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HEALTH CARE CORPORATE Hope begins to fade LADDER for a Harlem Financial hospital on crisis creates opportunity the brink of for banker ® bankruptcy PAGE 33 PAGE 19

VOL. XXIV, NO. 42 WWW.CRAINSNEWYORK.COM OCTOBER 20-26, 2008 PRICE: $3.00 BRACING FOR THE WORST Bloomberg could lose, Titans recast even if TOP STORIES SL Green’s love Goldman Sachs and Morgan Stanley trade he wins of Manhattan high leverage and profits for survival scares off investors City’s poor economy BY AARON ELSTEIN PAGE 3 would tarnish a lloyd blankfein and john mack have made third term as mayor Need that Hebrew their choice. The heads of Goldman Sachs and text fast? Get Morgan Stanley, respectively, are surrendering their high-leverage, high-profit ways—and BY ERIK ENGQUIST prayers online at many of the jobs and lavish salaries they sup- Jewberry.com ported—for a shot at longevity as they convert mayor michael bloomberg was their firms from freewheeling investment a picture of calm when he an- NEW YORK, NEW YORK, P. 6 banks to far-stodgier bank holding companies. nounced early this month that he For the firms, and for the city, a lengthy and would seek to change the term-lim- Diverse economy painful downshifting is only beginning. its law and run for re-election. He could help the city “Goldman has been declawed,” says analyst had not even spoken to City Coun- Brad Hintz of Sanford C.Bernstein.“And Mor- cil members about it, he said. But weather recession gan is going to be a work in progress with the outcome of the vote now PAGE 8 for a while.” hanging in the balance, he’s calling As bank holding companies, them personally, trying to stave off both firms will have to live with a political disaster that would Why New York’s more regulation and less of al- dampen the remainder of his term business leaders most everything else, starting and perhaps tarnish his legacy. with pay. Last year, Goldman “If the forces of opposition con- aren’t panicking awarded Mr. Blankfein $68.5 mil- vince the undecideds to vote GREG DAVID, PAGE 11 lion, and the average Morgan em- against this bill, ployee took home $350,000. Such that would be a massive paydays are going to fade huge blow to the AT DEADLINE into legend. mayor,” says Regulators are already begin- Doug Muzzio, a LIZ CLAIBORNE INC. IS ning to force the banks to rein in professor of PINCHING PENNIES. AFTER the leveraged bets that were the public affairs at suffering a 13-year low stock source of their enormous profits. Baruch College. price of $9.75 last week, the Last year, assets at Goldman and “In some ways, clothier announced on Friday Morgan ballooned to about 30 not only is he 26 that chief operating officer times their capital, leaving them then a lame VOTES NEEDED Michael Scarpa will leave the with no cushion to absorb losses. duck, he’s a dead in the City Council company on Nov. 30. Mr. See WALL ST. on Page 7 duck, because he for the term limits Scarpa, who received a base has thrown his extension bill salary of $878,397 in 2007, reputation for to pass will not be replaced.The probity and decision is part of chief honesty out the window.” executive Bill McComb’s Hotels struggle to fill rooms The smart money is still on the strategy to decentralize bill passing the council Thursday company operations and focus with a few more than the 26 votes on the four core brands of as nervous travelers stay away it needs. Juicy Couture, Kate Spade, Yet a win on term limits would Lucky Brand Jeans and Mexx. not necessarily rescue the mayor. Offer discounts, cut rates as cancellations rise WRONG SIDE OF BED Former Public Advocate Mark THE FEDERAL GOVERNMENT’S Green,who narrowly lost the may- DECISION TO BUY STAKES IN NYC hotels saw a downturn in business ed him of the weeks following in the first two weeks of October. oral race to Mr. Bloomberg in financial institutions may BY LISA FICKENSCHER Sept. 11, 2001. 2001, says the extension of term benefit the country, but it’s When the Dow Jones industrial Average limits could lead to a difficult re- dreadful news for investment kevin smith, the general manag- average plummeted 504 points on room rate - 6.5% election campaign and a downer of bank Keefe Bruyette & er of the sprawling New Yorker Sept.15—a reaction to the Lehman Occupancy a third term. See AT DEADLINE on Page 2 Hotel near Pennsylvania Station, Brothers bankruptcy and the sale of rate “Be careful what you wish for,” got a jolt last month that remind- Merrill Lynch—the hotel was im- -11% Hotel room Mr. Green warns. mediately flooded with calls from revenues Beginning in 2003, the city en- people canceling their reservations. -17% joyed five straight years of prosper- 42 Compared with results from the same period in 2007.

5 By the end of the day, the hotel had Sources: J.P. Morgan Chase and Smith Travel Research ity under Mr.Bloomberg.Now,the 17 more cancellations than book- housing fiasco and Wall Street ings, a rare occurrence. meltdown will deplete city rev- ELECTRONIC EDITION “That was a warning signal for of company. The carnage in the enues and force the mayor to raise us that we needed to make plans for stock market over the past two taxes and cut services.Local unem- a difficult time,” says Mr. Smith. weeks is rapidly showing up in ho- ployment is rising faster than it has NEWSPAPER The veteran hotelier has plenty See HOTELS on Page 9 See BLOOMBERG on Page 8 71486 01068 0 CNYB 10-20-08 A 2 10/17/2008 8:06 PM Page 1

AT DEADLINE BRACING FOR THE WORST

Continued from Page 1 Woods.That’s because KBW, customers like Barneys New York a firm that specializes in raising cut orders and buy wardrobe sta- cash for financial institutions, ples instead of the fashion-forward will now have many fewer items for which the company is opportunities to assist banks known. because so many of them are “Retailers are being less com- expected to turn to Uncle Sam, mittal,” says Ruffian co-designer according to analysts at Sterne Brian Wolk. Over the past year, he Agee & Leach, who rate KBW has concentrated his business on shares “sell.” the European market, which now accounts for more than 40% of THE ECONOMIC DOWNTURN sales.To bolster its business,Ruffi- THAT’S FORCING COMPANIES an plans to have customers shop at to shed office space is benefiting its midtown showroom directly. one company. Corporate Suites, which rents out full-service Nonpayment fears offices, will announce this week meanwhile, overseas clothing the opening of a 23,000-square- Designers face manufacturers from China to foot business center on Third Italy have become wary about do- Avenue and East 47th Street. EMMETT McCARTHY ing business with American de- got a temporary rent The new center is the seventh break for his Elizabeth signers for fear of nonpayment. Corporate Suites outpost in Street boutique. Lodis Accessories, which is self- Manhattan and marks the belt-tightening financed and retails at stores in-

fourth time the company has buck ennis cluding Nordstrom and Rocke- expanded in the past six years. feller Center’s Delfino, has spent ing with decreased orders from the last two weeks watching sup- CBS COLLEGE SPORTS Credit crunch, fewer orders force large retailers. To stay afloat, they pliers it has worked with for more NETWORK FIRED 30 EMPLOYEES are cutting overhead costs and than 15 years tighten product de- late last week—25% of its houses to reduce staffs, cut prices slashing prices in hopes of increas- liveries. staff—as it canceled the studio ing sales volume. “Manufacturers are finding it programming that’s typically sold coats. Some local names are already more challenging to get the prod- associated with sports coverage BY ADRIANNE PASQUARELLI Last Wednesday, he convinced closing up shop. Jane Mayle’s ap- uct out,” Paul Diamond, president in favor of high-definition his landlord,the butcher next door, parel store in NoLIta is slated for of 43-year-old Lodis, says. “It cuts game coverage. The layoffs when times were flush, J.P.Mor- to decrease his rent temporarily. closure in February, while hippie- things closer and makes us need to follow the elimination of about gan Chase made Emmett Mc- “Consumers are terrified,” Mr. print dress designer Tracy Feith be more aware and sharper.” 40 positions in February. Carthy an offer he could not refuse, McCarthy says. “I’m just trying to closed one of his two Manhattan To keep her businesses alive, The network is available in doubling the fashion designer’s anticipate six months of no growth boutiques earlier this month. jewelry designer Phyllis Bergman 25 million homes, and is on line of credit to $200,000. But or declining sales.” “Everyone is struggling at all came up with an innovative strate- the verge of announcing when Mr. McCarthy recently hit levels,”says Susan Scafidi,an intel- gy.Since retailers like Kay Jewelers agreements to add five million hard times and came to collect, the Mounting concerns lectual property and fashion law and Fortunoff are stocking 25% homes, according to a network bank reneged. he’s not alone. More than 40% professor at Fordham University less inventory,the jewelry designer spokeswoman. Without the supplemental of retailers report a tightening of School of Law. “It starts with the two weeks ago launched a new cat- credit line, the Project Runway credit by their lenders,according to ability to buy fabric and goes all the alog that acts as an additional dis- CORRECTIONS Season 2 alum, whose September a recent survey by consulting firm way up to how much to stock at re- play. This allows cost-cutting re- revenues were off 30% compared BDO Seidman. Those in the Big tail and whether you can sell at full tailers to keep less of her David Pakman will remain CEO of eMusic until the end of this year, when he will with the previous September, has Apple’s fashion industry,known as price or discount.” merchandise on hand. “[Retailers] become a partner of venture capital firm been forced to downsize his staff, a mecca for emerging designers, Even those who haven’t been cannot afford to have in their Venrock. The Oct. 13 “Hot Jobs” item said cut his prices by 38% and close his face mounting concerns about sur- forced to close have to contend showcases what they used to have,” that he had already left the company. office in the garment center. He vival as the credit crisis affects with fewer orders from retailers she says. Richard Deosingh works for Robert Half now handles his bookkeeping in every aspect of their livelihoods, that are experiencing a crunch in International. This was misstated in “Expert the back of his Elizabeth Street from obtaining materials from credit availability. Luxury fashion COMMENTS Opinions” in the Oct. 13 issue. boutique, behind displays of un- nervous overseas suppliers to deal- house Ruffian has seen upscale [email protected] THIS WEEK IN CRAIN’S

GREG DAVID ------11 THE INSIDER ------12 Queens Museum expansion redux NEIGHBORHOOD of the project’s costs, and the state JOURNAL------15 Art center benefits has pledged $15 million. SMALL BUSINESS------17 from financial crisis; If some of those funds are cut as REPORT: the economic crisis unfolds, the $50 million project project is unlikely to be affected; in HEALTH CARE ------19 to begin in June fact,the expansion is anticipated to THE WEEKS AHEAD ------27 come in under budget thanks to falling prices for commodities like CLASSIFIEDS------28 BY MIRIAM KREININ SOUCCAR steel. REAL ESTATE DEALS ------30 “It is a terrific time for nonprof- the queens museum of art is fi- its to build,”says Ken Levien,pres- BUSINESS LIVES ------31 nally moving forward with its $50 BACK TO THE DRAWING BOARD: The Queens ident of an eponymous construc- CORPORATE LADDER ------33 million expansion—and it has the Museum of Art plans to double gallery space. tion management firm.“Next year, EXECUTIVE MOVES------33 global financial meltdown to because the economy will be slow, BOB LAPE------35 thank. something that costs me a dollar In the spring, when the muse- and Construction, which is over- today should cost 75 cents.” vol. xxiv, no. 42, october 20, 2008—Crain’s um first issued a request for bids, seeing the project, say numerous The museum will remain open New York Business (issn 8756-789x) is pub- lished weekly by Crain Communications Inc., construction companies were so contractors have come forth, during construction, but it will 711 Third Ave., New York, NY 10017. Periodi- flush with work that the relatively though the agency would not re- have to shut down a quarter of its cals postage paid at New York, N.Y. and addi- tional mailing offices. Postmaster: Send address small job attracted few qualified veal names. Bids are due on Dec. 4; this project.” gallery space and present smaller changes to: Crain’s New York Business, Circula- bidders. But as construction activ- work is expected to begin in June The museum, located in Flush- exhibitions. Mr. Finkelpearl ex- tion Department, 1155 Gratiot Avenue, Detroit, ity in the city has plummeted over and to take about two years. ing Meadows-Corona Park, is pects the museum’s annual budget MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a copy, the past few weeks, the museum “We were very upset when we housed in a building that was con- to drop from $4.2 million to $3 $59.79 one year, $109.79 two years. (GST No. saw an opportunity to reopen the didn’t get enough bids,” says Tom structed for the 1939 World’s Fair. million during that time. 13676-0444-RT) ©Entire contents copyright 2008 by Crain Communications Inc. All rights bidding process. Finkelpearl,director of the Queens The expansion will double its size reserved. Now, officials from the New Museum. “The economy falling to about 100,000 square feet. The COMMENTS? York City Department of Design apart could be the best thing for city will put up around $40 million [email protected]

2 | Crain’s New York Business | October 20, 2008 CNYB 10-20-08 A 3 10/17/2008 9:06 PM Page 1

BRACING FOR THE WORST SL Green takes beating

come a stock market proxy for the keep tenants whose leases are com- NY GUYS: “There is no place enticing existing tenants to stay NY’s top landlord entire office market. ing up for renewal. For example, in- else we’d rather with early-renewal offers. be,” says Marc suffers as proxy “SL Green is the most tied to siders are keeping tabs on his nego- Holliday (left) of But investors are worried New York, and there is a negative tiations with Viacom, which has a the firm run by about SL Green’s exposure for local market; impact associated with that,” says lease for 1.3 million square feet at Stephen L. to other property own- loans raise concerns Michael Knott, a senior analyst at 1515 Broadway that will expire in Green. ers through the hun- Green Street Advisors Inc., a trad- mid-2010. dreds of millions of ing and research firm that special- In a weakening market, dollars in loans it has BY THERESA AGOVINO izes in real estate companies. no landlord wants a va- made to them. Just That point certainly isn’t lost on cancy of a million last week, re- this year has been an unmitigated SL Green Chief Executive Marc square feet—especial- searchers at J.P. disaster for all sorts of companies Holliday. ly at a time when Morgan Securities that have seen their earnings and “Our near-exclusive focus on the tenants are vacating forecast that com- stock prices tumble. Even in that city is not in favor with some mercial property dismal context, New York’s largest shareholders,”says Mr.Hol- losses could reach as landlord stands out. Shares of SL liday. “But there is no place HEAVY HITTER much as $250 bil- Green Realty Corp.closed last week else we would rather be.” Stats for SL Green lion nationwide over at $42.58, a plunge of 54% since the the next decade, a beginning of the year—far outpac- Proven resilience Funds from loss rate of nearly 7%. ing the 36% decline in the S&P 500 he says that the city has operations in index. survived many a crisis and $209M first-half 2008 Bad debts And with good reason. will see this one out, too. mr. holliday insists For openers, SL Green’s bets are The near term, however, Change in that even a loan default heavily concentrated in New York, looks ugly. City officials are market value to could offer potential now widely seen as ground zero for predicting that New York’s -$2.5B date in 2008 gains by allowing his the crash of 2008.Here,financial in- Wall Street-driven econo- company to take over the stitutions large and small are fold- my will shed 165,000 jobs debtor’s buildings. One ing,merging or scaling back,leaving over the next two years. By OFFICE of its borrowers is tech- behind millions of square feet of of- the end of next year, the HOLDINGS 30 buildings nically in default now. fice space. Fully 75% of SL Green’s flood of job losses could IN MANHATTAN 24M sq. ft. Unfortunately, Gra- square footage is in its 30 office tow- drive vacancy rates up to mercy Capital, which ers in Manhattan. 13%, from 9% now, accord- OFFICE HOLDINGS provided 9% of SL The company is burdened with ing to Colliers ABR. OUTSIDE 36 buildings Green’s earnings in the two other potential problems. It Mr. Holliday says that first half of this year, has holds $839 million of real estate he has already reduced ask- MANHATTAN 8M sq. ft. several problem borrow-

loans that it has made to other prop- ing rents in some SL Green buck ennis ers.The company is strug- erty owners. In addition, it owns a properties by between 5% gling with nonperforming 16% stake in Gramercy Capital, a and 15%.Overall,he thinks,rents in big blocks of space all over the city. loans and with integrating real estate lender whose shares his buildings will fall 10% to 15%. The number of blocks of more than its $3.3 billion purchase of closed on Friday at $1.75,down 92% One of the questions in the real 100,000 square feet nearly doubled property owner AFR into the from the beginning of the year. estate industry is just how low Mr. in the third quarter versus the year- to Cushman & Wakefield. fold. Gramercy is moving to sell off In many ways, SL Green has be- Holliday is willing to go in order to earlier period, hitting 78, according The credit crisis is only begin- some of the buildings it acquired, as ning to affect vacancy rates. For well as some of its loans. now, SL Green’s portfolio is strong. Mr. Holliday, who is also CEO Only 3% of its space in Manhattan and chairman of Gramercy, says the is vacant, and company executives company is exploring various ways are working hard to keep occupancy to shore up its finances. high. They are prebuilding office Cultural groups fight COMMENTS? [email protected] space to attract new prospects, and slump with discounts MISERY METER

the day the Lehman Brothers an- on their luck. For its Sept. 25 open- Weekly reading on the direction of the city’s economy. Museums, festivals nouncement came out,” says Lisa ing night concert,the group gave free attempt to boost Mallory,vice president of marketing tickets to Lehman Brothers employ- sales and attendance at BAM. “People are feeling that at ees through the now defunct firm’s times like this, it’s indulgent to take young professionals group. It is also U themselves to the theater.” planning to offer discounted tickets CLO DY BY MIRIAM KREININ SOUCCAR Although BAM may take a finan- to a Baroque music concert in De- cial hit by discounting its perform- cember for customers who bring an S the economic crisis is creating a ances, Ms. Mallory says filling the item to donate to a food bank. Y T O bonanza for New York’s culture vul- house is more important right now. The Museum of the Moving Im- N R N tures as institutions implement dis- “We’re just trying to make sure that age in Astoria,Queens—currently in M U counts and freebies,whether to stem our artists have audiences,” she says. the middle of a $65 million expan- Y falling ticket sales or to promote the sion—will expand its hours and turn S kind of good will that instills loyal- Feeling their pain its $7.50 admission fee into a suggest- ty during better times. the chamber music society of ed donation beginning on Nov. 1. Today,the Brooklyn Academy of Lincoln Center, which has also suf- The move isn’t entirely altruistic, Music began offering discounts of as fered a drop in its average ticket price however.“We want to make sure our much as 50% off tickets for its 2008 compared with this time last year, is audience stays with us,” says Next Wave Festival, currently un- forgoing a planned price increase for Rochelle Slovin, the museum’s di- 30K -25 +2% NUMBER OF RECORD LOW HIT BLOOMBERG/ derway. Executives at the perform- the 2009-2010 season. “It’s a direct rector.“I think this sends a powerful CONSTRUCTION BY STATE CRAIN'S NY + ing arts center say that ticket sales result of the crash,” says Catherine message to the people who are going JOBS MANUFACTURING STOCK INDEX METER have dropped by 10% on average in Ogden Levin, director of marketing to support us financially and with to be lost by 2010 INDEX weekly gain (NY Bldg. Cong.) (Fed Res. Bank) CHANGE from the past four weeks, and more peo- for the Chamber Music Society. tushies in the seat in the future.” previous week ple are choosing the cheapest seats. In addition, the Chamber Music “I can almost track the falloff to Society is trying to help those down COMMENTS? [email protected]

October 20, 2008 | Crain’s New York Business | 3 CNYB 10-20-08 A 4 10/17/2008 9:07 PM Page 1

Health Department issues IN THE MARKETS mass citations to food chains edited by Erik Ipsen McDonald’s and day, and encourage New Yorkers to TOP VIOLATORS make small changes in their eating Dunkin’ amass most habits.The program has made even 1. McDonald’s 103 citations health officials think twice about Avis stock in painful skid calorie violations 2. Dunkin’ Donuts 89 their food choices. “I’ve given up tuna fish and chick- vis budget group inc. boasts a 22% share of the U.S. BY ELISABETH BUTLER CORDOVA 3. Crown Fried Chicken 39 en salad,” says Dr. Mary Bassett, the auto rental market. For shareholders, lately owning a 4. Kentucky Fried Chicken 32 city’s deputy commissioner of health stake has been a license to lose. The company’s shares fast-food titans McDonald’s and Starbucks Coffee promotion and disease prevention. A 5. 26 have shed value faster than a rented Dunkin’ Donuts have garnered the Subway 26 Noting that sandwiches made with most citations from the city for vio- those mayonnaise-laden dishes of- Lamborghini, skidding 80% this year. lating new regulations that require 7. Golden Krust Caribbean ten pack 200 to 300 more calories Avis’ fortunes are closely tied to those chain restaurants to post calorie in- Bakery & Grill 24 than a simple turkey sandwich, she of the travel industry,as well as the health formation on their menu boards. 8. Burger King 23 says, “without that information [on of the used-car and financial markets.

