the West Side, “When Teresa first started out, indoor plants at its luxury rental, before sunrise, traveled across the storing Christmas decorations to the firm services a who’s who of the she would ask my opinion, but now The Corinthian. city and took any minor or major tending to her clients’ lawns. city’s real estate industry, including she tells me what she wants,” says When the Bernard Spitzer- project to keep busy. “Moving was the best thing I The Trump Organization, Mack- Mr. Keil. “She’s an expert now in owned real estate firm asked if she Ms. Carleo took seven years to did,” she says. lowe Properties and Jack Resnick & plants and colors and very fussy,in a could take on a larger landscaping summon up the courage to move Eight years ago, Ms. Carleo Sons. With 40 employees, Plant good way, for her customers.” project—the building’s exterior— Plant Fantasies, its four employees, planted the seeds for even greater Fantasies commands installation —cara s. trager

14 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0015-NAT-CCI-CN_-- 5/27/2010 4:27 PM Page 1

REPORT SMALL BUSINESS M5 NETWORKS INC. Founded: 2000 Tech firm’s calls are connecting Employees: 110 What NYC should do to nurture entrepreneurs: Promote New York as the vital hub of Follows ‘cloud’ model to software entrepreneurship it really is. All the layoffs in the financial ix years into its existence,M5 Networks Inc. had industry have produced a very fertile environment for startups, become a respectable Internet-based telecom provider to and all these smart people are Sbusinesses, but its CEO was feeling underwhelmed. jumping in. “We could have kept going as we were, and been a nice, profitable company,” says Dan Hoffman, who helped found the company in 2000. “But we decided to make a bold leap.”

To provide its customers with grow those businesses. It lets busi- better reliability, a better user expe- nesses track sales and service activity. rience and more powerful applica- “The conventional wisdom in tions, M5 decided to build its own the phone industry was that you ei- core technology, taking over the job ther deliver service or write soft- from an outside software company. ware, but you can’t do both well,” That shift was no small undertak- says Mr. Hoffman. “But the emerg- ing: It meant opening the door to ing ‘cloud’model,led by Google and COMMUNICATIONS MAJOR: as if another wall had fallen. Dan Hoffman says M5’s goal is venture investors, including Grey- Salesforce.com, showed that you to be a “great brand in telecom M5—whose 1,200 customers croft Partners and Milestone Ven- had to do both to win in the Inter- around service.” range from Amnesty International ture Partners, for $10 million to buy net world.” to Isaac Mizrahi to e-commerce site a software development company Etsy—is succeeding in part because and fund research and development. Rising revenues of its rock-solid voice-over-Internet Moreover, it meant changing the so far, so good. The company’s studied Slavic languages and litera- Mr. Hoffman’s dream of work- service and its great technology. But firm’s business model from being a 2009 revenues were $26 million. It’s ture. “I was attracted to anything ing in Russia never materialized, its success also rests on the fact that telecom company to what’s known as on track to reach $32 million in 2010. that was falling apart or in chaos, because of the political upheaval M5 tailors its technology to meet a software-as-service provider. In Mr. Hoffman’s accomplishment and at that time,the Berlin Wall had there. But within a few years, the clients’ needs, rather than expecting other words, M5 went from offering is all the more impressive consider- just come down,” he explains. “All Internet revolution did material- clients to adapt to its technology. fairly standard phone service to of- ing that technology was not his first the professors had no idea what was ize, and the uncertainty and poss- “They are focused on those fea- fering phone service that is a tool to love. As a Harvard undergrad, he going on, and I kind of liked that.” ibility that it heralded drew him in See MAKING on Page 18

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May 31, 2010 | Crain’s New York Business | 15 20100531-NEWS--0016,0017-NAT-CCI-CN_-- 5/27/2010 4:28 PM Page 1

REPORT SMALL BUSINESS GROUNDLINK Founded: 2004 Elevating ground-level service Number of employees: 95 What NYC should do to nurture entrepreneurs: Make the city a magnet for tech startups by 100 VC firms passed on this idea creating a fund to match the investments made by venture lex mashinsky’s GroundLink was born on a wet day, capital firms. out of a missing Mercedes.Trying to impress an Aimportant business contact, Mr. Mashinsky, a longtime telecom entrepreneur, had ordered a limo to transport them from the airport.The limo never showed; after 35 minutes of staring into the rain, the pair climbed into a taxi. Most people who’ve had a bad Mashinsky, who describes six-year- taxi or limo experience merely old GroundLink as FedEx for peo- grumble. ple instead of packages.“I was using Mr. Mashinsky stewed for a lot of ground transportation all GETTING THERE: months and then conceived of a over the world and was completely Alex Mashinsky more than projected. And it took global service that lets individuals, frustrated with the level of service describes GroundLink five times longer to bring to market as FedEx for people corporations and travel agencies and the lack of accountability.” instead of packages. than anticipated. But the finished find, price, book and pay for ground More than 100 venture firms product provides a truly unprece- travel worldwide with a few key- passed on Mr. Mashinsky’s plan, dented service, experts say. strokes. GroundLink also lets users calling its global reach too ambi- “They are doing something that rate the providers so other travelers tious. The entrepreneur is having million in revenues in 2010. in 1989. In 1996, he founded Ar- no one else is doing,” says Bob Of- can avoid smelly taxis, unreliable the last laugh: Clients like JetBlue Thinking globally is Mr. binet, a worldwide electronic mar- futt, a travel-technology analyst shuttles and overpriced limos. Airways,American Express Co.and Mashinsky’s style. Born in Ukraine ketplace for communications trad- with research firm PhoCusWright. “I started the company as a dis- Royal Caribbean Cruises Ltd. have 45 years ago, he was raised in Is- ing. His profits from selling the “They are empowering the traveler satisfied customer,” says Mr. GroundLink on track to rack up $26 rael and moved to the United States company in 2005 ended up provid- to find ground transportation wher- ing most of the startup capital for ever they are.” GroundLink. Mr. Mashinsky’s passion for his latest project just might be propor- Going global tional to his transportation frustra- “from day one at GroundLink,we tions through the years. There was said, ‘Let’s solve the world’s prob- the time he was told by a car compa- lem, not just New York’s problem,’ ” ny that his mother had been success- says Mr. Mashinsky, who eventual- fully dropped at JFK—only to learn ly wants to take the company public. that she and the driver had, in fact, At its heart, GroundLink’s busi- been stranded two miles from the ness is simple: It matches supply airport after a breakdown. and demand in the ground-travel When Mr. Mashinsky’s re- market. Its proprietary technology search into what was wrong with lies behind websites and mobile the transportation market revealed applications developed by Mr. that he would have the field to him- Mashinsky and his colleagues that self, he knew immediately that he serve as virtual marketplaces for would have another successful transportation. company. The company’s global ambitions “There’s usually an 800-pound carried a large price tag. Developing gorilla on the demand or the supply the new venture’s network of 45,000 side,”he says.“In this industry,there transportation providers ended up wasn’t anyone like that.” costing $16 million—five times —steve garmhausen E-marketer finds t ... and delivers on the numbers ack in 2002, a year after the dot-com bubble burst, online marketing seemed like the last place a smart Bbusinessman should be positioning himself. “No one trusted the Internet,” says Chris Paradysz, who at the time was running an established offline marketing company, ParadyszMatera, with former partner Angelo Matera. “Budgets had been squan- ey you’re spending on the worst dered. Advertisers had spent mil- thing you’re doing and we’ll do no lions on banner ads without results. worse.’ ” They had no way to measure their return on investment.” Bloomingdale’s bites first It’s hard enough to measure con- not exactly a great come-on, sumer motivation in the offline but Bloomingdale’s bit, spending world; how could anyone measure it $20,000 on a six-week campaign online? Mr.Paradysz saw promise in to buy ad words on Google and a new service being offered by the Yahoo, which offered more measur- big search engines: ad-word cam- able results than the banners the big paigns based on companies’ key retailer had dumped money into marketing words. previously. “I made our offline clients an of- Success with the campaign em- fer,” he recalls: “ ‘Give us the mon- boldened Mr. Paradysz to tap his

16 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0016,0017-NAT-CCI-CN_-- 5/27/2010 4:28 PM Page 2

REPORT SMALL BUSINESS TABULA DIGITA Founded: 2003 Die! Die! Die, boring schoolwork! Employees: 21 What NYC should do to nurture entrepreneurs: Come up with incentives to attract entrepre- Tabula Digita reboots education DIGITAMAN: Nt neurs to commercialize technol- Etuk’s aha moment is changing schools’ ogy created by the city’s univer- tiedo “nt”etuk’s aha moment did more than turn approach to sities. Entrepreneurial startup him into an entrepreneur. educational software. costs are reduced, universities A Big Brother volunteer, he was dismissed by his earn royalties from the commer- N cialization of intellectual property, little brother’s mother. Her son had lamented that he never and the city promotes job crea- had fun with Mr. Etuk, since they spent their time together tion and gains from tax revenues. doing math. “He was an example of a larger branded with Tabula Digita for one generation of kids not engaged in of its earliest products, and educa- learning, but in video games,” says tion giant Pearson has served as a Mr. Etuk. marketing, distribution and devel- That realization spurred him to opment partner since last year. launch a software company that Don Knezek,chief executive of the turns kids on to learning, even sub- Eugene, Ore.-based International jects that aren’t their strongest or fa- Society for Technology in Education, vorite, such as science and math. Its a 20,000-member organization that of the business, left the company in and market the software to schools, key ingredient is fun, in the form of has developed software with Tabula 2008 to pursue other activities,and he dispatching the product at a dis- 3-D graphics and sound that seem Digita, says the Long Island City, retains a share of the businesss. Their counted price to one-dozen school “All of a sudden, people realized more like Xbox than Learning Li- Queens,firm’s inroads are a testament initial strategy to market the product districts throughout the country and that educational gaming was the brary, multiplayer capabilities that to “Nt’s creativity, energy, personality, to a learning-center firm went awry hoping that students, parents and next wave of educational software,” allow students to see their competi- perseverance and knack for knowing when that company went bankrupt. teachers would become the software’s says Mr. Etuk. tors, and running tallies of scores. what will work and what won’t.” That forced Tabula to switch gears advocates and generate referrals. —cara s. trager “Educational companies create tools to help teachers do their jobs, Good-bye, Citigroup; hello, software but they don’t give students the tools those same qualities helped the they need in the format they want,” firm attract more than $14 million in says Mr.Etuk,the Nigerian-born co- venture capital since 2006. Mr. founder and chief executive of seven- Etuk’s family and friends—in med- year-old Tabula Digita, which aims icine,real estate,retailing and invest- COMMAND its software at elementary, middle ment banking—initially provided and high school students. $1.2 million in seed money, which COMPLEX Many of the nation’s largest gave the company the resources to COMPOSED school districts—including in New hire game-development shops. York, Florida, Illinois and Texas— Despite a promising manage- COACH pay from $5 to $20 per student for ment-track post at Citigroup—special subscriptions that include four dif- assistant to the chief of staff of the pres- COGNIZANT ferent games that students can play at ident—he had no second thoughts. home and in school, along with call- “I always wanted to start my own COLLABORATIVE center and e-mail support. The 21- company, and I got tired of doing CONTEMPORARY employee firm is slated to increase other things rather than what I sales this year by almost 40%, to $4 wanted to,” says Mr. Etuk, adding, COUNSEL COZEN million from $2.9 million in 2009. “It all came to a head at 26.” Large publishing houses have Still,the road to success hasn’t been CONFIDENCE also embraced the software. Six bump-free. Tabula co-founder Rob COURAGE years ago,The Princeton Review co- Clegg, who handled the creative end O’CONNOR CELEBRATES COLLEAGUE the good ad words COMMUNICATOR Geoffrey Ferrer, Corporate / Trial Lawyer

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May 31, 2010 | Crain’s New York Business | 17 20100531-NEWS--0018-NAT-CCI-CN_-- 5/27/2010 4:28 PM Page 1

