CULINARY SCHOOLS reel in younger students CRAIN’S® PAGE 45 NEW YORK BUSINESS VOL. XXVIII, NO. 49 WWW.CRAINSNEWYORK.COM DECEMBER 3-9, 2012 PRICE: $3.00 Another bankrupt Nuts Brooklyn hospital for The Interfaith Medical Center to file for Nutcracker Chapter 11 this week BY BARBARA BENSON The ballet’s not just a holiday Crushed by long-term debt and ex- mainstay, it’s plum cash that no penses that far outstrip revenue, Inter- faith Medical Center will file for bank- dance company can live without ruptcy this week,making the Brooklyn facility the 11th city hospital or health system since 2005 to go belly up. BY THERESA AGOVINO Behind that grim statistic is a com- mon story:New York City hospitals on Black Friday not only kicks off the start of the holiday shopping the financial ropes can no longer count season, it also marks the beginning of the annual run of The Nut- on a bailout from Albany.For years,the See INTERFAITH on Page 44 crackerat the New York City Ballet.And it turns out that discount- ed cashmere sweaters and sugarplum fairies have much in com- mon: They are both cash cows. THE FUTURE OF NYC Just as retailers count on holiday CRACKIN’ NUT shoppers for a big chunk of their Number of Nutcracker annual sales, the ballet compa- productions per year in Mortgage ny generates 45% of its year- New York City ly revenue, or about $12 2010 14 productions break’s million, from the extrava- ganza. “It is very important to us,” said Katherine loss feared Brown, executive director 2011 17 productions of the New York City Bal- NYC homeowners let. “I just couldn’t imagine deduct $16K, well us not doing it.” The Lincoln Center- 2012 22 productions above U.S. average based dance company’s ver- sion is without question the BY ANNIE KARNI city’s most lavish rendition “America’s favorite tax deduction”— of the classic tale, with that of interest on mortgages up to $1 more than 120 performers million—saves homeowners thou- sashaying across the David sands of dollars a year. Supporters tout H. Koch Theater stage during the fantasy that’s fa- it as a subsidy central to the American Dream since 1913.But as Washington mous for a Christmas tree that grows onstage. lawmakers debate how to narrow the But it’s far from the only one. In fact, it’s one of 22 budget deficit,the deduction has come productions in the city this year, up from 17 last year under scrutiny as a giveaway to the rich and to the real estate industry.Phasing and 14 in 2010,according to the New York City De- out the deduction—as the U.K. did— partment of Cultural Affairs. The ballet’s proven See LOSS on Page 42 istockphoto See NUTCRACKER on Page 6 best HOW AWESOME IS YOUR COMPANY? CRAIN’S places REVEALS THE COOLEST IN 2012. HINT: IT TAKES ELECTRONIC EDITION towork A LITTLE MORE THAN FOOSBALL TO KEEP EMPLOYEES HAPPY PAGES 13-22 NEWSPAPER in NYC STATS AND THE CITY NEW YORK’S SUBWAY system was thriving, with ridership well exceeding forecasts, until Superstorm Sandy hit town, flooding tunnels, jamming switches and frying signals. FYICRAINSNEWYORK.COM $5B Sandy’s toll on the Metropolitan Transportation Authority for repairs and fares lost Trying times for $950M two financial titans Costs the MTA is expected to pay out of pocket for Sandy’s damage o many, Steve Cohen is the very embodi- ment of a hedge-fund manager. He’s a $419M Tmultibillionaire, an art collector who owns Sum recently spent renovating the South Ferry subway works by Jasper Johns, Francis Bacon and Claude station, which was subsequently badly damaged by Sandy Monet, and he’s famously reclusive. A rare exception came in 2010, when he spoke to Vanity Fair for an article but made it clear he had low 4% newsbloomberg Rise in third-quarter subway ridership, versus a year earlier, expectations. “This story will be the last anyone for a total of 414 million reads about me for a while, I think. Because [reporters] will get sick of me,” he said at the time. No such luck, Mr. Cohen. Last week, an associate of his firm, SAC Capital, was charged by 342.7M the Justice Department with insider trading. Hours later, SAC announced it might be sued by Miles the 6,000-car subway fleet traveled in 2011 the Securities and Exchange Commission. While other folks affiliated with SAC have faced Sources: Metropolitan Transportation Authority; NYC Independent Budget Office similar charges, this appears to be the first instance to draw in Mr. Cohen. He is identified as istockphoto “Portfolio Manager A”in the case against Mathew Martoma, the employee whose alleged conduct allowed an SAC affiliate to reap $276 million in undeserved gains. Mr. Martoma is fighting the INFLATION TAMED charges, and Mr. Cohen has insisted he