In the five months since the rule Domino’s Pizza 23 the menu], I wouldn’t have guessed, bloomberg news has been active, the city has issued Papa John’s 23 and I’m a medical doctor.” And right now, all are suffering. TRY HARDER 682 violations. About 300 citations Some restaurant owners are fum- Domestic air travel is down by more Source: NYC Department of Health and Mental did not carry fines because they were Hygiene ing over the new law. The New York than 4% so far this year,and Avis is more given during a six-week grace peri- State Restaurant Association is con- od. Since then, 388 violations have tinuing to fight the regulations in vulnerable than others because 80%of its been issued; they carry fines of be- as dictated by the regulations. For court,and a decision is due soon from revenues come from airports, compared tween $200 and $2,000 each. instance, a few restaurants were the Second Circuit Court of Appeals. with an industry average of 60%. The Golden Arches had the fined for putting the information in “We’re not opposed to giving out In addition, the company’s Budget highest number of violations, with the wrong place or using lettering the information, but we feel that the 103, 49 of which were subject to that was too small. restaurants should have some ability Truck unit, which accounts for nearly fines. Dunkin’ was second, with 89 to determine the best way to do it,” 10% of revenue, is being hit by a falloff citations, 35 of which were subject Broader campaign says Chuck Hunt,executive vice pres- in demand for rental trucks as fewer people buy new houses and to fines. the caloric menu rules are part of ident of the restaurant association. move. “We’re working with our owner- the city Department of Health and The New York City menu rule operators and the New York Board of Mental Hygiene’s fight against obe- and a similar statewide policy in In the second quarter, Avis’ profits tumbled 35% from year- Health to ensure our compliance with sity and weight-related diseases California were the first of their earlier levels—following two consecutive quarters of multi- the regulation,” says Jennifer Nagy, such as diabetes and heart disease. kind,but health officials expect oth- million-dollar losses. marketing manager for McDonald’s More recently, the city unveiled a er places to replicate the concept. New York region. Dunkin’ Donuts subway advertising campaign that “I think the restaurant industry As a big borrower with a fleet of year as high-end shoppers go into did not return calls for comment. gives riders examples of common sees this as a growing way of doing more than 360,000 vehicles to buy hibernation. The company recently Some citations went to restau- foods and their calorie counts. business,” Ms. Bassett says. and maintain, Avis is also heavily reported an 11% plunge in same- rants that did not display any calorie The idea is to put typical meals in dependent on the credit market. store sales in September and warned data at all, while others punished perspective, relative to a recom- COMMENTS? Though it successfully raised $1.1 of “challenging” conditions—and eateries for not posting information mended diet of 2,000 calories per [email protected] billion earlier this year, skittish in- further sales dips. Meanwhile, vestors remain nervous. hopes that Iceland’s Baugur Group Analysts agree that those worries would make a bid have been crushed will fade someday, but for now in- by that country’s economic collapse. vestors interested in the car-rental All is not lost: Mexican billionaire market would be advised to look Carlos Slim is reportedly snapping elsewhere. up Saks shares. “Hertz is really the premier car rental operation in the U.S.,” says John Healy,a senior analyst at FTN Satellite radio Midwest Securities Corp. enters low orbit —hilary potkewitz for 40 cents, you can buy a banana or a share of Sirius XM Radio—an outfit with 19 million subscribers, nearly 300 channels and forecasted revenues this year of $1 billion.Even at these levels, the banana may be the better bet. Sirius has yet to turn a profit, and in 2009 must refinance a big slug of Saks sacked debt. Mean- WWW.11WEST19STREET.COM while, rivals are sprout- CHELSEA • FLATIRON • UNION SQUARE on two fronts ing up, from in recent years, investors in Saks iPods, to de- FOR LEASING INFORMATION cheered as the venerable depart- vices that al- • 26,000 sf ment store upgraded service levels, low users to PLEASE CONTACT: focused on luxury goods and even put 13,000 • Full floor identity picked up a rich foreign suitor.They Internet radio stations on a comput- Michael Kaufman aren’t cheering now.They’re fleeing, er thumb drive—as opposed to pay- • Newly renovated lobby 212-471-4320 pushing the shares down 45% in the ing Sirius $12.95 a month for a sub- last three months and 72% so far this scription. [email protected] • NBI for qualified Tenants Grant Greenspan • Close Proximity to 212-471-4340 BACK WITH A VENGEANCE Transportation [email protected] In a tumultuous week, glimmers of hope for an easing in the credit +106% +98% crisis sent some of the THE KAUFMAN ORGANIZATION most badly beaten +60% financial stocks WWW.KAUFMANORGANIZATION.COM rocketing upward. Ambac Morgan Stanley MBIA

4 | Crain’s New York Business | October 20, 2008 CN012305 8/15/08 4:10 PM Page 1

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© 2008 American Express Company. Terms, conditions, and restrictions apply. CNYB 10-20-08 A 6 10/17/2008 6:45 PM Page 1

We are pleased to announce that Winoker Realty has NEW YORK,NEW YORK acquired Miller & Partners. edited by Valerie Block Marc S. Miller has joined the fi rm as Executive Vice President. Orthodox BlackBerry eed to daven but don’t have a prayer book? Jewberry.com can help.The site, which launched quietly a year ago, allows users to download all 462 Seventh Avenue N manner of Hebrew text to—you guessed it—a BlackBerry, New York, NY 10018 so you can connect with God anywhere, anytime. 212.519.2000 The concept came to Yeshiva University graduates winokerrealty.com Jonathan Bennett and Jonathan Kestenbaum when they first began using their PDAs and saw a similar service, Pilot Yid, for the Palm Pilot. Jewberry cost less than $50,000 to develop and through word-of-mouth has attracted some 10,000 subscribers who pay a $30 fee to download texts like Tehillim, the psalms. Up next: Talmudic tractates. “The same way people want access to e-mail all the time, Jewberry gives them access their prayers all the time,” Mr. Bennett says.

Clicquot at Greenwich Village Frederic Edwin Church, just cut a deal bistro Paris Commune.The with a wealthy neighbor of the What’s Happening with the Job Market? festivities went on despite reports Olana State Historic Site to create of major layoffs at the magazine’s a three-acre farm next year.The parent, Niche Media. site will provide 20% of the Find out at Crain’s City Facts online, complete with interactive Of course, table chatter restaurant’s produce, including inevitably turned to the economy. asparagus, cucumbers, eggplants, charts and graphs. Go to crainsnewyork.com/cityfacts. Niche’s national account director, beans and tomatoes. Andrea Greeven Douzet, let on that Joe Buchman, a lawyer and “panicked” foodie, is not clients had been I’LL TAKE THAT charging the threatening to WITH ANTIOXIDANTS restaurant to use pull their ads for his land. “He’s the coming year POM WONDERFUL, the friends with as they reviewed company that turned Jean-Georges and their budgets. pomegranate juice Daniel Boulud,” Such worries into a sensation, just says Olana co- Sweet read weren’t on David launched a $4 mil- owner Patrick Manela’s mind. lion ad campaign Resk.“So we on the Web The vice to introduce its lat- figured we Long established honey magazine will soon make president of est drink, POMx should take him a comeback, but its days in print strategic Iced Coffee. up quickly on commitment are still over.The once-hot title marketing for The California company fig- this before he returns early next year as a daily sample sale site ured New Yorkers would cotton offers it to Weiser LLP Web site, social network and ideeli.com said to its antioxidant-laced java, so it them.” Certified Public Accountants monthly digital magazine targeting that the year- rolled out the beverage here African-American women 18 to old purveyor of first. Though some consumers 34 years old—just as it did when cut-rate Lanvin may be hard-pressed to pay Channel Amy DuBois Barnett was its high- and Carlos $2.99 for a soft drink these traffic profile editor in the early 2000s. Falchi just had days, Thomas Mooney of POM, “We want to resurrect Honey the best week in fios tv boasts New York City to the who grew up in Guatemala, 135 West 50th Street New York for our core audience and also its history. says: “I’ve seen broke. We’re not that it offers build it globally,” says Philmore more HD New York, NY 10020 business community getting there anytime soon.” Tel 212.812.7000 Anderson, chief executive of Sahara Where channels than its Fax 212.375.6888 For nearly a century,Weiser has provided Media, which paid $650,000 to diners rivals. Come Long Island accounting, tax, and consulting services, such acquire the former Vanguarde January, Verizon’s new cable 3000 Marcus Avenue as state and local tax planning, internal audit Media title in 2005. He just got eat locally service will give viewers more Lake Success, NY 11042 outsourcing, and business restructuring, financing for the launch. public-access channels, too. Tel 516.488.1200 to private clients and business enterprises, “We’re avoiding the heavy olana is the latest restaurant Time Warner Cable and Fax 516.488.1238 including closely-held and emerging entities, costs of print publishing,” he says. to hop on the locavore Cablevision currently carry four Westchester in a variety of industries including: “With our database, we’ll have an bandwagon.The Gramercy Park such channels per borough, airing 660 White Plains Road audience of 4 million on day one.” newcomer (below), named after shows ranging from Democracy Suite 430 • Real estate the estate of 19th-century Now to Da Bomb Music Video Tarrytown, NY 10591 • Manufacturing and distribution Hudson River School artist Show. Tel 914.333.0555 • Auto dealerships High spirits FiOS TV will add two, Fax 914.333.0556 • Media and communication temporarily dubbed All City Youth • Banking despite economy New Jersey and All City Civic. BronxNet, the 399 Thornall Street • Food and dairy the stock market continued its nonprofit that operates that Edison, NJ 08837 • Health care nauseating gyrations last week, borough’s public-access Tel 732.549.2800 • Financial services Fax 732.549.2898 but that didn’t stop a group of programming, will help create the • Professional services New York’s business elite from new channels, with millions of www.weiserLLP.com • Not-for-Profit partying like it was 2007. dollars from Verizon. For more information, contact Douglas Phillips at 212.375.6701. Champagne flowed freely at an intimate dinner organized by Contributors: Lisa Fickenscher, Matthew Gotham magazine and Veuve Flamm, Amanda Fung

6 | Crain’s New York Business | October 20, 2008 CNYB 10-20-08 A 7 10/17/2008 7:25 PM Page 1

REPRINT, POST Wall St. titans trade leverage for longevity PUBLISHED Continued from Page 1 Morgan has posted only one un- cant losses to come at both firms due commodities like oil. CRAIN’S STORIES That increase helped Goldman to profitable quarter. Going forward, to the toxic assets,” says Michael And some are still spending like CRAIN’S NEW YORK BUSINESS record profits of $12 billion last year, each firm will be poised to greatly Shedlock, an investment adviser at it’s 2007. John Kaufman, general offers reprints of the articles it double the level of just two years ear- expand its market share,now that so Sitka Pacific Capital Management, manager at Manhattan MotorCars, publishes. Reprints can include lier. many competitors are gone. who has been shorting financial says sales are actually running a lit- photographs that accompany a However,such high leverage lev- The $10 billion that each institu- stocks. “They are not out of the tle ahead of last year’s blistering lev- story. To obtain pricing information els were the ruin of rivals Bear tion is getting from the Treasury’s woods, not by a long shot.” els, as Wall Streeters grab the latest and an estimate of the turnaround Stearns and Lehman Brothers. massive $700 billion bailout fund Porsches and Lamborghinis they time for reprint orders, or to learn Under the watchful eye of regu- will certainly help. However, both An about-face can get their hands on. about purchasing print and online lators, Goldman and Morgan have Goldman and Morgan Stanley still messrs. Blankfein and Mack know “From what I hear,things are still copyright information for Crain’s already begun to dial down their face huge write-downs on the $70 that, and they are working overtime healthy for these guys, just not as content, please contact Ashley leverage ratios to the mid- to high billion each carries of mortgages, to change their ways.The same can- good as before,” Mr. Kaufman says. Zander at The YGS Group, teens,Mr.Hintz says.As a result,re- leveraged loans and other dodgy as- not be said for some staffers,howev- “Hard to shed a tear for them, (717) 399-1900, ext. 125, or turn on equity—a measure of how sets, whose value can only be er, who are still coining money in right?” [email protected]. profitably a business deploys capi- guessed at. things such as investing in distressed tal—will drop by as much as 50% for “I suspect there will be signifi- companies and trading in volatile COMMENTS? [email protected] each company,and revenues will re- bound more slowly once markets fi- nally recover. Inevitably, slimmer profits will cost thousands of staffers their jobs. Morgan, which has already sacked 2,000 people, could be forced to ax another 7,800 just to get costs in line with a 20% drop in revenues so far this year.The damage could be even worse at Goldman, which may have to cut as many as 10,400 employees because revenues are down by one- third. “Anytime you take a business that’s been running 30 times lever- age and you take it down to 16 or 17 times, that changes the nature of MORGAN STANLEY Employees 46,383 % change year to date -4% Revenue change year to date -20% 810 SEVENTH AVENUE GOLDMAN SACHS Employees 32,569 % change year to date +7% WE ARE PLEASED TO ANNOUNCE Revenue change THE FOLLOWING TRANSACTION: year to date -32%

your business,” said Morgan CEO Mr.Mack in a CNBC interview last week. “We have to look at that and ION MEDIA NETWORKS, INC. resize for that.” A Goldman spokesman declined to comment. Even those who survive the up- coming purge will feel the pinch. Entire 31st and partial 30th fl oors Pay will drop as regulators mandate that the banks build up capital totaling 25,954 rsf rather than shell it out in compensa- tion, analysts believe. Traditionally, Goldman and Morgan shared 45% to 50% of revenues with employees, while J.P. Morgan Chase, a bank Represented by David A. Falk & Daniel L. Levine holding company, last year shared Newmark Knight Frank 33% of revenues with employees. “Now that the firms are required to take less risk, it should lead to more appropriate pay,” says Richard Ferlauto, director of pension invest- ment at the American Federation of State, County and Municipal Em- ployees. The union holds shares of Goldman and Morgan in its pen- sion funds. 212.594.2700 Solid positions fortunately, the two survivors go into this period of transformation in slgreen.com relatively good financial health. In the face of the worst crisis to hit the financial industry in 75 years,Gold- NEW YORK CITY’S LARGEST OWNER OF COMMERCIAL REAL ESTATE man has yet to lose a dime, while SLG-1769_810_7th_Tombstone_8.125x10.indd 1 10/10/08 5:05:26 PM October 20, 2008 | Crain’s New York Business | 7 CNYB 10-20-08 A 8 10/17/2008 9:07 PM Page 1

Forecast: Job losses not as bad this time around

crisis that has devastated other areas clining manufacturing sector and Diverse economy, of the country has only been felt pe- toward growing areas like education quality of life should ripherally here. An increasingly di- and health and professional services verse economy should insulate the will benefit New Yorkers. The city soften the blow city from widespread job losses in fi- shed nearly 165,000 manufacturing of next recession nancial services.And improvements jobs between 1990 and 2007, in- in quality of life will keep business- cluding tens of thousands in each of es and residents in the city and at the last two recessions. Only 96,000 BY DANIEL MASSEY least some tourists coming to visit. such jobs are left in the city. Wall Street has been battered in “We’ve got an economic engine bloomberg news with the nation in the midst of a recent weeks, and state officials now with multiple cylinders that are still klockenbirnkmyra deepening financial crisis, New estimate that 40,000 financial serv- firing,” says James Parrott, deputy York City Comptroller William ices jobs will be lost.But the city will director of the labor-backed Fiscal environment that has worsened by awaiting revision.“It’s not at all clear Thompson Jr. last week projected enter the coming recession in a po- Policy Institute. Education and the day and sometimes the hour. how this is going to play out,” she the city will lose 165,000 jobs over sition of unusual strength. While health services added 231,000 jobs Nobody could have predicted that says. the next two years—nearly twice as from 1990 through 2007, and pro- the city’s top investment banks And even if job losses are lower many as his office forecast three fessional services added 124,000 would post nearly $180 billion in as- this time around, the significance of months earlier. ‘It’s not at all positions,according to the state De- set write-downs in the past year. the losses could be just as severe be- But as wrenching as that loss partment of Labor. Reliance on cause Wall Street salaries have been would be, the new estimate pales in clear how these more stable sectors of the Future uncertain escalating for years. comparison to the actual number of economy, combined with economic “history is not a perfect guide to The financial services jobs ex- jobs shed in the city during each of this is going growth in the outer boroughs, the future,” says Ronnie Lowen- pected to be cast off are among the the previous two downturns. The should enable the city to emerge stein, executive director of the non- city’s highest-paying.The sector ac- recession of 2001-04 caused by the to play out’ from a recession quicker, limiting partisan Independent Budget Of- counted for 5% of the workforce but dot-com bust saw 222,700 jobs van- job losses. fice,which in May predicted the city 25% of all wages in the city last year, ish. The stock market crash of Oc- The city is also a more desirable would lose 59,400 jobs by the mid- the IBO says. tober 1987 sparked a delayed tail- place to visit,live in and do business dle of next year—a figure she readi- spin that cost the city 330,300 jobs in than it was in the early 1990s. ly admits is now out of date and COMMENTS? [email protected] in 1990-93. Transit hubs like Port Authority Frank Braconi, chief economist the national economy has lost and Pennsylvania Station have in the comptroller’s office,acknowl- 760,000 jobs in the past nine been cleaned up. Times Square is edges that the latest job loss esti- months, the city is still showing safer.“How people feel about living mate, though up sharply,is an “opti- slight year-over-year gains, despite and working here plays a role,” says Brooklyn apartment mistic forecast”and “looks relatively Wall Street job losses. James Brown, an economist for the good,” compared with the last two New York state Department of recessions. Fewer manufacturing jobs Labor. sales and prices sink Three main factors account for that economy will be put to the But job forecasting is an inexact such optimism from Mr. Braconi test in the months to come. Econo- science. Each recession is different, and other economists. The housing mists say that a shift away from a de- and economists are working in an a report from real estate investment Decrease in number services firm Marcus & Millichap. of transactions is a Mr. Miller believes the recent cracks appearing in the Manhattan Bloomberg could lose after all sign of tough times real estate market do not bode well for Brooklyn. As prices start to decline in Manhattan,fewer buyers Continued from Page 1 venting the voters.” BY KIRA BINDRIM will be forced to look for housing in in decades. Key members of the ad- The mayor’s public image will Brooklyn and the city’s other bor- ministration might lose their enthu- dim as the term limits debate rages, apartment prices in Brooklyn oughs. siasm or seek higher salaries in the but not for long, says Republican declined in the third quarter, but private sector. consultant Bill O’Reilly. “Passion more noteworthy, the number of Hipster Brooklyn prices rise These forces are largely beyond for term limits has ebbed consider- sales transactions nosedived, ac- “a lot of the new developments the mayor’s control, but they are ably in recent years, largely in re- cording to a report released last and interest in the outer boroughs likely to characterize his third sponse to the competency in gov- week. during the housing boom was term, if there is one. And the may- ernment demonstrated by none The median sales price fell to spurred by the rapid increase in or may no longer have the protec- other than Mike Bloomberg,” he $510,000 in the third quarter, down prices in Manhattan,” Mr. Miller tion of a reputation for selflessness. notes. 2.9% from the second quar- said. “What this episode has shown is ter and 5.6% from the third Broken down by neigh- MICHAEL Polls show contradiction that Mike Bloomberg is a pol who BLOOMBERG quarter of 2007,according to 38% borhood, North Brooklyn is driven by personal self-interest,” indeed, the same polls that show a Prudential Douglas Elli- FALL in number was the only area to post an should be of third-quarter Mr. Muzzio says. allowed to seek a voters favor a two-term limit city- man report prepared by sales compared increase in prices for the Criticism of Mr. Bloomberg’s third term, half of wide find that about half say Mr. Jonathan Miller, chief exec- with the same quarter, led by Williams- backroom dealings with fellow bil- voters say. Bloomberg should be allowed to utive of real estate appraisal quarter of 2007 burg and Greenpoint. The

lionaire and term-limits proponent bloomberg news seek a third term.His popularity ex- firm Miller Samuel Inc. median sales price in North Ronald Lauder over the term-lim- plains that contradiction. While apartment prices inched Brooklyn was $641,497, up 10.5% its bill has resonated with many though opposition intensified last But approval ratings are fleeting. down, the number of sales transac- from the second quarter and 6.9% New Yorkers.They may well resent week—a poll found that 75% of vot- Experts are fond of saying that a year tions took a more significant from the third quarter of 2007. Mr. Bloomberg’s re-election if he ers want to decide term limits by ref- is a long time in politics, and four plunge. There were 2,298 sales in In South Brooklyn, the median spends $80 million to $100 million erendum while just 11% would de- years are an eternity.In a third term, the third quarter, down 38.2% from sales price was $465,000, down to elevate himself and overwhelm fer to the mayor and City Mr.Bloomberg could see his stature the third quarter of 2007. 2.6% from the second quarter and his opponent. Council—the rancor will subside, diminish as the city economy re- 5.2% from the third quarter of many consultants say. trenches.Voters tend to tire of may- Credit crisis blamed 2007. In East Brooklyn, the medi- “Monarchical methods” “The mayor enjoys very high ap- ors after a while. mr. miller said the decline in sales an sales price was $441,400, down “the other scenario is even proval ratings, and I would not ex- For some people,the disappoint- activity is indicative of tough times. 11.7% from the second quarter and worse, which is that he so infuriates pect this flap over term limits to ment with Mr.Bloomberg is already “Those [losses] are attributable to 20.3% from the third quarter of average voters by his monarchical make a dent,” observes Joseph Mer- at hand. “The mythology of this external influence, including credit 2007. In Northwest Brooklyn, the methods that a coalition rises up, curio,a strategist who has represent- plutocrat as philosopher king has and general economic contraction, median sales price was $658,250, not so much to vote for the Demo- ed Republicans and Democrats. been destroyed,” says Mr. Muzzio. layoffs and anticipation of lower down 2.2% from the second quarter cratic nominee but against the may- “Given his favorables and his war “He has acted as grubbily as a politi- bonuses,” he said. and 3.9% from the third quarter of or who exceeded the speed limit,” chest, if he won the right to a new cian can.” Indeed, many of nearly 2,700 2007. says Mr. Green. election through legislation,I would new units slated for completion this Not all political observers sub- expect him to be the front-runner COMMENTS? year could be forced onto the rental COMMENTS? scribe to this doomsday analysis.Al- even after taking a hit for circum- [email protected] market as sales dry up, according to [email protected]

8 | Crain’s New York Business | October 20, 2008 CNYB 10-20-08 A 9 10/17/2008 3:07 PM Page 1

tels look at windows of 30 to 90 days Hotels hit hard times to gauge demand and set their prices. NO ROOM FOR TAX HIKE “Right now, there are a lot of guessing games going on,” says Mr. HOTELS ARE INCENSED about a proposal that could raise the city’s hotel room Continued from Page 1 Side, management is responding to Stengel. tax by as much as 3 percentage points, to nearly 18%. tel occupancy rates across the city. the dip by lowering its rates and of- The Waldorf-Astoria is still The idea has the support of some City Council members as a way to close Nervous travelers, from foreign vis- fering more rooms to discount trav- counting on foreign travelers to see the city’s widening budget deficit. But the issue is taking on greater urgency itors to business executives and fam- el services. it through this uncertain time. now as the hotel industry faces mounting problems of its own. ilies, are scrapping trips to the Big “We’ve had to reduce our pricing Starting last March, the property “This is not the time to raise taxes, when the hotel industry is vulnerable to Apple; and others are shying away to remain competitive,” says Kevin began funneling more business to a severe economic situation,” says Joseph Spinnato, chief executive of the from making long-term plans to Croke, director of sales and market- discount tour operators abroad. Hotel Association of New York City. come here. Hotels are struggling to ing. Properties across the city are The U.S. market is a different Hotels are an easy target because the people who pay the tax don’t live here. fill rooms in November and beyond, dropping their rates by about 10%, story. “The demand we are seeing Last week, Mr. Spinnato sent the mayor and the City Council speaker a slashing rates and ripping up budg- he says. from the domestic business traveler white paper showing that a tax increase would keep people away from ets for next year, because previous One of the big questions for is absolutely contracting,” says Matt New York and result in job losses forecasts are no longer relevant. hoteliers is whether the slowdown in Zolbe, director of sales and market- Hotel guests currently pay a 14.54% room tax, which adds, for example, “There is a noticeable decrease in reservations indicates that people are ing for the Waldorf-Astoria. $43.03 to a room costing $296—the average New York City hotel room rate demand for New York City,” says not planning to come to the city at all during the first eight months of this year. Michael Stengel,general manager of or whether they are waiting until the COMMENTS? the Marriott Marquis hotel in Times last minute to decide. Typically, ho- [email protected] Square.“The financial markets have scared off a lot of different compa- nies that we do business with.” October ushered in a new chap- ter for an industry that has enjoyed a five-year run of record-setting growth. During the first half of the month, hotel occupancy rates in the city declined more than 11% each week,compared with the same peri- od last year, according to a report by J.P.Morgan Chase and Smith Trav- el Research. “If this continues through the rest of the month, then it would be the biggest decrease since the immediate aftermath of 9/11,” says John Fox, senior vice president at PKF Con- sulting, a hotel advisory firm. david neff david MICHAEL STENGEL of the Marriott Marquis sees “a noticeable decrease in demand.”

