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❤ about 25 Things we

NEW YORK BUSINESS The people and places that make the city the economic envy of the world PAGE 14

CUOMO Hoping for THE WAR SHOWS HE’S a more INSIDE GOVERNOR business- TRUMP OF NYC friendly City VILLAGE TOO P. 3 Council? P. 20 P. 9

P001_CN_20170821.indd 1 8/18/2017 5:46:34 PM AUGUST 21 - SEPTEMBER 3, 2017 CRAINSNEW YORK BUSINESS

FROM THE NEWSROOM | JEREMY SMERD | EDITOR IN THIS ISSUE

You can make it here 4 IN CASE YOU MISSED IT 6 WHO OWNS THE BLOCK THE STATE OF THE CITY’S ECONOMY should be viewed as an 7 REAL ESTATE unmitigated success . More New Yorkers are gainfully em- 8 ASKED & ANSWERED Sea levels ployed than ever before (see Fine Print on page 3 for the are rising. upshot of that statistic). And jobs are being created in elds 9 POLITICS Is New York ready? that produce goods and services that non–New Yorkers 10 INSTANT EXPERT consume, which means outside money is pouring in. 11 VIEWPOINTS It’s hard to imagine a better time in the city’s history to be FEATURES a business owner. “You can make money in so many di er- ent ways,” said Ryan Harwood, founder and CEO of Pure- 14 WHY WE LOVE NEW YORK BUSINESS Wow, a fast-growing online women’s lifestyle publisher. 20 THE WAR AT TRUMP VILLAGE “You place a survivor and a hustler in the middle of New You place a survivor York City, they’re going to gure out how to make a living.”  e fruits of that ingenuity are all around us, and they “and a hustler in the are the focus of our cover feature on the 25 ways business- middle of New York es make the city the unique place that it is (see page 14). City, they’re going At the heart of it all are New Yorkers, people who lack easy de nition except that they come from everywhere and are to gure out how to JOSE DER hungry to make it here. New Yorkers are smarter and fast- make a living er than most, impatient and driven. Full of contradiction, P. 25 we are aggressive yet compassionate, permissive yet easily 25 GOTHAM GIGS o ended. We are not laid-back and o en are way too stressed out.  is is why our success is hardly without controversy. For every winner there is 26 SNAPS a loser. Con ict is a way of life here. Who should bene t when a public property is 27 FOR THE RECORD sold?  e council and the MTA are at odds on that score (see ICYMI, page 4). Fear 28 PHOTO FINISH of displacement shadows the debate over development (see page 7). And all those CORRECTION gainfully employed New Yorkers have made getting around town a nightmare (see Ernie Lake co-founded El Media Group. That fact was our editorial, page 3). not reported in “Playlists on the Menu,” published As we hit the homestretch of August, most New Yorkers who can will leave the Aug. 7. city for a much-needed respite (which I hope will include unplugging from the constant strife emanating from Washington). With the next issue of Crain’s, we will resume our weekly print publishing schedule. Despite the cacophony coming out of our nation’s capital, New Yorkers will have their own agendas to focus on. And so will the business community. Our coverage will focus tightly on the mayoral election, including a review of Bill de Blasio’s rst term. We plan to host a debate between City Council members who want to lead the chamber, which is expected to move further to the le (see page 9). And two of our many fall conferences will fo- ON THE COVER cus on addressing the diabetes crisis and examining the sorry state of mass transit. COMPOSITE PHOTO: ISTOCK So stay tuned, and remember:  ings are looking good.  ere’s no problem we New Yorkers can’t solve.

DIGITAL DISPATCHES

CONFERENCE CALLOUT SEPTEMBER 19 Go to CrainsNewYork.com NOMINATE Do you know a whiz CRAIN’S kid? On Nov. 27 our 20 Under BREAKFAST FORUM 20 list will recognize the New > Join us for our arts and culture York area’s youngest business forum featuring Brooklyn Museum brains. Let us know who should be President David Berliner included at CrainsNewYork.com/ and others. The event 20nominate by Sept. 1. Meet our helps kick off the past honorees at CrainsNewYork fall season for the city’s .com/20under20. cultural organizations. ■ READ Crain’s takes a look at NEW YORK ATHLETIC CLUB New York’s changing music industry. To read our ongoing series, visit CrainsNewYork 8 to 9:30 a.m. .com/Music. [email protected] ■ CHECK OUT To nd an article in a past print edition or simply peruse the Vol. XXXIII, Nos. 34, 35, Aug. 21, 2017—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of June 26, July 10, July 24, Aug. 7, Aug. 21 and Dec. 18, by Crain Communications Inc., 685 Third contents of a particular issue, go to Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send CrainsNewYork.com/Issue-Archives. address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2017 by Crain Communications Inc. All rights reserved. GETTY, BUCK ENNIS GETTY,

2 | CRAIN’S NEW YORK BUSINESS | AUGUST 21, 2017

P002_CN_20170821.indd 2 8/18/2017 5:47:03 PM WHAT’S NEW AUGUST 21, 2017

AGENDACuomo’s plan to ease New York City’s gridlock should be the first of many

t is easy—and justi able—to moan about how much control Albany has over the city’s a airs.  e state dictates nearly all of our tax rates. Our subways and buses are run by a state authority under the gov- ernor’s thumb.  e city can’t even install red-light cameras without Ia green light from the state Legislature. Upstate and suburban lawmakers’ agendas impede the city’s interests in the best of circumstances, which these certainly are not, given upstate’s economic struggles and Mayor Bill de Bla- sio’s toxic relationships with Senate Republicans and Gov. Andrew Cuomo. FREE MARKET: Pricing a scarce But none of that is going to change any time soon, so it behooves the resource—space city to cheer when Cuomo champions solutions to our problems—as he is to drive in Manhattan—will nally doing to improve our tra c-choked roads and deteriorating sub- help businesses way system. Ten years a er then-Mayor Michael Bloomberg proposed and fund transit. congestion pricing, in 2007, the governor has declared it to be an idea whose time has come. From a policy perspective, that has been obvious all Cuomo has already improved tra c by introducing peak and o -peak along, but Cuomo was referring to the political environment. In any case, rates on Port Authority tunnels, highway-speed toll collection on Metro- his embrace of the concept, however belated, is worth celebrating. politan Transportation Authority bridges and tunnels, and half-price tolls Pricing, the bedrock of a free market, is the best way to apportion on trucks making nighttime deliveries. To convince New Yorkers that he’s something valuable, such as the ability to not merely raising revenue to x the sub- drive into Manhattan’s central business dis- Given Albany’s power over the city ways, he could do more to get the change trict.  e lack of tolls on the East River’s in behavior he is seeking. Staying open for jam-packed bridges induces motorists to and the mayor’s lack of pull, the nighttime deliveries costs businesses mon- take irrational routes and clog Brooklyn and governor’s advocacy is much needed ey. But it bene ts the economy overall.  e Queens streets. It makes no sense for those practice just may require further incentives spans to be free while the parallel tunnels are for companies to embrace it. $5.76 for cars and $10.40 for trucks, and subway rides cost $2.75. Pricing  e governor’s inclination to put his considerable muscle and smarts based on congestion also means lowering tolls on bridges such as the Ver- behind congestion pricing is much-needed and long overdue. In fact, we razano-Narrows, which makes toll reform politically viable: Senators in welcome other ideas from Cuomo to improve the city and the application both Staten Island’s Republican and Independent Democratic conferences of his talents to make them happen.  e key is to pass real reforms that support the idea. And it speeds businesses’ deliveries and service calls. change the way the city works—for the better. — THE EDITORS

FINE PRINT Rising interest rates and chaos in Washington have not put a damper on the city, Comptroller Scott Stringer reported Aug. 16. The second quarter’s record low for unemployment (4.3%) and highs in employed residents (4.1 million) and labor participation (61.5%) re ect a booming economy. While housing prices and new commercial leasing increased, asking rents dropped because of new space coming on line.

BY GERALD SCHIFMAN STATS

25 WORDS OR LESS CARGO SHORT SLOW ROADS AND ANTIQUATED FACILITIES are CHANGE IN AIR-CARGO VOLUME BY

keeping John F. Kennedy International Airport AIRPORT, 2011–2016 AND THE CITY from capturing a rise in air cargo nationally. O’Hare “The vast majority (Chicago) Miles by car from the Verrazano-Narrows +38.0% of people are Bridge to JFK. The truck route is 25 miles, 19 requiring an extra 40 minutes or more. responsible, Los Portion of JFK’s cargo space that Angeles especially if they % is not viable for modern screening, +18.5% 63 storage and distribution Miami use bikes +9.4% Number of jobs in JFK’s —Derrick Ko, CEO of Spin, addressing air-cargo division last year, concerns that the startup’s self- locking 34,041 down 5.2% from 2011 “dockless” bikes would be left strewn -6.3% about the city JFK

BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY. SOURCES: Center for an Urban Future, Port Authority of New York and New Jersey, Airports Council International–North America, Google Maps

AUGUST 21, 2017 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20170821.indd 3 8/18/2017 4:22:55 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS Publisher, VP Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701

EDITORIAL editor Jeremy Smerd MTA, council fight over the NIXED: The council rejected a retail managing editor Brendan O’Connor project in the Bronx assistant managing editors Erik Engquist, spoils of public property sales Jeanhee Kim, Robin D. Schatz copy desk chief Telisha Bryan OR YEARS the Metropolitan Transportation Authority art director Carolyn McClain has planned to sell a handful of development parcels to photographer Buck Ennis senior reporters Joe Anuta, Aaron Elstein, the highest bidder to help fund its $32.5 billion capital Matthew Flamm, Daniel Geiger F reporters Jonathan LaMantia, Caroline Lewis plan. But many parcels require the City Council to approve data reporter Gerald Schifman zoning changes before they can be sold. A vote this month, web producer Peter D’Amato however, showed the priorities of the council and the MTA to columnist Greg David contributing editors Tom Acitelli, be at odds. For now, the council is winning. Theresa Agovino, Erik Ipsen, Cara S. Trager

At issue is a state law requiring public authorities to dispense ADVERTISING assets for no less than fair market value. With that in mind, the www.crainsnewyork.com/advertise advertising director Irene Bar-Am, MTA selected a developer willing to pay $30.5 million to build 212.210.0133, [email protected] a mall and a senior-housing project in the Baychester section senior account managers Lauren Black, Zita Doktor, Rob Pierce, of the Bronx. The City Council, however, killed the project on Stuart Smilowitz, Debora Stein behalf of community opponents keen on affordable housing, light manufacturing and office space. senior marketing coordinator Charles Fontanilla, 212.210.0145 This dynamic will repeat itself going forward. In 2011 the MTA identified 15 pieces of property it wanted to sell, [email protected] including a parking lot near a Coney Island subway stop, a chunk of Willets Point and the failed Bronx property. sales coordinator Devin Arroyo, All require controversial rezonings. In the case of the Bronx, the conflicting priorities were further muddled by the 212.210.0701, [email protected] ONLINE city’s Economic Development Corp., which shepherded the MTA’s project through the public land-review process general manager and tried to pitch it as a win for the area’s job market. While the large retail projects would have yielded a higher Rosemary Maggiore, 212.210.0237, [email protected] price for the MTA, retail is generally considered bad economic development because it creates low-paying jobs CUSTOM CONTENT with no multiplier effect. “If an auto plant opens up, a Walmart can be expected to follow, but the converse does director of custom content not necessarily hold—a Walmart opening does not definitely bring an auto plant with it,” a recent report from the Patty Oppenheimer, 212.210.0711, [email protected] Brookings Institute quoted former National Economic Council head Gene Sperling as saying. custom project manager Danielle Brody, The real issue is how to distribute the benefits from the sale of public land. The MTA believes its sales should [email protected] EVENTS fund transit. Some locals think they should serve the community. Compromise would accomplish both goals. www.crainsnewyork.com/events Lawmakers will have several more chances to do just that. – JOE ANUTA director of conferences & events Courtney Williams, 212.210.0257, [email protected] manager of conferences & events His greatest catch? DATA POINT Count them in Adrienne Yee, [email protected] events coordinator Ashlee Schuppius, Derek Jeter finally landed the Miami The FDA is joining restaurants and A CITY REPORT CLAIMS THAT NEW [email protected] Marlins. The former Yankee’s owner- convenience stores in challenging New YORK IS THE “PODCASTING CAPITAL” AUDIENCE DEVELOPMENT ship group, of which he will be a limited York’s law requiring the posting of calo- director of audience & content partner, will shell out $1.2 billion for the OF THE U.S. THE FOUR LARGEST rie counts and nutritional information. partnership development Michael O’Connor, baseball team. MLB owners are expect- The suit argues that a much-delayed, 212.210.0738, ed to approve the deal in September. CITY-BASED NETWORKS PRODUCE yet to be implemented federal law [email protected] NEARLY 200 PODCASTS AND would trump the city’s harsher one. REPRINTS In the market reprint account executive Lauren Melesio, Andrea Catsimatidis, daughter of Grist- EMPLOY ALMOST 600 PEOPLE. Negative image 212.210.0707 edes owner John Catsimatidis, has been B&H Photo Video will pay $3.2 million PRODUCTION production and pre-press director lobbying the Manhattan Republican in back wages to settle a U.S. Depart- Simone Pryce Party to be its next chairwoman. Cur- the Democrat departs Albany Sept. 5, ment of Labor suit alleging discrimina- media services manager Nicole Spell

rent chair Adele Malpass is following he will vacate the chair of the Assembly tion against Hispanic, black, female and SUBSCRIPTION CUSTOMER SERVICE her husband, David, to D.C., where he’s Ways and Means Committee. Asian employees at its Brooklyn Navy www.crainsnewyork.com/subscribe joining the Treasury Department. Yard warehouse. [email protected] No Lee-way 877.824.9379 (in the U.S. and Canada). Space-time warp A 105-year-old plaque honoring Rob- $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print Midtown time-share The Manhattan ert E. Lee was removed from outside St. subscriptions with digital access. Club admitted to lying about the avail- John’s Episcopal Church in Fort Hamil- to contact the newsroom: ability of suites and settled with Attor- ton, Brooklyn. Lee had been stationed www.crainsnewyork.com/staff ney General Eric Schneiderman for $6.5 at the military base. Community leaders 685 Third Ave., New York, NY 10017-4024 million. About 14,000 people owned and pols demanded that General Lee phone: 212.210.0100; fax: 212.210.0799 time-shares when Schneiderman got a Avenue and Stonewall Jackson Drive Entire contents ©copyright 2017 court order stopping sales in 2014. within the base be renamed. Mayor Bill Crain Communications Inc. All rights de Blasio called for a 90-day review of reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license UN-affiliated “all symbols of hate on city property.” agreement.

