20130826-NEWS--0001-NAT-CCI-CN_-- 8/23/20138:55PMPage1 VOL. XXIX,NOS.34,35 catchphrase. AdvocateBilldeBlasioinsteadreached Public forafamiliar voters. to usedtheiropeningstatementstointroduce themselves candidates mostofthe 13, on Aug. mayoral debate, In thefirstlivetelevised BY ANDREWJ.HAWKINS narcn neve.“e’ ecer Bythenumbers, beclear. “Let’s in arecent interview. and power represents thecity’s jet-setting1%. wealth themanwhoinhisoutsize Mayor MichaelBloomberg, pinningthatcontraston andpoor, betweenrich thecity polarizing w cities two of tale About that but oversimplifiesacomplexissue disparity hiscampaigncenterpiece, Bill deBlasiohasmadeincome NEWSPAPER SEE PAGE 38 WITH VOTERS RARELY SHARES BILL THOMPSON CAREER THAT THE BUSINESS SECRET? INSIDE WHAT’S THEBIG Rgtnwi e okw’elvn aeo w iis”M.de now“Right inNew Mr. York we’re livingataleoftwocities,” Wa’ apnn o sasapnn fdsaiy”hesaid ofdisparity,” happeningnow isasharpening “What’s ELECTRONIC EDITION CRAIN’S WWW.CRAINSNEWYORK.COM Blasio said, looking directly into thecamera. lookingdirectly Blasio said, as he stood in the East Village totouthisplan as hestoodintheEast Village pay foruniversalpreschool programs bytaxing of twocities”—andagainthefollowing afternoon, he regularly describes Dickensian forces Dickensian describes he regularly amongtheDemocraticcandidates, progressive” Asthe self-proclaimed “true Revolution. novels abouttheFrench19th-century income tax). mayor doesnothavethepower tochangethe $500,000-plus earners(despitethefactthat “Almost halfofNew Yorkers are livingator E OKBUSINESS YORK NEW inequality inNew inequality York Italkaboutatale City. below the poverty level.The middle class is class middle level.The below thepoverty “My whole campaign isaboutfighting wholecampaign “My disappearing.” r deBlasio’s sloganisnotbasedonalove for Mr. interview with MSNBC host Chris Hayes— withMSNBC hostChris interview He brought itupagainthenextnightinan e W IISonPage38 See TWOCITIES Stats City City and the political transition approaches New York’s economyasa major A 20-pagesection tellsthestoryof ® PAGE 43 get going How tech firms HEAT CITY INCUBATORS DOUBLE ISSUE

darren thompson as businesshaven to reviveIndustryCity Trio ofinvestorsseeks they have a long-term commitment havealong-term they development onboard at Jamestown, record ofjobcreation andeconomic amongothers. Markowitz, dent Marty Borough Presi- withBrooklyn sits well Itisanotionthat City’s executive. chief KimballIndustry would makeMr. Crain’s er Studios. Stein- production facilities, television boasts oneofthearea’s largestfilmand one that today hub, as an industrial he oversaw that facility’s rebirth years, Navy lyn Yard fortheprevious eight Brook- headofthecity-owned ball.As Andrew Kim- properties, industrial onrevitalizing downtrodden thority thecity’s leadingau- who isarguably June hired theperson in which Properties, owner Jamestown Chelsea Market is the developers Building. oftheEmpire State twice thesize it’s more than square ofspace, feet 16buildingsand 6million shore.With Park alongtheSunset acre property has raised hopes of local officialsand hopesoflocal has raised property, heldmanufacturing vately New York’s City, Industry largestpri- vestors totakecontrol ofBrooklyn’s ofhigh-poweredA bidbyatrio in- BY DANIEL GEIGER S. B’klyn boosts complex Bid for big to buy an undisclosed share inthe30- to buyanundisclosed “With Andrew Kimball [and his] Andrew Kimball “With Jamestown told executivesrecently The bestknown of AUGUST 26-SEPTEMBER8,2013 PRICE:$3.00 landowners thatthedealcould ative companies. that iftheirbidissuccessfulthey The three are firms in contract thriving industrial andcre- industrial thriving help spawnthenextNavy ad awaterfront haven for Yard, See INDUSTRY CITY onPage40 CITY See INDUSTRY PAGE 13 PAGE 40 ELSEWHERE LOOKING UP, FIRMS YARD FULL WITH NAVY 20130826-NEWS--0002-NAT-CCI-CN_-- 8/23/2013 7:46 PM Page 1

MANAGING EDITOR’S NOTE

Stats stories FYICRAINSNEWYORK.COM

When I was a transportation reporter for the now-defunct New New laws will rein in York Sun, I came across a grim statistic I wanted to investigate. It NYPD stop-and-frisk tactics was mid-2005. So far that year, 21 he era of unchecked stop-and-frisks by the people had died on the subway New York Police Department ended Aug. 22. tracks. A few weeks later, I was The City Council overrode Mayor Michael riding the train to work when that Jeremy Smerd TBloomberg ’s vetoes of two bills that will greatly story came into focus. “The young increase oversight of the NYPD. One new law will man leaped onto the tracks just as install an inspector general with subpoena power to newscom the downtown A express entered the West Fourth oversee police policy, and the other expands people’s right to sue for alleged racial profiling. Street station yesterday morning,” I wrote. “The train Mr. Bloomberg lamented both votes, but vowed to keep fighting only the latter, calling it “a screeched to a violent halt.The operator watched dangerous piece of legislation.” helplessly.” I worried I was reducing the young man’s The council votes came less than two weeks after U.S. District Judge Shira Scheindlin ruled that life to a number:The 22nd subway death that year, on aspects of stop-and-frisk violated the constitutional rights of minorities. Ms. Scheindlin said police par with the year before.Track jumpers accounted for engaged in “indirect racial profiling by targeting racially defined groups for stops based on local about 7% of all suicides in the city. I hoped, however, crime suspect data,” which resulted in disproportionate stopping of African-Americans and that putting No. 22 in context gave it meaning to Hispanics. more New Yorkers.That’s something to keep in mind The city appealed the decision and defended the tactic for driving down crime—murders, in as you read this year’s Stats and the City, a desk-side particular—and taking some 8,000 guns off the streets. Illegal guns are still a big problem in the trove of data highlighting the city’s economy.The city; the NYPD recently made its largest gun bust in history by seizing 254 weapons, resulting in print edition alone contains 1,226 statistics, compiled 19 arrests.The NYPD has been using stop-and-frisk for decades, but it wasn’t questioned until and contextualized in a months-long project led by 2003, when police began reporting the number of stops to the City Council. Assistant Managing Editor Erik Engquist and Assistant Data Editor Emily Laermer. Senior Producer/News Elisabeth Cordova has created BROOKLYN HOSPITAL WOES. In a ma- investigation into his tenure at the HOORAY! interactive graphics at crainsnewyork.com/stats, jor reversal, a state Supreme Court prestigious social services nonprofit. judge yanked the beleaguered Long A week after terminating Mr. Rap- VERIZON enough to keep you company all year. By themselves Island College Hospital from the fogel, who had led the nonprofit WIRELESS the numbers may not mean much: 62.1 million control of SUNY Downstate, which since 1992, the group tapped David became the last major U.S. carrier passengers ride a subway from Times Square each had been trying to shutter it. The Frankel, the city’s finance commis- to agree to offer same judge who approved the trans- sioner, to succeed him. … ONLY THE cellphone service year; 10.4% of New Yorkers walk to work. But taken fer of the Cobble Hill, Brooklyn, fa- NAME REMAINS. Four years after Bank in some city subway stations. together, in print, online and in video, they shed light cility to the state two years ago now of America acquired Merrill Lynch on the lives and livelihoods of working New Yorkers. says the state made a false promise to for $18.5 billion, the bank has decid- keep the hospital open. LICH could ed to dissolve the subsidiary and as- OY VEY! now be turned over to a court-ap- sume Merrill’s roughly $62 billion in THIS WEEK IN CRAIN’S proved receiver. … B&N SHELVED. long-term debt.BofA will still use the Barnes & Noble Chairman Leonard 99-year-old Merrill brand name for Riggio dropped his plan to buy the its retail brokerage and investment IN THE BOROUGHS------3 bookseller’s stores. His announce- bank, but Merrill will no longer exist IN THE MARKETS------4 ment followed a as a legal entity as ear- musty earnings re- ly as the fourth quar- SMALL BUSINESS ------5 ‘It’s a tax on TRADING ON THE NASDAQ stock market port wherein the ter. … STREETEASY halted for three hours Thursday due to a THE INSIDER ------6 company stated a loss small SOLD. Seattle-based technical glitch. of $87 million for the real estate informa- EXECUTIVE MOVES ------8 second quarter, more businesses tion website Zillow GREG DAVID------11 than double from the and their acquired smaller rival end. The Department of Housing same time a year ear- StreetEasy.com for Preservation and Development com- ALAIR TOWNSEND ------11 lier. Also, instead of customers’ $50 million to gain a missioner is joining RHR Funding, a STATS AND THE CITY ------13 selling its Nook Me- Brad Gerstman, NY Assoc. stronger foothold in mortgage lender. RuthAnne Vis- GOTHAM GIGS dia division to Mi- of Grocery Stores, in the New York City nauskas, deputy commissioner of the CLASSIFIEDS ------33 Hurricane Sandy flooded crosoft Corp., which opposition to forcing market. StreetEasy, a agency, will succeed him. … BAR- Robert Ferrarin’s basement, NEW YORK, NEW YORK ------41 owns 17.6% of the grocers to charge 10 cents seven-year-old site CLAYS TEAM SCORES. Developer For- rusting the bikes he sold from unit, the book chain for paper or plastic bags headquartered in est City Ratner Cos. and its Barclays SOURCE LUNCH------42 home. But the bicycle craze is is now talking to the Manhattan, boasts Center team beat out Madison keeping him rolling. PAGE 8 OUT AND ABOUT ------43 tech giant about expanding their close to 1.2 million unique users and Square Garden Co.for the right to re- partnership. … MET COUNCIL SCAN- will operate as a separate unit and develop the aging 63-acre Nassau CORRECTIONS DAL. William Rapfogel,executive di- maintain its brand. … NYC HOUSING Coliseum site on Long Island. The Former Deputy Mayor Bill Lynch died at the age of 72. His age was misstated in the rector of the Metropolitan Council COMMISH DEPARTS. Mathew $229 million project will feature glass Aug. 12 FYI column. on Jewish Poverty and close ally of Wambua became the latest official to and steel in a style similar to that of Jones Lang LaSalle represented the landlord in the lease of space at 50 Rockefeller embattled Assembly Speaker Shel- leave City Hall for the private sector Brooklyn’s Barclays Center. Plaza. That fact was misstated in the July 29 list of CoStar’s top Manhattan office don Silver, was fired amid a criminal as the mayor’s term approaches its —amanda fung spaces. Kfir Ribak, 33, was promoted to partner at Citrin Cooperman. His name was misspelled in the July 29 Executive Moves.

vol.xxix,nos.34,35,august 26,2013—Crain’s New York Business (issn 8756-789x) is published STORIES TO WATCH weekly, except for double issues the weeks of July Fourth, July 29, Aug. 12, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicals postage paid at New York, N.Y., and additional mailing offices. Postmaster: Send address Aug. 26: USTA’s Aug. 27: Luxury Aug. 28: Sept. 5: New York changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, U.S. Open tennis jeweler Tiffany & Republican Mercedes-Benz MI 48207-2912. for subscriber service: Call (877) 824-9379. Fax (313) 446-6777.$3.00 a copy, $99.95 one tournament in Co. reports 2Q mayoral candidate Fashion Week year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2013 by Crain Communications Inc. All rights reserved. Flushing, Queens, 2013 results. debate to air on commences. begins. WCBS.

2 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0003-NAT-CCI-CN_-- 8/23/2013 9:01 PM Page 1

IN THE BOROUGHS Startups want their fair share QUEENS Opening home, car and kitchen for cash Poor nabe brings regulators to firms’ doorsteps warms to BY MATTHEW FLAMM big project Ai Ito, a production assistant by day and amateur chef by night, recently Developer of complex served dinner for 10 strangers who had found their way to her Williams- wins over doubters burg loft through EatWith.com. in Hallets Point The website, which belongs to the loosely defined tech category known as the peer-to-peer, or sharing econ- omy, connects the curious and in- BY KERRY MURTHA trepid—for a suggested fee—with people who love to cook. A seven-acre site along the East Riv- Launched in Tel Aviv in Febru- er bordering an industrial section of ary and now active in 20 countries, the Astoria peninsula in Queens is EatWith set up shop in New York likely to sprout a huge luxury-hous- City in early August and, like some ing project as soon as next year.And, other sharing-economy startups unusually in New York, just about that have come from other places, everybody seems to like it—includ- soon received a New York-style wel- ing many of the 20,000 residents of come: a letter from a city agency, in the nearby Astoria Houses, a this case the Department of Health, sprawling 62-year-old, 22-building stating that anyone serving meals for public housing project. money is required to have a permit. “This community really needs No further action was taken, revitalization,” said Lucille Hart- however, and a department mann, district manager of Commu- spokesman declined to say if any was nity Board 1, which approved the being considered. But that makes plan in May.Under the proposal, 10 the startup’s New York reception residential buildings will be erected characteristic in another way as well: in what is known as Hallets Point,an Local authorities are trying to figure area that officially ranks as the bor- out whether and where these new ough’s poorest community. The $1 kinds of companies fit in. billion project would add about The proud home of a growing 2,000 rental units, shops, restau- tech industry,New York is nonethe- rants, an esplanade and a park. The less gaining a reputation as the most FOOD NO-NO: Ai Ito (bottom City Council will vote on the devel- difficult place for the fast-growing right) serves dinner for a fee opment in September. If approved, peer-to-peer industry to do busi- through sharing site New Jersey-based developer Lin- EatWith.com. The city said a ness. Airbnb, which runs a global permit is needed. coln Equities Group hopes to break marketplace for residents who want ground next year.

See SHARING ECONOMY on Page 39 buck ennis See BIG PROJECT on Page 37 Estée Lauder applies more lip service abroad

Greater push into The beauty giant, which has a stable where retail sales are growing. It’s of more than 25 high-end brands, also introducing new products and emerging markets, including Clinique and Aveda, and expanding its popular MAC label. operates in excess of 1,000 of its own Chief Executive Fabrizio Freda, airports to gloss over stores worldwide, saw profits surge a Procter & Gamble veteran who fading U.S. sales 20% in fiscal 2013 to more than took over Estée Lauder four years $1 billion. ago, is credited with pushing the firm to new heights. He’s the first BY ADRIANNE PASQUARELLI outsider and the second nonfamily Trading up member to helm the traditionally Cosmetics and beauty empire Estée tight-knit company, founded in Lauder Cos. in mid-August report- from cheaper 1946.(Fred Langhammer ran Estée ed a record-breaking year, topping Lauder in 2004, following a 30-year $10 billion in annual sales for the cosmetics is tenure with the firm.) Upon joining, first time ever.But in recent months, the Italian-born Mr.Freda immedi- the company has faced a slowdown manageable ately set about cutting costs and in shopper spending, as even the stripping inefficiencies. About 6% most loyal of lipstick buyers suc- of the workforce was laid off during cumb to economic pressures of the four-year restructuring. smaller paychecks and a general un- Even so, slow and steady sales easiness on spending. However, sales were up just 5% growth isn’t winning over investors. “We were a little disappointed in during the period. To spur growth Estée Lauder’s share price has gone our results the last couple months,” despite a slowdown in U.S. spend- up just 13% during the past 12 said Thia Breen, group president of ing, the company is focusing on months and is now trading around

North America. “But we believe it’s emerging markets such as Latin $67. By comparison, the stock of newscom a temporary pause.” America and China, and targeting competitor L’Oréal, which sells SHARE AND SHARE ALIKE: Estée Lauder CEO Fabrizio Freda stands to earn a much greater She has reason to be optimistic. travelers passing through airports, See ESTÉE LIP SERVICE on Page 39 annual payout if he can boost the company’s stock price to a certain level by mid-2014.

August 26, 2013 | Crain’s New York Business | 3 20130826-NEWS--0004-NAT-CCI-CN_-- 8/23/2013 6:18 PM Page 1 IN THE AOL message hits bad Patch MARKETS by Aaron Elstein about its latest turnaround strate- CEO of the brand group,which was Firings overshadow gy—the purchase of video platform created last year following another turnaround strategy, Adap.tv and its plans to dramatical- restructuring and comprises AOL’s ly grow its advertising technology content divisions. “You go in with but many analysts business.AOL is looking forward to something you know is directional- Sept. 23, when it will hold its first ly right,and there are multiple small like what they see “upfront” marketplace, modeled on pivots and large pivots that ulti- the annual television upfront, for mately get you closer to the goal.” BY MATTHEW FLAMM “programmatic” advertising. The company is getting closer to The new trend in digital adver- achieving profits from assets other The biggest question hanging over tising consists of a fully automated than dial-up subscribers. Revenue the head of AOL Chief Executive system that lets marketers bid in real for the brand group came to $190 Tim Armstrong these days is time for specific audiences across a million in the second quarter, up whether he still knows how to turn range of sites, rather than buying 10% compared with a year earlier. the company around. space on a particular publisher’s Operating income grew 91%, with August’s announcement of mass page. losses narrowing to $1.4 million. layoffs at Patch,and the off-the-cuff Some observers see the latest re- The latest pivot involves firing of a design director on a thou- structuring, and Mr. Armstrong’s increased investment in program- sand-person confer- frequent management matic advertising, where the ence call—a recording shuffles, as signs that company hopes to rival Google’s

of which went viral— the company has yet to DoubleClick division. AOL paid newscom, buck ennis suggested that Mr. find its way. But de- $405 million for Adap.tv to add Armstrong and his spite the recent public video to its automated offerings. plans were coming un- relations disaster, It also hired Bob Lord, former done.Patch had grown many analysts remain CEO of interactive ad giant Razor- Long shot spoiling to some 900 sites dur- bullish on the compa- fish, to lead AOL Networks, the ad ing the past three years ny. Year to date, shares sales division that is focused on offer- because its local adver- are up 18%.That’s lag- ing the industry’s second complete ad tising platform had ging behind the technology “stack” after Google’s. for Spitzer fight been considered key to growth of Google, “The only way you can do mar- AOL’s future. Yahoo and Microsoft keting effectively is if you combine t least one Republican is hoping Eliot Spitzer (above And though com- Susan Lyne, brand group CEO but is about even with content,media and technology all at pany ad revenue and the S&P 500. the same time,” Mr. Lord said. left) wins the Democratic nomination for city profits were up in the Mr.Armstrong was The turn to ad tech—and away comptroller: John Burnett (above right), who got into most recent quarter, AOL—nearly not available for comment, but oth- from local advertising—was a nec- A the race long before Mr. Spitzer’s entry electrified what had four years after it was spun off from er AOL executives insist that essary move, agreed Needham & been a snoozer of a contest. Time Warner—still depends on its changes in direction are a fact of life Co. senior analyst Laura Martin, old dial-up Internet subscription in digital media. who has a “buy” on the stock. “The A toe-to-toe battle with Mr. Spitzer in the general business to make money. “This is what happens when idea is to focus on those core adver- election would cast the spotlight on Mr. Burnett, a former The Patch fracas came at a markets are opening up and the tisers where AOL has great rela- midlevel Wall Street executive making his first bid for singularly bad time: just when the world is changing,” said Susan tionships,”Ms.Martin said.“This is company wanted people talking Lyne, who in February was named a new way” to serve them. Ⅲ public office, and could give his activism, he added he would med- campaign a sorely needed fundrais- dle less in a company’s affairs than ing boost. Mr. Spitzer probably would. “It probably is better for me if He adamantly opposes granting Spitzer wins,” said Mr. Burnett. retroactive raises to city employees, Mr. Spitzer has a hefty lead over saying it’s unfair given how many Manhattan Borough President rank-and-file New Yorkers lost Scott Stringer in public polls.But the their jobs or suffered salary cuts in odds of Mr. Burnett getting elect- recent years. “Your retroactive pay ed are long because Democrats was you didn’t lose income” during rarely cross party lines to elect a the hard times, he said. comptroller.The city’s last Repub- A big hurdle for Mr. Burnett has lican to hold the post left office in been turning his Wall Street con- 1945. nections into campaign cash. Three Yet Mr. Burnett has overcome years ago,after a pay-to-play scandal long odds before. When he was a involving the state comptroller’s of- child, his parents moved the family fice, the Securities and Exchange Com- out of their decrepit housing project mission banned managers who invest in Brooklyn and relocated to municipal cash from contributing to Queens. After a year of community campaigns until two years after fin- college, he landed a job as an analyst ishing such work. Banks also have at a forerunner to Morgan Stanley and their own policies against giving. rose up to become a compliance ex- Citigroup, for instance, does not ecutive at Citigroup and Merrill Lynch. contribute via its political-action Along the way he took college cours- committee to NYC candidates. es at night, earning a bachelor’s de- Mr. Burnett has raised only gree from New York University and $12,000, and his campaign report- an M.B.A. from Cornell University. ed $27,000 in cash, according to a “I’m a person voters can connect July filing.He is betting his fortunes with,”Mr.Burnett said.“I don’t have will improve after the primary on a silver spoon, no father’s wealth.” It Sept.10.A win by Mr.Spitzer could was an unsubtle reference to the real motivate wealthy people who dis- estate fortune of Mr.Spitzer’s father. like the former governor to start Messrs. Burnett and Spitzer writing checks. In the meantime, share some positions. Both favor he’s working on getting word out trying to cut costs by consolidating that there is a Republican candidate the five city pension plans into a sin- running for an office that few voters gle megafund and managing more paid any attention to until recently. of the $140 billion in pension assets “Anyone but Spitzer!”exclaimed in-house rather than farming them one voter while shaking Mr. Bur- out to investment firms. But while nett’s hand outside a Harlem sub- Mr.Burnett said he would continue way station one recent morning. the office’s tradition of shareholder “Right!” Mr. Burnett replied. Ⅲ

4 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0005-NAT-CCI-CN_-- 8/23/2013 11:46 AM Page 1

SMALL BUSINESS James McGown loses a bar fight

string for Mr. McGown, notorious Long Island. landlord has not been willing to al- Bankruptcy baron for owning a TriBeCa basement low him to do so,” said the suffers a setback condo that the tabloids described Old habits spokesman, who noted that Mr. as a “sex cave,” and more recently A spokesman for Mr. McGown McGown believes the Hanley fam- over P.J. Hanley’s for filing six bankruptcy petitions said that the dispute with the Hanley ily will stop at nothing to get him out on his various business ventures family stems from the fact that Mr. of the space. BY ADRIANNE PASQUARELLI during the past four years. In addi- McGown is paying only $6,000 a Reached by phone, Mr. Mc- tion to the former P.J. Hanley’s, month for the Court Street space.The Gown said he will probably appeal James McGown, the bar owner, Mr. McGown also owns South spokesman noted that is far below the the judge’s ruling. Later that after- restaurateur and real estate develop- Brooklyn Pizza and Brooklyn current market-rate rent,which he es- noon, he resorted to a familiar tac- the village voice er who in recent years has left a trail Buschenschank, a beer garden, as timated to be $25,000 a month. tic: He again filed for Chapter 11 WHAT, ME WORRY? James McGown, of bankruptcy petitions across the well as several residential proper- “He filed this injunction so he bankruptcy protection for his asset, infamous for filing Chapter 11 petitions across city,irking local community boards, ties in Brooklyn, the Bronx and on could rectify any real issues, but the P.J. Hanley’s. Ⅲ the city, may ‘finally pay the piper.’ neighbors and other small business- es, finally took a legal hit. A judge on Aug. 15 denied Mr. McGown’s request for an injunction that would have stopped his land- lord from terminating his lease and evicting him from the bar that, be- fore Mr. McGown took over, was Brooklyn’s oldest. Earlier this year, Mr. McGown filed for Chapter 11 bankruptcy protection for P.J. Hanley’s, at 449- 451 Court St. in Carroll Gardens, but the court dismissed the petition. He initially said that he would auc- tion off the business. Instead, he renovated the space into an 1890s revival alehouse,complete with a tin ceiling and new floor. The rebrand- ed bar, called Goldenrod, opened in early August. However,according to legal doc- uments filed by the landlord for the space, the Hanley family’s Kiwi Pub Corp., Mr. McGown did not have permission to make changes or modifications to the building, nor did he obtain the correct permits for the renovation. In late June, the Hanley family filed a notice in New York Supreme Court giving Mr. The way millions of Boomers spend their McGown until early July to file the appropriate permits and remove the retirement may shape the way you plan for your own. unapproved construction. Mr. McGown refused. In the ruling, Judge Manuel Mendez said Mr.McGown had “es- Every day, 10,000 Baby Boomers turn 65.1 That’s millions of retirees creating more sentially gutted the building, ob- demand in areas like travel, technology and healthcare, and that may mean investment structed doorways throughout the opportunities for you. premises and exceeded the amount of legally permissible bars.” He added: “No proof was provided of Speak with an HSBC Premier Relationship Advisor to see if today’s Boomer growth the efforts being made to address or industries have a place in your retirement portfolio. cure any alleged structural defects.” ‘Sex cave’ owner Call 866.909.1272 or visit hsbcpremierusa.com/retirement “[The Hanley family] has had enough,” said attorney Donald Bernstein, the Victor & Bernstein partner representing the family. “He’s been troublesome for many, many years and has cost them a lot HSBC Securities (USA) Inc. of money with a lot of bogus law- suits.” Investments and Annuity products are provided by Registered Representatives and Insurance Agents of HSBC Securities (USA) Inc., member NYSE/FINRA/ The ruling allows the Hanley SIPC, a registered Futures Commission Merchant, a wholly-owned subsidiary of HSBC Markets (USA) Inc. and an indirectly wholly-owned subsidiary of HSBC family’s legal team to move forward Holdings plc. In California, HSBC Securities (USA) Inc., conducts insurance business as HSBC Securities Insurance Services. License #: 0E67746. with lease termination proceedings Investments and Annuity products: and eventual eviction. Mr. Mc- ARE NOT A BANK DEPOSIT OR ARE NOT INSURED ARE NOT GUARANTEED Gown’s lease for the Court Street OBLIGATION OF THE BANK OR ARE NOT FDIC INSURED BY ANY FEDERAL BY THE BANK OR ANY MAY LOSE VALUE space expires in 2020, according to ANY OF ITS AFFILIATES GOVERNMENT AGENCY OF ITS AFFILIATES legal documents. “He’s going to finally pay the All decisions regarding the tax implications of your investment(s) should be made in connection with your independent tax advisor. piper,” added Mr. Bernstein’s col- 1Source: Social Security Administration Report for Fiscal Year 2012 league, Saul Victor. To qualify for an HSBC Premier relationship, you need to open a Premier checking account and maintain $100,000 in combined U.S. personal deposits and/or The lawsuit is just one in a investment balances. Business owners may use their commercial balances to qualify for a personal Premier relationship. A monthly maintenance fee of $50 will be incurred if minimum balance requirements are not maintained. You have up to 90 days after account opening to meet the full $100,000 balance requirement. To sign up for Crain’s Deposit products in the U.S. are offered by HSBC Bank USA, N.A. Member FDIC. SMALL BUSINESS newsletter, go to ©2013 HSBC Securities (USA) Inc. www.crainsnewyork.com/smallbiz.

