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Crain's New York Business CRAINSNEW YORK BUSINESS City Hall shamed into paying interns P. 2 | Changes brewing for beer-makers P. 7 | Sel es spell sales for jewelry designer P. 8 NEW YORK BUSINESS® MARCH 26 - APRIL 1, 2018 | PRICE $3.00 There’s no stopping this year’s class of rising stars, including Emmy- nominated writer Amber Ruf n PAGE 12 VOL. XXXIV, NO. 13 WWW.CRAINSNEWYORK.COM NEWSPAPER P001_CN_20180326.indd 1 3/23/18 7:45 PM MARCH 26 - APRIL 1, 2018 CRAINSNEW YORK BUSINESS ON THE COVER PHOTO: BUCK ENNIS FROM THE NEWSROOM | WILL BREDDERMAN | REPORTER Action news CRAIN’S HAD a hand in city policy making last week, thanks to a tip from a perceptive reader. It all started earlier this month, when the de Blasio administration launched an advertising campaign urging local business owners to pay their interns. at prompted a reader to alert Crain’s columnist Greg David that City Hall doesn’t pay the interns who come to work in its o ces each summer. Experts contend that unpaid internships discriminate against low-income students, who need to earn money to support themselves and their education. e practice also compounds the advantages enjoyed by more a uent students such as Mayor Bill de Blasio’s chil- dren, Chiara and Dante, who interned under their dad during his rst summer in City Hall. David passed the tip along to assistant managing editor Erik Engquist, who then raised the apparent contradiction of words and P. deeds in an email to the mayor’s o ce. A er some initial hemming 12 and hawing, a spokeswoman announced the administration would begin compensating its interns in the near future. IN THIS ISSUE Engquist then asked me to contact the City Council—no less UP FRONT 33 SNAPS proud of its progressive credentials than the mayor—to see whether Photos from the city’s biggest fundraisers and it pays the young people who join its sta for a few months each year. EDITORIAL 3 charity events e press o ce said the council has both paid and unpaid intern- Cuomo should keep his eyes ships, but it didn’t provide an immediate answer about how many on congestion pricing 34 FOR THE RECORD Our tally of the week’s buys, IN CASE YOU MISSED IT of each type it o ers. Meanwhile, a Google search turned up ads for 4 busts and breakthroughs unpaid internships on several council members’ pages. Spending bill’s “stealth” Gateway funding 35 PHOTO FINISH e day our story broke, and spread across local media, I asked A Brooklyn company POLITICS Speaker Corey Johnson about the internship issue shortly before the 5 builds mini mushroom Jerome Avenue rezoning is farms in restaurants council voted to increase its budget by $17 million. He and his sta the latest win for the mayor’s and markets could o er only the excuse of “deference to individual members” and affordable-housing plan their right to make their own sta ng decisions. 6 REAL ESTATE Deal could collapse for a long-awaited Brooklyn park; juvenile hall conversion OK’d 8 SPOTLIGHT CONFERENCE CALLOUT This jewelry maker maximizes MAY 15 sales with Instagram Middle-market breakfast: 9 HEALTH CARE Reaching the tipping point Curbing the opioid epidemic Join Crain’s as we bring together will take more than money the founders of some of New 10 VIEWPOINTS York’s fastest-growing midmarket Actress’s run for governor companies. The panel will discuss is a public service; casting growth, innovation, risks and blame won’t x MTA woes P. EURIPIDES capitalizing on trends to nd success 35 PELEKANOS, and grow in the local economy. CEO, Bareburger FEATURES CORRECTION NEW YORK Some 4,700 CUNY students quali ed for ATHLETIC CLUB 12 40 UNDER 40 the Excelsior Scholarship program next fall. 8:30 to 10:30 a.m. Our annual list of the brightest The name of the program was misstated in [email protected] young stars in local business “Tough course,” published March 19. Vol. XXXIV, No. 13, March 26, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues the weeks of Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing of ces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire BUCK ENNIS contents copyright 2018 by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | MARCH 26, 2018 P002_CN_20180326.indd 2 3/23/18 7:42 PM MARCH 26, 2018 AGENDATo fund the MTA, Cuomo should keep his eye on the roads lbany is a strange land, as Mayor Bill de Blasio once observed. at