Luxury hotel the UN New York will be- CRAIN COMMUNICATIONS INC come the Millennium Hilton New York Where MTA puts DOAs is not A-OK chairman Keith E. Crain One Plaza at the end of August. The Transport Workers Union officials di- vice chairman Mary Kay Crain Orange you glad? hotel, at East 44th Street and First Av- vulged that their members have been president K.C. Crain enue, is owned by Millennium Hotels traumatized by the MTA’s practice of The Spotted Cheetah, a pop-up senior executive vice president Chris Crain and Resorts, which reached a branding storing in its lunch rooms, break areas restaurant featuring Cheetos, secretary Lexie Crain Armstrong editor-in-chief emeritus Rance Crain deal with Hilton. and bathrooms the bodies of people brightened a TriBeCa corner Aug. chief financial officer Robert Recchia killed on the tracks. According to the 15 to 17. Celebrity chef Anne Bur- founder G.D. Crain Jr. [1885-1973] Denny farewell MTA, to quickly restore service, bod- rell created Cheetos meatballs and chairman Mrs. G.D. Crain Jr. [1911-1996] Manhattan Assemblyman Herman ies are taken to the nearest nonpublic Cheetos Sweetos–Crusted Cheese- “Denny” Farrell, 85, is resigning from room to await the arrival of the NYPD cake. Reservations were required.

THESPOTTEDCHEETAH.COM, NYCEDC THESPOTTEDCHEETAH.COM, the seat he has held for 42 years. When and the medical examiner.

4 | CRAIN’S NEW YORK BUSINESS | August 21, 2017

P004_CN_20170821.indd 4 8/18/2017 5:47:15 PM How to Create a Culture of Putting Customers First Insights from a transformation expert

s a leading global authority on offer to pay for a ride to their destination on Uber, as If this has been the case, you will have to build long as it doesn’t exceed a predetermined budget. trust that allows employees to act. For one fi nancial customer experience and transfor- services fi rm, we took a radical approach to make A The question every CEO must ask is “How would my employees less fearful. Although it seems counterin- mation, Lior Arussy has guided some employees behave in diffi cult situations with a cus- tuitive, we created the Mistake of the Month program, of the world’s best-known brands—including tomer?” Would they take the initiative and respond where we recognized employees who tried to make Johnson & Johnson, Mercedes-Benz and in an empathetic way that enhances the reputation the right decision but made a mistake–or did not act, of the company—even if it meant tossing aside the resulting in missed opportunities. The employees who MasterCard—in building a customer experi- rule book? And would the company support them in made the biggest mistake got a big celebration in the ence focused on loyalty and recurring sales. doing so? cafeteria, where the CEO handed them a gift certifi - cate. When the employees saw the big cake, everyone At Strativity Group, a customer-experience Crain’s: What do employers need to know to said, “Are you kidding me?” But it helped to build make sure their employees are empowered to act? trust and allowed employees to recognize where they design and transformation fi rm, Arussy has could improve. The better your early adopter’s story, led more than 200 projects worldwide. Author Lior Arussy: The fi rst thing an organization needs the more trust is going to accelerate. to understand is why employees are not doing what of Exceptionalize it!, Arussy recently shared they know is the right thing to please customers in Crain’s: What is the cost to companies that do his insights with Crain’s Custom on how to their daily interactions. In a nationwide survey of not put effort into empowering their employees? 30,000 employees we just conducted, the number build a culture where employees are empow- one reason was not trusting leadership. Sometimes Lior Arussy: The cost of not focusing on employ- ered to do the right thing for customers—and it’s because of the legacy. The last person who tried to ee empowerment is cultural cynicism. It’s paying peo- be empowered was fi red. In some cases, the company ple to sit and badmouth you internally and externally. in doing so, strengthen company performance. has never recognized employees for stepping up. If your people are cynical, ask yourself what is the value they are going to create for customers? Fortu- Ask yourself why employees should bother to act. nately, we can give leaders the tools and strategies to Leaders need to explain the organization’s “why.” In turn things around and propel their company forward. some organizations, the CEO only focuses on meeting Ultimately, when you build trust with employees it quarterly numbers when communicating with employ- leads to empowerment—and that leads to a better ees. Those numbers don’t touch employees’ hearts. customer experience and higher revenue. CEOs need to ask themselves, “What is the human purpose that will make employees choose to lift their performance to the next level?” The company must then identify the tools to make em- ployees ready to do this, set them on fi re and encourage them to exceed their own expectations. Lior Arussy Founder, Strativity Group Crain’s: Why does company culture matter? How does it move the needle toward achieving company goals? Crain’s: You stress the importance of creating a corporate culture of employee empowerment. How does this strategy compare to that of the Lior Arussy: To give you one typical corporate culture? example, we worked with a group of auto dealerships selling the exact same cars. Dealers that Lior Arussy: Most corporate cultures are happen- ing by default, not by design. They are often shaped took the steps needed to build a by events, such as a crisis. great culture with high employee engagement were three times Exceptional Experiences We need to shift to a culture by design, where empow- more likely to achieve top custom- erment is the pinnacle of what we measure a culture to er satisfaction scores and were be. A culture of empowerment gives every employee 59% more profi table than other Culture by Design the ability to create a resolution that ultimately adds dealerships. value for the customer. It taps into an employee’s pas- Accelerated Transformation sion and sense of commitment to making a decision at Crain’s: Can employers the moment of truth—as opposed to hiding behind a build on what is working and process so as to say, “I fulfi lled the process.” gradually fi x the aspects that are not working, or is a complete Sometimes when there is a culture of compliance, transformation necessary? adherence and consistency, employees don’t have the confi dence to bend the rules to appease a customer Lior Arussy: When a company who is not satisfi ed. Companies need to demonstrate has been in existence for 50 years the types of solutions they want to see in unplanned sit- and it has not been a culture of Amplify the uations, so employees know what a “good” one looks empowerment, employees will not Human Experience like. For example, if an airline needs to persuade pas- even dare to act. They won’t trust sengers to give up their seats on a short-distance fl ight, the organization to allow them to strativity.com top management might empower fl ight attendants to do so without repercussions.

An Advertising Supplement to Crain’s New York Business

Ask_The_Expert_2.indd 1 8/14/17 1:42 PM AGENDA WHO OWNS THE BLOCK

14 WALL ST.

Bull run on Wall Street’s west end The storied stretch has changed since Donald Trump first invested there BY TOM ACITELLI 17 PINE ST. (AKA 26 WALL ST.)

14 WALL ST. The federal government owns the nearly 29,000-square-foot Federal eveloper Harry Macklowe’s an- In 2012 fertilizer magnate Alex Rovt paid Hall, and the National Park Service nouncement earlier this year that $294.4 million in cash for a majority stake in runs it as a memorial to the major the 1.04 million-square-foot office building. his residential conversion of the events that have taken place at the Capstone Equities, which had bought the tower site, including the inauguration of old Bank of New with private-equity giant The Carlyle Group for George Washington in 1789. DYork Mellon headquarters at 75 BROADWAY $325 million during the last real estate boom, 1 Wall St. would be mostly con- in 2007, retained a minority share. Rovt poured Trinity Church has tens of millions into upgrades and repairs, and dominiums was the latest sign owned this site since the property was 90% leased by last year. that the storied street of com- before the American 23 WALL ST. merce has also become a desti- Revolution. It currently hosts the third iteration Jack Terzi, owner of JTRE Hold- nation for high-end living. of the church, which ings, has been in contract to In recent years the western was constructed in the buy the former JPMorgan & end of Wall has seen some ti- late 1840s. Co. headquarters for an un- disclosed price since August tanic trades—a fertilizer tycoon 2016. Chinese oil company paid nearly $300 million China Sonangol acquired the in cash for 14 Wall St.— 6-story building, which has 1 WALL ST. been vacant for nine years, and controversial rede- from Africa Israel Investments velopments. Last year the Bank of New York Mellon sold the for $150 million in 2008. state had to step in and 50-story, 1.45 million-square-foot building, its headquarters since force developer Africa Is- 1998, to a joint venture led by de- rael Investments, led by veloper Harry Macklowe for $585 billionaire Lev Leviev, to million in 2014. In March Mack- lowe shifted the building’s conver- finish its condo conver- sion from mostly rental apartments sion at 15 Broad St. to condos and secured $850 mil- Things weren’t al- lion in construction financing from JPMorgan Chase in June. ways so booming. West- ern Wall Street was once 40 WALL ST. best-known for staid, old The Trump Organization acquired office buildings in need of repair. In the ground lease for the 71- 2 WALL ST. 1995 Donald Trump bought the ground story, 1.3 million-square-foot office skyscraper in 1995 for Investment firm Fieldstone lease for 40 Wall St. His biggest concern 15 BROAD ST. an undisclosed sum. (Donald Capital bought the 21-story, wasn’t the sale price—it reportedly went Trump has stated different fig- 210,890-square-foot office Developer Shaya Boymelgreen and Africa Isra- ures at different times, ranging for only $1 million to $10 million with tower in 1996. el purchased this building, along with 23 Wall from $1 million to $10 million.) the nation coming out of a recession— St., from JPMorgan & Co. for $100 million in Trump pays the landowners, a 2003 (23 Wall had served as the bank’s head- but the upkeep. group of German investors who quarters). The buyers converted the property acquired the site from MetLife Trump sunk $35 million in re- into a 386-unit condo. Boymelgreen exited the in 1982, $1.6 million annually pairs and renovations into the tower. partnership in 2007, and Africa Israel finished in rent, according to SEC docu- selling the condo units in 2008. Early last year It worked. Tenants such as Bear Stea- 11 WALL ST. ments that The New York Times Africa Israel surrendered control to the con- rns and American Express moved in. cited last year. This 23-story, 300,348-square- do owners. It also agreed to pay a $2 million Now 40 Wall is probably the presi- foot building houses the New penalty to settle litigation from state Attorney dent’s most valuable real estate asset, York Stock Exchange. The ex- General Eric Schneiderman claiming Africa Is- change owns it. rael had received development tax breaks for with an estimated value of around 15 Broad and two other condo projects with- $400 million. ■ out finishing construction.

75 BROAD ST.

JEMB Realty, a private land- lord, bought the 35-story, 822,947-square-foot office building in 1999. In April JEMB secured a $250 million refinancing loan. The com- pany is currently shopping a 50% stake in the property. GOOGLE MAPS, BUCK ENNIS

6 | CRAIN’S NEW YORK BUSINESS | August 21, 2017

P006_CN_20170821.indd 6 8/18/2017 4:24:28 PM REAL ESTATE

Does gentrification really FEAR FACTOR: Data lead to displacement? do not support arguments against The answer is not as obvious as it seems BY JOE ANUTA development

isplacement. It’s a example, found no evidence of Studies tend to show that to a separate suit from the at- holds moved—not why. word used to try increased displacement in U.S. low-income households relo- torney general. Some organi- “While we often do lack to kill almost any cities throughout the 1990s, cate at a relatively steady rate, zations have found that build- the numbers on displacement, sizable develop- even for the poorest house- whether they are in gentrify- ing owners take out loans that and really a lot of housing data Dment proposal. holds living in the most rapidly ing neighborhoods or non- can be repaid only by booting in general, there is a different Take Gale Brewer’s vote gentrifying areas. gentrifying ones. A shift in de- rent-regulated tenants. kind of research that comes against a proposed East Har- Similar conclusions have mographics toward younger, Brewer’s office said that re- from asking people why they lem rezoning in August. been reached by Columbia wealthier and whiter residents, zoning East Harlem for more are moving,” said Barika Wil- “Residents of East Harlem University professor Lance papers usually argue, is mainly development will make these liams, deputy director at the are frightened by and angry Freeman. And author Richard due to this group’s winning of problems worse and noted that neighborhood association. “It about the prospect of tenant Florida has argued that cities bids for the empty apartments the Regional Plan Association is harder to do, and much more displacement caused by wide- should focus instead on sys- that result from the natural was concerned enough to draw intense.” spread and rapid gentrifica- temic problems, like across- churn of urban populations. up a proposal to protect exist- These experts say that dis- tion,” the Manhattan borough the-board increases in housing But these conclusions are at ing affordable housing there. missing displacement concerns president wrote in an explana- costs and neighborhoods that odds with observations from Her office also pointed to a 2006 has often led to arguments that tion of her vote. remain persistently poor. neighborhood groups that have report by Kathe Newman and gentrification is good, without But while displacement is “Most of the researchers documented individual cases Elvin Wyly that found higher recognizing that low-income consistently invoked in the that have looked at this ques- of low-income households be- rates of displacement in gentri- households who move tend to city’s many heated land-use tion of whether gentrification ing forced from their homes, fying New York neighborhoods relocate to poorer neighbor- debates, it is a far murkier and fuels displacement have found whether through property compared to a previous study. hoods. Those who stay do so by controversial concept than de- little evidence that it does,” owners gaming housing laws, Those authors, along with the taking on severe rent burdens. velopment critics would have said Ingrid Gould Ellen, direc- as a recent lawsuit alleges, or Association for Neighborhood But the complexity of dis- you believe. A 2011 study by tor of the Furman Center and at the hands of landlords who and Housing Development, placement is rarely examined the Furman Center for Real a co-author of its 2011 report. specialize in harassment, such contend that earlier reports fo- when new developments and

Estate and Urban Policy, for “It is something of a puzzle.” as Steven Croman, according cused only on how often house- rezonings are debated. ■ FLICKR/BRINGO

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August 21, 2017 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20170821.indd 7 8/18/2017 4:23:23 PM AGENDA ASKED & ANSWERED NONPROFITS INTERVIEW BY KIM VELSEY

JOHN WANG ASIAN AMERICAN BUSINESS DEVELOPMENT CENTER

hen John Wang started his Asian-American business-advocacy organization in 1994, Chinatown was the heart of the city’s ­Chinese community. The biggest problem facing The so-called minority businessW owners there was figuring out how to grow beyond the “will become the new neighborhood. Today Asian-American businesses are thriving in majority. The combined the mainstream market, and more than 5,000 have used the Asian-, African- and nonprofit’s services. Hispanic-American communities’ What made you decide to start this organization? purchasing The Asian-American community at the time was very isolated. I power is saw a lot of businesses competing fiercely among themselves. I thought the mainstream marketplace offered a lot of room to grow. expected to grow to How have Asian-American businesses and their needs evolved? We’ve seen expansion into many different sectors, not just limited $4.1 trillion to the stereotypical Asian-American ones, like the garment indus- by 2019 try, groceries, restaurants and nail salons. Now there’s import/ export, tech, manufacturing. Another big area is franchises.

