SMALL BUSINESS These doggy day-cares are the FPO cat’s meow CRAIN’S® NEW YORK BUSINESS PAGE 4 VOL. XXX, NO. 4 WWW.CRAINSNEWYORK.COM JANUARY 27-FEBRUARY 2, 2014 PRICE: $3.00 Where all that Super Bowl cash is flowing Residents rent apartments; hotels and bars host bashes; airlines add flights BY ADRIANNE PASQUARELLI AND LISA FICKENSCHER Michael Matthews has been renting out the one-bedroom garden apart- ment of his Hamil- SUPER BOWL ton Heights, Man- REPORT hattan, brownstone SCORING TIX since July on a tem- TO BIG GAME porary basis.It wasn’t TAKES MORE until last week, THAN CASH though, that he PAGE 15 added two little words to his HomeAway listing that he expects will bump up the nightly price from $165 to $300: Super Bowl. “If the teams were from New Eng- land, we figured most people would drive here and not spend the night,but See GAME DAY on Page 21 Wells Fargo pushes NY Shmeat market expansion Wall St. presence and Biotech targets NYC BY MATTHEW FLAMM Meadow, which only sounds like it belongs in a sci-fi movie, is in negotiations to lease smaller branches are as a natural center Brooklyn may soon be the headquarters of up to 10,000 square feet at the BioBAT fa- keys to bank’s strategy a futuristic startup that grows test-tube cility at the Brooklyn Army Terminal. for test-tube meat leather and in-vitro meat—biofabricated That’s where it aims over the next year or products that the company hopes will be- two to begin producing leather that could BY AARON ELSTEIN production. But first, come part of the fashion and culinary scenes be as thick as a boot sole or as thin and in New York. translucent as silk. Farther down the road Wells Fargo, the bank that’s big just some in-vitro leather Tissue-engineering pioneer Modern See SHMEAT on Page 21 about everywhere except New York, has its eyes on the Big Apple. john kuczalajohn Five years after gaining a toehold in the city when it acquired Wachovia at a fire-sale price, the San Francisco 04 5 giant is starting to stir. It has hired NYC’S LARGEST HOTELS dozens of bankers to cultivate relation- THE keep getting bigger. Yet demand ships with small and midsize New York businesses, quietly assembled a for rooms continues to exceed formidable capital-markets operation expectations PAGE 17 and is experimenting with new kinds NEWSPAPER LIST See WELLS FARGO on Page 24 71486 01068 0 EDITOR’S NOTE What ails them FYICRAINSNEWYORK.COM The guest speakers at our Business of Restaurants event last week Cuomo draws wasted no time dishing on Mayor Bill de Blasio’s proposed expansion pre-K battle lines of the city’s new paid-sick-days law with de Blasio to small businesses with as few as five employees, from the current 20- ov. Andrew Cuomo’s offer last week to fund Mayor Glenn Coleman worker floor, to start April 1. It’ll surely be a bookkeeping burden— Bill de Blasio’s universal G charles eckert especially if ex-employees get pre-K program with “whatever multiyear legal windows to sue for past sick time they the mayor needs” was intended to undercut Mr. de Blasio’s call to hike taxes on households say they’re owed—but ultimately, the customer will earning more than $500,000. Normally, city officials go hat in hand to the state capital asking for eat the cost of a law that adds a 53rd week to a funding. But Mr. de Blasio rejected the offer. In doing so, he hardened the battle lines of a fight shopkeeper’s 52-week payroll. “I can’t see any way of that is as much about politics as it is public policy—specifically, the power of the city’s ascendant paying for sick days other than raising prices,” said progressives to flex their muscles in Albany against a popular governor running for re-election. Schnipper Quality Kitchen’s Andrew Schnipper. He Expect universal pre-K to be the premier event of the state budget season now underway. estimated that picking up the tab for five paid days off After his budget address last week, Mr. Cuomo cast the mayor’s tax plan as politically—not for each of his 200 employees will cost his chain of fiscally—motivated, and said it would be unfair to smaller cities that aren’t magnets for quick-casual eateries $50,000 to $100,000 per millionaires. (He ignored the obvious rejoinder: that a tax would leave more money for upstate.) restaurant annually.