NEWSPAPER impact Sandy’s want to insure. andwhichinsurers live andwork andinvest, borough wantto place where peopleinevery York’s economic-development engine—a ing sure stillbecomesNew thewaterfront willbemak- andbusiness leaders, to political its 520 miles of waterfront. site: in thecity’s mostpromising development raises questions Sandy aboutcane investment Hurri- lostbusinessandtaxrevenue, damage, but the mid- to long term could be greater.” theimpactwillbelessthan9/11, term, short the “In ship ChiefExecutiveKathy Wylde. saidPartner- the overall economicimpact,” but itcouldbemoreintermsof significant longer andmeasured oftime, over aperiod greater exact toll. an even ly but onethatcouldultimate- different disaster, cording to the Partnership’s study. ac- tallied$83billion, ernment forcleanup, aswellthepubliccosttogov- revenue, and economicactivity property, loss oflife, the Altogether, disaster’s economicimpact. sioned consulting seven firms to the calculate commis- employers, largest private-sector abusinessgroup madeupofthecity’s City, thePartnership forNew York 9/11, After ELSTEIN BY ANNIEKARNIANDAARON growth to future path is NYC’sgreat that thewaterfront idea erodes Storm ECONOMY VOL. XXVIII,NO.45 ao uuecs otect,according A majorfuture costtothecity, Beyond theimmediateimpactofproperty impactofthestormisgoingtobe “The isrecovering from thecity avery Today, CRAIN’S ELECTRONIC EDITION WWW.CRAINSNEWYORK.COM E OKBUSINESS YORK NEW e AD’ IMPACT onPage23 See SANDY’S ® guide Sandy survival 1 2 p. delivered one firm How high waters: Come hell darkness of In the heart begin Let thedebate Infrastructure: space for scramble companies Displaced MORE auction action Inside Christie’s THE BLOCK WARHOLS ON HUNDREDS OF NOVEMBER 5-11, 2012 PRICE:$3.00 .22 2 p. 3 p. .3 p. .3 p. and .25 P.

newscom EDITOR’S NOTE

Refreshing FYICRAINSNEWYORK.COM our website I think you’ll agree when I say I’m having For better and worse, Wall a hard time imagining a more interesting St. returns to business week to launch a redesigned website. But that’s how we roll here at Crain’s New York ayor Michael Bloomberg rang the Business. Last week’s deadly superstorm opening bell at the New York Stock and the mass misery and cascading MExchange Wednesday after the challenges in its 1,000-mile-wide wake market’s unexpected two-day closure. But it showed me why CrainsNewYork.com didn’t take long for Knight Capital Group Glenn Coleman matters more than ever. CEO Thomas Joyce to regret it. His firm, one Our reporters and editors came out of the nation’s largest securities traders, had to swinging starting Monday as Hurricane Sandy edged toward tell customers to take their business elsewhere the city, and they hit it day after day, breaking news and that afternoon after its generator failed.The newscom producing stories on everything from the rush for batteries to setback was all the more painful, given the great lengths Knight had gone to in order to open for the art of doing business in the dark to the last-minute business on Wednesday in its flooded hometown of Jersey City.That setback came on the heels cancellation of the ING New York City Marathon.Talk about of the computer glitch in the summer that generated a wave of errant “buy” orders that generated your long runs. a $440 million loss and triggered a costly financial rescue. They did all this while living through In other gloomy news, in a possible harbinger of a broader retreat on Wall Street, Swiss bank many of the same ordeals you did last UBS said it will sack 10,000 investment-banking employees and exit the bond-trading business. week: stranded at home, sometimes Most of the job losses will occur in New York and London, where the bank’s investment- with no power, heat or reliable cell banking operations are centered. UBS had 3,200 employees in New York City as of 2010, service, and then stuck in traffic according to Crain’s data. —aaron elstein jams and bus or ferry lines. And yet our staff produced more than 80 ICAHN NABS NETFLIX STAKE. Nothing The move, an enrollment officer original online news stories last week. like the movies. Activist investor Carl said,is “to make it fairer and more eq- HOORAY! (Oh, and this issue of the newspaper in Icahn has grabbed nearly 10% of Net- uitable for students scoring [highest] NEW YORK SPORTS your hands.) flix Inc., trumpeting the streaming- on these exams.” Some parents, CLUBS is giving video and DVD rental company’s wanting to keep their kids in school storm Readers appreciated their efforts, judging by the victims “significant strategic value.” Who together, are crying foul. ... BIRD free website’s spectacular traffic numbers last week and the emails I knew? The news bounced Netflix’s GRABS TOP BILLING. Penguin Books access stock out of its yearlong slump with a and Random House are merging to to received thanking us for keeping people informed during one showers, of New York’s hardest weeks ever. 14% gain last Wednesday, the day of form one of the world’s largest pub- power and the disclosure. Among those possibly lishers of trade books,aka popular ti- a workout. I hope readers will also appreciate the user-friendly changes interested in buying the company are tles. The new behemoth will be we’ve made to our website. We’ve refined our homepage with Amazon and Microsoft, on whose called Penguin Random House, and OY VEY! clear navigation tools to help you find the industry news that board Netflix CEO Reed Hastings the hope is that it will have enough interests you most. Our article pages make it easier to find what will sit until he steps down later this heft to survive in the digital age.The A CRANE month. ... DEAL BUTTONS UP A MEGA- announcement came after News dangling over you need, discuss a hot topic or share a must-read.The new West 57th CLOTHIER. PVH Corp.,whose brands Corp.’s Rupert Murdoch lobbed a Street stopped design more prominently displays our multimedia, including include Tommy Hilfiger, Izod and last-minute effort of his own to hook the music our popular podcast This Week in Crain’s New York, which Calvin Klein sportswear, is buying up with Penguin. That leaves News nearby at Carnegie Hall. delves into the top stories each week. Slide shows, charts and fellow New York gar- Corp.’s Harper- videos are also easier to find, thanks to the new tab format. mento Warnaco Collins unit mate- Group Inc. for $2.9 ‘It’s sinful less. … MARTHA’S On top of serving up the news more efficiently, the billion. Warnaco li- BAD WEEK. Flooding redesigned site also allows us to show off our most popular censes the Speedo in the West Side franchises, such as 40 Under 40,Top Entrepreneurs and Best brand and Calvin to me’ building housing Klein underwear and —James Oddo, councilman Martha Stewart Liv- sight.” Other reviews have also been Places to Work in NYC.The information about how to submit from hard-hit Staten jeans. Among other ing Omnimedia sent good—in contrast to continued snip- nominations or view past winners is more readily available, too. Island, on the notion of things, the deal will many of its 600 em- ing from some in the surrounding Tell me what you think, at [email protected]. taking even a single police mean that Calvin officer off disaster-recovery ployees home for the community. ... SHOPPERS STEP UP. Klein products will be work to help manage week. Worse, the Whew! Increasingly confident con- made by one outfit. crowds at the ING New company said that sumers stepped up spending last Investors cottoned to York City Marathon flagging revenue will month, lifting sales at most retailers, CORRECTIONS the deal on Wednes- force it to part com- including mighty Macy’s, which saw day, pushing PVH shares up 21%, to pany with 70 staffers and cut back same-store sales inflate by 4.1%. The following corrections are for the updated 40 Under 40 profiles in the Oct. 15 issue FAMILY TIES KNIFED. that celebrated 25 years of Crain’s 40 Under 40 franchise: $109.99. ... The publication of two of its four maga- Meanwhile, MasterCard Inc. posted Eric Hadar is chairman and CEO of Allied Partners. His title and company name were days of nepotism in gifted-and- zines. ... KUDOS FOR BARCLAYS. A a nearly 8% increase in its second- misstated. talented programs are over in city month after the Barclays Center quarter profit. Shoppers’ ongoing Bruce Beal Jr. is president of the Related Cos. and Jeff Blau is chief executive. Their schools. A new policy terminates opened, The New York Times’archi- shift from cash and checks to elec- titles were misstated. sibling preference for such programs tecture critic weighed in with a posi- tronic payments is working in credit- Elie Tahari is chairman and CEO of Elie Tahari Ltd. His title and company name were where the number of eligible stu- tive review of the Brooklyn arena he card companies’ favor. misstated. dents exceeds the number of seats. called a “hunkered down, brooding —lauren elkies Bruce Mosler is the chairman of global brokerage at Cushman & Wakefield Inc. His title was misstated. Class of 1990 alumnus Greg White’s photo was incorrectly switched with 1990 classmate S.A. Ibrahim’s. STORIES TO WATCH THIS WEEK vol. xxviii, no. 45, november 5, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at Nov. 5: Health Nov. 6: Nov. 6: In wake of Nov. 7: First-ever New York, N.Y., and additional mailing offices. Postmaster: Send address changes to: Crain’s clinic for Presidential phone-hacking week of events New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one freelancers is election, though scandal, News honoring vets and year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved. set to open in some polling places Corp. earnings active-duty Brooklyn. could be down. come out. military.

2 | Crain’s New York Business | November 5, 2012 IN THE BOROUGHS MANHATTAN

Neighbors come to aid of powerless Village shops Owners return the love with hot coffee, cold beer, bargain sweets

BY ALI ELKIN

At the powerless West Village OUT OF DARKNESS: greasy spoon La Bonbonniere on Firms fanned out Wednesday afternoon, smoky, across the city last bacon-scented air wafted out the week in search of open door,causing passersby to snap workspace. to attention. Many poked their heads into the cramped spot on Eighth Avenue to ask about coffee. Locals, who could normally take their pick from the neighborhood’s

newscom scores of gourmet espresso shops, dropped into chairs and closed their eyes in relief as they gulped the din- er’s brew. As the sun- THE OFFICE SPACE SCRAMBLE light faded, the 18 FLOORS pizza- staff donned shop owner Mario headlamps and Markashi walked week, facing the sudden need to re- ily improvise. On Tuesday morn- Lofty Inc. took a different route. labored on. A up to deliver free Displaced tenants house their businesses in the wake ing,the 140 staffers of the online re- Lofty, which is based in the offices few minutes lat- pies to his large and small hunt of Hurricane Sandy. tailer, best known for its tailored of venture-capital company Accel er, a longtime regulars Tuesday With buildings south of mid- men’s pants, fanned out, iPads in Partners on the top floor of 111 neighbor came for home away from town powerless for days, and many hand, in search of free power, wire- Eighth Ave., had offers of tempo- in with a homier solution, a 19th- damaged quarters in flooded downtown possibly out less Web connections and, with rary housing from a number of century oil lamp, which she set on of commission for weeks, the race luck, coffee in midtown hotel lob- firms, but ultimately it opted sim- the lunch counter. was on for temporary quarters. bies, cafés and other locales. ply to have staffers work from home “This is a staple of the West Vil- BY DANIEL GEIGER Some have moved in with clients or “We’re camping out,” said Andy for a while. lage,”said Alisha Gonzalez as she lit customers;others are out looking to Dunn, the company’s chief execu- “Our team was actually being the lamp. “It’s nice to see it open Many of the city’s office tenants— lock up acres of space for weeks or tive and co-founder.“But as long as pretty productive from home, and when everything else can’t.” outfits from big to small, high tech even months. we can get access to Wi-Fi, we can intracity travel would still be very As it turned out, the headlamps to no tech—found themselves in For Bonobos, based in darkened be productive.” difficult without subway access,” were a loan from another neighbor, the same uncomfortable boat last Chelsea, the solution was to speed- Startup 3-D mapping company See REAL ESTATE on Page 24 actor Casey Siemaszko. In fact, Ms. Gonzalez and Mr. Siemaszko were among a hardy group of downtown- ers pitching in to help some of the area’s oldest businesses stay open last What NYC needs to rebuild week. Ms. Gonzalez, who has lived on Jane Street for 37 years,said that she power lines will take weeks to repair what’s feasible and affordable, was thrilled to get good use out of What’s feasible may and years to rehabilitate. Gasoline and planners and academics worry some of the lamps from her collec- not be affordable. “We’re testing systems that in about the city’s ability to withstand tion. She was also pleased to have most cases weren’t designed to deal electricity may future natural disasters. Long lines the opportunity to assist some of the The infrastructure with this sort of thing,” said Robert for gas and lack of fuel for power increasingly few survivors from the Yaro, president of the Regional prove to be our generators last week exposed gaps neighborhood’s less trendy past. debate has begun Plan Association. “We’re going to in the region’s pipeline and fuel “Right now, it’s not about Lulu need a thorough assessment as to weakest links transportation capabilities. The Guinness or Marc Jacobs,” she said. BY ANDREW J. HAWKINS what can be done to make them closures of bridges, tunnels and “It’s about survival.” AND CHRIS BRAGG more resilient.” roads raised questions about the Ms. Gonzalez also brought a State and local officials are al- city’s ability to receive crucial sup- lamp over to Li-Lac Chocolates on Add “storm surge” to the list of dis- ready sending mixed messages. plies. And millions of New Yorkers the corner of Eighth Avenue and asters that New York’s aging and Gov. Andrew Cuomo says the re- that I think should begin.” living in darkness highlights weak- Jane Street, a few doors down from overstrained infrastructure can’t gion’s built environment needs to But Mayor Michael Bloomberg nesses in the electrical grid, notably La Bonbonniere. The confectioner handle. be redesigned, with consideration was quick to dismiss talk of multi- the vulnerability of below-grade has been in the West Village since Before Sandy, New York was given to big-ticket improvements billion-dollar levees and tidal gates. power stations. the 1920s, and last week it was more considered by climate scientists to like sea walls and levees. “Protect- “I don’t think there’s any practical In 2008, Mr. Bloomberg con- than returning the love to patrons. be at low risk for hurricanes but ing this state from coastal flooding way to build barriers in the oceans,” vened the New York City Panel on Though the chocolate was in no highly vulnerable to them.That may is a massive undertaking,” the gov- Mr. Bloomberg said. “Even if you Climate Change to advise the may- danger of melting—as it had been in explain why the city was structural- ernor told reporters last week, “but spent a fortune, it’s not clear to me or on adapting city infrastructure to previous, summertime blackouts— ly unprepared for last week’s storm. it is a conversation that I think is that you would get much value for it.” rising sea levels and shifting weath- the store was calling all of its stock The city’s roads, tunnels, sewers and overdue, and it is a conversation While elected officials debate See INFRASTRUCTURE on Page 24 See LOCALS on Page 23

November 5, 2012 | Crain’s New York Business | 3 IN THE Storm shows hospital excess MARKETS pital would have both as long as was by Aaron Elstein BY GALE SCOTT necessary, Ms. Donovan said. AND BARBARA BENSON “We’re not a designated trauma center,but we have all the specialists The closing of St. Vincent’s Hospi- we need on staff,” she said. tal two years ago meant the city During the worst of the storm would have only one medical facili- surge, the hospital’s lights were ty south of 26th Street with the spe- dimmed, heat was shut off, and pa- cialized staff and equipment needed tients were banned from watching to treat severe injuries that disasters TV. Otherwise, backup power en- BELLEVUE EVACUATION: bring. Greenwich Village residents Despite shutdowns, the city abled the hospital to operate close to predicted that lives would be lost. had enough beds for patients. normal. The Greater New York

Sandy put that theory to the test. newscom Hospital Association and the Office The storm caused three downtown of Emergency Management helped hospitals to evacuate (as well as Health System. Beth Israel secure truck-size emer- Coney Island Hospital in Brook- North Shore-LIJ is building a gency generators to replace the ones lyn).The closures included Bellevue freestanding emergency facility to that were running. The new ma- Hospital Center, the last remaining serve those who lost St.Vincent’s.It chines eased the burden on Beth Is- trauma center for New Yorkers could have housed temporary pa- rael’s existing generators. south of the Empire State Building tients, but construction is not yet “Everyone knows the critical role newscom who were plunged into darkness. complete. For now, he added, all Beth Israel is playing right now, and Despite the turmoil,however,no hospitals “will have to be taking on everyone knows that anything and lives were lost and no patients were extra patients for some time to everything has to be done to keep it harmed. The worst-case scenario come” because of the closures. functional,” said a hospital The coming surge unfolded, and even with the evacu- “Sandy is not a justification to spokesman last Friday. ations, the health system absorbed build a hospital” in Greenwich Vil- With the evacuations of New hundreds of evacuated patients. lage, Mr. Dowling said. York Downtown, NYU Langone in muni bond biz Beth Israel Medical Center Preparedness was the key to the and Bellevue, Beth Israel had about launched a temporary trauma center health system’s storm survival. Beth 750 inpatients, compared with a to handle seriously injured and crit- Israel,at First Avenue and East 16th normal census of about 650. Con- ome rain or shine, Wall Street always gets its cut. ically ill patients in the area. Street, lost power, too, but nine tinuum hospitals were operating at And now that New York has just had a catastrophic The scenario made clear that emergency generators kept the place 97% capacity. hospitals must revise their systems running.The hospital’s officials cor- The storm “has been a lesson to Cflood, there are two clear ways the financial industry to avoid flooding and generator fail- ralled employees—neurosurgeons, us that Mother Nature has all the will benefit from Hurricane Sandy. ures. But as health care in New York orthopedic,vascular and cardiac spe- power, and we have to continually shifts toward outpatient care, the cialists, and general surgeons, said improve our preparation,” said Mr. First, look for a surge in munic- nism was adopted after both 9/11 storm suggested that even in the Continuum Health Partners’ chief Dowling. “We think we are in con- ipal bond issuance.The Metropolitan and Hurricane Katrina. worst of times, the densest parts of operating officer, Gail Donovan. All trol, but we are not.” Transportation Authority has clearly “There’s no murmur of it hap- the city have enough hospital beds. were working or on standby. Still, NYU Langone, which will suffered huge damage to tunnels, pening yet,” said Matt Fabian, man- “Hospitals can handle the surge” A trauma designation is mostly a be shuttered for weeks, will try. It tracks and switches—a study last aging director at Municipal Market in patient volume, said Michael matter of having both sophisticated plans to erect metal walls to protect year by a Columbia University re- Advisors, “but I bet it’s coming.” Dowling, president and chief exec- imaging equipment and a range of it from future floods. Sandy’s waters searcher predicted a storm surge A second way the financial in- utive of the North Shore-LIJ specialists available 24/7. The hos- rose 15 feet in the basement. Ⅲ would cause up to $84 billion in dustry will profit from Sandy is by damage to the public transit sys- raising insurance premiums. tem. That’s not all. Some 200 city For now, insurers are in the school buildings are now unusable. process of settling claims and writ- One-quarter of New Jersey Transit’s ing big checks for property damage. train fleet was damaged. Early estimates from brokerage Certainly, the government will Keefe Bruyette & Woods predict that help pick up the tab to fix these and Travelers Group will pay more than other vital parts of the region’s infra- $800 million in claims. Large as structure, but Sen. Charles Schumer that number is, it amounts to only said last week that the Federal Emer- 3% of the insurer’s capital. gency Management Agency’s disaster- But it’s a sure bet that insurers relief fund has only $7.2 billion. To will seek to recover that capital by fill the gap, city and state agencies raising premiums, arguing that af- will need to borrow money, proba- ter two major storms in two years, bly a lot of it, by issuing municipal the New York region is a riskier bonds. You can be sure public fi- place to insure than they’d thought. nance bankers are mobilizing right Also look for more insurers to re- now to line up borrowers and buy- fuse providing coverage in places ers and, by the way, collect their like the Jersey Shore, the Hamp- commission, which is typically tons and other oceanfront enclaves. around 2% of a muni bond offering’s Rob Haines, an insurance analyst proceeds. at independent research firm Credit- Congress can help spur recovery Sights, believes insurance rates here by allowing public agencies to ex- will rise by 5%.The final say on the pand their borrowing authority. matter belongs to Benjamin Lawsky, One way lawmakers can do that is who, as superintendent of the New by allowing muni issuers to do more York Department of Financial Services, of something called “advanced re- regulates insurers in this state. funding.” That would allow issuers Asked last week if rates will rise, to invest new borrowings in repair Mr. Lawsky replied: “It all depends and renovation projects, rather on how things shake out. It’s a little than use them to pay off old muni too early to tell.” bonds, as is typically done. By the Rest assured, readers: Rates are way, that sort of financing mecha- going up. Ⅲ

THE NUMBER of metric tons of gasoline waiting on tanker ships located in or 215Knear New York Harbor last Friday, according to Bloomberg News. Deliveries were delayed because Hurricane Sandy forced oil refineries, ports and gas stations to shut down.

4 | Crain’s New York Business | November 5, 2012 DON’T SETTLE.