Early on your focus was introducing businesses to resources designed to help them get off the ground and grow. What are some examples? We introduced Queens-based window manufacturer Crystal Window & Door Systems to the government-­procurement program [in which a manufacturer is approved as a government vendor]. It’s a very challenging program to qualify for, but the owner was very smart and has been able to work with different localities.

How did China’s entering the World Trade Organization in 2001 change the landscape for Asian-American businesses in New York? DOSSIER It opened up an opportunity for businesses here to explore the market there—for example, finding companies that could man- WHO HE IS President ufacture for them. And over the past 15 years, we’ve seen an of the Asian American increasing number of Chinese businesses coming here. I recently Business Development met with Quanjude—they’re famous for their Peking duck—which Center is looking to set up here. COMPENSATION $92,000 in 2015 What’s your nonprofit’s biggest focus now? ANNUAL REVENUE We are very interested in seeing more Asian-Americans promoted $898,195 in 2015 into C-suites and boardrooms. We want the mainstream economy AGE 70 to see the contribution Asian-Americans have made to the larger EMPLOYEES 3 economy. In 2001 we started the Outstanding 50 Asian Amer- BORN Taiwan. He came to icans in Business award to recognize their achievements and the United States at 17. encourage more inclusion and diversity at the highest levels. LIVES Harlem Many new Asian-American businesses are opening in Flushing and Sunset EDUCATION B.A. in political Park, not in Chinatown. How has that impacted the community? science, Queens College Sept. 11 put a big bend in the Chinatown economy, but the shift GETTING HIS WINGS has been happening for a long time. The garment industry in Before starting the nonprofit, Manhattan used to employ more than 300,000 people. Now it’s Wang served in the U.S. Air BUCK ENNIS almost gone. Flushing has been the biggest beneficiary. When you Force and worked as an urban go there you see high-rise developments on almost every block. planner FIRST CLIENT He helped What changes will we see in the future for minority-owned businesses? woman-owned tofu manufac- The so-called minority—the Asian-, African- and Hispanic-American turer Water Lilies Food find a larger factory in Brooklyn. He communities—will become the new majority. Their combined pur- also introduced the owner to chasing power is expected to grow to $4.1 trillion by 2019. At the marketing. same time, these groups are not in charge of their own resources. Asian-Americans, for example, are very weak politically. We think it’s important for the three communities, as well as all the [distinct] Asian-American communities, to collaborate with each other. How can the Chinese, Korean, Indian and Pakistani, Filipino and Thai groups all work together versus squeeze each other out? ■

8 | CRAIN’S NEW YORK BUSINESS | August 21, 2017

P008_CN_20170821.indd 8 8/18/2017 4:25:01 PM AGENDA POLITICS Handicapping the speaker’s race Think this City Council is FRONT-RUNNERS tough on business? Just wait COREY JOHNSON DISTRICT: Chelsea and the West Village Next speaker may push chamber even more to the left BY WILL BREDDERMAN MEMBER: Progressive, LGBT and Irish caucuses BUSINESS POSITIONS: Pro-labor; sponsored a union-backed he real race this year isn’t gan picking speakers from Manhattan, bill requiring construction workers to do apprenticeships WHY HE COULD WIN: Aggressively courting party bosses and for mayor. Rather, it is the which lacks a centralized party appara- deploying volunteers to colleagues’ campaigns fight for control of the City tus. This prevented any Democratic or- OR LOSE: White male in a minority-majority council Council, a battle that may ganization in the outer boroughs from Twell yield an even more labor-friendly gaining too much power. MARK LEVINE chamber next year. But in 2013’s speaker race, everything DISTRICT: Upper West Side and northern Manhattan Business interests might wonder changed. The bosses favored Daniel Ga- MEMBER: Progressive, Jewish caucuses how that could be possible given the rodnick, a business-friendly Manhattan BUSINESS POSITIONS: Champions free legal services for ten- raft of bills passed over their objections Democrat. But the Progressive Caucus, ants in housing court; co-founded credit union for the poor by Mayor Bill de Blasio and council galvanized by 20 years of Republican WHY HE COULD WIN: Described as “everybody’s second Speaker Melissa Mark-Viverito. But the mayors and Occupy Wall Street, proved choice”; quieter campaigner than Johnson; liked by peers; two have also been a check on the ultra- stronger. De Blasio put his newfound speaks Spanish; his wife and kids are Hispanic liberal council, with the speaker often clout behind Mark-Viverito, a Progres- OR LOSE: White male in a minority-majority council acting as the mayor’s ally since winning sive Caucus co-founder from East Har- her post with his and the Progressive lem, and got Brooklyn Democratic boss UNDERDOGS Caucus’ help. Whenever council mem- Frank Seddio to back her. YDANIS RODRIGUEZ bers launched legislation that de Blasio As speaker Mark-Viverito has occa- DISTRICT: Upper Manhattan thought was too far left, Mark-Viverito sionally frustrated the mayor—refusing MEMBER: Black, Latino and Asian, Progressive caucuses would block it to spare him from hav- to ram through his proposals to cap BUSINESS POSITIONS: Arrested at Occupy Wall Street; ing to veto a single bill. Uber’s growth and retire the Central blocked mixed-income housing project backed by mayor The latest example is a union- Park carriage horses. But she mostly WHY HE COULD WIN: Only nonwhite Manhattanite running; backed effort unions say will bolster did his bidding, even if it meant sup- would be only citywide Latino official; transit advocate safety training for construction work- pressing her own caucus’ bills. OR LOSE: Gaffe-prone; backed politically unpopular raise ers, which has stalled despite support The Queens and Bronx machines to $175,000 for council members (they now make $148,500) from 47 of the 51 council members. The have since gained influence. In 2015 mayor has long opposed labor-backed Bronx boss Carl Heastie became state DONOVAN RICHARDS bills that would raise housing costs. Assembly speaker and handed the DISTRICT: Southeast Queens But next year the mayor won’t have county leader post to a loyalist, while MEMBER: Black, Latino and Asian, Progressive caucuses that luxury. Seven Progressive Caucus Rep. Joseph Crowley, the Queens patri- BUSINESS POSITIONS: Fought night lighting in commercial members are vying for the term-limited arch, became the No. 4 House Demo- buildings and air pollution by restaurants and generators speaker’s post. Meanwhile the Queens crat. And his county machine will likely WHY HE COULD WIN: Liked by mayor, Bronx power brokers and Bronx Democratic machines, out- pick up the seat being vacated by the OR LOSE: Protégé of state Sen. James Sanders—enemy of maneuvered by de Blasio in the 2013 Progressive Caucus’ Julissa Ferreras- Queens Democratic machine; from an outer borough speaker race, are set to decide this one, Copeland. thanks to power shifts in their favor. At the same time, de Blasio has been RITCHIE TORRES revealed as a far less able operator than DISTRICT: Central Bronx New power dynamic he once appeared, thanks to losses on MEMBER: Progressive, LGBT caucuses BUSINESS POSITIONS: Sought to license industrial laundries Through council members who Uber, horse carriages and state Sen- and crack down on “three-quarter house” landlords have pledged their speaker votes in ex- ate races; the lingering effects of now- WHY HE COULD WIN: Co-chairs Black, Latino and Asian change for spoils and protection, the closed investigations of his fundraising; Caucus; rising star; popular with millennials machines will likely anoint one of the and bullying by Gov. Andrew Cuomo. OR LOSE: Has backed candidates opposed by county ma- seven Progressive Caucus contenders, Brooklyn’s clout has also declined, chines; he’s only 29 most probably a Manhattanite. The new evidenced by the decision of David speaker will owe de Blasio nothing and Greenfield, council land use chairman, LONG SHOTS will likely send up bills he would rather to leave office at year’s end. Greenfield not sign—like the construction-safety is one of the few private-sector allies JUMAANE WILLIAMS package. The mayor will be in his final in council leadership. Whomever the DISTRICT: Southeast Brooklyn term, with fewer carrots to dangle and Queens-Bronx alliance installs as land MEMBER: Black, Latino and Asian, Progressive caucuses sticks to brandish in front of recalcitrant use chairman next year will have every BUSINESS POSITIONS: Delegate for Sen. Bernie Sanders; council members, while the speaker will reason to push back on the develop- critic of landlords and real estate industry likely tack left in hopes of winning the ment-friendly rezonings de Blasio and WHY HE COULD WIN: Was vocal Progressive Caucus Democratic mayoral primary in 2021. Greenfield supported, which are unpop- co-founder; known for sitting through Pledge of Allegiance OR LOSE: Party bosses don’t want Brooklyn speaker “I think the defining characteristic ular with left-wing activists and conser- of the next speaker will be greater inde- vative homeowners alike. JIMMY VAN BRAMER pendence from the mayor as an institu- Faint hope for industry DISTRICT: Western Queens tion, and that will be reflected in pass- MEMBER: Progressive, LGBT and Irish caucuses ing legislation that the mayor has thus The lone business-friendly speaker BUSINESS POSITIONS: Stopped affordable-housing project; far been resistant to,” said Councilman candidate, Brooklyn Councilman Rob- 32BJ SEIU ally Rory Lancman, a Queens Democrat. ert Cornegy, is a long shot. It seems in- WHY HE COULD WIN: Majority leader; strong fundraiser “That’s not a function of a further move evitable that the speaker race will pro- OR LOSE: White male from Queens to the left by an already left-wing coun- duce an ambitious new antagonist for de cil, but the fact that people are looking Blasio and city business interests, who ROBERT CORNEGY to their own agendas, their own lega- wield less influence with the Democrat- DISTRICT: Central Brooklyn cies, their own political needs.” ic machines than unions do. MEMBER Black, Latino and Asian Caucus The resurgence of the Queens and “This is not a race that is won with BUSINESS POSITIONS: Rare council voice against regulatory Bronx machines will mark a return to broad-based support. This is a race that’s overreach; only candidate not in Progressive Caucus an old pattern. After the 15-year reign won by a deal,” said political guru Hank WHY HE COULD WIN: Backed by Brooklyn Democratic boss; of Queens-based Speaker Peter Vallone Sheinkopf. “It’s a race where very few co-chairs Black, Latino and Asian Caucus ended in 2001, the Democratic bosses voters, and a lot of people you haven’t­ OR LOSE: Other party bosses don’t want Brooklyn speaker — W.B.

GETTY IMAGES, NYCCOUNCIL.GOV/FLICKR, DOTNYC.GOV/FLICKR, BUCK ENNIS GETTY IMAGES, NYCCOUNCIL.GOV/FLICKR, DOTNYC.GOV/FLICKR, BUCK ENNIS of Queens, Brooklyn and the Bronx be- heard of, determine the outcome.” ■

August 21, 2017 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20170821.indd 9 8/17/2017 5:40:53 PM AGENDA INSTANT EXPERT RESILIENCY BY WILL BREDDERMAN

How NYC prepared for the next big storm—and didn’t [in 5 steps]

THE ISSUE The blast of THE PLAYERS corrosive salt The Federal Emergency Management Agency granted the city water and sand 1 $3 billion to shore up and restore New York City Housing Author- that enveloped the ity properties; $1.7 billion for public hospitals; and $5.3 billion city when Super- 2 for parks, schools, transit, water and sewer infrastructure. FEMA also storm Sandy struck redrew flood-plain maps, requiring some homes and other structures in 2012 ruined hun- to be elevated. But that’s just the first spoonful of the alphabet soup dreds of houses and of federal agencies that have aided New York. The Federal Transit knocked out hospital ­Administration sent the Metropolitan Transportation Authority $1.2 billion generators, shipping docks, buildings’ boilers and train tunnels. for repair and resiliency work. The Small Business Administration proffered Many New Yorkers lost electricity and telecom access, and the loans of up to $240,000 to private citizens to fix flood-damaged homes crippling of ports spawned a gas shortage that lasted weeks. All and as much as $2 million apiece for businesses. The Department of told, the disaster claimed 43 lives citywide and caused $19 billion Housing and Urban Development granted the city $4.2 billion for disaster in damage. Every level of government launched efforts to prepare for relief. The Army Corps of Engineers has proposed a $579 million seawall severe weather. But nearly five years after Sandy, many of them have along the eastern shore of Staten Island and building marshy islands not come to fruition—or, in some cases, even begun. or a protective lock in Jamaica Bay that could cost $4 billion. And the Department of Agriculture has underwritten half of a $22 million project that broke ground in late 2015 to create wetlands on Staten Island. The most visible local player has been Build It Back, a program Mayor Michael Bloomberg launched in 2012 to help homeowners rebuild to WHAT’S NEXT new FEMA specifications. Mayor Bill de Blasio overhauled it in 2014. Many of the projects the Bloomberg administration outlined in its 2013 5resiliency plan are unfinished. The Lower Manhattan Coastal Resil- iency Project, which will expand flood-­ absorbing green space and establish YEAH, BUT... floodwalls and earthen berms from Bat- Nearly five tery Park City to the Lower East Side, A recent report by Holly Leicht (right), is in the planning phase. Ditto the Red years after HUD’s former regional administrator Hook Integrated Flood Protection Sys- Sandy, many 3for New York and New Jersey, noted tem in Brooklyn. The East Side Coastal that disaster recovery is often compared Resiliency Project has the resources to ­government with “building the plane while it’s in flight.” create protective parkland along Man- efforts have Efforts to fix and fortify a developed, popu- hattan’s edge up to East 25th Street not come to lated city are made while eyes are peeled but won’t break ground until 2019. for a second catastrophe. Numerous federal Jamaica Bay projects are at least a decade ­fruition—or, in agencies entangled New Yorkers in a web of from completion. Cuomo announced state some cases, bureaucracy, the study said. Visitors to federal disaster-recovery funds for the Staten Island seawall only even begun centers were often told, perhaps incorrectly, that they had to apply in March. A dreaded 15-month shut- for an SBA loan to receive grants. This jammed the SBA’s intake down of the L train between Brooklyn process and set back repair and resiliency work. As of June Build and Manhattan to repair Sandy tunnel It Back was still not done with more than a quarter of participating corrosion won’t start until spring 2019. homes, even after roughly half of the original applicants dropped And White House support for the Gate- out. The program was $500 million over budget last year, and re- way project, which will build a Hudson ports of long waits, high costs and shoddy work have persisted. River train tunnel and fix a damaged one, is uncertain. But the rebuilt Rocka- way Boardwalk (below) finally opened in May—just as the National Oceanic and Atmospheric Administration predicted an “extremely active” Atlantic hurricane SOME BACKSTORY season this year. A confluence of factors made Sandy a “100-year storm,” including unusual wind patterns and a full moon that exacerbated the storm surge. Further, Sandy 4struck a little more than a year after the city had issued apocalyptic warnings about Hurricane Irene, which ultimately made little impact outside a few coastal neighborhoods in Queens. Thus, many people did not evacuate in 2012. The sea level around the city has risen by a foot since 1900, and climate scientists say global warming will make severe weather more common. BLOOMBERG NEWS, CITY & STATE NY BLOOMBERG NEWS, CITY & STATE