The declines are sobering hote- liers who for the past several years feasted on giddy European shoppers who came here to take advantage of the weak dollar. With the financial crisis spreading globally and the euro losing strength relative to the dollar,the cost of a hotel room in the city is expected to rise by 20% over the next six to 12 months. Hoteliers are already feeling the Your business pain. John Fitzpatrick owns two eponymous hotels in Manhattan that attract a large following from success is out there. Ireland, which is facing its own real estate crisis now. One of his proper- ties, on Lexington Avenue between Is your bank? East 56th and East 57th streets, was in the midst of an exterior renovation when Mr.Fitzpatrick pulled the plug on the project after a large group can- Commercial Banking celed its October reservation. us.hsbc.com/success “I’ve stopped all construction at the Fitzpatrick Manhattan,” he says. “I’m going to hold back two or three months to see what happens.” Mr.Smith of the 912-room New Yorker Hotel says that November Herbalife® and the Tri-Leaf device are registered trademarks of Herbalife International, Inc. looks “weaker than we would like.” HSBC Bank is neither a sponsor nor an affiliate of Herbalife International, Inc. At the Roosevelt hotel, another In the United States, banking products are offered through HSBC Bank USA, N.A. and HSBC National Bank USA. Both banks are Member FDIC. large midtown property on the East ©2008 HSBC Bank USA, N.A. All rights reserved.

October 20, 2008 | Crain’s New York Business | 9 CNYB 10-20-08 A 10 10/17/2008 12:24 PM Page 1

VIEWPOINT Are tax hikes inevitable? editor in chief Rance Crain publisher, vp Jill R. Kaplan ome groups, like the labor-backed Working Forgotten for now, but soon to resurface, is the editorial director Greg David Families Party, have been agitating for more Metropolitan Transportation Authority’s need for more EDITORIAL editor Xana Antunes than a year to soak the rich with higher taxes. money for its operating budget and a new funding source managing editor Robert Hordt deputy managing editors Valerie Block, Last week, City Council Speaker Christine (otherwise known as a tax) to finance its capital program. Erik Ipsen Quinn gave the tax hike movement a big boost If that weren’t bad enough, each set of politicians looks at contributing editor Elizabeth MacBride when she said the city—including the the budget problems with blinders on. Media organizations columnist Alair Townsend Bloomberg administration—is considering an rarely add up the tax senior reporters Theresa Agovino, Aaron Elstein, Erik Engquist, Lisa Fickenscher, increase in the personal income tax. toll, either.Taxpayers— Matthew Flamm, Miriam Kreinin Souccar Regrettably, raising taxes may wind up being inevitable. The city faces a whether individuals or reporters Barbara Benson, Amanda Fung, S Daniel Massey, Adrianne Pasquarelli, But which taxes are raised, by whom and by how much will deficit of at least businesses—under- Hilary Potkewitz, Gale Scott, Matthew Sollars determine whether the economic downturn the city is stand when they see the restaurant critic Bob Lape art director Steven Krupinski entering will be longer than it needs to be. $2 billion in the cumulative impact on deputy art directors Carolyn McClain, The size of the problem is daunting. Despite restraining their wallets and on Daniel Mednick next fiscal year staff photographer Buck Ennis budgets and building a surplus, the city faces a deficit of at their expense sheets, copy desk chief Wendy Zuckerman least $2 billion in the next fiscal year and at least $5 billion though they often aren’t copy editors Michele Arboit, Thaddeus Rutkowski the year after that.The key words are “at least,’’ since those sure whom to blame. research editor Denise Southwood projections were made before the credit crisis turned into the Many people— www.crainsnewyork.com web producers Kira Bindrim, financial panic of the past month. especially those on the Elisabeth Butler Cordova The state’s problem is even worse. Profligate spending in left in the political spectrum—argue that taxes have only a EDITORIAL AND ADVERTISING OFFICES Albany has resulted in a deficit for next year that was negligible role in business decisions. But no one can dispute 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 believed to be about $4 billion. With the latest shocks, it isn’t that significant increases in the coming year could become a advertising: 212.210.0259 Cable craincom nyk far-fetched to suggest that red ink in Albany could be burden and a major obstacle to a recovery. Fax 212.210.0499 flowing in the neighborhood of $10 billion, a figure Entire contents ©copyright 2008 Crain Communications Inc. All rights reserved. approaching 10% of the budget. COMMENTS? [email protected] ®CityBusiness is a registered trademark of MCP Inc., used under license agreement.

TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. LETTERS TO THE EDITOR www.crainsnewyork.com

ADVERTISING AND MARKETING advertising director Jeff Adler senior account managers Cornelius P. Gore, William E. Squitieri Another source of visitors to NY commercial real estate sales manager Cory Marks account executives LOCAL TRAVELERS increasing tourism to the city. star passes baton” paints an Irene Irvill, Courtney McCombs, Anthony Mowad COME FOR BROADWAY kimberly spell inaccurate portrait of David Ho’s western account manager NYC & Company research activities and his Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified crain’s oct. 13 article “Tourism relationship to the work my print & online John Gallagher well running dry” concentrates on PACE WILL MEET colleagues and I are undertaking at sales coordinator, print & online international travelers who make up FINANCIAL OBLIGATIONS The Rockefeller University. Lulé Haznedari half of all tourism spending. It fails Dr. Ho is far from passing the sales coordinator Anita Perrino credit Todd J. Masura 313.446.6097 to mention the opportunities to crain’s oct.6 report on Pace baton. Indeed, Dr. Ho continues marketing director Amy Crossman capitalize on the other half. Includ- University’s investments of work- to spearhead one of the most Jill H. Bottomley

buck ennis marketing manager ed in the other half are the 18 mil- INTERNATIONAL TRAVELERS make up only ing capital in the Commonfund’s significant efforts to battle the marketing coordinator Jenny Mashberg lion people living in the metropoli- half of all tourism spending in the city. Short Term Fund apparently had virus on many fronts. In addition, circulation manager Andrea Richardson tan area. Integrated programs with led some of our employees to wor- Dr. Ho and his team at the Aaron assistant circulation manager Rosalie Ford the MTA,Amtrak and other transit ry that we will be unable to meet Diamond AIDS Research Center operators could attract this market. on our close relationships with the our short-term obligations, in- remain at the forefront of general manager, interactive One last point.The NYC & city’s hotels and institutions. And cluding payrolls. Not so. developing strategies to prevent Marc Minardo web developer, interactive Company spokeswoman said, having scrupulously monitored all The fund has been liquidating infection of this deadly virus, Chris O’Donnell “There’s a different reason to come areas of visitation and visitor its investments ahead of projec- including an ambitious vaccine to New York now [besides shop- spending particularly in recent tions, and as those investments program and other preventive NEW YORK PRODUCTION production and pre-press director ping].”There have always been an months, it is with authority that mature or are sold at or above par approaches. Michael Corsi infinite number of reasons to come we can report that there has not value, we have been drawing funds The Rockefeller University and advertising production manager to New York City; shopping is been a falloff of hotel bookings or out with no losses. Pace does not ADARC have had a long and Marilyn DeMilta only one. Did I hear “Broadway”? airlift. Hotel occupancies in New anticipate any liquidity challenges. productive affiliation. We will PUBLISHED BY CRAIN COMMUNICATIONS INC. david ganz York City continue to be about 30 rick n. whitfield continue to work together, with all chairman Keith E. Crain Greater Than One Inc. points higher than the national Pace University of our scientific resources and president Rance Crain average. allies, to fight this challenging secretary Merrilee Crain TOURISM REMAINS It is our responsibility and our IN THE THICK virus that continues to elude treasurer Mary Kay Crain rationale to always stay vigilant control by a vaccine. executive vp, operations William Morrow A THRIVING INDUSTRY OF AIDS RESEARCH senior vp, group publisher Gloria Scoby and primed in the face of sarah j. schlesinger, m.d. group vp, technology, circulation, despite the economic down- changing news cycles and global the oct. 6 article “An AIDS The Rockefeller University manufacturing Robert C. Adams turn, which we are fully cognizant news crises. We diversified the vice president/production & and knowledgeable of, the outlook focus of one of our short-term manufacturing David Kamis for tourism to New York City campaigns to highlight the chief information officer Paul Dalpiaz WHAT’S COMING UP IN CRAIN’S? corporate circulation director remains very positive. We fully favorable U.S. exchange rate in Patrick Sheposh expect the $30 billion tourism favor of concentrating attention industry to continue to be the on all the unique attractions Largest Business The best founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. silver lining in the city’s economy. the five boroughs have to offer. accounting firms of law places to work (1911-1996) As the city’s official marketing, We just opened an office in India, in the NY area report in NYC tourism and partnership an example of one of the many Oct. 27 Nov. 3 Nov. 17 organization, we pride ourselves tactics we have in place for

10 | Crain’s New York Business | October 20, 2008 CNYB 10-20-08 A 11 10/17/2008 12:20 PM Page 1

Companies large and small rely on Amper, and

next two years.The respected Inde- you can too. pendent Budget Office has been particularly behind the curve, not having updated its May projection of 55,000 over the same period. Only Comptroller William Thompson has shown the courage of the evidence, last week issuing what many believed was the shock- ing prediction that the city could lose a total of 165,000 jobs this year and next. None of these forecasters needs to worry about sowing panic. Exec- utives know what’s happening and what’s ahead. Last week,I took a poll of 50 such men and women at a breakfast put on by the accounting firm Eisner. Only a third of them believe the market will rebound to 10,000 on the Dow by the end of the year. Everyone is more scared today than they were in 1987, when the Dow dropped 22% in one day. At least half are more fearful today than they john h. howard were on Sept. 12, 2001. More than 90% believe the city will experience a severe recession. The reassessment of future New York execs prospects is taking place in corner “Seeing Beyond the Numbers...” offices all over New York, just as it www.amper-pc.com did seven years ago on Sept. 12.The aren’t panicking terrorist attacks themselves did lit- tle damage to the economy, accord- ing to the most careful study of what hen is pessimism self-defeating,and when occurred in the economy, by the New York Fed.Shaken by the event, is it just realism? When is optimism neces- CEOs took a look at their business- sary to persevere amid difficulties, and es and decided their staffs were too when is it delusional? In other words, how large, they had rented too much of- Missed Crain’s Latest Event? can New York businesspeople weather the fice space, and their expenses were too high for softening sales. They currentW financial crisis,and how can they manage through what retrenched immediately. Go to crainsnewyork.com/video for live footage will clearly be a deep economic downturn? I hope the comptroller’s estimate is right,but my own guess is that job of Crain’s popular newsmaker series. Last January, I in- tion, the city’s vacancy losses will be in the range of the terviewed the city’s rate would increase only 225,000 figure reached in the 2001- leading real estate ex- modestly. By year’s end, 03 recession. While that’s depress- ecutives at the annual the vacancy rate is like- ing news, it remains a far cry from REBNY gala, the pre- ly to reach 10%. the 329,000 jobs lost in 1989-93. mier real estate event in As usual, residential The city is in better shape today the city. The vast ma- brokers have been the than it was two decades ago, and one jority, whether devel- most ridiculously up- important reason is the realism of ex- opers,landlords or bro- beat about apartment ecutives, who will take the necessary Advertisement kers, insisted that the prices, but I will leave steps to keep their companies solvent fallout from Wall flogging that dead horse and be poised to take advantage of Street’s problems GREG for another day. the business opportunities that pres- The Engel Burman Group of Long Island has would be manageable. DAVID Official forecasters ent themselves. In those men and They predicted an in- have been unwilling to women are the beginnings of the sold the Trophy Doubleday Building at 501 crease in the vacancy buck the business con- city’s rebound. Franklin Avenue, Garden City, NY to Jonis rate to only about 7%.The party line sensus.The official city forecast calls Realty a development firm in Great Neck, was that with little new construc- for the loss of 90,000 jobs over the COMMENTS? [email protected] NY for $43.5 million on September 22, 2008. This 134,000 foot building on 8.07 acres of land and 550 parking spaces is occupied CRAIN’S ONLINE POLL by Jet Blue Airways and the conglomerate How bad will the recession be? Bertelsmann Inc. 313 VOTES About average. Six The broker for the seller was Excel Realty Advisors Date of poll: Oct. 15 months to a year in duration and an 40%. unemployment rate Very bad. More no higher than 8% than a year in duration and an .52% unemployment rate above 8% Mild. Six months or less in duration and 8% an unemployment . rate no higher

getty images than 7%

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

October 20, 2008 | Crain’s New York Business | 11 CNYB 10-20-08 A 12 10/17/2008 2:48 PM Page 1

Who’s mayor’s pick Term limits turmoil THE INSIDER for president? encouraging people last week to register and vote, Mayor Michael by Erik Engquist and Matthew Sollars Bloomberg said, “The November election is incredibly important, and all of us have a responsibility to make our voices heard.” But he has not committed to COUNCIL MEMBERS STIRRED UP Council eminently principled making his own voice heard by way of a presidential endorsement. OCTOBER 2008 IS SHAPING UP AS THE MOST TUMULTUOUS MONTH in the history “He’s said several times that he’s of the 51-member chamber. By the time public hearings began on a bill to ost city council members have signed a letter allow members to serve a third consecutive four-year term, 15 members had objecting to the Willets Point redevelopment, citing pretty much made up his mind, but he may well not tell us,” says the announced they would support it, and 19 had declared their opposition. The the threat of condemnations by the city, but many mayor’s press secretary. remaining 17 claimed to be undecided, subjecting themselves to the sort of M attention legislators rarely want. would rather preserve their The mayor has praised both Sen. own power than stand against Barack Obama and Sen. John McCain. Sound trucks rumbled through their districts. Petitions peppered their offices. And activists aspiring to their seats plotted to run against them. the use of eminent domain. Television commercials sponsored by the Working Families Party encouraged That became clear this month Political recruits constituents to call their representatives and demand they kill the bill. when only five of 51 voted sign up for duty “It’s been a quiet week,” deadpanned Councilman Peter Vallone Jr., an against an East Harlem undecided member from Queens. “My phone’s not ringing much.” over the past six weeks, the He compared the pressure on council members to what they faced last project that might require the Obama campaign has trained more March, when Mayor Michael Bloomberg and Speaker Christine Quinn taking of private land. than 1,000 New Yorkers as unpaid (below) were pushing congestion pricing. The powerful pair secured the Forty-four members voted field organizers in battleground backing of about 10 wavering members just before that vote. along with the member whose states. “I was offered many things and threatened with many “Camp Obama” weekend boot DEVELOPMENT FAVORED: Most council district the project is in, things to change my vote on congestion pricing,” says members voted for an East Harlem project. camps instruct volunteers in voter Mr. Vallone, who remained opposed. On term limits, Melissa Mark-Viverito, registration, canvassing and phone he says, “I have received nothing but friendly following an unspoken council banks. Once they get to their persuasion at this point.” state—Pennsylvania, in most Other members got decidedly stronger practice that ensures their colleagues will do likewise when cases—they are trained in local projects come up in their own districts.The dissenters were messages. David Weprin of Queens, who had culture and election law. spoken out against the bill, got word that his Charles Barron Letitia James McCain campaign Brooklyn’s and , Staten Island’s The says it has Finance Committee chairmanship (and its five- attracted more than 1,000 New York Vincent Ignizio, and Eric Gioia and Tony Avella of Queens. figure annual stipend) was at risk. Suddenly, Hiram Monserrate volunteers, too, but can’t say how Of particular note, , who represents Willets many have traveled to swing states. there was silence from the Weprin camp. Point, abstained, while John Liu of nearby Flushing voted yes The prevailing sentiment among insiders with “strong reservations about this administration’s use of is that the bill will pass Thursday with a few MTA plan stalls votes to spare, since most of the alleged eminent domain.” Voting against Ms.Mark-Viverito was not an fence-sitters appeared inclined to option, because both will need colleagues to show them the same in Brooklyn support it. “You’re saying we can do courtesy when the council votes next month on Willets Point. brooklyn advocates have new this?” Councilwoman Helen Sears eagerly asked Mr. Bloomberg’s lawyers at the first public hearing last week. buck ennis

hope that the Metropolitan ensure a level playing field. Transportation Authority will cancel a $150 million plan to renovate 370 Jay St. as a back office. Downturn a boon In a letter to local politicians, for supermarkets state Comptroller Thomas DiNapoli says the MTA has given up on the economic downturn should using the building, which has been help the suffering supermarket “Thanks to the Port of New York and Looking for the perfect largely vacant for six years. Critics industry, says Gristedes chief and New Jersey, JVC is able to quickly and business experience? say that the money would be better potential mayoral candidate John efficiently deliver cutting edge tech- The port moves more than $150 spent elsewhere and that the Catsimatidis. nology to your home and business. billion in cargo each year, from building should be sold for an Supermarket sales should flat screen TVs to flat head screws. From flat panel TVs to home theater estimated $75 million. increase as New Yorkers cut back systems, consumer video camcorders And it does it with your bottom line in mind: An MTA spokesman says, on restaurants and specialty foods, to professional gear, JVC products “We have not dropped our plans he says. deliver unforgettable moments through • The cost of doing business at for 370 Jay.” But it’s bad news for his mixed- the port has decreased in the sound and images, and the port deliv- use development in Brooklyn. last decade ers these products to you. Whether it’s “We’ve scaled back the project from professional sports or your child’s soc- • Port operations have become Cleaner ports 1.4 million square feet to one cer game, heavy metal or smooth jazz, more efficient, with direct building, which is about 10% of environmental benefits on the way JVC technology brings it to you with stunning realism. that,” he says. The port provides the solid logistical support JVC needs • The Port of New York and New Jersey can help you reach the port authority of New to deliver the power and the emotion of entertainment to the largest and wealthiest consumer market in the world York and New Jersey is way behind consumers worldwide. Because of the port, we bring it to You can depend on the port to make Los Angeles’ $1.2 billion effort to our U.S. customers on time and at a reasonable cost.” your business picture perfect. cut air pollution at its ports, acknowledges agency head Craig Geiger • Executive Vice President/Chief Operating Officer, • JVC Company of America Christopher Ward. The agency is committed to adopting a similar program, including replacing dirty trucks, he says, but it must be careful not to put itself at a disadvantage with rival ports in the East. He notes The men and women of the port of New York and New Jersey... that L.A. and Long Beach have less competition on the West BETTER DEAL: Coast. New Yorkers Rep. Jerrold Nadler says that “the will turn to supermarkets. New York Shipping Association, Inc. © 2008 federal government has to step in”

with clean air requirements that bloomberg news

12 | Crain’s New York Business | October 20, 2008 CNYB 10-20-08 A 13 10/16/2008 6:26 PM Page 1

Developers get more Facebook time

grams like Earn for Breast Cancer, sumers are difficult.” fer lectures and instructional videos Build applications which donates two cents to the Na- Mr.Beckerman says he has had to for a subscription fee via Facebook. for the megasite; tional Breast Cancer Foundation sacrifice profits to lure users, giving Sometimes success is just a fringe every time someone installs it on away all the ad money he made from benefit. Suleman Ali, 26, admits ideas can lead to their Facebook profile page. The Lotto to winners. that he started Esgut, which oper- million-dollar sales Of course, not every Facebook ates a number of popular Facebook developer can strike it rich in an in- Lucky break programs, for fun last year. stant.Creating a viable business and “it was really frustrating giv- “I was bored.I didn’t see it as a vi- BY AMANDA FUNG generating revenue can be tricky,be- ing away money on a weekly and able business opportunity,” says the MICHAEL cause users are fickle. monthly basis,” he says. Luckily for former Microsoft employee, who in LAZEROW’S it took only a year for Buddy Me- “Anyone can build an app,” says him, the popularity of The Lotto April sold Esgut for well over $1 Buddy Media allows top brands dia Inc. to reach 8 million people on Mr. Lazerow, who has expanded caught the attention of a suitor, and million to West Coast developer to target the Web—all it had to do was piggy- into other social networks, like My- now he’s gearing up to launch Teach Social Gaming Network. consumers on back off the success of Facebook. Space, as well as other Web sites. the People,which will allow publish- Facebook.

The Manhattan-based firm, “Growing it and engaging con- ers, authors and other experts to of- COMMENTS? [email protected] buck ennis which created 50 different applica- tions that let top brands like FedEx and Reebok target consumers on the popular social network, has grown to 30 employees and raised $8.5 mil- lion in funding from industry heavyweights like Peter Thiel, a co- founder of PayPal. “If you want to reach a huge Take your cash management number of people for free, you can do it on Facebook,” says Michael Lazerow, a serial entrepreneur and to the next level. Buddy Media co-founder. As Facebook matures into a $3 billion business with more than 40 million unique visitors monthly, hundreds of companies that build applications for the site have grown along with it. And many of these savvy developers, like Mr. Lazerow, have emerged from New York.Now, they’re growing their tiny startups beyond Facebook, selling them for mini-fortunes, or even finding job opportunities through applications they created just for fun. “I was amazed at how many de- Citibank cash management tools can make a real difference for your business, starting with a great rate on velopers there are in New York,”says Jonathan Sarno, who organizes the a business money market account. But at Citibank, you’ll get more than a great rate, you’ll get the solutions monthly Facebook Developers Garage. According to Facebook, his and tools that only Citibank can offer. We’ll take the time to understand your challenges and champion your group has 134 members. business needs. Let our fl exible solutions and dedicated service help take your business to the next level. Easier than starting from scratch Stop by a Citibank branch today or call 866.801.4705 to take advantage of these limited time offers. building applications for Face- book, which began allowing outside developers to do so 18 months ago, is faster and cheaper than creating a LIMITED TIME BUSINESS BANKING OFFER stand-alone Web site. CitiBusiness Insured Money Market Account That prompted 24-year-old Ilya Nikolayev to found Familybuilder APY Inc.’s Family Tree program for Face- book in June 2007. All he needed 3.00% was $1.5 million in funding,he said, while online competitors like On balances of $25,000 to $3,000,000 Geni.com had to raise $10 million in venture funding. In just one month,Familybuilder was signing up 15,000 to 25,000 new users a day and Mr. Nikolayev had A partner A champion left his full-time job at J.P. Morgan is good. is better. Chase to focus on his startup.Today, Family Tree has 838,669 active Facebook users,and the company re- cently launched its own Web site. The firm is still in the red but expects to break even some time next year. “It picked up quicker than I had expected,” Mr. Nikolayev says. “Facebook created a viral and pow- erful environment for us to grow.” Meanwhile, Jason Beckerman, 25, who founded Dank Apps Inc. in July 2007 is in the process of closing on the sale of his company in an

undisclosed deal. Dank Apps’ most The CitiBusiness Insured Money Market Account (BIMMA) promotional rate is applied only to new money deposited into a new CitiBusiness Insured Money Market Account. New balances are funds not already on deposit with Citibank, N.A. or popular Facebook game,The Lotto, any affi liate. Annual Percentage Yield (APY) is variable, current as of 9/22/08, effective through 12/31/08 and subject to chan ge thereafter without further notice. The entire balance in your account earns the same APY, which is determined by the balance in your account. A balance under $25,000 earns a 0.75% APY; a balance between $25,000 and $3,000,000 earns a 3.00% APY; a balance above $3,000,000 earns a 2.00% APY. As of January 1, 2009, standard BIMMA pricing tiers allows its 200,000 users to win mon- and all other Terms and Conditions of the CitiBusiness Client Manual will apply to your BIMMA. Deposits are subject to Citibank’s standard availability policy. This offer is not valid for public funds. A business checking account is required to open a ey it earns from online advertising. BIMMA with this promotional rate. Offer is not transferable, cannot be combined with any other offer, and can be discontinued at any time. All accounts are subject to approval. ©2008 Citigroup Inc. Citibank, N.A. Member FDIC. CitiBusiness and It also operates social change pro- Citibank and Arc Design are registered service marks of Citigroup Inc. Citi Never Sleeps is a service mark of Citigroup Inc.