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Push to Talk is available only with other Verizon Wireless Push to Talk customers. Largest claim based on comparison of carriers’ owned/operated networks. Network details & coverage maps at vzw.com. © 2012 Verizon Wireless. F4720 THE No power? Only $295 a night INSIDER by Erik Engquist tique on West 27th Street,lost pow- Hotels were packed, er on Monday but was able to keep its lobby warm and its restaurant but deep discounts open with the aid of a generator. meant lost revenue General Manager Marco Cilia ex- pects to lose $150,000 in revenue, due to cancellations and room-rate BY LISA FICKENSCHER discounts of up to 50%. Business insurance will cover New York City hotels were flush some of the losses, but hotels have with guests last week,but Hurricane high deductibles,often six figures or Sandy did its part to scare away more, said industry experts. enough business to make this one of On the flip side,it was no fun be- the costliest events for the hospital- LITTLE COMFORT: Bed? ing a guest at one of the hotels that Yes. Hot water? No.

ity industry in the past 11 years. pod39 lost power,as Frances and Raymond About 100 hotels were in the Howell from Liverpool, England, evacuation zones and were simply properties in the city, from the found out firsthand at Murray Hill forced to close—many for more swanky Mercer and Greenwich ho- East Suites on East 39th Street. than a week—while dozens of oth- tels to the two budget Pod hotels, The couple was in town for the newscom er properties offered deep discounts expects to lose more than $1 million, ING New York City Marathon,and on their room rates because they lost mostly at its nine properties that lost was most upset about not being able Sandy’s political winners, losers power and couldn’t offer guests such power. The Bowery Hotel, for ex- to take hot showers.Their only con- basic amenities as hot water, heat or ample, ordinarily charges $500 a solation was that their room cost just light. Even those properties that night, but during the power failure, $150 per night—or half the amount WINNERS: could roll out the red carpet for their guests were offered a room rate of they had expected to pay. Lucky customers, charging full price, took $295, which included three meals at them: Front-desk manager Ray Chris Christie. The governor of New Jersey was on his game, first lash- a hit when the catered events and the hotel’s restaurant, Gemma. The Remdhany said new guests check- ing out at the mayor of Atlantic City for not heeding his warnings to evac- business gatherings they were eatery was powered by a generator. ing into the hotel would be charged uate shorefront areas,and later praising President Barack Obama for pro- counting on were canceled. “Normally the Bowery doesn’t the full rate despite the lack of elec- viding federal assistance to the storm-ravaged Garden State. The “Late October and early Novem- sell rooms with food,” said Richard tricity and hot water. governor, who later surveyed damaged areas with the president, looked ber is a peak time for meetings and Born, principal of BD Hotels. “But Demand for hotel rooms here is like a man putting his state’s welfare above politics.But if it helps Mr.Oba- conventions, which were canceled in we closed our restaurant to the pub- so great lately that many people are ma win, Mr. Christie could run for the White House in four years rather anticipation of the storm,” said Bjorn lic to accommodate our guests.” willing to forgo such modern con- than waiting until 2020. Hanson,divisional dean of New York Pod 39, at Lexington Avenue and veniences. “Every time we get an Michael Bloomberg. The mayor and his administration handled storm University’s school of hospitality and East 39th Street, at least had hot wa- available room, it’s gone in a matter response with a blend of professionalism and sympathy,evacuating 6,400 sports management.What’s more,he ter on some floors, so guests were of- of seconds,” said Bob Diener, co- people into shelters without any major glitches. His lone slip was not im- added, “meeting planners have be- fered a discounted rate of about $140 founder and president of hotel dis- plementing a gridlock-prevention plan until the fourth day of the mass- come more sophisticated than ever per night, or a third off the normal counter Getaroom.com. “The next transit shutdown. before in negotiating cancellation rate.“Hot water determined whether couple of weeks will be difficult.But Metropolitan Transportation Authority. The nation’s largest mass transit provisions that shift the burden of we gave a discount of 30% or 50% off,” we expect that a high percentage of system managed to get all of its buses and quite a few of its trains back in these types of cancellations to hotels.” said Mr. Born of those nine hotels. the people who had to cancel trips service within three days of the storm, much faster than expected given BD Hotels, which operates 24 The Hotel Americano, a bou- here will reschedule.” Ⅲ the extent of the damage and the age and complexity of the system. Sev- eral days of free service didn’t hurt its popularity, either. And the Obama administration agreed to reimburse the authority for much of its storm- recovery costs. Rep. Bob Turner. The congressman from Queens, who lost his house to a fire that ravaged 80 homes when the storm struck, issued a heartwarming- ly humble statement that focused on the storm’s other victims. It acknowl- edged his own tragedy only in the final paragraph:“I,along with many oth- er Breezy Point residents, lost our homes last night and I am grateful that my family and I are safe after this destructive storm,” he said. “I hope you will join me in lending a hand to those who were less fortunate.” LOSERS: The power companies. Utilities rarely look like the good guys when power goes out and stays out for millions of people. But when a popular governor calls them out for being unprepared for Sandy, as Andrew Cuomo did last week, there is nowhere to hide, no matter the back story. Mr. Cuomo even threatened to direct the Public Service Commis- sion to begin a proceeding to revoke their status as utilities in the state (never mind that the governor previously said he does not control the commission). He was especially hard on the Long Island Power Author- ity, writing, “It goes without saying that such failures would warrant the removal of the management responsible for such colossal misjudgments.” Mitt Romney. His opponent, Mr. Obama, got to look presidential doing storm response, earning praise from Mr. Christie, a leading Republican. The calamitous storm made it awkward to campaign and led critics to un- earth a statement in which Mr.Romney talked of outsourcing federal dis- aster relief.To cap off the week, Mr. Bloomberg used the storm as a non- partisan rationale to endorse the president, citing Mr. Obama’s efforts to address climate change. Chris Wight. The little-known Republican challenging Rep. Carolyn McCarthy,D-Manhattan,had to fire his campaign manager,who had the brilliant idea to tweet false information about Sandy as the storm hit. Shashank Tripathi hatched a rumor that Consolidated Edison was shut- ting power citywide and also posted on Twitter, “BREAKING: Con- firmed flooding on NYSE.The trading floor is flooded under more than 3 feet of water.” It wasn’t. Ⅲ

Crain’s Insider, our award-winning politics newsletter, is now a blog. Read it every day at www.crainsnewyork.com/insider

6 | Crain’s New York Business | November 5, 2012 HELPING DOCTORS HELP THEIR PATIENTS IS BETH’S BUSINESS. WE ARE PROUD SHE HAS MADE IT OUR BUSINESS, TOO.

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INTERNET | PHONE | CABLE TV | ETHERNET BUSINESS 4.7M Public-school students stayed home last week, due to Sandy PEOPLE Source: The Wall Street Journal

EXECUTIVE MOVES

The Africa-America Institute: Amini Kajunju, 41, joined the nonprofit as president and chief executive. She was previously chief executive at Workshop in Business Opportunities. Visa: Charles W. Scharf, 45, joined the financial company as chief executive. He was previously managing director of an investment banking unit at JPMorgan Chase and Co. SocialFlow: Missy Godfrey, 54, joined the social-media marketing company as chief executive. She was previously managing director at North Sea Partners. Clear Channel Media: Julie Talbott, 57, joined as president of content and affiliate services of the company’s national media group. She was previously president of content and affiliate relations for Premiere Networks. Third Avenue Management: David L. Resnick, 52, joined the investment advisory firm as president, a newly created position. He was previously chairman BEFORE THE FLOOD: of the global financing advisory Fairway’s former CEO practice at Rothschild Inc. Howard Glickberg during Loeb & Loeb: Patricia Anne O’Hara, 56, happier times in 2009. joined the law firm as chief His Red Hook store is information officer. She was “his baby.” previously chief information officer at

buck ennis Adaptive Solutions Inc. Centro: Kelly Wenzel, 42, joined the GOTHAM GIGS media logistics software and services company as chief marketing officer, a newly created position. She was previously senior vice president of marketing at Undertone. New York Life Insurance Co.: Gerald B. Smith, 62, was elected to the board of Life isn’t Fairway directors. He is also chairman and chief executive of Smith Graham & Co. Investment Advisors. East West Bank: Wendy Cai-Lee, 38, Flood closes pioneering Red Hook store for 8 weeks was promoted to senior managing director and head of the U.S. Eastern When Fairway opened a supermarket in Red started Fairway in 1933. “I had tears in my eyes region. She was previously senior managing director and head of the ‘We’re Hook six years ago, Brooklynites could barely when I saw what happened.” ¶ While the store is New York region. contain their joy. On opening day, shoppers were out of commission, Mr. Glickberg said he hopes Hudson Realty going to Capital: Geoffrey greeted with a marching band and abundant free to find jobs for its approximately 400 employees Smith, 40, joined the deal with samples. “Stay with us throughout the day,” in Fairway’s 10 other stores in the city and real estate firm as chirped a New York Observer reporter who live- suburbs—provided they can get there using managing director. this. It’s He was previously blogged the event. “We’ll be checking back fairly public transportation. ¶ The temporary loss of a managing director not like we often on the store.” ¶ Unfortunately, the store, popular store comes at a sensitive time for Mr. at Natixis North America. located on the shore of New York Harbor, took a Glickberg and his company, which is in the GB Lodging: Eric Bass, 52, joined the have a direct hit from Sandy last week.The bottom three process of trying to raise $150 million through an hotel development and investment firm as executive vice president, a choice’ shelves of food were completely submerged, and initial public offering.The Red Hook Fairway newly created position. He was every piece of merchandise had to be thrown out. appears to generate about $60 million in sales previously senior vice president of The refrigeration equipment needs to be replaced; annually, based on data in the IPO prospectus, development at Morgans Hotel Group. the aisles sanitized and restocked. Howard although Mr. Glickberg said the store is fully Cresa New York: Dolores Minardi, 55, Glickberg, Fairway’s vice chairman of insured and has loss-of-business coverage. ¶ joined the real estate advisory firm as senior vice president. She was development and former chief executive, “Look, we’ve been around a long time and we’ve previously senior managing director at estimates the Brooklyn store will be closed for six dealt with some tough things,” Mr. Glickberg Colliers International. Stephen Santoro, 61, joined as senior to eight weeks. ¶ “The store is my baby, one of my said. “Now we’re going to deal with this. It’s not vice president. He was previously children,” said Mr. Glickberg, whose grandfather like we have a choice.” —aaron elstein executive managing director at Grubb

8 | Crain’s New York Business | November 5, 2012 Continued from Page 8 & Ellis Co. CORPORATE LADDER Queens Economic Development Corp.: Robin Wilson, 31, joined as director of the women’s business center. She was previously certified business adviser at AFFINITY’S NEW CEO SHIFTS INSURER’S FOCUS LaGuardia Community College’s Small WITH THE AFFORDABLE CARE ACT, the establishment of participation exchanges and the addition of pharmacy coverage, it has Business Development Center. been a big couple of years for Affinity Health Plan. The insurance provider that started out serving low-income communities in LCOR: Ari Koutouvides, 34, joined the real estate development and investment the Bronx now provides members in all five boroughs with increasingly complex services. “A focus on enrolling dual eligibles— company as vice president of asset people qualified for both Medicare and Medicaid—in managed-care programs, making the shift to long-term care, and management and acquisitions. He was rolling pharmacy benefits into our coverage: those are our big projects,” said Affinity’s board chairwoman, Nanette previously team leader for the real estate Falkenberg. “The transition itself is a project.” workout and restructuring group at Ms. Falkenberg referred to the goals that will be the responsibility of new President and Chief Executive Bertram Scott, Lehman Brothers. who succeeds the company’s founder after 30 years. Merchantry: Rick Watson, 38, joined the e-commerce company as vice president Mr. Scott, who was president of U.S. commercial markets at Cigna prior to joining Affinity and has worked at TIAA-CREF, of operations. He was previously general brings valuable experience to the growing health plan. “He has worked closely with public officials, and that is a big part of manager, marketplace, for Barnes & our job now,” said Ms. Falkenberg, “And he shares our vision that it is our responsibility to improve the health of the Noble. community.” —EVA SAVIANO Time Warner Cable: Gregg Cory, 40, joined as area vice president of southern Manhattan, a newly created position. He was previously director of operations for Connecticut and Hudson Valley at Cablevision. Brien Kelley, 55, was promoted to area vice president for Queens and Brooklyn, a newly created position. He was previously vice president of technical operations. Anthony Ontiveros, 52, joined as area vice president for northern Manhattan, Staten Island, Mount Vernon and New Jersey, a newly created position. He was previously vice president and general manager at RCN. Verizon Communications: Alberto Canal, 36, was SETTLING INTO A promoted to vice president of corporate communications. He was previously COMFORTABLE SEAT. director of corporate communications. Taykey: Matt Rosenberg, 47, joined the advertising agency as vice president of marketing, a newly created position. He NOT SETTLING. was previously vice president of ® solutions at SAY Media. Offering BusinessElite service on select coast-to-coast routes refl ects our belief that if LinkSmart: Mike Stigliano, 37, joined the you’re going to go the distance, so should we. That’s why you can unwind with amenities technology company as vice president of usually reserved for international travel on up to eight daily fl ights from JFK to LAX and up business development. He was to six to SFO. It’s a range of perks including in-fl ight Wi-Fi, menus curated by renowned previously director of business development at Hearst Digital. chef Michael Chiarello, and one of the most luxurious seats available at 35,000 feet. Warwick Hotel New York: Andrew After all, when you’re fl ying cross-country, you should fi nd comfort, not compromise. Schlesinger, 54, joined the hotel as general manager. He was previously general manager of food and beverage DELTA.COM/NYC for The Star in Sydney, Australia. The Kitano New York: Melissa Paston, 44, joined the hotel as catering sales manager. She was previously catering sales manager at the Hilton Times Square. Haynes and Boone: Linda Herman, 53, joined the law firm as of counsel. She was previously counsel at Bryan Cave. Madelyn Calabrese, 34, joined as a partner. She was previously a partner at Katten Muchin Rosenman. Daren Domina, 46, joined as a partner. He was previously a partner at Katten Muchin Rosenman. Park Madison Partners: Gentry Ashmore Hoit, 48, joined the real estate firm as a partner, a newly created position. She was previously a partner at Atlantic Assets Group and Atlantic Assets Summit. Katten Muchin Rosenman: David Y. Dickstein, 43, joined the law firm as a partner. He was previously a partner at K&L Gates. —eva saviano

EXECUTIVE PROMOTIONS The fastest way to get an announcement into Wi-Fi service available for purchase on JFK-LAX and JFK-SFO fl ights. Crain’s is to submit online. Fill out the form at www.crainsnewyork.com/section/ executive_moves. The Executive Moves column is also available online.

November 5, 2012 | Crain’s New York Business | 9 OPINION CRAIN’S NEW YORK BUSINESS

The next superstorm editor in chief Rance Crain publisher, vp Jill R. Kaplan fter New York puts itself back together be especially effective when the transit system is crippled. EDITORIAL Fees could be raised temporarily to prevent the kind of editor Glenn Coleman following Sandy’s destructive visit—a task managing editor Jeremy Smerd that will cost billions of dollars—we will vehicular onslaught that choked midtown Manhattan last deputy managing editors Valerie Block, week, costing businesses untold losses as people spent hours Erik Ipsen all have to confront a second question: assistant managing editor Erik Engquist how to prepare for the next superstorm. in gridlock. Without a traffic-control policy in place, the city senior producer, news Elisabeth Butler Cordova must resort to impromptu restrictions.The high-occupancy- news producer Lauren Elkies That’s going to cost big money as well, contributing editor Elaine Pofeldt of course. And while it’s troubling that vehicle dictum imposed last week is sensible. But it caused columnists Greg David, Alair Townsend backups at checkpoints because motorists were confused. crain’s health pulse editor Barbara Benson the debts incurred by local governments and public agencies senior reporters Theresa Agovino, have grown inexorably for decades, it bears mentioning that There may be ways to minimize the disruption of power Aaron Elstein, Lisa Fickenscher, Matthew Flamm A reporters Chris Bragg, Amanda Fung, Daniel Geiger, failures, such as solar-powered cell towers.The loss of the expense of smart storm planning reduces the cost of Andrew J. Hawkins, Annie Karni, future storm recovery. It prevents a lot of misery, too. mobile-phone service was salt in the wounds of those in Adrianne Pasquarelli But what should be done? The answers include both Manhattan without web reporter, producer Nazish Dholakia art director Steven Krupinski infrastructure work and policy reforms.The former involves Sea walls? Yes. electricity last week. deputy art director Carolyn McClain things like higher sea walls and better protection of the Better broadband, staff photographer Buck Ennis copy desk chief Steve Noveck equipment crucial to the power grid and mass transit.The But traffic and perhaps even citywide copy editor Thaddeus Rutkowski latter will involve making our transportation network more Wi-Fi, would facilitate data editor Suzanne Panara telecom walls, too assistant data editor Emily Laermer flexible and adaptable, as well as more revenue-conscious. telecommuting and researchers Eva Saviano, Amy Stern Yes, that is code for East River bridge tolls and other pricing overall communication intern Ali Elkin mechanisms to shape commuting behavior and raise money. during transit ONLINE AND INTERACTIVE SERVICES We’ll leave the engineering to the engineers and instead emergencies. senior web developer, interactive Chris O’Donnell broach some policy prescriptions.Thorough reconsideration Politicians have had trouble lately asking taxpayers for of our building code and zoning is needed to align them with infrastructure funding. Should their courage continue to fail ADVERTISING, MARKETING AND PRODUCTION advertising director Trish Henry the realities of climate change and rising sea levels, and to them, they could ask voters to approve a bond issue for senior account managers Irene Bar-Am, incorporate new technologies to make the built environment hurricane preparedness. But first, the planners and engineers Courtney McCombs, Suzanne Wilson account executive Jill Bottomley Kunkes more weather-resistant. In some cases, infrastructure may must put forth a list of sensible flood-prevention measures. sales coordinator Danielle Wiener need to be moved out of nature’s way, not into it. Smart projects would save money in the long term. With newsletter product manager Alexis Sinclair credit Todd J. Masura (313-446-6097) Congestion pricing, which New York needs no matter the extreme weather becoming more frequent, the long term director, audience development climate to optimize traffic flow and generate revenue, would might be shorter than anyone expects. Michael O’Connor senior marketing manager Catherine Schutten event producer Courtney Williams reprint sales manager Lauren Melesio CRAIN’S ONLINE POLL COMMENTS production and pre-press director Michael Corsi advertising production manager Suzanne Fleischman Wies Marathon man-up TO SUBSCRIBE: For print and digital subscriptions or customer STAY IN THE RACE! need to realize that the which is exactly what packs the service, e-mail [email protected] government can’t help them in many cellars of downtown and or call 877-824-9379 (in the U.S. and Canada) or Re your Nov. 1 reader poll, most cases of serious disaster. the subway tunnels. Pumping 313-446-0450 (all other locations). $3.00 a copy for the print edition; or $99.95 one year, $179.95 two “Should the ING New York This was not anywhere near as out the water is the easy part. newscom years, for print subscriptions with digital access. City Marathon be called off?”: bad as it could have been. (I am —premature www.crainsnewyork.com/subscribe SHOULD THE ING NEW I understand the concerns of not saying it wasn’t bad, but it YORK CITY MARATHON those not in favor of holding could have been much worse.) LESSONS TO ADVERTISE: the race so soon after the deadly People must learn to think and FROM THE DELUGE Contact Advertising Director Trish Henry at HAVE BEEN CANCELED? Superstorm Sandy upended the prepare. I was amazed, but not [email protected] or call 212-210-0711. www.crainsnewyork.com/advertise Yes. This is not the time to divert hundreds of entire city, but I believe the surprised, by how many people You asked in an online poll, police and fire personnel from post-storm positive energy that this event didn’t fill up their cars before “What is the greatest lesson of FOR INFORMATION ON OUR EVENTS: recovery efforts. brings to New York and New the storm, stock up on food, Sandy for NYC?” Here’s one: Contact Event Producer Courtney Williams at Yorkers every year far batteries, grills, etc. If this were Don’t build in Zone A areas. I [email protected] or 212-210-0257. No. The race with nearly 50,000 runners will outweighs the potential really bad, they’d be stuck and live in Long Island City, in the www.crainsnewyork.com/events be an important symbol of New York’s ability to negative repercussions. I ran the in trouble. PowerHouse, which was five bounce back from Hurricane Sandy NYC Marathon in 2002, and I —dave feet under water.The lobby, gym TO CONTACT THE NEWSROOM: Date of poll: Nov. 1 don’t care what the “outside” and bike room are destroyed, 711 Third Ave., New York, NY 10017-4036 212 votes world thinks of us either way— and we have no electricity (not editorial phone: 212.210.0277 fax 212.210.0799 DON’T COMPARE SANDY Entire contents ©copyright 2012 Crain Communications Inc. this annual event is for us New WITH 9/11 even backup) and no hot water. All rights reserved. ®CityBusiness is a registered trademark Yorkers and for those who have Next door, a 1,100-student of MCP Inc., used under license agreement. worked so hard to be a part of it It’s too early for Greg David to high school is being built and is and make it happen, many of be comparing the storm’s scheduled to open next year. PUBLISHED BY CRAIN COMMUNICATIONS INC. whom are running to raise property damage and jobs (Right!) In addition, there are chairman Keith E. Crain 38% money and awareness for impact in his blog. Sandy’s plans to construct housing for president Rance Crain No secretary Merrilee Crain charitable organizations. destruction is much like an 5,000 families. I wonder how treasurer Mary Kay Crain —steve rowe iceberg—much of it is below these plans got approved and executive vp, operations William Morrow ground, to a scale that Mr. why our otherwise so-smart senior vp, group publisher Gloria Scoby 62% David and the rest of the media mayor is enthusiastically group vp, technology, circulation, Yes BE PREPARED, KIDS seem to be blind to. behind the project, called manufacturing Robert C. Adams Re “Gas shortage idles NYC” Salt water is a killer of Hunters Point South. vp/production, manufacturing David Kamis Paul Dalpiaz (CrainsNewYork.com): People delicate electrical systems, —michael botlo chief information officer founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) FOR THIS WEEK’S QUESTIONS: CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to [email protected]. Send columns of 475 Go to www.crainsnewyork.com/poll to have your say. words or fewer to [email protected]. Please include the writer’s name, company, address and telephone number.