REPORT SMALL BUSINESS

Companies that use hosted solu- control,” explains Mr. Hoffman. tions like M5 tend to get access to Ms. Popova calls Mr. Hoffman Making the right call more frequent upgrades, better ca- an “amazing” entrepreneur. But not The good pabilities and more advanced fea- everything he and his partners have tures because of competition in the touched has turned to gold. They Continued from Page 15 Most of its competitors offer large burgeoning new field. built a firm called Interport Com- ad words tures and capabilities that are truly systems that businesses must buy,de- Armed with its own development munications Inc. and made $12.3 valuable to their specific users,” says ploy and manage on their premises. team, M5 has been able to introduce million selling it in 1998. But a sub- Elka Popova, an analyst with re- M5 is different:As a software-as- a variety of advanced features.A pop- sequent effort, Asia Online Ltd., Continued from Page 17 search firm Frost & Sullivan. “And service business, it owns and man- ular one allows managers to easily was a “dot-bomb,”admits Mr.Hoff- self as a pioneer in online marketing, the way their marketing highlights ages the system. This allows small track how employees spend time. man, in part because it paid too lit- one of the first to offer advertisers business benefits rather than tech- and midsize businesses, which are Managers get automatically generat- tle attention to customer service. tools to measure the results of their nical details shows they’re thinking usually more strapped for cash than ed reports showing who their em- Lesson learned, says Mr. Hoff- online ad campaigns and see exactly about their customers.” large ones, to pay predictable ployees have called and when, and man. “There is no great brand in what consumers were responding to. Mr. Hoffman’s company is just monthly fees rather than a big up- the length of their conversations. telecom around service,” he says. “He focused on data insight one of many that provides business- front sum, and to have experts from “This solves the problem of “That is who we’re trying to be.” when it wasn’t readily available, and grade communications, of course. M5 run a high-end system for them. managers being in charge but not in —steve garmhausen that is what gave him a competitive advantage,”says Bruce Biegel,man- aging director of Winterberry Group, a consulting firm for adver- tising and marketing companies. The field has since become much more crowded,but PM Digital con- tinues as a cutting-edge agency that specializes in search engine market- ing, search engine optimization, so- cial media marketing and shopping portal feeds. Expanding its capabilities pm digital, which projects $18 million in revenue, has grown threefold since 2006. In September 2009, the acquisition of SpinShark,

PM DIGITAL Founded: 2002 Employees: 60 What NYC should do to nurture entrepreneurs: Stop the flow of talent away from New York City. Make the city more affordable for people to live and work here. Otherwise, we’re going to see a continued drain on our talent pool.

a search engine optimization com- pany, expanded PM Digital’s capa- bilities in search and social media marketing. Clients—primarily retailers and media—include Bloomingdale’s, Eileen Fisher, The North Face, Harvard Business Review, The Wall Street Journal and Forbes. The Manhattan-based compa- ny—which has offices in San Fran- cisco, Indianapolis and Columbia, S.C.—also handles online market- ing services for several nonprofits, including the S.L.E. Lupus Foun- dation, American Cancer Society, Paralyzed Veterans of America and Habitat for Humanity. Mr. Paradysz, a father of three, including a grown daughter who suffers from lupus, serves on the ex- ecutive council of the S.L.E. Lupus Foundation. He recently completed a bike race that raised more than $50,000 to fund medical research for the disease. —tina traster

18 | Crain’s New York Business | May 31, 2010 nb22p19-20cl.qxp 5/28/10 11:44 AM Page 19

PUBLIC & LEGAL NOTICES TELECOMMUNICATIONS REAL ESTATE

Name of For. LLC: SuttonBrook Notice of Qualification of Kairon Name of For. LLC: LEVEL RADAR Eureka Fund GP LLC. App. for Auth. Capital, LLC, App. for Auth. filed HOLDING, L.L.C. App. for Auth. filed COMMERCIAL filed NY Dept. of State: 4/21/2010. Sec’y of State (SSNY) 4/7/10. Office NY Dept. of State: 4/2/2010. Jurisd. STATEN ISLAND Jurisd. and date of org.: DE 4/19/10. location: NY County. LLC org. in DE and date of org.: DE 3/19/10. Cty off. Cty off. loc.: NY Cty. Princ. bus. loc.: 4/6/10. SSNY designated as agent of loc.: NY Cty. Sec. of State designated 598 Madison Ave., 6th Fl., NY, NY LLC upon whom process against it as agent of foreign LLC upon whom STATEN ISLAND 10022. Sec. of State designated as may be served. SSNY shall mail process against it may be served. Location Location Location agent of foreign LLC upon whom copy of process to Attn: Avinash The Sec. of State shall mail copy of Dealership site 4000 sqft bldg on 2300 sqft property. process against it may be served. Sarma, 111 Broadway, 10th Fl., NY, process to: Level Global, L.L.C., 888 C-8 zone Street to street. The Sec. of State shall mail copy of NY 10006. DE office addr.: CSC, 7th Ave., 27th Fl., NY, NY 10019. Possible joint venture. process to: 598 Madison Ave., 6th 2711 Centerville Rd., Wilmington, DE Addr. of foreign LLC in DE is: 2711 718-720-2020 Fl., NY, NY 10022. Addr. of foreign 19808. Cert. of Form. on file: SSDE, Centerville Rd., Ste. 400, Wilmington, 917-582-4633 LLC in DE is: Corp. Service Townsend Bldg., Dover, DE 19901. DE 19808. Auth. officer in DE where Company, 2711 Centerville Rd., Ste. Purpose: any lawful activities. Cert. of Form. filed: DE Sec. of State, 400, Wilmington, DE 19808. Auth. Duke & York St., Dover, DE 19901. officer in DE where Cert. of Form. Notice of Formation of STERN Purpose: any lawful activity. OFFICE SPACE filed: DE Sec. of State, Townsend MARCELLUS HOLDINGS, LLC. Bldg., Dover, DE 19901. Purpose: Arts. of Org. filed with Secy. of State Notice of Formation of Lindsay Smith any lawful activity. of NY (SSNY) on 05/06/10. Office Architect PLLC, a professional serv- PARK /54TH location: NY County. Princ. office of ice limited liability company (PLLC). large office in tasteful Notice of Qualification of FULTON LLC: 667 Madison Ave., 24th Fl., Arts. of Org. filed with Secy. of State OWNER LLC amended to FULTON NY, NY 10021. SSNY designated as of NY (SSNY) on 4/29/10. Office law suite. LESSEE LLC. Authority filed with agent of LLC upon whom process location: NY County. SSNY designat- 1-2 workstations available. Secy. of State of NY (SSNY) on against it may be served. SSNY ed as agent of PLLC upon whom All amenities. 4/14/10. Office location: NY County. shall mail process to Timothy P. process against it may be served. 212.688.5900 ext. 249 LLC formed in Delaware (DE) on Terry at the princ. office of the LLC. SSNY shall mail process to: Menaker 4/13/10. SSNY designated as agent Purpose: Any lawful activity. and Herrmann LLP, 10 E. 40th St., of LLC upon whom process against NY, NY 10016, Attn: Robert F. it may be served. SSNY shall mail Herrmann, Esq. Purpose: practice Notice of Formation of ICER Real process to: c/o Regi Corp., 15 W. the profession of architecture. Estate Services, LLC. Articles of 34th St., 8th Fl., NY, NY 10001. DE Organization filed with Secy. of State PUBLIC & LEGAL NOTICES address of LLC: United Corporate of NY (SSNY) on 02/10/10. Office Notice of Formation of Deer Stags Services, Inc., 874 Walker Rd., Ste. location: NY County. SSNY designated LLC. Arts. of Org. filed with Secy. of C, Dover, DE 19904. Arts. of Org. as agent of LLC upon whom process State of NY (SSNY) on 5/7/10. Notice of Qualification of 33 CANAL Notice of Qualification of MQ Absolute filed with DE Secy. of State, 401 against it may be served. SSNY shall Office location: NY Co. SSNY desig- STREET LLC. Authority filed with Secy. Return Strategies - Asia LLC. Federal St., Ste. 4, Dover, DE 19901. mail process to the LLC c/o Icer nated as agent of LLC upon whom of State of NY (SSNY) on 05/13/10. Authority filed with NY Dept. of State Purpose: any lawful activity. Brands, LLC, 1385 Broadway - 16th process against it may be served. Office location: NY County. LLC on 5/21/10. Office location: NY Fl., New York, NY 10018. Purpose: SSNY shall mail process to: Hartman formed in Delaware (DE) on 04/26/10. County. LLC formed in DE on 4/5/10. Notice of Qualification of PCA any lawful act or activity. & Craven LLP, c/o Neal Dorman, 488 Princ. office of LLC: c/o Naomi NY Sec. of State designated as Advisors, LLLP. Authority filed with Madison Ave., NY, NY 10022. Blumenthal, Manager, 125 E. 17th agent of LLC upon whom process Secy. of State of NY (SSNY) on Purpose: any lawful activities. St., NY, NY 10003. SSNY designated against it may be served and shall 4/29/10. Office location: NY County. Notice of Formation of VMV US as agent of LLC upon whom process mail process to the principal busi- STORE 1 LLC. Arts. of Org. filed with against it may be served. SSNY shall ness addr.: 125 W. 55th St., 10th Fl., LLC formed in North Carolina (NC) Notice of Formation of NYC DENTAL on 3/6/08. SSNY designated as Secy. of State of NY (SSNY) on mail process to the LLC at the addr. NY, NY 10019. DE addr. of LLC: c/o 05/13/10. Office location: NY County. HOLDINGS, LLC. Arts. of Org. filed of its princ. office. DE addr. of LLC: The Corporation Trust Co., 1209 agent of LLC upon whom process with Secy. of State of NY (SSNY) on against it may be served. SSNY shall Princ. office of LLC: c/o VMV Group, c/o Corporation Service Co., 2711 Orange St., Wilmington, DE 19801. Attn: Cristina Constance V. Rowell, 05/11/10. Office location: NY County. Centerville Rd., Ste. 400, Wilmington, Arts. of Org. filed with DE Sec. of mail process to the NC address of SSNY designated as agent of LLC LLC: 5915 Farrington Road, Ste. 16 W. 16th St., NY, NY 10011. SSNY DE 19808. Arts. of Org. filed with State, P.O. Box 898, Dover, DE designated as agent of LLC upon upon whom process against it may Secy. of State - DE, Div. of Corps., 19903. Purpose: any lawful activity. 202, Chapel Hill, NC 27517. Arts. of be served. SSNY shall mail process Org. filed with NC Secy. of State, whom process against it may be John G. Townsend Bldg., 401 served. SSNY shall mail process to to Corporation Service Co., 80 State Federal St., Dover, DE 19901. P.O. Box 29622, Raleigh, NC 27626. St., Albany, NY 12207-2543. Notice of Formation of CROCO LLC. Purpose: any lawful activity. the LLC at the addr. of its princ. Purpose: Any lawful activity. office. Purpose: Any lawful activity. Purpose: Any lawful activity. Articles of Organization filed with Secy. of State of NY (SSNY) on 03/26/10. Notice of Formation of DELAFIELD Notice of Formation of Avenue of the Office location: NY Co. SSNY desig- Notice of Formation of 70-74 East End ART CONSULTANTS, LLC. Arts. of ONE CENTRAL PARK SOUTH Americas 1707, LLC, a limited liability nated as agent of LLC upon whom Avenue LLC. Arts. of Org. filed with Org. filed with Secy. of State of NY CRETERIUM, LLC a domestic company. Art of Org filed with the process against it may be served. Secy. of State of NY (SSNY) on 5/14/10. (SSNY) on 05/06/10. Office location: Limited Liability Company (LLC) filed Sec of State of New York (SSNY) on SSNY shall mail process to the LLC Office location: NY Co. SSNY desig- NY County. Princ. office of LLC: with the Sec of State of NY (SSNY) 3/2/10. Office located in New York c/o Robinson Brog Leinwand Greene nated as agent of LLC upon whom 159 W. 53rd St., #19F, NY, NY 10019. on 9/8/2006. NY office Location: New County. SSNY has been designated Genovese & Gluck, PC, Attn: Leonard process against it may be served. SSNY SSNY designated as agent of LLC York County. SSNY is designated as for service of process. SSNY shall B. Nathanson, Esq., 875 Third Ave, shall mail process to: The Brearley upon whom process against it may agent upon whom process against mail copy of any process to the LLC 9th Fl., New York, NY 10022. School, 610 E. 83rd St., NY, NY 10028. be served. SSNY shall mail process the LLC may be served. SSNY shall c/o James E. Bishop, 902 Clint Moore Purpose: any lawful act or activity. Purpose: any lawful activities. to the LLC, Attn: Kristin Dunlap at mail a copy of any process against Road, Suite 220, Boca Raton, Florida the princ. office of the LLC. the LLC served upon him/her to The 33487. Purpose: any lawful purpose. LLC, Greener Cohen LLP, 444 Notice of Qualification of PANDEMIC Purpose: Any lawful activity. Notice of Formation of SYAN ADVI- MEDIA, LLC. Authority filed with Secy. Madison Ave. Ste. 805, NY, NY SORS, LLC, a domestic LLC. Arts. 10022. General Purpose Notice of Qualification of MREPGlobal4, of State of NY (SSNY) on 05/18/10. Notice of Formation of ICER of 236 of Org. filed with the SSNY on LLC, Authority filed Sec’y of State Office location: NY County. LLC W. 139th Street, LLC. Articles of 01/18/2002, name changed to read: (SSNY) 2/1/10. Office loc.: NY County. formed in Delaware (DE) on 05/15/09. Organization filed with Secy. of State 940 Fulton LLC. Arts. of Org. filed EAST WIND ADVISORS, LLC on LLC org. in DE 1/28/10. SSNY desig. Princ. office of LLC: 240 Centre St., of NY (SSNY) on 02/10/10. Office with Secy. of State of NY (SSNY) on 01/29/2002. Office location: NY as agent of LLC upon whom process NY, NY 10013. SSNY designated as location: NY County. SSNY designat- 11/3/09. Ofc in NY Cty. SSNY desig- County. SSNY has been designated against it may be served. SSNY shall agent of LLC upon whom process ed as agent of LLC upon whom nated agent of LLC upon whom as agent upon whom process mail copy of proc. to Attn: Sarah against it may be served. SSNY shall process against it may be served. process against it may be served. against the LLC may be served. Withers, 135 E. 57th St., 16th Fl., NY, mail process to c/o Corporation SSNY shall mail process to the LLC SSNY shall mail process to Ore SSNY shall mail a copy of process NY 10022. DE office addr.: CSC, Service Co., 80 State St., Albany, NY c/o Icer Brands, LLC, 1385 Broadway Management LLC, 936 Fulton St to: Joshua Schwartz, 215 W. 98th 2711 Centerville Rd., Wilmington, DE 12207-2543. DE addr. of LLC: 160 - 16th Fl., New York, NY 10018. Comm. A, Bklyn, NY 11238. Purpose St., Apt 4A, NY, NY 10025. 19808. Cert. of Form. on file: SSDE, Greentree Dr., Ste. 101, Dover, DE Purpose: any lawful act or activity. any lawful purpose. Purpose: Any Lawful Purpose. Townsend Bldg., Dover, DE 19901. 19904. Arts. of Org. filed with Secy. Purp.: any lawful activities. of State, Div. of Corps., 401 Federal Notice of Qualification of 54-56 IRVING Notice of Qualification of IP III Name of For. LP: Blue Square Small St., Ste. 4, Dover, DE 19901. PLACE LLC. Authority filed with Secy. MORTGAGES CARRY LP. Authority Cap Value Fund LP. Appl. for Auth. Notice of Qualification of CME Group Purpose: Any lawful activity. of State of NY (SSNY) on 05/13/10. filed with Secy. of State of NY filed with Sec. of State of NY: 2/6/09. Index Holdings LLC. Authority filed Office location: NY County. LLC (SSNY) on 04/19/10. Office location: Jurisd. and date of org.: DE 2/5/09. with NY Dept. of State on 5/13/10. formed in Delaware (DE) on 04/26/10. NY County. LP formed in Delaware NY State off. loc.: New York Cty. Office location: NY County. Princ. Princ. office of LLC: c/o Naomi (DE) on 10/09/07. SSNY designated Sec. of State designated as agent bus. addr.: 20 S. Wacker Dr., Blumenthal, Manager, 125 E. 17th as agent of LP upon whom process upon whom process against it may Chicago, IL 60606. LLC formed in DE To place your St., NY, NY 10003. SSNY designated against it may be served. SSNY shall be served. Sec. of State shall mail on 1/29/10. NY Sec. of State desig- as agent of LLC upon whom process mail process to the Partnership, 40 copy of process to: c/o Blue Square nated as agent of LLC upon whom against it may be served. SSNY shall W. 57th St., NY, NY 10019. Name Partners LLC, 200 E. 94th St., Ste. process against it may be served mail process to the LLC at the addr. and addr. of each general partner are 2517, NY, NY 10128. Addr. of LP in and shall mail process to: c/o CT classified ad of its princ. office. DE addr. of LLC: available from SSNY. DE addr. of LP: DE is: c/o National Corporate Corporation System, 111 8th Ave., c/o Corporation Service Co., 2711 c/o The Corporation Trust Co., Corp. Research, Ltd., 615 South DuPont NY, NY 10011, regd. agent upon Centerville Rd., Ste. 400, Wilmington, Trust Center, 1209 Orange St., Hwy., Dover, DE 19901. Name/addr. whom process may be served. DE call John Gallagher DE 19808. Arts. of Org. filed with Wilmington, DE 19801. Arts. of Org. of GP avail. from Sec. of State. addr. of LLC: 1209 Orange St., Secy. of State - DE, Div. of Corps., filed with Jeffrey W. Bullock; Div. of Authorized office in DE where Cert. Wilmington, DE 19801. Arts. of Org. John G. Townsend Bldg., 401 Corp., John G. Townsend Bldg., 401 of LP is filed is: DE Sec. of State, filed with DE Sec. of State, 401 @ 212-210-0189 Federal St., Dover, DE 19901. Federal St. - Ste. 4, Dover, DE 401 Federal St., Dover, DE 19901. Federal St., Dover, DE 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity. Purpose: any lawful activity. Purpose: any lawful activity.