October 20, 2008 | Crain’s New York Business | 13 CNYB 10-20-08 A 14 10/17/2008 2:27 PM Page 1

WEEK IN REVIEW For daily news updates, go to www.crainsnewyork.com

giant, which offered a pessimistic ECONOMIC SPOTLIGHT outlook, will close six plants and invest the savings in brand building, R&D and growth efforts in key markets. Paper lost $778M newsday ran up net losses of $778 million over a three-year period ending in 2007, new regulatory filings showed.The numbers raised questions about Cablevision Systems Corp.’s wisdom in purchasing the Long Island-based newspaper for $650 million earlier this year. Airlines ease off bloomberg news fuel surcharges J.P. Morgan turns sole profit as the price of oil continued to AS THREE U.S. FINANCIAL GIANTS reported more dismal fall, London-based Virgin Atlantic and German carrier earnings for the third quarter, only J.P. Morgan Chase & Co. Lufthansa reduced their per-flight eked out a profit. Led by CEO JAMIE DIMON (above), the firm fuel surcharges by $23 and $5, earned $527 million, down from $3.4 billion a year earlier. respectively.The cuts come in the wake of airlines charging extra for Its peers fared much worse: CITIGROUP INC. lost $2.8 food, beverages and even pillows billion, and MERRILL LYNCH CO. lost $5.2 billion. Write- to offset fuel costs. Economy Watch downs at the nation’s top nine banks now total $323 billion The NYC and U.S. jobless rates were both flat from August to September. since the credit crisis began—exceeding profits generated Contract cinched Recent 12-month increases in area inflation were the highest since mid-2006. during the boom years. the city reached a tentative AUGUST ’08 SEPTEMBER ’08 COMPARISON agreement for a two-year contract NY area inflation change +0.1% -0.2% +5.2%1 with the Uniformed Firefighters NYC unemployment rate 5.8% 5.8% 6.1%2 Association.The deal, which NYT’s Krugman SpanishSovereign follows a pattern set between the NYC employment change n/a -2,400 +17,5003 takes Nobel home spanish bank Banco Santander city and police unions, includes an n/a Not available. 1-NY area inflation rate for the latest 12-month period. 2-U.S. unemployment SA reached a deal to purchase annual 4% wage increase. Nearly rate for the latest month. 3-NYC employment change year to date. new york times columnist Paul Philadelphia-based Sovereign 9,000 union members will vote on Krugman (below) won the Nobel Bancorp Inc. for about $1.9 billion the proposal via mail ballot. NYC Hotel Stats Broadway Stats Prize for economics for his analysis in an all-stock transaction. of trade patterns and location of Sovereign operates 69 branches in Hard (hat) times The occupancy rate rose above the Attendance and gross rose during economic New York City and claims $6.4 90% level in August, PKF Consult- the week ended 10/12, The Broad- activity.The billion in deposits here, about the credit crunch, a slowing ing data show, while the room rate way League reports, even as a hand- economist, who 1.3% of the market, according to economy and growing budget stayed flat. Year-to-date averages ful of shows that were caught up in is also a the Federal Deposit Insurance deficits will strip almost 30,000 remained above year-earlier levels, the economy’s travails either shut professor at Corp. construction jobs from the city’s at 86.7% and $295.57, respectively. down or prepared to close. Princeton workforce by 2010 and lower University in construction spending by 22%, New Jersey, was Morgan salvaged according to the New York the lone winner but indentured Building Congress, figures that of the $1.4 would put industry employment at

million award. bloomberg news after some last-minute waffling, its lowest level in a decade. Mitsubishi UFJ Financial Group AIG chastised gave Morgan Stanley $9 billion in fresh capital when U.S. NY Health Dept. state attorney General government officials promised the favors St. Vincent Andrew Cuomo warned Japanese firm that its investment American International Group would not be diluted if Morgan the state Department of Health Inc. to do away with golden needs further help later. Morgan said it will likely approve Saint parachutes, golf outings and other will pay Mitsubishi $900 million Vincent Catholic Medical lavish perks while using in annual dividends on its shares. Centers’ controversial plan to government money to operate. build a new $835 million hospital Capital IQ’s Weekly Deals Report AIG promptly cut the strings for Rolling in the cash in Greenwich Village. An its outgoing CFO’s golden endorsement could help Saint TRANSACTION SIZE parachute, and said it will review limores.net, an online service Vincent get approval from the city COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE all other pay packages. that books business for limo Landmarks Preservation R3 Capital Management $150.0 Not disclosed (45%) SB M&A drivers, raised $20 million from a Commission. Some residents say Manhattan group of investors led by the scale of the proposed building Upper East Side $86.0 Madison Capital SB M&A Bankruptcy shreds Manhattan-based investment is too large for the neighborhood. retail condominium Linens ’n Things fund Governing Dynamics.The —from staff reports and at Manhattan House company, which partners with bloomberg news reports Manhattan the 371 remaining Linens ’n 7,000 limo and car-service Oberon Media Inc. $20.0 The Infinity Fund, GCI Manhattan Suzhou Venture Group Things stores hung going-out- providers, plans to expand globally of-business signs in their and enhance its technology. Appssavvy Inc. $3.1 True Ventures, individual investors GCI Manhattan windows, as parent company Dais Inc. $2.0 eCoast Angel Network, GCI Apollo Management gave up on The taste of layoffs Manhattan Richmond Management, Boston finding a buyer for the chain. The Harbor Angels, HighBAR Ventures New Jersey-based home- struggling with lagging soft Selected deals announced during the week of Oct. 5 for companies headquartered in metro New furnishings retailer failed after drink sales, PepsiCo plans to York. GCI: Growth capital investment represents new money invested in a company for a minor- Apollo loaded it up with $600 eliminate 3,300 jobs after bloomberg news ity stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of exist- ing shares of a company without the participation of a financial buyer. million in debt. About 17,500 reporting a 9.5% drop in third- VILLAGE SQUABBLE: St. Vincent’s hospital

bekka lindström bekka jobs will be lost. quarter profits.The beverage seeks approval to build a larger facility.

14 | Crain’s New York Business | October 20, 2008 CNYB 10-20-08 A 15 10/16/2008 8:04 PM Page 1

NEIGHBORHOOD JOURNAL BROOKLYN BROUHAHA: Local residents oppose a Bronx park victim of city budget cuts Prospect Park car ban.

would simply result in more backups tentially dangerous to the residents spokesman for Transportation Al- Grant to transform and air pollution on their streets. of Parkside and Ocean avenues,”says ternatives. “The fact is, some of vacant lot to green Alvin Berk, the longtime chair- Mr. Berk. those car trips will shift to a differ- man of Community Board 14, Transportation Alternatives ar- ent part of the day,some will shift to space near Tiffany which borders the southern end of gues that a temporary car ban would [mass] transit, but the best way to 5 p.m. and 7 p.m. During temporary Gardens canceled the park, believes the main issue is allow the city to study the impact a find out is to have a 90-day pilot.” closures in the past, Mr. Berk has not the convenience the park short- permanent closure would have on Mr. Berk says he’s already seen watched those cars spill onto the he city’s budget crisis cut provides to motorists—as Trans- traffic in surrounding neighbor- enough. He cites a study showing streets of his neighborhood. arrived in the backyards portation Alternatives and others hoods and allow the city to find ways that up to 900 cars enter the park per The city’s Department of Trans- of scores of South Bronx have claimed—but the adverse to reduce that impact. hour in the morning rush, when the portation says it has no plans to residents last month health effects that a ban could have “Every single time we talk about eastern half of the park loop is open eliminate cars from Prospect Park, when the Department on his neighborhood. banning cars from the park, we hear between 7 a.m. and 9 a.m.The west- even as part of a pilot program. Tof Housing Preservation and Devel- “Even a three-month trial is po- that the sky is about to fall,” says a ern loop is open to car traffic between —matthew sollars opment abruptly uprooted plans for a park there. Construction to convert a city- owned vacant lot on Southern Boulevard, near Hunts Point, into a 10,000-square-foot neighborhood park was scheduled to begin this month. But the $500,000 city grant Who Just was canceled at the last minute as part of the NYC Office of Manage- ment and Budget’s mandated, Moved 6 Miles across-the-board 20% reduction in this year’s capital budget. The developer, nonprofit Sebco And Saved Development Inc., was awarded the grant provided it could raise $100,000 on its own. “We’ve raised our end of the money,” says Peter Cantillo, presi- $100 Million? dent of Sebco. “But obviously we can’t do this without the other half a million dollars.” The park was to be adjacent to the Tiffany Gardens Apartments, a 105-unit complex finished earlier this year and now fully occupied. Mr. Cantillo’s group had com- pleted drawings and plans for the park and was in the process of choosing a contractor when the call came at the end of September. “Unfortunately,as per a directive from the OMB, this office is being forced to re-evaluate and in some in- stances postpone some projects,” Borough President Adolfo Carrión said in a statement. Over the past decade, this sec- tion of the South Bronx has been the TENANT “X” target of several major urban renew- Some Businesses Make a Fortune in NY al efforts—from multiunit housing Manhattan Meadowlands projects to single-family homes, Others Waste One Rent per sq. ft $90 $27 many of which involved Sebco. Usable sq. ft. 52,000 52,000 Tiffany Gardens was to be the first part of a two-part development Our new tenant, an internationally renowned fi rm, wants us Term of Lease 15 15 on city-owned parcels that sat va- Rentable Sq. Ft 69,160 61,100 to keep it a secret that they’ve moved from Manhattan to the cant for nearly three decades. Total Rent $115,767,080 $30,281,160 —hilary potkewitz Meadowlands. But you’d be smiling, too, if you saved $100 Occupancy Tax $4,514,916 $0 Prospect Park million, reduced commuting costs for your employees and Total Electricity $3,537,327 $2,045,509 Workletter $2,766,400 $0 increased their productivity. traffic dispute Total Parking $514,520 $0 a neighborhood in famously left- Visit www.HartzMountain.com to calculate your savings. Total Commercial $2,489,009 $714,654 leaning Brooklyn is crossing swords RE Tax Escalation with one of the city’s leading green Common Area $4,978,018 $1,704,176 groups. At the center of the battle is a PS -- we won’t tell anyone if you don’t want us to. Maintenance Escalation plan to ban all vehicular traffic from Prospect Park, proposed by Trans- Cost $134,567,270 $34,745,499 portation Alternatives, the advocacy group devoted to reducing automo- NJ Savings $99,821,771 bile traffic in the city. The group has suggested a three-month pilot pro- gram; it collected 10,000 signatures CONTACT HARTZ MOUNTAIN INDUSTRIES, INC. on a petition supporting the move Hartz Mountain Industries, Inc. Leasing Dept. Ernie Christoph Tel: 201-272-5201 400 Plaza Drive Secaucus, New Jersey 07096-1515 [email protected] and hand-delivered it to Mayor 0HONEs&AX Charlie Reese Tel: 201-272-5202 Michael Bloomberg this summer. www.hartzmountain.com [email protected] Now residents in the Prospect Park South neighborhood are wor- ried that closing the park to traffic

October 20, 2008 | Crain’s New York Business | 15 Project2 10/16/08 4:24 PM Page 1

40under40_half.ai 10/9/08 11:54:25 AM

Join Crain’s New York Business and Workforce Management for this critical morning conference in New York City exploring talent management for all seasons, including the art of retaining and finding key people while managing through the layoffs, cutbacks and workplace restructurings that are rippling through the current business environment. KEVIN RYAN Hear keynote speaker Kevin Ryan, founder and former CEO of DoubleClick, Founder and Former CEO DOUBLECLICK and his compelling message about how to manage talent through both good Managing times and bad. He'll also join our panel of experts—moderated by Crain’s editor, Greg David and Workforce Management editor, John Hollon—for a lively Talent panel discussion on this timely topic.

in a DATE Wednesday, October 29, 2008 JANET HANSON Turbulent Founder TIME 85 BROADS Economy 7:30 — 8:00am Registration 8:00 — 8:30am Networking Breakfast 8:30 — 9:15am Keynote–Kevin Ryan, founder and former CEO, DoubleClick 9:15 — 9:30am Networking Break 9:30 — 10:15am Panel Discussion 10:15 — 10:30am Q&A RON THOMAS VENUE Former VP, Organizational Development Roosevelt Hotel, Grand Ballroom, Madison at 45th Street, New York, NY MARTHA STEWART LIVING TICKETS $149 for tickets $1,500 for tables of 10

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You must be preregistered to attend this event. All tickets are nonrefundable. For more information, please call the Event Hotline at 212.210.0739. RENEE RUSSELL Executive Director, Global Talent Management AVON PRODUCTS CNYB 10-20-08 A 17 10/16/2008 8:38 PM Page 1

SMALL BUSINESS

materials are ready, JMH lets in- structors know they’re available by AT A GLANCE Class, pay attention to this request. “We look at where the fit is, then JMH EDUCATION we partner with an education asso- MARKETING ciation—quite frequently, that’s in message from our sponsor the curricular area,” Ms. Hamilton FOUNDER Janice M. Hamilton says.“It helps a teacher do what she’s JMH Education’s Chief Executive Janice Hamilton. After receiving a client’s propos- doing better.” STARTED 1980 “It’s obvious that a corporation like al, JMH looks at the needs of teach- For instance, JMH sought input REVENUES $5 million branded-content Colgate or Nestlé is bringing that ers, then considers how a client’s from the National Council of information to them, but it’s Teachers of Mathematics for EMPLOYEES 14 campaigns combine not blatant.” a financial literacy program, The growing emphasis on called Feed the Pig, intro- outreach, instruction corporate social responsibility duced in September. Aimed ant later on. and the ubiquity of advertis- at grades four through six, it JMH’s finely tuned approach BY BRIGID BERGIN ing have combined to make instructs kids on how to set means that the firm is selective branded educational content financial goals and helps about the business it accepts.For ex- very year, Colgate- more appealing and prevalent. teachers cover lessons in dec- ample, a cigarette company asked Palmolive sends tooth- Because kids’ current and imals, fractions and multipli- Ms. Hamilton about doing a com- brushes and samples of future purchasing power makes cation. munications project, but she turned its toothpaste to 4 mil- them a prized market, schools it down. lion schoolchildren. In are a valued marketing venue, Robust program For Ms. Hamilton, the proof of Eits annual report to shareholders,the according to a report, At Sea in “we ended up with a really JMH’s value is evident in cities like company calls the effort a “con- a Marketing-Saturated World, robust math program,” says San Francisco, which has banned sumption-building program.” from Arizona State University. Abigail Ramos, education all advertising from classrooms but When the Bright Smiles, Bright But companies’ efforts are program manager at JMH has allowed the Colgate campaign Futures program is marketed to meeting with growing oppo- and a former teacher. because of its overall educational schools, it becomes a literacy tool sition. The Ameri- benefit. that also happens to use Colgate can Institute for Harmony Philo,now 7,a student branding to teach students about High-quality materials Certified Public at Lake Pleasant Central School in oral health. “it’s important for children Accountants and upstate New York, participated in The force behind that trans- to brush their teeth,” says Su- the Ad Council the Bright Smiles program as a formtion is JMH Education Mar- san Linn, director of the co-sponsor the kindergartener. She recalls getting a keting, a communications firm that Boston-based Campaign for a program.Their lo- free toothbrush and toothpaste, but specializes in getting companies and Commercial-Free Childhood. gos appear on the not the brand. nonprofits’ messages into class- “But do they need to do it with materials and ac- What she took away was the les- A FINANCIAL LITERACY initiative rooms.For nearly 30 years,JMH has Colgate toothpaste? Once a supported by an accounting group companying Web son about brushing technique, she navigated the controversy sur- brand is involved,it stops being augments regular math. site.There’s no overt says:“You have to get the top and the rounding advertising to school- education.” sales pitch, but bottom. And when you’re done, you children by choosing its clients care- JMH overcomes the objec- teaching fiscal re- close your mouth and do them all fully and hiring former teachers to tions by making sure that its mate- message might correspond with a sponsibility to consumers when together.” design programs. rials are top-notch and receive the specific discipline, such as literacy, they’re young increases the likeli- “We know the fine line,” says imprimatur of teachers. language arts or geography. When hood that they will need an account- COMMENTS? [email protected] New downtown Palm opens at dicey time

and one in Times Square—revenues Owners take pay cut are flat. Sales in other cities, such as and switch future Atlanta, Denver, and Tampa, Fla., are slipping.Still,Mr.Ganzi says he’s plans to Europe been able to avoid laying anyone off. “We consider ourselves very for- BY LISA FICKENSCHER tunate,” he says. The new 10,000-square-foot at the end of this month,the Palm eatery joins a stampede of other Restaurant will open its fourth and steakhouses—including Bobby largest steakhouse in the city at 200 Van’s, Harry’s Steak and Nebraska Chambers St. Instead of celebrat- Steakhouse—that have rushed to Perfect Together Get a Sterling

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October 20, 2008 | Crain’s New York Business | 17 CN012395 9/25/08 4:03 PM Page 1 CNYB 10-20-08 A 19 10/16/2008 3:50 PM Page 1

HEALTH CARE “We need to make it more lucrative to keep people healthier. Right now, the sicker you let your patients get, the more revenue you get.” —Dr. Thomas Frieden, city health commissioner, Page 24 Seeking cure for e-records Networks would improve care, reduce errors, cut state’s bill

BY JUDITH MESSINA n brooklyn, when a nurse from the Visiting Nurse Service of New York first enters the home of a patient, she often finds herself faced with a dilemma: a medicine chest filled with medications, none of them INSIDE Ithe drugs the patient was supposed to take home from the hospital. “It’s a common event,” says a frustrated Pamela Brier, chief executive of Brooklyn’s CONNECTIONS Visiting Nurse Service of NY links Maimonides Medical Center. patients to doctors to labs “How do you deal with that and in real time coordinate care?” PREVENTION PUSH City It’s a scenario fraught with health chief wants to use potential for harm, and it happens digital records to transform all too frequently in New York’s health care fragmented health care system. IN THE OFFICE Doctor uses Medical records are mostly on Bronx network to improve paper and follow a patient care, cut costs sporadically, if at all, from doctor to PAGE 24 hospital to nursing home to home

doug ross care.The result is that patients often get drugs from multiple providers, none of whom knows what the others are prescribing. It’s also a scenario that Maimonides, VNSNY and WIRED: Participants in regional health information organizations exchange patient information using established data standards and privacy numerous other health care providers in Brooklyn are working and security policies. RHIOs may act as transmission traffic cops or use an outside service to monitor and provide access to data. See SEEKING on Page 22

world-class private hospital run by Hospital intended African-Americans and dedicated Harlem’s to offer world-class to their care. Activists hoped that in addition to serving this medically care falls prey to needy community, the hospital—a North financial, racial issues 151-bed facility on Madison Av- enue at East 122nd Street—would act as an economic engine, creating BY GALE SCOTT jobs and helping to revitalize East General Harlem. when harlem’s North General “We fought hard for it and real- Hospital moved into a new $488 ly wanted it to happen,” says one struggles million building in 1991, the out- former North General board mem- HOPE OF HARLEM: An look for its future was as bright as its ber.“It’s always been a special insti- ex-board member says, gleaming granite lobby. tution that everyone took pride in.” “It’s a special institution that Community leaders anticipated North General,founded in 1979, everyone took pride in.” for life that Harlem residents would have a See NORTH GENERAL on Page 20 buck ennis

October 20, 2008 | Crain’s New York Business | 19 CNYB 10-20-08 A 20 10/16/2008 3:54 PM Page 1

REPORT HEALTH CARE North General struggles for life

Continued from Page 19 ited board is down to six members, pricey acute care, such as heart sur- has long billed itself as the only mi- from a peak of 17 a few years ago. gery,while continuing primary care, nority-run private hospital in the The hospital also suffers from lead- cardiology, basic pediatrics and care state,and one of the few in the coun- ership problems, sources agree. for patients with HIV. try. But now it appears that the fu- “The board wants North Gener- HOSPITAL’S BILLS ture of the hospital is in doubt. Parental pressure al to survive, but without interfer- COMING DUE North General is near bankrupt- furthermore, in a racially tinged ence from Mount Sinai,” says a cy. Plagued by problems collecting dispute, the board is balking at a longtime community activist who from third-party payers, a failure to state recommendation that it allow was a key player in getting the new find enough insured patients,and an Mount Sinai Medical Center to be- hospital built. $142.2M inefficient billing system, it has come its “passive parent.” That “You could say it’s a black/white TOTAL REVENUES slipped steadily into debt. Its dispir- would likely mean doing away with thing,”says the activist,who request- $152.1M TOTAL EXPENSES $9.9M LOSSES

Figures are for 2006. buck ennis

ed anonymity because of the sensi- to the most recent available Internal tive nature of the controversy. “But Revenue Service filings, surgical I’m afraid it’s not in North General’s chief Howard Beaton earned best interest to dig in like this.” $522,000 in 2006,for example.That The former board member, who year,the hospital also paid $390,000 also requested anonymity, agrees to a consultant who acted as chief fi- that there are racial issues involved. nancial officer. He says that North General officials “The board has wanted to make don’t want to take direction from a salaries competitive with those of largely white-run institution based the best hospitals,” says the former outside of Harlem. board member. “There’s just not the atmosphere Most recently, on the spending of trust between North General and front, questions have been raised Mount Sinai to work things out in a about the fact that the current board collegial manner,” he says. chairman, the Rev. Calvin O. Butts Caught in a downward econom- III, hired a lawyer who works for ic spiral that started in 2001 with the Mr. Butt’s Abyssinian Develop- death of charismatic co-founder ment Corp. Charles Simpson of Eugene McCabe, the hospital has Windels Marx Lane & Mittendorf long been in the red. It recorded submitted bills of $809,000 for six losses of $9.9 million on revenues of months of work. Only after exten- $142.2 million in 2006;2007 figures sive wrangling did Mr. Simpson re- are not yet available.The institution duce his fees to $525,000. has fallen more than $13 million be- “[Those legal bills] don’t smell hind in payments on $138 million good, but they are all friends, so owed to the Dormitory Authority of what can you do?” says the commu- the State of New York. nity activist. In the past, it has received Mr. Simpson had no comment. bailouts from the state,but in a tight economy, getting additional help Helping hands from Albany seems unlikely. other creditors have been more “When Mr. McCabe was alive, helpful.Recognizing the importance he could always get the politicians to of keeping North General in the rally,” says Carol O’Connor, a hos- community—for the sake of the hos- pital clerical worker who has been pital’s 1,000 workers, as well as for with North General since it was the health care it provides—employ- founded. “We had to fight, but they ees union 1199 SEIU allowed North always came to our rescue.” General to fall $5 million behind in Ms.O’Connor says the hospital’s pension fund payments.The hospi- financial troubles are taking a toll on tal has begun to pay off the arrears. the staff. If the hospital enters bankruptcy, “Morale’s not what it was,” she the state would be forced to step in, says. “There’s concern. Things are possibly closing it. Everyone in- looking shaky.” volved hopes that North General There is also growing sentiment will survive, at least as a center that on the part of the board that the offers primary care. hospital’s president, Dr. Samuel Felena Dale, a nurse who has Daniel,is a far better physician than worked at North General for administrator and should step decades,says:“Eugene McCabe had down from his $494,000 post. Dr. a vision. He loved North General so Daniel did not respond to requests much that he died here. for comment. “This community needs us,” she His is a generous salary because, adds. “If North General goes, it despite its financial struggles, the would leave a hole in Harlem.” hospital has long paid its executives and top physicians well. According COMMENTS? [email protected]