10 | Crain’s New York Business | November 5, 2012 85% of what they spent and probably more. That money is already flowing Despite storm, NY’s to suppliers and especially workers who are putting in enormous over- time—and getting paid for it. economy will thrive The storm caused an economic disruption that lasted for almost the xactly one year after the Sept. 11 terrorist attacks, entire week. Yet the city’s hotel in- dustry provides the best example of the city comptroller at the time,William Thomp- how one business’s loss is another’s son,issued a dire report.He put the cost of the dis- gain. As Crain’s reported last week, aster to the city at $83 billion.He said some 83,000 hotels that remained open—and jobs had been lost and warned that the total eco- that’s the overwhelming majority of them—reported 100% occupancy, Enomic decline could top $100 billion. even some that didn’t have hot wa- To reach that conclusion,he had made an important assump- ter or electricity. tion.The modest decline in the city’s economy that had occurred Think of it this way.A Broadway in the first nine months of 2001 would have ended except for show that is closing in the next few weeks will never make up the losses the attacks. “On a single day,” Mr. from Monday’s and Tuesday’s dark Thompson claimed, “the economic theaters. Other shows will do fine picture of the city changed.” because theatergoers will take their It was a ridiculous statement. refunds and buy tickets to future Wall Street was about to jettison performances. more than 35,000 jobs not because The damage and disruption is of the Sept. 11 tragedy but because much greater, of course, in New Jer- of the Internet bust. sey and on Long Island. Economists The exaggeration of the impact admit there are cases where hurri- of 9/11 is a guide to how to predict canes have permanently damaged the economic consequences of relatively small geographic areas, Superstorm Sandy. Economists most notably the Ninth Ward in New have extensively studied disasters Orleans and the Homestead area of such as hurricanes, and with only a GREG DAVID Miami.They also note that those two few exceptions, they come to the neighborhoods were poor before the same conclusion: The immediate storm and economically fragile. New economic losses are made up during Some public infrastructure, includ- Jersey and Long Island are among the the rebuilding. ing Con Edison facilities, has been richest places in the country.The ba- This sounds callous. The loss of put out of commission. Again, the sic economic equation will take hold life is tragic. Many businesses will problem is repair, not replacement. again: Insurance and federal recovery suffer, and some small businesses in Homes have been lost in Queens money will unleash a building boom particular will be hurt. But it is easy, and on Staten Island, but the total is that will ripple throughout the local too easy,to focus on the plight of the in the hundreds, not the thousands. economy. losers from a disaster and ignore the In all these cases,hundreds of mil- Some numbers put all this in per- many winners. As economists say, lions, if not billions, of dollars will spective. Moody’s Analytics put the you have to look at the offsets. soon be arriving to pay these costs. storm losses at $50 billion, about $30 Let’s start with the situation in Private insurers will foot most of the billion of it in property damage. If the city. bill for private infrastructure, al- New York accounts for a third, then Property damage has, frankly, though homeowners will get money the total would be around $17 billion. not been that extensive. Some only if they signed up for federal flood That is about 1% of the New York buildings, especially downtown, insurance. The federal government area’s $1.3 trillion gross metropolitan have been flooded and need to be re- will also reimburse the city, the state, product—and even that will be re- paired. None have been destroyed, the Metropolitan Transportation duced by insurance and the offset of as happened in the terrorist attacks. Authority and Con Ed for at least storm-related rebuilding and repair. The Sept. 11 comparison is the BREEZY POINT RESIDENTS most telling. Three years after the console each other after a attacks, researchers at the New York devastating post-storm fire Federal Reserve Bank showed that destroyed more than 80 homes in the Queens neighborhood. the employment losses from the dis- ruption were only about half what the comptroller claimed, and that they had been overcome in about a year. No job will disappear because of Sandy. The leading historian of New York had predicted that outcome in a meeting with the staff of Crain’s a few months after Sept. 11. Kenneth Jackson recounted a series of disas- ters that had shaken the city—the 1904 General Slocum ferry sinking, which killed 1,021 passengers; the 1911 Triangle Shirtwaist Factory fire, which cost 146 workers their lives; and the devastating 1938 hur- ricane known as the Long Island Express,which caused great damage in Brooklyn and Queens—and asked if any had altered New York’s future. None had. Sept. 11 didn’t fundamentally change much about the city’s econ- omy, which recovered from the 2001-2003 recession when Wall Street did. Sandy won’t, either, which means the city’s economic re-

bloomberg newsbloomberg covery will continue.

November 5, 2012 | Crain’s New York Business | 11 20121105-NEWS--0012-NAT-CCI-CN_-- 11/1/2012 8:13 PM Page 1

REAL ESTATE DEALS PLUS

BARE BONES 11 W. 42ND ST. 1407 BROADWAY 135 W. 50TH ST. Office landlords ASKING RENT; TERM: ASKING RENT; TERM: ASKING RENT; TERM: $55 per square foot; $250 per square foot; $40 per SF; seven yrs. 10 years 15 years SQUARE FEET: SQUARE FEET: 9,000 SQUARE FEET: 1,400 41,000 pick up the pieces ground, 300 mezz. TENANT; REP: TENANT; REPS: Michael Kors; Glenn TENANT; REP: Pie Fareportal; Corey ommercial office landlords in lower Manhattan continued to Markman of Cushman Face; Robert Bonicoro Abdo and Kristy Park & Wakefield of CBRE Group of Winoker Realty mop up floodwaters late last week as they tried to assay the damage wrought by Hurricane Sandy. Some owners in the LANDLORD; REP: Tishman Speyer; Greg LANDLORD; REPS: Lightstone Group; SUBLANDLORD; REPS: Conen in-house Joshua Gettler and Matthew Gorman of AllianceBernstein; Bob Alexander and scores of affected buildings expected to have their properties New Street Realty Scott Bogett of CBRE up and running as soon as Con Edison could restore power. BACK STORY: The fashion designer Others are likely to be uninhabitable for weeks. expands in the building where its BACK STORY: Australian meat and fruit BACK STORY: The online travel group is C headquarters now spans nearly 120,000 pie company Pie Face is lured to a busy moving its headquarters and will The city’s largest office building, 55 Water St., as well as both 1 and 4 New square feet. street by the opportunity to serve consolidate three offices, according to The York Plaza at Manhattan’s southern tip, could be offline for weeks, according customers seven days a week. Commercial Observer. to sources, because the flood of salty water has compromised power and

building systems. As of Thursday morning, Rudin Management Chief Execu- tive Bill Rudin said workers at his four large downtown office towers had spent Wednesday pumping them dry. “Now we’re in the assessment phase,” he said. “Engineers and our operations team as we speak are in- specting the damage and reporting back on the timelines it’s going to take to make repairs.” Mr. Rudin said several feet of water collected in the basements of a few of his downtown buildings in the wake of the 14-foot storm surge, and that some—including 1.1 million-square-foot 80 Pine St.— could be closed for weeks. Sensitive equipment, including electrical and elevator systems as well as heating and ventilation equipment, is often housed below ground. “It looks like weeks, but we just don’t know yet,” Mr. Rudin said. “Hopefully, we will find out the damage wasn’t as extensive as we initially thought and we can open up sooner.” —daniel geiger LinkedIn doubles New York space

LinkedIn, the popular social net- work for business professionals, is expanding its office in the Empire State Building. The Mountain View, Calif.- based company has signed a 10-year lease for 40,780 square feet of space ® at the tower, bringing its total foot- CAPITAL ONE BANK SMALL BUSINESS print to 73,000 square feet.The ask- SM CLEAR ADVANTAGE MONEY MARKET ing rent for the 23rd-floor space was $51 per square foot. “The Empire State Building provides them with the best campus environment in the middle of the city,” said Anthony Malkin, presi- dent of Malkin Holdings, which is On account balances of $25,000 or more an owner of the property and its as- A SMALL BUSINESS No monthly service charge when you maintain set manager. Late next year, tenants a balance of $5,000 will get two new amenities, a MONEY MARKET ACCOUNT tenant-only fitness center and a Access your cash when you need it, while you earn conference facility. THAT REALLY STACKS UP Get the security and stability of a top-10 U.S. bank LinkedIn moved into the build- ing’s 25th floor last year, establish- ing a corporate office mainly for sales staff. The company was represented by Sacha Zarba, a broker at CBRE VISIT A BRANCH OR CALL TOLL-FREE 1-888-755-C1SB (2172) Group Inc., while the building was represented by William Cohen and Annual Percentage Yield (APY) available only with balances of $25,000 – $500,000. Rate guaranteed for 12 months. Monthly service fee of $15 charged if average daily balance is less than $5,000. Ryan Kass, brokers at Newmark Monthly withdrawal limits may apply. Minimum of $50 required to open. Visit a branch for details. Offered by Capital One, N.A., Member FDIC. Grubb Knight Frank. —amanda fung

12 | Crain’s New York Business | November 5, 2012 EDUCATION ‘In private universities, there’s no question there’s an arms race going on’ —Travis Reindl, program director of the education division of the REPORT National Governors Association

VALUABLE LESSON: President Richard Guarasci Keeping said Wagner College can’t cut its way to prosperity; it has to increase productivity. Pace with downtown growth

University’s new buildings boost its profile amid area building boom

BY HILARY POTKEWITZ

While Columbia University,New York University and Cornell Uni- versity throw their weight around with massive, billion-dollar proj- ects, Pace University’s expansion in lower Manhattan has gone largely unnoticed outside its downtown neighborhood. Once considered a commuter school, Pace is building two big dorms—a 30-story tower at 33 Beekman St. and a 24-story structure at 180 Broadway, each designed to house at least 600 students.It’s also renovating a va- cant build- ing at 140 William St. RISING for its per- forming- arts school. 600 The NUMBER OF projects STUDENTS who will stem from fit in each of Pace’s climbing two new towers, the Pace enroll- same number it now ment as its houses in Brooklyn programs gain recognition—for example,

david neff david its Actors Studio Drama School this year was named one of the top 25 drama schools in the coun- try by The Hollywood Reporter— and from the university’s drive to create a campus-like environ- Tuition gulf is widening ment. ‘Vibrant campus life’ Private institutions tivities fees and other expenses. IVORY stitutions for academic and financial “We’ve had steady increase in By comparison,tuition at the State supremacy. They are spending vast enrollment for the last five years, spend vast sums; University of New York at Albany for TOWER sums on faculty, facilities and finan- and there’s more of an interest in a state resident is $5,570. cial aid in an effort to attract top stu- living in dorms,” said university high expectations, bid Why such a disparity? The obvious dents, well-heeled donors and gov- President Stephen Friedman. for prestige blamed answer—that SUNY is subsidized by ernment research funds. “The idea is to integrate living in taxpayers—actually explains only a Public universities, with relatively New York more closely with the fraction of the difference.Private uni- puny endowments and with tight- academic experience.” BY JUDITH MESSINA versities also subsidize many students, fisted legislators peering over their The school has more than not with taxpayer money but with shoulders, have less to spend and less 12,500 students spread over cam- The tuition for a year at Columbia philanthropic dollars and, in the case ability to make the grand gestures that puses in Manhattan, Pleas- University is an eye-popping $45,028. of wealthy institutions, with their en- could put them on the elite-school map. antville and White Plains. Most At New York University, it’s $40,878. dowments. “In private universities, there’s no of Pace’s 2,000 Manhattan stu- Fordham University charges $41,000, The price gulf between the two question there’s an arms race going dents live in the borough, while and even at much smaller Wagner ends of the higher-education spec- on,”said Travis Reindl,program direc- about 600 are in leased space in College on Staten Island, the bill runs trum is better explained by looking at tor of the education division of the Na- Brooklyn Heights (the university to $37,240—not counting lab fees,ac- the battle being waged by private in- See TUITION on Page 16 See PACE on Page 14

November 5, 2012 | Crain’s New York Business | 13 REPORT EDUCATION

PACE UNIVERSITY Pace construction is building housing so more of its downtown-campus Continued from Page 13 students can live University is erecting a 22-story law- there. provides shuttle service to 1 Pace school building, the first part of a Plaza). $1.6 billion development at its Up- About 75% of the Manhattan per West Side campus. component’s incoming freshmen Higher education is one of the request to live in dorms. Pace wants engines of the city. Now being pro- to move them all within walking moted by the Bloomberg adminis- distance of the school. tration as a way to diversify the “Look, we’re New Yorkers—we economy, it employs more than know that Brooklyn Heights is a 115,500 people, accounting for great neighborhood, but it’s impor- 3.2% of employment and 2.4% of tant that we create a vibrant campus payroll. Nearly 672,000 New York- life experience for 24-hour learn- ers are enrolled in undergraduate, ing,” said William McGrath, senior graduate or professional degree pro- vice president and chief administra- grams here, according to census tive officer at Pace. data—that’s one in 12 city residents. For Pace’s expansion, developer Higher-ed expansion SL Green will handle the two dorm The city is experiencing a higher- projects.The 180 Broadway property ed boom. Aside from the expansion will have retail on the first three floors. projects by Pace, Columbia and SL Green and partner Jeff Sutton se- NYU,Cornell is preparing to build a cured a $90 million loan for the proj-

$2 billion applied-sciences campus ect. The renovation on William university pace on Roosevelt Island called Cornell- Street will include a 100-seat theater. NYC Tech. NYU is creating a tech Though Pace won’t reveal the for their expansions. the university, whose $125 million the level of protests. campus of its own in a downtown overall cost, it’s surely far less than Nevertheless, the Pace projects endowment pales beside Columbia’s “Overall, the community is Brooklyn office building. Fordham the wealthier universities are paying represent a significant investment for (nearly $8 billion) and Cornell’s ($5.2 thrilled,” said Ms. McVay Hughes, billion).Pace has $111 million in debt “but for the immediate neighbors issued through the state Dormitory next to the construction site, it’s Authority, according to Moody’s. been hard to have peace and quiet.” The money is coming from Yet in the noise and inconven- growth in enrollment and donations ience department,Pace is the least of from recent fundraising efforts. their problems. The dorm at 180 Pace also got $1 million from the Broadway is just one of five con- Lower Manhattan Development struction projects on the same Corp. for the William Street proj- block.And other projects are under- ect.“The grant helped us secure that way in the community board’s one- building,” Mr. McGrath said. square-mile district. What’s ahead of you A key boost to the university’s ac- The new Fulton Street Transit cess to finance came last April, when Center has been a work site since depends on who’s behind you. Standard & Poor’s upgraded the uni- 2005.The World Trade Center mu- versity’s bond rating to BBB- with a seum and memorial projects have “positive” outlook, up from BB+. been a constant presence. Countless That made borrowing cheaper. office buildings have been convert- “The university’s demand has ed to condominiums—an ongoing stabilized, and financial perform- ance and financial management have improved,” the ratings agency ‘It’s important said in its report, which cited sub- stantial growth in full-time under- that we create a graduates from 2008 to 2011. vibrant campus Financial outlook S&P analysts expressed confi- life experience Professionally focused master’s degrees and graduate certifi cates dence that the trend would continue and that new debt would be offset by for 24-hour In today’s challenging job market, opportunity remains strong for professionals with the training, the expertise, and the liquidity and growth. Moody’s networking capabilities needed to compete and succeed. The NYU School of Continuing and Professional Studies (NYU-SCPS) maintained a Ba1 rating and a “sta- learning’ ble” outlook for Pace in July. off ers 16 master’s degrees and 12 graduate certificates – taught by professionals for professionals. Whether you seek to While NYU’s and Columbia’s launch, advance, or change your career, NYU-SCPS delivers the knowledge base and the real-world skill set to gain the projects have been fraught with op- competitive edge. position and controversy—critics Flexible course schedules, and online and traditional formats are available. blasted NYU’s for being too large for Greenwich Village and Colum- phenomenon—and water mains bia’s for its use of eminent domain in and other infrastructure repaired. Advanced Digital Applications Hospitality Industry Studies Publishing: Digital and Print Media Manhattanville—Pace’s relation- In fact,the area has 69 active con- Construction Management Human Resource Management Real Estate ship with its local community board struction sites—so many that the Fundraising and Grantmaking and Development Real Estate Development seems downright neighborly. city established the Lower Manhat- Global Aff airs Integrated Marketing Sports Business “The downtown community has tan Construction Command Cen- Tourism Management Graphic Communications Management Management and Systems welcomed their expansion,” said ter to coordinate projects and keep and Technology Public Relations and Corporate Translation Community Board 1 Chairwoman the community informed. Communication Catherine McVay Hughes, who is Pace is one of the projects where enthusiastic about the performing- the end is actually in sight:The new Information Session: Wednesday, November 14, 6–8 p.m. arts space planned for 140 William performing-arts center is scheduled Kimmel Center, 60 Washington Square South, New York, NY To learn more about graduate programs, visit us at: St. “They’ll be fulfilling a wonderful for completion in December, the For event information and to RSVP visit scps.nyu.edu/graduate-events1g scps.nyu.edu/graduate1g or call 212-998-7100 niche, especially in dance.” dorm at 180 Broadway by next fall To be sure, there have been con- and the one at 33 Beekman by 2015, flicts. Construction at 180 Broad- although last week’s severe flooding To request information and to apply: scps.nyu.edu/gradinfo1g way started two months behind may affect construction schedules. schedule, so the project was fast- “We’re looking forward to having

New York University is an affi rmative action/equal opportunity institution. ©2012 New York University School of Continuing and Professional Studies. tracked and its hours extended, students on the sidewalks,” said Ms. which made neighbors unhappy. McVay Hughes,“instead of construc- But those complaints hardly rose to tion equipment and scaffolding.” Ⅲ

14 | Crain’s New York Business | November 5, 2012 A celebration of the people and programs that enrich every part of the University. – Chancellor Matthew Goldstein

pen Houses, admissions and fi nancial-aid workshops, lectures, museum exhibits, sports tournaments, book talks, performances, Oand panel discussions with world-class faculty, high-achieving students and honored guests: visit cuny.edu/cunymonth

NOV. 4 NOV. 29 THROUGH DEC. 5 THE MAMMOTH SHIRLEY PUERTO RICO FOLLIES — CHISHOLM DAY IN ITS LABYRINTH, DINOSAUR PUPPETS NOV. 7 Brooklyn College by Sculptor José College of Staten BOOK TALK 11 a.m. Buscaglia Island “The Italians Free Hostos Community 3-4 p.m. $12, $15 of New York” College By Maurizio NOV. 1-JUNE 27, 2013 Time varies NOV. 4 Molinari YEAR OF INDIA: Free THE NATIONAL Calandra “Art From the Land of the CIRCUS OF THE Institute PEOPLE’S REPUBLIC Peacock” 6 p.m. OF CHINA Queens College Free Lehman College 9 a.m.-8 p.m. 4-6 p.m. Free NOV. 8 NOV. 14 NOV. 17 $25-$45; children KRISTALLNACHT TOLERANCE AND IVANOV BY 12 and under, COMMEMORATION: FORGIVENESS: ANTON CHEKHOV $10 Returning, Symposium on Borough of