August 26, 2013 | Crain’s New York Business | 5 THE Wood from Sandy sells slowly INSIDER by Chris Bragg Storm didn’t leave Suitable material in old buildings low pine, once predominant in the ready for demolition has been scarce eastern U.S., sells for $5 per board much; recyclers are since the financial crash. And when foot. Oak and chestnut run $7. choosy about buying buildings are dismantled, property Tropical hardwoods—found in the owners and demolition contractors destroyed Rockaways boardwalk— are well aware that their trash is an- sell for $10 to $20. European hard- BY JONATHAN BLUM other’s gold. Architects, interior de- woods imported for the city’s origi- signers and furniture makers have nal buildings sit atop the market at Superstorm Sandy’s swath of de- also become increasingly selective as high as $50. struction shredded houses and about the species and quality of the “The prices [being asked for] boardwalks. But making money material they are willing to invest in, New York-sourced wood are astro- from the newly available ancient with each tree serving a niche. nomical,” said Vincent Kaufmann, timbers has proven to be a grind. “If you blow your estimates, you operations manager at LV Wood, a “We worked with the Parks De- are up the creek,” said Larry Stop- Manhattan-based reclaimed-wood partment initially on the [Rock- per, partner in Bigwood, a Naples, retailer, whose eight employees han- aways] boardwalk wood,” said Alan N.Y.-based recycling firm. “You dle 75,000 to 100,000 feet of wood Solomon, partner at Sawkill Lum- can very easily do a products monthly. “I ber, a Brooklyn-based reclaimed- very large job for can get the exact same newscom lumber firm. “We were able to save nothing.” Reclaimed beams at a much more quite a bit of the tropical hardwood Companies buy reasonable price from there. But most of it was trashed. the wood from dem- wood faces dealers down south,”he Overall, the market has been slow.” olition contractors, said. “And the supply is Hire standards are all relative Firms that reclaim hardwood then must remove high costs, much more consistent.” from city buildings and what could nails and other fas- Eco-conscious cus- ire my relative, and I’ll hire yours. be salvaged from Sandy are adapt- teners, mill, cut to competition tomers value the story That appears to have been the arrangement in ing to a market that has changed length,dry and trans- behind a board. Big- 2011 between influential Brooklyn Assemblyman since recycling old beams and port the finished wood handled the HDov Hikind (above) and veteran Brooklyn Assemblywoman boards came to the fore a decade or wood to their cus- wood coming out of so ago, when the wood was cheap to tomers. All of which one of the first condom Rhoda Jacobs—resulting in their kin getting part-time jobs acquire and easy to sell to green- makes reclaimed- factories in the U.S. that paid just enough to qualify them for government- conscious designers. lumber company owners and man- “I don’t know why,” said Mr. funded health care. “There was a time,five or 10 years agers choosy about which woods Stopper, “But it didn’t matter what ago, when trucks would pull up and they invest in. Bigwood’s Mr. Stop- else I was selling, everybody wanted The moves came after Ms. Jacobs dropped her nephew just ask to give us fabulous material,” per said tropical hardwoods like a piece of the condom factory.” from her own payroll, which she said was before she said Joseph Pepe, sales manager at those in the city’s old boardwalks A back story as compelling as learned that employing him may have violated a state M. Fine Lumber, a Brooklyn-based must compete with a huge demand Sandy’s “hurricane in one’s house” antinepotism law. lumber recycling and manufacturing for oak. has yet to translate into major sales. firm. Mr. Pepe would not disclose “Eventually everything sells, but “For [wood] to come out of a On Feb. 17, 2011, Mr. Hikind’s son Shmuel joined sales or revenue figures but said the now I have to be much more creative building and go back into a new one, company also is handling recycled about which jobs we take,” said it’s become like that one acorn be- Ms. Jacobs’ staff as a $10,800-a- said, “His hiring [by Mr. Hikind] Sandy material. “Now it’s much Klaas Armster, of Sawkill Lumber. coming the giant tree,” said Mr. year community liaison. Mr. was never contingent on my hiring more competitive,” he said. Mr. Solomon said reclaimed yel- Solomon. “It can be that rare.” Ⅲ Hikind, a power broker in Brook- Shmuel Hikind.” lyn’s Orthodox Jewish community, On the very day that Ms.Jacobs’ this summer admitted to the New nephew joined Mr. Hikind’s staff, York Daily News that he had asked the Legislative Ethics Commis- Ms. Jacobs to give his son the part- sion issued an opinion clarifying time job with health care perks. “I that legislators could not partici- help strangers,and I certainly don’t pate in the hiring of their relatives. discriminate against members of The opinion did not specifically my family,” Mr. Hikind said. address lawmakers recommending But the assemblyman neglected relatives to their colleagues. to mention that at the same time, Mr. Hikind, the Assembly’s as- he had helped out Ms.Jacobs’fam- sistant majority leader, also per- ily. On Feb. 16, 2011, Ms. Jacobs’ suaded another Brooklyn col- nephew, Dov Blumenthal, joined Mr. league, Assemblyman Peter Abbate, Hikind’s office payroll, also as a to hire his other son,Yoni,the Dai- community liaison, at a salary of ly News reported. Payroll records $12,000. Mr. Blumenthal is the don’t indicate that Mr. Hikind 38-year-old son of Abbe Blumenthal, hired any of Mr. Abbate’s progeny. who is Ms. Jacobs’ sister. In July,Crain’sreported that Mr. Mr. Blumenthal had served as a Hikind failed to report at least his temporary community liaison on last seven years’ of income from his his aunt’s staff between June and weekly radio show, including a October 2010. According to the $65,000 payment from Mai- state public officer’s law,legislators monides Medical Center for a year are not allowed to hire their close of advertising. relatives, including nephews, ex- Two years ago, Mr. Hikind’s cept as temporary pages, interns or son-in-law,Rabin Rahmani,an M.D. messengers. in his early 30s, landed the post of Lisa Reid, executive director of director of medical education and the Legislative Ethics Commis- research at the hospital’s gastroen- sion, said the state’s antinepotism terology division. Maimonides re- law applies to “individuals who are lies heavily on state government direct descendants of the legisla- grants for funding and regularly tor’s grandparents,” which “include lobbies Mr. Hikind, but hospital a member’s biological sister’s son.” officials said there’s no conflict of Mr. Hikind did not return calls interest in its advertising on the seeking comment. Ms. Jacobs said lawmaker’s show, and that Dr. she did not realize the law forbade Rahmani was exceptionally quali- her from hiring her nephew, and fied for the position. Ⅲ

DECLINE SINCE 1990 in New York City pedestrian fatalities, to 149 last year, according to the city -59% Department of Transportation

6 | Crain’s New York Business | August 26, 2013 AN INTERNATIONAL FLIGHT THAT DOESN’T KNOW IT’S DOMESTIC. Just because your fl ight is crossing a continent and not an ocean is no reason it should skimp on perks. On transcontinental fl ights to L.A., San Francisco, and now Seattle, you’ll fi nd amenities like Wi-Fi, in-fl ight entertainment, and new fl at-bed seats available on select fl ights to LAX. There is even a BusinessElite® menu specially curated by chef Michael Chiarello. It’s a fl ight with plenty to offer, not the least of which is the opposite coast.

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CN016048.indd 1 8/22/13 11:35 AM 20130826-NEWS--0008-NAT-CCI-CN_-- 8/22/2013 5:55 PM Page 1

BUSINESS 52% of U.S. entrepreneurs were the first in their families to launch a business PEOPLE Source: Kauffman: The Foundation of Entrepreneurship

EXECUTIVE MOVES

Logic Technology: Miguel Martin, 41, joined the e-cigarette company as president. He was previously vice president and general manager of sales at Altria. AHAVA: Elana Drell Szyfer, 44, was promoted to global chief executive at the cosmetics company. She was previously chief executive, North America, and global COO. Arkadium: Jordan Fox, 34, joined the casual gaming developer as chief financial officer. He was previously vice president at Accordion Partners. News America Marketing: Chris Blanco, 43, was promoted to chief financial officer at the firm. He was previously vice president and controller. CBRE Group Inc.: Paul Suchman, 45, joined the commercial real estate services and investment firm as chief marketing officer, a newly created position. He was previously executive vice president at BBDO New York. 33Across: Brett Lofgren, 37, joined the social-sharing and content-discovery platform as chief revenue officer. He was previously chief revenue officer at SocialVibe. Children’s Aid Society: Althea Pratt, 63, joined the CHAIN GANG: The nonprofit as chief Ferrarins turned their information officer. basement, garage She was previously and driveway into a chief information bike shop. officer at the American buck ennis buck ennis Federation of Television and Radio Artists. GOTHAM GIGS Roundarch Isobar: Steven Moy, 47, joined the digital marketing agency as chief commerce officer. He was previously vice president, business and office lead, at SapientNitro. Skanska USA: Pamela Monastra, 46, joined the construction and Growth cycle development firm as senior director of communications for its Southeast region. She was previously president of Iconoclasts. Bike craze puts Robert Ferrarin in business Feil Organization: Nicholas Forelli, 34, joined the investment, development When Robert Ferrarin bought his first bicycle, he New Jersey and Connecticut, he said, and so does and management firm as director of Brooklyn leasing. He was previously a leasing went to Roy’s Sheepshead Cycle, an 82-year-old the inventory, replenished by six retired men who agent at Muss Development. used-bike neighborhood anchor. Almost three decades later, scrounge for salvageable bike parts at yard sales Bob Woodruff Foundation: Kevin seller the classic south Brooklyn bike shop is sending throughout the tristate area. He performs a tune- Dougherty, 29, bargain-hunting newcomers down the street, to up with every purchase, while his wife, Brenda, joined the nonprofit as director of ‘started at Mr. Ferrarin’s house. ¶ In the past five years, he assembles the bikes and his friend Richie Delea operations and has turned his basement, garage and driveway manages sales. ¶ “We thought our first year was finance. He was the right into a destination for used bicycles as more New good,” he said. “Then it just so happened that we previously cybersecurity time’ Yorkers take advantage of their increasingly bike- started at the right time.” ¶ This past year has had division head for the Reserve Marine friendly city and roll into the market for two its challenges, however. Superstorm Sandy filled Corps. Eastern Consolidated Inc. Wade wheels. (See related story, Page 30.) ¶ “I like to Mr. Ferrarin’s garage with eight feet of water last Hazelton, 27, joined the real estate build things with my hands,” said Mr. Ferrarin, October, leaving a pile of 200 rusting bikes and a company as associate director. He was previously an investment analyst at who owns and operates a construction company $30,000 setback in its wake, he said. He thinks Argo Partners. during the day and fixes up old cars for fun. ¶ the city’s new bike-share program, Citi Bike, will Mirae Asset Global Investments: John Mr. Ferrarin’s hobby is now a well-oiled business. be a boon. “People who are nervous about riding Capeci, 41, was promoted to head of national accounts at the financial Sheepshead Bay Bicycles is poised to sell 1,000 in the city will get more comfortable,” he said. services firm. He was previously bikes this season at an average of $300 each, up “When they get tired of [returning their Citi senior vice president, strategic relationship manager. from 80 bikes during his first year in business five Bike] every half-hour, they might want to come John Whitaker, 37, joined as regional years ago. Customers come from as far afield as buy a bike.” —kenneth christensen vice president, emerging-market

8 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0008,0009-NAT-CCI-CN_-- 8/22/2013 5:41 PM Page 2

specialist. He was previously senior internal wholesaler and Western division CORPORATE LADDER team leader at the Bank of New York Mellon Asset Management/Dreyfus. East West Bank: Maureen Cox, 50, joined TO CREATE A MORE PERFECT UNION, E.THEPEOPLE HIRES TECH EXEC as vice president and relationship ELECTION SEASON may be upon us, but that doesn’t mean average voters have a clue about the candidates—or the jargon that manager, entertainment and media they must translate to make sense of a ballot. Alex Quinn, the new executive director of voter education nonprofit e.thePeople, team, a newly created position. She was wants to make sure voters understand just what and whom they’re voting for. previously vice president and team leader of entertainment and media at The organization’s software makes election information simple and accessible, while its new “citizen guides” aggregate HSBC Bank USA. personal, political and policy data on elected officials. “We work with TV, radio and news affiliates and organizations like the Richard Sheehan, 48, joined as vice national League of Women Voters to embed our guides on their sites,” said Mr. Quinn, 60. The software allows people to president and relationship manager, start conversations with elected officials and educate themselves on candidates’ platforms. entertainment and media team, a newly “He had great experience developing technologies for the social good,” said e.thePeople founder and trustee Scott Reents created position. He was previously vice of Mr. Quinn, who was previously managing project director at TV411 What’s Cooking?, a Web series that taught adults basic president and team leader of entertainment and media at HSBC science through cooking. “He is a great collaborator, a great thinker and a great leader,” said Mr. Reents. Bank USA. Mr. Quinn sees growth ahead for the nonprofit, in New York and beyond: “We want to expand citizens’ civic education, HNTB Corp.: Jonathan even see if there is a role we can play in emerging democracies internationally.” — EVA SAVIANO Startin, 53, joined the infrastructure solutions firm as vice president and national program delivery consultant, a newly created position. He was previously project EXERCISE manager at CH2M Hill. Two Kings Tickets: Valentino Scaramella, 36, joined as vice president. He was previously lead group sales representative at Broadway.com/ ENERGY EFFICIENCY Theatre Direct. Nicholas & Lence Communications: Laura Rothrock, 31, joined the public-relations and government affairs firm as assistant vice president of government and community affairs. She was previously assistant vice president at Montparnasse AND SAVE BIG 56 USA. Benenson Strategy Group: Mitch Markel, The Green Team can get your 5- to 75-unit building energy fi t. 38, was promoted to principal at the strategic research and consulting firm. He was previously vice president. Right Management: Matt Norquist, 33, joined the consulting firm as general manager for the Northeast. He was previously executive vice president at FREE IN-UNIT Edelman. Grant Thornton: Sean Denham, 41, was ENERGY SAVING MEASURES promoted to assistant managing partner for operations and quality at the INSTALLED WORTH OVER $100 accounting firm. He was previously Northeast region national professional per unit to help you and practice director. Nichole Jordan, 40, was promoted to your residents save assistant managing partner for industries GET and markets. She was previously national banking and securities industry leader. Morrison Foerster: Mark Wojciechowski, 59, joined the law firm as a partner. He was previously a partner and head of the North American leveraged finance UPTO group at Allen & Overy. Douglas Elliman: Walt GET Frazier III, 46, joined the real estate brokerage as a licensed real estate salesperson. $20,000 He was previously a $115 licensed real estate when you install an for each thermostatic salesperson at Keller energy management system Williams. radiator valve you install Ropes & Gray: Jaewoo Lee, 39, joined the law firm as a partner. He was previously a partner at Cleary Gottlieb. Persado: Michael Collins, 43, joined the marketing firm as an adviser. He was previously a professor at Columbia University. Reed Smith: Jack Trachtenberg, 36, joined the law firm as counsel. He was previously counsel at Sutherland Asbill & Brennan. Jacobs Associates: John Murray, 41, was promoted to lead associate. He was ENERGY EFFICIENCY EXPERTS previously an associate. —eva saviano 1-877-870-6118 EXECUTIVE PROMOTIONS Inc. Ad: Arnell Group ©2013 Consolidated Edison Company of New York, conEd.com/GreenTeam The fastest way to get an announcement into 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. SAVE BIG ON LIGHTING, HEATING AND COOLING UPGRADES. CALL TODAY FOR YOUR FREE ENERGY SURVEY.

August 26, 2013 | Crain’s New York Business | 9 20130826-NEWS--0010-NAT-CCI-CN_-- 8/23/2013 2:47 PM Page 1

OPINION CRAIN’S NEW YORK BUSINESS

Hospital malpractice editor in chief Rance Crain publisher, vp Jill R. Kaplan t is painful when hospitals close, and there is no anathema to the hospital-in-every-neighborhood folks who EDITORIAL editor Glenn Coleman reason to celebrate the possible demise of two believe finances have no place in discussions of health care. managing editor Jeremy Smerd But the fundamental laws of business apply to hospitals, deputy managing editors Valerie Block, Brooklyn institutions, Long Island College Erik Ipsen Hospital and Interfaith Medical Center. Cheering and those that don’t attract customers or adjust to changes, assistant managing editor Erik Engquist their closures would be premature in any case, as like the rise of outpatient treatment, will go bankrupt. senior producer, news Elisabeth Butler Cordova news producer Amanda Fung picket-wielding bands of politicians, union Consider that Interfaith’s market share in its service area is contributing editor Elaine Pofeldt workers and community members have become just 3.3%. Locals tend to shun LICH in favor of distant columnists Greg David, Steve Hindy, Alair Townsend crain’s health pulse editor Barbara Benson adept at using legal and political actions to keep bankrupt competitors as well. senior reporters Theresa Agovino, hospitals on life support.The case of Long Island College Sometimes failed hospitals can be reinvented and Aaron Elstein, Lisa Fickenscher, Matthew Flamm, I Daniel Geiger, Adrianne Pasquarelli Hospital, known as LICH, is typical.Though the state downsized into financially stable institutions.To that end, reporters Chris Bragg, Andrew J. Hawkins web reporters/producers resolved in February to shut it and began doing so in July, the the state and the courts should support processes that Ken M. Christensen, Nazish Dholakia courts kept it open, and in mid-August Judge Carolyn welcome such art director Steven Krupinski Demarest cut it loose from SUNY Downstate Medical proposals. But deputy art director Carolyn McClain Leadership is staff photographer Buck Ennis Center after an ill-conceived two-year marriage. leadership from Gov. copy desk chief Steve Noveck copy editor Thaddeus Rutkowski The always-save-hospitals crowd took that as a hopeful needed to avert Andrew Cuomo, data editor Suzanne Panara sign, given that the Cuomo administration, which controls whose agencies’ assistant data editor Emily Laermer SUNY, portrays LICH as a hemorrhaging wound that was messes like LICH mismanagement of the researchers Irina Ivanova, Eva Saviano bleeding state coffers dry. and Interfaith merged LICH and ADVERTISING, MARKETING AND PRODUCTION director of sales and marketing Those who believe hospitals should forever provide all the Downstate was so Nancy Adler egregious that the senior account managers Irene Bar-Am, services they always have, no matter the cost, won’t entertain David Harkey, Jill Bottomley Kunkes, alternatives until the guillotine blade rises above an allegedly judge suspects it was Courtney McCombs, Suzanne Wilson intentional, is needed director of custom content Trish Henry beloved facility. (The nurses’ union, in fact, is pushing a bill sales coordinator Lauren Black to force cash-strapped hospitals to hire more nurses.) Only to avert more of these messes.The governor must carry out newsletter product manager Alexis Sinclair the recommendations of his own Medicaid Redesign Team credit Todd J. Masura (313-446-6097) at the end do they admit that sacrifices should be explored. director of audience & content Even then, few will say what the sacrifices should be, for and the earlier Berger commission, too many of which have partnership development Michael O’Connor senior marketing manager fear of upsetting activists and hospital unions. Eliminating been ignored. Catherine Schutten beds, converting emergency departments to ambulatory-care The protesters will resist, but effective medicine doesn’t director of conferences & events Courtney Williams centers, closing maternity wards and selling assets are often taste good. reprint sales manager Lauren Melesio production and pre-press director Simone Pryce advertising production manager CRAIN’S ONLINE POLL COMMENTS Suzanne Fleischman Wies ONLINE AND INTERACTIVE SERVICES senior web developer, interactive Chris Tumminello Selling city dirt cheap TO SUBSCRIBE: For print and digital subscriptions or customer service, e-mail [email protected] Leonard Grunstein argues that FORGOTTEN NABE FINANCING CAMPAIGNS or call 877-824-9379 (in the U.S. and Canada) or New York should use its vast 313-446-0450 (all other locations). $3.00 a copy for real-estate holdings to ease its We are writing to correct a Re “Taxpayer funds showered the print edition; or $99.95 one year, $179.95 two fiscal troubles (“Sell city assets significant error in “Shake on uncompetitive races” years, for print subscriptions with digital access. SHOULD LEGISLATORS to ease fiscal woes,” Aug. 12). Shack to mix things up in (CrainsNewYork.com): No one www.crainsnewyork.com/subscribe In the past, the city gave Dumbo” wants a system abused by TO ADVERTISE: LEGALIZE MARIJUANA? favorable leases to developers in (CrainsNewYork.com).The candidates who have little need Contact Nancy Adler at exchange for their improving address where Shake Shack for public funds. But the [email protected] or call 212-210-0278. Yes. Better to tax and regulate marijuana land, like Times Square in will open, 1 Old Fulton St., is a evidence shows that the www.crainsnewyork.com/advertise than to allow a black market to thrive. 1982. Now that these areas are part of the Fulton Ferry benefits of public financing far FOR INFORMATION ON OUR EVENTS: Thousands of people every year get a fully developed, he argues, it’s neighborhood and historic outweigh the costs. Contact Courtney Williams at criminal record for doing something that time for New York to cash in. district, not Dumbo. The law was changed to [email protected] or 212-210-0257. should be legal. Sounds like an excellent Fulton Ferry encompasses limit funds in uncompetitive www.crainsnewyork.com/events No. Making pot legal would risk hugely idea. Unfortunately, the city both sides of Old Fulton races, saving the city $135,000 TO CONTACT THE NEWSROOM: expanding its use, a step that could lead to continues to fritter away the Street, from Front Street to the in 2007 and as much as 711 Third Ave., New York, NY 10017-4036 everything from more traffic accidents to a rise value of some assets. A recent East River.The restaurants in $600,000 in 2009. If “sure editorial phone: 212.210.0277 in addiction to more-serious drugs. audit by city Comptroller John the article, Grimaldi’s Pizzeria winners” are still receiving too fax 212.210.0799 Liu found the city’s ground- and the Brooklyn Ice Cream much, it’s a reason to reduce or Entire contents ©copyright 2013 Crain Communications Inc. Date of poll: Aug. 19 All rights reserved. ®CityBusiness is a registered trademark lease arrangement with the Factory, as well as others such eliminate their grants, not to of MCP Inc., used under license agreement. 351 votes Marriott Marquis allows the as Juliana’s, Gran Electrica, end public financing. hotel to buy the land for just Ignazio’s and The River Café, Our public financing CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS 17% $20 million in 2017—a 10th of are all situated within Fulton program encourages candidates chairman Keith E. Crain No president Rance Crain what it’s worth. Ferry. to rely on small donors, treasurer Mary Kay Crain If the city is to realize the Our history and boundaries breaking their dependency on a Cindi Crain full potential of its real estate, it deserve to be respected. few big donors. In this way, executive vp, operations William Morrow needs to renegotiate the terms —lucy wilner officials can put constituents’ executive vp, director of strategic of the Marriott Marquis lease. alanna gombert needs first. operations Chris Crain 83% The land would bring the city The writers are a board member —david earley senior vp, group publisher Gloria Scoby Yes much-needed revenue, but only and president, respectively, of the Counsel, Democracy Program, vp/production, manufacturing David Kamis if it is sold at a fair price. Fulton Ferry Landing Brennan Center for Justice at chief information officer Paul Dalpiaz —j. michael greeley Association. NYU School of Law founder G.D. Crain Jr. (1885-1973) chairman Mrs. G.D. Crain Jr. (1911-1996) secretary Merrilee Crain (1942-2012) 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 | August 26, 2013 20130826-NEWS--0011-NAT-CCI-CN_-- 8/22/2013 7:12 PM Page 1

TRACK RECORD FOR NYC Mayoral poll fault MAYORAL POLLS POLL ACTUAL YEAR MARGIN MARGIN DIFFERENCE coverage of the 2013 mayoral race appears more 2005 Q 38 19.6 18.4 poll-driven than ever.But is there any reason to be- 2005 M 34 19.6 14.4 lieve the polls are accurate? 2005 NYT 27 19.6 7.4 The answer is no. 2009 Q 12 4.4 7.6 NEW DATA CENTER OPENS Let’s start with the media’s obsession with polls. 2009 M 15 4.4 10.6 For the first three weeks of August, the Nexis database shows IN LOWER MANHATTAN C Q stands for Quinnipiac 149 mentions of the three major polls covering city politics.For M stands for Marist NYT stands for The New York Times the same period in 2005, when there was also a competitive Source: Crain’s research o help New York City firms keep their Clients have access to conference rooms data secure and accessible in an emer- and staging space, with dedicated race for the Democratic primary, ent take only the week before, and T gency, Time Warner Cable Business internet and Ethernet access from Time only 24 mentions turn up. That’s a Bloomberg campaign aides have al- big difference. ways said their internal polls showed Class, a premier provider of business com- Warner Cable Business Class. An on-site This would be fine if the polls a much closer race for the entire fall. munications solutions, recently opened its tech team provides “remote hands” around had any credibility. But they don’t. Of course, as Mr. Silver points energy-efficient data center at 395 Hudson the clock to those who can’t come to the Let’s take the framework for out, polls can become self-fulfilling Street in the heart of Lower Manhattan. premises but need someone to work with evaluating political polling from prophecies, which is what could be The pristine, 17,000-square-foot coloca- their equipment. Nate Silver’s book The Signal and the at work with the sudden surge of Bill tion facility offers companies of all sizes For companies looking to make their IT sys- Noise. (If you haven’t read it, you de Blasio in the race for the Demo- the ability to rent premium storage space tems redundant, the center offers an ideal should. It should be required read- cratic nomination. for their servers and other IT assets at solution. Built on a seven-foot concrete ing for political reporters—and fi- By the way, Mr. Silver’s tech- competitive prices in a building offering slab floor at a location 59 feet above sea nancial reporters, too!) nique of rating polls by their accura- high-level security. level and equipped with two powerful back- The smaller the potential num- cy and then averaging them doesn’t ber of voters, the more volatile the GREG DAVID work here. He’s written only twice “Information technology is the lifeblood of up generators, the facility did not suffer polls are: Presidential-race polls are on the New York City race, and nei- any business, and protecting these assets flooding or power outages during Hurricane the most accurate, Senate-race polls ther commentary provides much in a secure data center is a high priority in Sandy. For more information about intro- less accurate, and House-race polls the November mayoral vote, when guidance. today’s business world,” said Ken Fitzpat- ductory rates, call 1-855-832-0623 or visit not accurate at all. Primary polls are they should be the most precise. The Thompson campaign is rick, Chief Operations and Transformation BUSINESS.TWC.COM/COLOCATION. notoriously suspect, but polls be- (The Times didn’t do a poll in 2009, much aggrieved about the polls— Officer, Time Warner Cable Business Class. come more accurate as the general when Mayor Michael Bloomberg specifically, his poor showing in election approaches. defeated Bill Thompson.) The chart them, especially among African- Except in New York City. shows the last poll before the vote. Americans. But the fundamental BUSINESS.TWC.COM/COLOCATION As the chart accompanying this The only exception was in 2001, point made by the Thompson cam- column shows, the Quinnipiac, when Quinnipiac correctly said the paign—that the polls aren’t to be Marist and The New York Times race between Mr. Bloomberg and trusted and the reporters are doing a polls have a horrendous record of Mark Green was a dead heat. Even disservice by giving them so much forecasting the margin of victory of then, Quinnipiac had a very differ- credibility—is absolutely right.

