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Spitzer Gains Allies for Health Cuts

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Spitzer Gains Allies for Health Cuts nb12p01.qxp 3/16/2007 8:04 PM Page 1 TOP STORIES Why I M&A sweet spot: won’t Digital ad agencies vote weigh buyouts, for Rudy independence —Alair Townsend PAGE 2 ® on Giuliani’s bid Page 13 Air America radio goes Green with Mark’s plan to VOL. XXIII, NO. 12 WWW.NEWYORKBUSINESS.COM MARCH 19-25, 2007 PRICE: $3.00 become profitable PAGE 3 Yankee Stadium Spitzer gains to get its first Latino fare; publishers seek allies for Agassi book NEW YORK, NEW YORK, P. 6 B’klyn merchants health cuts struggle after loss of bridal mecca Broad coalition group,helped persuade the Greater SMALL BUSINESS, P. 17 New York Hospitals Association to gives him edge stop funding television advertise- The city’s Olympic ments blasting the governor. in budget fight Well-heeled health care work- legacy; landmarks ers union 1199 SEIU, which ini- panel riles activists as deadline nears tially launched the ads in a joint ef- REAL ESTATE, PAGE 19 fort with the hospitals association, BY ERIK ENGQUIST continued airing the spots on its own dime. It believes they are BUSINESS LIVES gov. eliot spitzer has assembled weakening popular support for a broad coalition to promote his Mr. Spitzer and will give it more 4 STARS, GOOD DEALS plan to overhaul health care financ- leverage when it rejoins the hospi- ing in the state, and appears to be tals at the negotiating table. The taking the upper hand as he seeks union has also received help from approval from the Legislature. the Rev. Al Sharpton, Democratic In nearly daily media releases Rep. Charles Rangel and embat- and press conferences, Mr. Spitzer tled Senate Republicans. has recruited nonprofit groups and But the opponents of Spitzer’s even an HIV-positive woman to plan, which would reduce state CLAUDETTE GUINN, tout his plan as beneficial to patients. money for health care providers by veterans affairs The governor has also tapped $1.2 billion in the first year, have Classy,low-cost eateries coordinator at Brooklyn executives for crucial behind-the- little support from political leaders are cropping up PAGE 31 College, recently expanded her office. scenes work while minimizing and nonprofits. their public role. The Partnership “People are hesitant to be for New York City, a business See SPITZER on Page 8 AT DEADLINE THE NEW YORK CITY OPERA AND THE BROOKLYN ACADEMY neff david of Music are holding a joint THE WAR IN NEW YORK gala event on May 24, a first Game gets trickier for the organizations. Cunard Line is hosting the benefit, called the Britannia Ball, on its at shaky Take-Two Queen Mary 2 ocean liner the CUNY mobilizes night before it sets sail from the Brooklyn Cruise Terminal Dissidents set to win GANGBUSTERS to the Bahamas for its annual Memorial Day weekend for returning GIs control must clean Best sellers, in millions of copies. cruise. Cunard invited the two house, retain talent Grand Theft Auto: arts groups, which will split to readjust to civilian life. Today, Vice City (Take-Two) the proceeds, to participate in Public university when he sees the flood of veterans 6.8 Grand Theft Auto: an effort to market its ship to from Iraq and Afghanistan pouring BY AARON ELSTEIN adds services to ease San Andreas (Take-Two) their patrons.Tickets cost into his college,he relives those dif- 6.8 $1,000 a piece; about 1,000 soldiers’ transition; ficult times. But now, he can offer chaos and mayhem are facts of Super Mario 64 guests are expected. needs to do more the guidance he never received. life in Grand Theft Auto, the best- (Nintendo) 5.9 “It’s painful for me to deal with selling video game of all time.They Grand Theft Auto 3 SOME OF THE CITY’S LEADING this, but it would be a lot more also lurk around the corner for its (Take-Two) BY SAMANTHA MARSHALL 5.6 LAW FIRMS, bolstered by painful not to,” says the academic, publisher, Take-Two Interactive Halo 2 record profits, are ratcheting who was asked by City University Software Inc. (Microsoft) up their hiring of summer after his tour of duty in Viet- of New York administrators to take A dissident investor group that 5.3 Source: The NPD Group Inc. See AT DEADLINE on Page 2 nam,Baruch College anthropology a lead role in developing new and owns 46% of Take-Two’s stock is professor Glenn Petersen struggled improved support services for this expected to seize control of the latest generation of war veterans. Manhattan company on Friday and With about 10,000 New York promptly fire its top executives. 