Remembering, Transitional Manhattan Forgiving Justice in Sudan Community City Tech Bronx Community College Atrium College 7:30 p.m. 12:45-2 p.m. 2 p.m. $35-$75 Free Free THROUGH JAN. 9, 2013 NOV. 27 SPACE NOV. 12 NOV. 16 YIP HARBURG: INVADERS — WATER POLLUTION THE DOO WOP Legendary Lyricist 18 artists who use CRISIS PROJECT Graduate Center THROUGH APRIL 5, unique spaces York College Featuring cast 6:30 p.m. 2013 Lehman College 1 p.m. members of Free “A LINE AROUND Tues.-Sat. 10 a.m. Free Broadway’s AN AREA” -4 p.m. “Jersey Boys” NOV. 27 City College Free NOV. 13 -JAN. 25 Kingsborough JOYCE CAROL OATES School of Architecture “THE END OF Community Hunter College 9 a.m.-5 p.m. POVERTY” College 7 p.m. Free John Jay College 8 p.m. Free but must reserve NOV. 5 President’s Art Gallery $30 GAY TALESE 8:45 a.m.-4 p.m. Hunter College 7 p.m. Free

For a complete listing of Open Houses at all CUNY colleges and details on hundreds of other events during CUNY Month visit www.cuny.edu/cunymonth REPORT EDUCATION

a fully wired campus, a food court, a “Shanghai, Abu Dhabi and Poly are money to meet the expectations of fitness center, state-of-the-art labs part of that.” students and their parents. and air-conditioned dorms and “You can see it as trying to keep Tuition gulf widens Maintaining ratios classrooms, not to mention re- up with other [institutions], but cruiters, career counselors, mental- Elite private schools also pay fac- we’re also trying to keep up with the Continued from Page 13 for undergraduates was 36.4%. At health counselors and other student ulty more and hire more of them to expectations families have of us,” tional Governors Association, a Fordham, just 7% of first-time, full- services once considered luxuries. maintain the low student-faculty ra- said the Rev.Joseph McShane,pres- Washington think tank. “They are time freshmen pay full tuition, and And while no New York institu- tios they market. Full Columbia pro- ident of Fordham University. trying to capture a share of a really the university estimates that in 2008 tion apparently has put in a game ar- fessors make $197,800 on average,up “Morally, that’s the greater expecta- competitive market, and if they don’t it spent $5,000 more a year to edu- cade or the ergonomic, electronical- $84,400 since 2000, according to The tion I have to deal with.” figure out ways to enhance the qual- cate a student than it collected in tu- ly controlled nap pods that a Florida Chronicle of Higher Education.The ra- Below the radar, however, ity of their product, they’re going to ition. SUNY undergraduate stu- school recently installed, local tio of students to teachers is 6 to 1.At schools—particularly public insti- lose out.” dents pay less than half of the all-in schools are sinking billions into NYU,full professors make $182,400, tutions—are beginning to attack According to the research arm of $14,000 annual instructional cost. buildings and programs. Capital and the ratio is 11 to 1. Compare that costs, pruning administrative ex- the College How long colleges can keep rais- funds are raised from donors and with SUNY Albany: full professors penses and improving productivity Board, the price ing prices is debatable. The college- bond issues, but ultimately institu- earn $128,000 and the ratio is 19:1— in academic programs. At SUNY, $14K tag at both public age population is declining—sharp- tions foot the bill for operations. respectable, but three times Colum- senior professors pulling down high ANNUAL COST and private insti- ening the already fierce Wagner College, for one, has bia’s ratio. salaries are often replaced by junior to educate an tutions has more competition—while jobless and spent $60 million over 10 years “You’re buying a gestalt,” said faculty when they leave or retire,and undergraduate than doubled debt-burdened graduates, their par- maintaining and modernizing its Ms. Wellman. the 64 campuses in the system are student at SUNY over the past 30 ents and the broader public are ques- campus, including renovating and Critics of the inexorable growth increasingly sharing staff and serv- years. In the past tioning the value of higher education. wiring a building that dates back to in tuition blame colleges for profliga- ices. NYU has reduced administra- decade, private four-year colleges 1929. Columbia is building a $6.4 cy, saying they spend whatever they tive costs through re-engineering. have hiked tuition by an average of Pushback on prices billion science and business campus have, whether from tuition, govern- In 2008, Wagner College re- 2.6% a year. At public colleges and “At the high end, with big-name in Manhattanville, and Fordham has ment funds or philanthropy, rather duced its student count by 120, or universities, which are being schools,we haven’t gotten close yet to a new law-school building and resi- than trying to increase productivity. 5%, saving on faculty and adminis- squeezed by diminishing public where they are seeing a rebellion dence hall in the works. NYU has “If they are able to get away with trators. Now a task force is looking subsidies, tuition has gone up even about price,” said Jane Wellman, ex- new campuses in Abu Dhabi and raising tuition, they’ll do that and at increasing efficiency, sharing more: an average of 4.1% a year. ecutive director of the National As- Shanghai and city approval for an then spend the money on some- services with other institutions and In the end, few students pay the sociation of System Heads,an organ- ambitious expansion in Greenwich thing,”said Andrew Gillen,research using technology more as a teaching sticker price because schools show- ization of the heads of public colleges Village. In 2008, it absorbed Brook- director of Washington,D.C.-based tool. The goal is to reduce costs by er them with financial aid. What and universities. “Everywhere else, lyn Polytechnic Institute—it could think tank Education Sector. “The 25% over the next several years. they actually pay—the net tuition— there’s pushback.We’re going to con- not aspire to be a world-class institu- money is not necessarily wasted, but “To say the business model in often doesn’t cover costs. A survey tinue to see huge growth in stratifi- tion without an engineering school. whatever money they get their hands higher education is flawed would be by the National Association of Col- cation in higher education.” “We’ve tried to view things in on, they are going to spend.” generous,” said Wagner President lege and University Business Offi- In the meantime, where is the terms of their ability to attract real- Colleges argue that higher edu- Richard Guarasci.“We can’t cut our cers found that in the 2010-2011 ac- money going? For starters, no insti- ly top faculty and top students,” said cation is labor-intensive and say way to prosperity.We have to figure ademic year, the average discount tution can get by these days without NYU Vice Chancellor Dick Foley. they have to spend more and more out ways to increase productivity.” Ⅲ

16 | Crain’s New York Business | November 5, 2012 JOIN TOP WOMEN EXECUTIVES December 4, 2012 Join us for this important Morning Workshop, at the Hilton New York, for an exciting opportunity to network and hear from top women executives on how to deal with these important topics: 2012 ● Achieving Effective Work Life Balance ● Bridging the Wage Gap ● Using Sponsorship to Break into the Executive Suite LEADERSHIP WORKSHOP Register today!

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Beth Bierbower, President, Employer Group Segment, Humana Bonnie Boone, Senior VP and Health Care Practice Leader, Suzy Welch, Alliant Healthcare Solutions The best-selling author, Celia Brown, Group Human Resources Director, Willis Group Holdings popular television commentator, and noted Elizabeth Francy Demaret, Chief Customer Relationship Offi cer, business journalist will Sedgwick CMS be the keynote speaker Helene Fisher, Commercial Head Underwriting Quality, Chartis at the Leadership Will Fahey, Senior VP, Zurich North America Photo: Deborah Feingold workshop. Trevor Gandy, Chief Diversity Offi cer, Chubb Corp. Eric Hutcherson, Managing Dir., HR Leader, U.S. & Canada Division, Marsh Inc. , Ph.D. Meryle Mahrer Kaplan , Senior VP, advisory services, Catalyst Inc. Signed copies of Suzy Deborah Luthi, President of Risk & Insurance Management Society Welch’s new book 10-10-10 for all Seraina Maag, CEO, of XL North America pre-registered Carol Murphy, Managing Dir., Aon Risk Solutions workshop attendees Kathleen Savio, Chief Administrative Offi cer, Zurich North America James Turley, CEO, Ernst & Young

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Media Partner: TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM EVENT PUBLIC & LEGAL NOTICES Notice of Qualification of BOF LLC. Notice of Qual. of Stimulated Notice of Qualification of CERBERUS Notice of Qualification of Tetra Tech North Dakota & The Bakken Authority filed with Secy. of State of Motorsports International LLC, Auth. LEVERED LOAN OPPORTUNITIES New Martinsville, LLC. Authority filed Investor Conference NY (SSNY) on 9/26/12. Office location: filed Sec’y of State (SSNY) 7/31/12. FUND II, L.P. Authority filed with Secy. with NY Dept. of State on 10/4/12. • NY County. LLC formed in Delaware Office loc.: NY County. LLC org. in DE of State of NY (SSNY) on 10/16/12. Office location: NY County. Princ. bus. Nov. 13 8 am - 4:30 pm (DE) on 3/14/11. SSNY designated 7/27/12. SSNY desig. as agent of LLC Office location: NY County. LP formed addr.: 3475 E. Foothill Blvd., Pasadena, Learn from industry experts at the vast num- as agent of LLC upon whom process upon whom process against it may in Delaware (DE) on 08/31/12. Princ. CA 91107. LLC formed in DE on against it may be served. SSNY be served. SSNY shall mail copy of office of LP: 875 Third Ave., 11th Fl., 2/4/11. NY Sec. of State designated ber opportunities that North Dakota and the shall mail process to: c/o CT proc. to NRAI, 111 Eighth Ave., NY, NY, NY 10022. SSNY designated as agent of LLC upon whom process Bakken has to offer. Over 25 billion barrels Corporation System, 111 Eighth Ave., NY 10011, the Reg. Agt. upon whom agent of LP upon whom process against it may be served and shall NY, NY 10011, also the registered proc. may be served. DE off. addr.: against it may be served. SSNY shall mail process to: c/o CT Corporation of recoverable oil provide opportunities for agent. Principal office: 805 Third 160 Greentree Dr., Ste. 101, Dover, mail process to Seth P. Plattus, c/o System, 111 8th Ave., NY, NY 10011, investors in Oil, Gas, Real Estate & Business: Ave., 7th Fl., NY, NY 10022. Address DE 19904. Cert. of Form. on file: the LLC at the princ. office of the LP. regd. agent upon whom process may to be maintained in DE: Corporation SSDE, Townsend Bldg., Dover, DE Name and addr. of each general be served. DE addr. of LLC: 1209 www.bakkensummit.com Trust Center, 1209 Orange St., 19901. Purp.: any lawful activities. partner are available from SSNY. DE Orange St., Wilmington, DE 19801. Sheraton New York Wilmington, DE 19801. Arts of Org. addr. of LP: c/o The Corporation Cert. of Form. filed with DE Sec. of filed with the DE Secretary of State, Notice of Formation of FOX HILL Trust Co., Corp. Trust Center, 1209 State, 401 Federal St., Dover, DE 811 Seventh Ave. at 53rd Street John G. Townsend Bldg., 401 Federal PRESERVATION, L.P. Arts. of Org. filed Orange St., Wilmington, DE 19801. 19901. Purpose: all lawful purposes. St., Ste. 4, Dover, DE 19901. with Secy. of State of NY (SSNY) on Arts. of Org. filed with DE Secy. of Purpose: any lawful activities. 10/15/12. Office location: NY County. State, John G. Townsend Bldg., 401 KADIMA LLC, a domestic LLC, Arts. TELECOMMUNICATIONS Princ. office of LLC: 60 Columbus Federal St., Ste. #4, Dover, DE of Org. filed with the SSNY on 8/8/12. Notice of Qual. of Tempus Quo Circle, NY, NY 10023. Latest date on 19901. Purpose: Any lawful activity. Office location: New York County. Horizon Fund, LP, Auth. filed Sec’y of which the LLC may dissolve is SSNY is designated as agent upon State (SSNY) 2/13/12. Office loc.: NY 12/31/2111. SSNY designated as Notice of Registration of NEW YORK whom process against the LLC may be County. LP org. in DE 8/3/11. SSNY agent of LLC upon whom process METROPOLITAN REGIONAL CENTER, served. SSNY shall mail process to: desig. as agent of LP upon whom against it may be served. SSNY shall L.P. I, Cert of LP filed with the SSNY The LLC, 290 West End Ave., Apt. 16C, 33 East 33rd Street process against it may be served. mail process to c/o Corporation on 08/28/2012. Office loc: NY County. NY, NY 10023. General Purposes. New York, NY 10016 SSNY shall mail copy of proc. to Att: Service Co., 80 State St., Albany, NY SSNY designated as agent of LP 212-532-7400 Raul Espejel, 900 Third Ave., 36th Fl., 12207. Purpose: Any lawful activity. upon whom process against it may Notice of Formation of 960 Bronx River be served. SSNY shall mail process [email protected] NY, NY 10022. DE off. addr.: CSC, Ave LLC. Arts. of Org. filed with Secy. 2711 Centerville Rd., Wilmington, DE NOTICE OF FORMATION OF Tyler to: The LP, 88 Pine St, 20th Fl, NY, of State of NY (SSNY) on 9/27/12. EMERGENCY 19808. Cert. of LP on file: SSDE, Bracken Designs, LLC. Arts of Org NY 10005. Purpose: Any Lawful Office location: NY County. SSNY COMMUNICATIONS Townsend Bldg., Dover, DE 19901. filed with Secy of State of NY (SSNY) Purpose. Latest date upon which LP designated as agent of LLC upon Name/addr. of each gen. ptr. avail. at on 6/29/12. Office location: NY is to dissolve: 01-01-2022. whom process against it may be SYSTEMS SSNY. Purp.: any lawful activities. County. SSNY designated as agent served. SSNY shall mail process to: 287 10TH AVENUE, LLC Articles of SPECIALISTS upon whom process may be served. Peter P. Benedetto II, 280 Madison Org. filed NY Sec. of State (SSNY) • FREE PICKUP & DELIVERY Notice of Formation of DAYTONA PO address to which SSNY shall Ave., Ste. 900, NY, NY 10016. 8/13/12. Office in NY Co. SSNY • 48 HOUR TURNAROUND PROMENADE PARTNERS, LLC. Arts. mail copy of process against LLC: Purpose: any lawful activities. of Org. filed with Secy. of State of NY 7014 13th Ave., Ste. 202, Bklyn, NY design. agent of LLC upon whom ON REPAIRS process may be served. SSNY shall (SSNY) on 09/14/12. Office location: 11228. Principal business address: NOTICE OF FORMATION OF 1A-60 • FREE ENGRAVING mail copy of process to C/O NY County. Princ. office of LLC: c/o 105 W 29th St., Apt. 30C, NY, NY COLLISTER STREET LLC. Arts of • SHORT & LONG TERM Dominick Incantalupo, P.O. Box 330, Cohen Commercial Properties, 9 E. 10001. Purpose: any lawful act. Org filed w/ Secy of State of NY RENTALS 109 Homestead Road, Oldwick, NJ 40th St., NY, NY 10016. SSNY (SSNY) on 6/25/12. Office location: 08858. Purpose: Any lawful activity. designated as agent of LLC upon MONARCH 20-D INVESTMENT, LLC, NY Co. SSNY designated agent whom process against it may be a foreign LLC, filed with the SSNY on upon whom process may be served. served. SSNY shall mail process to 8/7/12. Office location: New York NOTICE OF FORMATION OF NOVAEOUS LLC. Arts of Org filed PO address to which SSNY shall mail the LLC at the addr. of its princ. County. SSNY is designated as copy of process against LLC: 718 office. Purpose: Any lawful activity. agent upon whom process against with Secy of State of NY (SSNY) on 8/22/12. Office location: NY County. Ashford St. Bklyn, NY 11207. the LLC may be served. SSNY shall Principal business address: 60 NOTICE OF FORMATION OF SSNY designated as agent upon mail process to: The LLC, 200 E. Collister St #1B NY, NY 10013. ideaphore LLC. Arts of Org filed with 89th St., Apt. 20D, NY, NY 10128. whom process may be served. PO Secy of State of NY (SSNY) on address to which SSNY shall mail To place your General Purposes. Notice of Qual. of Tempus Quo 9/6/12. Office location: NY County. copy of process against LLC: US Alternative Fund, LP, Auth. filed SSNY designated as agent upon NOTICE OF FORMATION OF RM Prep, Corp Agents, Inc., 7014 13th Ave, classified ad call Sec’y of State (SSNY) 2/15/12. Office whom process may be served. PO LLC. Arts of Org filed with Secy of Bklyn, NY 11228. Principal business loc.: NY County. LP org. in DE address to which SSNY shall mail State of NY (SSNY) on 6/19/12. address: 49 W 96 St., #3D, NY, NY Joanne Barbieri @ 12/14/10. SSNY desig. as agent of copy of process against LLC: 7014 Office location: NY County. SSNY 10025. Purpose: any lawful act. LP upon whom process against it 13th Ave, Ste 202, Bklyn, NY, 11228 designated as agent upon whom 212-210-0189 may be served. SSNY shall mail c/o US Corp Agents, Inc. Principal process may be served. PO address Notice of Formation of Spruce 78 copy of proc. to Att: Raul Espejel, or Trish Henry @ business address: 201 E 86th St, NY, to which SSNY shall mail copy of Member LLC, Art. of Org. filed Sec’y of 900 Third Ave., 36th Fl., NY, NY NY 10028. Purpose: any lawful act. process against LLC: c/o US Corp State (SSNY) 6/29/12. Office location: 212-210-0711 Agents, Inc, 7014 13th Ave, Ste 202, NY County. SSNY designated as 10022. DE off. addr.: CSC, 2711 NOTICE OF FORMATION OF Leder Bklyn, NY 11228. Principal business agent of LLC upon whom process Centerville Rd., Wilmington, DE Capital Management LLC. Arts of address: 143 Reade St, #3C, NY, NY against it may be served. SSNY shall 19808. Cert. of LP on file: SSDE, Org filed with Secy of State of NY 10013. Purpose: any lawful act. mail copy of process to Att: Joshua Townsend Bldg., Dover, DE 19901. PUBLIC & (SSNY) on 9/24/12. Office location: Crane, 902 Broadway, 18th Fl., NY, NY Name/addr. of each gen. ptr. avail. at NY County. SSNY designated as NOTICE OF QUALIFICATION of 10010. Purpose: any lawful activities. SSNY. Purp.: any lawful activities. LEGAL NOTICES agent upon whom process may be Preppydom, LLC. App for Authority served. PO address to which SSNY filed with Secy of State of NY (SSNY) FRANKIE & COMPANY, LLC Articles Notice of Formation of a Limited shall mail copy of process against on 8/2/12. Office location: NY County. of Org. filed NY Sec. of State (SSNY) Liability Company (LLC): Name: SALIS Notice of Qualification of COSMOS LLC: c/o US Corp Agents, Inc., 7014 LLC formed in DE on 7/2/12. SSNY 10/12/12. Office in NY Co. SSNY RETIREMENT AND PENSION PLAN STADIUM, LLC. Authority filed with 13th Ave., Ste 202, Bklyn, NY 11228. designated agent upon whom process desig. agent of LLC upon whom LLC. Article of Organization filed with Secy. of State of NY (SSNY) on Principal business address: 150 may be served and shall mail copy of process may be served. SSNY shall the Secretary of State of New York 10/19/12. Office location: NY County. Ocean Ave, Ste 4B, Bklyn, NY process against LLC to principal mail copy of process to 263 E. 10th (SSNY) on 05/03/2012. Office Location: LLC formed in Delaware (DE) on 11225. Purpose: any lawful act. business address: 67 Riverside Dr, Apt St., NY, NY 10009, which is also the New York County. SSNY has been 09/25/12. Princ. office of LLC: 75 6C, NY, NY 10024. Cert of LLC filed principal business location. Purpose: designated as agent of the LLC upon Greene St., 2nd Fl., NY, NY 10012. NOTICE OF FORMATION OF Ryder with Secy of State of DE located: DE. Any lawful purpose. whom process against it may be SSNY designated as agent of LLC Street LLC. Arts of Org filed with the Purpose: any lawful act. served. SSNY shall mail a copy of the upon whom process against it may be Secy of State of NY (SSNY) on MANHATTAN HAVEN REALTY LLC, process to: C/O SALIS RETIREMENT served. SSNY shall mail process to 09/24/2012. Office location: NY NOTICE OF FORMATION OF Rickey Arts. of Org. filed with the SSNY on AND PENSION PLAN LLC, 42 the LLC at the addr. of its princ. office. County. SSNY designated as agent LLC. Arts of Org filed with Secy of 08/07/2012. Office loc: NY County. Broadway Room 1133, New York, NY DE addr. of LLC: 2711 Centerville upon whom process may be served State of NY (SSNY) on 9/25/12. Office SSNY has been designated as agent 10004. Purpose: Any Lawful Purpose. Rd., Ste. 400, Wilmington, DE 19808. and shall mail a copy of any process location: NY County. SSNY designated upon whom process against the LLC Latest date upon which LLC is to Cert. of Form. filed with Jeffrey W. to the principal business address: as agent upon whom process may be may be served. SSNY shall mail dissolve: No specific date. Bullock, DE Secy. of State, Townsend 1641 Third Ave, Apt. 25K, N.Y., N.Y., served and shall mail copy of process process to: Christine O’Keefe, 445 Bldg., 401 Federal St., Ste.3, Dover, 10128. Purpose: any lawful act. against LLC to principal business W. 162 St., NY, NY 10032. Purpose: Notice of Qualification of HEIGHTS DE 19901. Purpose: Any lawful activity. address: 413 9TH AVE APT 2B, NY, Any Lawful Purpose. CAPITAL ADVISORS LLC. Authority Notice of Qualification of 1565 NY 10001. Purpose: any lawful act. filed with Secy. of State of NY Notice of Qualification of Lofton BROADWAY LLC. Authority filed with Notice of Qualification of CENT’ ANNI (SSNY) on 09/17/12. Office location: Services Co, LLC. Authority filed with Secy. of State of NY (SSNY) on NOTICE OF QUALIFICATION of HOTEL, LLC. Authority filed with Secy. NY County. LLC formed in Delaware Secy. of State of NY (SSNY) on 9/26/12. 10/11/12. Office location: NY County. Family of the Year / Tinyogre Touring, of State of NY (SSNY) on 09/25/12. (DE) on 09/13/12. Princ. office of Office location: NY County. LLC LLC formed in Delaware (DE) on LLC. App for Authority filed with Office location: NY County. LLC LLC: c/o Millennium Management formed in Delaware (DE) on 2/1/10. 10/10/12. SSNY designated as agent Secy of State of NY (SSNY) on formed in Delaware (DE) on 06/16/11. LLC, 666 Fifth Ave., 8th Fl., NY, NY SSNY designated as agent of LLC of LLC upon whom process against 2/24/12. Office location: NY County. Princ. office of LLC: 19 W. 21st St., Ste. 10103. SSNY designated as agent of upon whom process against it may be it may be served. SSNY shall mail LLC formed in DE on 10/4/11. SSNY 902, NY, NY 10010. SSNY designated LLC upon whom process against it served. SSNY shall mail process to: process to c/o Corporation Service designated agent upon whom as agent of LLC upon whom process may be served. SSNY shall mail National Registered Agents, Inc., 111 Co. (CSC), 80 State St., Albany, NY process may be served and shall against it may be served. SSNY shall process to c/o Corporation Service Eighth Ave., NY, NY 10011. Address 12207-2543, regd. agent upon whom mail copy of process against LLC to mail process to the LLC at the princ. Co. (CSC), 80 State St., Albany, NY to be maintained in DE: c/o National and at which process may be served. principal business address: 276 Fifth office of the LLC. DE addr. of LLC: 12207-2543. DE addr. of LLC: c/o Registered Agents, Inc., 160 Greentree DE addr. of LLC: c/o CSC, 2711 Ave Ste 604 NY, NY 10001. DE c/o Harvard Business Services, Inc., CSC, 2711 Centerville Rd., Ste. 400, Dr., Ste. 101, Dover, DE 19904. Arts Centerville Rd., Ste. 400, Wilmington, address of LLC: 2711 Centerville Rd 16192 Coastal Hwy., Lewes, DE Wilmington, DE 19808. Arts. of Org. of Org. filed with the DE Secretary of DE 19808. Arts. of Org. filed with Ste 400 Wilmington, DE 19808. Cert 19958. Arts. of Org. filed with Secy. filed with DE Secy. of State-Div. of State, John G. Townsend Bldg., 401 Secy. of State, Div. of Corps., of LLC filed with Secy of State of of State, State of DE, Secy. of State, Corps., John G. Townsend Bldg., Federal St., Ste. 4, Dover, DE 19901. Townsend Bldg., Dover, DE 19901. DE located: PO Box 898 Dover, DE 401 Federal St., Ste. 4, Dover, DE 401 Federal St. - Ste. 4, Dover, DE Purpose: any lawful activities. Purpose: Any lawful activity. 19903. Purpose: any lawful act. 19901. Purpose: Any lawful activity. 19901. Purpose: Any lawful activity.

