20120716-NEWS--0001-NAT-CCI-CN_-- 7/13/2012 7:12 PM Page 1

IAN SCHRAGER HAS SOME NEW IDEAS HE’D LIKE TO SHARE PAGE 3 CRAIN’S® NEW YORK BUSINESS

VOL. XXVIII, NO. 29 WWW.CRAINSNEWYORK.COM JULY 16-22, 2012 PRICE: $3.00

WEISS WORK—AND THEY EDC will CAN GET IT: Flintlock Construction’s Andrew Weiss (crouching, left) and restructure brother Stephen Weiss (right) have nine 20-story- plus building projects in Manhattan. to lobby legally

Despite probe, city concludes projects don’t get built without help from friends

BY DANIEL MASSEY

After its illegal lobbying led to a settle- ment earlier this month with the state attorney general, the city’s Economic Development Corp. is not giving up trying to influence legislative decisions surrounding land use.Quite the oppo- site: It is restructuring so that its lob- bying activities will no longer be against the law. Attorney General Eric Schneider- man found that EDC illegally lobbied the City Council to win approval of its Willets Point and Coney Island redevel- opment projects.It also played a behind- the-scenes role in the illegal lobbying of two nonprofit organizations. See EDC on Page 22 Fat lady? She’ll have to wait buck ennis The Outsiders New York City Opera How the Weiss brothers built NY’s dominant nonunion contractor stages a dramatic financial turnaround into the earth on West 42nd Street, digging a er might seem to be no big deal.But all three ho- BY DANIEL MASSEY hole for a 37-story . Just to the south, on tels are being built by Flintlock Construction BY MIRIAM KREININ SOUCCAR West 30th Street, workers unloaded steel rods Services—and all three are being built using Last month, a boom truck lifted hundreds of that will reinforce the concrete structure of what nonunion labor. A decade ago, it would have Just six months ago,the New York City metal studs toward the top of a 27-story hotel will be a 22-story . been virtually unheard of for a nonunion firm to Opera came close to a tragic end. Now under construction at Lexington Avenue and Construction of three 20-plus-story build- land even one job in Manhattan of 20 stories or the 68-year-old opera company is East 45th Street.Blocks away,a backhoe clawed ings in the city within a few blocks of each oth- See FLINTLOCK on Page 23 triumphing with its new act. This spring, in the first season after its departure from Lincoln Center, it THE LIST TOP MANAGEMENT presented 16 performances of four op- CONSULTANTS P. 17 eras at a number of venues.Every show sold out. And despite months of nega- REPORT SMALL BUSINESS tive press and contentious labor nego- tiations, the nonprofit met its A way to get big-firm employee benefits P. 15 fundraising goal, bringing in $11.5 NEWSPAPER See CITY OPERA on Page 22 20120716-NEWS--0002-NAT-CCI-CN_-- 7/13/2012 7:13 PM Page 1

STATS AND THE CITY

AFTER PEAKING this spring at $3.97 a gallon, summertime gas prices in NYC are much more attractive this year.

+13.3% Ⅲ FYICRAINSNEWYORK.COM % change, y-o-y

+7.6% +5.3% Take it to the bank: More LIBOR pains coming -6.1% -6.5% -6.9% ore than a week after Barclays was 2/3/12 3/12/12 4/9/12 5/14/12 6/11/12 7/9/12 Source: Energy Information Administration outed for falsely reporting its own borrowing costs, which in turn are used RUNNING NUMBERS M to help set the global benchmark known as the London Interbank Offered Rate, none of the other 6.2% 34 54% 52,003 15 LIBOR-reporting banks have been called out

ANGEL NY’S RANK NYC’S PORTION MAJOR NYC istockphoto INVESTMENTS in in an annual “Top of the 21K texting- crimes committed for similar financial fouls. But make no mistake: NYS in the past States for while-driving this year, as of As investigators pore over banks’ books, emails, etc., the potential stakes are soaring. year, vs. 18.8% in Business” report, tickets issued in July 1, up 4.1% California down from 26th NYS in past year over a year ago A flood of lawsuits against the LIBOR banks lodged by everyone from big pension funds to Source: in 2011 Source: Cuomo Source: NYPD the city of Baltimore allege that the banks’ reporting peccadilloes over several years artificially Halo Report administration Source: CNBC inflated plaintiffs’ borrowing costs by millions of dollars—each. Barclays, meanwhile, has agreed BEST. NEWS. EVER. More print magazines survived the first half of 2012 to fork over $453 million to U.S. and U.K. authorities, but the bank’s financial hit will likely than in the same period a year earlier. climb far higher, driven if nothing else by the high legal costs of defending itself. Ⅲ Launchings Ⅲ Closings It’s not just the banks’ reputations and balance sheets that are on the line now.The Senate

111 114 Banking Committee said it will call America’s top central banker, Federal Reserve Chairman Ben Bernanke, to testify, as well as Treasury Secretary Timothy Geithner, who headed the New 66 York Fed at the time of the financial crisis. 45 Reports surfacing on Friday, however, suggested that in 2008, Mr. Geithner & Co. warned British authorities of problems with LIBOR. Given that the practice continued for years, some 1H 2011 1H 2012 might suggest he should have tried harder.

ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY FARE HIKE. The city’s Taxi & Limou- Inc. and one of its affiliates is going sine Commission voted to boost cab head-to-head with Martha Stewart HOORAY! fares by 17%,likely beginning in Sep- Living Omnimedia Inc. in the court- ALL ABOARD THIS WEEK IN CRAIN’S tember. While the base fare will stay room. Under a 2006 agreement, AMTRAK. at $2.50, the cost of each click of the Macy’s was given an exclusive right to Amtrak meter will rise by a dime, to 50 cents. manufacture and sell Martha announced a IN THE BOROUGHS------3 $151 billion It’s been six years since the last rate in- Stewart-branded goods. Macy’s law- plan that IN THE MARKETS------4 crease.Six cents of the hike will go,for suit alleges that the DIY queen’s com- could make the first time, toward giving drivers pany breached that agreement in Philadelphia THE INSIDER ------6 just 37 health care benefits. … BLOOMIE’S 2011 by turning around and doing minutes down BUSINESS PEOPLE ------8 LEGEND, R.I.P. Marvin Traub, the re- something totally tasteless: entering the rails and tailing miracle worker who turned a into a similar agreement with J.C. Boston, 94 FROM AROUND THE CITY----11 minutes. newsbloomberg dull old department store called Penney Co. Inc. … AMERICAN AIR- OPINION ------12 Bloomingdale’s into an international LINES TAXIS TOWARD A MERGER. The trendsetter, died at home in Manhat- bankrupt parent company of Ameri- OY VEY! GREG DAVID------13 tan.He leaves behind a 45-unit chain, can Airlines, AMR Corp., said the CYCLISTS IN CENTRAL PARK REAL ESTATE DEALS------14 with an East 59th airline may be merged are under attack from REPORT: SMALL Street flagship that or restructured. AMR an unknown still draws top de- person or will reach out to “inter- persons BUSINESS ------‘We’re not 15 signers as well as ested parties” soon, tossing plenty of celebrity CEO Tom Horton tacks onto FOR THE RECORD------19 making light shoppers. … RAY said. At a meeting with Park Drive, CLASSIFIEDS ------causing more NEW YORK, NEW YORK 20 KELLY FIRES BACK. of this error, creditors, the carrier’s than a dozen NYPD Commis- executives weighed a flat tires. Real estate guru Robert SOURCE LUNCH------26 but we do

White collects replicas of sioner Raymond marriage with US Air- istockphoto trophy properties—lots and OUT AND ABOUT ------27 Kelly further ratch- think it’s an ways Group Inc., Jet- lots of replicas. P. 25 SNAPS------27 eted up tensions Blue Airways Corp. meanwhile, still came to a tidy $5 bil- with community isolated event’ and others. … JPMOR- lion, down 9% from a year earlier. … CORRECTIONS FOR THE JUNE 25 CRAIN’S FAST 50 LIST leaders by loudly —JPMorgan Chase GAN’S $5.8B LOSS. YA DIGG? New York technology- CEO Jamie Dimon, Stonyfield Farm is a client of LeadDog Marketing. The company’s name was spelled noting that many JPMorgan Chase & development shop is snap- incorrectly. pols have been quick on his firm’s $5.8 billion Co. said its loss related ping up Silicon Valley social-media trading loss Jared Haines is the president and chief executive of Mercury Solar Systems. That fact to criticize stop- to a trading blunder and news-sharing site Digg Inc. for was misstated. and-frisk but seem was $5.8 billion, more $500,000, a deeply discounted price. Stefanie Manning is the only associate publisher at O, The Oprah Magazine. That fact slow to say anything at all about a re- than double its original estimate of $2 Digg was once valued at $164 million. was misstated. cent wave of violence—including the billion. “We’re not making light of Betaworks intends to combine Digg TravelClick last year purchased EZYield, which manages and updates hotel rates listed by online travel agencies. The company’s focus was misstated. shooting of 3-year-old Isiah Gonza- this error, but we do think it’s an iso- with a digital media startup that Beta- Usablenet’s technology can deliver content to smartphones, tablets and in-store kiosks. lez—in their districts. … FLIP A lated event,”CEO Jamie Dimon said. works launched last year. That fact was misstated. PENNEY: MACY’S VS. MARTHA. Macy’s JPM’s earnings in the second quarter, —lauren elkies David Droga is co-founder and creative chairman at Droga 5. The company collaborates with clients through a process known as Vision Lab. Droga5’s chief executive and co- founder, Andrew Essex, said, “The old model of command and control, hitting the client over the head with a campaign is over.” These facts were misstated. STORIES TO WATCH THIS WEEK vol. xxviii, no. 29, july 16, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at July 16: CB July 17: Consumer July 18: Bank of July 19: New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s Insights’ second- Price Index for the America unveils its Department of New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one quarter venture New York-New second-quarter Labor’s New York year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. capital funding Jersey area for June earnings. City jobs data are report is published. 2012 is released. published.

2 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0003-NAT-CCI-CN_-- 7/13/2012 6:49 PM Page 1

IN THE BOROUGHS QUEENS LI City rises to top for bakers Upper-crust outfits mix it up in low-cost, close-in neighborhood

BY AMANDA FUNG

Decades after the hulking Silvercup Bakery was transformed into a ma- jor film and television studio and the famed Fink Bakery was vacated due to bankruptcy, Long Island City is back in business as New York City’s breadbasket, a place where the air is heavy with yeasty aromas. This summer, Amy’s Bread, the outfit that elevated humble baking to a public art form with its glass- walled kitchen in Manhattan’s trendy Chelsea Market, will join a dozen bakers that have flocked to the Queens neighborhood in the past decade. Amy’s is shifting its STATS CHECKING IN: Ian main produc- Schrager wants to tion facility to regain his status as the a new 12 largest private hotelier 33,000- ESTIMATED in New York City. “I’m number of still ambitious,” he said. square-foot commercial space on 34th bakers operating Street in in LIC Long Island City, one block south TONS22 of bread from its long- baked daily at time Chelsea Tom Cat, the Market area’s largest neighbor baker Eleni’s New

buck ennis York, which set up its PASTRY30 CHEFS cookie-mak- and cake-makers ing factory in employed by Lady LIC seven M Confections Ian Schrager goes Public years ago. All istock come for the with Durst Fetner Residential. Thursday, probably would have of-a-kind appeal. same reasons: cheaper rents; open, Celeb hotelier ‘in “At one time, I was the largest gotten heartburn if someone had That was before Bill Marriott one-story spaces; and proximity via contract’ to build private hotelier in the city,” Mr. told him earlier in his career that made him a lucrative offer in 2007 the Queensboro Bridge and Mid- Schrager said last week in his roomy he’d be the architect of two hotel he couldn’t refuse: to design Edi- town Tunnel to clients and retail two NYC Greenwich Village office. “I chains. The godfather of the bou- tion, ’s first shops in Manhattan. wouldn’t mind achieving that status tique hotel was disdainful of any- boutique-hotel brand. “We are excited to be in Long Is- under new brand again. I’m still ambitious.” thing that smacked of cookie- Marriott could have tapped any- land City,”said Amy Scherber,own- Though Mr. Schrager declined one for the job but chose Mr. er of Amy’s Bread, who will move BY LISA FICKENSCHER to divulge many details, he con- Schrager because he was a pioneer 120 employees to the new facility. firmed that the hotels will be new He’s eyeing in that category, whose ideas have Being just across the East River Ian Schrager checked out of the buildings. He added that other been copied by everyone from Star- from midtown indeed has plenty of New York hotel scene amid the fi- properties could land in Williams- Williamsburg wood Hotels & Resorts’ advantages. Tom Cat Bakery Inc. nancial crisis in 2010 when he di- burg and Coney Island—neigh- to, well, Marriott. Edition is meant proved that 25 years ago when it vested his stake in the Gramercy borhoods the East Flatbush, and Coney to be an answer to W. became the first of the new wave of Park Hotel. Now he’s staging a Brooklyn, native has become en- Mr. Schrager has developed bespoke bakers to fire up their ovens comeback. amored with in recent weeks. Island, too about 15 one-off hotels during his in LIC, initially in a tiny 1,300- The legendary hotelier said he is The latest activity comes on top career—none of which he still con- square-foot warehouse. Today,Tom “in contract” to build two of a deal he inked with Marriott In- trols today. In the case of the Cat is the neighborhood’s top cat, Manhattan-based Public hotels,the ternational to help design its Edi- Gramercy Park Hotel, that proper- boasting $30 million in revenue and value-oriented brand he launched in tion hotel brand. Construction to ty took a hit during the downturn 250 employees working in a 40,000- Chicago in October 2011.The deals convert the landmark Clock Tower cutter corporate, touting instead when it defaulted on a loan. square-foot factory on 10th Street replace a canceled project an- building at 5 Madison Ave. begins the individuality of his properties “Getting involved with Mar- near the Queensboro Bridge. It’s nounced last year to open a Public at later this year. such as Morgans, the Paramount riott gives Ian institutional credi- just down the street from Lady M 855 Sixth Ave. in Herald Square Mr. Schrager, who turns 66 on and the Royalton with their one- See SCHRAGER on Page 23 See LI CITY on Page 11

July 16, 2012 | Crain’s New York Business | 3 20120716-NEWS--0004-NAT-CCI-CN_-- 7/13/2012 7:14 PM Page 1 IN THE Warnaco in the deep end MARKETS by Lisa Fickenscher wear and team apparel. co to announce last week that it will Counts on Olympics But swimwear is just a drop in likely restructure its European- for boost, but jazzy the bucket for $2.5 billion-rev- based business. The company re- CHEESE WHIZ: CEO enue Warnaco,and the cloth- cently lost the license for its “ck Daniel Dowe borrows page swimwear unlikely ier will need more than Calvin Klein” brand of appar- from book to to reverse sales dive latex swim caps to re- el and accessories in Europe fund big expansion. verse plummeting after failing to meet mini- sales. The company, mum sales requirements BY ADRIANNE PASQUARELLI which also sells put forth by Calvin Calvin Klein OLYMPIC TEAM: Klein Inc.,the company When Michael Phelps dives into the jeans and under- Warnaco CEO that licenses the brand. pool at next week’s Olympic Games, wear, reported Helen McCluskey Consumers have more will be riding on his swimming that overall rev- and Michael abandoned Calvin than a gold medal. Warnaco Group enue fell 7% in Phelps. Klein products, which Inc., the Manhattan-based licensee 12 months, to analysts say have be- of Speedo USA, could use a push $615.5 million come less trendy and from the brand’s new Fastskin3 suit, for the quarter less well made as War- cap and goggles, which will be worn ended March 31. naco has grappled with by athletes including Mr. Phelps and Earnings were last year’s dramatic rise in Ryan Lochte. down 18.4%, to cotton costs. Meanwhile, “It’s an Olympic year, and we’re $35.9 million, for competitors such as Tom- looking forward to leveraging that the same period. my Hilfiger, which is excitement,” said Warnaco Chief The problem is owned by Phillips-Van Executive Helen McCluskey dur- even worse in fi- Heusen Corp., and buck ennis ing a recent earnings conference nancially fraught Guess are grabbing mar- call. She noted that the company Europe, where rev- ket share. Artisanal penny-stock firm has wants to make a splash with the enue dropped 13% “Warnaco had den- “broader swim community” by of- for the period, im and underwear— bold dreams of Krafty future fering a new line of Speedo deck- prompting Warna- newscom See WARNACO on Page 24 rtisanal Brands Inc. may be a penny stock, trading at about 15 cents a share, but its chief executive has Agrand ambitions for the premium cheese-maker. He plans to turn it into a blue-chip company one day—in the mold of his corporate idol, Kraft Foods Inc. To make that leap, the company founded nine years ago by celebrity chef Terrance Brennan is ramping up, starting with a capital funding effort launched last month designed to raise $8 million. “We want to be known as the specialty cheese brand, similar to what Kraft did for mainstream cheese,” said

Daniel Dowe, Artisanal’s CEO. In lion by selling shares directly to the 2007, he bought the company with a public.It was recently signed into law group of investors from Mr.Brennan by President Barack Obama. for $4 million using a shell company, “The legislation planted a seed in and then took the company public. my head,” said Mr. Dowe, who reg- Today,Artisanal sells 70 cheeses istered with the Securities and from 40 providers—ranging from Exchange Commission in April and re- Humboldt Fog, made in California ceived approval just two months lat- with goat’s milk,to Brillat-Savarin, er. Previously, Artisanal could sell a triple-crème brie-style cheese only to institutional investors or from France. Its customers range very-high-net-worth individuals. from food markets to hotels and Now Mr. Dowe is preparing to restaurants. Over the next four sell stock—and a bit more. For months, Mr. Dowe plans to expand $500, he will offer buyers member- his menu of offerings to 300 types ship in Artisanal’s new Owners’ of cheese from 175 providers, the Club, which will entitle them to vast majority of which will be from 1,000 Artisanal shares plus perks, American producers, making Arti- including quarterly deliveries of sanal the largest distributor of rare cheeses. American specialty cheeses. In a further boost for the com- Funding the planned $8 million pany, he has just inked deals with expansion is the hard part. The firm two big corporate clients. Starting has yet to turn an annual profit, and in September, Hotels and its revenue in the fiscal year ended Resorts will serve Artisanal’s Amer- May 31 was a mere $4.5 million.Not ican cheeses in up to 100 of its surprisingly, bank lenders and insti- properties as part of its effort to tutional investors have both given source more of its food locally. thumbs-down on requests for cash. Meanwhile, starting next month In response, Mr. Dowe said he Food Emporium and A&P will devote a has drawn inspiration from the section in the cheese departments Crowdfund Act, which allows small of up to 50 stores to Artisanal- businesses to raise as much as $1 mil- branded products. Ⅲ +1.7% AFTER SIX STRAIGHT DAYS OF LOSSES, the Bloomberg/ Crain’s index of New York-area stocks actually posted a

istockphoto solid gain Friday, powered by rebounding bank shares.