20 | Crain’s New York Business | October 20, 2008 Project3 10/14/08 10:07 AM Page 1

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REPORT HEALTH CARE GETTING CONNECTED Key regional health information organizations in the New York area. Seeking cure for digital records HEAL NY Selected funding stakeholders Brooklyn Health Information $16.8 million Maimonides, Kingsbrook Continued from Page 19 tion age,” says Dr.Thomas Frieden, networks around the country have Exchange Jewish Medical Center, to reform.They are poised to turn the New York City commissioner of stalled or died,victims of the low rate Metropolitan Jewish Geriatric Center, VNSNY key on the Brooklyn Health Informa- health. “It’s tragic that you have of automation in the small physician tion Exchange, a network that elec- more fail-safe mechanisms buying a practices that in New York make up Long Island Patient Information $14.2 million North Shore-LIJ, Nassau tronically transmits medical data be- can of soup in a supermarket than the largest portion of the primary eXchange Health Care Corp., Cold tween providers, so when a patient you do getting medical care that can care capacity. Some providers are (Nassau, Suffolk, Queens) Spring Hills nursing home arrives home from the hospital, the save your life or kill you.” also reluctant to share patient data Bronx Regional Health Information $14.1 million Montefiore, Bronx-Lebanon, VNSNY nurse no longer has to guess with competitors. More discourag- Organization James J. Peters VA, St. what drugs he should be taking. Statewide effort ing, New York’s nascent health care Barnabas, Bronx Community Using an electronic tablet and a due to go live next month, BHIX networks have yet to figure out how Health Network, Jewish Home wireless Internet connection, the is one of 26 regional networks that to pay the bills after public seed and Hospital nurse (with permission) will be able are part of an effort to digitize patient money runs out in a couple of years. Primary Care Information Project $10.8 million NYC Department of Health to tap into a patient’s hospital medical records and link providers in A national study of 145 regional and Mental Hygiene, 171 records on the spot, use software the new Statewide Health Informa- health information organizations by community health centers that warns of harmful drug interac- tion Network, or SHIN-NY. The Harvard’s School of Public Health tions and,eventually,see the records goal is to improve quality, reduce er- last year said that a quarter were de- Interboro RHIO $9.7 million New York Hospital Queens, of other providers. rors and make a dent in the state’s funct; only 20 were operating at even (Queens, Brooklyn) Jamaica Hospital, Flushing “It’s really important that we outsize health care bill. a modest level. While data this year Hospital, HHC Health and Home Care bring medical care into the informa- At least, that’s the plan. Similar show more networks in operation, few have achieved a working model. New York Clinical Information $2.3 million Beth Israel, NY-Presbyterian, “How to keep an organization Exchange Memorial Sloan-Kettering, going,keep everyone happy within it Mount Sinai, Bellevue, and get the funding—it’s not there at NYU, Institute for Urban this point,” says Peter Waegemann, Family Health chief executive of the Electronic Sources: State Department of Health, NY eHealth Collaborative Medical Records Institute, an edu- cation and research organization. Indeed,health care has lagged vir- They all have one basic goal: to eXchange. “Assumptions are made tually every other industry in making speed up the handoff of accurate and that are not correct.” use of technology to cut costs and up-to-date medical information Ultimately, the networks will be improve quality. Despite delivering when a patient moves into a facility able to interact, say, to transmit in- uneven outcomes,the nation’s health or between facilities. In Long Island formation on a patient transferring care system consumes a staggering and Manhattan, the new networks from a hospital in Manhattan to a 16% of the gross domestic product. are starting by making hospital pa- nursing home on Long Island. The price tag is continuing to rise tient data available to emergency de- The payoff for all this activity is and is driving efforts to digitize in- partments. That means that when a years in the future, making public formation as a solution to spiraling patient shows up with chest pain and funding critical to getting such proj- costs and inconsistent quality. an abnormal but inconclusive EKG, ects off the ground. Some argue that “We frequently don’t have the in- the ER doctor will be able to check health networks, like highways, are a formation we need,” says New York previous EKGs and potentially avoid public good and that their cost state Commissioner of Health Dr. more invasive, costly and risky tests. should be built into Medicare, Med- Richard Daines.“It is driving a lot of In the Bronx and Brooklyn, pa- icaid and commercial insurance re- Tower One Rises cost, duplication, poor quality and tient transfers pose the biggest risks. imbursements.How soon that might the inability to shift resources where Large numbers of elderly and happen remains a question,given the Above the Rest they’re most effective.” chronically ill patients shuttle con- state’s already huge Medicaid tab and President George W.Bush has set stantly between hospitals, nursing its severe and growing deficit. a goal of 2014 to have a nationwide homes and home care. In the meantime, networks are electronic medical network in place. working to find ways to pay for Among the states, New York has More information needed themselves, such as charging fees to committed the most money to the ef- while they wait for the paper- participants or acting as a service fort,nearly $160 million so far,under work to catch up, doctors and other bureau for small physicians who the 2005 Health Care Efficiency and providers often have no idea what can’t afford the $10,000 to $30,000 Affordability Law, or HEAL NY. tests or procedures were done in price tag for an EMR system. The bulk of the funding has gone other facilities,making it almost im- “The state funding made other to build regional information net- possible to continue appropriate people feel secure in investing and works. In New York City and Long care. Many medical errors, in fact, willing to make a bet,” says Rachel Island, dozens of hospitals, nursing happen soon after a patient’s arrival Block, director of the eHealth Col- homes,community clinics and home at a new venue. laborative, which is coordinating care agencies are participating in 16 “A lot [of error] is related to not HEAL NY technology efforts networks and projects. All partici- having enough information,” says around the state.“Even so,it is more pants agree to use compatible soft- Dr. Benjamin Stein, an emergency of a short-term solution.” ware and hardware and adhere to a care physician and director of the set of privacy and security standards. Long Island Patient Information COMMENTS? [email protected]

FREE TRIALS OF ONLINE NEWSLETTERS CRAIN’S OFFERS READERS FREE two-week trial The Crain’s Insider covers political gossip and subscriptions to its online newsletters, Crain’s Health government and political issues. Pulse and The Crain’s Insider. The one-page newsletter is available Pulse deals with the business of by 6 a.m., Tuesday through Friday. An health care. It gives details on annual subscription is $269. mergers, contracts, executive appoint- For your free trial, go to ments, regulatory actions and www.crainsnewyork.com, and click legislative developments. on Insider or Health Pulse under An annual subscription is $319. The “Newsletters” on the right side of the one-page newsletter is available by 6 page. Under “Insider Tools” or “Health a.m., Monday through Friday. Pulse Tools,” click on “Request a Free Subscribers receive Pulse Extra, an additional page, on Trial.” After registering, you will receive an e-mail with Wednesday mornings. instructions on accessing the trial issues.

22 | Crain’s New York Business | October 20, 2008 CN012445 10/15/08 10:32 AM Page 1

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REPORT HEALTH CARE Stories by Judith Messina From patient’s home to doctor to lab to hospital patient and will receive lab results and physician VNSNY network seeks to link all providers in real time approvals electronically instead of having to wait for paperwork. Conversely, with patients’ permis- NURSING RESULTS t the end of 2007, the Visiting Nurse Service controlled or a medication not working well or a sion, physicians can upload files to the VNSNY Visiting Nurse Service of New York 2007 figures. of New York took over the case of a young lab test result we’re concerned about,” says Carol system and receive information from home care Amother awaiting a small-bowel transplant. Raphael, president of Visiting Nurse Service of visits directly into their electronic patient files. Average daily patient census 30,000 She had been in the hospital for a year and New York. “For us, it’s vital to have real-time, VNSNY “can send documents electronically, do weighed only 52 pounds. Though she’s still waiting much stronger communication with physicians.” it once and do it right,” says Dr. Eric Goldberg, a Patients served 131,600 for the transplant, she has gained weight and Ms. Raphael hopes to expand such electronic member of the Murray Hill Medical Group, which Professional home visits 2,248,000 hasn’t been hospitalized in six months. communication throughout the VNSNY system. With has 40 physicians. VNSNY’s secret: technology. Nurses get lab $1.7 million from the state’s HEAL NY program, she Even with the system in pilot mode, the data Average patient age 74 results in real time via an electronic tablet, which is spearheading the New York Community Home that VNSNY can collect is changing the way things allows them to make critical adjustments to the Health Interoperability Project, an effort to improve are done. The service now pays bonuses based on Patient age range 3 days to patient’s medication in consultation with a the quality of home care, reduce hospitalizations outcomes, such as avoiding repeat 100+ years patient’s doctor. Based on a model developed by and help patients resume a normal life. hospitalizations. FedEx to communicate with workers in the field, VNSNY has been piloting the project with three “It has had a powerful effect on behavior and Employees 12,660 the system has replaced cumbersome paper commercial laboratories and six clinics and practice,” Ms. Raphael says. communication that could delay treatment and physician practices around the city. When the VNSNY expects to eventually save $2 million Service area: New York City, Nassau, Westchester. increase the potential for error. system goes live next month, VNSNY nurses will annually by eliminating the need to transcribe Source: Visiting Nurse Service of New York “We’ll see [a patient with] diabetes not well- have up-to-date data when they evaluate a nurses’ notes. An ounce of prevention worth a pound of cure

think like Dr. Frieden. New Medicare policies deny Health commissioner’s reimbursement to hospitals in cases where they digital vision designed have made avoidable medical errors. For their part, doctors in the program are to revamp primary care enthusiastic. “We can really provide a better quality of health care,” says Dr. Terence Hsiuh, n activist for better health care, city Health who installed the city’s electronic medical records Commissioner Dr. Thomas Frieden believes system in his Sunset Park, Brooklyn, office. Athe city could prevent many deaths and But even with stringent privacy and security “IN THE PAST,by illnesses if it had more information about the standards that prevent the city from seeing the time you got the things that make New Yorkers sick and took action individual patient data, Dr. Hsiuh remains wary information, the to prevent them, including paying doctors more to about opening his records to outside eyes. patient was gone,” “It’s kind of scary, but I feel like this is for a says Dr. Akin Fisher. keep patients healthy. Today, it’s almost impossible to measure greater purpose,” he says.

buck ennis doctors’ performance or gaps in the system that are barriers to disease prevention. Of 1.5 million New Yorkers with high blood pressure, for example, the city estimates that 53% do not have In the doctor’s office it under control. “We don’t pay doctors more for doing things Medical Center or Bronx-Lebanon Hospital Center that save more lives,” says Dr. Frieden. “We don’t Bronx alliance shows sites, enabling providers to seamlessly continue have the information system we need to do that.” how networks can provide care. As other members convert to electronic from That is about to change. Under Dr. Frieden’s paper records, their data will also be available. direction and with $60 million from HEAL NY, better care, lower costs Instead of spending hours on the phone, Dr. private sources, and the city and federal Fisher now clicks a button to get test results, governments, the city has wired 171 community or Dr. Akin Fisher, a primary care physician, diagnoses and other details about his patients in health clinics that serve the city’s poorest and having a patient in the hospital used to be a Montefiore or Bronx-Lebanon. On a recent sickest residents. He is helping them digitize their F major hassle. To get a diagnosis or the Saturday night, for example, he sent a woman with patient records and giving doctors management results of a procedure or test, he had to chase abdominal pain to the emergency room. On tools, such as built-in reminders to give flu shots down harried hospital staff or hope that a paper Monday morning, he tracked her progress via his and order yearly mammograms. The city is betting record would eventually find its way to his desk. computer. He was later able to coordinate home that the system, the Primary Care Information “You’re flying blind or spending a long time on care for the patient, who was eventually Project, will improve quality and cut costs by the phone trying to get information from the diagnosed with gastric cancer, and the agency eliminating unnecessary testing and allowing hospital,” says Dr. Fisher, who practices at the picked up where the hospital left off. providers to share data. Morris Heights Health Center in the Bronx. “You “It’s really, really helpful,” Dr. Fisher says. “In But Dr. Frieden’s goals are even more can’t coordinate care when you don’t have any the past, it was so difficult to get information at ambitious. Ultimately, he wants to use data information.” the time you were seeing the patient, and by the gleaned from the system to transform health care Dr. Fisher has fewer difficulties now. For five time you got it, the patient was long gone.” in New York, taking it from a treatment system to a months, Morris Heights has been connected to the The technology is changing not only the way Dr. prevention system that pays bonuses to doctors Bronx Regional Health Information Organization, a Fisher interacts with hospitals but the way he whose policies and practices save lives. nonprofit network funded by $14.1 million from practices medicine. For one thing, he’s no longer “We need to make it more lucrative to keep New York state and made up of 30 hospitals, forced to arrange for duplicate tests—something people healthier,” says Dr. Frieden. “Right now, INCENTIVES: City Health nursing homes, community health centers, home he once had to do regularly because he couldn’t the sicker you let your patients get, the more Commissioner Dr. Thomas care agencies and pharmacy benefits managers. get the results of tests ordered by other providers. revenue you get.” Frieden wants to reward With patient permission, those participants “In the short run, it’s going to reduce costs,” Dr. It’s an ambitious goal, given that the city has doctors for keeping can instantly access the records of half a million Fisher says. “In the long run, it’s going to improve little control over reimbursements. However, there people healthy.

people who have been treated at Montefiore quality.” are signs that federal bureaucrats are starting to gibbons catherine

24 | Crain’s New York Business | October 20, 2008 Project4 10/10/08 9:10 AM Page 1

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CRAIN’S SMALL BUSINESS AWARDS BREAKFAST Meet Liz Lange FOUNDER OF LIZ LANGE MATERNITY

Armed with the philosophy that women should look and feel beautiful during pregnancy, Liz Lange has grown a business from an idea to an international success by single-handedly revolutionizing maternity style and society’s perception of pregnant women.

Liz will moderate a panel of Crain’s 2008 Small Business Awards winners as they discuss what it takes to be successful as a small business owner in New York.

LIZ LANGE 2008 Small Business Award Winners: DATE Nov 19, 2008 DICK CHEN DANIEL GARCIA LOCATION Founder Founder & Chief Executive At the 2008 New York Xpo for Business River Pavillion, Jacob Javits Center Aerospace Wire & Cable Inc. Salsa Caterers & Special Events

TIME CHRISTIANE LEMIEUX TOM SHANNON 7:30-8:00am Registration 8:00-9:00am Program Founder & Owner Founder DwellStudio Strike Holdings COST $70 for individual tickets TERRY TANG JOSH SELIG $700 for tables of ten Co-Founder & Chief Executive Founder & President TO REGISTER TMI Food Group Inc. Little Airplane Go to crainsnewyork.com/sbevent

PRESENTED BY: SPONSORED BY:

The 2008 NY Xpo for Business: Learn and network with 15,000 business people at New York’s largest business to business showcase. This New York sized business to business event is returning for its 3rd year with even more booths, education and networking opportunities. For more information about the show and full’s day’s events go to www.eventmanagement.org CNYB 10-20-08 A 27 10/16/2008 8:41 PM Page 1

THE WEEKS AHEAD

THIS WEEK’S EVENTS ninth floor. Free. Preregistration OCTOBER 20 required. (212) 366-9533. Museum of the City of New York holds OCTOBER 23 program on overdeveloping in New SalemGlobal Internet Website York. 6:30 p.m. to 8 p.m., 1220 Fifth Marketing holds monthly networking Ave. Fee: $5 members, $9 nonmembers. breakfast. 8:30 a.m. to 10 a.m., Preregistration required. Shiboleth, 1 Penn Plaza, suite 2527. Fee: (212) 534-1672, ext. 3395, $20. (212) 993-5828, ext. 0, or or [email protected]. [email protected]. OCTOBER 20 OCTOBER 23, NOVEMBER 20, New York Public Library’s Science, DECEMBER 4 Industry and Business Library holds American Business Associates holds information session on interpreting meeting on the business development financial statements. 1:15 p.m. to community. 7:45 a.m. to 10 a.m., 2:30 p.m., 188 Madison Ave., lower HQ/ Regus Business Center, 11 Penn level. Free. (212) 592-7000. Plaza, fifth floor. Free. Preregistration OCTOBER 20 required. (631) 425-9585 or New York Software Industry Asso- [email protected]. ciation holds program on the state of New York’s high-tech industry. OCTOBER 27-NOVEMBER 2 6 p.m. to 8 p.m., J.P.Morgan Chase, OCTOBER 28 270 Park Ave., third floor. Free. Nationwide Equities Corp. holds (212) 228-7468. networking reception. 6 p.m. to 8 p.m., OCTOBER 21 Social: Bar & Lounge, 795 Eighth Ave., Crain’s New York Business holds second floor. Free. Preregistration Breakfast Forum with city Comptroller required by e-mail. (917) 975-5985 or William Thompson Jr. 8 a.m. to [email protected]. 9:30 a.m., Hilton New York, 1335 Sixth OCTOBER 28 Ave. Fee: $70 individual ticket, $650 Pace University Small Business table of 10. Preregistration required. Development Center holds workshop www.crainsnewyork.com/events. on business planning. 5:30 p.m. to 7:30 OCTOBER 21 p.m., Pace University, 163 William St., Prime Strategies holds workshop on 15th floor. Free. (212) 618-6655 or how to let your business run itself. [email protected]. 6 p.m. to 8 p.m., City Space Suites, OCTOBER 28 817 Broadway. Fee: $29. Preregistration Northwestern Mutual Financial required. (212) 679-1209. Network holds seminar on asset OCTOBER 21 protection. 4 p.m. to 5 p.m., Russo Real Estate Board of New York holds Financial Group, 875 Third Ave., 23rd program on Brooklyn’s real estate floor. Free. (212) 433-1280 or market. 9:30 a.m. to 11 a.m., Brooklyn [email protected]. Marriott, 333 Adams St. Fee: Free for OCTOBER 29 members, $40 nonmembers. Crain’s New York Business holds 2008 (212) 683-1185 or Talent Management Conference: [email protected]. Managing Talent in a Turbulent OCTOBER 21 Economy. 7:30 a.m. to 10:30 a.m. Small Business Tech Tutorials Meetup Roosevelt Hotel, 45 E. 45th St. Fee: holds workshop on blog monetization. $149 individual ticket, $1,500 table 6 p.m. to 8 p.m., 136 E. 76th St., 3F. of 10. Preregistration required. Fee: $20 in advance, $25 at the door. www.crainsnewyork.com/events. (212) 650-0226 or OCTOBER 29 [email protected]. Business Development Academy holds OCTOBER 22 networking reception on valuing early- Small Business Development Center stage companies. 5:45 p.m. to 7:45 p.m., holds workshop on writing a successful Eaton & Van Winkle, 3 Park Ave., business plan. 11 a.m. to 2 p.m., 16th floor. Fee: $25 members, $45 Lehman College, 250 Bedford Park nonmembers. (609) 919-1895, ext. 100, Blvd. West, library, room B27C. Free. or [email protected]. (718) 960-8697 or OCTOBER 29 [email protected]. Cardozo School of Law holds lecture on OCTOBER 22 insurance for public catastrophes. New York Society of Association 6 p.m. to 8 p.m., 55 Fifth Ave., moot Executives holds program on the courtroom/lobby. Free. (212) 790-0258 changing forecast for the New York or [email protected]. economy, associations and not-for- OCTOBER 29 profits, featuring Crain’s New York American Business Women’s Business Editorial Director Greg David. Association holds seminar on women 1:45 p.m. to 4:30 p.m. Lifelong and retirement. 5:45 p.m. to 8 p.m., Learning Center, 1221 Sixth Ave., Chrysler Building, 405 Lexington Ave., 41st floor. Fee: $110 members, $75 each second floor. Free. Preregistration for three or more from same member required. (212) 387-8134 or organization; $135 nonmembers, [email protected]. $90 each for three or more from same NOVEMBER 1 nonmember organization. SCORE NYC holds seminar on Preregistration required. (212) 206-8230 business plans. 1 p.m. to 4 p.m., Science, or www.nysaenet.org. Industry & Business Library, OCTOBER 23 188 Madison Ave., lower level. Fee: $45 BtoB magazine holds netmarketing in advance, $55 at the door. breakfast. 7:45 a.m. to 10 a.m., Hilton (212) 264-4507 or [email protected]. New York, 1335 Sixth Ave. Fee: $45 in advance, $55 at the door. NOVEMBER 3-NOVEMBER 9 (212) 210-0151 or [email protected]. NOVEMBER 3 OCTOBER 23 NYHumanResources.com holds Venable holds seminar on financial seminar on tax and recordkeeping for markets and government regulation. entrepreneurs. 6:30 p.m. to 8:30 p.m., 12 p.m. to 1:30 p.m., 1270 Sixth Ave., 16 W. 23rd St. Fee: $65. Preregistration 25th floor. Free. (212) 307-5500. required. (917) 697-2063 or OCTOBER 23 [email protected]. FEGS Health and Human Services —maia blume System holds seminar on getting back to business in unpredictable times. 5:30 p.m. to 7:30 p.m., 315 Hudson St., TO LIST YOUR EVENT Listings can be submitted only through the Crain’s More meetings online at Web site. Go to www.crainsnewyork.com and click www.crainsnewyork.com on “Events.” Sponsors have a choice of several free Click on “Events” or paid listing options. All business events will be posted online within two business days. nb42p28-30cls.qxp 10/16/08 4:20 PM Page 28

