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Sunnyside on Track for Major Land Grab 20150209-NEWS--0001-NAT-CCI-CN_-- 2/6/2015 7:38 PM Page 1 ONE GUY ONE BLOCK and a burgeoning booze empire CRAIN’S® ® NEW YORK BUSINESS PAGE 21 VOL. XXXI, NO. 6 WWW.CRAINSNEWYORK.COM FEBRUARY 9-15, 2015 PRICE: $3.00 Sunnyside on track for major land grab Mayor, guv, others eye huge Queens rail yard, but ownership issues, cold cash stand in way BY ANDREW J. HAWKINS AND JOE ANUTA Seems like everybody with big ideas for the future has their eyes on the same prize: an obscure plot in Queens. For Mayor Bill de Blasio last week, it became ground zero for his self- described “game changer” proposal to build 11,250 affordable apartments. Hold on, said Gov. Andrew Cuomo. He called the property the staging area for another kind of game changer: the tunnels that will bring the Long Island Rail Road into the heart of midtown. Meanwhile, former Bloomberg ad- ministration Deputy Mayor Daniel Doctoroff sees it as the perfect spot for a huge new money-spinning conven- tion center, among other things. All those dreams now hang like a gilded cloud over a roughly 200-acre property that one real estate insider likens to “a giant bowl of spaghetti that will never be untangled,” and others have decried for years as a massive scar on the western flank of the city’s second-most-populous borough. Welcome to Sunnyside Yards, where only one thing about what hap- pens next on the city’s largest, best- situated vacant lot is clear: It’s gonna take a lot of time and money. Corporate venture capitalists came, “I think it’s very important for politicians to have visions,” said saw and now hope to conquer the very upstarts Mitchell Moss, director of the Rudin Center for Transportation Policy and Management at New York University. that felled their once-mighty media empires “But a lot of visions are nightmares.” For openers, whatever ultimately rises at Sunnyside Yards will stand on BY MATTHEW FLAMM a platform that must be built over a labyrinth of active train tracks used by PAGE 19 Amtrak, the LIRR and New Jersey Transit. Ownership of the site is noth- See SUNNYSIDE on Page 20 06 5 REPORT SMALL THE LIST BUSINESS How to scale Largest executive your biz to make a billion P. 11 recruiters P. 13 NEWSPAPER 71486 01068 0 20150209-NEWS--0002-NAT-CCI-CN_-- 2/6/2015 7:41 PM Page 1 REPORTER’S NOTE The quiet man FYICRAINSNEWYORK.COM Meet the new speaker, same as the old speaker. Carl Heastie, who Scandals may finally was elected last Tuesday to one of the most powerful posts in state spur ethics reform government, is described by his he politician at the center of Assembly colleagues as a “tough one of the most bizarre negotiator,” “shrewd” and corruption plots in New York “sphinxlike.” Such adjectives were Andrew J. Hawkins T history was convicted by a jury last frequently used to describe the week. Now, with former Queens state man Mr. Heastie replaced, Sen. Malcolm Smith (pictured) facing Sheldon Silver. “He’s very cagey,” Assemblyman up to 45 years behind bars and Joseph Lentol said of Mr. Heastie. “Believe it or Assembly Speaker Sheldon Silver not, he’s like Shelly in that way.” Robert stepping down as speaker following ap images Kappstatter, former Bronx bureau chief for the his arrest in a separate case, the time Daily News (and my former boss), nicknamed Mr. may finally be ripe for ethics reform in Heastie “The Silent One,” and Assemblyman Albany. ¶ Mr. Smith, a Democrat, was found to have bribed Republican county officials so he Jeffrey Dinowitz joked, “His favorite comment to could run as a GOP candidate in the 2013 mayoral race.The U.S. attorney behind the Smith and the press is ‘No comment.’ ” Truth is, Mr. Heastie Silver prosecutions, Preet Bharara, said last month that more corruption cases are on the way. ¶ also has said that about himself. When he does New Assembly Speaker Carl Heastie has vowed to create a new Office of Ethics and Compliance have something to say, it’s almost always brief. My and to support limits on outside income and fuller disclosure of that income. Gov. Andrew Cuomo last one-on-one encounter with the Bronx says he won’t approve the next state budget, due March 31, without passage of a five-point ethics assemblyman was Election Day 2013. A solo, reform, and Mr. Heastie said he does not see the demand being a problem. Senate Republicans, somewhat lonely-looking Mr. Heastie stood off to pleased that public financing of campaigns was not among the governor’s five points, said they the side at the cavernous Park Slope Armory while would consider his proposal. —chris bragg revelers and reporters dashed about in preparation for Bill de Blasio’s victory speech. A Heastie press FATAL CRASH. The National Trans- fornia, where his family lives. He