Real Estate Deals

nb45p01.qxp 11/2/2007 8:09 PM Page 1

TOP STORIES 40UNDER40 Students shed NOMINATIONS geek label, flock The deadline has been to computer science extended until Nov. 5 PAGE 2 ® at 5 p.m. Visit Trinity believes www.crainsnewyork.com boutique hotel will breathe life into Hudson Square VOL. XXIII, NO. 45 WWW.CRAINSNEWYORK.COM NOVEMBER 5-11, 2007 PRICE: $3.00 PAGE 3 Ex-Wall Streeter’s movie shines light Subprime on Cambodian child prostitution assistance NEW YORK, NEW YORK, P. 6 Time for action: why city, state falls flat must trim budgets EDITORIAL, PAGE 12 Programs to help How long will borrowers a bust; Morgenthau stay as Manhattan DA? difficult to make THE INSIDER, PAGE 14 loans affordable

BY TOM FREDRICKSON

in july, Gov. Eliot Spitzer announced a $100 million program to help homeowners who have risky mortgages and who are facing MIKE RICH of AOL the loss of their homes through WALL ST. TOLL Music says the foreclosure. demand for online G Big paychecks take lyrics is high because The plan was for the State of a hit in beginning of more consumers are New York Mortgage Agency to grange paul downloading songs. help homeowners refinance into grim trend 30- or 40-year fixed-rate loans from foreclosures. The modest efforts G The numbers on subprime adjustable-rate ones. the government and the banking But the hurdles have proved far industry have made have been in-

employment, bonuses buck ennis and layoffs PAGE 3 greater than the state expected.The effective. Because subprime mort- DIGITAL SONGBOOKS result: At the end of October, only gages were given to many people bloomberg news one mortgage was in the pipeline. who should never have qualified Little is being done to stop New for them in the first place, it is hard AT DEADLINE York City’s sharply higher level of for lenders to offer loans that borrowers can manage. RETAIL EXECUTIVES EXPECT Legal lyrics sites LAW SPOTLIGHT A lack of legal “We can’t even go to the lenders NORDSTROM INC. to be help hurts homeowners Page 23 a lot of the times and ask them to missing key designers’ goods if See SUBPRIME on Page 8 the Seattle-based chain decides to open its first try for online hits Manhattan store in the former Drake Hotel, on Park Avenue companies to make licensed lyrics and East 56th Street.The Turf war seen as available to subscribers—Yahoo location, for which Nordstrom AOL, MTV, Yahoo Music launched its service in Revamped chain reportedly signed a April—these latest offerings sig- nonbinding letter of intent last compete for new nal a turf war as more large and week, is near other retailers source of revenue medium-sized new media compa- challenges Macy’s that offer much of the same nies seek another source of music merchandise. Stores such as revenue. Barneys New York, on BY SAMANTHA MARSHALL Music publishers say dozens sive lines for Lord & Taylor. It is Madison Avenue, and more Internet service providers are Lord & Taylor also spending millions to improve Bloomingdale’s, on Lexington a battle is brewing among dig- hatching deals to use their song posts gains with customer service, spiff up stores Avenue, are believed to have ital media companies as they jostle lyrics and are likely to be up and and advertise the makeover. territorial rights to certain to be among the first to offer free running in the next three to six fresh fashions, ads “Lord & Taylor has made some brands that Nordstrom would and legal lyrics to millions of mu- months. “There’s definitely a very positive, very dramatic want to carry in its new store. sic fans. strong demand for it,” says Aram changes in their business,” says AOL Music goes live with lin- Sinnreich, an entertainment in- BY ELISABETH BUTLER CORDOVA Lori Holliday Banks,a senior fash- DANFORTH DEVELOPMENT PART- er notes on Nov. 12, and MTV dustry analyst for Radar Research. ion analyst at consulting firm Tobe. NERS HAS WON conditional Networks announced plans to of- “It’s another opportunity for lord & taylor, armed with fresh The company can already claim See AT DEADLINE on Page 2 fer a similar service this month. lifestyle advertising dollars target- fashions and a new image, plans to gains. Sales are up 8% to 15% in While not the first major media ed toward different musical tastes.” take advantage of problems afflict- Lord & Taylor stores in Boston,up- The addition of lyrics on entering rival Macy’s Inc. to become the state New York and Washington, tainment Web sites is expected to favorite regional chain this holiday D.C., three areas that saw their key 45

5 boost traffic and enhance advertis- season and beyond. regional chains remade into Macy’s. ing sales in a crowded digital-mu- As part of its recent turnaround, The industry titan gave Lord & sic market desperate for new ways the 47-unit chain has signed a se- Taylor an opening with its disap- to monetize licensed content. It ries of sought-after designers, in- pointing sales, poor customer serv- ELECTRONIC EDITION will also provide music publishers cluding Cynthia Steffe and Bryan ice and messy displays.Many shop- See LEGAL on Page 9 Bradley of Tuleh, to create exclu- See LORD & TAYLOR on Page 8 NEWSPAPER 71486 01068 0 CNYB 11-05-07 A 2 11/2/2007 7:15 PM Page 1

AT DEADLINE

Continued from Page 1 lease for nearly 3,000 square feet approval from the Harlem on the 18th floor of 60 E. 42nd Community Development St., better known as the Lincoln Corp. to redevelop the historic Building. John Sinon of Victoria Theater.The move has Newmark Knight Frank angered some neighborhood represented the landlord, a activists who have been partnership led by Peter Malkin. clamoring for more of a say in Alex Cohen of Cushman & the selection process. Last Wakefield Inc. represented the month, numerous community foundation. activists signed a letter to Gov. Eliot Spitzer, complaining that NEW YORK STATE COURT they were barred from having ADMINISTRATORS found enough any input into the choice of a money in the state’s budget this developer. Danforth’s proposal, year to reimburse judges as which will cost roughly $20 much as $5,000 for work- million, includes two theaters, a related expenses, such as judicial hotel and condominiums. robes.The move comes more than a year after judges began LIBERTYPOINTE BANK, CHAIRED their campaign for higher BY REAL ESTATE developer Shaya salaries.The salary for New Boymelgreen, opened its second York judges, $136,700, has not branch on Sunday.The new been increased in nearly a location is on Coney Island decade. Court administrators Avenue in the Midwood also are giving an additional five neighborhood of Brooklyn. days of vacation to judges with Another branch is scheduled to five or more years on the bench, open in Borough Park, boosting their vacation time to Brooklyn, in early 2008.The PROGRAMMING 25 days a year. Judges say the PASSION: “The geek headquarters branch in lower offerings are not a substitute for stigma needs to go Manhattan’s financial district, a substantial raise. away,” says Pace which opened two years ago, has freshman Alex Quick.

attracted more than $180 THE NEW YORK CHINA CENTER, buck ennis million in deposits. THE ASIAN AMERICAN Business LibertyPointe caters primarily Development Corp.’s newly to Orthodox Jewish customers. opened space in Beijing, has its first customer: Harlem Brewing JOE TORRE MAY BE HEADING TO Co.The boutique beer company LOS ANGELES to work for the plans to start exporting to China Digital thrill is back Dodgers, but his foundation by 2008.The center is helping that strives to end domestic the small business cut through violence will stay in New York. red tape and prepare for its Computer science enrollment jumps at local schools The Joe Torre Safe at Home launch through local marketing Foundation signed a three-year efforts. I BY AMANDA FUNG

CORRECTIONS computer science is cool again. Charles Koones is the publisher of Daily Variety. His name was misspelled in an Oct. 29 “New Alex Quick, a freshman at Pace University, proudly tells girls he is majoring in computer York, New York” item. science. His passion for programming began when he got his first laptop at age 13. John Carroll is the director of safety and security at Fordham University. His name was misstated in the Oct. 29 article “Campuses rethink security.” “The geek stigma about the major needs to go away,” Mr. Quick says. “Almost everything that is done today involves a computer.” The 18-year-old is one of many New York City students pursuing a computer science THIS WEEK IN CRAIN’S degree. For the first time since the dot-com bubble burst at the beginning of the decade, colleges here are seeing a renewed enthusiasm for the major.

ALAIR TOWNSEND ------13 “The rise of Google and interest in computer gaming has brought back the excitement,” says 45 See THRILL on Page 9 THE INSIDER------14

WEEK IN REVIEW ------16

REAL ESTATE DEALS------18 NEIGHBORHOOD Medicaid insurer under fire JOURNAL------22 REPORT: BUSINESS ecutive, Paul Dickstein, and Chief tals, including Beth Israel Medical Healthfirst faces AG Operating Officer Jim Boothe re- Center, Mount Sinai Medical Cen- OF LAW ------23 probe, suspension signed last week in the wake of the ter and Maimonides Medical Cen- Health Department action, which ter. In a statement, Healthfirst said SMALL BUSINESS ------35 of enrollment over also made public the attorney gen- that it is cooperating with the attor- eral’s investigation. It’s not clear ney general’s office and the Health THE WEEKS AHEAD ------36 marketing concerns whether the probe involves Department. CLASSIFIEDS ------40 civil or criminal violations. The Health Department BY BARBARA BENSON Don Ashkenase, chair- 480K cracked down because BUSINESS LIVES------43 NUMBER man of Healthfirst,assumed of members Healthfirst, which has 1,800 CORPORATE LADDER------45 healthfirst, New York state’s executive duties. Corporate enrolled in employees, paid bonuses to largest Medicaid managed care in- counsel Tom Bergdall was Healthfirst marketing representatives EXECUTIVE MOVES------46 plans 47 surer, is under investigation by the named acting chief operat- based on productivity at a BOB LAPE ------47 state attorney general for its marketing officer. Healthfirst be- time when Medicaid con- ing practices. Separately, the state gan an immediate search to fill the tracts prohibited such bonuses. vol. xxiii, no. 45, november 5, 2007—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Period- Department of Health temporarily two positions. Healthfirst also filed marketing icals postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address shut down enrollment in all but plans with the state which falsely as- changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Insurer ownership MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a Healthfirst’s Medicare products, as serted that the reps were not com- copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents a result of Medicaid managed care healthfirst, with 480,000 mem- pensated based on productivity. copyright 2007 by Crain Communications Inc. All rights reserved. contract violations. bers and $1.7 billion in revenues, is Healthfirst’s founding chief ex- owned by 39 New York City hospi- COMMENTS? [email protected]

2 | Crain’s New York Business | November 5, 2007 CNYB 11-05-07 A 3 11/2/2007 8:27 PM Page 1 Bonus pool springs leak throughout Wall Street. Bond units take “The last couple of years, WORRISOME NUMBERS ON THE STREET bankers called the shots when it biggest hit as WALL STREET EMPLOYMENT in New York reached 134,000, the WALL STREET BONUSES will fall by 10%, the first decline in six came to pay,” says Rik Kopelan, highest level since 2000 and up 16% from the low in 2003. It is years in the financial district. Yacht and luxury-automobile dealers Wall Street swoons; managing partner at recruiting likely to decline by year-end as layoffs continue. could feel a slight pinch. firm Capstone Partnership. worst is yet to come “Now,with profits down so dramatically, that clearly isn’t the BY AARON ELSTEIN case anymore.” The state comptroller esti- wall street’s pinstriped platoons mates that earnings at New York are about to take a hit in their wal- Stock Exchange member-firms lets in what promises to be only the will be about 30% lower this beginning of a prolonged period of year—the steepest slump in five sharp downward pressure on the in- years, so big reductions in earn- dustry’s famously fat pay packages. ings for the industry’s foot sol- Bonus checks,which account for diers become inescapable. Since *As of the end of September. Source: New York State Labor Department * Estimated. Source: Office of the State Comptroller the lion’s share of bankers’, brokers’ the average annual bonus is and traders’ annual pay, will be 10% $136,000, covering everyone smaller this year, according to the from lowly office assistants to 50%, with no sign of a quick re- Merrill Lynch’s CDO team had this year. On Friday, analyst Mike state Comptroller’s Office. That mighty chief executives,a 10% hair- bound in 2008. just 40 people when it was the most Mayo of Deutsche Bank projected would mark the first drop since the cut will scarcely cause a hardship. Hardest hit will be the nearly active in the business,according to a another $10 billion in write-downs technology stock meltdown early in 400,000 brokerage employees who recruiter who works with the firm. this quarter. the decade. Bad omens sell and trade bonds. After several Most of them have been sacked.But Wall Street’s paymasters,who set In the past four months, close to the problem is that the trend is boom years, business has collapsed the pain of last month’s $7.9 billion aside bonus money every quarter, 12,000 bond bankers and traders clearly and dramatically downward. in such formerly lucrative precincts write-down caused by their ill-ad- are making adjustments.At Merrill, have lost their jobs, according to This year’s bonuses largely reflect as subprime mortgage bonds and third-quarter compensation costs Gustavo Dolfino, president of re- the strength of the first half. Many collateralized debt obligations. were 50% lower than they were a cruiter WhiteRock Group. The lines of business have tanked since Sales of these exotic instruments Hardest hit will year earlier. Bear Stearns reined in pain flowing from the great credit then, and Wall Street’s second-half plummeted by almost 67% in the pay by 35% last quarter. And last crisis of 2007 is now spreading profits are forecast to tumble by three months though October, ac- be 400,000 week, Deutsche Bank, which em- cording to research firm Dealogic. ploys 8,000 people in the city, said IN A NEW YORK MINUTE In response, firms large and small brokerage that it had cut bonus pools. are not only draining bonus pools Bonuses are also under pressure MAJOR JOB LOSSES Most announced but also dismissing staffers. employees from sharp revenue declines in some layoffs are believed to be of employees “If your work involves an of Wall Street’s most dependable based in New York City. acronym starting with a ‘C,’ like money-spinners—including merg- Company Layoffs Month CDOs or CLOs,you’re vulnerable,” er-and-acquisition advisory and says Richard Lipstein,managing di- stock underwriting. M&A rev- Bear Stearns 240 August rector at Boyden Global Executive vised investments must now be ab- enues, for example, plunged 44% in 300 October Search. sorbed by Merrill’s other 64,000 October, according to Dealogic. Mr. Dolfino at WhiteRock has employees. But those businesses will come J.P. Morgan Chase 2,500 October attempted to quantify that vulnera- back, and firms can’t afford to be Morgan Stanley 200 October bility. He forecasts a 50% drop in Weakness in M&A as well caught unprepared. Unable to cut bonuses for bond bankers this year. the same holds true for other back on staff numbers, they will Credit Suisse 170 October The pressure to cut expenses is in- Wall Street firms. Banks and bro- have no choice but to slash staff Bank of America 3,000 October tensifying daily, and no costs on kerages have written down the val- compensation.

istockphotos Wall Street loom anywhere near as ue of their hybrid securities hold- large as those for personnel. ings by more than $25 billion so far COMMENTS? [email protected] Hudson Sq. success hinges on new hotel

tower and retail space.The goal is to “We want the creative tenants Developers hope create a vibrant neighborhood in because we think they are key to converted property Hudson Square. New York’s future, but one of the things they want is a neighborhood will lure shops, Rental market lagging that isn’t just active during the day restaurants, people the largest landlord in the but active during the night,” says neighborhood, Trinity Real Estate, Mr. Weisbrod. has already successfully transformed Trinity must walk a tightrope be- BY THERESA AGOVINO much of Hudson Square, which cause its below-market rents are a once housed the city’s printing in- big part of its allure.If the neighbor- ed lederman with walls hugged by scaffolding dustry,into an office hub for compa- hood, which is bordered by HOTEL EXPERTS: Tribeca Associates partners Elliott Ingerman, Bill Brodsky and Drew Conner. and windows sheathed in plastic,the nies like advertising agencies and TriBeCa, SoHo and the West Vil- old eight-story warehouse at 330 publishing firms. But rents still lag lage, gets too trendy and rents go up Hudson St. doesn’t look like the those in many other Manhattan too much, tenants could head to square feet of office space. The of- a certain cachet, much the way the linchpin of a neighborhood trans- neighborhoods,and the 15% vacan- more affordable areas. fice space is expected to be ready in Hotel Gansevoort helped galvanize formation. cy rate in the area is three times the Two months ago, Trinity gave a the summer of 2009, with the hotel the meatpacking district. But be- But the landlord and developers borough’s average. For Hudson 99-year lease for 330 Hudson St. to coming on line in early 2010. cause Trinity had no experience hope that the property will lure Square to achieve parity, it must Tribeca Associates to redevelop the running hotels itself, it brought in shops, restaurants—and above all, have more amenities, says Carl property. Tribeca plans to create a Help from hotel Tribeca, which is also building the people—after its $220 million con- Weisbrod, president of Trinity Real 171-room boutique hotel with a trinity decided that a boutique Smyth Hotel on West Broadway. version into a luxury hotel, office Estate, an arm of Trinity Church. restaurant, as well as about 300,000 hotel would lend the neighborhood See HOPES HIGH on Page 8

November 5, 2007 | Crain’s New York Business | 3 CNYB 11-05-07 A 4 11/2/2007 8:08 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL Drug approvals will give -2.2% The Bloomberg/ Forest Labs booster shot Crain’s New York Index

➡ fell 2.2% to earnings per share for the fiscal year end- drugs either awaiting FDA approval or end the Provide vital counter ing March 31 will hit $3.05, up 6% from undergoing Phase 2 or 3 clinical trials. week at 374. to patent expirations the previous fiscal year. Revenues are Barring any surprises, the company ex- The S&P forecast to come in at pects to launch 500 Index on 2 blockbuster drugs $3.8 billion, up from Nebivolol in January. fell 1.7%, $3.4 billion last year. The new hypertension closing at The rub is that drug has proved to be 1510. BY AMANDA FUNG nearly 80% of those better tolerated by and revenues come from more effective for he time has come for in- just two drugs:the an- African-Americans vestors to take a chill pill and tidepressant Lexapro than its rivals. It could stop worrying so much about and the Alzheimer’s generate $200 million Forest Laboratories Inc. Any treatment Namenda. to $300 million in an- day now, the Food and Drug Both face patent expi- nual sales, according RISERS TAdministration is expected to approve rations in 2012. to Mr. Goodman. 5-DAY 1-MONTH 3-MONTH CLOSING the company’s new hypertension drug, Between now and Forest is also ex- % CHANGE % CHANGE % CHANGE PRICE Nebivolol. then, however, the pected to submit Mil- MasterCard +21.0% +24.2% +33.2% $190.04 That could be just what the market drug duo will contin- nacipran, a drug that needs to be reminded that this is a phar- Saks +14.3% +22.3% +15.4% $22.02 ue to deliver results for treats fibromyalgia, maceutical firm with a future as well as a the company—some- for FDA review soon. Dice Holdings +13.1% +17.1% +2.4% $13.00 past. The company’s shares have slipped thing that was in It is expected to gener- Market cap $12.2 billion Nasdaq +5.6% +20.8% +50.3% $46.81 28% so far this year over investors’ anxi- doubt until only re- ate annual revenues of Viacom +5.5% +7.6% +8.3% $41.56 ety about patent expirations for two of its cently. In September, Trailing 12 mos. P/E 24.5 as much as $1 billion. blockbuster drugs. Those patents, how- Forest won a key Total cash $2.4 billion Other drugs in the ever,have five years left to run,leaving the Court of Appeals rul- pipeline have poten- SINKERS company plenty of time to win approval ing that blocks Teva tial annual sales of up 5-DAY 1-MONTH 3-MONTH CLOSING for a new generation of drugs—and in- Pharmaceutical from to $1 billion each. % CHANGE % CHANGE % CHANGE PRICE vestors plenty of reason to stock up on making a generic version of Lexapro un- On the other hand, management Ambac -46.9% -63.7% -64.8% $23.51 Forest shares at their present, depressed til 2012. could also buy some growth with its $2.4 Merrill Lynch -13.3% -24.2% -21.0% $57.28 levels. Free of that threat, Lexapro should billion in cash and marketable securities. “They had some setbacks, but man- Bear Stearns -12.1% -20.5% -11.6% $102.16 generate $2.8 billion in revenue this fiscal “Forest’s pristine balance sheet gives agement is smart,”says Ronny Gal,an an- year, up from $2.1 billion last year, ac- management strategic freedom to pursue E*Trade -11.6% -29.1% -44.9% $9.46 alyst at Sanford C.Bernstein.“This com- cording to Marc Goodman, an analyst at a large acquisition,” says Mr. Gal. Citigroup -11.5% -21.2% -20.1% $37.73 pany will be worth more.” Credit Suisse. Analysts expect that Forest Labs’ Meanwhile,Forest Labs has eight new COMMENTS? [email protected]

STOCKS TO WATCH by Erik Ipsen Markets await verdict on AIG’s vault-load of subprime securities THIS WEEK, investors will find out if the globe’s biggest insurer will lay the world’s largest egg. Analysts predict American International Group will show a 6% gain in third-quarter profit. But there is a chance the company, which also has the downright dangerous distinction of ranking as one of the largest holders of subprime-related assets, will have to write down their value. Estimates of the hit range as high as $10 billion. With its hapless shares trading about where they did four years ago, Time Warner needs to come up with something a bit meatier than its expected posting this week of a 25% jump in quarterly profits. A departure date for CEO Richard Parsons would be nice. So, too, would news of a spinoff of AOL, or maybe the company’s cable-TV unit. All have been rumored in recent days. Stay tuned. Last week, the shares fell 3%. Sure, Goldman Sachs is a heck of an institution, able to pull huge profits out of the jaws of the meanest markets, as it did in the third quarter. But with conditions worsening and analysts forecasting a string of earnings declines into next year, the logic of Goldman hitting a new 52- week high last week looked shaky. Keep in mind that five years ago, in the last bear market, Goldman’s shares traded for less than $70. charts: grange paul

4 | Crain’s New York Business | November 5, 2007 Project1 9/7/07 5:09 PM Page 1

IS YOUR COMPANY PRINTING GREEN? As a pioneer in environmentally friendly print and a Forest Stewardship Council certified printer we can show you how to go green. NEW YORK,NEW YORK Our plant is run by 100% edited by Matthew Flamm wind energy, with no carbon footprint, and when you work with Wheal-Grace you can proudly display our Ex-Wall Streeter banks on movie Green PrintTM and FSC ew fledgling filmmakers get a world premiere for their movie at the United logo on your printing. Nations. But on Wednesday, Holly, the first feature film from business-executive- Fturned-screenwriter/producer Guy Jacobson, will debut at a U.N. gala benefiting Cambodian activist Somaly Mam. Sen. Hillary Clinton (right)and Susan Sarandon (left) are For a consultation call among the luminaries on the benefit’s host committee. Jim Parrinello at 973-450-8100, ext. 21 Holly, a fictional story about child prostitution, opens on Friday at Clearview Cinemas’ or email us at [email protected] West 62nd Street and Broadway theater. A former UBS banker and technology entrepreneur, Mr. Jacobson went on vacation in Cambodia in 2002 and found himself surrounded by 5-year- old girls soliciting him for sex. At the time a budding screenwriter, tired of the business world, he realized that he wanted to make movies about their plight. Soon after, Mr. Jacobson wrote a screenplay and raised $3 million to shoot the film in Cambodia, under conditions so dangerous the production needed 45 guards. He also launched the human rights group Red Light Children. “I was just this little investment banker who wanted to hike,” Mr. Jacobson says,“and now my entire life has been transformed.” getty images bloomberg news the NBC weather anchor service he developed called Burger Co. flips contributed the introduction to HouseSystem. Its “Face Book” for franchises her book, Weight Loss Surgery for feature, which students could use Dummies. Now, she has taken her to find friends, was launched four now new yorkers won’t be the scalpels from Lenox Hill Hospital months before Mr. Zuckerberg’s only ones who can get their red to New York University Medical Thefacebook.com. meat fix at New York Burger Co. Center. But she had to go through “He says: ‘This is my program, The three-year-old all-natural a six-month legal battle to get I designed it, I have the history [to eatery, which has two shops in there. prove it],’ ” says Jonathon Lazear, Manhattan and has twice received “It was an ugly divorce,” says Mr. Greenspan’s literary agent, Weiser is pleased to announce that best-burger honors from AOL Dr. Christine Ren, Dr. Kurian’s new who took his 24-year-old client to CityGuide, has just been cleared partner in the NYU Surgical meet with New York publishers by the state to Associates practice. last week. Stuart A. get into the Lenox Hill lawyers tried to A call to Facebook’s press franchising hold Dr. Kurian to a noncompete office was not returned. business. clause that forbade her to work Other Harvard alumni are Nussbaum, CPA Owners within 30 blocks of the hospital. suing Mr. Zuckerberg over Madeline Poley “They argued that blocks that Facebook’s origins. Mr. has been admitted into the partnership. and Spiros Zisimatos, who have aren’t square don’t count as Greenspan has not sued—which been plotting their world takeover blocks,” Dr. Ren says. has left him free to settle the score for a couple of years, plan to start Lenox Hill declined to in a book. New York City slowly.“This is culinary quality comment on the dispute. He’s also adding to his memoir 135 West 50th Street food, so I want to be sure it’s done The move is already paying off as Facebook’s valuation goes New York, NY 10020 properly,” Ms. Poley says. for NYU. Since Dr. Kurian arrived through the roof. “He’s bringing it Tel 212.812.7000 Mr. Nussbaum possesses over Fax 212.375.6888 She adds that she’s received earlier this year, the practice’s up-to-date,” Mr. Lazear says. 15 years of experience providing franchise requests from as far away surgical volume has increased to Long Island accounting, auditing, and consulting 3000 Marcus Avenue as Addis Ababa and Japan, though 110 bariatric procedures a month Contributors: Gale Scott, Lake Success, NY 11042 services to business enterprises, the first franchises are likely to be from about 80.The center takes Miriam Kreinin Souccar Tel 516.488.1200 particularly those in the apparel and closer to home. “I’m just looking patients regardless of their Fax 516.488.1238 accessories, wholesale/distribution, to go to Hoboken,” she says. ability to pay. Westchester publishing, and not-for-profit The co-owners are also hoping HERE’S MY CARD 660 White Plains Road to see a franchise at John F. Tarrytown, NY 10591 industries. He regularly consults Condé Nast Portfolio Publisher David Carey is Tel 914.333.0555 with clients with regard to issues Kennedy International Airport. Trying to save Fax 914.333.0556 New York Burger Co. is one of binding a facsimile of his business such as budgeting and forecasting, his Facebook the local restaurants in the card into the New Jersey operations assessment, internal 399 Thornall Street running for a spot at the new mark zuckerberg, the December Edison, NJ 08837 controls, benchmarking, inventory JetBlue terminal, opening next ubiquitous 23-year-old issue of the Tel 732.549.2800 management, and product new business Fax 732.549.2898 summer, Ms. Poley says. founder of social profitability. networking Web site magazine, which www.weiserLLP.com Facebook, could soon be hits newsstands Battle to gain getting even more Nov. 21. Mr. weight docs attention. Carey also put his card in the premiere issue in Mr. Nussbaum can be reached His onetime Harvard May—and got 700 responses. He says e-mails at 212.375.6828. weight-loss surgeons are in classmate Aaron Greenspan from readers give him new ways to talk about such demand that hospitals are is shopping a memoir, the title with advertisers, and he doesn’t mind Weiser LLP answering every single message. “Sadly, e-mail is Certified Public Accountants fighting over them. titled Authoritas, which Dr. Marina Kurian performed Al claims that the idea for the only sport I’m good at,” he says. Roker’s gastric bypass surgery, and the site came from a Web

6 | Crain’s New York Business | November 5, 2007 Project11 10/25/07 2:32 PM Page 1

Empire Prism SM is premium health care without the premium price .