4 | Crain’s New York Business | July 16, 2012

20120716-NEWS--0006-NAT-CCI-CN_-- 7/13/2012 6:49 PM Page 1 THE For Wall Street’s sheriff, all’s INSIDER kinda quiet on the LIBOR front by Andrew J. Hawkins and Shane Dixon Kavanaugh

leged rate-rigging scheme. The He could sue the big California Public Employees’ Re- banks to kingdom tirement System—the country’s largest —is weighing come. What’s an AG legal action, as are Massachusetts with ambition to do? and Nassau County. Because LIBOR can affect interest rates on everything from home mortgages to BY SHANE DIXON KAVANAUGH credit-card debt, a crush of class ac- tions could follow. New York Attorney General Eric “This could well turn into the Schneiderman rode into office vow- largest consumer fraud ever seen,” ing to be the new sheriff of Wall The rate-rigging said Robert Shapiro, co-founder of Street. But as governments on both scandal is an Sonecon, an economic consulting buck ennis sides of the Atlantic investigate “invitation” for Eric firm, and an adviser to the Interna- Schneiderman to more than a dozen banks for manip- launch a “crusade.” tional Monetary Fund. State’s next session will be special

ulating a key interest rate tied to buck ennis Banks that are the lifeblood of hundreds of trillions of dollars in in- New York’s economy and hold con- t’s not on the calendar, but Albany’s postelection special session vestments,the state’s top cop has re- “To the extent that he wants to siderable political sway could be on will be crammed with controversial issues. Here’s what to expect mained unusually silent. fathom a way to look into LIBOR the hook for hundreds of billions of when Gov. Andrew Cuomo calls legislators back after Nov. 6: “This is an invitation for anoth- and go after banks, he can easily do dollars, according to analysts, leav-  Campaign finance reform. Mr. Cuomo raised eyebrows last week er Eliot Spitzer-like crusade,” said so,” said a source who worked in the ing some fearful that such losses when he suggested that public financing of campaigns could be Richard Brodsky, a former Democ- AG’s Division of Economic Justice could hinder growth and terrorize a Itaken up during a special session. Senate Republicans oppose such a use ratic assemblyman and onetime Investor Protection Bureau under broad range of markets. of tax dollars, but Mr. Cuomo plans to sell the idea across the state. candidate for attorney general. Andrew Cuomo. “I hope any state investigation by  Minimum wage. Assembly Speaker Sheldon Silver is expected to push Endowed with powers under the the AG weighs the costs to New hard for a $1.25 increase to the state’s $7.25 minimum wage. state’s Martin Act to fight financial Weighing costs York City against his political inter-  Tax break for condo and co-op owners. An extension of this 15-year-old fraud, Mr. Schneiderman’s office But Mr. Schneiderman, whose ests,” said David Malpass, president break for New York City property owners expired July 1. Lawmakers could elevate the intensity of inves- office declined to comment, would of Encima Global, an economic have a handshake deal to extend the $462 million measure retroactively. tigations into banks’ London Inter- have to justify his involvement. consulting firm, and a former  Legislative pay raises. A recent report suggested the governor would bank Offered Rate submissions with Lawsuits against the 16 banks be- deputy assistant Treasury secretary give legislators their first raise in 14 years if they forsake much-abused a flurry of subpoenas and civil or hind LIBOR, which institutions under Ronald Reagan. per diem expenses. But one Albany insider noted that Mr. Cuomo could criminal charges, legal experts said. use to determine borrowing costs, Prosecutions could be immense- get much more in exchange for a pay hike, like campaign finance reform. Yet entering into the international are already piling up. The city of ly difficult. The $453 million Bar-  Business tax breaks. Senate Republicans need Assembly Democrats spotlight on the LIBOR scandal Baltimore has sued, along with clays settlement announced last to act on a bill that would provide $130 million in tax incentives for comes with considerable risk—both dozens of municipalities, mutual month hinged on damning emails businesses that create jobs. Mr. Silver would rather deal with it next year. to the banks and their customers as funds and pension funds, saying allegedly showing bank employees  Marijuana. One insider said the governor is still keen on well as to Mr. Schneiderman. they suffered losses under the al- See LIBOR on Page 24 decriminalizing possession of small amounts of weed, though the Senate GOP remains opposed.  Bath salts. Republicans could trade marijuana decriminalization for harsher punishments of sellers of synthetic pot and so-called bath salts that are increasingly being used for getting high.

station, emailed supporters to Con Ed cash claim credit for the city’s agreeing missed Quinn not to start construction without a U.S. Army Corps of Engineers Consolidated Edison’s political permit. action committee has contributed But the city said the promise $26,420 to city candidates since covers only construction on the 2008, including four mayoral water. “The courts have twice contenders: former Comptroller denied [opponents’] request to Bill Thompson, Public Advocate Bill halt the project, and this de Blasio, Comptroller John Liu and stipulation is an effective Manhattan Borough President acknowledgment that their claims Scott Stringer. But City Council have no merit,” said Carrie Speaker Chris Quinn Noteboom, the city’s lead attorney got nothing. in the case. Among the Mr. Kellner threatened to contenders, she return to court if any work begins emerged last week without the Army Corps permit. as the harshest critic of Con Ed’s

lockout of 8,500 newscom East Harlem workers, releasing Christine Quinn heavyweights a scathing message to CEO Kevin Burke. A Quinn Assemblyman Keith Wright said the spokesman said, “Speaker Quinn state Senate primary fight sent the letter solely on a public- between Sen. Adriano Espaillat and safety basis.” Assemblyman Guillermo Linares “will be the Thrilla in Manila. You have two giants in the Dominican Clash on trash community going at each other. Assemblyman Micah Kellner, who It’s Ali-Foreman.” is raising money from his An Espaillat backer retorted: opposition to a proposed East “This will be more like Manny 91st Street marine waste-transfer Pacquiao versus Mickey Mouse.” Ⅲ

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6 | Crain’s New York Business | July 16, 2012 CN015229.qxp 6/15/2012 5:16 PM Page 1

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BUSINESS of employees12% are offered summer Fridays, but 41% of them are too busy to take advantage PEOPLE Source: Ultimat Vodka

EXECUTIVE MOVES ICE ON THE PRIZE: Brian Smith’s Ample Katten Muchin Hills Creamery Rosenman: Craig features exotic Barbarosh, 44, has flavors. joined the law firm as co-head of financial institutions, board member and partner. He was previously a partner at Pillsbury Winthrop Shaw Pittman. Shilo Inc.: Robert Berman, 50, joined the film production company as head of production, East. He was previously president and executive producer at WeaselWorks Ltd. Modern Luxury: Cristina Greeven Cuomo, 42, joined the lifestyle magazine publisher as editor in chief of Manhattan. She was previously editor in chief of Plum Hamptons and content chief at Plum Network. James Aguiar, 44, joined as national fashion director. He was previously visual director at Bergdorf Goodman. Ivanka Trump Fine Jewelry: Geoffrey Hess, 43, joined the luxury-goods brand as president. He was previously managing director at Giuliani Partners. American Society of Mechanical Engineers: Marc Goldsmith, 64, was elected president of the organization. He was previously a member of its board of governors. Ketchum: Raymond Kotcher, 60, was appointed chairman of the public relations and marketing firm. He was

buck ennis previously chief executive. Rob Flaherty, 52, was promoted to GOTHAM GIGS chief executive. He was previously senior partner and president. DeVries Public Relations: Stephanie Smirnov, 45, was promoted to chief executive. She was previously president. James Allman, 61, was named Scooping up a new business chairman. He was previously chief executive. International Culinary Center: Howie Lindenbaum, 46, joined as chief Ice-cream maven leaves former career out in the cold financial officer. He was previously executive vice president and chief As a child, Brian Smith dreamed of writing at Penn State. ¶ The biggest challenge for the financial officer at Royce Too. Antenna Software: Bill Smith, 45, Ranked movies, producing audio dramas and owning an mad scientist and his wife, Jackie Cuscuna, the joined the technology company as ice-cream parlor. By the time he turned 40, he shop’s co-owner, has been keeping up with chief financial officer. He was No. 1 by previously chief financial officer at had done two out of the three for the Syfy cable demand.The duo invested a couple hundred Kayak Software Corp. Zagat— network. ¶ “I figured it was time to try out that thousand dollars in the store and were so overrun Swift Exchange: Rob Jacobson, 45, third life goal of my 7-year-old self,” said Mr. by customers in the first four days of business that joined the global commerce firm as just a year chief creative officer. He was Smith, who opened Ample Hills Creamery in they closed for nine days to regroup. Since then, previously senior vice president of after May 2011 in Prospect Heights, Brooklyn. “I their staff has doubled to 12 employees, and Mr. marketing at Discovery Health. Meredith Xcelerated knew that I’d be able to keep coming up with Smith is on the hunt for a space to launch a opening Marketing: Georgine different flavors the way that I could come up combined retail and factory location that could Anton, 48, joined the global, digital with monster movies.” ¶ His recipes are certainly feature tours and ice-cream-making classes as and customer unusual. Mexican Hot Chocolate, a mix of dark well as a wholesale operation. ¶ He attributes part relationships chocolate, Saigon cinnamon and ground chili of the shop’s success to its community marketing agency as senior vice flakes, is just one of the 24 flavors that the 42- atmosphere.There is turf out front with tables president and chief year-old Boca Raton, Fla., native pasteurizes and and chairs, and a kids’ play area inside. His own client officer. She was previously senior vice president at Atlantic churns in-house.The results have been good children, 6 and 3, can be seen asking employees Media Co. enough to earn the shop Zagat’s No. 1 ice-cream for drawing paper. “I set out to create a space that SapientNitro: Alan Schulman, 52, ranking. He learned the craft by experimenting at was magical,” he said. “I think we’ve done that.” joined the marketing and technology services firm as regional chief creative home and taking a course in ice-cream chemistry —ken m. christensen See EXECUTIVE MOVES on Page 10

8 | Crain’s New York Business | July 16, 2012 CN015257.qxp 7/10/2012 11:10 AM Page 1

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BUSINESS PEOPLE

vice president and associate broker. He project manager at HDR | Daniel EXECUTIVE MOVES was previously vice president and Frankfurt. CORPORATE LADDER associate broker at Sotheby’s Insight Strategy Group: Stephen Lenzen, Continued from Page 8 International Realty. 31, joined the research strategy firm as officer, New York. He was previously Enterprise Community vice president, quantitative strategy, a MOVING UP THE LINE AT AOL chief executive and chief creative officer Partners Inc.: Abby Jo newly created position. He was at U.DIG, the Digital Innovations Sigal, 43, has been previously vice president, advanced AOL INC. has taken one step closer to its planned reorganization with its Group. promoted to senior analytics, for BAV Consulting. promotion last month of Chief Financial Officer Artie Minson Jr. to chief The McGraw-Hill Cos.: Charles Haldeman vice president of Univision Communications Inc.: Rosemary operating officer. He will oversee the company’s plan to form three Jr., 63, joined the content provider’s innovation at the Mercedes, 34, was promoted to vice operating units and will continue to serve as chief financial officer until a board of directors. He was previously development-capital president of corporate communications replacement is found. chief executive of Freddie Mac. provider. She was at the media company. She was Blip: Jason Rapp, 42, joined the video previously vice previously director of corporate The goal of these new units—AOL Membership Group, Content Brands network’s board of directors. He will president and New York market leader. communications. Group and the Advertising.com Group—is to help drive traffic and revenue, said continue to serve as president and Shola Olatoye, 37, Jones Walker Waechter Poitevent Carrère an AOL spokeswoman. “It’s about pushing improvements at AOL,” she said. member of the board of directors at was promoted to vice president and & Denègre: Rick Lazio, 54, joined the law Mr. Minson, 41, returned to AOL in 2009 as chief financial officer after Mahalo Inc. New York market leader. She was firm as a partner. He was previously CEO spending time as executive vice president The New York Academy of Medicine: Gary previously director of relationship of the Financial Services Forum. and deputy chief financial officer at D. Jaworski, 58, joined as vice president management and deputy director. DLA Piper: David Luce, 39, joined the law of communications and chief Gladstein Neandross and Associates: Rich firm as a partner. He was previously a Time Warner Cable. Earlier, he had development officer. He was previously Kassel, 52, joined the environmental director in the fixed-income division of headed AOL’s corporate finance executive director at the American consulting firm as senior vice president. Credit Suisse. and development efforts. AOL did Hospital of Paris Foundation. He was previously senior attorney at Foley & Lardner: David M. Klein, 45, not previously have a chief The American Society for the Prevention of the Natural Resources Defense joined the law firm as a partner. He was operating officer. Cruelty to Animals: Tim Wray, 45, was Council. previously a partner at Paul Hastings. “Since he left Time Warner elected chairman of the animal-welfare The New School: Scarola Malone & Zubatov: Peter James M. Cable, Artie’s career progress organization. He was previously a board Taback, 46, was Haddad, 47, joined the law firm as member. promoted to vice counsel. He was previously in private has been breathtaking,” said Bronx Tourism Council: president for practice at his own firm. analyst Laura Martin of Olga Luz Tirado, 52, communications and JAMS: Theodore H. Katz, 65, joined the Needham & Co. “The fact that joined the bureau as external affairs at the mediation and arbitration practice as they are elevating Artie at AOL executive director. university. He was neutral. He was previously U.S. means they’ve gotten to a point in She continues to previously assistant magistrate judge for the Southern their turnaround that they can bring in serve as president of vice president. District of New York. LTCommunications, New York Public Library: Michele Coleman —emily laermer professional management. They which she founded. Mayes, 62, joined as vice president and can now organize on a NBBJ New York: Rodney general counsel. She was previously EXECUTIVE PROMOTIONS more ongoing basis, Crumrine, 59, was promoted to principal executive vice president and general The fastest way to get an announcement into and not crisis to at the design and architecture firm. He counsel at Allstate Corp. Crain’s is to submit online. Fill out the form crisis.” was previously senior associate. Buro Happold: , 48, joined the Neil Porto at www.crainsnewyork.com/section/ —EMILY The Corcoran Group: Paul Anand, 41, engineering firm as principal. He was executive_moves. The Executive Moves column joined the real estate company as senior previously vice president and senior is also available online. LAERMER CBRE KNOWS NEW YORK

Carlton House 410 Park Ave 444 Madison Ave 200 Park Ave 290 Madison Ave 40 W 57th St Rockefeller Center 1095 Ave of Americas 1370 Broadway 306 E 61st St 400 Park Ave 437 Madison Ave 360 Madison Ave 285 Madison Ave 152 W 57th St 600 Fifth Ave 500 Fifth Ave 1359 Broadway 660 Madison Ave 399 Park Ave 424 Madison Ave 535 Fifth Ave 270 Madison Ave 250 W 57th St 590 Fifth Ave 7 Times Square 989 Ave of Americas 650 Madison Ave 900 Third Ave 805 Third Ave 529 Fifth Ave 16 E 40th St 712 Fifth Ave 1212 Ave of Americas 452 Fifth Ave 16 W 36th St 500 Park Ave 885 Third Ave 780 Third Ave 521 Fifth Ave 100 Park Ave 1370 Ave of Americas 1585 Broadway 7 Bryant Park 498 Seventh Ave 130 E 59th St 520 Madison Ave 280 Park Ave 340 Madison Ave 2 Park Ave 888 Seventh Ave 33 W 46th St 104 W 40th St 240 W 37th St 767 Fifth Ave 10 E 53rd St 350 Fifth Ave 335 Madison Ave 1250 Broadway 250 W 55th St 550 Fifth Ave 1040 Ave of Americas 229 W 36th St 745 Fifth Ave 510 Madison Ave 579 Fifth Ave 420 Lexington Ave 11 Times Square 254 W 54th St 546 Fifth Ave 1065 Ave of Americas 240 W 35th St 598 Madison Ave 55 E 52nd St 575 Fifth Ave 405 Lexington Ave 17 Penn Plaza 1700 Broadway 25 W 45th St 1412 Broadway 3 W 35th St 15 E 57th St 601 Lexington Ave 565 Fifth Ave 815 Second Ave 275 Seventh Ave 1345 Ave of Americas 1166 Ave of Americas 1411 Broadway 362 Fifth Ave 450 Park Ave 875 Third Ave 250 Park Ave 685 Third Ave 5 Penn Plaza 1325 Ave of Americas 1540 Broadway 211 W 40th St 358 Fifth Ave 126 E 56th St 150 E 52nd St 245 Park Ave 675 Third Ave 10 W 74th St 680 Fifth Ave 120 W 45th St 620 Eighth Ave 1 W 34th St 555 Madison Ave 600 Lexington Ave 747 Third Ave 655 Third Ave 1865 Broadway 1285 Ave of Americas 1150 Ave of Americas 250 W 39th St 145 E 125th St 545 Madison Ave 599 Lexington Ave 730 Third Ave 150 E 42nd St 3 Columbus Circle 1270 Ave of Americas 1515 Broadway 10 W 37th St 2090 AC Powell Jr. Blvd 693 Fifth Ave 575 Lexington Ave 140 E 45th St 60 E 42nd St The Plaza 787 Seventh Ave 1114 Ave of Americas 20 W 37th St 21 W 86th St 540 Madison Ave 570 Lexington Ave 450 Lexington Ave 295 Madison Ave 730 Fifth Ave 1633 Broadway 1500 Broadway 1001 Ave of Americas Hudson Yards 535 Madison Ave 825 Third Ave 708 Third Ave 292 Madison Ave 30 W 57th St 1619 Broadway 1466 Broadway 1372 Broadway

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10 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0011-NAT-CCI-CN_-- 7/12/2012 6:35 PM Page 1