10 | CRAIN’S NEW YORK BUSINESS | August 21, 2017

P010_CN_20170821.indd 10 8/17/2017 5:41:51 PM AGENDA VIEWPOINTS

Robust returns mask weakness of city pension system Relying on risky investments sets up taxpayers for massive bailout

IN THE PAST YEAR New 700,000 current workers and retirees don’t have enough money to meet their fu- his Berkshire Hathaway pension fund. York City’s pension and other beneficiaries. They now -ex ture obligations. The key metric for a In a report earlier this summer, the funds earned a very ceed $180 billion in assets and rank as pension fund is whether its assets are Manhattan Institute figured out that impressive 13%, rid- the fourth-largest pension system in enough to pay all future liabilities. A the city’s pensions are only about 47% ing the post-election the country. The city must contribute good pension is fully funded at 100%. funded using an average return in line stock market boom, about $10 billion a year—or more than The state’s retirement system is a few with Buffett’s thinking. city Comptroller 10% of the entire city budget— percentage points shy of When the market plunges, and it Scott Stringer an- to pay for the pensions earned that magic number. The will at some point, the state can ride GREG DAVID nounced last month. by current workers and the city’s is about 65% funded. out the decline because it is just about As a result the city money needed to pay off the % The city gets to the 65% fully funded. The city can’t because it is will be able to reduce its pension con- funds’ debt over a few decades. number because it assumes at best two-thirds funded and at worst tributions by almost $1 billion for the ■ The funds have been doing OK 65PORTION OF NYC it will average a 7% return half funded. If the decline is severe years 2019 to 2021. This sounds like re- lately. The city sets a target for pension obliga- forever, which is what al- enough, the fund will never recover ally good news. the return it expects on its in- tions that can be most all public pension because it can’t earn anything on mon- Let’s not get carried away. The city’s vestments. During the past four paid with current funds do. However, the best ey it doesn’t have. And if a market cor- pensions are not in good shape, and years, its average has exceeded assets experts say that because the rection is accompanied by a recession, any market downturn is likely to put its 7% benchmark in large part fund is invested in volatile pension-fund payments will soar just them in a bigger hole—one that could because of the big gain in the areas like stocks and real es- when tax revenues decline. be disastrous during the next decade. last fiscal year. For the record, the city’s tate and private-equity funds, it should Don’t be fooled by the latest pension Here’s the real story, distilled to the increase wasn’t that exemplary. The assume a much lower average rate of returns. The funding picture they paint three concepts that are key to under- median return of large pension funds return. Warren Buffett, the smartest is not as pretty as it looks. ■ standing pensions around the country for the year ended investor anyone knows, uses a high- ■ The numbers are enormous. The city’s June 30 was 12.4%. grade corporate bond rate, around GREG DAVID blogs regularly at five pension funds cover more than ■ But any way you figure it, the funds 4%, as the investment assumption for CrainsNewYork.com.

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August 21, 2017 | CRAIN’S NEW YORK BUSINESS | 11

______AGENDA VIEWPOINTS

PUT UP OR PAY UP: No vacancies, please A council bill would punish owners who Owners of empty properties need a push from City Hall to fill them BY PAULA SEGAL “hide” empty lots.

ake a look around the city’s officials and City Hall with an incom- opment is fight- neighborhoods and you’ll plete picture of the opportunities to ing the Housing see thousands of neglected effect positive change throughout our Not Warehous- private properties—­boarded- neighborhoods. ing Act. Last Tup houses and vacant lots collecting There is no transparency when it year HPD told garbage, tax debt and worse—with ab- comes to derelict private properties. the City Coun- sent owners who face no consequences. Instead of ensuring that they are put cil that the bill is Frustrated neighbors have little or no to good use, the city tolerates private unnecessary and recourse. warehousing of precious land and redundant, giv- It doesn’t have to be that way. buildings. Some owners wait years, en the informa- A pending City Council bill called even decades, for markets to heat up tion the agency the Housing Not Warehous- and neighborhoods to be up- already collects. ing Act would create a registry zoned so that these properties When pressed by that all owners of vacant pri- can be sold to investors who council members, the agency was un- shape neighborhoods while cleaning up vate properties would have to will replace these holes with able to provide it. dangerous properties. enter or be forced to pay pen- 22KNUMBER OF luxury construction. The city’s failure to take stock of its This legislation will make it possi- alties. This would put commu- homeless Access to housing is a seri- vacant properties is particularly trou- ble to turn abandoned and ­boarded-up nity members back in control children in NYC ous problem for working fam- bling at a political moment when the properties into vibrant community of their neighborhoods and ilies. The ratio of median gross mayor is highlighting the so-called spaces, places for businesses to thrive establish a useful inventory rent to income was 36.4% in successes of an “affordable housing” and permanently affordable homes. that will allow the city to begin turning 2014—with a third of tenants spending program that overwhelmingly leaves It’s about more than cleaning up eye- derelict properties into much-needed more than half of their income on rent. out the needs of extremely low-income sores and chasing away vermin; it’s low-cost housing. Approximately 58,000 New Yorkers New Yorkers. about relieving the ever-increasing hu- The act would also require the city slept in shelters last night, 22,000 of If the mayor is truly committed to in- man suffering caused by unaffordable to regularly compile a list of vacant them children. Clearly we need more creasing the supply of affordable units, housing. ■ properties owned by the city, state and affordable housing, giving the City why not start with an accurate inventory federal governments, or public entities Council a compelling enough reason to of vacant buildings and land? The Hous- Paula Segal is an attorney in the such as the Metropolitan Transporta- act now. ing Not Warehousing Act is an import- Equitable Neighborhoods practice at the tion Authority. Nothing comparable Inexplicably, the city’s Department ant tool to give residents and advocates Community Development Project at the exists, which leaves advocates, elected of Housing Preservation and Devel- the information and power they need to Urban Justice Center.

FROM OUR READERS Labor defends motives; Skyway defends viability

TO THE EDITOR: workers on construction officials have a moral er subway lines to reach In the editorial “Simple sites will be safer. obligation to step in Manhattan. One can ways to make building If you want to work and regulate an out-of-­ only imagine the massive sites safe—the council in this industry, be it as control nonunion sector congestion, pollution ignores them all” (Aug. a contractor, a developer that neglects the safety of and noise that would 7), Crain’s proclaims or anyone else, there is a its personnel. The coun- result from the more that unions are more responsibility that comes cil is promoting a culture than 1,000 additional concerned with increas- with that. While some of safety and work- buses per day that would ing market share than in the industry contin- ing with stakeholders be needed to transport the safety of workers. ue to chase profits and throughout the industry that many commuters Nothing could be further neglect worker safety, a to ­formalize it. over the Williamsburg from the truth! person’s life shouldn’t be GARY LABARBERA and Queens, the L-line residential neighbor- Bridge. The building trades measured in dollars and President tunnel shutdown wasn’t hoods by carrying 5,000 Gondolas are a viable, have always advocat- cents. No other industry Building & Construction Trades even on the calendar. The passengers per hour in cost-effective, sustainable ed for the safety and has been as hesitant to Council of Greater New York Skyway is by no means each direction between way to ease New York’s security of construction invest in its workers. In a replacement for the L Williamsburg and Lower transit woes in the long workers, union and fact, unarmed mall secu- YES, AN EAST RIVER train. Rather, it’s part of Manhattan. Future routes term. Cities like Mexico nonunion alike. Early rity guards, barbers and GONDOLA CAN WORK the solution to a wors- could reach South Street City and Rio de Janeiro provisions in the drafting nail stylists all currently TO THE EDITOR: ening crisis: More and Seaport, the Brooklyn have already successful- process of Intro. 1447, require more training to Re “Gondolas to the more people want to live Navy Yard, Long Island ly employed gondolas. such as all construction work in New York City rescue?” (From the in New York, and our City and more. With the Skyway, New workers completing than nonunion construc- Newsroom, Aug. 7): transit system is literally The Williamsburg- York can demonstrate its training before working tion workers. When I first announced bursting at the seams Manhattan route ability to solve its most on projects, were based With more than 30 the idea for the East trying (and failing) to would have a major pressing challenges and on successful training deaths in the past two River Skyway, an aerial accommodate them. positive impact on the set a new international programs. The proposed years and 90% of those gondola that would The first phase of the daily commuters who standard that other cities provision to complete a fatalities on nonunion offer a fast, affordable, Skyway would traverse currently rely on the will be sure to follow. minimum of 59 hours work sites, it’s clear a environmentally friendly the East River, helping to L, an estimated 60,000 DAN LEVY of safety training will comprehensive response connection between relieve transit pressure to 75,000 of whom will Founder ensure that nonunion is needed. Our elected Manhattan, Brooklyn, in Brooklyn’s booming have difficulty using oth- East River Skyway

CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send op-eds of 500 words or fewer to [email protected]. Please

ISTOCK, EAST RIVER SKYWAY include the writer’s name, company, address and telephone number. Crain’s reserves the right to edit submissions for clarity.

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CHA_0128_CFB_Pipcorn_V4R_10.25x14.indd 1 7/17/2017 12:34:53 PM

CN018322.indd 1 8/2/17 12:07 PM ECONOMY | CITY WORKS

ROOFTOPS HEAD HERE Gardens, farms, roofs, observation decks, bars, etc OBIS EXPEDI IPSAM eate pos ent esequae dolorit atibus qui sam evelitas nonet latur ma vendanda es dolorro esequis etur, cuptatia volupic torporit veAceatur senditat ut volorro min nulpa doluptia iderunt, inciusam il iumquunt. Ut quam ipisqui quo corporessit faccusti quide mos nostiam es etur audam labo. Anisciat intemolo maiore sectatis voluptatio veriam volorerita doloribus qui asi sum eiumqui aspidit perspere plaboresedis aut fugit, ut quo estem. Neque venimagnatem fuga. It autem ullaut qui quasperi utem ium re non nonsed magnat modipsan- dam eossinc iatur? Nimusdam, opture et laborenis velecabo. Seces est aut lam, simolectem quosti ommossi mporro iniminu llupta aut as eos accustem simint, sim quatur? Quis volesci atecture, te pediam sa volo ipiciate venimi, sus ium quistio rporeperovid que verrum et faccaec eriasit as sequia quo doloris ciendistia volorat postrum volori dication nonsenis sitem. Nam ni volore que nonet quas intes magnia core et que sectas ullant eserumquatum re natectiunt quia debit rehendicatet optae exercia niendisque sit archite mporita quam sum num veratur si consecabo. Et voles et audis re magnia quis eos estotas exceatur sercienis as in nosaperis rem quatiis quis molut re nihicient ullam, vit optataque poreprati quunda quo et laut vellent quodigento tem re ad utaes rempe volla non con expliquo totatur molupti doluptatum restem vollam, ipiendae corum, nit, ni sed quide nulless imporatet aut reprae aut hario quam am, ut ilibero te pratem vendign-

Things we ❤ about New York

2How much do we love this port city perched on a series of small islands that is populated by a business hodgepodge of people and has the world’s coolest economy? Let us count5 the ways. BUCK ENNIS, ISTOCK

14 | CRAIN’S NEW YORK BUSINESS | August 21, 2017 ROOFTOPS HEAD HERE If you can make it here… 1NEW YORK HAS LONg BEEN tHE including Uber and Ly ,  rst gained ULtIMAtE tEStINg gROUND for their footing in smaller cities, then made businesses. But the city’s population New York their biggest market. Via, density also makes it an important labo- the on-demand ride-pooling service, ratory for startups, especially in today’s launched here in 2013, is the exception: gravitate toward urban living. Automak- on-demand economy. Food-delivery Its founders chose New York,  guring ers such as BMW, Daimler and Ford pioneer Seamless survived the dot-com riders packed together on subways and are laying the groundwork for  eets crash, paving the way for the arrival of buses wouldn’t need much persuading that could soon replace personal cars meal-kit services such as Blue Apron and to share a car with strangers, especially with autonomous vehicles. Only here, Plated a decade later. when it cost just $5. where residents already boast the lowest Density has also been instrumen- App-based transportation startups car-ownership rates in the country, can tal to the growth of ride-hailing and have  ocked to New York because dense these operators  nd out if their concept car-sharing companies. Most of them, cities are the future, as more people will work on a grand scale.

