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TOP STORIES REAL ESTATE Coping with a market slowdown ® PAGE 19 Peace groups try to influence the vote PAGE 2 VOL. XXIV, NO. 20 WWW.CRAINSNEWYORK.COM MAY 19-25, 2008 PRICE: $3.00 Pro sports leagues beef up Web sites Ad decline PAGE 3 Shoppers go wild pummels for Heath Ledger’s Joker face local TV NEW YORK, NEW YORK, P. 6 stations Political grease is infuriating in tough times Lower ratings, weak ALAIR TOWNSEND, PAGE 13 economy lead to double-digit losses

BUSINESS LIVES BY MATTHEW FLAMM RICHARD HODOS of CB Local golf courses Richard Ellis says that a slowing economy and changes fit New Yorkers many people are waiting in viewing habits are combining to to a tee for Britain’s Topshop to beat the daylights out of the New come to Broadway. York local television marketplace. PAGE 35 Advertising revenue for the area’s six English-language sta-

buck ennis tions fell an unheard of 10.8% in April, according to an industry in- FEELING THE PINCH sider with access to the confiden- tial Ernst & Young audit report that the stations receive. May is not tracking any better, Stay put or cash out? media buyers say, making it likely that the local market will be down by double digits for the second gone before long. New York. quarter, compared with the year- Rising rents push International retailers such as With money like that up for ago period. SoHo’s Broadway Topshop, the British version of grabs, many retailers—not to Major cuts in spending by key H&M, and American chains, in- mention their landlords—are opt- advertisers have fed the decline.In- retailers to sublease cluding Aldo,have been using piles ing to cash out and allow that cor- siders say auto insurance company AT DEADLINE to foreign shops of cash to take over Broadway ridor of SoHo to finish its out- Geico pulled all of its local adver- storefronts between Houston and door-mall transformation. tising for the second quarter. Low- TONY-NOMINATED BROADWAY Canal streets in rapid fashion. Take Yellow Rat Bastard, for er prime-time ratings, a long-term SHOWS HAVE SEEN MAJOR BY ELISABETH BUTLER CORDOVA In the past six months alone, example. The quirky clothier is problem for the broadcast networks box-office gains since the the shopping corridor’s average re- said to be seeking a deep-pocketed that was aggravated by the writers nominations were announced here’s some advice for shoppers tail asking rents rocketed 32% retailer to take over its 20,000- strike, also hurt the stations. last week.The biggest winner who love the mom-and-pop compared with the year-earlier pe- square-foot space at 483 Broad- “In the New York market,this is in nominations, In the Heights, stores on Broadway in SoHo: Get riod, to $424 per square foot, ac- way. It relocated there just three one of the worst second quarters expected to sell about $1 there soon, ’cause they may be cording to the Real Estate Board of See RETAILERS on Page 8 See AD DOWNTURN on Page 8 million worth of tickets last week, or double its average. August: Osage County, which garnered seven nominations, had a bump of close to 40% in MTA begins Hudson Yards search anew sales each day last week. IN A SIGN OF THE ACUTE DEMAND FOR NURSES IN NEW Agency insists that it can get a deal done, BACK AT THE TABLE York City, last week’s but some argue project should be shelved The three developers that submitted losing bids graduates at New York for Hudson Yards are talking to the MTA again. University’s College of lion deal for the 26-acre site col- Nursing received higher- BY THERESA AGOVINO lapsed, some experts suggested Developers The Durst Organization, paying job offers than any that the Metropolitan Transporta- Vornado Realty Trust other undergraduate school the plan to redevelop the Hudson tion Authority should put the proj- Office space 5.4 million square feet there—even beating offers for Rail Yards has been taking a beat- ect on the back burner because of Residential space 6.4 million square feet See AT DEADLINE on Page 2 ing, but don’t count it out just yet. the sputtering economy. Sen. Public space 15.6 acres After Tishman Speyer’s $1 bil- Charles Schumer then criticized Developer Extell Development Co. the city’s focus on the yards to the Office space 5.8 million square feet detriment of what he believes is the 20 Residential space 5.6 million square feet

5 more important West Side project: Public space 19 acres Moynihan Station. Despite the one-two punch,the Developer The Related Companies MTA confirmed last week that the Office space 5.7 million square feet ELECTRONIC EDITION three teams that lost the bidding in Residential space 5.3 million square feet March are talking to the agency. Public space 15 acres NEWSPAPER

See MTA on Page 8 getty images 71486 01068 0 CNYB 05-19-08 A 2,3 5/16/2008 7:35 PM Page 1

AT DEADLINE

Continued from Page 1 begin this week. The airline students at NYU’s Leonard N. will take advantage of the more Stern School of Business.The relaxed trans-Atlantic flight class of 2008—at 396 members, regulations for which it is the nursing school’s largest named. This marks the first ever—is receiving job offers time that a British carrier with salaries that range between originates and ends all of its $69,000 and $77,000.The U.S. flights from outside the higher figure includes night United Kingdom. Before the shift differentials. agreement, European airlines could fly to the United States ON JUNE 3, THE LANDMARKS only from their home PRESERVATION COMMISSION countries. will begin public examination of the hardship application filed SEIU LOCAL 32BJ AND THE last week by Saint Vincent REALTY ADVISORY BOARD WILL Catholic Medical Centers to meet Tuesday and Thursday in demolish one of its buildings so an attempt to reach a contract that it can put up a new for the 1,500 security officers hospital. Additionally, a revised who guard commercial office plan for a related residential buildings in the city.The two development will be unveiled sides remain far apart on wages, today at a meeting of the local with the union demanding community board. Earlier this increases that cover the rising month, the commission costs of living in the area. The objected to many portions of guards are working under the both proposals without taking a terms of an expired contract formal vote. while negotiations continue. If JUDITH LEBLANC of there is no progress this week, a United for Peace & PACE LAW SCHOOL WILL strike will be possible. Justice says that LAUNCH THE METRO REGION’S volunteers are keeping the pressure on. first graduate-degree program LANDLORDS REMAIN BULLISH in real estate law this fall. It will ABOUT MANHATTAN’S RETAIL

be the country’s third such real estate, despite the nation’s buck ennis program, in addition to similar dismal outlook. Asking rents ones at the University of Miami across Manhattan rose 3% in and John Marshall Law School the past six months from the in Chicago.The new master’s year-earlier period, to $111 a degree is a 24-credit, one-year square foot, according to a new Anti-war tactics program. study released by the Real Estate Board of New York.The OPENSKIES, THE FLEDGLING southern half of the Upper East Groups reach out to voters, focus on troop withdrawal OFFSHOOT OF BRITISH AIRWAYS Side saw the biggest jump: and the world’s only carrier Asking prices rose 51%, to $329 named after an international a square foot, along Third BY SAMANTHA MARSHALL treaty, received final approval Avenue between East 60th and Friday from the Department of East 72nd streets.The Flatiron hosting a potluck dinner on Staten Island and endorsing congressional candidate Steve Transportation to fly between District came in a close second John F. Kennedy International with a 50% increase, to $401 a Harrison, a Democrat, were all in a Saturday night’s work for Peace Action this past weekend. Airport and Orly Airport in square foot, on Fifth Avenue Like most other anti-war groups around the city, the organization is going to the grassroots Paris. Online ticket sales will between 14th and 23rd streets. level in its efforts to push its agenda in this year’s election cycle. “A borough on any given night has a meeting going on about the war,” says Judith LeBlanc, national organizing coordinator for United for Peace & Justice, a coalition of peace groups THIS WEEK IN CRAIN’S headquartered in Manhattan. “It’s amazing what volunteer peace-minded folks are doing to keep the pressure on.” NEW YORK, NEW YORK------6 Whether they’re veterans groups, faith-based organizations or strident peaceniks, the scores

ALAIR TOWNSEND ------13 of anti-war organizations born and based in the city are starting to step up efforts to influence See ANTI-WAR on Page 10 THE INSIDER------14

WEEK IN REVIEW ------16

THE WEEKS AHEAD ------17 REPORT: REAL ESTATE ------19 More can’t pay utility bills 37 DEALS------30 NEIGHBORHOOD in the city who are behind on their Con Ed’s deferred payment program Number in arrears payments was 5% higher in April in April, an increase of 9.6%. JOURNAL------31 rose 5% in April; than in the same month a year ear- Current trends in the price of CLASSIFIEDS ------32 lier.They are also falling further be- heating oil do not bode well, either. rise in oil prices hind than before; the amount they According to a survey released SMALL BUSINESS ------34 owe has gone up by 19%. last week by the state Energy Re- could hurt next year search and Development Agency, BUSINESS LIVES------35 187,000-plus are behind at Con Ed the price of home heating oil has CORPORATE LADDER------37 BY MATTHEW SOLLARS con ed alone says that more than gone up nearly 6% since the end of 187,700 customers were in arrears April. In the city, the average price EXECUTIVE MOVES------38 39 unable to cope with higher ener- last month,a 9% rise from a year ear- of a gallon of heating oil is now BOB LAPE ------39 gy prices, more New Yorkers are lier.The company turned off service $4.45, according to the state survey. falling behind on their utility bills, to more than 9,300 households, Heating oil prices typically stay vol. xxiv, no. 20, may 19, 2008—Crain’s New York Business (issn 8756-789x) is published weekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals and a rising number are seeing their compared with about 8,200 in April flat or fall as temperatures rise, but postage paid at New York, N.Y. and additional mailing offices. Postmaster: Send address service shut off. 2007. that seasonal dip won’t occur this changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777.$3.00 a According to the Public Service “Our object is not to turn people year because of the sharp increase in copy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contents Commission, the number of Con- off but to work with them,” a crude oil prices. copyright 2008 by Crain Communications Inc. All rights reserved. solidated Edison and National Grid spokesman says. He says 10,000 residential and business customers more customers were enrolled in COMMENTS? [email protected]

2 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 2,3 5/16/2008 7:36 PM Page 2 Pro leagues score online

$727 million this year, up 33% from lion visitors a day,is up 65% versus a Enhanced Web sites 2007 levels,according to eMarketer. year ago. It has partnered with directed at increasing Revenues are expected to surpass $1 YouTube to distribute clips, split- billion in 2011. ting ad revenues.Additionally,it has online ads; giving The lift in online advertising has added exclusive video to its site,such fans new options helped MLB Advanced Media be- as shots from 10 different camera come a big moneymaker and one of angles of the crowd-pleasing slam the league’s fastest-growing busi- dunk last week by LeBron James of BY AMANDA FUNG nesses. Chief Executive Bob Bow- the Cleveland Cavaliers. man expects the division to generate in april, the National Hockey revenues of $450 million this year, a NFL takes control League unveiled an online video 30% gain. “fans eat that stuff up.You can’t site, with seven channels of original Currently, 80% of the unit’s sales get it anywhere else,” says Steve content,to coincide with the start of come from paid subscriber services Grimes, the NBA’s vice president of the Stanley Cup playoffs.The move and online mer- interactive services.He adds that ac- paid off, with traffic on NHL.com chandise sales. cess to Turner’s tech staff and devel- soaring to historic highs: The site Fans pay $15 to opers will help the NBA develop attracted 12.4 million unique visi- $120 annually for new Web applications. tors last month, up 43% from the access to live The NFL is taking an opposite year-earlier period. games streamed tack from the NBA. After six That same month, Major online and other years of outsourcing its digi- League Baseball launched a feature exclusive, interac- tal business to CBS Sports- for its video site that lets baseball tive Web content. Line, the NFL took control fans watch six games at once while MLB Advanced of its Web properties last tracking other up-to-the-minute Media currently year, in time for the 2007-08 information, like player stats. boasts more than football season. Revenues In an effort to cash in on the on- half a million sub- have doubled since the line advertising boom, the four ma- scribers, and its changeover, says Brian Ro- jor professional sports leagues are MLB.com at- lapp, the NFL’s senior vice beefing up their Web sites. MLB is tracts about 8 mil- president of media strategy. the furthest along in its digital ef- lion unique visitors a day. brought the NFL.com attracts about 18 forts, having invested close to $75 “MLB was way ahead of the Web sites of all million monthly visitors dur- million in the Internet since 2000. curve,” says Mr. Verna.“It has man- 30 of its teams ing football season. The NHL, the National Football aged to propagate different business in-house last Because the football League and the National Basketball models simultaneously.” year, and it has league owns a TV network, it Association have not been as suc- While MLB and the other invested mil- has maintained stricter dis- cessful, but they continue to experi- leagues have built-in fan bases, they lions online. tribution rights than its ment with different game plans. face formidable competition from The NHL has peers, which limits the sites such as ESPN.com and Yahoo signed up top streaming of complete games Focus on young fans Sports. In addition, their sports are advertisers, in- online. But the organization “the web is a natural conduit for seasonal, which presents them with cluding Verizon Communications, duction and back-end tech infra- says it will add more user-generated leagues to connect with fans,” says the challenge of maintaining fans’ Dodge and Cisco, to sponsor the structure for all NBA Web proper- content and community features to Paul Verna, an analyst at research interest throughout the year. They new video site. The organization ties; advertising revenues will be NFL.com. It already offers paid firm eMarketer.“Fans are young and also have to deal with blackout rules will launch a redesigned NHL.com split. The 50 professionals who downloads of video highlights on largely online.” that limit the games they can broad- in October. make up the NBA’s digital opera- Apple iTunes and Amazon.com. The opportunity for leagues to cast on the Web. Meanwhile, the NBA has creat- tions are slated to move to Atlanta Like the NHL, the NFL has generate revenues from the Web is The NHL, the NBA and the ed NBA Digital,in partnership with from Manhattan and Secaucus, brought its 32 team sites in-house. ripe. Online advertising revenues at NFL are still toying with their Web Turner Broadcasting System Inc. N.J., in October. sports sites are projected to reach strategies. The hockey league Turner will take over content pro- NBA.com’s traffic, now at 5 mil- COMMENTS? [email protected]

BY THE NUMBERS Dance theater’s leap Soaring Land Costs brand affiliat- new cultural complex for the rede- The Joyce produces ed with larger velopment of the World Trade the average price of unimproved land in the New York bigger shows ahead venues and Center. area has soared in recent years, according to a new study larger companies,” Since then, the once- of move to Ground says Linda Shelton, heralded project has from the Federal Reserve Bank of New York.The bank Zero; Ailey a test executive director gone through numer- sees the increase as a sign of the region’s economic vitality. of the Joyce, which ous hurdles and de- is celebrating its lays, leaving the BY MIRIAM KREININ SOUCCAR Joyce as the only group still involved. In the joyce theater starts a week- The Joyce’s fact, until recently, the long season of Alvin Ailey Ameri- Frank Gehry-designed can Dance Theater at the Brooklyn current performing arts center Academy of Music on June 3, was scheduled to be com- marking its biggest and most ambi- theater has pleted in 2011.Now,even k tious production yet. lni the date is up in the air. just 472 seats ko ul The event is part of the small a Last month, Avi Schick, co- p dance presenter’s efforts to produce chief executive of the Empire State shows in large performance halls Development Corp., announced a and build its reputation interna- new proposal. In an effort to save tionally in preparation for its move money and time, the planned per- to a 1,000-seat theater to be built 25th anniversary this year. forming arts center would be near Ground Zero.The Joyce’s cur- The Joyce was one of four arts moved from Ground Zero to the rent theater in Chelsea has just 472 organizations, including the space above a major subway station seats, while BAM’s theater seats Drawing Center and the Signature hub planned at Fulton Street and The New York area includes the Bronx, Brooklyn, Manhattan, Queens, and 10 counties in northern and central New Jer- 2,109. Theater,chosen by government of- Broadway. A spokeswoman for the sey. Transaction data for Staten Island were not available. *Through June.

“We’re trying to get the Joyce ficials in June 2004 to be part of a See JOYCE on Page 9 lindström bekka

May 19, 2008 | Crain’s New York Business | 3 CNYB 05-19-08 A 4 5/16/2008 7:32 PM Page 1

IN THE MARKETS HIGHLIGHTS REEL Weight Watchers unfit +2.8% diet for savvy investors The Bloomberg/ Crain’s New Karen Howland, an analyst at What concerns many analysts is that York Index Lack of new offerings, Lehman Brothers, notes that even the company has not slated any major rose 2.8% to fast-rising competition though surveys show that 90% of U.S. program launch until early next year— end the women recognize the which is particularly week at erode customer base brand, the company troublesome at a time 343. The ➡ isn’t in a position to when new weight-loss S&P 500 capitalize on that products are entering Index rose BY HILARY POTKEWITZ awareness and turn it the market at break- 2.7%, into revenue growth. neck speed. closing at ith summer looming, “The lack of new The brand has be- 1425. this is the moment programs offers little come tired, says when most people are reason to expect Robert Craig, an ana- most vulnerable to growth in [meeting] lyst at Stifel Nicolaus. crash diets and bikini- attendance in 2008,” Last year’s heavily-ad- RISERS bodyW regimes. For Weight Watchers In- she wrote in her most vertised launch of 5-DAY 1-MONTH 3-MONTH CLOSING ternational Inc., this is when opportuni- recent research note. weight-loss drug Alli, % CHANGE % CHANGE % CHANGE PRICE ty knocks loudest. She added that the and the rise of surgical Sotheby’s +15.7% +16.4% -15.3% $28.82 But the company not only has nothing weight-loss program solutions to obesity Warnaco +14.9% +18.3% +44.9% $50.77 special planned for the next several famously favored by make Weight Watch- months, the truth is that it hasn’t the Duchess of York is ers’ effort to add cus- Ann Taylor +14.0% +21.5% +15.2% $27.98 launched a fresh program in four years. in serious need of a tomers more difficult. Tiffany +13.6% +15.8% +25.1% $48.20 This is no time to pig out on Weight makeover, noting that Market cap $3.4 billion Last year, the com- Avis Budget +12.3% +22.4% +23.5% $15.00 Watchers stock, even after a 15% fall over women “who have not Total debt $1.5 billion pany posted revenues the past year. tried the program Percentage held by insiders 65% of $1.47 billion, up The Manhattan-based company en- compare the brand 19% from 2006. Prof- SINKERS joys the world’s most recognized name in with an overeaters its, though, slipped by 5-DAY 1-MONTH 3-MONTH CLOSING dieting, but Weight Watchers is shedding anonymous meeting 4%,to $2.48 per share. % CHANGE % CHANGE % CHANGE PRICE customers faster than many of its clients or a program ‘my mother did.’ ” Analysts forecast that earnings this year Ambac -12.1% -27.4% -62.3% $3.85 are shedding pounds. In the first quarter Weight Watchers gets more than 60% will rise to $2.88 per share. ImClone -6.9% -8.3% +6.8% $41.72 of the year, attendance at its weekly meet- of its revenues from the $10 fee it charges This month,Weight Watchers missed ings in the United States dropped 5%, to New York Times -6.1% -5.3% -1.2% $18.47 for each of its roughly 50,000 weekly first-quarter earnings forecasts. The 10.5 million people. In Britain and Ger- meetings worldwide. The remainder company says the slowing economy could CBS -3.9% +10.0% -7.6% $23.40 many, the shrinkage was even worse, 8% comes from Internet and retail sales of cause the sluggish growth to continue. Becton Dickinson -2.7% +0.9% -6.3% $84.65 and 7%, respectively.As a result, its Euro- weight-loss foods and products,as well as pean attendance fell to 6.4 million people. from licensing deals. COMMENTS? [email protected]

STOCKS TO WATCH by Erik Ipsen One minute Worst-is-over crowd insists Moody’s to NJ... 30 to NYC! rates second look as storm subsides AFTER BLOWING its ratings on oceans Superior of mortgage-related securities last Location year, Moody’s sacked its president two weeks ago. It followed up last Exceptional week with a new, improved code of conduct and even garnered a “buy” Amenities rating from Jefferies & Co., which Outstanding predicted that revenues would revive. Given that a significant slug of them Value came from rating the aforementioned toxic mortgage hybrids, we can only hope that business does not rebound. Blue Hill Plaza Last week, J.P. Morgan Chase became the latest financial giant to announce On the Bergen/Rockland border thousands of job cuts in New York. Meanwhile, a buyer has yet to be found for Harry Macklowe’s GM Building or even one of the package of seven buildings Ideally situated close to Northern New Jersey, Manhattan he overpaid for here last year. With such a backdrop, one would think – and your employee base – investors would be fleeing SL Green, the city’s largest landlord. Instead, its stock has jumped 14% in the past month and is up 7% so far this year. Blue Hill Plaza offers so much more: New York She has been behind bars and called • New First Class Dining Blue Hill Plaza a has-been. Her company has lost • Fitness Center ✪ money for five years. But Martha • On Site Child Care Bergen Stewart ain’t dead yet. The • Cutting Edge Fiber Optic Technology and Equipment County company’s stock is up 26% in the GW past month, on news of a halving in its New Jersey Bridge Office units from 1,000 sf to potential 150,000 sf first-quarter loss and the closing of its $50 million purchase of the lucrative For leasing information, Leasing and management by Emeril Lagasse business. Having that call Carol McGuire Blue Hill Plaza is a trendiest of attributes, a debt-free Glorious Sun/Robert Martin 914.592.4800 balance sheet, helps. But shares are www.mack-cali.com Company Property [email protected] half their price of a year ago. charts: lindström bekka

4 | Crain’s New York Business | May 19, 2008 Project26 5/14/08 4:30 PM Page 1

REINVENTING THE WORLD’S MOST FAMOUS OFFICE BUILDING

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W&H0547_locationQUAD_Crains.indd 1 5/12/08 11:29:39 AM CNYB 05-19-08 A 6 5/16/2008 6:42 PM Page 1