IN THE BOROUGHS QUEENS FROM MANHATTAN AROUND Last gasp for LI City rises to top UES trash talk Continued from Page 3 But the days of LIC’s sizable cost THE CITY Confections, a cake-maker with an advantage could be waning. In the Years after most Upper East Siders 8,000-square-foot factory. past four years, two decidedly non- BRONX gave up the struggle to bar construc- In addition, close by is Dunkin’ industrial neighbors have checked tion of a marine waste-transfer sta- Donuts’ 15-year-old central bakery, in within a couple of blocks of Tom A race for the tion on the East River at East 91st which serves 25 area stores, as well Cat: the 100-room Z Hotel NYC record books Street as a lost cause, some residents as the city’s new food incubator, and the 63-room Ravel Hotel. still can’t help but talk trash. which includes rentable commercial “Thirteen years ago, it was deso- A turf war is heating up in Morris Nonetheless, time is running kitchens for baking. late here,” said Jerry Goldman, di- Park, where Democrat Mark Gjon- out. Last month, the city began so- “They all want to be in the rector of operations at another Tom aj is gunning for a seat in the Assem- liciting bids for construction of the

neighborhood,” said Gayle Baron, Cat neighbor, restaurant group BR buck ennis bly, hoping to become the first Al- facility, one of several around the executive director of the LIC Part- Guest’s Long Island City Commis- AMY SCHERBER of Amy’s Bread is moving banian-American elected to state city where garbage is loaded onto nership.“It’s safe and well served by sary. Its 12,000-square-foot facility her operations to a 33,000-square-foot facility. office.But first he must unseat four- barges. With work expected to be- transportation, and rents are less bakes some 5,000 rolls a day for more term incumbent Naomi Rivera. gin later this year, it looks as though than in Manhattan.” than 15 of its restaurants, including “Mark’s an activist and commu- opponents have finally exhausted LIC also gets high marks for pub- Blue Water Grill and Primehouse. other virtues of the area, including nity leader, but I don’t know if that their legal options, but one group lic transit, including service via six Zoning laws and the fact that the fact that it’s an easier place to translates into electoral success,” isn’t giving up. subway lines. It’s unusual for any in- most residential development is rent a truck than Manhattan.For in- said one Democratic source. That “It’s not NIMBYism,” insisted dustrial area, but it does make it easi- clustered along the waterfront make stance, Lady M does not own its hasn’t stopped Gjonaj—who heads Jed Garfield,a real estate broker and er for bakers to get to their mixing LIC still a relatively safe bet for bak- trucks; it leases them from Ryder, M.P. Realty Group—from pulling co-founder of Residents for Sane bowls in the wee hours. ers,but rather than take any chances, which has a rental facility on 44th out all the stops. He’s already car- Trash Solutions.“There are perfect- Manhattan has good transit, too, Ms. Scherber said she made sure Road, two blocks away from the peted the area with his posters, ly viable alternatives.” but not at LIC rents, which are at there was a “no-teardown clause” in cake-maker’s factory. doled out roses to voters along Ly- Most of them would also be bet- least 25% cheaper.Buying space—as Amy’s new 15-year lease there. “It’s a natural hub for bakers,” dig and Morris Park avenues, and ter for the group’s primary funder, did Pain D’Avignon, an artisanal said Annie Gerson,marketing man- thrown neighborhood barbecues. Glenwood Management, which bread-maker, in 2011 after 12 years Back in the bad old days ager for Eleni’s. “We are very excit- Though most of the Bronx’s owns several buildings across the in the area—is also far less expensive. The changes of recent years have ed about the growing [bakery] pop- 9,500 Albanian-Americans live in street from the proposed facility. The bakery paid $2.15 million for a been a happy surprise. James Rath, ulation out here.” the district, demographics favor his But environmental-justice advo- 10,000-square-foot building on general manager of Tom Cat, recalls But as many of them as there are, Hispanic opponent.The area is 45% cates argue that poorer neighbor- Ninth Street. people getting robbed in the area in they typically have little to do with Hispanic,21% black and 23% white. hoods have borne a disproportion- “We couldn’t find the same size the mid-1980s. each other. Still, Mr. Gjonaj is turning heads. ate share of the city’s trash-disposal building for less than $3.5 million “We love the neighborhood, es- “We just bake our bread,load our “Naomi is going to have to work her needs for too long, and now it is the even in Williamsburg,” said Uliks pecially now,” said Mr. Rath. trucks and hit the road,” said Mr. butt off,” said a Democratic insider. Upper East Side’s turn. Fehmiu, co-owner of the bakery. Many of his neighbors extol Fehmiu of Pain D’Avignon. Ⅲ —shane dixon kavanaugh —andrew j. hawkins CBRE KNOWS NEW YORK

1 E 33rd St 111 Broadway 156 Fifth Ave 215 Park Ave South 325 Hudson St 440 Lafayette St 601 W 26th St 95 Morton St 25 Broadway 1 Park Ave 112 Madison Ave 17 State St 217 Broadway 33 Maiden Lane 45 W 21st St 622 Broadway Courtyard Chelsea 275 Seventh Ave 1 Whitehall St 114 Greene St 170 Broadway 218 W 18th St 330 Hudson St 450 W 14th St 625 Ave of Americas 1 Little W 12th St 3 World Trade Center 1 World Trade Center 120 Broadway 180 Madison Ave 225 Park Ave South 34 W 14th St 46 Greene St 67 Spring St 1 State St Plaza 33 Whitehall St 100 Broadway 120 Wall St 19 Union Square W 257 Park Ave South 350 Hudson St 475 Park Ave South 7 World Trade Center 100 Broad St 4 World Trade Center 100 Fifth Ave 125 Broad St 199 Water St 276 Fifth Ave 4 New York Plaza 50 Broadway 72 Wall St 101 Murray St 55 Water St 100 Wall St 14 Wall St 2 Rector St 30 Broad St 40 Fulton St 51 Madison Ave 83 Maiden Lane 11 Madison Ave 641 Ave of Americas 100 William St 140 Broadway 2 World Financial Center 315 Park Ave South 40 Rector St 511-541 W 25th St 90 Broad St 115 Broadway 860 Broadway 101 Fifth Ave 149 Fifth Ave 20 Broad St 32 Ave of Americas 414 W 14th St 512 Broadway 90 John St 156 William St 99 Hudson St 111 Eighth Ave 150 W 30th St 21 Penn Plaza 32 Old Slip 43 W 24th St 594 Broadway 915 Broadway 233 Park Ave South 99 Wall St

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July 16, 2012 | Crain’s New York Business | 11 20120716-NEWS--0012-NAT-CCI-CN_-- 7/13/2012 12:21 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS Small housing, big benefit editor in chief Rance Crain publisher, vp Jill R. Kaplan either rent regulation nor subsidies will artists and professionals who would love to live in the city and EDITORIAL editor Glenn Coleman ever satisfy the demand for affordable who are just the kind of people we need to grow and diversify deputy managing editors Valerie Block, housing in New York City. So we were the economy.The housing stock should offer choices that fit Erik Ipsen assistant managing editors Erik Engquist, encouraged last year when the Bloomberg their lifestyles and their budgets.Technology makes this Jeremy Smerd administration—picking up on some easier than ever: Wrote one online commenter, “Put all your senior producer, news Elisabeth Butler Cordova news producer Lauren Elkies outside-the-box thinking by housing books on a Kindle and all your music on an iPod, hang your contributing editor Elaine Pofeldt advocates—quietly began looking into flat screen on the wall, and you’re good to go.” columnists Greg David, Alair Townsend crain’s health pulse editor Barbara Benson ways to create housing that is inexpensive but not subsidized. If the Kips Bay experiment succeeds, as we expect, the city senior reporters Theresa Agovino, The problem it seeks to fix is not a marketplace failure but and state should loosen up their housing dictums and let the Aaron Elstein, Lisa Fickenscher, Matthew Flamm, N Daniel Massey, Miriam Kreinin Souccar laws and zoning geared only to high-earning nuclear marketplace go to work. reporters Amanda Fung, Andrew J. Hawkins, Shane Dixon Kavanaugh, Adrianne Pasquarelli families. For example, it is illegal in the city for more than web reporter, producer Ian Thomas three unrelated adults to live together. Market-rate housing art director Steven Krupinski deputy art director Carolyn McClain units must be at least 400 square feet—and subsidized units staff photographer Buck Ennis FreshDirect’s idea Steve Noveck 450 square feet. Never cook? Doesn’t matter: The state copy desk chief copy editor Thaddeus Rutkowski says you must have a stove. Happy to live dormitory style? As Andrew J. Hawkins of Crain’s reported last week, data editor Suzanne Panara You can’t. FreshDirect is asking Congress to modernize the law so that assistant data editor Emily Laermer researchers Eva Saviano, Amy Stern In the absence of policies allowing for smaller, cheaper food stamps can be used to purchase groceries online. interns Esthena Brutten, Ken Christensen, dwellings, property owners have created them illegally for Assuming it can be done with safeguards against fraud, we Cara Eisenpress, Emily Lundeen, Mary Shell decades by subdividing apartments and converting can’t think of a single reason not to do this. Online ONLINE AND INTERACTIVE SERVICES basements.The result is a lot of uncollected taxes, businesses should have access to all customers, and food- general manager, online & e-commerce strategy Kira Bindrim unprotected tenants and unsafe housing. stamp recipients should have access to all grocers. senior web developer, interactive Last week, the administration pulled back the curtain on The biggest beneficiaries would be consumers who live in Chris O’Donnell its brainstorming, announcing a competition to design and so-called food deserts, with no fresh produce sellers and ADVERTISING, MARKETING AND PRODUCTION build micro-units in Kips Bay exempt from some of the advertising director Trish Henry supermarkets nearby, as well as disabled or infirm people senior account managers Irene Bar-Am, 1950s-era restrictions.The unveiling was a huge success, who struggle to get around. Cynics might say FreshDirect is Courtney McCombs, Sheryl Rose, Suzanne Wilson garnering coverage from more than 20 media outlets and account executive Jill Bottomley Kunkes seeking the change to boost its public image and mollify sales coordinator Danielle Wiener getting a positive response from the public. opposition to its planned move to the Bronx, but so what? Its newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) The world is now teeming with young, single techies, proposal makes sense and should be implemented. director, audience development Michael O’Connor senior marketing manager Catherine Schutten CRAIN’S ONLINE POLL COMMENTS event producer Courtney Williams reprint sales manager Lauren Melesio production and pre-press director Michael Corsi advertising production manager It’s the greater chamber Suzanne Fleischman Wies TO SUBSCRIBE: CRAIN’S STORY WAS A of increasing the state’s For print and digital subscriptions or customer minimum wage. service, e-mail [email protected] ‘SHAMEFUL HATCHET JOB’ or call 877-824-9379 (in the U.S. and Canada) or Your story “Chamber of 313-446-0450 (all other locations). $3.00 a copy for buck ennis A ‘PACK OF LIES’ the print edition; or $99.95 one year, $179.95 two Horrors” ( June 25) was years, for print subscriptions with digital access. IS $15 TOO MUCH TO nothing more than a shameful Interesting article exposing www.crainsnewyork.com/subscribe hatchet job intended to a leader in the business PAY FOR AN AVERAGE discredit the Greater New community of New York. TO ADVERTISE: York Chamber of Commerce. Except it is a pack of lies. Contact Advertising Director Trish Henry at CAB RIDE? [email protected] or call 212-210-0711. I find it outrageous that I know Mark Jaffe, chief www.crainsnewyork.com/advertise Yes. I’m going to invest in a good pair of Crain’s would smear this executive of the Greater walking shoes. organization for supporting New York Chamber. He is FOR INFORMATION ON OUR EVENTS: mainstream policies, like the not a liberal, but a Contact Event Producer Courtney Williams at No. There’s still nothing faster and easier than $1.25-an-hour increase in the conservative Democrat. [email protected] or 212-210-0257. www.crainsnewyork.com/events hailing a cab. state’s minimum wage that The Greater New York Date of poll: July 12 both Mayor Michael Chamber has four to six TO CONTACT THE NEWSROOM: 185 votes Bloomberg and Gov. Andrew business-card exchange 711 Third Ave., New York, NY 10017-4036 Cuomo endorse. As a small events per month that focus editorial phone: 212.210.0277 fax 212.210.0799 business owner, I stand on networking.That is Entire contents ©copyright 2012 Crain Communications Inc. strongly behind the Greater what many individuals like All rights reserved. ®CityBusiness is a registered trademark New York Chamber’s sound expect a business publication to me want. of MCP Inc., used under license agreement. public-policy positions. be a little more objective. I think Crain’s should look at PUBLISHED BY CRAIN COMMUNICATIONS INC. 75% It’s disgraceful to see Crain’s —michael locker the Manhattan and Queens chairman Keith E. Crain Yes masquerade a blatant and President chambers of commerce with president Rance Crain politically charged editorial Locker Associates their lack of business- secretary Merrilee Crain treasurer Mary Kay Crain 25% piece as a news item, especially networking events (maybe one William Morrow No executive vp, operations when the target of this attack is Editor’s note: Locker Associates is or two a month) and their senior vp, group publisher Gloria Scoby an organization whose views a business consulting firm that meetings with politicians group vp, technology, circulation, are broadly representative of represents unions in corporate (hmm, could that be political manufacturing Robert C. Adams business and New York public restructurings. In addition, favors at work?). vp/production, manufacturing David Kamis opinion. I certainly would Crain’s has editorialized in favor —richard boodman chief information officer Paul Dalpiaz founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. 1911 1996 FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 ( - ) Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

12 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0013-NAT-CCI-CN_-- 7/12/2012 6:18 PM Page 1

CRAIN’S Business Breakfast Forum: Meet Joseph Lhota CHAIRMAN AND CEO, MTA Join Crain’s New York Business for a discussion with Joseph Lhota, Chairman and CEO, Metropolitan Transportation Authority (MTA). Mr. Lhota will discuss the MTA’s mounting debt, the upcoming fare hike and his plans to upgrade the nation’s largest transit system. He will be questioned by Crain’s Assistant Managing Editor Erik Engquist and another journalist.

EVENT INFORMATION: DATE: REGISTER HERE: Wednesday , September 12, 2012 www.crainsnewyork.com bloomberg newsbloomberg NEW YORK’S Olympic bid delegation at its final presentation before the International Olympic Committee back in 2005. /events-jlhota PLACE: The Plaza, 768 5th Avenue or call the Events Hotline at (212) 210-0739. GREG DAVID TIME: ● Mr. Doctoroff would have been politically viable. Instead of having a Networking Breakfast: 8:00 - 8:30AM What we lost when decidedly low-profile role running Program: 8:30 - 9:30AM Bloomberg LP, Mr. Doctoroff would still be dominating the news For sponsorship opportunities, please contact as he did as the city’s deputy mayor Trish Henry at 212-210-0711 or London won Olympics [email protected] for development (and controversy). He would have left his official job to SPONSORED BY: run the Olympics, and assuming COST TO ATTEND: hen the 2012 Olympics opens in London the Games were a smashing success, $85 for individual ticket(s) if later this month with a spectacular ceremo- he would have been well positioned pre-registered before July 24th; $95 ny in a new stadium built for the event, to take on the less than inspiring thereafter. mayoral candidates the Democrats most New Yorkers watching on television have assembled so far for 2013. $850 for table(s) of ten if pre-registered won’t recall that these Games were sup- ● Michael Bloomberg would still be before July 24th; $950 thereafter. mayor, of course. Here’s where his- posed to have been held in New York. HOST SPONSOR: W tory would have been somewhat You must be pre-registered to attend this event. No Those who do remember—primarily the businesspeople different, however: The mayor refunds permitted. Pre-register online by going to crainsnewyork.com/events. For more information, who worked so hard and gave so much money in the effort to would not have waited until the call the Events Hotline at 212-210-0739. financial crisis to overturn term win the Games—will console them- apartments for exorbitant sums to limits so he could run for a third selves that, despite losing, the vision the hundreds of thousands of peo- term. He would have decided much of the Olympics changed New York ple coming to the city for the earlier that he could not have trust- ADVERTISEMENT for the better. Games—all that money either ed anyone else to make sure the That’s the conventional wisdom financing their time elsewhere or Olympics fulfilled all his hopes. 1552 Bway Owner LLC (“Bway Owner”) has agreed to pay the about what we once called NYC bolstering their bank accounts. OK,maybe the Jets wouldn’t have New York City Department of Finance $240,000 pursuant to an agreement 2012, and this theory is partially been a better team. And Mr. Docto- with the New York County District Attorney’s Office (“DANY”) related to true. Olympics champion Dan roff may never have developed the real property tax filings with the City of New York. Doctoroff ’s premise was that the The Games common touch. I think that his cen- Between 2005 and 2010, Bway Owner owned commercial Games create both a sense of civic tral premise would have been true, spirit and impose artificial deadlines would have and the development of the far West property in Manhattan. In that capacity it licensed space on the billboards that allow a city to undertake major Side would have been much further attached to the building to private advertisers, thus generating signage projects that would otherwise never spurred along despite the financial crisis.It is income. Bway Owner omitted this signage income on six Real Property be accomplished. His grand scheme development true that the Related Cos. is deter- Income and Expense statements (“RPIE”), used by the New York City to revitalize the city by siting mined to build a great neighborhood Department of Finance to assess the value of Bway Owner’s real property. Olympic facilities in underutilized where the stadium was to be.It is also In addition, Bway Owner filed protests with the New York City Tax areas—mostly along the water- true that it has lured exactly one front—is slowly being realized on company to the site. Commission seeking relief in the form of reductions of the assessed value the far West Side, in Brooklyn and In fact, this is where the conven- and failed to report the signage income on six Tax Commission Income elsewhere. ● The Jets would have been a better tional wisdom is off base. Despite and Expense statements (“TCIE”). This underreporting was caused by Like all conventional wisdom, football team. Remember, the Jets the financial crisis,the need to com- inadequate internal accounting controls and a lack of training and supervi- this theory is also partially wrong. were going to be the permanent plete the Olympic facilities would sion regarding the accurate filing of the RPIEs and TCIEs with the New Here’s an eclectic and somewhat occupant of the Olympic stadium have spurred development in all the York City Department of Finance and the New York City Tax Commission. lighthearted look at what the with a legitimate claim to be the areas Mr. Doctoroff originally Games of the XXX Olympiad city’s real football team—with all targeted. Then the Games them- Bway Owner accepts full responsibility for these systemic would have meant in the city. the prestige and financial gains that selves would have been a spectacu- failures, and accordingly, has agreed to pay $240,000 to the City of New ● Many New Yorkers would have would have provided. So, owner lar advertisement for the city’s York. In addition, as part of its cooperation with DANY and in order to been off enjoying great vacations. Woody Johnson would not have accomplishment. prevent future inaccurate reporting on real estate tax filings with the City As happened in 2004 when the gambled the way he has on high- When the Games are over, New of New York, Bway Owner will examine its internal accounting controls, Republican National Convention risk, high-publicity moves, like hir- Yorkers should pay attention to the was held in the city, many residents ing Rex Ryan or trading for Tim stories about the impact on London training and supervision, and make the necessary modifications. Bway would have fled. They also would Tebow, in order to compete with and ask themselves what New York Owner recognizes how important it is to New York City and its taxpayers have been able to rent out their the rival Giants. really lost. that assessments on real property are based on accurate information so that each taxpayer bears its fair share of the tax burden. 20120716-NEWS--0014-NAT-CCI-CN_-- 7/12/2012 6:18 PM Page 1