documents related to sexual claims. The chief counsel for the Assembly Time for Silver to go Democrats was simply fired, with Mr.Silver’s staff claiming the speak- first heard about the Bear Mountain rule when I was in er knew nothing at all until very re- cently. Then he allegedly referred city government in the 1980s. The rule stipulates that the matter to the Assembly Ethics nothing of a personal nature that happens north of Bear Committee, whose chairman, Mountain (i.e., in Albany) shall be spoken about south Charles Lavine, had featured the of the mountain. It works in reverse, too. Upstate legis- speaker as an honored guest at his recent fundraiser. Earlier, Mr. La- Ilators who dally in New York City are supposed to be shielded vine’s committee had cleared Mr. by their colleagues.When Ed Koch gave holiday receptions for Silver of any wrongdoing in the Vito state legislators, a few from upstate felt free to bring their office Lopez harassment case. The speaker’s handling of the “wives.” There are many secrets in sordid Lopez matter is shocking. Albany,a place that’s often cold and First, he buried the claims of two without a lot to do except kill time women and quietly paid them in bars. Things happen between $103,000 in taxpayer funds to settle consenting adults. Life goes on. without referring their cases to the The problem arises when the Ethics Committee. Later, Mr. adults are not consenting and the Lopez, age 72, was found to have fellows close ranks. Of course, we’re sexually harassed two more women. talking about men—legislators and This time, the Ethics Committee their aides—harassing and alleged- reviewed the cases and said it would ly raping women.I have never heard consider recommending expulsion. Over $250,000,000 in premiums saved since 1992 of a female legislator who has sexu- Mr. Lopez resigned, but is current- ally harassed her male staff mem- ly running for the City Council. bers. It’s a boys’ club thing. It’s re- ALAIR TOWNSEND Now, both Mr. Lopez and Mr. Discover how...Read Adam Friedlander’s #1 Best Seller on Amazon in category: pulsive, but it has been difficult to Silver are being sued by the first two get tough leadership action against women.Mr.Silver’s legal bills are be- it. By leadership, I mean Assembly to the speaker in 2009. Their ing paid by you and me as taxpayers. Speaker Sheldon Silver. charges were accompanied by copies We also paid $500,000 to settle a His latest scandal involves As- of emails from Mr.Kellner that were lawsuit regarding two rape charges semblyman Micah Kellner, a Dem- sexual in nature. against Mr. Silver’s former chief ocrat from Manhattan, who is run- Nothing was done.There was no counsel,J.Michael Boxley.Mr.Box- ning for the City Council. Mr. follow-up, no referral of the matter ley’s punishment was six years of Kellner’s chief of staff brought alle- to the Assembly Ethics Committee. probation. Adam Friedlander, 800-394-7004, ext. 206 ‡ [email protected] gations of sexual harassment involv- More troubling, it was not disclosed The speaker’s office badly needs www.friedlandergroup.com www.howtosavebigonworkerscomp.com ing Mr. Kellner and a female junior to the Joint Commission on Public a cleansing. It’s time for Sheldon ‡ *Underwritten by the NYS Insurance Fund, 199 Church St., NY, NY 10007 staffer to the attention of top aides Ethics after it issued a subpoena for Silver to step aside.

August 26, 2013 | Crain’s New York Business | 11 20130826-NEWS--0012-NAT-CCI-CN_-- 8/22/2013 5:52 PM Page 1

OPINION

STANLEY S. LITOW a steeper decline and making mon Core, which was enthusiastical- academic standards to reverse comparisons with prior results ly supported by business and union America’s educational decline. In Schools must stick impossible. leaders—especially in New York. the late 1990s and early 2000s,IBM Similar outcomes are expected in For the state to remain economi- worked with governors to organize every state that tests to these higher cally competitive, we must work to- three National Education Summits. by new standards standards. Kentucky’s scores fell dra- gether to ensure our students meet Governors from every state—along matically, but educators, legislators these higher standards.That will en- with educators, CEOs and two U.S. ew York’s disappointing showing on the first Com- and parents understood why and con- able them to prosper in the 21st- presidents—put individual interests tinued to support Common Core. In century economy—one that will aside to reach consensus on the need mon Core Standards test for reading and math New York, we must do the same. create nearly 14 million “middle- for better academic standards, ac- touched off a call for retreat from the new standards. The new, higher standards were skill”jobs in the U.S.over the next 10 countability and instruction. Before That would be a huge mistake. written to help students get the aca- years. Otherwise, New York’s young that, only 14 states had standards, NSupporters knew that the elevated standards would result in demic training and workplace skills to people face an uncertain future as and they were too low. be college- and career-ready.To date, our global competitiveness erodes. The result was a bipartisan effort a tougher test and a drop in scores,as happens with any new test. 45 states and the District of Colum- My company, IBM, has always to develop Common Core—uni- But this test was both new and significantly harder, prompting bia have voluntarily adopted Com- championed the need for tougher form, high English and math stan- dards for grades K-12 providing a clear understanding of what students should master. Education leaders in New York came out early in support. When developed, these standards weren’t arbitrary but were based on a significant body of evidence, includ- ing international tests in which Is your company Only 21% of American 15-year-olds ranked 13th in science and 17th in math among prepared for the companies are their peers from industrialized na- tions. Clearly, we have to do better. Here in New York, IBM worked changing health extremely or with the city Department of Educa- tion, the City University of New York and the New York City Col- care landscape? very prepared to lege of Technology (CityTech) to create the Pathways in Technology Early College High School address changes (P-TECH)—the first grades-nine- to-14 school in the city. coming to our Though only in its third year, P-TECH’s results have been so en- couraging that the mayor of Chicago health care opened several P-TECH-model schools last fall. Mayor Michael * Bloomberg is committed to opening system in 2014. more in New York City,and Gov.An- drew Cuomo is the nation’s first gov- ernor to embrace this innovation as part of a statewide strategy to connect education to employment. Business leaders have endorsed P-TECH’s ap- proach to linking school to 21st- century careers,and President Barack Obama singled out P-TECH in his 2013 State of the Union address,call- ing for all of America’s students to have access to the same opportunities. Though most of P-TECH’s stu- dents come from disadvantaged backgrounds and enter the school with varying levels of academic achievement,they are mastering the program’s rigorous curriculum with the help of dedicated teachers, staff and volunteer mentors from IBM. Here is the lesson we are learning from P-TECH: Make education challenging and exciting, raise stan- dards and improve teaching,and our How will you be prepared? students can and will do better. If low scores prompt us to dumb Get our Employer’s Guide: down standards and expect less from afl ac.com/HCRGuide students and teachers, we will have made a grave error. Well-designed tests give us information to improve teaching and learning. The current test isn’t perfect. No test is. And the preparation for both teachers and students must also improve.But this is a strong initial effort that will only get better over time. It deserves our support.

Stanley S. Litow, IBM’s vice president of corporate citizenship and corporate affairs, Z130498b *Source: 2013 Afl ac WorkForces Report 6/13 and president of the IBM International Foundation, is a former deputy chancellor of the New York City school system.

12 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0013-NAT-CCI-CN_-- 8/23/2013 2:48 PM Page 1

Statsand the Our annual look at the City latest numbers driving New York and its economy

GOVERNMENT P . 14

ECONOMY P . 16

PERSONAL INCOME P . 20

REAL ESTATE P . 22

FINANCIAL SERVICES P . 24

HEALTH CARE P . 26

TECHNOLOGY P . 28

TRANSPORTATION P . 30

TOURISM P . 31

EDUCATION P . 32

VIEW INTERACTIVE CHARTS AT CRAINSNEWYORK.COM/STATS WATCH A VIDEO ON NY’S INCOME CONUNDRUM AT CRAINSNEWYORK.COM/VIDEO

August 26, 2013 | Crain’s New York Business | 13 20130826-NEWS--0014-NAT-CCI-CN_-- 8/22/2013 7:04 PM Page 1

2013 STATS AND THE CITY

City tax revenue The annual haul since 2003 is up 83.4%, to $43.8 billion. Business taxes made Who’s counting up a disproportionate share of the increase, while sales taxes’ share declined. FY 2013 (in billions)* Change, 2003-2013 or the dozen years of Mayor Michael Bloomberg’s tenure, city government has been data-driven like never before. Real property $18.64 +85.3% Seemingly every policy is associated with a statistical Personal income F $9.22 +81.7% metric—and often an array of them—to measure its effectiveness. Sales and use That’s not to say that past administrations operated by the seat of $6.80 +58.0% their pants; for his final Mayor’s Management Report, in 2001, Business $5.96 +131.1% Rudy Giuliani churned out three volumes totaling a tree-killing Other taxes 1,162 pages, capped by a 306-page treatise on how he had “re- $3.21 +71.5% engineered” the government. Mr. Bloomberg’s first such effort was *As reported in the November 2012 Financial Plan. Source: Citizens Budget Commission a mere 471 pages, and his latest one was 520, though his staff tallies a dizzying number of numbers beyond that City Charter-mandated report. The administration’s collective effort, dubbed NYCStat, is a cornucopia of graphs, pie charts -11.6% -4.7% and eclectic data (for example, 0.4% of Decline in full-time- Decline in full-time- sidewalks are “filthy”; pothole work orders are equivalent state equivalent city up 43% this year) that the public can use to government employees, government employees, judge Mr. Bloomberg or his successor. to 148,702, to 267,423, Assuming, of course, that his successor keeps on newscom since fiscal 2008 since fiscal 2008 counting. —erik engquist Source: NYS comptroller Source: NYC Office of Management and Budget

1 Cost of city government Department of Education Public safety Fringe benefits Medicaid Pensions $19.19 $20 The city budget grew 59% over a decade. Inflation accounts for only about half the increase. The 51% boost in education spending was intentional; the fivefold increase in pension- fund contributions was not. Figures shown are in billions. PENSIONS, +367% The spike, in part to offset weak $15 MEDICAID, +89% pension-fund Costs increased returns, came as FRINGE BENEFITS, as the number of city-employee head $12.67 +81% For every $1 enrollees jumped count grew 12%. the city pays EDUCATION, +51% 26%, to 3.15 workers, it pays million. PUBLIC SAFETY, Enrollment fell 4% another 71 cents +40% The budget over the decade, in benefits. 10 increase has been but city spending $8.44 overshadowed by a per pupil jumped $8.19 drop in crime—down 62%. State aid per 24% from 2003 pupil also rose. to 2012.

$5.51 5 $4.66 $7.71 $3.37 $6.39

$1.75

0 2003 2005 2007 2009 2011 20132

Total $44.34B $52.79B $58.71B $60.17B $65.31B $70.37B

GOVERNMENT budget 1-Includes offset for FMAP Medicaid payments in fiscal years 2009-2013. 2-Forecast. Sources: Citizens Budget Commission, NYC Office of the Comptroller, NYC Office of Management and Budget

Retroactive raises Contracts for nearly all of the city’s unionized employees expired several years ago. Unions are looking for retroactive raises from the next mayor. The Independent Budget Office estimates that such raises would cost the city $4.5 billion, largely for the five unions shown here. No. of Assumed Cost Union Members Contract expired members* annual raises (in millions) United Federation of Teachers Teachers, other school workers Oct. 31, 2009 118,990 4% for two years, 2% after $2,823 AFSCME, District Council 37 Public employees March 2, 2010 78,154 2% $378 Council of Supervisors and Administrators Principals and administrators March 5, 2010 6,119 4% for two years, 2% after $224 Patrolmen’s Benevolent Association Police officers July 31, 2010 23,174 2% $205 Uniformed Firefighters Association Firefighters, fire marshals July 31, 2010 7,874 2% $79 Assumes retroactive increase through June 30, 2013. *Working under the expired contract as of March 2013. Source: Independent Budget Office

PARTISAN PEAKS: 86% OF ROCHDALE/SOUTH JAMAICA, QUEENS, VOTERS ARE DEMOCRATS. 44% OF TOTTENVILLE, STATEN ISLAND, VOTERS ARE REPUBLICANS.

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2013 STATS AND THE CITY

NYC median household income Median household income in New York increased in 2011 for the first Slow growth is time since 2008, but is still almost $2,000 shy of its 2008 peak. Change from previous worry to some Ⅲ Median household income year

t roughly $600 billion, the city’s economy is bigger than 2005 $43,434 n/a that of all but about 20 countries. Its post-recession output 2006 $46,780 +7.0% A of goods and services, meanwhile, has increased about 3% annually, outpacing nationwide GDP growth. But where it’s 2007 $48,631 +4.6% heading relative to the economies of other U.S. cities is a concern to some experts. Productivity—output per worker—has improved 2008 $51,116 +5.1% faster in Silicon Valley and Los Angeles than here in the past decade, a sign that the city will see slower growth than its peers 2009 $50,033 -2.1% across the country, according to the Partnership for New York City. Silicon Valley, the city’s biggest rival in the race for tech talent and 2010 $48,743 -2.6% capital, has seen productivity climb by 2.7% annually, versus Gotham’s 1.1%, during Mayor Michael Bloomberg’s tenure. 2011 $49,461 +1.5% —kenneth christensen Source: U.S. Census Bureau

Number of jobs by industry, in thousands Powered by rising tourism, the city’s leisure-and-hospitality industry has seen the greatest growth over the past 10 years, with its 41.5% increase in the number of jobs, more than replacing the 52,000 manufacturing jobs lost during that time. But the sector whose growth most defied the recession was education and health services.

800 200 Educational and health services Professional and business services Media/telecom Construction 173 Government 806 Other services Manufacturing Financial activities Wholesale trade Transportation/warehouse/utilities Leisure and hospitality

636 175

600 150 143

122 543

400 437 100 118 ECONOMY

368 75

200 50 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13* ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13* *Through June. Source: Eastern Consolidated

Annual pay by industry, 2012 Where the wages are Securities/commodity contracts wages climbed nearly 60% between The financial sector dominates NYC’s 2003 and 2012, and are now more than 12 times higher than the pay economy, with its total wages surpassing 3.4M in accommodation and food services. those of the second- and third-largest industries combined. Number of NYC private- Avg. wage 2012* Change 2003-2012 sector jobs in June 2013, Securities/commodity contracts $360,670 59.2% Wages by industry in NYC, 2012 (in billions)* Government Health care/social services up 2.3% from a Finance/insurance $266,617 59.6% $31.2 $28.5 year earlier Utilities $115,237 42.7% Information Source: NY State Department of Labor Professional/ 10.3% 9.4% $18.7 Wholesale trade $88,262 38.2% technical services 6.2% Construction $71,692 24.5% $39.0 12.9% Government $58,676 19.3% Educational services $55,880 42.8% -6.5% Manufacturing $51,933 21.6% 33.5% Decline in the average Transportation/warehousing $49,971 18.0% 27.7% NYC wage, adjusted Accommodation/food services $29,732 23.1% Finance for inflation, from and insurance Other All industries $80,468 33.3% $83.5 $100.9 2007 to 2012 *Preliminary. Source: NYS Department of Labor *Preliminary data. Source: NY State Department of Labor Source: Independent Budget Office

58: BILLIONAIRES LIVING IN NYC $1.23T: REVENUE IN 2011 FOR THE 45 FORTUNE 500 COMPANIES HEADQUARTERED IN NYC $583B: NYC’S GDP IN 2011

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CN016044.indd 1 8/13/13 3:22 PM 20130826-NEWS--0018,0019-NAT-CCI-CN_-- 8/22/2013 6:48 PM Page 1

2013 STATS AND THE CITY

The jobless make some progress Bounceback city New York City’s unemployment rate ticked downward in 2013, but remained higher than New York has suffered three recessions since 1990, but each resulted in fewer the national average. job losses, and a faster recovery, than the previous one. From 2008 to 2009, the number of private jobs in the city dropped 3.7%. During the less famous Annual average unemployment rate, 2003-2013 downturn between 1990 and 1992, the city lost 9.2% of its private jobs. 10% NYC 8.3% NYC total private employment (in millions) in the month of June NY state U.S. 8 1990 2,986.8 1991 2,805.9 7.6% 1992 2,713.0 6 1993 2,714.9 7.4% 1994 2,757.9 1995 2,791.3 4 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* 1996 2,837.4 *Monthly rate for May 2013. Sources: U.S. Bureau of Labor Statistics, NY State Department of Labor 1997 2,896.0 1998 2,972.9 1999 3,054.5 2000 3,168.4 Borough breakdown: Bronx tale of woe 2001 3,172.2 2002 3,035.9 The unemployment rate fell in each of the five boroughs this year. In the Bronx, home to 2003 2,983.3 the nation’s poorest congressional district, the figure remained in double digits. 2004 3,008.4 Monthly borough unemployment (June) 2005 3,057.6 Bronx Brooklyn Manhattan Queens Staten Island 2006 3,129.7 2007 3,203.4 2009 11.9% 10.0% 8.7% 8.6% 8.3% 2008 3,251.8 2010 12.5% 10.2% 8.0% 8.6% 8.6% 2009 3,130.6 2011 12.2% 9.7% 7.5% 8.1% 8.2% 2010 3,159.8 2011 3,254.4 2012 13.0% 10.2% 8.1% 8.6% 8.7% 2012 3,349.6 2013 11.8% 9.4% 7.4% 7.8% 7.7% 2013 3,428.0 Source: NY State Department of Labor Source: NY State Department of Labor ECONOMY

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18 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0018,0019-NAT-CCI-CN_-- 8/22/2013 6:48 PM Page 2

Employment in private sector by borough Though most of the city’s private-sector jobs have remained in Manhattan, the other boroughs are gaining. NYC total private employment +3.1% Compound annual growth rate of real GDP, 2009-2011. 2,000,000 Peer cities, including Manhattan Brooklyn Queens Bronx Staten Island Shanghai and London, have grown 4.3% during MANHATTAN 1,947,319 Its share of private- the same period sector jobs hit an BROOKLYN The all-time low in 2010 borough added more 1,500,000 at 60.3%. It has than a quarter of the city’s jobs in the past STATEN ISLAND ticked up slightly The number of jobs since. decade, fueled by BRONX 61% of health care, retail the 23,915 increased nearly and tech companies. private-sector jobs fourfold in the past Total job gains 1962-2012 2002-2012 added in the past 60 years, double the pace of the Manhattan +3% +9% decade were in +1.1% health care or borough’s 1,000,000 Brooklyn +5% +19% social assistance. population growth. Compound annual growth QUEENS There are Queens +42% +11% currently 46,000 rate of productivity, people employed at 486,159 2002-2011. Silicon Valley’s Bronx +25% +12% the borough’s two was 2.7% Staten Island +269% +7% airports, up 24% from 1962. 484,639 Source: Center for an Urban Future 500,000

212,249 86,325 -2.3% Compound annual change 0 1962 1972 1982 1992 2002 2012 in middle-class jobs Source: Partnership for New York City

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August 26, 2013 | Crain’s New York Business | 19 20130826-NEWS--0020-NAT-CCI-CN_-- 8/22/2013 5:49 PM Page 1

2013 STATS AND THE CITY

A richer and poorer city Compared with the nation as a whole, New York has a greater portion of Jobs up, wages flat wealthy people and poor people and a smaller middle class. Percentage of filers by income* ew York City’s job gains have been robust relative to the nation’s, but its wage growth is on par—that is, not great. While inflation-adjusted wages are higher than in 40 Under $20K $20K to 50K $50K to 200K $200K+ N 36.6% 2000, average annual pay is down 6.5% since 2007, according to 34.5% the Independent Budget Office. An obvious cause is the high- 31.3% 31.3% 31.2% paying financial sector’s haircut, which has dragged down the 28.2% citywide average: Wages on Wall Street are 20% lower than in 2007, when the real-estate bubble was just beginning to deflate. But another factor is job growth in low-paying industries, where workers today enjoy little more buying power than at the 20 turn of the millennium. The number of retail jobs, which paid an average of $31,729 last year, up from $30,924 in 2000, has climbed 14% during the recovery, outpacing overall growth. Food-services jobs have increased 24%, led by gains in 3.9% Brooklyn. Health care, another field where jobs with modest 3.0% pay have multiplied, had an average wage of $41,767 last year, 0 up from $39,002 a dozen years earlier. NYC U.S. —kenneth christensen * Federal adjusted gross income, 2010. Source: NYC comptroller What New Yorkers make New York is famous for its diversity, both ethnic and economic. One could envision Laurence Fink, whose $20.2 million pay package made him the best-compensated person on Wall Street last year, picking up some frozen yogurt from the food truck of Dinar Vafin ($50,000). A sampling of incomes from across the city:

Leslie Moonves Laurence Fink, Ruth Porat Lee Bollinger Adam Weinberg President and CEO CEO Chief financial officer President Executive director CBS Corp. BlackRock Morgan Stanley Columbia University Whitney Museum 2012 total compensation: 2012 total compensation: 2012 total compensation: 2011 salary: of American Art $62,157,026 $20,231,401 $8,093,705 $1,932,931 2011 salary: $705,702

Richard Buery Jr. Richard Boris Thomas Recktenwald Roger Obando Chantelle Campbell President and CEO Professor Stage manager Chief technology officer Journey-level carpenter The Children’s Aid Society York College (CUNY) Kinky Boots and co-founder New York City District 2011 compensation: 2012 salary: 2012 income: Kamino Labs Council of Carpenters $384,222 $120,000 $115,000 2012 income: 2012 income: $94,850 $66,000

Annaliese Griffin, Dinar Vafin Carolina Portillo Kareem Starks Ahmad Kandeel Partner, editor in chief Owner Waitress 2012 income: security guard, Employee Brooklyn Based Yogo frozen yogurt truck FOUR restaurant, Yotel Bronx men’s shelter, 30 Hadoota Halal Food cart 2012 income: $36,000 from (Third Avenue and 2012 income: hours/week, $12,000; 2012 income: Brooklyn Based, $14,000 East 43rd Street) $29,165 food handler, McDonald’s, $12,500 from freelance writing 2012 income: $50,000 28 hours/week, $9,120

PERSONAL INCOME Compiled by Irina Ivanova and Emily Laermer

60%: PORTION OF NYC HOUSEHOLDS THAT EARNED LESS THAN $40K IN 2010. ONLY 1% EARNED MORE THAN $500K. bloomberg newsbloomberg

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CN016027.indd 1 8/1/13 4:36 PM 20130826-NEWS--0022,0023-NAT-CCI-CN_-- 8/22/2013 6:50 PM Page 1

2013 STATS AND THE CITY

Office rents up again Downtown tax Asking rents increased for the third consecutive year across the city, with midtown south topping its 2008 peak thanks to the boom in tech and media companies. Total office asking rents per square foot, second quarter breaks live on 90 2003 2004 2005 2006 2007 2008 2009 2010 $68.20 2011Midtown 2012 2013Midtown south hen Droga5 agreed to rent 92,000 Downtown Brooklyn square feet in lower Manhattan in July, the company got space in a building Midtown60 $46.56 $47.12 $47.87 $50.35 $69.08 $83.96 $66.82 $61.66 W $63.35 $66.44 $68.20 $59.46 whose aesthetic echoed the agency’s longtime Midtown south $31.09 $30.56 $32.27 $35.78 $42.31 $53.22 $49.55 $43.71 home in midtown south, but at a big discount. $44.63 $49.43 $59.46 The hot advertising firm received $800,000 Downtown $36.36 $32.25 $31.20 $35.18 $44.48 $50.74 $43.81 $37.81 $45.95 $39.38 $40.0630 $45.94 from the state’s World Trade Center Job Brooklyn $20.46 $23.03 $24.29 $24.95 $27.03 $28.49 $29.59 $27.38 $28.02 Creation and Retention Program to be $27.82 $28.64 $28.64 disbursed over its 15-year lease in return for adding 154 jobs by the end of 2017. Droga5, 0 which took five floors at 120 Wall St., is also 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 likely to be eligible for as much as $2.50 off its Sources: Cushman & Wakefield, CoStar Group rent, a benefit that could be worth $225,000 annually as part of a real estate tax-reduction program available downtown. Hot ’hoods Numerous tenants have cashed in on down- The vacancy rate in midtown south is half of what it was a decade ago, while asking rents there town’s cheaper rents and trove of government have nearly doubled. incentives.The Independent Budget Office found Total office vacancy rates, second quarter tax breaks will likely cost the city $224.9 million

through 2015. And $252 million in JCRP funds, 15 the benefit given to Droga5, have been awarded, Midtown Midtown south 11.6% with another $43 million to come. Such incentives Downtown Brooklyn are part of every downtown leasing conversation. 10.8% The benefits, created to rehabilitate lower 10 Manhattan’s commercial office market after 9/11, have raised eyebrows as the neighborhood has become more popular. Five companies, including online card outfit Paperless Post, got $250,000 5 7.2% federal grants to relocate downtown. And GroupM, which is negotiating a roughly 6.5% 500,000-square-foot lease to anchor 3 World 0 Trade Center, could get millions of dollars in 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 breaks. —daniel geiger Sources: Cushman & Wakefield, CoStar Group

The city’s REAL ESTATE future skyline In the next few years, New York’s skyline will boast 10 new towers. The 1,250- foot Empire State Building, currently the tallest completed skyscraper in the city, will rank third behind 1 World Trade Center and 432 Park Ave.