May 31, 2010 | Crain’s New York Business | 19 nb22p19-20cl.qxp 5/28/10 11:44 AM Page 20

PUBLIC & LEGAL NOTICES

Notice of Qualification of RIVER Notice of Formation of Bedford Notice of Qualification of The Helsinki Notice of Qualification of WRY Notice of Qualification of Bank of TWICE CAPITAL ADVISORS, LLC. Grove, LLC. Articles of Organization Group LLC. Authority filed with Secy. DEVELOPER LLC. Authority filed with America Capital Advisors LLC. Authority filed with Secy. of State of filed with the Secretary of State of of State of NY (SSNY) on 8/17/09. Secy. of State of NY (SSNY) on Authority filed with NY Dept. of State NY (SSNY) on 04/08/10. Office loca- NY (SSNY) on 04/20/2010. Office Office location: NY County. LLC 04/20/10. Office location: NY County. on 4/20/10. Office location: NY tion: NY County. LLC formed in Location: New York County. SSNY formed in Delaware (DE) on 8/10/09. LLC formed in Delaware (DE) on County. Princ. bus. addr.: 100 Federal Delaware (DE) on 03/15/10. SSNY has been designated as an agent SSNY designated as agent of LLC 03/26/10. Princ. office of LLC: 60 St., Boston, MA 02110. LLC formed designated as agent of LLC upon upon whom process against it may upon whom process against it may Columbus Circle, NY, NY 10023. in DE on 7/29/98. NY Sec. of State whom process against it may be be served. The Post Office address be served. SSNY shall mail process SSNY designated as agent of LLC designated as agent of LLC upon served. SSNY shall mail process to to which the SSNY shall mail a copy to: c/o Frankfurt Kurnit Klein & Selz, upon whom process against it may be whom process against it may be c/o Medley Capital, LLC, 375 Park of any process against the LLC P.C., 488 Madison Ave., 10th Fl., NY, served. SSNY shall mail process to served and shall mail process to: Ave., 33rd Fl., NY, NY 10152. DE served upon him is C/O the LLC NY 10022, Attn: Jerrold B. Spiegel, c/o Corporation Service Co. (CSC), 80 c/o CT Corporation System, 111 8th addr. of LLC: Corporation Service Bedford Grove, 2109 Broadway, Esq. DE address of LLC: 874 Walker State St., Albany, NY 12207. DE addr. Ave., NY, NY 10011, regd. agent Co., 2711 Centerville Rd., Ste. 400, #775, New York, NY 10023. Purpose Road, Ste. C, Dover, DE 19904. Arts. of LLC: c/o CSC, 2711 Centerville upon whom process may be served. Wilmington, DE 19808. Arts. of Org. of LLC: to engage in any lawful act of Org. filed with DE Secy. of State, Rd., Wilmington, DE 19808. Arts. of DE addr. of LLC: The Corporation filed with DE Secy. of State, Div. of or activity. Street address of Principal Townsend Bldg., Dover, DE 19901. Org. filed with Secy. of State of DE, Trust Co., 1209 Orange St., Corps., 401 Federal St., Dover, DE Business location is: 2109 Broadway, Purpose: any lawful activity. John G. Townsend Bldg., Federal Wilmington, DE 19801. Arts. of Org. 19901. Purpose: Any lawful activity. #775, New York , NY 10023. and Duke of York Sts., Dover, DE filed with DE Sec. of State, 401 Notice of Formation of WELL BUILT 19901. Purpose: Any lawful activity. Federal St., Dover, DE 19901. NOTICE OF FORMATION of Hotiron Notice of Qualification of Blue Light ENTERPRISES LLC. Arts. of Org. Purpose: any lawful activity. Creative, LLC. Arts of Org filed with Capital Management, LLC. Authority filed with Secy. of State of NY Notice of Formation of LEXINGTON the Secy of State of New York (SSNY) filed with NY Dept. of State on (SSNY) on 04/29/10. Office location: MANAGEMENT ASSOCIATES, LLC. Notice of formation of Onward on 1/13/10. Office location: NY County. 4/13/10. Office location: NY County. NY County. Princ. office of LLC: Arts. of Org. filed with Secy. of State Earthling LLC. Arts of Org. filed with SSNY has been designated as an LLC formed in DE on 3/2/10. NY Sec. Attn: Mitchell Kidd, 61 Irving Pl., Apt. of NY (SSNY) on 04/08/10. Office Secy. of State of N.Y. (SSNY) on agent upon whom process may be of State designated as agent of LLC 5C, NY, NY 10003. SSNY designated location: NY County. Princ. office of 1/25/10. Office location: New York served and shall mail a copy of any upon whom process against it may as agent of LLC upon whom LLC: c/o Pacific Housing Advisors, County. SSNY designated as agent process to the principal business be served and shall mail process to process against it may be served. 570 Lexington Ave., 24th Fl., NY, NY of LLC upon whom process against address: 330 E 46 St., 11G, NY, NY the principal business address: 43 SSNY shall mail process to the LLC 10022. SSNY designated as agent of it may be served. SSNY shall mail 10017. Purpose: any lawful act. Crosby St., Ste. 4, NY, NY 10012. DE at the addr. of its princ. office. LLC upon whom process against it may process to: 121 Macdougal Street, address of LLC: 615 S. DuPont Hwy., Purpose: Any lawful activity. be served. SSNY shall mail process No. 13, New York, NY 10012. Name: I.W.E., LLC. Art Of Org. Filed Dover, DE 19901. Arts. of Org. filed to the LLC at the addr. of its princ. Purpose: any lawful activity. Sec. Of State of NY 11/23/2009. Off. with DE Sec. of State, 401 Federal Notice of Formation of LLC. Bend office. Purpose: Any lawful actvity. Oil, LLC (LLC) filed Arts. of Org. with Loc.: NY Co. SSNY designated as St., Dover, DE 19901. Purpose: Notice of Formation of Eastern Secy. of State of NY (SSNY) on agent upon whom process against it investment fund manager. Notice of Formation of PECK SHEB Capital Debt LLC. Arts. of Org. filed 4/21/2010. Office location: New York may be served. SSNY to mail copy LLC. Arts. of Org. filed with Secy. of with Secy. of State of NY (SSNY) on County. SSNY designated as agent of process to I.W.E., LLC, c/o 4EON Notice of Formation of GOTHAM State of NY (SSNY) on 08/07/09. 4/13/10. Office location: NY County. of the LLC upon whom process may Inc., Empire State Bldg., NY, NY ONE, LLC. Arts. of Org. filed with Office location: NY County. Princ. SSNY designated as agent of LLC be served and SSNY shall mail 10018. Purpose: Any lawful act. Secy. of State of NY (SSNY) on office of LLC: c/o Brian Shebairo, upon whom process against it may process to c/o Gerald F. Stack, Esq., 05/03/10. Office location: NY County. 113 St. Marks Pl., NY, NY 10009. be served. SSNY shall mail process Hiscock & Barclay, LLP, One Park NOTICE OF FORMATION of King Princ. office of LLC: c/o Guido SSNY designated as agent of LLC to: c/o The LLC, 1407 Broadway, Place, 300 South State Street, Prester John, LLC. Arts of Org filed Pompilj, Vivaldi Real Estate, Ltd., 236 upon whom process against it may 41st Fl., NY, NY 10018. Purpose: any Syracuse, NY 13202-2078. Purpose: with the Secy of State of New York E. 78th St., NY, NY 10075. SSNY be served. SSNY shall mail process lawful activity. (SSNY) on 1/25/10. Office location: NY designated as agent of LLC upon any business permitted under law. to the LLC at the addr. of its princ. office. Purpose: Any lawful activity. County. SSNY has been designated as whom process against it may be Notice of formation of EAST SIDE an agent upon whom process may be served. SSNY shall mail process to Name of LLC: FK Global Retail LLC. Auth. filed with NY Dept. of State: NOISE & SPIRITS LLC. Arts. of Org. served and shall mail a copy of any Corporation Service Co., 80 State Notice of Qualification of Cameo By filed with the Sect’y of State of NY process to the principal business St., Albany, NY 12207-2543. 3/8/10. Office loc.: NY Co. LLC Rux LLC. Application for Authority formed in DE: 1/21/10. NY Sec. of (SSNY) on 4/5/10. Office location NY address: 107 W. 119 St, Unit A, NY, Purpose: Any lawful activity. filed with Secy. of State of NY (SSNY) County. The street address: 154 Grand NY 10026. Purpose: any lawful act. State designated agent of LLC upon on 04/30/2010. Office location: New whom process against it may be St. NY, NY 10013. SSNY designated NOTICE OF FORMATION OF LIMIT- York County; orig. jurisdiction: served and shall mail process to: c/o as agent upon whom process may be ED LIABILITY COMPANY. NAME: Delaware. SSNY designated as agent Notice of Formation of CITYWIDE Business Filings Inc., 187 Wolf Rd., served and shall mail a copy of any REALM CAPITAL MANAGEMENT of LLC upon whom process against ASSOCIATES LIMITED LIABILITY Ste. 101, Albany, NY 12205, regd. process to PO Box 3716, Mt. Vernon, LLC. Application for Authority was it may be served. SSNY shall mail COMPANY, a domestic LLC. Arts. of agt. upon whom process may be NY 10553. Purpose: any lawful act. filed with the Secretary of State of process to the LLC, 176 Broadway, Org. filed with the SSNY on served. DE addr. of LLC: 1201 New York (SSNY) on 04/08/10. The Mezzanine F, New York, NY 10038. 04/02/2010. Office location: NY Orange St., Ste. 600, Wilmington, DE NOTICE OF FORMATION of SOLA LLC was originally filed with the Purpose: any lawful act or activity. County. SSNY has been designated 19801. Arts. of Org. filed with DE REALTY, LLC. Arts of Org filed with Secretary of State of Delaware on as agent upon whom process against Sec. of State, 401 Federal St., Dover, the Secy of State of New York (SSNY) 04/05/10. Office location: New York 53RD GROUP ASSOCIATES LLC a the LLC may be served. SSNY shall DE 19901. Purpose: any lawful act. on 4/5/10. Office location: NY County. mail a copy of process to: 100 County. SSNY has been designated domestic Limited Liability Company SSNY has been designated as an (LLC) filed with the Sec of State of NY Lafayette St. Ste 301, NY, NY 10013. as agent of the LLC upon whom NAME OF LLC: J E - FACE LLC agent upon whom process may be Purpose: Any Lawful Purpose. process against it may be served. on 2/5/10. NY Office location: New served and shall mail a copy of any ARTICLES OF ORG. FILED DEPT OF York County. SSNY is designated as SSNY shall mail a copy of process to STATE OF NY ON 04/08/10. OFFICE process to the principal business Notice of Qualification of CELLA the LLC, 330 Madison Avenue, 36th agent upon whom process against address: 25 E. 11 St., Apt. 3, NY, NY LOCATION: NY COUNTY. NY SECY. the LLC may be served. SSNY shall BELLA LLC. Authority filed with Secy. Floor, New York, New York 10017. OF STATE DESIGNATED AS AGENT 10003. Purpose: any lawful act. of State of NY (SSNY) on 4/9/10. Purpose: For any lawful purpose. mail a copy of any process against OF LLC UPON WHOM PROCESS the LLC served upon him/her to The Office location: NY County. LLC AGAINST IT MAY BE SERVED. Local Connections Psychotherapy formed in Florida (FL) on 12/10/09. Notice of Qualification of Hylas LLC, 347 5th Ave., Ste. 1600, NY, NY LCSW, PLLC Date of filing of the SECY. OF STATE SHALL MAIL A CC 10016. General Purposes. SSNY designated as agent of LLC Management, LLC, filed under the TO: J. CATTAN, MEMBER AT 37 W. Articles of Organization: April 8, upon whom process against it may original name Hylas Capital 37TH ST., NEW YORK, NY 10018. 