REAL ESTATE DEALS

BARE BONES 666 FIFTH AVE. 1350 SIXTH AVE. 641 SIXTH AVE. LinkedIn boosts ASKING RENT; TERM: ASKING RENT; TERM: ASKING RENT; In the $80s a square $65 to $85 a square TERM: Undisclosed; foot; undisclosed foot; undisclosed undisclosed SQUARE FEET: SQUARE FEET: SQUARE FEET: size of NY office 48,000 on 19th and 24,700 on eighth floor 15,600 on ground 20th floors floor and lower level TENANT; REPS: inkedIn, the popular social-networking site for professionals, TENANT; REP: Amazon; Justin TENANT; REP: is adding 10,000 square feet to its office in the Empire State Akerman Senterfitt; Halpern and Marcus Staples; Chase Frederick Marek of Vortex Group Rayner of Cresa Partners Welles of SCG Retail Building. The California-based tech company, which already occupies LANDLORDS; REPS: Vornado Realty Trust LANDLORD; REPS: SL Green Realty Corp.; LANDLORD; REPS: Atlas Capital; Gary and Kushner Cos.; Tom Costanzo, Jared Gary Rosen and Howard Tenenbaum Alterman, Ross Berkowitz and Robert the entire 25th floor, has signed a six-year lease for a portion of Solomon and Glen Weiss Futterman the floor below.That will bring its total footprint to 41,000 square feet when BACK STORY: The Internet retailer now L it expands in February. BACK STORY: This is the first major occupies three and a half of the 35 floors BACK STORY: Staples plans to move office deal for the building since Kushner at the 585,000-square-foot tower on from its current location at 699 Sixth Ave., “They were outgrowing their space,” said Sacha Zarba, a broker at CBRE Cos. recapitalized it with Vornado in West 55th Street, according to the between West 22nd and West 23rd Group Inc., who represented LinkedIn, which moved in only last year.“They December 2011. New York Post. streets, by December. are being smart about real estate, making sure they take what they need and not taking more space too soon.” In New York, LinkedIn has about 190 employees, mostly sales- people.The increased acreage at the Empire State Building will allow the tenant to add another 60 staffers, according to Mr. Zarba. “LinkedIn is a terrific tenant.It’s a profitable, established company that is doing well and growing nicely,”said Anthony Malkin, president of Malkin Holdings, an owner of the property and its asset manager. “Everyone is talking about how hot tech and new media are, but the real- ity is that a tremendous number of these tenants are not profitable.” Mr. Malkin said the asking rent for the new space was $51 per square foot. The building was represented by Newmark Knight Frank brokers William Cohen and Ryan Kass. —amanda fung Savvy investors are going places – Finance firm adds namely Indonesia, Vietnam and Turkey. to Times Sq. HQ IIG Capital is nearly doubling the You don’t have to be on the trading floor to know that the emerging size of its headquarters office in markets are changing the world economy. HSBC has global expertise and Times Square. local solutions, which allow you to access opportunities in the developed, The trade-related financial- emerging and soon-to-be emerging markets.1 services firm has taken an additional Does your portfolio cover these growing markets? 5,700 square feet

2 on the 17th floor at Fund an investment account as an HSBC Premier client today. 1500 Broadway, be- Call 866.959.8657 or visit hsbcpremierusa.com/wealth. tween West 43rd and West 44th streets,where it had previously occu- pied 7,200 square feet. The asking rent for the 10-year lease, which now covers the entire floor, was about $60 per square foot. “The tenant was happy in the HSBC Securities (USA) Inc. building, and ownership was happy with them,” said Patrice Meagher, a Investments and Annuity products are provided by Registered Representatives and Agents of HSBC Securities (USA) Inc., member NYSE/ FINRA/SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary broker at CBRE Group Inc., who of HSBC Holdings plc. In California, HSBC Securities (USA) Inc., conducts insurance business as HSBC Securities Insurance Services. License #: 0E67746. along with colleague Paul Amrich Investments and Annuity products: represented IIG.“They were in need of space for growth, and we were ARE NOT A BANK DEPOSIT OR ARE NOT INSURED ARE NOT GUARANTEED lucky [that the building was able] to OBLIGATION OF THE BANK OR ARE NOT FDIC INSURED BY ANY FEDERAL BY THE BANK OR ANY MAY LOSE VALUE ANY OF ITS AFFILIATES GOVERNMENT AGENCY OF ITS AFFILIATES accommodate them.” The landlord, Tamares Realty, All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. was represented by Erik Schmall, a 1International investing involves a greater degree of risk and increased volatility that is heightened when investing in emerging or frontiers markets. Foreign broker at Studley. securities can be subject to greater risks than U.S. investments, including currency fluctuations, less liquid trading markets, greater price volatility, political and economic instability, less publicly available information, and changes in tax or currency laws or monetary policy. Founded in 1996, IIG provides 2To qualify for an HSBC Premier relationship, you need to open a Premier checking account and maintain $100,000 in combined U.S. personal deposits and/or short-term financing for small to investment balances. Business owners may use their commercial balances to qualify for a personal Premier relationship. A monthly maintenance fee of $50.00 will medium-size merchants, traders be incurred if minimum balance requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. and processors working in the do- United States persons (including U.S. citizens and residents) are subject to U.S. taxation on their worldwide income and may be subject to tax and other filing mestic and international markets. obligations with respect to their U.S. and non-U.S. accounts — including, for example, Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts According to the firm’s website, it (“FBAR”)). U.S. persons should consult a tax advisor for more information. Deposit products in the U.S. are offered by HSBC Bank USA, N.A. Member FDIC. has financed more than $7.5 billion ©2012 HSBC Securities (USA) Inc. in trade-related transactions in the past 15 years. —amanda fung

14 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0015-NAT-CCI-CN_-- 7/12/2012 5:21 PM Page 1

SMALL BUSINESS THE LIST Largest Management Consultants PAGE 17 SPOTLIGHT Bain & Co. hasn’t changed much from the days of Mitt Romney. It’s REPORT loose, informal---and still rocking PAGE 17 Boutique companies TIME IS MONEY: Paul Cuthbertson, COO of MindsInSync, says his professional employee team up, organization costs more but saves him from hassles so the company can focus on designing and go global making home and pet products. Partnerships enable even tiny bagel stores to sell their products abroad

BY EILENE ZIMMERMAN

Like many growth-minded entrepreneurs, Samantha Di- Gennaro, chief executive of DiGennaro Communications, sees plentiful opportunity over- seas, despite turmoil in Europe. “There’s a lot of potential for global business, especially in this age of digital advertising, because that transcends borders,”said Ms. DiGennaro, whose bou- tique public $85.1B relations firm, TOTAL VALUE of merchandise based in shipments from Manhattan, the New York area has 35 em- in 2010 ployees and more than $4.5 million in annual revenue. Enter Adrian Brady, head of Eulogy, a similar-size boutique firm in London. A mutual client of both firms suggested that they join forces, and in January, Di- Gennaro and Eulogy formalized a partnership. Last month, Ms. DiGennaro and Mr.Brady met to devise a strategy for moving for- ward. That may involve going af-

buck ennis ter global business together or looking for another small business partner in Asia or Latin America. Meanwhile, they have been able to partner on multinational service and introduce each other to clients who need the other’s How to get big-firm perks help.For instance,Eulogy recent- ly paved the way for DiGennaro A guide to one-stop a company, he has contracted with a BIG BILLS Manhattan, provides software for to work with its existing client, professional employer organization, companies to manage contract work- G2, an operating unit of interna- shops that offer health or PEO, designating it as his workers’ Average annual employer- ers. Mr. Wald is the company’s co- tional advertising and marketing “employer of record” and then send- sponsored health insurance founder and chief operating officer. services company WPP. Their insurance, HR and ing it checks to administer and cover premiums (family) Throughout the city,fledgling and arrangements have reduced the back-office help a range of employee-related matters, Employer existing small companies are turning need for each company to travel to including payroll,payroll taxes,work- contribution $15,073 to PEOs—and not just to free them- serve overseas clients. ers’ compensation and health insur- Worker contribution $10,944 selves of the headaches and overhead “Working this way is so much BY CARA S. TRAGER ance premiums. of handling HR issues so they can more efficient,” said Ms. DiGen- “A PEO is rather standard practice $7,056 concentrate on growing and manag- naro. And Mr. Brady appreciates A serial entrepreneur with three start- in the startup world and gets us off the $5,269 ing their operations.In the face of ris- the new ease of doing business in ups under his belt, Jeffrey Wald owes ground with a world-class human- $4,129 ing health insurance costs,PEOs,also the U.S. “For years, we couldn’t his success, in part, to what he doesn’t resource infrastructure for a relatively $1,787 known as employee leasing compa- offer clients a seamless support in do: getting involved in human- inexpensive cost,” said Mr. Wald, 2001 2011 nies, are gaining traction as a way to a key market,”he said in an email. resource issues. whose latest venture, a 40-employee Source: Kaiser/Health Research & access more reasonably priced health DiGennaro Communications Each time Mr. Wald has launched firm called Work Market Inc., in Educational Trust survey See PERKS on Page 16 See SMALL FIRMS on Page 16

July 16, 2012 | Crain’s New York Business | 15 20120716-NEWS--0016-NAT-CCI-CN_-- 7/12/2012 6:17 PM Page 1

REPORT SMALL BUSINESS

company. Six-year-old Manhattan-based Big-firm perks MindsInSync Inc., which designs How to avoid the risks of and manufactures products for the home, pet and juvenile markets, PEOs while reaping rewards Continued from Page 15 employee per year for a client with is sticking with Houston- BEFORE CONTRACTING with a professional employer organization, or PEO, care insurance.With their economies 75 employees and $2,500 per em- headquartered employee leasing small businesses should take steps to make sure that the arrangement will of scale, they offer plans that are typ- ployee per year for a firm with as few firm Insperity, even though it no ease their burdens, not add to them, according to experts. ically available only to large compa- as five employees. The fee includes longer makes sense financially. Like any other business, the PEO industry has its share of horror stories. nies or would be too costly for small payroll processing, tax compliance With 50 employees in New York, “Many have gone out of business, sometimes providing little notice,” said firms to buy on their own. and access to an HR consultant, ac- along with 100 overseas, MindsIn- “PEOs give you a more robust cording to Mr. Farrell. Sync could save as much as $70,000 Robert Butwin, owner of a Great Neck, L.I.-based insurance brokerage firm benefit plan that a lot of small busi- Some PEOs give companies the if it left the PEO in favor of using that bears his surname. “It’s a very volatile industry.” nesses need in order to recruit top option of calculating their adminis- another vendor just for payroll serv- Mostly courtesy of the recession, which decimated clients’ workforces and talent,” said Beth Schoenfeldt, co- trative fee as a percentage of payroll, ices and health insurance coverage, shuttered businesses entirely, more than 1,800 PEOs folded between 2008 founder and CEO of Manhattan- which, depending on the type of said COO Paul Cuthbertson. and 2010. Today, the country has somewhere between 700 and 800 PEOs, based FundedBuy, which helps business and its salaries, can range their precise number unknown because “not all states require PEOs to be startups procure everything from from 0.2% for a hedge fund to 5% for Little help for sole proprietors licensed or to register,” said Tim Tucker, vice president of government affairs phone systems to employee leasing a manufacturer, according to Mr. But a departure from Insperity for the National Association of Professional Employer Organizations in services. Farrell. “We advocate for a flat ad- would require MindsInSync to take Alexandria, Va. PEOs generally serve businesses ministrative fee, because if you give on time-consuming HR responsibil- The Small Business Efficiency Act of 2011, which was introduced last July with 20 to 75 employees, although employees a raise, you’re giving the ities, as well as give up health insur- in the House and last November in the Senate, is designed to provide the PEO they’re not likely to turn away five- PEO a raise, too,” he said. ance that represents “a great package industry with greater transparency in its dealings with small business and the employee startups, especially newly Health care coverage is extra, al- for the price,” said Mr. Cuthbertson. Internal Revenue Service. The proposed legislation provides clear rules for funded Silicon Alley ventures that though it generally runs 10% to 25% “Some employees would get disgrun- PEOs’ collection and remittance of federal employment taxes for their small show growth potential, said below open-market rates, according tled by the change in health plans.” business clients and for a voluntary certification process within the IRS. Thomas Farrell, founder and vice to Mr. Farrell. In addition, employ- Still, PEOs aren’t the antidote to “The law would codify what PEOs do and provide greater clarity that president of client relations at PEO ee leasing firms usually have an ar- the health insurance woes of single protects small business,” said Mr. Tucker. Spectrum Inc., a brokerage concern senal of at least 10 plans,with clients proprietorships. With no timetable set for either the Senate or House to vote on the act, in Lindenhurst,L.I.,that represents typically offering their workers a Burton Goldfield, president and here are some experts’ tips to follow before contracting with a PEO: more than 100 employee leasing choice of three to five. CEO of TriNet, which offers 105 Diligently research the PEO under consideration. “Beware of who you are firms nationwide. In New York, “The only downside is the ad- different health plans, said his PEO dealing with and make sure it’s a PEO that’s well regarded and has proper PEOs serve a range of companies, ministrative costs, but I more than would not take on a business with references,” advises Joshua Dubrow, a CPA with Nussbaum Yates Berg Klein including technology, accounting, make up for it in what I pay for one person, because his firm gener- & Wolpow, a Melville, L.I.-headquartered accounting firm with city clients. law and financial-services firms. health care insurance,” said Mr. ally requires clients with at least five Read the fine print. Doreen Lilienfeld, a partner in the New York law firm Wald, whose firm covers 80% of its workers to make the arrangement Shearman & Sterling, recommends getting a “legal eye” to review a PEO Better health care options workers’ health insurance costs in feasible. Single-employee opera- contract “to look at what it says about cost structure and indemnity This past January, Clothes Horse addition to paying an administrative tions, he said, “would not be inter- provisions.” Although a small business may lack negotiating clout with a PEO, it Inc., a year-old Manhattan- fee of $100 a month per employee. ested” in many aspects of TriNet’s headquartered fashion-technology “I would bear an extra $80,000 in “infrastructure,” such as its employ- should still “be aware of what could happen in a dispute,” she said. “You may business that helps online shoppers health insurance costs if I switched ee handbooks, recruitment services be forced into arbitration or litigation as part of a dispute-resolution clause.” find clothes that fit, signed up with out of the PEO.” and employee liability insurance. Question the PEO about everything from its financials to its pricing TriNet, a large San Leandro, Calif.- In early 2011, the price of health “They’re not going to sue them- structure. “Get the audited financial statement of the PEO, understand the based PEO with a Manhattan office. insurance drove Jeff Giesea to a selves,” said Mr. Goldfield. pricing model in detail and what is included and not included,” said Burton Vik Venkatraman, a Clothes Horse PEO for his startup, BestVendor In addition, PEOs aren’t neces- Goldfield, president and CEO of TriNet, a San Leandro, Calif.-headquartered co-founder, said he and his two oth- Inc., a free online resource for find- sarily the affordable health care so- PEO with a Manhattan office. er co-founders—who are the firm’s ing business apps and services. As a lution for small businesses with an Weigh the PEO’s benefits against its rules and regulations. Since the PEO is three full-time employees—went result, the firm is paying “signifi- older workforce. the “employer of record” for its clients’ workers and has its own rules for the PEO route for two reasons: to cantly”less than what a health insur- “PEOs use health insurance un- dealing with employee-related issues, entrepreneurs need to consider how “access better health care programs ance carrier said it would charge for derwriting techniques to assess each they will feel giving up some of their autonomy. than we could find and afford on the comparable coverage. prospective client’s perceived risk “Because I’m part of TriNet, I have to do things the way TriNet wants them open market” and to eliminate the “Even with the extra administra- from a medical standpoint, and will done,” as in providing an enumerated performance plan for each employee, need to find a payroll processor. tive costs,it’s still less expensive than then either decline a company or ac- said serial entrepreneur Jeffrey Wald, co-founder and COO of Manhattan-based But PEO convenience comes at getting a policy on my own,and em- cept it as a client but take into con- Work Market Inc., which provides software to manage contract workers. “As a a price.At the outset,employee leas- ployees get a choice of the plan they sideration its demographic profile practical matter, it’s a little burdensome, but the appropriate thing to do.” ing firms charge an administrative want,” said Mr. Giesea, the founder in providing health insurance rates,” —CARA S. TRAGER fee that can range between $800 per and CEO of the eight-employee said Mr. Farrell. Ⅲ

than those that don’t,” she said. branded products is what helped Small firms team up to go global Of course, overseas partnerships propel Danielle Malka’s company require trust and careful planning. into the Russian market. Ms. Ms. DiGennaro said that she and Malka is the founder and president Continued from Page 15 Mr.Brady decided to determine how of eShave New York, a brand of lux- isn’t alone among local businesses in fees are split on a case-by-case basis. ury shaving products with two retail venturing overseas. The New York Sometimes, the two firms will bill outlets in the city,16 employees and area ranks as the largest export mar- separately for their combined servic- about $2 million in sales last year. ket in the U.S., according to the In- es. “In other cases, we will have one In May, Ms. Malka awarded ternational Trade Administration. central billing structure,” she said. exclusive distribution rights for Merchandise shipments totaled Both companies agreed to forgo for- eShave’s products to Regency Ven- $85.1 billion in 2010, based on the mal fees for referrals, which they see tures in Russia. “We also gave them most recent data from the ITA, and as a way to foster good will between the right to open and operate 58% of the state’s total merchandise their firms. eShave New York stores in Russia,” exports came from small and she said. medium-size businesses in 2009. EFFICIENCY: Samantha Demand for New York specialties The first kiosk is slated to open Already contending with the DiGennaro’s public Mr. Gordin said small businesses in Moscow in the middle of this relations firm partnered high cost of doing business in New with London-based often partner on an informal basis month,with three more due to open York,a small but significant number Eulogy to offer with potential foreign counterparts, by the end of September. are turning to overseas partnerships multinational services. though many eventually formalize Although eShave’s products are

to save on the expense of opening buck ennis these relationships. Demand for distributed in 17 countries, they their own foreign outposts, say ex- products considered New York spe- aren’t sold through stores with the perts. “It’s a fantastic idea for small Small businesses often see a sub- provides financial products like di- cialties has created opportunities for eShave brand name, as they will be companies, which don’t have the re- stantial payoff from venturing rect loans to help American busi- neighborhood businesses to sell in Moscow.“It will be our name and sources of a midsize or larger com- abroad, according to Elizabeth L. nesses expand into emerging mar- their wares through foreign shops, our voice out there, and this is part pany,”said Alexander Gordin,man- Littlefield,president and chief exec- kets. “Research has shown that he noted. “Even bagel places on the of our thinking about expansion,” aging director at merchant bank utive of the Overseas Private Invest- small businesses that invest abroad corner are exporting all over the said Ms. Malka.“We want to have a Broad Street Capital Group and au- ment Corp., a U.S. government have much higher survival rates and world,” he said. bigger impact in the international thor of Fluent in Foreign Business. agency that, among other things, much higher productivity and pay The hankering for New York- market.” Ⅲ