( If that makes you feel good, we’re already doing our job.)

If your company has 2 to 200 employees, here’s great news. Introducing Prism, the kind of coverage you’ve always wanted for your employees but didn’t think you could afford. Including 100% preventive care coverage, discounts on fitness club memberships and wellness products, plus access to the nation’s largest network of doctors and hospitals.* You’ll appreciate the price; your employees will appreciate you. To learn more about Prism, call your broker or visit empireblue.com.

*By choosing Prism, consumers will have access to the largest New York network as well as the largest network across the country through the Blue Cross Blue Shield Association’s BlueCard® network. Services provided by Empire HealthChoice HMO, Inc., and/or Empire HealthChoice Assurance, Inc., independent licensees of the Blue Cross and Blue Shield Association. The Blue Cross and Blue Shield names and symbols are registered marks of the Blue Cross and Blue Shield Association. © 2007 Empire BlueCross BlueShield. CNYB 11-05-07 A 8 11/2/2007 8:31 PM Page 1

Subprime help hard to give, get

Continued from Page 1 a year before. But the market was on and broker’s fees, banks have been modify the mortgages, because the a tear, and Mr. Dawkins figured the slow to deal with the rising number lenders would have to make such ex- appraiser knew what he was doing. of defaults. For many years, banks treme changes to make the loans af- He says he didn’t know that the to- controlled loans and could easily al- fordable,” says Jessica Attie, co-di- tal amount of his mortgage, which ter terms. Now, because most mort- rector of the Foreclosure Prevention included hefty loan fees, matched gages are securitized and sold to in- Project at South Brooklyn Legal the appraisal price. vestors, banks claim that they have RAY DAWKINS: Services. little room to renegotiate troubled When his By year-end, about 1,250 home- Company not receptive loans. mortgage resets, his owners in the city are expected to mr. dawkins asked his loan ser- Though some bankers are start- monthly lose their residences through fore- vicer, Wilshire Capital, to lower his ing to change that stance, housing payment will be closure. And that’s just the tip of the monthly payment by about $200 advocates say the message is not fil- $4,500. iceberg. The number could double and to leave his rate unchanged tering down to the call-center em- or triple annually over the next two when the reset is scheduled. The ployees who are dealing directly years, says Ryan Slack, chief execu- company was not receptive, he says. with homeowners. tive of PropertyShark.com. “I can’t explain the feelings run- Even when programs are put to- In 2005, Ray Dawkins decided ning through my veins right now,” gether to help subprime borrowers, to refinance the loan on his Ca- says Mr. Dawkins, a 42-year-old they are not always well-suited to narsie duplex to pay for some re- health insurance coordinator and New York’s unique real estate mar- pairs. At the time, his mortgage divorced father of two. “I have ket. Two weeks ago, Countrywide broker told him that his house pay- worked too hard and sacrificed too Financial announced an initiative to ment would go up by $200 a month, much for this to happen.” refinance up to $16 billion worth of

to $2,600. Instead, it shot up to A spokesman for Merrill Lynch loans nationally. neff david $3,300 and next year, when his ad- & Co., which owns Wilshire Capi- But because the effort relies part- justable-rate mortgage resets, it will tal, would not comment on Mr. ly on refinancing loans with back- one. The program was originally quires borrowers to be less than 60 soar to $4,500. Mr. Dawkins says he Dawkins’ case but said the firm had ing by the Federal Housing Admin- limited to single-family houses; that days late on payments when they already is struggling to keep up his modified a significant number of istration, it is ineffective in New excluded most city foreclosures, close their new mortgages, and payments. loans, changing rates and terms to York, where the vast majority of which involve two- to four-family that’s a tall order for people strug- He was surprised that the home help borrowers. loans are too large to qualify for properties. The limitation—set by gling to keep their heads above ris- was appraised at $760,000 at the Though it is not in the interest of FHA insurance. Fannie Mae, which is buying the ing financial waters. time of the refinancing, considering lenders to foreclose on properties Then there’s the state’s Mortgage loans—was recently waived. that he had paid $530,000 for it just and be forced to pay maintenance Agency,which is helping virtually no The bigger challenge: Fannie re- COMMENTS? [email protected]

attractive makes our space more Hopes high for Hudson Square attractive.” Tenant satisfied Continued from Page 3 will occupy floors 12 to 20, while postworks,a film and TV postpro- “Trinity is risk-averse, and this is Rents will be special events will be held on the duction company, fled midtown’s a risky project,”says Andrew Peretz, 21st floor, and a bar and a pool will rising rents in 2003. It recently an executive director at Cushman & between $50 sit on the 22nd. At least one restau- signed a lease for 50,000 additional Wakefield Inc.,who was a broker on rant will be built on street level; an- square feet, bringing its total at 100 the deal. “Any time you tie up near- and $60 a other eatery could occupy the re- Sixth Ave. to about 140,000 square ly a quarter of a billion dollars, it is maining retail space. feet. risky. Trinity has eliminated the square foot Mr. Brodsky says office rents The company’s chief executive, downside by selecting someone else will be between $50 and $60 a David Rosen, says he is satisfied to develop it.” square foot. Trinity’s rents range with the area the way it is. Most of from the high $40s to low $50s a his employees live in Brooklyn, so Relishes role square foot for the 6 million square they have an easy commute, and bill brodsky, one of Tribeca’s feet of space it owns in the neigh- whatever services they can’t find in three partners, says his firm savored hood,” says Mr. Brodsky. borhood. Mr. Weisbrod says Trini- Hudson Square are readily available the opportunity to become a vital Tribeca plans to add 14 floors to ty realized the new property would in nearby neighborhoods. part of a still-emerging area. the building. Floors 12 to 22 will give its existing portfolio compe- “We love it,” he says. “I think this development will be house the hotel, which will have an tition, but decided that “anything 300 HUDSON: Plans are under way to convert a tipping point for the neighbor- entrance on Vandam Street. Rooms that makes the neighborhood more COMMENTS? [email protected] warehouse into hotel-office-retail complex.

with Federated Department Stores pockets, Lord & Taylor is enjoying Inc., now Macy’s Inc. Federated ex- its first big ad campaign in 30 years. Lord & Taylor takes on Macy’s ecutives finally chose to sell the It is spending $10 million on mar- chain rather than turn its stores into keting this fall alone.It launched the Continued from Page 1 Macy’s locations. But Lord & Tay- campaign by plastering ads in pers—still smarting from Macy’s lor still faced uncertainty because its Bryant Park during Fashion Week; decision to eliminate such beloved buyer,NRDC Equity Partners,spe- now they are popping up on city bus names as Filene’s, Marshall Field’s cializes in real estate. shelters and in Long Island Rail and Hecht’s—are looking for an al- Road stations. Lord & Taylor has ternative. Odds were stacked budgeted about $10 million a year But Lord & Taylor has to move nrdc president Richard Baker for advertising through 2010. quickly.Macy’s may be troubled,but considered selling the 600,000- The company needed to adver- with some 800 stores, it has major square-foot flagship on Fifth Av- tise because so many of its targeted market share and power. It has been enue, but Lord & Taylor’s fledgling baby boomers have no idea that Lord

working hard to woo back shoppers bloomberg news rebound persuaded the new owner & Taylor has modernized. “There’s and is using its clout to land exclu- ENDANGERED SPECIES: Lord & Taylor’s owner almost sold its flagship store in Manhattan. to keep the company intact. too much of a perception out there sive deals with high-profile design- “I’ve always believed that Lord & that we’re still an old-fashioned ers like Elie Tahari. Taylor would make it, even though dress-up store,” Ms. Elfers says. Lord & Taylor Chief Executive ed classics”like pantsuits crowded the Elfers says. “We’re a different com- the odds were hugely stacked A new flush of high-profile de- Jane Elfers is racing to beat Macy’s racks. Ms. Elfers closed 32 under- pany than we were four years ago.” against us,” Ms. Elfers says. sign talent is likely to help polish and complete the retailer’s come- performing locations and dumped That 181-year-old Lord & Tay- NRDC is now pouring money Lord & Taylor’s image among style- back plan. Known in the industry as dozens of dowdy merchandise lines lor even survived to make a play for into the chain’s revival. It has signed savvy consumers. Along with Ms. a gifted merchant, Ms. Elfers has in favor of more modern ones. Macy’s customers is a retail miracle. a multiyear contract with consulting Steffe and Mr. Bradley,well-known spent the past few years transform- The possibility of closure hung over firm The Yacobian Group to up- designers Joseph Abboud and ing the chain from an outdated A different company the operation throughout the re- grade Lord & Taylor’s customer Charles Nolan are also creating ex- Grandma haven to a suburban fash- “it was a place to get a prom dress, vamp. In 2005, former owner May service. It also plans to overhaul its clusive lines for the chain. ion destination. a mother-of-the-bride dress or a Department Stores Co. consigned online store. In 2003,formal wear and “updat- navy blazer for your little son,” Ms. Lord & Taylor to limbo by merging And thanks to NRDC’s deep COMMENTS? [email protected]

8 | Crain’s New York Business | November 5, 2007 CNYB 11-05-07 A 9 11/2/2007 2:50 PM Page 1

caught up to demand,licensed lyrics a service mentality,” says Jovanka Find, All Media Guide and the ten- are on their way to becoming ubiq- Ciares, director of music services at tatively titled Live Universe, a social Legal lyrics online uitous. “It will become the sine qua EMI Music Publishing. networking site expected to launch non of most online music destina- Gracenote, the lyrics service by January. The rush to market Continued from Page 1 lyrics won’t be available on a stand- tions,” says Mr. Sinnreich. partnering with Yahoo Music,AOL comes in part because in the next with much needed revenue to make alone site, they will be bundled with and MTV, took three and a half few months new technology will be up for the shortfall in CD sales (see every other music offering. Many unofficial sites years to obtain the catalogs from available to allow users to have lyrics Crain’s, Oct. 22). “Anywhere you can touch an it’s taken this long to make the more than 10,000 publishers and streamed simultaneously with songs In the past year, search terms for artist [on our sites], the lyrics will be words to songs available legally be- develop the payment structures and and videos on portable devices like lyrics were among the top five on ma- threaded into the experience,” says cause of the music publishing indus- technology to enable consumer- cell phones and iPods, as well as jor Internet search engines, but the Mike Rich, senior vice president of try’s notorious overprotection and friendly access to the words of more satellite radio screens. only way consumers could find them AOL Music. bureaucracy.Without a simple,legal than 400,000 tunes. The company Of course,industry analysts don’t was by clicking onto Web sites The demand has been so high way to access words to songs, con- originally thought the service would expect Internet searches for lyrics packed with unreliable and unli- because more consumers are down- sumers turned to dozens of unoffi- take a year to launch. alone to generate huge amounts of censed content, as well as viral spy- loading songs and not buying phys- cial sites, including Lyrics.com and After struggling to get all the revenue. And AOL isn’t about to ware that can wreak computer havoc. ical CDs, which usually include A-Z Lyrics Universe, which the major publishers to open their cat- lose market share to Yahoo Music AOL’s decision to launch its lyrics lyrics, says Mr. Rich. Music fans National Music Publishers Associ- alogs, Gracenote still had to hire an over lyrics content, because con- service was about a year in the mak- who’ve heard a song but only know ation is trying to shut down. editorial team to spend months sumers tend to stick with their existing. As of next week, a search func- snatches of verse are also going on- But the music industry hopes to transcribing lyrics. Until now, no ing Internet service providers. tion integrated throughout AOL line to search for lyrics so that they be more accommodating now that consistent and accurate digital li- “This is not going to be a game Music’s content pages will find a can figure out which song to buy its executives recognize the need for brary of songs existed. changer,” says Paul Verna, a senior song through a title or key words. from iTunes, for example. more revenue sources. “We are try- But Gracenote now faces com- analyst with eMarketer.com. Online ad revenues will pay the li- Now that technology and the ing to move away from a defensive petition from several other legal censing fees for the text. While the availability of song catalogs have point of view and change to more of lyric data banks, including Lyric COMMENTS? [email protected]

Demand for high-tech talent is Schools have also created new also have an interest in art history Thrill is back for tech also driving pay increases.The aver- courses and initiatives.For example, and English literature. age starting salary for computer sci- this fall, NYU introduced Comput- “A computer science degree can ence grads has risen 4.5% this year ing in the Humanities and the Arts, be used beyond the tech world,”Mr. Continued from Page 2 trail the economy by a couple of from last,to $53,051—the highest it a course covering the use of digital Steele says.“It can be applied every- Marsha Berger,acting chair of com- years,” says Bruce Bernstein, presi- has been since 2000, according to a tools to analyze text and images. where.” puter science at New York Universi- dent of the New York Software In- recent survey by the National Asso- Ms. Berger says the course was ty.“We are on an upswing now.” dustry Association. ciation of Colleges and Employers. designed to appeal to students who COMMENTS? [email protected] Mr.Quick is part of a swell in the number of incoming freshmen in- tending to major in computer science. New York City College of Technology had 160 this fall, a 32% increase from last year; Pace had 34, a 43% jump. Participation at other levels is also rebounding. New York Univer- First-class sity,which has the city’s largest computer science department, reported 4 having 1,641 undergrads claiming the major last year, a 2% increase over 2005. Statistics are not yet and available for this semester. STAMFORD Even more dramatic, Columbia University has 489 graduate stu- PLAZA dents in its computer science pro- Foremost gram this fall, 13% more than last year.Polytechnic University has 104 51,000 SF of Class-A computer science grad students, up office space is available 21% from 2006. “We received 50% more [fresh- now at Stamford’s man] applicants than we could ac- foremost address. cept,” says Susan Merritt, dean of Pace University’s Seidenberg School of Computer Science and 4 STAMFORD PLAZA AMENITIES AND FEATURES INCLUDE: Information Systems. “I expect it to • Full floors of 24,000 sf continue to grow.New York is burst- • 2.5 acre park-like plaza featuring gardens, ing with energy around information water fountain, statuary and seating technology.’’ • State-of-the-art tenant-controlled HVAC • 24/7security and key-card access Jobs waiting • Private shuttle to train students should find a receptive • Below ground parking job market in the city when they finish school. The number of posi- • Executive dining rooms tions in the field is up 12% from last • Fitness Center year and projected to reach 47,000 • Conference facility in a few years—the most since the • Cafeteria dot-com boom imploded. • Sundries shop The improving employment • ATM market for techies is viewed as the force behind their stronger numbers • Dry cleaner on college campuses. • Car wash/detailing “Students go where the action is,” says Stuart Steele, head of Poly- technic’s department of computer RFR STAMFORD science and information. DOWNTOWN PORTFOLIO Nationwide, computer-related For leasing information, please contact: occupations are projected to be Margaret Carlson • 203.328.3605 among the top 10 fastest-growing [email protected] employment categories through www.RFRStamford.com All information supplied is from sources deemed reliable and is furnished subject to errors, 2014, according to the U.S Bureau omissions, modifications, removal of the listing for lease, and including the rates and man- ner of payment of commissions for particular offerings imposed by principals or agreed to by this the terms of which are available to principals or duly licensed brokers, any square of Statistics. footage dimensions set forth are approximate. “The high-tech industry is cyclical, and student enrollment tends to

November 5, 2007 | Crain’s New York Business | 9 Project2 11/2/07 9:01 PM Page 1

Who’s getting one?

SM UP TO 2% THE PLUM CARD. THE FIRST EVERYTHING, EVERYWHERE EARLY PAY DISCOUNT On November , applications for the Plum Card from American Express OPEN became OR available. We’re initially releasing , Cards, and we’ll be announcing some of the first UPTO 2 MONTHS DEFER PAY members on December  during MSNBC’s “Your Business.” If a Card that offers you the

If payment in full of the New Balance on your billing statement is credited to your Account within 10 days after your statement Closing Date, you will receive a discount of 2% if your Eligible Purchases made during the billing period covered by that statement exceed $5,000. If your Eligible Purchases are less than or equal to $5,000, you will receive a Discount of 1%. If you pay at least 10% of your New Balance (plus the entire amount of any previously deferred amounts) by the Please Pay By date on your billing statement, you may defer payment of Project2 11/2/07 9:02 PM Page 2

TRADE TERMS CARD FROM AMERICAN EXPRESS OPEN.SM NOWAPPLICATION choic e of up to  early pay discount or up to t wo months defer pay, interest AVAILABLE free, can change the way you do business, please call -- or AT 877 -OPEN-PLUM visit PlumCard.com to apply.We can’t wait to see what you do with it. PLUMCARD.COM

the remainder of that New Balance until the Please Pay By date shown on your next billing statement. Your Account must be in good standing in the month in which you exercise the Defer Pay Option. Additional terms, conditions and restrictions apply. For full details, visit PlumCard.com. © 2007 American Express Bank, FSB. All rights reserved. CNYB 11-05-07 A 12 11/2/2007 2:48 PM Page 1

VIEWPOINT City, state belt-tightening editor in chief Rance Crain publisher Jill R. Kaplan n recent years, the mayor and governor have soared so dramatically in recent years that there is plenty of EDITORIAL looked forward to each update on their budgets. room to cut without reducing essential services. editor Greg David deputy managing editors Valerie Block, With Wall Street humming and real estate The New York Times reported in September that during Erik Ipsen assistant managing editor booming, each revision brought news of higher- his time in office, Mr. Bloomberg has presided over a 23% Robert Hordt than-expected revenues. increase in the city budget after adjusting for inflation, contributing editor–reports Elizabeth MacBride Times have certainly changed, and the issue is compared with Mayor columnist Alair Townsend whether New York’s politicians will act decisively. senior reporters Aaron Elstein, Rudy Giuliani’s 8%. Lisa Fickenscher, Matthew Flamm, So far, Mayor Michael Bloomberg is meeting the test. Yet to The state has acted Tom Fredrickson, Samantha Marshall, be heard from are Gov. Eliot Spitzer and legislative leaders even more expansively Anne Michaud, Miriam Kreinin Souccar I reporters Theresa Agovino, Barbara Benson, in Albany. than the city.The Elisabeth Butler Cordova, Erik Engquist, Amanda Fung, Hilary Potkewitz, Gale Scott The latest updates are worrisome.The city lowered its current budget is 9% restaurant critic Bob Lape art director Steven Krupinski estimate of revenue for the current fiscal year, which ends in higher than the deputy art directors Carolyn McClain, June, by a little more than $200 million, and predicted that previous year’s—three Daniel Mednick At least staff photographer Buck Ennis taxes next year would be some $500 million less than forecast. times the rate of copy desk chief Wendy Zuckerman Bloomberg has copy editors Michele Arboit, The state reported that its expected deficit for the year inflation. Thaddeus Rutkowski beginning next April has shot up to more than $4 billion. To be fair to the research editor Denise Southwood built a cushion associate research editor The reasons for the fiscal squeeze come right from the mayor, his budget Adrianne Pasquarelli headlines.Turmoil on Wall Street will reduce the enormous for a downturn maneuvers have created www.crainsnewyork.com online editor Catherine Tymkiw taxes that the securities industry and its employees pay—as a financial cushion of as online reporter Kira Bindrim much as a fifth of all state revenue and about 10% of the city’s much as $4 billion for EDITORIAL AND ADVERTISING OFFICES take.The slowdown in real estate will turn off what had been the next several years. 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 a gusher of transaction taxes. The actions he took last advertising: 212.210.0259 Cable craincom nyk Two considerations must be at the forefront of any budget week to institute a hiring freeze and order belt-tightening at Fax 212.210.0499 discussion. city agencies are appropriate and needed. Entire contents ©copyright 2007 Crain Communications Inc. All rights reserved. First, the current weakness is likely to get worse. While To be fair to the governor, he tried to be conservative with ®CityBusiness is a registered trademark of MCP Inc., used under license agreement. Wall Street profits and bonuses will be reduced this year, his budget this year, at least by Albany standards, but had to TO SUBSCRIBE: they will remain healthy by historical measures, given the give in to profligate legislators—led by Assembly Speaker Call 888.909.9111; fax 313.446.6777. $3.00 a copy, $59.79 one year, $109.79 two years. money the firms made in the first half of the year.The rest of Sheldon Spitzer and Senate Majority Leader Joseph www.crainsnewyork.com the city’s economy continues to thrive—especially tourism- Bruno—to pass a budget.They have insisted in recent years ADVERTISING AND MARKETING related sectors, construction and retail. But the real pain in that Albany spend every dime it can find—and then borrow advertising director Jeff Adler business development manager the securities industry is likely to come next year, as layoffs even more money.The result is an ever-ballooning budget Robert N. Grossman senior account manager mount and bonuses wither. Eventually,Wall Street will drag that now stands at $120 billion. It is past time for Albany to William E. Squitieri down other sectors as well. exercise some self-control, take a lesson from Mr. Bloomberg account executives Andrew Carlin, Lisa Pearly, Jennifer Siniscalchi, Second, spending for both the city and the state has and put the clamps on spending. Brigitte Stieglitz western account manager Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified print & online John Gallagher newsletter product manager Catherine Evans Gittens LETTERS TO THE EDITOR sales coordinator, print & online Lulé Haznedari sales coordinator Anita Perrino credit Pat Grondziak 313.446.6082 marketing director Amy Crossman marketing manager Jill H. Bottomley MTA moving in right direction marketing coordinator Jenny Mashberg circulation manager Andrea Richardson assistant circulation manager Rosalie Ford GIVES GOOD DEALS perspective— of them report having some that of the baby general manager, interactive TO MINORITY VENDORS vision trouble, such as reading Marc Minardo boomers ordinary newspaper print even technical producer Danny Porter as owner of Screws and More, a themselves. when wearing glasses or contact certified minority vendor that has According to lenses. NEW YORK PRODUCTION production and pre-press director successfully worked with the a recent survey What’s worse, less than half Michael Corsi MTA, I disagree with “MTA conducted by say they get an annual eye exam, advertising production manager misses goals on minority Harris which is a basic step in eye Marilyn DeMilta contracts” (Crain’s, Oct. 29). Interactive for health care. PUBLISHED BY CRAIN COMMUNICATIONS INC. Our experience working with Lighthouse The sad truth is that baby chairman Keith E. Crain the MTA has been exciting, International, a boomers face a national vision- president Rance Crain rewarding and fair.The MTA leader in low- loss epidemic from such secretary Merrilee Crain treasurer Mary Kay Crain process helps small businesses like vision health diseases as macular degenera- executive vp, operations William Morrow

ours remain competitive in the getty images care, nearly two- tion, diabetic retinopathy and senior vp, group publisher Gloria Scoby market. Working with the MTA THE MTA helps minority-owned businesses stay competitive. thirds of baby glaucoma. group vp, technology, circulation, manufacturing Robert C. Adams has enabled us to demonstrate to boomers—62%, The generation known for vice president/production & the market that adding diversity to SHORTSIGHTED or 46.9 million people—say they being proactive about their manufacturing David Kamis a development project should ON BABY BOOMERS are not concerned that they will health needs to wake up and be chief information officer Paul Dalpiaz not—and does not —raise costs. become visually impaired or have corporate circulation director proactive about the vision-loss Patrick Sheposh Rather, diversity fosters in the excellent Health Care vision loss that cannot be epidemic—along with the competition in the market, helping Report on baby boomers (Oct. 22), corrected by glasses, surgery or institutions that will be caring founder G.D. Crain Jr. (1885-1973) the buyers of these products and Crain’s analyzed the crisis from medication. for them. chairman Mrs. G.D. Crain Jr. (1911-1996) services save significant money. the perspective of health care Many simply don’t recognize tara cortes, r.n., ph.d. andis woodlief institutions. that eye health is a problem. President and chief executive Screws and More There is another important However, 12%, or 9.1 million, Lighthouse International

12 | Crain’s New York Business | November 5, 2007 CNYB 11-05-07 A 13 11/2/2007 11:31 AM Page 1

THE FEIL ORGANIZATION

the pool.The catch? “The compen- Is Proud to Announce a sation committee shall presume that 15-Year Lease Renewal at all UFT-represented staff employed at a school that meets the targets for the bonus have contributed to the school’s achievement to some extent and therefore should share in the 551 bonus.” It would be a shame if this results in equal awards to average, FIFTH AVENUE subpar and superior performers— Fred F. French Building all of whom are likely to be found in Fifth Avenue’s Most the participating schools. Prestigious Office Building Teachers unions have long fought pay plans based on individual performance. Ms. Weingarten With says she abhors them because they promote competition rather than cooperation. Other worries are that principals will play favorites and that measures of student achievement aren’t sufficiently refined to be a good basis for rewards. The more likely reason is that unions avoid conflict by representing Seven Penn Plaza • New York, NY 10001 • www.feilorg.com all their members equally. Teacher For available space, please contact Kevin Driscoll • 212-563-6557 x298 • [email protected] john h.john howard pay scales move up in lockstep based THE FEIL ORGANIZATION on degrees and seniority. The griev- OWNER/MANAGER ance process is so cumbersome that principals avoid giving teachers un- satisfactory ratings. It is almost im- Teacher merit pay possible to fire poor teachers. As money spent on public education has increased dramatically, so faces tough test too have calls for improved out- comes. In the past several decades, many states and localities have ex- t’s nearing bonus time in New York, when bosses will perimented with variations of merit decide which of their employees to reward and by how pay, and academics have worked to much. It’s usually contentious because the amounts in- evaluate those plans and develop more sophisticated measures of stu- volved often constitute a big part of an employee’s com- dent progress. pensation. One study found that test scores Mayor Michael Bloomberg, Schools Chancellor Joel Klein are higher in schools that offer indi- I vidual financial incentives. Another and United Federation of Teachers President Randi Wein- concluded that plans basing bonuses on school rather than individual garten recently an- next year will be eligible performance or both fail to reward nounced their own ver- to participate if their superior teaching. sion of merit pay. It principals and 55% of In the city’s new plan, teachers doesn’t bear much re- their UFT members have the right to appeal their bonus semblance to the bonus agree. There will be a awards to the chancellor and UFT plans most of us know bonus pool of $3,000 president unless a simple majority of because it is focused per UFT employee. their UFT colleagues votes to ratify more on school achieve- The Department of the compensation committee’s ac- ment than on individual Education, in consulta- tions in a secret ballot. Part of the performance. It could tion with the UFT, will impact will be lost if everyone in- be a historic break- set the criteria for suc- volved follows the path of least re- through in teacher ac- ALAIR cess. A compensation sistance and whacks things up countability, but that TOWNSEND committee composed equally.That won’t be fair to the best will depend greatly on of the principal, a prin- teachers, but it will avoid grievances how it is implemented. cipal’s designee and two from the worst. Time will tell if the The agreement provides that 200 UFT members elected by other new deal rewards both group and high-need schools this year and 400 members will decide how to allocate excellent individual performance.