PROMISED LAND % Creative destruction IMMIgRAtION IS A WIN-WIN for IN ORDER FOR A CItY tO gROW, both foreigners and city residents. The 43 it must PORTION of the state comptroller estimates that immi- city’s workforce destroy. Constructing new buildings o en grants account for $257 billion in local represented by involves tearing down old ones. Data from the economic activity, nearly double what it immigrants, 12 3 Department of Buildings shows that demolition was at the start of the decade. percentage points and new construction tend to move in tandem. higher than in 1990 DEMOLITION AND NEW BUILDING PERMITS issued citywide by year.

18K 37% New building Demo PORTION of the population made up of immigrants, dou- 12K ble 1970’s fi gure % 7,526 31 6K PORTION of 2,252 immigrants who arrived in NYC with a bachelor’s degree 0 since 2007 2006 2011 2016 SOURCE: State SOURCE: NYC Department of Buildings 2 comptroller’s of ce AIR CONDITIONING Printer Willis CREDIT CARDS In 1946, TOILET PAPER. Merchant Joseph LAND OF Carrier was looking for a way Brooklyn’s Flatbush Gayetty began selling aloe-infused to keep paper at his Bushwick National Bank was paper in 1857. An ad in The New INVENTION plant from wilting in hot weath- the rst nancial York Times soon declared that “all 4 YOU CAN tHANK er. In 1902, he patented an institution to offer a persons who neglect to Gothamites “apparatus for credit card, but using plastic didn’t become make systematic use of of yore for these treating air” and commonplace until the 1950s, when New GAYETTY’s Medicated modern-day main- soon found that York businessman Frank McNamara forgot to Paper for the water- stays: his workers were bring his wallet to a client dinner and soon closet are doing them- wilting less too. conceived the Diners Club card. selves injustice.”

Decking over DIGGING UNDER UNLIKE, SAY, LAS VEgAS OR AUStIN, the DRIVEN BY SOARINg LAND COStS, owners and builders have city’s geographic barriers mean it can’t simply to utilize every square foot, even underground. In projects like Essex sprawl its way into the suburbs.  at makes Crossing, a mixed-used, multiblock development on the Lower East squeezing every opportunity out of the existing Side, below-grade space that once might have been used for storage is being transformed into a 700-foot-long retail corri- 6 footprint essential. In 2012 the Related Cos. 5 dor. Dubbed the Market Line, it will serve as one of Essex’s got the nod to construct a mini city on plat- forms built atop 28 acres of West Side rail yards. main attractions. “We’re not saddling ourselves with a dank  e  rst phase of the $20 billion Hudson Yards downstairs space,” said Rohan Mehra, a principal at the Prusik project is now rising. Once completed, around Group, a partner in the project. “We are both activating the 2024, the project will comprise some 18 million lower level and making a great architectural gesture.” square feet of o ce, residential and retail space. Other landlords have taken a similar approach. Fosun In- A block east, Brook eld Properties is building ternational, the China-based owner of 28 Liberty St., recently Manhattan West over a smaller section of tracks, signed a deal to carve out a 600-seat Alamo Drafthouse reclaiming nearly 3 acres of once-unusable Cinema in its basement. space. But the biggest rail reclamation yet could Even the transit system is getting in on it. Developer Susan Fine turned part of still be in the city’s future. Mayor Bill de Blasio the Columbus Circle station into a food and fashion market, bringing on Urbanspace released a study showing three proposals to deck to replenish the tenant mix. “There are 90,000 people a day walking through that over the 180-acre Sunnyside Yards in Queens. station,” she said. “We’ve been lucky to attract a great number of them.”

AUgUSt 21, 2017 | CRAIN’S NEW YORK BUSINESS | 15 ECONOMY | CITY WORKS

MONEY TREES tHANKS tO A RECENt loosening of9 city regs, local landlords are now freer than ever to turn rooftops into 7 thriving commercial pursuits. But in addition to the slew of bars, offi ce terraces and solar panels, urban farming has emerged as an attractive, high-end enterprise. A decade ago there were virtually no rooftop farms in the city, or anywhere else for that matter. Today the sprawling 2.5-acre Brooklyn Grange, opened in 2010, is merely the largest of many here, yield- ing 50,000 pounds of organic produce for local restaurants and markets. The rooftop-growth trend got a big boost in 2008, when the city began offering tax abatements of up to $100,000 to landlords who planted heat-absorbing Private access vegetation on their rooftops. Even the bees are getting in on the action. IN tHE 1960S, as the skyline soared upward and blanketed After the city lifted a ban on beekeep- city streets in shadow, New York leaders had a bright idea: In ing seven years ago, many apiaries exchange for building even taller towers, developers would started popping up on offi ce buildings have to set aside spaces for the general public to have lunch, to pollinate all the new greenery. rest their feet and chill out. Today the city boasts 333 of these privately owned public spaces, wonkily known as POPS.  e best-known POPS include Zuccotti Park, where the Occupy Wall Street crowd camped out in 2011, and the multi- tiered lobby at Trump Tower. Another highlight is 6½ Avenue, a series of street-level passageways between West 51st and West 57th streets that provides a weatherproof route through Midtown.  e tree- lled atrium in the old IBM building at the YOU CAN corner of East 56th and Madison is another gem. MAKE A A lot of POPS can be bland, out tted with little more than a 10 LOt OF few folding chairs and plastic plants. And a report earlier this 11 DOUgH ... year by city Comptroller Scott Stringer found some landlords seal them o altogether.  at’s a missed opportunity. POPS LOOKINg FOR big make buildings more valuable—a er all, that same report spenders?  row a rock. showed other landlords illegally rent the spaces to restaurants. More than 28% of city households earn at least $100,000, nearly 5 per- centage points above the 8 national average. $89,680 …and when it comes time MEAN HOUSEHOLD INCOME in to spend it, you can NYC, 14.4% higher than the U.S. DINE HIgH average Masa, a Japanese restaurant in the Time Warner SOURCE: 2015 American Center that is considered the world’s most expensive eatery, Community Survey o ers prix  xe meals starting at $595. Per person. Plus drinks. And tax. (But no tipping allowed!) tIPPLE SOME VINO You can buy one bottle of 2010 Chateau HOUSEHOLDS INCOME RANGE Petrus Pomerol Imperial for $64,995 at Sherry-Lehmann. But $150K- Less than $10K- don’t pop the cork yet: Wine guru Robert Parker recommends SECREt CONNECtIONS $200K or more $14,999K waiting at least eight years before drinking this Bordeaux. 14.9% 15.9% $15K- BEAt tRAFFIC For $1,045 you can catch a ’copter to the NEW YORK HAS SOME ANtIQUE INFRAStRUCtURE, $34,999K Hamptons via online travel booker Blade, going from East 34th but when it comes to internet access, that’s a good thing. Take 23.8% 18.8% Street to East Hampton in 27 minutes. And you can keep the the Empire City Subway.  e little-known 19th-century net- “adult sippy cup” your complimentary glass of rosé came in. $75K- 26.6% $35K- PEEL OUt IN StYLE work of underground conduits was built a er the Great Bliz- $149,999 $74,999K  e folks at Manhattan Motorcars zard of 1888 knocked down scores of aboveground telephone have a 2016 Porsche 911 Turbo S Cabriolet Exclusive for only and telegraph wires. Stretching for miles beneath the streets $320,935.  e sleek convertible comes in just one color— of Manhattan and the Bronx, it houses a crowded jumble of ca- boardman blue—and gets 24 mpg. bles, some le behind by long-forgotten carriers, and in some NUMBER of billionaires AVOID tHE RIFFRAFF With an initiation fee of $50,000 and places it is all but unusable. But the underground duct system living in NYC, the most annual dues of $15,000, the Core on East 55th Street is among nonetheless allows any internet provider to run  ber-optic 82of any American city. the priciest of the city’s many private social clubs. cables throughout the city without having to tear up every Another 20 billionaires live in RESt EASY  e Atelier on West 42nd Street is o ering a the surrounding suburbs. street.  at gives local businesses the somewhat rare luxury nine-unit swath of interconnected apartments for $85 million. of being free to choose among a variety of service providers, SOURCE: Forbes If that’s out of your price range, Sting’s Central Park West con-

BUCK ENNIS, ISTOCK boosting competition and innovation and lowering costs. do is on the market for $56 million.

16 | CRAIN’S NEW YORK BUSINESS | AUgUSt 21, 2017 MOVINg 12 ON UP Swipe right 13 The city’s low-cost SUPPOSE YOU’RE A tOURISt IN higher-education system LONDON taking the tube from Parliament to Parliament helps New Yorkers climb Hill.  e cash fare for the 25-minute journey would cost the out of poverty. equivalent of $6.37.  at’s because London’s underground rail system is divided into zones, and the more you cross, the more you pay. But in New York’s century-old system, which now consists of 472 stations, the most you ever pay is $2.75, wheth- er you’re traveling from the East Side to the West Side or from $6,530 Inwood to Far Rockaway. True, these trips might be delayed by UNDERGRADUATE TUITION at CUNY schools for the 2017–18 infuriatingly frequent malfunctions or because it takes forever school year to board or exit the increasingly packed trains. But the city’s SOURCE: CUNY economy would come to a dead stop without a cheap and ac- cessible subway, whose ridership is nearly 6 million a day and tOP 10 U.S. is one of the few in the world that runs all night. COLLEgES BY MOBILItY RAtE CUNY-BERNARD BARUCH ------12.9% THE DOLLAR SLICE CUNY-CITY ------11.7% SINCE 2008 the city has seen a pro- CUNY-LEHMAN ------10.2% liferation of dollar-slice pizza shops. Now there’s an app to help feed CAL STATE–LOS ANGELES ------9.9% cost-conscious diners. Dollar CUNY-JOHN JAY ------9.7% Slice NYC maps the 70 PACE UNIVERSITY ------8.4% $1 pizza spots in the fi ve boroughs. Launched in December 2014, Dollar Slice is as easy SUNY-STONY BROOK 8.4% ------to use as pulling out a buck and placing it on the counter. The CUNY-NY CITY TECH ------8.3% app’s logo is a mashup of a CUNY-BROOKLYN ------8.1% slice with the Eye of Providence atop it, a symbol most Ameri- TECHNICAL CAREER INSTITUTES ------8.0% cans know from—that’s right— SOURCE: Research from economist the back of a dollar bill. Raj Chetty 14

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AUgUSt 21, 2017 | CRAIN’S NEW YORK BUSINESS | 17 BUCK ENNIS, ISTOCK, NYC DEPARTMENT OF SANITATION, CELEBRITY PICTURES.WIKI 18 ECONOMY |

15 CRAIN’S NEWYORKBUSINESS tHE DAYS OFtHREE-MARtINILUNCHES locals and visitorslocals were eager to imbibe. and don’t have on  to until close 2016sales 4a.m.Based gures, liquor laws, that starting with fact the bars can open at 8a.m. with liquor licensesand some of country’s the most lenient whistle. New York has astaggering 25,000bars and restaurants but acity is with this still no shortage of places to wet your pints ofbeer 17 1.75 billion Park Ave. could rent for more square than $100per foot. following suit. Boston Properties’ o glass ce level at 399 includes agolf simulator. nancial tenant, boutique the while oce at 34E.51st St. ceiling.Relatedglass custom Cos. built a balcony to lure a at 425Park Ave. features atop oor with a30-foot-high to stand out inacrowded eld. L&LHolding Co.’s tower properties. And many landlords are o ering amenities from Manhattan’s stock decades-old of commercial giving tenants an unprecedented opportunity to upgrade NEW, StAtE-OF-tHE-ARt OFFICEBUILDINgS perks Office

| CITY WORKS CITY well-lubricated commerce are the wheelsof 230 million bottles of wine

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Owners ofOwners older buildings are AUgUSt 21,2017 16 COUNtLESS DINERS, IN ADDItIONtOtHE Brooklyn). Pharmacy,sleeping pills(Myrtle even scoresome Island Ferry); Manhattan); goyachting (Staten ments (NuthouseHardware, Queens); make homeimprove- few frames(Whitestone Lanes, Barber Shop, theBronx);bowla can getahaircut(Underground make themostofall24hours averse citydwellers lookingto out the ve boroughs, sleep- laundromats scatteredthrough- andall-night bars after-hours 100 million bottles of liquor TILL... SLEEP NO may long be gone pints ofcider 20 million are are

Hidden gemsabound…andthrive ROOSEVELT ISLANDSUCKS 19 scale developments suchasHudsonYards. now lookingtofollow theideaintolarge- suitandincorporate attractive thatbigdevelopers, includingtheRelatedCos.are tubes isunlikely, theresultsonRoosevelt Islandhave beenso to onespot.Althoughalarge-scaleapplicationofpneumatic onlyhaveof garbagebagsandensuringthathaulers totravel move ittoasinglecentrallocation, keeping thestreetsfree from16residentialbuildingsand tubes thatsuckrubbish a Swedish company tobuildasystemofpneumaticvacuum But notonRoosevelt Island.Four decadesago thestatehired both privateandpublic,tocollectthem. clogthestreetstrying trash problem.Garbagebagslitterthesidewalks, whiletrucks, AND WEMEANtHAt INAgOODWAY. demand. haveof foodsprouteduptomeetthe carts has swelled 12%inadecade andaslew Street andSixthAvenue, wherefoot traffi c fi of crowdthecorner ceworkers West 50th data. Butonany givenweekday, of- hungry Station, accordingtocitytransportation SquareandPennespecially aroundTimes provided it’s intherightplace. most mediocrelunchtimespotcanthrive— in thepast10years, itseemsthateven the success. Withpedestriantraffi cup18.2% carts, allthosehoofers arethesecretto but for retailers, restaurantsandeven food togetsomeplaceinahurry,people trying through citystreetsmay beanightmarefor tHE PEDEStRIANHORDES 18 complex industrial Order tV the 21 Sidewalks aremostcrowdedinMidtown, Law & Trial lastedjustoneseasoninthemid-2000s. by Jury CriminalIntent ,Order: endedin2011, andLaw &Order: episode after20seasonsin2010.Anoffshoot, Law & though theoriginalLaw &Order airedits456thand nal from theheadlines”franchisestillpays dividends, even city’s reliablyemployed. actors AndDickWolf’s “ripped almostsingle-handedlykeptOrder. TheTVjuggernaut the isodic seriesshootingherethisseason, therewas Law & BEFORE tHECItY’StVBOOM, SELL SHOP, WALK, meandering said. “You people when come just smile this in.” see shop the discovery elicits. “It’s auniversal reaction,” he is notit gra special the on butti walls the of sense the restaurantthe is infour countries. Pipes said what makes putting dive-y this burger joint hotel?” Now inaluxury Steven Pipes, hotel’s the manager. “What are we doing it opened in2002.“Everyone thought we were crazy,” said average of 900customers aday, up from roughly ve when require a concierge to locate, inquiry but it attracts still an in on asecret. not does and advertise eeatery may kind of hiddengem that makes customers feel as ifthey’re Meridien hotel, 600-square-foot the Burger Joint is the tUCKED BEHINDACURtAIN Thecityhasa with arecord56ep- 20 in the lobby inthe of Parker Le EPISODES after20seasons 456 Family affairs tHE HEARtLAND HAS NOtHINg on New York’s family values. Multigener- ational real estate dynasties 24 like the Dursts and Zecken- dorfs have shaped the skyline. So have the water towers built by Rosenwach Tank, now run by fourth- and  h-generation family members. One of the city’s biggest tugboat operators, McAllister Towing, has been family-run since the 1860s. Recognizing the importance of the category, which is credited with supplying 60% of all jobs across the country, the business schools of both Columbia and NYU have added fami- ly business as a speci c focus of study.