16 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0017-NAT-CCI-CN_-- 7/12/2012 5:22 PM Page 1

NEXT WEEK: THE The Top Office Leases Largest Management Consultants and Top Property LIST Ranked by number of New York-area consultants Sales Lists THE SCOOP TRENDS SPOTLIGHT

he Big Apple’s largest management consulting firms Largest growth are seeing a boom in head counts.The number of lo- Percentage change in the LONG AFTER ROMNEY, BAIN cal consultants at the area’s top firms grew 11.3% last number of New York-area consultants, 2010-2011 year, to 18,240, according to Crain’s research. & CO. STILL REAPS PROFITS Eighteen of the top 25 management consultan- Kurt Salmon AS IS OFTEN THE CASE IN A SLUGGISH ECONOMY, the past year Tcies reported consulting-staff growth for 2011, compared with +96.3% 15 the year before.Three firms reported consultant increases of has been a good one for Bain & Co., the management con- more than 50%. Experis sulting firm that launched the career of Republican presiden- Three of the five firms that reported shrinking their local +64.7% tial contender Mitt Romney, who went on to make millions as a consultant head count registered single-digit percentage Towers Watson & Co. co-founder of spinoff firm Bain Capital. gettyimages declines. +58.9% Bain & Co. added Time Inc. to its list of high-profile MITT ROMNEY started out at Bain & Co. Two companies—Buck Consultants and EisnerAmper— J.H. Cohn clients, recently opened offices in Washington, D.C., and Istan- were flat. bul, and now has 49 offices in 31 countries, with 5,500 em- +37.3% “Companies [that rely on consulting firms] are turning away ployees. Revenue was up about 15% in 2011, to $2 billion, according to estimates from Kennedy from hiring full-time because of budgets,” said Louis Casavina, RCG Global Services Inc. Consulting Research & Advisory. Overall revenue for the consulting industry was up 3%. managing director at Experis, which ranks No. 14 on the list and +25.7% “Generally speaking, it’s a good time for consulting,” said Tom Rodenhauser, managing director at focuses on internal auditing and workforce-related services. “A Kennedy Consulting. The firms “are cut off when clients don’t have money, then called in when there’s lot of folks are coming to us because they don’t want to hire.” a little bit of growth going on.” Experis grew 64.7% last year, to 247 consultants. Much of Total management He attributed Bain’s higher rate of growth to a client roster of Fortune 500 companies that have this growth came from its marriage with a sister company, Mr. consultants at the performed fairly well. But he also cautioned that the industry is still recovering from the recession, Casavina said. top 25 NY-area firms and that fee rates have only recently returned to 2008 levels. Experis is not the only list member that has recently merged. Bain was brought into Time Inc. in March to help the troubled No. 1 magazine publisher develop a Kurt Salmon Associates last year joined forces with Ineum Con- +11.3% cohesive strategy for bringing back growth. The publisher has insisted the emphasis is not on cutting sulting,a Paris-based firm that focuses on corporate strategy and organization, nearly doubling the number of the company’s costs, but Bain, even more than its larger rivals McKinsey and Boston Consulting Group, is known for 18,240 taking a hard look at operations—and head count. “Their reputation is for being very pragmatic,” Mr. management consultants to 106. The newly formed Kurt 16,386 Salmon ranks No. 22 on the Crain’s list. Rodenhauser said. Bain declined to comment or contribute information to the Crain’s list of top “Merging is a great vehicle for growth; it’s a way to get rela- management consultants. tionships and expertise that the firm may not have otherwise,” Founded in 1973 by Bill Bain and a half-dozen other refugees from the Boston Consulting Group, said Madison Riley, the managing director of the firm’s North Bain & Co. is known for achieving measurable results that extend to the client company’s share price. American retail and consumer products group. “The more spe- The firm focuses laserlike on the bottom line, but its culture is said to be looser and more informal than cialized you are, the more likely you are to be acquired because McKinsey’s and BCG’s. “McKinsey is the marching band,” said Walter Kiechel, author of a history of the it’s hard to build a specialty in-house.” —emily laermer 2010 2011 consulting trade, The Lords of Strategy. “BCG is the jazz band. Bain is the rock band.” —MATTHEW FLAMM

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July 16, 2012 | Crain’s New York Business | 17 20120716-NEWS--0018-NAT-CCI-CN_-- 7/12/2012 5:22 PM Page 1

THE LIST Largest Management Consultants

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JACK RESNICK & SONS is pleased to announce the following new lease at 315 HUDSON STREET

MODA OPERANDI Part 5th Floor, 24,822 Square Feet

Represented by Owen C. Hane RI&XVKPDQ :DNHÀHOG,QF

110 East 59th Street, New York, New York 10022 212.421.1300 www.resnicknyc.com

18 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0019-NAT-CCI-CN_-- 7/12/2012 5:23 PM Page 1

FOR THE RECORD

order, made out to the New York City headquarters for the financial services he exercised options on 40,742 shares of Department of Transportation. To make training company.The tenant was common stock at $38.55, in a ABOUT THIS SECTION inquiries, contact Gail Hatchett at represented by the Vortex Group’s transaction worth $1,570,604. During (212) 839-9308. Oliver Petrovic. The landlord, Rudin the same period, he sold 40,742 shares FOR THE RECORD is a weekly listing of information from the public record that Management, was represented in-house of common stock at prices ranging from can help businesspeople in the New York area find opportunities, potential ● Housing Authority by Eugene Baumstein. The asking rent $49.34 to $49.56, in a transaction worth new clients and updates on competitors. Requests proposals by 4 p.m. on July 31 was in the mid-$30s per square foot. $2,014,193. He now directly holds To ask questions or get more information on this section, contact Crain’s for construction management for various 305,755 shares. research department at [email protected]. projects. Proposers will potentially RETAIL provide some or all preconstruction, ● 1 Bite Mediterranean signed a 10- Ellis Cousens, chief financial and construction, postconstruction and extra year lease for 3,600 square feet at 875 operations officer and executive vice NEW IN TOWN claims are Dunston Enterprises, owed services. The bid documents may be Third Ave. The restaurant will occupy president, exercised options on 44,660 $791,000; the Internal Revenue obtained from the New York City space in the tower’s concourse level. The shares of common stock at $31.89 Companies that would like to have details Service, owed $116,970.28; and Housing Authority website, tenant was represented by Prudential between June 20 and June 27, in a of openings published should submit Advantage Payroll Services, owed www.nyc.gov/nychabusiness. Paper Douglas Elliman Retail Group’s Joseph transaction worth $1,424,207. During descriptions following this format to $97,349.96. copies of the bid can also be obtained Aquino, Faith Hope Consolo and the same period, he sold 44,660 shares [email protected], with $25 at the NYCHA Finance Dawn Ferrer. The landlord, Cushman of common stock at prices ranging “New in Town” in the subject line. ● The Bedford Lofts Department, 90 Church St., & Wakefield Inc., represented itself in- from $47.95 to $48.15, in a transaction 120 S. Fourth St., Brooklyn Manhattan. The fee is payable by house. The asking rent was $65 per worth $2,145,947. Between June 29 ● Extra Fancy Filed for Chapter 11 bankruptcy check or money order only and should square foot. and July 5, he exercised options on 302 Metropolitan Ave., Brooklyn protection on June 26. The filing cites be made payable to NYCHA. To make 60,200 shares of common stock at ● Chefs Mark Rancourt and Robert estimated liabilities of $1,000,001 to inquiries, contact Nancy Ostreicher at Hanro of Switzerland signed a lease prices ranging from $33.05 to $38.55, Krueger opened a seafood restaurant in $10 million and estimated assets of (212) 306-3103 or nancy.ostreicher@ for 875 square feet at 808-10 Washington in a transaction worth $2,319,610. Williamsburg. $1,000,001 to $10 million. nycha.nyc.gov. St. This will be the fashion retailer’s first During the same period, he sold 60,200 U.S. location. The tenant was shares of common stock at prices ● ranging from $48.95 to $49.95, in a The Goodwin ● Fletcher International Ltd. GOODS AND SERVICES represented by RKF’s Zachary Beloff ● Department of Citywide Administrative transaction worth $2,952,990. He now 430 Hudson St., Manhattan 48 Wall St., Manhattan and Beth Rosen. The landlord, TF Services directly holds 120,434 shares. Chef Colin Kruzic opened a small- Filed for Chapter 11 bankruptcy Cornerstone, was represented by RKF’s plates restaurant in the West Village. It protection on June 29. The filing cites Seeks competitive sealed bids by 10:30 Karen Bellantoni and Pamela Haber. ● Regeneron Pharmaceuticals Inc. (REGN) serves snacks, salads and sandwiches. estimated liabilities of $10,000,001 to a.m. on July 30 for pouches, lamination, The asking rent was not disclosed. $50 million and estimated assets of identification cards and accessories. The Neil Stahl, senior vice president of ● Net-a-Porter $10,000,001 to $50 million. bid document can be downloaded for STOCK TRANSACTIONS research and development sciences, 100 Fifth Ave., Manhattan free at City Record Online or can exercised options on 95,079 shares of be obtained by contacting Vendor Following are recent insider transactions at common stock at $20.32 on June 18, in a The online fashion retailer opened an ● Forest Avenue Development office in the Flatiron district. It is the Relations at [email protected] New York’s largest publicly held companies transaction worth $1,932,005. On June 209 Wagner Ave., Mamaroneck, N.Y. or (212) 669-8610. For further filed with the Securities and Exchange 19, he sold 38,911 shares of common retailer’s first headquarters outside the Filed for Chapter 11 bankruptcy United Kingdom. information, contact Jeanette Commission by executives and major stock at prices ranging from $115.60 to protection on June 26. The filing cites Cheung at (212) 386-0465 or shareholders. Listings are in order of $118.10, in a transaction worth estimated liabilities of $1,000,001 to transaction value.The information was ● TruEffect [email protected]. $4,514,593. He now directly holds $10 million and estimated assets of obtained from Thomson Reuters. 1221 Sixth Ave., Manhattan 64,600 shares. $1,000,001 to $10 million. ● The Internet advertising-technology Economic Development Corp. Requests proposals by 4 p.m. on Aug. 3 ● John Wiley & Sons Inc. (JW’A) ● Dealertrack Holdings Inc. (TRAK) company opened an engineering lab in ● Integrated Concepts & Housing for consultant services for the launch of William Pesce, director and executive Mark O’Neil, chief executive, exercised midtown. The firm is headquartered in Solutions Ltd. Westminster, Colo. three to five Learn As You Earn committee member, exercised options options on 90,000 shares of common 310 Greenwich St., Manhattan Advancement Program, or LEAP, on 144,258 shares of common stock at stock at $2.80 between June 26 and June Filed for Chapter 11 bankruptcy project offices. An optional information $38.55 between June 25 and July 2, in a 29, in a transaction worth $252,000. COMPANY MOVES protection on June 27. The filing cites session will be held July 18 at 9:30 a.m. transaction worth $5,561,146. During During the same period, he sold 90,000 estimated liabilities of $0 to $50,000 and at the New York City Economic the same period, he sold 144,258 shares shares of common stock at prices ● Apple Seeds estimated assets of $0 to $50,000. Development Corp., conference room of common stock at prices ranging from ranging from $29.07 to $29.36, in a 200 West End Ave., Manhattan 4A/B, 110 William St. The bid $47.51 to $48.93, in a transaction worth transaction worth $2,628,022. He now ● The children’s indoor-play company NYC Artspace 7 Inc. document can be downloaded at $6,993,923. Between July 3 and July 5, directly holds 293,461 shares. Ⅲ opened a new location on the Upper 580 Eighth Ave., Manhattan www.nycedc.com/RFP.For further West Side. The Chelsea-based company Filed for Chapter 7 bankruptcy information, contact Maryann Catalano has franchises in Mumbai, Mexico City protection on June 26. The filing cites at (212) 312-3969 or email and Dubai. estimated liabilities of $0 to $50,000 and [email protected]. DEALS ROUNDUP estimated assets of $0 to $50,000. ● Bespoke Education REAL ESTATE DEALS TRANSACTION SIZE 32 Court St., Brooklyn GOVERNMENT CONTRACT SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE The educational support services OPPORTUNITIES Companies that would like to have details JPMP Capital (Manhattan), $4,417.7 The Linde Group SB M&A company opened a new location in Following are selected contract of their recent transactions appear in these Fidelity Investments, Brooklyn Heights. The company also opportunities recently announced by New listings should email descriptions following BlackRock Inc. (Manhattan), has locations in Westchester, York City agencies.To learn how to sell this format to IThomas@crainsnewyork. Wellington Management Co., Manhattan, Paris and Los Angeles. goods and services to city government, visit com, with “Real estate transaction” in the Glenview Capital subject line, or enter them online at Management(Manhattan)/ www.nyc.gov/selltonyc. For a searchable Lincare Holdings Inc. ● Hall Capital Partners database of current procurement notices, crainsnewyork.com/submitadeal. Deals are Kingdon Capital $1,114.1 One Equity Partners (Manhattan) FB M&A 850 Third Ave., Manhattan visit www.nyc.gov/cityrecord. Listings are listed in order of square footage. The investment advisory firm relocated Management (Manhattan), alphabetical by category and department. TDA Capital Partners, within the Plaza district. The company COMMERCIAL Janivo Holding BV, Godrej was previously located at 597 Fifth Ave. CONSTRUCTION SERVICES ● InterMedia Outdoors Inc. signed a Industries Ltd., Grantham ● Department of Parks and Recreation seven-year lease for 9,100 square feet at Mayo Van Otterloo & Co., ● Qdoba Mexican Grill Seeks competitive sealed bids by 10:30 1040 Sixth Ave. The outdoor sports- Americorp Ventures, Trilantic Capital Management 2335 Richmond Ave., Staten Island a.m. on July 26 for the reconstruction of oriented media group will occupy space The restaurant chain opened a new on the 12th floor. The tenant was (Manhattan), Siris Capital tennis courts in Lincoln Terrace Park, (Manhattan)/MModal Inc. location in the Heartland Village Brooklyn, and in Frederick Johnson represented by CBRE Group Inc.’s Not disclosed/ $707.0 Vornado Realty Trust (Manhattan) SB M&A Shopping Center. The restaurant has Park, Manhattan. Bid documents are Brad Needleman and Jared Silverman. The landlord, Skyline Developers, was Retail condominium at 666 more than 600 locations in 42 states. available for $25 in the Blueprint Room, Fifth Ave., at 53rd Street Olmsted Center, Room 64, Flushing represented by Newmark Grubb Knight Frank’s William Cohen and Warburg Pincus (Manhattan), $693.6 Syniverse Technologies Inc. SB M&A BANKRUPTCIES Meadows Corona Park, Queens, from 8 Intermediate Capital Group/ a.m. to 3 p.m.The fee is payable by Ryan Kass. The asking rent was $49 MACH S.à.r.l. per square foot. The following listings are selected from the company check or money order to the Trident Capital Inc., W $670.0 Cielo SA SB M&A most recent available filings by companies City of New York, Parks and Recreation. Capital Partners (Manhattan), ● seeking bankruptcy protection in the To make inquiries, contact Juan Alban Pierless Fish signed a 10-year lease DFS Services/Merchant Southern and Eastern Districts of New at (718) 760-6771 or juan.alban@ for 9,000 square feet at 5600 First Ave. in e-Solutions Inc. York. Information was obtained from U.S. parks.nyc.gov. Brooklyn. The seafood supplier will use HgCapital, Veronis Suhler $660.0 The Corporate Executive Board Co. SB M&A Bankruptcy Court records available on a refrigerated space at the Brooklyn Stevenson (Manhattan), MVC (UK) Ltd. Public Access to Court Electronic Records. ● Department of Transportation Wholesale Meat Market. The tenant Capital Inc./SHL Group Ltd. Listings are in alphabetical order. Requests proposals by 2 p.m. on July 26 was represented by Kalmon Dolgin Vornado Realty Trust $428.0 Not disclosed SB M&A for independent inspection and Affiliates’ Robert Klein. The landlord, (Manhattan)/Mart Segment ● 530 W. 28th Street monitoring of paint removal and the New York City Economic Assets and Washington application operations at various bridges Development Corp., was represented in- Office Center at 409 Third 530 W. 28th St., Manhattan St. SW, Washington Filed for Chapter 11 bankruptcy citywide. Bid documents can be house by Dean Bodnar. The asking rent protection on June 26. The filing cites obtained by calling the bid window at was $24 per square foot. Selected deals announced for the week ended July 7 involving companies in metro New York. FB M&A: Financial buyer M&A represents a minority or majority acquisition of existing estimated liabilities of $10,000,001 to (212) 839-9435; a printed copy can be ● shares of a company with the participation of a financial buyer. SB M&A: Strategic buyer $50 million and estimated assets of purchased at 55 Water St., ground floor, 7City Learning Inc. signed a five-year M&A represents a minority or majority acquisition of existing shares of a company without the $1,000,001 to $10 million. Among the for a deposit of $50. The deposit is lease renewal for 7,500 square feet at 55 participation of a financial buyer. source: capitaliq creditors with the largest unsecured payable by certified check or money Broad St. This is the New York

July 16, 2012 | Crain’s New York Business | 19 nb29p20-22cl.qxp 7/13/2012 1:38 PM Page 20