CRAIN’S ONLINE POLL WHO WILL WIN THE 2008 DEMOCRATIC PRIMARIES?

WITH SUPER TUESDAY just four months Obama will away, a majority of the 332 surprise 17% Hillary respondents to a Crain’s poll think front- . in the runner Sen. Hillary Clinton will take the primaries Democratic top spot. Only 17% think Hillary is One of cruising to the .61% 22%. the other Illinois Sen. Barack Obama will spoil her nomination candidates chances. Nearly a quarter believe one will emerge as Hillary’s of the other Democratic challengers will chief rival emerge victorious.

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

November 5, 2007 | Crain’s New York Business | 13 CNYB 11-05-07 A 14 11/2/2007 2:53 PM Page 1

Union head wants fund revisited DA WATCH Morgenthau mystery THE INSIDER THE QUESTION of when Manhattan District Attorney new york’s AFL-CIO President Robert Morgenthau will retire is so sensitive, his Denis Hughes by Erik Engquist and Anne Michaud says he plans to push spokeswoman won’t even ask on a reporter’s behalf. an overhaul of the state’s Nonetheless, it’s the first one that comes up when Mr. unemployment insurance system Morgenthau’s name is mentioned in political circles. because it will be underfunded if Most insiders believe that he won’t run the economy heads into recession. for re-election in 2009. The reasons: Though Mr. Hughes won’t be He’ll be 90 that year, and he lost the specific about changes he will seek, bloomberg news Robert Morgenthau endorsement of The New York Times he believes that the current system’s when he was challenged in the 2005 demand for higher contributions Democratic primary.

from employers with a history of The city’s four other district attorneys seem as secure as landov layoffs may be unfair. Richard Brown ever. Robert Johnson of the Bronx and Richard Brown of The union-backed Fiscal Policy Queens are running unopposed this year. Republican Daniel Institute says fewer workers than Donovan ever are covered by jobless of Staten Island faces a Democratic challenger but insurance. “We’re looking around is a strong favorite. Brooklyn’s Charles “Joe” Hynes told the corner a bit,” Mr. Hughes says. backers last month that he will run again in two years; his “There hasn’t been an emphasis on competition is likely to be weaker than it was in 2005, when this because we’ve had a good three fellow Democrats took him on. ap images

bloomberg news economy for so long.” The five DAs, who serve four-year terms, have been in Charles Hynes The Business Council of New office a combined 87 years. Their re-election rate is higher Guv likely to block MTA fare hike York State says that the fund is than for any other public office in the city, which scares off would-be adequate and that it will oppose any challengers like Councilmen David Yassky of Brooklyn and Peter Vallone Jr. nsiders think it a virtually certainty that Gov. Eliot modification. Changes in the fund’s of Queens. Spitzer will postpone a Metropolitan Transportation balance trigger increases or decreases in the tax.The balance is IAuthority fare hike to boost his approval rating, now at intended to meet the state’s current Forest City Ratner, Muss will take its eye off port issues. 44%.The governor needs to lift his flagging popularity so that obligations and not more, a council Development, J.P.Morgan Chase, EDC President Robert Lieber he can help Democrats win a majority in the state Senate next spokesman says. KeySpan and local universities recently integrated several support the move. functions—including cargo, year, rather than drag them down. The consolidation was shipping and transportation—into Though Mr. Spitzer generally insists that he does what he Brooklyn BID envisioned when the Bloomberg the maritime division, and it is feels is right no matter what the political consequences, his consolidation administration and local business receiving more attention, he says. troubles are making it difficult for him to govern. Legislators leaders launched the partnership Venetia Lannon and Andrew Genn head former bloomberg aide Joseph in early 2006, Chan says. The the division. have been increasingly willing to defy him on issues ranging Chan is moving to bring three BID boards would maintain from driver’s licenses to campaign finance reform. business improvement districts control over spending but would A few contrarians say Spitzer should push through a fare more formally under the auspices of contract with the partnership for Stringer aide hike and take the political hit now rather than closer to his his organization, the Downtown services. going to SKD Brooklyn Partnership.There is re-election year—as Mayor Michael Bloomberg did in raising some opposition among BID board eric pugatch, communications property taxes in 2003. members, but such stakeholders as Trains make director for Manhattan Borough some gains President Scott Stringer, is leaving to become a vice president in passenger rail service in New Knickerbocker SKD’s public York, which has languished for relations practice. Mr. Pugatch years, is quietly getting extra will join Stefan Friedman in the attention from Gov. Eliot Spitzer, practice, which has about 15 advocates say. His deputy clients, including Amtrak, Saint transportation commissioner, Karen Vincent Catholic Medical Discover the beneﬁts Rae, was hired after she improved Centers, Thor Equities and the of hosting your next passenger rail in Virginia and Beginning with Children Pennsylvania, and her department Foundation. business gathering with us has formed a small division devoted Mr. Pugatch was a political aide to it. to City Councilman Bill de Blasio, The administration has also D-Brooklyn. He worked on been dissipating the ill will with Attorney General Andrew Cuomo’s Amtrak that dates back to a 1998 campaign, and served as a agreement for high-speed trains consultant and spokesman for 2005 that went bad. A lawsuit is still Manhattan District Attorney pending, but the warming candidate Leslie Crocker Snyder. relationship between the two sides bodes well for a settlement, insiders say. Extra gig for ex-speaker Concerns about former City Council Speaker maritime focus Gifford Miller (below), spotted at the 532 newly renovated guest rooms and suites, Crain’s breakfast forum last week, 20,000 square feet of meeting space, and a alice cheng, vice president of the this month took on a new job as dedicated banquet staff maritime unit at the city’s chairman of Liberty Art Title Economic Development Corp., Agency, a first-of-its-kind has left after 10 years for business to provide title personal reasons. Ms. Cheng led insurance for fine art. the $75 million reactivation of Mr. Miller still has his the Staten Island Railroad to consulting connect to the national rail business, Miller freight network, and Strategies. He insiders are worried that also is a partner her departure—along in a real estate with Kate Ascher’s venture and is 49 West 32nd Street, New York, NY 10001 recent exit— on the board Tel (212) 277-2647 www.radisson.com/martinique means of the Victor that Fund, a hedge EDC fund. I getty images 14 | Crain’s New York Business | November 5, 2007 Project7 10/29/07 3:18 PM Page 1

TARGET GIFTCARDS.SM FUNNY HOW MANY WAYS YOU CAN USE THEM. Move over Jelly of the Month. Target GiftCards make the best gifts. They’re the easiest way to applaud your team, increase traffic and drive sales. You choose the value. They choose whatever they want at over 1,500 Target and SuperTarget stores, and online at Target.com. Now that’s good business. Call 1-800-5GIFTS5 or visit Target.com/corporategiftcards to make their holidays happier.

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

ECONOMIC SPOTLIGHT Appraisal suit new york state Attorney General Andrew Cuomo sued eAppraisalIT,accusing the company of producing inflated residential appraisals. Mr. Cuomo says Washington Mutual pressured the firm to use appraisers from an approved list it supplied; the appraisers were picked based on their willingness to inflate appraisal figures. Imus’ comeback don imus will return to the airwaves Dec. 3 on New York’s WABC-AM, only nine months after being ousted by CBS Radio and MSNBC for making racist bloomberg news comments about the Rutgers University women’s basketball Merrill chief checks out team. His annual salary is said to IN ONE OF THE fastest downfalls in Wall Street history, Merrill be in the $5 million range. Lynch & Co. Chief Executive E. STANLEY O’NEAL retired from the firm less than a week after Merrill stunned investors Law firm gives with a bigger-than-expected $8.4 billion credit loss. His 2 bonuses fate was sealed after reports emerged that he held Economy Watch manhattan law firm Cravath exploratory merger talks with Wachovia Corp. without the Swaine & Moore said it will award NY area prices held steady in September after two months of little change. approval of Merrill’s board. Although he’s not getting any a special one-time bonus to The city’s jobless rate remained above the U.S. level, but narrowed the gap. associates.The bonuses will range severance, Mr. O’Neal is walking away with $161 million in from $10,000 for first-years to AUGUST ’07 SEPTEMBER ’07 COMPARISON retirement benefits. $50,000 for senior associates.The NY area inflation change -0.1% 0.0% +2.4%1 bloomberg news payout will be in addition to NYC unemployment rate 5.7% 5.1% 4.7%2 traditional year-end bonuses, SEPTEMBER JOB TOTAL3 12-MONTH CHANGE Newsweek CEO employees, in an effort to reduce ranging from $35,000 to $60,000. NYC employment 3,635,600 +48,400 costs amid the fallout from the newsweek named Viacom Inc. credit crisis. … Bear Chief 1-Inflation rate for the latest 12-month period. 2-U.S. unemployment rate. 3-End-month figure, executive Thomas Executive James Cayne denied a Debt dilemma not seasonally adjusted. Ascheim its new Wall Street Journal report that he for New Yorkers chief executive. spent nearly half of July’s Mr. Ascheim was working days out of the office the debt of New York’s local NYC Hotel Stats Broadway Stats most recently and engaged in inappropriate governments nearly doubled in a The average daily room rate jumped Attendance and gross were essen- general manager conduct that included smoking decade, according to a report by while occupancy slipped in Septem- tially flat in the week ended 10/28, of Viacom’s cable marijuana at bridge tournaments. state Comptroller Thomas ber, PKF Consulting data show. The League of American Theatres TV network DiNapoli. Municipality and The averages for the first nine and Producers says. Through week Nickelodeon. Broadway talks county indebtedness increased 94% months were $276.58 and 86.1%, 22 of the season, the figures were He succeeds between 1995 and 2005, to $32.8 topping year-earlier levels. 5 million and $382.5 million. Richard Smith, who will stay on the league of American billion from $16.9 billion. New as chairman. Newsweek is Theatres and Producers and York City’s debt jumped 79%. dropping its guaranteed paid Broadway stagehands will resume circulation by 500,000 copies, to contract talks Nov. 7, 8 and 9. 2.6 million paying readers. Both sides have issued Girardi on deck ultimatums, including final offers for Yankees Permit proposal and the union’s threat to strike if a deal isn’t reached by Dec. 1. the new york yankees tapped the mayor’s Office of Film, former catcher Joe Girardi to Theatre and Broadcasting issued a replace Joe Torre as the team’s proposal for new guidelines that Governor signs manager. He signed a three-year, would allow the city’s union contract $7.8 million contract. Bench photographers and filmmakers to coach Don Mattingly and third proceed without permits, provided gov. eliot spitzer announced a baseman Alex Rodriguez said they they don’t block sidewalks or tentative contract with the state’s won’t return next season. Mr. traffic. An earlier plan required a largest public employee union that Torre was named manager of the permit and insurance. provides for a 13% pay hike over Los Angeles Dodgers. Capital IQ’s Weekly Deals Report four years.The contract, which —from staff reports and expired April 1, must be approved bloomberg news reports TRANSACTION SIZE Spitzer plans by the Civil Service Employees COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE 3 driver’s licenses Association, which represents JOE GIRARDI Bear Stearns Cos. $1,000.0 China Assets Investment GCI some 70,000 workers. signed a three- Manhattan Management Ltd. gov. eliot spitzer signed a deal year contract to manage the NYSE Euronext Inc. $125.9 Urbana Corp. SB M&A with the Bush administration to Yankees. Manhattan create three versions of New York Oppenheimer Linkstorm $4.2 Individual investors GCI state driver’s licenses, including fined $1 million Manhattan one for illegal immigrants. Of the Manhattan Scientifics Inc. $1.1 Not disclosed GCI two other types, one would allow oppenheimer & co. was fined Manhattan U.S. citizens to travel $1 million by the Financial Collective Media Inc. n/a Greycroft Partners, iNovia Capital GCI internationally without a passport. Industry Regulatory Authority for Manhattan knowingly submitting inaccurate Selected deals announced during the week of Oct. 21 for companies headquartered in metro New mutual fund data. Oppenheimer, York. n/a Not available. GCI: Growth capital investment represents new money invested in a Bear’s uproar company for a minority stake. SB M&A: Strategic buyer M&A represents a minority or majority which voluntarily refunded more acquisition of existing shares of a company without the participation of a financial buyer. bear stearns cos. cut 300 jobs, than $800,000 to clients, admitted bekka lindström bekka or about 2% of its 15,516 no wrongdoing. landov

16 | Crain’s New York Business | November 5, 2007 Project6 10/16/07 3:58 PM Page 1

SMALL BUSINESS BANKING

YOU’RE THE BOSS WITH A MILLION THINGS TO DO. WE’RE THE BANK MAKING SURE IT ISN’T A MILLION AND ONE.

Business Advantage Checking

Every small business runs differently. That’s why our Business Advantage Checking is customizable and comes with the accounts and online services that make managing your cash ﬂ ow easier. Get Express Invoicing™ to get paid faster, or Easy Online Payroll™ with direct deposit to better manage the money going out. With Business Advantage Checking, you can also get a business checking, business savings and personal checking account free of monthly maintenance fees. It’s all part of our small business checking and it’s only at Bank of America.

You’re the boss, we’re your bank.TM

Visit your local Bank of America, call 888.600.4000, or go to bankofamerica.com/theboss. Put us to work for you.™

Please see the Business Schedule of Fees for complete details on fees related to this account. Bank of America N.A., Member FDIC © 2007 Bank of America Corporation. All rights reserved. CNYB 11-05-07 A 18 11/1/2007 6:59 PM Page 1

REAL ESTATE DEALS Grammys group plays musical chairs

doubling its space in New York City. tween Sixth and Seventh avenues. Recording Academy The Recording Academy signed Grammy nominations will be Book team has doubles midtown a 10-year lease for nearly 11,000 announced in early December, and new venture in store square feet at 11 W. 42nd St., between the award ceremonies will be held in space; children’s Fifth and Sixth avenues.The organ- Los Angeles in February. author preston mcclear and il- bookstore on tap ization will move into the entire Studley Inc. broker Erik lustrator Nicholas Dollak have tak- 27th floor at the end of the first Schmall, who represented the acad- en countless children on adventures s it gets ready for quarter of 2008, according to emy, declined to comment. An through their books, including the 50th annual Gram- sources familiar with the deal.Rents academy official didn’t return a call, Frannie & Pickles, The Boy Under the my awards, the Santa in the building average $67 a square and a spokesman for Tishman Bed and The Sailor and the Sea Witch. Monica, Calif.-based foot, CoStar reports. Speyer, which owns the building, Now,the creative team is embarking organization that pres- The academy’s New York office did not comment. on an adventure of its own:retailing. A MOVE OF NOTE: The Recording Academy is Aents the music industry honors is is now located at 156 W.56th St.,be- —theresa agovino The business partners recently taking 11,000 square feet at 11 W. 42nd St.

signed a five-year lease for 800 square feet at 215 Thompson St.,between Bleecker and West Third streets, where they will open their first children’s bookstore, Nick & Preston’s Imaginarium.The Green- wich Village shop will feature signed copies of the owners’ books, plus toys, gifts, cards and novelty items. Opening a retail store is an un- usual move for a writer and an illus- trator. But these collaborators are used to doing things for themselves: They founded Malibu Books for Children to publish their books. The Thompson Street space is divided between the ground floor and a basement. The asking rent on the ground floor was $135 per square foot. Kristin McCann, a broker at Sinvin Realty, represented both the tenant and building owner Cedar Management Corp. in the deal. —elisabeth butler cordova Investment firm hungry for space general atlantic, an investment firm, signed a 15-year lease for 30,000 square feet at 55 E. 52nd St., between Park and Madison avenues. The Greenwich, Conn.-based It’s not just the view, company already has an office at 650 Madison, between East 59th and East 60th streets, but it needs additional room, a spokeswoman says. General Atlantic is subleasing the it’s the point of view. new space,which is on the 32nd floor, from Chicago-based insurer Aon Corp., say sources who do not want Behind every deal stands a team of 45—your team of 45. With keen to be identified. The spokeswoman insight and vast experience, each broker is dedicated to creative wouldn’t confirm that; a spokesman from Aon didn’t return a call. solutions. That has made us the preeminent source for real estate The asking rent at the building is investment expertise. With nearly $3 billion in annual sales, we have about $105 a square foot, according emerged as a top-ranked property sales firm in Manhattan and the to CoStar. A spokesman from CB Richard Ellis, which represented largest single-office commercial real estate investment firm in the both the tenant and the landlord, United States. Let our point of view serve you. declined to comment on the deal. According to its Web site, Gen- eral Atlantic was founded in 1980 and manages approximately $15 billion, investing between $1 billion and $2 billion a year in growth op- www.easternconsolidated.com portunities globally. 212.499.7700 —theresa agovino Paneling maker shows its stuff trespa new york, a maker of high- end interior and exterior paneling, hopes to take advantage of all the chic new buildings under con- See DEALS on Page 20

18 | Crain’s New York Business | November 5, 2007 Project2 10/15/07 11:18 AM Page 1

HP recommends Windows Vista® Business.

HP Compaq 6710b HP ProLiant DL320 Business Notebook G5 Server

Intel® CoreTM2 Duo3 Processor T71002 Dual-Core3 Intel® Xeon® (1.80 GHz) Processor 30502 (2.13 GHz) Genuine Windows Vista® Business1 Integrated Lights-Out 2 and Systems Insight Manager $999 SmartBuy PN: GF938AT#ABA $1,409 SmartBuy PN: AH646A

HP iPAQ 510 Voice Messenger5

Windows Mobile® 6 Standard HP Compaq dc5700 HP Workstation Up to 6.5 hours of talk time4 Business Desktop xw4400 $319 ® TM 3 2 ® TM 3 2 SmartBuy PN: FA887AA Intel Core 2 Duo Processor E6300 Intel Core 2 Duo Processor E6300 (1.86 GHz) (1.86 GHz) Genuine Windows® XP Professional Genuine Windows Vista® Business1 $829 $987 SmartBuy PN: RT873UT#ABA SmartBuy PN: RB360UT#ABA

Softmart can help you in the present while keeping you The beneﬁ ts of working with Softmart and their partners—in-person flexible—yet prepared—for the future. Our products and attention, 360° service and support, access to a powerful network of services can be tailored to the size and nature of your resources and, of course, HP technology—are aimed at keeping your business, even as your business changes. bottom line in line. It’s an approach that respects how That’s why the HP product range is both deep and wide, much of your business, and therefore your life, exists featuring a selection of computers so complete that we’re sure on your computers. Get in touch with us, and we’ll your business can make choices without making compromises. help you today, with one eye on tomorrow.

Get in touch: softmart.com/hp or 1-800-269-4175

Learn more: hp.com/go/facetoface

Prices and promotions are subject to change without notice. Supply is limited. Visit our site or call for the latest deals. 1. Certain Windows Vista product features require advanced or additional hardware. See http://www.microsoft.com/windowsvista/getready/hardwarereqs.mspx and http://www.microsoft.com/windowsvista/getready/capable.mspx for details. Windows Vista Upgrade Advisor can help you determine which features of Windows Vista will run on your computer. To download the tool, visit www.windowsvista.com/upgradeadvisor 2. Intel’s numbering is not a measure of higher performance. 3. Dual Core is a new technology designed to improve the performance of certain software products. Not all customers or software applications will necessarily benefi t from the use of this technology. 64-bit computing on Intel architecture requires a computer system with arocessor, p chipset, BIOS, operating system, device drivers and applications enabled for Intel 64 architecture. Processors will otn operate (including 32-bit operation) without an Intel 64 architecture-enabled BIOS. Performance will vary depending on yourhardware and software confi gurations. See www.intel.com/info/em64t for more information. 4. All talk and standby times are approximate and depend on the network confi guration, the usage pattern of an individual user and the confi guration of the handheld. Use of internal wireless capabilities and backlight will signifi cantly decrease battery run time. 5. A standard WLAN infrastructure, other Bluetooth-enabled devices, separately purchased equipment and a service contract with a wireless airtime provider may be required for applicable wireless communication. Wireless Internet use requires a separately purchased service contract. Check with service provider for availability and coverage inyour area. Not all Web content available. All offers available from HP Direct and participating resellers. Prices shown are HPDirect prices, are subject to change and do not include applicable state and local sales tax or shipping to recipient’s destination. Simulated screen. Photography may not accurately represent exact confi gurations priced. Associated values represent HP published list price. Celeron, CeleronInside, Centrino, Centrino Logo, Core Inside, Intel, Intel Logo, Intel Core, Intel Inside, Intel Inside Logo, Intel Viiv, Intel vPro, Itanium, Itanium Inside, Pentium, Pentium Inside, Xeon and Xeon Inside are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the S.U. and other countries. Microsoft and Windows are U.S. registered trademarks of Microsoft Corporation. Windows Vista is either a registered trademark or trademark of Microsoft Corporation in the United States and/or other countries. © 2007 Softmart. All rights reserved. © 2007 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warran ties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein shall be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein. CNYB 11-05-07 A 20 11/1/2007 7:01 PM Page 1

WWW.CRAINSNEWYORK.COM Trespa, which is opening the GET THE LATEST REAL ESTATE INFORMATION ON THE WEB Deals SoHo showroom in December, will sell its products to architects and in- Breaking news E-mail alerts keep Back issues Use the archives to find Continued from Page 18 terior designers.The firm also plans you up-to-date on local developments Crain’s stories in any previous edition struction in the city. to use the space to align itself more in the commercial and residential real of the paper. The firm, a subsidiary of Neth- closely with the New York chapter estate business as they happen. Subscribe Use the “Subscribe now” erlands-based Trespa Internation- of the American Institute of Archi- button to al BV, signed a 10-year lease for its tects by hosting some of the group’s Company alerts Visitors to the Crain’s Web site can sign up for e-mail alerts order the print first New York City events, says Stephen edition of showroom at 62 Greene Sjurset, the CB that provide news about a particular Crain’s or St., between Spring Richard Ellis broker real estate brokerage or firm. digital sub- and Broome streets. who negotiated the Resources Find links to government The space includes deal on behalf of Tuesday e-mail Sign up today for scriptions to Crain’s Real Estate Insider, a agencies and industry groups the news- 4,500 square feet on building owner 62 involved in New York real estate. the ground floor and Greene Street Corp. weekly e-mail newsletter featuring the paper, the a 2,000-square-foot Elizabeth Obloy of latest deals, events and personnel Events View a current listing of local daily Insider basement. The asking Studley Inc. repre- moves in one of the hottest meetings, seminars and other political rent on the ground sented the tenant. industries. To register, go to networking events of interest to real newsletter and floor was $105 per NEW SHOWROOM: Paneling —elisabeth www.crainsnewyork.com/signup. estate professionals. the daily Pulse health care newsletter. square foot. maker Trespa comes to SoHo. butler cordova Magazine awards reflect broader biz

‘Ellies’ will now include newspaper supplements, give Web stories more play

BY MATTHEW FLAMM

in a further sign of the changing nature of the magazine business,the National Magazine Awards have just gotten a little less exclusive. Magazines that are part of newspapers and Web sites that publish original content will now be better represented at the annual awards ceremony, which serves as a mo- rale booster and a promotional tool for an increasingly beleaguered industry. According to new rules from the American Society of Magazine Editors, which hands out the “El- lies,” newspaper supplements like WHY SHOULD YOU BE QUOTING HIP? Parade and the Sunday New York Times Magazine and its many spin- ASK THE BROKER WHO TOOK YOUR SALE. offs will be eligible for consideration for the first time in the awards’ 41- If you’re not quoting HIP, you can rest assured that your competition is. year history. Online opportunities * • 6% Commission on HIP Select EPO/PPO the new rules also more than • 4% Commission on HIP Classic HMO double the number of categories in which online journalism can compete. Starting with the next awards, • Plans starting as low as $223/mo. • Free eyeglasses, massage therapy, $200 gym which will be presented in May, • Leading facilities like Montefiore Medical Center, reimbursement and alternative medicine.** material that was originally pub- North Shore / Long Island Jewish and Lenox Hill Hospital. lished online in 2007 will be eligible • Rated “excellent” by the National Committee for in eight categories, including fea- • 25,000 physicians in neighborhoods where your Quality Assurance for Commercial HMO & POS plans. ture writing, essays, columns and clients live and work. • Flexible cost-sharing options available. commentary, reporting and public • A broad range of products to suit your client’s needs interest. for both slice or full replacement. Previously, Web publications could be considered in only three categories: general excellence on- Call for more line, best interactive service piece Visit HIPUSA.COM information: 1-888-447-7864 and best interactive feature. “[The new rules are] creating a bigger tent,” says ASME President * For new business on Select EPO/PPO only. Accredited by the National Committee for Quality Assurance (NCQA). A nationally recognized ** Only applies to HIP Classic and Small Group HIP Select EPO/PPO products. evaluation that purchasers, regulators, and consumers can use to assess managed care plans. Cynthia Leive, who is also editor in ® 2007 HIP Health Plan of New York. Commercial HMO and Commercial Point-of-Service plans. chief of Glamour.

COMMENTS? [email protected]

20 | Crain’s New York Business | November 5, 2007 Project14 11/21/06 5:40 PM Page 1

Competitive Advantage.