2010. County within which the office be served. SSNY shall mail process Management, LLC, Authority filed NOTICE OF FORMATION of is located: New York The Secretary to: The LLC, c/o Frank G. Messina, Sec’y of State (SSNY) 3/22/10. Office Notice of Formation of LN2 CREAM- Blackman’s Block Productions LLC. of State is designated as agent of 40-06 Warren St., Elmhurst, NY 11373. loc.: NY County. LLC org. in DE ERY CAFE, LLC, a domestic Limited Arts of Org filed with the Secy of the limited liability company upon FL address of LLC: 2100 N. Ocean 11/19/09. SSNY desig. as agent of Liabiltiy Company. Arts of Org filed State of New York (SSNY) on whom process against it may be Blvd., Apt. 2602, Ft. Lauderdale, FL LLC upon whom process against it with Secretary of State of NY on 4/12/10. Office location: NY County. served. The street address of the 33305. Arts. of Org. filed with FL may be served. SSNY shall mail copy 4/22/2010. Office location: Nassau SSNY designated as an agent upon office: c/o Paul Scherer & Company, Secy. of State, 2661 Executive of proc. to 623 Fifth Ave., 25th Fl., County. The street address is: 20 whom process may be served and 1440 Broadway, New York, NY Center Circle, Tallahassee, FL 32301. NY, NY 10022. DE office addr.: CSC, Birchwood Park Drive, Syosset, NY shall mail a copy of any process to 10018. Date of dissolution: Purpose: any lawful activity. 2711 Centerville Rd., Wilmington, DE 11791. SSNY has been designated the principal business address: 555 Perpetual Purpose of Business: 19808. Cert. of Form. on file: SSDE, as agent of the LLC upon whom W 151 St., #63, NY, NY 10031. Licensed Clinical Social Work Notice of Qualification of IROQUOIS Townsend Bldg., Dover, DE 19901. process against it may be served. Purpose: any lawful act. OPPORTUNITY MANAGEMENT Purp.: any lawful activities. SSNY shall mail process served to Notice of Qualification of Ivanka L.L.C. Authority filed with Secy. of the LLC at street address. Purpose: Notice of Qualification of ALCLEAR, Trump Marks II LLC. Authority filed State of NY (SSNY) on 03/22/10. Notice of Qualification of River any lawful act of activity. LLC. Authority filed with Secy. of with Secy. of State of NY (SSNY) on Office location: NY County. LLC Partners 2003-13, LLC. Authority filed State of NY (SSNY) on 05/05/10. 11/10/2009. Office location: New formed in Delaware (DE) on 05/09/07. with NY Dept. of State on 3/30/10. NOTICE OF FORMATION OF LIMIT- Office location: NY County. LLC York County. LLC formed in Princ. office of LLC: c/o Iroquois Office location: NY County. Princ. bus. ED LIABILITY COMPANY. NAME: formed in Delaware (DE) on Delaware (DE) on 11/04/2009. SSNY Capital Management, LLC, 641 addr.: 595 Madison Ave., 17th Fl., OM-AH-HUM REALTY LLC. Articles 01/21/10. Princ. office of LLC: 595 designated as agent of LLC upon Lexington Ave., 26th Fl., NY, NY NY, NY 10022. LLC formed in DE on of Organization were filed with the Madison Ave., 39th Fl., NY, NY whom process against it may be 10022. SSNY designated as agent of 12/9/03. NY Sec. of State designated Secretary of State of New York 10022. SSNY designated as agent of served. SSNY shall mail process to: LLC upon whom process against it as agent of LLC upon whom process (SSNY) on 03/31/10. The latest date LLC upon whom process against it c/o National Register Agents, Inc., may be served. SSNY shall mail against it may be served and shall of dissolution is 12/31/2060. Office may be served. SSNY shall mail 875 Avenue of the Americas, Ste. process to the LLC at the addr. of its mail process to: CT Corporation location: New York County. SSNY process to c/o Corporation Service 501, New York, NY 10001. Address princ. office. DE addr. of LLC: System, 111 8th Ave., NY, NY 10011, has been designated as agent of the Co. (CSC), 80 State St., Albany, NY required to be maintained in home Corporation Trust Center, 1209 regd. agent upon whom process may LLC upon whom process against it 12207-2543. DE addr. of LLC: c/o jurisdiction: 160 Greentree Drive, Ste Orange St., Wilmington, DE 19801. be served. DE addr. of LLC: 1209 may be served. SSNY shall mail a CSC, 2711 Centerville Rd., Ste. 400, 101, Dover, DE 19904. Arts. of Org. Arts. of Org. filed with Secy. of State Orange St., Wilmington, DE 19801. copy of process to the LLC, c/o Wilmington, DE 19808. Arts. of Org. filed with Secretary of State of of DE, Div. of Corps., 401 Federal St., Arts. of Org. filed with DE Sec. of Eastport, 34 West 33rd Street, 6th filed with Secy. of State of the State Delaware Jeffrey W. Bukkock, 401 Ste. 4, Dover, DE 19901. Purpose: State, 401 Federal St., Dover, DE Floor, New York, New York 10001. of DE, 401 Federal St., Dover, DE Federal Street, Dover, DE 19901. Any lawful activity. 19901. Purpose: any lawful activity. Purpose: For any lawful purpose. 19901. Purpose: Any lawful activity. Purpose: any lawful activities.

20 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0021-NAT-CCI-CN_-- 5/28/2010 6:10 PM Page 1

on the City collects a 3% commis- sion from sellers and a 3% commis- Apartments hit block with $1 opening bid sion from buyers upon closing. Previously, Bid on the City held bids of a mere buck. and managing partner of Bid on the Sapozhnikov noted. Most recently, an odd reverse auction for Hamptons Starting point grabs Last year, the eBay-like website City. “It brings more traffic to our Bid on the City successfully auc- rentals, in which rents for the prop- people’s attention; for apartment and building sales be- website and results in more bids.” tioned off a one-bedroom at The erties fell over time when no bids gan holding auction events, where Parker Gramercy, located at 10 W. were offered, and the first person to hard part is getting properties were auctioned off at $50,000 increments 15th St., for $650,000, a 12% dis- bid won the right to lease the prop- sellers to sign on starting bids of as little as 35% off while apartments clearly do not count from the original price—and erty.Now,Hamptons rental auctions the original price. To attract more sell for $1—there are bidding incre- exactly $649,999 above the starting will start at $1 and rise from there. buyers, it has decided to put proper- ments of at least $50,000 based on bid. Next month, Bid on the City will BY AMANDA FUNG ties, including posh Hamptons the original sale price and reserve Bidders participate in events live launch its Westchester auction event, homes,on the block for starting bids prices—the one-buck starting point at the company’s 4,000-square-foot in which as many as nine properties apartment auctions haven’t of $1. The move comes after the grabs people’s attention. The hard showroom at 226 Fifth Ave.,at West will be up for grabs.Its next Manhat- quite caught fire in Manhattan as Manhattan-based startup briefly part can be getting the property 27th Street, or online via the firm’s tan auction will be devoted solely to expected, so auctioneers at Bid on tested the idea earlier this year. owner to agree to sign off on the idea. website. Each property attracts studios and is scheduled for July 20. the City are dramatically lowering “We are very excited. Our $1 For $1 auction events, the com- roughly 2,000 daily page views, and The firm plans to begin auctioning the ante. They will now be putting events are so much more successful,” pany attracts four to five times more 30% of those visits are from overseas, off high-end Manhattan rental properties on the block at starting says Vlad Sapozhnikov, co-founder bidders than at regular auctions,Mr. according to Mr. Sapozhnikov. Bid apartments this fall.
Art groups take hits “Top 10 cash management Ernst & Young Cuts, delays loom for service providers” most organizations “ ‘A’ for customer service” BY MIRIAM KREININ SOUCCAR Phoenix-Hecht there are some signs that the city’s nonprofit arts industry is re- covering from the recession, but many groups are still suffering, ac- “National winner-Financial Stability” cording to an annual survey. Out of 114 cultural institutions Greenwich Associates polled in January by the Alliance for the Arts, 42% anticipate canceling or postponing programs this year. That is the exact same figure as in 2009. And nearly 30% of those in- stitutions are delaying moves or cap- ital projects this year,compared with 25% last year. The results were re- leased last week. On a more positive note, the sec- tor is anticipating fewer layoffs— only 18% of the organizations plan to shed employees this year, com- pared with 38% last year. And fewer groups said they would defer new or replacement hires in 2010. Yet the fiscal crisis is still taking a toll. More than 60% of groups said they are reducing their budgets this year by an average of 14%.Last year, 70% of the groups cut their budgets by an average of 17%. “The lasting effects of the reces- sion are not good news, since they mean fewer jobs in the arts industry and fewer public programs,” says Randall Bourscheidt, president of Award-winning business banking starts with a simple premise. Understand our clients’ business goals and focus everything on the Alliance, a research and advoca- achieving them. Year after year, our people, our products and our treasury management services rank among the best in the cy organization for nonprofit cul- industry. And our relationship managers put them all to work for you. After all, your success is our greatest reward. ture in New York City. “However, the new survey indicates moderate To experience award-winning banking, talk with Union Bank® today. improvements.” Commercial Banking: Commercial Treasury Corporate & Institutional Specialized Interestingly, the recession af- Services: Treasury Services: Financial Services: fected different artistic disciplines Robert Garrett Les J. Goodwin Tim Farrell Grant Ahearn in varied ways,the survey found.Vi- Senior Vice President Senior Vice President Vice President Senior Executive Vice President sual-arts organizations, for exam- 415-705-7160 213-236-5159 917-639-4437 213-236-7514 ple, are making fewer reductions than performing-arts organiza- tions. No visual-arts groups are planning to lay off employees, and ©2010 Union Bank, N.A. only one-half said they will cut their Union Bank is a proud member of the Mitsubishi UFJ Financial Group (MUFG), budgets. one of the world’s largest financial organizations. unionbank.com The hardest-hit part of the cul- Source: Greenwich Associates’ 2009 Excellence Awards in Middle Market Banking Source: Ernst & Young 26th Annual Cash Management Survey, based on fee-equivalent revenue. tural sector was zoos and botanical Source: Phoenix-Hecht 2010 Treasury Management MonitorTM gardens. All of them were forced to cut their budgets this year, and 67% were canceling or postponing pro- grams.