Building name 1 World Trade Center 432 Park Ave. One57 4 World Trade Center Hudson Yards S. Tower Height (in feet) 1,776 1,397 1,004 977 895 Floors 104 85 79 64 47 Use Office Residential Hotel/residential Office Office Expected completion 2014 2015 2014 2013 2015

OUTER-BOROUGH FORECLOSURES FELL 33.7% IN 2012. IN MANHATTAN, THEY ROSE 1.9%, TO 106. BROOKLYN RETAIL CONDO SALES JUMPED 729%, TO $1.22 BILLION, IN

22 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0022,0023-NAT-CCI-CN_-- 8/22/2013 6:50 PM Page 2

Building permits rising Becoming greener Retail rents surge The number of building permits issued citywide Greenhouse-gas emissions from buildings in Retail rents in Times Square—the city’s priciest retail corridor—have more than doubled in rose 16.5% from 2009 to 2012. Manhattan and the city have shrunk 14% in the past five years. four years. Median asking rents per square foot for ground-floor space, spring quarter: Brooklyn accounted for 93% of the increase and the Bronx for 6%. Ⅲ Emissions, in millions of metric tons 2009 2010 2011 2012 2013 of carbon-dioxide equivalent, 2011 89,343 Times Square $941 $1,400 $1,600 $1,400 $2,175 86,860 Residential buildings 1 80,662 19.7 Madison Avenue $979 $960 $919 $1,135 $1,286 76,695 Commercial buildings Fifth Avenue2 $615 $425 $515 $873 $1,127 11.2 SoHo $452 $563 $498 $600 $800 Institutional buildings West Village $528 $456 $488 $400 $602 4.4 Flatiron $285 $285 $275 $250 $400 Industrial buildings 3 4 4.2 Columbus Avenue $257 $243 $255 $300 $367 Sources: PlaNYC, Bloomberg administration 1-East 57th to East 72nd streets. 2-42nd to 49th streets. 3-West 66th to West 79th streets. 4-Fall 2012. Source: Real Estate Board of New York

Modest gains for residential sales in Manhattan

2009 2010 2011 2012 Purchase prices have been edging up but have not returned to their 2008 peaks. Average second-quarter sale prices, in millions, are shown. Source: NYC Department of Buildings

$5

Studio 2-BR Construction central 1-BR 3-BR Manhattan’s share of construction permits in 4 $3,203,971 2012 topped 50% for the second straight year. Permits/Share of city’s total Bronx Staten Island 6,862 2,994 Queens 3 15,327 7.7% 3.4% $1,596,868 17.2% 2

Manhattan $790,955 45,722 1 20.6% 51.2%

Brooklyn $450,681 18,438 0 Percentages rounded to the nearest 10th. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: NYC Department of Buildings Source: Miller Samuel Inc. 45.2% Portion of the city’s landmarked buildings that are in Brooklyn Source: Real Estate Board of New York 70K Number of affordable-housing units that would fit on the city’s vacant, buildable public land Source: Association for Neighborhood and Housing Development Courtyard and Residence 56 Leonard St. Inn Manhattan Central Park Atelier II Baccarat Hotel 160 W. 62nd St. 821 753 656 610 598 57 68 61 46 54 76K Residential Hotel Residential Hotel/residential Residential NYC buildings reached by surge 2016 2013 2015 2015 2014 waters during Superstorm Sandy Source: Council on Tall Buildings and Urban Habitat Source: Furman Center for Real Estate and Urban Policy

N, IN 2012 AS SELLERS ANTICIPATED A CAPITAL-GAINS TAX HIKE. THE MEDIAN APARTMENT SALE PRICE ON ROOSEVELT ISLAND ROSE 91%, THE MOST IN NYC.

August 26, 2013 | Crain’s New York Business | 23 20130826-NEWS--0024-NAT-CCI-CN_-- 8/22/2013 7:01 PM Page 1

2013 STATS AND THE CITY

Wall Street profits Profits for dealer/broker operations in New York tripled Taking stock of prices from a year before, exceeding pre-recession levels. Total revenue (in millions) he next time someone says stocks remain cheap and worth buying, Aggregate pretax profit/loss $194,790 even in the face of the market soaring to record highs recently, ask 2001 $10,405 $148,676 this question: What is the Shiller P/E these days? 2002 $6,950 T $144,515 The Shiller price-to-earnings index is commonly used by investment 2003 $16,748 pros to help determine how expensive stocks are. It differs from the $160,249 2004 $13,718 conventional P/E ratio used on Wall Street because it takes into account $229,820 2005 $9,447 how corporate earnings fare during boom times and busts. Specifically, it $331,340 looks at stock prices relative to inflation-adjusted earnings over the past 10 2006 $20,897 $352,048 years. When the Shiller P/E is low, like 10 or 12, it’s 2007 -$11,303 $178,068 a good time to buy, and when it’s high—like when it 2008 -$42,588 $188,072 hit 45 in early 2000—it’s a good time to head for 2009 $61,434 $158,819 the hills. 2010 $27,623 Nowadays, the indicator is flashing red, with a $146,055 2011 $7,652 reading of 24.The median ratio, going back to the 2012 $161,456 1880s, is 16. Buyer, beware. $23,878 Data are for New York Stock Exchange member firms that conduct business with the buck ennis —aaron elstein public; designated market makers are excluded. Source: NYSE Euronext

Cloudy outlook Falling wages on the Street After a jump in 2011, the number of jobs in the financial industry Despite an overall rise since 2001, salaries on Wall Street have dipped since their 2007 peak. remained flat in 2012, signaling that the nearly 40,000 jobs lost during the economic downturn won’t come back anytime soon. Average real wages in NYC (in 2005 dollars) Finance and insurance Securities and commodity contracts Number of financial services jobs (in thousands) Securities Banking Other Total $201,239 2001 $274,711 347.0 350 343.3 $180,063 2002 321.7 320.7 $246,728 316.0 311.3 $177,469 300 2003 $240,698 $201,805 2004 $277,599 250 $208,907 2005 $290,646 $236,533 200 2006 $329,928 $267,205 2007 $374,868 150 $255,196 2008 $356,030 100 $208,705 2009 $280,995 $232,856 2010 $322,254 50 $236,814 2011 $320,255 $231,584 0 2012 2007 2008 2009 2010 2011 2012 $313,278 Source: NY State Department of Labor Source: NYC Independent Budget Office

Industry giants

Measured by revenue or assets, JPMorgan Chase and Citigroup far outpace their peers. However, the gap between the top two $20B continues to widen. Est. Wall Street Revenue (in billions) Assets (in billions) Profits (in billions) bonuses in 2012, averaging $122K Company 2010 2010 2012 2010 2011 2012 2010 2011 2012 JPMorgan Chase $102.69 $97.23 $97.03 $2,117.61 $2,265.79 $2,359.14 $17.37 $18.98 $21.28 Citigroup $86.76 $78.66 $70.39 $1,913.90 $1,873.88 $1,864.66 $10.60 $11.07 $7.54 Goldman Sachs Group $39.16 $28.81 $34.16 $911.33 $923.23 $938.56 $8.35 $4.44 $7.48 American Express $28.43 $30.52 $31.58 $146.69 $153.34 $153.14 $4.06 $4.94 $4.48 $33B Morgan Stanley $31.23 $32.24 $26.11 $807.70 $749.90 $780.96 $4.70 $4.11 $0.07 Bonuses in Bank of NY Mellon $13.88 $14.73 $14.56 $247.26 $325.27 $358.99 $2.52 $2.52 $2.44 2007, the final BlackRock $8.64 $8.97 $9.28 $178.46 $179.90 $200.45 $2.06 $2.34 $2.46 year of the NYSE Euronext $4.37 $4.43 $3.64 $13.38 $13.11 $12.56 $0.58 $0.62 $0.35 financial bubble Nasdaq OMX Group $3.10 $3.32 $3.02 $16.21 $14.09 $9.13 $0.40 $0.39 $0.35 Source: NY state comptroller Sources: SNL Financial, Bloomberg FINANCIAL SERVICES

21,700: PROJECTED NET FINANCE AND INSURANCE JOB CREATION BETWEEN 2011 AND 2020. $211,300: AVERAGE STARTING SALARY FOR COLUMBIA M.B.A. GRADS.

24 | Crain’s New York Business | August 26, 2013

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2013 STATS AND THE CITY

Health snapshot of the Big Apple The local infant-mortality rate is down 23% from 2001 to 2011, Hospitals hurting and New Yorkers are less likely to smoke or be obese than their nationwide counterparts. ospital stays have become shorter and more procedures are NYC U.S. being done on an outpatient basis, leaving beds increasingly Smokers 14.8% 20.1% unfilled and putting hospitals under great financial pressure. Overweight/obese 57.5% 63.3% H 1 Thirteen New York City hospitals or divisions have closed since Diabetes 10.5% 9.5% 2005, after 11 did between 1996 and 2004, according to the Greater Asthma 11.9% 12.9% New York Hospital Association. If Brooklyn’s Long Island College Binge drinking2 17.9% 18.3% Hospital and Interfaith Medical Center are shut this year, the tally will be 26 closures in the city in 17 years and three this year alone. West- Exercise (in past month) 79.4% 73.8% chester Square Medical Center in the Bronx no longer has inpatient High cholesterol (at any time) 30.6% 38.4% services after it was bought by Montefiore Medical Center in March. Deaths, per thousand people 6.4 8.03 As of August, four local hospitals or health systems were Infant-mortality rate, per thousand live births 4.7 6.2 bankrupt—Interfaith, Westchester Square, Peninsula Hospital (closed Teen birthrate, per thousand women 15-19 26.0 34.2

in April 2012) and Sound Shore Health System in Westchester—and 1-Does not include pregnancy-related cases. 2-Defined as males having five-plus drinks on more are expected to close. Some health care experts argue that New one occasion, females having four-plus. 3-Preliminary. Sources: Kaiser Family Foundation, NYC Department of Health and Mental Hygiene, Centers York state still has 50% too many hospital beds. —barbara benson for Disease Control and Prevention

Insuring NYC Life expectancy The data show vast differences in how nonelderly (under 65) residents of the different boroughs get health insurance—or New York City residents born in 2010 don’t get it. Queens, the most middle-class borough, has the highest percentage of uninsured residents: are projected to live two years longer than other Americans. 80% Employer Direct purchase Medicaid Uninsured Other Ⅲ 2001* Ⅲ 2010* 70 80.9** 77.9 76.9 78.7** 60

50

40

30 New York City United States * Year of birth. ** Preliminary. 20 Sources: Bureau of Vital Statistics, NYC Department of Health and Mental Hygiene 10

0 Bronx Brooklyn Manhattan Queens Staten Island

30.5% of Bronx 41,300 babies were Manhattan residents 61.6% of Queens 26.4% residents born in Brooklyn in account for 32.9% of residents have high of Staten are obese 2011, more than in all people in New York blood pressure Islanders 67% Manhattan and the City living with smoke of the 289,000 Bronx combined HIV/AIDS octogenarians in

Number of residents with sole insurance type. Sources: U.S. Census Bureau’s 2009-2011 American Community Survey, NYC Department of Mental Health’s New York City are women NYC Community Health Survey 2011, NY State Cancer Registry, NY State HIV/AIDS Surveillance Annual Report Source: U.S. Census Bureau

Premium increases in NY metro area, ’05 -’12 NYC Medicaid enrollment expands Family health insurance premiums have increased by more than 50% since After shrinking slightly in the first part of the decade, Medicaid enrollment HEALTH CARE HEALTH 2005. has grown 15.2% since 2008. % increase from previous Ⅲ Total Medicaid enrollees (in millions) Ⅲ Avg. total family premium year 3.2 2005 $11,819 5.1%

2006 $12,744 7.8%

2007 Not available

2008 $13,200 3.6%* 1.6

2009 $14,144 7.2%

2010 $14,963 5.8%

2011 $16,912 13.0%

2012 $17,867 5.6% 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 *% increase since 2006. Source: Agency for Healthcare Research and Quality Source: NY State Department of Health

84,500 JOBS HAVE BEEN CREATED IN HEALTH CARE SINCE 2003. 11% OF PROPERTIES INSPECTED BY THE CITY IN 2012 HAD ACTIVE SIGNS OF RATS.

26 | Crain’s New York Business | August 26, 2013

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2013 STATS AND THE CITY

NYC tech’s weak spot NYC research institutions trail their peers in converting research into One hot summer startups. Cornell NYC’s tech campus on Roosevelt Island is expected to be a major vehicle for commercialization. he ’60s had the Summer of Love, but 2013 may someday Ⅲ Patents per million inhabitants Ⅲ Total patents*

be known for a Summer of Disruption, when the digital 2,646 Silicon Valley Ttransition blew the gaskets off the old-media industries. 16,364 The New York Times Co. sold The Boston Globe for $70 1,175 Seattle million—a fraction of the $1.1 billion the Times Co. paid for it 4,052 20 years ago. Random House and Penguin became Penguin 1,417 Austin, Texas Random House, a merger aimed at battling e-tailing giant 2,449 Amazon—whose Kindle helped kill Barnes & Noble’s Nook 950 Boston tablet, and whose founder, Jeff Bezos, bought The Washington 4,330 Post for just $250 million. IBT Media, publisher of a barely 389 Los Angeles known business news site, bought what was left of Newsweek. 4,992 Time Warner Cable, trying to hold down fees for subscrib- 366 Houston ers—who are spending more and more time watching streaming 2,190 video from Netflix and Amazon—pulled the plug on CBS, 337 New York which pushed the cable operator for higher carriage fees.The 6,383 television network faces slowing advertising revenue growth as 310 Chicago eroding audiences skip commercials with their DVRs and ad 2,933 dollars shift to the Web. —matthew flamm *2010 figures Source: Partnership for New York City

Venturing into the Apple New York has become increasingly important as a tech center during the past decade, with the number of venture-capital deals more than doubling. The city is the third-largest recipient of such funding, behind Silicon Valley and Boston. % change, % change, Ⅲ Value of deals (in millions) 2003-2012 Ⅲ Number of deals 2003-2012

Silicon Valley, Calif. Silicon Valley, Calif. $11,068.3 +63.6% 1,189 +35.6% Boston metro area Boston metro area $2,970.1 +26.9% 393 +20.6% New York metro area New York metro area $2,365.5 +66.4% 402 +109.4% Los Angeles/Orange County Los Angeles/Orange County $2,069.8 +93.5% 268 +79.9% San Diego San Diego $1,146.3 +38.8% 105 -16.0% Seattle metro area Seattle metro area $850.5 +131.0% 110 +50.7% Washington, D.C. Washington, D.C. $735.5 -7.8% 162 -12.0% Austin, Texas, metro area Austin, Texas, metro area $625.6 +22.6% 86 +13.2% Chicago metro area Chicago metro area $549.0 +45.1% 72 +26.3% Philadelphia metro area Philadelphia metro area $413.0 -25.6% 124 +40.9% Source: PwC/NVCA MoneyTree Report

TECHNOLOGY Digital domains Top NYC tech deals Despite the hype surrounding Brooklyn as a tech hub, The past year has had its shares of ups and down for e-commerce 3% its 277 digital companies account for only a small site Fab.com. The firm had the top two deals in the region, portion of the city’s total. receiving more than $250M in venture capital, but also recently NYC’s share of the announced it would lay off 100 employees by the end of the year. Emerging and established digital companies by borough* nation’s high-tech Amount invested output Quarter Company (in millions) Stage Source: Partnership for New York City 2Q 2013 Fab.com Inc. $150.0 Expansion 3Q 2012 Fab.com Inc. $100.8 Expansion Brooklyn 12.4% 1Q 2013 AppNexus Inc. $75.0 Expansion Queens 3Q 2012 Quirky Inc. $68.0 Expansion 1.7% 4Q 2012 Street Response Laboratories $53.0 Expansion 5.3% Staten Compound annual Island 0.6% 4Q 2012 1stdibs.com Inc. $42.0 Later stage growth since 2002 Manhattan 84.9% Bronx 0.4% 1Q 2013 On Deck Capital Inc. $42.0 Later stage of NYC’s high-tech 4Q 2012 Aereo Inc. $38.0 Expansion GDP, to $27 billion Total 2,238 3Q 2012 JAND Inc. $36.8 Early stage in 2011 4Q 2012 Things Daemon Inc. $32.4 Early stage Source: Partnership for New York City *As of July 25, 2013.Source: NYC Mayor’s Office of Media and Entertainment Source: PwC/NVCA MoneyTree Report

67%: PORTION OF NYC INTERNET USERS WHO USE FACEBOOK $1.1B: VALUATION OF YAHOO’S ACQUISITION OF TUMBLR 98K: HIGH-TECH JOBS IN NYC

28 | Crain’s New York Business | August 26, 2013

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2013 STATS AND THE CITY

Bikes, trains, automobiles Pedal pushers How New Yorkers get to work 3.9 ew Yorkers are increasingly using pedal power to get around town. Biking is up 62% since 2007, Taxi Other 1.8% Bicycle MPH and that growth preceded the advent of bike 0.8% N Walking Speed of the city’s sharing this year. Over the six-year tenure of Department of Transportation Commissioner Janette Sadik-Kahn, the slowest buses, 4.0% the crosstown M66 city has added or enhanced more than 300 miles of bike 10.4% lanes, 8,000 bike racks and 6,000 Citi Bikes. Meanwhile, and M42 the City Council mandated bicycle access in office buildings with freight elevators if tenants request it. (It also answered gripes by forbidding electric bikes and tightening regulations on delivery 26.7% 3.0 cyclists, on the heels of an earlier ban on Public transit sidewalk biking.) The market has 56.3% responded: More than 70 new bike MPH buck ennis shops have opened during Ms. Sadik- Car or The average New Kahn’s six years, bringing the truck Yorker’s walking pace citywide total to more than 170. Sources: NYC Department of —laura lorenzetti Source: 2011 American Community Survey Transportation, Straphangers Campaign

Trains gain, but buses go flat The only mass-transit option that has seen ridership decline since 2003 is the bus, down 8.9% because of the recession and service cuts. Subway use grew, despite fare hikes of 25% for a single ride, 43% for a seven-day MetroCard and 60% for a 30-day MetroCard over the same period. Annual ridership

1,700 90 83.0 million Subway Long Island Rail Road Bus Metro-North 1.65 billion PATH 80 81.7 million

1,300 Back from the brink 2.0 Use of the subway system has 1.7 1.5 1.6 70 recovered from the three-decade 1.4 1.4 1.0 decline that followed its 1950s 1.1 1.0 1.0 72.6 million heyday. 0.5 Ⅲ Ridership, in billions 0.0 60 Peaked ridership Babylon 64,000 Source: Metropolitan Transportation Authority ’52’62 ’72 ’82’92 ’02 ’12 900 Use of the five busiest LIRR Port Jefferson 49,940 branches was 2% lower in 667.9 million 2012 than in 2003. Ronkonkoma 46,160 50 Ⅲ Daily branch ridership Port Washington 42,230

Source: LIRR Ridership Books, Service Long Beach 20,180 Planning Department

500 40 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Sources: Metropolitan Transportation Authority, Port Authority of New York and New Jersey

Port traffic Busiest subway stations The volume of containerized traffic that goes through the Port The combined passenger count at the top 10 subway stations has increased by 13.4% in the past Authority of New York and New Jersey was unchanged in decade. Annual ridership on all subways hit 1.65 billion in 2012, the highest level since 1950. 2012, but was up 49% from 2002 to 2012. Station 2002* 2012* % change 20-foot equivalent units (TEUs), in millions Times Sq.-42nd St. (N,Q,R,S,1,2,3,7)/42nd St. (A,C,E) 53.4 62.1 +16.2% 3.0 Imports Exports Grand Central-42nd St. (S,4,5,6,7) 40.2 43.0 +6.9%

2.5 34th St.-Herald Sq. (B,D,F,M,N,Q,R) 36.2 37.2 +2.5% 14th St.-Union Sq. (L,N,Q,R,4,5,6) 27.6 34.6 +25.5% 2.0 34th St.-Penn Station (1,2,3) 24.4 27.0 +10.7% 1.5 34th St.-Penn Station (A,C,E) 23.7 24.9 +4.7%

1.0 59th St.-Columbus Circle (A,B,C,D,1) 15.5 21.6 +39.3% Lexington Ave. (N,Q,R)/59th St. (4,5,6) 16.4 20.6 +25.5% 0.5 86th St. (4,5,6) 16.8 19.7 +17.4% 0 TRANSPORTATION ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13* Lexington Ave.-53rd St. (E,M)/51st St. (6) 18.9 19.3 +1.8% *Through May. Source: Port Authority of New York and New Jersey *Annual ridership, in millions. Source: Metropolitan Transportation Authority

65% OF COMMUTERS IN STATEN ISLAND AND 9% IN MANHATTAN DRIVE TO WORK; 21% OF MANHATTAN COMMUTERS WALK.

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2013 STATS AND THE CITY

Low vacancy Even as hotel-room inventory increased, occupancy rates rose. This past Bang for the buck May, 91.9% of rooms were in use, up from 91.1% a year earlier. Average annual hotel occupancy ictory has a thousand fathers, and the city’s tourism boom is no exception. Factors behind the visitor gains in 2002 75.6% 10 of the past 12 years include improved cultural V 2003 76.3% attractions, lower crime, expanded lodging, a rise of the international nouveau riche and vigorous marketing.The 2004 82.4% tourism industry has been too busy to bother fighting over credit, which is just as well, because isolating the causes is tricky. 2005 86.1% One key was the Bloomberg administration’s 2006 merger of 2006 85.6% two quasi-city agencies and the convention and visitors bureau 86.1% into NYC & Company, now a model for other cities’ tourism 2007 promotion.The annual visitor tally by 2012 was up 2008 85.3% 8.2 million, or 19%. Yet the six pre-merger years

buck ennis 2009 81.8% had a similar gain: 7.6 million, or 21% (each period had one recession-induced drop). But the 2010 85.5% recent rise featured bigger-spending overseas 2011 85.2% visitors and occurred despite NYC & Company’s 15% funding cut since 2007— 2012 87.5% impressive by any measure. —erik engquist Source: PKF

Tourists and more tourists International friendlies The number of overseas visitors has soared 129% since 2003, while domestic tourism has grown 24%. The city’s overseas marketing seems to be working, especially in China and South America. Visitors (in millions) Visitors by place of origin (in thousands) 52.0 Domestic International Total 50.9 2007 20121 Increase 48.8 50 47.1 46.0 45.8 2 43.8 China 118 520 +341% 42.7 39.9 Brazil 251 826 +229% 40 37.8 TOURISM Argentina 134 272 +103%

30 Australia 327 556 +70% Mexico 230 387 +68%

20 Middle East 291 478 +64%

France 423 684 +62%

10 Russia 81 131 +62%

Eastern Europe 268 384 +43% 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 India 157 215 +37% Source: NYC & Company 1-Preliminary data. 2-Excluding Hong Kong. Source: NYC & Company

More visitors means more rooms Top attractions The number of new rooms has increased by 24% since 2008. The Metropolitan Museum of Art hit record $281 The biggest new hotel in 2012 was the 774-room Westin New attendance for the second consecutive year, driven York, near Grand Central Terminal. primarily by the final weeks of its Alexander McQueen exhibition, along with the openings of Average daily hotel room Number of hotel rooms, as of May rate in 2012, up 44% new Islamic and American art galleries. from 2002 110,000 Annual visitors (in millions)1 105,692 Source: NYC & Company Metropolitan Museum of Art 6.3 102,729 American Museum of Natural History 5.0

100,000 99,301 National September 11 Memorial & Museum 5.0 Empire State Building Observatory 3.5 94,535 Museum of Modern Art 2.8 402K Statue of Liberty2 2.4 90,000 88,880 Flights out of John F. Bronx Zoo 1.8 Kennedy International 85,430 Ellis Island2 1.7 Airport in 2012, up 43% Intrepid Sea, Air & Space Museum 0.9 from 2003 80,000 New York Botanical Garden 0.8 2008 2009 2010 2011 2012 2013 Source: Port Authority of New York and 1-Estimated; ticketed attractions only. 2-Closed Oct. 29 to Dec. 31 due to New Jersey, Air Traffic Report Source: STR Superstorm Sandy Sources: Organizations

73 NYC HOTELS WITH 16K ROOMS ARE IN DEVELOPMENT, INCLUDING 3 EACH IN STATEN ISLAND AND THE BRONX. $55.3B: ECONOMIC IMPACT OF TOURISM IN 2012

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City’s share of school funding rises New York City taxpayers funded far more of the city’s education A state of confusion budget last school year than they did a decade ago, as annual city spending per pupil (adjusted for inflation) ballooned 62%, to $12,000, while federal aid fell 15%, to $1,750. ince control of the city’s school system was handed to the mayor in Ⅲ Ⅲ Ⅲ Ⅲ 2003, a bewildering array of statistics has been used to support or NYC NYS Federal Private sources Soppose the Bloomberg administration’s education policies. But the data most commonly relied on by the public, standardized 13.0% 0.5% 9.9% 0.3% test scores, are often deceiving, if not incomprehensible. For starters, the scale used to determine “grade level” is inconsistent and arbitrary, and the exams themselves are occasionally overhauled. In 2010, a revised standard for “proficiency” seemed to erase the years of progress 40.5% city students had made—gains that state officials attributed to the 47.1% tests’ questions becoming predictable. This year, scores sank again 42.8% because the exams were revamped to reflect a new and more 45.9% challenging curriculum that had yet to be taught in New York. Meanwhile, after an impressive rise, graduation rates have plateaued amid signs that many students still finish high school unprepared for 2003 2013 higher education or a career. —erik engquist Percentages rounded to nearest 10th. Source: NYC Department of Education

Graduation and college-readiness gains level off After jumping 14.5 percentage points in five years, the city’s high-school graduation rate has ebbed since 2010, while the data on college readiness show a similar trajec- tory. Students who graduate from high school and score 80 or higher on a math Regents examination and 75 or higher on the English Regents meet the city’s definition of “college-ready.” Blacks and Hispanics in the city are now 50% more likely to graduate than in 2005, but a large “achievement gap” remains (see chart inset). Ⅲ High-school graduation rate* Ⅲ College readiness