CAREER COACHING TELECOMUNICATIONS Executive/Career Coach PUBLIC & LEGAL NOTICES available to help create strong AUCTION resume, handle job interviews BY ORDER OF SECURED PARTY AND BY THE SUPERIOR COURT OF NEW JERSEY, ORDER DATED SEPTEMBER 17, 2008 & negotiate compensation PUBLIC AUCTION - FORECLOSURE SALE INCLUDING 100% OF THE UNITS OF MONROE CENTER II URBAN RENEWAL COMPANY, LLC Contact: Anne Gallagher WEDNESDAY, NOVEMBER 19, 2008, 10:00 A.M. (EASTERN TIME) McCARTER & ENGLISH, LLP 917-880-7493 FOUR GATEWAY CENTER -100 MULBERRY STREET, NEWARK, NJ FOR SALE Collateral of Strategic Performance Fund-II, Inc. (the “Secured Party”), including, without limitation, 100% of the issued and outstanding membership interests (the “Pledged Membership Interests” or the “Pledged Collateral”) in Monroe Center II Urban Renewal Company, LLC (the “Borrower”) pledged by Dilawez Hoda and Gerard Saddel, Jr. (collectively, the “Grantor”) to the Secured Party under that certain Pledge, Assignment of Membership Interests, and Security Agreement, dated as of July 20, 2005, between the Grantor and the Secured Party. The Pledged Membership Interests are to be sold as a single block to the highest bidder under the terms and conditions set by the Secured Party. All the Pledged Membership Interests are unregistered securities under To place your the Securities Act of 1933 (the “33 Act”). TERMS OF SALE Cash Sale: Prospective purchasers must be prepared to pay the full purchase price at the time of sale in cash or by bank cashier’s check. Should the successful bidder fail to so deliver the purchase price, the Secured Party reserves the right, in its sole discretion, to re-sell the Pledged Collateral, and any loss arising from such sale shall be the responsibility of the defaulting successful bidder. The sale may be subject to such further conditions and provisions as may be announced at the start of the sale. classified ad call The Secured Party reserves the right to bid for and purchase the Pledged Collateral and to credit the expenses of the sale and all or a portion of the principal, interest and other amounts owing or for which the Borrower is liable to the Secured Party against the purchase price. Block Sale: The Pledged Membership Interests will be sold only as a block. Bids: Bids for the Collateral (each, a “Bid”) should be submitted so that they are received by McCarter & English, LLP, Four Gateway Center, 100 Mulberry Street, Newark, New Jersey 07102, Attn: Sheila Calello, John Gallagher Esq., no later than 2:00 p.m. (Eastern Time) on Monday, November 17, 2008. Each Bid shall include (a) a form of agreement governing the purchase of the Pledged Collateral, (b) proof of the bidder’s financial wherewithal to consummate a purchase of the Pledged Collateral, (c) a deposit of $500,000 by cash or bank cashier’s check, and (d) such other information as the Secured Party may request in its discretion. No Warranties: The sale will be made without representations or warranties, and transfer of title will specifically state that “there is no warranty relating to title, possession, quiet enjoyment of the like in this disposition.” INFORMATION @ 212-210-0189 Interested parties may obtain financial and other information with respect to the Pledged Collateral by written request to Joanna Mulford, Prudential Real Estate Investors, 8 Campus Drive, 4th Floor, Parsippany, NJ 07054, Phone: (973) 683-1743, Fax: (973) 734-1427, Email: [email protected], with a copy of such request to McCarter & English, LLP, Four Gateway Center, 100 Mulberry Street, Newark, New Jersey 07102, Attn: Sheila Calello, Esq. Phone: (973) 639-6931, Fax: (973) 624-7070, Email: [email protected]. PURCHASER REPRESENTATIONS Because the Pledged Membership Interests are unregistered under the 33 Act and being sold as a block, the purchaser of the Pledged Membership Interests will be required to execute a letter representing: (i) that it is purchasing the Pledged Membership Interests for its own account and not with a view to distribution thereof; (ii) that the Pledged Membership Interests will not be resold or transferred or otherwise hypothecated by the purchaser without prior registration in accordance with the 33 Act and applicable state blue sky laws or unless an exemption from such registration under the 33 Act or applicable state blue sky laws is available; REAL ESTATE (iii) that it possesses sufficient business experience to evaluate the risk of purchasing the Pledged Membership Interests; and (iv) that it has sufficient financial means to be able to afford the risk of the investment. RESTRICTIVE LEGEND COMMERCIAL COMMERCIAL Certificates for the Pledged Membership Interests (if any) when issued to the purchaser thereof will bear an appropriate legend to the effect that the Pledged Membership Interests represented thereby may not be sold NEW JERSEY or transferred without registration under the 33 Act or the availability of a valid exemption from such registration. DESCRIPTION OF BORROWER’S BUSINESS The Grantor is owner of one hundred percent (100%) of the Pledged Membership Interests. The Borrower owns a certain parcel of land located at 800-822 Monroe Street in Hoboken, New Jersey. The Borrower agreed SADDLE BROOK - 40,000 SF to construct on such land residential condominium units and parking using the proceeds from loans advanced by (a) the Secured Party to the Borrower under a Loan Agreement, dated as of July 20, 2005, between the Wrhse/offc spc for rent Borrower and the Secured Party as amended by that certain First Amendment to Loan Agreement dated as of March 1, 2006 (the “SPF-II Loan”); and (b) Sovereign Bank to the Borrower under a Construction Loan Agreement, dated as of July 2, 2005, between the Borrower and Sovereign Bank, which loan is presently held by SPF Monroe Center Lender LLC, an affiliate of the Secured Party (the “Sovereign Loan”). The Borrower 6 drs, rail siding drs, poten- is currently in default under both of the foregoing financing agreements. The balance due under the SPF-II Loan as of July 7, 2008 is at least $16,299,091.24; the balance due under the Sovereign Loan as of July 7, tial 3PL srvcs, 5.50 triple net 2008 is at least $2,662,431.86. Lease will do, 2 yr term. Please contact the parties specified above for further information regarding the matters described herein. Princ. only. Call M. Blair REQUEST FOR PROPOSALS 732-547-9897 THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY Requests for Proposals OFFICE SPACE RENOVATION & PERFORMANCE OF EXPERT PROFESSIONAL SERVICES FOR THE OPERATION OF THE SPACE AVAILABLE – CHELSEA PIERS COMPLETION OF AN INTERAGENCY STUDY OF REGIONAL PRIVATE BAYSIDE MARINA, QUEENS PASSENGER FERRY SERVICES IN THE NEW YORK METROPOLITAN AREA The NYC Department of Parks & Recreation (“Parks”) requests proposals for the Renovation & Operation of the The Port Authority of New York and New Jersey (the Authority) hereby invites proposals for the Bayside Marina, Queens. All proposals submitted in response performance of expert professional services for the completion of a study of private passenger to this Request for Proposals (“RFP”) must be submitted no ferry services in the New York Metropolitan Area. later than Wednesday, November 26, 2008 at 3 p.m. Firms interested in responding to this Request For Proposals (RFP), as detailed on the Authority’s Parks will hold a recommended proposer meeting on Web site: www.panynj.gov, are encouraged to request a copy of, and respond to, this RFP. Joint Wednesday, November 5, 2008 at 11 a.m. at the proposed concession site, which is located at the east end of 8,000 SF Ventures/Teams are acceptable. The specific information and qualifications details are set 28th Avenue and Cross Island Parkway, Queens. All forth in the document entitled “Request For Proposals for Performance of Expert Professional interested parties are urged to attend. Services for the Completion of an Interagency Study of Regional Private Passenger Ferry Incredible, loft-style space overlooking Hudson River. Private Entrance. For more information, contact: Alexander Han, Project Services in the New York Metropolitan Area.” Manager, NYC Parks & Recreation, Division of Revenue and New Construction • 13’ Ceilings • On-site Parking, Health Club, Golf and more A copy of this RFP will be furnished to interested firms upon request at [email protected]. Concessions, 830 Fifth Avenue, the Arsenal-Central Park, Rm IMMEDIATE OCCUPANCY • Call 212.336.6831 407, New York, NY 10065 or call (212) 360-1397 or to It can also be obtained directly via download at www.panynj.gov. Upon requesting the RFP, download the RFP, visit “http://www.nycgovparks.org/ please reference RFP Number: 16276 in the subject line. Your e-mail should include the following sub_opportunities/business_ops/index.php?view_page= Below Market Rent 39 Broadway - Financial District information, firm name, email address, contact person, mailing address, and telephone number. con_listing” and, after logging in, click on the “download” Proposals are due on or about November 19, 2008. link that appears adjacent to the RFP’s description. You can Upscale pre-built executive offices. 37th Floor Penthouse: modern also email him at [email protected]. Prestigious Midtown Building. Private offices, large windows TELECOMMUNICATION DEVICE FOR THE DEAF (TDD) 212-504-4115 2700-4100 sq ft. Private entrance. With world class views; fully Notice of Formation of ZIBBY’S PREP NOTICE OF FORMATION of LORENCMD, 3 yr term, 9 windowed Furnished; Internet, phone LLC. Arts of Org. filed with Secy. of LLC. Arts. Of Org. filed with Secy. Of State State of N.Y. (SSNY) on 8/21/08. Office of N.Y. (SSNY) on 5/29/08. Office location: SUN GARDEN RESEARCH & DEVELOP- offices + conference room. Call 212-938-3600 MENT LLC, a domestic Limited Liability New carpet & paint. Move in 12/1/08 location: New York County. SSNY des- New York County. SSNY designated as ignated as agent of LLC upon whom agent of LLC upon whom process against Company (LLC) filed with the Sec of State [email protected] process against it may be served. SSNY it may be served. SSNY shall mail process of NY on 9-10-08. NY Office location: New York County. SSNY is designated as www.crainsnewyork.com shall mail process to principal business to: National Registered Agents, Inc. 212-268-0033 x 201 agent upon whom process against the location: 137 E 36 St., Apt. 23C, NY, NY Principal business location: 983 Park Ave, LLC may be served. SSNY shall mail a 10016. Purpose: Any lawful activity. NY, NY 10028. Purpose: any lawful activity. 1078884 w.o copy of any process against the LLC PUBLIC & LEGAL NOTICES Notice of Qualification of 125 URBAN JV served upon him/her to The LLC, 594 NOTICE OF FORMATION OF LIMITED LIA- PARTNERS LLC. Authority filed with Secy. Broadway, Ste. 1002A, NY, NY 10012. Notice of Qualification of VA Associates, BRANDON INTERNATIONAL ADVISORS BILITY COMPANY. The name of the limited of State of N.Y. (SSNY) on 2/19/08. Office General Purposes. LLC. Auth. filed with NY Dept. of State: LLC, a domestic Limited Liability Company liability company is Anne Bezamat LLC location: NY County. LLC formed in Notice of Qualification of Fortuna 8/22/08. Office loc.: NY County. LLC (LLC) filed with the Sec of State of NY on (“LLC”). LLC’s Articles of Organization was Delaware (DE) on 11/30/06. SSNY desig- Insurance Services, LLC. Authority filed formed in NV: 6/2/04. NY Sec. of State 6-22-07. NY Office location: New York filed with NYS Dept of State on 9/4/08. nated as agent of LLC upon whom process with Secy. of State of NY (SSNY) on designated agent of LLC upon whom County. SSNY is designated as agent LLC’s office is located in NY County. NYS against it may be served. SSNY shall mail 9/216/08. Office location: NY County. process against it may be served and upon whom process against the LLC may Secretary of State (“SOS”) has been des- process to: c/o Thor Equities, LLC, 25 W. LLC formed in Kentucky (KY) on 7/26/05. shall mail process to: c/o CT Corporation be served. SSNY shall mail a copy of any ignated LLC’s agent upon whom process 39th St., NY, NY 10018. DE address of SSNY designated as agent of LLC upon System, 111 8th Ave., NY, NY 10011, regd. process against the LLC served upon against LLC may be served and SOS shall LLC: c/o National Registered Agents, Inc., whom process against it may be served. agt. upon whom process may be served. him/her to The LLC, 227 E. 66th St., Apt. mail a copy of any process against LLC 160 Greentree Drive, Ste. 101, Dover, DE SSNY shall mail process to: c/o National Principal office addr.: 8775 Cloudleap Ct., 2C, NY, NY 10021. General purposes. served upon SOS to LLC, c/o Anne 19904. Arts. of Org. filed with DE Secy. of Registered Agents, Inc., 875 Avenue of Ste P54, Columbia, MD 21045. Arts. of Bezamat, 885 Park Ave, NY, NY10021. LLC’s State, 401 Federal St., Ste. 4, Dover, DE the Americas, Ste. 501, NY, NY 10001. Notice of Qualification of FASHIONOLOGY Org. filed Sec. of State, Carson City, NV purpose is to engage in any lawful act. 19901. Purpose: any lawful activity. Address of the principal office: 120 North GROUP, LLC. Authority filed with Secy. of 89701. Purpose: any lawful act. Mill St., Lexington, KY 40507. Arts. of State of NY (SSNY) on 09/05/08. Office Notice of Qualification of New Mountain Notice of Qualification of Cyrus Access Org. filed with KY Secy. Of State, 700 Notice of Qualification of 80 WEP-107 location: New York County. LLC formed in Vantage (California) II, L.P. Authority filed LLC. Authority filed with NY Dept. of State Capital Ave., #152, Frankfurt, KY 40601. LLC. Authority filed with Secy. of State of Delaware (DE) on 02/27/08. Principal with NY Dept. of State on 9/15/08. Office on 9/2/08. Office location: NY County. Purpose: any lawful activities. NY (SSNY) on 08/19/08. Office location: office of LLC: c/o CJ Apparel Group, LLC, location: NY County. LP formed in DE on Principal business addr.: 225 Liberty St., New York County. LLC formed in Delaware 1411 Broadway, NY, NY 10018. LLC 8/26/08. NY Sec. of State designated as 7th Fl., NY, NY 10281. LLC formed in DE Notice of Formation of GREENPORT (DE) on 07/30/08. SSNY designated as agrees to use fictitious name of FASH- agent of LP upon whom process against it on 9/12/01. NY Sec. of State designated as DEVELOPER, LLC. Arts. of Org. filed agent of LLC upon whom process against IONOLOGY GROUP (FG), LLC while con- may be served and shall mail process to agent of LLC upon whom process against with Secy. of State of NY (SSNY) on it may be served. SSNY shall mail process ducting business in NY. SSNY designated the principal business addr. of the LP: 787 it may be served and shall mail process to: 09/16/08. Office location: New York to Meister Seelig & Fein, LLP, c/o Matthew as agent of LLC upon whom process Seventh Ave., 49th Fl., NY, NY 10019. DE CT Corporation System, 111 8th Ave., NY, County. Principal office of LLC: 60 E. Kasindorf, Esq., 2 Grand Central Tower, against it may be served. SSNY shall mail addr. of LP: c/o The Corporation Trust Co., NY 10011, regd. agt. upon whom process Columbus Circle, NY, NY 10023. SSNY 140 E. 45th St., 19th Fl., NY, NY 10017. process to c/o Corporation Service Co., 1209 Orange St., Wilmington, DE 19801. may be served. DE addr. of LLC: c/o The designated as agent of LLC upon whom Arts. of Org. filed with Secy. of State of 80 State St., Albany, NY 12207. Arts. of Name/addr. of genl. ptr. available from NY Corporation Trust Co., 1209 Orange St., process against it may be served. SSNY the State of DE, Div. of Corporations, 401 Org. filed with DE Secy. of State, Div. of Sec. of State. Cert. of LP filed with DE Sec. Wilmington, DE 19801. Arts. of Org. filed shall mail process to c/o Corporation Federal St., Ste. 4, Dover, DE 19901. Corporations, PO Box 898, Dover, DE of State, Federal & Duke of York Sts., Dover, with DE Sec. of State, PO Box 898, Dover, Service Co., 80 State St., Albany, NY Purpose: Any lawful activity. 19903. Purpose: Any lawful activity. DE 19901. Purpose: any lawful activity. DE 19903. Purpose: any lawful activity. 12207. Purpose: Any lawful activity.