May 31, 2010 | Crain’s New York Business | 21 20100531-NEWS--0022-NAT-CCI-CN_-- 5/28/2010 2:09 PM Page 1

FOR THE RECORD

listed in order of square footage. transaction value.The information was May 11, in a transaction worth obtained from Thomson Reuters. $2,556,800. Between May 12 and May ABOUT THIS SECTION G 32BJ SEIU signed a 20-year, 245,000- 14, he sold 10,761 shares at prices 620 Sixth Ave. G International Business Machines Corp. FOR THE RECORD is a weekly listing of information from the public record that square-foot lease at The ranging from $82.81 to $83.25, in a building workers’ union will occupy two (IBM) transaction worth $895,465. He now can help businesspeople in the New York area find opportunities, potential and one-quarter floors at the seven-story Steven A. Mills, senior vice president of directly holds 103,373 shares. new clients and updates on competitors. building owned by CF 620 Owner One. the software group, sold 138,819 shares To ask questions or get more information on this section, contact Denise Mark Weiss of Newmark Knight Frank of common stock at $130.85 on May 13, G Henry Schein Inc. (HSIC) Southwood at [email protected]. represented the tenant in the in a transaction worth $18,164,466. He Stanley M. Bergman, chairman and transaction, while Mitchell Konsker and now directly holds 109,863 shares. chief executive, sold 100,000 shares of Matthew Astrachan of Cushman & common stock at $59.46 on May 12, in a Wakefield represented the landlord. The Jon C. Iwata, senior vice president of transaction worth $5,946,000. He now asking rent was not disclosed. marketing and communications, sold indirectly holds 1,029,680 shares. BANKRUPTCIES GOODS AND SERVICES 57,888 shares of common stock at prices G Department of Transportation G The Bowery Residents’ Committee ranging from $132.45 to $132.65 on G SL Green Realty Corp. (SLG) The following listings are selected from the Requests information by 4 p.m. on June signed a 33-year lease for 104,500 May 13, in a transaction worth Gregory F.Hughes, chief financial officer most recent available filings by companies 11 for durable and cost-effective red bus square feet of space at 127 W. 25th St. $7,671,700. He now directly holds and chief operating officer, exercised seeking bankruptcy protection in the lane treatments for different roadway The social-services provider will occupy 36,502 shares. options on 20,000 shares of common stock Southern and Eastern Districts of New types. For more information, contact the entire 12-story, Foremost at $43.25 on May 12, in a transaction York. Information was obtained from U.S. William Carry at (212) 839-6657. Properties-owned building. David John E. Kelly, senior vice president of worth $865,000. Between May 12 and Bankruptcy Court records available on Lebenstein, Robair Reichenstein, Debra research and intellectual property, sold May 13, he sold 45,000 shares at prices Public Access to Court Electronic Records. G Economic Development Corp. Wollens, Len Eagle and Erik Sznip of 48,063 shares of common stock at prices ranging from $66.00 to $67.98, in a Listings are in alphabetical order. Requests proposals by 4 p.m. on July 30 Cassidy Turley represented the tenant in ranging from $129.49 to $130.41 on transaction worth $3,000,000. He now for the purchase and redevelopment of a the transaction, while Martin Meyer and May 14, in a transaction worth directly holds 18,443 shares. G 100 West Park 10,000-square-foot site at 260 W. 125th Eric Meyer of Colliers International $6,242,999. He now directly holds 100 W. Park Ave., Long Beach, L.I. St. in Manhattan. An approximately represented the landlord. The asking 38,737 shares. G Becton Dickinson and Co. (BDX) Filed for Chapter 11 bankruptcy 17,400-square-foot building currently rent was not disclosed. Henry P.Becton, lead director, sold protection on May 21. The filing cites located on the site will require G Estée Lauder Cos. (EL) 38,554 shares of common stock at estimated liabilities of $1,000,001 to demolition prior to redevelopment. An G The Farber Center for Radiation GRAT Remainder Trust exercised $73.16 on May 14, in a transaction $10 million and estimated assets of optional information session will be held Oncology signed a 20-year, 21,965- options on 60,000 shares of common worth $2,820,611. He now indirectly $1,000,001 to $10 million. Among the at 11 a.m. on June 15 on the fourth floor square-foot lease at 100 Church St., a 21- stock at $43.69 between May 7 and May holds 1,253,870 shares. creditors with the largest unsecured of 110 William St. Contact Maryann story, 1.1 million-square-foot building 14, in a transaction worth $2,621,250. claims are Leo and Bonnie Zucker, Catalano at (212) 312-3969 or owned by SL Green Realty Corp. The During the same period, it sold 223,333 G NorthStar Realty Finance Corp. (NRF) owed $225,000. [email protected] for questions center will occupy the ground and shares at prices ranging from $58.57 to Daniel R. Gilbert, chief investment regarding this bid. mezzanine floors and part of the $64.28, in a transaction worth officer and executive vice president, sold G 242 KLC Inc., dba Kings Launderette Inc. basement. Matthew Siegel and Joanne $13,895,013. It now indirectly holds 700,000 shares of common stock at 242 E. 46th St., Brooklyn G Health and Hospitals Corp. Podell of Cushman & Wakefield 2,161,690 shares. $3.63 on May 12, in a transaction worth Filed for Chapter 11 bankruptcy Seeks competitive sealed bids by 2 p.m. represented the tenant, while Ariel $2,541,000. He now directly holds protection on May 19. The filing cites on June 11 to furnish, install and Schuster, Michael Worthman and Ross Leonard A. Lauder, officer, director and 62,343 shares. estimated liabilities of $500,001 to $1 connect devices to an existing fire-alarm Berkowitz of Robert K. Futterman & beneficial owner, sold 140,000 shares of million and estimated assets of $100,001 system. Prebid site surveys will take Associates represented the landlord. The common stock at prices ranging from Andrew C. Richardson, chief financial to $500,000. Among the creditors with place at 10 a.m. on June 2 and 10 a.m. on average asking rent for the building is $61.12 to $64.27 between May 11 and officer, executive vice president and the largest unsecured claims is Bayview June 3 at 79-01 Broadway, room BB-11. $37 per square foot. May 14, in a transaction worth treasurer, sold 600,000 shares of Loan Servicing, owed $425,350. For questions regarding this bid, contact $8,827,775. He now indirectly holds common stock at $3.63 on May 12, in a Aurelio Morrone at (718) 883-6000 or G Telstra Corp. signed a 10-year renewal 3,340,670 shares. transaction worth $2,178,000. He now G Sweet N Sour 7th Ave Corp. [email protected]. and expansion for 14,497 square feet of directly holds 58,572 shares. 158 E. 45th St. space at 40 Wall St., a 72-story, 1.2 G Colgate-Palmolive Co. (CL) Filed for Chapter 11 bankruptcy G Housing Authority million-square-foot office tower owned Ian M. Cook, chairman, president and G Lincoln Educational Services Corp. protection on May 24. The filing cites Seeks competitive sealed bids by 1 p.m. on by the Trump Organization. The chief executive, exercised options on (LINC) estimated liabilities of $50,001 to June 15 for child- and adult-care food Australian telecommunications 176,934 shares of common stock at prices David F. Carney, executive chairman, $100,000 and estimated assets of programs in various community centers. company will occupy the 43rd and 44th ranging from $48.06 to $58.70 on May exercised options on 7,500 shares of $50,001 to $100,000. Among the Contact Sabrina Steverson at floors. Robert Tanzmann of Cushman & 11, in a transaction worth $9,387,558. common stock at $3.10 on May 17, in a creditors with the largest unsecured (212) 306-6771 or Wakefield represented the tenant, while transaction worth $23,250. Between claims are Fox 716 Realty, owed [email protected] for more Jeff Lichtenberg and Donald Trump Jr. Fabian T.Garcia, chief operating officer May 13 and May 17, he sold 80,300 $51,251.02; and Signature Bank, owed information regarding this solicitation. represented the landlord in-house along of Europe, global marketing, customer shares at prices ranging from $24.70 to $49,357.38. with CB Richard Ellis. The asking rent development, supply chain and $24.98, in a transaction worth G Human Resources Administration was not disclosed. technology, exercised options on 47,000 $2,000,994. He now directly holds Requests competitive sealed proposals shares of common stock at $54.40 on 164,649 shares.
GOVERNMENT CONTRACT by 2 p.m. on July 22 to provide home- G Overseas Garment Production signed OPPORTUNITIES attendant services for Medicaid-eligible an expansion for a total of 14,400 square individuals. A preproposal conference feet of space at 499 Seventh Ave., a 25- Following are selected contract will be held at 2 p.m. on June 9 at 180 story, 180,000-square-foot building DEALS ROUNDUP opportunities recently announced by New Water St. in the 12th-floor conference owned by Block Buildings. Michael York City agencies.To learn how to sell room. For more information, contact Dubin and Carol Sacks of Savitt TRANSACTION SIZE goods and services to city government, visit Marion Harnik at (212) 835-7987 or Partners represented both the tenant COMPANY (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE www.nyc.gov/selltonyc. For a searchable [email protected]. and the landlord in the transaction. The database of current procurement notices, asking rent was $35 per square foot. Michael Foods Inc. $2,231.5 Goldman Sachs Group merchant FB M&A visit www.nyc.gov/cityrecord. Listings are G New York Police Department banking division (80%) (Manhattan) alphabetical by category and department. Requests proposals by 11 a.m. on July 9 G Brokerage & Management Corp. GLG Partners Inc. $2,084.9 Man Group SB M&A to provide all labor, material and signed a 9,263-square-foot lease at 40 (Manhattan) CONSTRUCTION SERVICES facilities for the creation of a Police Wall St., a 72-story, 1.2 million-square- Pattern Energy Group $800.0 Riverstone Holdings (Manhattan), GCI G Department of Citywide Administrative Management Institute. An optional foot office tower owned by the Trump management of Pattern Energy Group Services preproposal conference is scheduled to Organization. The shipping company TermoEmcali I $188.3 Ashmore Group, SB M&A Requests competitive sealed bids by 11 be held at 11 p.m. on June 15 at 1 Police will occupy the 48th floor. John Johnson SCA ESP (92.21%) ContourGlobal (Manhattan) a.m. on June 16 to furnish, install and Plaza, 14th-floor conference room. For and Nicholas Farmakis of Studley BrightSource Energy Inc. $150.0 Draper Fisher Jurvetson, GCI remove bird netting in public buildings additional information, contact Howard represented the tenant, while Jeff VantagePoint Venture Partners, throughout the five boroughs. For Babich at (646) 610-5214 or Lichtenberg and Donald Trump Jr. Alstom SA, California State further information, contact Sal [email protected]. represented the landlord in-house along Teachers’ Retirement System, Morgan Stanley Private Equity (Manhattan) Rainone at (212) 669-8265 or with CB Richard Ellis. The asking rent [email protected]. G Taxi & Limousine Commission was not disclosed. NeuroTherapeutics $43.0 MPM Capital, SR One, GCI Requests information by 5 p.m. on July 9 Pharma Inc Novo A/S, Thomas McNerney & Partners, G Department of Parks & Recreation G Fidelity Biosciences, Pfizer Venture regarding in-vehicle camera-system Salty Inc. signed a lease for 8,000 Investments (Manhattan) Seeks competitive sealed bids by 10:30 improvements. Questions about this bid square feet at 499 Seventh Ave. David a.m. on June 24 for the construction of should be directed to Sherryl Eluto at Levy of Adams & Co. Real Estate Inc. CBio Ltd. $10.9 SpringTree Global Investors GCI (Manhattan) recreation lighting at the ball fields in (212) 227-2670 or [email protected]. negotiated the lease on behalf of the Brownsville Recreation Center in tenant, and Savitt Partners represented Blip Networks Inc. $10.1 Canaan Partners, GCI (Manhattan) Bain Capital Ventures Brooklyn. For additional information, the building’s owner, Block Buildings. contact Juan Alban at (718) 760-6771 or REAL ESTATE DEALS The asking rent was $35 per square foot. Market Guidance $8.4 RTN Stealth Software Inc. SB M&A [email protected]. Systems Inc. (Manhattan) Companies that would like to have details Babble Media Inc. $3.0 Village Ventures, iNovia GCI G School Construction Authority of their recent transactions appear in these STOCK TRANSACTIONS (Manhattan) Capital, Greycroft (Manhattan) Seeks competitive sealed bids by 11 a.m. listings should e-mail descriptions Selected deals announced for the week ended May 22 involving companies in metro New York. on June 9 for a science-lab upgrade at following this format to Following are recent insider transactions at FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing I.S. 592 in Brooklyn. For questions [email protected], with “Real New York’s largest publicly held companies shares of a company with the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. SB M&A: Strategic buyer regarding this solicitation, contact estate transaction” in the subject line, or filed with the Securities and Exchange M&A represents a minority or majority acquisition of existing shares of a company without the Kevantae Idlett at (718) 472-8360 or enter them online at Commission by executives and major participation of a financial buyer. source: capitaliq [email protected]. crainsnewyork.com/submitadeal. Deals are shareholders. Listings are in order of

