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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. “It could range from $2 billion to struction of Queens West,a planned West last fall and is working to close able development. is taking longer than $5 billion, analysts say, as Citi middle-income development on 24 a deal to buy the land for $100 mil- anticipated,” says a company attempts to placate investors acres in Long Island City. lion from the Port Authority of New COMMENTS? [email protected] spokesman. “We only have one frustrated with the company’s shot and we want to do it right.” stock. Back-office overlap in The delay may be costing the credit card and consumer developer what little chance it finance operations is a prime has to win over affordable target. I

CORRECTIONS Digital ad firms click Elizabeth Williams, producer of Crazy for You, was mistakenly identified as her partner, Anita Waxman, in the March 12 story “Broadway hitmakers heading to China.” The Lufthansa test flight of the Airbus A380 is scheduled to land at John F. Kennedy International Airport today. The date was misstated in the March 12 issue. with potential buyers THIS WEEK IN CRAIN’S Shops like independence, but offers are tempting NEW YORK, NEW YORK------6

THE WEEKS AHEAD ------8 BY AMANDA FUNG ALAIR TOWNSEND ------13 ian schafer is fielding a lot of calls from THE INSIDER------14 would-be buyers and investors these days.The WEEK IN REVIEW ------16 founder and chief executive of Deep Focus, an 80-person advertising agency specializing in SMALL BUSINESS ------17 digital media, weighs each offer. 33 NEIGHBORHOOD So far, he has resisted the pressure and JOURNAL------18 maintained his five-year-old company’s independence.That could change soon. REPORT: REAL ESTATE ------19 With spending on interactive advertising DEALS------27 likely to reach $20 billion this year, Deep Focus CLASSIFIEDS ------28 is one of about six New York shops being BUSINESS LIVES------31 courted heavily by big agencies and media companies looking to buy a piece of the action. CORPORATE LADDER------33 “Interest has turned up a notch this past EXECUTIVE MOVES------34 35 year,” says Mr. Schafer, who expects his BOB LAPE ------35 revenue to double to more than $12 million in vol. xxiii, no. 12, march 19, 2007—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals 2007. “An overture is made once a week.” postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address The entreaties put the entrepreneurs who IAN SCHAFER’S changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, agency, Deep MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a run the agencies in a tough spot.They are Focus, is being copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents courted by big copyright 2007 by Crain Communications Inc. All rights reserved. reluctant to give up their independence, but companies.

See CLICKING on Page 9 larry ford

2 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 3 3/16/2007 6:13 PM Page 1 Air America goes Green operating officer. one show.Most stations mix in talk- New York family CASH-CONSCIOUS: Thanks to the ers from other networks, like the “We can’t be HARD LANDING will run network influential if we’re Air America’s annual losses. bankruptcy, contracts popular progressive Ed Schultz, or not profitable,” with hosts are being carry their own content. as business, but will says Mark Green. 2006 $13,096,139 negotiated in line Additionally,Air America is sad- with market rates, dled in some markets with under- 2005 $19,598,457 ratings improve? in contrast to the performing stations. Flagship 2004 $9,137,074 $2 million a year that WWRL-AM in New York, where BY MATTHEW FLAMM Source: U.S. Bankruptcy Court the network’s biggest the network moved last year after star—and radio losing its lease at WLIB-AM, post- in the weeks since Air America novice—Al Franken ed a paltry 0.8 share in the fall, ac- Radio emerged from bankruptcy, than prior own- was paid. He left last month to run cording to Arbitron. the liberal radio network’s new pres- ers Progress for the U.S. Senate from Minneso- “They’ve got an uphill battle,” ident,Mark Green,has met with re- Media and Pi- ta. And the workforce of 50 staffers says Mark Lefkowitz, media direc- porters, talked with affiliates and, in quant, which is half the number of a year ago. tor at Furman Roth Advertising, keeping with his history as political lost a total of The Greens are also benefiting who stopped placing ads on Air pugilist, taunted Fox News in the $42 million from the millions of dollars that America after it left WLIB. blogosphere. and were both were spent building and promoting Messrs.Green and Elberg count- But he has also done something plagued by fall- Air America. er that they’re rebuilding a New York that hasn’t been done since Air out from a presence on WWRL. They also in- America launched in spring 2004: scandal involv- Expensive model sist that the network model can work hired a vice president of program- ing an improp- “there was a huge startup cost of because Air America has estab- ming to work with the talent. er loan from a going into barren terrain and estab- lished itself as a brand. “The name “He’s a guy deeply versed in ra- charity. lishing that there was an audience gives us leverage,” Mr. Green says. dio,” Mr. Green says of veteran talk Stephen for this,” says Danny Goldberg, a Some critics concede that Air radio programmer David Bernstein, Green, chair- music industry professional who America has been making improve- who starts at the network today. man of SL was the network’s chief executive for ments, in particular by moving pop- The new hire is one component Green Realty a year. “[Air America] may not be ular host Thom Hartman into Mr. of what Mr. Green describes as Air Corp. and of moving at 100 miles an hour, but it’s Franken’s former noon-to-3 p.m. America 2.0,an iteration that began Air America, moving.” slot.What’s more,well-run stations,

when the network was purchased by buck ennis bought it out of But the company is still founded notably in Portland, Ore., and Seat- real estate investor Stephen Green, bankruptcy for on an expensive and unwieldy net- tle, have maintained solid ratings. Mr. Green’s older brother. frequent Air America guest host, a mere $4.25 million from his pock- work model:creating a daily lineup of Some radio experts say that get- who has lost races for U.S. senator, et; minority partners contributed original programming, rather than ting a network launched at all is an Deep pockets mayor and, most recently, attorney another $3 million. producing just one or two shows. accomplishment that should not be the manhattan-based company general. The chairman will oversee the “It’s hard enough to have a suc- underestimated. will continue to be a home for left- Referring to his elder brother’s business side of the network. The cessful show in this business, let “[Air America] is in top markets leaning or “progressive” talkers and deep pockets and how much money younger brother will put his back- alone a [full] lineup,” says Michael with top programming and getting produce 19 hours a day of program- he is willing to invest, Mr. Green ground in advocacy and liberal pol- Harrison, editor of the trade maga- an audience,” says Robert Unmacht ming. But according to Mr. Green, says,“Steve will not be to Air Amer- itics to use as its public face. He will zine Talkers. of media consulting firm iN3 Part- the new Air America will be run as ica what [News Corp Chairman] also be in charge of content and dig- Air America’s business troubles ners. “Now we just have to see if the a business. Rupert Murdoch still is to the New ital strategies. have taken a toll. The network is new folks can run a solid business and “We can’t be influential if we’re York Post.” Another radio veteran, Scott El- down to 70 affiliates from a peak of keep the product worth listening to.” not profitable,” says the onetime The newly constituted Green berg, who has been with Air Amer- almost 90, and many of those listed New York City public advocate and Family Media can’t do much worse ica for two years, was named chief on its Web site carry no more than COMMENTS? [email protected]

Hanson to gobble up more eateries BY THE NUMBERS CLASS INACTION quire other restaurant groups to Manhattan-based chef Tom cruit fiercely independent entre- a community service society Under new joint fold into the new joint venture, Colicchio’s organization, which preneurs is their reluctance to give of New York survey found that venture, manager B.R. Guest LLC. owns a stable of five restaurants un- up their power. the public school der the Craft name,could be on Mr. “At the end of the day,” says dropout rate is a will look to acquire Calling Tom Colicchio? Hanson’s wish list. restaurateur Drew Nieporent, who major concern of mr. hanson says he’s already in “Tom would be great,” he says. owns Nobu and Tribeca Grill, “it’s low-income city other chains talks with several restaurateurs The two are not currently in nego- about control—who maintains it residents. Long- across the country. Any business he tiations, Mr. Hanson adds. and who relinquishes it.” term data show BY LISA FICKENSCHER considers must be a chef-driven op- Mr.Colicchio says he is interest- Mr. Hanson sees it differently, the persistence of the problem. istockphoto eration that owns multiple eateries ed in learning more about Mr.Han- however. stephen hanson made as much as and brings in revenues of at least son’s plans. “I think it comes down to a $100 million when he inked a deal $30 million. “I love that this deal happened,” choice,”he says.“Do you want to be this month to sell half of his restau- he says.“It shows that independent king, or do you want to be rich? I’m rant empire to hotelier Barry Stern- SECOND GUEST: operators can turn their restaurants trying to get rich.King doesn’t mat- licht. Now he’s about to make oth- Stephen Hanson will into a real business.” ter to me.” er restaurateurs very rich. buy eateries on In fact, restaurants are suddenly Mr.Hanson—who founded city behalf of his attracting great interest from in- Sharing the wealth hot spots Blue Water Grill, Fi- new venture vestors. Chef Jean-Georges Vong- in the meantime, Mr. Hanson with Barry amma Osteria and Dos Caminos, Sternlicht. erichten and partner Phil Suarez has already spread some of his new among other eateries—will help last year signed a licensing deal with wealth among 34 of his senior build the food-service side of Mr. Starwood Hotels & Resorts managers at his restaurants: He Sternlicht’s next hotel initiative un- Worldwide, a company founded by gave them sizable bonuses after der the Starwood Capital Group Mr. Sternlicht that he ran until signing the deal last week with Mr. umbrella. 2004; under the agreement, the Sternlicht. The transaction, which values partners will operate Spice Mar- The hotelier—whose new con- the business at between $150 mil- ket eateries in Starwood’s luxury- cern owns Le Meridien locations in lion and $200 million, calls for brand hotels. Meanwhile, a bid- the United States and Europe— Mr. Hanson to operate some of ding war has erupted for the Smith plans to launch a string of five-star his most successful restaurants at a & Wollensky chain. hotels, including four in New York. group of new five-star hotels. The One challenge that Mr. Hanson Source: New York State Education Department

deal also calls for Mr.Hanson to ac- buck ennis will no doubt face in trying to re- COMMENTS? [email protected] lindström bekka

March 19, 2007 | Crain’s New York Business | 3 nb12p04.qxp 3/16/2007 6:58 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL Wall Street’s leading bull -1.2% The ready to charge ahead Bloomberg/ Crain’s New

➡ York Index brokerage currently worth buying. for leveraged buyouts—are still thriving. fell 1.2%, to Subprime buy weighs Even if the subprime problem were to So far,for example,41 initial public offer- end the heavy on Merrill shares, explode into a full-fledged credit crisis, ings have been priced this year, an 8% in- week at such as that spurred by crease over this point 375. The but outlook is bright Russia’s debt default in 2006, according to S&P 500 in 1998,Mr.Hintz es- Renaissance Capital. Index fell timates that Merrill’s The big reason to 1.1%, BY AARON ELSTEIN pretax earnings would be bullish about Mer- closing at fall by only 8%. Under rill is its 16,000 retail 1387. hen business histori- more likely scenarios, brokers, the industry’s ans assess Stan he reckons that Mer- largest and most prof- O’Neal’s tenure as rill will escape the itable sales force. Merrill Lynch & Co.’s subprime mess with They added $22 chief executive, his only a glancing blow million worth of net RISERS $1.3W billion acquisition of subprime to earnings—a hit of new client assets in the 5-DAY 1-MONTH 3-MONTH CLOSING mortgage lender First Franklin in Janu- less than 1% this year. fourth quarter, more % CHANGE % CHANGE % CHANGE PRICE ary is unlikely to rank as one of his best Last year, Merrill than double Smith Maidenform +6.6% +7.8% +10.3% $21.28 moves. posted net income of Barney’s gain. So long It has already cost Merrill dearly.Fears $7.3 billion, or $6.18 as the stock market eSpeed +6.1% +11.7% +4.8% $9.22 that the firm will be dragged down by a per share, on revenue avoids a collapse, Ann Taylor +5.8% +9.0% +13.5% $38.60 mountain of soured home loans have of $32.7 billion. That this durable business Market cap $71 billion J. Crew +5.5% +4.6% -6.5% $38.48 helped send Merrill’s stock into a 14% marked a hefty jump should grow by about Nat’l Medical Health +3.7% +6.0% +22.5% $14.53 slide this year, making it the biggest loser over 2005’s per-share Trailing 12 months P/E 10.6 10% this year, accord- among all major brokerage firms. income of $5.27 on Return on equity, TTM 20% ing to Bank of Ameri- But those fears are starting to look $26.0 billion of rev- ca analyst Michael SINKERS overblown. And with Merrill’s invest- enue. For this year, Hecht. 5-DAY 1-MONTH 3-MONTH CLOSING ment banking and retail brokerage busi- analysts surveyed by Perhaps most ap- % CHANGE % CHANGE % CHANGE PRICE nesses still going strong, now looks to be Reuters Estimates expect earnings to pealing for investors, Merrill’s shares 1-800-Flowers -7.0% +1.0% +17.9% $7.05 an excellent time for investors to stock up reach $7.69 a share on revenue of trade at a discount to those of its peers. Warner Music -6.6% -6.4% -28.5% $17.09 on Wall Street’s leading bull. $34.5 billion. Merrill’s stock trades at under two times “Merrill will be able to weather the Such upbeat estimates reflect the fact its book value per share, compared with Martha Stewart -6.4% -9.7% -25.2% $17.19 storm,” wrote Brad Hintz, an analyst at that, despite concerns about subprime 2.4 for Morgan Stanley and 2.5 for Gold- Lehman Bros. -6.1% -13.8% -6.4% $71.19 Sanford C. Bernstein & Co., in a recent mortgages, Wall Street’s cornerstone man Sachs. Sirius Satellite -5.3% -12.4% -16.9% $3.24 research report. He rates the stock “out- businesses—taking companies public, perform” and ranks the firm as the only advising on mergers and lending money COMMENTS? [email protected]

STOCKS TO WATCH Public Service pays off powerfully as big utility charges to 52-week highs ’re g IT’S OFFICIAL: Investors have forgiven e listenin Public Service Enterprise Group for last summer’s aborted merger with Hello, w Exelon. Shares of the Newark-based power producer and distributor were among the few that hit 52-week highs last week, boosted by a couple of “buy” recommendations. The stock has risen 25% in the past six months. The costly pending buy of TXU has also helped, by signaling just how much acquirers will pay for power companies. Recent waves of jitteriness in the world stock markets have battered Tiffany’s stock. Since peaking just shy of $46 on Feb. 26, the high-end jeweler’s shares have slipped 2%, closing on Friday at $42.71. Investors are fearful that stock market routs will damp demand for pricey baubles, and they’re concerned about rising diamond prices. Tiffany will have its say next week, when it is expected to announce a 9% increase in quarterly per-share earnings. This week, Sotheby’s will auction off 311 superhot Asian art objects in New York, in what promises to be another record-shattering evening. The extrava- ganza comes just three weeks after the auction house unveiled superb fourth-quarter results, including a 40% jump in profits. So how are investors taking all this good news? They’re cashing in their chips. The stock, which had gained more than 50% in the past year, ended last week down 4%. bekka lindström bekka

4 | Crain’s New York Business | March 19, 2007 Project1 3/12/07 11:26 AM Page 1 CNYB 03-19-07 A 6 3/16/2007 5:27 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

More sweet spots from chocolatier tar chocolatier Jacques Torres (left) has a new obsession: real estate.The award-winning pastry chef, Scookbook author and former Food Network host is launching an aggressive growth plan to populate the city—and eventually the country—with his gourmet chocolate shops. “We are learning how to open stores,” says Mr.Torres, owner of an eponymous company. In April, he will open his third sweet shop in the city at 285 Amsterdam Ave.—he already has locations in Dumbo and SoHo. His next stop will be on the Upper East Side, he says. For now, the native of Provence, France, is expanding his company without the help of investors, and will continue to do so “until we reach $20 million or $25 million in sales,” he says.The company generates about half that amount now, he adds. Mr.Torres is inching out of the wholesale market. “You almost

buck ennis have to cut your prices in half when you are in wholesale,” he says.

Spicing up Laugh Factory in Los two camera crews on hand, and Yankees fare Angeles, but the comedy footage of the event may end up club’s New York outpost is in future ads. love the yankees, hate the still feeling the pain. stadium food? Fans will find an The venue’s weekly alternative to foot-long hot dogs attendance of around 2,000 is this season. While Latinos like still nearly 30% below pre-rant Mariano Rivera and Alex Rodriguez levels. Laugh Factory owner Jamie have long dominated the field, Masada complains that the Daniel Garcia, owner of Salsa presence of skinheads and others Caterers & Special Events, plans to hanging out at the West 42nd make a splash at the food counters. Street club, applauding the former On opening day, the Bronx Seinfeld actor’s use of the n-word entrepreneur will unveil the first on stage, turns off customers. concession to serve Latino fare at “I had absolutely no idea that gettyimages Yankee stadium. Menu items will this kind of person was so present include beef empanadas, Cuban in New York City,” Mr. Masada Agassi serves up Weiser is pleased to announce that sandwiches and sweet plantains. says. “Just the other night, I was his life story Goya Foods will provide the standing in front of the New York ingredients. If successful, the club when a stretch limo drives up executives from eight New York Ron Lagnado, CPA concept could move to other with people yelling the n-word publishing houses took a trip to stadiums. over and over as it passed.” Las Vegas last week, and it wasn’t has been admitted The Yankees and Goya, a To revive his club, Mr. Masada to gamble—at least not in the into the partnership. sponsor, hatched the idea last year is beefing up national advertising casinos.They went to meet with and brought in Mr. Garcia to and has become a spokesman for tennis great Andre Agassi (above), provide local flair. the “Abolish the ‘N’ Word Project” who is shopping a book about his in New York. life and career. New York City 135 West 50th Street Meetings included a visit to New York, NY 10020 Mr. Lagnado possesses more than No laughs the school the tennis star founded Tel 212.812.7000 17 years of experience providing Get out your for at-risk children. One insider Fax 212.375.6888 for N word auditing and accounting services. estimates that the book could Long Island Kleenexes 3000 Marcus Avenue He has extensive experience in four months have passed since fetch as much as $3 million. “He’s Lake Success, NY 11042 performing attestation engagements, Michael Richards’ famous rant at the after hitting YouTube gold a very likable and inspirational Tel 516.488.1200 compliance, due diligence, and cost with its “Let It Out” ads, guy,” says the insider about Mr. Fax 516.488.1238 certifications for commercial and Kleenex wants to wring Agassi. “Though he’s not as Westchester residential real estate in both SUMMER OF LOVE more mileage out of its interesting as McEnroe.” 660 White Plains Road campaign.The tissue John McEnroe’s 2002 memoir, Tarrytown, NY 10591 development and operating entities. TO CELEBRATE Tel 914.333.0555 maker will bring its blue You Cannot Be Serious, was hugely Fax 914.333.0556 the 40th anniver- couch to Times Square on successful. Weiser's Real Estate Services Group sary of the Cen- Saturday and invite the Though not as hot-tempered New Jersey provides personalized service and 399 Thornall Street tral Park Be-In, public to vent to “good as Mr. McEnroe, Mr. Agassi had a Edison, NJ 08837 technical expertise to real estate pop art icon Peter listener” Geoffrey Cantor, colorful history on the court, Tel 732.549.2800 developers, owners, managers, REITs, Max will speak at Fax 732.549.2898 from the ads. transforming himself from and investors. Barnes & Noble Featuring weepy ponytailed rebel to gracious elder www.weiserLLP.com on Broadway and people telling their stories, statesman. He ended his 20-year West 82nd Street the campaign is one of the career at the U.S. Open in next Monday. latest in a string of reality September. Richard Pine,Mr. Mr. Lagnado can be reached Those who buy a ads. Dove started the Agassi’s literary agent, could not at 212.375.6551. copy of The Art of trend with its “Real be reached. Peter Max will receive a limited-edition Women” campaign in Weiser LLP 2005. Contributors: Elisabeth Butler, Certified Public Accountants signed reproduction of the event poster. Wannabe actors, take Lisa Fickenscher, Matthew Flamm, note: Kleenex will have Miriam Kreinin Souccar