NEW YORK,NEW YORK edited by Valerie Block

If only he could laugh last he late Heath Ledger’s role as the Joker in the upcoming Batman movie is taking on a life of its getty images Town as a merchandising powerhouse. The Dark Knight opens July 18, and already legions of fans—as well as the morbidly curious—are scrambling for Joker memorabilia. Manufacturers are rushing to meet rising demand from retailers. “There seems to be almost a cult following for anything with Heath Ledger’s image on it,” says Sam Hafif, chief executive of Manhattan-based Concept One Accessories, who says he can barely keep up with orders. Concept One, which signed a contract with Warner Bros. Entertainment to produce hats, messenger bags and ski masks printed with Mr. Ledger’s creepy Joker face, has increased its production fourfold to satisfy clients. Retailers including Sears, Wal-Mart and Virgin Records have already ordered more than 300,000 items, and Mr. Hafif expects that figure to quadruple by year’s end.The result should be a multimillion-dollar windfall. The hot goods will hit stores in late June. generated the most cash—close to Giving candy $228 million. Cameras and other Premature to strangers photo-related items clicked in celebration? $109 million, cars and trucks times must be tough if New drove in $95 million, clothing and bruce ratner, regaling potential Yorkers are cutting back accessories rung up $85 million, buyers of the Barclays Center’s on bonbons. and cell phones and accessories $300,000 luxury suites last week, Sales have dialed up $84 million. kept his word by giving one away. dipped about Los Angeles edged out New Teddy Selinger of accounting firm 12% so far this York to take the top spot, with Margolin Winer & Evens was the year at Jacques 196,000 sellers earning $1.4 winner. Flanked by Brooklyn Torres’ three billion. Chicago came in third. Borough President Marty Markowitz chocolate and Jay-Z, who owns a piece of the shops. So the Nets, Mr. Ratner sang the praises

s entrepreneur e Manhattan Media of his Atlantic Yards project. g a took action im But Daniel Goldstein, who leads y looks north, south recently, tt Develop Don’t Destroy Brooklyn, ge dispatching his staff while most print publishers are claims that the project “is on the Long established to nearby corners to hand out licking their wounds, Manhattan precipice of failure.” coupons offering free hot Media is expanding its The group has lost its legal commitment chocolate or a piece of candy. footprint—again. Just days after challenges at every stage, but they The results: sweet. Store sales buying 01238, a magazine for have caused enough delays to raise rose 20% after each coupon blitz. Harvard alumni, from Atlantic questions about the Nets’ future in “I’m amazed by it,” says Mr. Media, the publisher of New York Brooklyn. Some naysayers who Torres, who is also placing items freebies Avenue, West Side Spirit are unaffiliated with the plaintiffs

Weiser LLP priced at under $5 to tempt and New believe that the clock will run out Certified Public Accountants impulse buyers. York Press on the arena and that the The problem is that the boost went to struggling team will be for sale to the doesn’t last. “It’s a short-term Miami to within six months. New York City New York solution,” he acknowledges. buy Latin “We are confident that the 135 West 50th Street Longer-term, Mr.Torres is Trade,a arena will be open in 2010,” a Nets New York, NY 10020 real estate community Tel 212.812.7000 eyeing recession-proof Dubai for trilingual spokesman says. Fax 212.375.6888 Weiser's Real Estate Services Group his next location and is negotiating title for the provides personalized service and technical with a large developer there. business Contributors: Elisabeth Butler Cordova, Long Island expertise to real estate developers, owners, community. Erik Engquist, Lisa Fickenscher, 3000 Marcus Avenue managers, and investors. Lake Success, NY 11042 “We see Matthew Flamm Tel 516.488.1200 Our services include: Going, going, Miami as the sixth borough,” says Fax 516.488.1238 • Tax planning and compliance virtually gone President Tom Allon. MOVIE NOT ENOUGH? Westchester • Accounting and auditing Latin Trade has a monthly 660 White Plains Road • Cost segregation studies new yorkers love dumping their circulation of 87,000 copies, and is ON LOCATION TOURS offers a Suite 430 • Valuations junk on eBay.The online distributed across Latin America “Sex and the City hot spots” Tarrytown, NY 10591 • Due diligence and litigation support auctioneer’s first survey ranking and parts of the United States. tour, a three- Tel 914.333.0555 metropolitan areas shows the Big Terms of the deal were not Fax 914.333.0556 • Low income housing tax credits hour bus ride • Management advisory services Apple coming in second in the disclosed. to locations New Jersey • Financial, economic, and market number of sellers and dollar The freebie will be part of a made famous 399 Thornall Street risk analyses amount in sales. Last year, new division, Miami Media. An by the fabu- Edison, NJ 08837 159,000 residents listed 12.6 Ivy League Media division built Tel 732.549.2800 We work together with our clients to lous foursome Fax 732.549.2898 develop customized and integrated million items and raked in $1.1 around 01238 will include half a and their HBO solutions to help them reach their goals. billion on eBay. dozen alumni-oriented titles, as show. The tour hits more than www.weiserLLP.com “There are a lot of New well as companion Web sites and 40 places, including Carrie’s For more information, contact Yorkers who want to liquidate events. apartment stoop. It’s $40 and their stuff,” says Jim Griffith, eBay’s “We feel we have the Michael Zivotovsky or Ron Katz at 212.812.7000. available in English or German. dean of education. bandwidth to build both these Jewelry, gems and watches things out,” Mr. Allon says.

6 | Crain’s New York Business | May 19, 2008 Project3 5/2/08 2:00 PM Page 1

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Service provided by AT&T Mobility. ©2008 AT&T Intellectual Property. All rights reserved. AT&T and the AT&T logo are trademarks of AT&T Intellectual Property. CNYB 05-19-08 A 8 5/16/2008 7:48 PM Page 1

tailers that are trying to come into Since then, many of the neighbor- the city,” says Richard Hodos, exec- hood’s landmarks have closed or Should retailers stay or go? utive vice president of real estate moved off Broadway, including Jer- firm CB Richard Ellis Inc. ry’s Restaurant, Kate’s Paperie and Continued from Page 1 landlords might further pressure to hang on as foreign fashion ten- National chains are also scouring thrift store Alice Underground. months ago after vacating its long- them to leave.Those who would talk ants,lured by the glitz of New York’s the avenue. Victoria’s Secret is seek- To stay on Broadway, retailers time home at 480 Broadway to were vague. retail scene and a favorable exchange ing a second location on Broadway to must strike a balance between ever- make room for Topshop. YRB is “I don’t think I’ll be here much rate, lead the land grab. In the past supplement its relatively small store increasing rents and the higher- willing to give up its current 15-year longer because things change,” says at 565 Broadway, at the corner of than-average sales their SoHo lease for $250 per square foot,which Meir Maslavi, owner of the two Prince Street, industry insiders say. shops attract. is a lofty price for such a large space, Miro Cafe locations on Broadway. Most tenants “We’re very busy running spread- the store’s broker says. He says he might close one of the Shifting stores sheets, and we didn’t used to have to “It’s out there, and people know stores soon,though he will not spec- declined to footwear retailer Aldo just do that,” Lansco’s Ms. Abrams says. that a deal can be done,” says Robin ify which one. signed a 15-year lease for 10,500 Although some tony stores on Abrams, a retail broker with The speak about square feet at 470 Broadway, where Fifth Avenue do not sell enough Lansco Corp.,who represents YRB. Some insist on staying the asking rent was $485 per square handbags or scarves to pay the astro- Among the numerous other when asked if Lounge SoHo their leases foot for the 3,500-square-foot nomical rents that their landlords storefronts on brokers’ lists as avail- would close or relocate, co-owner ground floor.Another shoe store,Via demand, retailers rarely sign up for able for leasing or subleasing: Eliot Castillo only says, “Not at the Spiga, has taken 2,600 square feet at money-losing spaces in other New Lounge SoHo, with 10,000 square moment.” 487 Broadway. The asking rent for York neighborhoods. “Until now, feet at 593 Broadway; the 7,000- Of course, not every business is that space was $550 a square foot. rents in SoHo were commensurate square-foot Ann Taylor Loft at 560 seeking a real estate windfall. Guess Inc. is opening a store at 514 with sales,” says Gene Spiegelman, Broadway; designer showcase Work “We are absolutely committed to year, nearly a dozen overseas shops Broadway, in space that sneaker em- a Cushman & Wakefield Inc. retail in Progress,with 3,500 square feet at our space and our lease,”says Justine have leased space in the neighbor- porium Active Wearhouse vacated. broker. That balance is starting to 481 Broadway; and the 3,000- Kawas, a vice president at Universal hood, including Spanish clothier The churn is just the latest stage tip. “I never considered it going for square-foot Kitchen Commune News, which opened its 484 Broad- MNG by Mango, British cosmetics in SoHo’s rapid overhaul.What had $500 a square foot down here.” restaurant, at 448 Broadway. way location in 1998.The magazine chain Lush and Japanese general been a slow shift accelerated when Most tenants declined to speak depot has six years left on its lease. store Muji. Bloomingdale’s took over for Canal COMMENTS? about their leases, fearing that their Even so,many are finding it hard “There are a host of foreign re- Jeans at 504 Broadway in 2004. [email protected]

ratings among key audiences are local ads—fell 10% nationwide to down by double digits for every net- $15.6 billion, according to TNS. Ad downturn pummels local TV work except the American Idol chan- Spot TV advertising in the New nel, Fox, according to Nielsen Me- York market slipped 5% during the Continued from Page 1 back, the market might still be flat dia Research. same period, to $1.5 billion. ever,” says Diana Anderson, vice TOP LOCAL TV AD or slightly up,”says Rich Golden,an That decline has meant smaller New York may be catching up president, spot broadcast, at media executive vice president at HN Me- audiences for stations’ all-important with the rest of the country partly buying agency Carat. CATEGORIES dia & Marketing Inc. “But now, local newscasts and has kept pressure because it’s such an expensive place The decision by Geico to pull its PERCENT [those cuts] disproportionately im- on ad rates even during the May to advertise, and marketers are ads, with the exception of some SPENDING CHANGE VS. ’07 pact the market as a whole.” sweeps,when pricing tends to go up. watching their dollars. spots on sports and cable TV pro- Some TV executives are cau- “It takes a big commitment for an Telecommunications No May bump grams, has been particularly painful $19.2 million -23% tiously optimistic that the Summer advertiser to make an impact in New for local stations. Olympics—which tightens inven- “in may,you’ve got finales for a lot of York,” says Kathy Doyle, director of Last year in the second quarter, Restaurants tory for all stations—will improve shows, so usually you get rates at the local broadcast for Universal Mc- the company’s ads featuring a talk- $18.7 million +3% the situation in the second half of highest levels,” says Jeff Greenberg, Cann.“You might get more bang for ing gecko and touchy-feely cave- Asian SUVs the year. director of New York broadcasting at your buck in a smaller market.” men poured $11.3 million into the $18.1 million -6% “We’re well positioned,” says JL Media Inc.But stations have been Advertisers are also looking to New York market, according to First quarter 2008. Tom O’Brien, general manager at more aggressive about getting deals target audiences more narrowly—a TNS Media Intelligence. Source: TNS Media Intelligence WNBC, which will air the done this year than in the past. trend that is helping to steer money Olympics and the New York Giants’ Local television’s troubles paral- away from local television and to- Spending down preseason games in August. “But lel what’s been happening to the ward online media. spending by telecommunications keting money to online media dur- I’m not making any predictions.” newspaper and radio industries, “Local TV is built on delivering a companies, another top category, ing the writers strike and hasn’t Those who are making predic- which have seen a continuous loss of mass audience,”says Colby Atwood, dropped 23%, to $19 million, in the come back. Domestic car dealers tions foresee a rough year.“I don’t see ad dollars to the Internet. That rev- president of media consulting firm first quarter, the most recent for have also pulled back. it getting better,” says Laura Kollap- enue drop has been exacerbated by Borrell Associates Inc. “Overpaying which results are available. Spend- Consolidation among advertisers pallil, associate director of local the weakening economy. for a larger, more dispersed audience ing by Asian car manufacturers has left stations more vulnerable to broadcast at media-buying agency RJ In 2007, facing tough compar- doesn’t make sense anymore.” plunged 33%, to $15 million. spending cuts than they used to be. Palmer. She points to how viewing isons with an election year and Media buyers say that General “Ten years ago, when you had levels never recovered from the strike. falling home and car sales, spot TV COMMENTS? Motors shifted a chunk of its mar- three or four major advertisers pull So far this season, prime-time advertising—the industry term for [email protected]

ministration, which will help push change a key piece of the deal, the the rezoning.The mayor’s office had firm wanted to defer payments un- MTA restarts Hudson Yards deal also promised Tishman Speyer that til the western portion was re- it would cover any cost overruns as- zoned—a process that could take up Continued from Page 1 fire sale,”says Leonard Boxer,chair- gap if the agency can’t reach a pact sociated with extending the No. 7 to three years. Some believe the de- The developers see a once-in-a-life- man of the real estate practice at with any of the firms, according to line to the site.The extension is con- mand was a way out of the project time opportunity to create an entire- Stroock & Stroock & Lavan. “This an MTA spokesman. sidered critical to the project’s via- for Tishman Speyer, which couldn’t ly new commercial district and resi- is a unique site.” Mr. Dellaverson says concerns bility. find a major tenant. Morgan Stan- dential neighborhood. There are The three remaining bidders are that a lack of financing for big real Still, there’s a strong possibility ley had signed on as a tenant and fi- also advantages to starting the proj- Extell Development Co., The Re- estate deals represents an obstacle that a deal can’t be reached amid all nancial partner but later backed off. ect before Mayor Michael lated Companies and a joint venture for a Hudson Yards developer are of the financial and economic uncer- In its $892 million bid, runner- Bloomberg leaves office, as his pro- between The Durst Organization overblown. Financing in the early tainty. Some say postponing the up Durst-Vornado had said that development administration has and Vornado Realty Trust. stages of a project largely choice of a developer wouldn’t Condé Nast would be its primary been a big backer of this project.His comes from equity funds, exactly be bad. The MTA tenant. A spokesman for the team support could be valuable, especial- Pushing hard and plenty of that money is 3 could get the rezoning in the says that if it is selected now, he ex- ly as the western portion of the site gary dellaverson, the MTA’s available, he says. NUMBER of meantime, which would in- pects that the publisher would move must still be rezoned. chief financial officer, declines to Building on the Hudson developers the crease the parcel’s value. to the yards. MTA says are Additionally, because Tishman discuss specifics or give a timetable Rail Yards will take decades still interested “It seems unlikely that a By March, when Tishman Spey- Speyer’s departure has left the MTA for negotiations. and span several economic in Hudson Yards deal gets done in this envi- er was chosen,Extell had reached an without an immediate way to close “We are pushing hard and are on and financing cycles, and ronment,” say Kathy Wylde, impasse with the MTA over tax is- a $700 million hole in its capital the fast track,”Mr.Dellaverson says. some suggest that trying to time the president and chief executive of the sues. Related Companies wanted budget, the agency might be more He adds, however, that if it can’t sale perfectly is futile. Partnership for New York City. only to lease the western rail yards flexible on price. reach a suitable deal the agency will Developers realize that they After a six-month selection after its tenant going into the bid- That’s not to suggest that it will walk away,just as it did it with Tish- might not have a strong advocate in process, the MTA and Tishman ding,News Corp.,failed to commit. give the parcel away. man Speyer. the next mayor, these observers say, Speyer negotiated details for almost Neither developer would comment. “The MTA may take a little less There will be time to devise an and at least now firms can count on seven weeks before their agreement money, but there isn’t going to be a alternative plan to fill the budget support from the Bloomberg ad- fell apart. In a request that would COMMENTS? [email protected]

8 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 9 5/16/2008 2:11 PM Page 1

el between New York and Canada ing a pointer-wielding raccoon in the has jumped nearly 30% over the past Wall Street Journal, The New York New Toronto carrier soars five years, to 2.4 million passengers Times and others. Mr. Deluce de- in 2007, according to data from the clines to give specifics but says it is the Port Authority of New York and largest advertising expenditure ning 80% ahead of projections. The Porter offers fares as low as $200 New Jersey. Porter has made in a single market. Porter Airlines 80% Canadian carrier began flying seven round-trip. It plans to increase its Porter is now the fifth airline of- ahead of booking flights each weekday from Newark Newark schedule to 12 daily flights fering nonstop service for the 70- Money in the bank Liberty International to Toronto during the week by the end of 2009. minute flight between New York the airline raised $126 million projections, looks City Airport in late March. “Our passengers have been ask- area airports and Toronto. It has in private equity in 2006 from to add flights Porter is targeting business trav- ing us to add New York since well been expanding aggressively,even as Canadian and American investors. elers on the route linking the conti- before we started operating our first other airlines cut back in the face of Though it has been burning nent’s two financial capitals. Its flights,”says Porter Chief Executive soaring fuel costs and a slumping through that initial funding, the BY HILARY POTKEWITZ strategy appears to have paid off: Robert Deluce. economy.The Toronto-based carri- closely held airline has been prof- Nearly 85% of its Newark passen- er operates six Bombardier jets that itable on an operating basis since less than two months after gers are traveling for business, ac- Growing traffic seat 70. It plans to double its fleet by June, Mr. Deluce reports. launching direct flights between cording to the two-year-old airline. roughly 1 million passengers the end of the year. New York and Toronto, Porter Air- With a single-class cabin,similar shuttled between New York City Last month, the company began COMMENTS? lines reports that bookings are run- to Queens-based JetBlue Airways, and Toronto last year. Overall, trav- running quirky full-page ads featur- [email protected]

245 East 19th Street / 90 State Street / 313 East 78th Street / 247–259 West 54th Street / 1480–1482 Joyce’s Second Avenue / 33 Beekman Street / 324 & 330 Riverdale Avenue / 96–01 & 97–08 Jamaica Avenue / 343–359 Central Park Avenue / 1288–1300 Springfield Avenue / 410 East 75th Street & leap 480 East 74th Street / 295–297 Madison Avenue / 403 East 77th Street / 147 Avenue A / 63–67 Continued from Page 3 West 35th Street / East Harlem Portfolio / 67 Livingston Street / 922–926, 930–932, 939–940 & New York City Department of Cul- tural Affairs says the city is consid- 944–950 Bronx Park South / 730 Riverside Drive / 140 East 17th Street / 150 West 87th Street / ering the proposal and will make a 55 & 65 West 95th Streets / 310–328 West 38th Street / 826–840 Seventh Avenue, aka 200 West decision later this month. Despite the never-ending 54th Street / 6–10 Clark Street / 20 West 56th Street / 38–46 West 33rd Street / 229–239 West changes and delays, Joyce officials 28th Street / 650 Sixth Avenue / 155 East 38th Street / 3585 Greystone Avenue & 3526–3528 remain optimistic. They have been working to grow their institution so Riverdale Avenue / 259–261 Broome Street, aka 85–87 Orchard Street / 110 East 16th Street / they will be ready to take on running 20 West 56th Street a much larger venue. The organiza- 569 Lexington Avenue / 456–458 West 31st Street / / 305 East 85th Street tion has added 12 board members / 1140 Tiffany Street / 315–321 Sixth Avenue / 211 East 51st Street / 989–991 Sixth Avenue / 110 since it was chosen for the project downtown, for a total of 25. This Fulton Street-Retail Units / 288 Flatbush Avenue / 322–334 East 63rd Street & 330 East 63rd Street year, its budget grew to $8 million / 283 West 11th Street / 240 Central Avenue / 4321 Medical Park Drive / 23–31 Garfield Place / from $6 million. Ms. Shelton would not disclose how much the Ailey season at BAM will cost to produce, except to say that even if the Joyce sold 75% of the house, the sales would not cover costs. Tickets are priced between We know your property. $20 and $70. The Joyce is in the process of raising around $1 million to make After all, we did the deal next door. up the difference. Next year One of the Top 4 Property-Sales Firms, CoStar 2007 if the engagement is successful, Ms.Shelton says,the Joyce will pro- duce a series for BAM next year as well. But it is too early to call the event a success; there are still plen- ty of tickets available at this late www.easternconsolidated.com date. “It’s testing the waters for a lot of 212.499.7700 different ideas, like how well Ailey will do in Brooklyn and how well the Joyce will do,” Ms. Shelton says. In addition to the BAM per- formances, the Joyce gave 25 inter- 50 Memorial Plaza / 30–79 Steinway Street / 11 Park Avenue / 91–95 Chambers Street / 5 East national choreographers $25,000 each to create new work. Those 19th Street / 401 Columbus Avenue / 251 West 89th Street / 132–134 West 109th Street / 313 & pieces will be performed around the 319 East 95th Street / 45–47 West 38th Street / 206 St. Nicholas Avenue / 135 West 3rd Street / world this year and next in another effort to expand the Joyce name. 7124 Bay Parkway / 693–699 Eighth Avenue / 240 East 27th Street / 19–25 West 20th Street / 201 The Joyce is also teaming up with West 87th Street, aka 560–562 Amsterdam Avenue / 357, 359–361 West Street & 156–162 Leroy the City Parks Foundation to pres- ent five days of free outdoor dance Street / 1410–1416 Manhattan Avenue / 345 West 14th Street / 507–509 West 21st Street / 511–519 performances throughout the city’s five boroughs in July.For the “Dance West 21st Street / 537–545 West 27th Street / 604 West 30th Street / 150 Spring Street / 185–217 Out” program, the Joyce is bringing Amboy Street / 2701 Valentine Avenue / 124 West 24th Street / 2661 Marion Avenue / 339 West in three dancers from overseas. “By bringing live dance events to 38th Street / 313, 315 & 317 East 46th Street / 397–401 East 8th Street / 431 West 37th Street & New York City’s parks,the Joyce will 430 West 38th Street / 433–439 West 37th Street / 641 Avenue of the Americas / 331–337 West reach diverse audiences and help de- velop a new generation of dance en- 43rd Street / 296 & 300 Mountain Road / 516–518 West 27th Street / 364–370 West 18th Street thusiasts,” says Adrian Benepe, parks and recreation commissioner. aka 112–126 Ninth Avenue / 313–321 West 37th Street / 60 East 66th Street / 325 West 33rd Street / 1343–1347 Second Avenue & 242 East 71st Street / 28 East 10th Street / 167–177 Lafayette Street / COMMENTS? [email protected] 302MountainRoad/300–302East23rdStreet,aka392–398SecondAvenue/23East22ndStreet

May 19, 2008 | Crain’s New York Business | 9 CNYB 05-19-08 A 10 5/16/2008 2:55 PM Page 1