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PUBLIC & LEGAL NOTICES

Notice of Formation of PENYEACH 43 Notice of Formation of NGM NEW YORK Notice of Qualification of Renaissance Notice of Formation of a Limited Liability Notice of Qualification of Goldman Sachs LLC. Arts. of Org. filed with Secy. of State LLC. Arts. of Org. filed with Secy. of State Futures Fund Access LLC. Authority filed Company (LLC): Name: HARLEM TORCH Mount Kellett Capital Partners Employee of NY (SSNY) on 8/28/2008. Office loca- of N.Y. (SSNY) on June 18, 2008. Office with NY Dept. of State on 9/3/08. Office MAGAZINE, LLC Articles of Organization Funds GP, L.L.C. Authority filed with Secy. tion: New York County. SSNY designated location: New York County. SSNY desig- location: NY County. Principal business filed with the Secretary of State of New of State of NY (SSNY) on 8/25/08. Office as agent of LLC upon whom process nated as agent of LLC upon whom addr.: 225 Liberty St., 7th Fl., NY, NY York (SSNY) on 5/01/08. Office location: location: NY County. LLC formed in against it may be served. SSNY shall mail process against it may be served. SSNY 10281. LLC formed in DE on 11/13/07. New York County. SSNY has been desig- Delaware (DE) on 8/6/08. SSNY designat- process to the LLC, c/o Elisabeth M. shall mail process to: c/o Insight NYC NY Sec. of State designated as agent of nated as agent of the LLC upon whom ed as agent of LLC upon whom process Kovac, Esq., 90 Park Ave., Ste. 1710, NY, LLC, 206 Front Street, Ste. 1B, Brooklyn, LLC upon whom process against it may process againt it may be served. SSNY against it may be served. SSNY shall mail NY 10016. Purpose: Any lawful activity. NY 11201, Attn: Hubertus Fiedler. be served and shall mail process to: CT shall mail a copy of process to: C/O process to: 85 Broad St., NY, NY 10004. Purpose: any lawful activity. Corporation System, 111 8th Ave., NY, NY HARLEM TORCH MAGAZINE, LLC, 1980 DE address of LLC: 2711 Centerville Notice of formation of Healthy Inner 10011, regd. agt. upon whom process Madison Avenue, New York, NY 10035. Road, Ste. 400, Wilmington, DE 19808. Beauty, LLC a limited liability company. THE FUTURES GROUP IT LLC, a domes- may be served. DE addr. of LLC: c/o The Purpose: Any Lawful Purpose. Cert. of Form. filed with DE Secy. of Articles of Organization filed with the tic Limited Liability Company (LLC) filed Corporation Trust Co., 1209 Orange St., State,, P.O. Box 898, Dover, DE 19903. Secretary of State of New York SSNY on with the Sec of State of NY on 2-5-08. NY Wilmington, DE 19801. Arts. of Org. filed Notice of Qualification of J.C. Flowers III Purpose: any lawful activity. July 15, 2008. Office located in New York Office location: New York County. SSNY with DE Sec. of State, PO Box 898, Dover, L.P. Authority filed with NY Dept. of State County. SSNY has been designated for is designated as agent upon whom DE 19903. Purpose: any lawful activity. on 9/10/08. Office location: NY County. Notice of Qualification of New Dimension service of process. SSNY shall mail copy process against the LLC may be served. Principal business addr.: 717 5th Ave., NY, Human Capital Solutions, L.L.C. Authority of any process served against the LLC to SSNY shall mail a copy of any process Notice of Qualification of York Access LLC. NY 10022. LP formed in Cayman Islands filed with Secy. of State of NY (SSNY) on Healthy Inner Beauty, LLC 1325 fifth against the LLC served upon him/her to Authority filed with NY Dept. of State on (CI) on 1/24/08. NY Sec. of State desig- 9/25/08. Office location: NY County. LLC Avenue, suite 6H, New York, NY 10029. The LLC, 11679 Sunrise View Ln., 9/2/08. Office location: NY County. nated as agent of LP upon whom process formed in MI on 8/28/02. SSNY designated Purpose: any lawful purpose. Wellington, FL 33647. General purposes. Principal business addr.: 225 Liberty St., against it may be served and shall mail as agent of LLC upon whom process 7th Fl., NY, NY 10281. LLC formed in DE process to: c/o CT Corporation System, against it may be served. SSNY shall mail NOTICE OF FORMATION of Gravity Seven, Notice of Qualification of COASTAL PRO- on 9/12/01. NY Sec. of State designated as 111 8th Ave., NY, NY 10011, regd. agt. process to: c/o National Registered Agents, LLC. Article of Organization filed with TECTIVE SERVICES, LLC. Authority filed agent of LLC upon whom process against upon whom process may be served. CI Inc., 875 Ave. of the Americas, Ste. 501, NY, the Secretary of State of NY (SSNY) on with Secy. of State of NY (SSNY) on it may be served and shall mail process to: addr. of LP: c/o Walker SPV Ltd., Walker NY 10001. MI address of LLC: 625 E Big 05/29/08. Office location: NY County. 8/26/08. Office location: New York County. CT Corporation System, 111 8th Ave., NY, House, 87 Mary St., George Town, Grand Beaver, Ste. 200, Troy, MI 48083. Arts. of SSNY has been designated as agent LLC formed in Delaware (DE) on 12/16/02. NY 10011, regd. agt. upon whom process Cayman, KY1-9002, CI. Name/addr. of Org. filed with MI Secy. of State, Corp. Div., upon whom process against it may be Principal office of LLC: 1 E. 57th St., NY, may be served. DE addr. of LLC: c/o The genl. ptr. available from NY Sec. of State. 7150 Harris Dr., PO Box 30054, Lansing, MI served. The Post Office address to which NY 10022. SSNY designated as agent of Corporation Trust Co., 1209 Orange St., Cert. of LP filed with Asst. Registrar of 48909. Purpose: any lawful activity. the SSNY shall mail a copy of any LLC upon whom process against it may be Wilmington, DE 19801. Arts. of Org. filed Exempted LPs, Citrus Grove Bldg., Goring process against the LLC served upon served. SSNY shall mail process to the with DE Sec. of State, PO Box 898, Dover, Ave., George Town, Grand Cayman, CI. Notice of Formation of a Professional him is C/O the LLC 149 E 23rd St.. N.Y., LLC at the address of its principal office. DE 19903. Purpose: any lawful activity. Purpose: any lawful activity. Service Limited Liability Company (PLLC) N.Y., 10010. Purpose of LLC: to engage Addr. in jurisdiction of formation: c/o Name: KB DENTAL PARTNERS, LLC. Articles in any lawful act or activity. Street National Corporate Research, Ltd., 615 S. NOTICE OF FORMATION OF INTROPATH Notice of Formation of EDITIONS FAW- of Organization filed by the Department of address of Principal Business location is: Dupont Hwy., Dover, Kent County, DE LLC. Article of Organization filed with the BUSH LLC. Arts. of Org. filed with Secy. State of New York on: 8/19/2008. Office 35 E. 21st Street, New York, NY 10010. 19901. Arts. of Org. filed with Secy. of Secretary of State of NY (SSNY) on of State of NY (SSNY) on 09/25/08. Office location: County of New York. State of the State of DE, Div. of 07/11/2008. Office location NEW YORK location: New York County. Principal office Purpose: Dentistry METRO REHABILITATION PARTNERS, Corporations, PO Box 898, Dover, DE County. SSNY has been designated as of LLC: 448 West 19th St., #2G, NY, NY Secretary of State of New York (SSNY) LLC, a domestic Limited Liability 19903. Purpose: Any lawful activity. agent upon whom process against it may 10011. SSNY designated as agent of LLC designated as agent of PLLC upon whom Company (LLC) filed with the Sec of be served. The Post Office address to upon whom process against it may be process against it may be served. SSNY State of NY on 8-6-08. NY Office location: Notice of Formation of Clearwater which the SSNY shall mail a copy of any served. SSNY shall mail process to Peter shall mail copy of process to: c/o New York County. SSNY is designated as Construction Consulting LLC. Arts. of Org. process against the LLC served upon R. Stern, Esq., c/o Mclaughlin & Stern, Englewood Management, LLC, 19 agent upon whom process against the filed with Secy. Of State of N.Y. (SSNY) on him/her is C/O the LLC 244 fifth Ave, LLP, 260 Madison Ave., NY, NY 10016. Beekman Street, New York, NY 10038 LLC may be served. SSNY shall mail a 8/07/08.Office location: New York County. Suite# D207. New York, NY 10001. Purpose: Any lawful activity. copy of any process against the LLC SSNY designated as agent of LLC upon Purpose of LLC: to engage in a any lawful NOTICE OF FORMATION OF LIMITED LIA- Notice of Formation of NEMO16, LLC. served upon him/her to The LLC, 4 E. whom process against it may be act or activity. Street address of Principal BILITY COMPANY. NAME: SERGIO MAN- Arts. of Org. filed with Secy. of State of 84th St., NY, NY 10028. General purposes. served.SSNY shall mail process to princi- Business location is:244 Fifth Ave. Suite# NINO LLC. Articles of Organization were NY (SSNY) on 02/02/06. Office location: pal business location:1202 Lexington D207. New York, NY 10001 filed with the Secretary of State of New Notice of Formation of Cooper Square Ave., Suite 102, NY, NY 10028. Purpose: New York County. Principal office of LLC: York (SSNY) on 01/09/08. Office location: Contractors, LLC. Arts. of Org. filed with Any lawful activity. 1078927 w.o Notice of Qualification of Wriston Capital 39 W. 38th St., #6W, NY, NY 10018. The New York County. SSNY has been desig- Secy. of State of NY (SSNY) on 8/29/08. Management, LP. Authority filed with latest date on which the LLC may dissolve nated as agent of the LLC upon whom Name of For. LP: TOWERBROOK Office location: NY County. SSNY desig- Secy. of State of NY (SSNY) on 9/3/2008. is 12/31/2026. SSNY designated as agent process against it may be served. SSNY INVESTORS III (PARALLEL), L.P. Appl. for nated as agent of LLC upon whom Office location: New York County. LP of LLC upon whom process against it may shall mail a copy of process to the LLC, Auth. filed with Sec. of State of NY: process against it may be served. SSNY formed in Delaware (DE) on 8/28/2008. be served. SSNY shall mail process to c/o Filippo Cinotti, 50 Broad Street, Suite 9/11/08. Jurisd. and date of org.: Alberta shall mail process to: c/o Eric H. Seltzer, Principal office of LP: 230 Park Ave., 15th The LLC at the principal office of the LLC. 1911, New York, New York 10004. 3/17/08. Principal bus loc.: 430 Park Gilbride, Tues, Last & Spellane LLC, 708 Fl. , NY, NY 10169. SSNY designated as Purpose: Any lawful activity. Purpose: For any lawful purpose. Avenue, 6th Floor, New York, NY 10022. Third Ave., 26th Fl., NY, NY 10017. agent of LP upon whom process against it NY State office loc.: New York Cty. Sec. of Notice of Formation of MPFC LLC. Arts. of Purpose: any lawful activity. may be served. SSNY shall mail process Notice of Formation of UPPER 90, LLC. State designated as agent upon whom Org. filed with Secy. of State of NY (SSNY) to the LP, Attn: Stephen Brown at the Arts. of Org. filed with Secy. of State of NOTICE OF FORMATION of Coaching For process against it may be served. Sec. of on 09/17/08. Office location: New York principal office of the LP. Arts. of Org. NY (SSNY) on 09/04/08. Office location: Success, LLC. Arts. of Org. filed with the State shall mail copy of process to: 430 County. Principal office of LLC: c/o Milstein filed with Secy. of State of DE, 401 New York County. Principal office of Secy. of State of N.Y. (SSNY) on 9/16/08. Park Avenue, 6th Floor, New York, NY Brothers, 6 East 43rd St., NY, NY 10017. Federal St., Ste. 4, Dover, DE 19901. LLC: 310 W. 47, Apt. 6K, NY, NY 10036. Office location: New York County. SSNY 10022. Addr. of LP in NY is TowerBrook SSNY designated as agent of LLC upon Purpose: Any lawful activity. SSNY designated as agent of LLC upon designated as agent of LLC upon whom Investors GP III (Parallel), L.P., 430 Park whom process against it may be served. whom process against it may be served. process against it may be served. SSNY SSNY shall mail process to c/o Corporation Avenue, 6th Floor, New York, NY 10022. Notice of formation of a Limited Liability SSNY shall mail process to Wilson Egidio shall mail process to principal business Service Co., 80 State St., Albany, NY Name/addr. of GP avail. from Sec. of Company (LLC): Name: KONTAIN LLC, at the address of the principal office. location: 345 East 73rd St. # 8J, NY, NY 12207-2543. Purpose: Any lawful activity. State. Authorized office in Alberta where Articles of Organization filed with the Purpose: Any lawful activity. 10021. Purpose Any lawful activity. Cert. of LP is filed is Alberta Registrar of Secretary of State of New York (SSNY) on 1087791 w.o Corporations, P.O. Box 1007, Station Notice of Formation of Twentywest Notice of Formation of Tisserie 420 WB, 09/30/08. Office location: New York Properties, LLC, Art. of Org. filed Sec’y of Main, Edmonton, Alberta, Canada T5J County. SSNY has been designated as LLC. Arts. of Org. filed with Secy. of State Notice of Formation of Walton Building 4W6. Purpose: any lawful activity. State (SSNY) 7/15/08. Office location: NY of NY (SSNY) on 8/14/08. Office location: Associates, LLC. Arts. of Org. filed with agent of the LLC upon whom process County. SSNY designated as agent of LLC against it may be served. SSNY shall mail NY Co. SSNY designated as agent of LLC NY Dept. of State on 7/1/08. Office loca- Notice of Formation of 550 Watkins Street upon whom process against it may be a copy of process to: C/O KONTAIN LLC, upon whom process against it may be tion: NY County. Principal business addr.: Managers LLC. Arts. of Org. filed with NY served. SSNY shall mail copy of process Attention: Legal, 80 Franklin Street #1, served. SSNY shall mail process to: c/o 104 W. 70th St., NY, NY 10023. Sec. of Dept. of State on 9/8/08. Office location: to Reinhardt LLP, 44 Wall St., 10th Fl., NY, New York, NY 10013. Purpose: Any St. Honore, LLC, 857 Broadway, NY, NY State designated as agent of LLC upon NY County. Sec. of State designated as NY 10005. Purpose: any lawful activities. Lawful Purpose. Latest date upon which 10003, also registered agent. Purpose: whom process against it may be served agent of LLC upon whom process against LLC is to dissolve: No specific date.” BEDROCK CAPITAL GROUP, LLC, a domes- any lawful activities. and shall mail process to: Steven Ebert, it may be served and shall mail process to tic Limited Liability Company (LLC) filed Esq., Ebert & Associates, LLC, 350 5th the principal business addr.: c/o CPC Notice of Formation of 6408 NEW “Notice is hereby given that a hotel liquor Ave., Ste., 4011, NY, NY 10118, regd. agt. Resources, Inc., 28 E. 28th St., 9th Fl., NY, with the Sec of State of NY on 8-11-08. NY UTRECHT AVE LLC, a domestic LLC. Arts. license for beer, wine and liquor has been upon whom process may be served. NY 10016. Purpose: any lawful activity. Office location: New York County. SSNY is of Org. filed with the SSNY on 09/11/08. Purpose: any lawful activity. applied for by the undersigned to permit designated as agent upon whom process Office location: NY County. SSNY has Notice of formation of a Limited Liability the sale of beer, wine and liquor at retail against the LLC may be served. SSNY shall Notice of Formation of July Ventures, LLC. been designated as agent upon whom Company: IMMO JCG LLC, Articles of rates for on-premises consumption at the mail a copy of any process against the LLC Arts. of Org. filed with Secy. of State of NY process against the LLC may be served. organization filed with the Secretary of Hilton Garden Inn at 63-67 West 35th served upon him/her to The LLC, Attn: SSNY shall mail a copy of process to: 37A (SSNY) on 8/29/08. Office location: NY State of New York (SSNY) on 10/01/08. Street, New York, NY, under the Alcoholic Richard T. Cohen, 2 Fifth Ave., Ste. 17E NY, County. SSNY designated as agent of LLC Orchard Street, NY, NY 10002. Purpose: Office location: New York County. SSNY Beverage Control Law. RLJ III-HGN NY 10011. General Purposes. Any Lawful Purpose. upon whom process against it may be has been designated as agent of the LLC Manhattan Lessee, LLC d/b/a Hilton served. SSNY shall mail process to: c/o Peter upon whom process against it may be Garden Inn 35th Street.” Notice of Qualification of AMC Wappinger, Notice of Qualification of BlackRock L. Herb, Esq., 225 Broadway, Ste. 3504, served. SSNY shall mail a copy of process LLC. Authority filed with NY Dept. of State Global Horizons I L.P. Authority filed with NY, NY 10007. Purpose: any lawful activity. to: 60 Broad str - ste 3502, New York, NY Notice of Qualification of East 12th Street on 9/15/08. Office location: NY County. NY Dept. of State on 10/20/06. Office 10004. Purpose: Real Estate. JV LLC, App. for Auth. filed Sec’y of State Principal business addr.: 3 W. 46th St., location: NY County. LP formed in DE on Notice of Formation of Creative Print (SSNY) 8/7/08. Office location: NY County. NY, NY 10036. LLC formed in DE on 5/11/93. NY Sec. of State designated as Technologies, LLC. Certificate of Merger Notice of Formation of MADE-BY-HAND, LLC org. in DE 6/4/08. SSNY designated 9/11/08. NY Sec. of State designated as agent of LP upon whom process against it filed with Secy. of State of NY (SSNY) on LLC. Arts. of Org. filed with Secy. of State as agent of LLC upon whom process agent of LLC upon whom process against may be served and shall mail process to July 28, 2008. Office location: New York of NY (SSNY) on 09/23/08. Office loca- against it may be served. SSNY shall mail it may be served and shall mail process the principal business address: 40 E. County. SSNY designated as agent of LLC tion: New York County. Principal office of copy of process to c/o Nat. Reg. Agents, to: c/o CT Corporation System, 111 8th 52nd St., NY, NY 10022. DE addr. of LP: upon whom process against it may be LLC: 227 W. 11th St., #52, NY, NY 10014. 875 Ave of the Americas, NY, NY 10001, Ave., NY, NY 10011, regd. agt. upon c/o The Corporation Trust Co., 1209 served. SSNY shall mail process to SSNY designated as agent of LLC upon the Reg. Agt. upon whom proc. may be whom process may be served. DE addr. of Orange St., Wilmington, DE 19801. Goldstein Rubinton Goldstein & DiFazio, whom process against it may be served. served. DE office addr.: 160 Greentree Dr., LLC: 1209 Orange St., Wilmington, DE Name/addr. of genl. ptr. available from NY PC, 18 West Carver Street, Huntington, SSNY shall mail process to the LLC at the Dover, DE 19904. Cert. of Form. on file: 19801. Arts. of Org. filed with DE Sec. of Sec. of State. Cert. of LP filed with DE NY, 11743, Attn: Arthur Goldstein, Esq. address of its principal office. Purpose: SSDE, Townsend Bldg., Dover, DE 19901. State, 401 Federal St., Dover, DE 19901. Sec. of State, P.O. Box 898, Dover, DE Purpose: any lawful act or activity. Any lawful activity. Purpose: any lawful activities. Purpose: all lawful purposes. 19903. Purpose: any lawful activity.

October 20, 2008 | Crain’s New York Business | 29 CNYB 10-20-08 A 30 10/16/2008 6:27 PM Page 1

REAL ESTATE DEALS

this will be its first New York shop. Lower E. Side landmark draws Brits “If your favorite color is green, but you like the smell of strawber- ries, they can make that for you,” turn it into apartments,faltered over rent for the office 5,000 on the second says Gabe Whitman. Mr. Whit- Consulting firm the years because of objections by space, about 40% of floor and a 3,000- man, of Buchbinder & Warren Re- takes entire building, the community and the Landmarks the fourth floor, was square-foot base- alty Group, and colleague William Preservation Commission. $60 a square foot. ment. Asking rent for Abramson negotiated for the tenant. uncovers more Two investment firms, 135 Sec- Zara is opening a the ground floor was Landlord Mulberry Associates ond and Lower East Side Equities, store on the ground $134 a square foot. was represented by Sinvin Realty hidden treasures bought the building last year, think- floor in November. The foot traffic on broker Magnolia Martin. She ex- ritish consulting ing that its prominent East Village The new office Fifth Avenue was a plains that Bath Junkie will fit well in firm ?What If! has location would attract retail tenants. will comprise more major factor in favor the tourist-heavy area. The compa- signed a 10-year lease for After some deals fell through, the than twice the space of the site, says co- ny plans to open the store in Novem- all of 137 Second Ave.,a owners were introduced to ?What Zara now occupies at owner Jack Sinanaj, a ber, in time for holiday gift-giving. landmarked building If! Managing Partner Nina Powell. 645 Madison Ave., former waiter at Wil- —adrianne pasquarelli Bconstructed in 1884 to provide med- Ms. Powell, who calls the build- says broker Jeffrey liamsburg’s venerable ical care to German immigrants. ing “phenomenal,” especially liked Paisner of Ripco Real Peter Luger Steak- ?What If!, which specializes in the high ceilings, 8-foot-wide Estate Corp. No A-1: Ben & Jack’s chooses 255 Fifth. house. Mr. Sinanaj Investment adviser business growth strategies, will use wrought-iron staircase and great moving date has been and the three other to fly solo on Park the 14,100-square-foot property, natural light. During renovations, set. Zara has five co-owners hope to between St. Marks Place and Ninth the firm discovered details such as stores in the city and plans to open open a third eatery if this second lo- morgan creek Capital Manage- Street, as its U.S. headquarters. It skylights that had been blocked by two more, including the one on cation does well. Their original site ment is getting its own space in mid- plans to move from the 5,000 square dropped ceilings and stained-glass Fifth Avenue, Mr. Paisner says. is on East 44th Street. town after three months of sharing feet it rents at 62 White St. by the windows that were covered by walls. The deal allows Zara to be above Robert Bielsky and Manny with Tiger Management Corp. on end of October. Terms of the deal Ms.Powell expects the office en- one of its stores in a central location Kabiri, brokers with Manhattan the 21st floor of 101 Park Ave. weren’t disclosed. vironment to inspire effective cam- close to public transportation, he Commercial Realty Co., represent- The North Carolina-based in- The ornate facade of the red brick paigns for ?What If! clients, which says. He also notes that asking rents ed Ben & Jack’s. Landlord Kew vestment advisory recently signed a and terra cotta building trumpets its include Nike and HSBC. “Gray in the Plaza district, Zara’s current Management Corp. was represent- five-year lease for 5,500 square feet original function,with busts of Hip- spaces produce gray ideas,” she says. home,run between $100 and $150 a ed in-house by James Preston. on the 28th floor of 100 Park Ave.,at pocrates and other scientific pioneers. Sinvin Realty broker Michelle square foot. —adrianne pasquarelli East 40th Street. Asking rent in the The three-story property has been Stone represented the tenant. The GVA Williams brokers Harry 36-story tower, owned by SL Green home to a series of medical facilities, investment firms represented them- Blair and Sean Kearns represented Realty, was $100 a square foot. the last of which closed in 2005.Re- selves. the landlord, 500 Fifth Ave. Inc. Soaps, lotion chain Larry Swiger of SL Green and development plans,including one to —theresa agovino —theresa agovino stirs up NoLIta Tara Stacom of Cushman & Wake- field negotiated for the landlord. nolita is getting a fresh new fra- Eric Dresdale of Newmark Knight Zara gets literal Ben & Jack’s grance—actually, a whole lot of Frank represented the tenant. about oversight steaks out Flatiron them. Bath Junkie, which lets cus- “We started negotiating this deal tomers create soaps and lotions with right before the softening of the minding the store is about to get flatiron district residents will their choice of fragrance, recently market,so we were happy to accom- easier for Zara USA. The clothing soon be able to have their steak and signed a 12-year lease for 1,100 plish rents under $100 a foot for the retailer just signed a 15-year lease eat it, too. Ben & Jack’s recently square feet at 227 Mulberry St.,be- space,” Mr. Dresdale says. for 11,300 square feet at 500 Fifth signed a 15-year lease at 255 Fifth tween Prince and Spring streets. The transaction closed late last Ave., between West 42nd and West Ave., between East 28th and East Asking rent was $120 a square foot. month, and Morgan Creek plans to 43rd streets, where it will move its 29th streets.The deal includes 5,000 The company, based in Fayette- move by the beginning of 2009. GOOD ODDS: ?What If! takes 137 Second. administrative operations. Asking square feet on the ground floor, ville, Ark., has about 70 stores, but —damian ghigliotty

PUBLIC & LEGAL NOTICES

Notice of Formation of New York Phone NOTICE OF FORMATION OF DANZ EMER- Notice of Formation of RF West 129 LLC. Notice of Formation of Faria & Associates Notice of Formation of 11 Rector Street, Card LLC, Art. of Org. filed Sec’y of State GENCEE. DanzEmergencee. Arts of Org Arts. of Org. filed with Secy. of State of Fine Art LLC. Arts. of Org. filed with NY LLC. Arts. of Org. filed with Secy. of State (SSNY) 7/9/08. Office location: NY County. filed with the SSNY on 4/21/2008. SSNY N.Y. (SSNY) on 8/15/07. Office location: Dept. of State on 9/19/08. Office location: of N.Y. (SSNY) on 7/24/08. Office loca- SSNY designated as agent of LLC upon designated as an agent of LLC upon NY County. SSNY designated as agent of NY County. Sec. of State designated as tion: NY County. SSNY designated as whom process against it may be served. whom process against the LLC may be LLC upon whom process against it may agent of LLC upon whom process against agent of LLC upon whom process against SSNY shall mail copy of process to 37-13 served. SSNY shall mail a copy of process be served. SSNY shall mail process to: it may be served and shall mail process to: it may be served. SSNY shall mail process 74th St., Store #4, Jackson Heights, NY to PO Box 45. New York, NY 10101. Royal Field LLC, 164 W. 128th St., #1C, NY, 1220 N. Market St., Ste. 850, Wilmington, to: The LLC, 11 Rector St., NY, NY 10006. 11372. Purpose: any lawful activities. Purpose: any lawful purpose NY 10027. Purpose: any lawful activity. DE 19801. Purpose: any lawful activity. Purpose: any lawful activity. Notice of Formation of FREE OUR Notice of Formation of The Film Cube LLC. Notice of Formation of CROWN FIFTH Notice of Formation of HAIR FOR YOUR Notice of Formation of NATROB, LLC. CHILDREN THE FILM LLC. Arts. of Org. Arts. of Org. filed with Secy. of State of NY RETAIL LLC. Arts. of Org. filed with Secy. FUTURE, LLC. Arts. of Org. filed with Secy. Arts. of Org. filed with Secy. of State of filed with Secy. of State of NY (SSNY) (SSNY) on 8/20/08. Office location: NY of State of N.Y. (SSNY) on 3/14/08. Office of State of N.Y. (SSNY) on 9/21/07. Office NY (SSNY) on 10/2/08. Office location: on 8/7/08. Office location: NY County. County. SSNY designated as agent of LLC location: NY County. SSNY designated as location: NY County. SSNY designated as New York County. SSNY designated as SSNY designated as agent of LLC upon upon whom process against it may be served. agent of LLC upon whom process against it agent of LLC upon whom process against agent of LLC upon whom process against whom process against it may be SSNY shall mail process to: Christopher may be served. SSNY shall mail process to: it may be served. SSNY shall mail process it may be served. SSNY shall mail process served. SSNY shall mail process to: Sewall, 5619 Oak Place, Bethesda, MD c/o Crown Acquisitions, 362 Fifth Avenue, to: The LLC, 620 Park Ave., NY, NY 10021. to the LLC, 65 W. 36th St., 9th Fl., NY, NY 215 W. 101st St., #3C, NY, NY 10025. 20817. Purpose: any lawful activity. NY, NY 10001. Purpose: any lawful activity. Purpose: any lawful activity. 10018. Purpose: Any lawful activity. Purpose: any lawful activity. Notice of Qualification of Paulson Access Notice of Qualification of Halcyon Access Notice of Qualification of Landmark Value Notice of Qualification of WILLIAMS Notice of Qualification of D. E. Shaw Real II LLC. Authority filed with NY Dept. of III LLC. Authority filed with NY Dept. of Access LLC. Authority filed with NY Dept. U.S.A. REALTY SERVICES, LLC. Authority Estate Holdings 4-A, L.L.C. Authority filed State on 9/2/08. Office location: NY State on 9/2/08. Office location: NY of State on 9/2/08. Office location: NY filed with Secy. of State of NY (SSNY) on with NY Dept. of State on 6/23/08. Office County. Principal business addr.: 225 County. Principal business addr.: 225 County. Principal business addr.: 225 9/22/08. Fictitious name in NY State: location: NY County. LLC formed in DE on Liberty St., 7th Fl., NY, NY 10281. LLC Liberty St., 7th Fl., NY, NY 10281. LLC Liberty St., 7th Fl., NY, NY 10281. LLC WILLIAMS USARS, LLC. Office location: 3/27/07. NY Sec. of State designated as formed in DE on 11/25/03. NY Sec. of formed in DE on 5/10/05. NY Sec. of State formed in DE on 9/16/05. NY Sec. of State NY County. LLC formed in Delaware (DE) agent of LLC upon whom process against it State designated as agent of LLC upon designated as agent of LLC upon whom designated as agent of LLC upon whom on 8/21/08. SSNY designated as agent of may be served and shall mail process to: D. whom process against it may be served process against it may be served and shall process against it may be served and LLC upon whom process against it may E. Shaw & Co., L.P., 120 W. 45th St., 39th and shall mail process to: CT Corporation mail process to: CT Corporation System, shall mail process to: CT Corporation be served. SSNY shall mail process to: Fl., Tower 45, NY, NY 10036, Attn: John System, 111 8th Ave., NY, NY 10011, 111 8th Ave., NY, NY 10011, regd. agt. System, 111 8th Ave., NY, NY 10011, 380 Madison Ave., NY, NY 10017. DE Liftin, General Counsel, registered agent regd. agt. upon whom process may be upon whom process may be served. DE regd. agt. upon whom process may be address of LLC: c/o United Corporate upon whom process may be served. DE served. DE addr. of LLC: c/o The addr. of LLC: c/o The Corporation Trust served. DE addr. of LLC: c/o The Services, Inc., 874 Walker Road, Ste. C, addr. of LLC: 1209 Orange St., Wilmington, Corporation Trust Co., 1209 Orange St., Co., 1209 Orange St., Wilmington, DE Corporation Trust Co., 1209 Orange St., Dover, DE 19904. Arts. of Org. filed with DE 19801. Arts. of Org. filed with DE Sec. Wilmington, DE 19801. Arts. of Org. filed 19801. Arts. of Org. filed with DE Sec. of Wilmington, DE 19801. Arts. of Org. filed DE Secy. of State, Townsend Bldg., Dover, of State, 401 Federal St., Dover, DE 19901. with DE Sec. of State, PO Box 898, Dover, State, PO Box 898, Dover, DE 19903. with DE Sec. of State, PO Box 898, Dover, DE 19901. Purpose: to engage in the real Purpose: any lawful activity. DE 19903. Purpose: any lawful activity. Purpose: any lawful activity. DE 19903. Purpose: any lawful activity. estate management business.