6 | Crain’s New York Business | March 19, 2007 Project8 2/26/07 1:07 PM Page 1

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hospitals and nursing homes to com- munity-based care. AARP is asking Spitzer gains allies for plan the Legislature to take a hard look at how elderly people in nursing homes Continued from Page 1 Conservative Party Chairman decade,” says Michael Kink, legisla- would be affected. “We’re not taking against Mr. Spitzer,” says SUNY Michael Long, meanwhile, broke tive counsel for Housing Works, a one side over the other,” Mr. Ferris New Paltz professor Gerald Ben- with Mr. Bruno and his Republican coalition member. says. But Mr. Spitzer’s press release jamin, an expert on state politics. conference last week and endorsed Mr. Kink appeared at a press announced, “AARP says Spitzer “He seems to be a very unpleasant the governor’s health care reforms. event with HIV-positive Myra budget aids older New Yorkers.” person to have mad at you.” Mr. Long, who almost never allies Johnson, a recovering addict, who The key to the battle may be For example, the Working Fam- himself with Democrats,blasted Sen- declared, “Gov. Spitzer has made it whether 1199’s ads will undermine ilies Party—which receives funding ate Republicans as profligate spend- clear: His budget protects the bene- Mr.Spitzer’s standing with the vot- from 1199—is not openly attacking ers for seeking to restore the cuts. fits and services I need to survive.” ers and whether the governor bloomberg news the governor, even though it oppos- However, the governor also trot- ELIOT SPITZER has assembled a coalition of would be swayed by any drop in his es his health care cuts. The party, Shows of support ted out half a dozen advocacy groups groups to support his health care cuts. popularity. whose ballot status depends largely other organizations, such as that have taken no position on the “That’s their position—that they on Mr. Spitzer, is effectively side- statewide coalition Medicaid Mat- health care cuts. Technically, they will do better if the governor is dam- stepping the debate by calling for ters,joined Mr.Spitzer at press con- were endorsing other budget initia- ciety. “I don’t think we felt that we aged,” says Kathryn Wylde, presi- the cuts to be restored through a tax ferences and eagerly touted his re- tives. “We were legitimately happy were hornswoggled or anything.” dent of the Partnership. “I think hike.That’s a nonstarter for the gov- forms. “From the perspective of with those parts of the budget,” says AARP lobbyist Bill Ferris says his that’s a miscalculation.” ernor and Senate Majority Leader people who are on Medicaid, this is Peter Slocum, vice president of ad- organization is still examining Mr. Joseph Bruno alike. the best budget we’ve seen in a vocacy for the American Cancer So- Spitzer’s plan to shift spending from COMMENTS? [email protected]

year-old company is coming off its powerful financial inducements to worst year ever financially. In 2006, stay. Last year, Take-Two granted Game gets trickier at Take-Two it posted a net loss of $185 million, $25 million worth of restricted or $2.60 a share, on revenues of $1 shares to them and other top game Continued from Page 1 companies caught up in the nation- sible for the company’s signature billion, compared with earnings of development staffers. About $15 walk a fine line. It will have to clean wide options scandal—agreed to product. $35 million on revenues of $1.2 bil- million was granted immediately, up Take-Two’s image on Wall Street pay $7.3 million in fines and is co- Grand Theft Auto, which ac- lion in 2005. Results were hurt by but the rest won’t fully vest for an- without stifling the freewheeling operating with the Manhattan dis- counted for nearly 40% of Take- rising expenses related to Take- other two years, when the brothers’ creative culture that is a key ingre- trict attorney’s office in its continu- Two’s revenue in 2005, is a gaming Two’s numerous investigations and contracts expire. dient in the company’s commercial ing investigation of Take-Two. phenomenon.Fans say that it can be litigation, royalty and software de- Still, at this point Take-Two success. The company has a long history played for hundreds of hours be- velopment costs, and the lack of a seems to need the Housers a lot “The guys at Take-Two have al- of missteps. In 2005, it paid the Se- cause it offers so many different sto- new GTA title to stir up sales. more than they need the company. ways worked under their own rules,” curities and Exchange Commission ry lines and characters, not to men- “They could walk into any major says Wedbush Morgan Securities $14 million in fines and disgorge- tion a pulsating soundtrack. Critics Unhappy creatives publisher,and people would be will- analyst Michael Pachter. “Now ment penalties for accounting fraud. blast it for its rampant violence. signs of unrest that could jeop- ing to offer them almost anything,” they’re about to get foster parents It took a $25 million hit last year “Sam Houser is like the Steven ardize GTA’s future have already says Brian Baglow, a former Rock- telling them they have to eat right when the Federal Trade Commis- Spielberg of the video game indus- appeared in the ranks.Terry Dono- star marketing executive who now and go to school on time.” sion forced it to relabel a version of try,” says Mike Hickey, an analyst at van, co-founder and former chief runs his own public relations firm. The coming bloodletting will be Grand Theft Auto found to contain a Janco Partners. executive of Rockstar Games, left That kind of arms race is Take- merely the latest sordid episode at a hidden sex game. The Housers and Take-Two de- in December, as did finance head Two shareholders’ biggest night- company known equally for creating clined to comment for this article, Stewart Halpern. Mr. Donovan mare. a video game that has earned $1.7 Super brothers as did Strauss Zelnick, a veteran couldn’t be reached for comment. “So far, Take-Two has done a billion in sales and for shafting its for the new regime at Take-Two movie and music executive who is Mr. Halpern says he took a better good job of keeping employee costs shareholders. Interactive, the biggest challenge poised to become Take-Two’s chair- position,as chief financial officer of down,” says one Take-Two investor. Last month, its founder and for- will be catering to the video game man after Friday’s annual share- a small gaming accessory designer “My biggest concern is that the new mer chief executive, Ryan Brant, savants responsible for Grand Theft holder’s meeting. in San Diego. management team will decide they pleaded guilty to manipulating 10 Auto.The most important players in The next version of GTAis sched- “Now that Ryan’s gone, my ex- have to break the bank and pay their stock-option grants between 1997 that group are brothers Sam and uled for release in October, and pectation is the creative guys will be people as if they worked on, well, and 2003. Mr. Brant—one of only Dan Houser. The British expatri- Take-Two can’t afford any glitches less happy,” Wedbush’s Mr. Pachter Wall Street.” four executives convicted of back- ates co-founded Rockstar Games, along the way. Few, if any, of its oth- says. dating charges at the hundreds of the Take-Two subsidiary respon- er titles make money, and the 14- But the Housers have been given COMMENTS? [email protected]

THE WEEKS AHEAD

THIS WEEK’S EVENTS MARCH 20 (212) 686-6827 or p.m., Morgan’s Bar, 237 Madison Ave. Fee: $50 members, $75 nonmembers. MARCH 20 Camba Small Business Services holds [email protected]. Fee: $10 members, $15 nonmembers in (201) 692-8087 or retailmarketingsoci The Real Deal holds forum on the workshop on surviving the Brooklyn advance; $20 for all at door, cash only. @retailmarketingsociety.org. science of real estate. 5:00 p.m. to 9:00 retail jungle. 6:00 p.m. to 8:30 p.m., 884 MARCH 26-APRIL 1 (718) 625-1369 or MARCH 29 p.m., Avery Fisher Hall at Lincoln Flatbush Ave., second floor, Brooklyn. MARCH 26 [email protected]. U.S. Federation of Small Businesses Center, Columbus Avenue and 65th Free. (718) 282-2500, ext. 242, or Biba4Network holds networking MARCH 28 holds networking reception. 6:00 p.m. Street. Fee: $30. (212) 450-7300 or [email protected]. reception. 6:30 p.m. to 8:30 p.m., Lehman College’s Small Business to 8:00 p.m., Guardian Building, [email protected]. MARCH 20 eDressMe, 325 W. 38th St., penthouse. Development Center holds workshop 7 Hanover Square, 15th floor. Fee: free MARCH 20 Manhattan Chamber of Commerce Fee: $10 members, $30 nonmembers. on exporting. 10:00 a.m. to 12:00 p.m., for members, $15 nonmembers. New York Designs, a City University of holds forum on New York as the fashion (917) 573-9808 or 250 Bedford Park Blvd. West, Old Gym (718) 701-0087 or [email protected]. New York program, holds course on the capital of the world. 6:00 p.m. to 8:00 [email protected]. Building, room 108-B, Bronx. Free. MARCH 29 design business. 5:00 p.m. to 9:00 p.m., p.m., Fashion Institute of Technology, MARCH 26 (718) 960-8697 or New York Building Congress holds La Guardia Community College, 45-50 Seventh Avenue and 27th Street, Outprofessionals and Lynx hold LGBT [email protected]. forum with Elliot Sander, executive 30th St., seventh floor, Long Island executive dining room. Fee: $20. program on the secrets to business break- MARCH 28 director and chief executive of the City, Queens. Fee: $60. (718) 663-8403 (212) 473-7805 or [email protected]. throughs. 6:30 p.m. to 8:00 p.m., Nation- Bridgestar and New York Community Metropolitan Transportation Authority. or [email protected]. MARCH 21 al Academy Museum, 5 E. 89th St., Trust hold workshop on bridging from 8:00 a.m. to 9:45 a.m., 101 Park Ave., MARCH 20 NYC Business Solutions and Huntington Room. Free. (212) 473-7805 business into the nonprofit sector. 9:00 ground floor. Fee: $55 members, $75 Bedford Stuyvesant Restoration Corp. Commerce Bank hold seminar on or [email protected]. a.m. to 11:00 a.m., 909 Third Ave. Fee: nonmembers. (212) 481-9230. holds workshop on lending basics. 6:00 new-hire training. 8:30 a.m. to 10:30 MARCH 26 $25. Registration required. MARCH 29 p.m. to 8:30 p.m., 1368 Fulton St., a.m., 2 Wall St. Free. (212) 618-8714 or Seedco holds workshop on restaurant (617) 572-3998. Herrick Feinstein holds program on the Brooklyn. Free. (718) 636-6924. [email protected]. management. 2:00 p.m. to 4:30 p.m., MARCH 28 valuation of entertainment and digital MARCH 20 MARCH 21 Department of Small Business Services, American Express and Arts & Business media assets. 8:00 a.m. to 10:15 a.m., New York Commercial Real Estate Meetup holds seminar on investing 110 William St., seventh-floor Council of New York hold marketing Sofitel, 45 W. 44th St. Free. Women Network holds information strategies and styles. 6:30 p.m. to 8:30 boardroom. Free. (212) 618-8862 or plan workshop on maximizing revenue (212) 592-5926 or session on current hospitality trends in p.m., 1290 Sixth Ave., sixth floor. Free. [email protected]. opportunities. 9:00 a.m. to 12:30 p.m., http://events.herrick.com. the New York hotel market. 6:00 p.m. to Registration required. (212) 255-7327 MARCH 27 200 Vesey St., first-floor lobby. Fee: $35 MARCH 30 8:00 p.m., Affinia Manhattan Hotel, or [email protected]. Nationwide Equities Corp. holds Arts & Business Council of New York Fordham Law School and Lincoln 371 Seventh Ave. Fee: $60 members, MARCH 22 networking reception and business card members, $55 nonmembers. Center for the Performing Arts hold $85 nonmembers. (212) 499-6566. Corporate Counseling Associates holds exchange. 6:00 p.m. to 8:00 p.m., 795 (212) 279-5910, ext. 29. seminar on nonprofit law, economic breakfast program on stress Eighth Ave., second floor. Free. MARCH 28 challenges, and the future of charities. More meetings online at management for the human resources (917) 975-5985 or [email protected]. Retail Marketing Society holds lunch 9:00 a.m. to 5:00 p.m., McNally www.newyorkbusiness.com professional. 8:30 a.m. to 11:00 a.m., MARCH 27 program on supermarket survival in the Amphitheatre, 140 W. 62nd St. Free. Click on “Events” New York Helmsley Hotel, 212 E. 42nd Networking for Professionals holds new shopping decade. 12:00 p.m. to (212) 636-7295. St., Turtle Bay Room. Fee: $45. networking reception. 6:00 p.m. to 8:00 2:00 p.m., Williams Club, 24 E. 39th St. —adrianne pasquarelli

8 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 9 3/16/2007 2:15 PM Page 1

option, who knows,” says Mr. Le- bowitz,who declines to specify finan- Clicking with buyers cials for his firm.“My biggest concern is, how can you scale up to the size Continued from Page 2 could put them at a disadvantage. of a large agency and maintain the worry they could fall behind their For example, only one agency based quality and culture of a boutique?” bigger competitors or be left out of in the city,Blast Radius,has an inter- Alan Pearlstein, founder of Fly- a rich merger and acquisition wave. national presence. Blast, founded 10 ing Point Media, a five-year-old The touchstone deal was in No- years ago, says that its revenues rose agency located in Manhattan’s gar- vember, when ad giant Publicis 7% to $41 million last year. ment district,wants to open offices in bought Boston-based Digitas for The other shops are even small- Europe. He’s willing to be patient. $1.3 billion. In January, publishing er. Intercept Interactive, which pro- The 27-person shop had $14.5 mil- firm Meredith Corp. ac- vides Web site development lion in revenues in 2005, up about quired two interactive shops, and manages online cam- 66% from a year earlier. Last year, MARCUS ROSENBERG & DIAMOND LLP Los Angeles-based Genex $20B paigns, has grown to 45 em- Flying Point Media won a $10 mil- and Washington-based New AMOUNT ployees since it was founded lion account from Emigrant Direct. Celebrating our 18th Anniversary on March 1, 2007 Media Strategies, for undis- of interactive in 2002. Its revenues were “Any opportunity I have to sell or ad spending closed sums. expected for up about 24% to $21 million merge won’t go away,” says Mr. “It’s an incredibly good this year in 2005, the most recent Pearlstein. “I have plenty of time. We continue to offer a small law firm alternative market,” says Seth Alpert, year it reported,according to I’m not concerned about it.” for real estate transactions and litigation, managing director at AdMedia Advertising Age. Intercept’s founder But time may not be on interactive Partners Inc., a boutique investment and chief executive, Michael Cas- agencies’side.Valuations are high be- cooperative and condominium law, construction law bank specializing in media and ad- sidy, wants to grow his business and cause would-be suitors are eager. In- and real estate partnership matters vertising.“It will remain solid for the has weighed the possibility of selling vestment bankers say that a success- next couple of quarters.” to a bigger agency. ful independent shop that pulls the Interactive agencies provide a trigger now can sell for eight times its 488 Madison Avenue range of services.They create inter- Will listen to good pitch operating profits.That dynamic could New York, New York 10022 active Web sites, promote products “if a party comes to the table that shift. “Things change overnight,” via social networking sites like My- can help us,”Mr.Cassidy says,“I will says Mr. Alpert. “You don’t want to (212) 755-7500 Space, develop online games that entertain a compelling partner.” miss the window of opportunity.” market brands, and manage online So would the owners of Big For his part,Mr.Schafer of Deep ad campaigns for companies. Spaceship, an agency in Dumbo, Focus is expanding;next month,he’s New York’s independent shops, Brooklyn. Best known for creating moving the agency out of its space in which experts say enjoy profit mar- the new Nike Air Web site and devel- Dumbo to 27,000 square feet in gins ranging from 10% to 20%, are oping online campaigns for major lower Manhattan. But he’s keeping prime acquisition targets. Most are film studios like Miramax and Para- his options open. “I would be a fool lean operations that keep their ex- mount, Big Spaceship has seen rev- if I didn’t listen to opportunities that penses low—employing no more enues double this past year,according would get us there faster,” he says. than 100 people apiece. to co-founder Michael Lebowitz. Increasingly, however, their size “If presented with a wonderful COMMENTS? [email protected]

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March 19, 2007 | Crain’s New York Business | 9 CNYB 03-19-07 A 10 3/16/2007 2:05 PM Page 1

Vietnam,” he says. With many soldiers returning FREE TRIALS CUNY mobilizes for returning GIs injured, disabled and severely trau- matized, CUNY’s task is daunting. OF HEALTH PULSE Continued from Page 1 colleges. These students will need plenty of NEWSLETTER which already has 2,500 to 3,000 re- “We’re nervous, because these help to get them through college life THE LITTLE THINGS CRAIN’S OFFERS READERS A FREE turning soldiers enrolled, expects at A sampling of extras at CUNY for vets. students will have a lot of needs, but and help them graduate. least 40% of this new crop of GIs to we’re also excited,”says Christopher two-week trial subscription to end up in its colleges because of its G Float in the Veterans Day Rosa, director of programs for stu- Tradition of service Crain’s Health Pulse online track record as the city’s go-to place Parade dents with disabilities and veterans though other universities pro- newsletter. for vets. at CUNY. vide some services to veterans, Pulse deals G Staten Island College Armed To help ease these soldiers’ tran- Administrators admit to weak- CUNY’s history with soldier stu- with the business Forces Club sition to student life, the university nesses in the system.Only a handful dents dates back to the post-Viet- of health care. It system is taking decisive steps, de- G Brooklyn College Memorial Day of CUNY schools currently provide nam war era, when about 25,000 supplies informa- spite limited resources. It hopes to trip to Washington services much beyond assigning an veterans were enrolled throughout tion on mergers be an exception in what has become employee in the registrar’s office to the system and the VA provided ex- and affiliations, a nationwide disaster for war veter- help veterans collect on the GI Bill, tra funding for services. Now, a contracts, exec- ans returning from battle.The prob- a military hub, in part because of his and even that staff member doesn’t handful of colleges, such as Brook- utive appointments, regulatory lems at Walter Reed Army Medical vast experience in dealing with gov- work full-time on veterans’ issues. lyn College, are squeezing money actions and legislative develop- Center in Washington, D.C., are ernment and military agencies. He “We need to do a lot more than from their existing budgets to do ments in New York City and state, just the latest example. has been aggressively lobbying the just certify students for their bene- what they can for the latest genera- the northern suburbs, Long Island Mr. Petersen is one of dozens of state Legislature for more funds fits,”says Claudette Guinn,veterans tion returning from war zones. and nearby areas in New Jersey. CUNY faculty and staff who are since his arrival. affairs coordinator at Brooklyn Col- The efforts are paying off,accord- An annual subscription is taking part in a systemwide effort “As the largest urban system in the lege, who recently expanded her of- ing to one Brooklyn College student. $295. The one-page newsletter is that includes beefing up manpower country, it’s our civic duty to provide fice by hiring a part-time outreach Ariel Jacob Luna, 26, who served as available by 6 a.m., Monday dedicated to veteran outreach ser- for these students,” says Mr. Moore. coordinator. a sergeant in the military police in through Friday. Subscribers vices, building user-friendly Web For starters, says Baruch’s Mr. Iraq between 2004 and 2005, found More funding receive Pulse Extra, an additional sites with referral services, and cre- Petersen,CUNY should train facul- his second home when he stumbled page, on Wednesday mornings. ating free continuing education pro- if cuny gets its way,it will be able ty and civilian students on how to on Ms. Guinn’s office. Now a part- For your free two-week trial, grams for veterans not covered by to supplement many of the services sensitively handle classroom discus- time student studying television and go to www.NewYorkBusiness the GI Bill. CUNY has also estab- that should already be provided by sions about the Iraqi conflict now radio, Mr. Luna also works as a vet- .com lished a steering committee to take local and federal agencies. The sys- that the tide of public opinion has erans services and outreach coordi- . Click on Health Pulse recommendations on ways to help tem is optimistic that the state Leg- turned against the war. CUNY nator, one of three veteran students under “Newsletters,” on the lower soldiers blend into the student pop- islature will approve $750,000 in should also push the Department of who are paid to help mentor their ap- left side of the home page. In the ulation. extra funding for veteran student Veterans Affairs in Washington to proximately 160 peers. blue tools box, click on “Request Garrie Moore, a new vice chan- services when it adopts its latest provide more funding for psycho- “We’re successful here because a Free Trial.” After registering, you cellor for student development and budget. That money, in addition to logical counseling and programs. our staff consists of veterans; it takes will receive confirmation by himself a Vietnam vet, was recruit- an existing $200,000, will pay for “We have a moral and profes- a vet to know a vet,” he says. e-mail with instructions on ed eight months ago from East Car- at least one dedicated full-time sional obligation not to repeat what accessing the trial issues. olina University in North Carolina, staff member at each of CUNY’s 17 happened to so many people after COMMENTS? [email protected]

AmericanAirlines, AA.com and We know why you fl y are marks of American Airlines, Inc.

We know life can take you virtually anywhere.