22 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0023-NAT-CCI-CN_-- 5/28/2010 8:28 PM Page 1

election can do,” says Mike Elmen- dorf,who was an aide to Gov.George Business Cuomo Pataki for 11 years and is now New SL Green buying big York State director of the National Continued from Page 1 three years as attorney general, Mr. Federation of Independent Busi- Continued from Page 1 Energy Center as “too dangerous” Cuomo has focused on policing bad nesses. towers, has taken over a third and calls for alternative electricity corporate behavior and has tended to Mr.Cuomo has been unequivocal through foreclosure and is battling sources, which would hike energy act more as a regulator—establishing about wanting to make state govern- to take control of a fourth. Mean- bills. He calls for more study before models for business practices—than ment physically smaller and insistent while, SL Green sold stakes in two natural-gas drilling in the Marcellus as a gun-slinging prosecutor. For that future budget deficits be closed buildings to add to its already con- Shale may commence. And his plan months, he has been speaking at pri- by reducing spending, rather than siderable war chest. is silent on collective-bargaining re- vate fundraisers about the need to raising taxes or borrowing.“The pro- The flurry of activity stems from form and on project-labor agree- streamline state government and posals for elimination of agencies and SL Green’s conviction that the ments,which some regard a growing stop raising taxes. Last week, on the authorities, and for consolidation, worst of the real estate recession is threat because they mandate high day he became the Democratic nom- will help with the cost structure and over, and that within the next three wages for publicly funded projects. inee for governor,he said,“You’re go- make it easier to do business in the years, net effective rents—which “He’s making a very big effort to ing to have to cut where the money is. state,” says Ms. Wylde. factor in landlord concessions such present himself as a fiscal conserva- The money is in education. The Mr. Elmendorf says, “It’s a very as building allowances—will vault tive, and he even committed himself money is in health care.” centrist agenda—a common-sense 25%. SL Green executives say they to a property-tax cap that is broader agenda. None of this is rocket sci- came to that bold view by monitor- and tighter than any proposal out Any doubts? ence.” ing transactions at their 30 Manhat- there,” says E.J. McMahon, director asked if he has any reason to doubt Mr. McMahon is not convinced, tan buildings and talking with their of the Empire Center for New York that Mr. Cuomo is committed to his though, that the smaller government roughly 1,000 commercial tenants. State Policy. But he adds that the printed agenda, Mr. Adams says, work force favored by Mr. Cuomo “Barring any major shock to the

Cuomo platform presents “a view of simply, “No.” Ms. Wylde, whose will be any less overbearing.“If you’re system, we believe the decline in net buck ennis the private sector as something that group represents many of New York doing business in the state, I think effective rents is over,” says Andrew CONFIDENT: SL Green’s Andrew Mathias the state needs to manage.” City’s largest corporations, says she there’s cause for concern,” he says. Mathias, president of the company. insists his timing and pricing are on the money. Overregulation is a constant sent the Cuomo campaign a laundry “He’s probably going to favor more He notes that tenants are already complaint of New York businesses, list of questions about the platform, rather than less regulation.” competing for some more desirable and Mr. Cuomo has said little about “but it was more for clarification than Critics and fans alike, though, say spaces. Seizing its opportunity, SL million, or $507 a square foot. reducing it. His bemoaning of the concern.” the Cuomo plan—regardless of its Green recently bumped up asking Now, SL Green is maneuvering “glass ceiling” for female employees Mr. Cuomo’s proposals are not prospects in an infamously intransi- rents by about 7% in some of its to take over a fourth tower, at 510 could be interpreted as an endorse- new. They have been advanced by gent legislature—is a vehicle that will prime spaces. Madison Ave., from struggling de- ment of government oversight of business and conservative groups for drive a street-level discussion of pro- Even among famously opti- veloper Macklowe Properties. Over wages to prevent gender discrimina- years,and they are similar to what the business reforms. “It moves them mistic real estate executives, SL the past year, SL Green purchased tion. Republican candidates for governor into the public realm and gives them Green’s predictions and acquisition two loans on the property and is at- “Does anything about Andrew favor. What’s significant is their em- common currency,” says Mr. Adams. spree are raising eyebrows. Many in tempting to foreclose. Cuomo make you think that he’s a brace by a candidate who might be “In New York, for too long, certain the industry are still betting that limited-government kind of guy? able to implement them: a politically special interests in Albany have building prices will fall further as Surprise, surprise No,” says Mr. McMahon. But he ad- savvy Democrat with popular sup- framed the debate and labeled these lenders foreclose on scores of delin- all these feats—especially the mits that making predictions is diffi- port and a Legislature controlled by proposals as toxic when they’re really quent borrowers and write down the shelling out of rich amounts for cult because “Andrew’s history on his own party. quite common medicine. They’re value of their holdings. Meanwhile, buildings—amid a still tentative re- these issues is almost nil.” “There is a lot that a governor hardly radical. They’re practical and brokerage Colliers International covery have surprised industry ob- There have been some clues. In with a mandate who’s just won an are driven by economic reality.”
doesn’t expect the number of office servers. For example, SL Green workers to return to prerecession bought 600 Lexington at a modest levels until at least 2015. Conse- 18% discount to the average price of The mayor, however, may not. quently, the firm projects rent $772 a square foot at the peak of the Union prevails in park He announced a plan to temporari- growth of 13% to 15% over the next market in 2008, according to Cush- ly turn Tavern on the Green into a three years. man & Wakefield Inc. statistics. snack bar and visitor center—Cen- “The major challenge SL Green Mr. Mathias insists his timing Continued from Page 1 to shock many, not least among tral Park already has four of the lat- faces is the frailty of the U.S. and and pricing are on the money. He agreement with us that said, ‘If you them Mr. Poll himself. He spent “a ter—and even to consider eliminat- global economy,” says Robert notes that even though various firms get selected, this is the contract that fortune,” he says, to land the iconic ing a restaurant option permanently. Freedman, chairman of Colliers’ have raised vast sums to snap up bar- will apply,’ ” says Mr. Ward. restaurant,which is nearly next door This was a jab at the union, say peo- tristate region. gains, buildings are drawing fewer He says he received no response, to his Loeb Boathouse. He hired a ple close to the Tavern negotiations. “Just think of what it does to con- bidders than they did during the which only created more tension be- coterie of lawyers, architects and “It was a message to point out fidence when the Dow drops 1,000 boom in 2007 and 2008. He also tween the two men. publicists, even buying up Tavern that the city has options and lever- points in a day,”he adds,referring to points out that SL Green’s cash That rancor became obvious just memorabilia at a public auction in age,” says one person familiar with May’s flash crash. hoard and access to capital gives it a hours after the Parks Department January to use in the restaurant the situation. Despite signs of an uptick, prob- big advantage. announced on Aug. 28 that Mr. Poll when he reopened it. If a new operator is selected to lems linger. The availability rate— “The prices we paid are at a had won the lease to operate Tavern. “Of course, I’m disappointed,” run the iconic Tavern, he or she is the portion of the office stock that healthy discount to the boom mar- The union issued a statement de- says Mr.Poll.“I know we could have sure to benefit from Mr. Poll’s expe- can be leased in the next year—rose ket,” says Mr. Mathias. He notes scribing Mr. Poll as a “threat” to the done a great job there, but the union rience. The city’s new request for to 13.6% in the first quarter, from that each of the two buildings SL success of the restaurant,who would proposals may take into account the 12% a year earlier, while average Green bought recently offers a 6% jeopardize its members’ jobs. idea that the capital improvements asking rents dropped 22%,to $51.14 return.In contrast,during the go-go In hindsight, there were many ‘My members originally required are too onerous, a square foot, Colliers says. years, buildings’ returns were as lit- warning signs that Mr.Ward and Mr. and it might make some of those SL Green has seen that in its own tle as 3% and 4%. Poll would hit an impenetrable wall. support building upgrades itself. buildings. Mr. Mathias notes that Complicating matters is that An imposing presence, at over 6 At the same time, the union, net effective rents fell roughly 35% each of the new holdings has about feet tall, Mr. Poll has the bravado of everything which does not want to take the from summer 2008 to summer 40% of its leases due to expire in the someone who has been very success- blame for depriving New York of a 2009. Currently, the company’s av- next five years, so if rents don’t rise ful in business. The lifelong entre- I’ve done’ historic and beloved restaurant, erage rent is $53 a square foot. as much as the company expects, its preneur, who has owned restaurants might make greater concessions on cash flow will suffer. for decades, had a run-in during the the next round. $3 billion and counting In addition Mr. Mathias is bet- late 1980s with another union at an “I don’t want to be an obstacle in yet amid the gloom, SL Green ting that SL Green can transform eatery he owned with his family on the success of Tavern on the Green,” has been busy raising money to ex- 600 Lexington into an address fa- Long Island. seemed to think I wasn’t good says Mr. Ward. He is quick to point pand its empire.Through stock sales vored by high-rolling financial ten- Mr. Ward is a formidable union enough.” out that some prominent business- and other means,it has raised $3 bil- ants like those who populate the boss, who refers to the mayor as For Mr.Ward,the standoff came people—including Donald Trump, lion in the past 18 months and is tony neighboring Plaza district. “Mike” and “follows his contracts to down to a question of dignity—his as well as John Higgins of Cipriani now putting that money to work. That may be tough because Lexing- a T,”says Michael Desiderio,former own and that of his members. U.S.—have recently expressed inter- In January, after buying up debt ton Avenue is not as exclusive as chief operating officer of Tavern on “No self-respecting union would est in submitting proposals to the city. on the property, SL Green scooped Park Avenue. the Green. agree to the draconian measures [Mr. “Everyone has been driving a up 100 Church St. through a fore- “They are really going to have to The mayor had given Messrs. Poll] suggested,” says Mr. Ward. hard bargain,” says restaurant con- closure on The Sapir Organization, work some marketing magic on that Ward and Poll a deadline of May 20 He drew the line, he says, at Mr. sultant Clark Wolf.“If the city is go- which had failed to repay its loans. one,”says Michael Knott,an analyst to reach an agreement. When they Poll’s demands that they sign a 10- ing to require Tavern to be a union Less than three months later, SL at Green Street Advisors. couldn’t deliver, he announced that year contract with a no-strike clause restaurant, then the city can’t expect Green reached a deal to buy 600 Lex- SL Green will also need some the city would solicit new proposals and that they switch arbitrators. a full-value rent deal, because it ington Ave.for $183 million,or $636 real estate fairy dust to drive tenants for Tavern. “My members support every- doesn’t add up.It may not be worth- a square foot. And in early May, it to 100 Church St. The property is It was an outcome that still seems thing we’ve done,”insists Mr.Ward. while for a restaurateur.”
agreed to buy 125 Park Ave.for $333 roughly 50% vacant.