will HOORAY! aide pulled me aside and urged me to interview his portation Safety Board is investigat- be replaced by Press Secretary Phil ing last week’s collision between a Walzak. … NO MORE PITS. After TWO BALD boss, who at the time also was the Bronx Metro-North train and a Mercedes- nearly 150 years, futures-market op- EAGLES have Democratic Party leader. Asked for his reaction to a Benz SUV that was on the tracks.Six erator CME Group Inc. is closing built a nest in New York City— Democrat’s winning the mayoralty for the first time people were killed. The victims in- most of its trading pits in New York the first time cluded the car’s driver,a curator at the and Chicago by July 2. The S&P that has in 20 years, Mr. Heastie chose his words carefully. Metropolitan Museum of Art and a futures market will remain at the happened in at “I think it’s good that the most Democratic city in least 100 managing director at a finance firm. CME. … LOSING CACHET. Women’s years. the nation once again has a Democratic mayor.” … PFIZER BETS BIG. The pharmaceu- clothing retailer Caché, which hasn’t And then ... silence. tical giant acquired Hospira Inc., an been profitable since 2011, filed for ap images injectable-drugs maker, for $15.2 Chapter 11 bankruptcy protection.It billion. Pfizer is hoping that the plans to close some of its 218 stores OY VEY! generic-drug knockoffs that Hospira and renegotiate leases. … MACY’S THE 7 TRAIN was halted for hours after THIS WEEK IN CRAIN’S produces will be a lucrative source of GLAMS UP. Macy’s bagged Bluemer- an umbrella fell on the third rail and the revenue. … HOSPITALS cury Inc. for $210 million to help tracks iced over while service was down. IN THE BOROUGHS-------------------------- 3 CONSOLIDATE. Mon- boost the depart- tefiore Medical Cen- ment-store chain’s OY VEY IN THE MARKETS----------------------------------4 ‘I think we ter will assume opera- customer base. Blue- THE INSIDER -----------------------------------------------5 tional control of finally mercury, a Washing- OPINION-------------------------------------------------------------8 Yeshiva University’s ton, D.C.-based lux- Albert Einstein Col- understand ury beauty and spa STEVE HINDY-----------------------------------------------9 lege of Medicine, each other’ company,operates 60 GREG DAVID ------------------------------------------------9 almost a year after the —Mayor Bill de Blasio to stores in 18 states. … hospital made an Staten Island Chuck at the MAGAZINE FOLDS. op-ed, he suggested ways to protect REAL ESTATE------------------------------------------- 10 undisclosed financial city’s Groundhog Day Yue, a quarterly pub- consumer privacy and ensure that In- REPORT: investment in the event, during which the lication that targeted ternet service is available in remote university. Mean- mayor did not handle the wealthy Chinese vis- areas.His proposal is subject to a vote SMALL BUSINESS---------------------11 while, North Shore- unpredictable rodent itors and New York- on Feb. 26. … BOOK DRAMA. Pub- THE LIST ---------------------------------------------------------13 LIJ is in talks to ac- ers, has folded after lisher HarperCollins was accused of quire Maimonides Medical Center. four years. Yue was a joint venture be- planning to publish a new novel by GOTHAM GIGS CLASSIFIEDS -----------------------------------------16 The deal would mark North Shore- tween the Observer Media Group Harper Lee, the 88-year-old author From Broadway to the FOR THE RECORD---------------------------18 LIJ’s entrance into Brooklyn. … and China Happenings, a multime- of To Kill a Mockingbird, without her Oscars, production designer MAYOR’S AIDE DEPARTS. Peter dia and consulting agency. … NET consent. HarperCollins refuted the NEW YORK, NEW YORK ---------- Derek McLane likes to make 21 Ragone,Mayor Bill de Blasio’s senior NEUTRALITY. Federal Communica- rumor, quoting Ms. Lee, whose a scene. P. 6 SOURCE LUNCH--------------------------------22 adviser, who is credited with shaping tions Commission Chairman Tom health is failing, as saying she is the mayor’s public image, is leaving Wheeler said the Web should be reg- “happy as hell.” the administration to move to Cali- ulated as a public utility. In a Wired —emily laermer CORRECTION Michael Munoz was promoted to partner at Golenbock Eiseman Assor Bell & Peskoe. The name of the law firm was misspelled in the Jan. 26 Executive Moves. vol. xxxi, no. 6, february 9, 2015—Crain’s New York Business (issn 8756-789x) is STORIES TO WATCH THIS WEEK published weekly, except for double issues the weeks of June 29, July 13, July 27, Aug. 10, Aug. 24 and Dec. 21, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Post- Feb. 9: First public Feb. 12: Citi Bike Feb.
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