acted “appropriately” at all times. Price hikes in the metro area, as measured by the consumer price index, have been nearly halved in the most recent 12-month period. There was news of another financial titan in a tight spot last week. Knight Capital Group, the Jersey City-based trading firm that suffered a devastating $440 million loss this past summer +4.3% CPI, change y-o-y when its computers ran amok, appears close to being acquired for as much as $1.8 billion by either Chicago rival Getco or New York’s Virtu Financial. Getco is reportedly offering a higher +3.3% +3.1% price, but Virtu apparently would let Knight CEO Thomas Joyce keep his job. —aaron elstein +1.7% +1.5% CITY CURBS PEDICABS. Stung by sto- last year’s 30% slashing. … CNN ries about short rides on pedicabs SWITCHES TO THE BOLD CHANNEL. Af- HOORAY! 0.0% costing huge sums, the City Council ter years of slipping ratings, CNN NYPD OFFICER Larry DePrimo gives has passed a law forcing drivers to Worldwide is bringing in a new top boots and socks to a homeless man on a Oct. 2007 Oct. 2008 Oct. 2009 Oct. 2010 Oct. 2011 Oct. 2012 charge only by the minute starting in dog, one known for taking risks. Jeff Manhattan street and becomes a social- Source: Bureau of Labor Statistics media sensation. April.What’s more,a fee card must be Zucker, former CEO of NBCUni- posted on the side of the rickshaws versal, will take the helm of Time ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY and a copy handed to passengers.Vis- Warner’s TV news division. He will ible timers will also be de rigueur. fill the shoes of Jim Walton,who held Currently, pedicab drivers can charge the post for nearly a decade.At NBC, THIS WEEK IN CRAIN’S whatever they please. Some charge Mr.Zucker produced the Today show per block; others tack on fees of as and came up with “supersizing” pop- much as $100 per passenger. The ular sitcoms like Friends so they ran IN THE BOROUGHS-------------------------- 3 price per minute is ex- longer than 30 min- OY VEY! IN THE MARKETS----------------------------------4 pected to be $2 to $4. utes to compete with ‘Hurricane TOBACCO-TAX … BONANZA AT THE hourlong rivals. … revenue used to THE INSIDER -----------------------------------------------6 BAR.Apparently San- CULTURE TO TOWER IN fund state recovery is operations is BUSINESS PEOPLE ---------------------------8 ta has taken a shine to BROOKLYN. Down- expected to fall lawyers this year. not a partisan town Brooklyn’s long- OPINION --------------------------------------------------------10 $30M short of Blue-chip law firm issue’ awaited cultural dis- forecasts next year, GREG DAVID--------------------------------------------11 Cravath Swaine & trict is taking shape.A but for a good reason: Smokers’ Moore said it will —Mayor Michael much-delayed HURRY! REPORT: BEST Bloomberg, at a news ranks are thinning. bump bonuses up by conference in Washington 500,000-square-foot 40 Under 40 PLACES TO WORK---------------------13 no less than 60% this tower, which will year over last, in a boast apartments, re- The Fort Greene area is already home Nominations CLASSIFIEDS -----------------------------------------38 move that bodes well for attorneys at tail space and plenty of space for arts to 40 arts groups. … FIRST OF MANY. end Dec. 7 FOR THE RECORD---------------------------40 big firms across the city.For the most- groups, is back on track. The project Fifty-five years after the Dodgers last REAL ESTATE DEALS-------------------41 senior associates at Cravath, the news will join a new 32-story Enrique played the Giants at the Polo at midnight will translate to a tidy $60,000. Even Norten-designed mixed-use tower, Grounds, the first major-league game SMALL BUSINESS--------------------------41 mere rookies will get $10,000. Over the future home of the Brooklyn pitting a Brooklyn team against a Go to NEW YORK, NEW YORK ----------45 on Wall Street, however, Scrooge Academy of Music’s rehearsal center Manhattan rival has been played. In crainsnewyork. looks like he’s still in control. Citi- and the nonprofit 651 Arts.To create the basketball incarnation of the inter- SOURCE LUNCH--------------------------------46 com/40Under40 group is trimming bonuses at its trad- a trifecta in the district, the city is borough rivalry,Brooklyn’s Nets best- OUT AND ABOUT ------------------------------47 ing and investment banking divisions looking for someone to develop a sim- ed the other borough’s Knicks, 96-89, by as much as 10%. That’s on top of ilar 100,000-square-foot building. in overtime. —amanda fung CORRECTION Peter Shaerf is managing director at AMA Capital Partners and a former director at General Maritime.