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10 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 11 3/15/2007 3:38 PM Page 1

presence here,” the BANKING ON NEW YORK bank said in a state- 1 ment. “New York Citibank losing ground Household deposit penetration by local banks. City is our home 2005 2006 turf and one of our

2 most important to spiffed-up competitors Chase 16.5% 17.6% markets.” Citigroup 15.1% 15.0% Citi, which al- ready boasts the People want to bank in places that competition. HSBC 6.6% 7.3% largest average de- Consumer business are new and clean.” “It’s a classic conflict,”says Thom- posit amount per could deteriorate as O’Brien, chief executive of State Bank of America 6.1% 6.9% branch in New Stuck in biggest market Bank of Long Island. “The bank has Washington Mutual 6.7% 6.4% York City, is striv- as cost-cutting despite embarking two years ago to invest to create revenue,but it can’t ing to improve drains resources on an effort to revitalize its con- invest if it is cutting costs. The cost 1-New York City, Long Island, Westchester and Rockland. Numbers are based on branch aesthetics sumer banking business around the side is driving the business now.” quarterly polling and reflect percentage of all households. 2-Includes Bank of and service. The country,Citibank has failed to make Citibank’s retail market share has New York for both periods. Source: Claritas Inc. bank plans to open BY TOM FREDRICKSON much progress in New York, its remained stagnant in the New York three branches in City area over the last two years, ac- New York City this at the citibank branch on Park cording to data from market re- petitors such as Bank of America year and refurbish 25 more to corre- Avenue and East 57th Street, cus- While Chase search firm Claritas Inc. and Commerce Bank blanketed spond with a new branch “core de- tomers are greeted by dim fluores- Claritas’ quarterly polling data Manhattan and expanded their sign,”a spokesman says.In addition, cent lighting, dirty acoustical tiles, a added 74 show that 15% of New York area sights to the other boroughs. Citi recently added interactive fuzzy portable TV and an upended households had a deposit relation- kiosks in its Manhattan branches to garbage can in the ATM branches in ship with Citi during the 12 months Activity outside city improve service by getting cus- vestibule—the only part of the bank ended Sept. 30, 2006, unchanged citigroup’s main retail activities in tomer feedback. open after 4 p.m. NYC, Citibank from the prior year. Over the same 2006 occurred outside New York Nationally, the bank plans to The nearest Chase branch,locat- period, Chase’s share jumped to City and overseas.It opened 101 re- open about 100 branches this year ed at Madison Avenue and East opened only six 17.6% of households, from 16.5%. tail branches, mainly in areas such using the core design, approximate- 58th Street, is clearly visible from “Citibank lost market share in as Illinois and New Jersey that are ly matching last year’s number of more than a block away because of New York because it didn’t build adjacent to existing Citi markets. new branches. In addition, it’s con- the new branch’s vivid blue-neon branches or offer new products,” Citi also set up 202 CitiFinancial tinuing with plans to refurbish signs. They command attention, as says Dick Bove, an analyst with consumer lending offices around branches in New York. do the giant plasma TV screens in Punk Ziegel Inc. the country.Globally,Citi has made But merely keeping pace with last the brightly lit lobby, which stays biggest market, or translate its ini- While J.P.Morgan Chase added a number of acquisitions as the year may not be enough. Compared open until 6 p.m. tiatives into profits. Now that Chief 74 branches in New York City company closes in on its goal of with other banks, says Mr. Bove, “Citi is lagging behind Chase,” Executive Charles Prince has prom- in the last three years, Citibank generating more than 60% of its “Citi has not invested heavily in its says Craig Woker, an analyst with ised to take a hatchet to costs opened only six branches. Citi’s revenues overseas. branch system.” Morningstar Inc. “Branch banking throughout the company, it will be modest expansion occurred in Man- “Citibank is committed to New is just like any other retail business. even tougher to keep pace with the hattan.Meanwhile,aggressive com- York City and to expanding our COMMENTS? [email protected]

And that’s exactly where we fly.

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March 19, 2007 | Crain’s New York Business | 11 CNYB 03-19-07 A 12 3/15/2007 6:33 PM Page 1

VIEWPOINT History lesson on Javits Center

editor in chief Rance Crain he current plan to expand the Jacob K. initially set at $1.2 billion—it has since ballooned to publisher Jill R. Kaplan Javits Convention Center is far from $1.8 billion—and hotels agreed to a new room tax to cover EDITORIAL editor Greg David perfect. But before the Spitzer much of that. Including an unfunded second stage, the plan managing editor Richard Barbieri administration becomes wedded to a envisions a total of 1.05 million square feet of exhibit and projects editor Cynthia Rigg deputy managing editors Valerie Block, scheme for an even bigger center, it needs meeting space. Erik Ipsen to understand the history of the project From the beginning, critics have said that there were columnist Alair Townsend senior reporters Aaron Elstein, and the risk it is taking in trying to do better ideas, though most involved building to the south. Lisa Fickenscher, Matthew Flamm, something better. Since the compromise was codified in legislation in Tom Fredrickson, Samantha Marshall, Anne Michaud, Julie Satow, Business leaders spent two decades trying to push through December 2004, soaring construction costs have forced Miriam Kreinin Souccar T Barbara Benson, Elisabeth Butler, a Javits expansion. At least 15 cities have larger convention revisions to the project reporters Erik Engquist, Amanda Fung, Hilary Potkewitz, facilities. A bigger center would immediately translate into a The city won’t and fueled criticism of it. Gale Scott boost for New York’s hospitality industry, lead to a surge in Now, Gov. Eliot restaurant critic Bob Lape art director Steven Krupinski hotel construction on the West Side and create thousands of agree to a plan Spitzer is asking why a deputy art directors Carolyn McClain, jobs. Because the industry often provides the first step on the bigger and better center Daniel Mednick involving land staff photographer Buck Ennis employment ladder for new immigrants and job mobility for isn’t possible.The copy desk chief Wendy Zuckerman to the south copy editors Michele Arboit, unskilled workers, the undertaking is crucial for social answer is that the city Thaddeus Rutkowski reasons as well. won’t agree to any plan research editor Denise Southwood associate research editor Despite the compelling arguments, the idea of an involving the southern Adrianne Pasquarelli expansion languished for 20 years in a city-state standoff. parcels because it has www.NewYorkBusiness.com Rudy Giuliani couldn’t abide any operation he didn’t control, online editor Catherine Tymkiw committed money from online reporter David Jones and Javits is a state-controlled entity. He refused to negotiate their development to pay for the extension of the No. 7 line. EDITORIAL AND ADVERTISING OFFICES or provide any funds for its growth. Mayor Michael No parties would be happier than the city’s hotel and 711 Third Ave., New York, NY 10017-5806 Bloomberg has always supported the idea but only if it convention industry if the Spitzer administration could editorial: 212.210.0277 Fax 212.210.0799 advertising: 212.210.0259 dovetailed with his plans for a West Side stadium and broker an agreement on a bigger center built on something Cable craincom nyk development of the adjacent Hudson Yards. In such an close to the current timetable. But such an effort would more Fax 212.210.0499 Entire contents ©copyright 2007 Crain environment, it was impossible to agree on a design or likely lead to years of delay. Communications Inc. All rights reserved. ®CityBusiness is a registered trademark of MCP financing for the expansion. With the risks so great, the Spitzer administration should Inc., used under license agreement. A series of compromises broke the logjam in 2004. Javits concentrate on finding ways to improve the existing design TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. would be built out to the north, accommodating the city’s and to provide more money to accelerate the second phase. $3.00 a copy, $59.79 one year, $109.79 two years. ideas for the land south of the center.The budget was Doing so would represent a great public service. www.NewYorkBusiness.com ADVERTISING AND MARKETING advertising director Vanessa Cognard business development manager LETTERS TO THE EDITOR Robert N. Grossman senior account managers Holly A. McKeown, William E. Squitieri account executives Andrew Carlin, Derek Reese, Jennifer Siniscalchi, Brigitte Stieglitz Getting a life beyond the footlights western account manager Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified MANY COMRADES the same way I do and that there’s enrollments since 1998. tax-dodging accounting practices print & online John Gallagher AT A CROSSROADS happiness on the other side. ken brown that has been adopted in 18 other newsletter product manager chris santangelo Director of public relations states, from New Hampshire to Catherine Evans Gittens i am a 37-year-old newlywed, New York University Texas, Arizona and Montana. sales coordinator, print & online and I’ve been an actor in New York School of Continuing New York’s tax commissioner Lulé Haznedari NYU ONLINE Anita Perrino City for the past 12 years. I want and Professional Studies can now require a combined sales coordinator GOING STRONG credit Pat Grondziak 313.446.6082 to thank you for the Feb. 26 story return, but only on a case-by-case marketing coordinator Jill H. Bottomley the march 5 article GET ONE RETURN, basis. Recent audits of financial circulation manager Andrea Richardson “E-learning programs earn mixed REAP TAX DOLLARS and other large multistate general manager, interactive grades” leaves a false impression companies have resulted in tax Marc Minardo that New York University is not in i’m surprised that Crain’s defends payments of hundreds of millions NEW YORK PRODUCTION the distance-learning arena. “creative” corporate accounting of dollars. Requiring such production and pre-press director Yes, there was an ambitious practices that are disallowed when companies to file a combined Michael Corsi project for the university as a a state tax audit is conducted return in the first instance, as the advertising production manager whole that was abandoned, but (“Making the case for ‘loopholes,’ ” governor is proposing, should Marilyn DeMilta NYU’s School of Continuing and March 12). reduce both abuse and litigation. PUBLISHED BY CRAIN COMMUNICATIONS INC. Professional Studies has over 25 The centerpiece of Gov. That sounds like a good approach chairman Keith E. Crain years’ ongoing experience in the Spitzer’s proposal to close to treating all taxpayers and president Rance Crain field, having launched its first corporate tax loopholes is to businesses fairly. secretary Merrilee Crain online class in 1979. require a “corporate family” of james parrott treasurer Mary Kay Crain john corbitt john The school’s successful and companies to file a combined Chief economist and deputy director executive vp, operations William Morrow “Stepping off stage.’’ highly regarded online M.S. in return.This is a safeguard against Fiscal Policy Institute senior vp, group publisher Gloria Scoby group vp, technology, circulation, My wife found this article and Management and Systems manufacturing Robert C. Adams gave it to me to read, not because program claims more than 2,000 vice president/production & she wants me to get a 9-to-5 job— alumni since it started a decade manufacturing David Kamis she’s a huge supporter of my ago. Further, the school offers a WHAT’S COMING UP IN CRAIN’S? chief information officer Paul Dalpiaz career—but because I’ve been number of online nondegree corporate circulation director Patrick Sheposh having similar feelings, wondering courses and certificates—in areas Health Wealthy Small if it is time to call it quits and if I including information technology, care New Yorkers business founder G.D. Crain Jr. (1885-1973) do, what I would do. foreign language translation, real report report report chairman Mrs. G.D. Crain Jr. (1911-1996) It was nice to read that there estate, and writing and speech— March 26 April 2 April 9 are other actors who feel exactly that have had over 9,000

12 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 13 3/16/2007 11:38 AM Page 1

vincing the state Legislature to en- act reforms he sought, such as giv- ing the mayor control of the schools. He was critical of community leaders such as Al Sharpton, whom he considered a mere rabble-rouser. He also refused for years to meet with African-American elected of- ficials, such as state comptroller Carl McCall and Manhattan Bor- ough President Virginia Fields. He withheld routine informa- tion about governmental operations from other elected officials, civic groups and the news media until he was repeatedly sued and ordered by courts to release it. He was intransigent in dealing with state-controlled entities such as the Jacob K. Javits Convention Center and the Port Authority of New York & New Jersey. His style was not to negotiate on behalf of the city but rather to confront or de-

john h.john howard mand, or maintain a stony silence. That approach meant missed op- portunities for the city. Mr. Giuliani set himself up as an arts arbiter by threatening to cut funding for a local museum because Rudy supporter of a painting he labeled antireligious. The leaders of a number of arts or- ganizations courageously signed a leaves the camp protest letter. Others did not.Those who signed and those who did not shared the fear that the mayor would udy in 2008? not for me. cut their funding in reprisal. After I wrote about this battle, I I voted for him three times for mayor—the first received many letters from busi- time when he lost to David Dinkins, and his sec- nesspeople citing their fear of ond and third successful runs. I won’t vote for him speaking out and the specific areas a fourth time. in which they felt vulnerable to re- taliation. RThere’s no doubt that Rudy Giuliani left New York a better, Mr. Giuliani dispatched an aide resurgent place.He led an all-out assault on crime,throwing re- to tell Yasser Arafat to leave a concert at Lincoln Center celebrating the sources and sophisticat- I do not believe he 50th anniversary of the United Na- ed deployment at the has the temperament to tions. I was no fan of Mr. Arafat, but problem he believed be president. He does he had an invitation from President overrode all others. He not work well with oth- Bill Clinton.Lincoln Center was not cut taxes and explained ers. He would have to Mr. Giuliani’s living room, and the why lowering the cost of fundamentally change mayor’s action did nothing to ad- living and doing busi- his style to work effec- vance progress in the Middle East. ness in New York was tively with Congress and For the past seven years, we have crucial. He dramatically international leaders. I had a president who has shared reduced the welfare don’t believe he can. some of Mr. Giuliani’s least ad- rolls, emphasizing work Mr. Giuliani was mirable traits. Mr. Bush seems to rather than entitlement. ALAIR able to accomplish live in a bubble, closing himself off But his abrasive, TOWNSEND much of his local agen- from people whose opinions could stick-in-your-eye style da because he was a be helpful. He has shown reckless- wore thin and began to strong personality in a ness in taking the nation to war.Our create problems instead of solving strong-mayor form of government. standing in the world reflects this. I them. He was much less successful in con- don’t want more of the same.

CRAIN’S ONLINE POLL SHOULD THE $1.8 BILLION JAVITS CENTER EXPANSION BE SCRAPPED IN FAVOR OF A LARGER DESIGN? MOST OF THE 305 RESPONDENTS to a Crain’s poll say they would support a larger No, the project .15% Yes, a larger has already been center expansion, with 59% pointing to the delayed for two would additional revenue that would be gener- years attract 59%. more events ated. About a quarter said they would back Yes, but only if the .26% and cost to taxpayers generate a new and larger plan only if taxpayers is minimal additional wouldn’t be stuck with a hefty bill. Just 15% revenue rejected the proposal outright.

For this week’s question: Go to www.NewYorkBusiness.com/poll to have your say.

March 19, 2007 | Crain’s New York Business | 13 CNYB 03-19-07 A 14 3/16/2007 2:28 PM Page 1

needed, such as allowing more candidates to participate and winning legislation mandating SOARING COSTS MTA gets nervous THE INSIDER judicial screening committees. THE METROPOLITAN TRANSPORTATION AUTHORITY has formed a blue-ribbon Her position differs sharply panel of building and contracting experts to find ways to curb costs on by Erik Engquist and Anne Michaud from that of groups—including the upcoming capital projects. Construction costs Brennan Center for Justice, the New are rising so fast that MTA Chairman Eliot “Lee” York State Bar Association and the Sander says, “If we don’t take action, clearly we Fund for Modern Courts—that support are setting ourselves up for a very bad surprise.” fundamental reforms like merit The panel is taking a broad look at the MTA Chief judge seeks pay-hike allies selection. capital plan but is focusing on three “I’m a pragmatist,” Ms. Kaye “megaprojects”: East Side access for the Long hief judge judith kaye urged insisted. She points out that merit Island Rail Road, which is in progress; the business leaders last week to selection requires a constitutional Second Avenue subway, which should break amendment, which must be ground by mid-May; and the planned No. 7 lobby the state Legislature to approved by two legislative extension to the West Side. C assemblies and by voters in a provide a desperately needed pay raise The group, which met for the first time on for judges. referendum. “That’s an awful lot, don’t you think?” she asked. Thursday, is made up of federal, state and Ms. Kaye, speaking at a Crain’s Ms. Kaye also said that now that city officials, as well as labor and industry representatives. It is co-chaired by John New York Business breakfast forum, Mr. Spitzer has firmly endorsed bloomberg news Cavanagh, head of an eponymous consulting reforms, she is optimistic that the THE INITIAL FOCUS will be on warned that the state’s failure to raise service, and James Jones of TDX Construction judicial salaries for more than eight Legislature will finally move to three megaprojects. simplify New York’s complicated Corp. years would soon affect the system of trial courts before the end Members may consider such strategies as quality of the judiciary. of her term. inviting bids and workers from out of state, creating a dispute resolution She noted that state judges mechanism, and making the bidding process more accessible to small firms. Mr. Sander says he doesn’t know how much money those strategies could once were paid the same as Curiosity working save. Recent MTA projects have attracted few bids, and most of those those on the federal bench; in Obama’s favor submitted are overbudget. “You can’t quantify the difference it makes to have now, their average salary of three or four bidders rather than one,” he says. $135,000 is nearly 25% less supporters of Sen. Hillary Bids for the No. 7 line are due by the end of this month. They are being Clinton are brushing off Sen. monitored closely because city government has agreed to pay $2.1 billion, than that of federal judges. Barack Obama’s incursion into New but the MTA is responsible for any costs above that. An MTA spokesman says “With the present salary York on March 9 with a fund-raiser daily news the sealed bids will be assessed in two stages: first for technical ability, then that drew young black for cost. The cost estimate may not be known until May. situation, it has become have automatic increases built in, professionals. increasingly difficult to attract the Ms. Kaye said. Instead, the “He’s the flavor of the month,” best judges and keep them,” said judiciary is “forced to come says Kevin Wardally of Bill Lynch Ms. Kaye, who was recently begging, hat in hand, to Albany Associates, attributing the Illinois predicts that voters will return to together a group of business leaders reappointed by Gov. Eliot Spitzer and every year,” she said. “It’s senator’s popularity to curiosity Ms. Clinton, adding, “Experience to promote development in Willets will serve until she reaches the demeaning to be overlooked.” about a largely unknown candidate. trumps potential every time.” Point and other areas of Queens, mandatory retirement age of 70 in On other matters, Ms. Kaye Mr. Wardally’s firm is advising the Another Democratic sources say.The organization is 22 months. defended the convention-based Clinton campaign and is a central consultant, Basil Smikle, says young expected to raise public and private The pay for state judges should system of choosing judges, saying player in African-American black professionals haven’t made a funds to advance various projects, be tied to that of federal judges or that only modest reforms are political circles.The consultant choice between the two candidates including replacement of the Iron yet. “African-Americans at least Triangle, a bleak industrial area.The feel the need to hear the guy out,” group will work with the city’s he says. Economic Development Corp. Novel concept Pataki backs off Exceptional Hospitality for Javits Center presidential race in the Heart of talk of overhauling expansion former gov. george pataki Midtown Manhattan plans for the Jacob K. Javits released his Iowa supporters to join Convention Center (below) has other campaigns, telling them he given rise to alternative designs. can’t guarantee that he’ll run for Last year, the Empire State president in this cycle. He said the Development Corp. received Javits same thing to his New Hampshire West, a concept drawing from team in early February, then held a developer William Wachtel. A bridge $350,000 fund-raiser for this 21st across 12th Avenue would connect Century Freedom PAC two weeks the center to Hudson River Park later. Mr. Pataki announced last week that he would join New York City law firm Chadbourne & Parke and would concentrate on environmental work. Drug law reform 530 newly renovated guest rooms and suites, 20,000 square feet of meeting space, postponed and a dedicated banquet staff gov. eliot spitzer hasn’t

bloomberg news forgotten his campaign pledge to reform the Rockefeller drug laws but and Pier 76, now a tow pound.The won’t get to it until a state budget plan includes 60,000 square feet of is hammered out, an aide says. meeting space, a 42,000-square- Inmates incarcerated for decades foot exhibition hall uninterrupted for minor drug convictions will by columns, 500 parking spaces, a have to wait until April—or longer, public park and three hotels. if the budget is late—for action. Only a very limited revision was accomplished under Gov. George Group targets Pataki. Mr. Spitzer is likely to seek 49 West 32nd Street, New York, NY 10001 Queens junkyards change not only to make the laws Tel (212) 277-2647 www.radisson.com/martinique more just, but also to help realize former queens Borough his goal of dramatically cutting the President Claire Shulman is putting corrections budget. I

14 | Crain’s New York Business | March 19, 2007 Project10 3/14/07 4:59 PM Page 1

Dr. Shana Tribiano Dr. James Frost Associate Professor, Science Professor of Physics, Computer Information Systems Borough of Manhattan Community College/CUNY LaGuardia Community College/CUNY Co-Investigator, NSF Research Experience for Co-Principal Investigator for Undergraduates grant, Earth Science, Planetary CUNY-NASA Goddard Institute for Space Studies Science, and Astrophysics, CUNY/American Museum of Natural History

Dr. Isaac Goldemberg Dr. Vrunda Prahbu Distinguished Professor, Humanities Associate Professor, Mathematics & Computer Science Hostos Community College/CUNY Bronx Community College/CUNY Director of Latin American Writers Institute Co-Principal Investigator NSF Grant Introducing Internationally renowned Latino poet, Indivisibles into Calculus Instruction playwright, and fiction writer Co-Investigator War Trauma Foundation Grant Orden de Don Quijote 2005 Psychosocial and Mathematics Teaching Tsunami Victims in Tamil Nadu State

World-class talent. Award-winning scholars. CUNY is their classroom. CUNY is your University.