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM REQUEST FOR PROPOSALS PUBLIC & LEGAL NOTICES Notice of Qualification of Alpha DD Notice of Qualification of Vital Support NOTICE OF FORMATION OF LLC. App for Authority filed with Systems, L.L.C. Authority filed with Investment Business Advisors, LLC. Secy of State of NY (SSNY) on NY Dept. of State on 6/11/12. Office Authority filed w/ Secy of State of NY 6/11/12. Office location: NY County. location: NY County. LLC formed in (SSNY) on 4/6/12. Office Location: LLC formed in DE on 6/5/12. SSNY IA on 4/18/01. NY Sec. of State NY Co. LLC formed in D.C on designated agent upon whom designated agent of LLC upon whom 3/21/11. SSNY designated agent process may be served and shall process against it may be served and upon whom process may be served mail copy of process against LLC to shall mail process to: c/o CT and shall mail copy of process business address: P.O. Box 4668, Corporation System, 111 8th Ave., NY, against LLC to principal business #90536, NY, NY 10163. DE address NY 10011, regd. agent upon whom address: Paul A. Ehrhardt, 3552 of LLC: 1675 So State St., Ste B, process may be served. IA and Reservoir Rd, NW, Washington DC Dover, DE 19901. Cert of LLC filed principal business addr.: 11191 20007. Arts of Org of LLC filed w/ with Secy of State of DE located: Aurora Ave., Urbandale, IA 50322. Patricia E. Grays, Superintendent of P.O. Box 898, Dover, DE 19901. Cert. of Org. filed with IA Sec. of State, Corps located: Dept of Consumer Purpose: any lawful activity. 321 E. 12th St., Des Moines, IA and Regulatory Affairs, Corps 50319. Purpose: all lawful purposes. Division, PO Box 92300, Washington Notice of Registration of Richard Cook DC 20090. Purpose: any lawful act. Design, LLC. Cert. of Registration FRANCINE WOLTERBEEK LLC, a filed with Secy. of State of NY (SSNY) domestic LLC. Arts. of Org. filed with Notice of Qualification of Brand Risk on 4/26/12. Office loc.: New York the SSNY on 06/04/2012. Office Management, LLC. App for Co. SSNY designated as agent of location: NY County. SSNY has been Authority filed with Secy of State of partnership upon whom process designated as agent upon whom NY (SSNY) on 6/5/12. Office against it may be served. SSNY shall process against the LLC may be Location: NY County. LLC formed in mail process to The LLC, 641 served. SSNY shall mail process to: MO on 3/5/10. SSNY designated Avenue of the Americas, 8th Floor, 200 West 16th St, 5K, NY, NY 10011. agent upon whom process may be New York, NY 10011. Profession to Purpose: Any Lawful Purpose. served and shall mail copy of be practiced by LLC: Law. process against LLC to principal PUBLIC HEARING PUBLIC & LEGAL MINERVA 25 LLC, a domestic LLC, business address: 16090 Swingley Notice of Formation of 70045 Holdings Arts. of Org. filed with the SSNY on Ridge Rd, Ste 400, Chesterfield, MO NOTICE IS HEREBY GIVEN, NOTICES LLC. Arts. of Org. filed with NY Dept. 11/22/11. Office location: New York 63017. Cert of LLC filed with Secy of PURSUANT TO LAW, that the NYC of State on 3/28/12. Office location: County. SSNY is designated as State of MO located: 600 West Main Notice of Qualification of iVillage NY County. Sec. of State designated agent upon whom process against St, Jefferson City, MO 65101. Department of Consumer Affairs will Parenting Network LLC. Authority hold a Public Hearing on Wednesday, agent of LLC upon whom process the LLC may be served. SSNY shall Purpose: any lawful act. filed with NY Dept. of State on against it may be served and shall mail mail process to: Richard K. Eng, August 1, 2012 at 2:00 p.m. at 66 6/11/12. Office location: NY County. process to the principal business addr.: Esq., 100 Lafayette St., Ste. 403, NY, Name of LLC: San Holdings LLC. Arts. John Street, 11th floor, on a petition Princ. bus. addr.: 30 Rockefeller c/o The Community Preservation Corp., NY 10013. General Purposes. of Org. filed with NY Dept. of State: from MNY Chelsea LLC to continue Plaza, NY, NY 10112. LLC formed in 28 E. 28th St., 9th Fl., NY, NY 10016. 2/21/12. Office loc.: NY Co. Sec. of to maintain and operate an DE on 5/15/00. NY Sec. of State Purpose: any lawful activity. Notice of Formation of 28-30 Avenue A, State designated agent of LLC upon unenclosed sidewalk cafe at 112 designated agent of LLC upon whom LLC. Arts. of Org. filed with NY Dept. whom process against it may be Seventh Avenue in the Borough of process against it may be served TIGHT CONTRACTING, LLC, a of State on 05/14/12. Office location: served and shall mail process to: c/o Manhattan for a term of two years. and shall mail process to: c/o CT domestic LLC. Arts. of Org. filed with NY County. Principal business Business Filings Inc., 187 Wolf Rd., Request for copies of the proposed Corporation System, 111 8th Ave., the SSNY on 06/21/2012. Office address: c/o Singh Equities, LLC, 22 Ste. 101, Albany, NY 12205, regd. agt. revocable consent agreement may NY, NY 10011, regd. agent upon location: NY County. SSNY has been W. 27th St., NY, NY 10001. Secy. of upon whom process may be served. be addressed to: Department of whom process may be served. DE designated as agent upon whom State designated as agent of LLC Purpose: any lawful act. Consumer Affairs, Attn: FOIL Officer, addr. of LLC: c/o The Corporation process against the LLC may be upon whom process against it may Trust Co., 1209 Orange St., 42 Broadway, New York, NY 10004. served. SSNY shall mail process to: be served. Secy. of State shall mail Notice of Formation of Georgia Wilmington, DE 19801. Cert. of Michael Marrone, 1221 6th Ave., NY, process to c/o Singh Equities, LLC, Greene LLC. Arts of Org filed with Form. filed with DE Sec. of State, NY 10020. Purpose: Any Lawful 22 W. 27th St., NY, NY 10001. Secy of State of NY (SSNY)on 401 Federal St., Dover, DE 19901. Purpose. Purpose: Any lawful activity. 2/27/12. Office location: NY County. REAL ESTATE Purpose: all lawful purposes. SSNY designated as agent upon NOTICE OF FORMATION OF Epoc NOTICE OF FORMATION of BLNY LLC, a foreign LLC, filed with whom process may be served and OPEN HOUSE Partners LLC. Arts of Org filed with Pineapple Developments, LLC Art. the SSNY on 3/9/12. Office location: shall mail copy of process against Secy of State of NY (SSNY) on of Org filed Sec’y of State (SSNY) New York County. SSNY is designated LLC to principal business address: OPEN HOUSE SUN JULY 22 11 TO 4 4/13/12. Office location: NY County. 6/20/12. Office location: New York as agent upon whom process against 435 Convent Ave, NY, NY 10031. SUNNY PANORAMIC RIVER/PARK VIEWS SSNY designated agent upon whom County. SSNY designated as agent of the LLC may be served. SSNY shall Purpose any lawful act. 925SF 1 BDRM CO-OP. NU KIT/BATH process may be served. PO address LLC upon whom process against it mail process to: The LLC, 1216 CENTRAL AC 24HR DRMN/CONCIERGE to which SSNY shall mail copy of may be served. SSNY shall mail copy Lexington Ave., NY, NY 10028. Notice of Qualification of Digital Risk LAUNDRY/GARAGE. PETS OK process against LLC: Imelda Vasquez, of process to David Wrobel, Esq., General Purposes. Mortgage Services, LLC. Authority MLS 901311 ASKING $745K 101 N Brand Blvd, 11th Fl, Glendale, Wrobel & Schatz LLP, 1040 Avenue of filed with NY Dept. of State on 200 EAST END AVE 90ST #9H Theotopo, LLC. Arts. of Org. filed with CA 91203. Principal business address: the Americas, 11th Floor, New York, NY 6/20/12. Office location: NY County. M. DAVID 917-273-2653 Secy. of State of NY (SSNY) on 6/5/12. 2373 Broadway, Ste 1628, NY, NY, 10018. Purpose: any lawful activities. LLC formed in DE on 11/13/09. NY Office in NY County. SSNY designated 10024. Purpose: any lawful act. Sec. of State designated agent of LLC agent of LLC upon whom process Notice of Qual. of 4 NYP Ventures LLC. upon whom process against it may be PUBLIC & LEGAL against it may be served. SSNY shall NOTICE OF FORMATION OF Kenyon filed with Sec of State NY (SSNY): served and shall mail process to the mail process to 54 Thompson St. 4th Capital Investment Holdings, LLC. Arts 5/10/12. Office in NY County. Formed principal business addr.: 2301 NOTICES Fl, NY, NY 10012. Purpose: General. of Org filed with Secy of State of NY in DE: 4/12/12. SSNY designated Maitland Center Pkwy., Ste. 165, (SSNY) on 3/26/12. Office location: NY agent of LLC upon whom process Maitland, FL 32751. DE addr. of LLC: Notice of Qualification of PLC SEVEN NOTICE OF FORMATION of RAIN County. SSNY designated as agent against it may be served & shall mail 615 S. DuPont Hwy., Dover, DE SPRINGS, LLC. Authority filed with Commercial Real Estate Advisors upon whom process may be served process to: c/o Edge Funds 19901. Cert. of Form. filed with DE Sec. Secy. of State of NY (SSNY) on LLC. Article of Organization filed with and shall mail copy of process Management LLC, 5301 Wisconsin of State, 401 Federal St., Dover, DE 05/23/12. Office location: NY County. the Secretary of State of NY (SSNY) against LLC to principal business Ave. N.W. Ste 740, Washington, D.C. 19901. Purpose: all lawful purposes. LLC formed in Maryland (MD) on on 06/01/2012. Office location: NY address: 142 Duane St; Unit 4B; NY, 20015. Foreign add: 160 Greentree 05/23/12. Princ. office of LLC: 7 County. SSNY has been designated NY 10013. Purpose: any lawful act. Dr. Ste 101, Dover, DE 19904. Arts. Notice of Formation of ASTOR Spring St., NY, NY 10012. SSNY as agent upon whom process of Org. filed with Sec. of State Of DE, PROPERTY HOLDINGS LLC. Arts. of designated as agent of LLC upon against it may be served. The Post NOTICE OF FORMATION OF W S B 401 Federal St., Dover, DE 19901. Org. filed with Secy. of State of NY whom process against it may be Office address to which the SSNY MANHATTAN LLC. Arts of Org filed Purpose: General. (SSNY) on 05/31/12. Office location: served. SSNY shall mail process to shall mail a copy of any process with Secy of State of NY (SSNY) on NY County. Princ. office of LLC: 575 the LLC at the princ. office of the against the LLC served upon him is 5/8/12. Office location: NY County. OPTIONS CAPITAL MANAGEMENT Madison Ave., Ste. 7B, NY, NY 10022. LLC. MD addr. of LLC: 526 Penny C/O the LLC 60 West 23rd Street, SSNY designated as agent upon whom LLC, a domestic LLC, Arts. of Org. SSNY designated as agent of LLC Ln., Cockeysville, MD 21030. Cert. of Ste. 842, NY, NY 10010. Purpose of process may be served and shall mail filed with the SSNY on 5/4/12. Office upon whom process against it may Form. filed with Paul B. Anderson, LLC: to engage in any lawful act or copy of process against LLC to prin- location: New York County. SSNY is be served. SSNY shall mail process Dept. of Assessments and Taxation, activity. Street address of Principal cipal business address: THE LLC 15 designated as agent upon whom to Kozusko Harris Duncan at the 301 W. Preston St., Baltimore, MD Business location is: 60 West 23rd DIVISION ST 6th FL NY, NY 10002. process against the LLC may be princ. office of the LLC. Purpose: 21201. Purpose: Any lawful activity. Street, Ste. 842, NY, NY 10010. served. SSNY shall mail process to: Any lawful activity. Notice of Qualification of Teays River The LLC, 233 W. 83rd St., Apt. 3C, Notice of Formation of SinglePoint Notice of Qualification of Warburg Investments Management, LLC. NY, NY 10024. General Purposes. Notice of Qualification of IX 1372 IPA LLC. Arts. of Org. filed with Secy. Pincus Private Equity (E&P) XI-A, L.P. Authority filed with Secy. of State of NY Holdings, L.P. Authority filed with NY of State of NY (SSNY) on 06/11/12. Authority filed with NY Dept. of State (SSNY) on 6/27/12. Office location: Notice of Formation of SOUTHEAST Dept. of State on 5/29/12. Office Office location: NY County. Princ. on 5/8/12. Office location: NY County. NY County. LLC formed in Delaware TOWERS PRESERVATION, L.P. Cert. location: NY County. Princ. bus. addr.: office of LLC: 315 Hudson St., NY, NY LP formed in DE on 5/3/12. NY Sec. (DE) on 10/15/07. SSNY designated of LP filed with Secy. of State of NY 591 W. Putnam Ave., Greenwich, CT 10013. SSNY designated as agent of State designated agent of LP upon as agent of LLC upon whom process (SSNY) on 05/04/12. Office location: 06830. LP formed in DE on 3/26/12. of LLC upon whom process against whom process against it may be against it may be served. SSNY NY County. Princ. office of LP: 60 NY Sec. of State designated agent of it may be served. SSNY shall mail served and shall mail process to the shall mail process to: c/o National Columbus Circle, NY, NY 10023. LP upon whom process against it process to the LLC at the addr. of its principal business addr.: c/o Warburg Registered Agents, Inc., 111 Eighth Latest date on which the LP may may be served and shall mail process princ. office. Purpose: To arrange for Pincus LLC, 450 Lexington Ave., NY, Ave., 13th Fl., NY, NY 10011. Principal dissolve is 12/31/2111. SSNY des- to: c/o CT Corporation System, 111 the provision of health care services NY 10017, Attn: General Counsel. office address: 111 Congressional ignated as agent of LP upon whom 8th Ave., NY, NY 10011, regd. agent by licensed health care professionals DE addr. of LP: c/o The Corporation Blvd., Ste. 115, Carmel, IN 46032. process against it may be served. upon whom process may be served. and entities under contracts with Trust Co., 1209 Orange St., Address to be maintained in DE: 160 SSNY shall mail process to c/o DE addr. of LP: 1209 Orange St., managed care organizations and to Wilmington, DE 19801. Name/addr. Greentree Dr., Ste. 101, Dover, DE Corporation Service Co., 80 State Wilmington, DE 19801. Name/addr. conduct all other acts that may be of genl. ptr. available from NY Sec. of 19904. Arts of Org. filed with the DE St., Albany, NY 12207. Name and of genl. ptr. available from NY Sec. of done by a company under Section State. Cert. of LP filed with DE Sec. 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20 | Crain’s New York Business | July 16, 2012 nb29p20-22cl.qxp 7/13/2012 1:38 PM Page 21

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ing is not going to be a change in the effective- made some very hard choices, which are giv- ness of the organization or the ability of the ing evidence of success,” Ms. Shuler said. EDC to lobby organization to operate.” City Opera Indeed, City Opera made an average of Except,of course,that the EDC will be able $11,000 more per production in ticket revenue Continued from Page 1 to lobby legally, though it will have to be more Continued from Page 1 this past season than it did at Lincoln Cen- On the heels of the settlement, the city’s transparent about its efforts. Indeed, the set- million in donations. Better yet, the long- ter—even for its shows in the smaller theaters. economic development engine is splitting tlement with the state should lead to a more struggling company ended its fiscal year on Mr. Steel said the demand for the offerings into two, with its local development corpora- powerful EDC, which will resume advocating June 30 with its first balanced budget in 12 pushed up the top ticket price to $250. At the tion functions being cordoned off from the for its projects after being silenced by the in- years. same time, a number of donors bought up all rest of its work. It has formed two new enti- vestigation. The probe began when Gov. An- The early successes are vindication for the unsold tickets for the BAM performances ties: the New York City Economic Growth drew Cuomo was attorney general,after oppo- George Steel, the company’s general manager and returned them to City Opera to resell for Corp. and the New York City Land Develop- nents of the redevelopment of Willets Point and artistic director—the target of union pick- $25 apiece—a strategy many theater compa- ment Corp. As early as Aug. 1, the EDC will complained about lobbying in connection with eters outside his home—and Chuck Wall, its nies use to attract new audiences. merge with the EGC, assuming the EDC’s the project. The EDC agreed to suspend its chairman of the board. The duo put together “The success of this past season is a testa- name. The organization will be able to lobby, lobbying while the investigation played out, a controversial turnaround plan more than a ment to City Opera’s resilient leadership, giving the EDC an advocacy ability it has which hamstrung its ability to fight for key year ago that centered on leaving City Opera’s commitment to high-quality programming lacked since the attorney general’s investiga- projects, including the redevelopment of the longtime home at Lincoln Center, slashing and capacity to attract new,diverse audiences,” tion began several years ago. Kingsbridge Armory in the Bronx. union contracts and reducing the scope of its Kate Levin, the city’s arts and cultural com- The Land Development Corp. will take While the EDC could provide information offerings to what the company could afford.In missioner, said in an email. over the EDC’s local development corpora- to elected officials about its plan to turn the its last full season at Lincoln Center in 2007- tion role.LDCs are nonprofits that can obtain landmarked armory into a shopping mall and 08, City Opera presented 13 productions, And now for the next act land from municipalities without going the potential impact of the project,it could not compared with its current four. Mr. Steel’s work is far from finished. He has through the competitive bidding processes lobby for it.The City Council rejected the plan “We’ve come out of it in much better shape hired consultants to help identify candidates to that would otherwise apply. They are not al- in December 2009 over concerns that the jobs than we’ve been in a long time,”Mr.Steel said. increase the size of the opera’s 26-person board. lowed to lobby as a result of a decades-old law would not pay high-enough wages. Subscription sales for the coming season are Fundraising is still tough, and only about 14% designed to make sure their unique power to The Willets Point opponents whose com- on track to exceed last year’s, when union scuf- of the company’s $14 million operating budget receive land while bypassing traditional bid- plaint launched the lobbying investigation fles postponed marketing and ticket sales, City this year is expected to come from ticket sales. ding rules does not lead to corruption. called the reorganization a cosmetic move Opera officials said.The company will sidestep The endowment has shrunk to around $5 mil- The new LDC won’t have any permanent that changes little.“This latest sleight of hand the less-conventional venues it chose for per- lion, from $55 million several years ago. staff; it will be run day-to-day by staff mem- reminds us of what former New York Gov.Al formances last spring, including John Jay Col- And of course, the musicians’ and singers’ bers of the EDC who are not in positions Smith once said: ‘No matter how thin you lege and El Museo del Barrio. In a sign of sta- unions are still hurting from a deal that cut jobs where they influence legislation. A separate slice it,it’s still baloney,’”said a spokesman for bility, City Opera recently signed a deal to and slashed their earnings.“From the perspec- board made up of administration officials will Willets Point United. present the bulk of its season for the next three tive of the 27 chorus members who took a sev- oversee the organization. But some land-use lawyers said the re- years at the Brooklyn Academy of Music,where erance package,it’s terrible,”said Alan Gordon structuring was an acceptable solution to the it staged two operas last season, and New York of the American Guild of Musical Artists. ‘Still baloney’ EDC’s lobbying conundrum. City Center, where it got its start decades ago. “From the perspective of City Opera, they are Whenever the EDC is involved in land “I’m not offended by what they’re doing at As it did last season,City Opera will present selling out all their performances.” disposition,the land will first be transferred to all, as long as the wall is clear between what 16 performances of four operas, although Mr. And Mr. Steel’s perspective? the LDC, which will in turn hand it to over to one group can do and what the other can do,” Steel plans to increase the offerings to six op- “City Opera is not what it was in some good EDC to do with it as it sees fit. The EDC’s said Kenneth Fisher, a land-use attorney and eras by 2016.The next season will open at BAM ways and in some bad ways,”he said.“We want board will vote on the restructuring this week former city councilman. with a new staging of Thomas Adès’ Powder to be bigger and are working to grow the com- and is expected to approve the changes. Speaking of the Industrial Development Her Face on Feb. 15. Its last production of the pany. But we are right on target for the mis- “EDC is taking the technical steps neces- Agency, which administers incentives for the season, Jacques Offenbach’s La Périchole, will sion of the company,which is to bring cutting- sary to ensure that it can both comply with the city and is also an independent entity staffed run from April 21 to 27 at City Center. edge opera to everyone in the city.” Ⅲ law and do what it needs to do to promote eco- by the EDC, Mr. Fisher added, “EDC has a Arlene Shuler, president of City Center, nomic development,” said an EDC pretty good history of honoring the separation said the three-year commitment made by City LISTEN to a discussion at spokesman. “The net result of the restructur- of the IDA and the EDC.” Ⅲ Opera was a sign of its confidence. “They CrainsNewYork.com/podcasts