HEALtHY ECONOMY In addition to boast- ing some of the world’s top hospitals, New York has academic medical centers that pull in billions in federal funding to support re- search and drug discoveries and spawn new 25 companies. Gov. Andrew Cuomo and Mayor Bill de Blasio have also committed more than $1 billion as a catalyst for the local biotech industry. $1.6B $1.5B 7.9 % NATIONAL NIH DOLLARS RATE OF INSTITUTES OF that fl owed to the INCREASE year HEALTH funding to city in 2015 over year city facilities in 2016

HEROVILLE FREE MONEY “I’M JUSt A KID FROM BROOKLYN,” Captain America 22 likes to say. But he’s not the only superhero to call Gotham NEW YORKERS LOVE FREE StUFF: home. (One count puts the number of local crime- ghting bobbleheads at baseball games, Shakespeare 26 crusaders at 16.) Gritty streets, insane wealth, tall buildings in the Park. But there’s also a service that that can be leapt in a single bound—no wonder  e Walt can help folks score things that aren’t Disney Co. recently decided to more than double the num- usually free. Club Free Time began in 1987 ber of episodes of Marvel Television shows shot here, scaling as a passion project of Natelia Vaidman. up what was already the largest TV-production project in Eager to help others enjoy the countless the state.  e original agreement was to create four series free cultural and educational offerings in NYC, she started a newsletter to share the based on Marvel heroes Daredevil, Jessica Jones, Luke Cage information. and Iron Fist, totaling 60 episodes.  e success of the shows But Club Free Time has since taken the service a step led to a $400 million commitment to shoot 135 episodes by further. Members can now get free tickets to events that year’s end.  rough three years of production, 14,000 cast aren’t typically gratis: shows on and off-Broadway, classi- and crew members have been hired, and more than 500 cal music concerts and dance performances. The secret? small businesses have bene ted. Shazam! Filling seats. Eager to create that electric “full house” feel, producers offer the club complimentary seats for shows and concerts that haven’t sold out. That amounts to extra bucks Drink in history for concessions, more fun for the performers and a steal for club members, who can reserve two to ve complimentary CARE tO HOISt a tankard in the style of Alexander Ham- tickets as long as the deal lasts. For $19.95 a year (shorter ilton and George Washington? You’re in luck. Fraunces durations are available), culture lovers can take advantage Tavern, which dates back to 1762 and counts those Found- of the 179 concerts, 145 theater performances, 474 tours, ing Fathers as regulars, is the city’s oldest watering hole. Of 58 poetry readings, 40 lectures, four gallery openings and course, maintaining such an established establishment has 124 movies listed on the site right now—a win for all. its challenges. A er an unusually soggy spring, water in the basement led Health Department inspectors to close the place due to some contaminated food and improper sewage disposal. It cost owner Eddie Travers $50,000 to resolve those concerns and address structural issues. Fortunately, he was able to reopen in time for ye olde weekend rush. 23

Another spinoff, Law & Order: well-known, for whom little parts on SVU, has just gotten the green light Law & Order have been a lifesaver,” for 22 episodes in its 19th season. said Colleen Werthmann, an actor and (Brooke Shields will join Mariska writer who has appeared four times Hargitay, the star of the show, on the shows, “not only because who earns at least $500,000 per you make the SAG day rate [now episode.) $956], but then the residuals never 456 Then there are the reruns on end. I call those pennies from EPISODES after 20 seasons A&E. “There are a lot of actors, not heaven.”

AUgUSt 21, 2017 | CRAIN’S NEW YORK BUSINESS | 19 REAL ESTATE | AFFORDABLE HOUSING

MOTHER’S KEEPER: Shvadron inherited his mother’s apartment but was barred from moving in.

Residents are at one another’s throats as The war inside once-affordable apartments built by Donald Trump’s father soar in value Trump Village BY AARON ELSTEIN aina Shvadronova and her 8-year-old son, Jerry, emigrated from close to the beach. To help pay for the $70 million project ($564 million in today’s the Soviet Union to Brooklyn in 1979. She found work cracking dollars), Fred Trump turned to a state and city program called ­Mitchell-Lama eggs at a bakery and taking care of an elderly couple, while Jerry that granted him financial incentives in exchange for building affordable hous- helped furnish their Borough Park apartment by scavenging for ta- ing. The Trumps owned parts of Trump Village until 2003, when the family sold bles and chairs off the streets. A few years ago the them and other outer-borough properties for $600 million four years Fbreast cancer Shvadronova thought had gone into remission after Fred died. returned. She died at age 68 in February 2016. FACT In spite of the constraints imposed by Mitchell-Lama—landlord For all her struggles, Shvadronova managed to leave some- profits were capped, and residents were barred from selling their apart- thing substantial behind for Jerry: a two-bedroom co-op in Co- ments for more than they paid—nearly 140,000 affordable units were ney Island that she bought for about $30,000 in 1993. built under the program between the late 1950s and the early 1980s. The apartment, in a complex called Trump Village, was built Demand far outstrips supply: Middle-class New Yorkers who qualify in 1964 by Donald Trump’s father, Fred. It was the first project 38KMITCHELL-LAMA under the income requirements routinely have to wait years to get one. the young Donald worked on as a developer and the first prop- units that have been Shvadronova waited at least five years for hers, recalled Jerry, a li- erty the family named for itself. Trump Village consists of sev- deregulated, 28% of brarian who is now 45 and has shortened his last name to Shvadron.

PHOTOGRAPHY BUCK ENNIS en 23-story towers housing 3,700 co-op and rental apartments the total built “The apartment was my mother’s great achievement,” he said.

20 | CRAIN’S NEW YORK BUSINESS | August 21, 2017

P020_P023_CN_20170821.indd 20 8/17/2017 5:50:08 PM UNIT COUNT: Built in 1964, Trump Village holds about 3,700 co-op and rental apartments.

To pass that achievement on sources of “active income.” As a to her son, Shvadron’s moth- result, “people with high active er placed ownership in a trust incomes were no longer moti- that named him the sole bene- vated to invest in real estate as ficiary. After her death he pre- a tax shelter,” said Tom Waters, pared to move into her apart- a housing-policy analyst at the ment with his two daughters Community Service Society, a and his wife, a secretary at Co- research nonprofit. ney Island Hospital. Since 1990 half of Something important had ­Mitchell-Lama rentals have changed, however, since his left the program, according to mother bought the place: Waters’ research, as landlords Trump Village was no longer who waited decades to charge the affordable-housing com- ­market-rate rents began to do plex that Fred Trump had built. so. Last decade Mayor Michael Much as Donald left behind Bloomberg began offering own- his father’s vision of building ers millions’ worth of incentives apartments for teachers and to keep apartments in the pro- police officers to focus on lux- gram, and de Blasio and Gov. ury condos, in 2007 Trump Andrew Cuomo have done the Village residents voted to leave same. the Mitchell-Lama program, Most co-ops have so far which meant they were free to elected to remain in the pro- sell their apartments for what- gram because their property ever the market would bear. taxes would soar if they left. It also meant the apartment Property-tax bills jumped to Shvadron inherited was worth $8 million a year from serious money—$400,000, by $1.6 million after residents at his estimation. His good for- Southbridge Tower in lower tune didn’t sit well with the Manhattan narrowly voted to Trump Village co-op board, exit Mitchell-Lama in 2014, re- which refused to let him move sulting in steep monthly main- in without coughing up a hefty tenance increases for tenants, sum that would have made the Manhattan Borough President apartment unaffordable. Gail Brewer testified at a City “Trump Village is defying Council hearing last year. Even my mother’s very clear wishes,” so, soaring housing prices are said Shvadron, who sued to get his apartment. The job were not great,” he said. intensifying pressure on co-ops to leave Mitchell- co-op fired back by suing him for libel after he crit- Trump Village was built under a program de- Lama so residents can sell their apartments for big icized building management, the second such suit signed to address a problem in 1950s New York that sums. Buckley wrote in a Law360 article last year that filed against one of its residents. sounds familiar today: lack of affordable housing for of the 20 co-ops eligible to leave, two have had exit MOTHER’S KEEPER: Shvadron The war inside Trump Village provides a vivid ex- a surging population. In an effort to ease the short- plans approved by the attorney general’s office, and at inherited his mother’s apartment but was barred from moving in. ample of the fights taking place as more of New York’s age, in 1955 state lawmakers MacNeil Mitchell and least five others were considering it. affordable housing is converted into market-rate Alfred Lama sponsored the Limited Profit Housing One of the first co-ops to take the plunge was apartments. In the past 20 years, owners of 38,000 Companies Act, which offered low-interest loans Trump Village. Mitchell-Lama apartments, representing 28% of the and property-tax reductions to developers who program’s housing, have left. That has depleted the agreed to build housing where their annual return No entry city’s affordable-housing supply and poses a formida- would be capped at 6% for 50 years. It didn’t take Shvadron long to realize he wouldn't ble challenge to Mayor Bill de Blasio, who has prom- Few developers were interested, so a few years be able to move into his mother’s apartment without ised to preserve or create 200,000 a fight. He visited the place two weeks affordable units. As additional Mitch- after she died, only to find it blocked ell-Lama apartments look to enter the FRED TRUMP COMPARED THE COMPLEX off by packing tape. “It looked as if a market, more battles loom for control crime had been committed inside,” of these valuable properties. TO THE TAJ MAHAL AND CALLED IT he said. “Mitchell-Lama was one of the ­“RESORT LIVING.” AN ARCHITECT SAID Trump Village management most successful affordable-housing wrongly told him his trust docu- programs ever,” said Erica Buckley, THE AESTHETICS WERE “NOT GREAT” ments had been shredded, and before a partner at law firm Nixon Peabody moving in he had to pay a $100,000 and former chief of the state attor- transfer fee. Such fees, also known ney general’s Real Estate Finance Bureau, where she later the law was amended to say Mitchell-Lama as flip taxes, are commonly levied by co-ops when reviewed the plans of buildings looking to exit the properties could be rented or sold for whatever the residents sell their apartments. But Shvadron under- program. “As apartments leave, it has caused lots of market would bear after 35 years. It was subsequent- stood that, under the building’s bylaws, children in- complications.” ly lowered to 20 years if the mortgage was paid off. heriting apartments from parents were exempt from The last tweak made affordable-housing develop- flip taxes. Residents had insisted such language be Trumpian salesmanship ment sufficiently attractive, especially for developers included when they voted to leave Mitchell-Lama. Fred Trump used the sort of puffery Donald who built large complexes to help offset the small “Without the clause carving out children from flip would make famous when describing his newly built profit margins. Investors in Mitchell-Lama projects taxes, I don’t think people would have voted for con- Trump Village. He called it a “miracle mile [of] lux- included Bob Dylan, once part owner of an apart- version,” said Allan Grody, a Wall Street executive ury housing” featuring “a Taj Mahal of aesthetically ment building in Rockaway, Queens. (That’s right, whose parents moved into Trump Village around appealing apartment houses [that would] combine the author of the song that begins, “Dear landlord / 1968 and whose mother lived there until she died in resort living with city life,” according to Gwenda Please don’t put a price on my soul” was once a New 2013 at age 100. Grody shared a copy of the bylaws Blair’s book The Trumps: Three Generations That York landlord.) that reads, “Bequests by stockholders and bona fide Built an Empire. In all, developers built 66,000 Mitchell-Lama rent- gifts by stockholders to members of their immediate In reality, the apartments didn’t come with air al units and 69,000 co-ops before the program pe- family are exempt from the transfer fee.” Trump Vil- conditioning, and the buildings resembled many of tered out and the Reagan tax-reform package of 1986 lage attorney Dean Roberts asserts that apartments the austere public-housing blocks rising up at the marked its death knell. The new law discouraged in- are not exempt from flip taxes if they’re transferred time. An architect whose firm designed Trump Vil- vestors in rental properties from using “passive loss- to a trust before being passed to an individual. lage acknowledged as much. “The aesthetics of that es,” such as depreciation costs, to offset wages or other CONTINUED ON PAGE 22

August 21, 2017 | CRAIN’S NEW YORK BUSINESS | 21

P020_P023_CN_20170821.indd 21 8/17/2017 5:50:27 PM REAL ESTATE | AFFORDABLE HOUSING

DEATH TAX: Grody said he was overcharged by the co-op after he sold his mother’s unit.