Dr. Gregory Aizin –Chancellor Matthew Goldstein Dr. Paris Svoronos Professor, Physical Sciences Professor, Chemistry Kingsborough Community College/CUNY Queensborough Community College/CUNY U.S. Army Research Office grant to develop Carnegie/CASE Outstanding miniature electromagnetic radiation detectors Community College Professor of the Year

The City University of New York WWW.CUNY.EDU/LOOKWHOISTEACHING CNYB 03-19-07 A 16 3/16/2007 10:29 AM Page 1

WEEK IN REVIEW

twin towers ordered to double ECONOMIC SPOTLIGHT their payout to Mr. Silverstein’s Restaurants company. fight crackdown ANGRY RESTAURANT owners are KKR buys one, complaining that the loses another crackdown by the city kohlberg kravis roberts & co. DEPARTMENT OF HEALTH has agreed to buy discount retailer Dol- gone too far. More than 94 lar General Corp. for $6.9 billion, plus the assumption of $380 mil- restaurants, including popular lion in debt.The Manhattan Union Square eatery the Coffee private equity firm was rebuffed by Shop, were forced to shut down U.K. drugstore chain Alliance Boots after making an $18.8 after the city closed a billion offer with Italian billionaire Manhattan KFC/TACO BELL Stefano Pessina. restaurant that had been the site of a rodent infestation Cable rebranding caught on videotape. The New time warner inc.’s Turner York State Restaurant Broadcasting unit plans to rename and rebrand Court TV.The Association said that health revamp will add more reality officials are going overboard. programming and new afternoon talk shows from ex-Brooklyn

gettyimages prosecutor Star Jones Reynolds and anchor Nancy Grace.Trial Redstone’s salary ousted. Mr. Maisel succeeds coverage will continue airing on Economy Watch former Chairman and CEO Avi weekdays until 3 p.m. A new tied to stock Ared, who stepped down in 2006 name was not announced. NYC’s jobless rate stayed below 5% for a sixth month, but it overtook the U.S. cbs corp. is cutting Chairman to start his own production firm. level. The area’s annual inflation was the lowest since the year ended in March. Sumner Redstone’s compensation DECEMBER ’06 JANUARY ’07 COMPARISON and tying it directly to the Shaw stake Six firms bid NYC jobless rate 4.3% 4.9% 4.6%1 performance of CBS stock.The for racing franchise NYC employment change -8,500 +17,500 +65,6002 move settles shareholder litigation lehman brothers holdings over pay practices. Mr. Redstone’s Inc. bought a 20% stake in D.E. six companies bidding to 3 NY area inflation change +0.2% +0.2% +2.7% salary will fall to $1 million from Shaw & Co., a $29 billion hedge operate the state’s thoroughbred 1-U.S. unemployment rate. 2-Change since December 2005. 3-Inflation rate for the latest $1.75 million; his $1.3 million in fund manager.The deal marks racing for the next 20 years have 12-month period. deferred compensation will be Lehman’s latest effort to expand until March 31 to get their pitches eliminated. its alternative investment to officials in Albany.The New NYC Hotel Stats Broadway Stats holdings. York Racing Association, Empire Viacom lawsuit Racing Associates and Excelsior In January, average room rates in Attendance and box-office gross Racing have submitted proposals. New York City dropped to levels rebounded in the week ended 3/11, viacom inc. filed a $1 billion suit New Century A decision is due May 25. last seen in August, while occu- says The League of American The- against Google’s YouTube for suspended pancy fell all the way back to year- atres and Producers. For the season copyright infringement. YouTube earlier levels, according to data from to date, attendance was up 10%, and is accused of letting its users the state banking Department The New Yorker PKF Consulting. gross increased 2%. upload more suspended the mortgage leads award nods than 160,000 lending license of New popular Century Financial the new yorker led the pack 260,000 $19 Viacom- Corp. after the with nine nominations for the $18.1 250,000 18 owned subprime lender failed National Magazine Awards, videos.The to finance $39 million known as the Ellies. New York and 240,000 17 lawsuit could in New York state Esquire each received seven nods. set a loans. New Century Among publishing companies, 230,000 16 precedent was also ordered to stop Condé Nast was at the top of the 220,000 15 concerning use accepting new list with 32 nominations for 12 of video material on the Web. applications in the state. magazines and one Web site. 210,000 14

200,000 13 Goldman fined Symbol switches 3/11 Trump hires Merrill Lynch goldman sachs group inc. nasdaq stock market said agreed to pay $2 million to settle companies that switch their Capital IQ’s Weekly Deals Report trump entertainment resorts claims by the Securities and listings to the electronic exchange Inc. retained Merrill Lynch & Co. Exchange Commission and can keep their ticker symbols, even TRANSACTION SIZE COMPANY (in millions) BUYER/INVESTOR TRANSACTION TYPE to review a possible sale of its Taj NYSE Regulation that it allowed if they’re fewer than four letters Mahal Casino Resort,Trump customers to make illegal short long. Nasdaq had required firms to K&F Industries Holdings Inc. $1,800.0 Meggitt-USA Inc. SB M&A Plaza Hotel and Casino and sales ahead of public stock use only four-letter symbols. White Plains Trump Marina Hotel.The offerings. Goldman was accused —from staff reports and Topps Co. $385.4 The Tornante Co., FB M&A Manhattan Madison Dearborn Partners Atlantic City property group has of disregarding procedures that bloomberg news reports failed to make a profit since may have uncovered the Rocawear Inc. $238.9 Iconix Brand Group Inc. SB M&A Manhattan emerging from bankruptcy in illegal trades. SpeechCycle Inc. $10.0 M/C Venture Partners GCI 2005. Manhattan Peer39 $3.0 Dawntreader Ventures GCI Silverstein Brooklyn Marvel shuffles settlement IPORussia Inc. $0.6 Keating Investments GCI studio deck Jericho, L.I. world trade center Selected deals announced during the week of March 4 for companies headquartered in metro New marvel entertainment inc. developer Larry Silverstein York. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing shook up the top ranks of its said that TIG Insurance Co. 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 movie studio: Vice Chairman agreed to pay $12.5 million M&A represents a minority or majority acquisition of existing shares of a company without the David Maisel was named on top of the $9.1 million it participation of a financial buyer. chairman, and Michael Helfant, has already paid.TIG was bekka lindström bekka president since last year, was one of nine insurers of the bloomberg news

16 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 17 3/15/2007 3:46 PM Page 1

SMALL BUSINESS

bridal salon called Sposabella runs counter to the prevailing trend. Shops stranded at altar in Brooklyn With the dominant bridal merchant out of the picture, Sposabella owner Bay Ridge retailers “Stores were dependent on Alice Sena says she is not only en- Kleinfeld,”says Sadek Nakleh,man- A PLAGUE OF BANKS joying more editorial coverage in struggle to fill gap ager of Fillmore Real Estate in Bay bridal and other magazines, but she Ridge. “They got the overflow of ACCORDING TO MERCHANTS, Kleinfeld’s is also able to buy bridal fashions left by Kleinfeld; people for a cup of coffee, a newspa- departure isn’t the only thing that has hurt Bay that were once the exclusive domain per or a sandwich.” Ridge’s bridal and nonbridal businesses. of a single Bay Ridge shop. some move out Exasperating their woes is the neighborhood’s With a new, broader range of of- Compensating measures proliferation of banks, which now amount to ferings, Sposabella has sold 3,000 BY CARA S. TRAGER without that traffic, most re- nearly a dozen, including a Commerce Bank wedding gowns for delivery in 2007. tailers have suffered significant rev- that opened in December at Kleinfeld’s former That figure is more than double the us maalouf’s jewelry enue declines despite a variety of site. number of gowns the store sold in shop in Brooklyn’s new measures, including increasing “Every time a bank opens, it eliminates Kleinfeld’s final year in Bay Ridge.

Bay Ridge section has their advertising. Some have picked another retail location” that could draw more buck ennis “I’ve got a lot of customers, and seen better times. up stakes and moved to more prom- shoppers to the neighborhood, says John Logue, president of Bay Ridge’s now I can buy the dresses I want,” Since Kleinfeld, a ising areas. says a very content Ms. Sena. 86th Street Business Improvement District and the owner of a popular local fashionable bridal emporium, At Charmete Bridal, Kleinfeld’s Others have done well by biting G luncheonette. ditched Brooklyn for Manhattan 18 departure knocked as much as 30% the bullet and moving out. Frank months ago,Mr.Maalouf ’s business off revenues. But owner Alize Jargo Segalla, owner of Photography has dropped 25%, pulled down by is fighting back. She has upped her Elite, just across Fifth Avenue from sharply lower sales of wedding rings advertising budget by 20%. She is business has also ebbed. In the good to be fitted for their gowns down the Kleinfeld, was one of the first to re- and cuff links. also thinking about opening a sec- old days, Kleinfeld’s customers street. spond to the news of its pending de- “We can see the difference,” says ond store, in Manhattan, as near to weren’t the only ones who stopped Happily, Hinsch’s has a loyal parture. Within weeks, he moved Mr. Maalouf, owner of Golden Art. Kleinfeld as she can get. in for a bite to eat; the store’s staffers following of its own. Thanks in over to Third Avenue, a thorough- For more than 60 years,Kleinfeld “We [would benefit] from all the came in or ordered out as well. part to its proprietary confections, fare known for its nightlife and had served as a retail anchor for Bay money that Kleinfeld has spent on “I would deliver lunch to them,” including a line of 45 Easter bun- dotted with boutiques and stylish Ridge, drawing brides-to-be from advertising, which draws people says John Logue, the eatery’s owner. nies ranging up to 21 pounds, restaurants. near and far and in the process from all over the world,” says Ms. “I had a working relationship with Hinsch’s revenues have not taken “We knew the storm was com- spawning an entire bridal district. Jargo, who opened her bridal dress the store manager.” too big a hit. ing, and we didn’t want to be caught Within a few blocks of the store’s shop on Fifth Avenue 15 years ago In addition,he would often serve in it,” says Mr. Segalla. “We didn’t front door, wedding dress shops, for that very reason—and who was sandwiches to “all the fathers” who Chocolate center wait to see how much business we party favor stores, jewelers, tuxedo quickly proved right. sat patiently in Hinsch’s vinyl-clad “i’m still a destination for nov- would lose.” renters and photography studios all At Hinsch’s luncheonette, a 58- booths and at its Formica-topped elty chocolates,” says Mr. Logue. thrived. year-old Bay Ridge institution, counter waiting for their daughters The experience of a 20-year-old COMMENTS? [email protected]

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March 19, 2007 | Crain’s New York Business | 17 CNYB 03-19-07 A 18 3/15/2007 3:51 PM Page 1

NEIGHBORHOOD JOURNAL

rents and property values in recent Philly manager makes Sunnyside buy years,but little new building.Unlike Williamsburg, Brooklyn, another favorite refuge for Manhattanites, ment firm. Cooper Village,” says Gerald Led- community in Queens,according to Sunnyside has few vacant industrial NWJ picks up five The buildings, which total more erman, managing partner of Triad Luke Adams, president of the Sun- properties. Most buildings are at- Queens buildings; than 100 apartments, are clustered Management, which owns several nyside Chamber of Commerce. In tached multifamily houses with on 41st and 42nd streets just off properties, including neighboring the last couple of years,he notes,the three stories. longer B’klyn eatery Queens Boulevard. The buyer, buildings along Queens Boulevard. area has seen a wave of immigrants NWJ plans to do some renova- Philadelphia-based NWJ Cos., “It’s not a huge acquisition in terms from a far closer land—Manhattan. tions to the five buildings, and Ac- promo a big draw owns and manages thousands of of New York, but it is unusual for “Now we have all the yuppies quisitions Director David McLain buildings in 15 cities around the Sunnyside.” moving here,” Mr. Adams says. admits that rent increases are in the n an unusual transaction, country.The $13.4 million purchase Traditionally an Irish neighbor- “They can’t afford the city anymore, cards. They will be modest though, five apartment buildings in marks NWJ’s first foray into the hood, Sunnyside has become diver- and so they come here.” because all the units are rent-stabi- Sunnyside, Queens, have just New York market. sified over the past decade as Latino A mere six-stop ride from Grand lized, he says. been bought by a large, out- “It’s not like they’re buying the and Asian immigrants have moved Central Terminal on the No. 7 line, Mr. McLain also insists that of-town property manage- Empire State Building or Peter in. It now boasts the largest Turkish Sunnyside has experienced rising NWJ has no intention of quickly I turning the properties over to make a quick profit. “We expect to own these buildings for the next 10 to 20 years,” he says. —hilary potkewitz Cheap eats are big hit for Brooklyn michael paritsky had his doubts when he signed up his two Park Slope eateries for Brooklyn’s first annual restaurant week three years ago. But now he’s sold—as are the proprietors of 200 other dining venues involved in the event, which begins today and runs through March 30. Mr. Paritsky,the general manag- er of Blue Ribbon and Blue Ribbon Sushi on Fifth Avenue, marvels at “the energy and buzz” created when people stream into Brooklyn neigh-

I TRUST: CompUSA to deliver custom solutions borhoods, from Brooklyn Heights to Brighton Beach, with the list of for my business. participating restaurants. Some spots see revenue nearly triple during the Dine in Brooklyn promotion, which was expanded At CompUSA, we know that one size doesn’t fi t all. We offer best-in-class products from leading brands like HP this year to 12 days from nine and and tailor solutions that meet your needs today and will scale as your business grows. With our 23-year technology moved up from April. Diners get a heritage and our network of more than 10,000 CompUSA TechPros, we provide end-to-end service that includes three-course meal for $21.12,a play on Brooklyn’s ZIP code prefix: 112. complete installation, repair, and maintenance of your technology solutions. Trust your technology needs to CompUSA “It turns every single night into a Business Services. Saturday night, as far as our receipts go,” Mr. Paritsky says. “That’s good for everybody—our servers,who get tips, and the kitchen staff, who get a lot of overtime.” Brooklyn car ser- For more information on how vices also benefit, ferrying satisfied we can help your business, diners back to Manhattan at the call 1.866.4CompBZ or visit end of the night. www.compusabusiness.com. Dine in Brooklyn is the handi- work of Brooklyn’s ubiquitous cheerleader, Borough President Marty Markowitz, who lines up corporate sponsors and state fund- ing to pay for marketing. Let us design a custom HP ProLiant ML310 HP Color LaserJet 3600n The event is advertised in news- solution starting with these HP G4 Server A quick, reliable color printer products for small business. An affordable, single processor for your business with speeds papers, featured on Brooklyn’s tower server designed to up to 17 pages per minute. tourism site—visitbrooklyn.org— provide the solid network Starting at $699.99* and trumpeted loudly by Mr. foundation essential to fuel (after $100 instant savings) Markowitz himself. thriving small offi ces. #334502 Starting at $1,825.99* “Every time the camera is on #52627658 *Offers Good Through April 30, 2007. Marty, he mentions restaurant 37671 3/07 week,” Mr. Paritsky says. —erik engquist

18 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 19 3/15/2007 3:15 PM Page 1

REAL ESTATE INSIDE Developers are turning from condos to rental buildings PAGE 23 Planning chief Amanda Burden takes on tough questions PAGE 25 Deals 4th law firm in Times tower PAGE 27

DANIEL DOCTOROFF says, “We have done almost everything we wanted to do From without having actually bricks hosted the Olympics.” to glass towers Preservationists riled by landmark group’s fondness for cutting edge

BY LISA GOFF

in the late 1980s, architect Peter Bafitis spent four years getting the Landmarks Preser- vation Commission to approve his design for a sedate, 26-sto- ry tower at 455 Central Park West, which rises behind the brick turrets of a landmarked Victorian hospital. But getting the commission’s OK a few years ago for an office building $250K planned at 433 LPC’S BUDGET hike for 2007, Broadway, also buck ennis used to revive in a historic a 5-member district, was survey team painless. “The LPC is operating under a very differ- OLYMPIC PAYOFF ent aesthetic today,” says Mr. Bafitis, a principal in the firm RKT&B.“I’m thrilled with the formed the basis for the city’s push for the 2012 Olympics, BY ANNE MICHAUD change.” City lost the with every sporting event,dormitory,transportation site For 25 years after its found- and ceremonial arena located along its two axes. ing in 1965, the LPC was the 2012 bid, but it was 1994 when daniel doctoroff, then an ambitious New York lost the Olympic campaign to London, standard-bearer for historic investment banker, began researching what he described but a strange thing happened on the way to defeat.Most preservation in New York. as “underused” city neighborhoods. One thing that struck of the developments envisioned along the X are moving Chaired by veterans of the development him was that New York was sitting on miles of prime wa- forward. In fact, Mr. Doctoroff and others who worked movement, it often contradict- terfront obstructed by decaying industrial buildings. with him on the bid argue that it was the prime driver of ed the mayor and routinely out- projects move He mapped out a giant X that crisscrossed the city, the city’s economic development boom. raged developers. But under highlighting areas ripe for development, many of which “We are unique in Olympic bidding history in that See THROWING on Page 21 ahead anyway could be connected by water transport.The X eventually See OLYMPIC on Page 20

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March 19, 2007 | Crain’s New York Business | 19 CNYB 03-19-07 A 20 3/15/2007 3:17 PM Page 1

REPORT REAL ESTATE

how hard it can be to get anything replaced in time for baseball’s open- done in this town.” ing day in 2009. Olympic bid paying off for city However, some observers ques- Fresh Kills, long a dumping tion the extent to which the ground for city trash, is slated to en- Continued from Page 19 Olympic bid haspropelled econom- ter the land-use approval process we have done almost everything we 2012 PROJECTS: THEN AND NOW ic development, saying it cannot be within weeks, to become the city’s wanted to do without having actu- Selected sites. Olympic plan Current plan credited for all the changes. largest public park. The Olympic ally hosted the Olympics,” says Mr. Kenneth T. Jackson, a Columbia equestrian areas have been junked at Doctoroff, now the city’s deputy HUDSON YARDS, MANHATTAN University history professor, says the Staten Island site,but mountain- mayor for economic development Olympic Stadium peace in the streets has been essential. bikers will find a plan for a rough-ter- and rebuilding. Extension of No. 7 subway; residential and commercial development “The reduction in the crime rate rain, challenging downhill course. For example, Mr. Doctoroff OLYMPIC AQUATIC CENTER AT WILLIAMSBURG WATERFRONT PARK, BROOKLYN has been one of the most important The Jacob K. Javits Convention points to downtown Brooklyn, Outdoor pool for swimming, diving, synchronized swimming and water polo events things to happen, and there are a Center on the West Side, consid- which was slated to host gymnastics 28-acre park at Bushwick Inlet in north Brooklyn whole lot of fathers of that,” he says. ered too small to compete for con- competitions and has just been ap- BRONX OLYMPIC VELODROME AND ARENA “People are no longer afraid to go ventions even as it opened in the proved for an arena, albeit for Nets 8,000-seat facility with 250-meter cycling track and badminton courts out at night or to live in questionable mid-1980s, is receiving a $1.68 bil- basketball. An Olympic-size public Community sports recreational facility and extension of Pier 5 esplanade neighborhoods.” lion overhaul. It was to have hosted pool will open in Flushing Meadows, STATEN ISLAND OLYMPIC CYCLING CENTER Still, he believes that Mayor Olympic weightlifting, tae kwon do Queens, by year’s end.The first tow- Mountain-biking course within Fresh Kills Michael Bloomberg and his admin- and fencing. er of the Queens West housing com- Mountain-biking course and 13 miles of paths for walking, running and bicycling istration have done much to restore “They used the Olympic dead- plex, next to the intended Olympic OLYMPIC REGATTA CENTER AT FLUSHING MEADOWS-CORONA PARK, QUEENS confidence in New York—no small line to get it moving,” Mr. Kriegel Village site, will be ready in July. Canoeing and kayaking warm-up area, indoor pool for water polo feat after the Sept. 11 attacks. “It’s a says of City Hall. And bonds were sold in January to 70,000-square-foot facility with Olympic-size pool and NHL-standard hockey rink busy time,” Mr. Jackson says, “and Developer Stephen Ross, who extend the No. 7 subway line to the Source: NYC Economic Development Corp. and NYC2012 bid book you must remember that just five served on the executive committee of far West Side of Manhattan. Instead years ago, people thought the sky- NYC2012, says that the Bloomberg of providing transportation to the in- scrapers were going to empty out.” administration effectively redirected famous football stadium that helped north Brooklyn waterfront. What’s face of the city,”says Jay Kriegel,who He believes that this administra- the Olympics plan to keep the city at sink New York’s bid for the 2012 more, as the two men reviewed en- was executive director of the city’s tion, unlike most others before it, the top of global destinations for summer games, the extension will vironmental aspects of developing Olympic committee, NYC2012. will leave a physical legacy in the business headquarters. fuel commercial and residential rede- Olympic sites, Mr. Doctoroff says “The last five-year period,in the his- form of housing and infrastructure. “Mayor Bloomberg and Dan velopment of the Hudson Yards area. that his eyes were opened to the tory of the city,has given us a level of Projects that were tied up in years Doctoroff looked at the city as a Mr. Doctoroff ’s long-ago analy- need for sustainable development. development that is pretty much un- of delays are now entering the con- company,” says Mr. Ross, chairman sis, done in partnership with urban That insight has led to the equaled.” struction phase, allowing New York of The Related Companies. “They planner Alex Garvin of Yale Univer- Bloomberg administration’s 25- to begin reclaiming its reputation as know your company has to keep sity, also paved the way for the re- year-growth study, Plan NYC. Changes aren’t easy a city that gets big things done. moving forward to stay competitive.” zoning and revitalization of Hudson “The Olympic bid was a catalyst mr. kriegel, a onetime aide to The Mets’43-year-old Shea Sta- Yards, downtown Brooklyn and the that would profoundly change the Mayor John Lindsay, adds, “I know dium in Flushing, Queens, will be COMMENTS? [email protected]