UFPJ plans banner drops during the Fourth of July and the Sept. 21 Anti-war groups try to influence voters African American Day parades and intends to bus in hundreds of Continued from Page 2 2008 election cycle, it doesn’t have tional conversation. Only one in five over the summer. Instead of candi- demonstrators with peace placards voters and get talk of Iraq troop much time to waste,” wrote UFPJ respondents to the Quinnipiac poll date endorsement, its efforts include when the presidential debate takes withdrawal on the front burner be- steering committee member Carl says the war was the deciding factor public outreach on issues that haven’t place in the city on Oct. 16. tween now and November. They’re Davidson in a memo in March. in who to vote for this fall,placing the been picked up by media outlets, Of course, some anti-war groups holding town hall meet- In many ways, local peace issue far behind the economy among such as the Winter Soldier hearings are skeptical of all presidential ings, distributing voter groups no longer have to be as voters’concerns.UFPJ’s last big event in Washington, D.C. The hearings hopefuls and their willingness to guides and busing demon- overt in their support of a in New York City,“River to River” in feature individual testimony from end the war soon enough. strators to debate venues. nominee.Sen.John McCain is March, was to have demonstrators Iraq and Afghanistan veterans about “We don’t want to play a sucker’s But many, because of the only presidential candi- join hands across the city, but fizzled topics such as the failure of the troop game of endorsing a candidate their 501(c)(3) federal date beating the war drum when organizers couldn’t find surge. Members of Iraq Veterans wholesale,” says Matthew Smucker, tax-exempt status, must and,unlike during the last na- enough hands to make it to the river. Against the War are sending out national field organizer for the stop short of overtly en- tional election, the anti-war video streams of the testimony in e- War Resisters League. “Our role is dorsing a candidate. stance has become main- Educating voters mail blasts and making sure copies to build a base that they want to “I got a circular from stream. Only one in three to change that,groups like Peace are sent to candidates’ headquarters. court but can’t count on for full blind our national office just to- Action are attempting to educate Peace groups will also continue allegiance.” day reminding us to be careful,”says voters with nonpartisan guides on to employ less-subtle methods of Ben Chitty, a member of the steer- Sen. McCain the candidates.They are also focus- drawing attention to their cause. COMMENTS? [email protected] ing committee for the local chapter ing more on the war stances of local of Vietnam Veterans Against the is the only representatives ahead of Congres- War, which originated here. sional elections this summer. candidate Peace Action’s national office, for FREE TRIALS OF ONLINE NEWSLETTERS Proliferating peace groups example, which can be more politi- since the vietnam war and, beating the cally active than its local chapter be- CRAIN’S OFFERS READERS FREE two-week trial subscriptions to its daily online more recently, Sept. 11, peace cause it is not a 501(c)(3) organiza- newsletters, Crain’s Health Pulse and The Crain’s Insider. groups have proliferated in New war drum tion, is endorsing Mr. Harrison to Pulse deals with the business of health care. An annual York City. United for Peace & Jus- replace Republican Rep. Vito Fos- subscription is $319. The Crain’s Insider covers tice counts 175 groups among its sella, who represents Staten Island political gossip and government and political members, including the War Re- and part of Brooklyn and whose pro- issues. An annual subscription is $269. sisters League and the Bring Them war voting record irks local activists. For a free trial, go to www.crainsnewyork.com, Home Now campaign. But so far Americans agrees that going to war Peace Action of Staten Island, and click on “More” below the Health Pulse or the during this election year, the groups with Iraq was the right thing to do, meanwhile, has prepared question- Insider headline under “Newsletters” on the right side of the have been much less visible on the according to a Quinnipiac Universi- naires for congressional candidates page. Under “Health Pulse Tools” or “Insider Tools” on the left national stage, prompting some lo- ty poll released last Thursday. throughout New York state. It plans side of the page, click on “Request a Free Trial.” After regis- cal activists to fret. Anti-war sentiment is such a giv- to mail out thousands of voting tering, you will receive an e-mail with instructions on accessing the trial issues. “If our peace movement wants to en these days that peace groups fear guides and distribute them outside make some far-reaching gains in the the topic will disappear from the na- polling stations during local elections

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VIEWPOINT West Side common sense editor in chief Rance Crain publisher Jill R. Kaplan

t seems that all the bold plans for the West an eastern Penn Station to work in conjunction with Farley. EDITORIAL Side of Manhattan are falling apart.Tishman The Port Authority can tap a $2 billion fund it has set aside editor Greg David managing editor Robert Hordt Speyer backed out of a deal to develop Hudson to buy the Garden site to get the project under way.The Port deputy managing editors Valerie Block, Yards.The ambitious Moynihan Station project is would be reimbursed as developers Vornado and Related Erik Ipsen contributing editor–reports barely breathing. And Sen. Charles Schumer and build the kind of office space that Mr. Schumer and the Elizabeth MacBride Mayor Michael Bloomberg are squabbling about mayor want on the West Side. columnist Alair Townsend senior reporters Aaron Elstein, Erik Engquist, which project should have priority, and whether Moynihan Station and Hudson Yards. There is no real Lisa Fickenscher, Matthew Flamm, the Port Authority of New York and New Jersey should take conflict between redeveloping the Penn Station area and Samantha Marshall, Miriam Kreinin Souccar reporters Theresa Agovino, Barbara Benson, Iover the Penn Station project. With the economy teetering, building a new neighborhood at Hudson Yards. Developers, Elisabeth Butler Cordova, Amanda Fung, this is no time for confusion.These projects must move corporations looking for space, and people looking for a new Daniel Massey, Hilary Potkewitz, Gale Scott, Matthew Sollars forward. Here are some suggestions: place to live will decide this issue. Both can be done, if on restaurant critic Bob Lape The senator and the mayor. The most inexplicable part of different timelines. art director Steven Krupinski deputy art directors Carolyn McClain, last week’s dustup between these two men is that Mr. The Port What is not needed Daniel Mednick Schumer and Mr. Bloomberg really like each other. It’s time is a new agency staff photographer Buck Ennis copy desk chief Wendy Zuckerman a phone call settled this problem. After all, both men agree Authority must charged with copy editors Michele Arboit, on the most important issue: If the New York economy is to overseeing all this Thaddeus Rutkowski take over research editor Denise Southwood grow over the next several decades, it is crucial that the activity.Those who associate research editor midtown business district be expanded to the West Side. Moynihan Station suggest that are Adrianne Pasquarelli www.crainsnewyork.com Not everyone accepts this premise, and by appearing to be at primarily the same online reporter Kira Bindrim

odds, they give comfort to those who want to do nothing people who want to EDITORIAL AND ADVERTISING OFFICES during a downturn or want to emphasize residential throw up their hands in 711 Third Ave., New York, NY 10017-5806 editorial: 212.210.0277 Fax 212.210.0799 construction at the expense of office space. the face of economic advertising: 212.210.0259 The Port Authority. The Port Authority must take over weakness.The idea would also mean years of delay to Cable craincom nyk Fax 212.210.0499 Moynihan Station because the Empire State Development organize such an entity. What would work is leadership, Entire contents ©copyright 2008 Crain Communications Inc. All rights reserved. Corp. has been unable to move the project forward for years. which the mayor and the governor can achieve jointly by ®CityBusiness is a registered trademark of MCP Moreover, the ESDC is leaderless.The Port is the only appointing someone as their representative on these projects Inc., used under license agreement. entity with the money to get it going. with all the clout they can confer. TO SUBSCRIBE: Call 888.909.9111; fax 313.446.6777. The idea behind the project goes like this.The old Farley No one knows how deeply the credit crisis, downturn and $3.00 a copy, $59.79 one year, $109.79 two years. Post Office is transformed into a modern train station, and troubles on Wall Street will affect the city. Giving up on big www.crainsnewyork.com Madison Square Garden is relocated into its western half. plans for the West Side is not the way to get through ADVERTISING AND MARKETING advertising director Jeff Adler This allows the air rights at the current Garden to be whatever awaits New York. senior account managers transferred to developers for the creation of millions of Robert N. Grossman, William E. Squitieri account executives square feet of new office space and for the establishment of COMMENTS? [email protected] Andrew Carlin, Robert Christiaanse, Irene Irvill, Courtney McCombs western account manager Ellen Mazen (Los Angeles) 323.370.2477 sales manager, classified LETTERS TO THE EDITOR print & online John Gallagher newsletter product manager Catherine Evans Gittens sales coordinator, print & online Lulé Haznedari sales coordinator Anita Perrino Give B’way theatergoers a break credit Pat Grondziak 313.446.6082 marketing director Amy Crossman CHEAPER TICKETS Atlantic Yards project, the of New York to have an open, marketing manager Jill H. Bottomley marketing coordinator Jenny Mashberg WOULD DRAW CROWDS developer entered into a honest dialogue about whether circulation manager Andrea Richardson community benefits CBAs should be a part of the land- assistant circulation manager many broadwayshows are agreement with groups use landscape. Rosalie Ford running at far less than capacity located in central Brooklyn, Officially, the city’s lawyers general manager, interactive (Crain’s, May 12) because it is miles from the immediate deny that CBAs exist, while the Marc Minardo simply too expensive to go to the project area, in order to city’s economic gurus embrace the NEW YORK PRODUCTION theater. How many families can purchase their support during idea. Lawyerly fears that the production and pre-press director afford to see shows at an average the public approval process. required legal “nexus” cannot be Michael Corsi cost of $110 per ticket? michael d. utevsky achieved are likely unfounded. advertising production manager By the time you tack on all After all, hiring local residents, Marilyn DeMilta the extra fees, you are looking at AGREEMENTS SHOULD using green design elements and PUBLISHED BY CRAIN COMMUNICATIONS INC. $250 for a night or afternoon BE EMBRACED supporting local arts are as integral chairman Keith E. Crain out—and then there’s lunch or to a community as adding an extra president Rance Crain

dinner, transportation, or gas bloomberg news are community benefits second of green time to a traffic secretary Merrilee Crain and parking. SHOWS like November are playing to half-empty houses. agreements really “the tarted- light at an already impassable treasurer Mary Kay Crain Wouldn’t these producers be up name for zoning for sale,” intersection. executive vp, operations William Morrow senior vp, group publisher Gloria Scoby better off reducing the ticket as Alair Townsend contends, Shouldn’t we embrace the group vp, technology, circulation, prices by 30% as an inducement May 5 column that it is terrible or are they an innovative way to neighborhood coalitions around manufacturing Robert C. Adams for those hesitant to spend such a public policy for the Bloomberg share more of the development pie Columbia University, Yankee vice president/production & large sum, especially during these administration to encourage and improve the quality of life in Stadium and Gateway at the manufacturing David Kamis difficult economic times? private negotiations between our neighborhoods? As attorneys Bronx Terminal Market, for which chief information officer Paul Dalpiaz corporate circulation director dorothy dibiase developers and susceptible private who have negotiated two high- we were able to negotiate a CBA Patrick Sheposh interest groups for benefits that do profile CBAs in New York, we that obtained benefits and little or nothing to mitigate a would note that such agreements amenities tailored to their founder G.D. Crain Jr. (1885-1973) QUESTIONABLE BENEFITS chairman Mrs. G.D. Crain Jr. (1911-1996) FOR COMMUNITY project’s negative impacts on the are proliferating across the country, neighborhood’s needs? surrounding community. from Cambridge to Los Angeles. jesse masyr i agree with Alair Townsend’s Even worse, in the case of the The time has come for the city karen binder

12 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 13 5/16/2008 11:19 AM Page 1

turbulence. For some, the biggest impact comes from the declining value of their portfolios and residen- tial real estate. If they’re lucky, the losses thus far are paper losses or not so large as to threaten their lifestyle. For a much bigger group, rising en- ergy,rent and food costs pinch every day. For some, paying the bills is a day-to-day struggle. Yet most of these people are pay- ing some form of taxes that support the teachers who do not teach and the largesse that City Council members sprinkle around their communities to cronies and rela- tives. There’s far more waste than this, but these two areas alone ac- count for several hundred million dollars a year. Any way you slice it, that’s a lot of money. Why do officials tolerate this misuse of the public’s hard-earned money? Of course, larcenous urges lurk deep in many hearts. But be- yond that, the simple truth is that john h. howard public officials rarely hear from or get rewarded by those who want less spending. Instead,the voices they hear con- The dirty truth stantly urge them to spend more on virtually everything. This is an un- equal contest, and it enables politi- www.amper-pc.com on political grease cians to disconnect use of the mon- ey from its sources—the people who pay the taxes, including many of hey should have some respect for how hard peo- modest means. ple work to send them money. People have to send Another factor is that the city’s them too much as it is.” budget is huge, more than $60 bil- My friend was in high dudgeon about how lion. Just as we personally grow less cost-conscious as our incomes rise, “they”—public officials—waste money. the scale of the budget makes the TTwo recent revelations in particular infuriated her.One is the flak involved in trimming some ar- fact that some 600 city teachers are getting full pay and eas seem not worth the effort. It’s easier to think of the money sup- porting idle teachers and neighbor- benefits for doing noth- age payments. One hood organizations as “grease.”The ing, because no princi- family lost everything it grease smoothes the budget adop- pal wants them in the had to someone who tion process for the mayor. The classroom. bid only $160 in an auc- grease keeps the teachers union The second is the tion run by the storage happy.The grease helps incumbents invites you to huge sum that City company. get re-elected. Council members get to That auction was in “The public interest”is a big and THE 43RD ANNUAL dole out to groups and Illinois, but it could grand concept with a tiny mega- organizations as politi- have been here. Fore- phone. It needs good-government cal favors. closures are rising groups and the press to shine a encoreawards She juxtaposed across all five boroughs, spotlight on outrageous spending those stories against ALAIR with some neighbor- and to show respect for how hard one about people who, TOWNSEND hoods in Brooklyn, people work for the money they pay MONDAY, JUNE 2, 2008 having lost their homes Queens and the Bronx in taxes. due to foreclosures, put hit especially hard. HUDSON THEATRE their belongings in storage and then Virtually everyone in New York COMMENTS? 145 West 44th Street could not afford to meet their stor- is feeling the effects of economic [email protected] New York, NY 5:00 p.m. – 6:00 p.m. Cocktail Reception & Networking 5:00 p.m. – 8:00 p.m. Silent Auction CRAIN’S ONLINE POLL 6:00 p.m. – 8:00 p.m. Awards Presentation WHEN IT COMES TO WEST SIDE DEVELOPMENT, WHO KNOWS For tickets, call 212.279.5910, ext. 1121. For more information and a list of this year’s honorees, BEST, SEN. SCHUMER OR MAYOR BLOOMBERG? visit www.artsandbusiness-ny.org/sc/encore. Number of respondents: 504 Mayor Bloomberg. 2008 UNDERWRITERS Hudson Yards gets Sen. Schumer. 32%. priority, and the Port Emphasize Authority should have Penn Station, no role at Penn Station and put the .47% Neither. The economy 2008 SPONSORS Port Authority is so weak that both in charge 21%. projects should be delayed, given tight city and state budgets 2008 MEDIA SPONSOR bloomberg news For this week’s questions: Go to www.crainsnewyork.com/poll to have your say.

May 19, 2008 | Crain’s New York Business | 13 CNYB 05-19-08 A 14 5/16/2008 1:26 PM Page 1

GUV-O-METER THE INSIDER ALBANY’S POWER BROKERS have been saying from the day Diane Savino, D-Staten Island. “He’s going to have to that Gov. David Paterson took office how much start saying no. He’s going to have to make hard they like him. The next month will reveal if they HOT decisions which may make people unhappy, and in by Erik Engquist and Matthew Sollars respect him, too. an election year, people don’t like to be unhappy.” Since yielding to spendthrift legislators in passing Mr. Paterson knows that as well as anyone, a lavish state budget last month, the governor has having been a legislator himself for two decades. So been pounding home a message of fiscal austerity. with just over a month left in the legislative session, Gundersen gets “This is not the time to sweeten the pot, because he will not push the envelope, Albany observers say. we’re about to lose the whole pot,” the governor “I think he’s likely to stake out some positions, a thumbs-down warned at a press conference last week. but will not expect any action,” says Barbara In light of his dire statements about the economy, Bartoletti, legislative director for the League of group of high-powered people have been imploring him to do something, Women Voters of New York State. business leaders is looking the governor said, and his first target is generous The Legislature won’t pick up the mantle of for the state’s next pension enhancements for city and state unions. leadership, the Albany veteran adds. “They will do A But taking a hard line on spending will not play only what they think they have to do to get economic development chief, but well with lawmakers facing election challenges in the themselves re-elected,” she explains. That could one thing is clear. Unions will be fall, and they may override his threatened vetoes. entail trampling Mr. Paterson as they rush to the very unhappy if the choice is “David is in a very difficult position,” says state Sen. NOT campaign stump. Daniel Gundersen (left), who ap images currently heads the upstate half of the bifurcated Empire State Development Corp. candidate Dennis Mehiel are rumored the Senate. smoothing tensions because he to be possible choices. Across the county, the GOP hopes for backing from Mr.Towns “Labor considers Gundersen a slap in the face,” one union establishment will support Yonkers when he runs for David Yassky’s City leader says. “He’s seen as a guy who opposes any labor City Councilman John Murtagh Council seat in 2009. standards for economic development projects. He’s Republicans make rather than fellow Republican consistently been rabidly anti-labor from the get-go.” Westchester push Councilman Liam McLaughlin to run against Sen. Andrea Stewart-Cousins, Tough talk Mr. Gundersen was brought in suggestions that would have saved republicans will make a run at D-Yonkers. Ms. Stewart-Cousins on buildings bill from Pennsylvania by Eliot Spitzer, the state money. state Sen. Suzi Oppenheimer’s ousted longtime state Sen. Nicholas who split the ESDC into upstate A spokesman for Mr. Westchester seat this fall, a GOP Spano in 2006. opposition to Mayor Michael and downstate components. Gov. Gundersen says, “Dan’s devoted his insider says.The party will help Bloomberg’s bill dropping licensing David Paterson plans to undo that entire career to being the voice of Larchmont Mayor Elizabeth Feld requirements for the buildings division, which he considers business, and as such he establishes raise $2 million or more for a Towns reaches out commissioner has been unyielding, cumbersome and inefficient, and jobs of all kinds, union and non- challenge. to community and the legislation is picking up name one person to run the whole union alike.” Ms. Oppenheimer, an 11-term little support in the City Council. agency. Insiders say the governor is Democrat typically re-elected by a rep.edolphus towns met last Developers, architects and Labor officials say Mr. likely to bring in his own person, wide margin, was targeted by the week with Isaac Abraham,a engineers have said from the outset Gundersen opposes its proposed rather than elevate Mr. Gundersen GOP in 2006, but a campaign did hardware store owner and tenant that allowing a layman wage standards for state-subsidized or his downstate counterpart, Avi not materialize. Even if Ms. Feld advocate in the Williamsburg commissioner would compromise economic development projects, Schick, also a Spitzer appointee. loses, the effort could force Hasidic community. safety. and a union operative says Mr. New School Dean Fred Hochberg Democrats to expend resources, Mr.Towns wants to smooth They have added another Gundersen nixed other union and 2002 lieutenant governor weakening their chances to capture over differences with community argument: The bill conflicts with members who feel that he does not state law, which requires people pay enough attention to their performing engineering or issues. Mr. Abraham is interested in architectural work to be licensed.

MAYOR MICHAEL BLOOMBERG’S admission last week that he, too, had a slush fund for City Council members to use for pet 2009THE RACE TO SUCCEED projects takes some heat off City Council Speaker Christine Quinn (left). Insiders suspect the move was no accident. “Prince Sports relies on the port of Got a grip on your supply chain? The mayor’s good relationship with Ms. MIKE Quinn has made it easier for him to deal New York and New Jersey to get Our region’s businesses rely on the port for everything from high tech racquets with the council, so it behooves him to see our game-changing performance to hammers and nails. And it does it Ms. Quinn remain speaker and a viable contender for mayor in 2009, a technology to our customers. Just with your bottom line in mind: Democratic insider says. Earlier this year, when Ms. Quinn was criticized for as we provide players with the tools • The cost of doing business at the port has paying $12,000 in public funds to a freelance speechwriter, the mayor—to decreased in the last decade avoid embarrassing the speaker—stayed mum when asked if he outsources his they need, the port provides us with the speechwriting. supply chain efficiency that we need. Thanks to • Port operations have become more efficient, The council funding scandal could have implications for City Comptroller with direct environmental benefits the port, our O3 racquets and other high performance William Thompson Jr.’s (right) mayoral campaign as well. Another candidate’s • The port of New York and New Jersey can technology is distributed on three continents and aide says Mr. Thompson could be portrayed as “asleep at the switch” when the help you reach the largest and wealthiest council budgeted funds for fake groups, had $145,000 allegedly embezzled by to more than 100 countries. The port of New York consumer market in the world council aides and allocated millions to questionable organizations. and New Jersey provides the infrastructure that You can depend on the port to Democratic consultant Hank Sheinkopf, a fan of Mr. Thompson, doesn’t has made Prince a court-side legend.” make your business a winner: think the tack would work because the game, set and match. comptroller has no statutory responsibility to oversee council member items. Mr. George Napier • CEO and Chairman of the Board • Prince Sports Inc. Sheinkopf adds that Mr. Thompson can protect himself by getting in front of the story—which he has tried to do by saying he will monitor council spending. Moreover, “everyone else involved will also have an earmark issue,” Mr. Sheinkopf says. “Before you throw the shot, you’ve got to know The men and women of the port of New York and New Jersey... how it’s going to come back.” CITY COUNCIL SPEAKER Christine Quinn will answer questions about the scandal and other city issues at the Crain’s Breakfast Forum on Tuesday, May 20, at the Crowne Plaza. Doors open at 7:45 a.m. To make reservations today, New York Shipping Association, Inc. © 2008 go to www.crainsnewyork.com and click on “Events.” photos: zuma press

14 | Crain’s New York Business | May 19, 2008 Project5 3/6/08 5:04 PM Page 1

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CNYB 05-19-08 A 16 5/16/2008 2:34 PM Page 1