It’s tough out there. Competition has never We provide the hard news you need to make the been fi ercer. New ways of doing things arrive tough choices – to help you seize the opportunity at a dizzying pace. Pressure mounts to become before the other guy fi gures it out. We’re Crain more productive and effi cient. Do you bet the ranch, Communications and we publish 30 newspapers play your hand, or attack the middle ground? You and magazines, in a half-dozen strategic industries, need an edge. That’s where we come in. dedicated to helping you make the diffi cult calls. Hard news for hard choices. That’s what we’re here for.

Publishing 30 Magazines and Newspapers Worldwide

Advertising Age American Coin-Op American Drycleaner American Laundry News Automobilwoche Automotive News Automotive News Europe AutoWeek BtoB Business Insurance Business Insurance Europe Creativity Crain’s Chicago Business Crain’s Cleveland Business Crain’s Detroit Business Crain’s New York Business Crain’s Mexico Crain’s Monterrey European Rubber Journal FinancialWeek InvestmentNews Modern Healthcare Pensions & Investments Plastics News RCR Wireless News Rubber & Plastics News TelevisionWeek Tire Business Urethanes Technology Waste News Workforce Management

CNYB_AD01_Rev-03102006.indd 1 3/10/06 4:20:15 PM CNYB 11-05-07 A 22 11/1/2007 8:07 PM Page 1

NEIGHBORHOOD JOURNAL No. Brooklyn boom shakes neighbors

They complain that the building Two years ago, Williamsburg camera,” says a watchdog group Residents complain blitz is damaging century-old civic association Neighbors Allied member, who requested anonymity building wave wreaks homes, some of which have had to for Good Growth formed a watch- because she fears being sued. The be evacuated and demolished.There dog group that began photograph- organization has distributed 13,000 havoc; developers are stories of construction snafus, ing and compiling a list of houses fliers detailing what to do if a devel- discover Astoria leaks, noise, dust, building code vio- damaged by construction. The list oper buys the property next door. BUILDING will increase in the next 8 months. lations, nighttime and weekend grew so fast—to four dozen proper- The Department of Buildings is ousing construction work and a Wild West atmosphere. ties in a few months—that the stepping up its inspections. “We has fallen off a cliff in “You can’t drive past one block group stopped keeping it. have a new excavation team going issued stop-work orders, she notes. much of the country, that doesn’t have two construction Documenting contractors’ deeds out proactively to sites in Brooklyn,” But residents say complaining to but it’s still surging in sites on it,”says Philip Kean,Massey and misdeeds has become a mini- says a spokeswoman. Almost 1,000 the DOB can be hazardous. Stories northern Brooklyn— Knakal Realty’s director of sales in industry in the neighborhood. inspections have been conducted so abound of people filing complaints Hbad news for many residents. Greenpoint. “Everybody on the block has a video far, and 18% of the sites have been only to be issued violations themselves or sued by the contractor they turned in. The DOB spokeswoman says most violations don’t carry fines and can be used in civil court to document damage caused by others. Construction is likely to increase in the next eight months.The auto- matic 421-a tax abatement for new apartment properties expires June 30, so builders are rushing to have projects qualify under the old rules. Most of the criticism has focused on inexperienced builders. “There’s so much construction going on, the range of quality is from close to the bottom to top-of-the-line,” Mr. Kean says.“You’ve got a lot of mom- and-pop developers building on 25- by-100 lots.” Highlyann Krasnow, executive vice president for The Developers Group, which has a number of con- do projects in the area, says some dissatisfaction is inevitable. “You’re never able to make everyone happy,” she says. But she predicts a pleasant ending “once the new stores arrive.” —erik engquist A Tiffany’s for Astoria? commercial real estate in quiet, family-oriented Astoria, Queens, is suddenly on the radar screens of big-league developers.The latest to take notice is New York real estate firm Skyline Developers,which paid $22.5 million last month for the former Astoria Theater, on the corner of 30th Avenue and Steinway Street. Skyline is the Manhattan affili- ate of Garden Commercial Proper- ties,the country’s 10th-largest owner of commercial sites. The firm typically develops locations for retailers like Wal-Mart Stores and The Home Depot. What’s so attractive about a 65,000-square-foot property built in the 1920s as a movie house? “We’ve never bought anything in Queens before,” says Skyline Presi- dent Orin Wilf. “We like the dy- namics of Astoria because it’s really emerging.”Mr.Wilf,33,has broken the mold before.He lured Tiffany & Co. to his building at 37 Wall St., a decidedly unglitzy spot. The theater, which was renovated by the previous investors, houses a New York Sports Club, a Duane Reade and a Washington Mutual branch. All are long-term tenants, and Mr.Wilf says he has no plans to jettison any of them.But if history is any indication, Mr. Wilf probably has bigger plans for the site. —hilary potkewitz

22 | Crain’s New York Business | November 5, 2007 CNYB 11-05-07 A 23 11/1/2007 5:55 PM Page 1

BUSINESS OF LAW INSIDE Bankruptcy filings may be spurred by lenient judges PAGE 26 Largest law firms in the area PAGE 28 Magic Circle of elite London firms beef up their New York operations PAGE 31 No defense against foreclosure Nonprofits swamped by calls; aid for crisis comes slowly

BY ELIZABETH MACBRIDE bout six months after Shelia Cruz moved into her new $390,000 Staten Island row house, her happy haze lifted. She realized that her mortgage would be unaffordable once her rates adjusted. A“If it’s even $25 a month more, I can’t handle it,” she told her mortgage company, trying to explain how tight things are on the $55,000 a year she makes working for New York City Transit. The mortgage company told her there was nothing it could do. Eventually, through a series of nonprofit hotlines, she reached the lawyers at South Brooklyn Legal Services, who helped her refinance through a program to help victims of predatory lending. Ms. Cruz was one of the lucky ones: She found legal help. Across the city, few lawyers who help people in danger of losing their homes are being overwhelmed by this year’s explosion of foreclosures. While hotline calls and referrals continue to flood in, they are turning away hundreds—many of whom may have legal defenses against foreclosure. “It’s heartbreaking,” says Jessica Attie, co-director of South SHELIA CRUZ, shown with son Brooklyn’s foreclosure prevention project, which has stopped Hasan Ringer, accepting litigation clients. “It’s like saying, “You have refinanced her mortgage to keep her treatable cancer, but I don’t have time to treat you.’ ” Staten Island home. Experts estimate that about 10 lawyers citywide work full-

buck ennis See FORECLOSURE on Page 24

Gajer, chairman of the firm’s corpo- Crunch squeezing out top-line work rate practice. Hiring has been frozen or cut back severely,with firms—especial- Corporate practices are drying practices have been hit the hardest. For instance,the workload in Mr. ly those concentrated in real es- Biggest players up, with big deals being postponed Work has plunged precipitously Hoffmann’s department dropped by tate—concerned about a recession. feel the pain, have or falling through altogether. Some since the subprime mortgage melt- about a third in August and is just “The bottom really fell out of this firms have begun shifting employ- down in July and as the ex- now starting to creep back to sector,”says recruiter Michael Lord. few options for ees to bankruptcy and litigation tent of Wall Street firms’ pre-crisis levels. Firms went from looking to hire reassigning staff work in hopes of capitalizing on an ownership of bonds backed $70M The deals that do go large numbers of people to wanting imminent boom. Hiring is nearly at by those risky loans be- COMPLAINT through are moving slowly,as none in a matter of days, and even filed against a a standstill while firms determine comes known.Spiking fore- law firm over lenders and investors rene- retracted job offers, he says. BY TOMMY FERNANDEZ reasonable responses. closure rates make it diffi- securitization gotiate values and scour Not all Wall Street law firms “We are in a period of fear now,” cult to assign values to the documents transactions for potential have been affected, however. Mid- a number of New York law firms says Brian Hoffmann, chief of the bonds. risks. At Sonnenschein Nath dle-market shops—those that work are struggling to cope with uncer- New York mergers and acquisitions “When you can’t generate values & Rosenthal, the estimated average on deals of less than $500 million— tainty as the credit crisis roils Wall practice of London-based Clifford for deals, paralysis sets in,” says amount of time needed to close are still busy. Street and signs of a downturn ap- Chance. Richard Rosenbaum, president of deals is about five months, com- For example, Morrison Cohen pear on the horizon. Mergers and capital markets Greenberg Traurig. pared with two before July,says Paul See SQUEEZE on Page 25

November 5, 2007 | Crain’s New York Business | 23 CNYB 11-05-07 A 24 11/1/2007 6:06 PM Page 1

REPORT Foreclosure defense

Continued from Page 23 lawyers have stepped up to take on time on foreclosure prevention.The the cases for free, though the hous- number of foreclosures filed in the ing and urban development com- city, meanwhile, totaled 14,000 mittee of the New York City Bar through October, according to the Association recently voted to look Neighborhood Economic Devel- into legislative solutions to the opment Advocacy Project. Recent crisis. reports indicate foreclosures may Part of the reason for the tepid not peak until sometime in 2008. response to the crisis may be that the There are efforts by the govern- unique qualities of the city’s housing ment and nonprofits to find the market are masking the depth of the money to hire more lawyers on the problem here. front lines. But those efforts are The city’s home ownership rate moving slowly. of about 33.3%, compared with the national rate of 68%, makes the raw Under veto threat hat makes Amper one of the Crain's New York Business fastest-growing CPA foreclosure numbers seem low. W a measure co-sponsored by Demo- Manhattanites also may also find it firms and one of the largest firms in the US? It's the trust and confidence cratic Sen. Charles Schumer that easy to ignore a crisis that is affect- that thousands of clients have placed in us for more than 40 years. would give $200 million to legal ing mainly poorer neighborhoods in nonprofits nationwide passed the the other boroughs. Amper meets the needs of law firms and attorneys with needs such as: Senate in September and is expect- In places such as Bedford- ed to garner support from House Stuyvesant, one in 20 owner-occu- Litigation and valuation services, Audits, compilations and reviews members. However, it is part of a pied homes was in foreclosure even spending bill un- before the current including forensic accounting and Tax planning and return preparation der veto threat crisis started,esti- expert testimony from the president The number mates Solomon because it calls for Green, a research Bankruptcy/Restructuring Wealth management spending more of foreclosures fellow at New Accounting and bookkeeping than his budget York University’s proposed. filed in the city Furman Center Meanwhile, a totaled 14,000 for Real Estate For more information on how Amper fundraising effort and Urban Policy. can meet your needs, contact us today: that could allow That rivals rates nonprofits to hire through October in cities in Cali- Marty Blaustein (Litigation & Valuation) more lawyers is fornia and Flori- Allen Wilen (Bankruptcy/Restructuring) just getting under da that have made Brian Karnofsky (Accounting/Tax) way. The $1.35 headlines. million Preserve The strength 6 East 43rd Street Assets and Com- of the real estate New York, NY 10017 “Seeing Beyond the Numbers...” munity Equity program, sponsored market here also gives borrowers an 212.682.1600 www.amper.com by the city’s Housing Preservation out: selling, which may enable them and Development Department and to pay some or all of their mort- various nonprofits, is about to ask gages. banks and foundations to give money so that it can expand outreach and Hard to buy again legal services, says Pam Glaser, who try telling Shelia Cruz that’s the directs PACE for HPD. answer. When she started to doubt Lawyers in the field now say they her ability to handle her mortgage, are stretched to the maximum, she considered selling. But it had working nights and weekends. Ms. taken her 16 years of scrimping in Attie has taken four days off in the subsidized housing to save the past 16 months,though she deliber- money for a down payment. She ately does not have a BlackBerry so couldn’t have done it again. that she can leave the office behind The program the lawyers found when she goes home. for her allowed her to refinance her “At least my children are grown,” loan at a fixed 4.44% rate for 30 years; says Oda Friedheim, a Legal Aid at- she saves $100 a month. Thanks to torney who by all estimations is the the change, Ms. Cruz had the money sole lawyer working full-time on to paint her walls lime green. foreclosure prevention in Queens, “If it wasn’t for the help I got, I though some other legal projects might have lost my house,” she says. help seniors in housing trouble. “It’s “A lot of people get wealthy off these just my husband who never sees me.” mortgages, but you kill a person’ s Private lawyers rarely take fore- dream.” closure cases, because clients don’t have money to pay. So far, few COMMENTS? [email protected] MORTGAGE BIAS? Rates of subprime lending by race in 2006. WHITE BLACK HISPANIC ASIAN TOTAL Bronx 18.2% 38.8% 27.7% 18.9% 27.4% Brooklyn 9.9% 41.4% 31.6% 12.0% 23.6% Manhattan 0.7% 5.3% 1.4% 1.2% 0.8% Queens 13.7% 42.9% 29.8% 16.3% 24.4% Staten Island 12.3% 39.8% 28.4% 11.6% 17.1% Citywide total 9.1% 40.7% 28.6% 13.6% 19.8% Source: NYU’s Furman Center for Real Estate and Urban Policy CNYB 11-05-07 A 25 11/1/2007 5:57 PM Page 1

REPORT BUSINESS OF LAW

Squeeze on top-line business DEVIL IN THE DETAILS LAW FIRMS ARE steeling themselves for a tide of malpractice suits connected with the credit crisis. Eyes are on a $70 million complaint that Nomura Continued from Page 23 shift gears completely, some could property owners, as well as lease Capital Asset Corp. filed last year against Cadwalader Wickersham & Taft has had projects involving 45 hedge adapt within their niches, according work, which is still fairly strong. in state Supreme Court in Manhattan. The case concerns documents the firm funds in the past few months. “We to Mr. Gajer. But these alternatives probably crafted in 1997 for a $1.8 billion commercial mortgage securitization. still see a very active market,” says won’t be enough for most tightly fo- Lawyers are concerned that other financial services companies will be managing partner David Scherl. New avenues cused firms, and some simply won’t tempted to push the blame for failed deals onto the firms that handled Some firms have begun moving for example,M&A shops can find be able to survive on their own, in- them. The largest outfits are especially vulnerable to such suits, because they staff into bankruptcy and litigation work in takeovers, which increase in dustry insiders say. tend to use armies of low-level associates to churn out the massive amounts activities—the legal industry’s tra- this kind of market,and strategic ac- “Next year, you’re going to see a of complex paperwork involved in these transactions. ditional response to a downturn. quisitions, which remain relatively market where firms will get snapped “In the future, I expect more senior partners will be directly involved in Managers at Clifford Chance, stable in different economic cli- up,” Mr. Rosenbaum says. writing these documents,” says Stuart Meissner, who has his own firm. Greenberg Traurig and Sonnen- mates. Real estate specialists might schein are gradually reassigning as- get some restructuring activity for COMMENTS? [email protected] sociates and partners. That process of reallocating staff takes time and finesse, however. In addition, because the overall health of the economy remains sound, bankruptcies aren’t numerous enough to offset the loss of deal work. Finally, bankruptcies usually don’t offer repeat business, and legal fees sometimes go unpaid. Failure to diversify “if you wind upin a situation where the company implodes, there is no money to be found,” Mr. Gajer says. Countercyclical strategies re- Defensive Play? quire broader practice areas, and All Rights © Reserved. 2007 LLP. Dickstein Shapiro some firms neglected to diversify during the five-year expansion. Ex- Strategic Maneuver. perts say many rode the bull market and are now overloaded in areas like specialty finance or real estate. Though they will not be able to MAKING LEMONADE SOME FIRMS are already finding the silver lining in the credit debacle. About half a dozen have set up subprime practice groups to help their clients deal with the fallout. They might handle litigation resulting from deals that have gone sour, or they might negotiate FIRMS WITH deals that SUBPRIME involve PRACTICES mortgage- Jenner & Block backed Mayer Brown securities. Patterson Belknap Webb & Tyler The new Paul Hastings practices are a Pillsbury Winthrop sign that many Shaw Pittman firms believe Skadden Arps financial Slate Meagher & markets will be Flom affected for EXPERIENCE INNOVATION. Steptoe & Johnson much longer Source: LexisNexis than was EBS GROUP LIMITED DOES. initially expected, according to Molly EBS Group Limited (EBS), which was acquired by ICAP plc, is the world’s leading provider of foreign exchange trading and Miller, a vice president of market market data solutions to thousands of trading professionals and organizations. When patent infringement threatened its strategy at LexisNexis Research revolutionary technology in a competitive marketplace, EBS turned to Dickstein Shapiro’s experienced intellectual property Solutions, which sells services to attorneys for comprehensive, strategic counsel. EBS obtained a highly favorable settlement after a Markman decision in law firms. which the courts sided with EBS on all disputed claim terms. Additionally, the U.S. Patent and Trademark Office granted Stephen Ascher, a partner with Chicago-based Jenner & EBS several additional patents for its industry-leading technology, providing significant future coverage and protection. Block, which set up a subprime As a result, Dickstein Shapiro has become a key advisor to EBS for a wide range of intellectual property matters. practice of 15 to 20 lawyers, says: “This is unfolding slowly, but as bad as it is already, it’s WASHINGTON, DC | NEW YORK | LOS ANGELES going to get worse. This is a Prior results do not guarantee a similar outcome. gathering storm.”

November 5, 2007 | Crain’s New York Business | 25 CNYB 11-05-07 A 26 11/1/2007 6:54 PM Page 1

REPORT Bankruptcy court Your plans are spectacular. draws filings, But could your legal strategy controversy use a new blueprint? “The New York bench is sophis- Debtors’ plans win ticated, knowledgeable and respon- favor; are NY judges sive, and that’s what you look for in a judge when you file,” says Richard tough enough? Levin, head of Cravath Swaine & Moore’s new bankruptcy practice. BY FRAN HAWTHORNE But some critics say that companies choose to file in New York and bad times in the mortgage business Delaware, the other state that draws Cohen & Perfetto: A personalized approach to real estate law. nationwide mean a boom in the fed- filings from around the country, be- Itʼs a simple, but profound, premise: Each client represents an important relationship. eral bankruptcy court in lower Man- cause the judges tend to favor And every one of those relationships demands our complete attention and dedication. hattan,as companies from across the debtors. Lawyers are cautious when At Cohen & Perfetto, this is the philosophy that drives us. We make the connections country file for protection in the speaking about the attitudes of that build these relationships, adding depth and value to every partnership we forge, Southern District of New York. But judges for fear of alienating them. and every transaction that transpires. Whether your needs involve real estate, govern- the surge in bankruptcies is likely to But the overall effect of filers’ deci- ment incentives, banking, zoning, or litigation, itʼs not just a deal to us: Itʼs your deal. bring with it renewed questions sions is often acknowledged. about why companies file in New Learn more at www.cohenperfetto.com. York, and whether judges here are An understanding judge too lenient toward big companies in in new york, “you’re probably go- bankruptcy protection. ing to get an experienced judge who Already, filings in the Southern understands how key to the reorga- District have risen, climbing 17% nization these things [that debtor from April to mid-October, com- companies ask for] are. That may pared with the same period last year. seem to result in more pro-debtor Numbers are expected to increase rulings,” says Lisa Beckerman, an starting early next year,and it is like- attorney with Akin Gump Strauss 444 Madison Avenue, 5th Floor ly that some of the largest cases to Hauer & Feld, who has been the come out of the mortgage mess will counsel for creditors in such big cas- New York, NY 10022 C end up in New York. es as Delta Air Lines and Kaiser P COHEN & PERFETTO LLP Tel: 212-488-1300 Fax 212-813-0767 Attorneys at Law www.cohenperfetto.com

you expect the decline to continue? A: You would expect a drop after the aftermath of the bursting of the Internet bubble. Securities class- & action suits tend to be cyclical. … QA When you have big stock market declines, you tend to have lawsuits. Serving the Business Community Whether they are going to decline in the long term remains to be seen. Securities They’ve certainly picked up for Over 100 Years recently with the meltdown in the subprime lawsuits market. I Meeting your Real Estate Q: Mr. Weiss challenges with I Financial and Professional Service Firms on decline was indicted for innovative allegedly paying a I High Net Worth Individuals and Their Families group of people to expertise in: Indictment puts be available as I Manufacturing, Distribution and Retail future of class-action plaintiffs. How Michael Perino widespread do you I Nonprofit Organizations litigation in question think such practices are? A: I don’t want to comment on I Litigation Services ecurities class-action that. lawsuits are a hot topic I Media and Entertainment again, after a sharp drop in Q: To what extent will his the number of such suits indictment have a chilling effect? and the recent indictment A: He was certainly there at the Sof Melvyn Weiss,known as the god- very beginning. For a while, [law father of the securities class action. firm] Milberg Weiss would Elizabeth MacBride asked St.John’s typically appear in 50% of the University School of Law professor cases. But I think this is a highly Michael Perino about the future of competitive field.There are a class-action securities suits. number of law firms that are perfectly capable of and willing to Q: The number of securities bring securities class-action lawsuits. Certified Public 622 Third Avenue 88 Froehlich Farm Blvd. 660 White Plains Road class-action lawsuits dropped to Accountants and New York, NY 10017-6701 Woodbury, NY 11797-2921 Tarrytown, NY 10591-5107 59 for the first half of 2007. Q: What are the key legal issues Consultants Tel 212 503 8800 Tel 516 992 5900 Tel 914 524 9000 That’s just a little more than half being decided in the Supreme Court’s Fax 212 370 3759 Fax 516 992 5800 Fax 914 524 9185 of what we had been seeing. Do Stoneridge Investment Partners v. CNYB 11-05-07 A 27 11/1/2007 6:57 PM Page 1

REPORT BUSINESS OF LAW

Aluminum. come in for criticism about leniency ticularly lenient in allowing union Critics acknowledge that the toward debtors. With its huge pool contracts to be broken. 1978 federal Bankrupty Code en- of lawyers and bankers, New York Some judges also approve rich courages judges to acquiesce to dominated the bankruptcy scene bonuses for management. Ms. debtors’ plans. The pressure is even until the late 1980s. Delaware over- Beckerman points to Northwest greater with big cases. took it for the next decade, largely Airlines’bankruptcy case last spring, “The New York courts get the because many corporations are in which Judge Allan Gropper larger cases, and courts want to see headquartered there and local law granted Chief Executive Doug the larger cases succeed,” says firms charge less than New York Steenland stock and options poten- Lawrence Handelsman, co-chair of firms. Then, as Delaware dockets tially worth $26.6 million.That in-

the financial restructuring practice filled to overflowing, more compa- furiated the unions, which had giv- lindström bekka at Stroock & Stroock & Lavan. nies began filing in New York. en up $1.4 billion worth of annual But a judge that allows compa- pay and benefits,and annoyed some tion plans. The Bankruptcy Code one to four extensions. But in New nies to avoid making hard decisions Contracts issue creditors. gives a debtor the exclusive right to York, LTV Steel, for instance, got may ultimately hurt their chances of one reason bankrupt companies New York judges are also known submit a plan for 120 days, and then more than half a dozen. survival. Statistics suggest that choose New York is that its appel- for for granting multiple extensions other interested parties may submit companies that emerge from bank- late,or circuit,courts have been par- to companies proposing reorganiza- plans. Typically, courts might grant COMMENTS? [email protected] ruptcy protection in New York and Delaware re-enter it more often than companies that come out of bankruptcy elsewhere. About 22% of cases filed in those two courts from 1991 through 2000 were back in bankruptcy within five Deposit Your Business Checks years, versus just 15% nationwide, according to Lynn LoPucki, a pro- Without Leaving Your Desk fessor at the UCLA School of Law who maintains a bankruptcy venue database.It’s too soon to analyze the results since then,Mr.LoPucki says. Kathleen Farrell-Willoughby, the clerk of the Southern District Bankruptcy Court, points out that the 11 judges on the court, who are appointed by judges in the Second Circuit Court of Appeals, don’t all rule alike. “Even within the court, you might find one judge ruling one way on one case and another judge ruling another way in a case with a similar issue.” New York and Delaware both

Scientific-Atlanta Inc. case? A: If you want to boil it down to simple dollars and cents, what’s at stake is whether someone other than the company and the officers is typically going to be subject to a securities class action, whether … accountants or bankers or At Banco Popular, we provide potentially lawyers, for that matter, customized business solutions to are going to be on the hook. In the help your business run smoothly. past 10 years, they have paid some very big penalties. If you look at the Enron settlement, which is north of Our Image Remote Deposit service provides you with the capability FREE $7 billion now, a very large portion Ask us how to get a to image-capture check payments and deliver electronically those has come from the investment Scanner for your Business. banks. Accountants have also paid images to the Bank over a secure internet connection. out some very big damages. Enjoy the Convenience. Q: In January, Mayor Michael Make all your bank deposits right Call Us Today! Bloomberg and Sen. Charles Schumer from your offi ce. reported that New York was losing its 1-800-250-6968 edge as the world’s financial capital, in Speed up your access to funds. Gain valuable check fl oat part because of class-action securities litigation. Do such suits hurt business? benefi ts by getting deposits into your account faster than ever. A: This is the $64,000 question. On the one hand, proponents say Electronic access. Images can be searched, retrieved, saved the suits deter fraud and provide compensation to injured investors. and printed electronically. Get detailed reports on current and On the other hand, you have oppo- past deposit data for analysis. nents saying that what these suits do is create a huge settlement value and they lead plaintiffs’ attorneys to bring largely nonmeritorious cases. I tend to be skeptical. I think they have very large costs and the benefits in terms of deterrence and compensation are hard to pin down. ©2007 Banco Popular North America. Member FDIC.