is especially true in late March, when the state budget is due, and in even-numbered years, when elections are held for every Senate and Assembly seat. But even more ingredi- Aents are in this year’s mix: the conviction of Gov. Andrew Cuomo’s former top aide, Joseph Percoco, on corruption charges; the emergence of three challengers to Cuomo’s re-election; and the narrative of New York City’s RENTS IN Yorkville transportation network grinding to a near halt. are up 4% since Under the circumstances, the governor’s marching orders would seem the Second Avenue subway opened but clear: increase oversight f the processes Percoco abused and pass conges- remain either at or in decline else- tion pricing to ease trac and fund mass transit. And so, with the budget where in the city. deadline approaching, Cuomo has been railing about … the New York City Housing Authority? Apparently there’s never a bad time to draw attention to de Blasio’s problems and away from his own. around the world, including here, to build the $2 billion 7-line extension But Cuomo hasn’t forgotten the subways. He is said to be less focused to the West Side. But a sweeping value-capture mechanism is too compli- on congestion pricing to fund mass-transit projects than on another fund- cated to cra by the March 31 budget deadline. Consider the questions: ing mechanism, which relies on increased property-tax revenues gener- Who decides which projects to pursue? How far from transit hubs should ated by rising real estate values in neigh- value-capture districts extend? How would borhoods that get new stations or major Value capture is a promising concept, the increased property values be measured? improvements. What percentage of those extra taxes should For Cuomo, such “value capture” has the but Cuomo needs to focus on a plan go to the MTA, and for how many years? added upside of diverting tax money from that can pass: congestion pricing Should value be captured from projects al- the mayor to the Metropolitan Transporta- ready completed, such as the Second Avenue tion Authority, which the governor controls. subway? Should cost-saving reform of the Knowing such a naked power grab would not y, Cuomo has proposed notoriously proigate MTA be baked into the policy? ways to give the city input. e mayor calls them g leaves, and while For now, it makes more sense to negotiate value capture on a he has no vote in Albany, expropriating city revenue over his objections project-by-project basis, with buy-in from the city. Cuomo should con- would be dicult—and bad politics. centrate instead on congestion pricing, which is simpler and enjoys sup- Value capture is a logical and promising concept that has been used port from the mayor and the City Council. — THE EDITORS FINE PRINT On April 11 lawyers from the city will sit down in federal court with livery and limo trade groups to discuss their differences on a rule requiring more wheelchair-accessible vehicles. If mediation fails, the business leaders will return April 16 to argue for a preliminary injunction, arguing that the cost of the vehicles will destroy their businesses. Uber and Lyft also oppose the rule but have not joined the court ght. BY GERALD SCHIFMAN ST A TS 25 WORDS OR LESS SURPRISING SERVICE DESPITE THE MTA’S WIDE-RANGING TROUBLES , bus service has improved during the past few years. A At the same time, bus speeds have dropped, likely due to heightened congestion. ND T Unfortunately the Additional number of miles city buses 2015–2018 change in scheduled peak-hour bus trips completed “ H countries most hurt are traveling without a breakdown, a +4.8% 1,832 40.2% increase from 2015 E by the new tariffs C ITY are those that are Additional number of miles that +3.1% Staten Island buses are traveling fairest in their trade 14,923 before breaking down, a 225% rise that leads all boroughs +1.8% policies with the +1.1% Average peak-hour bus speed in United States” the city, a decrease of 0.3 mph -0.3% —Byron Wien, Blackstone Group’s chief 7.6 MPH from three years ago Bronx market strategist, in a March 23 note Brooklyn Queens Manhattan to clients Note: Figures compare Jan. 2015 to Jan. 2018 Staten Island SOURCE: MTA GETTY IMAGES MARCH 26, 2018 | CRAIN’S NEW YORK BUSINESS | 3 P003_CN_20180326.indd 3 3/23/18 7:57 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C.
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