EDC Will Restructure to Lobby Legally Fat Lady?
Total Page:16
File Type:pdf, Size:1020Kb
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 hotel. 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 Courtyard by Marriott. 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 Betaworks 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.