COMMENTS? [email protected]

November 5, 2007 | Crain’s New York Business | 27 CNYB 11-05-07 A 28 11/1/2007 9:04 PM Page 1

REPORT BUSINESS OF LAW bekka lindström bekka New York Area’s Largest Law Firms Ranked by number of area lawyers

2007 lawyer breakdown, by practice area2

Dewey & LeBoeuf 7 625 156 401 68 1 14 133 5 9 14 1 169 24 34 11 210 114 1,396 125 W. 55th St.; (212) 424-8000 581 5 www.dl.com; Steven H. Davis Davis Polk & Wardwell 562 126 410 26 aaaaaaa aaaaa 167 1,378 450 Lexington Ave.; (212) 450-4000 504 6 www.dpw.com; John R. Ettinger Debevoise & Plimpton 503 108 356 39 232 214 48 9 98 1,170 919 Third Ave.; (212) 909-6000 448 7 www.debevoise.com; Martin Frederic Evans Cleary Gottlieb Steen & Hamilton 499 83 400 16 aaaaa aaaaaaa 89 1,337 1 Liberty Plaza; (212) 225-2000 435 8 www.cgsh.com; Mark A. Walker Sidley Austin 498 146 313 39 2 10 292 3 11 102 31 29 8 10 71 944 787 Seventh Ave.; (212) 839-5300 458 9 www.sidley.com; Joseph W. Armbrust, George J. Petrow Proskauer Rose 494 140 317 37 129 11 118 173 27 25 11 81 1,143 1585 Broadway; (212) 969-3000 476 10 www.proskauer.com; Allen I. Fagin Cravath Swaine & Moore 492 87 402 3 232 11 221 17 11 184 1,468 825 Eighth Ave.; (212) 474-1000 462 11 www.cravath.com; Evan R. Chesler Cadwalader Wickersham & Taft 478 76 325 77 9 42 215 3 14 3 101 62 22 7 103 983 1 World Financial Center; (212) 504-6000 406 12 www.cadwalader.com; Robert O. Link Jr. Sullivan & Cromwell 473 111 331 31 33 9 130 12 21 20 145 22 29 17 35 153 1,413 125 Broad St.; (212) 558-4000 444 13 www.sullcrom.com; H. Rodgin Cohen Shearman & Sterling 459 86 326 47 aaaaaaaaaaaaa 88 965 599 Lexington Ave.; (212) 848-4000 437 14 www.shearman.com; Rohan S. Weerasinghe Schulte Roth & Zabel 450 77 345 28 aaa a aaaaaaa 76 850 919 Third Ave.; (212) 756-2000 453 15 www.srz.com; Executive Committee Wilson Elser Moskowitz Edelman & Dicker 428 157 257 14 aaaa aaaaa aa 39 771 150 E. 42nd St.; (212) 490-3000 467 16 www.wilsonelser.com; Thomas W. Hyland

Continued on Page 30

28 | Crain’s New York Business | November 5, 2007 Project9 10/16/07 4:01 PM Page 1 CNYB 11-05-07 A 30 11/1/2007 8:31 PM Page 1

REPORT BUSINESS OF LAW

2007 lawyer breakdown, by practice area2

2007 lawyer NY area breakdown lawyers ■ Partners4 20072/ ■ Associates2 NY area Rank Firm/senior partner(s) in New York1 20063 ■ Of counsel5 Banking and commerceBankruptcy Corporate and securitiesEntertainmentExecutive compensation/benefitsHealth care Intellectual property/newLabor and employment mediaLitigation Real estate Tax Trusts and estatesOtherParalegals4 personnel6 Willkie Farr & Gallagher 427 100 312 15 26 165 11 25 2 138 34 16 9 1 69 963 787 Seventh Ave.; (212) 728-8000 381 17 www.willkie.com; Jack H. Nusbaum Fried Frank Harris Shriver & Jacobson 425 93 310 22 23 183 16 7 112 52 20 9 3 86 910 1 New York Plaza; (212) 859-8000 376 18 www.friedfrank.com; Valerie Ford Jacob, Justin Spendlove Latham & Watkins 419 81 328 10 aaa aaaaaaa a 51 716 885 Third Ave.; (212) 906-1200 354 19 www.lw.com; David A. Gordon White & Case 403 114 265 24 aaaaa aaaaaaa 62 1,052 1155 Sixth Ave.; (212) 819-8200 434 20 www.whitecase.com; Hugh Verrier Kaye Scholer 384 102 231 51 aaa a aaaaaaa 80 853 425 Park Ave.; (212) 836-8000 365 21 www.kayescholer.com; Barry Willner Milbank Tweed Hadley & McCloy 370 87 270 13 116 23 88 3 27 1 77 8 11 12 4 58 724 1 Chase Manhattan Plaza; (212) 530-5000 330 22 www.milbank.com; Mel M. Immergut Kramer Levin Naftalis & Frankel 346 98 206 42 aaaaaaaaaaaaa 71 755 1177 Sixth Ave.; (212) 715-9100 319 23 www.kramerlevin.com; Paul S. Pearlman Clifford Chance U.S. 331 75 226 30 21 7 44 5 5 53 11 22 163 27 677 31 W. 52nd St.; (212) 878-8000 299 24 www.cliffordchance.com; Craig S. Medwick Greenberg Traurig 329 135 160 34 9 9 54 8 7 51 10 74 71 16 4 16 52 663 200 Park Ave.; (212) 801-9200 333 25 www.gtlaw.com; Robert J. Ivanhoe

New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain’s New York Business uses staff research,extensive surveys and the most current references available to produce its lists, butthere is no guarantee thatthe listings are complete. To qualify for this list, firms musthave an office in the New York area. All firms in the top 25 have New York area offices in Manhattan. All information was supplied by the firms. In the breakdown by practice area, iflawyers practice in more than one area, they are counted only once, under their predominant area of practice. Indicates thatthe firm has the practice butthe number oflawyers is unavailable. 1-May indicate managing partner or other title. 2-As of Sept. 1, 2007; includes first-year associates starting this fall and winter who were hired on or before Sept. 1, 2007. 3-As ofDec. 31, 2006. 4-As of Sept. 1, 2007. 5-As of Sept. 1, 2007; includes counsel and special counsel.6-Includes attorneys and staff as of Sept. 1, 2007, and incoming first-year associates. 7-Dewey Ballantine and LeBoeuf Lamb Greene & MacRae merged, effective Oct. 1, 2007. All figures are pro forma to reflect merger. Research: Denise Southwood and Adrianne Pasquarelli

JOE TORRE ON THE ART OF MANAGING “Trust. I couldn’t manage without it.”

“Management styles run the gamut. From intimidation to compliments to coddling. You have to know your people. I learned long ago what motivated me. It was tossing me a glove and trusting I’d do the job. It’s the same in any business. Give talented people an opportunity, and trust they’ll take advantage of it.” Trust. It’s one of the reasons J.H. Cohn excels in long-term client relationships. Trust us.

How Are You Managing? SM

Major offices in New York, California, Connecticut and throughout New Jersey www.jhcohn.com 1-877-704-3500 CNYB 11-05-07 A 31 11/1/2007 5:59 PM Page 1

REPORT Group of elite British firms ÜÉäéáåÖ=óçì storms New York ÄìáäÇ=~= represented the Chinese company Expand to do global, from the firm’s Manhattan office. Business Valuation local business; “In the old days,Clifford Chance ÄÉííÉê=Å~ëÉ Economic Damages in Hong Kong or China would have international worked with Lenovo and hired a Fraud & White Collar Crime reputations help New York firm to help them,” Mr. Personal Injury–Employment Medwick says. This is what our Litigation & Valuation Consulting BY STEVE GARMHAUSEN Forces on the ground Group is all about. what’s more, with ownership of in the past, Linklaters partnered companies frequently changing, a With over 2,000 matters and hundreds of court with a New York law firm when the client may be based in Europe one day appointments and appearances, we are one of the renowned London firm needed lo- and the United States the next, says cal help on an international mergers Frank Burch, joint chief executive of largest and most experienced forensic accounting and acquisitions deal. DLA Piper U.S.,an international firm groups in the New York metropolitan area. But when Linklaters represented with 175 lawyers in New York. Hav- a group led by Royal Bank of Scot- inga core professional staff here gives ëìéÉêáçê land in a successful takeover bid for law firms a leg up in such situations. íÜáåâáåÖK financial giant ABN Amro Holding Naturally, firms also find plenty earlier this year, it handled all the of domestic work. For example, ìåã~íÅÜÉÇ New York-based work itself, thank Clifford Chance represented SL áåíÉÖêáíóK you very much. Green Realty Corp. in its $6 billion What had changed? Manpower, acquisition of Reckson Associates For more information, contact says Paul Wickes, Linklaters’ U.S. Realty Corp. last year. And more senior partner. In recent years, the than 60% of the work done in Fresh- Martin P. Randisi, CPA, ASA firm has more than quadrupled its (212) 697-6900 local roster of lawyers, to 150. [email protected] “It’s a reflection of the increasing LEGAL CENTERS CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS ADVISERS. importance of New York to the Holtz Rubenstein Reminick LLP firm,” Mr. Wickes says. Magic Circle members have estab- 1430 Broadway, New York, NY 10018 lished big offices in a handful of 125 Baylis Road, Melville, NY 11747 Linklaters is not alone in its as- global cities. sessment. Four of the five members www.hrrllp.com of the Magic Circle—a group of his- City Number of firms toric London firms—have dramati- ©2007 Holtz Rubenstein Reminick LLP cally enhanced their New York oper- Paris 4 ations.Allen & Overy now has more Frankfurt 3 than 160 lawyers here, up from 30 in 2000.The number of lawyers at Clif- Hong Kong 3 ford Chance’s New York office has New York 3 risen 19% in the past three years, to Brussels 333.And Freshfields Bruckhaus De- 2 ringer has roughly doubled its con- tingent over the past five years,to 85. Slaughter and May, the other fields’ New York office is home- member of the Magic Circle, closed grown,notes Brian Rance,the firm’s its New York office in 2004 as part managing partner here. of the firm’s global retrenchment. Having a “meaningful presence” Though the expansion trend is in New York is important for firms driven partly by local opportunities that want to be seen as global play- in the world’s financial capital, it is ers and also hope to get in on domes- primarily due to the globalization of tic action, says Ian Shrank, co-man- business—in which New York is a aging partner of Allen & Overy’s key player, experts say. New York office. “In the last five years, you’ve seen Mr.Burch says:“It’s a question of a real increase in the international- relationships and scale. If you have ization of the work our clients need 30 or 40 lawyers in New York, you lawyers for,” Mr. Wickes says. are not taken as seriously as someone with 200.” Cross-border phenomenon It has been easier for Magic Cir- from m&a to litigation to capital cle firms to break into the New York markets,business and its legal needs market and hire staff here than it has are spilling across borders to an un- been even for many U.S.-based firms. precedented degree, says Craig International financial services com- Medwick, Clifford Chance’s man- panies were familiar with the mem- aging partner, Americas. bers, which helped open doors in the THAT’S WHAT WE DO, EVERY DAY.® With Special Counsel, your search is over — that’s because In 2004, when Italian food giant United States and made the firms at- we are the leading provider of legal staffing services nationwide. Whether you need attorneys, Parmalat SpA initiated a legal bat- tractive to potential staffers. (212) 218-7155 paralegals, or other legal staffing support, we can provide the most qualified professionals — from tle against Citigroup, a Clifford “The Magic Circle firms had a (800) 737-3436 general workload management and litigation support to project management for e-discovery and Chance client, the firm swung into wonderful client base in Europe and specialcounsel.com action in Italy as well as New York. Asia,with which we could walk into document review projects. And with specialized services like medical document review, deposition And when computer maker Lenovo any major financial institution,”Mr. digesting, and court reporting, all of your legal needs are just a phone call away. Group took over IBM’s personal Shrank says. computer division in a $1.75 billion deal the same year, Clifford Chance COMMENTS? [email protected]

Interfaith hospital

COST CRUNCH: profits; poor may Reducing expenses was necessary for survival, says CEO Edward Glicksman, be paying price with Eboné McIntosh, vice president of Axing maternity care boosts Brooklyn facility administration. central Brooklyn, the state and fed- BY GALE SCOTT eral governments have long poured money into efforts to keep it from because Interfaith Medical Center closing. cares for people who live in medical- Starting in the 1990s, the state

buck ennis ly underserved neighborhoods of provided Interfaith with funds to hire a turnaround consulting firm, Kurron Shares of America Inc.,as its manager. Kurron gradually slashed the number of beds to the current 287, from 620. But the hospital— formed by the merger of Brooklyn Jewish Hospital and St.John’s Epis- copal Hospital in 1982—kept losing money. So Kurron looked for other ways to shrink Interfaith, which primarily serves Bedford-Stuyvesant and Crown Heights.In 2004,it shut two primary care clinics that it said were underused; it also stopped offering obstetrical services because of the high cost of malpractice coverage. The moves saved $14 million that year. By 2006, the hospital had a surplus of $8.6 million on a budget of $221.5 million. But critics question whether In- terfaith’s new profitability has come at the expense of the poor, who need the services that Interfaith has cut. “We have a major crisis in maternity care in central Brooklyn,” says Shuttering services led to a ce. With 24-hour support and America’s Most surplus of $8.6 million last year

Ngozi Moses, executive director of the Brooklyn Perinatal Network, a nonprofit group that helped procure a three-year, $600,000 grant to start a midwifery service at Interfaith that is now defunct.“It is disgusting to me to hear that a hospital that walked out on mothers and babies is now being profitable.” req’d per line. While supplies last. Ms. Moses notes that there are no other hospitals nearby. A necessary move kurron’s edward glicksman, chief executive of Interfaith, says that pregnant patients appear to have found care elsewhere and that cutting costs was necessary to ensure the hospital’s survival. “We want to be the best community hospital we can be,”Mr.Glicks- man says,“and we’re well on the way.” Nevertheless, reduced access to obstetrical care has undeniably had an effect on the area. Interfaith once delivered more than 1,500 babies a year.The loss of its maternity unit— combined with the closing of nearby St. Mary’s Hospital last year— has left central Brooklyn with an

32 | Crain’s New York Business | November 5, 2007 CNYB 11-05-07 A 33 11/1/2007 8:04 PM Page 1

acute shortage of obstetrical beds. to practice in the hospital’s new am- Mr. Glicksman counters that by bulatory care wing, which could eliminating maternity care, Inter- help ease the strain on the emer- faith was able to invest in improve- gency department. ments, including a new lobby with State officials are watching to see amenities such as armchairs and so- if he is right. fas upholstered in orange velvet, and In its final report on how to a huge flat-screen television. The rightsize the state’s hospitals, the hospital also has a new endoscopy Berger commission describes Inter- unit, and a multistory building for faith as an essential hospital,adding, medical offices will open soon. “They seem to be on their way to a Some patient advocates, howev- stable operation.” But, as the report er,say the price of success is too high. notes, “access to primary care services for this community is a signifi- Backups in the ER cant challenge.” the hospital’s own num- In other words,one former bers show that since the state Department of Health clinics closed, emergency official says: “The Berger room visits have risen dra- 46KNUMBER commission spared Interfaith matically; they hit 46,106 in of emergency room visits last because of the community it 2006, up from 39,111 in year, versus serves, but it also warned In- 2005. Patients routinely 39,111 in 2005 terfaith that it had to step up wait long hours before re- to the plate on primary care. ceiving care. If they’re admitted, We haven’t seen that happen.” they may spend the night in the Dr. Linda Brady, chief executive IS MONEY emergency department because no of Kingsbrook Jewish Medical beds are available. Center in East Flatbush, agrees. Mr.Glicksman says that the hos- But she points out that Interfaith is Everyone who runs a business knows that time is a precious commodity. pital is adding a dozen medical-sur- not the only Brooklyn hospital gical beds to ease overnight stays in struggling to provide care. Business Banking from HSBC has solutions to help you make the most of the ER,and it’s using staff efficient- “In this economic climate, any- your time and money. ly to make the most of the primary one who can create a surplus has to >Visit your local branch care it still provides. For instance, it be commended,” Dr. Brady says. offers disease-management pro- “We need real reform in our system >1-866-427-2103 grams under which nurses call pa- of paying for outpatient care. Inter- >us.hsbc.com/business tients with chronic illnesses, such as faith closed its clinics and obstetrics diabetes, to make sure that they’re beds because it couldn’t afford to following prescribed regimens. keep them open.” Furthermore, Mr. Glicksman Products in the United States offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both banks are Member FDIC. expects that physicians will be eager COMMENTS? [email protected] ©2007 HSBC Bank USA, N.A.

How New York companies can meet international accounting challenges

For growing New York area businesses today, the greatest challenge Some things companies is often figuring out where the next challenge is coming from. should consider include: “Businesses are operating in tremendously dynamic conditions,” says Steve Mayer, executive managing Foreign operations. Companies with director, RSM McGladrey. “Our clients with multinational operations are looking at International Financial operations in countries where IFRS is the Reporting Standards (IFRS) to simplify their international accounting. The new risk-based audit standards accepted standard may need to file financial present opportunities for more informative audits, but also mean reevaluating current procedures and reports that meet both local GAAP and control environments.” IFRS standards. They may also need to reconcile to U.S. GAAP to meet reporting Don Lipari, executive managing director, RSM McGladrey, agrees. “Lookat the subprime credit situation. requirements of the U.S. parent company. That’s raised issues for our financial services clients certainly, but it has also almost frozen the commercial paper market, which complicates access to capital for a variety of companies. More than ever, our Joint ventures. If a publicly traded company clients are looking for holistic advice that combines financial, operational, industry, regulatory and other headquartered in an IFRS reporting nation perspectives into creative solutions.” holds a 20 to 50 percent interest in a U.S. company, the U.S. firm will need to prepare That’s one reason GGK joined McGladrey & Pullen to build on both firms’ traditions of informed, practical IFRS reports to satisfy the partner’s equity advice. Our new assets expanded our breadth and depth of services through 8000 professionals and nearly accounting requirement. 100 offices across the U.S. New markets. Strong knowledge of the “We bring an intense focus on mid-sized companies,” says Mayer. “We offer complementary experience in international standard may help cut red tape key industries, strengthening our ability to serve our clients’ needs.” in securing local permits and licenses in foreign markets. Call today to learn how RSM McGladrey can help your company.

Steve Mayer Don Lipari Executive Managing Director Executive Managing Director

1185 Avenue of the Americas 750Third Avenue 5th Floor 9th Floor New York, NY 10036 New York, NY 10017 212.372.1000 212.986.3900

RSM McGladrey is a leading professional services firm providing accounting, tax and business consulting. RSM McGladrey operates in an alternative practice structure with McGladrey & Pullen LLP, a partner-owned CPA firm that delivers audit and attest services. Through separate and independent legal entities, they worktogether to serve clients’ business needs. Together, the companies rankas the fifth largest U.S. provider of accounting, tax and business consulting services (source: Accounting Today), with 8,000 professionals and associates in nearly 100 offices. RSM McGladrey Inc. and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms. RSM McGladrey is a wholly owned

November 5, 2007 | Crain’s New York Business | 33 CNYB 11-05-07 A 34 11/1/2007 9:31 PM Page 1

FREE TRIALS Fashion guru to remake Kate Spade OF HEALTH PULSE NEWSLETTER fashion lines. Ten years ago, she keeping the designers focused on New Liz Claiborne helped turn London’s once-dowdy the goal, even though any changes CRAIN’S OFFERS READERS A FREE exec will oversee Burberry brand into an international will probably rile critics, she says. two-week trial subscription to fashion sensation by redesigning the Naysayers came out of the wood- Crain’s Health Pulse online expansion of brand; line and boldly putting Kate Moss in work to second-guess Burberry’s newsletter. stick-to-it approach a Burberry-check bikini. More re- more fashion-forward approach, Pulse deals with cently, she added a dash of style to Ms. Lloyd recalls, but the design the business of Gap Inc.’s Banana Republic brand. team stuck together and saw it health care. It BY ELISABETH BUTLER CORDOVA through. supplies informa- Has what it takes Parent company Liz Claiborne tion on mergers and as the new co-president and cre- “deborah is a gifted designer needs Kate Spade to become a ma- affiliations, ative director of Liz Claiborne Inc.’s with a unique ability for creative jor success quickly. It is one of four contracts, executive Kate Spade division, Deborah leadership,” says Karen Harvey, “power brands” selected by Chief appointments, regulatory actions Lloyd has some big—and chic— founder of Karen Harvey Consult- Executive William McComb to and legislative developments in shoes to fill. lead the company’s aggressive retail New York City and state, the Last week,Ms.Lloyd took over a Kate Spade is expansion. Kate Spade is projected northern suburbs, Long Island brand that had, until recently, an- to do about $90 million in volume and nearby areas in New Jersey. swered only to its founder. Design- projected to do this year, selling via department An annual subscription is er Kate Spade’s unique sense of style stores and its own 26 retail stores, $295. The one-page newsletter is still shows on every handbag, shoe $90 million in 14 outlets and an Internet store. available by 6 a.m., Monday and stationery sheet. Ms. Spade left Mr. McComb expects Kate through Friday. Subscribers Liz Claiborne just weeks after man- Spade to generate between $250 receive Pulse Extra, an additional agement announced plans to turn volume this year million and $350 million and to the brand into a retail powerhouse have more than 100 retail stores by page, on Wednesday mornings. with many new categories. 2010. For your free two-week trial, go “She did an amazing job, and she to www.crainsnewyork.com. bill bernstein did it on instinct,” Ms. Lloyd says of Big plans Click on Health Pulse under DEBORAH LLOYD will need to keep designers “Newsletters,” on the right side her predecessor. “The line has that ing Group, the executive recruit- “she gets it,”Mr.McComb says of focused on their goal, despite naysayers. quirky sense of humor and use of ment firm that placed Ms. Lloyd at Ms. Lloyd. “She cares deeply about of the home page. Under “Health color.” Liz Claiborne. [Kate Spade’s] integrity but wants Pulse Tools,” click on “Request a Ms. Lloyd, 43, believes she’s the Ms. Lloyd says her first task on to explode it wide open.” and know a lot about stores,” Ms. Free Trial.” After registering, you perfect person to reinvent Kate the job is explaining to her design Liz Claiborne is still searching Lloyd says. “I’m not one of those will receive confirmation by Spade and turn it into a must-have team how she plans to expand the for a co-president to complement who’s good with figures.” e-mail with instructions on brand. To her credit, she’s made a line. The trickiest part of overhaul- Ms. Lloyd’s creative strengths. “I’m accessing the trial issues. habit of doing just that with other ing such a well-known brand will be hoping they will be really strategic COMMENTS? [email protected] FRONT PAGE VIEWS

Newsworthy Availabilities in The New York Times Building 620 Eighth Avenue

Entire 46th ] oor: 32,545 RSF Entire 45th ] oor: 30,524 RSF 63,069 RSF Total Available

Full-Floor Identity | Highly Ef\ cient Floorplans 9’11” Finished Ceilings | Floor-to-Ceiling Glass Windows Spectacular Panoramic Views

Convenient to Grand Central, Penn Station & Port Authority

Exclusive Sublease Agent: Ken Rapp James Ackerson 212.984.7171 212.984.6647 [email protected] [email protected]

34 | Crain’s New York Business | November 5, 2007 LMT-1001 Legg Mason Seblet Ad Crains 4x7.indd 3 10/29/07 1:51:47 PM CNYB 11-05-07 A 35 11/1/2007 7:05 PM Page 1

SMALL BUSINESS Co-op hopes sales come naturally SAVE Organic food store in Brooklyn works to keep its 30-year edge as big rivals crop up

BY SHIRA BOSS-BICAK IN A NUTSHELL or 30 years, the Flat- FLATBUSH FOOD bush Food Co-op pret- ty much had a corner on CO-OP the market for health- NUMBER OF EMPLOYEES ful, organic food in its 30 now; 40 at new location central Brooklyn neighborhood. F REVENUES $4 million No more.Natural Frontier,an or- Now you can deposit checks from your business and see them in your account ganic grocer with three Manhattan STORE SIZE 2,000 sq. ft. now; in as little as 24 hours. Remote Deposit Capture¹ is just one of the many solutions stores, moved into a 2,200-square- 6,000 sq. ft. at new location from HSBC that can save you time and help your business thrive. foot space just three blocks down the FOR SALE Offerings include co-op street in June. Whole Foods and T-shirts as well as organic kohlrabi, >Visit your local branch Trader Joe’s will open outposts in fresh goat’s milk and ghee. Brooklyn next spring, and Fairway >1-866-427-2103 debuted there last year, bringing its DON’T EVEN ASK FOR IT Spam. >us.hsbc.com/business specialty foods and organic offerings The store’s Web site advises that to the borough for the first time. the product has been out of stock “Co-ops started originally be- since the co-op opened. cause of the lack of these goods,”says ¹For all checks correctly scanned using Remote Deposit Capture scanner and transmitted to HSBC by 8:00 pm Eastern Time, customer will receive same-day ledger credit of funds. All checks scanned after 8:00 pm will post the following business day. Mel Braverman, a business consult- The Bank’s policy is to make funds from customers’ deposits quickly available to the customer according to a schedule which is ant with Cooperative Development run from 7 a.m. to 11 p.m., and it based on where the check is drawn. Certain fees and charges may apply. For details, please contact an HSBC business representative at 877-HSBC-BIZ option 3. Products in the United States offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both Services in Madison, Wis., who has started a delivery service last year. banks are Member FDIC. ©2007 HSBC Bank USA, N.A. worked with the Flatbush Food Co- In addition, Mr. Smith enjoys a op for many years. “Now they’re couple of key advantages in compet- readily available.” ing with far larger rivals. In response, the Flatbush co-op, run by Barry Smith,is scrambling to Co-op city expand its offerings and to add and he does much of his buying improve services.Mr.Smith was a pi- through the National Cooperative oneer in the area when he opened Grocers Association, which pools the store in his basement in 1976,and members’ orders in order to get vol- he doesn’t want to be muscled out. ume discounts and negotiate special This past summer,the co-op took promotions, and offers advice on its biggest step ever: It signed a lease new products and services.The gen- for a new site, just across Cortelyou eral manager of the spiffy Natural Road, that had been occupied by an Frontier down the street admits that Associated Supermarket. The co- the company has had to lower mar- op will move into that location, gins below the levels it enjoys in Metropolitan Transportation Authority which has three times as much Manhattan in order to compete in A Request for Expression of Interest space, by the end of the year. its Brooklyn location. “Space has been our biggest The Flatbush Food Co-op also Opportunity for Transit Oriented Development problem,” says Mr. Smith. boasts an asset that none of its rivals The co-op is so cramped that has:its status as a community-owned at the MTA Metro-North Railroad Beacon Station shopping is hard, and making mon- and -run retailer. It has 3,000 mem- ey is even harder.Store margins have bers,up tenfold from when the co-op MTA Metro-North Railroad (MNR), acting through the Metropolitan Transportation Authority (MTA), is issuing been pinched, since it costs more to moved to Cortelyou Road in 1985. a Request for Expression of Interest (RFEI) on October 30, 2007 to seek proposals from qualified developers to establish a dynamic, mixed-use, Transit Oriented Development at the Beacon Train Station, New York.* stock goods in small quantities.And Unlike some co-ops, the Flat- there’s little room to display prod- bush store doesn’t insist that shop- The Site: Approximately 17 acres adjacent to the station overlooking the Hudson River in the city of Beacon, NY. ucts prominently,much less to add a pers become members, let alone re- Information Available: To obtain a copy of the RFEI and register to participate in the process, please use the following contacts: potentially lucrative deli section. quire them to work at the co-op. Membership does have its advan- To receive a copy of RFEI: Caught unprepared tages,however.Members qualify for Odette Forestier, MTA Real Estate Department “prepared foods have been a full equity by making deposits total- 347 Madison Avenue, 8th Floor, New York, NY 10017 Tel 212 878 7049 growth sector for a number of years, ing $200,which can be made in year- For RFEI/solicitation questions: and the Flatbush co-op hasn’t been ly installments of $25.In return,they David Roth, Senior Real Estate Manager, MTA Real Estate Department able to take advantage of those op- get a discount on all purchases and a 347 Madison Avenue, 8th Floor, New York, NY 10017 Tel 212 878 7190 portunities,” Mr. Braverman says. say in the running of the business. For project/Beacon site questions: That will change with the advent Decisions are made by a board Greg Sylvester, Program Manager Planning, MTA Metro-North Railroad of the new store. Organic produce, elected by the members.The process Business Development, Facilities and Marketing the store’s top category, will get can be cumbersome: The move to a 347 Madison Avenue, New York, NY 10017 Tel 212 340 4914 plenty of prime space, and Mr. new store was discussed and sites Email: [email protected] Smith intends to add more prepared were evaluated for several years. website: www.mta.info (click on MNR Beacon Station TOD RFEI) foods and bulk items. Nonetheless, says Sander Hicks, *This RFEI will provide an opportunity to discuss development opportunities with Metro-North Railroad, but will not result in the The co-op has pulled off one sur- a longtime member and the owner of award of a contract to develop the site.Any award will be made through a subsequent Request for Proposal (RFP) process. prising coup: recruiting an expert the Vox Pop café and bookstore down from a Trader Joe’s on Long Island the street,“the co-op is run more like to be its produce manager. Plans are a commercial enterprise.” He notes www.mta.info afoot to hire 10 more employees. that Mr.Smith “is a child of the ’60s, Those moves come on the heels but he is also an ex-Marine.” of earlier upgrades. The co-op has steadily expanded hours,which now COMMENTS? [email protected]