18 | Crain’s New York Business | November 5, 2012 TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of STANDARD Notice of Qualification of New York NOTICE OF QUALIFICATION of Notice of Qualification of SANDLER NOTICE OF QUALIFICATION OF PARTNERS, L.P. Authority filed with Holdings Equity, LLC. Authority filed Forexware LLC. App for Authority LOWENSTEIN LLP. Notice of Reg. CROSSTOWN BUTLER 280 LLC, auth. Secy. of State of NY (SSNY) on with NY Dept. of State on 10/9/12. filed with Secy of State of NY (SSNY) filed with Secy. of State of NY (SSNY) filed Sec’y of State (SSNY) 9/26/12. 09/28/12. Office location: NY County. NYS fictitious name: HG New York on 10/5/12. Office location: NY on 10/04/12. Office location: NY Office LLC: NY County. LLC Org. in LP formed in Delaware (DE) on Holdings Equity, LLC. Office location: County. LLC formed in DE on 3/15/12. County. LLP formed in New Jersey (NJ) DE. 9/24/12. SSNY desig. as agent 09/20/12. Princ. office of LP: 45 W. NY County. LLC formed in VA on SSNY designated agent upon whom on 09/25/12. Princ. office of LLP: 65 of LLC upon whom process against 67th St., Apt. 28F, NY, NY 10023. 4/2/12. NY Sec. of State designated process may be served. PO address Livingston Ave., Roseland, NJ 07068. it may be served. SSNY shall mail SSNY designated as agent of LP agent of LLC upon whom process to which SSNY shall mail copy of SSNY designated as agent of LLP copy of proc. to: Crosstown Parking upon whom process against it may against it may be served and shall process against LLC: Delaware upon whom process against it may Inc., Suite 1010, 594 Broadway, NY, be served. SSNY shall mail process mail process to: c/o CT Corporation Intercorp, Inc., 113 Barksdale be served. SSNY shall mail process NY 10012. DE Off. addr: 3500 South to c/o Chad Gustafson at the princ. System, 111 8th Ave., NY, NY 10011, Professional Center, Newark, DE to Attn: Gary M. Wingens at the Dupont Highway, Dover, DE 19901. office of the LP. Name and addr. of regd. agent upon whom process may 19113. Principal business address: princ. office of the LLP. Purpose: Cert. of Form. on file: SSDE, each general partner are available be served. VA and principal business Forexware LLC, 7 World Trade Center, General practice of law. Townsend Bldg., Dover, DE 19901. from SSNY. DE addr. of LP: c/o addr.: 999 Waterside Dr., Ste. 2300, 32nd Fl, NY, NY, 10007. Cert of LLC Purp.: Any lawful activities. Corporation Service Co., 2711 Norfolk, VA 23510. Cert. of Org. filed filed with Secy of State of DE located: Notice of Formation of L&O Lighting Centerville Rd., Ste. 400, Wilmington, with State Corporation Commissioner, DE Division of Corps, Secy of State, and Energy Design Solutions, LLC. Notice of Publication of Herakles Trend DE 19808. Arts. of Org. filed with the 1300 E. Main St., Richmond, VA 401 Federal St, Ste 4, Dover DE Arts. of Org. filed Secy. of State of Fund I LP. App for Authority filed with Secy. of State of the State of DE, 23219. Purpose: all lawful purposes. 19901. Purpose: any lawful act. NY (SSNY) on 9/24/12. Off. loc.: NY Secretary of State of NY (SSNY) on Dept. of State, John G. Townsend County. SSNY designated as agent 06.08.12. Office location: NY County, Bldg., 401 Federal St., Dover, DE Notice of Formation of Klein Moynihan Notice of Formation of Source of LLC upon whom process against LP formed in Delaware on 05/25/12. 19901. Purpose: Any lawful activity. Turco LLP. Arts of Org filed with Secy Financial Advisors, LLC, Art. of Org. it may be served. SSNY shall mail Address to which SSNY shall mail of State of NY (SSNY) on 8/20/12. filed Sec’y of State (SSNY) 7/23/12. process to: Shara Lazar, 215 E. 68th copy of process against LP: Barton NOTICE OF FORMATION OF 1B-60 Office location: New York County. Office location: NY County. SSNY St., Apt. 17T, NY, NY 10065. LLP, 420 Lexington Ave., 18th Fl. NY, Collister Street LLC. Arts of Org SSNY designated as agent upon designated as agent of LLC upon Purpose: any lawful activity. NY 10170. Principal business filed w/ Secy of State of NY (SSNY) whom process may be served and whom process against it may be address: 277 Park Ave, 40th Fl. NY, on 6/25/12. Office location: NY Co. shall mail copy of process against served. SSNY shall mail copy of LJ EAST HOUSTON LLC, a domestic NY 10172. Purpose: any lawful act. SSNY designated agent upon LLP to principal business address: process to Michelle Smith, 500 W. LLC, Arts. of Org. filed with the SSNY whom process may be served. PO 450 Seventh Ave., 40th Fl., NY, NY 56th St., PH-9, NY, NY 10019. on 7/9/12. Office location: New York Name of LLC: Ronmark LLC. Arts. of address to which SSNY shall mail 10123. Purpose: any lawful act. Purpose: any lawful activities. County. SSNY is designated as Org. filed with NY Dept. of State: copy of process against LLC: 718 agent upon whom process against the 9/21/12. Office loc.: NY Co. Sec. of Ashford St. Bklyn, NY 11207. NOTICE OF FORMATION OF Notice of Qualification of Hunt Capital LLC may be served. SSNY shall mail State designated agent of LLC upon Principal business address: 60 Portmanteau Consulting L.L.C.. Arts Partners, LLC. App. for Auth. filed Secy. process to: The LLC, 201 E. Houston whom process against it may be Collister St #1B NY, NY 10013. of Org filed with Secy of State of NY of State of NY (SSNY) on 10/3/12. St., NY, NY 10002. General Purposes. served and shall mail process to: c/o (SSNY) on 6/14/12. Office location: NY Off. loc.: NY County. LLC formed in Business Filings Inc., 187 Wolf Rd., Notice of Formation of Horizon County. SSNY designated as agent Delaware (DE) on 8/31/10. SSNY Notice of Formation of CAIPA SDC Ste. 101, Albany, NY 12205, regd. Sterling LLC. Arts. of Org. filed with upon whom process may be served designated as agent of LLC upon whom Bensonhurst, LLC. Arts. of Org. filed agt. upon whom process may be Secy. of State of NY (SSNY) on and shall mail copy of process against process against it may be served. with NY Dept. of State on 9/25/12. served. Purpose: any lawful act. 10/12/12. Office location: NY County. LLC to principal business address: SSNY shall mail process to: Capitol Office location: NY County. Sec. of SSNY designated as agent of LLC 254 W 123rd St, Apt #2, NY, NY Services, Inc., 1218 Central Ave., Ste. State designated agent of LLC upon Notice of Formation of FOX HILL upon whom process against it may be 10027. Purpose: any lawful act. 100, Albany, NY 12205. DE address whom process against it may be PRESERVATION DEVELOPER, LLC. served. SSNY shall mail process to: of LLC: 1675 South State St., Ste. B, Arts. of Org. filed with Secy. of State Notice of Formation of FWS Internet served and shall mail process to: c/o The LLC, Attn: David Marom, 201 Dover, DE 19901. Arts. of Org. filed of NY (SSNY) on 10/15/12. Office Design Company LLC. Arts. of Org. CAIPA, 41 Elizabeth St., 600, NY, NY East 83rd St., Apt. 17A, NY, NY 10028. DE Secy. of State, 401 Federal St., location: NY County. Princ. office of filed with NY Dept. of State on 7/25/12. 10013. Purpose: all lawful purposes. Purpose: any lawful activities. Ste. 4, Dover, DE 19901. Purpose: LLC: 60 Columbus Circle, NY, NY Office location: NY County. Sec. of any lawful act or activity. 10023. SSNY designated as agent of KUDIA LLC Articles of Org. filed NY State designated agent of LLC upon Notice of Formation of CDVCA LLC upon whom process against it Sec. of State (SSNY) 10/22/12. Office whom process against it may be NOTICE OF FORMATION of Bohemian INNOVATE NY GP, LLC. Arts. of Org. may be served. SSNY shall mail in NY Co. SSNY desig. agent of LLC served and shall mail process to the Bop, LLC. Arts. of Org. filed with NY filed with Secy. of State of NY process to c/o Corporation Service upon whom process may be served. principal business addr.: 1230 Ave. Dept. of State on 9/17/2012. Office (SSNY) on 09/27/12. Office location: Co., 80 State St., Albany, NY 12207. SSNY shall mail copy of process to c/o of the Americas, 7th Fl., NY, NY location: NY County. Sec. of State NY County. Princ. office of LLC: 424 Purpose: Any lawful activity. Law offices of Steven M. Nachman, 10020. Purpose: any lawful activity. designated agent of LLC upon whom W. 33rd St., #320, NY, NY 10001. process against it may be served SSNY designated as agent of LLC 675 3rd Ave., 29th Fl, NY, NY 10017, Notice of Qualification of LKRT LLC. NOTICE OF FORMATION OF and shall mail process to: 400 W. upon whom process against it may which is also the principal business Authority filed with Secy. of State of NY LogicShark Consulting, LLC. Arts of 14th St., App. 2C, NY, NY 10014, be served. SSNY shall mail process location. Purpose: Any lawful purpose. (SSNY) on 10/10/12. Office location: Org filed with Secy of State of NY principal business address. Purpose: to the LLC at the addr. of its princ. NY County. LLC formed in Delaware Notice of Registration of SCLAR (SSNY) on 1/28/02. Office location: NY any lawful activity. office. Purpose: Any lawful activity. (DE) on 10/03/12. Princ. office of ADLER LLP. Certificate filed Secy. of County. SSNY designated as agent LLC: 136 E. 57th St., 13th Fl., NY, NY State of NY (SSNY) on 9/17/12. Off. loc.: upon whom process may be served. NOTICE OF FORMATION OF KITALIANA Notice of Qualification of BDT CAPITAL 10022. SSNY designated as agent of NY County. SSNY designated as agent PO address to which SSNY shall LLC. Arts of Org filed with Secy of PARTNERS, LLC. Authority filed with LLC upon whom process against it of LLP upon whom process against it mail copy of process against LLC: State of NY (SSNY) on 7/9/12. Office Secy. of State of NY (SSNY) on may be served. SSNY shall mail may be served. SSNY shall mail process None. Principal business address: location: NY County. SSNY designated 10/02/12. Office location: NY County. process to L&R LLC at the princ. to: c/o Ciampi LLC, 39 Broadway, 274 Madison Ave., Ste 1804, NY, NY as agent upon whom process may LLC formed in Delaware (DE) on office of the LLC. DE addr. of LLC: Ste. 520, NY, NY 10006. Purpose: 10016. Purpose: any lawful act. be served and shall mail copy of 04/23/09. Princ. office of LLC: William practice the profession of law. process against LLC to principal R. Bush, BDT Capital Partners, LLC, 2711 Centerville Rd., Ste. 400, Notice of Qualification of NYC TPC business address: 26 King St #4, NY, 401 N. Michigan Ave., Ste. 3100, Wilmington, DE 19808. Arts. of Org. Notice of Formation of Lot One LLC. LLC. App. for Auth. filed Secy. of State NY 10014. Purpose: any lawful act. Chicago, IL 60611. SSNY designated filed with DE Secy. of State, Corp. Arts. of Org. filed with NY Dept. of of NY (SSNY) on 8/30/12. Off. loc.: NY as agent of LLC upon whom process Div., P.O. Box 898, Dover, DE 19903. State on 7/6/12. Office location: NY County. LLC formed in Indianapolis Notice of Formation of PEACH against it may be served. SSNY shall Purpose: Any lawful activity. County. Princ. bus. addr.: 1085 Park (IN) on 8/20/12. SSNY designated as PRODUCTIONS LLC. Arts. of Org. mail process to the LLC at the addr. Ave., Apt. 3C, NY, NY 10128. Sec. of agent of LLC upon whom process filed with Secy. of State of NY of its princ. office. DE addr. of LLC: NOTICE OF FORMATION OF Nobody’s State designated agent of LLC upon against it may be served. SSNY shall (SSNY) on 07/16/12. Office location: The Corporation Trust Co., Perfekt Media LLC. Articles of whom process against it may be mail process to IN address of LLC: NY County. SSNY designated as Corporation Trust Center, 1209 Organization filed with the Secretary served and shall mail process to: c/o c/o Bernstein, 800 E. 96th St., Ste. agent of LLC upon whom process Orange St., Wilmington, DE 19801. of State of NY (SSNY) on 09/04/2012. CT Corporation System, 111 8th 500, Indianapolis, IN 46240. Arts. of against it may be served. SSNY shall Arts. of Org. filed with Secy. of State Office location: NEW YORK County. Ave., NY, NY 10011, regd. agent Org. filed IN Secy. of State, 302 W. mail process to Josh Pultz, 457 W. - DE, Corp. Dept., Loockerman & SSNY has been designated as agent upon whom process may be served. Washington St., Indianapolis, IN 143rd St., NY, NY 10031. Purpose: Federal Sts., Dover, DE 19901. upon whom process against it may Purpose: any lawful activity. 46204. Purpose: any lawful activity. Any lawful activity. Purpose: Any lawful activity. be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 40 W 24 St., #3F, NY, NY 10010. The principal business address of the LLC is: 40 W 24 St., #3F, NY, NY 10010. Purpose: any lawful act or activity.