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

former Gov. Eliot Spitzer’s ECONOMIC SPOTLIGHT involvement in the ring. HarperCollins ends paper book catalog harpercollins said it will cease publication of its paper book catalogs—distributed to bookstores and libraries twice a year—and instead make a list of upcoming book releases available online. … It also entered a joint venture with Walden Media, which will acquire and publish children’s books. Claiborne changes liz claiborne inc. handed over control of about 185 off-price bloomberg news outlet stores to their respective subsidiary brands, including Liz Cablevision buys Newsday Claiborne, Juicy Couture, Lucky Brand, Kate Spade and DKNY CABLEVISION CORP., owner of Madison Square Garden and Jeans.The brands, which already the New York Knicks, topped offers from News Corp.’s control their full-price specialty Rupert Murdoch and Daily News Publisher Mortimer stores, will also decide on locations Zuckerman to buy NEWSDAY from Tribune Co. for $632 for new outlet stores. million. Tribune will get $612 million for a 97% stake in Economy Watch Newsday, plus $18 million in prepaid rent for some Bloomberg LP NYC’s jobless rate remains below the U.S. level. Area food and beverage prices facilities, and will retain a 3% stake worth $20 million. adds content chief rose 5.3% in the year ended in April, the biggest 12-month change since 12/90. norman pearlstine was named MARCH ’08 APRIL ’08 COMPARISON to the newly created role of chief NY area inflation change +0.9% +0.3% +3.6%1 HBO bites company has extended jobs to content officer at Bloomberg LP. about 6,000 of Bear Stearns Cos.’ Mr. Pearlstine, who has held NYC unemployment rate 4.6% 4.5% 5.0%2 into Apple nearly 14,000 employees. J.P. senior roles at Dow Jones,Time NYC employment change +900 +1,200 +40,9003 time warner inc.’s HBO cable Morgan will cut up to 4,000 of its Inc. and most recently the Carlyle 1-NY area inflation change for the latest 12-month period. 2-U.S. unemployment rate for the lat- network reached an agreement own employees in the merger, Group, will be charged with est month. 3-NYC employment change for the latest 12-month period. with Apple Inc. to sell episodes of 2,000 of whom will be directly enhancing Bloomberg News’ its television shows on Apple’s replaced by people who held their operations. He will work with iTunes. HBO shows will cost positions at Bear. longtime editor in chief Matt $1.99 and up, marking the first Winkler. Both report to new NYC Hotel Stats Broadway Stats time Apple has agreed to offer President Daniel Doctoroff. Average hotel occupancy and room Attendance and gross were flat for flexible pricing on iTunes Verizon readies rate climbed in March, PKF Con- the week ended 5/11, The League content. Linux phones CBS buys CNET sulting reports. First-quarter averages of American Theatres and Producers were 81.4% and $273.71, respec- says. Glory Days opened on May 6 verizon wireless said it will cbs corp. agreed to buy CNET tively, compared with 79.3% and and closed that same night; another Barneys CEO begin selling both simple and Networks Inc., a technology news $251.53 in the same period of 2007. 36 musicals and plays were running. headed out “smart” phones using software provider, for about $1.8 billion in based on Linux, a freely cash, or $11.50 per share. howard socol, chief executive of distributed operating system. Manhattan-based CBS will Barneys New York, said he would Verizon is the first U.S. carrier to combine its news, entertainment resign from the department store join the LiMo Foundation, a and sports Web sites with CNET at the end of global industry consortium sites, including ZDNet, June. Mr. dedicated to promoting Linux- GameSpot.com,TV.com, Chow Socol’s widely based mobile software. and Search.com. expected departure IACeasefire comes nine In the Heights

months after bloomberg news john malone’s Liberty Media leads Tony nods the luxury chain was bought by Corp. dropped its legal fight to Istithmar, the investment arm of stop the breakup of Barry Diller’s in the heights, a rap-, hip-hop- the Dubai government. He IAC/InterActiveCorp after and salsa-themed musical set in endorsed plans to expand the gaining additional board Washington Heights, led the field store abroad. representation as part of a of Tony Award contenders with 13 Capital IQ’s Weekly Deals Report settlement. ... As part of its effort nominations. Lincoln Center to bolster its Ask.com search Theater’s revival of Rodgers & TRANSACTION SIZE Fallon to host engine, IAC announced plans to Hammerstein’s South Pacific came COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE Late Show buy Lexico Publishing Group, in second with 11 nominations. Sundance Channel $496.0 Rainbow Media Holdings SB M&A owner of Dictionary.com. —from staff reports and Manhattan nbc said comedian Jimmy Fallon bloomberg news reports VBV $310.6 Green Plains Renewable Energy Inc. SB M&A will replace Conan O’Brien as Manhattan host of the Late Show next year. Call-girl booker Enliven Marketing Technologies Corp. $88.8 DG FastChannel Inc. SB M&A Mr. Fallon, a former cast member pleads guilty Manhattan on NBC’s Saturday Night Live, Phoenix India Acquisition Corp. $45.0 Not disclosed GCI will become host of the show the woman accused of booking Manhattan when Mr. O’Brien replaces Jay johns for high-priced call girl ring Cicada Cos. $20.0 Not disclosed GCI Leno on The Tonight Show. Emperors Club VIP pleaded Manhattan guilty to money laundering and Selected deals announced during the week of May 4 for companies headquartered in metro New promoting prostitution.Temeka York. GCI: Growth capital investment represents new money invested in a company for a minority JPM job shake-up

stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing Rachelle, one of four defendants bloomberg news shares of a company without the participation of a financial buyer. j.p.morgan chase & co. Chief in the case, also agreed to tell a IN THE HEIGHTS led the field of Tony Award

bekka lindström bekka Executive James Dimon said the grand jury what she knows about contenders, with 13 nominations.

16 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 17 5/15/2008 4:27 PM Page 1

EXPLORING CAREERS THE WEEKS AHEAD GROUPS SEEK HOST BUSINESSES THE GREATER NEW YORK COUNCILS’ Exploring program is seeking THIS WEEK’S EVENTS Women holds program on your financial MAY 29-JULY 10 MAY 20 future. 6 p.m. to 8 p.m., UBS, Seidbet Associates holds job search businesses to host sessions offering high school students the chance to Intertek holds seminar on global supply 1285 Sixth Ave., 14th floor. Fee: $50 workshop/support group series. explore various industries and make better decisions about career choices. chain compliance. 6 p.m. to 7 p.m., members, $85 nonmembers, $30 Thursdays, 6:30 p.m. to 8 p.m., 45 E. Exploring puts together groups of 15 to 25 students. They meet at the Flushing Community Library, 41-17 graduate-level students if preregistered 33rd St., room 209. Fee: $200. host businesses after school for four or more sessions, learning about Main St., Flushing, Queens. Free. by May 23; additional $10 thereafter. (212) 260-2026 or [email protected]. educational requirements, salaries and what people in their selected (630) 623-2105 or [email protected]. (212) 499-6565 or MAY 30 fields actually do. MAY 20 [email protected]. Pace University’s Small Business For more information, please call Exploring director Bob Hayes at TiE Tri-State holds program on MAY 29 Development Center holds workshop opportunities in the real estate sector. Entee Holdings Inc. holds networking on QuickBooks and basic bookkeeping. (212) 651-2808, or visit www.nyexploring.org. 6 p.m. to 9 p.m., Nixon Peabody, reception. 6 p.m. to 8 p.m., Stitch Bar 9:30 a.m. to 5 p.m., 1 Pace Plaza, room 437 Madison Ave., 23rd floor. Fee: and Lounge, 247 W. 37th St., upper W-403. Fee: $149. (212) 618-6655 or $25 members, $40 nonmembers. level. Free. (718) 662-3686 or [email protected]. (646) 530-8979 or [email protected]. MAY 30 (212) 618-8817 or workshop on surviving debt and [email protected]. 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Your get-out-of- MAY 20 New York Human Resources Planning Society holds program on the new science of using human capital. 4:30 p.m. to 7 p.m., McGraw-Hill, 1221 Wi-Fi-jail card. Sixth Ave. Fee: $50. (845) 359-8800 or [email protected]. MAY 20 Society for Marketing Professional Services holds a meet-the-media breakfast. 8 a.m. to 10 a.m., Penn Club, Now, free. 30 W. 44th St. Fee: $65 members, $85 nonmembers. (212) 499-6565. MAY 21 Stay connected with the reliability of New York American Marketing BroadbandAccess and a FREE USB wireless modem. Association holds seminar on green marketing in the 21st century. 6 p.m. to Your small business doesn’t need limits. It needs connections. With BroadbandAccess you can work beyond 7:30 p.m., 116 E. 27th St., sixth floor. Wi-Fi hotspots, quickly and securely. You can browse the Internet, check email and be more productive when Fee: $35 members, $55 nonmembers. (212) 687-3280, ext. 222, or and where you want. 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55137-01.indd 1 May 19, 2008 | Crain’s New4/14/08 York Business 4:08:36 PM | 17 Project4 12/12/07 11:55 AM Page 1 CNYB 05-19-08 A 19 5/15/2008 4:20 PM Page 1

REAL ESTATE INSIDE Spec skyscraper Interview with Q&A SJP Properties’ Steven Pozycki PAGE 28

Disaster access Hard times for brokers program’s As real estate roadblock market slows, firms hire sales Endorsed by the city, the service coaches, trim fails to lure commissions small firms BY THERESA AGOVINO BY AMANDA FUNG in the 24 years that he last summer, a steam-pipe explosion in midtown Man- has been a commercial real hattan kept Jeff Isler and his 16 estate broker, Mark Weiss employees out of their Lexing- ton Avenue office for more has learned that the than a month, costing his fam- economy is cyclical and ily-owned business, Info- Graphics Inc., $250,000 in that he needs to adjust to damages and lost revenue. changing market More than 100 other busi- conditions. 0.2% ness owners While the last few years CITY were also locked BUSINESSES have been robust, with that have out as emer- joined the gency officials asking rents and broker access system blocked access to two buildings commissions climbing near Grand Central Terminal sharply, the market is now during the cleanup, which last- MARK WEISS of ed several weeks. Unable to re- Newmark Knight beginning to show signs of trieve essential documents and Frank says, “There wear and tear.The amount equipment, many were unable are half the number to restart their businesses else- of deals out there.” of office space leased in where. Manhattan in the first Only a handful of firms near quarter was down 8% the steam-pipe explosion were buck ennis enrolled in a four-year-old pro- ARCHITECTS SUBLEASE SUBURBS compared with the year- gram called Corporate Emer- gency Access System,a creden- MARKET draw up plans deals are are awash in ago period, while the tialing service that allows key SLOWDOWN for a coming expected office number of new lease employees to enter their offices downturn to increase vacancies during disasters. The locked- INSIDE Page 22 Page 24 Page 26 transactions was down a See ACCESS on Page 20 See HARD TIMES on Page 21

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May 19, 2008 | Crain’s New York Business | 19 CNYB 05-19-08 A 20 5/15/2008 4:21 PM Page 1

REPORT REAL ESTATE

CORPORATE Access program has trouble enrolling firms EMERGENCY ACCESS SYSTEM Continued from Page 19 tion cards have been issued. Manhattan nonprofit founded in spite its small size. “It is the only DESCRIPTION Business officials out businesses either didn’t know “If disasters are not in the news, 1999 that is focused on educating program of its kind,”says Mary Ann get ID cards to gain access to about the program or declined to it is hard to get businesses to focus the public and the private sectors Marrocolo, deputy managing direc- their offices during emergencies sign up for it. on the program,” says Peter Picaril- about business continuity during a tor for emergency management and and disasters. Access allows Although CEAS was estab- lo,CEAS’s executive director.“Out- disaster. With an annual budget of preparedness in Philadelphia, who them to retrieve important lished in partnership with the city’s reach is hard.Our goal is to make the approximately $500,000, CEAS formerly worked in New York City’s documents and equipment. Office of Emergency Management, program more visible.” has limited marketing resources. It OEM. “It provides an easy way for the organization has had a hard time sends out brochures and fact sheets government to authenticate busi- WHEN STARTED enrolling businesses. According to Limited marketing resources to local businesses, and OEM helps nesspeople,[and] it frees up govern- December 2003 OEM, about 300 businesses have ceas was established by the Busi- promote the program. ment to do our job, which is to focus CARDS ISSUED joined, just 0.2% of the city’s total. ness Network of Emergency Re- Emergency management ex- on response and recovery.” 20,000 So far, more than 20,000 identifica- sources Inc., a corporate-sponsored perts say the program has value, de- Under the program, enrolled COST $50-$70 per card, depending on level of access; good for two years COMPANIES USING CEAS Citigroup, Ernst & Young, NBC Universal, New York Life, Tishman Speyer Properties, Viacom

companies designate certain em- ployees to receive CEAS identifica- tion cards.Those employees have to complete a Web-based training course, and there is a limit as to how many cards a single business can have. For instance, 25% of employ- ees at a company with 20 workers or less can carry cards, while only 20% of employees at a company with 21 to 100 employees can carry them. So far, the program has been more popular with larger corpora- Beacon Capital Partners, LLC tions than with smaller concerns, even though smaller businesses are thanks the brokerage community for more vulnerable in a crisis. More than half of the companies enrolled the recent 261,000 sf of leases in CEAS are Fortune 500 compa- nies like Citigroup, Ernst & Young, at Viacom and NBC Universal,as well as real estate developers like Tish- man Speyer Properties and Brook- field Properties. Desire to run lean although the id cards are rela- tively cheap—$50 or $70 per card for two years, depending on the lev- el of access—it has been a challenge to get smaller businesses to sign on. Mr. Isler, whose firm designs and prints material for legal presenta- 44 SOUTH BROADWAY tions, didn’t know about CEAS at REDEFINING DOWNTOWN WHITE PLAINS the time of the steam-pipe explo- sion, but even now he is hesitant to enroll. We are pleased to welcome: “I want to get involved,but when you’re a small business you think two to three times about everything,” Disney Publishing Worldwide Cravath Swaine & Moore says Mr. Isler. “You want to remain lean. Not everything is billable.” FAMM APS Healthcare Despite a slow adoption rate,Mr. Picarillo says businesses are becom- Loews Corporation Hogan & Hartson ing more aware of emergency pre- paredness.And CEAS,which oper- Newedge USA LLC ates in four cities outside of New York,has been expanding.It expects to offer its program in New Jersey this month. 3,500 - 250,000 SF AVAILABLE AT THIS WHITE PLAINS PREMIER OFFICE TOWER “As the program gains credibili- ty,we are getting inquiries from oth- er cities, like Baltimore and Pitts- burgh,” he says. “Our goal is not in GREG FRISOLI JOSH KURILOFF quantity of issued cards; it is to get 203.326.5831 212.841.7894 [email protected] [email protected] more cities and businesses to realize that access is an important issue in www.WestchesterOne.com every single disaster.”

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20 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 21 5/15/2008 4:21 PM Page 1

REPORT REAL ESTATE Hard times for real estate brokers

Continued from Page 19 renting space, but leasing assign- principal at the company. Kaufman whopping 47%, according to Cush- ments from financial firms are dry- typically doesn’t compete against man & Wakefield Inc. ing up. the likes of Newmark for mega- Many people in the industry be- Now, Mr. Weiss is actively seek- transactions. lieve the market will get worse be- ing deals outside New York City “Firms that wouldn’t touch a fore it gets better.As a result,brokers while diversifying his local client 10,000-square-foot deal are all out like Mr. Weiss and the firms they base to include more nonprofit con- there now,” says Mr. Greenspan. “I

work for are scrambling to cerns, even if it means need to be that much more aggres- lindström bekka come up with ways to stay working on smaller, less sive to win that business.” competitive. Some are di- MARKET profitable transactions. The firm requires all of its bro- ed right after J.P.Morgan Chase an- also lead to leasing assignments versifying their client At the end of last year, for kers to attend a weekly session with nounced it was purchasing Bear from the landlord. base, while others are hir- SLOWDOWN example, he negotiated a the sales coach, who helps them re- Sterns in a fire sale, an event many Robert Freedman, chief execu- ing sales coaches to boost 36,000-square-foot deal fine their cold-calling techniques. believe could be a precursor to bro- tive of GVA Williams, says land- staff productivity. Some in Manhattan for Cornell Each broker has a follow-up session kerage firms dumping more sub- lords are more open to switching brokers are going after University. with the coach to discuss specific lease space on the market. property management companies smaller deals than they He says he is targeting strategies. during tough times because when would have just a year ago. 8% nonprofits because they Mr. Greenspan declined to say Inside expertise rents level out,owners become more And some firms are even DROP in office tend to be consistent em- how much he is paying the sales “we are taking advantage of our focused on running their buildings trimming their commis- space leased in ployers even during a coach, but he has committed to the staff ’s knowledge,” says Matt Van more efficiently. sion rates in an effort to Manhattan in down economy. “It may program for a year. “If I can retain Buren, senior managing director “When rents are ratcheting up, hold on to clients and at- the first quarter not be as sexy as staff and I can make one big deal, of CB Richard Ellis’ midtown op- people are not as concerned with tract new ones. vs. a year earlier a 200,000-square-foot the service will pay for itself,” he erations. operations,” says Mr. Freedman. “There are half the deal,” but brokers can’t says. “I have validation now from While leasing commissions are Some firms are taking the un- number of deals out there,” says Mr. manufacture transactions that don’t the vibe in the room.There is a pos- the most profitable part of the bro- usual step of cutting their commis- Weiss, an executive vice president exist, says Mr. Weiss. itive vibe.” kerage business, some firms are try- sions to win business. GVA and principal at Newmark Knight CB Richard Ellis Inc.is also con- ing to boost profits by diversifying. Williams,for example,might accept Frank.“The competition for them is Defensive action ducting more broker training ses- Mr. Van Buren says his firm is smaller commissions on deals in going to be very keen.” the willingness of larger firms to sions. However, instead of hiring an spending more time trying to win which fees would exceed $1 million. Mr. Weiss says that financial chase smaller deals is one reason the outside consultant, the firm asks building management contracts. “We’ll be responsive on a selective services and law firms traditionally Kaufman Organization decided to senior brokers who have survived Such assignments can provide a basis,” says Mr. Freedman. have accounted for a major portion hire a sales coach for its 15 brokers previous downturns to address the steady stream of revenue, even dur- of his business. Law firms are still last year, says Grant Greenspan, a troops every other week.That start- ing economic downturns, and can COMMENTS? [email protected]

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May 19, 2008 | Crain’s New York Business | 21 CNYB 05-19-08 A 22 5/15/2008 4:22 PM Page 1

REPORT Idle architects tap new markets

ny is also taking on regional institu- Look overseas and tional clients, including New York in public sector, try University, Einstein Medical Col- lege and Rutgers University. development and “The public sector still has legs,” niche services says Mr. Eckstut. Other architects are also banking on the vitality in the institutional BY TINA TRASTER sector, with construction projects still on track for schools, hospitals, costas kondylis and partners,a government buildings and trans- Manhattan-based firm of 120 ar- portation infrastructure. chitects and designers that special- izes in mixed-use retail and com- Growth area mercial projects,is bracing for a 25% “the demand for modernization in drop in revenue from U.S. projects science and technology continues to this year. grow,” says Ken Drucker, senior To make up for that shortfall,the principal at HOK’s New York office, firm has gone after international which is designing Brooklyn Bio- business more aggressively. It is al- BAT Phase Three,the Harlem Hos- ready working on projects in Ka- pital New Patient Pavilion and the zakhstan, South Korea, SUNY Downstate Am- Qatar, Russia and Turkey. bulatory Pavilion. “I’m not keeping all my Apart from public- eggs in the American bas- MARKET sector work, new com- ket,” says Chief Executive SLOWDOWN mercial construction is Costas Kondylis. spotty and often depends In addition to courting on geography. clients overseas, architec- “The Manhattan mar- ture firms are employing a ket is still a bright spot,” host of strategies to deal 39.7 says James Davidson, a with a downturn in busi- LOWEST partner at SCLE Archi- ness,including doing more monthly reading tects, which is working on public sector work for in 13 years for several residential projects schools and hospitals, the Architecture in west Chelsea,the Upper branching out into devel- Billings Index East Side,the Upper West opment, and offering Side and Brooklyn. “But niche services that create new profit projects in the greater metro area are streams. While most say they have definitely being stalled because work in the pipeline,they are prepar- lenders are not as free with cash.” ing for a slowdown that could por- Some architects have branched tend a decline in construction activi- out, hoping diversification will help ty as early as next year. them survive the down cycle. In March, the Architecture Architect Gary Silver diversified Billings Index,a leading indicator of his business by becoming a develop- construction activity nine to 12 er. Rather than rely solely on design months in the future, dropped two work from building managers,he as- points. Coming on top of a nine- sembled a team of 10 investors and point plunge in February, the index has just completed a condominium now stands at 39.7—the lowest building on East 104th Street in monthly reading in 13 years. (Any Harlem. Nearly 30% of the units, reading above 50 indicates an in- which range in price from $330,000 crease in billings;a reading below 50 to $1.2 million,are sold,and Mr.Sil- means billings declined.) ver and his team are planning two more residential buildings nearby. Uncertain future “We will use the revenue from “it will be tough times ahead for these projects to ride the downturn,” architecture firms,”says Kermit Bak- says Mr. Silver, principal of Man- er, chief economist for the American hattan firm Gary H. Silver Archi- Institute of Architects, which pub- tects, a firm of nine with annual rev- lishes the index. enues of $1.6 million. Architectural firms that typical- Some architecture firms turn re- ly experienced 10% annual growth cessions to their benefit. every year for the past four years are “Whenever the economy nose- adjusting their expectations for dives, our renovation and forensic 2008 and 2009. work accelerates,” says Dan Cuoco, “We don’t anticipate any growth president and chief executive of this year because a lot of domestic Thornton Tomasetti Inc., which has work is slowing down,”says Stanton developed niche services. Eckstut, a principal at Manhattan- In leaner times, building owners based architectural firm Ehren- focus on fixing, renovating and krantz Eckstut & Kuhn. adding on. In addition, the firm is Nevertheless, Mr. Eckstut ex- hired by lawyers who negotiate dis- pects to remain busy on waterfront putes arising from development projects in Yonkers and Buffalo,and projects. And there is more of that on transportation and infrastructure when times get tough. projects in Los Angeles, Houston and Washington, D.C.The compa- COMMENTS? [email protected] Project27 5/14/08 4:31 PM Page 1

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REPORT REAL ESTATE Rise in sublease space works in tenants’ favor As more companies contract, others find rent bargains; trend will accelerate