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20 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 21 3/15/2007 3:22 PM Page 1

REPORT REAL ESTATE Throwing stones at glass towers

Continued from Page 19 Mayor Michael Bloomberg, a con- noisseur of contemporary architec- ture, the commission has become a much easier sell for developers with dazzling designs. While architects like Mr. Bafitis couldn’t be happier, preservationists are livid. They are attacking the LPC head-on by taking their case directly to the City Council and, most recently, to the courts. “The landmarks process in New York today is a poisonous combina- tion of secrecy and lack of independ- ence,”says Kate Wood,executive di- rector of Landmark West.“It’s hard to imagine how things could get any worse.” But LPC Chairman Robert Tierney says he is proud of the com- mission’s reputation for supporting innovative design. “I’m not apologetic for encourag- ing and promoting the best architec- ture,” Mr. Tierney says. “If it’s done in historic districts, all the better.” Seduced by design

he also defends the LPC’s recent buck ennis record, noting a $250,000 budget MATERIAL MATTERS: “The problem isn’t the size—it’s the glass,” Andrew Berman of the increase for this year that allowed Greenwich Village Society for Historic Preservation says about a planned condo building. him to revive a five-member survey team. “We’re on track to designate 1,000 buildings by the end of the fis- tential landmarks and “get out in They are especially troubled by glass cal year,” he says, more than in the front of the [landmarking] process, structures like the Hearst Building, previous five years combined. which we haven’t been able to do in designed by Sir Norman Foster, and The survey team “will allow us to over a decade,” Mr. Tierney says. Jean Nouvel’s design for a condo- get a handle on the universe” of po- Critics are still agitated,however. minium at 40 Mercer St.,which they insist previous commissions never would have allowed. And, they say, the recent budget bump doesn’t JEWELS IN THE BOROUGHS make up for the cuts made under for- PATTI VECONI DIDN’T KNOW A BRACKET from a mullion when she started the mer Mayor Rudy Giuliani. campaign to landmark Prospect Heights, Brooklyn, last fall. She gathered 20 Simeon Bankoff, executive di- volunteers in her living room for a crash course in neighborhood architecture. rector of the Historic Districts Then they hit the pavement with clipboards and cameras. Council, says commissioners are “Some homeowners were hostile at first because they thought we were routinely seduced by dazzling archi- tecture. “At hearing after hearing, from Atlantic Yards,” says Ms. Veconi, a music teacher. “When they realized you can hear them urging applicants what we were up to, they were much friendlier.” toward design solutions when they historic Many Manhattan neighborhoods have been designated should just be saying, ‘No, you can’t districts, in which development is restricted to preserve an area’s character. build that in a historic district.’ ” Now that large-scale projects like Atlantic Yards have hit the boroughs, On March 20, for example, the residents of Queens and Brooklyn are organizing and lobbying the Landmarks New-York Historical Society will Preservation Commission for historic status. make its third bid in its quest to Groups like Ms. Veconi’s, whose preliminary results must be verified by build a residential tower on top of the LPC, are crucial to the designating process. Budget cuts eliminated the its headquarters at West 77th Street commission’s survey team in the early 1990s. Reinstated last year, the team and Central Park West.And though comprises just five people for the entire city. the LPC recently snubbed Sir Nor- Queens resident Jeffrey Kroessler helped survey the postwar bungalow man’s latest design for a glass addi- neighborhood of Sunnyside, which will be considered for historic district tion to 980 Madison, it left the door status this month. The application has received a sympathetic response from open for subsequent entries. LPC Chairman Robert Tierney, who has made landmarking in the boroughs a priority during his tenure. ‘Wonderfully negotiable’ Crown Heights North in Brooklyn is expected to be landmarked soon, architects are emboldened by the joining Douglaston Hill in Queens, Stapleton Heights on Staten Island, LPC’s eagerness to work things out. Fieldston in the Bronx and Gansevoort Market in Manhattan. Earlier this month, the commission But activists like Mr. Kroessler and Ms. Veconi know that achieving historic rejected a Beyer Blinder Belle de- status isn’t permanent protection. sign for a glass tower at 224 Fifth “The LPC has been extraordinarily responsive and open, visiting Sunnyside Ave.—not because it was glass, but numerous times and answering the community’s questions,” Mr. Kroessler because the glass extended all the says. “But the committee isn’t consistent” about safeguarding a way to the ground, which would neighborhood’s character, he adds. make the structure clash with its Frustrated with what he sees as the LPC’s foot-dragging, Queens masonry neighbors. Councilman Tony Avella has introduced legislation to make it harder for “It’s very hard to imagine” an ar- chitect even submitting such a de- developers to obtain demolition permits when there are delays in approving a sign to earlier commissions, says the historic district. Rick Bell, executive director of the He points to Richmond Hill, where residents have worked for years to get a local chapter of the American Insti- hearing from the LPC. “Meanwhile,” Mr. Avella says, “we’re losing that tute of Architects. “Issues of scale, neighborhood house by house.” materials and proportion have be- See PRESERVATION on Page 22 CNYB 03-19-07 A 22 3/15/2007 3:26 PM Page 1

REPORT Preservation fight

Continued from Page 21 cure historic status for a swath of the come wonderfully negotiable.” West Village waterfront—some- With an LPC that is now the thing the group has been requesting city’s de facto design panel, preser- for decades. It has now applied for vationists are rallying the troops to South Village designation. lobby the City Council and Plan- ning Commission. In January, they Pro-contemporary culture sued Mr. Bloomberg for failure to mr. berman agrees that the LPC’s make official appointments when penchant for modern design is a se- commissioners’ terms had expired. rious problem, saying that architect For the first time, local groups are William Pedersen’s concept for a planning a Lobby Day for New York condo building at 122 Greenwich and possibly Albany, mod- Ave. is a case in point. eled on a national event. “Eleven stories, 100% Landmark West now 10 0% undulating glass walls and lobbies the City Council di- GLASS by far the largest building COMPONENT rectly via letter and e-mail in a condo ever built in the Greenwich campaigns, and a daily blog planned in the Village historic district,” brings attention to emer- West Village Mr. Berman says. “The gencies. Vigilant members problem isn’t the size—it’s of the group recently saved the the glass. There’s a culture at City 19th-century Dakota Stable on Hall that’s pro-contemporary, cut- Amsterdam Avenue from the ting-edge design.” wrecking ball, which had already Peg Breen, president of the New taken out the windows. York Landmarks Conservancy, says: “The preservation community Using campaign strategies has not been as politically active and at the greenwich village Soci- astute as it could be in demonstrat- ety for Historic Preservation, Exec- ing a constituency. The movement utive Director Andrew Berman has evolved, and it needs to keep pursues similar strategies. A letter- evolving.” writing campaign and mass atten- dance at zoning meetings helped se- COMMENTS? [email protected]

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22 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 23 3/15/2007 4:00 PM Page 1

REPORT REAL ESTATE Condo developers find it’s better to build rentals

Market changes, tax breaks lead to burst of activity, but boom may not last

BY JUDITH MESSINA

developer jeffrey levine has just completed demolition on a site at 11th Avenue and West 30th Street in West Chelsea where he plans to put up a 34-story, 370-unit rental building, the first he has done since 2001. He’s one of numerous developers who are jumping back into the rental market, taking advantage of high rents and state and city tax breaks to help finance projects they would have shunned a few years ago. Some projects are new, while others stem from condominium conver- sion projects that became too risky, given the softening market.The re- newed interest comes after a stretch of several years when condomini- ums dominated development in the city. “This project would not have been feasible had rents not moved up in the last year or two,” says Mr. Levine, a principal in Douglaston Development. The burst of activity may not last, developers warn.New limits on tax-

exempt bonds—and tougher rules buck ennis that, among other changes, require JEFFREY LEVINE of Douglaston Development is putting up a 34-story, 370-unit rental building in affordable units to be integrated West Chelsea. He says that higher rents make the project feasible. into market-rate buildings to quali- fy for the city’s tax abatement pro- gram—could put a damper on resi- condos is much higher,all things be- Unlike condo developers, who dential development. ing equal, developers would rather take their profit and run, players in “[Changes in the city’s tax abate- develop condos,” says Sam Chan- the rental market are more patient, ment program are] going to affect dan, Reis’ chief economist. aiming to hold on to a property for value,” says Edward Baquero, a real Now, the situation is reversed. the income, the appreciation and estate investor and managing part- Condo prices are cooling while rents the tax advantages. ner of Coalco New York.“To Many have owned their get in and buy a piece of parcels for years. Silverstein property is so expensive that Properties, which is starting you have no choice but to sell foundation work at West or rent it to the luxury seg- 42nd Street and 11th Av- ment of the market to make enue for two 61-story rental it work.” towers, has owned the land since the 1980s. Mr. Levine Condo climate says he leased the land for his new york city has always West Chelsea building from been a renters’ town—some people who have owned it 70% of its inhabitants lease “for centuries.” their apartments. But the strong housing market in re- Affordable units cent years provided big and in addition, moderate and immediate profits for condo low income units make up developers. The demand for 20% of virtually every rental sites for such projects then project these days under

drove up land prices so much lindström bekka 80-20 programs that provide that only condos were viable. developers with millions of In 2001, 5,628 new rental apart- are increasing. Average asking rents dollars in essential tax breaks. ments came on line in New York; in in the city rose 7.5% last year to as Other developers are making the 2006, that number dropped to high as $60 to $70 a square foot,and financials work by using models that 1,668. With thousands of rental Reis is predicting steady growth in combine rentals and condos in the buildings converted to condos, in rental inventory through 2011. same building, cashing in on the 2006 New York actually saw a 0.2% “Rents have risen enough so that high-end condos and at the same drop in the number of rental units, the numbers actually work,” says time qualifying for city and state tax according to Reis Inc., a Manhattan Steven Kohn, president of real es- breaks. A Related Companies luxu- real estate data and analysis firm. tate investment bank Sonnenblick- ry project in West Chelsea, the “Because the yield on the new Goldman Co. See RENTALS on Page 24 CNYB 03-19-07 A 24 3/15/2007 4:02 PM Page 1

REPORT REAL ESTATE

CRAIN’S BREAKFAST FORUM, APRIL 19 Rentals

SPITZER TO SPEAK ABOUT ALBANY REFORM Continued from Page 23 NEW YORK GOV. ELIOT SPITZER will discuss his first three then be questioned by Crain’s editor Greg David and a Caledonia, will have 260 rental months in office and provide an update on his efforts to second journalist. apartments, including affordable reform Albany at the next Crain’s New York Business The cost of the program is $60 for those who reserve by units, and 160 condos. Related used Breakfast Forum, on Thursday, April 19. April 12 via credit card (American Express, Visa or the same model at 1 Carnegie Hill, The forum will be held at the New York Hilton, at 1335 MasterCard only). After that date, the cost will be $70. a 450-unit building on East 96th Sixth Ave. The event, which is sponsored by Cushman & To make reservations for the forum, go to Street. Wakefield, Aetna and the Partnership for New York City, will www.NewYorkBusiness.com and click on “Events,” fax a “We were able to create a sophis- begin with a networking breakfast at 8 a.m. The program copy of your business card and credit card information to ticated capital structure which ad- will begin promptly at 8:30 a.m. “Spitzer Forum” at (212) 210-0499, or call the Crain’s dresses some of the challenges, such The governor will make brief opening remarks; he will Events Hotline at (212) 210-0739. as the high cost of land and high

bloomberg news construction costs,” says The Relat- ed Companies Vice Chairman David Wine. New plans even investors who bought build- ings with an eye to turning them AVENUE OF THE into luxury condos are rethinking their plans in light of the demand for 1185 AMERICAS rental units. Commercial mortgage broker Ronnie Levine says he has two clients who backed off plans to convert buildings in midtown and on the Upper West Side to condos. ROCK “With the strength of the rental market and the softening of the con- do market,the developers wound up SOLID changing course and taking them back to rentals,” says Mr. Levine, managing director with Meridian Capital Group. Still, developers and investors BLOCK warn that new limits on cheap gov- 83,822 sf on three tower fl oors The state cap with stunning river views on tax-exempt bonds affects LOCATION several projects Direct underground access to Rockefeller Center in the works

QUALITY

• New lobby and elevator cabs ernment financing will discourage • Effi cient fl oor plates residential development. Last • New institutional ownership month, the state capped the amount of tax-exempt bonds available to de- velopers in part because applications Impressive tenant roster: for new rental developments are out- Hess Corp. running the state’s bonding capacity. King & Spalding The cap affects several projects al- National Hockey League (NHL) ready in the works,including the Sil- verstein and Douglaston develop- Bank of America ments on the far West Side. Those American Express two developers won’t comment on whether their plans are endangered. Tax abatement revisions another worry comes from the revisions in the city’s 421-a tax abatement program,which will lim- Gary M. Rosen, Sr. Managing Dir. it benefits and expand the areas of 212.216.1687 the city where 80-20 housing is re- [email protected] quired to qualify for tax relief, start- ing next year. Fewer projects will Howard J. Tenenbaum, Exec. VP qualify for the abatement, which 212.216.1685 will sharply reduce property tax. [email protected] “In the short term,it will slow the pace of development,” says The Re- lated Companies Mr. Wine. “De- velopers are going to have to put to- gether an ever-more complicated financing structure and building www.slgreen.com structure.”

COMMENTS? [email protected]

24 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 25 3/15/2007 3:34 PM Page 1

REPORT

is the right one. How do you view the THERE’S A NEW KID IN TOWN… debate, and who is the guide for the Bloomberg administration? IBA, the country’s leading engineering and consulting firm that A: Of course, both Jane Jacobs specializes in the design, inspection, and repair of exterior and Roberts Moses were right to a envelope construction has opened a New York office. & certain degree. Robert Moses got QA Whether it’s new construction or the investigation and things done, and Jane Jacobs argued repair of existing buildings, we have the experience and for diversity and texture. capabilities to identify and eliminate potential failures and But a lot of people misinterpret Burden: existing problems in exterior wall cladding, glazing, roofing, Jane Jacobs because she welcomed and waterproofing systems. diversity. She knew there was going to be serendipitous change in the Call us any time for QUALITY consultation, inspection and A big city city, and she understood this was a repair every time. big city that welcomed that change. But what she encouraged was not needs big only diversity, but that the public and the affected communities participate in the planning process projects that would make that happen. And

in fact, that is what we are doing IBA CONSULTING AND ENGINEERING, PLLC now. Planning chief 299 BROADWAY, SUITE 1605 | NEW YORK, NY 10007 She also really embraced the optimistic about P: 212.232.0224 | F: 212.232.0288 idea that if you’re planning for WWW.IBACONSULTANTS.COM communities, you plan from the INNOVATIVE Columbia plan; BUILDING AND ground up.That’s where Robert ARCHITECTURE BOCA RATON | MIAMI | TAMPA BAY | PENSACOLA sets Coney rules Moses began to fatally fail. He CONSULTANTS LAS VEGAS | SEATTLE | NEW YORK looked at the city—I think he even manda burden, head rented planes to fly over it—and FUI07-02 of the city Planning saw it as patterns of roads and Department and chair connectivity. of the City Planning He failed to look at the Commission, tackles importance of the strength of Aquestions about some of New neighborhoods and of building on York’s most important develop- individual neighborhood strengths. ment and planning issues in this If he had planned that way, his Q&A excerpted from a recent planning would have been much Crain’s New York Business break- more sustainable, endurable and, in fast forum. fact, welcomed.The best projects he did were his public open-space Q: Were you surprised by the extent projects, like Jones Beach and and vociferous nature Orchard Beach. of the opposition to the That’s where he Atlantic Yards project ‘Atlantic Yards focused on the fine in Brooklyn? was a gaping detail, from the A: As I recall, the ground up. Atlantic Yards had hole in the deep and wide Q: Columbia support throughout heart of University has been the community. Brooklyn. It attempting to begin There was vociferous development of a opposition, as there will provide a second campus in West always is with big fantastic venue’ Harlem for several projects. But we’re a years, but there’s been big city, and we need very little progress. Is big projects. Atlantic the university’s project Yards was a gaping hole in the heart vital for the city, and is there any hope of Brooklyn. Now it will provide a of a compromise between Columbia fantastic venue for a sports facility, and its opponents in the community? retail and entertainment, and it is A: Columbia is a major and on top of a transit hub, which fits important institution in this city. our strategy of sustainable growth. It’s a major employer; actually, all private universities are very much a Q: Amid a surge in development, a critical part of the economy.The debate has been reopened on whose expansion of Columbia is very vision of how to develop the city— important to the school’s future. that of Robert Moses or Jane Jacobs— Continued on Page 26

bloomberg news GARMENT DISTRICT restrictions on office space will be overhauled, Ms. Burden says.

March 19, 2007 | Crain’s New York Business | 25 CNYB 03-19-07 A 26 3/15/2007 3:36 PM Page 1

REPORT REAL ESTATE

PLANNING CHIEF IN ACTION Burden: City needs big projects

To view Amanda Burden’s appearance Continued from Page 25 together.They haven’t gotten the property wants? At the same time, the together yet, but I’m totally A: Our rezoning plans for Coney M at the Crain’s breakfast forum, go to Community Board 9 in upper confident they will. And it’ll be a Island will provide substantial newyorkbusiness.com and click on “Video.” Manhattan has a very clear vision total win-win for both Columbia opportunities for residential for how they would like to see their and the community. development, let me reassure you of community developed. And it’s a that. very different vision than the one Q: Four years ago, the city I don’t know if you know that Columbia has. announced plans to revitalize Coney Coney Island used to be the No. 1 I’m confident there will be an Island, but little has happened since. tourist destination in the entire agreement during the city’s land- What is the status of the plan to rezone world—and the amusements are use review process.There’s the area, and do you favor including part of its iconic character, its something about the process that residential use in the entertainment magic, its worldwide renown and focuses the mind and gets two sides zone, as the landlord who owns most its brand name. Amusements are incompatible with immediately adjacent residential use, so we do not think residential use immediately adjacent to the amusements is appropriate.