Notice of Qualification of THE PEGASUS GROUP L.L.C. Authority filed with Secy. of State of NY (SSNY) on 09/26/12. Office location: NY County. LLC formed in Delaware (DE) on 03/16/07. Issue Date for Business Connections • Book of Lists (12/24) Princ. office of LLC: 19 W. 21st St., Ste. 902, NY, NY 10010. NYS fictitious name: THE PEGASUS GROUP NY L.L.C. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: c/o The Corporation Trust Co., Corp. Trust Center, 1209 Orange St., Wilmington, DE 19801. Arts. of Org. filed with Secy. of State, State of DE, Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

November 5, 2012 | Crain’s New York Business | 19 20121105-NEWS--0020-NAT-CCI-CN_-- 11/1/2012 8:14 PM Page 1

FOR THE RECORD

per bid package, payable by money was represented by Cushman & transaction value.The information was order, teller’s check or certified check Wakefield’s Joanne Podell. The asking obtained from Thomson Reuters. ABOUT THIS SECTION only. For more information, contact rent was $400 per square foot. FOR THE RECORD is a weekly listing of information from the public record that Brian Saunders at (212) 863-7723 or ● Sirius XM Radio (SIRI) ● can help businesspeople in the New York area find opportunities, potential [email protected]. Subway signed a 10-year lease at Sky Mel Karmazin, chief executive and View Center, 40-24 College Point Blvd., director, exercised options on new clients and updates on competitors. GOODS AND SERVICES Flushing, Queens. The sandwich chain 13,100,000 shares of common stock at To ask questions or get more information on this section, contact Crain’s ● Department of Parks and Recreation will occupy 1,000 square feet on the $0.43 between Oct. 15 and Oct. 16, in a research department at [email protected]. Seeks competitive sealed proposals by second level of the shopping center. The transaction worth $5,633,000. During 3 p.m. on Nov. 27 for the operation and tenant was represented in-house. The the same period, he sold 13,100,000 maintenance of two bookstalls and up to landlord, Onex Real Estate, was shares of common stock at prices eight related tables on Fifth Avenue represented in-house by Michael Dana. ranging from $2.77 to $2.81, in a NEW IN TOWN $500 million and estimated assets of between East 60th and East 61st streets, The asking rent was not disclosed. transaction worth $36,587,488. He now $100,000,001 to $500 million. The Central Park. There will be a directly holds 8,823,950 shares. Companies that would like to have details creditors with the largest unsecured recommended proposer meeting Nov. 7 ● Chill Berry Frozen Yogurt signed a 10- of openings published should submit claims are Pacificways Ltd., owed at 11:30 a.m. at the Arsenal, 830 Fifth year lease at 2121 Frederick Douglass Blvd. ● CBS Corp. (CBS) descriptions following this format to $1,494,834.67; Doolittle Co., owed Avenue, room 407. To make inquiries, in Harlem.The frozen-yogurt chain will Leslie Moonves, president, chief [email protected], with $897,743.61; and Otto Int. USA, owed contact Venus Melo at (212) 360-1397 occupy 480 square feet of first-floor retail executive and director, exercised options “New in Town” in the subject line. $820,158.03. or [email protected]. space.The tenant and landlord, Morn- on 300,000 shares of common stock at ingside Partners 1, were both represented $13.09 on Oct. 15, in a transaction ● Khirma Eliazov ● JMW Realty ● Department of Transportation by Joseph Aquino, Faith Hope Consolo worth $3,927,000. On the same day, he 102 Charles St., Manhattan 370 19th St., Brooklyn Seeks competitive sealed bids by 11 a.m. and Arthur Maglio of Prudential sold 300,000 shares of common stock at The luxury-handbag brand opened a Filed for Chapter 11 bankruptcy on Nov. 15 for tugboat assistance and Douglas Elliman’s Retail Group.The $33.81 in a transaction worth shop in the West Village. It is the first protection on Oct. 17. The filing cites towing services for Department of asking rent was $102 per square foot. $10,144,260. He now directly holds store for the designer. estimated liabilities of $500,001 to Transportation vessels.The specification 2,064,020 shares. $1 million and estimated assets of book may be purchased at the ● Alexis Bittar signed a 10-year lease at ● Mrs. Robertson $1,000,001 to $10 million. Department of Transportation, Office of 410 Columbus Ave. on the Upper West ● BlackRock Kelso Capital Corp. (BKCC) 88 S. Portland Ave., Brooklyn the Agency Chief Contracting Side. The fashion jeweler will occupy Virginia Retirement Systems sold The design shop opened in Fort Greene. ● M. Lichtenstein Officer/Contact Management Unit, 55 900 square feet of retail space. The 477,212 shares of common stock at The store features new and vintage 324 Avenue I, Brooklyn Water St., between 9 a.m. and 3 p.m., tenant and landlord, Orlean Realty, were prices ranging from $10.00 to $10.03 clothing and home goods. Filed for Chapter 11 bankruptcy Monday through Friday. A deposit of $50 represented by Joseph Aquino and Faith between Oct. 15 and Oct 18, in a protection on Oct. 18. The filing cites is required, payable by certified check or Hope Consolo of Prudential Douglas transaction worth $4,778,466. It now ● The Stand estimated liabilities of $1,000,001 to money order made out to the New York Elliman’s Retail Group. The asking rent directly holds 13,222,600 shares. 239 Third Ave., Manhattan $10 million and estimated assets of City Department of Transportation. For was $300 per square foot. The comedy club opened in Gramercy. $1,000,001 to $10 million. more information, contact the bid ● JPMorgan Chase & Co. (JPM) The club also offers a full dinner menu window at (212) 839-9435. Gordon A. Smith, chief executive, and bar. ● RYYZ STOCK TRANSACTIONS divisional, exercised options on 80,000 1257 Ocean Parkway, Brooklyn ● Housing Authority shares of common stock at $19.49 on Filed for Chapter 11 bankruptcy Seeks competitive sealed bids by 10 a.m. Following are recent insider transactions at Oct. 15, in a transaction worth COMPANY MOVES protection on Oct. 18. The filing cites on Nov. 9 for the maintenance painting New York’s largest publicly held companies $1,559,200. On the same day, he sold estimated liabilities of $1,000,001 to of apartments at various locations filed with the Securities and Exchange 28,334 shares of common stock at $42.33 Companies that would like to have details $10 million and estimated assets of citywide. Bid documents may be Commission by executives and major in a transaction worth $1,199,268. He of recent moves published should submit $1,000,001 to $10 million. obtained and submitted online at shareholders. Listings are in order of now directly holds 164,260 shares. Ⅲ descriptions following this format to www.nyc.gov/html/nycha/html/business [email protected], with ● Sun Studios Inc. /business.shtml. For more information, “Company Moves” in the subject line. 333 Fourth St., Brooklyn contact Sabrina Steverson at Filed for Chapter 11 bankruptcy (212) 306-6771 or sabrina.steverson ● DashLocker protection on Oct. 19. The filing cites @nycha.nyc.gov. DEALS ROUNDUP 1733 First Ave., Manhattan estimated liabilities of $100,001 to The 24/7 laundry service opened a $500,000 and estimated assets of $0 to TRANSACTION SIZE second shop on the Upper East Side. $50,000. REAL ESTATE DEALS SELLER/TARGET (IN MILLIONS) BUYERS/INVESTORS TRANSACTION TYPE The original location is also on the Upper East Side, at 1566 Second Ave. Companies that would like to have details Tinicum Capital Partners $2,667.2 ASML Holding NV SB M&A (Manhattan), T. Rowe Price GOVERNMENT CONTRACT of their recent transactions appear in these Associates Inc., BAMCO Inc. ● Drexel Hamilton OPPORTUNITIES listings should email descriptions following (Manhattan), Capital World 77 Water St., Manhattan this format to ELaermer@crainsnewyork. Investors/Cymer Inc. The disabled-veteran-owned broker- Following are selected contract com, with “Real estate transaction” in the Emeritus Corp., $1,730.0 HCP Inc. SB M&A dealer relocated its headquarters within opportunities recently announced by New subject line, or enter them online at Blackstone Real Estate the financial district. The previous York City agencies.To learn how to sell crainsnewyork.com/submitadeal. Deals are Advisors (Manhattan)/ location was 14 Wall St. goods and services to city government, visit listed in order of square footage. 133 Senior Housing www.nyc.gov/selltonyc. For a searchable Communities ● Salumeria Rosi Parmacotto Il Ristorante database of current procurement notices, COMMERCIAL Not disclosed/ $430.0 New Valley Corp., The Witkoff Group SB M&A 903 Madison Ave., Manhattan visit www.nyc.gov/cityrecord. Listings are ● Fareportal, the parent firm of Times Square Gateway (Manhattan), Infinity Urban Century, The Italian eatery opened its second alphabetical by category and department. CheapOAir.com, signed a seven-year, Center development Maefield Development Corp. restaurant on the Upper East Side. Its four-month lease at 135 W. 50th St. The site other location is at 283 Amsterdam Ave. CONSTRUCTION SERVICES online travel group will occupy 41,000 Leucadia National Corp. $140.0 Not disclosed SB M&A on the Upper West Side. ● City University of New York square feet on the fifth floor, taking the (Manhattan)/Keen Seeks competitive sealed bids by 11 a.m. former data floor of investment bank Energy Sources on Nov. 20 for a bus shelter renovation. AllianceBernstein. The tenant was KBS Realty Advisors/ $110.0 Taconic Investment Partners SBM&A BANKRUPTCIES There will be a mandatory site visit and represented by Winoker Realty’s Corey office building at (Manhattan) prebid meeting at 10 a.m., Nov. 7, at the Abdo and Kristy Park. The landlord, 619 W. 54th St. The following listings are selected from the College of Staten Island, 2800 Victory AllianceBernstein, was represented by Bay City Capital, Ventures $100.7 BioCryst Pharmaceuticals Inc. SB M&A most recent available filings by companies Blvd., Building 1M, room 203. To get CBRE’s Bob Alexander, Scott Bogetti, West Capital Ltd., New (53.49%) Leaf Venture Partners seeking bankruptcy protection in the more information or to obtain bid Joe Mangiacotti and Christopher (Manhattan), Panorama Southern and Eastern Districts of New documents, contact MaryAnn Bellomo Mansfield. The asking rent was $40 per Capital, NMT Capital/ York. Information was obtained from U.S. at (646) 758-7882 or CUNY.Builds square foot. Presidio Pharmaceuticals Inc. Bankruptcy Court records available on @mail.cuny.edu. Blackstone Real Estate $62.0 Emeritus Corp. (remaining 94%) SB M&A ● Public Access to Court Electronic Records. LionTree signed a lease at 660 Advisors (Manhattan), Listings are in alphabetical order. ● Department of Design and Construction Madison Ave. on the Upper East Side. Columbia Pacific Advisors/ Seeks competitive sealed bids by 11 a.m. The boutique financial firm will occupy nine senior housing ● Galata Inc. on Nov. 15 for the construction of 10,400 square feet on the 10th floor. The communities 463 West Broadway, Manhattan Humboldt Street Plaza in Brooklyn. Bid tenant was represented by Jones Lang Not disclosed/ $35.0 Accel Management Co., New Enterprise GCI Filed for Chapter 11 bankruptcy documents are available at LaSalle’s Alex Chudnoff. The landlord, Braintree Payment Associates, RRE Ventures (Manhattan), protection on Oct. 16. The filing cites www.nyc.gov/buildnyc and require a $35 the Safra family, was represented by a Solutions Greycroft Partners (Manhattan) estimated liabilities of $500,001 to deposit, payable by company check or team led by CBRE’s Paul Amrich. The Renaissance Technologies $33.9 LFP Broadcasting SB M&A $1 million and estimated assets of money order only. For more asking rent was around $95 per square Corp. (Manhattan), Intana $100,001 to $500,000. The creditors information, contact Ben Perrone at foot. Management (Manhattan), with the largest unsecured claims are (718) 391-2200. Longkloof Ltd./New Frontier Media Inc. Froi, owed $348,589.59; Barolo Ltd., RETAIL owed $75,000; and Con Edison, owed ● Department of Housing Preservation ● C. Wonder signed a lease at 155 Fifth Not disclosed/ $27.0 T-Venture Holding GmbH, Creathor GCI $14,039.66. and Development Ave. in the Flatiron district. The Netbiscuits GmbH Venture Management GmbH, Stripes Group (Manhattan) Seeks competitive sealed bids by 11 a.m. women’s apparel retailer will occupy ● HMX on Nov. 13 for lead abatement services 4,500 square feet on the ground floor Selected deals announced for the week ended Oct. 20 involving companies in metro New York. 125 Park Ave., Manhattan in Manhattan and the Bronx. Bid and an additional 4,500 square feet on GCI: Growth capital investment represents new money invested in a company for a minority stake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing Filed for Chapter 11 bankruptcy documents may be obtained at 100 Gold the lower level. The tenant was shares of a company without the participation of a financial buyer. source: capitaliq protection on Oct. 21. The filing cites St., sixth floor, section 6M. There is a represented by Dallas-based Open estimated liabilities of $100,000,001 to nonrefundable convenience fee of $25 Realty’s Mark Masinter. The landlord

20 | Crain’s New York Business | November 5, 2012 DIGITAL NEW YORK

PLUGGING AWAY: The benefits of cloud- based business For Seamless, models were on display over much of the city last week. what’s a little rain?

could have resulted in someone or- During hell and high dering from an establishment that waters, New Yorkers was listed as open but in fact was closed, and waiting hours before got a quintessential learning there had been a mistake. service: deliveries ‘Cross-trained’ employees Having gone through Hurricane BY MATTHEW FLAMM Irene,the company knew it had to be ready to help customers under ex- Like a lot of New Yorkers, Lexie treme conditions. Employees were Kier didn’t stock up on supplies for “cross-trained,” so that data-entry Hurricane Sandy until the last staffers in the company’s Salt Lake minute. Make that the very last City-based operations center, for in- minute:Around 5 p.m.last Monday, stance,could handle customer care in the 28-year-old social-media New York. In addition, on Monday, strategist began looking at her it set up a phone-messaging system phone—using the application for that automatically asked restaurants the Seamless food-delivery serv- that had not received an order that ice—for shops that were open in her day to confirm they were open. neighborhood. “If we don’t hear back from them, newscom “Seamless said East Village Farm we shut them down on the site,”Mr. & Grocery was still delivering,” she Zabusky said. recalled. “We said,‘That can’t be.’ ” Of course, one of Seamless’ But it was.The deliveryman who biggest assets last week was busi- Sunny days for tech braved the howling winds and arrived nesses like East Village Farm & a little after 7 p.m.—with canned Grocery that are used to providing foods, fresh fruits and vegetables, an almost insane level of service. peanutbutter,candles and batteries— “It was crazy,”said Paul Shah, one firms that use cloud got to Ms. Kier’s ninth-floor apart- of the store’s owners, of what it felt ment just in time. The building shut like as Sandy was hitting New York. down the elevator 20 minutes later. He and four other members of his Street in the Flatiron district and at research service, thanks in part to Ms.Kier’s experience was the kind family drove their cars through Platform helps firms his home in Murray Hill. having a cloud service provider in that Seamless hopes was characteris- blacked-out streets,while their deliv- ride out storm For employees who live in lower Texas. tic of its service last week, which was eryman rode a bicycle with emer- Manhattan or hard-hit parts of News sites such as Gawker, The easily the most challenging in its 13- gency lights, dropping off orders un- mostly unscathed Westchester, Long Island and New Huffington Post and BuzzFeed year history.The biggest player in the til 9 o’clock. “After the power went Jersey, it’s true that getting access to weren’t so lucky. Internet service online food-delivery category, the down at 8:20, we couldn’t receive the BY JUDITH MESSINA the Internet in order to connect with provider Datagram went down company has been going through faxes [from Seamless],”he added.“So the cloud hasn’t been easy. And when the basement of 33 Whitehall rapid growth in recent years,process- we finished the ones we had.” Even as Sandy’s storm clouds dev- some companies that use cloud St. flooded and fuel stored there ing gross sales of $400 million in Despite all its efforts, Seamless astated the city, there was one services or house their own equip- could not be pumped to emergency 2011, up 40% from the prior year. hardly had a smooth week, as both friendly cloud in the sky for New ment at data centers in lower Man- generators. Some websites, includ- (The privately held firm, which does York’s tech community—the one hattan haven’t been lucky, either. ing the three news sites,were able to not disclose revenue, takes a small that serves the technology infra- Lack of power and flooded base- switch to other platforms. Data- percentage of each order.) New Yorkers structure for almost every young ments have short-circuited opera- gram said on its website that it was startup in the city. tions in at least two data centers migrating customers to other loca- ‘Patient’ customers kept on ordering With floods and power outages there, disrupting service for clients. tions and, as of early Friday morn- But last week in the city where stalling thousands of businesses in Sites with remote support, ing,was expecting the imminent ar- takeout never sleeps, not even in a right through lower Manhattan and throughout though, were mostly up and run- rival of a mobile generator. hurricane, midtown-based Seam- the city during this once-in-a-life- ning. Dane Atkinson, CEO of less was on the spot—at one point or the storm time disaster, employees of cloud- SumAll, a SoHo-based company Bucket brigade another mustering virtually all of its based companies are plugging away that collects and analyzes Internet Internap, at 75 Broad St., faced 300 employees on two continents to remotely from hotels, apartments data for small businesses, spent a the same problem and shut down for track the status of restaurants and and Starbucks counters, all in areas few minutes last Tuesday rescuing a about 12 hours on Tuesday until it their orders in the metro area. As of the city and suburbs that were fish tank in his office at Varick and managed to get a tanker truck to company executives had expected largely unaffected by the storm. West Houston streets, but other- pump fuel from the street level up to would happen,New Yorkers kept on customers and restaurants sometimes Their software, data and client in- wise he and most of his employees its generators on the mezzanine. ordering right through the storm. found the company overwhelmed. formation all reside in the so-called have been working from home. Mr. Peer 1, which houses clients’ “We managed through it,” said “We were getting orders, and I cloud—powerful servers in places Atkinson said he’s seen little disrup- servers at 75 Broad St.,came up with CEO Jonathan Zabusky, adding couldn’t stop them,” said Catalina as far away as Europe—where com- tion in his business. a different solution when the lights somewhat unbelievably about his fel- Gil, who runs El Ranchito Poblano panies pay to store and access the “The majority of tools and most went out and the basement filled low New Yorkers: “Customers have on Flatbush Avenue in Brooklyn data and technology that run their of our code are in the cloud, and our with water. It organized a bucket been incredibly reasonable, patient and had closed her restaurant early businesses. engineers are definitely able to work brigade of sleep-deprived employ- and understanding” about deliveries Monday evening. “We couldn’t get “Our entire company is cloud- on projects,” he said. ees, customers and friends who car- that were delayed or never arrived. in touch with Seamless.” based,” said Matt Minoff, CEO of Similarly, ShopKeep, a cloud- ried half-full 55-gallon diesel-fuel New York area orders were down Mr. Zabusky said that frustrated Selectable Media, a video ad tech based company at 55 Broad St. in tanks from a truck parked in front of about 60% to 70% for much of the customers were in the minority, but company that last year decided to lower Manhattan that provides the building up the stairs to the 18th week, with around two-thirds of he agreed that “in each of those cas- move all of its infrastructure to point-of-sale services to small busi- floor to replenish its generators. Seamless’ nearly 6,000 listed local es, there are things we could do bet- Amazon’s cloud service in northern nesses, also uses Amazon’s Virginia While Peer 1 shut down some restaurants shutting their doors be- ter.” For the most part, he said, the Virginia. “All of our systems are up data center, where its operating and equipment temporarily, most of its tween Monday and Wednesday. company’s preparation had worked. and available [to us] and to our customer-care systems, and even its customers remained up and run- Keeping abreast of those closings Overall,he feels that helping New clients via a Web browser.” phone system, sit in the cloud. ning. By Thursday, the 35 stalwarts was crucial. Customers depend on York area residents even a little bit to Founder and CEO Jason Richelson in the fuel brigade were able to stand online delivery services like Seam- get through the storm will pay off in Little disruption said the business has not experienced down as the recovering building less and its rivals GrubHub and the long run. “We’ll come out of this Mr. Minoff has been working any disruptions—“other than not be- pumped fuel to Peer 1’s generator. Delivery.com to provide an easy and a stronger company,with stronger re- out of his grandmother’s house in ing there to answer the phone.” “This is a chance to prove our- reliable way to choose a restaurant, lationships with people,” he said. Ⅲ south Brooklyn since the power Another Silicon Alley company, selves,” said Robert Miggins, Peer order from a menu and pay via a went off both at the company’s of- SoHo-based CB Insights, in fact, 1’s senior vice president of business credit-card account—all on one LISTEN to a discussion at fices on Fifth Avenue and 22nd had record sign-ups for its venture development. Ⅲ website. A breakdown in the system CrainsNewYork.com/podcasts

November 5, 2012 | Crain’s New York Business | 21 SMALL BUSINESS Gowanus entrepreneurs in shock after Sandy

made her name crafting highly visi- Ms.Tooker couldn’t say whether Not quite waterfront, ble projects like Harlem’s 12-foot she had insurance. She might try to but canal area got hit marble memorial to Adam Clayton call FEMA.She couldn’t quite focus Powell Jr., and the wrought-iron on the task of recovery. It was too just as hard. Artists, clocks at City Hall. She was in con- much to absorb. musicians take stock tract with the New York state Sen- “I don’t know if they’ll help,” she ate for another project.But 12 hours said. “But I might try.” after the storm hit, Ms. Tooker was BY ANDREW J. HAWKINS just another flood victim, picking ‘Everything is piled up’ through the pieces of her former life. At Savaria Studios, Darcy he 10-foot-high wall of “I’m worried about my employ- Macrae checked his drum kit for toxic water showed no ees,” she said. She has five: a matte damage. Born in Canada, Mr. mercy. It surged over finisher, a welder and three mold Macrae moved to New York to make the lip of the Gowanus makers. his name on Canal and crashed Mud caked her warehouse. A Broadway. His through the wall at Serett Metal wax art project had dissolved into a $10 0K drumming can T ESTIMATED Works, upending a three-ton pile of puddle. Large pieces of machinery amount of damage be heard in hit steel scraps. It broke through the littered the floor, including a welder incurred by the shows like The door to the New York Art Foundry, and Ms. Tooker’s $12,000 furnace. New York Art Lion King, destroying irreplaceable works of The $15,000 compressor had Foundry Mamma Mia art. It punched through to Savaria flipped over. She estimated the and Wicked. But

Studios, a rehearsal space and kral georgia damage to be at least $100,000. Sandy made no exception for musi- recording studio struggling musi- GOWANUS INTERRUPTUS: The storm destroyed valuable pieces at the New York Art Foundry. Ms.Tooker said she was used to a cians either. cians could book for $200 a day. little flooding from the canal, which “Everything is just piled up,”Mr. “It’s hard,” said Tamas Vajda,the was built in a swampy area and Macrae said after inspecting his owner of Savaria Studios. “I’m still from Sandy was contained to shore- Brooklyn-Queens Expressway adja- named for the Indian tribe that once practice space. “Amps, drums, taking it all in.” front property, this small patch of cent to the Ninth Street bridge,were roamed the area. During Tropical guitars.” While much of the destruction Gowanus was hit just as hard when similarly stunned by the flooding. Storm Irene, she got about six inch- Mr. Vajda couldn’t say how he the storm pushed the eponymous es of water. But that was nothing planned to rebuild his business.The To sign up for Crain’s canal’s waters onto land.Other busi- ‘In shock’ compared with Sandy. Using a wounds were too fresh,the clean-up SMALL BUSINESS newsletter, go to ness owners in this up-and-coming “I was, like, in shock,” said Paige broom handle, she marked the too daunting. But one thing was www.crainsnewyork.com/smallbiz. industrial section of Brooklyn, Tooker, owner of the New York Art waterline on the wall—over five feet clear: “Irene was nothing compared which lies in the shadow of the Foundry. Before Sandy, Ms. Tooker high. to this,” he said.

