CCRRAAIINNSSNENEWW YOYORKRK BUBUSISINESSNESS NEW YORK BUSINESS® AUGUST 6 - 19, 2018 | PRICE $3.00 DOUBLE ISSUE MAKING GOOD New York is home to a growing number of tech entrepreneurs, including Paul Barnes- Hoggett and Avi Karnani, who are putting social good on par with pro ts PAGE 16 VOL. XXXIV, NOS. 32, 33 WWW.CRAINSNEWYORK.COM A CRYPTO CUSTOM BIZ LEADERS CONTENT: EYEING THE COIN THAT PAYS THE AG RACE NOTABLE RENT P. 14 WOMEN IN P. 15 HEALTH CARE NEWSPAPER P. 19 P001_CN_20180806.indd 1 8/3/18 6:12 PM WE KEEP GOOD C OM PA N Y. CBRE helps the most prestigious businesses in the world transform their real estate into real advantage. Through our unique combination of talent, market insight and comprehensive capabilities, we bring together the right people and resources to deliver exceptional outcomes for every client we VHUYH2XUGHDOPDNLQJIRUWKHÀUVWKDOIRIKDVRQFHDJDLQGRPLQDWHG &UDLQ·V0LG<HDUOLVWRIWKHODUJHVW0DQKDWWDQRIÀFHOHDVHV³SXWWLQJ&%5( on top and positioned to continue our legacy of market leadership. CN018742.indd 1 7/30/18 2:00 PM AUGUST 6 - 19, 2018 CRAINSNEW YORK BUSINESS ON THE COVER PHOTO: BUCK ENNIS FROM THE NEWSROOM | JEANHEE KIM | ASSISTANT MANAGING EDITOR Homecoming MY PARENTS ESCAPED POVERTY and hard- ship aer the Korean War by moving halfway around the world to New York City, where doctors and nurses like them were in demand. I still cannot imagine the courage it took for them to leave their enormous families: My dad had six siblings; my mom, eight. In New York they created their own fam- ily, which includes my brothers, Steven and Andrew, and me. I grew up thinking this city was the place to be, where everyone wanted to live. So when rst school and then a job or a spouse took my brothers elsewhere, I wondered why. P. Steven has practically returned, now living in New Jersey, where 16 he practices medicine. But Andrew went farther. He took his East Coast education and legal training to Silicon Valley, where he has IN THIS ISSUE mastered the art of the deal as general counsel and senior vice presi- UP FRONT 16 “TECH FOR GOOD” dent for corporate development at Netgear. The rise of ventures that stress social impact and prot Due to the distance between us, we have missed births and other 4 EDITORIAL big events, as well as a lot of smaller ones: meals, birthdays, holidays Fix congestion and drivers’ pay, 60 SNAPS and watching each other’s children grow up. but don’t cap ride-hail’s growth Photos from the city’s biggest fundraisers and charity events But Aug. 3 I got to share in one of Andrew’s biggest professional 5 IN CASE YOU MISSED IT moments, when he and his colleagues rang the opening bell at the The single-payer health plan 61 FOR THE RECORD faces a long, uncertain road Our tally of the week’s buys, New York Stock Exchange to take Arlo—a Netgear subsidiary—pub- busts and breakthroughs lic. e San Jose–based maker of wireless home-security devices is a 6 MEDIA The nonprot future of local 62 INSTANT EXPERT leading player in the push to create the Internet of ings. news? Condé Nast to sell titles Secrets of the city’s All told, 60 Netgear and Arlo executives, employees and their fam- steam system 7 ASKED & ANSWERED ilies ew across the country to share in the moment. Andrew, my The CEO of SheKnows Media 63 GOTHAM GIGS little brother, was the only native New Yorker in the group. on diversication and growth An entrepreneur taps her passion for holistic health It’s nice to know that companies can grow anywhere, and indeed 8 REAL ESTATE to create ginger shots they do. But to really make it, there is only one place to be: the Nomadworks takes over for business capital of the country, the center of nance and trading, Grind; Inwood rezoning New York City. Home. 9 WHO OWNS THE BLOCK So much development drama in quiet Sutton Place 10 VIEWPOINTS Recipes for economic success; CONFERENCE CALLOUT NYC isn’t so livable; the beauty OCT. 17 of the skyline; sewing up reform in the Garment District CRAIN’S BUSINESS 12 THE LIST BREAKFAST FORUM The New York area’s largest engineering rms Commissioner Polly Trottenberg will discuss Vision Zero—a 14 POLITICS Cuomo backs James for AG, top priority for the de Blasio P. administration—congestion but business execs aren’t sold 63 and the “L-pocalypse.” FEATURES CORRECTION THE NEW YORK ATHLETIC CLUB Ron Moelis is the CEO of L&M Development 15 PAX FOR ALL YOUR