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22 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0023-NAT-CCI-CN_-- 7/13/2012 7:21 PM Page 1

told them,‘Thanks,but no thanks,’” Flintlock’s band of outsiders he said. “Every one of them, I’m Schrager sure, needs the business, but they don’t want to incur the union Continued from Page 1 officials questioned the quality of egated to affordable housing or oth- problems that they’d have if they Continued from Page 3 more. Unions had a firmer lock on the firm’s work. One of Stephen er small projects. As the nonunion went out and did jobs nonunion.” bility,”said Bjorn Hanson, division- the industry, and nonunion builders Weiss’ firms had sold two apart- firms gained experience, they mi- The Weiss brothers said they’ve al dean of New York University’s did not have the expertise to handle ments to Ms. Wooten and provided grated into Manhattan, winning put out feelers to union subcontrac- school of hospitality and sports large, complex projects. free office space for her campaign midsize jobs. tors,but not recently.They said such management, who has known the But the 15-year-old Flintlock headquarters. “It’s taken almost 10 years to companies wouldn’t be able to meet hotelier since the 1980s, when Mr. has active permits to construct or In 1997, the brothers established bring the nonunion subcontractors their price points even if they were Schrager owned Studio 54. substantially alter nine buildings on Flintlock Construction Services, up to the level that they have to be willing to bid. Flintlock would Though Mr. Schrager would not the island nearly that size or taller, beginning a gradual transition away to compete with union quality,”said rather stick to what has made it suc- describe himself as catering to the mostly in midtown. Its success has from affordable housing and other Stephen Weiss, Flintlock’s director cessful than try to get in on a mas- mainstream now, he said others do put it in the crosshairs of organized work they did with Mr. Headley. of finance and development. sive project like the Related Cos.’ see him that way. “A lot of people labor, which contends that the firm Along with other big nonunion And when the boom turned to 46-story, 1.7 million-square-foot thought I was selling out when I did succeeds by undercutting union players like Cava Construction and bust, nonunion firms were able to Coach tower at Hudson Yards. the deal with Marriott,” said Mr. wages and benefits. Hudson Meridian Construction, pick up unemployed union workers, “I don’t know that that building Schrager, who bristles at the sugges- Flintlock’s bread and butter is Flintlock has eaten away at the mar- further increasing their capacity. could be done nonunion,” said tion.“I’m more mature now and real- limited-service hotels, developed ket share of union construction Flintlock’s superintendent on the Stephen Weiss.“I don’t see us doing ize that I was leaving a lot of money mostly by out-of-towners, but it is firms. Its website boasts that Flint- Lexington Avenue hotel project,for it nonunion. And I can’t think of on the table by not having a brand.” also making inroads with local own- lock was the first nonunion compa- example, is working his first anyone else who could.” For one thing, he points out that ers who traditionally build union, ny in the city to construct buildings nonunion job after a long career in They said projects of a million- creating the Public brand has im- causing further worry in labor cir- taller than 11, 24 and 31 stories and union construction. plus square feet should remain proved his ability to attract institu- cles. The company is turning a 17- to use a tower crane. With developers desperate to cut union because they are complex and tional funding. Lenders are more story former Salvation Army board- The firm also maintains ties to costs any way possible in a new eco- require a huge amount of manpow- willing to back such projects, he ing house on Gramercy Park South the Weiss family’s developer roots, nomic environment,nonunion con- er. Also, as projects increase in size, said, because they can be easier to into high-end condominiums for struction—and its 20%-plus dis- the benefits of being nonunion dis- cash out.Having an exit strategy like Zeckendorf Realty,perhaps the first count off union work—has become sipate. an IPO is something Mr. Schrager of the city’s longstanding union de- an increasingly viable option. “It’s an asymptote,” said Stephen said he is considering for his fledg- velopers to cast its lot with a The Weiss brothers say they are Weiss. “There is a size at which ling Public brand,for which he is ne- nonunion firm. able to bid 25% to 40% lower than there is an economy of scale where gotiating deals around the world. With big-time owners express- union general contractors because the difference between union and ing a new willingness to consider they are not constrained by union nonunion shrinks.” Sophisticated design elements nonunion work, Flintlock’s growth work rules. For example, it costs $1 Speaking of the savings from us- The Public in Chicago, like Mr. may be constrained only by the million a year to run a hoist on a ing a nonunion hoist, he said, “In a Schrager’s earlier hotels, has sophis- dearth of nonunion subcontractors union project, but only $100,000 on $40 million project, that’s very sig- ticated design elements and features with the skill to take on complicat- theirs, the brothers contend. “Our nificant, but in a $200 million proj- a destination restaurant, the Windy ed projects. hoist is run by a person who is ect, not so much.” City’s storied Pump Room, run by “I’d look at union buildings going trained; it’s a $15-an-hour job,” said celebrity chef Jean-Georges Von- up a few years ago,and I was amazed Stephen Weiss. “It goes up and Paying far below the union rate gerichten. Room rates start at about at how fast they would go up and down. You don’t have a master me- Construction unions have had $200 a night during the summer, al- how coordinated it was,” said An- chanic; you don’t have a master elec- the company on their radar for years though the same hotel room in New drew Weiss, Flintlock’s managing trician.” but have been slow to respond to its York could probably command member.“I’d say,‘We could never do Their subcontractors also do not recent gains.The carpenters and la- twice as much.The property also in- it.’ But we’re there now. We’re the pay union wages and benefits,which borers are handing out fliers at the troduced a new riff on room service, same time period, if not faster.” cuts costs considerably. In the past West 42nd Street site that claim promising to deliver meals within 10

Flintlock’s roots date back four buck ennis few years, Flintlock has focused on Flintlock’s subcontractors are un- minutes. A paper bag with the order generations. The firm is run by Mr. hotels, which the company often dercutting union wages and bene- is placed outside the guest’s room, Weiss, 51, and his brother, Stephen Its success has builds for developers from “right to fits. One tradesman who has eliminating the need to tip. “Chip” Weiss, 55, whose great- work”states who are unfamiliar with worked on several Flintlock job sites The service, called Pump Ex- grandfather built single-family put it in the union labor and are attracted by the said that carpenters earn from $15 press, has already inspired a copycat homes in the outer boroughs. They firm’s relatively low costs. to $40 an hour,without any benefits. in the Four Seasons Hotels, which got their start working with their fa- crosshairs of “What’s made Flintlock success- Compensation for a union carpen- recently announced a 15-minute ther and grandfather in the early ful is they established a niche in hos- ter is about $83 an hour, including room-service option. 1980s as developers. In the early organized labor pitality and they stuck to it,” said benefits. Conceiving ideas that eventually 1990s, the duo branched out on Kevin Lorenz, president of Al- “The carpenters working on become industry standards is among their own, adding contracting to lied/CMS Inc.,a construction man- Flintlock projects continue to work Mr. Schrager’s greatest strengths. their portfolio. At first they built agement services firm that works under substandard conditions with Now that he has the ear of corporate union, but when they started to get with Flintlock. “They know the re- low wages,no health care or any oth- brass at Marriott, he is making un- affordable-housing contracts in the quirements of the major flags—the er essential benefit,” said a solicited suggestions on how to in- early 1990s, they turned to holding ownership stakes in three of Hiltons, the Hyatts. They’re up spokesman for the District Council crease the room rates at the compa- nonunion labor. the hotel projects it has underway.At front about what a project will cost, of Carpenters. ny’s budget chain, Courtyard by “We did a lot of affordable hous- a time when construction in the city and they’re very accurate.” The carpenters’ union is also Marriott, by introducing classier ing,where every penny counts,”said is generally slow, Flintlock is doing The Zeckendorf job (about meeting with employees of Flint- food and beverage service. He rec- Andrew Weiss. “We ended up more work than ever. Its best 12- which neither Zeckendorf Realty lock subcontractors to help build ommended an operator who could nonunion not as a goal but by acci- month stretch was from 2008 to nor the Weiss brothers would com- their case that the companies un- make that happen,“someone I think dent. You just couldn’t make the 2009, when revenue hit about $75 ment) suggests that the company is dercut union pay packages.It’s a no- is really great,” he said. projects work any other way.” million, according to the company ready to ascend to new heights.Ma- toriously difficult industry to or- “Ian is great at design and pro- website. The Weiss brothers would jor union developers are looking at ganize, because many of the moting a property, bringing in rev- Doing more work than ever not discuss current revenue, but said using some nonunion labor, and a workers are believed to be undocu- enues and making these projects In 1993,they formed Diversified that they will do even better this year. company like Flintlock could be an mented, so for now the union reps very exciting,” said Richard Born, a Flintlock, a joint venture with De- “To us, Flintlock’s ability to win option. But construction experts are just gathering information. principal of BD Hotels who was Costa Headley, then a Democratic work is a poster child for how much and the Weiss brothers said there are Even if the unions could mount an briefly a partner with Mr. Schrager Party operative from Brooklyn who more we need to accomplish in re- limits to the firm’s growth, though organizing campaign, they say in a proposed hotel that eventually helped them win government af- ducing costs to be competitive,”said they offer different reasons. union contractors wouldn’t be able became 40 Bond St., a residential fordable-housing contracts that had Louis Coletti, president of the “When you see their business to hire the workers because many building where Mr.Schrager resides preferences for minority firms. Di- Building Trades Employers’Associ- growing, the base of nonunion sub- lack proper work authorization with his wife and 2-year-old son. versified drew scrutiny when Mr. ation, which represents union con- contractors that can build a job safe- documentation. But Mr. Schrager also has a team Headley pressured a community tractors. “They start in affordable ly, build it with quality and build it Attention could soon turn to the of 25 in his company,including part- housing organization for building housing, they learn, and they pro- on schedule gets constrained,” Mr. developers that use nonunion com- ner Michael Overington,who began work, according to a 1998 Daily gressively go into different markets, Coletti said. panies like Flintlock. The carpen- his career with Mr. Schrager as an News article. winning larger and larger work.” Ron Berger,executive director of ters say that they are involved in a engineer at Studio 54 and now heads Priscilla Wooten, a council- Nonunion building grew quietly the Subcontractors Trade Associa- new coalition of unions that is mak- development at Ian Schrager Co. woman whom Stephen Weiss and during the city’s construction boom tion, an alliance of union subcon- ing plans to target developers. “When I first started out, I sup- Mr. Headley supported, advocated in the middle of the last decade. tractors, said that union painter, The Weiss brothers remain un- pose I was a one-man band,”said the for the company when city housing Unions were at or near full employ- electrician, plumber and sprinkler fazed. hotelier. “But I’m not anymore.” Ⅲ ment, leaving smaller jobs in the contractors have received calls from “People don’t choose us because LISTEN to a discussion at outer boroughs for nonunion com- Flintlock in recent months asking they love us,” Andrew Weiss said. LISTEN to a discussion at CrainsNewYork.com/podcasts panies that had previously been rel- them to bid on jobs. “Our people “It’s the price.” Ⅲ CrainsNewYork.com/podcasts

July 16, 2012 | Crain’s New York Business | 23 20120716-NEWS--0024-NAT-CCI-CN_-- 7/13/2012 7:14 PM Page 1

for the Calvin label—a coup, con- Murray Carret & Co. in a recent re- sidering Mr. Reyes’ background at search report, noting that the sec- Warnaco swims in rough waters houses including Michael Kors and ond half of the year will offer War- Ralph Lauren. naco a chance to shine with more Continued from Page 4 ing around $41 last week—declined “Yes,she’s a first-time CEO, but Yet both new execs will have a on-trend styles.The firm will debut two of the biggest cotton prod- to comment for this article. everyone has to become a CEO for tough sell persuading consumers to a metallic line of colored denim this ucts—so that was a big challenge for the first time,” he said, adding that shop Calvin again. Sales fell in the fall. them,” said Diana Katz, a retail an- Key appointments her time at Warnaco has groomed spring when Warnaco missed an As for Speedo, though the alyst at Lazard Capital Markets, Fixing the missteps is a tall order her for the post. “She’s a real busi- opportunity with bright-colored Olympics should help to promote adding that Warnaco has also strug- for Ms. McCluskey, who was pro- ness driver.” jeans. Colored denim, probably the the brand, the benefit likely will be gled with declining markets in Chi- moted from chief operating officer Already, Ms. McCluskey has season’s hottest must-have item, small.In 2011,Speedo products ac- na and Brazil, two big growth areas in February after eight years with made two key appointments. In could be found at many of Calvin’s counted for just $229.3 million of in the past. Warnaco. Executive recruiter Kirk March, she hired Karyn Hillman rivals, including Guess, but most Warnaco’s total sales. The clothier A representative from the com- Palmer described Ms.McCluskey,a from Gap Inc.to serve as chief mer- hues were notably absent at Warna- declined to comment on pre-orders pany, whose stock price has lost veteran of Liz Claiborne Inc. (now chandising officer of Calvin Klein co’s key retailers. of the Fastskin3 or on upcoming about a third of its value over the Fifth & Pacific Cos.), as up to the jeans and accessories, a new posi- marketing events tied to the suit. past 12 months—shares were trad- task, noting that she’s dealing with tion. In addition, Warnaco an- Trying to be more on trend “You would hope [the the same European issues—con- nounced last week that fashion de- “Colored denim was only 10% of Olympics] help,” Ms. Katz said, LISTEN to a discussion at sumer spending has dropped—as signer Brian Reyes had come on total denim sales in spring,” wrote “but historically,they’ve never been CrainsNewYork.com/podcasts all global retail execs. board to head up underwear design Eric Beder, a retail analyst at Brean a big contributor.” Ⅲ LIBOR scandal

Continued from Page 6 manipulating its submissions to benefit its bottom line. Plaintiffs would have to tie losses directly to banks colluding to fix LIBOR. “It is hard to see how institutions could influence LIBOR for gain,” said a business leader in New York. “It would involve some great con- spiracy that there does not seem to be evidence of yet.” Mr. Schneiderman could sub- poena emails looking for dirty laun- dry. But he faces an added wrinkle: Many of the attorneys representing banks once worked in the attorney general’s office, one reason half a dozen lawyers contacted for this ar- ticle wouldn’t comment. Their ex- perience would give banks insight into the strategies at his disposal. Powerful tool Mr. Schneiderman has already gone after banks using his office’s most powerful tool: the Martin Act of 1921 that former Attorney Gen- eral Eliot Spitzer employed with great effect. Last year, Mr. Schnei- derman seized documents from a handful of natural-gas companies and blocked a proposed settlement between Bank of America and Bank of New York Mellon over billions in sour mortgage bonds. He also launched an investiga- tion into how banks bundled and sold mortgage securities during the boom. And in February, after gain- ing national attention for joining the Obama administration’s mort- gage-fraud task force, he sued Bank of America, JPMorgan Chase and Wells Fargo for alleged fraudulent and deceptive foreclosure practices. The political upside to a LIBOR investigation by Mr. Schneiderman may be limited.The major television and cable news networks have so far spent a combined 12 minutes on the issue during their morning broad- casts, according to a Media Matters report released last Friday.An inves- tigator’s first challenge would be to explain the LIBOR scandal and why New Yorkers should care about it. “Its name alone smacks of being European,” said political consultant Michael Tobman. “And LIBOR is probably more difficult to under- stand than the Higgs boson.” Ⅲ

24 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0025-NAT-CCI-CN_-- 7/13/2012 2:22 PM Page 1