Q: As the number of apparel jobs in the city shrinks, the garment district continues to be governed by regulations restricting the amount of space that can be used for offices. Isn’t it time to revisit these archaic rules? A: Within the month, we will be announcing a plan to overhaul those restrictions. We are the fashion capital of the world, and the fashion industry is a huge, huge component of our economy. But the garment center has perhaps the most anachronistic Your plans are spectacular. zoning restrictions in the entire city, and it’s a bad place to invest in buildings. It’s not a good place to even work, because of the lack of investment. So what we will be doing is But could your legal strategy relaxing the zoning requirements and restrictions in the area, and liberalizing the kind of uses that use a new blueprint? can happen there. We will not be allowing residential use there because the garment center provides a very important supply of Class B and C office space. We think preserving [that] office space is a very important niche in the city’s economy for emerging businesses.

COMMENTS? [email protected]

EXPLORING CAREERS

Cohen & Perfetto: A personalized approach to real estate law. GROUP SEEKS Itʼs a simple, but profound, premise: Each client represents an important relationship. HOST BUSINESSES And every one of those relationships demands our complete attention and dedication. THE GREATER NEW YORK At Cohen & Perfetto, this is the philosophy that drives us. We make the connections Councils Exploring program that build these relationships, adding depth and value to every partnership we forge, seeks businesses to host and every transaction that transpires. Whether your needs involve real estate, govern- sessions offering high school ment incentives, banking, zoning, or litigation, itʼs not just a deal to us: Itʼs your deal. students the chance to explore Learn more at www.cohenperfetto.com. various industries and make better decisions about career choices. Exploring puts together groups of 15 to 25 students. They meet at the host busi- nesses after school for four or 444 Madison Avenue, 5th Floor more sessions, learning about educational requirements, C New York, NY 10022 P COHEN & PERFETTO LLP salaries and what people in Tel: 212-488-1300 Fax 212-813-0767 Attorneys at Law their selected fields actually do. www.cohenperfetto.com For more information, please call Exploring director Bob Hayes at (212) 651-2808, or visit www.bsa-gnyc.org.

26 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 27 3/15/2007 6:37 PM Page 1

REPORT REAL ESTATE Deals Times Co. building adds 4th large law firm to roster

tered in Topeka, Kan., has signed a Goodwin Procter seven-year lease for the entire 10th taking 15-year lease; floor, or 11,000 square feet. “It took us only six months to West Coast company lease up the building—there was a sneaks into NYC lot of demand,” says Ben Waller, a broker at ABS Partners Real Estate, which represented the landlord. nother law firm is “Aquent liked the space because Av- taking space in The K-SWISS’ sneakers are pointed east. enue A|Razorfish had built it out to New York Times Co. be cutting-edge and creative,” he headquarters, at 620 says. Eighth Ave., between nancial services firm Legg Mason. Newmark Knight Frank repre- AWest 40th and West 41st streets. —julie satow sented Aquent; PBS Realty repre- Goodwin Procter will join Osler sented Payless ShoeSource. Hoskin & Harcourt, Covington & In other deals, Vila & Vila 75th Burling and Seyfarth Shaw at the Calif. shoemaker Street Associates—run by Bob Vila, 52-story tower, which is set to open bounds into NYC former host of the public television this spring. show This Old House—has signed a Goodwin Procter is finalizing a west coast sneaker maker five-year lease for 2,680 square feet 15-year lease for 215,000 square K-Swiss Inc. is trekking East. on the ninth floor. Biotech firm feet on floors 23 through 30. Ask- The footwear firm has signed a Antigenics has signed a five-year ing rent at the building is $87 a five-year lease for the 3,200-square- lease for 5,380 square feet, also on square foot. foot penthouse at 1239 Broadway,be- the ninth floor. The new office space consists of tween West 30th and West 31st Cushman & Wakefield Inc. rep- a direct lease for 150,000 square feet streets. It will open the office next resented both tenants. from the Times Co., which owns month. Talent representation firm Cre- half of the 1.6 million-square-foot K-Swiss, based in Westlake Vil- ative Artist Agency has expanded its building, and a direct lease for lage, Calif., is known for its classic- office space at 162 Fifth to 33,000 65,000 square feet from developer looking,low-top tennis shoes.It will square feet. It has signed an eight- International Group Rockefeller Forest City Ratner. use the space to house offices and a year lease for the entire eighth floor, Goodwin Procter is moving showroom to entertain prospective or 11,000 square feet, and will now from 92,000 square feet at 599 Lex- retail buyers. occupy floors six through eight. ington Ave.,between East 52nd and The company had searched for a All of Creative Artist’s leases will East 53rd streets. “highly creative space with lots of expire in 2015. ABS Partners was Rockefeller Group This is the law firm’s second at- light and views,” says Peter Pacific, the sole broker on this transaction. International, Inc. tempt to lease space. It had nearly the Kaufman Organization broker —julie satow completed a 200,000-square-foot who negotiated the deal on behalf lease at 1095 Sixth Ave.,but the deal of the tenant. is pleased to announce The building’s owner, Justin Cold Stone readies Management, had outfitted the last city stores the appointment of space with hardwood floors, two terraces and a large fireplace to help ice cream retailer Cold Stone Vincent E. Silvestri attract a big-name fashion firm.The Creamery is taking the final licks of uninterrupted view from all four its New York City expansion. to the position of sides was another selling point. The company, based in Scotts- “It’s a spectacular space in a B- dale,Ariz.,recently signed a 10-year class building,” says Sam Stein, a lease for a 560-square-foot store, at Chief Operating Officer Justin Management broker who 2023 Fifth Ave., between East 125th worked on the deal.Asking rent was and East 126th streets. Because of Rockefeller Group $39 a square foot. the steep rents in Manhattan, the International, Inc. —elisabeth butler Harlem location is among the last shops that Cold Stone plans to open in the metro area. Flatiron tower full “They are only making conserva- after 5 new leases tive deals that are profitable for their franchisees,” says Justin Glenn, a five companies have leased more broker with Schuckman Realty who Jonathan D. Green than 41,000 square feet at 162 Fifth negotiates Cold Stone’s real estate President & CEO Ave. Rockefeller Group , bringing the Flatiron district deals in the city. International, Inc. 620 EIGHTH: Only a few floors are unclaimed. building to full occupancy. The company has opened near- 1221 Avenue of the Americas Boston-based staffing firm ly a dozen stores in New York since New York, New York 10020 Aquent, which works for 90 of the 2004. Cold Stone became popular (212) 282-2000 fell apart when the building was sold companies on the Fortune 100 list, by allowing customers to personal- to The Blackstone Group earlier has leased the former offices of in- ize their ice cream selections with rockefellergroup.com this year as part of its buyout of Eq- teractive ad agency Avenue A|Ra- mix-ins like Oreos and cherry pie uity Office Properties Trust. zorfish. That outfit recently took filling. Neither Goodwin Procter nor its over Google’s old office space on Mr. Glenn negotiated the representative, Studley,would com- Broadway. Harlem deal for both Cold Stone ment. CB Richard Ellis, which Aquent’s seven-year lease is for Creamery and property owner Nu- oversees the leasing of the Eighth 11,000 square feet, or the entire top bian Realty. The asking rent was Avenue skyscraper for Forest City floor of the 11-story building,which about $125 a square foot for the Ratner, also had no comment. is at the corner of East 21st Street. ground floor. The space also comes Only a handful of single floors The asking rent for the floor was with a 700-square-foot basement Comprehensive Real Estate Services and Solutions TM remain available in the Times Co. $53 a square foot. for storage. building. Other tenants include fi- Payless ShoeSource, headquar- —elisabeth butler

March 19, 2007 | Crain’s New York Business | 27 nb12p28_29cls.qxp 3/15/07 3:53 PM Page 28

BOOKKEEPING SERVICES FINANCIAL PLANNER a PUBLIC & LEGAL NOTICES

Notice of Qualification of Gracox LLC. Notice of Qualification of KTR Leasing LLC. NOTICE OF FORMATION of Animal Vocation Authority filed with NY Dept. of State on Authority filed with Secy. of State of N.Y. Resources, LLC. Articles of Organization 2/2/07. Office location: NY County. LLC (SSNY) on 1/10/07. Office location: NY filed with the Secretary of State of NY formed in Delaware (DE) on 12/17/04. Secy. County. Principal business location: 140 (SSNY) on 1/12/07. Office location: NY of State designated as agent of LLC upon Broadway, 43rd Fl., NY, NY 10005. LLC County. SSNY has been designated as whom process against it may be served. formed in Delaware (DE) on 12/13/04. SSNY agent upon whom process against it may Secy. of State shall mail process to: c/o TAG designated as agent of LLC upon whom be served. The Post Office address to BUSINESS SERVICES Associates Holdings LLC, 75 Rockefeller process against it may be served. SSNY shall which the SSNY shall mail a copy of any To place your Plaza, NY, NY 10019. DE address of LLC: mail process to: c/o Corporation Service process against the LLC served upon Corporation Service Co., 2711 Centerville Rd., Company (CSC), 80 State Street, Albany, NY him/her is C/O the LLC, P.O. Box 4178, classified Ste. 400, Wilmington, DE 19808. Arts. of Org. 12207. DE address of LLC: c/o CSC, 2711 Grand Central Station, New York, NY filed with DE Secy. of State, 401 Federal St., Centerville Road, Ste. 400, Wilmington, DE 10163. Purpose of LLC: to engage in any ad call Dover, DE 19901. Purpose: any lawful activity. 19808. Arts. of Org. filed with DE Secy. of lawful act or activity. State, 401 Federal St., Ste. 4, Dover, DE John Gallagher Notice of Formation of QUIK PARK BLOOM 19901. Purpose: any lawful activity. Notice of Formation of 164-11 Jamaica LLC. Arts. of Org. filed with Secy. of State Avenue LLC. Arts. of Org. filed with NY Dept. @ 212-210-0189 of N.Y. (SSNY) on 1/23/07. Office location: Notice of formation of limited partnership of State on 2/27/07. Office location: NY NY County. SSNY designated as agent of (L.P.) Name: Yorkshire Towers Company County. Secy. of State designated as agent of LLC upon whom process against it may be Successor II, L.P. Cert. of LP filed with SSNY LLC upon whom process against it may be RELOCATION SERVICES served. SSNY shall mail process to: The on 1-08-2007. Off. Loc: New York County. served. Secy. of State shall mail process to: LLC, 247 W. 37th St., 6th Fl., NY, NY 10018. SSNY designated as agent of the LP, upon c/o Wharton Realty, 20 E. 46th St., Ste. 1200, Purpose: any lawful purpose. whom process against it may be served. NY, NY 10017, principal business address of SSNY shall mail a copy of any process to: c/o the LLC. Purpose: any lawful activity. Notice of Formation of Adam Shopkorn Art Lynn Schneider, 60 East 42nd Street, NY, NY Advisory Group LLC. Arts. of Org. filed with 10165. The name and address of each general Notice of Formation of 62 PEARL STREET NY Dept. of State on 2/1/07. Office location: partner is available from SSNY. Term: until ASSOCIATES, LLC, a domestic Limited NY County. Secy. of State designated as agent 3-09-2032. Purpose: To manage, improve, Liability Company (LLC). Articles of of LLC upon whom process against it may be lease and otherwise deal with the property Organization filed with Secretary of State served. Secy. of State shall mail process to: located at 305 East 86th Street, NY, NY. on 11/29/06. NY Office location NEW YORK Adam Shopkorn, 1 Astor Place, Apt. 4V, NY, County. Secretary of State is designated as NY 10003. Purpose: any lawful activity. Notice of Formation of a Limited Liability agent upon whom process against the LLC Company (LLC): Name: VELO-LEBO, LLC, may be served. Secretary of State shall Notice of Formation of 40 Mercer LLC. Arts. Articles of Organization filed with the mail a copy of any process against the LLC of Org. filed with NY Dept. of State on Secretary of State of New York (SSNY) served upon him/her to C/O THE LLC, 211 2/2/07. Office location: NY County. Secy. of on 01/04/2007, Office location: New York W. 56TH STREET, STE. 10M, NEW YORK, State designated as agent of LLC upon County, SNNY has been designated as NY 10019. Purpose: To engage in any lawful whom process against it may be served. agent of the LLC upon whom process act or activity. EXECUTIVE RECRUITER Secy. of State shall mail process to: c/o against it may be served. SSNY shall mail a Marianne Schmitt Hellauer, DLA Piper US copy of process to: C/O VELO-LEBO, LLC, NOTICE OF FORMATION OF LIMITED LLP, 6225 Smith Ave., Baltimore, MD 21209. 253 West 72 Street Apt 907, New York, NY LIABILITY COMPANY. NAME: MAN AND 10023. Purpose: Any Lawful Purpose. POSITIONS AVAILABLE Purpose: any lawful activity. WIFE LLC. Articles of Organization were filed Latest date upon which LLC is to dissolve: with the Secretary of State of New York No specific date. (SSNY) on 10/17/06. Office location: New Reporter – Ad Age Notice of Formation of Lighthouse Life Agency, LLC. Arts. of Org. filed with NY York County. SSNY has been designated as Dept. of State on 2/13/07. Office location: Notice of Qualification of Key Energy Services, agent of the LLC upon whom process Advertising Age’s New York office is looking for a reporter to cover NY County. Principal business address: 420 LLC. Authority filed with NY Dept. of State on against it may be served. SSNY shall mail a 1/17/07. Office location: NY County. LLC the fast-changing, $65-billion TV industry. This is an exciting and Lexington Ave., Ste. 1430, NY, NY 10170. copy of process to the LLC, 24 Fifth Avenue, Secy. of State designated as agent of LLC formed in Texas (TX) on 12/31/06. Secy. of Apartment 1115, New York, New York 10011. extremely demanding assignment on the worlds leading media and upon whom process against it may be State designated as agent of LLC upon whom Purpose: For any lawful purpose. marketing publication. The successful candidate will: served. Secy. of State shall mail process to: process against it may be served. Secy. of c/o Stursberg & Associates, LLC, 405 State shall mail process to: c/o CT Notice of Formation of 65-15 ALDERTON, Corporation System, 111 8th Ave., NY, NY • Be a hard-working, experienced daily reporter Lexington Ave., Ste. 4949, NY, NY 10174. LLC, a foreign Limited Liability Company Purpose: any lawful activity. 10011, registered agent upon whom process (LLC). Articles of Organization filed with • Have a proven track record of big scoops and smart analysis may be served. TX and principal business Secretary of State on 1/17/07. NY Office • Know/understand workings of the TV business address of the LLC: 1301 McKinney, Ste. location: NEW YORK County. Secretary of Name of LLC: 517 EAST 82ND STREET LLC. 1800, Houston, TX 77010. Arts. of Org. filed • Get a strong, multi-faceted national platform for their work Arts. of Org. filed NY Sec. of State 10/10/06. State is designated as agent upon whom with TX Secy. of State, 1019 Brazos, Austin, process against the LLC may be served. • Be given guidance from knowledgeable editors Princ. off. loc.: NY Cty. Sec. of State designated TX 78701. Purpose: any lawful activity. as agent of LLC upon whom process against it Secretary of State shall mail a copy of any • Receive a competitive compensation and benefits package may be served. Sec. of State shall mail a process against the LLC served upon copy of process to the LLC: c/o Centaur THREE KAYAS LLC Articles of Org. filed him/her to C/O THE LLC, 21 E. 40TH ST., To apply for this position, please visit our website at www.crain.com Properties LLC, 551 Madison Ave., NY, NY NY Sec. of State (SSNY) 11/7/06. Office in 12TH FL., NEW YORK, NY 10016. Purpose: 10022. Purpose: any lawful activity. NY Co. SSNY desig. agent of LLC upon To engage in any lawful act or activity. whom process may be served. SSNY shall mail copy of process to 257 W. 39th St., We thank you for your interest in Crain Communications, and invite Notice of Formation of 310 LEX PARKING DIGITAL PHALANX, LLC, Articles of Org. filed Studios 39 - 10th Fl., NY, NY 10018-3106. you to visit our website, as positions are updated regularly. Crain MGMT LLC. Arts. of Org. filed with Secy. of N.Y. Sec. of State (SSNY) 17th day of January, Purpose: Any lawful purpose. Communications is an Equal Opportunity Employer. State of N.Y. (SSNY) on 1/11/07. Office 2007. Office in New York Co. at 9 East 75th location: NY County. SSNY designated as Street, Suite 2C, New York, New York 10021. agent of LLC upon whom process against it Notice of Qualification of Squam Ventures, SSNY desig. agt. upon whom process may be General Manager-Interactive may be served. SSNY shall mail process to: LLC, App. for Auth. filed Sec'y of State served. SSNY shall mail copy of process to 9 c/o Aronauer, Goldfarb, Re & Yudell, LLP, (SSNY) 10/31/02. Office location: NY East 75th Street, Suite 2C, New York, New County. LLC org. in DE 10/30/02. SSNY Advertising and Creativity are seeking a General Manager-Interactive 444 Madison Avenue, 17th Fl., NY, NY York 10021. Reg. Agt. upon whom process 10022, Attn: Michael S. Scher. Purpose: designated as agent of LLC upon whom may be served: Spiegel & Utrera, P.A., P.C. 45 to champion the growth of our burgeoning digital products and video any lawful purpose. process against it may be served. SSNY John Street, NYC 10038 1 800 576-1100 division. This position will report to the Associate Publisher and shall mail copy of process to 645 Fifth Ave., Purpose: Any lawful purpose. work closely with Video Editor and Producer, sales team and Ad 18th Fl., NY, NY 10022, the principal office Notice of formation of Limited Liability addr. of LLC. Cert. of Form. on file: SSDE, Age and Creativity editor. The ideal candidate will be a creative Notice of Formation of Jubilee Time Company (LLC). The Treats Truck, LLC. L.L.C. Townsend Bldg., Dover, DE 19901. Productions, LLC, Art. of Org. filed Sec'y of thinker and have strong organizational skills. Candidate must have Articles of Organization filed with the Secretary Purpose: any lawful activities. State (SSNY) 1/19/07. Office location: NY interactive sales experience, with video experience a plus. of State of NY (SSNY) on 12/6/06 N.Y. Office County. SSNY designated as agent of LLC location: NY County. Business location. SSNY NOTICE OF FORMATION OF LIMITED upon whom process against it may be served. has been designated as an agent upon whom LIABILITY COMPANY. NAME: 698 TITAN SSNY shall mail copy of process to Shukat Job Responsibilities include: process against it may be served. The Post PROPERTIES LLC. Articles of Organization Arrow Hafer Weber & Herbsman LLP, Attn: Office address to which the SSNY shall mail a were filed with the Secretary of State of Allen Arrow, 111 West 57th St., Ste. 111, NY, • Spearhead and champion digital and video initiatives within sales copy of any process against the LLC served organization New York (SSNY) on 01/18/07. The latest date NY 10019. Purpose: any lawful activities. upon him/her is C/O the LLC. 100 Bank Street, of dissolution is 12/31/2107. Office location: • Act as digital product expert for sales calls and project planning #3A NY, NY 10014. The Principal Business New York County. SSNY has been designated Address of the LLC is: 100 Bank Street, Notice of Formation of DPA HAVEN, LLC. as agent of the LLC upon whom process Arts. of Org. filed with Secy. of State of NY • Meet with appropriate people within client organizations to further #3A NY, NY 10014. Purpose/character of against it may be served. SSNY shall mail a LLC: a bakery business specializing in special (SSNY) on 1/14/2005. Office location: NY client participation within Ad Age and Creativity’s digital platforms. copy of process to the LLC, 626 Tenth Avenue, County. SSNY designated as agent of LLC orders for pick-up and delivery and service Suite 1A, New York, New York 10026. • Assess interactive vendors’ potential for Ad Age & Creativity from a mobile retail bakery truck. upon whom process against it may be Purpose: For any lawful purpose. served. SSNY shall mail process to: c/o • P&L Responsibility for Internet budgets The Dermot Company, 320 W. 57th St., NOTICE OF FORMATION OF LOUD VENTURA Notice of Qualification of WKP-Spier, LLC. • Budgeting responsibility for Ad Age & Creativity digital products 5th Fl., NY, NY 10019. Term: until 1/7/2099. LLC. Articles of Organization filed with the Authority filed with Secy. of State of NY Purpose: any lawful activity. • Project Management responsibility for Ad Age and Creativity Secretary of State of NY (SSNY) on 8/14/06 (SSNY) on 8/21/06. Office Location: NY digital initiatives. Office location NEW YORK County. SSNY County. LLC formed in Delaware (DE) on has been designated as agent upon whom 5/11/06. SSNY designated as agent of LLC Advertise on • Explore and execute syndication deals process against it may be served. The Post upon whom process against it may be Office address to which the SSNY shall mail served. SSNY shall mail process to: Attn: a copy of any process against the LLC William McCartin, Esq. Sankel, Skurman & www.newyorkbusiness.com To apply for this position, please visit our web site at www.crain.com served upon her is C/O the LLC 527 West McCartin, 750 Third Ave, NY, NY 10017. 143rd Street #53. New York, NY 10031. Address required to be maintained in DE: We thank you for your interest in Crain Communications and invite Purpose of LLC: to engage in any lawful act 160 Greentree Dr., Ste. 100, Dover, DE 11904. Call John Gallagher you to visit our web site as positions are updated regularly. Crain or activity. Street address of Principal Business Arts. Of Org. filed with DE Secy. of State, 401 location is: 527 West 143rd Street #53. New Federal St., Ste. 4, Dover, DE 19901. @ 212-210-0189 Communications is an Equal Opportunity Employer. York, NY 10031. Purpose: any lawful activity.