75% 25%

2012 graduation rate 21.9% 22.2% Asians 82.1% 20.8% 21.1% 19.6% Whites 78.1% 61.0% 60.9% 60.4% 17.8% Blacks 59.8% 59.0% Hispanics 57.5% 56.4% 15.8% 52.8% 13.3% 50 49.1% 12.5 46.5% EDUCATION

25 0 2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012 *Four-year June graduation rate, NY state methodology. Source: NYC Department of Education

Degrees of disconnect More charter schools The number of science, technology, engineering and math majors More than 75% of the city’s charter schools are -5.7% is not keeping up with employment demands, as high-tech jobs in Harlem, central Brooklyn or the South have grown 1.4% a year since 2002. In contrast, health care and Bronx. Funding for charters was $659 million Decline in public-school education degrees outpaced job creation in those fields. in 2011, up from $32 million in 2002. enrollment since 2002 Annual Ⅲ Number of charter schools Source: NYC Department of Education Ⅲ Degrees awarded by NYC schools growth1 150 Business 136 32,383 +2.6% Humanities 120 +6.6% 25,634 +5.0% Expected rise in enrollment Social sciences 18,011 +3.1% 90 by 2021, according to the Health care Grier Partnership 13,338 +5.9% 2 STEM 60 12,643 +1.1% Education 11,530 +3.8% 30 67% Other Share of NYC public-school 4,107 +7.9% 0 1-Compound annual growth rate, 2002-2011. ’02 ’03 ’04 ’05 students eligible for free lunch 2-Science, technology, engineering and math. ’06 ’07 ’08 ’09 ’10 ’11 ’12 Source: NY State Education Department Sources: Partnership for New York City, McKinsey, National Center for Education Statistics Sources: NYS report cards, Charter Center analysis, Daily News

2011 PER-PUPIL SPENDING (TOTAL CITY, STATE AND FED): BRIDGEHAMPTON $58K BRONXVILLE $32K BUFFALO $22K NYC $22K YONKERS $20K UTICA $16K

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TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES TELECOMMUNICATIONS Notice of Formation of 1061 FIRST Notice of Qualification of Private Equity Notice of Qualification of ASB Notice of Qualification of ANS (WE), LLC. AVENUE, LLC. Arts. of Org. filed with Managers 2013, L.P. App. for Auth. Centurion 415 West Broadway Authority filed with Secy. of State of NY Secy. of State of NY (SSNY) on 06/28/13. filed with Secy. of State of NY (SSNY) Holdings, LLC. Authority filed with (SSNY) on 07/08/13. Office location: Office location: NY County. Princ. on 4/15/13. Office location: NY NY Dept. of State on 7/5/13. Office NY County. LLC formed in Delaware office of LLC: 1061 First Ave., NY, NY County. LP formed in Delaware (DE) on location: NY County. Princ. bus. addr.: (DE) on 07/02/13. SSNY designated 33 East 33rd Street 10022. SSNY designated as agent of 4/8/13. SSNY designated as agent of 7501 Wisconsin Ave., Ste. 1300W, as agent of LLC upon whom process New York, NY 10016 LLC upon whom process against it LP upon whom process against it may Bethesda, MD 20814. LLC formed in against it may be served. SSNY shall 212-532-7400 may be served. SSNY shall mail be served. SSNY shall mail process to: DE on 6/25/13. NY Sec. of State mail process to Attn: John J. Suydam, [email protected] process to c/o Holland & Knight LLP, 200 West St., NY, NY 10282-2198. designated agent of LLC upon whom 9 W. 57th St., 43rd Fl., NY, NY 10019. Attn: Lance Myers, 31 W. 52nd St., NY, DE address of LP: Corporation process against it may be served DE addr. of LLC: c/o Corporation EMERGENCY NY 10019. Purpose: To acquire, own, Service Company, 2711 Centerville and shall mail process to: c/o CT Service Co., 2711 Centerville Rd., Ste. COMMUNICATIONS manage, improve, lease, finance, Road, Wilmington, DE 19808. 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Purpose: ON REPAIRS Notice of Formation of BIG CITY State, 401 Federal St., Dover, DE Any lawful activity. • FREE ENGRAVING Winsor Holdings LLC, Arts of Org filed REALTY MANAGEMENT, LLC. Arts. of 19901. Purpose: all lawful purposes. • SHORT & LONG TERM with SSNY on 07/08/13. Off Loc: New Org. filed with Secy. of State of NY NOTICE OF FORMATION OF Snow RENTALS York County, SSNY designated as (SSNY) on 07/15/13. Office location: NY Notice of Formation of KCD Saxon Fox LLC. Arts of Org filed with Secy agent of LLC upon whom process County. Princ. office of LLC: 20803 LLC. Arts. of Org. filed with Secy. of of State of NY (SSNY) on 6/27/13. against it may be served. SSNY shall Biscayne Blvd., Ste. 301, Aventura, FL State of NY (SSNY) on 6/24/13. Office location: NY County. SSNY mail a copy of process to: The LLC, 33180. SSNY designated as agent of Office location: NY County. SSNY designated agent upon whom 108 Forsyth St, New York, NY 10002. LLC upon whom process against it designated as agent of LLC upon process may be served and shall Purpose: to engage in any lawful act. may be served. SSNY shall mail whom process against it may be mail copy of process against LLC to: process to the LLC at the addr. of its served. SSNY shall mail process to: c/o Capital Services Group, LLC 601 Notice of Formation of Tigris, LLC. princ. office. Purpose: Real estate. 1350 Broadway, Ste. 1010, NY, NY Cape Eleuthra Rd, Bethany Beach, Articles of Organization filed with New PUBLIC & LEGAL Notice of Formation of NYC Carmine 10018. Purpose: any lawful activity. DE 19930. Purpose: any lawful act. York Secretary of State on June 7, 2013. Holdings LLC, Art. of Org. filed NOTICES Principal Office Location: New York Notice of Formation of DOLLY LENZ NOTICE OF FORMATION OF CEYLAN Sec’y of State (SSNY) 4/5/13. Office County. Secretary of State designated REAL ESTATE LLC. Arts. of Org. filed YAZAR CONSULTING LLC. Arts of location: NY County. SSNY designated Notice of Qualification of 212 Fifth as agent of LLC upon whom process with Secy. of State of NY (SSNY) on Org filed with Secy of State of NY as agent of LLC upon whom process Avenue Owner LLC. Authority filed against the LLC may be served. 06/20/13. Office location: NY County. (SSNY) on 6/26/13. Office location: NY against it may be served. SSNY shall with NY Dept. of State on 6/11/13. Secretary of State shall mail a copy SSNY designated as agent of LLC County. SSNY designated as agent mail copy of process to Meister Office location: NY County. Princ. of any process to the LLC at: 146 upon whom process against it may be upon whom process may be served Seelig & Fein, 140 E. 45th St., NY, bus. addr.: 805 3rd Ave., 7th Fl., NY, West 57th Street, #68A, New York, served. SSNY shall mail process to and shall mail copy of process against NY 10017, the Reg. Agt. upon whom NY 10022. LLC formed in DE on New York 10019. Purpose: to Douglas Danzig c/o Norton Rose LLC to: US CORP AGENTS, INC proc. may be served. Purpose: any 6/4/13. NY Sec. of State designated engage in any lawful act or activity. Fulbright, 666 Fifth Ave., 30th Fl., NY, 7014 13TH AVE STE 202 BKLYN, NY lawful activities. agent of LLC upon whom process NY 10103. Purpose: Any lawful activity. 11228. Principal business address: against it may be served and shall Notice of Qualification of JMCHAM, Notice of Formation of SEREN 239, 212 E 95TH ST 6A NY, NY 10128. mail process to: c/o CT Corporation LLC. Authority filed with Secy. of LLC. Arts. of Org. filed with Secy. of NOTICE OF FORMATION OF Monarb Purpose: any lawful act. System, 111 8th Ave., NY, NY 10011, State of NY (SSNY) on 6/24/13. Office State of NY (SSNY) on 07/16/13. LLC. Arts of Org filed with Secy of regd. agent upon whom process may location: NY County. LLC formed in State of NY (SSNY) on 1/31/13. Office NOTICE OF FORMATION OF Office location: NY County. Princ. BREAKAWAY HOOPS LLC. Arts of be served. DE addr. of LLC: 1209 California (CA) on 6/18/13. SSNY office of LLC: c/o Shvo, 724 Fifth Ave., location: NY County. SSNY designated Orange St., Wilmington, DE 19801. designated as agent of LLC upon whom as agent upon whom process may be Org filed with Secy of State of NY NY, NY 10019. SSNY designated as (SSNY) on 3/28/13. Office location: NY Cert. of Form. filed with DE Sec. of process against it may be served. agent of LLC upon whom process served and shall mail copy of process State, 401 Federal St., Dover, DE SSNY shall mail process to: Michael against LLC to: 7014 13th Ave, Ste 202 County. SSNY designated as agent against it may be served. SSNY upon whom process may be served 19901. Purpose: all lawful purposes. S. Sher, C.P.A., 15060 Ventura Blvd., shall mail process to the LLC at the Bklyn, NY 11228. Principal business Ste. 300, Sherman Oaks, CA 91403, address: 350 W 50th st Apt 3W NY, and shall mail copy of process Notice of formation of 2000 Broadway addr. of its princ. office. Purpose: against LLC to principal business also the address to be maintained in Any lawful activity. NY 10019. Purpose: any lawful act. 22A, L.L.C. Article of organization CA. Arts of Org. filed with the CA address: 228 W 149 ST APT 6A NY, filed with the Secretary of State of Secretary of State, 1500 11th St., NOTICE OF FORMATION OF Notice of Qual. of Scopia EM NY 10039. Purpose: any lawful act. New York SSNY on April 24, 2013. Management LLC, Auth. filed Sec’y of 3rd. Fl., Sacramento, CA 95814. 10044.Com LLC. Articles of NOTICE OF FORMATION OF Office located in New York. SSNY Purpose: any lawful activities. Organization filed with the Secretary State (SSNY) 12/7/12. Office loc.: NY has been designated for service of County. LLC org. in DE 12/4/12. SSNY KIKKERLAND RETAIL LLC. Arts of of State of NY (SSNY) on 04/17/2013. Org filed with Secy of State of NY process. SSNY shall mail copy of Notice of Formation of WISDOM desig. as agent of LLC upon whom Office location: New York County. (SSNY) on 5/31/13. Office location: NY any process served against the LLC., GLOBAL PRIVATE, LLC. Arts. of Org. process against it may be served. SSNY has been designated as agent County. SSNY designated as agent located at 2000 Broadway, Unit # 22A, filed with Secy. of State of NY (SSNY) SSNY shall mail copy of proc. to Att: upon whom process against it may be upon whom process may be served New York, NY 10023. Purpose: any on 06/06/13. Office location: NY Matthew Sirovich, 152 W. 57th St., 33rd served. The Post Office address to and shall mail copy of process lawful purpose. County. SSNY designated as agent of Fl., NY, NY 10019. DE off. addr.: CSC, which the SSNY shall mail a copy of against LLC to principal business LLC upon whom process against it may 2711 Centerville Rd., Wilmington, DE NOTICE OF FORMATION OF Mission any process against the LLC served address: 666 Broadway, Unit 4, NY, NY be served. SSNY shall mail process to 19808. Cert. of Form. on file: SSDE, Possible Acupuncture, PLLC. Arts of upon him is 10044.Com LLC, 625 10012-2314. Purpose: any lawful act. Corporation Service Co., 80 State St., Main Street, 637, New York, NY Townsend Bldg., Dover, DE 19901. Org filed Secy of State of NY (SSNY) Albany, NY 12207, regd. agent upon 10044. Purpose of LLC: To engage in Purp.: any lawful activities. NOTICE OF FORMATION OF Law on 12/6/12. Office location: NY County. whom and at which process may be any lawful act or activity. Office of Shane D. Fuhrman PLLC. SSNY designated agent upon whom served. Purpose: Any lawful activity. Notice is hereby given that license Arts of Org filed with Secy of State process may be served and shall mail Notice of Qual. of North 3rd Lender number 1272294 for Beer & Wine has of NY (SSNY) on 6/26/13. Office copy of process against PLLC to: Notice of Qualification of LLC, Auth. filed Sec’y of State (SSNY) been applied for by the undersigned location: NY County. SSNY designated US Corp Agents, Inc. 7014 13th Ave, METSCHOOLS, LLC. App. for Auth. 3/26/13. Office loc.: NY County. LLC to sell Beer & Wine at retail in a as agent upon whom process may Ste 202 Bklyn, NY 11228. Principal filed with Secy. of State of NY (SSNY) org. in DE 3/22/13. SSNY desig. as restaurant, under the Alcoholic be served and shall mail process business address: 130 W 42nd St, NY, on 6/27/13. Office location: NY agent of LLC upon whom process Beverage Control Law at 1 University against PLLC to principal business NY. Purpose: any lawful act. County. LLC formed in Delaware (DE) against it may be served. SSNY shall Place, Store #2, New York, NY 10003, address: 24 5th Ave, Apt 612A, NY, on 5/7/13. SSNY designated as agent NOTICE OF FORMATION OF Beth mail copy of proc. to NRAI, 111 for On-premises consumption. 1 NY 10011. Purpose: any lawful act. of LLC upon whom process against Eighth Ave., NY, NY 10011, the Reg. University Place, Store #2, New York, Zisman & Company LLC. Arts of Org it may be served. SSNY shall mail Agt. upon whom proc. may be served. NY 10003. NY TAKUMI INC. NOTICE OF FORMATION OF filed with Secy of State of NY (SSNY) process to: c/o VSS Structured DE off. addr.: 160 Greentree Dr., Ste. TATANY MIRACLE LLC. Arts of Org on 5/1/13. Office location: NY County. Capital II, L.P., 55 E. 52nd St., 33rd Fl., 101, Dover, DE 19904. Cert. of Form. NOISE CANS LLC, a domestic LLC, filed with Secy of State of NY (SSNY) SSNY designated agent upon whom NY, NY 10055. DE address of LLC: on file: SSDE, Townsend Bldg., Dover, Arts. of Org. filed with the SSNY on on 6/25/13. Office location: NY process may be served and shall Corporation Trust Center, 1209 Orange DE 19901. Purp.: any lawful activities. 6/18/13. Office location: New York County. SSNY designated as agent mail copy of process against LLC to St., Wilmington, DE 19801. Arts. of County. SSNY is designated as upon whom process may be served principal business address: 500 W. Org. filed with DE Secy. of State, Notice of Qualification of Ethos Group agent upon whom process against and shall mail copy of process 43rd St., Ste 31F, NY, NY 10036. Loockerman & Federal Sts., Dover, DE Consulting Services, LLC. Application the LLC may be served. SSNY shall against LLC to principal business Purpose: any lawful act. 19901. Purpose: any lawful activity. for Authority filed with the Secretary mail process to: c/o Tanton and address: 1400 2ND AVE, NY, NY of State of New York (SSNY) on Company, 37 W. 57th St., 5th Fl., NY, 10021. Purpose: any lawful act. Notice of Qualification of 781 EIGHTH Notice of Qualification of McGraw-Hill 6/6/2013. Office location: New York NY 10019. General Purposes. AVENUE OWNER LLC. Authority filed School Education Holdings, LLC. County. LLC formed in Delaware on Notice of Qualification of Cetera with Secy. of State of NY (SSNY) on Authority filed with Secy. of State of NY 11/12/2008. SSNY has been designated Notice of Qualification of HUDSON Financial Specialists Services LLC. 06/18/13. Office location: NY County. (SSNY) on 06/24/13. Office location: as an agent upon whom process BOULEVARD SLIVER OWNER LLC. Authority filed with NY Dept. of State LLC formed in Delaware (DE) on NY County. LLC formed in Delaware against it may be served. The Post Authority filed with Secy. of State of NY on 7/16/13. Office location: NY 06/14/13. Princ. office of LLC: c/o (DE) on 01/31/13. SSNY designated Office address to which the SSNY shall (SSNY) on 07/10/13. Office location: County. Princ. bus. addr.: 200 N. Margolin, Winer & Evens LLP, 400 as agent of LLC upon whom process mail a copy of any process against NY County. LLC formed in Delaware Sepulveda Blvd., Ste. 1200, El Garden City Plaza, 5th Fl., Garden against it may be served. SSNY shall the LLC served upon him/her is: c/o (DE) on 07/09/13. Princ. office of LLC: Segundo, CA 90245. LLC formed in City, NY 11530. SSNY designated as mail process to c/o McGraw-Hill CT Corporation System, 111 8th Ave., 60 Columbus Circle, NY, NY 10023. DE on 10/23/12. NY Sec. of State agent of LLC upon whom process Education, Attn: David B. Stafford, 2 New York, NY 10011. The principal SSNY designated as agent of LLC designated agent of LLC upon whom against it may be served. SSNY shall Penn Plaza, 12th Fl., NY, NY 10121. business address of the LLC is: 5215 upon whom process against it may be process against it may be served mail process to Wayne R. Lehrhaupt DE addr. of LLC: c/o Corporation N. O’Connor Blvd., Suite 1450, Irving, served. SSNY shall mail process to c/o and shall mail process to: c/o CT Esq., Eisman Levine Lehrhaupt & Service Co., 2711 Centerville Rd., TX 75039. Delaware address of LLC: Corporation Service Co. (CSC), 80 Corporation System, 111 8th Ave., Kakoyiannis P.C., 805 Third Ave., NY, Ste. 400, Wilmington, New Castle 1209 Orange Street, Wilmington, DE State St., Albany, NY 12207. DE addr. NY, NY 10011, regd. agent upon NY 10022. DE addr. of LLC: 2711 Cnty., DE 19808. Arts. of Org. filed 19801. Certificate of LLC filed with of LLC: CSC, 2711 Centerville Rd., whom process may be served. DE Centerville Rd., Ste. 400, Wilmington, with The Secy. of State of the State the Secretary of State of Delaware Ste. 400, Wilmington, DE 19808. Arts. addr. of LLC: 1209 Orange St., DE 19808. Arts. of Org. filed with of DE, Dept. of State, Div. of Corps., located at: John G. Townsend Bldg., of Org. filed with Secy. of State, Corps. Wilmington, DE 19801. Cert. of Secy. of State of DE, Div. of Corps., John G. Townsend Bldg., 401 401 Federal St., Ste. 4, Dover, DE Div., John G. Townsend Bldg., 401 Form. filed with DE Sec. of State, John G. Townsend Bldg., 461 Federal St., Ste. 4, Dover, DE 19901. 19901. Perpetual existence. Purpose: Federal St., Ste. 4, Dover, DE 19901. 401 Federal St., Dover, DE 19901. Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. any lawful act or activity. Purpose: Any lawful activity. Purpose: all lawful purposes. Purpose: Any lawful activity.

August 26, 2013 | Crain’s New York Business | 33 nb34p33-36cl.qxp 8/22/2013 4:25 PM Page 34