BY ANDREW MARKS

british telecom recently signed a lease for 63,000 square feet in the New York Times Building, and the broker who represented the compa- ny figures his client got a pretty good deal. Smart businesspeople rent plants, Robert Ageloff,a managing prin- copiers and a lot more. cipal at The Staubach Co., declines to disclose what the tenant paid, but sources say it was $95 a square foot. Really smart businesspeople rent “You can’t find new construction anywhere in Manhattan for under their furniture too. $100 a square foot,” Mr. Ageloff says. SETTLED BRIEFLY: British Telecom might not have Architecture firm snagged such a bargain had it dealt HOK looked for Don’t tie your dollars up by purchasing offi ce furniture. directly with the landlord, Forest space for months Renting from CORT is smart business. Buying leaves City Ratner. Instead, it subleased and finally got a from another tenant, ClearBridge short sublease, you stuck with furniture that decreases in value and is Juliette Lam says. hard to resell. Just call CORT, and we’ll deliver and Advisors,a subsidiary of investment

firm Legg Mason. neff david install within 48 hours. More companies are vacating space because of layoffs or shelved “This is the time to wait for good more space—either direct or sub- expansion plans, and others are tak- opportunities, because in this econ- lease—near its office at 620 Sixth Long Island ing advantage by snapping up prime omy you’re going to see more and Ave. 631.420.5802 office locations at a discount. more tenants needing to dispose of “We had a hard time finding the Manhattan Though not a lot of sublease their space,” Mr. Miller says. square footage we wanted that was 212.867.2800 space is available now, more is ex- Landlords acknowledge that close to our offices,” says Juliette Connecticut pected to come on the market as the more sublease space is becoming Lam, a senior principal at HOK’s 203.353.0400 economy worsens. And at some available but say it is more a trickle New York office. It eventually sub- Central New Jersey point, that extra inventory becomes than a flood. So far, they say, it is leased 10,000 square feet from Gap 732.729.4744 a drag on rent prices. having a negligible effect in the same building, though the CORT.com Because the financial on rents, which rose again deal is only for two years. Northern New Jersey sector has borne the brunt in the first quarter,though 201.459.1401 of the credit crisis and eco- MARKET more slowly than a year Waiting is good nomic slowdown, firms SLOWDOWN earlier. tenants that don’t need to move like ClearBridge are re- “We’re still talking right away should be in a good posi- evaluating their needs. about a relatively small tion later this year if the downturn “There’s a lot of oppor- square footage,” says Ste- continues, as more space is likely to tunity now to achieve sub- ven Durels,leasing director come on the market and put down- stantial-value deals on 15%- at SL Green Realty,whose ward pressure on rents. subleases with financial portfolio consists mostly In the last downturn, many fi- firms that are overcom- 25% of Class A buildings. “In nancial services firms rushed to mitted and long on space,” DISCOUNTS the last recession, when dump space. That proved a costly Mr. Ageloff says. offered on the vacancy rate got up to mistake, because they had to lease sublease space 12% and a third of that was space back at higher prices after a Focus on offsetting costs in the Grand sublease,it was a real prob- relatively short recession.As a result Central area tenants can often get lem for us,” he says. “But of that lesson, some firms consider- better deals with subleases now vacancy rates are just ing subleasing unneeded space are because the companies they are 6% to 8%,and sublease is about 1%.” waiting to get a better handle on the renting from are usually more inter- SL Green recently took back an slump’s duration and severity. ested in quickly offsetting their 11,500-square-foot floor at 461 At the same time, some firms costs than maximizing their poten- Fifth Ave. from investment firm with space on the market are having tial return.In ClearBridge’s case,the Ameriquest, which was paying be- trouble moving it because they’re space had been sitting empty since low-market rent, and quickly made unwilling to give significant dis- the firm moved into the new build- a deal with the U.S. Bank National counts. ing last year. Association for a 10-year direct For example,Grubb & Ellis bro- Marc Miller, president of tenant lease at $100 a square foot. ker Michael Mandel says that Ernst specialist Miller & Partners, is eye- “We’ve done a few deals like that & Young has had three floors of- ing subleases for a client, construc- lately, where we’re actually increas- fered for sublease since August and tion firm Dragados USA, at the ing the rent roll,” Mr. Durels says. that Royal Bank of Scotland can’t Graybar Building,at 420 Lexington But even if tenants can’t find dis- find a taker for 140,000 square feet Ave.,as well as two other sites in the counts, the increase in sublease at 7 World Trade Center. Grand Central vicinity.The space is space is adding inventory to areas of “They’re getting a lot of looks, being offered at rents 15% to 25% Manhattan where vacancies have but they’re not getting the deals lower than the $75 a square foot that been low. done,” Mr. Mandel says. landlords are asking for direct leases Architecture firm HOK spent in those buildings. four frustrating months looking for COMMENTS? [email protected]

24 | Crain’s New York Business | May 19, 2008 Project11 4/17/08 12:03 PM Page 1

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REPORT REAL ESTATE From buzzing to unsettled in the suburbs

going out of business to drug com- buyers who want to be in the mar- Layoffs, closures, panies and government contractors ket,but there’s a disconnect between credit crisis hurt leaving—and now there is a credit buyers and sellers on price.” crisis.” The situation is aggravated by activity; sales off While some of Monmouth’s the cost of borrowing. The spread two-thirds in places problems are unique, most New between LIBOR—an interest rate York suburbs have reported a slump index—and the federal funds rate is in commercial real estate because of now 65 basis points versus 10 basis BY DIANE HESS the credit crunch and a weakening points historically. economy. Commercial building “What makes this so difficult is when corbett donato went into sales are down sharply, and office that we went from free capital to no his family’s commercial real estate leasing has slowed as potential buy- capital,” says Jerry Pietroforte, a business 10 years ago, Monmouth ers and tenants wait for bargains. managing director with Alvarez & County, New Jersey—less than 60 With financing harder to obtain, Marsal Real Estate Advisory Ser- miles outside New York City—was the sales market has been particular- vices. “When that changes as radi- a hub for tech and phar- ly affected. The value of cally as it did, you have a slowdown maceutical firms, as well commercial sales transac- in the market.” as defense contractors. tions was down 69% in Things are different MARKET northern New Jersey in No absorption now. The closing of an SLOWDOWN the first quarter of 2008 even though relatively little Army communications compared with the year- new construction has been done in research center at Fort earlier period, based on New Jersey over the past three years, Monmouth in 2011 will data from Real Capital a number of complexes have vacan- result in the accumula- Analytics. cies. About 300,000 square feet is tive loss of 5,000 jobs. 11.1% Other markets in the available at both University Square Other big tenants have 1Q VACANCY metropolitan area have in West Windsor and Meadowlands RATE for Class A downsized or left the also seen steep declines. Corporate Center in Lyndhurst. office space on area, most recently Amer- Long Island, up Compared with a year “Part of the problem is that leas- ican Home Mortgage and from 9.3% in ’07 earlier, first-quarter com- ing activity in New Jersey has been a clinical researcher PRA mercial sales were down game of musical chairs, and we International. 70% in Westchester haven’t had much positive absorp- Mr. Donato has considered sell- County, 75% on Long Island and tion,” says Philip Lipper, senior MARISA MANLEY, ing portions of The Donato Group’s 83% in Stamford, Conn., where managing director at Studley. who represents portfolio, which consists of about large banks, including UBS, have “Until the job numbers in the commercial tenants, 800,000 square feet of Class A office announced substantial layoffs. state improve, it is difficult to imag- says that many “are looking for better space. “There is no question—sales are ine a scenario where you will see a lot opportunities down “We are concerned about the down across-the-board,” says Dan of growth,” Mr. Lipper says. the road.” future here,” he says. “We have Fasulo, a managing director at Real Fran Schor, president of Treeline

gone from technology companies Capital Analytics. “There are still Cos., which has a portfolio of Class buck ennis

A buildings on Long Island, says er areas of Westchester—such as many tenants are on the sidelines. Mamaroneck, Briarcliff and the I- The vacancy rate for such space in 287 corridor—could feel a ripple ef- Nassau and Suffolk counties was fect,” she says. 11.1% in the first quarter, compared with 9.3% a year earlier,according to Holding out broker Cushman & Wakefield. marisa manley, founder of Man- “During this period, as people hattan-based Commercial Tenant are watching the election and the Real Estate Representation Ltd., government strug- expects more sub- gles to come up with lease activity over a plan, I think there ‘NJ leasing the next six months. will be stagnation,” “There hasn’t Ms. Schor says. is a game been a big increase In Westchester, in sublet space so Robin Levitt Topol, of musical far, but I think that an attorney at may be coming,” Butzel Long, notes chairs’ says Ms. Manley, that tenants have who also handles been taking longer suburban business. in lease negotia- She points out that tions over the past prime space recent- few months. ly became available at waterfront lo- “They aren’t worried that space is cations on Harbor Drive and Lud- running away from them,’’Ms.Topol low Street in Stamford. says.“We’ve seen leases out for signa- For her part, Ms. Manley has ture that come back for comment,” counseled clients to wait for prices to and though landlords aren’t making drop. One client, an established me- “excessive concessions, they have dia company in Fairfield County, been more flexible,” she adds. Connecticut,recently had the chance Experts are seeing sizable blocks to renew its lease for 20,000 square of space coming on the market even feet but decided to delay signing for in prime areas like White Plains. up to six months in case market con- For example, 240,000 square feet is ditions become more favorable. available at 1129 Westchester Ave., “What we’re seeing is that com- a Class A property off I-287. panies are looking for better oppor- Westchester, which is viewed as tunities down the road,” Ms. Man- a cheaper alternative to the city in a ley says.“The market is unsettled to good economy, could see increased a point where people are starting to vacancies as lower rents make New be bargain hunters.” York more affordable, according to Ms.Topol.“I think some of the out- COMMENTS? [email protected]

26 | Crain’s New York Business | May 19, 2008 Project5 5/6/08 4:56 PM Page 1

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REPORT REAL ESTATE

Eighth Avenue, across the street is LEED [Leadership in Energy New York where you can have a from the New York Times and Environmental Design]- sign on top of the building. We’ll Building. It is expected to be certified gold, and has floor-to- also have 14,000 square feet on the completed by early 2010. ceiling windows and 10-foot base of the building where we can The company has an extensive ceilings.The Macklowe building is put signs. Q&A track record as a commercial builder much smaller. in New Jersey and has put up two For all those reasons, we’re not Q: From a real estate developer’s residential towers in midtown, but as nervous as maybe we should be. perspective, what are the challenges this is its first office property in But the most important thing is after the Bloomberg administration Building Manhattan. Mr. Pozycki, 57, transportation.This building sits leaves office? recently spoke with Crain’s on 12 subway lines, is only one stop A: There hasn’t been a with Managing Editor Robert Hordt. from Grand Central Terminal and neighborhood in the city that hasn’t Penn Station and has 200,000 done extraordinarily well in all of Q: You and Harry Macklowe are people a day coming out of the Port Manhattan under the Bloomberg nerves the only two developers in Manhattan Authority Bus Terminal across the years.The beautiful thing about the building on spec. With the economy street. Bloomberg administration is that turning down, are you worried about it’s conflict-free. Because he didn’t of steel attracting tenants at a price that will Q: What is your asking rent? need money to get re-elected, he justify your investment? A: At the base, depending on how never had to compromise himself. A: No. In 2010, leases are coming much space you take, we’re in the Most people know that if you’re NJ developer sure due on about 17% of all the office mid-$90s per square foot, and at going to ask Mr. Bloomberg for Steven Pozycki space in the city—about 60 million the top we’re around $135. something and it’s good for the city, that spec tower will square feet.That’s almost double he’ll listen. If it’s not good for the draw enough tenants what normally comes due in one Q: What kind of tenants are you some announcements on signed city, don’t waste your time.The big year. We have about a year and a talking to? leases. By the end of the year, we fear is that the good and efficient teven pozycki is the half to market the building, and we A: We’re having serious should have a minimum of a third government that he has created founder and chief execu- don’t have a lot of competition. If discussions with about eight to half of the building leased out. won’t be maintained. I think he has tive of SJP Properties, there were four other towers going tenants right now who all need Of course, that is based on the put a lot of positive momentum in which is developing 11 up at the same time, yeah, we’d be about 200,000 square feet, with market today. If 3 million or 4 place, but the next mayor is going Times Square, the largest worried. some of them as large as 500,000 million square feet of space from to have to continue that.To keep up Soffice building in Manhattan cur- We’re actually surprised at the square feet. Any of them could be financial services firms came back with other major cities in the rently under construction specula- amount of interest in the building. the lead tenant. on the market, that would be scary. world, we have to keep improving tively—that is, without any tenant We’ve always taken advantage of We’re talking to entertainment, our infrastructure and transit, and commitments. the imbalance in supply and financial services to some degree, Q: What about naming rights? doing things that will make the city The 1.1 million-square-foot, demand. And we’re the only legal and consumer product A: For a big enough tenant, we greener. $1.2 billion skyscraper will rise 40 building going up in midtown that companies. By the end of the would do that.The beauty of Times stories at West 42nd Street and has 40,000-square-foot floor plates, summer, we should be making Square is that it’s the last place in COMMENTS? [email protected]

TThehe Association of Real Estate Women And Extends Deep Appreciation to these Gala Sponsors

PLATINUM RECEPTION SPONSORS GOLD RECEPTION SPONSORS SILVER RECEPTION SPONSORS ACC Construction Corp. BBG-BBGM Arent Fox LLP Thanks Apollo Real Estate Advisors Commerce Bank Caran Properties Realty, LLC Forest City Ratner Companies First American Title Estreich & Company Jill R. Kaplan Fried Frank Harris Shriver Insurance Co. Knoll, Inc. Publisher, Crain’s New York Business & Jacobsen GE Real Estate Lane Offi ce Master of Ceremonies Merle Gross-Ginsburg Greenberg Traurig, LLP Newmark Knight Frank Perfect Building Maintenance GVA Williams for our 30th Anniversary Gala Perkins + Will Prudential Douglas Elliman Jones Lang LaSalle Real Estate Weekly Real Estate Real Estate Board of New York Rose Associates, Inc. Strook & Strook & Lavan, LLP (REBNY) Rubenstein Associates Swig Equities, LLC Ted Moudis Associates Thornton Tomasetti Group Congratulates Our Three Gala Honorees Vornado Realty Trust Thor Equities Zetlin & DeChiara Swig Equities, LLC Kent M. Swig, President BRONZE RECEPTION SPONSORS Appraisers & Planners, Inc. JFK&M Consulting Group Steelcase, Inc. Forest City Ratner Companies Arenson JLC Environmental Consultants, Inc. Sun & Moon Marketing Joanne M. Minieri, President/COO Buchbinder & Warren Kramer Levin Naftalis & Frankel LLP Communications Cauldwell Wingate Lehr Construction Corporation Syska Hennessy Group Apollo Real Estate Advisors Cetra/Ruddy, Inc. Massey Knakal Realty Tandus Richard J. Mack, Managing Partner Chase of Manhattan, LLC The New York Observer Crain’s New York Business Morrison & Foerster LLP The New York Sun Esther Muller’s New York Daily News The New York Times Real Estate Academy New York Post The Real Deal Evenson Best LLC New York Real Estate Journal Tri-State Real Estate Floorworks, Inc. New York University-RE Institute From Residential to Retail Herrick, Feinstein LLP Palisades Financial Perspective Real Estate Media H.J. Kalikow & Co., LLC Phillips Lytle LLP Verizon HOK Real Estate New York WB Engineers Jerome Haims Realty, Inc. Related Companies Yardi Systems Inc.

AWARD AND GIFT SPONSOR: Tiffany & Co.

You are invited to learn more about AREW, a progressive, innovative association for men and women real estate professionals offering outstanding educational and networking opportunities, at: Three Decades of Breaking Ground 212-599-6161 # [email protected] # www.arew.org

28 | Crain’s New York Business | May 19, 2008 Project3 5/8/08 4:13 PM Page 1 CNYB 05-19-08 A 30 5/15/2008 4:26 PM Page 1

REPORT REAL ESTATE

Deals Rhode Island-based firm signs pricey lease

Providence, R.I., the firm already Frank, represented Providence. CB Faith Hope Consolo, a broker cupied by Gap Inc., which has oth- Providence Equity leases 10,000 square feet at 390 Park Richard Ellis Inc. represented the with Prudential Douglas Elliman er space in the building,according to Partners takes office Ave., also known as the Lever landlord, Sheldon Solow. Real Estate, represented the tenant CB Richard Ellis Inc. broker John House. —theresa agovino in the deal,and Gerard Picaso nego- Isaacs, who along with Timothy on West 57th; second Both tony,high-priced buildings tiated in-house for the co-op land- Dempsey represented Cole Haan. tony location in city are home to numerous private equi- lord, East 72nd Street Tenants Cole Haan, a division of Nike ty and hedge funds.Providence spe- Consignment chain Corp. Inc., plans to move sometime early rovidence Equity Part- cializes in investments in media,en- sees NY opening —elisabeth butler cordova next year.Mr.Isaacs says Cole Haan ners has a taste for Man- tertainment, communications and will be moving staff from 680 Fifth hattan’s finest office tow- information around the world. entrepreneurs Laurie and Ave., where its lease is expiring. ers. The private equity The asking rent for the 10-year Richard Perren aim to take advan- Truffles coming The building, located between firm with $21 billion un- lease in the West 57th Street build- tage of the economic downturn by to downtown West 18th and West 19th streets in Pder management inked a deal to ing,located between Fifth and Sixth opening a New York City location of the Flatiron district, is owned by a lease nearly 32,000 square feet—the avenues, was about $200 a square RoundAbout, a high-end consign- parisian chocolatier La Maison partnership that includes Joseph entire 47th floor—at 9 W. 57th St., foot.A team led by Neil Goldmach- ment and designer-discount shop. du Chocolat plans to cater to the Chetrit. real estate sources say. Based in er, a broker at Newmark Knight They recently signed a 10-year polished-wingtip crowd by opening Stephen Schofel and Peter lease for 800 square feet at 31 E. 72nd a store in the financial district this Schimkin, brokers at Newmark St., on the corner of Madison Av- fall. Knight Frank,represented the land- enue. The asking rent was nearly The company recently signed a lord. $400 per square foot for the ground- 10-year deal for 1,500 square feet in —theresa agovino floor space. a building called The Crest, at 63 Wall St., between Hanover and Pearl streets. The asking rent was more Web firm inks than $300 per square foot. 30th Street deal Christine Emery, a broker with The Lansco Corp., represented inform technologies, a four- both the tenant and the building’s year-old Web services firm, has owner,Metro Loft Management,in signed a 10-year lease for 8,000 the deal. square feet at 44 E. 30th St. as it pre- The store will be La Maison du pares to boost its head count. The Chocolat’s third location in the city asking rent was $49 per square foot. Jack Resnick & Sons and its first downtown.The compa- Inform, which organizes Web 31 E. 72ND ST. will house RoundAbout. ny, which sells upscale truffles, content for media companies, will ganaches and fruit pastes, declined occupy the 11th floor of the 12-sto- to comment. ry building between Park Avenue The Upper East Side shop is La Maison du Chocolat will South and Madison Avenue. is pleased to announce slated to open this summer. The open next to a Tumi travel acces- The company, which currently Perrens already operate four other sories store that recently debuted at employs 35 people in a 5,000- the following new lease at RoundAbout locations in Con- 67 Wall St. Hermes, Tiffany and square-foot space on East 57th necticut and Westchester. Thomas Pink have also opened Street, says it needs additional room About half of the Upper East shops in the neighborhood within to accommodate growth. It expects Side store’s stock will be new, end- the past year. to move into the building in early of-season designer goods from fash- —elisabeth butler cordova July. ion houses such as Michael Kors, “Inform was looking to be in an Balenciaga and Dolce & Gabbana. environment that would not only re- 250 Hudson Street Those clothes and accessories will Shoe firm steps tain company employees, but also in Hudson Square sell for about 35% to 40% of their into Gap office attract new, top talent,” says Bill regular retail prices. The rest of the Montana, a managing director at shop’s fare will come from consign- cole haan, maker of shoes, hand- Studley, the brokerage that repre- ment deals, which are marked at bags, accessories and coats, is ex- sented the tenant. 25% to 40% of the original retail panding its presence at 620 Sixth Ave. Eric Harris and Scott Klau at price. by leasing an additional 28,000 Newmark Knight Frank represent- Lieff Cabraser Heimann & Bernstein,LLP The Perrens want to open a square feet.The deal brings its total ed the landlord, Elk Investors. Manhattan store because they al- to roughly 63,000 square feet. The East 30th Street building Law Firm ready accept a lot of consignment The asking rent for the space, recently underwent a renovation merchandise from residents living which represents roughly a quarter that created two separate lobbies. on Park and Fifth avenues, Ms. Per- of the third floor, was $70 a square New floors, elevators and installa- ren says, adding, “We do a huge foot. The lease extends until 2015. tions were also added. Entire 8th floor handbag business.” The location was previously oc- —diane hess 27,039 Sq. Ft. CRAIN’S SPECIAL SECTION Seeking the top employers do you work for one of the 25 best com- measuring factors including work environ- panies in New York City? If you think you ment, innovations/new ideas and people do, nominate your company for Crain’s practices. Finalists and winners will be an- New York Business’ inaugural Best Places nounced in a supplement to Crain’s and at to Work competition. an event in fall 2008. Anyone can nominate a company To be eligible, companies must have at Jack Resnick & Sons or get more information by visiting least one location and at least 50 employ- Owners and Builders Since 1928 www.crainsnewyork.com/bestplaces. ees within the five boroughs. Crain’s is 110 East 59th Street, New York, NY 10022 212-421-1300 • www.resnicknyc.com The deadline for nominations is June 30. working with leading research firm Quan- The free competition will recognize tum Market Research to conduct and workplaces based on an employee survey evaluate the employee surveys.