28 | Crain’s New York Business | March 19, 2007 nb12p28_29cls.qxp 3/15/07 3:54 PM Page 29

PUBLIC & LEGAL NOTICES LUXURY PROPERTIES

Little Green Dreams LLC formation notice. Notice of Formation of Mommies On Demand, Notice of Qualification of The Carlyle SOUTHAMPTON Articles Organization filed w/ NY Sec. State LLC. Articles of Org. filed with NY Sec. of Apartments LLC. Authority filed with Secy. of 12/15/06. LLC office in NY county. NY State (“SSNY”) on 8/1/06. Office in New State of N.Y. (SSNY) on 1/16/07. Office location: Sec. State designated as agent upon whom York County. SSNY is designated agent for NY County. Principal business location: 7701 process against LLC may be served. Principal service of process. SSNY shall mail process Forsyth, Suite 1025, St. Louis, MO 63105. LLC & Post Office address to which NY to principal business address: 440 West End LLC formed in Delaware (DE) on 1/10/07. Sec. State shall mail copy of any process Avenue, Suite 14C, NY, NY 10024. Purpose: SSNY designated as agent of LLC upon against LLC served upon: 601 W57 St. 38c, Any lawful purpose. whom process against it may be served. NY, NY 10019. LLC purpose: To engage in SSNY shall mail process to: c/o Corporation any lawful act or activity. NEW YORK BURGER CO. FRANCHISING Service Company, 80 State Street, Albany, NY LLC Articles of Org. filed NY Sec. of State 12207. DE address of LLC: 2711 Centerville (SSNY) 2/15/07. Office in New York Co. Road, Ste. 400, Wilmington, DE 19808. Arts. Notice of Qualification of ADG L5 Dev. Co. of Org. filed with DE Secy. of State, 401 LLC, App. for Auth. filed Sec'y of State SSNY desig. agent of LLC upon whom process may be served. SSNY shall mail Federal St., Dover, DE 19901. Purpose: any (SSNY) 5/30/06. Office location: NY County. lawful activity. LLC org. in DE 6/20/05. SSNY designated as copy of process to Einbinder & Dunn LLP, agent of LLC upon whom process against it 104 W. 40th St., NY, NY 10018. Purpose: may be served. SSNY shall mail copy of Any lawful purpose. Notice of Formation of GRYPHON NEW process to c/o Alexander S. Ludwig, 645 YORK LLC. Arts. of Org. filed with Secy. of Madison Ave., 14th Fl., NY, NY 10022. DE Notice of Formation of Rizzo Management, State of N.Y. (SSNY) on 6/14/06. Office office addr.: Form-a-corp (DE) LLC, 901 LLC, Art. of Org. filed Sec'y of State location: NY County. Principal business Market St., Wilmington, DE 19801. Cert. of (SSNY) 11/28/06. Office location: NY location: 80 West 40th St., Ste. 52, NY, NY Form. on file: SSDE, Townsend Bldg., Dover, County. SSNY designated as agent of LLC 10018. SSNY designated as agent of LLC DE 19901. Purpose: any lawful activities. upon whom process against it may be upon whom process against it may be served. served. SSNY shall mail copy of process SSNY shall mail process to: Rubin, Di Paola to P.O. Box 923, NY, NY 10185-0923. & Di Paola, 405 Park Avenue, Ste. 802, NY, Notice of Qualification of Cedar Hill Real Estate Purpose: any lawful activities. Latest date NY 10022. Purpose: any lawful activity. GP, LLC. Authority filed with Secy. of State of 12/31/2056. N.Y. (SSNY) on 1/24/07. Office location: NY DCD ASSET MANAGEMENT LLC App. For County. LLC formed in Delaware (DE) on Notice of Qualification of Prudential Bache Auth. filed NY Sec. of State (SSNY) 2/23/07. 1/8/07. SSNY designated as agent of LLC Securities, LLC. Authority filed with Secy. of LLC was organized in DE on 11/18/05. Office upon whom process against it may be served. State of NY (SSNY) on 12/31/03, as amended. in NY Co. SSNY desig. As agent of LLC upon SSNY shall mail process to principal business Office location: NY County. LLC formed in whom process may be served. SSNY to mail location: Amachie Ackah, 747 Third Avenue, Delaware (DE) on 3/10/03. SSNY designated copy of process to 11 E. 44th St., Ste. 901, 33rd Fl., NY, NY 10017. DE address of LLC: as agent of LLC upon whom process against NY, NY 10017. Principal office at 2711 c/o Corporation Service Company, 2711 it may be served. SSNY shall mail process to Centerville Rd., Ste. 400, Wilmington, DE Centerville Road, Ste. 400, Wilmington, DE the principal office of the LLC: 1 New York 19808. Cert. of Org. filed with SSDE, John G. 19808. Arts. of Org. filed with DE Secy. of Plaza, 13th Fl., Law Dept., NY, NY 10292. Townsend Bldg., 401 Federal St., Dover, DE State, 401 Federal St., Dover, DE 19901. Arts. of Org. filed with DE Secy. of State, Div. 19901. Purpose: Any lawful purpose. Purpose: any lawful activity. of Corps., Townsend Bldg., Dover, DE 19903. Purpose: any lawful activity. “Notice is hereby given that a license Notice of Formation of WARREN & NEPHEW, “Notice is hereby given that a license (#TBA) for Liquor has been applied for LLC, a domestic Limited Liability Company (#TBA) for Liquor has been applied by, ALN Restaurant Inc., at retail, in a (LLC). Articles of Organization filed with for by, P & B Food Corp, at retail, in a Restaurant, under the ABC Law, at Secretary of State on 4/9/03. NY Office Restaurant, under the ABC Law, at 155 128 Mulberry St. NY, NY 10013 for location: NEW YORK County. Secretary of E. 52 St. NY, NY 10022 for on-premises on-premises consumption” State is designated as agent upon whom consumption” process against the LLC may be served. Notice of Formation: AYAT, LLC. Art. of Org. Secretary of State shall mail a copy of any Notice is hereby given that a license, number filed with Sec. of State of NY (SSNY) on 11/3/06. process against the LLC served upon him/her 1189531 for an on-premises liquor license has Office loc.: NY County. SSNY designated as to C/O DOUGLAS A. LOBEL, P.C., 25W. 43RD been applied for by the undersigned to sell agent of LLC upon whom process against it ST. NEW YORK, NY 10036. Purpose: To beer, liquor and wine at retail in a restaurant may be served. SSNY shall mail process to: engage in any lawful act or activity. under the Alcoholic Beverage Control Law at 1623 Third Ave., Suite 23-K, NY, NY 10128. 120 West 44th Street, New York, New York Purpose: Any lawful activity. 10036 for on-premises consumption. Notice of Qualification of PCV ST OWNER Applicant 120 MP, LLC Philippe Bernard Notice of Qualification of 399 Knollwood LP, Authority filed with Secy. Of State of NY Lessee LLC. Authority filed with Secy. of (SSNY) on 11/14/06. Office location: NY Notice of Qualification of Avalon Albee, LLC. State of NY (SSNY) on 1/12/07. Office location: County. LP formed in Delaware (DE) on Authority filed with NY Dept. of State on NY County. LLC formed in Delaware (DE) on AUCTION 11/13/06. SSNY designated as agent of LP 2/22/07. Office location: NY County. Principal 1/10/07. SSNY designated as agent of LLC upon whom process against it may be business address: 2900 Eisenhower Ave., upon whom process against it may be Coming Up served. SSNY shall mail process to: c/o Alexandria, VA 22314. LLC formed in served. SSNY shall mail process to: c/o Real Estate Auction National Registered Agents, Inc., 875 Delaware (DE) on 2/20/07. NY Secy. of State National Registered Agents, Inc., 875 Ave of 2754 Hickory Blvd. Avenue of the Americas, Ste. 501, NY, NY on the Calendar designated as agent of LLC upon whom the Americas, Ste 501, NY, NY 10001, also Bonita Beach, Florida 10001, also registered agent. DE address of process against it may be served. NY Secy. of registered agent. Address required to be LP: 160 Greentree Dr, Ste 101, Dover, DE State shall mail process to: c/o CT maintained in DE: 160 Greentree Dr., Ste 101, 19904. Name/address of genl. ptr. available Corporation System, 111 8th Ave., NY, NY Dover, DE 19904. Arts. of Org. filed with DE from SSNY. Cert. of LP filed with DE Secy. 10011, registered agent upon whom process Secy. Of State, 401 Federal St., Ste 4., Dover, March 26th of State, Federal & Duke of York Sts., may be served. DE address of LLC: DE 19901 . Purpose: any lawful activities. Dover, DE 19901. Purpose: Real estate Corporation Trust Co., 1209 Orange St., Health Care leasing and development. Wilmington, DE 19801. Arts. of Org. filed with Notice of Formation of Off-Court, LLC. Arts. of DE Secy. of State, 401 Federal St., Ste. 4, Org. filed with NY Dept. of State on 10/20/06. NOTICE OF FORMATION OF The Dover, DE 19901. Purpose: any lawful activity. Office location: NY County. Principal business April 2nd WonderFactory LLC. Articles of Organization address: 2 Penn Plaza, Ste. 2430, NY, NY Sat. April 21st at 12:00 p.m. filed with the Secretary of State of New York Notice of formation of OPM MANHATTAN 10121. Secy. of State designated as agent of Open at 11:00 am for preview & registration Wealthy New Yorkers (SSNY) on 02/24/2005. N.Y. Office Location: LLC a NYS LLC Formation filed with SSNY LLC upon whom process against it may be The home you've been waiting for! Custom beach hose with New York County. SSNY has been designated on 12/23/05. Off. Loc.: New York Co. SSNY served. Secy. of State shall mail process to: 75 ft. of frontage on the Gulf of Mexico. Victorian Revival archi- as agent of LLC upon process against it may designated as agt. of LLC, upon whom process c/o CT Corporation System, 111 8th Ave., NY, tecture reflecting Old Key West details & motifs. Details create be served. The P.O. address to which the may be served. SSNY shall mail copy of process NY 10011, registered agent upon whom casual beach atmosphere. Magical sunrises & sunsets can be April 9th SSNY shall mail a copy of any process to: The LLC, 99 John St., #2310, NY, NY 10038. process may be served. Purpose: any lawful viewed from the multiple balconies & lanais. 7584+/- sq. ft., against the LLC served upon him/her is C/O Purpose: Any Lawful purposes. activity. 5 bedrms, 7 1/2 baths, 3 car garage, private elevator & 4 story Small Business the LLC David K. Leitner Esq., Troutman open foyer. Attention to detail is exceptional. The romantic Sanders LLP., 405 Lexington Avenue, New Master Suite offers his/hers full baths & Master Suite lanai. York, NY 10174. The Address of the LLC is The sounds of the surf will lull you to sleep & the morning call 28 West 25th Street, New York, NY. 10010. of the gulls will invite you to walk barefoot in the white sugary April 16th Purpose of LLC: any lawful act or activity. REAL ESTATE sands enjoying the sights, sounds & smell of the Gulf. Proudly presented by Rose Auction Group, LLC & in cooperation with Real Estate OFFICE SPACE John R. Woods Realtors this ultimate residence could be yours Notice of Qualification of Rector 469 LLC. exclusively at Auction. Authority filed with NY Dept. of State on 10/30/06. Office location: NY County. LLC Bid on-line at bethroseauction.com April 23rd formed in Delaware (DE) on 10/17/06. Secy. EXECUTIVE OFFICE SUITES Auction will be held on-site. of State designated as agent of LLC upon International Business whom process against it may be served. 877-696-7653 Secy. of State shall mail process to the principal 212.573.0909 business address of the LLC: c/o Williams Real Estate Co. Inc., 380 Madison Ave., NY, April 30th NY 10017, Attn: General Counsel. DE address FurnishedOfficesNYC.com MIAMI BEACH/FLORIDA of LLC: c/o Capitol Corporate Services, Inc., The New York Film 15 E. North St., Dover, DE 19901. Cert. of MIDTOWN COMMERCIAL TRUMP OCEANFRONT CONDOS Industry Form. filed with DE Secy. of State, Div. of REAL ESTATE To place your OWN YOUR LUXURY CONDO TODAY! Corps., Townsend Bldg., Dover, DE 19901. TRUMP GRANDE & TRUMP TOWERS Purpose: any lawful activity. For All office & loft SPACES classified ad call 500-50,000 SF Buy directly from the Developer & Save $$ Furnished Condo Hotel units from $325k May 7th UNDER MARKET SUBLETS-NO FEE! John Gallagher 1-4 Bedrm Residential Condos from $875k Meeting Planners Guide Search our listings @ www.midcomre.com Ask for details on our FLY-BUY Program www.newyorkbusiness.com Call Paul 212 947-5500 x 100 @ 212-210-0189 Call Exclusively Baronoff 305.213.3606

March 19, 2007 | Crain’s New York Business | 29 Project4 3/5/07 12:37 PM Page 1

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37926_M77529_NY 1 3/2/07 8:23:55 PM CNYB 03-19-07 A 31 3/15/2007 6:31 PM Page 1

BUSINESS CORPORATE LADDER Turning focus to global hot spots PAGE 33 arnold adler arnold

GOTHAM GIGS Tech head ROBERTO CRUZ, 23, has a very cool title: deputy counter- intelligence agent on the Best Buy “Geek Squad.” Translation: He works on computers, replacing hard drives and setting up Wi-Fi networks, for example.The tech whiz, who works out of the Staten Island Mall store, makes house calls for customers in distress. Customers pay $59 to $299. HANDOUTS Mr. Cruz says he’s frequently offered food or drink. He isn’t forbidden from accepting freebies, but always declines. “I have to say no,” he says. “I’m there to do a job.” TEACHING One customer put a video camera on a tripod to tape a one-on-one session with the pro about enhancing photos so that she could refer to it later. “I love helping people,” says Mr. Cruz, who has been fixing computers since he was 7. HELP DESK When he can’t solve a problem, it’s usually because a computer has a virus. “I’ll sit there and rack my brain to figure out why I can’t get rid of it,” says Mr. Cruz, who will then call a LEMONY, FRESH: fellow agent for assistance. Jim Pechous whips —amanda fung up vibrant dishes in Upstairs’ open kitchen. EXPERT OPINIONS buck ennis HOW DO I GET INTO FANTASY BASEBALL? BY STEVEN SHAW to start a league, you need six to eight friends who are ew yorkers can now get four-star food similarly crazy about the Eateries’ at no-star prices, if they can fit in very small seats. sport. Major sites like At the restaurant Upstairs at Bouley Bakery & mlb.com and espn.com host Market—which does turn out to be upstairs from leagues that you can join or create, and they will form a Bouley Bakery & Market—even svelte TriBeCa team for you based on your four-star ladies have difficulty extracting themselves from player rankings.The computer a corner banquette table without knocking over will automatically calculate the furniture and triggering a domino effect that standings; you just have to check in regularly to update could bring down the whole dining room. For fare deals bigger-boned men, like this author, the resulting feat of contortion is worthy your roster. Once you decide you enjoy it, you can start Classy, low-cost food spots of Cirque du Soleil. thinking about a more NSpace constraints are the only drawback of a new generation of Manhat- competitive league for next crop up; learn to sit skinny tan restaurants, however.These imaginative, See EATERIES’ FARE DEALS on Page 32 season where you won’t be going up against my 6-year- old nephew. CHEF’S TASTING CHEF’S TASTING —adam lewin MENU AT PER SE MENU AT Columnist IN THE TIME DEGUSTATION WINE Fantasy Baseball Index WARNER & TASTING BAR IN THE magazine CENTER $250 THE EAST VILLAGE $50 DIFFERENCE 400%

March 19, 2007 | Crain’s New York Business | 31 CNYB 03-19-07 A 32 3/15/2007 6:35 PM Page 1

BUSINESS LIVES Eateries’ fare deals MOMOFUKU BRINGS EASTERN ZING TO E.VILLAGE momofuku ssäm bar isn’t a Kore- Continued from Page 31 Jean Georges and Le Bernardin. an restaurant, but the chef is Kore- eclectic joints—call them “haute In the spirit of postmodernism, an-American, and many of the cheap”—are trampling culinary and hamburgers and haute cuisine now menu items are inspired by Asian social boundaries. co-exist effortlessly, the distinction ingredients. Time was, haute cuisine meant between appetizers and entrées is Rising star David Chang works priciness, with disregarded and the only standard with a dizzying palette of flavors, ABOUT THE AUTHOR the attendant for including a dish on the menu is textures and temperatures. He cre- formality in that it be delicious. ates dishes ranging from elegant New York-based food food,surround- At each of the following restau- contemporary (a real showstopper writer Steven Shaw is the author of Turning ings and ser- rants, you can walk in without a includes bright orange Santa Bar- the Tables: The Insider’s vice. Now, pa- reservation, order anything from a bara uni, black tapioca pearls and Guide to Eating Out. trons can enjoy single $17 dish to an elaborate whipped white tofu) to rustic (soft four-star-qual- multicourse feast and experience rice-flour cakes with ground pork ity food in relaxed,barlike surround- some of the best food in town with- sausage provide an Asian take on ings. In many cases, the meals are out devoting 60 days to a reserva- spaghetti Bolognese) to minimalist prepared by young chefs who’ve cut tion, six hours to a meal and $600 to (choose from four artisanal country noah kalina noah their teeth at restaurants like Per Se, the check. hams, which arrive unadorned). The best dish on the menu is restaurant—great for acidity” in a bottle of chawan mushi, a delicate custard, solo diners, especially South Australian spar- with black truffle and escargots. skinny ones. The res- kling Shiraz. SEAFOOD, ‘BOULEY BURGER’ Whatever you order, be sure to get a taurant has a feel side of fried brussels sprouts, espe- that’s decidedly “EV” LOCATION/RESERVATIONS TAKE UPSTAIRS TO NEXT LEVEL cially if you think you don’t like (that’s East Village). 207 Second Ave., at East brussels sprouts. You may even find an unexpectedly 13th Street; (212) 254-3500.No david bouley has been the diver scallops are Most of the narrow stools are at knowledgeable young server in reservations; go for dinner right at feeding New York since among the best speci- a long bar running the length of the jeans telling you of the “awesome 6 p.m. or be prepared to wait. 1985, and most chefs of mens anywhere. Por- his era are tired and out tions—unlike the ta- of touch. But his latest bles and chairs—are restaurant, Upstairs, quite large, so a single DEGUSTATION couldn’t be more vibrant plate can easily serve as and connected with to- a whole meal. OFFERS TAPAS day’s food culture. Though the sushi is While Mr. Bouley of high quality, it’s no WITH GUSTO makes occasional ap- better than what’s avail- pearances, chef Jim Pe- able at many other the latest addition to Jack chous mans the stoves restaurants, so ordering Lamb’s EV mini-empire is Degus- most days, cooking al- sushi is not making the tation Wine & Tasting Bar, a nuevo most every dish in an best use of your Up- Spanish tapas bar. open kitchen that dom- stairs dining dollar. At Spain is the global leader of the inates the crowded sec- the casual end of the culinary avant garde, and at Degus- ond-floor dining room. spectrum, the “Bouley tation, chef Japanese, Italian and buck ennis Burger” is definitive. Wesley Gen- French-influenced new American Cooking classes are offered at the ovart captures dishes mingle here, but each dish is restaurant on some afternoons. some of that firmly rooted in a single style. Stel- spirit with lar ingredients drive the menu, with LOCATION/RESERVATIONS dishes that are buck ennis seafood the strongest category. 130 West Broadway, at Duane Street; not quite what lope, with shallot other restaurants. Chatham cod with sweet peas (212) 608-5829. No reservations; the they seem. confit and hot pep- and wild mushrooms offers a re- best times to get tables are Tuesday For example, per. Don’t try to cut LOCATION/RESERVATIONS minder of cod’s silken virtues, and and Wednesday evenings before 8 p.m. the “tortilla” is reinterpreted as two one in half. 239 E. Fifth St., just off Second poached quail eggs, each in its own Degustation has only 16 seats, Avenue; (212) 979-1012. Reservations bite-size, paper-thin potato enve- which makes it a bit quieter than the are a must at peak dinner hours. A SOUPÇON OF THE SAVORY SATISFIES AT ROOM 4 DESSERT THE MODERN GETS TO THE ART OF BISTRO DINING

will goldfarb has the talent to be apricot chibouste and Cocoa the modern is the elegant new the pastry chef at every four-star Krispies, and a tasting of “Apples in restaurant in the Museum of Mod- restaurant simultaneously. He has Various States.” ern Art. To get there, you pass chosen not to play second fiddle to Given their styles, you’d be for- through the Bar Room,where much any chef by opening Room 4 Dessert given for thinking that Room 4 of the action is right now. in NoLIta. His globally influenced Dessert and Momofuku Ssäm Bar Gabriel Kreuther and Ari creations contain some surprising have common ownership. They Bokovza’s artful creations offer the savory components—tarragon,sher- don’t,but they’re kindred spirits; tell bold flavors of bistro fare with the ry, even Red Bull—but open minds your server at “Momo Ssäm” that finesse of haute cuisine.The three- and palates will be rewarded. you’re headed to Room 4 Dessert, panel menu features a range of There are two sizes of desserts; and you’ll be asked to “say hey to small plates—cold on the left, in- smaller ones come in parfait glasses, Will and the gang from us.” creasing in temperature and sub- and larger ones with four compo- stance as you move to the right. nents are arranged on long platters. LOCATION/RESERVATIONS Two plates make a nice lunch,three (The seats come in only one size:pe- 17 Cleveland Place, between Kenmare a filling dinner. tite, at a long bar.) My favorites are and Spring streets; (212) 941-5405. Arctic char tartare with basil and “Chocobubbles,” served in a glass Reservations optional, but highly trout roe is one of the only interest- layered with chocolate mousse, recommended on weekends. ing fish tartares to come along this century, and the sorrel soup with roasted foie gras and barley is an es- say on how to enhance flavors by giving them a bitter edge. Downright spacious by post- modern standards, the Bar Room is LOCATION/RESERVATIONS Reservations suggested, though more open range than china shop. 9 W. 53rd St., between Fifth and there are always tables set aside

erin gleason Some of the chairs even have arms. Sixth avenues; (212) 333-1220. for walk-ins.