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of ABV MADISON Notice of Qualification of CENTURION Notice of Qualification of Valutrust Notice of formation of DerivePlay LLC. NOTICE OF FORMATION OF LIMITED BLOCKER LLC. Authority filed with REAL ESTATE INVESTORS RT II, LLC. Solutions, LLC. Authority filed with Articles of Organization filed with the LIABILITY COMPANY. NAME: 143-48 Secy. of State of NY (SSNY) on Authority filed with Secy. of State of NY NY Dept. of State on 6/24/13. Office Secretary of State of NY (SSNY) on 41ST AVENUE, LLC. Application for 07/22/13. Office location: NY County. (SSNY) on 07/29/13. Office location: location: NY County. LLC formed in 05/31/13. Office location: New York Authority was filed with the Secretary LLC formed in Delaware (DE) on NY County. LLC formed in Delaware KS on 8/19/10. NY Sec. of State County. SSNY has been designated of State of New York (SSNY) on 07/17/13. Princ. office of LLC: c/o (DE) on 07/26/13. Princ. office of designated agent of LLC upon as agent upon whom process 04/04/13. The LLC was originally filed Perella Weinberg Partners Capital LLC: 909 Third Ave., 27th Fl., NY, NY whom process against it may be against it may be served. The Post with the Secretary of State of Management LP, 767 Fifth Ave., NY, NY 10022-4731. SSNY designated as served and shall mail process to: c/o Office address to which the SSNY Delaware on 04/01/13. Office location: 10153. SSNY designated as agent of agent of LLC upon whom process CT Corporation System, 111 8th shall mail a copy of any process New York County. SSNY has been LLC upon whom process against it against it may be served. SSNY shall Ave., NY, NY 10011, regd. agent against the LLC served upon him/her designated as agent of the LLC upon may be served. SSNY shall mail process mail process to Morrison Cohen LLP, upon whom process may be served. is: Christopher G. Reid Esq., 116 whom process against it may be to the LLC at the princ. office of the Attn: Karim N. Momin, Esq. at the KS and principal business addr.: Third Pl. #3, Brooklyn, NY 11231. served. SSNY shall mail a copy of LLC. DE addr. of LLC: Corporation princ. office of the LLC. DE addr. of 7500 College Blvd., Ste. 600, The principal business address of the process to the LLC, 552 Main Street, Service Co., 2711 Centerville Rd., Ste. LLC: c/o Corporation Service Co., 2711 Overland Park, KS 66210. Cert. of LLC is: 69 Bennett Ave, Apt 404 New Roosevelt Island, New York 10044. 400, Wilmington, DE 19808. Arts. of Centerville Rd., Ste. 400, Wilmington, Org. filed with KS Sec. of State, 120 York, NY 10033. Duration: Perpetual. Purpose: For any lawful purpose. Org. filed with Secy. of State, State of DE 19808. Arts. of Org. filed with SW 10th Ave., Topeka, KS 66612. Purpose: any lawful act or activity. DE, Dept. of State, Townsend Bldg., Secy. of State of the State of DE, Div. Purpose: all lawful purposes. Notice of Formation of FR GLOBAL Notice of Formation of 352E55RS, LLC. 401 Federal St., Dover, DE 19901. of Corps., John G. Townsend Bldg., ADVISORS LLC. Arts. of Org. filed Notice of Qual. of One Hudson Yards Arts. of Org. filed with Secy. of State Purpose: Investments. 401 Federal St., Ste. 4, Dover, DE with Secy. of State of NY (SSNY) on Owner LLC, Auth. filed Sec’y of State of NY (SSNY) on 08/05/13. Office 19901. Purpose: Any lawful activity. 07/25/13. Office location: NY County. Carnegie Hill Optometry, PLLC, (SSNY) 5/14/13. Office loc.: NY County. location: NY County. Princ. office of SSNY designated as agent of LLC Articles of Organization filed with Notice of formation of CITYWIDE LLC org. in DE 5/13/13. SSNY desig. LLC: 230 W. 39th St., 10th Fl., NY, NY upon whom process against it may be Secretary of State of NY (SSNY) on COMMERCIAL REALTY LLC Arts. of as agent of LLC upon whom process 10018. SSNY designated as agent of served. SSNY shall mail process to 04/16/13. Office Location: NY County. Org. filed with the Sect’y of State of against it may be served. SSNY shall LLC upon whom process against it may Corporation Service Co., 80 State St., SSNY designated as agent of LLC upon NY (SSNY) on 1/11/2013. Office mail copy of proc. to CSC, 80 State St., be served. SSNY shall mail process to Albany, NY 12207, regd. agent upon whom process against it may be served. location, County of New York. SSNY Albany, NY 12207. DE off. addr.: CSC, Sandeep Girdhar at the princ. office of whom and at which process may be SSNY shall mail a copy of process to: has been designated as agent of the 2711 Centerville Rd., Wilmington, DE the LLC. Purpose: Any lawful activity. served. Purpose: Any lawful activity. 19808. Cert. of Form. on file: SSDE, The PLLC, 1387 Madison Ave., New LLC upon whom process against it Notice of Formation of Diane Gilman Townsend Bldg., Dover, DE 19901. JSK At 200 Riverside, LLC. Appl. for York, NY 10029. Purpose: to engage may be served. SSNY shall mail Fashion, LLC. Arts. of Org. filed with Purp.: any lawful activities. Auth. filed with Secy. of State of NY in the profession of Optometry. process to: The LLC, 235 West 56th Secy. of State of NY (SSNY) on 7/29/13. (SSNY) on 07/23/13. Off. loc: NY Co. St., Suite 36P, NY NY 10019. Office location: NY County. SSNY NOTICE OF QUALIFICATION of Notice of Formation of 3660 Orig. juris: DE. SSNY designated as Purpose: any lawful act. designated as agent of LLC upon whom Conde Nast Entertainment LLC. Arts BROADWAY BCR, LLC. Arts. of Org. agent of LLC upon whom process process against it may be served. of Org filed with Secy of State of NY filed with Secy. of State of NY (SSNY) may be served. SSNY shall mail Notice of Formation of Euro Mec Water SSNY shall mail process to: The LLC, (SSNY) on 6/19/13. Office location: NY on 08/06/13. Office location: NY process to 200 Riverside Blvd, #16A, Group USA, LLC. Arts. of Org. filed 325 5th Ave., Apt. 39C, NY, NY County. LLC formed in DE on 3/22/13. County. Princ. office of LLC: 20803 Attn: Amy B. Schneidkraut Kessler. with NY Dept. of State on 7/22/13. 10016. Purpose: any lawful activity. SSNY designated as an agent upon Office location: NY County. Princ. bus. Biscayne Blvd., Ste. 301, Aventura, FL Purpose: General. 33180. SSNY designated as agent of whom process may be served and addr.: 250 Park Ave., 7th Fl., NY, NY NOTICE OF FORMATION OF Notice is hereby given that a license, shall mail copy of process against LLC 10177. Sec. of State designated LLC upon whom process against it MOOSTACHIO LLC. Arts of Org filed may be served. SSNY shall mail number 1272075 for beer and wine to principal business address: 4 Times agent of LLC upon whom process with Secy of State of NY (SSNY) on has been applied for by the under- Square, 23rd Fl, NY, NY 10036. Cert against it may be served and shall process to the LLC at the addr. of its 3/15/10. Office location: NY County. princ. office. Purpose: Real estate. signed to sell beer and wine at retail of LLC filed with Secy of State of DE mail process to: c/o Wilk Auslander SSNY designated as agent upon in a restaurant under the Alcoholic located: 401 Federl St, Ste 4 Dover, LLP, 1515 Broadway, 43rd Fl., NY, NY NOTICE OF FORMATION OF Provably whom process may be served and Beverage Control Law at 61 West DE 19901. Purpose: any lawful act. 10036. Purpose: all lawful purposes. Correct LLC. Arts of Org filed with shall mail copy of process against 74th Street, New York, NY 10023 for Secy of State of NY (SSNY) on LLC to: 60 Henry St, #15F, NY, NY Notice of Formation of Lucida 14A on-premises consumption. 74 W Notice of Qualification of DRAGON 5/7/13. Office location: NY County. 10002. Purpose: any lawful act. LLC. Arts. of Org. filed with NY Dept. Pizza Corp. D/B/A Patsy’s Pizzeria OPERATIONS, LLC. Authority filed SSNY designated as agent upon of State on 7/3/13. Office location: Notice of Formation of Logan Spamer with Secy. of State of NY (SSNY) on whom process may be served and NOTICE OF FORMATION OF JFX LIN NY County. Sec. of State designated Enterprises, LLC, Art. of Org. filed 08/02/13. Office location: NY County. shall mail copy of process against LLC. Arts of Org filed with Secy of agent of LLC upon whom process Sec’y of State (SSNY) 2/13/13. Office LLC formed in Delaware (DE) on LLC to principal business address: State of NY (SSNY) on 6/11/13. Office against it may be served and shall location: NY County. SSNY designated 06/24/13. SSNY designated as agent c/o Savant Financial Technologies location: NY County, SSNY designated mail process to: c/o CT Corporation as agent of LLC upon whom process of LLC upon whom process against Inc., 1375 Broadway, 3rd Fl, NY, NY as agent upon whom process may be it may be served. SSNY shall mail System, 111 8th Ave., NY, NY 10011, against it may be served. SSNY shall 10018. Purpose: any lawful act. mail copy of process to Att: Donovan served and shall mail copy of process process to c/o Corporation Service regd. agent upon whom process against LLC to principal business Co. (CSC), 80 State St., Albany, NY may be served. Purpose: all lawful NOTICE OF FORMATION OF JC Spamer, 60 Sutton Place S., NY, NY 10022. Purpose: any lawful activities. address: 173 STANTON ST, #3, NY, 12207-2543. DE addr. of LLC: c/o purposes. Restaurants, LLC. Arts of Org filed NY, 10002. Purpose: any lawful act. CSC, 2711 Centerville Rd., Ste. 400, with Secy of State of NY (SSNY) on NOTICE OF FORMATION OF JJJ Real NOTICE OF FORMATION OF LI Malls, Wilmington, DE 19808. Arts. of Org. 6/28/13. Office location: NY County. LLC. Arts of Org filed with Secy of Notice is hereby given that a license, filed with DE Secy. of State, 401 Estate, LLC. Arts of Org filed with Secy SSNY designated as agent upon whom number 1272692, for on-premises of State of NY (SSNY) on 6/28/13. State of NY (SSNY) on 8/7/13. Office Federal St., Ste. 4, Dover, DE 19901. process may be served and shall mail location: NY County. SSNY designated liquor has been applied for by HANE Purpose: Any lawful activity. Office location: NY County. SSNY copy of process against LLC to: CT SUSHI INC to sell beer/liquor/wine at designated as agent upon whom agent upon whom process may be Corporation System, 111 Eighth Ave, served and shall mail copy of process retail in a restaurant under the KRH 61ST STREET LLC, a domestic process may be served and shall mail NY, NY 10011. Principal business against LLC to: CT Corporation Alcoholic Beverage Control Law at LLC , Arts. of Org. filed with the SSNY copy of process against LLC to: CT address: 225 Nod Rd, Ridgefield, CT System, 111 Eighth Ave, NY, NY 346 1st Ave., New York, NY 10009 on 6/7/13. Office location: New York Corporation System, 111 Eighth Ave, 06877. Purpose: any lawful act. 10011. Principal business address: for on premises consumption. County. SSNY is designated as NY, NY 10011. Principal business 225 Nod Rd., Ridgefield, CT 06877. agent upon whom process against address: 225 Nod Rd, Ridgefield, CT NOTICE OF FORMATION of 500 Park Notice of formation of Zhang’s Purpose: any lawful act. the LLC may be served. SSNY shall 06877. Purpose: any lawful act. Avenue Screening Room LLC Arts. Of International, L.L.C. Article of organi- mail process to: The LLC, 795 5th Org. filed with Secy. of State of NY THE CLASSICAL MUSICIANS’ zation filed with the Secretary of State Ave., Apt. 2608-10, NY, NY 10065. Notice of Formation of SAR III, LLC. (SSNY) on 08/01/13. Office Location: REHEARSAL SYMPHONY of New York SSNY on May 24, 2013. General Purposes. Arts. of Org. filed with Secy. of State NY County. SSNY designated as ORCHESTRA, LLC, a domestic LLC, Office located in New York. SSNY has of NY (SSNY) on 07/19/13. Office agent of LLC upon whom process Arts. of Org. filed with the SSNY on been designated for service of process. Notice of Formation of GAVECORE location: NY County. Princ. office of against it may be served. SSNY shall 7/30/13. Office location: New York SSNY shall mail copy of any process LLC. Arts. of Org. filed with Secy. of LLC: 1 Penn Plaza, NY, NY 10119. mail process to Eugene F. Getty, County. SSNY is designated as agent served against the LLC.: located at State of NY (SSNY) on 07/02/13. SSNY designated as agent of LLC Kellner Herlihy Getty & Friedman, LLP, upon whom process against the LLC 325 W 38th St, Apt. 602, New York, NY Office location: NY County. SSNY upon whom process against it may 470 Park Avenue South, 7N, NY, NY may be served. SSNY shall mail 10018 Purpose: any lawful purpose. designated as agent of LLC upon be served. SSNY shall mail process 10016. Purpose: Any lawful activity. process to: Arlene Stock, 531 Main St., whom process against it may be to Valley National Bank, 1455 Valley Notice of Formation of Gaming Notice of Formation of MALAULALO #1603, Roosevelt Island, NY 10044. served. SSNY shall mail process to Rd., Wayne, NJ 07470. Purpose: Any General Purposes. Management, LLC. Arts. of Org. filed the LLC, 505 Park Ave., 8th Fl., NY, NY lawful activity. LLC. Arts. of Org. filed with Secy. of with Secy. of State of NY (SSNY) on 10022. Purpose: Any lawful activity. State of NY (SSNY) on 6/14/13. Office Notice of Formation of CIRQUE 3/12/13. Office location: NY County. NOTICE OF FORMATION OF location: NY County. SSNY PARALLEL LLC. Arts. of Org. filed SSNY designated as agent of LLC Notice of Formation of 868 BPI LLC, Carlania, LLC. Arts of Org filed with designated as agent of LLC upon with Secy. of State of NY (SSNY) on upon whom process against it may be Arts. Of Org. filed with SSNY on Secy of State of NY (SSNY) on whom process against it may be 08/16/13. Office location: NY County. served. SSNY shall mail process to: c/o 5/7/13. Office location: NY County. 6/20/13. Office location: NY County. served. SSNY shall mail process to: SSNY designated as agent of LLC Merle Brown & Nakamura, P.C., 90 SSNY designated as agent of LLC SSNY designated as agent upon c/o Ralph R. Hochberg, 8 Tanglewood upon whom process against it may be Broad St., Ste. 2201, NY, NY 10004- upon whom process against it many whom process may be served and Lane, Sea Cliff, NY 11579. Purpose: served. SSNY shall mail process to c/o 2271. Purpose: any lawful purpose. be served. SSNY shall mail process shall mail copy of process against any lawful activity. Grant, Herrmann, Schwartz & Klinger to LLC at Martin Shaw, 350 5th LLC to principal business address: LLP, 675 Third Ave., 26th Fl., NY, NY CHATSWORTH RIVERSIDE PARK 3 Avenue, #2816, NY, NY 10118. c/o Shane Henty Sutton, P.C., 150 E Notice of Qualification of ASCENT 10017. Purpose: Any lawful activity. LLC, a domestic LLC, Arts. of Org. filed Purpose: Any lawful activity. 58th St, 25th Fl, NY, NY 10155. SPECIAL VENTURES, LLC. Authority with the SSNY on 6/14/13. Office Purpose: any lawful act. filed with Secy. of State of NY (SSNY) Notice of Qualification of SFERRA location: New York County. SSNY is NOTICE OF FORMATION OF LIMITED on 03/25/13. Office location: NY Fine Linens, LLC. Authority filed with designated as agent upon whom LIABILITY COMPANY. NAME: TWO NOTICE OF FORMATION OF LIMITED County. LLC formed in Delaware (DE) NY Dept. of State on 8/12/13. Office process against the LLC may be served. ROADS PRODUCTIONS LLC. LIABILITY COMPANY. NAME: 519 on 03/21/13. Princ. office of LLC: 142 location: NY County. Princ. bus. addr.: SSNY shall mail process to: Cohen & Articles of Organization were filed with WEST 179 STREET, LLC. Articles of W. 57th St., Ste. 4A, NY, NY 10019. 15 Mayfield Ave., Edison, NJ 08837. Frankel, LLP, 11 E. 44th St., Ste. 1800, the Secretary of State of New York Organization were filed with the SSNY designated as agent of LLC LLC formed in DE on 7/30/13. NY Sec. NY, NY 10017. General Purposes. (SSNY) on 06/20/13. Office location: Secretary of State of New York upon whom process against it may be of State designated agent of LLC upon New York County. SSNY has been (SSNY) on 08/05/13. Office location: served. SSNY shall mail process to whom process against it may be LATIN TALENT OF AMERICA, LLC, a designated as agent of the LLC upon New York County. SSNY has been the LLC at the princ. office of the LLC. served and shall mail process to: CT domestic LLC, Arts. of Org. filed with whom process against it may be designated as agent of the LLC upon DE addr. of LLC: CSC, 2711 Centerville Corporation System, 111 8th Ave., the SSNY on 7/18/13. Office location: served. SSNY shall mail a copy of whom process against it may be Rd., Ste. 400, Wilmington, DE 19808. NY, NY 10011. DE addr. of LLC: 1209 New York County. SSNY is designated process to the LLC, c/o Robert served. SSNY shall mail a copy of Arts. of Org. filed with Jeffrey W. Orange St., Wilmington, DE 19801. as agent upon whom process against Pesce, CPA, 750 Third Avenue, 11th process to the LLC, 519 West 179th Bullock, Secy. of State, Div. of Cert. of Form. filed with DE Sec. of the LLC may be served. SSNY shall Floor, New York, New York 10017. Street, New York, New York 10033. Corps., PO Box 898, Dover, DE State, Townsend Bldg., Dover, DE mail process to: The LLC, 15 William St., Purpose: For any lawful purpose. Purpose: For any lawful purpose. 19901. Purpose: Any lawful activity. 19901. Purpose: all lawful purposes. #18, NY, NY 10005. General Purposes.

34 | Crain’s New York Business | August 26, 2013 nb34p33-36cl.qxp 8/22/2013 4:26 PM Page 35

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of Qualification of 210 BEDFORD Notice of Qualification of CWPY Notice of Qualification of Apria NOTICE OF QUALIFICATION of PJM Notice of Qualification of FLATIRON INVESTORS IIA, LLC. Authority filed Construction Investors LLC. Authority Healthcare LLC. Authority filed with WHOLESALE BROKERS, LLC. LAB VENTURES, LLC. Authority filed with Secy. of State of NY (SSNY) on filed with Secy. of State of NY (SSNY) NY Dept. of State on 7/1/13. Office Application for Authority filed with with Secy. of State of NY (SSNY) on 07/24/13. Office location: NY County. on 07/25/13. Office location: NY location: NY County. Princ. bus. addr.: the Secretary of State of New York 06/20/13. Office location: NY County. LLC formed in Delaware (DE) on County. LLC formed in Delaware (DE) 26220 Enterprise Ct., Lake Forest, CA (SSNY) on 2/14/13. Office location in LLC formed in Delaware (DE) on 06/27/13. Princ. office of LLC: 10 E. on 02/12/13. Princ. office of LLC: 60 92630. LLC formed in DE on 3/30/84. New York County. LLC formed in 06/14/13. Princ. office of LLC: 291 53rd St., 37th Fl., NY, NY 10022. Columbus Circle, 19th Fl., NY, NY NY Sec. of State designated agent of Delaware on 11/15/12. SSNY has been Broadway, Ste. 401, NY, NY 10007. SSNY designated as agent of LLC 10023. SSNY designated as agent of LLC upon whom process against it designated as agent upon whom SSNY designated as agent of LLC upon whom process against it may LLC upon whom process against it may be served and shall mail process process against it may be served. upon whom process against it may be be served. SSNY shall mail process may be served. SSNY shall mail to: c/o National Registered Agents, Inc. The Post Office address to which the served. SSNY shall mail process to to Corporation Service Co. (CSC), 80 process to c/o Corporation Service (NRAI), 111 8th Ave., NY, NY 10011, SSNY shall mail a copy of any process the LLC at the princ. office of the LLC. State St., Albany, NY 12207-2543, Co. (CSC), 80 State St., Albany, NY regd. agent upon whom process may against the LLC served upon him/her DE addr. of LLC: c/o Corporation regd. agent upon whom and at 12207-2543. DE addr. of LLC: CSC, be served. DE addr. of LLC: c/o NRAI, is 111 8th Avenue, 13th Floor, NY, NY Service Co., 2711 Centerville Rd., Ste. which process may be served. DE 2711 Centerville Rd., Ste. 400, 160 Greentree Dr., Ste. 101, Dover, DE 10011. The principal place business 400, Wilmington, DE 19808. Arts. of addr. of LLC: c/o CSC, 2711 Wilmington, DE 19808. Arts. of Org. 19904. Cert. of Form. filed with DE Sec. address of the LLC is 18 Abbott Road, Org. filed with DE Secy. of State, John Centerville Rd., Ste. 400, Wilmington, filed with DE Secy. of State, 401 of State, 401 Federal St., Dover, DE Hamilton, NJ 08690. Certificate of the G. Townsend Bldg., 401 Federal St., New Castle Cnty., DE 19808. Arts. of Federal St., Ste. 4, Dover, DE 19901. 19901. Purpose: all lawful purposes. LLC filed with the Secretary of State Ste. 4, Dover, DE 19901. Purpose: Org. filed with DE Secy. of State, Div. Purpose: Any lawful activity. of Delaware located at 401 Federal Any lawful activity. of Corps., John B. Townsend Bldg., NOTICE OF QUALIFICATION of Street – Suite 4 Dover, DE 19901. 401 Federal St., Ste. 4, Dover, DE Notice of Formation of Professional Rosenbloom Advisors, LLC. Arts of Org Dissolution Date: Perpetual. Purpose: NOTICE OF FORMATION OF Kathryn 19901. Purpose: Any lawful activity. Limited Liability Company: wanta- filed with Secy of State of NY (SSNY) Any lawful act or activity. Smerling, PH.D. LCSW, PLLC Articles architect PLLC. Articles of Organization on 4/11/13. Office location: NY County. of Organization filed with the Secretary NOTICE OF FORMATION of DORIA filed with Secretary of State of NY LLC formed in IL on 10/18/12. SSNY 35 GROVE LLC, a domestic LLC, of State of NY (SSNY) on 5/28/13. ENTERPRISES NYC, LLC Arts. Of Org. (SSNY) on 6/6/2013. Office Location: designated agent upon whom process Arts. of Org. filed with the SSNY on Office location: NEW YORK county. filed with Secy. of State of NY (SSNY) NY County. SSNY has been designated may be served and shall mail copy of 5/10/13. Office location: New York SSNY has been designated as agent on 07/30/13. Office Location: NY as agent upon whom process may be process against LLC to principal County. SSNY is designated as agent upon whom process against it may be County. SSNY designated as agent of served and shall mail copy of process business: 1551 Mill Trail, Highland upon whom process against the LLC served. The Post Office address to LLC upon whom process against it may against PLLC to principal business Park, IL 60035. Cert. of LLC filed may be served. SSNY shall mail process which the SSNY shall mail a copy of be served. SSNY shall mail process address: 66 Crosby Street, #3D, New with Secy of State of IL located at: to: The LLC, 489 Fifth Ave., 7th Fl, any process against the PLLC served to Alan M. Friedman, Esq., Kellner York, NY, 10012. Purpose/character 213 State Capitol, Springfield, IL NY, NY 10017. General Purposes. upon him/her is: 11 Sherri Drive, Herlihy Getty & Friedman, LLP, 470 of PLLC: any lawful act. 62756. Purpose: any lawful act. Manalapan, NJ 07726. The principal Park Avenue South, 7N, NY, NY AQUARIUM LLC, a domestic LLC, Arts. business address of the PLLC is: 115 10016. Purpose: Any lawful activity. Notice of Formation of Matia, LLC. Notice of Formation of WSTC EVENTS of Org. filed with the SSNY on 7/3/13. E. 86th Street, New York, NY 10028. Arts. of Org. filed with Secy. of State LLC. Arts. of Org. filed with Secy. of Office location: New York County. Purpose: any lawful act or activity. Notice of Formation of Marca Studio of NY (SSNY) on 7/23/13. Office State of NY (SSNY) on 05/21/13. Office SSNY is designated as agent upon LLC. Arts of Org filed with Secy of location: NY County. SSNY designated location: NY County. Princ. office of whom process against the LLC may Notice of Formation of 9 Vandam State of NY (SSNY) on 6/27/13. as agent of LLC upon whom process LLC: 1140 Broadway, 4th Fl., NY, NY be served. SSNY shall mail process Street Associates I LLC. Arts. of Office location: NY County. SSNY against it may be served. SSNY 10001. SSNY designated as agent of to: Gregor S. Bailar and Theresa Y. Org. filed with Secy. of State of NY designated agent upon process may be shall mail process to: John E. Cable, LLC upon whom process against it may Hong, 6653 Sorrel St., Mclean, VA (SSNY) on 7/25/13. Office location: served and shall mail copy of process 234 West 21st St., #565, NY, NY be served. SSNY shall mail process 22101. General Purposes. NY County. SSNY designated as against LLC to principal business 10011, also the registered agent. to the LLC at the addr. of its princ. agent of LLC upon whom process address: 533 E 6th Street, #5, NY, Purpose: any lawful activities. office. Purpose: Any lawful activity. NOTICE OF FORMATION of against it may be served. SSNY NY 10009. Purpose: any lawful act. BLUEOCEAN EQUITY MANAGEMENT shall mail process to: The Company, APPLE SEEDS PCVST LLC, a Notice of formation of limited liability LLC. Arts of Org. filed with NY Secy 401 West 45th St., NY, NY 10036. NOTICE OF QUALIFICATION of domestic LLC , Arts. of Org. filed with company (LLC). Name: SRAR, LLC. of State (SSNY) on 05/14/2013. Office Purpose: any lawful activities. PRODUCT RANCH LLC. Authority the SSNY on 5/23/13. Office location: Articles of Organization filed with location: New York County. SSNY is filed with Secy of State of NY (SSNY) New York County. SSNY is designated Secretary of State of New York (SSNY) designated as agent of LLC upon whom Notice of Formation of KRR Queens 3 on 07/16/13. Office location: NY as agent upon whom process against on 6/5/2013. NY office location: NY process against it may be served. LLC. Arts. of Org. filed with Secy. of County. LLC formed in NJ on 01/11/09. the LLC may be served. SSNY shall County. SSNY has been designated SSNY shall mail process to: 590 State of NY (SSNY) on 7/3/13. Office SSNY designated agent upon whom mail process to: The LLC, 10 W 25th as agent of the LLC upon whom Madison Ave., 34th Fl., New York, NY location: NY County. SSNY designated process may be served and shall St., NY, NY 10010. General Purposes. process against it may be served. The 10022. Purpose: any lawful activity. as agent of LLC upon whom process mail copy of process against LLC to: post office address to which the SSNY against it may be served. SSNY shall 65 E 3RD ST, APT F4, NY, NY 10003. Good Melts LLC. Arts. of Org. filed shall mail a copy of any process Notice of Formation of Princeton mail process to: Richard A. Merhige, Principal business address: 65 E 3RD with Secy. of State of NY (SSNY) on against the LLC served upon him/ Greene LLC, Art. of Org. filed Sec’y c/o Regency International, 11 East ST, APT F4, NEW YORK, NY 10003. 06/20/13. Off. loc.: New York Co. her is 1501 Broadway, Ste 2600, NY of State (SSNY) 11/30/12. Office 26th St., NY, NY 10010. Purpose: NJ address: 19 MOURNING DOVE SSNY designated as agent of LLC 10036. Purpose: Any lawful purpose. location: NY County. SSNY designated any lawful activities. CT, HACKETTSTOWN, NJ 07840. upon whom process may be served. as agent of LLC upon whom process Cert. of LLC filed with Secy of State of SSNY shall mail process to 300 E Notice of Formation of Maine Line against it may be served. SSNY shall GOLDEN CAPITAL GUARANTY LLC, NJ: NEW JERSEY DEPT. OF STATE, 62nd St., Ste. 1702, New York, NY Productions, LLC. Arts. of Org. filed mail copy of process to 375 Park a domestic LLC, Arts. of Org. filed 225 W. STATE ST., TRENTON, NJ 10065. Purpose: General. with Secy. of State of NY (SSNY) on Ave., Ste. 3401, NY, NY 10152. with the SSNY on 3/19/13. Office 08625. Purpose: any lawful act. 7/2/13. Office location: NY County. Purpose: any lawful activities. location: New York County. SSNY is Notice of Formation of HDL NY L.P. SSNY designated as agent of LLC designated as agent upon whom NOTICE OF FORMATION OF BCS Cert. of LP filed with Secy. of State upon whom process against it may be Notice of Formation of The process against the LLC may be Executive Security, LLC. Arts of Org of NY (SSNY) on 07/19/13. Office served. SSNY shall mail process to Brooksville Gates Company LLC. Arts. served. SSNY shall mail process to: filed with Secy of State of NY (SSNY) location: NY County. Latest date on princ. bus. loc.: The LLC, 47 Great of Org. filed with NY Dept. of State on The LLC, 575 Madison Ave, 10th Fl., on 7/11/13. Office location: NY which the LP may dissolve is 7/16/2113. Jones St., New York, NY 10012-1196. 3/11/13. Office location: NY County. NY, NY 10022. General Purposes. County. SSNY designated as agent SSNY designated as agent of LP Purpose: any lawful activity. Sec. of State designated agent of upon whom process may be served upon whom process against it may LLC upon whom process against it NCC360 LLC, a domestic LLC, Arts. and shall mail copy of process be served. SSNY shall mail process 719 WEST HAMILTON HEIGHTS may be served and shall mail of Org. filed with the SSNY on against LLC to: 115 Stuyvesant to Satterlee Stephens Burke & Burke ASSOCIATES, LLC, a foreign LLC, process to: c/o CompassRock Real 5/2/13. Office location: New York Place, Staten Island, NY 10301. LLP, Attn: Kirk O’Ferrall, 230 Park filed with the SSNY on 6/21/13. Estate, 810 7th Ave., 40th Fl., NY, NY County. SSNY is designated as Principal business address: 1441 Ave., Ste. 1130, NY, NY 10169. Office location: New York County. 10019, principal business address. agent upon whom process against Broadway, 3rd Flr, NY, NY 10018. Name and addr. of each general SSNY is designated as agent upon Purpose: all lawful purposes. the LLC may be served. SSNY shall Purpose: any lawful act. partner are available from SSNY. whom process against the LLC may mail process to: Caputo & Boncardo, Purpose: Any lawful activity. be served. SSNY shall mail process NOTICE OF FORMATION OF LIMITED CPAS, 538 Westchester Ave., Rye Notice of Formation of City Hall to: The LLC, 369 E. 62nd St., NY, NY LIABILITY COMPANY. NAME: LKD Brook, NY 10573. General Purposes. Coffee LLC. Arts. of Org. filed with NOTICE OF FORMATION OF 10021. General Purposes. PARTNERS 2004, LLC. Articles of NY Dept. of State on 2/20/13. Office Dominique Levy LLC. Articles of Organization were filed with the Notice of Formation of JOLIET location: NY County. Princ. bus. addr.: Organization filed with the Secretary Notice of Formation of EGL Media Secretary of State of New York CROSSINGS HOLDINGS LLC. Arts. 255 Canal St., Ste. 301, NY, NY of State of NY (SSNY) on 5/23/13. LLC. Arts. of Org. filed with Secy. of (SSNY) on 03/19/04. The latest date of Org. filed with Secy. of State of NY 10013. Sec. of State designated Office location: New York County. State of NY (SSNY) on 7/9/13. of dissolution is 07/31/2099. Office (SSNY) on 08/09/13. Office location: agent of LLC upon whom process SSNY designated as agent upon Office location: NY County. SSNY location: New York County. SSNY NY County. Princ. office of LLC: c/o against it may be served and shall whom process may be served and designated as agent of LLC upon whom has been designated as agent of the Cohen Commercial Properties, 9 E. mail process to: c/o Justin M. shall mail copy of process against process against it may be served. LLC upon whom process against it 40th St., 10th Fl., NY, NY 10016. Zamparelli, Esq., Withers Bergman LLC to: Dontzin, Nagy, and Fleissig SSNY shall mail process to: The LLC, may be served. SSNY shall mail a SSNY designated as agent of LLC LLP, 430 Park Ave., 10th Fl., NY, NY LLP, 980 Madison Avenue, NY, NY 415 East 52nd St., NY, NY 10022. copy of process to the LLC, c/o upon whom process against it may 10022. Purpose: all lawful purposes. 10075, Attention: Matthew S. Purpose: any lawful activities. Lawrence P. Wolf, Esq., Six Hemlock be served. SSNY shall mail process Dontzin. Principal business address: Hills, Chappaqua, New York 10514. to the LLC at the addr. of its princ. Notice of Qualification of 19 West 24th 30 E 74th St, NY, NY 10075. Notice of Qualification of Amylin Purpose: For any lawful purpose. office. Purpose: Any lawful activity. Street Owner LLC. Authority filed Purpose: any lawful act. Pharmaceuticals, LLC. Authority filed with NY Dept. of State on 6/11/13. with NY Dept. of State on 7/1/13. NOTICE OF FORMATION OF LIMITED Notice of Qualification of APC River Office location: NY County. Princ. NOTICE OF FORMATION OF LIMITED Office location: NY County. Princ. LIABILITY COMPANY. NAME: Partners, LLC. Articles of Organization bus. addr.: 805 3rd Ave., 7th Fl., NY, LIABILITY COMPANY. NAME: 534 bus. addr.: 345 Park Ave., 3rd Fl., CHADDESLEY LLC. Articles of filed with the Secretary of State of NY NY 10022. LLC formed in DE on WEST 178 EQUITIES, LLC. Articles of NY, NY 10154. LLC formed in DE on Organization were filed with the (SSNY) on 6/13/13. Office location: 6/4/13. NY Sec. of State designated Organization were filed with the 8/8/12. NY Sec. of State designated Secretary of State of New York NY County. The LLC was formed in agent of LLC upon whom process Secretary of State of New York agent of LLC upon whom process (SSNY) on 07/09/13. The latest date DE on 2/6/13. SSNY is the designated against it may be served and shall (SSNY) on 07/22/13. The latest date against it may be served and shall of dissolution is 12/31/2113. Office agent upon whom process may be mail process to: c/o CT Corporation of dissolution is 07/18/2112. Office mail process to: c/o CT Corporation location: New York County. SSNY served and shall mail a copy of any System, 111 8th Ave., NY, NY 10011, location: New York County. SSNY has System, 111 8th Ave., NY, NY 10011, has been designated as agent of the process against the LLC to its princi- regd. agent upon whom process may been designated as agent of the LLC regd. agent upon whom process may LLC upon whom process against it pal business address: 60 Madison be served. DE addr. of LLC: 1209 upon whom process against it may be be served. DE addr. of LLC: 1209 may be served. SSNY shall mail a Avenue, Ste 1215, NY, NY 10010. Orange St., Wilmington, DE 19801. served. SSNY shall mail a copy of Orange St., Wilmington, DE 19801. copy of process to the LLC, 721-725 The Certificate of LLC is filed with Cert. of Form. filed with DE Sec. of process to the LLC, 31-10 37th Avenue, Cert. of Form. filed with DE Sec. of Fifth Avenue, Unit 35H, New York, the Secretary of State of Delaware, State, 401 Federal St., Dover, DE Suite 500, Long Island City, New York State, 401 Federal St., Dover, DE New York 10022. Purpose: For any 401 Federal Street, Ste 4, Dover, DE 19901. Purpose: all lawful purposes. 11101. Purpose: For any lawful purpose. 19901. Purpose: all lawful purposes. lawful purpose. 19901. Purpose: For any lawful act.