May 31, 2010 | Crain’s New York Business | 23 20100531-NEWS--0024-NAT-CCI-CN_-- 5/28/2010 8:29 PM Page 1

Croatians will happily cheer for at least 175,000 city residents born Slovenia because, as Ms. Rudanovic south of the border. More than Soccer fans catch fever in NYC notes, “We used to be in the same 52,000 live in Brooklyn, making the country.” Once Slovenia is tourna- borough prime Copa Mundial ter- Continued from Page 2 The early rounds might be best hemian Hall & Beer Garden on ment history, the crowd’s loyalties ritory. from 6 a.m. to 6 p.m. with about 12 spent watching some of the long- 24th Avenue in Astoria will show will shift to Italy or Brazil.The only Tulcingo Deli on Fifth Avenue large-screen TVs tuned in to the shot teams with their ever-hopeful every minute. Of the 7,000 native- team to find no supporters here is in Sunset Park is one of hundreds of tournament. Between locals fans. born Czechs and Slovaks who live in Serbia, she says—the rivalry is too local spots to watch the matches.It’s screaming in Italian and the devot- Honduras has qualified for the New York, nearly a third live in intense. got a giant flat-screen,and serves up ed Mexican, Ecuadoran and Alban- World Cup only once,back in 1982, Queens. There’s one Ivorian restaurant in some of the best-reviewed Mexican ian fans who’ve settled the area, the so for the more than 32,000 Hon- New York, making New Ivoire on food in Brooklyn. place should be packed all month. duran-born New Yorkers, 40% of No Balkanization East 119th Street the go-to place for “New York is a soccer-loving Brazil always draws a crowd and whom live in the Bronx, this year’s four years ago, Croatia made a Ivory Coast fans. Open 24 hours, city,” says Sean Dennison, commu- rarely disappoints—it’s won five tournament is a big deal.They’ll de- splash.This year,it’s Slovenia’s turn, the restaurant shows Africa Cup nications director for Major League World Cups, more than any other scend on La Orquidea Restaurant and Queens is home to about a third and European League games.Man- Soccer, the U.S. professional league. country. To celebrate with Brazil- on East 149th Street and other of the 19,000 Balkan-born New ager Cheick Mohammed Cisse ex- “In the past four years I’ve noticed a ians, visit Favela, on 28th Avenue in nearby spots in Mott Haven. Yorkers. Restaurant Old Bridge, a pects standing room only at the huge increase in support from bars Astoria. About half of New York’s This year marks Slovakia’s first Bosnian pub on 42nd Street in As- Harlem eatery. and restaurants. Whether it’s an 14,600 native-born Brazilians live World Cup appearance as an inde- toria, will be crazy, says manager New York’s largest foreign-born MLS game or a World Cup final, in Queens. pendent country, so the giant Bo- Tanja Rudanovic. Bosnians and population hails from Mexico, with soccer is always being consumed.”
DIY books for sale

Continued from Page 3 of a mainstream house. Making self-publishing look more professional may become eas- ier, though, as companies draw on a pool of New York publishing execu- tives who have lost their jobs in re- cent years. “This is the best time in recent memory to be hiring great editors,” says David Lamb, a former invest- ment banker who in December bought Van- tage Press Inc., the Manhat- tan-based granddaddy of the indus- try. He plans to turn the 61-year-old company into a pre- mium player at the high end of the market, publishing a relatively small number of authors and offering “concierge service” provided by top talent, Mr. Lamb says. Much like a trade house, the press will also put out seasonal lists of 10 to 12 selected titles under the Vantage Point imprint, which will launch next spring. Mainstream deal still appeals GROW YOUR BUSINESS IN THE WORLD’S self-publishers still have a ways to go before they completely blur the lines and trade publishers lose FASTEST-GROWING MARKETS. their cachet. Mr. Carnoy considers his self-publishing venture a suc- cess, and not because he sold about 2,500 Kindle and paperback copies THE #1 U.S. AIRLINE TO ASIA in four months, making back his costs. A year ago, a NY1 News inter- Go where the opportunities are. With the most destinations across the Pacific of any U.S. airline, view with his agent about the self- Delta makes it easy to build your business in 15 Asian markets. publishing phenomenon led to calls from editors.Three weeks later,The Overlook Press acquired the novel. Explore the possibilities with New York’s most global airline at delta.com The independent publisher will re- lease the book in hardcover in July. “My goal was to get a mainstream publisher,” Mr. Carnoy says, “for better or worse.”

24 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0025-NAT-CCI-CN_-- 5/28/2010 12:04 PM Page 1

7 The number of jobs the average 26-year- old has held BUSINESS LIVES Source: Mr. Youth/Intrepid global study Millenial Inc. HOT JOBS GOTHAM GIGS EXECUTIVE INBOX Anne Fisher EXECUTIVE DIRECTOR Suits Him Just Fine ORGANIZATION Neighborhood Coalition for Shelter A business JOB DESCRIPTION Setting strate- contest for gic goals, setting policy, expanding human and financial resources women only MOST IMPORTANT TASKS WHY DO MOST women-owned Fundraising, developing annual businesses stay so small? Con- budget, serving as spokesperson sider: About 8 million businesses CREDENTIALS NEEDED Manage- in the U.S. are owned by women, ment experience, nonprofit commu- according to the Center for nity relations/advocacy background Women’s Business Research RECRUITER DRG (www.nfwbo.org). Although women-owned enterprises make SALARY Current executive director up 40% of all privately held firms, earned $144,646 in 2008 only one in five rakes in revenues DOWNSIDE Adjusting to decreased of $1 million or more. government funding, communicating “Women are starting busi- with board on operational challenges nesses at twice the rate of men,” UPSIDE Creating a vision for the notes Maria Pinelli, director of future, meeting community needs North American strategic growth markets for global accounting and NCS provides housing and support consulting giant Ernst & Young to reduce and prevent homeless- (www.ey.com). “But they begin ness. It offers counseling, treat- with much less capital, and ment, training, job placement and they don’t grow nearly as large.” financial education. Yet relatively few women have —SELENA SHEN entered Ernst & Young’s huge Entrepreneur of the Year contest. So Ernst & Young cooked up a separate competition. Called EXECUTIVE MOVES Entrepreneurial Winning Women, it’s open only to female owners W. P. Carey & Co.: H. of businesses with $1 million or Cabot Lodge III, 53, was appointed more in annual sales. This year, president of the the deadline for entry is June 30, investment and Ernst & Young is hoping management many women will apply. company. He was TALE OF THE TAPE: Shabnam Rezaei, for one, is formerly the Mohan Ramchandani glad she did. In 2005, Ms. Rezaei managing partner at CL Properties. takes 32 measurements Cushman & Wakefield: A. Mitti for each custom-made and her partner Aly Jetha started Liebersohn, 51, was promoted to vice suit. a company they eventually chairman at the commercial real estate dubbed Big Bad Boo services firm. He previously served as (www.bigbadboo.ca). They raised executive vice president. $4 million from private investors BuyWithMe: David Wolfe, 43, joined the to produce an animated TV series shopping-deals website as chief product when mohan ramchandani came to New York from his native called Mixed Nutz (www.mixed officer. He was previously chief product Mohan’s officer and chief operating officer at India in 1972, he had only $200 and a suitcase full of men’s suit nutzshow.com/MixedNutz), InteractiveOne. samples.The son of a clothier, he spent half of his money on a which she describes as MorrisAnderson: Custom Kelly newspaper ad to open his own custom-tailoring business, and buyers “international Peanuts.” Beaudin Stapleton, 42, Tailors Winning the contest gave Ms. was named managing slowly started coming. ¶ Last month, the 62-year-old, who owns Rezaei access to a top-level exec- director at the financial utive retreat and other networking advisory firm. She was just sold Mohan’s Custom Tailors, sold his 150,000th suit out of his Grand previously a senior Central-area showroom. He counts A-listers such as Rudy Giuliani, opportunities. After she won, managing director at suit No. Jared Kushner and Ed Koch among his customers. Walt Frazier, the Winning Women became a Mixed Traxi. Nutz sponsor. “The people in the Jones Lang LaSalle: Matt Duthie, 53, 150,000 former New York Knicks Hall of Famer and sports broadcaster, buys Winning Women network are joined the real estate services firm as a between 10 and 30 suits a year from Mr. Ramchandani, who offers incredible,” she says. managing director. He was previously an Her advice to women who are executive vice president at Ruben Cos. nearly 16,000 types of fabric and takes 32 measurements just for one Arnold Worldwide: Eric Robertson, 33, suit. ¶ “In some places, people are heavier than in others,” he says. considering applying this year: “Prepare carefully, because it joined the communications agency as “Everything has to be exactly right.” ¶ This month, in a sign that the senior vice president and global is rigorous.” corporate communications director. He American dream is still possible, Mr. Ramchandani opened his For information, go to was most recently at R/GA, where he second store—in Hackensack, N.J., to be run by his son. ¶ On the www.ey.com/us/winningwomen. was senior manager of corporate communications. weekends, he volunteers at his Hindu temple in Forest Hills, HAVE YOU EVER entered your company MetLife Inc.: Nicholas D. Latrenta, 58, Queens, where he lives with his family. in a business competition? Tell us at See EXECUTIVE MOVES on Page 26 —miriam kreinin souccar www.crainsnewyork.com/execinbox. buck ennis

May 31, 2010 | Crain’s New York Business | 25 20100531-NEWS--0026-NAT-CCI-CN_-- 5/28/2010 2:09 PM Page 1

RÉSUMÉ REVIEW Tisch Super Bowled over Is your job search all it could be? We ask the experts. Will getting the game help with naming have the world’s focus on our new NAME RICHARD A. BRAND Loews Hotels chair rights for the stadium? facility is very positive. SUMMARY excited about Big Certainly it’s our hope that any company that was thinking about What inspired you to write your latest Sales manager with experience developing Game, new book being our partner would look at this book? marketing plans in finance as an added benefit. Mayor Mike Bloomberg,who start- PROFESSIONAL EXPERIENCE ed NYC Service, and President
Yorkville Advisors, 2007-2009 BY LISA FICKENSCHER Will you extend the two-week Obama [were my inspirations]. My promotional lead-in? sister and I were two of the early Head of energy sector, managing director onathan tisch has a lot to We hope to make it longer, maybe funders of NYC Service. Managed the energy sector (one-third of the total portfolio); tracked 300 celebrate these days. The six months. We want to be involved public oil companies, private oils, other energy and renewable energy
chairman and chief executive in the Macy’s Thanksgiving Day What will readers learn about? Prospect Energy, 2004-2007 of Loews Hotels just published Parade. And we can start with The book gives a road map to what Head of alternative energy and origination, managing director Jhis third book, Citizen You: events in schools and in it means to be an active citizen.Take Performed CFO capital markets functions in cultivating business Doing Your Part to Change the Times Square. Scott Harrison, a nightclub pro- relationships with banks and investors to obtain credit lines World, and last week his efforts to We will keep moter [profiled in the book]. A
Caisse des Dépôts, 2002-2004 bring the 2014 Super Bowl to New this in the good night for him was getting Private capital markets group head, managing director Meadow- spotlight as 350 bottles of vodka sold. He Earned repeated investment demand from mutual funds, hedge funds and lands Stadi- long as pos- needed a change in his life. After pension plans; produced profit from first year financing energy companies um paid off. sible. traveling the world, he discov- EDUCATION Mr. Tisch, ered a real need for clean water
MOVERS & treasurer of What is the in the developing world and University of Chicago, M.B.A., finance, 1980 SHAKERS the New York biggest has been very successful in rais-
University of Iowa, B.A., economics and English, 1976 Giants, was benefit to the ing $20 million in donations to Résumé appears in condensed form. Jonathan just back from teams? help. EXPERT ADVICE the National For both or- Richard’s résumé points out that he is an accomplished professional, but Tisch Football ganizations To see videos of the people profiled in the he is disorganized in his format. He needs to be more specific in his League meet- [the Giants book and learn about volunteer op- accomplishments and competencies. Richard should form complete ings in Dallas and the New portunities, visit when he spoke with Crain’s. York Jets] to CitizenYou.org. sentences and narrow down his experience to showcase his value to a recruiter. When creating a résumé, be sure not to fall into the trap of writing Could a blizzard during the Super Bowl a long narrative. Edit to ensure that all points are concise. Check for wreak havoc? consistency in grammar, never use the words I or me, and make sure New York and New Jersey have a everything reads smoothly and makes sense. tremendous history dealing with —connie thanasoulis-cerrachio, career services expert, Vault.com any weather condition that might come our way. The weather may To contact this candidate or to be featured in “Résumé Review,” e-mail us even add to the drama of a very ex- at [email protected]. citing Super Bowl. buck ennis