INSIDE HELLUVA TOWN Source Lunch Math Power museum adds up for bars Glen Whitney PAGE 26 Running out of juice? No worries. Out and About New Yorkers will soon be able to Tasting event in Madison charge their phones at more than a hundred bars. Midtown-based Square Park PAGE 27 company goCharge recently rolled out 55 of its cellphone-charging kiosks in bars around Manhattan, and plans to add another 50 by Labor Day. Most will be in Manhattan, but a few will be in Brooklyn and Hoboken, N.J., said goCharge IT’S A SMALL WORLD: CEO Robert White, who David founded real estate data Walke, firm RCA Analytics, has a who calls collection of 630 miniature buildings. the kiosks “ATMs that dispense power.” Each charge costs from $3 to $5, but some sponsored kiosks offer them for free. The bars range from Billy Hurricane’s on the Lower East Side to American Trash on the Upper East Side, but people low on power can find all the locations with a goCharge iPhone app. Mr. Walke will also have kiosks in 150 bars in Boston and Miami by Labor Day, creating a 255-bar network that he will then pitch to advertisers. —matthew flamm Midday muse Inspired by the New York Public Library’s “Lunch Hour NYC” exhibit, Chef David Chang (below) is co-hosting a series of lunch discussions with the NYPL at his upscale midtown eatery Má Pêche.The talks, called 56th Street Round Tables, will cover topics from music and art to publishing. “We wanted to do a lot more special events at Má Pêche because of its size,” said Sue Chan, a spokeswoman for the chef ’s Momofuku restaurant empire. “The Art of Curation” on July 27 will feature executives from Carnegie Hall and the Museum of Modern Art. Rebecca Federman Building on a dream , co-curator of “Lunch Hour,” will lead “New York City Street Carts” on Aug. 17. Tickets for each are $35, which includes lunch. A few serious collectors pay high prices for replicas Mr. Chang’s relationship with the library began last year, when of properties that have personal or historical significance

his Momofuku Ssäm Bar hosted a buck ennis dinner based on the menus of the 1964 World’s Fair. “This gives us a chance to work with a restaurant BY THERESA AGOVINO MINIATURES company that has a lot of name Robert White’s recognition,” said Ms. Federman. obert White was thrilled when a London landmark he’d coveted for years hit collection from “They help promote the exhibit, the auction block last month.The 47-year-old placed what he considered to bottom to top and we help them generate ideas be a generous offer on the building so he could add it to his already extensive for discussion.” Least expensive —lisa fickenscher collection of properties. ¶ And Mr. White knows how to value buildings. Twelve years ago, he founded RCA Analytics, a firm that provides data on real estate markets around the globe. No matter: Someone bested his offer by $7 Metal model of the Rotunda a whopping 50%.The buyer agreed to pay $1,450 for a 3.5-inch-tall 1920s at the University of , brass replica of the Bank of England building. A meeting about actual Mr. White’s alma mater buildings prevented Mr. White from logging on to his eBay account to check on the bidding. ¶ “I still get so mad when I think about it, because I would have gone higher,” said Mr. White, who has Most expensive Ra collection of 630 miniature buildings with prices ranging from $7 to $20,000. “Bank of England buildings are rare.” ¶ So are the people who can appreciate Mr. White’s frustration.The main $20,000 group for miniature-building enthusiasts, the Souvenir Building Collectors Society, has a mere Three-foot ceramic replica of 200 members, and, not surprisingly, about half are real estate See BUILDING on Page 26 the Flatiron Building buck ennis

July 16, 2012 | Crain’s New York Business | 25 20120716-NEWS--0026-NAT-CCI-CN_-- 7/13/2012 2:22 PM Page 1

SOURCE LUNCH: Building on a dream GLEN WHITNEY by Miriam Kreinin Souccar Continued from Page 25 building and then look at the one ier during the mid-19th century, professionals. The rather limited next door and try to see why one European companies began churn- interest in tiny replicas means that sold for more than the other.” ing out handsome replicas of that these collections—occasionally the Don’t expect those neighbors to continent’s most famous attrac- subject of museum shows—are un- be side by side as they are in the real tions for tourists seeking serious likely to wind up on the block at cities, however. Mr. White is the mementos. Those are expensive Exec hopes math Sotheby’s bringing in big bucks. master of this mini-universe and and beyond the means of most col- Even a truly rare miniature build- buildings stand where he places lectors of souvenir buildings. ing, like a glass version of 40 Wall them—actual geography be In the U.S., the trade took off museum adds up St. made by Tiffany & Co. or a be- damned. These days, the buildings when skyscrapers began sprouting jeweled 10-inch model of Festival are set up chronologically, so that up and travelers snapped up any rep- Hall in St.Louis made for the 1904 small buildings from the early 1900s resentation of the new urban phe- len Whitney, a 43- forced math exposure over the course World’s Fair,is not likely to top five are on one end. The later buildings nomenon. Some were high-quality year-old math profes- of kindergarten to 12th grade. This figures. slowly get taller, ending with a 20- lead reproductions, though most sor turned hedge fun- is math in a whole number of ways. inch replica of the Burj Khalifa in were made of cheap metal or, later, der, will soon realize a The simplest way is just the under- An $80,000 pursuit plastic and doubled as saltshakers, dream. In December, standing that there is a repeating No,these collections are labors of letter openers, even ashtrays. The Ghe will open the Museum of Mathe- pattern, and that is the root of math- love, whether a reminder of simpler Even a truly rare best models were often given to matics, or MoMath, a state-of-the- ematics. times or a three-dimensional trave- those connected with the building art interactive museum at 11 E. 26th logue and work history. For Mr. building replica to commemorate its completion. St.The executive director created the How did you raise all the money for the White, the pursuit, which he esti- Some of the most sought-after museum in an effort to excite Amer- museum? Did you hit up your hedge fund mates has cost him about $80,000, is not likely to miniatures didn’t start out as col- ican youth about the sometimes in- friends? is both quixotic and practical. lectibles. Around the turn of the scrutable field. He left his lucrative There were a number of things we He knows he’ll never really own top five figures previous century, savings banks job as an algorithms manager at had to do: Build a board of trustees, the real Bank of England building, began handing out coin banks quantitative hedge fund Renaissance raise money, find advisers, find vol- since it is impossible to imagine the shaped like their buildings to en- Technologies four years ago and set unteers. Like anything, it’s like rip- British government selling it. “I courage customers to sock away out to build the cultural institution, ples in a pond. You start with the might be able to buy the Greek Par- money for a rainy day. raising nearly $24 million. people you know. The first rule was liament building now,” he joked. Dubai—the world’s highest sky- Joseph Kopitz, who spent 24 go to every [relevant event] and tell Yet his hobby is a less expensive scraper. In between are some of the years working in the banking in- What do you want MoMath to achieve? everyone you see and meet about this alternative to developing actual pricier treasures, like the Frank dustry, started his building collec- The mission is to change percep- idea. buildings—a future goal for the Vir- Lloyd Wright-designed Johnson tion by acquiring the fancy coin re- tions about mathematics.One of our ginia native. “If I buy a building I Wax Research Tower in Racine, ceptacles.And though he branched trustees put it very simply: If we can Did you meet your fundraising goal? don’t like, I’m out a couple of nice Wis.,which doubles as a lighter and out into skyscrapers, the banks re- show people just three things—that We have one area of critical need: dinners,”said Mr.White,who start- set him back about $800. main the favorites of his 1,000 or so math is fun, that it’s beautiful and exhibit sponsorship. Our exhibits are ed his collection about seven years Even though Mr. White ignores pieces because they recall a time that with it you can get a very innovative, so we got ago. “You make a mistake at devel- geography, his collection does have when savings trumped conspicu- really good job—then WHERE estimates of how much they opment, you could be bankrupt.” rules. All the models are of real ous consumption. we’ll be a complete would cost.But the fabrica- The most expensive piece in his buildings, they are architecturally success. THEY tors said they’ve never built collected cityscape: a $20,000 scaled, and there are no duplicates. Sources of nostalgia DINED anything like this before.As three-foot ceramic model of the There are some exceptions, of “There used to be little old ladies Is the United States in DB BISTRO a result,the quotes came out Flatiron Building made by English course,like the pre-fire model of the who didn’t make much money but trouble because our kids are MODERNE much higher than the esti- 55 W. 44th St. artist Timothy Richards. Most of Towering Inferno building that he had $300,000 in a savings book,” not up to par in the subject? (212) 391-2400 mates had been. We will his collection, though, consists of purchased for $150 because he loved said Mr. Kopitz, president of the Yeah, it’s clear, and you www.danielnyc open with about 35 of the miniature metal skyscrapers that the 1970s disaster movie. Bank Souvenir Building Collectors Soci- don’t have to take it from .com/dbbistro planned exhibits. But we .html#intro cost an average of $100. A large models are in an office conference ety. “Saving was just what people us.I was sitting down with still need to raise another AMBIENCE: chunk of them sit in his office room, while miniatures of airports, did, and we don’t do that anymore.” someone from Microsoft Daniel Boulud’s $1.5 million to $2 million to bullpen on a table. Mr. White stadiums,theaters and the like are in Architect Ronnette Riley also Corp. just a couple of upscale French complete the vision and get wants the towers there because they the main office bullpen, separate gets nostalgic about the 3,500 weeks ago, and they said bistro packs in a to 45 exhibits eventually. noisy lunch crowd come in handy when assessing from the skyscrapers. His Upper miniature buildings in her office. last year they had 2,500 of well-heeled transactions on real buildings. West Side townhouse is reserved for When she looks at Istanbul’s Hagia positions they couldn’t fill business What is the target age for the “They are educational,” he said, exhibiting the miniature homes and Sophia, she fondly remembers the because they can’t find executives museum? picking up a model of a Detroit churches he also collects. friend who gave it to her.The pyra- people with sufficient WHAT THEY ATE: The people we try to building that just sold for $5 a Building models didn’t start out mid from the Yucatán brings back math and computer sci- Chilled potato keep in mind as we’re cre- square foot. “We can look at one as kitsch.When travel became eas- memories of a trip to Mexico. ence skills. Raytheon leek soup, lobster ating things is fourth salad “My buildings have sentimental Corp. told us they have through eighth grade.Kids Chilled tomato value,” Ms. Riley said. 4,500 open positions be- soup, duck plat in elementary school are A JEWEL OF A BUILDING The only two towers she’s had cause of the same thing. du jour, baked often excited by math and specially commissioned represent chocolate mousse science, and the kids who MOST PEOPLE WHO WANT miniature building What is the coolest thing at Tab: $151.50, significant aspects of her career. including tax and are good at it are heroes. models shop eBay. Veronica Mainetti One is a model of the famous Lip- the museum? tip Then something happens commissioned to fashion one of the stick Building on Third Avenue by That’s a tough ques- in middle school, where Flatiron Building from sterling silver—for renowned architect Philip John- tion. My favorite is called suddenly it’s not cool to be $100,000. son, whom she was working for Feedback Fractals, probably because good at math and science. We want Ms. Mainetti, who is president of the U.S. when he designed it.The other is a of how simple it is. There are four to target that age and have a place arm of Rome’s Sorgento Group, ordered the likeness of the Empire State Build- video cameras that are all focused on that’s really cool, a place where it’s 12-inch replica after the real estate investment ing, her office’s home for 25 years. this screen with which you can cre- safe to express your love for mathe- company bought a minority stake in the In fact,she has more than 100 repli- ate an incredible array of striking im- matics. landmarked tower in 2005. Sorgento has since cas of the icon, with perhaps the ages that seem to well up out of amassed a majority stake. most whimsical being an (unused) nowhere. Were you stigmatized for loving math “The Flatiron represents New York,” Ms. doggie chew toy. She hosted two as a kid? Mainetti said. “It is just so beautiful.” shows of her memorabilia in the Is this actually math? There were other folks in my high

That’s especially high praise from a woman marco delogu building’s lobby. CNN even fea- People ask us that a lot about our school that got, shall we say, ribbed who’s familiar with magnificent buildings. Sorgento’s portfolio is stacked tured the exhibit in a segment. exhibits because we’re bringing out for being the brainiac, and I was very with elegant trophy properties in Italy, France and Luxembourg, and at one While viewers around the globe these aspects of math that people, conscious that I didn’t want that to may have seen the collection, the unfortunately and sadly, don’t get to happen to me. So I tried to lie low a time the firm owned a piece of the Chrysler Building. Though she’s commissioned Bulgari to create a few of those in miniature man managing the Empire State see in their whole 2,000 hours of little bit. as well, none has affected her like the Flatiron, which was the world’s first Building has not.Anthony Malkin, steel-frame skyscraper. She even collects less illustrious miniatures of the whose family controls the partner- ship that owns the skyscraper, isn’t INSIDE TIP: If you can’t get a dinner property, as well as mementos like cups and plates that carry its especially interested in collecting distinctive, triangular image. “When I’m home, when I’m in Italy … this reservation, sit at the bar area’s communal representations of the property. “I —THERESA AGOVINO way I can see it everywhere,” she said. have my hands full just running it,” table and pray for a cancellation he said.

26 | Crain’s New York Business | July 16, 2012 20120716-NEWS--0027-NAT-CCI-CN_-- 7/13/2012 2:23 PM Page 1

OUT AND SNAPS NY MUSICAL THEATRE FESTIVAL RAISES CURTAIN ABOUT by Eva Saviano and Miriam Kreinin Souccar

CULTURE FIX CAREER BUILDERS MONDAY, JULY 16 TUESDAY, JULY 17 The Town Hall opens its The Japan External Trade sixth annual Summer Organization, or JETRO USA, will Broadway Festival with host JAPAN BUSINESS FORUM: NEW SINATRA SINGS SINATRA. INITIATIVES FOR SUSTAINABLE GROWTH. Frank Sinatra Jr. Attendees will learn about policy and his octet will changes and business opportunities pay tribute to prompted by Japan’s recovery efforts Frank Sinatra since the earthquake and tsunami of Sr. by March 2011. Topics of conversation performing include Japan’s continued reconstruction

such hits as projects, special recovery-zone matthew murphy “Strangers initiatives, government subsidies and Actor CORBIN BLEU (left), recently seen on Broadway in Godspell peter zielinski james in the renewable energy policies. The event is but best known for the High School Musical movies, and Broadway Shubert Organization co-CEO PHILIP SMITH (seated) and (from left) director Night” and at 1 p.m. on the second floor of the actor BEN VEREEN, at the 2012 New York Musical Theatre Festival MICHAEL MAYER, La MaMa Artistic Director MIA YOO, Shubert co-CEO “New York, New York.” The festival McGraw-Hill Conference Center, 1221 opening-night gala on July 9. Now in its ninth year, the festival has ROBERT WANKEL and FRANK CARUCCI, president of La MaMa’s board of been called the “Sundance of musical theater.” will also run on the following two Sixth Ave. between West 48th and West directors, at a gala to celebrate La MaMa’s 50th anniversary season. Mondays. The Sinatra event takes place 49th streets. Admission is free. For more at 8 p.m. at The Town Hall, 123 W. 43rd information, contact Daiki Nakajima at St. Tickets are $55 and can be purchased (212) 819-7747 or visit www.jetro.org. by visiting the box office, going to www.ticketmaster.com or calling (212) THURSDAY, JULY 19 840-2824. The New York Public Library’s Science, Industry and Business Library presents WEDNESDAY, JULY 18 BUILDING YOUR PROFESSIONAL NETWORK The Society of Illustrators hosts BIG CITY WITH LINKEDIN AND USING IT IN YOUR JOB DARE2DRAW. The 90-minute dynamic SEARCH. Recruiter and career coach John figure-drawing event will feature live- Crant will demonstrate how to use a action models, props and a “quick LinkedIn.com profile to grow business draw” contest. Special guests are opportunities and to network. The free Simon Fraser and Nathan Fox. The seminar will take place in the library’s session takes place at 6 p.m. at 128 lower-level conference room at 6 p.m. E. 63rd St. Admission is $10, payable at The library is located at 188 Madison the door. For more information, visit Ave. For more information, call www.societyillustrators.org or call (212) (917) 275-6975 or visit 838-2560. www.nypl .org/smallbiz.

DON’T MISS TASTING EVENT bell malinda Former New York Giant ROMAN OBEN and KAREN NETHERSOLE, chief executive of TUESDAY, JULY 17 branding company Full Circle New York, host The Network Journal’s 15th annual “40 Under mcmullan patrick The Madison Square Park Conservancy hosts 40” awards dinner. Honorees included JANNA ANDREWS, a doctor at SUNY Stony Brook IFC Films President JONATHAN SEHRING and CELEBRATE FLATIRON CHEFS.The tasting event will Winthtop University Hospital, and SHANNON LANIER, correspondent and senior producer actress FREIDA PINTO at the New York opening feature food and beverage offerings from 27 chefs at Black Enterprise TV. of the film Trishna July 10 at the IFC Center. and restaurants. Citigrass, a bluegrass band from Brooklyn, will perform. All proceeds fund the park’s maintenance, horticulture and programs. The event will take place in Madison Square Park, Madison Avenue between East 23rd and East 26th streets.Tickets are $275 for early admission at 5:30 p.m. and $175 for general entry at 6:30 p.m. Go to www.madisonsquarepark.org or call (212) 538-0018.

OPENING FUNDRAISERS THURSDAY, JULY 19 THURSDAY, JULY 19 The Eli Ping gallery presents its Join Envirolution for its GREEN COLLAR CRUISE inaugural exhibition, REGINA REX: aboard the Queen of Hearts. Attendees will PART TWO. For the second part of cruise around the Statue of Liberty during an the show, the gallery will display evening of networking. An open bar, dinner works from a variety of artists who and dancing are included. Funds will support are members of the Ridgewood, Envirolution’s efforts to grow a green econo- Queens, artists collective and my.The boat can be boarded at 6 p.m. on the exhibition space Regina Rex. A north side of Pier 40, West Houston Street free opening reception takes place and the West Side Highway.Tickets are $75. at the gallery, 131B Eldridge St., Visit www.greencollarcruise.eventbrite.com. at 6 p.m.The exhibit runs from July 20 through Aug. 5. For more SATURDAY, JULY 21 information, visit www.eliping Out Against Abuse hosts its third annual gallery.com. LAUGH FOR THE LADIES COMEDY FUNDRAISER. The stand-up comedy event benefits the organization’s online and in-person efforts to support victims and survivors of domestic violence. The event will take place at the EastVille Comedy Club, 85 E. Fourth St., at 6 p.m. Tickets are $16 if purchased online at www.oaalaugh.eventbrite.com and $20 at the door. Visit www.outagainstabuse.org. MARK YOUR CALENDAR… SUNDAY, AUGUST 12 Bang on a Can and the Noguchi Museum present COMPOSER/PERFORMER ANDY AKIHO for the August installment of the Second Sundays program, Music in the Garden. The event will take place at 3 p.m. at 9-01 33rd Road, Long Island City, Queens. The program is included with museum admission of $10 for adults and $5 for seniors and students. Call (718) 204-7088 or visit www.noguchi.org.

July 16, 2012 | Crain’s New York Business | 27 CN015246.qxp 7/3/2012 1:12 PM Page 1

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