30 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 31 5/15/2008 7:03 PM Page 1

NEIGHBORHOOD JOURNAL Floating pool gets smelly Bronx berth

ter cooks down treated sludge into Department of Environmental Pro- claim the space. Hunts Point lands fertilizer balls with such a high tection is spending about $3 million “If you’ve got to decommission a first swimming hole, heavy-metal content they can’t be to get the pier ready. Adjacent to firehouse, this is the way to do it,” used on farms in New York state,ac- Baretto Point Park, the pool is in- says City Councilman David but sewage plant cording to nonprofit environmental tended to be a crown jewel in the Yassky, who represents the district. group Sustainable South Bronx. string of waterfront recreational ar- The philharmonic, whose main proximity casts pall In a word, the site stinks. eas that will become the South performance venue remains the “Depending on the wind and the Bronx Greenway. Brooklyn Academy of Music, has long recreational humidity level, it can be really, real- —hilary potkewitz had no administrative base since the drought is about to ly smelly,” says Miquela Craytor, late 1990s. It plans a $2.6 million come to an odiferous deputy director of Sustainable conversion of the 19th-century A RENDERING of revamped Engine Co. 204. end in the Hunts Point South Bronx. And like most city Brooklyn, borough structure into an office and per- section of the Bronx— odors, she says, it seems to get worse of fire and music forming arts facility. The orchestra Athe only district in the city without in the summer. gets a 10-year lease and an option for decision. The Friends of Firefight- a single swimming pool. Nonetheless, many people see five years ago, the threatened two five-year extensions. ers, which is based in Cobble Hill, Sitting for a year at the foot of the pool as an acceptable stopgap. closing of a historic firehouse pro- The building,which remains city had also submitted a proposal for Brooklyn Heights,a seven-lane,82- They just want to make sure the voked a storm of outrage in the qui- property,will be rechristened the BP the Degraw Street building. foot swimming barge called “the temporary fix doesn’t become per- et Brooklyn neighborhood of Cob- Music Center when it opens in President Nancy Carbone says Floating Pool Lady” is being pulled manent. ble Hill. Protesters, including actor 2010. The first floor will used as a her organization, which provides up the East River to a berth at Hunts “This community deserves an Steve Buscemi, formed a human performance space for a free cham- counseling programs for current and Point, where it will officially open indoor, fully operational, 365-day- chain in front of the building, and a ber music series, as well as children’s retired firefighters,would have been June 27. a-year swimming pool,” says Adam dozen people were arrested in what workshops and training sessions. a better fit. Friends also wanted to “The community decided they Liebowitz, a director at The Point, a proved a losing campaign. About 5,000 people a year are ex- “keep the firehouse warm” in the wanted this,” says Community youth development organization. But the neighborhood didn’t do pected to attend free recitals and hope that an engine company would Board 2 Chairman Roberto Garcia. Ms. Craytor says that having a so badly after all. The city gave it a concerts. The center will also be return someday. “For a very long time, Hunts Point pool would be great—“but one consolation gift early this month, available for use by community “The firehouse is the most natu- has lacked any green space or recre- that’s wedged between two noxious announcing that the former station groups at no charge. ral environment for [firefighters] to ational options.” facilities, so it will require more of Engine Co. 204 would be reborn “This allows people to have a vi- feel safe and nurtured,” Ms. Car- But some residents worry that chlorine, which is known to trigger as the home of the Brooklyn Phil- brant arts organization in the mid- bone says. “The firefighters consid- the proposed site for the pool may be asthma attacks, in an area that al- harmonic. Though the orchestra dle of the community,” says Adam ered that building a second home. less than ideal, sitting as it does be- ready has high rates of asthma?” can’t fight fires, it’s seen as a major Teeter, a spokesman for the Brook- That’s the way the community tween a sewage treatment plant and City Parks Commissioner Adri- asset for the area—and far better lyn Philharmonic. should feel about it, too.” a sewage pelletizing outfit. The lat- an Benepe favors the site, and the than the condos many feared would Not everyone is applauding the —matthew sollars

May 19, 2008 | Crain’s New York Business | 31 nb20p32_33cls.qxp 5/16/08 12:21 PM Page 32

Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading.

BUSINESS OPPORTUNITY/EVENTS FRANCHISE OPPORTUNITY PUBLIC & LEGAL NOTICES

Notice of Formation of 8 Centre Realty LLC. Arts. of Org. filed with Secy. of FRANCHISECrain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. State of NY (SSNY) on 1/25/08. Office location: NY Co. SSNY designated as agent of LLC upon whom process against OPP RTUNITY it may be served. SSNY shall mail process to: The LLC, 433 West 14th St., ARE YOU READY TO ANSWER THE CALL? Ste. 429 3R, Ny, NY 10014. Purpose: any Join Verizon Wireless’ largest Authorized Retailer... lawful activities. Wireless Zone®, the #1 Wireless Communications Franchise Notice of Formation of Barry LLC. Arts. of Org. filed with Secy. of State of N.Y. in America as rated by Entrepreneur Magazine. (SSNY) on 4/25/08. Office location: NY County. SSNY designated as agent of REAL ESTATE Franchises available in LLC upon whom process against it may be served. SSNY shall mail process to: 95 Delancey Street, NY, NY 10022. OFFICE SPACE METRO NEW YORK Purpose: any lawful activity. MANHATTAN’S ULTIMATE OFFICE ADDRESS Please contact Chris Connolly at 585-704-7990 Notice of Qualification of Dal Si America LLC. [email protected] Authority filed with Secy. of State of N.Y. TH (SSNY) on 4/9/08. Office location: NY County. 140 WEST 57 STREET or select franchise info at www.wirelesszone.com LLC formed in California (CA) on 4/1/08. SSNY designated as agent of LLC upon whom Premier Duplex process against it may be served. SSNY shall mail process to: United Corporate Services, 3491 Sq. Ft. Ten Bank St., Ste. 560, White Plains, NY 10606, registered agent upon whom process Expandable to 4570 Sq. Ft. may be served. CA address of LLC: 1017 Additional Spaces Crain's Classified is not responsible for corrupt files submitted by client or adsMaybrook run under Drive, Beverly the wrong Hills, CA subheading. 90120. Arts. 1100 to 4500 Sq. Ft. THIS ADVERTISEMENT IS NOT AN OFFERING. AN OFFERING CAN ONLY BE MADE BY A PROSPECTUS of Org. filed with CA Secy. of State, 1500 11th FILED FIRST WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. SUCH FILING DOES NOT St., 3rd Fl., Sacramento, CA 98514. Purpose: any lawful activity. • Exclusive high profile address CONSTITUTE APPROVAL BY THE DEPARTMENT OF LAW. between 6th and 7th Avenues • Unique 28' x 20' boardroom BUSINESS SERVICES INVESTMENT OPPORTUNITY 1103-1105 SHERIDAN AVE. LLC, a domestic with 25' ceilings, decorative Limited Liability Company (LLC) filed with the fireplace and dramatic 2-story Beverage Partnership/Investment Sec of State of NY on 4-1-08. NY Office location: floor-to-ceiling windows Established Beverage co. with sales & dist. in 9 New York County. SSNY is designated as states & chain stores is looking to partner with agent upon whom process against the LLC • Three restrooms within offices existing food/beverage co., as a line extension. may be served. SSNY shall mail a copy of • A-rated landmark building Our Healthier Alternative Beverage any process against the LLC served upon • Exclusive 55-seat screening competes in a Billion dollar category him/her to Mandell, Mandell, Okin & Edelman, against only one other brand. center on premises LLP, 3000 Marcus Ave., Lake Success, NY Please email [email protected] • 24/7 access and security Crain's Classified is not responsible for corruptor 888-423-4141 files submitted & leave call back by client info. or ads11042. run General under purposes the wrong subheading. Serious & timely inquires only please. Contact Kevin Driscoll Notice of Qualification of Bluestone Plaza East, 212-563-6557 x298 LLC. Authority filed with Secy. of State of N.Y. [email protected] (SSNY) on 4/2/08. Office location: NY County. LLC formed in Delaware (DE) on 5/3/07. SSNY PUBLIC & LEGAL NOTICES designated as agent of LLC upon whom Owner/Manager process against it may be served. SSNY shall www. feilorg.com Notice of Qualification of Joffee-333 W. 39 Notice of Formation of 301SG LLC. mail process to: Rivkin Radler LLP, 926 Rex Realty LLC. Authority filed with NY Dept. of Arts. of Org. filed with Secy. of State of Corp Plaza, Uniondale, NY 11556, Attn: State on 4/10/08. Office location: NY County. N.Y. (SSNY) on 11/19/2007. Office loca- Stephen Weissman, Esq. Principal office of MANHATTAN’S TROPHY BUSINESS DISTRICT LLC formed in Delaware (DE) on 11/13/07. tion: NY County. SSNY designated as LLC: 30 Broad St., 33rd Fl., NY, NY 10004. NY Secy. of State designated as agent of LLC agent of LLC upon whom process Arts. of Org. filed with DE Secy. of State, 401 upon whom process against it may be served against it may be served. SSNY shall Federal St., Dover, DE 19901. Purpose: any 200 TH and shall mail process to: c/o Cowan, mail process to: c/o Galster lawful activity. WEST 57Crain'sSTREET Classified is not responsible forLiebowitz corrupt & filesLatman, submitted P.C., 1133 Ave. by of client the or adsManagement, run under 156 the William wrong St., subheading. Ste. 802, At 7th Avenue Americas, NY, NY 10036, Attn: Simon Gerson, NY, NY 10038. Term: until 12/31/2060. CUTLER SOHO, LLC, a domestic Limited Esq. DE address of LLC: c/o The Corporation Purpose: any lawful purpose. Liability Company (LLC) filed with the Sec of 1100 to 6500 Sq. Ft. Trust Co., 1209 Orange St., Wilmington, DE State of NY on 7-28-04. NY Office location: 19801. Arts. of Org. filed with DE Secy. of New York County. SSNY is designated as Office/Medical Notice of Formation Team Love, LLC art. of State, 401 Federal St., Dover, DE 19901. agent upon whom process against the LLC org. filed Secy. of State NY (SSNY) 4/4/08. Space Available Purpose: any lawful activity. may be served. SSNY shall mail a copy of Off. loc. in NY Co. SSNY designated as agent any process against the LLC served upon • A-rated Landmark building directly Notice of Qualification of HLT NY of LLC upon whom process may be served. him/her to The LLC, 115 E. 57th St., NY, NY across from Carnegie Hall ideal for Waldorf LLC. Authority filed with SSNY shall mail copy of process to: attn. 10022. General purposes. both large and small space users Secy. of State of NY (SSNY) on Nathaniel Krenkel, 352 E 13th St, #3, NY, NY 10003. Purpose: Any lawful purpose. • Exclusive high profile address 10/22/07. Office location: NY Notice of Formation of Autoexportology in NY’s most prestigious Midtown County. LLC formed in Delaware Crain's Classified is not responsible forLLC, corrupt Art. of filesOrg. filed submitted Sec'y of State by client(SSNY) or ads run under the wrong subheading. business district (DE) on 9/20/07. SSNY designated Name: ADAM PL0TCH LLC Art. Of Org. Filed 3/6/08. Office location: NY County. SSNY as agent of LLC upon whom process designated as agent of LLC upon whom • High-end turnkey pre-builts with against it may be served. SSNY Sec. Of State NY 4/12/06 Off. Loc.: New York Co. National registered Agents, Inc. designated process against it may be served. SSNY private restrooms, pantry and shall mail process to: c/o shall mail copy of process to 303 Fifth Ave., tenant-controlled HVAC Corporation Service Company, 80 as agent upon whom process against it may be served. SSNY to mail copy of process to Ste. 1016, NY, NY 10016. Purpose: any • Direct subway access State St., Albany, NY 12207. Address lawful activities. Crain's Classified is not responsible forto corrupt be maintained files submitted in DE: c/o by client or adsTHE run LLC, under C/O National the wrong Registered subheading. Agents, • Majestic lobby with 24/7 access Corporation Services Company, 2711 Inc., 875 Avenue Of the Americas, Ste. 501, and security Centerville Rd., Ste 400, Wilmington, NY, NY 10001. Purpose: Any lawful act Notice of Qualification of Onyx DE 19808. Arts. of Org. filed with DE Healthcare, LLC. Authority filed with Contact Kevin Driscoll Secy. Of State, 401 Federal St., Ste Notice of Formation of Planet B-Boy NY Dept. of State on 4/25/08. Office 212-563-6557 x298 4., Dover, DE 19901 . Purpose: any Distribution, LLC. Arts. of Org. filed with NY location: NY County. Principal busi- [email protected] lawful activities. Dept. of State on 4/10/08. Office location: NY ness address: 1660 Pearl St., County. Secy. of State designated as agent of Denver, CO 80203. LLC formed in Delaware (DE) on 6/29/05. NY Secy. Crain's Classified is not responsible for corrupt files submitted by client or ads run under the wrong subheading. Notice of Formation of Strada LLC upon whom process against it may be Owner/Manager served and shall mail process to the principal of State designated as agent of LLC Development LLC, Art. of Org. filed upon whom process against it may www.feilorg.com Sec’y of State (SSNY) 4/9/08. business address: 150 W. 28th St., Ste. 502, NY, NY 10001. Purpose: any lawful activity. be served and shall mail process to: Office location: NY County. SSNY c/o CT Corporation System, 111 8th designated as agent of LLC upon Ave., NY, NY 10011, registered agent whom process against it may be Notice of Formation of HOMESLICE, LLC, a DEVELOPMENT OPPORTUNITY upon whom process may be served. ENTREPRENEURS WANTED served. SSNY shall mail copy of domestic LLC. Arts. of Org. filed with the DE address of LLC: The Corporation process to 331 W. 57th St., Ste. SSNY on 01/09/08. Office location: NY South Fallsburg, NY/ Echo Lake Trust Co., 1209 Orange St., 301, NY, NY 10019. Purpose: any County. SSNY has been designated as agent Wilmington, DE 19801. Arts. of Org. 215 acres of raw land. 20 acres of lake Never Been Done Before lawful activities. upon whom process against the LLC may be filed with DE Secy. of State, 401 frontage and a total of 140 acres of $28K in Days not Weeks served. SSNY shall mail a copy of process to: Federal St., Dover, DE 19901. developable property and is zoned Rec 1. App. for Authority of Mondottica LLC was filed Hayden Lockaby, 24 West 76th St., Apt. BR, Purpose: any lawful activity. Across from Tarre Brai Golf course. 5 …simply returning phone calls. 11/2/07. LLC organized 10/4/07 in Delaware. NY, NY 10023. Purpose: Any Lawful Purpose. No Selling! No Explaining! Principal office location: 55 Greene St., PH6, miles from the Concord. Multiple future No Convincing! development opportunities. NY, NY 10013, NY County. Sec. of State of NY BROADVIEW ADVISORS LLC Articles of 9 SQUARED ENTERTAINMENT, LLC Articles “I received $34K Cash to my front door of Org. filed NY Sec. of State (SSNY) 4/15/08. Call Harvey: 973-736-4434 is designated as agent for service of process Org. filed NY Sec. of State (SSNY) 3/4/08. in my first 3 weeks!”-Joe, CA. against LLC and shall mail a copy to Leonard Office in NY Co. SSNY desig. agent of LLC Office in NY Co. SSNY desig. agent of LLC “My best week since joining the program Witman, Esq., Witman Stadtmauer, P.A., 26 upon whom process may be served. SSNY upon whom process may be served. SSNY is $17,000” Single Mom-Anne, WA Columbia Tpke, Florham Park, NJ 07932. shall mail copy of process to 45 W. 21st St., To place your classified ad call shall mail copy of process to 66 Leonard 888-593-8287 rec-msg Copy of formation documents filed w/Sec. of St., Ste. 7B, NY, NY 10013, which is also Ste. 401, NY, NY 10010, which is also the John Gallagher @ 212-210-0189 Private gifting, allowed by State of DE, 401 Federal St., Ste. 3, Dover, DE the principal business location. Purpose: principal business location. Purpose: Any IRS tax codes 19901. Purpose of LLC: any lawful activity. Any lawful purpose. lawful purpose.

32 | Crain’s New York Business | May 19, 2008 nb20p32_33cls.qxp 5/15/08 4:16 PM Page 33