November 5, 2007 | Crain’s New York Business | 35 CNYB 11-05-07 A 36 11/1/2007 5:49 PM Page 1

THE WEEKS AHEAD

Protecting Your Assets THIS WEEK’S EVENTS into a business. 5:30 p.m. to 7 p.m., 188 NOVEMBER 6 Madison Ave., room 018. Free. Center for Communication holds (212) 592-7000. Around the World seminar on public relations strategies for NOVEMBER 8 the global era. 6:30 p.m. to 8 p.m., NYU New York City Business Networking Kimmel Student Center, 60 Washington Group holds networking reception for Lovells has launched a US patent litigation practice Square South, Silver Board Room, 914. small business owners. 6 p.m. to 8 p.m., focused on life sciences. Free. Registration required. Banco Popular, 441 Second Ave. Fee: (212) 686-5005 or [email protected]. $10. (212) 679-1201 or Patent litigation partners David Leichtman and NOVEMBER 6 [email protected]. Veronica Mullally and their team bring a wealth of Association of Prospect Researchers for NOVEMBER 8 experience to the firm. They join over 250 intellectual Advancement, greater New York Business Marketing Association, New property lawyers in Europe and Asia, providing clients chapter, holds seminar on estimating gift York City, holds conference on building with genuine global reach. capacity and developing rating systems. brand loyalty. 7:45 a.m. to 9:30 a.m., 6 p.m. to 7:30 p.m., Museum of Modern Harvard Club, 27 W. 44th St. Fee: $55 Lovells’ intellectual property practice is one of the Art, 11 W. 53rd St. Fee: free for members, $70 nonmembers, $10 largest in the world and is consistently ranked as one members, $15 nonmembers. students. (973) 962-6300. of the best in the market – #1 in the “PLC Which (212) 229-5662, ext. 3559, or NOVEMBER 8 Lawyer Global Intellectual Property Super League [email protected]. Networking for Professionals holds 2006.” Lovells is one of the world's largest law firms NOVEMBER 6 networking reception. 7 p.m. to 9 p.m., with over 1700 attorneys in 26 offices worldwide. Artemus Group Inc. holds business card Tribeca MedSpa, 114 Hudson St. Fee: exchange. 7 p.m. to 9 p.m., Fashion 40, $15 members and $25 nonmembers in To find out how Lovells can help you please contact: 202 W. 40th St., second floor. Fee: $20. advance; $30 for all at door. David Leichtman (646) 415-8746 or (212) 227-6556 or [email protected]. [email protected]. +1 212 909 0678 NOVEMBER 6 NOVEMBER 8 [email protected] Gold Place Network holds networking Center for New York City Affairs at the Veronica Mullally reception. 6 p.m. to 8:30 p.m., Café New School holds forum on the city’s Metro, 14 E. 42nd St., lower level. Fee: fiscal policy after the Financial +1 212 909 0670 $20 in advance, $25 at door. Emergency Act. 8:15 a.m. to 10:30 a.m., [email protected] (212) 465-8080. Theresa Lang Community and Student NOVEMBER 7 or visit www.lovells.com Center, 55 W. 13th St., second floor. Score, New York City, holds marketing Free. (212) 229-5418 or seminar. 10 a.m. to 1 p.m., New York [email protected]. abc Public Library Science, Industry and NOVEMBER 8 Business Library, 188 Madison Ave., Business Network International, Wall New York State Notice: Attorney Advertising. lower level. Fee: $40. (212) 264-4507 or Street chapter 15, holds breakfast Lovells LLP and its affiliated businesses have offices in: [email protected]. networking reception. 7 a.m. to 8:30 Alicante Amsterdam Beijing Brussels Chicago Dubai Dusseldorf Frankfurt NOVEMBER 7 Hamburg Ho Chi Minh City Hong Kong London Madrid Milan Moscow Munich a.m., George & Sons, 89 Greenwich New York Paris Prague Rome Shanghai Singapore Tokyo Warsaw NYC Business Solutions holds seminar St., second floor. Fee: $19. Associated offices: Budapest Zagreb on building and reviving credit. 3 p.m. to (212) 661-4590 or 5 p.m., Lower Manhattan Business [email protected]. Solutions Center, 110 William St., NOVEMBER 9 fourth-floor conference room. Free. ASIS International, New York chapter, (212) 618-8817 or holds lunch program with Qubad [email protected]. Talabani on the role of the United States NOVEMBER 7 in post-Saddam Iraq. 12 p.m. to 2:30 RE Speed Network holds commercial p.m., University Club, 1 W. 54th St. real estate networking reception. 5:30 Fee: $65. (212) 729-0202. p.m. to 8 p.m., Morgan Lofts, 11 E. NOVEMBER 9 36th St., Oak Room. Fee: $50 in Center for New York City Law holds advance, $75 at door. (212) 532-8378. breakfast program with Elliot Sander on Some see a narrow ray of light. NOVEMBER 7 his vision for the Metropolitan Foundation for Accounting Education Transportation Authority. 8:15 a.m. to holds breakfast conference on the 9:30 a.m., New York Law School, 47 restaurant and hospitality industries. Worth St. Free. (212) 431-2115 or 8:30 a.m. to 12 p.m., 3 Park Ave., 19th [email protected]. floor. Fee: $100 members, $125 NOVEMBER 10 nonmembers. (800) 537-3635 or The Economist holds debates. 3 p.m. to www.nysscpa.org. 7 p.m., Gotham Hall, 1356 Broadway. NOVEMBER 7 Fee: $20 for subscribers, $30 for Citi Smith Barney holds wine and nonsubscribers. (800) 965-4827. finance pairing for women investors. 6 p.m. to 8 p.m., 1 Penn Plaza, 43rd floor. NOVEMBER 12-18 Free. Space is limited. (212) 643-5703. NOVEMBER 12 NOVEMBER 7 Merrill Lynch holds workshop on estate We see the full spectrum. Five O’Clock Club Executive Job planning and credit and asset protection Search Group holds seminar on strategies. 6:30 p.m. to 8 p.m., AJ interviewing. 6:30 p.m. to 8:30 p.m., Maxwell’s Steakhouse, 57 W. 48th St. 11 Penn Plaza, fifth floor. Fee: $50. Free. (212) 382-8436 or (914) 788-5482 or [email protected]. [email protected]. NOVEMBER 7 NOVEMBER 12 B’nai B’rith Real Estate Unit holds New York University’s Stern School of lunch on the economy and the real estate Business, CFR.org and The Economist market. 12 p.m. to 2 p.m., Cornell Club, hold forum on global issues in 6 E. 44th St., Ivy Room. Fee: $55 in Campaign 2008. 6 p.m. to 8 p.m., 40 W. advance, $65 at door. (212) 885-7239 or Fourth St., Schimmel Auditorium, [email protected]. Tisch Hall. Free. (212) 998-0670. Broad perspective. Complete solutions. NOVEMBER 7 NOVEMBER 13 At Venable, we immerse ourselves in your business so that we fully understand New York Public Library Science, Camba’s Small Business Services holds the context of your legal issues. The perspective we gain enables us to partner Industry and Business Library holds workshop on choosing a home-based more effectively with you in addressing your challenges. When you work lecture on transitioning an eBay hobby business. 10 a.m. to 4 p.m., 884 Flatbush with Venable, you get lawyers who are recognized by clients and peers as the Ave., second floor, Brooklyn. Free. Space is limited. Registration required. leading practitioners in their ﬁelds. You also get people you can count on to TO LIST YOUR EVENT deliver creative, pragmatic and integrated solutions, grounded in the reality (718) 282-2500, ext. 242. that matters most. Yours. Crain’s lists business meetings online and includes NOVEMBER 13 them in the print edition on a space-available basis. Banco Popular holds networking Events in New York City with admission fees of less reception. 6 p.m. to 8 p.m., 441 Second CALIFORNIA • MARYLAND • NEW YORK • VIRGINIA • WASHINGTON, DC than $300 are considered for the print publication. Ave. Free. (212) 679-1201 or Listings can be submitted only through the Crain’s [email protected]. NOVEMBER 13 www.Venable.com / 1.888.VENABLE Web site. To submit a calendar listing, go to www.crainsnewyork.com and click on “Events.” Women Builders Council and Bradford Sponsors have a choice of several free or paid list- Construction hold forum on the path to ing options. All business events will be posted power in New York’s building industries. online within two business days. 7:45 a.m. to 11 a.m., McGraw-Hill Crain’s can neither confirm receipt of listings nor say Building, 1221 Sixth Ave., second floor, if or when event listings will appear in the print edition. gallery and theater. Fee: $50.

36 | Crain’s New York Business | November 5, 2007 CNYB 11-05-07 A 37 11/1/2007 5:52 PM Page 1

(212) 904-2332 or www.wbcnyc.org. NOVEMBER 15 NOVEMBER 14 Manhattan Chamber of Commerce Crain’s New York Business holds lunch holds networking reception. 5:30 p.m. to program with the city’s most influential 8 p.m., Club 101, 101 Park Ave. Fee: AND LET THE women. 12 p.m. to 2 p.m., Cipriani, 110 $25 members and $35 nonmembers in E. 42nd St. Fee: $150. advance; additional $5 for all at door. (212) 210-0739 or (212) 473-7805 or www.crainsnewyork.com/events. [email protected]. NOVEMBER 14 NOVEMBER 15 Pace University’s Small Business SalemGlobal Internet Website Development Center holds workshop Marketing holds networking breakfast. on business planning. 5:30 p.m. to 7:30 8 a.m. to 10 a.m., UBS Conference p.m., 163 William St., 15th floor. Free. Center, 1285 Sixth Ave., 14th floor. Fee: (212) 618-6655 or [email protected]. $10. (646) 217-4184 or CASH NOVEMBER 14 [email protected]. Tracey Picon Communications holds NOVEMBER 15 seminar on marketing and growing your City Bar Center for Continuing Legal business. 6 p.m. to 8 p.m., Queens Education holds program on College, 65-30 Kissena Blvd., Flushing, investigative research strategies for law Queens. Fee: $55. (718) 740-8572 or professionals. 1 p.m. to 4 p.m., 42 W. [email protected]. 44th St. Fee: $175 members, $275 NOVEMBER 14 nonmembers. Citigroup Inc. and Japan Society hold (212) 382-6663. lunch program on local interaction as NOVEMBER 15 FL W the path toward global success. 12 p.m. New York Society of Security Analysts A dedicated business relationship manager from HSBC has solutions that to 2 p.m., 333 E. 47th St. Fee: $45 for holds forum on insights into activist members for lunch and lecture, $10 investing. 6 p.m. to 8:30 p.m., 1177 can help save you time and money. From competitive rates on a business lecture only; $65 for nonmembers for Sixth Ave. Fee: $75 members, $115 line of credit to credit card processing solutions, your business relationship lunch and lecture, $15 for lecture only. nonmembers. (646) 871-3405. manager can help your business thrive. HSBC knows the challenges of running (212) 715-1247 or NOVEMBER 15 [email protected]. Institute of Management Accountants, a business, and we have many ways to help you meet them. NOVEMBER 14 New York chapter, holds seminar on tax International Federation of Business and strategies. 5:30 p.m. to 8:30 p.m., Robert >Visit your local branch Professional Women of New York, Half International, 33 Whitehall St., Manhattan chapter, holds networking Fee: $40 members, $45 nonmembers, >1-866-427-2103 reception and program on the $25 students. (347) 643-6185. >us.hsbc.com/business development of women’s professional —adrianne pasquarelli potential. 5:30 p.m. to 7 p.m., Commerce Bank, 317 Madison Ave., More meetings online at second floor. Fee: free for members, $5 www.crainsnewyork.com Products in the United States offered by HSBC Bank USA, N.A. or HSBC National Bank USA. Both banks are Member FDIC. nonmembers. (212) 299-5749 or Click on “Events” ©2007 HSBC Bank USA, N.A. [email protected].

DOUBLE 16 DAILY DEPARTURES POINTS — TO — FOR A LIMITED TIME. WASHINGTON, DC* DOUBLE 9 CONVENIENCE DAILY DEPARTURES — TO — ALL THE TIME. BOSTON*

You don’t have to work hard to earn double points this fall.

Because now through December 14th, Amtrak Guest Rewards® OUR members will earn double points on all trains, all travel. Be sure to register at Amtrakguestrewards.com/91707. With CABINS double points you’re ready to make the ride twice as nice. ARE ALWAYS DEPRESSURIZED.

AMTRAK.COM

Must be an Amtrak Guest Rewards member and register for this offer at Amtrakguestrewards.com/91707 or call 1-800-307-5000 (option 2) and enter registration code 91707. Qualifying trips must be taken between 9/17/07 and 12/14/07 (excluding 11/20/07 through 11/27/07). Limit of two qualifying trips per day (one roundtrip or two one-ways). Cancelled or refunded reservations/tickets will be deemed ineligible. Members must include their membership number when making reservations. Schedules subject to change without notice. *Weekday schedule including the new service between Washington, DC and New York City with one stop in Philadelphia. Amtrak, Acela, Acela Express and Amtrak Guest Rewards are registered service marks of the National Railroad Passenger Corporation.

November 5, 2007 | Crain’s New York Business | 37 Project7 11/2/07 11:44 AM Page 1 CNYB 11-05-07 A 39 11/1/2007 9:26 PM Page 1

The contract expires on Dec. 31. Failure to reach a new agreement Union rejects building owners’offer by then could lead to a strike at properties around the city,including the World Financial Center, the creases aren’t in keeping with the market, including the 26% spike in “With the real estate industry MetLife Building and the Empire 32BJ wants wage surging real estate market. rents for Class A office space over booming, the time has come for State Building. increase to reflect Negotiations between Local the past year. building owners to provide real 32BJ and the Realty Advisory Board wage increases to the hard-working Averted action higher rents; sides on Labor Relations lasted less than Share the wealth men and women who keep their local 32bj authorized a strike dur- have until year-end 30 minutes, according to the union, but though rent increases are ex- buildings clean, safe and running ing its previous negotiations, in which had presented its proposal to pected to continue through 2011 smoothly,” Local 32BJ President March 2006, but the action was RAB on Oct 24. citywide, growth is slowing. Mike Fishman said in a statement. averted when the the union and the BY KIRA BINDRIM The board comprises commer- Manhattan rents averaged “Low-wage workers should not suf- board reached an accord a month cial building owners, managers and $62.91 a square foot in the third fer as the industry flourishes.” later. the union representing 26,000 of- cleaning contractors. The two sides quarter, up 6% from the second The buildings generate revenues Apartment building workers fice cleaners at more than 2,000 of will return to the table on Nov. 13. quarter, according to Cushman & of more than $20 billion a year, and went on strike 16 years ago, staging the commercial buildings in the city Local 32BJ is asking for wage Wakefield Inc.That compared with labor represents only 5.6% of own- a 12-day walkout. rejected a contract offer from own- raises that would parallel what it an 11% climb between the first and ers’ total costs, according to Mr. ers, saying that the offered wage in- calls a “significant upturn” in the second quarters. Fishman. COMMENTS? [email protected] Wall St. exec to reg panel

Morgan Stanley compliance chief to lead overhaul

BY KIRA BINDRIM

a former Morgan Stanley executive was named to head a state commission that Gov. Eliot Spitzer created in May to streamline New York’s financial regulations. Scott Rothstein, who most recently worked in Morgan Stanley’s legal and compliance division, was named executive director of the state Commission to Modernize the Regulation of Financial Services, where he will be charged with find- MARKET PRICE FOR ELECTRICITY ing ways to simplify procedures and ultimately attract new business. YEARS 4 different regulators new york’s structure currently en- forces rules through four agencies: the departments of Insurance, Banking and State,and the attorney general’s office. The system contributes to a regulatory maze. Numerous reports, including one issued by Mayor Michael Bloomberg and Sen. Charles Schumer earlier this year, say that the current setup is allowing London and other major centers to threaten New York’s position as the world’s financial capital. Nobody knows what energy prices will do. But your business, large or small, can take firm control of your energy costs with a “Financial services are central to the state’s economy,and New York’s Constellation NewEnergy long-term purchasing plan. This kind of innovative thinking is working for two thirds of the Fortune 100. regulatory structure must be modernized to retain its leadership role See how it can work for you. Visit newenergy.com/control or call 1-877-CNE-8100. in a global economy,”said Insurance Superintendent Eric Dinallo,chairman of the commission. Morgan Stanley adviser at morgan stanley, Mr. Roth- stein led a legal advisory coverage group for the firm’s global wealth management division. Before that, he served as deputy general counsel of American Skandia, an insurance and annuity company that was acquired by Prudential Financial.

COMMENTS? [email protected]

November 5, 2007 | Crain’s New York Business | 39 nb45p38_39cls.qxp 11/1/07 4:10 PM Page 40