HOUSES Partners. His name was misspelled in “On 8 to 9:30 a.m. Linking cryptocurrency to a the rise in central Harlem,” published [email protected] sure thing: local real estate July 23. Vol. XXXIV, Nos. 32 and 33, Aug. 6, 2018—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing ofces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) BUCK ENNIS ©Entire contents copyright 2018 by Crain Communications Inc. All rights reserved. AUGUST 6, 2018 | CRAIN’S NEW YORK BUSINESS | 3 P003_CN_20180806.indd 3 8/3/18 6:48 PM AUGUST 6, 2018 AGENDAFix congestion, drivers’ pay without capping e-hail companies’ growth ood policymakers study problems before acting on them. en there are New York City Council members, who act rst, study later. e legislators plan to take that approach by voting Aug. 8 to freeze the growth of Uber, Ly and other Gride-hail companies, dictate their fares and set a minimum wage for drivers. e council, aiming to cut congestion and raise drivers’ earnings, says a proper analysis requires halting for one year the industry’s monthly inux of nearly 3,000 new drivers, although demand for rides is growing and many newcomers replace drivers who leave. Let’s be real: e cap is not a pause to gure out what is going on; it is a bid to stop a growing industry. e expansion of Juno, Ly, Uber and Via would be thrown into reverse as drivers who quit—about 25% do each year—could not be replaced except by those with wheelchair-accessible vehicles, which few have e-hail fares? With drivers guaranteed a living wage, the e-hail companies because they are costlier and harder to operate. (e cap is on the number would compete on fares without driving down pay. Everybody would win. of cars but in practice would limit the drivers, who own their vehicles.) Six suicides of nancially strapped drivers in six months, along with In the council’s thinking, fewer drivers means less trac and higher medallion owners’ tales of ruin, motivated the council to act. But stiing earnings for those who remain. But the bills already address pay with a wage e-hail operators can’t undo those tragedies. e council is so focused on requirement that incentivizes e-hail compa- helping drivers and medallion owners that it nies to reduce idle time. e cap would cause If the council is guaranteeing wages, has forgotten the riding public. a scarcity in many areas and pull drivers to E-hail also has lured transit users, mostly the central business district and the airports, why not let Juno, Lyft, Uber and Via because subway and bus service has been just as capping taxi medallions did—and continue to compete on fares? awful. Fix that and straphangers will return. gave rise to Uber in the rst place. As for congestion, the answer is to charge Few argue with the idea that drivers all vehicles that cause it. State law is needed should make at least $17.22 per hour, as the Taxi and Limousine Commis- for that, but the council could pave the way by voting to endorse congestion sion has proposed and the bills would authorize. Worries did surface that pricing. Instead it is singling out one industry, as Albany did in March by drivers would have no incentive to pick up passengers, but the commission approving a surcharge on for-hire vehicles in Midtown and Lower Manhat- came up with an anti-freeloading mechanism that even Uber calls elegant. tan. And it is employing a simplistic cap that would reduce ride-hail service Why, then, must the council legislation also authorize the TLC to set in neighborhoods that have come to rely on it. Wrong turn. –THE EDITORS FINE PRINT Incentive compensation in nancial services is expected to increase by 5% to 10% this year, according to consulting rm Johnson Associates. Equity sales and trading will see the biggest boosts, thanks to increased volatility and volume. The only sector that won’t see bigger bonuses, Johnson said, is investment-banking advisory—a dip attributed to the cyclical nature of the business. BY GERALD SCHIFMAN STATS 25 WORDS OR LESS ROBOCALLS ON THE RISE IN THE PAST YEAR robocalls have increased sharply across the country and in New York. AND Many are scams, but one of the most prolic callers is the city itself. I just moved T “ Robocalls in June to phones with INCREASE IN ROBOCALLS FROM JUNE 2017 TO JUNE HE CI my daughter to a 917 area code, more than for 2018, BY AREA CODE Minneapolis.