PUBLIC & LEGAL NOTICES

Notice of Formation of Quik Park West 62nd Notice of Formation of The Levinsohn Family Notice of Qualification of Heritage Education Notice of Formation of YESH CONSULTANTS Notice of Qualification of ELK Central St. LLC. Arts. of Org. filed with Secy. of State II Limited Partnership. Certificate filed with and Festivals, LLC. Authority filed with NY LLC. Arts. of Org. filed with Secy. of State of Properties Orchard LLC. Authority filed with of N.Y. (SSNY) on 3/17/08. Office location: NY Secy. of State of NY (SSNY) on 3/31/08. Dept. of State on 3/14/08. Office location: NY N.Y. (SSNY) on 3/31/08. Office location: NY Secy. of State of N.Y. (SSNY) on 3/18/08. County. SSNY designated as agent of LLC upon Office location: NY County. SSNY designated County. Principal business address: 2650 S. County. SSNY designated as agent of LLC Office location: NY County. LLC formed in whom process against it may be served. as agent of LP upon whom process against it Decker Lake Blvd., Ste. 200, West Valley, UT upon whom process against it may be served. Delaware (DE) on 3/14/08. SSNY designated SSNY shall mail process to: The LLC, 247 may be served. SSNY shall mail process to: 84119. LLC formed in Delaware (DE) on SSNY shall mail process to: 220 Riverside as agent of LLC upon whom process against W. 37th St., NY, NY 10018. Purpose: any The Partnership, 80 8th Ave., Ste. 1107, NY, 9/16/99. NY Secy. of State designated as Blvd., Apt. #38B, NY, NY 10069. Purpose: any it may be served. SSNY shall mail process to lawful purpose. NY 10011. Name/address of each genl. ptr. agent of LLC upon whom process against lawful activity. principal business location: ELK Investors, 489 available from SSNY. Term: until 4/1/2108. it may be served and shall mail process to: Fifth Ave., 7th Fl., NY, NY 10017. DE address Notice of Qualification of Silver Lake Windward Purpose: any lawful activities. c/o CT Corporation System, 111 8th Ave., Notice of Formation of GEMJ Intimate of LLC: c/o Corporation Service Company, Diversified Aggressive Fund, L.P. Authority NY, NY 10011, registered agent upon whom Apparel LLC. Arts. of Org. filed with NY 2711 Centerville Road, Ste. 400, Wilmington, process may be served. DE address of LLC: DE 19808. Arts. of Org. filed with DE Secy. of filed with NY Dept. of State on 4/4/08. Office Notice of Qualification of docuMATCH, LLC. Dept. of State on 4/24/08. Office location: The Corporation Trust Co., 1209 Orange St., State, 401 Federal St., Dover, DE 19901. location: NY County. Principal business address: Authority filed with NY Dept. of State on NY County. Principal business address: Wilmington, DE 19801. Arts. of Org. filed Purpose: any lawful activity. 2775 Sand Hill Rd., Menlo Park, CA 94025. 4/4/08. Office location: NY County. LLC 1407 Broadway, Ste. 504, NY, NY 10018. with DE Secy. of State, 401 Federal St., Dover, LP formed in Delaware (DE) on 1/30/08. NY formed in Delaware (DE) on 4/1/08. NY Secy. Secy. of State designated as agent of LLC DE 19901. Purpose: any lawful activity. Secy. of State designated as agent of LP upon of State designated as agent of LLC upon upon whom process against it may be NOTICE OF FORMATION OF LIMITED LIABIL- whom process against it may be served and whom process against it may be served and served and shall mail process to: Seltzer ITY COMPANY. NAME: 25 WA ASSOCI- shall mail process to: c/o CT Corporation shall mail process to the principal business Notice of Formation of Global Design Strategies Sussman & Habermann LLP, 100 Jericho ATES,LLC. Articles of Organization were filed System, 111 8th Ave., NY, NY 10011, registered with the Secretary of State of New York address: 1221 Ave. of the Americas, NY, NY LLC. Arts. of Org. filed with NY Dept. of State Crain'sQuadrangle, Classified Jericho, isNY not11753. responsible Purpose: for corrupt files submitted by client or ads run under the wrong subheading. agent upon whom process may be served. DE 10020. DE address of LLC: The Corporation on 4/1/08. Office location: NY County. Secy. of any lawful activity (SSNY) on 12/12/06. Office location: New address of LP: The Corporation Trust Co., Trust Co., 1209 Orange St., Wilmington, DE State designated as agent of LLC upon whom York County. SSNY has been designated as 1209 Orange St., Wilmington, DE 19801. 19801. Arts. of Org. filed with DE Secy. of process against it may be served and shall agent of the LLC upon whom process against Name/address of genl. ptr. available from State, 401 Federal St., Dover, DE 19901. mail process to the principal business address: Notice of Formation of Compound Ventures it may be served. SSNY shall mail a copy of NY Secy. of State. Cert. of LP filed with DE Purpose: any lawful activity. c/o Michael D. Kirchmann, 75 Rockefeller Pl., IV, LLC. Arts. of Org. filed with Secy. of State process to the LLC, 15 Washington Avenue, Secy. of State, 401 Federal St., Dover, DE 20th Fl., NY, NY 10019, registered agent upon of N.Y. (SSNY) on 4/17/08. Office location: Brooklyn, New York 11205. Purpose: For any lawful purpose. 19901. Purpose: any lawful activity. NOTICE OF FORMATION of The Burlesque whom process may be served. Purpose: any NY County. SSNY designated as agent of Lingerie Company L.L.C. Arts. of Org. filed lawful activity. LLC upon whom process against it may be Notice of Qualification of ELK 33 East 33rd with the Secretary of State of NY(SSNY) on served. SSNY shall mail process to: c/o NOTICE OF FORMATION of LLC. Authority filed with Secy. of State of 1/14/08. NY office location: NY County. SSNY Notice of Formation: Solar Smart, LLC (LLC) Roosevelt Management Inc., 2500 Wilcrest OverUnder Records LLC. Arts. Of N.Y. (SSNY) on 3/18/08. Office location: NY has designated as agent upon whom process Arts. of Org. Filed with the Sec.of State NY Drive, Ste. 200, Houston, TX 77042. Org. filed with Secy. Of State of N.Y. (SSNY) on 2/11/08. Office location: County. LLC formed in Delaware (DE) on against it may be served and shall mayprocess (SSNY) on 4/8/2008. NY Office Location: Purpose: any lawful purpose. 3/14/08. SSNY designated as agent of LLC New York County. SSNY Desig. Agent of LLC New York County. SSNY designated to : Business Filings Inc., 187 Wolf Rd. Suite Crain's Classified is not responsible foras corrupt agent of files LLC submitted upon whom by process client or ads run under the wrong subheading. upon whom process against it may be 101, Albany N.Y.12205.The principal business upon whom process against it may be Name of Foreign LLC: FOIS-GP, LLC. App. for served. SSNY shall mail process to principal against it may be served. SSNY shall address of the LLC: 244 5th Ave., Suite P236, served. SSNY to mail copy of process to Auth. filed NY Dept. of State: 3/28/08. Jurisd. mail process to: 151 First Avenue, business location: ELK Investors, 489 Fifth NY, NY 10001. Purpose: any lawful act. LLC at 224 West 30th St., Suite 403, New and date of org.: DE 3/27/07. NY State office Ave., 7th Fl., NY, NY 10017. DE address of Suite 36, NY, NY 10003. Principal York, NY 10001-4905. Purpose: any lawful loc.: NY County. Princ. bus. loc. of LLC: 230 business location: 151 First Avenue, LLC: c/o Corporation Service Company, 2711 NOTICE OF FORMATION OF E.K. Wallace purpose. Park Ave, Ste. 610, NY, NY 10169. SSNY has Centerville Road, Ste. 400, Wilmington, DE Suite 36, NY, NY 10003. Purpose: Securities LLC. Article of Organization filed been designated as agent of LLC upon whom Any lawful activity. 19808. Arts. of Org. filed with DE Secy. of with the Secretary of State of NY (SSNY) on Notice of Formation of INNOVA CREATIVE process may be served. SSNY shall mail State, 401 Federal St., Dover, DE 19901. 12/18/07 Office location NEW YORK County. SERVICES LLC. Arts. of Org. filed with Secy. copy of process to the LLC, c/o Gnosis Purpose: any lawful activity. SSNY has been designated as agent upon of State of NY (SSNY) on 04/14/08. Office Notice of Formation of CHILAOS, LLC. Advisors, LLC, 230 Park Ave., Ste. 610, NY, Arts. Of Org. filed with Secy. Of State whom process against it may be served. The location: NY County. SSNY designated as NY 10169, Attn: Joseph Augustine. Addr. of Post Office address to which the SSNY shall agent of LLC upon whom process against it of NY (SSNY) on 4/23/08. Office loca- Notice of Qualification of OMG Projects, LLC. foreign LLC in DE is: 615 South DuPont tion: NY Co. SSNY designated as agent Authority filed with Secy. of State of N.Y. mail a copy of any process against the LLC may be served. SSNY shall mail process to: Hwy., Dover, DE 19901. Auth. officer in DE served upon him/her is C/O the LLC 270 c/o Elisabeth M. Kovac, Esq., 90 Park Ave., of LLC upon whom process against it (SSNY) on 3/26/08. Office location: NY County. where Cert. of Form. filed is DE Sec. of may be served. SSNY shall mail LLC formed in Delaware (DE) on 3/17/08. Lafayette Street, Suite 1301. New York, NY Ste. 1710, NY, NY 10016. Purpose: any State, Townsend Bldg., Dover, DE 19901. 10012. Purpose of LLC: to engage in any lawful activity. process to: The LLC, 37-01 Main SSNY designated as agent of LLC upon whom Purpose: any lawful activity. Street. Flushing NY 11354. Purpose: process against it may be served. SSNY shall lawful act or activity. Street address of Principal any lawful activities. mail process to: 777 Sixth Ave., #31D, NY, NY Business location is: 270 Lafayette Street, Notice of Qualification of Tandem Global Emerging Markets Fund, L.P. Authority filed NOTICE OF FORMATION OF LIMITED 10001. DE address of LLC: 615 South Dupont Suite 1301. New York, NY 10012. LIABILITY COMPANY. NAME: R & C 529 Hwy., Dover, DE 19901. Arts. of Org. filed with with NY Dept. of State on 4/22/08. Office NOTICE OF FORMATION of RBR Technology location: NY County. LP formed in Delaware LLC. Articles of Organization were filed with LLC. Arts. Of Org. filed with Secy. Of State of DE Secy. of State, P.O. Box 898, Dover, DE Notice of Qualification of Legallylooking.com the Secretary of State of New York(SSNY) 19903. Purpose: any lawful act or activity. (DE) on 3/26/08. NY Secy. of State designat- N.Y. (SSNY) on 1/07/08. Office location: New LLC. Authority filed with Secy. of State of N.Y. ed as agent of LP upon whom process Crain'son 04/03/08. Classified Office location: is not New responsible York forYork corrupt County. files SSNY submitted designated as by agent client of or ads run under the wrong subheading. (SSNY) on 3/18/08. Office location: NY against it may be served and shall mail County. SSNY has beendesignated as agent LLC upon whom process against it may be Notice of Formation of P.S. 157 Lofts, LLC. County. LLC formed in Delaware (DE) on process to: c/o CT Corporation System, 111 of the LLC upon whom process against it served. SSNY shall mail process to: 460 Arts. of Org. filed with NY Dept. of State on 3/4/08. SSNY designated as agent of LLC 8th Ave., NY, NY 10011, registered agent may be served.SSNY shall mail a copy of West 24th Street, #7B, NY, NY 10011. 3/25/08. Office location: NY County. Secy. upon whom process against it may be served. upon whom process may be served. DE process to the LLC, c/o Richard Gershuny, Principal business location: 460 West 24th of State designated as agent of LLC upon SSNY shall mail process to principal business address of LP: The Corporation Trust Co., 260 West 54th Street, Apartment 31J, New Street, #7B, NY, NY 10011. Purpose: Any whom process against it may be served and location: c/o Mr. Byron M. Henderson, 138 W. 1209 Orange St., Wilmington, DE 19801. York, New York 10019. Purpose: For any lawful activity. Crain'sshall mail Classified process to the is notprincipal responsible business for133rd corrupt St., #2C, files NY, submitted NY 10030. DE by address client of or adsName/address run under of thegenl. wrongptr. available subheading. from NY lawful purpose. address: c/o Bluestar Properties, 31 E. 32nd LLC: c/o Corporation Service Company, 2711 Secy. of State. Cert. of LP filed with DE Secy. Centerville Road, Ste. 400, Wilmington, DE Notice of Qualification of GCP (JPM) St., 12th Fl., NY, NY 10016. Purpose: any of State, 401 Federal St., Dover, DE 19901. Notice of Formation of Primeiro Productions Investments, LLC. Authority filed lawful activity. 19808. Cert. of Form. filed with DE Secy. of Purpose: any lawful activity. LLC. Arts. of Org. filed with Secy. of State of with NY Dept. of State on 3/18/08. State, Townsend Bldg., Dover, DE 19901. NY (SSNY) on 01/23/08. Office location: NY Office location: NY County. LLC Notice of Formation of 1510 SOUTHERN Purpose: information services and any other County. Principal business location: c/o formed in Delaware (DE) on 6/6/05. BOULEVARD RESIDENCE, L.P. Certificate purposes permitted by applicable law. Notice of Formation of LIFE JUNCTIONS LLC. Levine Plotkin & Menin, LLP, 1740 Broadway, Arts. of Org. filed with Secy. of State of NY NY Secy. of State designated as filed with Secy. of State of N.Y. (SSNY) on 22nd Fl., NY, NY 10019. SSNY designated as agent of LLC upon whom process December 20, 2007. Office location: New York (SSNY) on 3/12/08. Office location: NY agent of LLC upon whom process against it Notice of Formation of Alvo Realty, LLC. County. SSNY designated as agent of LLC against it may be served and shall County. SSNY designated as agent of LP Arts. of Org. filed with Secy. of State of may be served. SSNY shall mail process to: mail process to the principal busi- upon whom process against it may be served. upon whom process against it may be served. The LLC, 135 Central Park West, 6N, NY, NY NY (SSNY) on 4/10/08. Office location: SSNY shall mail process to principal business ness address: c/o Greenhill & Co., SSNY shall mail process to: The Partnership, NY County. SSNY designated as agent Crain's10023. Purpose: Classified any lawful is not activity. responsible forLLC, corrupt 300 Park files Ave., submitted 23rd Fl., by NY, client NY or ads run under the wrong subheading. 2212 Third Ave., New York, NY 10035. location: 315 W. 70th St., #15L, NY, NY 10023, upon whom process against it may be Attn: Stacy S. Kim, registered agent upon 10022. DE address of LLC: c/o The Name/address of each genl. ptr. available from served. SSNY shall mail process to c/o: Corporation Trust Co., 1209 Orange SSNY. Term: until 12/31/2057. Purpose: any whom process may be served. Purpose: any Notice of Formation of VHSOURCE LLC, a Alvo Realty, LLC, 115 W. 73rd St., NY, lawful activity. St., Wilmington, DE 19801. Cert. of lawful activity. NY 10023. Purpose of LLC: Any lawful domestic Limited Liability Company. Arts. Form. filed with DE Secy. of State, activity. of Org. filed with the SSNY on 03/07/08. 401 Federal St., Dover, DE 19901. Notice of Qualification of Generation Repair and Notice of Qualification of The Catalyst Office location: NY County. SSNY has been Purpose: any lawful activity. Service, LLC. Authority filed with NY Dept. of Distressed Mortgage Fund, L.P. Authority filed designated as agent upon whom process NOTICE OF FORMATION of Clementine against the LLC may be served. SSNY shall State on 4/14/08. Office location: NY County. with NY Dept. of State on 4/11/08. Office Name of LLC: V AGENCY LLC. Principal business address: 700 Universe Blvd., Consignment LLC. Arts. Of Org. filed with location: NY County. LP formed in Delaware mail a copy of process to: The LLC, 302 West Secy. Of State of N.Y. (SSNY) on 4/04/08. 105th Street, #3C, NY, NY 10025. Purpose: Articles of Org. filed Dept. of State Juno Beach, FL 33408. LLC formed in (DE) on 4/1/08. NY Secy. of State designated of NY on 4/9/08. Office location in Delaware (DE) on 4/8/08. NY Secy. of State Office location: New York County. SSNY des- as agent of LP upon whom process against it Any Lawful Purpose. ignated as agent of LLC upon whom process NY: New York County. Principal bus designated as agent of LLC upon whom may be served and shall mail process to the loc.: 11 Mercer Street, NY, NY process against it may be served and shall against it may be served. SSNY shall mail principal business address: 767 3rd Ave., Notice of Formation of KFC Properties LLC, process to: 39 1/2 Washington Square 10013. Secy. of State designated as mail process to: c/o CT Corporation System, 32nd Fl., NY, NY 10017. DE address of LP: 15 Crain'sArt. of Org. Classified filed Sec'y isof notState responsible (SSNY) foragent corrupt of LLC files upon submitted whom process by client or ads run under the wrong subheading. 111 8th Ave., NY, NY 10011, registered agent South, NY, NY 10012. Principal business E. North St., Dover, DE 19901. Name/address 2/6/08. Office location: NY County. SSNY against it may be served. Sec. of upon whom process may be served. DE location: 39 1/2 Washington Square South, of genl. ptr. available from NY Secy. of State. designated as agent of LLC upon whom State shall mail a copy of process address of LLC: 1209 Orange St., Wilmington, NY, NY 10012. Purpose: Any lawful activity. Cert. of LP filed with DE Secy. of State, 401 process against it may be served. SSNY to National Corporate Research, DE 19801. Arts. of Org. filed with DE Secy. of Federal St., Dover, DE 19901. Purpose: any shall mail copy of process to Attn: Charlie Ltd., 10 East 40th Street, 10th State, 401 Federal St., Dover, DE 19901. Notice of Qualification of MQS Capital lawful activity. Gammal, 1407 Broadway, NY, NY 10018. Floor, New York, NY 10016. Purpose: any lawful activity. Partners, LP, App. for Auth. filed Sec'y of Purpose: any lawful activities.. Purpose: any lawful activity. State (SSNY) 3/13/08. Office location: NY Notice of Qualification of Locust Wood Select Notice of Formation of Global Brand Licensing, County. LP org. in DE 3/11/08. SSNY desig- Capital Management, LLC. Authority filed with Notice of Formation of CUSHNIE ET OCHS, NOTICE OF FORMATION of FLOE LLC. Arts. of Org. filed with NY Dept. of State nated as agent of LP upon whom process Secy. of State of N.Y. (SSNY) on 2/25/08. LLC. Arts. of Org. filed with Secy. of State VENTURES LLC. Arts. Of Org. filed on 12/10/07. Office location: NY County. Principal against it may be served. SSNY shall mail Office location: NY County. LLC formed in of NY (SSNY) on 3/5/08. Office location: NY with Secy. Of State of N.Y. (SSNY) business address: 1357 Broadway, #236, NY, copy of process to Attn: Neal Berger, 171 Crain'sDelaware (DE) Classified on 2/7/08. is SSNY not designated responsible forCounty. corrupt Principal files business submitted location: by client124 W. or adson run4/29/08. under Office the wronglocation: subheading. New NY 10018. Secy. of State designated as agent Madison Ave., Ste. 1300, NY, NY 10016. as agent of LLC upon whom process against 36th St., Ste. 501, NY, NY 10018. SSNY York County. SSNY designated as of LLC upon whom process against it may be DE office addr.: 1220 N. Market St., it may be served. SSNY shall mail process to: designated as agent of LLC upon whom agent of LLC upon whom process served and shall mail process to: Winne, Wilmington, DE 19801. Cert. of LP on file: 1540 Broadway, Ste. 1504, NY, NY 10036. process against it may be served. SSNY against it may be served. SSNY shall Banta, et al, P.C.,Gary S. Redish, Esq., PO Box SSDE, Townsend Bldg., Dover, DE 19901. DE address of LLC: 1209 Orange St., shall mail process to: c/o Edmonds & Co., mail process to: 190 E 72nd St., Unit 647, 21 Main St.,1st Fl., East Wing,Hackensack, Name/addr. of each gen. ptr. avail. at Wilmington, DE 19801. Cert. of Form. filed P.C., 112 Madison Ave., 3rd Fl., NY, NY 17-D, NY, NY 10021. Principal busi- NJ 07602. Purpose: any lawful activity. SSNY. Purpose: any lawful activities. with DE Secy. of State, P.O. Box 898, Dover, 10016. Purpose: any lawful activity. ness location: 23 E 10th St., Unit DE 19903. Purpose: all lawful purposes. 711, NY, NY 10003. Purpose: Any To place your Notice of Formation of Catalyst Advisors LLC. Notice of Formation of CORONA lawful activity. Arts. of Org. filed with NY Dept. of State on Notice of Formation of SPEARPOINT CAPITAL SPORTS CAF…, LLC Arts. Of Org. 4/2/08. Office location: NY County. Principal MANAGEMENT, LLC. Arts. of Org. filed with filed with Secy. Of State of NY Notice of Formation of 544 UNION OWNER classified ad business address: 205 E. 59th St., Apt. 21C, NY, Secy. of State of N.Y. (SSNY) on February 22, (SSNY) on 4/23/08. Office location: LLC. Arts. of Org. filed with Secy. of State of NY 10022. Secy. of State designated as agent of 2008. Office location: New York County. SSNY NY Co. SSNY designated as agent of N.Y. (SSNY) on 12/8/06. Office location: NY LLC upon whom process against it may be designated as agent of LLC upon whom LLC upon whom process against it County. SSNY designated as agent of LLC call John Gallagher served and shall mail process to: Nancy C. process against it may be served. SSNY shall may be served. SSNY shall mail upon whom process against it may be served. McDonald, Esq., c/o McDonald Law Group, mail process to: The LLC, 245 Park Avenue, process to: The LLC, 37-01 Main SSNY shall mail process to principal business LLC, 25-A Hanover Rd., Ste. 320, Florham Park, Suite 39041, New York, NY 10167. Purpose: Street. Flushing NY 11354. Purpose: location: The LLC, 70 W. 93rd St., Ste. 100, @ 212-210-0189 NJ 07932. Purpose: any lawful activity. any lawful activity. any lawful activities. NY, NY 10025. Purpose: any lawful activity.

May 19, 2008 | Crain’s New York Business | 33 CNYB 05-19-08 A 34 5/15/2008 8:03 PM Page 1

SMALL BUSINESS

buy—its offerings. Forty people Record stores find ways to play on show up most weeks. Co-owner Joe D’Espinosa sees it as a way to provide a brick-and- the brick-and-mortar envelope. not only lists CDs and LPs on its mortar shopping experience with- Focus on niche Etherea Records on Avenue A on THINGS OF PAST? Web site but also offers a download- out paying high, New-York style, music, adopt online the Lower East Side is focusing its Independent record stores in NYC. ing service for tunes not carried by rents for a retail storefront. He says energies on a very specific musical the major channels. the firm has enjoyed 20% sales strategies to keep niche: emerging overseas artists in 2003 2008 growth for each of the past eight Popular open house customers coming electronica and dance. The store MANHATTAN 93 45 months. showcases acts including Germany’s one retailer, Downtown304, “It’s all about meeting with Coloma and the Congo’s Konono BROOKLYN 72 40 doesn’t even have a store. Most sales people who are passionately con- BY TOMMY FERNANDEZ No. 1. That specialization gives Source: Almighty Institute of Music Retail come via the company’s site.The site nected to their music,” observes Etherea credibility with most of the also promotes Wednesday open Mr.D’Espinosa.“We try to stay fo- ew york record store bands and labels in this niche,allow- houses at the retailer’s warehouse on cused on that.” owners held a party last ing the store access to recordings sel- find online. A prime example is the Hudson and Spring streets, where month to celebrate the dom seen on mainstream sites,much underground campaign by Mr. customers can paw through—and COMMENTS? [email protected] first-ever national less in brick-and-mortar stores.The Madell’s Other Music. Record Store Day.The availability of unique recordings fu- The store offers fans a variety of festivities raised daily sales for some els loyalty from serious fans. insider experiences. It regularly N TUESDAY DEADLINE retailers by as much as 50%. hosts concerts and events led by up- Too bad about the other 364 days Profitable items and-coming artists. Other Music of the year, during which more and etherea’s cd margins are slim, also maintains a site featuring SEEKING TOP ENTREPRENEURS IN NYC more people are turning to the new however. The real money comes newsletters, reviews and videos of CRAIN’S NEW YORK BUSINESS seeks nominations for its 13th The Latins top seller of music in America, from the other items the store fea- exclusive in-store performances. In annual Small Business Awards. The six winners will have iTunes. tures to supplement fans’ listening addition, the store offers Live at distinguished themselves by showing a pattern of growth in their “There is a big question of what experience. That list includes Other Music videos that include in- businesses and contributing to their communities’ quality of life. record stores in New York will turntables, headphones and depth interviews with performers. Firms must be for-profits that have been in business for at least be like 10 years from other audio accessories. These efforts give Other Music three years. They must employ no more than 150 now,” says Josh Madell, The store also offers two key marketing advantages. The people, have annual sales of no more than $40 million J. Siminoff co-owner of Village- vintage vinyl, which store is seen as a vital resource for and be headquartered in New York City. Companies can based Other Music, remains a hot com- getting up-close and personal with nominate themselves or they can be nominated by a “if they survive at modity for some underground bands. Patrons also business contact. The entry deadline is noon on all.” customers, accord- have a feeling of empowerment be- D. Arora May 20. Winners will be profiled in the Aug. 11 issue. Over the past ing to owner cause their dollars are supporting five years, 48 in- Richard Kim. these bands. To nominate a business, send its name, address and D. Stovall dependents have “I have to do “You can’t just sell music any- a letter detailing its commercial and civic accomplish- closed in Manhattan everything you can to more and make a living,” says Joel ments to Crain’s Small Business Awards, 711 Third Ave., New York, alone, according to market re- cater to a shrinking pool of music Oberstein, president of the NY 10017. The information can also be e-mailed to searchers Almighty Institute of lovers,” he says. “I have to make Almighty Institute.“You have to di- T. Balsley [email protected] or faxed to (212) 210-0799. Music Retail. them feel like that they can find versify—make yourself into a pop Last year’s honorees included Stacey Bendet of clothier Alice + To survive the next five years, what they need here and nowhere culture hub.” Olivia; Darryl Stovall Sr. of contractor D&S Electrical; and Thomas stores are rethinking what they sell else.” Many of New York’s indies are Balsley, whose eponymous firm has designed scores of parks. Other and how they interact with their Other stores are battling to re- embracing the Internet as another winners were Dhiraj Arora, whose Arora Creations sells Indian spices; customers. Some are also adopting gain their cachet with the musical channel for hawking their wares. Ellen and Eric Latin, who turned Dundy Glass & Mirror into a state- many online strategies used by their cognoscenti. They are offering fans Virtually everything Etherea sells S. Bendet of-the-art outfit; and James Siminoff of voice-to-text firm SimulScribe. e-competitors in an effort to push more access to bands than they can can be ordered online. Other Music

thing they can to put pressure on her, but anyone who knows her Health union’s strike a flash point knows that kind of stuff just gets her back up.” Ms. Sieger did not return a call Sieger to pay the $2.7 million she seeking comment. She is running Sen. Obama among owes the benefit fund and sign a the 400-bed home with replace- supporters of 1199’s union contract. Sen. Charles ment workers from an employment Schumer, Rep. Anthony Weiner agency. battle against Bronx and City Council Speaker Christine Quinn spoke at a rally earlier this Making do nursing home owner month at the nursing home. the impasse has left workers such And Sen. Barack Obama as Cynthia Burrell, a certified nurs- BY DANIEL MASSEY phoned in to the picket line to tell es’ aide, scrambling to make do. For the workers that they would “have a the first months of the strike, each a small nursing home in the friend in the White House” after worker was given $400 a week in Bronx is attracting an outsize November’s election. strike pay. More recently, they have amount of attention. Mr. Gresham sent a letter asking been able to collect unemployment. A U.S. senator and two mayoral Attorney General Andrew Cuomo But without benefits, it is hard hopefuls have hit the picket lines, to investigate two charities that Ms. for them to get by. Ms. Burrell, 65, and a presidential candidate has Sieger runs, as well as hundreds of has diabetes. She has skipped her added his voice to the growing cho- thousands of dollars in state grants regular doctor’s appointments, paid rus demanding that health benefits that the union contends she misap- out-of-pocket for blood pressure be restored to the 220 workers at the propriated. A spokesman for the at- medication and postponed her an- Kingsbridge Heights Rehabilita- torney general would say only that nual mammogram.

tion and Care Center, in the north- buck ennis the office has received and reviewed “You go to the doctor, the first west Bronx. The facility’s employ- 1199 PRESIDENT George Gresham says the stoppage involves practicalities and principles. the letter. The entire Bronx delega- thing they ask is,‘What kind of ben- ees, who are members of 1199 tion to the state Legislature wrote efits do you have?’ ” she says. “We SEIU, walked off their jobs Feb. 20 Health Commissioner Dr. Richard have none at all.” after owner Helen Sieger stopped “If we cave in to her, how do we pay.Mr.Gresham,a former hospital Daines, asking him to intervene. The workers say they would paying into their benefit fund. justify it to all of the other employ- housekeeper, says that the strike has Joel Cohen, who was Ms. rather be taking care of patients but The union is pulling out all the ers who have lived up to the stan- been the toughest challenge he has Sieger’s attorney until they mutual- believe there is a principle at stake. stops to win a battle it says is critical dards and continued to pay?” asks faced since taking over from Dennis ly agreed to part ways after the first “We’re setting examples for oth- to maintaining standards for 40,000 1199 President George Gresham. Rivera last June. few weeks of the strike, says the er nursing homes,” says CNA workers at 240 nursing homes in the “How do they remain competitive?” union’s tactics may backfire. Paulette Cameron. “That’s why we New York area. The Kingsbridge The work stoppage has already Pressure tactics “The way they play hardball with can’t give up.” members have been without a con- cost the union nearly $1 million, the powerful union is lining up other people isn’t going to work with tract since 2002. much of which went toward strike allies in an attempt to pressure Ms. her,” he says. “They’re doing every- COMMENTS? [email protected]