EMI Music: Dominic Pandiscia, 43, was appointed senior vice president of appointed chief technology officer at the promoted to senior vice president and EXECUTIVE MOVES promoted to executive vice president of corporate communications. He was Internet-video advertising sales and U.S. Hispanic practice leader at the EMI Music Services. He was formerly formerly senior vice president of marketing company. He was formerly public relations agency. She was Continued from Page 25 senior vice president and general corporate communications at AOL. chief architect at AOL. formerly vice president. was promoted to general counsel from manager of EMI Label Services. iN Demand: John Tom Des Jardins, 47, was named chief Man Made Music: Kim Paster, 40, was senior chief counsel. Madison Williams and Co.: Timothy R. Vartanian, 52, was scientist. He was formerly the chief promoted to senior vice president of Mancini Duffy: Michael Winstanley, 53, Schwarz, 49, joined the integrated named chief technology officer at Lightningcast, production from vice president of was promoted to chief executive at the capital markets and advisory firm as technology officer at which he also founded. production, and she will continue in her architecture and design firm. He had managing director and head of the the provider of video- VEVO: Holly Schomann, 39, was named role as general manager at the music been managing principal of its power and alternative energy group. He on-demand and pay- vice president of programming and branding company. Washington, D.C., office. was formerly with Dresdner Kleinwort, per-view television. artist relations at the music video and NBC Local Media: Lora Le Sage, 40, was Glam Media Inc.: Bruce where he served as head of the North He was formerly a entertainment website. She was appointed vice president of digital media A. Jaffe, 46, joined the American power and alternative energy technology consultant. previously in talent and label relations operations. She was previously director media agency as chief group. SecondMarket: Gregory Besner, 44, was for Sirius XM Satellite Radio. of integrated media at NBC Chicago. financial officer and Chadbourne & Parke: Lori S. Hoberman, named chief financial officer and head WorkLight Inc.: Ron Perry, 42, joined the Wall Street Access: Daniel D. Daniel III, executive vice 45, was appointed partner and lead of data and analytics at the securities software provider as chief technology 36, joined the financial services president of corporate partner in the law firm’s emerging company. He was formerly chief officer. He was formerly at Mobixell company as senior vice president of development. He was company and venture-capital practice. operating officer at Houst Party Inc. Networks, where he served as vice special situations. He was formerly vice previously corporate She was previously a partner at Fish & The About Group: Mitchell Kreuch, 43, was president. president and special situations analyst vice president of Richardson. appointed senior vice president of sales. Iconik Enterprises: at UBS. corporate development at Microsoft. Current TV: Matthew Frankel, 37, was He was most recently at MySpace, Aleksandra Slowinska, Napa Group: Scott Rubinstein, 48, joined where he served as vice president of sales 30, joined the real the trading platform as director of for the Eastern and Midwestern regions. estate services firm as business development. He was most Crowell & Moring: CORPORATE LADDER Mark A. Egert, 47, executive vice recently at the Depository Trust & joined the law firm’s corporate and president of the Clearing Corp., where he served as financial-services groups as a partner. brokerage and manager of underwriting. BONNIER TAPS INSIDER TO LEAD NEW GROUP He was formerly managing director and investment properties Green-Wood Historic Fund: Lisa W. MERRI LEE KINGSLY, 47, was promoted to vice president of publishing for chief compliance officer at Cowen group. She was Alpert, 48, was named director of Bonnier Corp.’s newly established luxury and lifestyle group, which includes Group Inc. formerly president of Slowinska, which development and marketing at the Stack Overflow: Joel Spolsky, 41, joined she also founded. monuments and buildings preservation SKI, Skiing, SNOW, Saveur and Garden Design magazines, as well as Warren the technical Q&A website as chief Diamond McCarthy: Richard R. Kalikow, nonprofit. She was formerly director of Miller Entertainment and Nastar, a ski-racing group. executive. He was formerly chief 60, joined the law firm as a partner. He constituency-building and development The announcement came one week after Ms. Kingsly executive at Fog Creek Software, and was formerly a partner at Skadden Arps at The Municipal Art Society of New was appointed group publisher of Saveur and Garden will remain chairman of the board. Slate Meagher & Flom. York. Design. Ms. Kingsly was most recently publisher of Saveur, DLA Piper: Charles Baker, 49, joined the Savitt Partners: Alicia Popper, 42, was Belfiore Architects: William W. Palmer, where she increased revenue and ad sales through the law firm as a partner in the corporate named senior managing director at the 55, joined as director of planning and and finance group. He was a partner at commercial real estate services firm. She business development. He was vice recession; according to the Publishers Information Nixon Peabody. had been at Murray Hill Properties, president at HOK. Bureau, ad sales increased by 20.3% to $16.3 Katie Baynes, 34, joined as a partner in where she was a senior managing —maia blume million from December 2008 to December 2009. the corporate and finance group. She director. Prior to joining Bonnier, Ms. Kingsly was had been a partner at Nixon Peabody. Morgan Joseph & Co.: Rachel Beck, 35, EXECUTIVE PROMOTIONS publisher of Four Seasons Magazine. Peter White, 53, joined as a partner in the was named vice president in the private The fastest way to get an announcement into —maia blume corporate and finance group. He was a placements group. She was most recently Crain’s is to submit details online. Fill out the form partner at Nixon Peabody. a vice president at Enclave Capital. at www.crainsnewyork.com/submit. The Outrigger Media: Dave Markley, 43, was Porter Novelli: Sonia Sroka, 33, was Executive Moves column is also available online.

26 | Crain’s New York Business | May 31, 2010 20100531-NEWS--0027-NAT-CCI-CN_-- 5/28/2010 2:11 PM Page 1 chemex / INSATIABLE CRITIC Business & Procurement Expo from flickr.com Gael Greene 8:30 a.m. to 1 p.m. at the Con Edison THE Learning Center, 43-82 Vernon Blvd. Entrance is free for attendees and $175 for exhibitors. Call (718) 482-5323 or WEEK e-mail [email protected] for further details. A secret garden WORKSHOPS AHEAD TUESDAY, JUNE 8 SCORE NYC will host a workshop on JUNE 7-12 finance and business accounting basics near the Garden from 9 a.m. to 12:30 p.m. at the New York State Society of CPAs, 3 Park Ave., CONFERENCES & SEMINARS 19th floor. Fees are $49 in advance and bloomberg news Italianish cuisine with MONDAY, JUNE 7 $59 at the door. Call (212) 264-4507 or THE NEW YORK SOCIETY OF SECURITY e-mail [email protected] for additional WHAT HE’S the Devils at Penn ANALYSTS will hold a career chat on information. perspectives on the hedge-fund industry READING Plaza’s Lugo Caffé from 6 p.m. to 8 p.m. at 1540 Broadway, FUNDRAISERS 10th floor. The event is free for members MONDAY, JUNE 7 CHRISTOPHER DAVIS, chairman of couldn’t get any of my usu- and $35 for nonmembers. For more THE NEW YORK CITY CHAPTER OF THE Davis Advisors, an investment information, call (212) 541-4530. ALZHEIMER’S ASSOCIATION will host its al reviewing dinner pals to go firm managing $65 billion in to Lugo Caffé. As soon as I annual “Forget-Me-Not” gala at The TUESDAY, JUNE 8 Pierre, 2 E. 61st St., beginning at 6:30 assets, may be busy watching the said, “Penn Plaza near Madi- FINANCIAL MARKETING PARTNERS will p.m. The VIP reception will start at 6 market’s gyrations, but he still son Square Garden,” they hold a seminar on disability income p.m. There will be a silent auction, a finds time to pick up a good book. Iwould ask, “What else is on your insurance for business owners from 8 live auction, dinner and dancing to He’s currently reading The Age list?” Then dramaturge nephew BIG PIG: Huge, crunchy pork shank a.m. to 10:30 a.m. at 1 Penn Plaza, suite Valerie Romanoff ’s Starlight of Wonder: How the Romantic Gabe and wife Mia came to town 2035. The event is free to attend. Call Orchestra. Tickets range from $1,000 Generation Discovered the from La Jolla,not so hip to Manhat- (646) 473-4162 or e-mail to $100,000 and can be purchased Beauty and Terror of Science, by tan geography. I spot them happily [email protected] for further details. online at www.alz.org/nyc. LUGO CAFFÉ Richard Holmes. Not surprisingly, settled at the bar, wide-screen video 1 Penn Plaza THURSDAY, JUNE 10 CULTURAL EVENTS on either side,“La Dolce Vita” mot- (212) 760-2700 he recently finished Michael GREENPEARL EVENTS will hold an office THURSDAY, JUNE 10 Pick Lewis’ The Big Short, about the to overhead, all set for a glamorous www.lugocaffe.com leasing, finance and investment summit Head to TOWN HALL at 123 New York evening with Aunt Gael. of the handful of investors who from 7 a.m. to 1:30 p.m. at McGraw- W. 43rd St. at 8 p.m. for identified the housing bubble We retreat to the quieter back room Hill Conference Center, 1221 Sixth Festival Flamenco de week with its wall of wine and frieze of Ave. The fee is $225. For additional Córdoba, a celebration of long before everyone else and stills from Italian movies, Marcello CUISINE Italianesque information, call (646) 862-9391 or flamenco dance and guitar, from struggled to profit from their insight. Mastroianni staring down at us. PRICE RANGE Entrées $24 to $29 e-mail [email protected]. Centerline Talent, in association with “The pain and loneliness that And please don’t accuse me of Stratta Philips Productions. Tickets comes when you’re right but early SERVING Weekdays 8 a.m. to 11 FRIDAY, JUNE 11 throwing these innocents to the range from $35 to $60 and can be on an investment idea—I can p.m., Saturdays noon to 11 p.m. Join LAGUARDIA COMMUNITY COLLEGE’S purchased online at identify with that,” Mr. Davis says. wolves.Tao and Rue 57 veteran chef PROCUREMENT TECHNICAL ASSISTANCE www.the-townhall-nyc.org. Sam Hazen had e-mailed me that RESERVATIONS Wouldn’t hurt CENTER for the eighth annual Queens —maia blume “Everyone who’s interested in the he’d done a great job shaking up the NOISE LEVEL Best in back room market should read this.” kitchen as the consultant here. I ex- To view Crain’s full calendar listings, go to www.crainsnewyork.com/events —AARON ELSTEIN pected to eat well.I don’t know what I can’t wait to return. was there before Sam arrived, but I will definitely go back. what we’re sharing tonight is most- I’ll let them simmer awhile. ly delicious Italianish food for New Yorkers—excessive, occasionally a NO HATS Never again. bit over the top—as in the good but not-very-Italian meatball pizza with ricotta, mozzarella, roasted Dolcetto d’Alba, just $35 on a list of tomato and the vaguely annoying vini della casa, is perfect with all of sweetness of caramelized onions. these show-off flavors. I’m surprised to see the chef here on Be warned, there is less pleasure a Saturday night, stopping by to in ahi tuna tartare, overwhelmed by wow our guests with reports of ath- cured tomato. And I sent back the lete sightings—New York Giants, eggplant caponata and the brussels New Jersey Devils,a special thrill for sprouts that tasted as if someone had hockey stalwart Mia (yes, they do salted them twice. play women’s hockey in San Diego). A week later, my guy Stephen And just as Mr.Hazen had boast- and I return to taste more. We share ed to lure me here, the huge and a marvelous whole-leaf romaine crunchy pork shank, layered with Caesar and textbook-perfect lin- juicy morsels of pig under crisped fat guine alla vongole with arugula skin, is a winner. It arrives on a not- sprouts. The house stocks quite-large-enough wooden board Clausthaler, his favorite nonalco- for us to carve at the table, scattering holic beer, and skirt steak is one of garlands of chopped peppers both his favorite cuts. Tonight’s is chewy sweet and hot. Enough for four, and rare and very good once we’ve maybe enough for six. Certainly too cut away the mahogany edge that much for us after marvelous balloon tastes overly salty from its marinade. meatballs and the platter of prosciut- I’m unhappy with the excessive oili- to and house-made mozzarella with ness of the wild mushroom pizza. fig jam—sent by the chef—plus Mr. Hazen—caught standing at the crispy baby artichokes with tangy door as we arrive with no reserva- lemon aioli, tuna tartare and a trio of tion—stops by our table later and vegetable antipasti we ordered and defends the pizza, saying it’s oily two pastas we’d already divided. from the provolone cheese and truf- Menus with so many different cate- fle preserved in oil. I guess we’ll be gories are brilliantly designed to trying the Margherita next time, trick the hungry into ordering more. even if Lugo remains our own secret Still, the pricing is gentle: $4 for a “garden,” along with that of the vegetable tasting bowl, entrées $24 sports fans and concert-goers filling to $29, desserts starting at $7. the terrace tables tonight. Not that I would have skipped the first-rate bucatini alla matri- Copyright © 2010 by Gael Greene. ciana, remarkably al dente. Fruity Syndicated by www.insatiable-critic.com.

May 31, 2010 | Crain’s New York Business | 27 CN013729 5/21/10 3:27 PM Page 1

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