BUSINESS MANAGEMENT INVESTMENT OPPORTUNITY Business Management Services $300k Raise PUBLIC & LEGAL NOTICES for major motion picture. A-list talent Cash Management Services ● Bill Payment with name distributor. $300K initial Notice of Formation of EIC HOSPITALITY Notice of Formation of Axelrod Energy Notice of Qualification of HFS REALTY NEW Tax & Financial Services ● Financing Assistance investment with $25k units available. CONCEPTS LLC. Arts. of Org. filed with Secy. Projects, LLC, Art. of Org. filed Sec'y of State YORK 6, LLC. Authority filed with Secy. of (212) 631-9500 ● www.mayercpa.com Commercial & private investors/ of State of N.Y. (SSNY) on 9/17/07. Office (SSNY) 6/22/07. Office location: NY County. State of N.Y. (SSNY) on 9/21/07. Office fundraisers welcome. Credited location: NY County. SSNY designated as SSNY designated as agent of LLC upon whom location: NY County. LLC formed in Delaware investors only. agent of LLC upon whom process against it process against it may be served. SSNY shall (DE) on 9/12/07. SSNY designated as agent Cash Management & CFO Services Call Liza @ 917-509-6181 may be served. SSNY shall mail process to: mail copy of process to c/o Lawrence Axelrod, of LLC upon whom process against it may be 145 E. 84th St., #2C, NY, NY 10028. Purpose: 214 West 96th St., NY, NY 10025. Purpose: served. SSNY shall mail process to: c/o CT BUSINESS SERVICES any lawful activity. any lawful activities. Corporation System, 111 8th Ave., NY, NY Advertise on 10011, registered agent upon whom process Notice of Qualification of Betsey Johnson Notice of Qualification of PowerQX LLC. may be served. DE address of LLC: 1209 LLC. Authority filed with Secy. of State of Authority filed with NY Dept. of State on Orange St., Wilmington, DE 19801. Arts. of www.crainsnewyork.com NY (SSNY) on 8/1/07. Office location: NY 11/8/06. Office location: NY County. Principal Org. filed with DE Secy. of State, 401 Federal business address: 375 Park Ave., NY, NY County. LLC formed in Delaware (DE) on St., Ste. 4, Dover, DE 19901. Purpose: all 10152. LLC formed in Delaware (DE) on lawful purposes. Call John Gallagher 6/29/07. SSNY designated as agent of LLC 10/26/04. NY Secy. of State designated as upon whom process against it may be agent of LLC upon whom process against it Notice of Qualification of JWS Partners I, served. SSNY shall mail process to: c/o may be served and shall mail process to: c/o @ 212-210-0189 L.P. Authority filed with Secy. of State of NY CT Corporation System, 111 8th Ave., NY, NY National Registered Agents, Inc., 875 Ave (SSNY) on 09/11/07. Office location: New 10011, registered agent upon whom process of the Americas, Ste 501, NY, NY 10001. York County. LP formed in Delaware (DE) may be served. DE address of LLC: c/o The RELOCATION SERVICES Address to be maintained in DE: 2711 on 09/07/07. SSNY designated as agent of Corporation Trust Co., 1209 Orange St., Centerville Rd., Ste 400, Wilmington, DE LP upon whom process against it may be Wilmington, DE 19801. Cert. of Form. filed served. SSNY shall mail process to: c/o 19808. Arts. of Org. filed with DE Secy. Of with DE Secy. of State, Townsend Bldg., Northeast Securities, 100 Wall St., NY, NY State, 401 Federal St., Ste 4., Dover, DE Dover, DE 19901. Purpose: any lawful activity. 19901 Purpose: any lawful activities. 10005, Attn: Jon W. Salmanson. Address Notice of Formation of 135 LLC. Arts. of Org. required to be maintained in home jurisdiction: Notice of Qualification of BRS Coinvestor filed with Secy. of State of N.Y. (SSNY) on 160 Greentree Dr., Ste., 101, Dover, DE 10/20/06. Office location: NY County. SSNY 19904. Name/address of genl. ptr. available GP III, L.L.C. Authority filed with Secy. of from SSNY. Cert. of LP filed with DE Secy. State of NY (SSNY) on 9/6/07. Office loca- designated as agent of LLC upon whom process against it may be served. SSNY shall of State, John G. Townsend Bldg., 401 Federal tion: NY County. LLC formed in Delaware mail process to principal business location: St., Ste. 4, Dover, DE 19901. Purpose: any (DE) on 8/29/07. SSNY designated as c/o Kramer Levin Naftalis & Frankel LLP, 1177 lawful activities. agent of LLC upon whom process against Avenue of the Americas, NY, NY 10036, Attn: Jay A. Neveloff. Purpose: any lawful activity. Name of LLC: Bismarck Furnishings & it may be served. SSNY shall mail process Decorative Objects, LLC. Arts. of Org. filed to: The LLC, 126 East 56th St., NY, NY Notice of Conversion of 148 West 10th Street NY Dept. of State 9/27/07. County off. loc.: TECHNOLOGY SERVICES 10022. Address to be maintained in DE: Company, a partnership, to 148 West 10th New York Cty. Principal bus. loc.: 270 2711 Centerville Rd., Ste 400, Wilmington, Street Associates, LLC. Certificate filed with Lafayette Street, NY, NY 10012. Sec. of State DE 19808. Arts. of Org. filed with DE Secy. Secy. of State of NY (SSNY) on 9/13/07. designated as agent of LLC upon whom process against it may be served. Sec. of Of State, 401 Federal St., Ste 4., Dover, DE Office location: NY County. SSNY designated TECHNICAL OPERATIONS, INC. as agent of LLC upon whom process against State shall mail a copy of process to 270 19901 . Purpose: any lawful activities. it may be served. SSNY shall mail process to Lafayette Street, Ste. 1302, NY, NY 10012. principal business location: c/o The Brodsky Purpose: any lawful activity. NOTICE OF FORMATION OF LIMITED LIABILITY • Maintenance Services for • Multimedia Services/ Organization, LLC, 400 W. 59th St., NY, NY COMPANY. NAME: 203 E. 45th MANAGEMENT 10019. Purpose: any lawful activity. Notice of Formation of BNS Varick St. LLC. Broadcast and Industrial Manpower LLC. Articles of Organization were filed with A/V Equipment Arts. of Org. filed with Secy. of State of NY the Secretary of State of New York (SSNY) on Notice of Conversion of 231-235 West 13th (SSNY) on 9/27/07. Office location: NY Co. • Audio/Video Rentals 08/31/07. The latest date of dissolution is • Free Pickup & Delivery, Street Associates, a partnership, to 231-235 SSNY designated as agent of LLC upon whom 12/31/2099. Office location: New York County. West 13th Street Associates, LLC. Certificate process against it may be served. SSNY shall Loaners Available • System Integration SSNY has been designated as agent of the filed with Secy. of State of NY (SSNY) on mail process to: c/o Paracorp Inc., 2804 LLC upon whom process against it may be 9/25/07. Office location: NY County. SSNY Gateway Oaks Dr., Ste #200, Sacramento, CA served. SSNY shall mail a copy of process to designated as agent of LLC upon whom 95833-3509. Purpose: any lawful activities. TECHNICAL OPERATIONS, INC. • 454 West 41st Street • New York, NY 10036 the LLC, 121 West 45th Street, New York, New Phone (212) 465-1318 • Fax (212) 465-2318 • Email: [email protected] process against it may be served. SSNY York 10036. Purpose: For any lawful purpose. shall mail process to principal business NOTICE OF FORMATION OF LIMITED LIABILITY visit us at: www.tech-ops.com location: c/o The Brodsky Organization, LLC, COMPANY. NAME: 26 EAST SECOND STREET, Notice of Formation of ALBERT 2 LLC. Arts. 400 W. 59th St., NY, NY 10019. Purpose: LLC. Articles of Organization were filed with of Org. filed with NY Dept. of State on 9/5/07. any lawful activity. the Secretary of State of New York (SSNY) Office location: NY County. Secy. of State on 09/21/07. Office location: New York County. REAL ESTATE designated as agent of LLC upon whom Notice of Qualification of GS Capital SSNY has been designated as agent of the process against it may be served and shall LLC upon whom process against it may be mail process to the principal business Partners 2000 Employee Fund, L.P. Authority filed with Secy. of State of N.Y. served. SSNY shall mail a copy of process INVESTMENT OPPORTUNITY OFFICE SPACE address of the LLC: c/o United American to the LLC, c/o Nancy Chan, 252 Front Street, Land, LLC, 430 W. Broadway, 3rd Fl., NY, NY (SSNY) on 7/27/07. Office location: NY New York, New York 10038. Purpose: For Own Championship Golf Course in the Sun 10012. Purpose: any lawful activity. County. LP formed in Delaware (DE) on any lawful purpose. 4-Star Highly Profitable Course in Central FL 212-947-5500 4/5/00. SSNY designated as agent of LP Notice of Formation of JASON 2 LLC. Arts. of upon whom process against it may be NOTICE OF FORMATION of Petrie Point • 11% Cap Rate w 50K Rounds/yr every yr FOR ALL OFFICE, RETAIL & LOFT SPACES Org. filed with NY Dept. of State on 9/6/07. served. SSNY shall mail process to: 85 Designs LLC. Arts. of Org. filed with Secy. • Good 1031 replacement property New York City, Brooklyn, Queens Office location: NY County. Secy. of State of State of NY (SSNY) on 9/28/07. Office • Convenient Location on I-95 Close to Orlando 500–50,000 SF designated as agent of LLC upon whom Broad St., NY, NY 10004. DE address of location: New York County. SSNY designated UNDER MARKET SUBLETS – NO FEE! • Gary Player design with full Golf Academy process against it may be served and shall LP: Corporation Trust Center, 1209 Orange as agent of LLC upon whom process against Search our listings @ www.midcomre.com mail process to the principal business address $6,950,000; Call Bill Sawyer 203-625-0900 Call Paul 212 947-5500 x 100 St., Wilmington, DE 19801. Name/address it may be served. SSNY shall mail process of the LLC: c/o United American Land, LLC, of each genl. ptr. available from SSNY. to: 140 Sullivan Street, #6, NY, NY 10012. 430 W. Broadway, 3rd Fl., NY, NY 10012. OFFICE SPACE OFFICE SPACE Cert. of LP filed with DE Sec. of State, P.O. Principal business location: 140 Sullivan Purpose: any lawful activity. Street, #6, NY, NY 10012. Purpose: Any Box 898, Dover, DE 19903. Purpose: any Professional Office Space ◆ ◆ ◆ ◆ ◆ ◆ lawful act. Prime Murray Hill Notice of Qualification of Blackstone TT Fund lawful activity. NO FEE • AVAILABLE 11/01/07 (Grand Central Area) L.P., App. for Auth. filed Sec'y of State (SSNY) Notice of Conversion of Rainier Northwest Ideal for a start-up or small business 39th & Park Elevator Professional 5/24/07. Office location: NY County. LP org. in Notice of Qualification of HY 707 LLC. JFK Associates, a partnership, to Rainier quiet, boutique bldg on 41st between Townhouse Ground Floor & DE 5/21/07. SSNY designated as agent of LP Authority filed with Secy. of State of N.Y. Northwest – JFK L.L.C. Certificate filed with 5th & Madison. Beautiful ground floor upon whom process against it may be served. (SSNY) on 9/11/07. Office location: NY Secy. of State of NY (SSNY) on 9/21/07. Garden 1600 sf SSNY shall mail copy of process to Attn: J. Office location: NY County. SSNY designated lobby with security and 24 / 7 access. 4th floor also available County. LLC formed in Delaware (DE) on Newly renovated floor & office, brand Tomilson Hill, 345 Park Ave., NY, NY 10154. as agent of LLC upon whom process against Owner 516-569-6700 DE office addr.: c/o CSC, 2711 Centerville Rd., 6/20/07. SSNY designated as agent of it may be served. SSNY shall mail process to: new furniture Clean, open floor plan (no Wilmington, DE 19808. Cert. of LP on file: LLC upon whom process against it may The LLC, c/o Rainier Northwest Development columns) Externally facing with large SSDE, Townsend Bldg., Dover, DE 19901. be served. SSNY shall mail process to: Corporation,1411 Fourth Ave., Ste. 901, Seattle, windows, Central A/C, tenant-controlled. www.crainsnewyork.com Name/addr. of each gen. ptr. avail. at SSNY. c/o KMM Telecommunications, 9 Law WA 98101. Purpose: any lawful activities. Call Cristin at 212 679 2509 Purpose: any lawful activities. Drive, Ste. 13, Fairfield, NJ 07004. DE address of LLC: Trolley Square, Ste. 20C, Notice of Formation of Trident Communications Notice of Formation of 180 BROADWAY LLC. Arts. of Org. filed with Secy. State of NY Wilmington, DE 19806. Arts. of Org. filed LLC. Arts. of Org. filed with Secy. of State of (SSNY) on 8/22/07. Office location: New York EXECUTIVE RECRUITER with DE Secy. of State, 401 Federal St., N.Y. (SSNY) on 6/15/07. Office location: NY County. SSNY designated as agent of LLC Ste. 4, Dover, DE 19901. Purpose: own & County. SSNY designated as agent of LLC upon whom process against it may be POSITION AVAILABLE POSITION AVAILABLE develop real property. served. SSNY shall mail process to: Trident upon whom process against it may be Communications LLC, 20 West 22 St., 12th OFFICE ASSISTANT served. SSNY shall mail process to: c/o Notice of Qualification of GAIA USA, LLC. Floor, NY, NY 10010. Purpose: Any Lawful Market Research Analyst for Eastern Property Associates, LLC, 194 W. Authority filed with Secy. of State of N.Y. act. 905020 w.o. Manhattan-based real estate firm. P/T position at midtown real estate firm. Perform clerical, reception and 10th St., L-1, NY, NY 10014, Attn: Joseph (SSNY) on 9/27/07. Office location: NY Analyze trends, comparable sales administration duties. Computer, financial Edery. Purpose: any lawful activity. County. LLC formed in New Jersey (NJ) on 44 WALKER LLC, a domestic Limited Liability & appraisals. Research potential & legal background preferred. 5/31/07. SSNY designated as agent of LLC Company (LLC) filed with the Sec of State of buyers/owners. Manage database. Salary negotiable. Notice of Formation of Paramount Fee Mezz, upon whom process against it may be served. NY (SSNY) on 8/17/07. NY Office location: F/T, M-F, BA in bus. admin/finance, Contact Mr. Cohen (954) 659-2011 or LLC, Art. of Org. filed Sec'y of State (SSNY) SSNY shall mail process to the principal office NEW YORK County. SSNY is designated as RE license plus 2 years exp req'd. [email protected] 8/21/07. Office location: NY County. SSNY address/principal business location of LLC: agent upon whom process against the LLC Fax resume to: designated as agent of LLC upon whom Mr. Martin Manuel, 400 Madison Ave., NY, NY may be served. SSNY shall mail a copy of process against it may be served. SSNY shall 10017, registered agent upon whom process any process against the LLC served upon Realty Marketing Associates, Ltd To place your classified mail copy of process to Nat. Reg. Agents, 875 may be served. Cert. of Form. filed with NJ him/her to THE LLC, ATTN: MICHAEL MARVISI, (646) 478-9640 ad call John Gallagher Ave of the Americas, Ste. 501, NY, NY 10001. Dept. of Revenue, 225 West State Street, 332 CANAL ST., 2ND FLR., NY, NY 10013. Attention Shimon Shkury @ 212-210-0189 Purpose: any lawful activities. Trenton, NJ 08625. Purpose: any lawful activity. General purposes.

40 | Crain’s New York Business | November 5, 2007 Crain's Classified is not responsible for corruptCrain's files Classified submitted is by not client responsible or ads run for undercorrupt the files wrong submitted subheading. by client or ads run under the wrong subheading. nb45p40_41cls.qxp 11/1/07 4:24 PM Page 41

PUBLIC & LEGAL NOTICES

Notice of Formation Vvensta LLC art. of org. Notice of Formation of Limited Liability Notice of Qualification of Simon, Kucher & Notice of Qualification of WMT Investors LLC. Notice of Formation of HUSA Go Grid Holding, filed Secy. of State NY (SSNY) 6/14/07. Off. Company (LLC) GENERAL SOURCE Partners Strategy & Marketing Consultants, Authority filed with Secy. of State of N.Y. LLC. Arts. of Org. filed with NY Dept. of State loc. in NY Co. SSNY designated as agent of NETWORKS, LLC. Articles of Organization LLC. Authority filed with Secy. of State of (SSNY) on 9/21/07. Office location: NY on 10/3/07. Office location: NY County. Secy. LLC upon whom process may be served. County. LLC formed in Delaware (DE) on of State designated as agent of LLC upon N.Y. (SSNY) on 10/5/2007. Office location: SSNY shall mail copy of process to: Hang filed with the Secretary of State of New 9/12/07. SSNY designated as agent of LLC whom process against it may be served and Guo, 51-29 72 St, Woodside, NY 11377. York (SSNY) on 08/31/2007. N.Y. Office NY County. LLC formed in Massachusetts upon whom process against it may be served. shall mail process to the principal business Purpose: Any lawful purpose. location: New York County. SSNY has (MA) on 5/22/1996. SSNY designated as SSNY shall mail process to principal business address of the LLC: c/o Gotham Organization, Crain's Classified is not responsible for corruptbeen files designated submitted as an byagent client upon or whom ads run underagent of the LLC wrong upon whom subheading. process against location: One Penn Plaza, Ste. 2805, NY, NY Inc., 1010 Ave. of the Americas, 4th Fl., NY, Notice of Qualification of Hawkes AP, LLC. process against it may be served. SSNY it may be served. SSNY shall mail process 10119. DE address of LLC: 2711 Centerville NY 10018, Attn: David Pickett. Purpose: any Authority filed with NY Dept. of State on shall mail a copy of any process to: C/O to: c/o Corporation Service Company, 80 Road, Ste. 400, Wilmington, DE 19808. lawful activity. 10/9/07. Office location: NY County. LLC GENERAL SOURCE NETWORKS, LLC State St., Albany, NY 12207. MA Arts. of Org. filed with DE Secy. of State, formed in California (CA) on 9/12/01. NY P.O. Box 898, Dover, DE 19903. Purpose: 331 W. 70TH ST. #1, New York, NY, address/principal business location of LLC: Notice of Formation of Trummer Bar Holdings Secy. of State designated as agent of LLC any lawful activity. LLC. Arts. Of Org. filed with Sec’y. of State One Canal Park, Cambridge, MA 02141. upon whom process against it may be served 10023. Purpose of LLC: TO ENGAGE IN of NY (SSNY) on 10/16/07. Office location: Arts. of Org. filed with MA Secy. of State, and shall mail process to: 11726 San Vicente E-BUSINESS ACTIVITIES. NOTICE OF FORMATION of WS Tour LLC, a New York Country. SSNY designated as agent Blvd., Ste. 300, Los Angeles, CA 90049, Attn: One Ashburton Place, 17th Fl., Boston, MA domestic Limited Liability Company. Arts. of of LLC upon whom process against it may Llewellyn Werner. CA and principal business 02108. Purpose: strategy and marketing NOTICE OF FORMATION of Pinnacle 75 Org. filed with the SSNY on 07/10/07. Office be served. SSNY shall mail process to c/o address: 11150 Santa Monica Blvd., Ste. 400, consulting. Trummer Bar Holdings LLC, 172 Delancey Realty LLC. Articles of Organization filed location: New York County. SSNY designated Crain'sLos Classified Angeles, CA is90025, not Attn:Marcresponsible S. Primiani. for corrupt files submitted by client or ads run under the wrong subheading. as agent upon whom process against the LLC Street, #5D, NY, NY 10002. Princ. Bus. loc: with Secy. of State of NY (SSNY) on Arts. of Org. filed with CA Secy. of State, 1500 Notice of Qualification of 100 W 92 Holdings, may be served. SSNY shall mail process to: 172 Delancey Street, #5D, NY, NY 10002. 11th St., Sacramento, CA 95814. Purpose: 9/24/07. Office location: New York County. LLC. Authority filed with Secy. of State of N.Y. Corporation Service Company, 80 State Street, Purpose: Any lawful act. Crain's Classified is not responsible forany corrupt lawful activity. files submitted by client or adsSSNY run designated under theas agent wrong of subheading.LLC upon (SSNY) on 10/15/07. Office location: NY County. Albany, NY 12207. Principal business location: whom process against it may be served. LLC formed in Delaware (DE) on 3/14/07. 260 W. 44th Street, #501, NY, NY 10036. Notice of Formation of a Limited Liability Notice of Formation of Stelle By Gilber SSNY shall mail process to: 386 Park SSNY designated as agent of LLC upon whom Purpose: loan to touring theatrical production. Partnership known as Brosius Trask LLP; Gilmore, LLC. Arts. of Org. filed with Secy. Avenue South, Suite 1914, NY, NY 10016. process against it may be served. SSNY shall Articles of Incorporation filed with the of State of NY (SSNY) on 9/11/07. Office Principal business location: 386 Park mail process to principal business location: Notice of Qualification of GII Fund L.P., App. Secretary of State of New York on 6/13/07; location: NY Co. SSNY designated as agent Office location: New York County; SSNY has Avenue South, Suite 1914, NY, NY 10016. c/o Claremont Parking LLC, 70 E. 55th St., 7th for Auth. filed Sec'y of State (SSNY) 6/13/07. of LLC upon whom process against it may Fl., NY, NY 10022. DE address of LLC: 2711 Office location: NY County. LP org. in DE been designated as agent of the LLP upon be served. SSNY shall mail process to: The Purpose: Any lawful act. Centerville Road, Ste. 400, Wilmington, DE 6/11/07. SSNY designated as agent of LP whom process against it may be served. LLC, 307 West 38th St., Ste 804, Ny, NY 19808. Arts. of Org. filed with DE Secy. of upon whom process against it may be served. SSNY shall may a copy of process to Brosius 10018. Purpose: any lawful activities. Notice of Formation of PC Newco LLC. State, 401 Federal St., Ste. 4, Dover, DE 19901. SSNY shall mail copy of process to Attn: J. Trask LLP, 420 Lexington Avenue, Suite 2800, New York 11021-2808; Purpose: Law Firm. Arts. of Org. filed with Secy. of State of N.Y. Purpose: any lawful activity. Tomilson Hill, 345 Park Ave., NY, NY 10154. Notice of Formation of Datafloat, LLC, Art. of DE office addr.: c/o CSC, 2711 Centerville Rd., (SSNY) on 3/9/05. Office location: NY Org. filed Sec'y of State (SSNY) 9/17/04. Notice of Qualification of Blue Source, LLC. Wilmington, DE 19808. Cert. of LP on file: Office location: NY County. SSNY designated County. SSNY designated as agent of LLC Authority filed with NY Dept. of State on SSDE, Townsend Bldg., Dover, DE 19901. Crain'sas Classifiedagent of LLC uponis not whom responsible process against for corruptupon files whom submitted process against by client it may or beads run10/15/07. under the Office wrong location: subheading. NY County. LLC Name/addr. of each gen. ptr. avail. at SSNY. Coming Up it may be served. SSNY shall mail copy of served. SSNY shall mail process to principal formed in Utah (UT) on 5/7/01. NY Secy. of Purpose: any lawful activities. Crain's Classified is not responsibleprocess for corrupt to Ben Clarke, files 26 submitted Broadway, Ste. by 745, client orbusiness ads run location: under 405 the Lexington wrong Ave., subheading. NY, State designated as agent of LLC upon whom on the Calendar NY, NY 10006, the Reg. Agt. upon whom proc. NY 10174. Purpose: any lawful activity. process against it may be served and shall Notice of Qualification of Richland Towers may be served. Purpose: any lawful activities. mail process to: c/o CT Corporation System, NYC Distributed, LLC. Authority filed with 111 8th Ave., NY, NY 10011, registered agent NY Dept. of State on 10/2/07. Office location: BOARDWALK VENTURE CAPITAL, LLC, a Name of LLC: LG & COMPANY INDEED, upon whom process may be served. UT and LLC. Articles. of Org. filed NY Dept. of State NY County. Principal business address: 400 domestic Limited Liability Company (LLC) principal business address: 3165 E. Millrock N. Ashley Dr., Ste. 3010, Tampa, FL 33602. November 12th filed with the Sec of State of NY (SSNY) of NY on 9/21/07. Office location in NY: Dr., Ste. 340, Holladay, UT 84121. Arts. of LLC formed in Delaware (DE) on 3/10/05. on 8/28/07 NY Office location: NEW YORK New York County. Sec. of State designated Org. filed with UT Secy. of State, 160 E. 300 NY Secy. of State designated as agent of County. SSNY is designated as agent Guide to Growing a as agent of LLC upon whom process South, Salt Lake City, UT 84111. Purpose: LLC upon whom process against it may be upon whom process against the LLC may any lawful activity. be served. SSNY shall mail a copy of any against it may be served. Sec. of State shall served and shall mail process to: CorpDirect Business mail a copy of process to c/o Justis Agents, Inc. (CDAI), 225 W. 34th St., Ste. process against the LLC served upon Name of LLC: BOLOGNA68 LLC. Articles of him/her to THE LLC, 350 WEST 38TH ST., 910, NY, NY 10122. DE address of LLC: Properties, 18 E. 12th St., Ste. 1C, NY, NY Org. filed NY Dept. of State 7/12/07. Office 6TH FLR., NY, NY 10018. General 10003. Purpose: any lawful activity. CDAI, 615 S. DuPont Hwy., Dover, DE 19901. purpose. location in NY: New York County. Secy. of Arts. of Org. filed with DE Secy. of State, State of NY (SSNY) designated as agent of 401 Federal St., Ste. 4, Dover, DE 19901. November 19th Notice of Qualification of Traxis LLC upon whom process against it may be Purpose: any lawful activity. Crain's Classified is not responsible forNotice corrupt of Qualification files submitted of 30-49 byCrescent client or adsManagement run under Holdings the wrong LP. Authority subheading. filed served. SSNY shall mail a copy of process Technology Investor, LLC. Authority filed with NY Dept. with Secy. of State of N.Y. (SSNY) on to c/o Bologna68 LLC, 154 Attorney Street, 212 EAST 85TH STREET, LLC. Articles of Org. Suite 201, New York, NY 10002. Purpose: of State on 10/11/07. Office location: NY 10/10/07. Office location: NY County. filed NY Sec. of State (SSNY) 09/21/07. Office any lawful activity. Crain'sCounty. Classified LLC formed is notin Delaware responsible (DE) on for corruptPrincipal files business submitted location: by client600 Fifth or ads run under the wrong subheading. in New York Co. SSNY desig. agent of LLC 8/3/07. NY Secy. of State designated as Ave., 20th Fl., NY, NY 10020. LP formed in upon whom process may be served. SSNY November 26th agent of LLC upon whom process against Notice of Qualification of MidOcean III Private shall mail copy of process to JAS Management Delaware (DE) on 8/28/07. SSNY desig- Investors, LLC. Authority filed with Secy. of it may be served and shall mail process to: Co., Inc., 216 E. 85th St., Ste. 1A, NY, NY Privately Owned nated as agent of LP upon whom process State of N.Y. (SSNY) on 10/15/07. Office 10028. Purpose: Any lawful purpose. The Dermot Company, Inc., 320 W. 57th against it may be served. SSNY shall mail location: NY County. LLC formed in Delaware Companies St., 5th Fl., NY, NY 10019, principal process to: c/o Corporation Service (DE) on 9/26/07. SSNY designated as agent Notice of Formation of Bridge Revitalization, business address of the LLC. DE address Company (CSC), 80 State St., Albany, NY of LLC upon whom process against it may be L.P. Cert. filed with NY Dept. of State on of LLC: c/o National Corporate Research, served. SSNY shall mail process to: c/o 9/25/2007. Office location: NY County. Secy. 12207, registered agent upon whom Corporation Service Company (CSC), 80 Crain's Classified is not responsible for corruptLtd., 615files S. submitted DuPont Hwy., by clientDover, orDE ads runprocess under may the be wrongserved. DEsubheading. address of LP: of State designated as agent of LP upon State St., Albany, NY 12207. DE address of whom process against it may be served and December 3rd 19901. Arts. of Org. filed with DE Secy. of CSC, 2711 Centerville Road, Wilmington, LLC: c/o CSC, 2711 Centerville Road, Ste. shall mail process to the principal business State, 401 Federal St., Ste. 4, Dover, DE DE 19808. Name/address of each genl. 400, Wilmington, DE 19808. Arts. of Org. Real Estate 19901. Purpose: any lawful activity. address of the LP: 248 W. 108th St., NY, NY ptr. available from SSNY. Cert. of LP filed filed with DE Secy. of State, Townsend Bldg., 10025, Attn: Bridge 202 Revitalization, Inc., with DE Secy. of State, Townsend Bldg., Dover, DE 19901. Purpose: any lawful activity. registered agent upon whom process may be Notice of Qualification of Gemini 305 West Dover, DE 19901. Purpose: any lawful served. Name/address of genl. ptr. available Notice of Qualification of 15 Cliff L.L.C. 39th Street 12, LLC. Authority filed with activity. from Secy. of State. Term: until 12/31/2058. December 10th Secy. of State of NY (SSNY) on 9/25/07. Application for Authority filed with Secy. Purpose: any lawful activity. of State of N.Y. (SSNY) on 4/30/02. Office Office location: NY County. LLC formed in Small Business Notice of formation of limited liability company location: NY County. Principal business location: Notice of Qualification of Dyn Marine Services Delaware (DE) on 9/20/07. SSNY (LLC). Name: IPNY ARCHITECTURAL 290 Park Avenue South, 14th Fl., NY, NY designated as agent of LLC upon whom of Virginia LLC. Authority filed with NY Dept. SALES, LLC Articles of Organization filed with 10010. LLC formed in Delaware (DE) on of State on 10/10/07. Office location: NY process against it may be served. SSNY the Department of State of New York on 4/29/02. SSNY designated as agent of LLC County. LLC formed in Virginia (VA) on shall mail process to: c/o Corporation upon whom process against it may be served. 2/8/05. NY Secy. of State designated as agent December 17th September 28, 2007. Office location: New SSNY shall mail process to: 290 Park Avenue Service Company, 80 State St., Albany, NY York County. The principal business location of LLC upon whom process against it may be 12207-2543, also registered agent. South, NY, NY 10010, Attn: General Counsel. served and shall mail process to: c/o CT Corporate Philanthropy is 110 W. End Ave., Ste. 21G, New York, NY DE address of LLC: c/o CSC, 2711 Centerville Address to be maintained in DE: 2711 Corporation System, 111 8th Ave., NY, NY 10023. The Secretary of State of New York Road, Ste. 400, Wilmington, DE 19808. 10011, registered agent upon whom process Centerville Rd., Ste 400, Wilmington, DE (SSNY) is designated as agent of LLC upon Certificate of Formation filed with DE Secy. of 19808. Arts. of Org. filed with DE Secy. Of may be served. VA and principal business whom process against it may be served. State, Loockerman & Federal St., Dover, DE address: 3190 Fairview Park Dr., Ste. 700, State, 401 Federal St., Ste 4., Dover, DE SSNY shall mail copy of process to Paul L. 19901. Purpose: any lawful activity. Falls Church, VA 22042. Arts. of Org. filed December 24th 19901 . Purpose: any lawful activities. with VA Secy. of the Commonwealth, 1300 Shapiro, Esq., 39 Hudson St., Hackensack, NJ Notice of Formation of The 157 East 72nd E. Main St., Richmond, VA 23218. Purpose: Business News 07601. Management of the limited liability Street L.L.C. Arts. of Org. filed with NY any lawful activity. Notice of Qualification of Goldman Sachs company shall be by one or more mambers. Dept. of State on 9/20/07. Office location: Private Equity Partners 2004 Employee Purpose: To engage in any lawful act or activity. NY County. Secy. of State designated as Fund, L.P. Authority filed with Secy. of State agent of LLC upon whom process against it Notice of Qualification of Urban Retail Properties of N.Y. (SSNY) on 7/13/07. Office location: may be served and shall mail process to: 201 Co., LLC. Authority filed with NY Dept. of December 31st Notice of Formation of Integrated Technology State on 10/15/07. Office location: NY County. NY County. LP formed in Delaware (DE) on E. 79th St., Apt. 20E, NY, NY 10075, principal Systems NYC LLC. Authority filed with New Principal business address: 900 N. Michigan Book of Lists 10/13/04. SSNY designated as agent of LP York Dept. of State 1/10/06. Office location: business address of the LLC. Purpose: any lawful activity. Ave., Chicago, IL 60611. LLC formed in upon whom process against it may be New York County. LLC formed in Delaware Delaware (DE) on 8/29/07. NY Secy. of State served. SSNY shall mail process to: 85 (DE) on 12/21/05. Sec. of State designated Notice of Formation of Triad Boys II, LLC. Arts. designated as agent of LLC upon whom Broad St., NY, NY 10004. DE address of LP: as agent of LLC upon whom process against of Org. filed with Secy. of State of N.Y. (SSNY) process against it may be served and shall 2711 Centerville Road, Ste. 400, it may be served. Sec. of State shall mail on 9/17/07. Office location: NY County. SSNY mail process to: c/o CT Corporation System, To place your classified Wilmington, DE 19808. Name/address of process to: 509 Madison Ave. Suite 1200, NY, designated as agent of LLC upon whom 111 8th Ave., NY, NY 10011, registered agent NY 10022. DE address of LLC: 3500 South upon whom process may be served. DE each genl. ptr. available from SSNY. Cert. of process against it may be served. SSNY shall ad call John Gallagher DuPont Highway, Dover, DE 19901. Cert. of mail process to principal business location: address of LLC: 1209 Orange St., Wilmington, LP filed with DE Secy. of State, P.O. Box Formation filed with DE Sec. of State, P.O. c/o United American Land, LLC, 430 West DE 19801. Arts. of Org. filed with DE Secy. of @ 212-210-0189 898, Dover, DE 19903. Purpose: any lawful Box 898, Dover, DE 19903. Purpose: Any Broadway, NY, NY 10012. Purpose: any State, 401 Federal St., Dover, DE 19901. activity. lawful activity. lawful activity. Purpose: any lawful activity.