34 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 35 5/15/2008 6:54 PM Page 1

GETAWAYS BUSINESS INSIDE Memorial CANDY MAN Day Topps veteran frolicking rises to the next weekend marks the top unofficial arrival of summer. PAGE 37 To welcome it, try some of the following fun spots, which offer discount packages and still have rooms available. DUDE RANCHIN’ Before it gets too hot, put on those spurs and visit the 100 Acres Ranch Resort, located in Stony Creek, N.Y., an hour north of Albany.The resort provides three nights’ Fitting to a tee lodging and nine meals for $299 a person, along with activities that include

istockphotos horseback riding, fishing and kayaking. (800) 458-7311. ENJOY MOUNTAIN AIR What better way to start the season than a hot dog roast? Fun at Daniels Top-O-The-Poconos ranges from softball and boccie to hayrides and fishing. The price for the three-night, six-meal package is $185 a person. (570) 595-7531. GO LAKESIDE Take in some fresh air and fresh views at Lake George. About a four- hour drive from the city, Surfside on the Lake has a GOING HOLE HOG: three-night cabin package for Lawyer Murrey $700.The price includes three Targownik frequents breakfasts and a choice of Van Cortlandt and the nearby attractions like city’s other Bronx miniature golf, go-carts and a courses. tour of Fort Ticonderoga or natural caves. (800) 342-9795. SEE AN AEROBATICS SHOW Check out the U.S. Navy’s ConvenientConvenient citycity Blue Angels jet team, performing at Jones Beach on courses please, Saturday and Sunday. courses please, Courtyard by Marriott in Farmingdale, L.I., offers a butbut areare notnot $219 one-night special, coolcool forfor clientclient outingsoutings THE STATS

BY AARON ELSTEIN getty images WHEN THEY WEREN’T 12CITY COURSES having pie fights or poking each other in including breakfast and the eyes, the Three Stooges were serious New York golfers. drink coupons, for two. Their favorite venue: the Van Cortlandt Park golf course in Complimentary shuttle to the the Bronx, where Moe, Larry and Curly all have holes named American Airpower Museum. in their honor. (631) 847-0010. That’s one reason why Van Cortlandt is also the favorite CITY DRIVING6 RANGES SUNSET ON THE BEACH Start course of Ari Milstein.The fact that it’s just a few minutes from the season right by relaxing on home helps, too. RATES FOR 18 HOLES* the sand.The Blue Bay Inn of Mr. Milstein is so committed to golf that he stopped by the Mon.-Fri., before noon $33.25 Atlantic Highlands, N.J., a course one recent cold, damp Friday at 7:30 a.m. to play a few classic Jersey Shore town, Mon.-Fri., holes before heading to work. Tuning out the din of the Major at or after noon $28.75 charges $209 a night, with a Deegan Expressway, which parallels the course, and surveying the two-night minimum.The scene for early risers who might try to steal his golf balls, Mr. Sat.-Sun. and holidays $41.00 hotel is just 40 minutes from *Sample non-twilight rates for NYC residents Manhattan via the SeaStreak Milstein reflected on the unlikely sanctuary at the end of with permits. ferry. (732) 708-9600. See CITY COURSES on Page 36 —adrianne pasquarelli buck ennis

May 19, 2008 | Crain’s New York Business | 35 CNYB 05-19-08 A 36 5/15/2008 8:13 PM Page 1

BUSINESS LIVES GETTING GREENS IN THE PINK ASK ANY GOLFER what it was like to play at the city’s courses a City courses fit golfers to a tee generation ago, and you’ll be regaled with stories of abandoned cars in bunkers and dead bodies on the fairways. (The Continued from Page 35 grounds in good shape with an an- who also frequents Van Cortlandt remote 10th hole at Van Cortlandt was a favorite dumping the No. 1 subway line. nual budget of just $140,000—or,as and the other municipal courses in ground.) “There’s history here,the price is Mr. DeFranco puts it, “about as the Bronx—is passionate about During the 1970s, the city was losing thousands of good, and the fairways and greens much as they spend to pick up the whacking a few dozen balls at Ran- dollars a month on its courses, recalls Bill Castner, a are kept in great shape,”said Mr.Mil- pine needles at Augusta.” dall’s Island after work. longtime advocate for New York’s golf courses and co- stein,the director of planning and de- “You can’t beat the location,” he velopment for Automotion Parking Popular with putters says. “And I do some of my best author of the blog GolfInNYC.com. The situation began to Systems.“And this is my backyard.” he estimates that 75,000 rounds thinking there.” change during the Koch administration, when the city Unbeknownst to many New are played at Dyker Beach per year, Gus Roessler, a managing direc- started leasing its courses to private operators. The Yorkers, the city is home to 12 pub- 25% more than at the famous Peb- tor at Morgan Stanley,also says that courses got another boost when Rudy Giuliani picked up licly owned, privately maintained ble Beach course.The Brooklyn lo- smacking a few dozen balls at Ran- the game. golf courses. They have never been cation attracts people from all over dall’s Island helps him unwind at Improvements have continued under Mayor Michael in better shape,thanks in part to two the borough, including members of the end of the day. However, he Bloomberg (right), whose administration in 2004 golf-loving Republican mayors who the Korean American Grocers As- largely avoids the public courses, embarked on a $45 million renovation program, in- have directed millions of dollars to sociation, who enjoyed an outing preferring to play at the private cluding adding dining facilities and other amenities.

install irrigation systems and make earlier this month. Maidstone Club in East Hampton, bloomberg news other improvements.This year,ren- Several public courses are within L.I., where he can waltz through a ovated clubhouses and dining facil- walking distance of subway stops, round in four hours or less. In con- wouldn’t dare bring a client. used to belly up to the clubhouse bar. ities are coming on line to attract a and all charge fees that are a fraction trast, it can take as long as six hours “I wouldn’t do that any more They now sit around the course’s more upscale clientele. of private courses’ rates. Players rang to play 18 holes on a public course. than I’d bring a client to Pizza Hut picnic tables to drink, smoke and Still,no one would confuse these up $6.6 million in golf course rev- Golfers played 624,000 rounds for a business lunch,” he says. play cards after hitting the links. fields of greens with Augusta Na- enues for the city last year, up 6% on the municipal courses last year, Patrick Norris mulls over the tional or Pebble Beach. from 2005 levels, according to the 2% more than in 2005.Thanks to the Gentrification strikes changes as he sips his second Bud- “There’s nothing fancy about the Department of Parks and Recre- city’s online reservation system, it’s but some longtime golfers fear that weiser of the morning. city’s courses,” says Jeff DeFranco, ation. An 18-hole round costs city no longer necessary to show up be- the courses are becoming too up- “I have been coming here since general manager at Dyker Beach residents no more than $41. fore dawn in order to have a chance scale.Dyker Beach’s operator,Amer- 1959,”grouses the part-time securi- Golf Course in Brooklyn.“You have For those who don’t have time to play. But there are still plenty of ican Golf Corp.—which is owned ty guard. “I used to see Rudy Giu- to look elsewhere if you want coun- for a full round, six driving ranges people on a summer weekend after- in part by Goldman Sachs—is con- liani come to play here on Sunday try-club comforts. But it’s tough to are available around the city. The noon, and some are more conscien- verting the clubhouse into a catering afternoons. I used to caddy here. I beat the locations.” new management team that recent- tious than others about picking up hall designed to attract weddings have been here longer than anybody. The picturesque Dyker Beach ly took over the Randall’s Island their beer cans and replacing divots. and corporate events. Word is that And now I won’t be welcome in the course, located near the Verrazano- range even offers shuttle service For those reasons, even Mr. Mil- the facility won’t even have a locker new clubhouse.” Narrows Bridge, has a staff that from the east side of Manhattan. stein, who’s boundlessly enthusias- room, says the crew of retired fire- must work miracles to keep the Murrey Targownik, a lawyer— tic about the Van Cortlandt course, men and police-car mechanics who COMMENTS? [email protected]

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36 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 37 5/15/2008 8:00 PM Page 1

BUSINESS LIVES CORPORATE LADDER Scott Silverstein To the top at Topps Chief will build on gone international, signing deals with the Premier League in Eng- PERSONNEL FILE tradition of baseball land and the Bundes Liga in Ger- many. And now, Topps is owned by COMPANY The Topps Co. cards, bubble gum; Michael Eisner, the former head of TITLE President and chief executive interactive strategy Disney,who has visions of turning it into a force in the field of sports me- AGE 46 dia and entertainment. RÉSUMÉ General counsel; man- BY DANIEL MASSEY ager, sports and entertainment New patterns group; chief operating officer n some ways, Topps is still mr.silverstein has taken the helm the same company that at a moment when young people are MANAGEMENT STYLE Collegial decades ago led the young spending their time in radically new accountability Scott Silverstein to hop on a ways.Text messaging and social net- HOME Chappaqua, N.Y. bike and pedal from his Long working have taken precedence over IIsland home to buy baseball cards at card flipping and bike riding. His the Ha-Cha Stationery store. challenge is to bring the company Topps board before Mr. Eisner took It’s still the company that sparked into the digital age without sacrific- the company private. “I think the his most vivid childhood memo- ing the products that made Topps board was much tougher on him be- ries—sticking his hand into a jar of successful in the first place. cause he was the son-in-law.” Bazooka gum in the local deli, flip- Mr. Silverstein married into the

ping baseball cards on the sidewalk business started by his wife Amy’s Investor firestorm buck ennis and, yes, suffering when his mother grandfather as Topps Gum in that didn’t stop a group of dissi- threw most of those cards away. Brooklyn in 1938. He was brought dent investors from giving Mr. Sil- tober for $385 million. baseball card packs where collectors “What we have is a brand that is on board in 1993 as general counsel verstein a hard time last fall. After “Scott has a lot of corporate can trade virtual cards and play very hard to replicate in today’s by his father-in-law, and quickly the company was put up for sale in knowledge, a lot of experience,” says games. Books, television programs world,” says Mr. Silverstein, the took responsibility for business af- 2006 to maximize shareholder val- Mr. Eisner. “He knows his business and a movie based on the Bazooka newly minted chief executive of the fairs, candy product development, ue, they claimed the board was as well as anybody.” Joe character are also in the works. 70-year-old trading card and candy the worldwide Pokémon business spurning a more lucrative buyout Mr. Silverstein has started to “If in five or 10 years you look at company. “Topps is in the DNA of and the sports and entertainment from competitor Upper Deck in fa- move Topps into the interactive age. this company and we are still princi- boys and men ages 6 to 60.” group.The board named him presi- vor of Mr. Eisner’s offer so that Mr. Baby Bottle Pops now come with se- pally selling trading cards and stick- But in other ways,Topps is noth- dent and chief operating officer in Silverstein could be named CEO. cret codes that can be entered online ers and candy products, I think that ing like the company of Mr. Silver- 2004. Upper Deck eventually withdrew for access to a social networking site would be a great disappointment,” stein’s youth. It has survived a war “We watched him grow through its offer, and Mr. Eisner’s Tornante for kids. Next month, the company says Mr. Silverstein. waged by dissident investors and an the ranks,” says Jack Nusbaum, a Co.teamed with Madison Dearborn will unveil Topps Town, a Web site attempted takeover by a rival. It has lawyer who spent 15 years on the Partners to purchase Topps last Oc- reached via PIN codes in select COMMENTS? [email protected]

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May 19, 2008 | Crain’s New York Business | 37 CNYB 05-19-08 A 38 5/15/2008 7:08 PM Page 1

BUSINESS LIVES

EXECUTIVE MOVES

ACCOUNTING & CONSULTING president from associate partner. as partner. He had been of counsel at Huron Consulting Group: Karyn Egeland, Baker & McKenzie. HOT JOBS 48, joined as director. She had been FINANCE & INSURANCE Kirkpatrick & Lockhart Preston Gates business development leader, Northeast, AXA Partners: Gary Hirschkron, 50, was Ellis: Andrew L. Reibman, 44, joined as at Jefferson Wells. promoted to president from managing partner. He had been an associate at WANTED: EXECUTIVE DIRECTOR Marcum & Kliegman Executive Search: director. He will be based in New York Kenyon & Kenyon. Richard Paris, 37, was named president. and Farmington, Conn. Gary A. Walpert, 65, joined as partner. He continues as director of human KBW Inc.: Michael Hawkins, 35, joined as He had been a partner at Wilmer Cutler ORGANIZATION New York Cares resources at Marcum & Kliegman. principal. He had been a director at Pickering Hale and Dorr. JOB DESCRIPTION Develop strategy, secure funding and implement Brian Lucas, 30, was named vice Wachovia. president. He was formerly audit Robert Woomer, 41, joined as principal. MEDIA & ENTERTAINMENT vision for the nonprofit supervisor at Margolin Winer & Evens. He had been a director at Wachovia. Bravo: Jerry Leo, 41, was promoted to MOST IMPORTANT TASKS Mobilize 40,000-plus volunteers; expand Barbara Walters, 62, was named vice Sterling Stamos Capital Management: senior vice president of program strategy annual operating revenue and cultivate corporate and foundation president. She was formerly senior Robert Goodman, 54, joined as global and acquisitions, a new position, from support; manage a fast-growing staff; lead strategic growth account executive at Proactive Search. head of private equity and assets, a new vice president of strategic program position. He had been vice chairman at planning and scheduling. CREDENTIALS NEEDED Ten-plus years of relevant management ADVERTISING & COMMUNICATIONS Deutsche Asset Management. NBC Universal Digital Media: Chris experience Doremus: Howard Sherman, 52, was Grosso, 33, was promoted to senior vice promoted to president and continues as HIGH TECH & NEW MEDIA president, emerging digital businesses, SALARY Previous executive director made $192,750 a year, according managing director, New York. Adspace Networks: Warren Christopher, from vice president. to the group’s 2007 tax return 48, joined as editorial director. He had Jessica Schell, 33, was promoted to senior RECRUITER Internal ARCHITECTURE & DESIGN been publishing director of Show Circuit vice president, digital strategy, from vice Syska Hennessy Group: Eronim Brandusa, magazine. president. DOWNSIDE The group’s wide-ranging efforts are difficult to 61, was promoted to vice president from NewsMarket: Brendan Goldstein, 41, Nickelodeon/MTVN Kids and Family communicate succinctly associate partner. joined as chief revenue officer. He had Group: Brian Offutt, 42, was named Gerry Brown, 39, was promoted to vice been director of sales at Bloomberg senior vice president of creative Founded in 1987, New York Cares allows people to participate in hands- president from associate partner. Legal. operations, a new position. He had been on volunteer projects that benefit schools, homeless shelters, social Carlos Petty, 52, was promoted to vice Neil Steinberg, 28, joined as vice senior vice president, entertainment service agencies and other organizations. president of client relations. He had products, at Nickelodeon and Viacom —DIANE HESS EXECUTIVE PROMOTIONS been associate vice president at 5W consumer products. Public Relations. Crain’s lists the promotion and hiring of New York REAL ESTATE area senior executives on a space-available basis, LAW Cushman & Wakefield: Robert Gallucci, with priority given to positions in New York City. Gibson Dunn & Crutcher: Stacey Anne 34, was promoted to senior director The fastest way to get an announcement into Mahoney, 39, joined as partner. She had from director. 45, joined as senior vice president, been executive managing director at Crain’s is to submit details online by filling out the been a partner at Constantine Cannon. Gorton & Partners: Patrick Muldoon,54, leasing and portfolio management. He Grubb & Ellis. form at www.crainsnewyork.com/submit. The Goodwin Procter: Michael D. Maline,41, joined as partner. He had been a senior had been a senior vice president at Jeffrey Rosenblatt, 51, joined as senior vice Executive Moves column is also available online. joined as partner. He had been a partner vice president at AMEC Construction Antares Investment Partners. president. He was formerly executive Crain’s cannot confirm receipt of listings or say at Lowenstein Sandler. Management. HelmsleySpear: Lewis Cowan,57, managing director at Grubb & Ellis. when they will appear. Harris Beach: Todd S. Sharinn, 44, joined Gramercy Capital Corp.: Michael Berman, joined as senior vice president. He had —adrianne pasquarelli

38 | Crain’s New York Business | May 19, 2008 CNYB 05-19-08 A 39 5/15/2008 6:56 PM Page 1

BUSINESS LIVES TABLE TALK by Bob Lape needs nothing else, though it’s neighborhood. tempting to smear on the black- The awning says “West Bar and truffle mayo or house-made catsup Lounge,” but that’s the place, on the served with hand-cut fries. southwest corner of West and West Those crisp frites are also fea- 11th streets, a block from Julian tured with an entrée of sliced breast Schnabel’s palazzo. of duck magret ($17), which comes There’s a pool table, some lanai with a salad of arugula and orange. furniture, a tank of tropical fish and Another main labeled a “staff fa- a stuffed fish on the wall, along with vorite” is honey-glazed bass pre- other kitschy nautical touches. The sented with Shanghai bok choy and Rusty Knot seats about 24,including sticky rice. Sticky rice encores in 10 at a communal table and eight at three dishes categorized under the bamboo-faced bar. Initials are “Stuff in a Bowl”: crispy Chinatown studiously carved into the tabletops chicken with red curry broth, gin- in the several uncomfortable booths. ger-crusted salmon in white miso The young crowd tying up at this broth and a wings dinner accompa- wildly popular place order beer or nied by carrot-celery salad. such Trader Vic’s-style drinks as mai Baked-to-order desserts include tais,zombies,spicy coladas and dark rice pudding crème brûlée, apple and stormys—served in plastic tart and hot chocolate cake. glasses,coconut shells or large bowls Tables are small, tall or commu- for two. nal, and service is friendly and The inexpensive grub on offer is quick. mostly mid-century comfort food, This is cooking I wanted to revis- and mostly blah: foot-long pretzel it before I left it the first time. dogs—hot dogs with a modest corset of pretzel dough, meatloaf THE RUSTY KNOT ½ sandwiches topped with shredded 415 West St. (at West 11th Street) lettuce, chicken liver and bacon (212) 645-5668 sandwiches, and iceberg wedges. WINES Red and white Several items listed on the tiny PRICE RANGE $16-$19 blackboard, baked mussels and buck ennis roasted razor clams, suggest an up- RESERVATIONS None TRUE GRIT: Ian Russo puts his impressive credentials to use handling straightforward fare at Thunder Jackson’s. dated provenance, but shepherd’s HOURS Noon-midnight pie (with still-frozen peas), peel- his vest-pocket-size joint, and-eat shrimp and Coca-Cola ribs The hefty burgers, among New created by designer Taavo are rooted in the past.The ribs ($19) York’s best, are pan-seared after a TSomer and Ken Friedman of are quite good, though. rub with the chef ’s mix of cayenne Spotted Pig fame, features 1950s Staff members, most of them 2 unassuming pepper, salt and other spices, then California rumpus room-cum-tiki Californians,are sunny and pleasant. glazed with honey and baked. The bar decor and overlooks the Hud- newcomers result is a lusty medley of tastes that son River in a rapidly developing COMMENTS? [email protected]

One spot offers Ian’s on the Upper East Side and done distinguished cookery at Pela- Championed CHANGE. surprisingly good go in midtown,Mr.Russo fields fine food; other is popular, food for fork or fingers. Settle back with a game and beer Thank You, Town of Hempstead IDA. but just passable and order the appetizer tasting ($17),comprising two lollipop lamb “Without the IDA, we wouldn’t have been able to build these chops, two barbecued wings, two smaller is often better when angry wings—available in “angry,” communities.” belt-tightening is the rule of the day. “pissed” and “furious”—and four -Jan Burman , The Engel Burman Group Two frills-free, value-rich Green- rare slices of ahi tuna with spicy wich Village newcomers, Thunder mustard. The Engel Burman Group, innovative global developer of The Bristal Assisted Living Jackson’s and The Rusty Knot, are Throw in an order of fall-from- casual,noisy and open every day,and the-bone, hoisin-glazed sticky pork communities, is committed to breaking new ground, in every sense. Working with they take plastic. Neither eatery has ribs,and a diner has a pleasing meal. the Town of Hempstead IDA, they were the $rst to use Industrial Development a Web site yet. Apps include escargot, and Agency funds for assisted living facilities. The IDA enabled the Engel Burman Thunder Jackson’s specializes in Group to build the facility, while providing construction and other full-time jobs. THUNDER JACKSON’S ## “dirty” burgers and steaks. Best of all, seniors can 169 Bleecker St. (at Sullivan Street) The Bristal, East Meadow (212) 677-6700 now continue to live in WINES 14 choices, eight by the the communities they glass helped create. PRICE RANGE $14-$29 WINE MARKUP 50%-185% RESERVATIONS Recommended HOURS Mon.-Wed., 5-11 p.m.; Each year, a host of businesses and institutions put the non-pro$t Town of Hempstead IDA to work to help them Thurs.-Fri., 5 p.m.-midnight; realize their plans to build, relocate, expand and innovate. Find out how to put the Town of Hempstead IDA to work for your business. Call (516) 489-5000 x 4200. Or visit us on the web at www.tohida.org Sat., noon-midnight; Sun., noon-11 p.m. IDA BOARD TOWN OF HEMPSTEAD elevision screens suggest THUNDER JACKSON’S star is the full- Theodore P. Sasso, Jr. Al D’Agostino that Billy Bishop’s “urban flavored “dirty” burger. Kate Murray Chairman Member roadhouse” is more sports bar Supervisor Paul Conte Ari Brown T #### Vice Chairman Member = Outstanding than bar-restaurant, but Chef Ian Frederick E. Parola ###= Excellent Cheryl Petri Patricia Mezeul Russo’s chow merits attention Executive Director/CEO Secretary wherever you find it. ##= Very good Member # Jonathan B. Kohan Having roamed from Brooklyn = Good Put us to work for you. Treasurer to Honolulu,owned the eponymous

May 19, 2008 | Crain’s New York Business | 39 Project5 5/15/08 1:00 PM Page 1

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