12 5 area residents expected to return The new management team in- from combat zones in the Middle stalled by the dissident group—led East over the next 18 months, by Oppenheimer Funds, D.E. CUNY is bracing for an influx. Shaw, S.A.C. Capital and other ELECTRONIC EDITION The public university system, prominent investors—will need to See CUNY on Page 10 See GAME on Page 8 bloomberg news NEWSPAPER 71486 01068 0 CNYB 03-19-07 A 2 3/16/2007 6:10 PM Page 1 AT DEADLINE Continued from Page 1 housing advocates. “We have yet Developers, city working associates. Skadden Arps Slate to see any specifics on how Meagher & Flom plans to Clipper Equity plans to keep increase its summer associate the development affordable, class by 35% this year to 292 despite their promises,” says on affordable Queens units hires. Kirkland & Ellis plans to Jonathan Rosen, of the housing bring in 229 summer staffers, group Acorn. 20% more than last year, while The proposal comes as the New York & New Jersey. DLA Piper expects to hire 105 GAIA POWER TECHNOLOGIES Plan is for nonprofit York State Housing Finance The city must rezone the site and law students this summer, 14% RAISED $2.9 MILLION in funding to issue tax-exempt Agency finds itself in a cash crunch, build infrastructure—including more than last year. from GHO Ventures and the without enough federally allocated roads, sewers and open spaces—es- New Jersey Tech Council bonds for project; tax-exempt bonds to fund all the timated to cost nearly $50 million. SMITH & WOLLENSKY Venture Fund.The five-year- projects in its pipeline. Unlike the The hope is to create as many as RESTAURANT GROUP was caught old Manhattan company will 5,000 units eyed state agency,a nonprofit isn’t subject 5,000 units, with at least 60% of off guard when Houston-based use the money to increase sales to a federal cap on the amount of them dedicated to households earn- Landry’s Restaurant Inc. upped and marketing of its products, tax-exempt bonds it can issue. ing $60,000 to $145,000 for a fam- its offer to buy the steakhouse which help businesses store and BY JULIE SATOW “In the next 60 days, the city will ily of four. chain on Friday. Landry’s is manage energy. make an announcement” about a offering Smith & Wollensky a group of new york’s most pow- new housing program for middle- Who will develop? $9.75 per share, or 50 cents NEW YORK COMMUNITY erful real estate developers is work- income New Yorkers, Mr. Ross said details of the Real Estate Board’s more than an offer made by BANCORP IS PLUNKING DOWN ing with the city on a novel financ- at a breakfast at New York Law plan that are unclear include Patina Restaurant Group earlier $14.8 million to acquire Doral ing structure that would help pay for School last week. whether the Queens West nonprof- this month. Patina had all but Bank’s 11 New York City the construction of a mid- Mr. Ross declined to ex- it would own the project outright, wrapped up the details of its branches, which have dle-income project on the pand on his public com- what fees developers would be paid, acquisition of the Manhattan $370 million in deposits.The Queens waterfront. 60% ments. Steven Spinola, the and whether to divide the site steakhouse company when transaction, expected to close in The plan would create an- OF 5,000 Real Estate Board’s presi- among several developers. Landry’s offer came in. Smith & the third quarter, will give New other source of tax-exempt UNITS would dent, said the group is ad- In addition, federal guidelines Wollensky said it would York Community 38 branches funding for developers of af- be for middle- vising the city and has no would obligate the nonprofit to income evaluate the offer before making under its New York Commercial fordable housing. households time frame for announcing maintain a certain level of affordable a statement. Bank brand to complement 161 a program. The city Eco- housing yet generate enough in- savings bank branches. Financing plan nomic Development Corp.said that come to cover the debt—a tricky CLIPPER EQUITY, THE DEVELOPER the real estate board of New it is listening to the group’s ideas but balance to achieve, housing experts WHOSE BID to buy Starrett City CITIGROUP INC. IS EXPECTED TO York, a trade group headed by The that it has not seen a formal propos- say. in Brooklyn for $1.3 billion was REVEAL to its employees details Related Companies Chairman al and many details remain un- Some affordable housing advo- rejected earlier this month, says of its cost-savings plan as early Stephen Ross, is proposing creating known. cates are also voicing concern that its plan on how it would keep as this week, Financial Week a nonprofit that could issue tax-ex- Mayor Michael Bloomberg an- the Real Estate Board is not the ap- the 6,000-unit development reports in today’s issue.The cuts empt bonds to subsidize the con- nounced the city’s plans for Queens propriate body to oversee an afford- affordable has been delayed.
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