SANDY SURVIVAL GUIDE A LIST OF USEFUL WEBSITES Agility Recovery Solutions: www.agilityrecovery.com Where you can find help Brooklyn Chamber of Commerce resource guide: www.ibrooklyn.com/news_events/storm_recovery_information.aspx Help is available for small businesses that need aid in Sandy’s wake. Below is a list of resources. In these Disaster cleanup: www.sba.gov/content/disaster-cleanup first few days, document your losses by taking photographs and notes. Make sure you keep your receipts Disaster resource guide from the IRS for individuals and businesses: for purchases you’re making now to rebuild your business. www.irs.gov/pub/irs-pdf/p2194.pdf FEMA registration: www.disasterassistance.gov ● If you need electric generators, pumps Small Business Development Centers. 10038; (212) 618-8914 or cleanup kits: The main Web page is www.asbdc- ● 168-25 Jamaica Ave., second FEMA’s flood insurance program: The Queens Chamber of Com- us.org. You can find locations of the floor, Jamaica, NY 11432; www.fema.gov/national-flood-insurance-program merce and the Brooklyn Chamber New York Small Business Develop- (718) 577-2148 IBHS Open for Business: www.disastersafety.org. Tips on post-Sandy of Commerce are soliciting supplies ment Centers at www.nyssbdc.org. ● 120 Stuyvesant Place, third floor, recovery, including how to avoid contractor scams SBA’s Women’s Business Centers. from chambers nationwide. Call See Staten Island, NY 10301; (718) 898-8500 in Queens or www.sba.gov/content/womens- (718) 285-8400 New York Small Business Development Centers: www.nyssbdc.org (718) 875-1000 in Brooklyn to tell business-centers. ● 215 W. 125th St., sixth floor, New Online application for an SBA disaster home or business loan: them what you need and find out if SCORE. Mentors deliver free, confi- York, NY 10027; (917) 493-7243 https://disasterloan.sba.gov/ela ● they have items for distribution. dential, valuable advice for business 560 W. 181st St., second floor, Ready.gov: The site has a variety of publications for download covering needs. See www.score.org/mentors. New York, NY 10033; various topics about planning and preparation for disasters and ● If your small business needs a loan: For the nearest location, visit (212) 928-3400 SBA loans.The federal Small Business www.score.org/chapters-map. emergencies. Administration offers loans of up to SBA’s Office of Disaster Assistance ● If your employees need help: Small Business Administration: www.sba.gov $2 million in disaster areas.They are Customer Service Center. Call (800) Homeowners and renters can apply available to businesses regardless of 659-2955 or send an email to for grants and loans by registering size. Interest rates on the 30-year [email protected]. online at www.disasterassistance.gov 40,000 square feet of warehouse contact their agent. terms are typically 4% for businesses SBS loans. The city’s Department of or by mobile device at m.fema.gov. space at the terminal that can be Farmers. Customers with insurance and 3% for nonprofits. Small Business Services has $5 mil- Those websites can also be used by used for this purpose. Call 311 and through Farmers Insurance Group, To apply online, go to https:// lion available to loan to small busi- small businesses to begin their loan ask for NYC Business Solutions, or including subsidiaries Foremost In- disasterloan.sba.gov/ela. Loan ap- nesses. Amounts per business are applications. If online or mobile ac- send in a contact request via surance, 21st Century and Bristol plication forms can also be down- capped at $10,000. For more infor- cess is unavailable, applicants should www.nyc.gov/html/sbs/nycbiz/ West, should immediately contact loaded from www.sba.gov. Com- mation, call 311 and ask for NYC call the FEMA toll-free help line at html/contact/manager.shtml. their agent or call Farmers’ 24-hour pleted applications should be mailed Business Solutions,or send in a con- (800) 621-3362. The Brooklyn Chamber of claims hotline, (800) 435-7764. to U.S. Small Business Administra- tact request via www.nyc.gov/html/ The Red Cross provides for Commerce is offering workspace in Geico. If you need to report a claim, tion, Processing and Disbursement sbs/nycbiz/html/contact/manager thousands of displaced residents its offices at 25 Elm Place in down- visit www.geico.com/claims/report Center,14925 Kingsport Road,Fort .shtml.You can also locate one of the through a network of emergency town Brooklyn through the end of or call (800) 841-3000. Worth,TX 76155. NYC Business Solutions Centers, shelters. If you need assistance, you the year. Contact Veronica Harris at The Hartford.The firm has set up a ca- Once the application is submit- listed at www.nyc.gov/html/sbs/ can find the nearest shelter by going [email protected] or tastrophe information center for its ted, the SBA takes 10 days to re- nycbiz/html/contact/locations to http://app.redcross.org/nss-app/ call (718) 875-1000, ext. 127, for customers. Call (800) 243-5860 or spond, according to a spokes- .shtml. They are: or by calling (877) 733-2767. more information. go online to www.thehartford.com woman. However, gathering the ● 400 E. Fordham Road, seventh for more information. required materials is often difficult floor, Bronx, NY 10458; ● If you need space: ● Contact information for private Travelers. You can report a claim on- for small businesses. (718) 960-7910 Short-term “swing” office space at insurance companies: line at www.travelers.com/claim/ If you need help completing your ● 9 Bond St., fifth floor, Brooklyn, Brooklyn Army Terminal is avail- Allstate. Customers can call (800) 54- emergency.aspx or call (800) 252- SBA loan application, try visiting NY 11201; (347) 296-8021 able free of charge for a month. STORM, go online to www.allstate 4633 for personal insurance or (800) one of these centers in person: ● 79 John St., New York, NY NYCEDC has approximately .com/claims/report-claim.aspx or 238-6225 for business insurance.

22 | Crain’s New York Business | November 5, 2012 IN THE BOROUGHS MANHATTAN FROM Locals aid powerless shops AROUND Continued from Page 3 Pizza, on the corner THE CITY “emergency chocolate” and offering of West 16th Street it at a discount. and Seventh Avenue, “It’s a little bit of comfort for co-owner Mario MANHATTAN people in the neighborhood and a Markashi got in from Halloween treat for the kids,” said his home on Staten Unlucky retailer bloomberg newsbloomberg owner Anthony Cirone. Island and found that takes triple hit HIGH ABOVE W. 57TH ST.: Workers atop the Mr. Cirone lives close by, so he he had enough ingre- stricken building. was able to open the store Wednes- dients left to make a Sam Edelman just might be New day and wait to be joined by a shop few more pies. He York’s unluckiest retailer. His assistant coming from Harlem. made them up and brand-new store in SoHo, his cor- cally and internationally over the That, as it turned out, took two and gave them to families porate offices on West 57th Street, next five years, said a spokeswoman. a half hours that traffic-clogged day. he knows in the sur- and his Connecticut residence were Meanwhile, the partial collapse La Bonbonniere, which is more rounding buildings. all affected by Hurricane Sandy’s of a crane atop the rising residential than 60 years old,also operated nor- He delivered each pie reign of terror. spire One57 on West 57th Street was ali elkin mal hours throughout the storm and CARRYING ON: La Bonbonniere operated normal hours personally, in one “We’ve had a bad week,” he said. directly across from Mr. Edelman’s resulting blackout.It relied on gas to throughout the storm and blackout. case walking up to That might be an understatement. corporate office at 130 W. 57th St. cook the food,dry ice to keep it fresh the 18th floor of a After opening a 2,500-square-foot As a result, his office was closed all and help from neighbors to light the building to do so. flagship store on Spring Street last last week. Mr. Edelman, who eight way. The Peter McManus Café A generator powered the shop’s weekend—the first permanent out- years ago founded his namesake la- “We have a lot of support,” said stayed open the night of the storm, two refrigerators, some lights, the post for his eponymous shoe brand— bel, which is now owned by Brown La Bonbonniere manager Marina even after losing power. On Tues- dough mixer and one outlet. On Mr. Edelman, founder of Edelman Shoe Co., had been checking in re- Cortez. Ms. Cortez has run the day, the firefighters from the home Wednesday, the shop had morphed Shoe and president of its Sam Edel- motely via BlackBerry from his restaurant with the same staff for of Engine Company 3 and Ladder into something of a refuge for the man division brand, had to scramble Connecticut home, where he was the past 20 years as the surrounding Company 12 on the far side of Sev- power-starved. Mr. Markashi was to close up shop on Sunday night be- without any Internet or TV. neighborhood has rapidly changed. enth Avenue brought over a gener- allowing patrons to charge their de- fore Sandy made landfall. He sealed Retail experts said that while the She noted, however, that much of ator. By the next morning, it had vices in that single outlet one by one. up the windows and skylights and loss of business, even for those re- her devoted clientele comes from stopped working, but bartender A girl who looked to be about 10 cleared the floor of merchandise. tailers closed for the duration of the the ranks of the area’s newer Ryan McDonald kept serving beer years old, a store regular, asked if he As of Wednesday afternoon, the week because of flooding and pow- arrivals. that she assessed as being “between could charge her Nintendo DS. store had not reopened, and Mr. er loss, might not severely eat into “This neighborhood is all rich cool and cold.” “For a DS you can wait a few Edelman could do little more than holiday sales, aftereffects could and famous people with very big hours,” Mr. Markashi said, putting hope that his merchandise of linger. Some consumers hit hard by hearts,” she said. 76 years young his arm around her shoulder. But a footwear, handbags and outerwear the storm might reroute those dol- A few blocks north in Chelsea, it The bar has been operating on few minutes later he shared a con- was safe from the tide of water flood- lars they had intended to spend on was the local firefighters who rose to the corner of West 19th Street and spiratorial grin with the young cus- ing the area. Opening the SoHo nonessentials like apparel and shoes the challenge of keeping a neigh- Seventh Avenue since 1936. tomer and slipped the device and its store is the first step in Mr. Edel- into home cleanup. borhood institution going. On Tuesday,two blocks away at J’s charger into his pocket. Ⅲ man’s plan to expand both domesti- —adrianne pasquarelli

cause they will be absorbed by a billion retail sector seem especially Eqecat believes Sandy caused $7 Sandy’s impact much larger economic ecosystem. vulnerable to Sandy’s wrath. billion worth of insured losses in XES Lounge, a Flatiron district New York. One reason that’s lower Small businesses hit bar forced to shutter after the lights than the total estimated damage is Continued from Page 1 ment and possibly the future loca- The storm caused headaches for blacked out last Monday night, lost that many Sandy-related losses were “The waterfront, long underuti- tion of utilities away from the water. large businesses like Citigroup,which its third-biggest night of the year caused by an event not covered in lized because of outdated zoning Rebuilding smarter also could in- was forced to relocate 1,800 employ- last week: Halloween. General most policies: flooding. Less than and contamination, contains many clude a significant expansion of the ees after a building at 111 Wall St. Manager Tony Juliano had just paid 0.6% of all property and casualty of the city’s most promising devel- ferry system, serving more neigh- flooded. But Sandy created a night- a $1,600 utility bill to Con Edi- policies written in New York, New opment opportunities,” Ms. Wylde borhoods and passengers, as well as mare for small businesses,which tend son—a painful check to sign with no Jersey and Connecticut last year said, citing emerging areas from new infrastructure and technology to lack comprehensive insurance revenue coming in the door. were for floods, according to re- Hudson Yards on the West Side of in structures near the waterfront to plans and are less able to withstand “Losses are in excess of $20,000 search firm SNL Financial. Manhattan to north Brooklyn and comply with modern code. In the dramatic hiccups in revenue. and counting,” Mr. Juliano said. “I Even companies with insurance Long Island City,Queens.“The fact Long Island City construction site “Small businesses,whatever kind have an emergency fund; that’s are wondering whether to file a that the new, very expensive PATH known as Hunter’s Point South, for you can think of, are vulnerable,” where I’m going.” claim. Plaxall, a residential and station proved to be as vulnerable as instance, plans for fully submersible said New York City Comptroller The tune is much the same at commercial property owner in Long our 100-year-old tunnels suggests electrical components would help John Liu, who estimated that New Brooklyn Industries,a 15-store chain Island City, is facing hundreds of that we need to change how we do the low-lying neighborhood keep York suffered a 20% decline in eco- that sells trendy T-shirts, jackets and thousands of dollars in lost business things, and that probably means a power on even if flooded. nomic activity last week that will not bags. Sandy’s devastation might after a plastics manufacturer was huge investment.” With storm damage affecting all be recouped. The city generates be- translate to the loss of half a week of flooded. But its policy carries a five boroughs,rebuilding stronger is tween $1 billion and $2 billion in sales, said Chief Executive Lexy $500,000 deductible. Waterfront rethink also expected to be a greater chal- economic activity each weekday, his Funk.Five of the company’s six Man- “We have 30 employees who are Here’s how committed the city lenge than coming back from 9/11, office said. The loss estimate was hattan locations were closed all week. going to want to get a paycheck has been to developing its water- which, despite its thousands of based on a review of the types of The company also closed its Dumbo, soon,but we won’t be able to do pro- front: The Bloomberg administra- deaths, was a disaster centered on goods and services the city provides, Brooklyn-based distribution center duction for a while,” said Matt tion has spent $360 million in wa- lower Manhattan. he said. Monday, leading to shipment delays. Quigley, vice president at Plaxall. terfront-park project development, Another key difference between State Comptroller Thomas Di- “We don’t know when they’re Many economists believe the according to the Economic Devel- the devastation now and the de- Napoli on Friday estimated that the going to come back up,” she said.“If city will get a sharp economic jolt opment Corp. Since 2002, about struction post-9/11 is that New immediate economic damage from people aren’t coming into the city, when checks from insurers and fed- 16,000 new housing units have been York’s economy is considerably larg- Superstorm Sandy statewide could that’ll impact us as well.” Ms. Funk eral relief programs arrive.But some constructed near the water—more er than it was a decade ago. The climb above $18 billion. “Though sent out an emailed apology, offer- experts in the financial impact of than double what had been built area’s annual gross metropolitan the rebuilding effort may offset ing a discount on future orders. hurricanes believe the money won’t there in the previous decade. In Oc- product is $1.28 trillion, or 40% some of these losses, we must con- Other industries, such as air- be enough to offset the economic tober, the city announced it would larger than in 2001,according to the tinue to monitor what the long- lines,expected to recover the major- blow. After reviewing storms from accelerate work on the waterfront by latest figures from the U.S. Bureau term economic impact to New York ity of their losses, as New Yorkers 1970 through 2005, Eric Strobl, an moving up its capital commitment of Economic Analysis. Preliminary will be,” Mr. DiNapoli said in a rescheduled canceled flights rather economist at the École Polytech- of $13.2 million for waterfront in- estimates peg Sandy-related losses statement. than cancel them altogether. nique in France, found that hurri- frastructure. in the $50 billion range nationally. If recovery efforts bleed into late canes shave 0.8% off an affected Some rethinking may be in or- New York sustained about 34% of November and December, the Insurance headaches area’s annual growth rate, while all der. In the short term, development those losses, or $17 billion, accord- storm may prevent the city from While the loss of business is the government and insurance experts expected new building codes ing to disaster modeling company breaking last year’s records for painful, it might be just a blip com- money helps restore only 0.2% of for the storage of electrical equip- Eqecat. tourist spending, the state comp- pared with the challenges faced by that growth. Even if the losses prove to be troller said. many small businesses and con- LISTEN to a discussion at higher, they don’t figure to have The region’s $28 billion restau- sumers as they try to recover losses Adrianne Pasquarelli contributed CrainsNewYork.com/podcasts nearly the same financial impact be- rant and hospitality sector and $59 from their insurers. to this report.

November 5, 2012 | Crain’s New York Business | 23 “We’re getting a lot of inquiries for short 30- to 60-day leases,” Mr. Real estate scramble Kuriloff said. Infrastructure By late last week, however, he Continued from Page 3 noted that it was still unclear how Continued from Page 3 Most hospitals use diesel gener- said David Eisenberg, a Lofty exec- many of the deals would come er patterns. In 2010, the group re- ators for emergency power. “They utive. through because so many landlords leased a report that predicted many are very reliable,”said Paul Jennings, The small law firm of Adam Leit- still could not give tenants a firm of the problems caused by Sandy. senior director of engineering at man Bailey had a similar experience date for being able to return to their Some of the fixes it discussed Montefiore Medical Center in after power failed at its lower Man- offices. were large-scale—building levees or Manhattan, “as long you keep them hattan headquarters at 120 Broad- “I don’t think anyone has the an- sea walls—and some were smaller, filled and maintained.” way. By Wednesday, a day after the swer right now just how severely such as more aggressively pruning Montefiore’s Moses Campus in flooding subsided, the firm wound some of these buildings are dam- tree branches so they don’t take out the Bronx has a system with triple up camping out in the midtown of- aged,” Mr. Kuriloff said. power lines. In dealing with future backup, Mr. Jennings said. It has a fices of one of its clients, real estate Bill Rudin, the CEO of Rudin storms, everything from preserving co-generation plant built in 1995, investment company Sierra Realty. Management Co., which owns four wetlands to moving generators out augmented with a gas turbine in “I got a call on Monday from office buildings downtown, rein- of basements, to creating cellphone 2003. Those plants use natural gas Adam [Leitman], and he said, ‘I’m forced that sense of uncertainty. He chargers compatible with multiple and diesel to produce 90% of Mon- in a really bad spot,’ ” reported Jim said his staff devoted Wednesday types of phones should be on the tefiore’s power. If the co-generation Wacht, Sierra Realty’s president. and Thursday to pumping large vol- table, according to the panel’s co- plant and turbine fail, Con Ed is “We just took new office space a year umes of water from the basements chair. supposed to supply power. If it can’t, ago and we have extra room, so I of his buildings. At one of his hard- “We should look at building bar- the hospital’s eight emergency gen- said, ‘Come on up here.’ ” PINING FOR SPACE at 80 Pine St. est-hit properties, the 38-story, 1.1 riers, but that also would take years erators kick in. For many tenants downtown,the million-square-foot tower at 80 and wouldn’t protect the entire New The flooding of subway tunnels aftereffects of Hurricane Sandy Pine St.,he believed that the seawa- York metropolitan region,” said is more difficult to prevent.Christo- look to be far more than a temporary ter had damaged systems to the ex- Cynthia Rosenzweig, who is also a pher Ward, a former executive di- inconvenience, however. Several quarters is at 1 New York Plaza, a tent that the building could be with- senior research scientist at the rector of the Port Authority of New downtown buildings were deluged 50-story office tower at the south- out power and services for a few NASA Goddard Institute for Space York and New Jersey, said the city’s by the salty storm surge. ern tip of Manhattan that was weeks as repairs are made. Studies in Manhattan. “I look at it porous streets allow floodwater to Many landlords in the area spent swamped by the storm surge and is He has already relocated one 80 through the lens of addressing the flow directly into the Metropolitan most of the week pumping water out expected to be offline for weeks. Pine tenant, engineering firm problem on multiple levels.” Transportation Authority’s subter- of basements and sub-basements JB&B, to a 15,000-square-foot of- ranean system. Planting more trees and then sending in teams to assay Calls from big companies fice in a building he owns at 641 The weakest links and other street greening projects the extent of damage to heating, Fried Frank was just one of many Lexington Ave.in midtown.Mean- Much of the post-Sandy ire has would absorb much of that excess ventilation, electrical and elevator big tenants looking to strike a deal for while, he reported that most of the been directed at the power industry. water, he said. systems. By the weekend, many short-term space. Joshua Kuriloff, a other tenants at his Pine Street Mr. Cuomo accused Consolidated “People are going to look for big- were still trying to figure out how vice chairman at Cushman & Wake- property are waiting for a more de- Edison and other power suppliers ticket solutions,” Mr. Ward said. long it would take before tenants field Inc., said his firm had calls from finitive estimate of how long the across the state of poor preparation “Those end up becoming hugely ex- could return. several large companies possibly in- building will be closed before mak- and suggested that their pensive. But there are a lot Faced with that kind of uncer- terested in moving into a 42-story, ing plans to relocate. licenses could be revoked. of less expensive items tainty, by midweek law firm Fried 1.6 million-square-foot building at “My hope, and I think the hope About 2.3 million New 2.3 which I think are going to 150 E. 42nd St., where he is market- Yorkers lost power, in- MILLION Frank Harris Shriver & Jacobson of a lot of people, is that the impact New Yorkers lost have to be embraced.” had already floated a tentative re- ing about 270,000 square feet of will be a lot less than we all initially cluding 750,000 in the power, about Over the past two years, quest in the commercial leasing space for sublease. The offices have think,” Mr. Rudin said. Ⅲ city, and most did not see 750,000 in the the MTA has raised many community for about 100,000 the huge advantage of being available it restored for the better city. subway ventilation grates, square feet of space it could occupy for immediate occupancy and fully LISTEN to a discussion at part of a week. and the city Department of for about a month.The firm’s head- outfitted for business. CrainsNewYork.com/podcasts Ester Fuchs, director of the Ur- Environmental Protection has been ban and Social Policy Program at expanding tree plots, but those ef- Columbia University and a former forts were no match for Sandy. Bloomberg aide, said Con Ed was The MTA should consider re- the “weak link” in the storm re- designing its most vulnerable sta- sponse. “There needs to be much tions, many of which are just “holes more transparency from Con Ed, in the ground” that invite rain and and there needs to be a broader dis- floodwater, said Hope Cohen, the cussion about how they can better new director of the nonprofit Bat- work with the city,” Ms. Fuchs said. tery Conservancy. “We’re trying as hard as we can to “You have these big open buck- get everyone up quickly,” said a ets that say,‘Rain on me,’ ” she said. spokesman for the utility. “We should be able to do that dif- While the utility worked fever- ferently.” ishly to restore power, state officials were focused on recovering from the Will Sandy change anything? giant storm rather than preparing Of course, all these ideas are the state infrastructure for the next moot without the money and polit- one. ical willpower to make them hap- “It is too early to speculate on in- pen. The state and city budgets face frastructure improvements,” said deficits every year, and gridlock in Pamela Carter, a spokeswoman for Washington stymies discussion of the state’s Public Service Commis- infrastructure spending. Moreover, sion, which regulates utilities. New York state is approaching its Staten Island got a dispropor- debt cap, which will hurt its ability tionate dose of Sandy’s wrath. Be- to borrow money for large projects. fore the Verrazano-Narrows Bridge Rep. Jerrold Nadler, a Democrat opened in 1964, the borough con- whose district includes flood- tained ample farmland that helped ravaged lower Manhattan and soak up water. But with the island Coney Island, said it was too early almost entirely developed now, ex- to tell whether Sandy has changed perts say the toll of storms like the conversation. But there is little Sandy is likely to grow. doubt about which side of the issue The gasoline shortage under- he’s on. scored gaps in the region’s fuel ca- “You’ve got a choice,”Mr.Nadler pacity. In the immediate aftermath said.“You could spend a lot of mon- of the storm, officials closed New ey and save a lot of lives and York Harbor to all maritime traffic, heartache and problems.Or you can preventing fuel barges from making wait,not spend that money,but then deliveries. One of the region’s main spend double after the next catastro- fuel terminals in Linden, N.J., lost phe occurs.” Ⅲ power, curtailing the distribution of diesel fuel to power generators in LISTEN to a discussion at blacked-out areas. CrainsNewYork.com/podcasts