After the tape incident Shvadron turned to the indoor playroom. The co-op also changed its formal losers are people looking for affordable housing.” co-op’s general manager and former president, Igor name from Trump Village Section 4 Inc. to the more Oberman said he had “no idea what this alle- Oberman. The two men hailed from the same city inviting Trump Village West. gation is” and added that Trump Village supports of Gomel, ­Belarus, emigrating two years apart, and The strategy quickly paid dividends. Trump Vil- longtime residents, noting that the board contrib- many years ago Shvadron’s uncle helped Oberman’s lage sales and property values picked up as memo- utes $100,000 annually to the nonprofit Jewish As- father get a job as a plumber’s assistant. But those ties ries of Sandy faded. The median price of a Coney sociation Serving the Aging. meant little when control of a vacant apartment was Island co-op has risen by 58% since 2012, according in question. Oberman threatened to have the locks to the Real Estate Board of New York, double the Justice Department charges changed and call the police if Shvadron tried to get rate of increase in Brooklyn overall. Nonetheless, in 2015 the U.S. Justice Department inside his mother’s apartment, according to court While the fortunes of the neighborhood and the charged Oberman and the co-op with unlawfully at- documents. He also urged Shvadron to sell his near- co-op improved, plenty who bought their apart- tempting to evict residents, citing a “pattern or prac- by apartment to demonstrate he really planned to ments in the Mitchell-Lama days remained. If these tice of discrimination against residents.” The feds live in Trump Village, which Shvad- said Oberman allegedly began evic- ron did. Nevertheless, last summer tion ­proceedings against a resident the co-op board unanimously denied “THE GESTALT IS TO GET THE who had a dog in violation of build- Shvadron’s application to move in. ing rules at the time. It turned out the Oberman represented a gener- OLD-TIMERS OUT. IT’S THE REBIRTH OF dog owner was a veteran of combat in ation of owners remaking Trump Afghanistan who under federal law Village after it left Mitchell-Lama.­ A BROOKLYN. THE LOSERS ARE PEOPLE had the right to own a pet—a shih former Taxi and Limousine Com- LOOKING FOR AFFORDABLE HOUSING” tzu named Mickey—to help cope mission attorney and City Coun- with post-traumatic stress disorder. cil candidate, he joined the co-op Prosecutors also accused Oberman board in 2010 and became president and Trump Village of threatening in 2012, not long before Superstorm Sandy blew residents were to sell, the co-op would not only col- to evict three other dog-owning residents, deny- through. The storm not only caused more than lect at least 20% of the sale proceeds in flip taxes, but ing them preferred parking spaces and retaliat- $10 million worth of damage, but apartment sales because bylaws give the co-op the right to match any ing against one by removing the person from the also collapsed because nobody wanted to buy proper- potential buyer’s offer, it could also accumulate an co-op board. ty in a flood zone. Trump Village’s flip-tax revenue fell inventory of apartments to sell into the red-hot mar- The case came after the U.S. Department of Hous- by 35%, or $700,000, according to city records, and ket and generate even more revenue for improve- ing and Urban Development charged Oberman and accountants warned of a serious budget shortfall at ments and upkeep. City records show that the co-op Trump Village in 2015 with freezing people on the the co-op that over the years had grown into an enter- bought one apartment from a resident for $200,000 waiting list for parking spaces and leapfrogging at prise with more than $16 million in annual revenue. in December 2015 and sold it four months later for least one person to the top of the line. Oberman figured the best way to shore up the $370,000. It bought another for $200,000 in May Oberman, who stepped aside as co-op board co-op’s balance sheet was to make the place more at- 2015, which it sold 14 months later for $470,000. president in 2015, said Trump Village is now tractive to families priced out of Brooklyn’s brown- “The gestalt is to get the old-timers out,” said Gro- pet-friendly and the Justice Department case was stone neighborhoods. He directed the organization dy. “Buildings are being refurbished. Coney Island is settled confidentially in July. to spend $250,000 on playground equipment and an being dressed up. It’s the rebirth of Brooklyn. The In the meantime Oberman faces other legal chal-

22 | CRAIN’S NEW YORK BUSINESS | August 21, 2017

P020_P023_CN_20170821.indd 22 8/17/2017 5:50:42 PM FACTS lenges. As part of the strategy to market Trump Vil- up against the management. Stop ing Mitchell-Lama. One of the benefits of lage apartments to families, a photo showing him Trump Village harassment and sticking with the program is co-ops can with his wife and young child was put on the co-op’s intimidation of its shareholders % turn to city or state authorities to handle marketing materials at the same time he was run- and residents.” disputes, while residents in private co-ops ning for City Council. In May the Campaign Finance Oberman fired back by suing 20PORTION OF FLIP TAXES are left to fight their battles before a judge. Board staff determined that Oberman illegally used Shvadron for libel and slander Trump Village receives “They have a whole set of problems, no one co-op cash to promote his unsuccessful campaign, earlier this year. It was the second to turn to, and they’re begging for a co- according to records obtained by Crain’s under the libel suit Oberman and Trump op or condo ombudsman that the Mitch- Freedom of Information Law. He and his campaign Village filed against residents. ell-Lamas have,” she said. face up to $25,000 in penalties and restitution, al- The first was in 2014 against % The wars of words within Trump Village though a lawyer for Oberman, Laurence Laufer, said two women, Julia Bezvoleva and 58 may be only the start of a long legal battle. he believes the case will be dismissed without finan- Inna Yeselson, who under the MEDIAN INCREASE in Shvadron has found a potentially power- cial penalties at an administrative hearing scheduled online pseudonym Josef Stalin sales price of Coney ful ally in Grody, the Wall Street executive for Aug. 21. In 2014 the city fined Oberman $7,500 called Oberman a “psychopath” Island co-ops since who has his own beef with the co-op. after saying he used his TLC workplace phone to and complained “Igor Oberman 2012, twice the overall Grody believes Trump Village charged raise money for his campaign. spends corporate money for his Brooklyn rate him more than $9,000 in excessive flip tax- Shvadron knew of Oberman’s troubles and plenty personal retaliation (eviction at- es when he sold his mother’s apartment about his background when he confronted Oberman tempts).” They said he monitored neighbors with a for $185,000 after her death. He said the co-op’s fi- about taking possession of his mother’s apartment. personal video camera and used security guards to nancial statements may be materially distorted by When Shvadron lashed out in frustration, he knew threaten residents who asked “inconvenient ques- improperly collected flip-tax revenue and has sub- how to make it hurt. tions.” The case has been halted while Bezvoleva, a mitted numerous requests for information with the “You know, people say you’re a Russian gangster. U.S. Army reservist, is deployed at an undisclosed attorney general’s office. He thinks the co-op may They fear you’re part of the mob,” Shvadron recalled Middle East location. “The most authoritarian as- be a corrupt organization and is looking to lead telling Oberman, who remembers the exchange dif- pects of Soviet life have found their way into Trump residents in a class-action lawsuit against Oberman ferently, saying in court papers that Shvadron ac- Village,” Shvadron said. and the Trump Village board. As a former partner cused him of running “a scam,” of being a “Russian Oberman, who sold his Trump Village apart- at accounting firm Coopers & Lybrand (now PwC), f--king gangster” and “a f--king connected mobster.” ment last year but remains the building manager, where he advised financial giants like Goldman What’s not in dispute is that after that exchange, responded: “America has freedom of speech but has Sachs and JPMorgan, the 72-year-old Grody says Shvadron posted a petition on moveon.org urging limits. To defame reputations online will not be tol- he has the expertise, patience and legal contacts to fellow residents to storm the barricades. “We are the erated, and I look forward to our day in court." make his case. shareholders of Trump Village, and we are tired of Buckley, the former attorney general’s office of- “I’m doing this for my mother,” he said. “She being treated unfairly by the management,” the proc- ficial, said the brawl at Trump Village should serve wouldn’t be at all happy with how things have gone lamation read. “We are tired of being afraid to speak as a cautionary tale for co-ops thinking about leav- at Trump Village.” ■

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August 21, 2017 | CRAIN’S NEW YORK BUSINESS | 23

P020_P023_CN_20170821.indd 23 8/17/2017 6:05:30 PM TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM

FOR SALE PUBLIC & LEGAL NOTICES

Printing Business for Sale Notice of formation of NOTICE OF FORMATION of 89 TRADING NOTICE OF FORMATION OF JP Riback, YackerDunnTalent Group LLC. Arts. of LLC. arts. of Org. Filed with Secy. of LLC. Articles of Organization filed with Well established printer with accounts / Org. filed with Secy. of State of NY state of NY (SSNY) on 7/6/2017. Of- the Secretary of State of NY (SSNY) on machinery. Complete plant. (SSNY) on 7/13/2017 Office loca- fice location: NY County. SSNY desig- 3/6/2017. Office location: NEW YORK tion: NY County. SSNY designated nated agent upon whom process may County. SSNY has been designated as Midtown Manhattan for sale. agent upon whom process may be be served and shall mail copy of proc- agent upon whom process against it ess may be served and shall mail copy Call 914 318 4884 served and shall mail copy of process may be served. The Post Office ad- against LLC to: Marc Reibman, 26 of process against LLC to principal busi- dress to which the SSNY shall mail a Court St #1808, BK, NY ness address: 360 East 89th Street, copy of any process against the LLC 11201.Principal business address: Unit 4A, New York, NY 10128. Pur- served upon him/her is: 7014 13th POSITION AVAILABLE 212 Warren Street, New York, NY pose: any lawful act. Avenue, Suite 202, Brooklyn, NY 10282 Purpose: any lawful act 11228 The principal business address AVP/Research Analyst (AllianceBernstein of the LLC is: 10 Hanover Square, Apt. Notice of Formation of 114 EAST 13 10Z, New York, NY 10005 Purpose: L.P.—New York, NY) Formulate & apply Pitch and Toss Productions, LLC STREET 6A REALTY, LLC Arts. of Org. any lawful act or activity quant mdl’g & optmz’g mthds to imprve firm’s Art. Of Org. Filed Sec. of State of filed with Secy. of State of NY (SSNY) proprietary anlytcl frmwrk & tools. F/T. Reqrs NY 6/20/2017. Off. Loc.: Richmond on 08/07/17. Office location: NY Co. SSNY designated as agent upon Notice of Qualification of TD PRIME Mstr’s dgr (or frgn equiv) in Econ, Quant or County. Princ. office of LLC: 114 E. SERVICES LLC Appl. for Auth. filed with whom process against it may be 13th St., Unit 6A, NY, NY 10003. Computatnl Finan, Appld Math or rel fld & 4 served. SSNY to mail copy of Secy. of State of NY (SSNY) on yrs exp in job offrd or w/ asset mgmt rsrch SSNY designated as agent of LLC 07/27/17. Office location: NY County. process to The LLC,1967 WEHRLE upon whom process against it may be w/ quant mdl’g. Must have 4 yrs exp in fllw’g: DRIVE, SUITE 1 #086 BUFFALO, NY LLC formed in Delaware (DE) on served. SSNY shall mail process to 05/05/17. SSNY designated as agent prgrmm’g us’g SQL, SAS, MATLAB or simlr 14221 Purpose: Corporation Service Co., 80 State St., sftwre; presnt’g quant topics to sr audience, Any lawful act or activity of LLC upon whom process against it Albany, NY 12207-2543. Purpose: Any may be served. 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24 | CRAIN’S NEW YORK BUSINESS | AUGUST 21, 2017

P024_CN_20170821.indd 24 8/18/2017 4:42:08 PM GOTHAM GIGS

A LOST ART: Der says skilled leather workers BY LANCE PIERCE are ­becoming ­increasingly rare.

Pulled up by his bespoke bootstraps Mastering his craft for 50 years, a riding-boot maker remains a star on the horse show circuit

t’s been 18 years since Jose Der, founder of Schwarzenegger. Professional equestrienne Georgina ­custom-riding-boot company Der Dau, last crafted a Bloomberg got her first pair five years ago. “When you ride JOSE DER boot by hand. But Der, who turned 90 on July 29, is as much as I do, you want to have boots fit perfectly,” she hardly taking it easy. said. “Jose and Joseph have become personalities at horse AGE 90 IHe travels to horse shows across the United States and shows. They’re just as friendly to riders who wear their BORN Las Villas, Cuba Canada year-round, setting up a booth and chatting with boots as to those who don’t. They’re in the stands rooting RESIDES Gravesend, Brooklyn clients who call ahead to see if “Mr. Jose” will be there. you on, and that’s rare. They actually care about the sport.” REVENUE Under $10 million “He lives to be in the booth,” said ­Eileen While the company’s craftsmanship has WHY HE CAME TO THE U.S. Lopez, who runs the office while Jose and “I will continue long won fans, a design innovation about “Aventura!” his son and CEO, Joseph, are away. “He doing this until 15 years ago dramatically increased de- WHAT’S IN A NAME? Dau is his says he’ll continue doing this until his last my last breath mand. A longtime client asked if Der could mother’s maiden name. breath,” she added, translating for Der, who ” make him a calfskin boot with a zipper in A NEW SILHOUETTE Once Der emigrated from Cuba in the 1940s but often the back. At that point, professional rid- Dau innovated zippered riding prefers Spanish over English for nuance and emphasis. ing boots were pull-ons that required a bootjack and a boots, the silhouette also changed. Der discovered his calling when apprenticing with his friend—or two—for removal. Now, Der said, only about “It used to be more straight; now it’s more contoured,” Der said. Son uncle as a child. “I liked working with the leathers,” he said. 1% of his customers want the old-fashioned kind. ­Joseph has introduced a bolder He moved to New York in the ’40s and opened a work- Der Dau’s handcrafting methods, however, remain the style, including exotic stingray, shop in Flatbush. It was moved to Gravesend, Brooklyn, 20 same, which can make hiring a challenge, as skilled crafts- alligator and lizard leathers, and years ago. A recreational rider, Der knows his way around a man have become increasingly rare, Der said. His work- colored soles. horse, but he shrugs off any suggestion that this contributed force is largely made up of Central American immigrants THAT’S BESPOKE Cobblers take to Der Dau’s success. Its expertise, he said, is in bespoke, who learned the trade in their home country. molds of clients’ feet and measure ankles and calves for a perfect fit. handmade boots, which cost $2,000 to $4,500 a pair. The only other difficulty is that his Nicaraguan-born Since it was founded more than 50 years ago, Der Dau wife, who accompanies him to shows, doesn’t share his HORSE SHOW REGULAR Der will be at The Hampton Classic has shod Olympians, presidents—Ronald Reagan sought love of life on the road. “She would like to stop traveling so Aug. 27 to Sept. 3.