August 26, 2013 | Crain’s New York Business | 35 20130826-NEWS--0036-NAT-CCI-CN_-- 8/23/2013 11:49 AM Page 1

FOR THE RECORD

Weinroth, owed $2,250,000; Craig system. Bid documents may be down- term lease for 1,600 square feet at 130 Lehmann, owed $487,000; and Larry loaded at www.nyc.gov/html/dof/html/ Montague St. in Brooklyn. The spa will ABOUT THIS SECTION Klein, owed $330,000. business/services_vendors_proposals take space in the residential-and- FOR THE RECORD is a weekly listing of information from the public record that .shtml. To make inquiries, contact commercial building. The tenant and can help businesspeople in the New York area find opportunities, potential Robert Aboulafia at (212) 669-4262 or the landlord, Thor 130 Montague GOVERNMENT CONTRACT [email protected]. Street, were represented by James Dario new clients and updates on competitors. OPPORTUNITIES Jr. of Kalmon Dolgin Affiliates. The To ask questions or get more information on this section, contact Crain’s ● Economic Development Corp. asking rent was $150,000 per year. research department at [email protected]. Following are selected contract Requests proposals by 4 p.m. on Sept. 4 opportunities recently announced by New for environmental analysis services on York City agencies.To learn how to sell projects for community development STOCK TRANSACTIONS The video and audio equipment rental goods and services to city government, visit block grant-disaster recovery programs. NEW IN TOWN store opened in Bushwick. It is the www.nyc.gov/selltonyc. For a searchable To make inquiries or to obtain bid Following are recent insider transactions at second location for the company, which database of current procurement notices, documents, contact Maryann New York’s largest publicly held companies Companies that would like to have details has a store at 133 W. 19th St. in Chelsea. visit www.nyc.gov/cityrecord. Catalano at (212) 312-3969 or filed with the Securities and Exchange of openings published should submit [email protected]. Commission by executives and major descriptions following this format to CONSTRUCTION SERVICES shareholders.The information was [email protected], with BANKRUPTCIES ● Brooklyn Bridge Park Corp. obtained from Thomson Reuters. “New in Town” in the subject line. Requests proposals by 4 p.m. on Sept. 20 REAL ESTATE DEALS The following listings are selected from the for the provision of general construction ● L-3 Communications Holdings Inc. (LLL) ● Etienne Aigner most recent available filings by companies services at the Main and John Street site, Companies that would like their recent Curtis Brunson, executive vice president 65 Greene St., Manhattan seeking bankruptcy protection in the as part of the Brooklyn Bridge Park transactions to appear in these listings should of corporate strategy and development, The leather-goods label opened in SoHo. Southern and Eastern Districts of New Project.To obtain copies of the bid, email descriptions to NDholakia@ exercised options on 102,885 shares of It is the first dedicated store for the brand. York. Information was obtained from U.S. contact Davin Mills at (212) 661-6624 crainsnewyork .com, with “Real estate common stock at prices ranging from Bankruptcy Court records available on or [email protected]. transaction” in the subject line, or enter them $69.18 to $92.31 on Aug. 5, in a ● Play Public Access to Court Electronic Records. online at crainsnewyork.com/ submitadeal. transaction worth $7,835,555. On the 1 E. 27th St., Manhattan ● City University of New York same day, he sold 102,885 shares of The restaurant opened inside the ● Allen Dry Cleaners Seeks competitive sealed proposals by COMMERCIAL common stock at prices ranging from Museum of Sex in the Flatiron district. 387 Bedford Park Blvd., Bronx 11:30 a.m. on Sept. 26 for a safety consul- ● The Joester Loria Group signed a $93.28 to $93.76, in a transaction worth It features a menu of sandwiches and Filed for Chapter 7 bankruptcy protec- tant at the new New York City College of lease for 8,500 square feet at 30 Irving $9,606,490. He now directly holds sweets, as well as a full bar. tion on Aug. 13.The filing cites estimat- Technology academic building site, at Place. The licensing agency will move its 60,106 shares. ed liabilities of $100,001 to $500,000 and 285 Jay St. in Brooklyn. Bid documents headquarters to the building’s 10th floor estimated assets of $100,001 to $500,000. may be obtained at http://cuny.sciame in February 2014. The tenant was John S. Mega, president, microwave COMPANY MOVES .com.To make inquiries, contact Melissa represented by Peter Newman and group, exercised options on 55,451 ● Craig Michaels Inc. Steeves at (212) 232-2200 or Diana Siegel of the Handler Real Estate shares of common stock at prices Companies that would like to have recent 75 Broad St., Manhattan [email protected]. Organization. The landlord, Samco ranging from $69.18 to $86.41 on Aug. moves published should submit descriptions Filed for Chapter 7 bankruptcy Properties, was represented by Jeffrey 6, in a transaction worth $4,139,360. On to [email protected], with protection on Aug. 5. The filing cites GOODS AND SERVICES Smith of Samco Management. The the same day, he sold 55,451 shares of “Company Moves” in the subject line. estimated liabilities of $1,000,001 to ● Department of Finance asking rent was $46 per square foot. common stock at prices ranging from $10 million and estimated assets of $0 to Requests proposals by 3 p.m. on Sept. 20 $93.00 to $93.33, in a transaction worth ● CSI Rentals $50,000. The debtors with the largest for a contractor to design, develop, test, RETAIL $5,163,729. He now directly holds 1138 Flushing Ave., Brooklyn unsecured claims are Stephen D. implement and maintain a business tax ● European Wax Center signed a long- 16,239 shares. Ⅲ

TO PLACE A CLASSIFIED AD, CALL 1-800-444-6007 OR VISIT CRAINSNEWYORK.COM PUBLIC & LEGAL NOTICES Notice of formation of Urban Island Notice of Formation of Limited Liability Notice of formation of Limited Liability Notice of Formation of CPW 1210 LLC. Notice of Qualification of Avid Games LLC. Articles of Organization Company (LLC). Name: LEGATO Company (“LLC”). Name: Soundview Arts. of Org. filed with Secy. of State Technology Professionals, LLC. filed with the Secretary of State of NY JURIS, LLC. Articles of Organization Senior Housing Developers LLC. of NY (SSNY) on 07/25/13. Office Authority filed with Secy. of State of NY (SSNY) on 05/28/13. Office location: filed by the Department of State of Articles of Organization filed with the location: NY County. SSNY designated (SSNY) on 8/14/13. Office location: New York County. SSNY has been New York on: 07/31/2013. Office Secretary of State of the State of New as agent of LLC upon whom process NY County. LLC formed in Maryland designated as agent upon whom location: County of New York. York (“SSNY”) on 8/12/13. N.Y. office against it may be served. SSNY shall (MD) on 8/8/03. SSNY designated process against it may be served. Purpose: any and all lawful activities. location: New York County. The SSNY mail process to c/o McLaughlin & as agent of LLC upon whom process The Post Office address to which the Secretary of State of New York has been designated as agent of the Stern, LLP, Attn: Geoffry R. Handler, against it may be served. SSNY SSNY shall mail a copy of any (SSNY) designated as agent of LLC LLC upon whom process against it may 260 Madison Ave., NY, NY 10016. shall mail process to: National process against the LLC served upon whom process against it may be served. The SSNY shall mail a Purpose: Any lawful activity. Registered Agents, Inc., 111 Eighth upon him/her is: Christopher G. Reid be served. SSNY shall mail a copy of copy of any process to LLC, c\o CPC Ave., NY, NY 10011, also the registered Esq., 116 Third Pl. #3, Brooklyn, NY process to: c/o Schwartzman Garelik Resources, Inc., 28 East 28th Street, Name of LLC: Brodmktg LLC. Arts. agent. Address to be maintained in 11231. The principal business Walker & Troy, P.C., 355 Lexington 9th Floor, New York, NY 10016. Name/ of Org. filed with NY Dept. of State: MD: 6996 Columbia Gateway Dr., Ste. address of the LLC is: 690 Fort Avenue, New York, NY 10017. address of each member available from 7/24/13. Office loc.: NY Co. Sec. of 204, Columbia, MD 21046. Arts of Washington Ave, Apt 6K, New York, SSNY. Purpose: any lawful activity. State designated agent of LLC upon Org. filed with the MD Dept. of NY 10040. Duration: Perpetual. GLEIT & DUSZAK, LLP a domestic whom process against it may be Assessment and Taxation, c/o Robert Purpose: any lawful act or activity. LLP, filed with the SSNY on 7/16/13. NOTICE OF QUALIFICATION of served and shall mail process to: c/o E. Young, 301 W. Preston St., Office Location: New York County. SunBurger 4 LLC. Authority filed with Business Filings Inc., 187 Wolf Rd., Baltimore, MD 21201. Purpose: any Notice of Formation of Interiors by SSNY is designated as agent upon Secy of State of NY (SSNY) on Ste. 101, Albany, NY 12205, regd. lawful activities. Elissa, LLC. Arts. of Org. filed with whom process against the LLP may 7/2/13. Office location: NY County. agt. upon whom process may be Secy. of State of NY (SSNY) on be served. SSNY shall mail process LLC formed in DE on 4/19/13. SSNY served. Purpose: any lawful act. NOTICE OF FORMATION OF LIMITED 7/25/13. Office location: NY County. to: The LLP, 401 Broadway, Ste. 601, designated agent upon whom LIABILITY COMPANY. NAME: 41 WEST SSNY designated as agent of LLC NY, NY 10013. Purpose: Law. process may be served and shall Notice is hereby given that a license 47 LLC. Articles of Organization were upon whom process against it may mail copy of process against LLC to number 1272817 for a restuarant beer filed with the Secretary of State of be served. SSNY shall mail process Notice is hereby given that a license principal business address: 261 license has been applied for by New York (SSNY) on 04/26/02. Office to: National Corporate Research, number 1272810 for an on premises Madison Ave, 9/Fl, NY, NY 10016. AGORIANI INC. under the Alcoholic location: New York County. SSNY Ltd., 10 E. 40th St., 10th Fl., NY, NY liquor license has been applied for by DE address of LLC: c/o CSC, 2711 Beverage Control law for premises has been designated as agent of the 10016, the registered agent upon the MACCG LLC d/b/a/Taverna Centerville Rd, Ste 400, Wilmington, located at 2 St. Mark’s Place, New LLC upon whom process against it whom process may be served. Kyclades under the Alcoholic DE 19808. Cert of LLC filed with York, New York 10003, County of New may be served. SSNY shall mail a Purpose: any lawful activity. Beverage Control law for premises Secy of State of DE located: 401 York, for on-premises consumption. copy of process to the LLC, c/o A & located at 228 1st Avenue, New York, Federal St, Ste 4, Dover, DE 19901. K, 47 West 46th Street, New York, Notice of Qualification of Baker Bros. New York 10009, County of New Purpose: any lawful act. Notice of Qualification of L&L 380 New York 10036. Purpose: For any Advisors LP. Authority filed with NY York, for on-premises consumption. MADISON LEASING AGENT LLC. lawful purpose. Dept. of State on 7/30/13. Office Notice of Qualification of AG Rio Authority filed with Secy. of State of NY location: NY County. Princ. bus. addr.: Notice of formation of Limited Liability Grande FMC GP LLC. Authority filed (SSNY) on 08/08/13. Office location: NOTICE OF QUALIFICATION of 667 Madison Ave., 21st Fl., NY, NY Company (“LLC”). Name: Soundview with NY Dept. of State on 8/5/13. NY County. LLC formed in Delaware MIDAEZ LLC. App for Authority filed 10065. LP formed in DE on 1/3/00. NY Senior Housing Managers LLC. Office location: NY County. LLC formed (DE) on 08/06/13. Princ. office of LLC: with Secy of State of NY (SSNY) on Sec. of State designated agent of LP Articles of Organization filed with the in DE on 4/26/13. NY Sec. of State c/o L&L Holding Company, LLC, 142 12/5/12. Office location: NY County. upon whom process against it may be Secretary of State of the State of New designated agent of LLC upon whom W. 57th St., NY, NY 10019. SSNY LLC formed in FL on 8/15/12. SSNY served and shall mail process to: c/o York (“SSNY”) on 8/12/13. N.Y. office process against it may be served and designated as agent of LLC upon whom designated agent upon whom process CT Corporation System, 111 8th Ave., location: New York County. The SSNY shall mail process to: c/o Angelo process against it may be served. SSNY may be served and shall mail copy NY, NY 10011, regd. agent upon whom has been designated as agent of the Gordon & Co., L.P., 245 Park Ave., 26th shall mail process to c/o Corporation of process against LLC to: KIM process may be served. DE addr. of LLC upon whom process against it Fl., NY, NY 10167, principal business Service Co., 80 State St., Albany, NY MARKS - 2136 NE 123rd STREET, LP: 1209 Orange St., Wilmington, may be served. The SSNY shall mail a address. DE address of LLC: c/o The 12207-2543. DE addr. of LLC: 2711 NORTH MIAMI, FL 33181. Cert of DE 19801. Name/addr. of genl. ptr. copy of any process to LLC, c\o CPC Corporation Trust Co., 1209 Orange Centerville Rd., Ste. 400, Wilmington, LLC filed with Secy of State of FL available from NY Sec. of State. Cert. Resources, Inc., 28 East 28th Street, St., Wilmington, DE 19801. Cert. of DE 19808. Arts. of Org. filed with Secy. located: FL DEPT. OF STATE, DIVI of LP filed with DE Sec. of State, 401 9th Floor, New York, NY 10016. Name/ Form. filed with DE Sec. of State, of State, Div. of Corps., 401 Federal OF CORPS, 2661 EXECUTIVE CTR Federal St., Dover, DE 19901. address of each member available from Townsend Bldg., Dover, DE 19901. St., Ste. 4, Dover, DE 19901. Purpose: CIR, TALLAHASSEE, FL 32301. Purpose: all lawful purposes. SSNY. Purpose: any lawful activity. Purpose: all lawful purposes. Any lawful activity. Purpose: any lawful act.

36 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0037-NAT-CCI-CN_-- 8/22/2013 7:03 PM Page 1

IN THE BOROUGHS QUEENS

senior director of development. It is as an employer,however,that Poor area, big project the developer is likely to make its biggest impact. Mr. Schenkel noted Continued from Page 3 Some others simply want some that a community-based program By all accounts, the development assurance that the arrival of thou- will offer everything from construc- would be transformative for the area, sands of upscale neighbors will ac- tion jobs to building-management bringing more than 6,000 new resi- tually have some benefit for existing positions. dents.Still,the sheer scale of the plan residents. and the threat that it could over- “We don’t need all these people A jump in jobs whelm the area’s already strained in- moving into our neighborhood,” “We have a great need for skilled frastructure is said Corona Halsey, a 25-year-old jobs,” said Ms. Coger. “The lack of causing alarm third-generation resident of the As- them results in far too many of our for some. 1659 toria Houses. “What is it going to young people going to jail.” Once, Residents FIRST EUROPEAN mean for us?” residents could work in the area’s fac- SETTLER, William note that only Hallet, arrives. By addressing such doubts early tories and warehouses.With most of three bus lines and often, the developer has won those long gone, a likely rezoning of and one subway broad support for its plans. Among much of the remaining industrial serve the area, 20,000 other things, Lincoln Equities has space on the peninsula to residential and that it lacks RESIDENTS in pledged to build a 35,000-square- will usher in different sorts of jobs as Astoria Houses basic amenities foot, moderately priced supermar- philip murtha an expected wave of new apartment such as a super- ket in the first building it will erect GRAND PLANS: Lincoln Equities Group hopes to break ground next year on a $1 billion towers crests. market and 50% on the site. Lincoln Equities also residential project in Hallets Point, officially known as Queens’ poorest community. Another big developer has al- bank. Mean- PROJECTED points out that its project will in- ready submitted renderings to the while, a nearby POPULATION clude nearly 500 below-market-rate Department of City Planning for an Costco is not an RISE from new units for seniors, an additional bus community,” he said. “We want to assimilate into an $800 million project,dubbed Astoria option for many developments line for the neighborhood and a new existing community,and it’s impor- Cove. It is spearheaded by the Alma residents be- elementary school in one of the tow- Not carpetbaggers tant to show them we are not com- Realty Corp., and would add seven cause it charges a membership fee ers via a cooperative agreement with Among the converts is Claudia ing here as carpetbaggers,” said buildings with 1,700 apartment units and until recently did not accept the School Construction Authority. Coger, who has lived in the Astoria Robert Schenkel, Lincoln Equities’ on the north side of the peninsula. food stamps. “Oftentimes, developers will Houses since 1955 and is president parachute into a neighborhood and of the tenants’association.She notes Strain on infrastructure have grand plans to insulate people,” that the new senior housing will al- City Councilman Peter Vallone said Mitchell G. Taylor, founder of low older residents, who raised their Jr., who represents the neighbor- the East River Development Al- families there and now live alone, to BRAND NEW RETAIL hood, is among those concerned liance, a nonprofit organization relocate to smaller apartments and about the possibility of strain on the geared to expand the economic op- stay in the neighborhood. area’s infrastructure. He is asking portunities for public-housing resi- Children, too, will see a benefit, the city to extend ferry service to dents.“That is not the case here.”In- and they won’t have to wait long. As 3 WEST 36TH STREET Hallets Point from Manhattan. stead, he credits Lincoln Equities a sign of its good faith, the develop- Mayor Michael Bloomberg has in- with years of careful planning and er has agreed to refurbish a play- 3,600 SF Ground dicated he’s open to the idea, which consensus building. “They are now ground within the Astoria Houses is currently under study by the city’s bringing much-needed resources to complex and to spruce up railings 1,500 SF All Windowed 2nd Floor Economic Development Corp. the area and trying to be a part of the along the waterfront. 1,400 SF Basement At Base of New Luxury Residential Tower dessert and coffee café is facing a gently used items to be donated. FROM ballooning rent on its 620-square- FlatRate will then move the boxes Vented, Ideal Restaurant, Financial Services, etc. AROUND foot shop-front at 86 Fifth Ave.,five directly to the Salvation Army’s dis- Adjacent Setai, Empire State Building, Lord & Taylor blocks from Barclays. The landlord tribution center nearby, where items THE CITY is now demanding $13,500 a will be sent to the nonprofit’s thrift Neil Polon · 212-686-5252 · [email protected] month, a multiple of the current stores across the city. Empire Management QUEENS rent. Chocolate Room owner Jon “One of the most common times Retailers wilting in Josepher quickly submitted a people give thought to an item they counteroffer of $7,000 a month, but don’t need is when they have to NATIONWIDE COMMERCIAL AUCTIONS Barclays’ shadow the landlord wouldn’t budge. move it,” said Tim Raines, market- Area landowners are justifying ing manager for the Salvation Army. $1+ BILLION IN COMMERCIAL PROPERTIES & NOTES IN 33 STATES )($785('127(66(&85('%<1(:<25.&200(5&,$/5($/(67$7( Talk of skyrocketing store rents in the their rent hikes by pointing to the big “FlatRate has made that decision as SEARCH CODE: N113-500 blocks around the Barclays Center, at increase in business that the nine- simple as placing the item into a Brooklyn, NY the corner of Atlantic and Flatbush month-old, 18,000-seat arena will different box.” 0XOWL)DPLO\Ř8QLWV avenues on the edge of downtown surely bring, more than enough, they FlatRate, meanwhile, said its 8QSDLG%DODQFH Brooklyn, has been percolating since say,to offset the increased costs of oc- customers were often looking to Starting Bid: $250,000 the project’s announcement in 2008. cupancy. The problem is that for give away items but didn’t have an 'DPRQ5RZODQG Since then the talk has reached a many store and restaurant owners in easy way to do so. It was a logical so- SEP 9 - 11  crescendo as landlords within a half- the area the big jump in revenue is lution to streamline the process for GURZODQG#DXFWLRQFRP mile radius have begun to jack up still nowhere to be seen. customers, and the neighborhood SEARCH CODE: N113-610 retail rents. “My numbers are flat right now connection made the Salvation 'HHU3DUN1< One of the latest victims of the from a year ago,” said Mr. Josepher, Army the right partner. ,QGXVWULDOŘ6) trend is Park Slope veteran the who is looking as far south as 12th “It all aligned when we started 8QSDLG%DODQFH Chocolate Room. The 10-year-old Street for a new location.“It’s not like working with them,” said Andrea Starting Bid: $2,500,000 thousands of people are out Boccard, vice president of market- 6DO)XVFKHWWR looking to spend their money.” ing at FlatRate. BARCLAYS CENTER: SEP 10 - 12  Boon to businesses The Salvation Army is able to VIXVFKHWWR#DXFWLRQFRP nearby? Landlords THE BRONX handle the volume of donations: Its %URNHUFRRSRUŵQGHUőVIHHDYDLODEOHRQVHOHFWDVVHWV think so. Bronx distribution center encom- 3OHDVHYLVLWZZZDXFWLRQFRPFRPPHUFLDOIRUFRQWDFWLQIRUPDWLRQ$OODVVHWVDXFWLRQHGLQGLYLGXDOO\ View all 180+ assets at www.auction.com/commercial Mover goes flat passes more than 40,000 square feet, including an 11,000-square-foot BROKERS AND OWNERS, SELL YOUR COMMERCIAL OR RESIDENTIAL PROPERTY out for the Army family store. The proceeds of the %URNHUVUHWDLQ\RXUFRPPLVVLRQ1RDXFWLRQOLVWLQJIHHV&DOORUYLVLWZZZDXFWLRQFRPVHOO USE THE SEARCH CODE TO EASILY FIND A FEATURED ASSET. EXAMPLE: FlatRate Moving is spread- thrift-store sales will go to support 6LPSO\HQWHUWKHFRGHLQWKH$XFWLRQFRPVHDUFKEDU % ing the love as it launches a its Adult Rehabilitation Center on new upcycling program with West 48th Street in Manhattan, WWW.AUCTION.COM The nation’s leading online a neighbor in the South one of 100 such centers across real estate marketplace. Bronx—the Salvation Army. the country. ',6&/$,0(57KHLQIRUPDWLRQEHLQJSURYLGHGLQFRQQHFWLRQZLWKWKHDXFWLRQLVIRULQIRUPDWLRQDOSXUSRVHVRQO\1RUHSUHVHQWDWLRQVRUZDUUDQWLHVDUHEHLQJPDGHDVWRWKH DFFXUDF\RUFRPSOHWHQHVVRIDQ\LQIRUPDWLRQSURYLGHG'RFXPHQWVDQGSLFWXUHVPD\QRWUHSUHVHQWWKHFXUUHQWFRQGLWLRQRIWKHSURSHUW\DWWKHWLPHRIVDOH$OOSURSHUWLHV Starting Aug. 1, the moving FlatRate Moving hopes to ex- QRWHVDQGRUORDQSRROVDUHEHLQJVROGœ$6,6:+(5(,6:,7+$//)$8/76$1'/,0,7$7,216ŔDQGDOOVDOHVDUHœ),1$/Ŕ3URVSHFWLYHELGGHUVDUHHQFRXUDJHGWRFRQGXFWWKHLU RZQGXHGLOLJHQFHDQGLQYHVWLJDWHDOOPDWWHUVUHODWLQJWRWKHSURSHUWLHVQRWHVDQGRUORDQSRROWKDWWKH\DUHLQWHUHVWHGLQSXUFKDVLQJ1RSURVSHFWLYHELGGHUPD\WUHVSDVVRQ company began providing its pand the service to other locations DQ\SURSHUW\GLVWXUEWKHRFFXSDQWVRUFRQWDFWWKHERUURZHUVLIDQ\,WLVUHFRPPHQGHGWKDWSURVSHFWLYHELGGHUVVHHNLQGHSHQGHQWDGYLFHLQFOXGLQJOHJDODGYLFHWRSHUIRUP GXHGLOLJHQFHDQGWRIXOO\XQGHUVWDQGWKHDXFWLRQSURFHVVLQJHQHUDO New York City customers across the U.S. in partnership with (TXDO+RXVLQJ2SSRUWXQLW\$XFWLRQFRP//&DQGLWVDIŵOLDWHVPDLQWDLQDŵUPFRPPLWPHQWWRSURYLGLQJSURIHVVLRQDOVHUYLFHVWRDQ\SHUVRQUHJDUGOHVVRIUDFHFRORU UHOLJLRQVH[KDQGLFDSIDPLOLDOVWDWXVRUQDWLRQDORULJLQ7KH&RPSDQ\VKDOOQRWNQRZLQJO\EHDSDUW\WRDQ\SODQRUDJUHHPHQWWRGLVFULPLQDWHDJDLQVWDSHUVRQRU with two specially marked the Salvation Army. SHUVRQVRQWKHEDVLVRIWKHVHRUDQ\VLPLODUSUHMXGLFHVRUSUDFWLFHV6XEMHFWWRWKH$XFWLRQ7HUPVDQG&RQGLWLRQVSRVWHGIRUWKHHYHQW$XFWLRQFRP//&0DXFKO\,UYLQH &$  1<$XFWLRQFRP5(%UNU$XFWLRQHHU0LFKDHO(&DUU0DUN%XOH]LXN buck ennis boxes they can fill with new or —laura lorenzetti