“Everybody’s going to take their Mr. Cuomo’s veto power ensures that he will be able to say no to Mr. de Blasio’s allies in five days,” predicted former corporate attorney Albany, specifically Assembly Speaker Sheldon Silver, who favors the tax. One question that Matthew Glazier, now president of his family’s remains unanswered: What will the governor need to persuade Mr. Silver to pass Mr. Cuomo’s Glazier Group, creators of the swank Strip House tax-cutting budget before the April 1 start of the state’s fiscal year? chain of steak joints. “Legislators don’t understand what it’s like to work in these industries.” Maybe that’s A NEW NEST FOR TWITTER. Microblog- the last six months it printed. … because so few of the City Council’s 51 members have ging site Twitter snatched 140,000 CUOMO, SCHNEIDERMAN SPLIT HOORAY! spent a day of their working lives in any private square feet in Chelsea for its new SPOILS. Gov. Andrew Cuomo and OF THE 10 U.S. SCHOOLS with the top Manhattan headquarters. This Attorney General Eric Schneider- SAT/ACT scores, four are in NYC, enterprise. What would our paid-sick-days law look comes after its deal in the East Vil- man agreed to split the $163 million according to Niche, a K-12 analysis site. like if a majority of the council had, say, restaurant lage at 51 Astor Place fell through af- that the state received from a settle- experience on their résumés? I worked as a waiter and ter computer giant IBM leased that ment with JPMorgan Chase & Co. office space. Twitter moved into its over mortgage-backed securities. manager in establishments where drug and alcohol current space at 340 Madison Ave.in Half will go to the governor’s office, abuse was so rampant there might as well have been a 2011.… BIXI PEDALS INTO BANKRUPT- where it will be used for mortgage re- special “pairing menu.” I can assure you this law CY. The Montreal-based company lief and housing programs. The rest should not be as generously written as it is. It assumes that designed the bikes and solar- will be used by the attorney general’s powered docking stations for Citi office for an anti-foreclosure pro- that no worker ever does wrong—that no waiter with Bike filed for bankruptcy in Canada. gram (see Alair Townsend, Page 13). OY VEY! a hangover or hostess with a casting call would ever Despite the success of bike-sharing … LENOVO SNAGS IBM SERVER. Chi- SNOW phone in sick an hour before the brunch shift. Mr. programs across the world, Bixi has nese computer maker Lenovo has EQUIPMENT Glazier estimated that maybe 20% of a restaurant’s debt of more than $46 million. New purchased IBM Corp.’s money-los- shattered a York City and Chica- ing server business panel at the total workforce takes advantage of the rules. Much as Apple Store’s go contributed to ‘The cardigan for $2.3 billion— Fifth Avenue I cherish my restaurant pals, I’d say he had it low. Bixi’s financial woes China’s largest tech flagship. by withholding pay- invites deal ever. A decade ments totaling more comparisons ago, Lenovo pur- THIS WEEK IN CRAIN’S than $5 million be- chased IBM’s strug- cause of software to hideous gling ThinkPad busi- bloomberg news problems with the ness for $1.75 billion SMALL BUSINESS ----------------------------- 4 bike stations. … Christmas and transformed it tablished for Dow Jones. William NEWSWEEK STOPS IN THE BOROUGHS---------------------------4 sweaters’ into one of the world’s Lewis,News Corp.’s chief creative of- PRESSES. Newsweek leading PC makers.... ficer, will replace him on an interim DIGITAL NY------------------------------------------------------ —Cathy Horyn, 6 has delayed the re- DOW JONES CEO basis. … CITY’S FIRST LADY TAKES fashion critic for The DEPARTS. FIRST STEP. IN THE MARKETS----------------------------------6 launch of its print New York Times, Chief Ex- Chirlane McCray tapped edition to March ecutive Len Fenwick a former top aide to the Rev.Al Sharp- THE INSIDER -----------------------------------------------8 commenting on the 7 from January. U.S. Olympic left Dow Jones after ton as her chief of staff.Rachel Noerd- EDITORIAL---------------------------------------------------12 The news mag- team’s uniforms less than two years on linger will be pulling in $170,000 a azine, which for Sochi, the job. Parent com- year, on par with many of Mayor Bill ALAIR TOWNSEND -------------------------13 went all-digital designed by Ralph pany News Corp. is de Blasio’s top staffers. The hire was GREG DAVID--------------------------------------------13 at the end of Lauren reviewing the price- seen by political observers as a sign of 2012, is aiming bundling structure Ms. McCray’s yet-to-be-announced REAL ESTATE DEALS-------------------14 for 100,000 subscribers in its first for DJX, the news and information role in her husband’s administration. REPORT: SUPER BOWL-----------15 GOTHAM GIGS year; it averaged 1.4 million during services product that Mr.