BUCK ENNIS out Der—and celebrities, such as Madonna and Arnold much,” he said. — KIM VELSEY

August 21, 2017 | CRAIN’S NEW YORK BUSINESS | 25

P025_CN_20170821.indd 25 8/17/2017 5:42:27 PM SNAPS

Celebrating Amadeus Lincoln Center for the Performing Arts kicked off its annual Mostly Mozart Festival with a gala at David Geffen Hall honoring the cast of the Amazon series Mozart in the Jungle. Bernadette Peters, who co-stars in the show about the lives of classical musicians in New York, introduced the program celebrating Mozart and his contemporaries.

Louis Langrée, Lincoln Center’s Renée and Robert Belfer music director, and Jane Moss, the Ehrenkranz artistic director, at the gala, which raised close to $600,000.

Lincoln Center President Debora Spar with Mozart in the Jungle cast members Bernadette Peters, Gael García Bernal, Lola Kirke and Saffron Burrows at the July 25 event.

Supporting care on the East End Broadway takes a bite out of cancer The American Cancer Society held Taste of Hope Comes to Broadway, a smaller Stony Brook Southamp- version of its annual Taste of Hope fundraiser, July 24. Actors Geneva Carr, Clarke ton Hospital held its Thorell, Brenda Vaccaro and Tony Award winner Ruben Santiago-Hudson 58th annual fundraiser. attended. Star chefs provided small bites. The event raised $5,000 to supplement the The event was chaired $180,000 raised by the signature event this past spring. by Tony Award–winning playwright Terrence McNally, here with his husband, Broadway producer Tom ­Kirdahy; Marigay McKee, founder and CEO of Luxe Consulting; and Bill Ford, CEO of General Atlantic.

Lawrence O’Donnell, host of a show on MSNBC, and Mark D. Friedman, a broker at Halstead Property, attended the benefit at Hilary Geary Ross and her husband, U.S. Secretary of Commerce Wilbur Ross, a condo building being with Audrey Gruss and her husband, Martin Gruss, president of Gruss & Co. ­developed by Halstead The Aug. 5 benefit, held on the institution’s grounds, raised $1.5 million. ­Property Development ­Marketing.

MICHAEL LOCCISANO/GETTY IMAGES FOR LINCOLN CENTER, SHERYL CHECKMAN, ANN PRESLEY/PMC MICHAEL LOCCISANO/GETTY IMAGES FOR LINCOLN CENTER, SHERYL SEE MORE OF THIS WEEK’S SNAPS AT CRAINSNEWYORK.COM/SNAPS. GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO: [email protected].

26 | CRAIN’S NEW YORK BUSINESS | August 21, 2017

P026_CN_20170821.indd 26 8/18/2017 4:28:17 PM FOR THE RECORD*

NEW IN TOWN facility-services provider, actions worth $855,050. He RETAIL Brooklyn. The bakery and represented the landlord, acquired GCA Services now holds 276,081 shares. ■ The Michaels Cos., owner café owned by Starbucks Patrician Associates. CBRE ■ Circa Brewing Co. Group, a facility-services of the Michaels arts-and- plans to open a commissary represented the tenant. 141 Lawrence St., Brooklyn provider that works mostly ■ Colgate-Palmolive Co. crafts chain, signed a kitchen on the ground floor This Downtown Brooklyn with commercial clients and (CL-N) 20,000-square-foot lease at of the 3-story property. ■ Biscuits & Bath agreed to brewery believes that beer educational institutions, for Patricia Verduin, vice pres- 1633 E. 16th St., its second The asking rent was $44 take 3,100 square feet at the and pizza are a perfect approximately $1.25 billion ident and chief technology Brooklyn location. The per square foot. SCG Retail base of 71 Broadway. The match. The beer is brewed in cash and stock. ABM officer, sold 3,833 shares of Queens-based developer brokered the deal for the dog-boarding and groom- on-site, and the pizzas are announced that it expects common stock for $72.41 of the 4-story Midwood tenant. The co-owners of ing-services company plans wood-fired. a revenue contribution of per share in a transaction project opening in 2020, the property are PWR and to open the Lower Manhat- approximately $1.1 billion worth $277,547. She now AB Capstone, confirmed FM Capital. tan location by early next ■ Lulu Frost with adjusted earnings holds 56,583 shares. the deal. The asking rent year. The asking rent for the 7 Prince St. before interest, tax, depre- was in the high $50s per ■ Bank of America renewed 13-year deal was $130 per Designer Lisa Salzer-Wiles ciation and amortization of square foot. its 8,888-square-foot lease square foot. Winick Realty opened her first standalone about $100 million within REAL ESTATE at 1066 Lexington Ave. Group represented the boutique, in NoLita. The the first year. ■ Princi took 18,000 square for an additional 10 years. landlord, Equity Residen- shop sells costume, fine and COMMERCIAL feet at 160 Van Brunt St., Newmark Knight Frank tial, and the tenant. ■ custom jewelry. ■ McKool Smith agreed to BANKRUPTCIES take 64,120 square feet at ■ VR World 1 Manhattan West. The 4 E. 34th St. ■ BICOM NY firm, which has more than DEALS ROUNDUP This virtual reality theme d/b/a Jaguar Land Rover 175 trial attorneys, plans to TRANSACTION SIZE BUYERS/ TARGET/SELLERS [IN MILLIONS] INVESTORS TRANSACTION TYPE park in Midtown offers 50 Manhattan move from 1 Bryant Park. interactive experiences for 787 11th Ave. The asking rent for the Nxstage Medical Inc./ $2,096.8 Fresenius Medical Care SB M&A $39 to guests who would The car dealership filed 15-year deal was $108 per Sprout Group (Manhattan) Holdings Inc. like to escape without leav- for Chapter 11 bank- square foot. The tenant was BAM Technologies LLC/ $1,580.0 The Walt Disney Co. SB M&A ing Manhattan. ruptcy July 10. The filing represented by The Amend MLB Advanced Media LP (Manhattan) cites estimated assets and Group. The landlord, ECN Capital Corp., railcar assets $935.0 Napier Park Global Capital SB M&A liabilities of $10,000,001 to Brookfield Property Part- in Element Rail Leasing II Portfolio/ (US) LP (Manhattan) MOVES AND EXPANSIONS $50 million. The creditors ners, was represented by ECN Capital Corp. with the largest unsecured Cushman & Wakefield and Supreme Industries Inc./ $370.7 Wabash National Corp. SB M&A ■ Burger & Lobster claims are J.T. Magen & Co., an in-house team. Norges Bank Investment Management; 132 W. 43rd St. owed $10,000,000; Energy Royce & Associates LP (Manhattan) The London-based chain Design Service Systems, ■ Reproductive Medicine Anchor Bancorp/ $288.7 Old National Bancorp SB M&A that serves only burgers, owed $183,681; and CDT Associates of New York Context BH Capital Management LP; Stieven Capital Advisors LP; lobsters and lobster rolls, Resources, owed $173,969. signed an early renewal Stilwell Value LLC (Manhattan) with salad and fries, opened and expansion lease at 635 its second Manhattan out- ■ Dunrite N.Y. Inc. Madison Ave. The fertility 100 New Oxford Street, London/ $234.6 AEW Europe SA; Thor Equities SB M&A Tishman Speyer Properties LP LLC (Manhattan) 9008 Fifth Ave., Brooklyn post, in the Theater District. clinic previously occupied (Manhattan) The home-improvement 25,000-plus square feet ■ Calligari’s and renovations company but plans to occupy 30,000 ECN Capital Corp., approximately $173.0 ITE Management LP FB M&A 1,550 railcar assets/ECN Capital Corp. (Manhattan) 220 E. 57th St. filed for Chapter 11 bank- square feet of the build- The Italian-made-furniture ruptcy July 7. The filing ing at the corner of East Property at 16 Court St., $171.0 CIM Group Inc. SB M&A Brooklyn, N.Y. (Brooklyn) store opened its second cites estimated assets of $0 59th Street. Savills Studley SL Green Realty Corp. (Manhattan) city location, on the Upper to $50,000 and liabilities of represented the tenant. East Side. The showroom $50,001 to $100,000. There The landlord, Ashkenazy iFlix Sdn Bhd $133.0 Catcha Group; EDB Investments GCI Pte. Ltd.; Evolution Media Capital features furniture that can were no creditors with Acquisition Corp., was LLC (Manhattan); Jungle Ventures; be customized to suit any unsecured claims. represented in-house. The Liberty Global Europe Inc.; style or space. asking rent for the deal was PLDT Inc.; Sky plc; The Hearst Corporation (Manhattan) ■ Mezcals 86 Rest. Corp. not disclosed. ■ Chipotle Next Kitchen 1474 86th St., Brooklyn Morris Publishing Group LLC, $120.0 New Media Investment SB M&A 504 Sixth Ave. The Mexican restaurant ■ Schlesinger Associates many newspapers and related assets/ Group Inc. (Manhattan) Morris Publishing Group LLC The fast-casual Mexican filed for Chapter 11 bank- inked a deal for 17,587 chain’s test kitchen in ruptcy July 7. The filing square feet at 711 Third Ave. Perrigo API Ltd./ $110.0 SK Capital Partners FB M&A Greenwich Village has cites estimated assets of $0 The marketing research firm Perrigo Co. plc (Manhattan) menu items not available to $50,000 and liabilities of plans to occupy the entire Yuan Chuan (Cayman) Ltd. $90.0 Olympus Capital Holdings GCI at its other 2,000-plus U.S. $50,001 to $100,000. There ninth floor of the 20-story Asia (Manhattan); UOB Venture Management Pte. Ltd. locations, such as frozen were no creditors with building between East 44th margaritas, new salads and unsecured claims. and East 45th streets. CBRE Appboy Inc. (Manhattan) $50.0 Battery Ventures; GCI queso, a Tex-Mex-style represented the tenant. The ICONIQ Capital LLC cheese. landlord, SL Green Realty Tremor Video Inc., Buyer Platform $50.0 Taptica International Ltd. SB M&A STOCK EXCHANGES Corp., was represented in- Tremor Video Inc. (Manhattan) ■ Jing Fong house. The asking rent was Cyalume Technologies Holdings Inc./ $41.4 Arsenal Capital Partners FB M&A 380 Amsterdam Ave. ■ JPMorgan Chase & Co. $65 per square foot. Catalyst Investments LP; Columbus (Manhattan) The Chinatown institution (JPM-N) Nova (Manhattan); Prairie Street Capital Inc. ■ opened a second location, Marianne Lake, CFO, sold Merus Global Invest- Selected deals announced for the week ended Aug. 10 involving companies in metro New on the Upper West Side. 17,596 shares of common ments signed a relocation York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing This outpost won’t have stock for $91.58 per share lease for 8,300 square feet at shares of a company without the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing shares of a company with the servers pushing dim sum in a transaction worth 3 Park Ave. The interna- participation of a financial buyer. GCI: Growth capital investment represents new money carts, but it will offer the $1,611,411. She now holds tional trading company invested in a company for a minority stake. SOURCE: CAPITALIQ dim sum and Cantonese 44,711 shares. plans to move from 88 dishes that made the origi- Pine St. during the third nal a tourist attraction. ■ AllianceBernstein ­ quarter. The asking rent GET YOUR NEWS ON THE RECORD * Holding LP (AB-N) for the 11-year deal was To submit company openings, moves or real estate deals, or to receive further information, ABOUTemail [email protected] SECTION. James Gingrich, chief op- $75 per square foot. The MERGERS & erating officer, sold 35,000 landlord, Cohen Brothers For the Record is a listing to help businesspeople in New York find opportunities, potential ACQUISITIONS shares of common stock at Realty Corp., was represent- new clients and updates on customers. Bankruptcy filings from the eastern and southern prices ranging from $24.25 ed in-house. Cushman & districts of New York are listed alphabetically. Stock transactions are insider transactions at New York companies obtained from Thomson Reuters and listed by size. Real estate listings ■ ABM Industries, a to $24.65 per share from Wakefield represented the are in order of square footage. building-maintenance and July 13 to July 19 in trans- tenant.

August 21, 2017 | CRAIN’S NEW YORK BUSINESS | 27

P027_CN_20170821.indd 27 8/18/2017 9:08:41 AM PHOTO FINISH

Community service afé Buunni was open for business Aug. 16, but almost no one was being paid to work there. The staff at the Washington Heights coffee Cshop had taken a collective beach day in the Rockaways, organized by husband-and-wife owners Elias Gurmu and Sarina Prabasi. They asked their regular customers to run the store in place of the eight-person workforce. “There was big enthusiasm,” said Prabasi. “I had to take down the sign-up form because there weren’t enough slots.” The volunteers, including Scott Hinson, pictured, were each given 45 minutes of train- ing the day before and worked in shifts the day of, handling barista, cashier and hostess duties. By closing time, at 7 p.m., Gurmu and Prabasi’s faith in their regulars was rewarded with tales of a ­calamity-free day. “The reason this can happen is that we have a good relationship with our customers,” said Prabasi. “We’ve known some of these volun- teers since the first day we opened. It’s a very special community here.” — GERALD SCHIFMAN BUCK ENNIS

28 | CRAIN’S NEW YORK BUSINESS | August 21, 2017

P028_CN_20170821.indd 28 8/18/2017 4:26:12 PM Opening Remarks from Deputy Mayor Alicia Glen Housing and Economic Development, City of New York

TUESDAY, SEPTEMBER 26, 2017 Cipriani 42nd Street 12:00 P.M. – 2:00 P.M. 110 East 42nd Street

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CN018328.indd 1 8/18/17 11:11 AM Building Owners. Time is running out... New York City is currently offering an amnesty program to waive civil and criminal penalties if there is improper gas work or appliances in your building.

For more information on the program contact NYC Department of Buildings customer service (212) 393-2406 or visit gasamnesty.nyc

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