24 | Crain’s New York Business | November 5, 2012 HELLUVA TOWN INSIDE Source Lunch ‘Suzy No joke: Comedy Sirloin’ on her rare spot in venue opens the meat biz PAGE 26 Aspiring comic superstars, get Out and About your material ready: A newly renovated and renamed venue Draw this! Putting pencil debuts this week on West 72nd PAGE 27 Street, and its latest owner has a to paper special interest in your talent. Stage 72, formerly the Triad, opens Nov. 7 after a lengthy More than 15 mins.of fame Christie’s to auction off hundreds of Andy Warhol works to raise money for the late artist’s foundation

$700,000 renovation that transformed the once-utilitarian theater into a space resembling an elaborate prewar cinema, with its red-tufted seating and carved ceiling. Rick Newman, the founder of Catch a Rising Star, which launched the careers of such comic luminaries as Jerry Seinfeld and Chris Rock, recently became a partner in the venture along with longtime owner Peter Martin. “With Rick here, we will be doing a lot more comedy,” said Mr. Martin, who has owned the theater for 16 years. The Stage 72 space will debut as part of the New York Comedy Festival, with its opening-night show featuring several up-and- coming comics. Future comedy shows at Stage 72 will be headlined by such stars as Janeane Garofalo and Mario Cantone, and the venue will also showcase bands, singers and other entertainment. “There is nothing like producing live shows,” Mr. Newman said. —theresa agovino An app for loyal customers JACKIE WOE: The old-fashioned punch card Andy Warhol’s 1960s that rewards a coffee shop’s repeat screenprint Jackie is expected customer with a free cup of joe has to fetch $200,000 to gotten an update with smartphone $300,000. application LoyalBlocks. Once customers sign up with a retailer, they get checked in by the app whenever they walk in the door—automatically receiving a “token” or virtual punch-card stamp and rewards like discounts christies or free stuff. Unlike with Foursquare, the king of location- Most expensive Warhol ever sold based apps, LoyalBlocks users at auction: Green Car Crash don’t have to remember to check BY MIRIAM KREININ SOUCCAR $71.7 million in 2007 in. “The system runs itself,” said Ido Mart, vice president of U.S. n one week, Andy Warhol fans worldwide will finally get a glimpse of the treasures left operations for the Manhattan- in the artist’s foundation vault. In three sales on a single day—a first for the storied based company. So far, about 400 New York auction house—Christie’s will auction off 354 Warhol photographs, paintings, works merchants are paying a monthly on paper, and prints.The sales mark the beginning of the Andy Warhol Foundation for fee for the service, which launched in January and recently came out the Visual Arts’ multiyear plan to sell every last Warhol creation it has left, in an effort of its beta test phase. Matthew to boost its endowment and give more money away to artists and arts organizations. ¶ Harrell, manager of East Village eatery Spina, signed on in August The highlights include Three Targets, a 19-foot silk screen depicting target practice, and is seeing results, but thinks with a high estimate of $1.5 million; Jackie, a 1960s collage of Jacqueline Kennedy; he’ll get more if LoyalBlocks and a 15-foot-long Piss Painting, created by Mr. Warhol and his friends after Most expensive Warhol in Nov. 12 raises its visibility among sale: Three Targets consumers. Mr. Mart said that drinking a lot of beer. These are nothing, of course, compared with his most famous canvases, High estimate: $1.5 million growth is speeding up, and that like Eight Elvises, which went for an eye-popping $105 million, or Turquoise Marilyn, which the loyalty program now has sold for $88 million, both in private sales. But longtime collectors may value the work’s 50,000 users in New York City. I —matthew flamm uniqueness, and newcomers to the market will now be able to snag See WARHOL on Page 26

November 5, 2012 | Crain’s New York Business | 25 SOURCE LUNCH: 100s of Warhols on block SUZANNE STRASSBURGER by Lisa Fickenscher Continued from Page 25 a small piece of one of the most im- portant artists of the 20th century at a more affordable price. “Very few people have seen any of these things,” said Amy Cappel- ‘Suzy Sirloin’ on her lazzo,chairman of postwar and con- temporary development at Christie’s.“This is just a sampling of rare place in life what will be coming from the foun- dation.” Indeed, the Nov. 12 auc- tions represent the launch of a long- uzanne Strassburger, aka the place,except maybe I didn’t clean term agreement between Christie’s “Suzy Sirloin,” is the fifth the bathrooms. and the Andy Warhol Foundation generation of her family to during its 25th anniversary,in which run Strassburger Meats, a What’s your job like now? the auction house will help the high-end purveyor supply- For most of my career, I’ve sat at my foundation sell off its remaining col- Sing some of the top steakhouses in desk or run in and out of the coolers lection of about 20,000 works over the city, including Smith & Wollen- or made deliveries. But with the the course of nearly a decade. The sky, Quality Meats and Keens. economy like it is, I’m on the road bulk of the collection will be auc- One of the few women CEOs in making sales calls to restaurants or tioned online starting in February, ENDANGERED SPECIES: SAN the meat business,Ms.Strassburger, trying to promote our two-year-old and through a number of private FRANCISCO Painted circa 1983. 45, is facing tough market condi- brand, Suzy Sirloin, to food stores Estimated auction price: $1 million sales that will take place around the to $1.5 million. tions with soaring beef prices and like Gristedes and Morton world.Those sales will begin in ear- tighter supplies. A take-charge ex- Williams. We had to diversify be- ly 2013 in Asia. ecutive who wears a cowboy hat cause our customers are not buying “There have been single-artist around town, she has met the chal- as much prime aged meat, so we are sales before,but we’re talking about lenge with a new line of products— also selling less expensive meats like a five- to seven-year partnership to including sausages, ground beef and short ribs and Berkshire pork. sell a vast amount of work,” said The plan has caused some ma- value. “It’s good for the market be- turkey sliders sold under the Suzy Joel Wachs, president of the Andy jor Warhol collectors to become cause newcomers can buy some- Sirloin brand—and by inking a deal You grew up in Chappaqua, N.Y. Why do Warhol Foundation. “The scale concerned. They are worried that thing of Warhol,” said Christophe with Williams-Sonoma to sell you wear a cowboy hat? and breadth of this sale is unprece- flooding the market with Warhols Van de Weghe, a Warhol specialist Strassburger products online to the I gained new respect for the ranchers dented.” could reduce the value of the artist’s whose Upper East Side gallery has luxury retailer’s tens of millions of who work so hard in our business.The The foundation decided to sell work, art experts said. put on Warhol shows. “This isn’t catalog customers. hat,which I’ve been wearing for about off its holdings so it could offer like selling hundreds of his most two years, is my way of showing them more help to its artist and nonprof- Bigger audience important works. There are some Did you always want to be in appreciation, and it’s also it grantees. The day of auctions is Mr.Wachs countered that those good opportunities, but it will have the family business? part of the Suzy Sirloin expected to bring in more than $20 collectors had wanted to buy all of zero effect on major collectors.” Yes,any time I had a day off WHERE logo. It helps to sell the million. With all of the sales over the remaining works themselves at Ms. Cappellazzo said Christie’s from school,I couldn’t wait THEY brand. And for the first the coming years, Mr. Wachs ex- “bargain-basement prices,” and will space out the sales over years so to go to work with my dad. time, Strassburger prime pects to grow the foundation’s en- that by teaming up with Christie’s, as not to flood the market. “We’re I couldn’t sleep the night DINED aged steaks are available on- dowment by at least $100 million, the works will find their price on the market makers here at Christies,” before. My friends still re- QUALITY MEATS line through Williams- bringing it to more than $330 mil- open market and get out to a broad- she said.“We know how to turn on mind me that when we 57 W. 58th St. Sonoma’s catalog. I’m try- lion. That, coupled with savings of er audience.“The investment of the and off the tap. We will not crash would sell Girl Scout cook- (212) 371-7777 ing to market meat in a way www.qualitymeats about $3 million a year in art stor- hedge-fund guys with $20 million the market.” ies door to door,I wanted to nyc.com that makes it less intimidat- age and insurance costs, will enable paintings who want to sell them What Christie’s hopes is that the sell meat instead. But I still ing to women. the foundation to increase its annu- next year for $30 million is not my way it handles this business will en- went to college. I’ve been AMBIENCE: al grants to artists and arts organi- concern,” Mr. Wachs said. “We’re courage other artists’estates to come doing this since my 24th Sexy, candlelit, Have you thought about doing with hunting- a TV show like your competitor zations to around $20 million from concerned about getting Andy’s to them, and will also highlight its birthday. lodge feel, minus the current $13 million. work out to a broader audience and capabilities with online auctions. deer and bear Pat LaFrieda? “The organizations we help honoring Andy’s will of supporting The auction house is going all out to What’s it like being a woman in heads jutting out Since 2007, I’ve been asked around the country have been hav- artists and arts organizations.” make sure these sales are a success. this industry? of the walls. to be on seven reality shows. ing a tough time fundraising with Warhol experts said the sales The Nov.12 sales,which begin with I had to gain everyone’s WHAT THEY ATE: I actually got close to a deal the recession, and we want to in- wouldn’t have any effect on the photographs at 10 a.m., paintings trust and respect—and I Ⅲ Shared dishes: with one, but at the last crease the amount of grants we prices for major works because the and works on paper at noon, and was tested. In my 20s, I green goddess hour my sister [who han- give,” Mr. Wachs said. pieces being sold are of much lesser prints at 3 p.m., mark the first time helped to load tractor salad, Parmesan dles accounts receivable for Christie’s has ever held three con- trailers with boxes of top waffle fries, corn Strassburger Meats] and I crème brûlée secutive sales in a day for one artist. browns. I was in good Ⅲ Filet mignon decided it was about the The exhibition to preview the works shape because I played Ⅲ Black sea bass meat and not about us. We opened on Oct.31 with an exclusive volleyball in college, so I are happy we didn’t do it. Halloween drag costume party at told the men to throw the TAB: $149.75, including tip Christie’s headquarters. boxes at me faster. They How do you feel about someone That same day, Christie’s pub- gave it to me so hard that I like me who doesn’t eat beef? lished a trendy, oversize, three-part fell on the ground in a pool of fat and I don’t have a problem with it. Every- sales catalog for the inaugural auc- blood. I was embarrassed, hurt and one should eat what makes them feel tions with original essays on the life very sore. good. I eat meat every day because it and artistic legacy of Mr.Warhol by is very satisfying. People don’t know renowned writers Hilton Als, So you have battle scars from the job? that it has zinc,iron and vitamin B.It’s Jonathan Lethem and Jeanette I have several herniated discs, and good for you. Winterson. The catalog, selling for I’ve had operations from lifting 80- $75, is a collector’s item itself. pound boxes. What do you do for fun? Mr.Van de Weghe said he plans I love to go to movies and Broadway to go to the sales. He has his eye on How did your father feel about that? shows. Any opportunity I get, I run a group of Warhol self-portrait Po- My father is a hard act to follow. He to museums. I’m used to looking at laroids that he says will sell for believes in hard work, so I started at dead animals all day,so it’s nice to see $20,000 to $30,000 apiece. Selling the bottom and have had every job in beautiful art. Ⅲ LYNN WYATT off the remainder of the founda- Painted circa 1980. tion’s holdings marks an end of an Estimated auction price: era in some ways, he said. “What INSIDE TIP $250,000 to $350,000. other artist foundation do you have Side dish corn crème brûlée like Warhol’s? He is the most im- could easily substitute for a satisfying portant artist of the second half of the century,” he said. “There is dessert. nothing else like this.” Ⅲ

26 | Crain’s New York Business | November 5, 2012 OUT AND SNAPS Sandy as seen through staffers’ smartphones ABOUT by Emily Laermer and Miriam Kreinin Souccar

CULTURE FIX CAREER BUILDERS THURSDAY, NOVEMBER 8, MONDAY, NOVEMBER 5, TO SATURDAY, NOVEMBER 10 TO SUNDAY, NOVEMBER 11 The Chelsea Opera will open its ninth Attendees at NEW YORK ENTREPRENEUR season with the world premiere of THE MARK WEEK will have the opportunity to OF CAIN, by Matthew Harris and Terry connect and explore how Quinn.The entrepreneurship fits in with the global performances are economy.Topics of conversation Thursday to include the impact of the presidential Saturday at 7:30 election on entrepreneurs and how to p.m. and Saturday build a team. It is part of a global series at 4 p.m. at St. with events in Brazil, Greece and the Peter’s Church in United Kingdom.Ticket prices vary.

Chelsea, 346 W. hayden-findlay lynne The local event is at the New York 20th St.Tickets are $35 for preferred aisle Institute of Technology, 1871 seating, $30 for general admission and $20 Broadway, between West 61st and annie karni annie for students and seniors in advance, or $45, West 62nd streets. For more ali elkin $40 and $25 at the door. For more information and to purchase tickets, DESIGNER SANDBAGS on Madison Avenue NEIGHBORS FILL IN for an absent pet-shop owner in Brooklyn Heights. information, call (212) 260-1796 or visit visit www.entrepreneurweek.net. www.chelseaopera.org. WEDNESDAY, NOVEMBER 7 FRIDAY, NOVEMBER 9, General Assembly will host APPS TO SUNDAY, NOVEMBER 11 UNLOCKED, a class that explores the ins Stop counting calories! The NEW YORK and outs of creating apps from a CHOCOLATE SHOW celebrates its 15th nontechnical viewpoint. Students will anniversary with three days of demos by learn what is needed to build an app, celebrity pastry chefs. It is open Friday and how much it costs and how to get Saturday from 10 a.m. to 7 p.m. and Sunday started. It will be taught by Paul from 10 a.m. to 6 p.m. at the Metropolitan Canetti, founder and chief executive of Pavilion, 125 W. 18th St.Tickets are $35 in MAZ, a digital publishing platform. advance and $40 at the door on Friday and The class is at 6 p.m. at General Sunday, and $40 in advance and $50 at the Assembly West, 10 E. 21st St., between door on Saturday. For more information and Broadway and Fifth Avenue.Tickets to purchase tickets, visit www.chocolate are $30. For more information, visit show.com. www.generalassemb.ly. DON’T MISS PUTTING PENCIL TO PAPER SATURDAY, NOVEMBER 10 The Drawing Center and the Smithsonian’s National Museum of the

American Indian will present the buck ennis seventh annual BIG DRAW, an

THE VIEW from Crain’s staff photographer Buck Ennis’ Fairfield, Conn., home jill kaplan annual celebration of putting pencil to paper. The free event will also include traditional dance performances by Larry Yazzie and Thirza Defoe. It starts at 1 p.m. at the Diker Pavilion at the National Museum of the American Indian, 1 Bowling Green, at State Street. For more information, visit www.drawingcenter.org.

OPENING FUNDRAISERS WEDNESDAY, NOVEMBER 7 WEDNESDAY, NOVEMBER 7 THE TWENTY-SEVENTH MAN will YAI/National Institute for People With premiere at the Public Theater. Disabilities will host its annual gala, The play, written by Nathan THINK!AGAIN, A NIGHT OF NEW IDEAS.The Englander and directed by Barry organization provides services to people with Edelstein, disabilities.The event starts at 6:15 p.m. at the is an Pierre Hotel, 2 E. 61st St.Tickets start at $600. adaptation For more information or to purchase tickets, call of a short Joanne Kaplan at (212) 273-6192, email story of the [email protected] or visit www.yai.org/gala2012. same name. It is SATURDAY, NOVEMBER 10 about The New York Art Residency and Studios writers arrested by Josef Stalin’s Foundation will host its LATE AUTUMN FLING, secret police who discover that, its second annual benefit and silent auction. even in the face of tyranny, stories All ticket and artwork sales will go directly to still have the power to transcend. artist fellowships and the organization’s The play runs through Dec. 9 at educational outreach initiatives. It is at 5 p.m. 425 Lafayette St., between Fourth at 88 35th St. in Sunset Park, Brooklyn. Street and Astor Place. Tickets are Tickets are $35 in advance or $40 at the door $75 to $85 for general admission and include food, drinks and music. For more and $40 for members. For more information, call (718) 768-2765, email information, visit www.public [email protected] or visit theater.org. www.narsfoundation.org.

R MARK YOUR CALENDAR… MONDAY, JANUARY 28 TEDXBROADWAY, a one-day event about the highest aspirations of Broadway as a location and destination, returns for its second year. It will include presentations by Seth Pinsky, president of the city’s Economic Development Corp.; Thomas Schumacher, president of Disney Theatrical Group; and Randi Zuckerberg, founder of Zuckerberg Media. It begins at 11 a.m. at the New World Stages, 340 W. 50th St., between Eighth and Ninth avenues. Tickets are $100. For more information, visit www.tedxbroadway.com.

November 5, 2012 | Crain’s New York Business | 27