November 5, 2007 | Crain’s New York Business | 41 Project8 11/2/07 12:08 PM Page 1 CNYB 11-05-07 A 43 11/1/2007 9:20 PM Page 1

BUSINESS TABLE TALK New steakhouse features a marbling twist PAGE 4 buck ennis

GOTHAM GIGS Wine time LISA CARLEY, 37, knows her grapes. For the past year and a TheThe dadpreneurial dadpreneurial urge urge half, she has worked with public relations firm Stay-at-home fathers run kid-related businesses CRT/Tanaka as a brand Stay-at-home fathers run kid-related businesses ambassador for the wines of the Rioja region of Spain. WELL-VERSED In 2004, Ms. Carley received her sommelier certification and later enrolled in the two-year diploma program at the Wine & Spirit Education Trust for the equi- valent of a master’s degree.“It’s an incredibly rigorous program,” Ms. Carley says.“You have to know botany, herbol- ogy, chemistry and physics.” WINE FOR THOUGHT Ms. Carley promotes Rioja wines through seminars and events and focuses on the under-35 market. “I want to demystify wine,” she says. “I want people to realize that wine doesn’t have to be scary or compli- cated.” She markets bottles ranging from $7 to $300 from 90 Spanish importers. ALL THINGS WINE The gig comes with a fair amount of travel. Ms. Carley spends her time in transit reading up. She says, “I eat and drink for a living, and that just isn’t bad.” —adrianne pasquarelli EXPERT OPINIONS HOW CAN I WRITE A SCREENPLAY? first,educate yourself. People watch movies and CHRISTOPHER CHESLEIGH, think, “Hey, I can write one.” shown with his daughter, Kaitlyn, recently opened the But you need to read books Young Chefs Academy, a and take cooking school for children. classes if

you’re just buck ennis beginning. Also, don’t BY MIRIAM KREININ SOUCCAR try to write BIG CHANGES for movie trends, like n an average day, Jordan Kerner rouses his 7- and 9-year-old boys G 52% of Generation Xers (ages slasher from bed, makes them breakfast and puts them on the bus. After 23-37) place a higher priority on films, that school, he shuttles them around to extracurricular activities and fields family than work, versus 41% of boomers (ages 38-57). are popular now—by the time homework questions. you finish, that trend will be Norman Scherer makes four trips to Brooklyn from the Lower East G Working fathers’ time caring long gone. Don’t worry too for children during the week has much about a hot idea that will Side every day to escort his kids to and from school. While they are increased to 2.7 hours from 1.8 sell; it’s far better to write a gone and his wife works as a lawyer for Scholastic, he does the cooking hours over the past 10 years. really good screenplay.What’s and errands. G 30% of mothers say their going to get you in the door is Christopher Chesleigh takes his 4-year-old daughter to school husbands spend as much time your talent. with the kids as they do, versus —alex steele every morning, picks her up, and does the family’s laundry and grocery shopping in between. 24% 10 years ago. Last month, when she had strep throat, it was he who nursed her back to health. Author Source: Families and Work Institute Writing Movies OYet these men aren’t just your average stay-at-home dads. In See FOLLOWING on Page 44

November 5, 2007 | Crain’s New York Business | 43 CNYB 11-05-07 A 44 11/1/2007 9:22 PM Page 1

BUSINESS LIVES

a telemarketing company in New York City and had just moved to the Following dadpreneurial urge suburbs with two toddlers. A year later, Mr. Kerner’s mar- Continued from Page 43 “Dads are taking a really big role drop-off spot—their seriousness as riage ended and his telemarketing between potty training Scherer,and in raising their children more than businessmen is also sometimes business went under. Suddenly an play dates,they are eking out time to ever before,” says a spokeswoman questioned. unemployed stay-at-home dad,

run kid-related businesses from for the Juvenile Products Manufac- “Many people still see stay-at- getty images Mr. Kerner decided to launch his their homes, with only part-time turers Association.“Because of that, home dads as Mr. Moms,” says Liz product idea—diluted fruit juices help from babysitters. we have definitely seen an increase Bywater, an organizational per- TIPS FOR for kids packaged in patented spill- Mr. Kerner is the creator of in dadpreneurs.” formance expert.“If the dadpreneur proof bottles. WaddaJuice, a drink for kids; Mr. There are more than 150,000 happens to be engaged in a kid-re- DADPRENEURS “Having kids and being with Scherer runs Kids NYC, a company stay-at-home fathers in the United lated business, that can add to the them on a daily basis,”he says,“I saw G that creates computerized interac- States, according to 2005 Census perception that he is somehow un- Quit at 5 p.m. and go back to how I hated juice boxes that spill.” tive educational games; and Mr. Bureau data. And a growing num- manly or not a hard-core busi- work after the kids’ bedtime. Office hours Chesleigh recently opened the ber are caring for the kids and nessperson.” G Hire a babysitter to take your Young Chefs Academy, a cooking launching home-based businesses Such woes may soon go the way kids on play dates, since some mr. kerner converted his garage school for kids. at the same time. of the cloth diaper, however, as fa- moms don’t want to socialize into an office so he could be near his Stay-at-home moms have creat- thers become more and more in- with dads. boys. He stops work at 5 p.m. to ed everything from diaper bags to Dealing with stigma volved in parenting. cook dinner for his kids and put devices that painlessly cut the crusts on top of normal child-rearing “Fathers don’t want to be stick G Engage your children in the them to bed. At around 9 p.m., he off sandwiches.Now,a new breed of challenges, dadpreneurs must deal figures hiding behind the newspa- business as product testers. heads back to his home office for entrepreneur in the child products with a subtle but still existing social per anymore,” says Ellen Galinsky, another three hours. and services industry is emerging: stigma. They’re not just odd man president of the Families and Work G Plan to spend triple the It took four years to start manu- the dadpreneur. out at the playground or school Institute. “Men are feeling more amount of money you budgeted facturing his product, which went pulled between work and family life to launch your business. on the market last May. In less than than ever before.” six months, revenue has reached Mr. Scherer, who used to own a nearly $2 million. rare-video company, founded Kids in school. Then he stops for a few Still, there are constant chal- NYC four years ago. The site start- hours to spend time with them, lenges. “Every day I still think, ed as a daddy’s guidebook to New drops them off at a babysitter’s and ‘How am I going to manage all York; it now includes everything works some more. this?’” Mr. Kerner says. “My 7- from interactive games about the Mr.Kerner,a single dad in West- year-old needs help with his home- history of the city to funny videos of port, Conn., came up with the idea work, and all my managers are call- ticklish cats. for WaddaJuice at a diner five years ing and asking me questions. It’s a Mr. Scherer squeezes in five ago after watching his now ex-wife lot at times.” hours of work a day while his 3- dilute their sons’fruit juice with wa- Mr. Chesleigh was working as year-old girl and 7-year-old boy are ter. At the time, Mr. Kerner owned an account executive for a ticket agency in Manhattan when his wife, Karen, read an article about opening a kids’ cooking school franchise. Seduced by the idea of Why go to your office owning their own business while spending more time with their 4- when you can go to The Office? year-old, the Chesleighs invested Alzheimer’s $150,000 to open the Young Chefs Academy near their apartment in Actor Steve Carell’s donation of a chance to visit him and Forest Hills, Queens. his fellow cast-members on the set of NBC’s The Office is Since his wife was making more just one of the great items up for bid in a silent auction to money in her job as director of human benefit lung cancer research foundation Joan’s Legacy. resources for Prudential Douglas El- Extinct. Among the many other “once-in-a-lifetime” and special lots liman, Mr. Chesleigh decided to up for grabs at this year’s Strolling Supper with Blues & hang up his suits for good to juggle both the business and child care. News for Joan’s Legacy on November 8 are: “It was an easy choice,” Mr. Chesleigh says.“Now I get to spend I A starting number in the 2008 New York City Marathon more time with my daughter, too.” WHAT’S YOUR VISION FOR THE FUTURE? I A spot in the NBC control booth for the 2008 Election Night coverage COMMENTS? [email protected] I A 2007 Ducati Superbike I A chance to name a character in the next Nelson DeMille EXPLORING CAREERS Set your vision in motion today at best-seller Tel Aviv University, Israel’s leading I An opportunity to sit in the New York Jets’ seats for the GROUP SEEKS institution of higher learning. Super Bowl HOST BUSINESSES I A dinner party catered by Union Square Café’s Chef de Cuisine THE GREATER NEW YORK COUNCILS’ Give a gifted med student a scholarship. I A vacation in a Villa at Casa de Campo in the Exploring program Fund an innovative internship. Dominican Republic seeks businesses to host sessions offering high school Create a pharmaceutical research lab. I A coffee date with Tom Brokaw students the chance to explore I A reservation for dinner at ultra-exclusive Rao’s restaurant various industries and make Your vision can have a powerful impact on our future. I And lots more better decisions about career Explore the possibilities. Let us help. choices. Call Roni Krinsky at 212.742.9070, ext. 77 Exploring puts together or [email protected] Bids can be made online, by phone or in person at the event. groups of 15 to 25 students. Strolling Supper with Blues & News Thursday, November 8 – 6:30 to 9:30 p.m. They meet at the host busi- At The Allen Room and Atrium of Frederick P. Rose Hall nesses after school for four or Home of Jazz at Lincoln Center more sessions, learning about For more information about the auction or the foundation, educational requirements, please visit www.joanslegacy.org salaries and what people in 212-627-5500 their selected fields actually do. For more information, please call Exploring director Bob Hayes at (212) 651-2808, E X P A N D I N G T H E F U T U R E www.aftau.org 27 Union Square West, Suite 304, New York, NY 10003 or visit www.nyexploring.org.

44 | Crain’s New York Business | November 5, 2007 CNYB 11-05-07 A 45 11/1/2007 5:45 PM Page 1

BUSINESS LIVES CORPORATE LADDER Suzie Mills Making a model hotelier Youthful GM at Trump as his model. “Suzie will be a person we will rely PERSONNEL FILE will set the pattern on heavily,” says Jim Petrus, chief operating officer of Trump Interna- ORGANIZATION Trump Interna- for big new chain; tional Hotels Management and Ms. tional Hotel & Tower Mills’ boss.“She has a good pulse on TITLE General manager must restore fifth star what works and what doesn’t.” The Trump organization is also AGE 35 BY LISA FICKENSCHER counting on Ms. Mills, who started RÉSUMÉ Assistant manager, at the hotel in 1996 and rose to as- Mayfair Hotel, New York; banquet rowing up in Wales, sistant manager in 2004, to regild sales manager, Savoy Hotel, Suzie Mills was en- the property’s image. London couraged to earn her own pocket money. Getting No. 5 back ON HER iPOD Disco classics, When she was 12, she three years ago, Trump Interna- Aerosmith, Neil Diamond Gbegan waiting on tables at the tional, a 52-story tower with 167 HOBBY Running charity races restaurant her parents owned. They guest rooms and 158 condomini- also owned a local inn, where the ums at 1 Central Park West, was family lived. knocked down a peg when it lost fore they arrive.Trump Internation- “It was very exciting,” Ms. Mills one of its five stars from the Mobil al’s well-known restaurant, Jean recalls.“I enjoyed all the interactions Travel Guide; five stars is the Georges,still enjoys top marks from with so many different people.” guide’s highest rating. Mobil and many other reviewers. At 17, she snagged a coveted in- “Getting back that fifth star is Mr. Trump’s grown children, ternship at London’s prestigious definitely a mission of mine,” Ms. Ivanka, Eric and Donald Jr., are al- Savoy Hotel. She stayed for five Mills says. To do that, the tall and ready turning to Ms. Mills for her years,ultimately rising to the post of poised hotelier is focusing on im- expertise. Chosen by their father to

banquet sales manager when she proving service at the property, help lead the charge into hotels, the buck ennis was just 22. where nightly rates range from $795 scions recently took a tour of Man- Now, Ms. Mills, who isn’t even for a standard room to $2,000 for a hattan’s leading hostelries with her the site of the sixth.The SoHo stun- that would be an amazing hotel to 40, has taken center stage in New two-bedroom suite. as their guide. ner is slated to open by 2009. open,” she says of the Middle East York: In August, she was named Not that the service is exactly Ms. Mills, who helped get the project, which is expected to be general manager of Trump Interna- shabby,but it must be nothing short Mideast dreams Manhattan flagship up and running completed in 2010. “But my Mum tional Hotel & Tower.The appoint- of impeccable in the lodging indus- the company’s growth plans are a decade ago,is excited about the fu- would probably be happy if I opened ment comes as Donald Trump is try’s highest echelons. Ms. Mills in- now beginning to click.The second ture and the possibility of carrying the Scotland property.” aiming to create a hotel empire with tends to enhance offerings, such as hotel will open in Chicago in De- the Trump torch into a new market. a dozen outposts using that flagship concierge services to guests even be- cember. And New York City will be “I haven’t been to Dubai, and COMMENTS? [email protected]

Knowledge is power.

Crain’s offers a series of Breakfast Forums throughout the year that will enlighten and empower you.

Log on to newyorkbusiness.com and click on Events for a list of In the automotive business, logistics is everything. “The mission of NJ CAR is to serve the essential business needs of automotive retailers upcoming Forums. throughout New Jersey.This state has a large and vibrant network of vehicle dealers and they all rely on the port to get the cars here on time.With nearly 750,000 cars entering or leaving the port every year, logistics is everything.You may not give much thought to the port, but it is truly the engine that keeps our economy revved up. For the automotive industry, the Port of New York and New Jersey means business.” James B.Appleton President NJ Coalition of Automotive Retailers (NJ CAR)

The men and women of the port of New York and New Jersey... CRAIN’S BREAKFAST FORUMS THE MOST TRUSTED NAME IN NEW YORK BUSINESS® .com

November 5, 2007 | Crain’s New York Business | 45 CNYB 11-05-07 A 46 11/1/2007 8:55 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING AlixPartners: Sean Dowd, 45, joined as HOT JOBS business development director. He had been regional business development executive at Ernst & Young. Richard Pople, 43, joined as director of WANTED: DEPUTY DIRECTOR technology transformation services. He was formerly a managing director at the ORGANIZATION Baby Buggy Corporate Executive Board Co. JOB DESCRIPTION Implement long-term financial goals and programs VIP Clients Aon Consulting: Todd Clarke,40,was for the Manhattan nonprofit, which Jessica Seinfeld founded in 2001 promoted to vice president, health and benefits, from assistant vice president. MOST IMPORTANT TASK Prospecting major donors Deloitte & Touche USA: VIP Events Rick Berry, 57, CREDENTIALS NEEDED Bachelor’s degree, and six-plus years’ joined as a director, insurance. He was formerly a principal at Towers Perrin. experience in nonprofit management and fundraising Ann Connolly, 54, joined as a director, SALARY $100,000 to $115,000 a year VIP Venues insurance. She had been a managing director and head of talent acquisitions RECRUITER Professionals for Nonprofits at Barclays Capital. DOWNSIDE Organization is small and low-profile Audio • Video • Lighting Don McNees, 57, joined as a principal, insurance. He had been global financial UPSIDE Opportunity to help mothers and families in need of baby institutions initiative leader at Towers essentials, including clothing, equipment and other products Perrin. Baby Buggy has collected and distributed more than 2 million items, ADVERTISING & COMMUNICATIONS from diapers to cribs, to families in the five boroughs through hospitals, Euro RSCG Worldwide: Robert Kleman, 31, domestic violence and homeless shelters, parent programs and child joined as executive creative director. He care centers. The group had a budget of $3.3 million last year. had been associate creative director at —AMANDA FUNG TBWA\Chiat\Day. Jason Levine, 32, joined as creative 1.800.862.3210 director. He had been senior vice president and creative director at www.kvlav.com Publicis. Lippin Group: Matt Biscuiti,31,was promoted to senior vice president from Lockheed Martin. McCarter & English: Thomas Kesoglou,35, vice president. was promoted to partner from associate. We rent peace of mind. FINANCE & INSURANCE Schulte Roth & Zabel: Robert J. Ward,55, Nationwide rental, staging, sales and installation of ARCHITECTURE & DESIGN Alexandra & James: James B. Lebenthal, joined as partner. He had been a partner IA Interior Architects: Mindy Williams, 38, joined as president of equity asset at Mayer Brown. state-of-the-art audio visual equipment at 34, joined as director of business management. He had been a partner at the most competitive rates. development. She had been business Levy Harkins & Co. MEDIA & ENTERTAINMENT development manager at TSC Design Gregory W. Serbe, 62, joined as president CNNMoney.com: Jonathan Shar, 38, was Associates. of municipal management. He had been appointed general manager. He had Ross & Baruzzini Inc.: Dan Proctor, 52, municipal portfolio manager at been a vice president at the Sports Depend on KVL like CRAIN’S joined as vice president of client BlackRock. Illustrated Group. solutions and consulting. He was Michael S. “Mickey” Dobbs, 37, joined as EMI Music Publishing: Dan McCarroll, formerly a director of operations at chief compliance officer. He had been 45, was promoted to executive vice chief compliance officer at Dahlman president, east coast creative, from head Rose & Co. of east coast creative. Commercial Finance Association: Andrej Traditional Home magazine: Debra Suskavcevic, 39, was appointed chief Brandt, 44, was named publisher for the executive. He had been a vice president Meredith Corp. title. She had been THIS IS OUR MARKET... at Financial Executives International. publisher of New York Home and Brian P.Cove, 45, was promoted to chief Absolute magazines. operating officer from deputy executive director. REAL ESTATE DBRS: Bryan Caviness, 38, joined as For Sale By Owner: Eric Mangan,32, senior vice president. He was formerly a joined as director of media and senior director at Fitch Ratings. consumer relations. He had been New York Life Insurance Co.: Frank Boccio, corporate communications executive at 55, was appointed executive vice Sotheby’s International Realty. president and continues as chief GVA Williams: John Basile, 52, was administrative officer. appointed senior managing director. He had been a director at BlackRock Realty. HIGH TECH & NEW MEDIA HR&A Advisors Inc.: Ronda Wist,50, Investment Technology Group Inc.: Peter joined as principal. She was formerly Goldstein, 43, was appointed managing executive director at the New York City director and global head of human Landmarks Preservation Commission. resources. He was formerly global head Sinvin Realty: Trisha Jerry, 30, joined as of human resources for the alternative director. She had been a director at investments division at Deutsche Bank. Spaceworks Real Estate Services Inc. Joseph LaRosa, 35, joined as director. He LAW had been an associate director at Arnold & Porter: Frederick Fucci,48, Coldwell Banker Commercial Properties. joined as partner. He was formerly a partner at Thelen Reid Brown Raysman SERVICES & Steiner. American Liver Foundation: Rick Smith, Feldman Weinstein & Smith: Michael 54, was named president and chief Nertney, 34, was promoted to partner executive. He had been president and Admit One, the trusted source for the acquisition and sale of live event tickets for over 20 years… from associate. chief executive, Maryland, at the Buy side and Sell side Goodwin Procter: Brian D. Hail, 40, National Multiple Sclerosis Society. On the — we offer our clients true market value, secure transactions and dependable service. joined as partner. He was formerly a —adrianne pasquarelli Let Admit One connect you and your clients to the events that matter. partner at Haynes & Boone. and sarah studley Heller Ehrman: Brad Scott, 53, joined as chief operating officer, a new position. EXECUTIVE PROMOTIONS (646) 307-4239 He had been executive director at Weil Gotshal & Manges. Crain’s lists the promotion and hiring of New York www.admitone.com Kirkland & Ellis: Josh B. Simon, 31, was area senior executives on a space-available basis, email: [email protected] promoted to partner from associate. with priority given to positions in New York City. 1412 Broadway, New York, NY Anne S.Toker, 40, was promoted to The fastest way to get an announcement into partner from associate. Crain’s is to submit details online by filling out the SPORTS •THEATER •CONCERTS Thaddeus J.Tracy, 33, was promoted to form at www.crainsnewyork.com/submit. The partner from associate. Executive Moves column is also available online. On the Bloomberg Terminal: Type TIXX or email [email protected] Christine Willgoos, 33, was promoted to Crain’s cannot confirm receipt of listings or say partner from associate. when they will appear.

46 | Crain’s New York Business | November 5, 2007 CNYB 11-05-07 A 47 11/2/2007 11:35 AM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape er steak, with chimichurri sauce, is BEST OF BOB LAPE Porter House New York the finest and most tender I’ve had Time Warner Center, 10 Columbus in the city; the porterhouse for two Circle, fourth floor, Manhattan. and Kansas City sirloin are also top- Following are a few of the recently (212) 823-9500. Chef Michael Lo- notch. reviewed steakhouses. monaco joins the high steak stakes I heartily appreciated the superi- with porterhouse cuts of everything or veal chop presented with fresh Quality Meats ½ from beef to monkfish. The posh, herbs, mushrooms and roasted gar- 57 W. 58th St. (between Fifth and comfortable spot has views of Cen- lic. Our waiter recommended a gar- Sixth avenues), Manhattan. tral Park, many wines and good lic segment with each bite, a sugges- (212) 371-7777. Rustic New Amer- desserts. tion that was spot-on for ican food, plus great service and satisfaction. The fig-glazed Berk- wines in a playful setting that sug- shire pork chop is another delightful gests a high-design meat locker. option; several guests applauded the “unrack” of lamb, with grilled loin Kobe Club and spare ribs made easier to attack. 68 W. 58th St. (between Fifth and What Primehouse categorizes as Sixth avenues), Manhattan. Ocean Meats get equal attention (212) 644-5623. The best cuts from and careful cooking. Organic Scot- Japan, Australia and the United tish salmon comes with an endive States are served under 2,000 samu- and chorizo salad, and skate meu- rai swords suspended from the ceil- niere is done with chanterelles and ing of this sensuous, red-hot steak- golden raisins. house. Exciting design, great beef. Mandatory sides ($9), served in cast-iron pots and pans, include hy- Valbella percrunchy onion rings, creamed 421 W. 13th St.(between Ninth Ave- spinach and smoked-bacon brussel nue and Washington Street), Man- sprouts. Hash browns need more hattan. (212) 645-7777. browning. A dramatic debut in the meatpack- Mr. Hanson’s pastry wizard, ing district for one of Connecticut’s Elizabeth Katz,comes up with souf- top-rated Italian restaurants. Own- flés and fresh doughnuts to cap a er David Ghatanfard makes his case with thousands of wines, the finest

buck ennis dining extravaganza, plus a great CARNIVORE’S CLOSET: Chef and partner Jason Miller stands in the restaurant’s aging room, chocolate cake:seven moist layers of ingredients and customer cosseting. where bricks of pink Himalayan salt help the process along. cake, mostly of a mousse consisten- cy, with malt ball-crunch ice cream. Blair Perrone ’Nuff said. 885 Second Ave.(between East 47th and East 48th streets), Manhattan. COMMENTS? [email protected] (212) 796-8000. Luger legacies Charlie Blair and Joe Perrone tend a Standing out handsome beef boîte with witty among a herd waiters and plenty of porterhouse. A MATTER OF Steve Hanson’s Running counter to conventional meat palace settings, Primehouse Perspective Primehouse features presents a cool, geometric aesthetic in gray,black and cream,with grace- its own stud bull and ful arches and soft but effective lighting. The large bar is surround- excellent desserts ed by tables, with another dining room beyond and two spacious pri- anhattan’s multi- vate rooms with double-sided wine PRIMEHOUSE plying meat marts displays. 381 Park Ave. South continue to chal- Chef and partner Jason Miller, a (at East 27th Street) lenge America’s cat- New Yorker with deep experience (212) 824-2600 tle herds, and there’s with Smith & Wollensky and David Mno end in sight. Burke,provides impressive firepow- The third Uncle Jack’s Steak- er with the main attraction as well as CUISINE Modern steakhouse house officially opens Monday at 44 creative sides. W. 56th St. The revamp of the Doughnut-shaped onion and WINES 360 choices, 33 by the Lenox Room into the T-Bar Steak olive rolls served warm on a “spike” glass; sommelier M&K takes a closer look. & Lounge has gotten off to a rous- start things off with chewy good- DRESS Business casual ing start. And Creston’s American ness. The wittily concocted cock- As certified public accountants and business consultants, NOISE LEVEL Lively Grill and Prime 112, from Miami tails feature potables like Dirty Bull: we understand that the difference is in the details. From number - Beach, are on the way. vodka, olive water and veal stock. PRICE RANGE $21-$49 crunching to strategic business planning, M&K looks at your Steve Hanson’s awesome Prime- Tableside preparation of steak WINE MARKUP 100%-200% house, already a tough table to get tartare or Caesar salad is first-rate. business and financial situation from every point of view. It’s not just after opening six weeks ago,is some- Other notable beginnings ($10 to CREDIT CARDS All major about the bottom line, but how you get there. That’s the M&K Way. thing different. It must be the first $18) are a Kumomoto oyster bake; a RESERVATIONS Strongly American steak palace done prima- New Wedge salad featuring ro- recommended rily in travertine marble, and it’s maine lettuce, tomatoes, red onion surely one of a precious few with a and Maytag Blue cheese; crab HOURS Lunch, Mon.-Fri., 11:30 prize bull (a $150,000 Black Angus, bisque;and a crab cake that is almost a.m.-4 p.m.; Dinner, Sun.-Wed., named Prime,in Kentucky) working 100% the namesake crustacean. 5-11 p.m., Thurs.-Sat., 5 p.m.- midnight; Brunch, Sat.-Sun., tirelessly to procreate and provide Raw bar options range from a $2.50 Marcum & Kliegman LLP the stock for a special room that is oyster to the table-bending Shell- 11 a.m.-4 p.m. stacked with bricks of pink Hi- fish Empire ($79), with dozens of Certified Public Accountants & Consultants = Outstanding NEW YORK malayan salt to aid the aging process. fresh offerings. = Excellent MELVILLE www.MKLLP.com Can you guess The 5,600-square-foot restau- Primehouse’s kitchen puts a 800.921.0777 = Very good GREENWICH what this image is? rant is another dramatic design by beautiful char on the 28-day aged = Good Email your answer to: Yabu Pushelberg, who also created bone-in rib-eye,a tender and succu- GRAND CAYMAN [email protected]. Dos Caminos Park and Blue Fin. lent cut of beef.The 12-ounce hang-

November 5, 2007 | Crain’s New York Business | 47 Project6 10/16/07 1:54 PM Page 1