30 | Crain’s New York Business | October 20, 2008 CNYB 10-20-08 A 31 10/16/2008 6:28 PM Page 1

BUSINESS CORPORATE LADDER Banker David Bagatelle sees his opportunity PAGE 33 buck ennis

GOTHAM GIGS Voice of power MALIKHA MALLETTE, 29, loves to entertain. It’s a good thing, as she hosts The Malikha Mallette Movement on Power 105.1 from 2 p.m. to 6 p.m. every weekday. QUICK START The Queens native attended Spelman College in Atlanta and worked at the radio station there. She was at Baltimore and Washington stations before returning to New York in 2003 to Power 105.1. TEST PILOT Ms. Mallette, who moved up to become the afternoon-drive personality in August, employs her wit and sarcasm to keep the audience interested. “I try things out, and embellish if they’re working,” she says. POSITIVE PERSONA Celebrity status can be a force in community outreach, Ms. Mallette has learned. On-air, she has encouraged young people to register to vote, and she will be at Long Island University to talk to students about safe sex practices. “I feel like I’m a guide to the listeners,” she says. ROB TURSI —sarah studley has seen Xanadu 40 times, usually from the seats on EXPERT OPINIONS the stage. COMMUNICATING WITH CLIENTS DURING A CRISIS financial firms use the Web to reassure clients about the security of their investments.

Though online levinekarjean communication is efficient and easy, firms should also FAN communicate through GROUPS monthly statements and personalized letters, or people Broadway’s superfans Rent will begin filling in the blanks themselves. Companies The should send reassuring Fanatics see Xanadu, other shows dozens of times Rentheads messages through multiple channels—Internet, e-mail, BY MIRIAM KREININ SOUCCAR Xanadu statements and customer The Du service lines—and follow up hen the broadway musical Spring Awakening opened almost two years ago, Crew with clients who want more Kristopher Kaye raced from Queens to Times Square to see the show five nights details. People need to know how to ensure the safety of a week.The St. John’s University sophomore even flew out to Los Angeles to their money. watch it on tour and compare casts. Avenue Q —michael In total, Mr. Kaye has seen the steamy musical about teenage sexuality 88 The Q-tips ellison times, and he’s not done yet. Next year, he plans to fly to Europe to catch the Executive vice [title of curtain in London and Berlin. istockphoto president show] Corporate “Everyone thinks I’m crazy, even my friends who are into theater,” says Mr. The Insight W Kaye, who has spent around $5,000 on Spring See SUPERFANS on Page 32 [tos]sers October 20, 2008 | Crain’s New York Business | 31 CNYB 10-20-08 A 32 10/16/2008 6:32 PM Page 1

BUSINESS LIVES Superfans can’t get enough Continued from Page 31 They devote all their free time Broadwayworld.com—and attend- Awakening tickets so far. “It’s like I and most of their extra cash to the ing the theater by night. fell in love,and I just had to go more Great White Way, living online by “My whole social life revolves and more.” around Broadway,” says Tamra Mr. Kaye—who has also seen Sheehan, a 24-year-old consultant Hairspray,Wicked and Rent 30 times ‘My whole for Ryan Wealth Management, each and skipped class to see who constantly checks Theguilty- Xanadu the day its producers post- social life ones.org,a message board for Spring ed a closing notice—is one of hun- Awakening fans.“With very few ex- dreds of obsessed Broadway fans. revolves around ceptions, everyone I’ve accepted These new groupies, mostly twen- into my life as a friend since I grad- tysomethings who are more akin to Broadway’ uated college, I met at a show or is starstruck teens following rock also a theater fan.” bands than theater sophisticates,are These drama hounds join groups lured by edgy and modern produc- like The Q-tips for Avenue Q lovers tions (think Wicked with its aston- and The Du Crew for Xanadu fans— ishing special effects or Spring day—scouting out discounts and which have hundreds of members— Awakening with its young cast and discussing the minutiae of each and go to great lengths to support explicit subject matter). show in chat rooms on sites like their shows. Ms. Sheehan, who uses an Excel spreadsheet to track all the shows she’s seen and how many times she’s seen them, went so far as to travel to Montreal for a night just State-of-the-Art to see the off-Broadway hit Altar Boyz in French. ED MOTTERSHEAD comes into New York STORAGE and New level of devotion from Princeton three times a month to see LOGISTICS ms. sheehan’s obsession, like so shows. Our services include: Since 1860 many other fans’ addictions, began with Rent. The show, which opened karjean levinekarjean • Private rental rooms and storage accounts in 1996 and closed last month, was • Transportation the first to offer a $20 ticket lottery SENIOR GROUPIE • Crating outside the theater each night. That • Packing spectacle, now widely copied, fueled NOT EVERY BROADWAY GROUPIE is under 30. Ed Mottershead, a Princeton, • Domestic and international shipping a level of devotion to a single show N.J.-based editor in his early 60s, has seen Xanadu 15 times. The longtime never before seen in the theater world. Broadway lover contends that nothing has ever attracted him like Xanadu. “The enthusiasm for Rent at that “It can always get me in a good mood,” he says. “I do like other shows, time was remarkable,” says Kevin but I’ve never had a craze about one like this before.” 444 W. 55th Street 305 E. 61st Street www.cirkerhayes.com McCollum,a producer of Rent,Av- Mr. Mottershead comes into town to see shows three times a month, New York, NY 10019 New York, NY 10065 For more information, email 212.484.0200 212.838.2525 us at [email protected] enue Q and In the Heights, among typically attending two productions back to back. Before Xanadu closed last others. “Rent happened as technol- month, he always bought a ticket for the musical’s evening performance to ogy became a tool for fans to con- follow whatever he saw in the afternoon. “That way, no matter how bad what you saw in the afternoon was, it makes up for it,” he says. With Xanadu shuttered, Mr. Mottershead is seeking a new love. He plans

08456 Crains Ad_r2.indd 1 10/9/08 10:18:38 AM to see Billy Elliot, All My Sons, Equus, Speed- the-Plow and 9 to 5 in hopes of finding it. Lyford Group International Ltd nect as they never had before.” production to theatergoers in has renewed its lease of It also offered fans a cheap- Times Square. Devotees of that enough way to keep seeing the show, who call themselves 7,303 sf show. Ms. Sheehan, who has seen “[tos]sers,” even circulated peti- Rent 65 times, went with tickets tions and sent videos to get the pro- won via the lottery all but 13 times. duction featured on The Ellen De- Now many productions,especial- Generes Show and The View.The ly those like Altar Boyz that are whole outreach effort was organ- geared to younger audiences, offer ized online through Facebook and discounts and giveaways. And many message boards. diehard fans rely on those gimmicks While these supporters rarely to pay for their habits. seek the limelight themselves,some Entire 21st floor of 17,519 sf available are becoming famous in a Pricey habit small ways. On a lark, Mr. Prestigious suites also available rob tursi, a 27-year-old Tursi put out a YouTube from 1,286 sf to 12,769 sf $3K theater fan who has seen AMOUNT that video reviewing Xanadu af- Xanadu 40 times, typically one fan has ter it opened.His video end- spent to see buys the $41 seats that are the musical ed up getting 10,000 hits. on the stage. Mr.Tursi,who Xanadu Now he gets recognized on works in the benefits divi- the street by people who sion of The International Alliance have seen him on the Internet and of Theatrical Stage Employees, es- is even getting e-mails from people timates he has spent at least $3,000 in far-flung places like Denmark on the musical. “It’s like a therapy and Australia. session for an hour and a half,” he Such notoriety doesn’t come says. close to the best perk of all, howev- Producers say a strong fan base er: rubbing shoulders with the cast. isn’t enough to keep a show run- “The other night I went to see ning—Xanadu just closed despite Xanadu, and Cheyenne Jackson saw its zealous following.But having an me and called, ‘Robbie,’ and came army of groupies can be a major and gave me a big hug,” he says. “It boon. When [title of show] posted was unbelievable!” its closing notice last month, more than 100 of its fans spent days cir- COMMENTS? culating homemade fliers about the [email protected]

32 | Crain’s New York Business | October 20, 2008 CNYB 10-20-08 A 33 10/16/2008 8:42 PM Page 1

BUSINESS LIVES CORPORATE LADDER David Bagatelle Cashing in on crisis Heritage Bank’s head climate suits him just fine. “It might just be the best time PERSONNEL FILE expects to find many ever to start a bank in the New York marketplace,” he says. “A lot of our COMPANY Heritage Bank creditworthy clients; competition,because they’re spend- TITLE President and chief ing time cleaning their balance executive $60 million in capital sheets, are not lending.” AGE 44 BY DANIEL MASSEY Personal access RÉSUMÉ Executive vice presi- mr. bagatelle believes tightened dent, Signature Bank; managing he financial crisis has lending policies at larger institutions director, Republic National Bank left Wall Street in a state have frustrated creditworthy clients, of panic, but it has given providing an opportunity for his MANAGEMENT STYLE Trust but Heritage Bank Presi- bank to swoop in. Clients will have verify dent David Bagatelle in- personal access to senior manage- HOBBIES Running, golf, the Tcreased peace of mind. ment, something rare at large com- Yankees “I’m probably the happiest mercial banks. The focus will be on banker in New York City right business loans of $1 million to $5 now,” says Mr. Bagatelle, a stocky million in New York City, Long Is- the bank opens. former college football player who land and northern New Jersey,as well “The amount of capital that they

maintains that competitive edge. as personal wealth management for raised is higher than what banks tra- buck ennis Almost two years ago, the indus- companies’ owners and managers. ditionally go out with,” says John try veteran saw a need in the New Already, the bank has raised Duffy, chief executive of Keefe venture,which turned into Heritage. who for nearly 15 years was executive York market for a bank serving small more than $60 million in capital,the Bruyette & Woods. “That allows From 1993, Mr. Bagatelle vice president and chief financial of- to midsize businesses and their ex- most ever for a stand-alone startup them to make larger loans and go af- worked at Republic National Bank, ficer of North Fork Bancorporation. ecutives. That was before it became in New York’s history. Investors in- ter more business.” where he climbed the ranks,becom- With the competition scaling back clear that toxic mortgages would clude private equity fund Carpenter Mr. Bagatelle hopes to use that ing managing director in 1999.Ear- lending, there’s ample talent out lead to a credit crunch of epic pro- Community BancFund, which money to re-create the success he lier in his banking career, he was an there that could be convinced to join portions. And it was before new pledged to purchase a nearly 15% had at Signature Bank, where as area manager and assistant vice a staff of what will be about 100. bank mergers continued a pattern of stake, and Morgan Stanley sub- founder and executive vice presi- president at M&T Bank. “We’re going to be lifting bankers consolidation that had created a lo- sidiary FrontPoint Partners, which dent, he helped it earn a spot in the from our competition,” says the cal industry with just a few powerful invested in a 9.9% stake. Private eq- top 2.5% of U.S. commercial banks Staffing up four-year starter at nose guard for players. uity firm BH Equity Research com- by assets. Signature accumulated $5 mr.bagatelle will not be trying to Wesleyan University.“We’re not go- Now, as Heritage plans to open mitted an additional $2.25 million, billion in assets in the five years fol- reinvent the wheel. He’ll rely on his ing to make any friends with that.” its doors later this month, Mr. and Mr. Bagatelle now thinks he lowing its 2001 opening. Mr. own experience,as well as that of Ex- Bagatelle says the stormy financial will raise close to $85 million before Bagatelle left to form a new startup ecutive Chairman Daniel Healy, COMMENTS? [email protected]

EXECUTIVE MOVES

ACCOUNTING & CONSULTING ARCHITECTURE & DESIGN partner. He had been a partner at Berdon: Andrew W. Reiss, 42, joined as a RMJM Hillier: Gale La Cava, 55, was Dechert. HOT JOBS principal. He was formerly a senior named director of marketing. She was Dorsey & Whitney: Jeffrey A. Fromm, 45, associate at Skadden Arps Slate formerly marketing director at Kohn joined as partner. He was previously a Meagher & Flom. Pedersen Fox Associates. partner at Eiseman Levine Lehrhaupt & WANTED: REGIONAL DIRECTOR Huron Consulting Group: Mark Barnes, Kokoyiannis. 48, was named managing director. He FINANCE & INSURANCE Golenbock Eiseman Assor Bell & Peskoe: ORGANIZATION Diabetes Research Institute Foundation was formerly executive vice president, Bank of New York Mellon: Eric Kamback, Amy Shane Silver, 36, joined as partner. chief administrative officer and director 49, was promoted to chief executive, She was a partner at DLA Piper. JOB DESCRIPTION Managing the New York office, which focuses of research operations at St. Jude treasury services group, from deputy Tarter Krinsky & Drogin: Scott S. mostly on fundraising Children’s Research Hospital. head of treasury services. Markowitz, 44, joined as partner. He MOST IMPORTANT TASK Establishing a fundraising strategy to KPMG: Nicole Crighton, 40, was named CIT Group Inc.: Alvaro Damiani, 51, had been a partner at Todtman principal. She was a managing partner at joined as chief financial officer. He was Nachamie Spizz & Johns. help bring in $150 million in five years Oreck Crighton Adams & Chase. formerly chief financial officer of Wilson Sonsini Goodrich & Rosati: CREDENTIALS NEEDED Ten years of fundraising experience and a Protiviti: John Calvin, 52, joined as Citicapital Commercial Finance Group. Michael Sommer, 47, joined as partner. proven track record of soliciting gifts in excess of $25,000 managing director. He had previously Jefferies & Co.: Kelly R. Holloway, 47, He was formerly a partner at been a vice president at IBM Corp. was named senior vice president. He was McDermott Will & Emery. SALARY $170,000 to $200,000 a senior vice president at Vining Sparks. ADVERTISING & COMMUNICATIONS Opus Advisory Group: Kim Millman, 44, MEDIA & ENTERTAINMENT RECRUITER Professionals for Nonprofits BBH: Jason Hill, 27, was promoted to was promoted to senior associate, busi- MTV Networks International: Bruce DOWNSIDE Difficult economic environment for fundraising director of business development from ness development, from senior adviser. Gillmer, 45, was promoted to senior vice new business account director. president of talent and music from UPSIDE Enabling scientists to work on new diabetes treatments Cossette Communications: Bill HEALTH CARE senior vice president of music and music The 35-year-old foundation raises money to fund the Diabetes Affinity Health Plan: Oberlander, 49, was appointed chief Mark Corcoran,54, programming, U.S. Research Institute, a world leader in cure-focused research. creative officer. He was executive was promoted to executive vice president Saveur magazine: Maryellen Mooney, 45, creative director at McCann-Erickson. from chief financial officer. joined as New York account director of Because DRI scientists are supported by private philanthropy, they Passenger: Samantha Skey, 36, was Abbe Abboa-Offei, 39, was promoted to the World Publications title. She had are able to use stem cells in their work. In June, the foundation named senior vice president of business senior vice president from vice president. been creative marketing director for Bon completed a five-year campaign to raise $127 million. It is just development and general manager, NYU Langone Medical Center: Catherine Appétit magazine. beginning a new campaign. Eastern region. She had been executive Scott Manno, 55, joined as chair, —MIRIAM KREININ SOUCCAR vice president, strategic marketing, at department of pediatrics. She had been REAL ESTATE Alloy Media + Marketing. associate chair, department of pediatrics, CORE Group Marketing: Mark Ripka, 41, Seiter & Miller Advertising: Barbara Von at Children’s Hospital of Philadelphia. was appointed chief operating officer. Euw, 52, joined as account director. He was formerly vice president at DPS She had been director of consultative LAW Sporting Club Development Co. services at MBS. Arent Fox: Les Jacobowitz, 49, joined as Grubb & Ellis: Patrick Breslin, 47, was corporate managing director from services. He had been director of retail StoreBoard Media: Kelley O’Day, 39, named president, East Coast retail managing director. real estate at J.P.Morgan Chase. joined as senior account director. She group. He was formerly president, retail Trinity Real Estate: Emily Lloyd, 63, joins had previously been director of global EXECUTIVE PROMOTIONS group, at GVA Williams. as chief operating officer. She was com- SERVICES accounts at The Sunflower Group. The fastest way to get an announcement into Studley: Evan Margolin, 36, was missioner of the New York City Depart- Administaff Inc.: Deanna Hagan, 41, The Ad Store: Brian Flatow,38,was Crain’s is to submit details online. Fill out the form promoted to corporate managing ment of Environmental Protection. was promoted to district manager from promoted to president from senior at www.crainsnewyork.com/submit. The director from managing director. Winick Realty Group: Bob Weber,53, sales consultant. vice president. Executive Moves column is also available online. Key Otomo, 48, was promoted to joined as director of financial retail —maia blume and sarah studley

October 20, 2008 | Crain’s New York Business | 33 Project6 10/15/08 5:39 PM Page 1

40under40_half.ai 10/9/08 11:54:25 AM

KATE SPADE ANDREA JUNG BRIAN WILLIAMS BRIAN CASHMAN FUNKMASTER FLEX WHO’S NEXT?

NOMINATE A CRAIN’S 40 UNDER 40 Do you know someone who is young, driven and making their mark in business in New York? Crain’s is now taking nominations for our annual 40 Under 40 issue where our editors select and profile 40 rising stars from New York across a multitude of industries. Nominate your star today by logging on to www.crainsnewyork.com/nominate.

Nominees must be under the age of 40 on the day the feature will be published in print and online: March 30, 2009. Nominations close November 14.

www.crainsnewyork.com/nominate CNYB 10-20-08 A 35 10/16/2008 6:29 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape Village’s great kettle of fish that the customer can come to an in- Succulent seafood, formed decision. The waitstaff and other savories meet the manager make only discreet and timely flyovers during dinner to see considerate service; if the pleasure factor can be gently boosted. din is off the scale Food choices are easy. Chef Mikey Price steps up to his first iss your conversation partnership post, having previously PRICE IS RIGHT: Chef goodbye when you en- served as top toque at The Mermaid Mikey Price, in his first ter Market Table, the Inn. His menu is market-fresh con- partnership role, riotously successful temporary American, which is par- oversees a staff that union of a casual ticularly strong in (but not limited caters to its customers. KGreenwich Village to) seafood. It’s also buck ennis restaurant and a brief enough to scan neighborhood gro- without suffering Delicate pink Arctic char is sim- overlook chef Mikey’s plump, juicy ropean gelato. They include rum cery, reimagined. brain lock. ply grilled, then presented amid lamb chops. They are perfectly raisin gelato on Grammy’s apple No, it’s not like You may not need leeks, mushrooms and crispy onions grilled and served with an excep- cake, mascarpone gelato and red Shopsin’s, a notori- to order the autumn in a reduced balsamic dressing. tional gouda-potato fondue, zuc- wine syrup on pineapple-strawber- ous Village grocery- corn soup, a deli- Calamari and clams serve as coun- chini and Provençal seasoning.Pan- ry upside-down cake, and hazelnut cum-eatery known cious cold potage terpoints to grilled black sea bass. A roasted chicken is another savory gelato punching up a chocolate- for its eccentricity with diced shrimp in carrot emulsion flanks perfectly call, flavored with olives and pre- hazelnut brownie. Credit for a pol- rather than its food. the tasty broth,since roasted halibut fillet, accompanied sented with haricots verts, Yukon ka dot cheesecake of chocolate and At all. Ever. Market a small cup of it ar- by a root-vegetable risotto. A catch- Gold potatoes and tomato. vanilla goes to dessert doyenne Mai- Table is a year old MARKET rives as an amuse- of-the-day fish is roasted whole and Sides ($7) include a twist or two da Heater and her vintage recipe. It this month, and it TABLE bouche. served with Sicilian greens, golden on standards,such as pear and bacon works. rocks. 54 Carmine St. More appetizers raisins and lemon. A mustard-ac- with brussels sprouts; Mexican- And so does Market Table, Walk past a fully (at Bedford Street) of note ($10 to $15): cented skate wing usually makes an themed grilled sweet corn with chili where food and service exceed ex- stocked meat,cheese (212) 255-2100 first-rate salads fea- appearance in a sauté, with corn and mayo, Parmesan and lime; and Old pectations.Only the killer noise lev- and seafood counter. www.markettablenyc.com turing either heir- bacon-and-shrimp home fries. Bay fries with cocktail sauce. el mutes the overall satisfaction. Pass pine shelves loom tomatoes—on The seafood selections are so Desserts ($8 to $10) reflect home- filled with upscale ½ sale in the market— good that it’s almost possible to spun Americana accented with Eu- COMMENTS? [email protected] sundries and wines. CUISINE Seasonal American or beets, combined Hunker down in a and specialty market with goat cheese and rustic dining room WINES 110 choices, 30 by the crispy shallots in accommodating 48 glass horseradish cream. guests,eight of them Seared diver scal- Times Square - The Ultimate at the small bar. The DRESS No code lops, prepared with surroundings are NOISE LEVEL Very loud butternut squash in fashioned from barn PRICE RANGE $20-$32 hazelnut brown but- New York Location siding and white ter, make an ele- subway tiles, ex- WINE MARKUP 180%-250% gant opener. Chef posed brick, and CREDIT CARDS All major Mikey’s take on ceilings of copper- RESERVATIONS A must gnocchi, tossed with hued pressed tin shredded prosciutto or—in the main din- HOURS Lunch, Mon.-Fri., 11:30 and escarole in lush ing room—cork. a.m.-2:30 p.m.; Brunch, Sat.- Parmesan broth, is Sun., 10 a.m.-2:30 p.m.; Dinner, One entire wall is a Mon.-Wed., 5:30 p.m.-11 p.m., simply irresistible. chalkboard that lists Thurs.-Sat., 5:30 p.m.-midnight, Grilled Portuguese daily specials. Sun., 5-10 p.m. sardines play well The first feature off a Mediterra- to grab your atten- = Outstanding nean garnish of = Excellent tion is a Danny Mey- feta, olives, cucum- er/Drew Nieporent = Very good ber and chickpeas. = Good level of service. The dinner menu When a patron is lists eight or nine torn between a glass of albariño and entrées. At least half will be fish, one of grüner veltliner, a waitress/ prepared in straightforward, un- • Entire 5th floor 13,800 sf bartender pours a taste of each so cluttered cooking styles. • Available December 2008 • Work letter available to qualified tenants • 100% commission paid on signing BEST OF BOB LAPE • Across from the new New York Times Building • 24/7 building access and building security More recently reviewed eateries offer- turning seven days a week. • Convenient to all transportation ing good grub in Greenwich Village: Duane Park ½. FOR LEASING INFORMATION PLEASE CONTACT: Wallsé www.duaneparknyc.com Grant Greenspan 11 344 W. th St. (at Washington 157 Duane St. (between West 212-471-4340 • [email protected] Street), Manhattan. (212) 352-2300. Broadway and Hudson Street), Waltz down to Kurt Gutenbrun- Manhattan. (212) 732-5555.New ner’s auspicious Austrian in the ownership and chef Shawn Knight West Village. Light, modern treat- spotlight zesty New American food THE KAUFMAN ORGANIZATION ment of classics, memorable des- with Southern flair. Civilized decor WWW.KAUFMANORGANIZATION.COM serts and caring service keep tables and attentive service, too.

October 20, 2008 | Crain’s New York Business | 35 CN012373 9/19/08 12:13 PM Page 1

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