32 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 33 3/15/2007 3:53 PM Page 1

BUSINESS LIVES CORPORATE LADDER Shyama Venkateswar Humanitarian’s agenda Passionate advocate her time with her two young chil- dren, she is the type of person need- PERSONNEL FILE determined to make ed to make preoccupied Americans care about impoverished countries ORGANIZATION World Hunger hunger action center thousands of miles away. Action Center a must-see for visitors New directions TITLE Executive director in her previous job as a director at AGE 40 BY MIRIAM KREININ SOUCCAR the Asia Society, Ms. Venkateswar RÉSUMÉ Director, social issues launched the Asian Social Issues program, Asia Society simple glance at a Program, a division that hosts con- bottle of water on the ferences and events dealing with PERSONALITY TYPE High-energy table is enough to get matters like conflict,peace-building FAVORITE RESTAURANT Joe’s Shyama Venkateswar and HIV-AIDS. One event she ini- Shanghai in Flushing, Queens started. It reminds her tiated,the Human Rights Film Fes- Aof the lack of clean drinking water in tival, had people lining up around the developing world, which then the block. lion for the build-out.Mercy Corps, leads to a discussion of women’s re- “The Asia Society is more based in Portland, Ore., needs to productive rights and on to an im- known for art and business, and raise another $3.75 million for con- passioned speech about human traf- Shyama single-handedly created a struction and $2.5 million for the ficking. new direction for it,” says Nancy first operating budget.

“It’s hard for me to switch off, Barry,president of Enterprise Solu- The initial target audience will buck ennis even when I’m on vacation,” Ms. tions to Poverty, who has worked be schoolchildren, educators and Venkateswar says. “I need to learn with Ms. Venkateswar. “She will be policy-makers.Though the content “Our job is to try and make this says has only gotten worse since she how to stop.” very successful creating a center on is troubling,Ms.Venkateswar hopes next generation realize they are part moved here 20 years ago to attend Fortunately for the world’s dis- poverty.” the museum will eventually become of global issues,” Ms. Venkateswar Smith College. advantaged, she won’t be stopping The World Hunger Action Cen- a must-see for city visitors. says. “We have to be as open and as “You stop at a traffic light and see anytime soon. ter, scheduled to open in June 2008, ESI Design, owned by Ed cutting-edge as possible to reach a 5-year-old with a 1-year-old in her Last month, the native of Cal- will take up 4,000 square feet on the Schlossberg,will create the exhibits, these kids.” arms knocking at your window— cutta was hired to run the World ground floor of a condo building go- including video dispatches from and that’s your welcome to India,” Hunger Action Center, an interac- ing up in Battery Park City next to refugee camps, a worldwide disaster Deep roots she says. “As someone with family tive museum being built in lower Rockefeller Park. map and a station offering informa- her drive stems from her experi- and deep roots there, I wonder how Manhattan by humanitarian agency The museum is part of the Bat- tion about ways people can help. ence in her homeland. Raised in a I can make a difference. I think Mercy Corps. tery Park City Authority’s revital- The museum may also use tech- middle-class family, Ms. Ven- about this constantly.” Though Ms. Venkateswar’s fer- ization plan for the area; the agency nologies like video gaming to get its kateswar was always aware of India’s vor for human rights may cut into is donating the space and $1.25 mil- message across. severe income disparity—which she COMMENTS? [email protected]

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March 19, 2007 | Crain’s New York Business | 33 CNYB 03-19-07 A 34 3/15/2007 3:55 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING George Decker, 36, was promoted to named chief financial officer. He had Booz Allen Hamilton Inc.: Gilon I. Irwin, senior vice president from vice president. been vice president of finance at Natural HOT JOBS 51, was promoted to senior vice He continues as group creative director. Organics. president from vice president. Karen DeLuca, 31, was promoted to Geller Family Office Services: James A. senior vice president, group media FINANCE & INSURANCE WANTED: VICE PRESIDENT Jacaruso Jr., 46, joined as tax director. He director, from vice president, associate American Stock Exchange: Cliff Weber, had been head of the tax department at media director. 43, was promoted to executive vice OF DEVELOPMENT Charles Pratt & Co. Filter: JC Addison, 41, joined as partner. president, development and strategy, J.H. Cohn: Charles Ludmer, 50, was He had been president of Defiant, from senior vice president, exchange- ORGANIZATION French Institute Alliance Française promoted to managing director of Cohn which he founded. traded funds marketplace. JOB DESCRIPTION Overseeing the budget of the Manhattan-based Affiliated Cos. from president of Cohn Fuel Outdoor: Marc Miller, 31, joined as Scott Ebner, 33, was promoted to senior institute, increasing its visibility and recruiting volunteers Capital. chief operating officer and president of vice president, exchange-traded funds Steven Pinsky, 44, was promoted to Fuel Outdoor Holdings. He had been marketplace, from vice president. MOST IMPORTANT TASKS Developing an endowment program and private equity practice leader and senior vice president of Alloy Out-of- New York Life Insurance Co.: Christopher managing all fund-raising activities continues as partner. Home Advertising. O. Blunt, 44, was promoted to senior UHY Advisors: Mark Capolupo, 44, joined as Ogilvy Action: Ian Thomas, 42, was named vice president and chief operating CREDENTIALS NEEDED An advanced degree and 10 years’ senior-level business development manager. He had executive vice president and managing officer, life and annuities, from executive experience in nonprofits; some proficiency in French preferred been a director at Navigant Consulting. partner. He had been global creative vice president of New York Life SALARY $100,000 to $125,000 director, London. Investment Management. ADVERTISING & COMMUNICATIONS RECRUITER Professionals for Nonprofits Bravo Group: Stacy Pagán, 38, was ARCHITECTURE & DESIGN HEALTH CARE appointed director, retail marketing and Rockwell Group: Christian Arkay- New York Otolaryngology Group: Dr. Jamie DOWNSIDE Finding donors for a somewhat obscure group promotions. She was formerly vice Leliever, 37, joined as director, products. Koufman, 59, joined as director, Voice UPSIDE Working for a unique enterprise president of marketing at IDT Telecom. He had been director, strategic Institute of New York. She had been a Deutsch NY: Lauren Frazza, 41, was innovation and product design, at professor and director at Wake Forest French Institute Alliance Française is one of the largest networks of promoted to executive vice president Skidmore Owings & Merrill. University Voice and Swallowing French-American activities in the United States. Its mission is to increase from senior vice president. She Spacesmith: John Coburn, 36, was Center. the knowledge of French language and culture through educational and continues as group account director. promoted to director of operations from art programs. The group, which had an operating budget of $7 million Courtney Burke, 32, was promoted to senior architect. HIGH TECH & NEW MEDIA last year, recently completed a $19 million renovation of its headquar- senior vice president, director of national Firstborn: Jonnyong Park, 26, joined as buying, from vice president, associate CONSUMER PRODUCTS creative director. He had been creative ters, at 22 E. 60th St. —AMANDA FUNG director, national broadcast group. Alexia Foods Inc.: Robert Lampo, 53, was director at Orion Group BNM.

Imaginova Corp.: David Arcara,44, was promoted to senior vice president joined as vice president and general from vice president and director. Clearly living. manager, consumer media. He had been CB Richard Ellis Group Inc.: Tom Nelson, vice president and managing director of 55, was promoted to Northeast regional custom media at Random House. project management director and Thomas Koletas, 40, joined as vice continues as project management leader president and managing director of for the tristate region. advertising sales, consumer media. He Cohen Brothers Realty Corp.: Steven L. had been vice president of advertising at Lambert, 58, joined as senior vice Green condominiums designed Industry Brains. president of leasing. He had been by world-renowned architect managing director and leasing broker at LAW Murray Hill Properties. Rafael Pelli, The Visionaire Dewey Ballantine: John J. Altorelli, 49, Cushman & Wakefield: Diana Gaines,38, expands the definition of green joined as partner. He had been a partner joined as senior director. She had been living. Luxurious amenities at Reed Smith. senior director at GVA Williams. and design embrace a healthy, Jeffrey A. Potash, 40, joined as partner. Massey Knakal Realty Services: Waleed balanced quality of life that He had been counsel at Reed Smith. Cope, 34, was promoted to sales director is seamlessly connected to its Morrison Cohen: Martin H. Levenglick, from associate. beautiful waterfront setting 51, joined as partner. He had been a Prudential Douglas Elliman: Steven James, shareholder at Heller Ehrman. 58, was promoted to president, New in Battery Park City. Wiggin and Dana: Steven B. Malech,40, York City brokerage, from senior was promoted to counsel from associate. executive vice president and sales Spectacular city and river views ∙ WolfBlock: Leslie J. Levinson, 51, joined director for the East Side offices. Soaring ceiling heights ∙ Floor- as partner. He had been a partner at to-ceiling glass ∙ Rooftop garden Thelen Reid Brown Raysman & Steiner. SERVICES with cabanas ∙ Sky-lit, 50-foot Beverly W.Lubit, 56, joined as partner. Christian & Timbers: Christopher Berger, indoor pool ∙ Luxurious fitness center She had been a partner at Lowenstein 40, was appointed principal. He had and spa ∙ Children’s playroom ∙ Sandler. been a consultant at Heidrick & ® ® Struggles. Custom paneled Subzero , Wolf MEDIA & ENTERTAINMENT The Door: Dianne Morales, 39, was ® and Asko appliances ∙ Superior Billboard: Cindy Mata, 30, was promoted promoted to executive director from indoor air quality ∙ 24-hour garage to director, business development and assistant executive director. Eastern sales, from East Coast Laury Group Inc.: Anne Cox, 48, was Studio, 1, 2, 3 Bedroom and advertising director. promoted to vice president from Hachette Entertainment Group: Paul business coordinator. Penthouse Residences Turcotte, 47, was promoted to senior vice Virginia LoPresto, 48, was promoted to Ownership begins at $725,000 president of corporate sales and vice president, administration, from marketing from vice president and accounting manager. Sales Gallery opening March 2007 publisher of Premiere magazine. Connie Fulton, 43, joined as director of Hearst Business Media: Gretchen Tibbits, public relations. She had been a producer 55 Battery Place, Battery Park City 39, was named vice president, group and writer, corporate and institutional administration. She had been a senior media, at Eclipse Media & Design. www.thevisionaire.com director at ESPN Outdoors Group. Michael Menger, 39, joined as director of Music Choice: Gary Susalis, 30, was new business. He had been director of 212.425.2550 promoted to programming manager business development at Actors from programmer. Connection Inc. Marketing and Exclusive Sales Agent: Nielsen Co.: Mitchell J. Habib, 46, was —adrianne pasquarelli The Marketing Directors, Inc. named executive vice president, global business services. He had been chief Advertising and Creative Marketing: EXECUTIVE PROMOTIONS dbox, inc. information officer, North America consumer businesses, at Citigroup. Crain’s lists the promotion and hiring of New York Oxygen: Mary Murano, 51, was promoted area senior executives on a space-available basis, to president of distribution from with priority given to positions in New York City. executive vice president, affiliate sales. The fastest way to get an announcement into Tango magazine: Carrie Sloan,32,was Crain’s is to submit details online by filling out the Illustrations copyright dbox, inc. named editor in chief. She had been a form at www.NewYorkBusiness.com/submit. All images are artist renderings. The complete offering senior editor at Marie Claire magazine. The Executive Moves column is also available terms are in an Offering Plan available from Sponsor. File online. No. CD-06-0248. Sponsor: Battery Place Green, LLC. REAL ESTATE Crain’s cannot confirm receipt of listings or say Brown Harris Stevens: Elayne Roskin,49, when they will appear.

34 | Crain’s New York Business | March 19, 2007 CNYB 03-19-07 A 35 3/15/2007 3:56 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape wild ride with a medley of calf ’s sweetbreads, the Armenian cured BEST OF BOB LAPE meat basturma and wild mush- rooms—all spiked with the Middle Following are other spots that Eastern seasoning mix called za’atar. garnered three-star reviews. Office & Retail After the galantine, it’s an easy Availabilities: step to turkey ballotine, stuffed with Axia Taverna sweet fennel sausage and broccoli 18 Piermont Road, Tenafly, N.J. 212.594.2700 rabe.Among superior seafood choic- (201) 569-5999. An appealing new slgreen.com es are braised black sea bass in a tar- Greek restaurant from builder ragon and fennel broth, and slow- Michael Parlamis, whose firm has roasted wild Pacific salmon with done a thousand of them.The loca- Reaching New Heights. spicy miso glaze served in dark kit- tion features impressive modern sune-udon (fox noodle) broth. Lob- cuisine and stylish surroundings. ster and sablefish fricassee carries the perfume of shallots and cumin. Gordon Ramsay Virtually boneless braised and at The London seared squab is marvelous with a The London NYC hotel, 151 W. tamarind glaze, preserved lemon 54th St.(between Sixth and Seventh and star anise accents.Meat fanciers avenues), Manhattan. delight in Mr. Nish’s Kobe rib-eye (212) 468-8888. Cool elegance and steak. It’s roasted in its own juices meticulously prepared and served with hints of sage and furu—fer- modern French food are the hall- mented tofu—plus orzo and wild marks of the first U.S.outpost of the ERNEST KLEIN mushrooms. noted Scottish chef. Roasted lamb chops coupled & CO. with addictively gingered confit of Kobe Club lamb shank need no italicizing. 68 W. 58th St. (between Fifth and
FINE FOODS
Nish’s engaging waitstaff can roll Sixth avenues), Manhattan. up the trolley of 14 ripe and ready (212) 644-5623.The best cuts of beef  Same Day Delivery cheeses (three to five choices, de- from Japan, Australia and the Unit- pending on portion size,are $20) be- ed States are served under 2,000  Phone Orders fore or in place of desserts ($12). samurai swords suspended from the Still,the salted nut tart with Bananas ceiling.  Corporate Accounts Foster mousse and brandy ice cream  Catered Luncheons

buck ennis is required eating. Other tempta- Megu Midtown PARTNERS IN THEIR PRIME: Wayne Nish (seated) and Joseph Scalise, who operated March for tions include the crème caramel par- 845 U.N.Plaza (First Avenue at East Located at: 16 years, have created a less formal spot in Nish without sacrificing quality. fait and hazelnut dacquoise. 47th Street), Manhattan. Sixth Ave. and 55th St. Though the length of Mr. (212) 964-7777. Koji Imai’s second Scalise’s wine list is growing,pricing sensational showcase for sushi, 212.245.7720 is very reasonable—and his counsel Kobe beef and a wealth of wines and A FULL SERVICE SUPERMARKET is invaluable. sakes.

Nish stays put, COMMENTS? [email protected]
     P    P a good move      

 March’s affordable food-and-wine pairings. Because prices are much lower replacement features than they were at March, diners might expect a decline in creativity, chef’s global leanings but that’s not the case. In fact, the Manhattan • Grand Central reinvigorated Mr. Nish is flaunting in superb setting the use of exotic ingredients that he formerly “hid.” Thanks to the Inter- he idea of a four- net and increased travel, “things are NISH course dinner prepared different today,”he says.“We want to 405 E. 58th St. (between by Wayne Nish for $59 know what’s going on in every dish.” First Avenue and Sutton Place) is simply irresistible. Guests befuddled by terms like (212) 754-6272 Owner-chef Nish chirashi with bakocha,gai tam,hirame and his wine-wise partner, Joseph or katsuo bushi can refer to a glossary   $ 
  T CUISINE Contemporary global Scalise, have put a more affordable, printed on parchment that is folded informal face on the beautiful East in a square and used as fencing for WINES 110 choices, 31 by the Side town house where their restau- the table candle. Lift it off, and de- glass rant March ran for more than 16 code the recipes. years.Its demise represented the fall Portion size is modest, and pa- DRESS No code of another tree in the rapidly thin- trons may order any combination of NOISE LEVEL Moderate ning forest of formal dining estab- items—several appetizers instead of PRICE RANGE $22-$38, lishments. an entrée, say, or any other way they four-course tasting, $59 The emergence of Nish, howev- please. Those going the à la carte er, is terrific news for many reasons. route may spend up to $75. WINE MARKUP 50%-120% The gifted culinarian of Maltese, Among the appetizers ($12 to CREDIT CARDS All major Japanese and Norwegian origins is $22), ravioli are memorable. The back in the kitchen full-time. The plump, globe-girdling goodies are RESERVATIONS chef is cutting loose with food rich stuffed with littleneck clams playing Recommended in international accents and exuber- off smoky, saline sidekicks of pre- HOURS Dinner every night, ant creations that taste great. served Chinese sausage and salted Harding Twp., NJ – Atop a knoll for sweeping views, this world-class stone manor affords unequalled 5:30-11 p.m. estate living. 7 BRs, 10 baths, and 7 fireplaces. Old World flavored kitchen. Fabulous gardens, The multilevel setting remains black beans.I would go back for that = Outstanding in-ground pool and pool house. Estate manager’s and guest houses. Stable and pastures. 45 minutes one of New York’s most elegant dish alone. to NYC. On 10 acres: $7,500,000; 13 acres: $8,500,000; 16 acres: $10,000,000; 34 acres: dining environments. Service is A delightful entrée of galantine of = Excellent $17,500,000. = Very good Mary Horn 1-888-962-7722 graceful—even without the tuxe- chicken is stuffed with pecorino = Good 6101 dos—and Mr. Scalise has lost none cheese, the Chinese kale called gai www.weichertcapital.com ® ® of his acuity at making perfect lam and pine nuts. Taste buds get a Weichert Capital Properties & Estates is a division of Weichert, Realtors .

March 19, 2007 | Crain’s New York Business | 35 Project3 3/13/07 3:23 PM Page 1

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