August 26, 2013 | Crain’s New York Business | 37 Two-cities tale explained Thompson’s

Continued from Page 1 standard of living as someone mak- Speaker Christine Quinn,his oppo- we have the worst income disparity ing $50,000 in Houston, in large nents have taken notice. Even Re- not-so-risky since the Great Depression … and part because housing costs are so publicans wary of politically growing.” high. charged rhetoric about rich versus Mr. de Blasio has shrewdly em- Yet,despite these extremes, New poor have embraced similar con- ployed a facile campaign slogan, but York is also among the top 10 most cerns. business the questions his tale of two cities upwardly mobile cities,where a per- Joseph Lhota, a Republican can- raises are not so easily sorted. To son at the bottom of the pay scale didate for mayor and former official some, it reflects a fundamental un- can climb up.In a study published in in the Giuliani administration, said hundreds of businesspeople earlier fairness, to others class warfare. July, a team of economists, the speaking of “two cities” with tax in- The only Dem this year was a similarly fleeting two There is, of course, an element of Equality of Opportunity Project, creases amounted to “class warfare contender with biz sentences. rhetoric: The wealth discrepancy is said that access to transportation language. We shouldn’t be placing Mr. Thompson joined the firm not so much a result of city policies helped mobility; economic and one group against another group.” background doesn’t several months after losing the 2009 as the fact that New York is home to racial segregation hurt. And having He added, “The city is less af- chance discussing it mayoral election to Michael more Fortune 500 companies than a high concentration of income in fordable today than it has been in Bloomberg, and held several bond- any other American city, as well as the 1% had no impact at all. quite some time.” underwriting jobs in the 1990s, but finance and real estate sectors where Class warfare didn’t prove to be a BY CHRIS BRAGG he rarely mentions his private-sec- income is often measured by enor- De Blasio’s world view winning campaign strategy for Fer- tor experience—something his mous capital gains, commissions Mr. de Blasio is no stranger to a nando Ferrer, who used it in his Standing before an audience in main rivals lack—during his cam- and bonuses. Moreover, the dispar- view of the world that incorporates failed 2001 mayoral bid. Harlem that included the city’s top paign.The omission is a nod to De- ity underscores the dependence on two poles. Born Warren Wilhelm, Polls indicate that after 12 years African-American real estate devel- mocratic primary voters’ distrust of the rich to fund an extensive welfare he took his mother’s family name af- under the stewardship of one of the opers and contractors, Bill Thomp- Wall Street, but it begs the question state, a complex infrastructure and a ter his mother and father, an alco- richest men in the country—and the son rattled off his qualifications to be of what Mr. Thompson’s intermit- municipal payroll of more than holic veteran of World War II, split worst recession since the Great De- mayor, speaking at length about his tent business career says about him 300,000 employees. up. He kept the nickname Bill. He pression—voters are looking to elect years as city comptroller and presi- as a potential mayor. Also a mystery The top 1% in the city account- married Chirlane McCray, an someone more empathetic. Mr. de dent of the Board of Education. to voters is Mr. Thompson’s past ed for more than African-American Wellesley grad- Blasio believes that the Democratic But only once in his hourlong chairmanship of the Battery Park a third of the in- uate, and has placed his racially di- mayoral primary is his opening. appearance did the Democrat men- City Authority. come reported 34.5K verse family at the forefront of his “I’ve never said the word ‘pana- tion his most recent job, though the “He’s got an extensive history, by New Yorkers NUMBER of New campaign,including his impressive- cea,’”Mr.de Blasio said,when asked crowd surely would have related to but the only thing he really seems to York City families in 2009, com- earning $500K or ly coiffed son Dante, who starred in about the limitations of the mayor to it: chief administrative officer and be talking about is the Board of Ed- pared with 17% more his father’s first television commer- address income inequality. “But I senior managing director of the ucation,”said Douglas Muzzio,pro- nationally, ac- cial. And at 6-foot-5, the former believe we can biggest minority- fessor at the Baruch College of Pub- cording to the campaign manager for Hillary make a real owned municipal lic Affairs. “It shows that his city comptrol- Clinton’s first Senate run is the impact.” Ⅲ bond under- campaign thinks there’s more PERCENTAGE43% ler’s office. of city taxes paid tallest man in the mayoral race and writing firm downside than upside to talking These 34,500 by these top generally towers over everyone he in the coun- about his business experience.” households earners meets. try, Siebert In recent years, Mr. Thompson made at least Some experts believe Mr.de Bla- Brandford has walked a fine line in an industry $500,000 each sio is “a guy obsessed with income Shank & that sells its services to city and state and together PERCENTAGE53% inequality rather than growth,” as Co. “This governments, a point underscored paid 43.2% of of New Yorkers the Manhattan Institute’s Nicole is what by his former bond-business col- New York’s in- who don’t pay any Gelinas wrote recently. The busi- I’ve leagues’refusal to discuss him on the come taxes in a taxes to the state ness community would rather the lived,” record—regulators could be sensi- city where 53% next mayor focus on reducing the Mr. tive to their praise of a potential of households— costs of running a company and Thomp- mayor. Mr. Thompson’s private- those making building apartments. Mr. de Blasio son told sector work drew scrutiny during his less than $30,000—owed no state or has said he’ll slash small business the mem- 2001 comptroller race, but has not city income tax (though the poor fines, but will push for more man- bers of the been an issue this time. may have paid sales and federal tax- dated paid time off for workers and New York es, among other levies). higher wages for employees at city- Real Estate Avoiding ‘pay to play’ To illustrate his two-cities para- subsidized projects. Chamber. His political allies say Mr. ble,the public advocate cites a figure “I’ve worked in Thompson’s financial background released earlier this year by the Can do only so much a minority- gives him a budget acumen that ex- Bloomberg administration: that The mayor has few tools at his owned firm.” His ceeds that of his rivals.“Frankly,he’s 46% of New Yorkers are at or below disposal to address income inequal- lone mention of it head and shoulders above the oth- the poverty threshold. ity. Tax increases need state ap- at a Crain’s forum of ers,” said Richard Ravitch, a former Depending on your time frame, proval,and affordable-housing con- lieutenant governor and an architect however, the city’s poverty level has struction is largely dictated by the of the city’s financial bailout in the improved. Today, one in five New strength of the real estate industry 1970s. Yorkers lives in poverty, compared and the availability of tax breaks. People close to Mr. Thompson with one in four in 1991. Yet Mr. de Blasio has made tax- say he is proud of his business career, The middle class, though, has ing the rich to expand education and though Mr. Thompson acknowl- taken a hit. Though it grew by after-school programs a focus of his edges he has not told voters much 129,000 adults between 1989 and campaign. about it. In a phone interview, he 2012, middle-class income dropped “We can’t solve the income-in- said the experience will help him 5% to $102,780 in 2012, from equality problem by ourselves in deal with the complex city budget, $108,259 in 1989, when adjusted New York City,” said James Parrott, and that he joined Siebert Brand- for inflation.Midwage jobs lost dur- chief economist at the Fiscal Policy ford Shank in part because it mir- ing the recession have not returned, Institute, a left-leaning think tank. rored his commitment to helping while jobs that pay less than $35,000 “But every city action should be women- and minority-owned have surged, thanks to a boom in thought about in terms of its effect firms. tourism and retail. on income distribution.” “I realized it was the type of firm Making income that I could work for and never wor- Expensive city disparity an election- ry about the work that was being Once they get to the middle year issue, Mr. de done because it was incredibly eth- class, New Yorkers confront huge Blasio has posi- ical,” Mr. Thompson added, per- barriers to home ownership that tioned himself in haps alluding to pay-to-play prompt young strivers to consider the Sept. 10 Demo- scandals that have plagued the relocating. (Twice as many New cratic primary as the industry.“It was a firm that Yorkers moved to Philadelphia in anti-Bloomberg. was in an upward trajec- 2006 than in 2000.) As more mid- Now that he’s thompson darren tory.” dle-class earners flee the city, the tied for first place Mr. Thompson disparity grows. A New Yorker in the polls with worked in the late 1990s earning $120,000 has the same City Council for Chicago-based Berean

38 | Crain’s New York Business | August 26, 2013 Capital,which was fined $100,000 in Authority, the Metropolitan Trans- Currently, about 16% of sales 2006 by the National Association of portation Authority and the Hous- come from new products, a figure Securities Dealers for failing to dis- ing Finance Agency. The firm’s Estée lip service that may increase with upcoming close political contributions. compensation from the four under- launches. Estée Lauder will debut a Despite his years in government writing deals it led with these agen- Continued from Page 3 “The difference between a handful of innovative items this and three competitive citywide cies was about $3.8 million during both high-end and low-end cos- Revlon lipstick and a MAC or Dior year, including anti-aging creams campaigns, Mr. Thompson has re- Mr. Thompson’s tenure, according metic and skin-care brands, is up is $15 or $20, but the difference be- and moisturizers.The MAC brand, mained largely unscathed.The most to the state comptroller’s office. 42% during the same period. tween an H&M sweater and a Pra- which recently opened a 1,400- damaging recent criticism con- Mr. Thompson registered as a Mr. Freda has quite a bit riding da sweater certainly isn’t,” Mr. As- square-foot flagship on Fifth Av- cerned his approval, as comptroller, lobbyist with the state, but said he on the stock’s performance.Accord- trachan said. “It’s an affordable but enue, is also on a roll—in May,it in- of a ballooning city contract that strenuously avoided involvement ing to an employment agreement an aspirational category.” troduced a lipstick with singer proved to be riddled with fraud. with the city agencies he dealt with signed in 2011, the executive, who Rihanna. The first shipment sold Questions about his business ca- as comptroller, even including a last year received a total compensa- Dollars and scents out in three hours. reer have gotten even less attention. provision in his contract that he tion of $13.6 million, could collect a To get consumers to switch to his Another growth area for the In 2001, the Village Voice wrote could not financially benefit from payout of $24 million if Estée Laud- brands,Mr.Freda is focusing on dis- beauty giant is travel retail. To that that Mr.Thompson illegally partic- business struck with the city. “If er’s stock price goes up 60% by mid- tribution. He recently introduced a end, the company is looking to air- ipated in bond deals for three years [city officials] came to our office, I 2014. At the time of the contract, it number of Estée Lauder labels,such ports in countries such as China, before passing, in 1995, the Series 7 made sure I was out that day,” Mr. was trading near $47, adjusted for a as Clinique and Bobby Brown, to where high-fliers have dollars to test mandated by the National As- Thompson said.“I thought basical- stock split, and is currently up 43% Sephora. Such brands previously spend. Mr. Freda expects double- sociation of Securities Dealers. ly that I should be held to a higher from that time. had been available only in depart- digit sales growth in travel retail for Mr. Thompson didn’t pass the standard.” Experts say Mr. Freda is on the ment stores.In addition,the compa- fiscal 2014. Series 63 exam for New York secu- right track. Mark Astrachan, an an- ny is making a big push into Latin “It used to be hard to find a good rities dealers until September 2010, Battery Park ‘clean-up’ alyst at Stifel, said shoppers, espe- America. In Brazil, for example, cup of coffee in the airport, but now raising the question of how he had Of course, Mr. Thompson had cially those in developing countries only five of the firm’s brands are cur- they have high fashion and bou- been able to work in the industry built up quite a few contacts over the who currently use cheaper cosmet- rently sold. In the coming months, tiques,”said Ms.Breen.“It’s become during the 1990s. Mr. Thompson years among the state agencies that ics,are more willing to trade up with Mr. Freda will launch a Michael a real shopping mecca,where signif- has been registered as a broker with he did lobby. Notably, in 2010 he beauty products because the price Kors fragrance in Brazil and a Tory icant luxury business is being done, the Financial Industry Regulatory served as Gov. Andrew Cuomo’s difference is manageable. Burch perfume in Mexico. and we’re right in there.” Ⅲ Authority since he took the equiva- campaign co-chairman, and later lent national test in 1995, but his headed up two Cuomo task forces, including one aimed at increasing A pilot program for taxi-hailing state-contracting opportunities for Sharing economy apps Uber and Hailo shows some ‘There’s more minority-owned firms. innovation in the industry. But, Mr. Thompson said, this Airbnb is also hoping for a downside than work did not conflict with his efforts Continued from Page 2 motes economic development. change in regulations, though New upside to to land business from the state for to rent out their homes, has found As a city of renters and co-op York is already its largest market. his minority-owned firm.“I was one housing regulations a particular apartment owners, where most peo- When state lawmakers are back in talking about it’ of the co-chairs of the governor’s challenge in New York, where state ple use mass transit, New York has session in January, they are likely to campaign, but I think that if you law makes a good portion of their long had a sharing economy of its consider two bills that would allow know the governor, that means business illegal. own. Experts say that makes adjust- the kind of short-term rentals by nothing,” Mr. Thompson said, Fellow San Francisco startups ing to new models more difficult. apartment dwellers that the compa- laughing.“It’s still going to be on the Sidecar and RelayRides, part of the “There’s a whole government ny and its lobbyists say make up merits.” growing car-sharing movement, structure that has evolved to handle most of its transactions. Mr.Thompson said his main as- both pulled out of the city this this analog way of sharing,” said campaign said he never needed to set in lobbying state officials was his spring following run-ins with au- Arun Sundararajan, a professor at Targeting illegal hotels take the state test because he was knowledge of municipal finance thorities. They continue to operate New York University’s Stern School A law passed in 2010 allows for “not a stockbroker.” Mr. Thompson from his eight years as city comp- in their home base as well as in a slew of Business who has written on the rentals for up to 29 days but only if also was not a stockbroker at troller. of other American cities. These peer-to-peer economy. “The com- the permanent occupant is at home. Siebert, yet still took the test after He chaired the Battery Park City companies say New York is like no plexity of the city is greater. But the Airbnb feels that the company joining the firm. No formal com- Authority from early 2010 to mid- place else. And they don’t always need and demand [for sharing serv- and its legislative opponents are ba- plaints were brought. 2012, a tenure he frames as an effort mean that in a good way. ices] is also greater, and whether sically in agreement on the most im- Mr. Thompson’s wages during to fix an organization found to have we’ll lead the way or it will take portant issue—that illegal hotel op- his three years there indicate he en- spent hundreds of thousands of dol- Awesome, but illegal? longer [to adapt] depends on which erators should be targeted, not joyed some success. His total in- lars on parties and meals, leading to “We feel we are doing something of these forces dominate.” people who want to sublet their come, tied to the business he was his predecessor’s resignation. “I was awesome and unique, we’re in 20 He said a safe-harbor program apartment for two weeks a year. able to produce, reportedly topped asked to come there by [former] countries around the world, and we could allow sharing companies to Even if short-term-rental legis- $700,000 in 2010 and 2011,and was Gov. [David] Paterson specifically haven’t faced any issue before,” said operate within guidelines while the lation moves forward in the next $727,000 in 2012. to help clean some of the things up,” Naama Shefi, marketing director government figures out regulations. legislative session, Airbnb hosts Siebert structures public debt he said. for EatWith in New York. She California is testing a similar ap- may still have to operate in the shad- and sells it to investors, a business Mr. Thompson, who had an- added that the startup was studying proach. ows. “We still cannot find a lease in that involves extensive contact with nounced his intention to run again city regulations “to make sure we So far,New York has preferred to New York City that says a tenant can government officials. The firm days after the 2009 election, hired meet each and every one of them.” deal with sharing companies one at do short-term sublets without per- launched in 1996 and was already two of his former deputy comptrol- Regulations are not the only a time, and the differences cannot mission from the landlord,” said among the dozen largest municipal lers to run the authority, along with thing making life difficult for these always be bridged. Sidecar—whose state Sen. Liz Kreuger, who spon- bond underwriters in the country his former campaign spokeswoman; companies.Airbnb and its competi- smartphone app connects people in sored the 2010 bill. She added that when Mr.Thompson arrived in ear- their combined salaries exceeded tors face mounting opposition from cars with people needing rides— similar rules apply to condos and co- ly 2010. By all accounts, business $550,000. hoteliers, who believe the services halted its New York service in May ops.“It’s very unlikely you could find grew with him on board. Mr. Thompson is credited with have gained an unfair competitive after a sting operation caught a user a compromise.” The firm reportedly does about increasing transparency and for fir- advantage by not requiring their and the police impounded her car. But regulators, lawmakers and 80% of its business outside New ing 19 employees at the authority, hosts to pay taxes. The Taxi and Limousine Com- businesses may have to find some York, and Mr. Thompson said his which had been seen as having a “The websites may tell them they mission considered Sidecar an unli- way to accommodate each other as focus was helping the firm expand in bloated payroll. His decision to put need to pay all taxes, but they don’t censed taxi service. Chief Executive the sharing economy grows. Airbnb big states like California, Florida off a long-anticipated and unpopu- require it,” said Vijay Dandapani, Sunil Paul says the commission is has 30,000 hosts in New York, and and Texas. He pitched Siebert in lar hike in ground-lease payments chief executive of Apple Core Ho- not ready for innovation. is expected to generate $1 billion in meetings with comptrollers and also proved controversial, but came tels, who is a director of the Hotel “What we’re doing is really a new economic activity here this year. treasurers, and could relate to them after many tenants said it would Association of New York City.He is form of transportation that was not EatWith, which expanded to because of his own public-service make Battery Park City unafford- hoping to organize a class-action envisioned by the rules on the Los Angeles and San Francisco in background. “I understood what able and would be siphoned off by suit against Airbnb. books,” Mr. Paul said, describing recent weeks,aims to become a New they were looking for,” Mr.Thomp- the city and state governments any- Airbnb submits tax information Sidecar as a company that would de- York tourist highlight. Ms. Ito’s son said. “They were looking for way. on the rental income of its hosts to crease reliance on cars without hurt- weekly Brooklyn dinners sell out on service and support. They were Others saw the move as political- the federal government. ing the taxi industry. the site in minutes.Others will sure- looking for assistance with ratings ly motivated, including Charles Sharing-economy companies The commission’s response is ly follow her lead. agencies.” Urstadt, who was the authority’s are not like other startups. They that any form of public transporta- “The more I host, the more I like Mr. Thompson also helped the first chairman more than four combine smartphone applications tion business needs to be regulated. doing it,” Ms. Ito said, adding that firm land lucrative senior under- decades ago. and cloud-computing services with “We’re not looking to get into the she has considered cooking profes- writing contracts with New York “There are people who hold the the belief that sharing conserves re- middle of one neighbor offering an- sionally. “This is a good way to test agencies, including the Thruway job who are simply stewards, and sources, builds community and pro- other neighbor a ride,” said TLC the waters.” Ⅲ those who are more political,” Mr. Commissioner David Yassky. “But LISTEN to a discussion at Urstadt said. “Thompson leaned LISTEN to a discussion at you can’t use the smokescreen of an Additional reporting by CrainsNewYork.com/podcasts CrainsNewYork.com/podcasts more toward the political.” Ⅲ app to operate an illegal car service.” Lisa Fickenscher

August 26, 2013 | Crain’s New York Business | 39 nb34p40.qxp 8/23/2013 9:08 PM Page 1

HEAD START: Ian REAL ESTATE NEXT NAVY YARD Siegel, an executive of Salmar Properties, which is pouring millions of dollars into Trio’s big bid lifts Industry City a Sunset Park building

Continued from Page 1 can use these types of spaces.” infrastructure. toward bringing quality manufac- He pointed to MakerBot,a man- Carlo Scissura, CEO of the turers, artisan designers and high- ufacturer of 3D printers that opened Brooklyn Chamber of Commerce, end developers on a large and sus- a 50,000-square-foot factory at In- suggested that government money tainable scale to the Brooklyn dustry City last year,as an example. could be used to turn a temporary waterfront,” Mr. Markowitz said. More broadly, the Industry City ferry stop in Sunset Park into a per- Jamestown itself has a history of deal could signal a ramping-up of manent facility. Mr. Scissura also transforming industrial properties Brooklyn-based enterprise at a said that work should be done to ex- in the city and beyond. In addition time when the borough’s brand has tend Brooklyn’s greenway with to its success with Chelsea Market, achieved global recognition and shorefront walkways through the a former Nabisco cookie factory,the cachet. huge complex. Atlanta-based company was one

among a group of investors that took Seeking public funding buck ennis a block-long telecom hotel at 111 ‘There’s a “We are in the beginning stages of Eighth Ave. and turned it into the working on a project to get govern- the 16 buildings. Mr. Phillips de- 1,600 new windows, 17 new eleva- epicenter of midtown south’s trans- broader base ment funding,” Mr. Scissura said. clined to disclose how much the tors,a building-wide central heating formation into a tech, creative and Jamestown did not comment on group would pay to buy into the and air conditioning system, mod- media company magnet.Jamestown of tenants who whether it was partaking in the efforts complex, nor what it would invest ern electrical and Internet systems, two years ago sold the building to to secure such funding or whether its to renovate it,but noted that the re- and a lobby. The company hopes to Google for $2 billion. can use these plans would require repairs to public vitalization effort would likely cost start signing leases with tenants by infrastructure at the site. hundreds of millions of dollars, if the end of the year.The building, on Changed definition types of spaces’ In the meantime,Jamestown and not more. 31st Street and Third Avenue, has Jamestown executives say they its partners in the deal,Angelo Gor- “This will be a marathon, not a 160,000-square-foot floors, among would like to transform Industry don and Belvedere Capital, are ne- sprint,”Mr.Phillips said.“We’re do- the largest contiguous spaces in the City’s long-neglected space into a gotiating with Industry City’s cur- ing this as a generational invest- entire city. hotbed for a growing manufactur- rent landlords,Ruby Schron and the ment.” “We are talking to big and excit- ing economy. “There’s a variety of To help return Industry City to Fruchthandler family, for possible ing companies from a host of sectors different uses, from food manufac- the map for Brooklyn’s coming in- control of the complex.The group is Harbinger for area right now,” said Ian Siegel, an exec- turing to clothing to technology to dustries, Jamestown will also need aiming to close a deal by October, Just to the north, another land- utive at Salmar Properties who is media,that all want to come togeth- the political skills it honed at Mr. Phillips said. lord already has a head start. Two overseeing leasing efforts at Liberty er and be near each other, where Chelsea Market, where it waged a Mr. Schron and the Frucht- years ago, Salmar Properties ac- View Industrial Plaza. “The fact their creativity feeds off of one an- multiyear campaign to win permis- handlers defaulted on their proper- quired Liberty View Industrial that Jamestown is investing next other in this kind of space,” said sion from the city to build a ty’s $300 million mortgage in 2011 Plaza, a 1.2 million-square-foot door says a lot about the growing in- Michael Phillips, Jamestown’s chief 300,000-square-foot addition on its but restructured those debts a year building, for around $10 million. terest in this neighborhood.” Ⅲ operating officer.“The definition of roof. Such deftness could come in ago. The owners, however, were The company has since invested manufacturing has changed, and handy in soliciting public funds for dealt a further setback when Super- about $70 million into renovating LISTEN to a discussion at there’s a broader base of tenants who an overdue upgrade to Sunset Park’s storm Sandy damaged several of the property, including installing CrainsNewYork.com/podcasts

waterfront,”an Economic Develop- launched 22 industrial initiatives in ment Corp. spokesman said. June 2011, and has been particular- City’s manufacturers The city-managed space on the ly focused on providing resources to south Brooklyn waterfront is 99% help industrial businesses modern- full.Now,all eyes are turning to In- ize and subdivide their buildings to dustry City, a privately held com- be more relevant for today’s firms, are getting spaced out plex with more than 6 million which require smaller spaces to op- square feet of commercial space erate. spread across 16 buildings. Plans are in the works to rehabilitate the Could do more cation,” said Mr. Imperato. “But for ministration has made a number of property,which is about 60% occu- One of the last refuges for many With Navy Yard and us,[moving] worked out quite well.” efforts to provide industrial firms pied and used mostly just for stor- of these smaller companies—and a Army Terminal full Since shifting his firearms busi- with affordable workplaces. age and warehousing. few large ones as well—is the city’s ness, Henry Repeating Arms, to a The most well-known is the suc- Despite city efforts,employment only mainland borough, the Bronx. up, options are few 109,000-square-foot factory in cessful—and now fully occupied— in the manufacturing sector has Companies like Skyline Windows Bayonne, Mr. Imperato has nearly Navy Yard, where 330 companies dropped 58% in New York since and Dufour Pastry Kitchen faced doubled his head count to 190 and employ 6,000 people. With more 2000,compared with 30% national- real estate pressure elsewhere and BY CRAIG GIAMMONA more than tripled annual produc- than 150 businesses currently on ly. There were 73,000 people em- found a heady mix of cheap space, a tion to 350,000 units. the waiting list for space at the Navy ployed in the sector here in January, committed workforce and good Five years ago, after a long search Yard, companies have increasingly roughly the same number who transportation access, according to for affordable quarters in the Navy Get in line sought industrial accommodations worked at the Navy Yard alone in its Marlene Cintron, president of the Yard and elsewhere in Brooklyn, The exodus of growing manu- at another sprawling,erstwhile mil- heyday. Bronx Overall Economic Develop- Anthony Imperato moved his facturing companies is a long-run- itary facility on the waterfront, With much of the industrial ment Corp. company, which had outgrown its ning saga, one that each year costs turning to the Brooklyn Army Ter- space on the Brooklyn waterfront These days, Ms. Cintron is hav- home in Gowanus, to New Jersey. New York good-paying jobs and minal in Sunset Park, and to a huge spoken for, critics wonder why the ing issues finding space for all the “A business can stay in Brooklyn tens of millions of dollars in tax rev- complex of buildings nearby, mayor has not pursued the Navy Yard companies that want to expand in if it’s worth paying the higher price enue. Since taking office nearly a known collectively as Bush Termi- model in another part of the city. the borough. One longtime Bronx and not have to deal with the relo- dozen years ago, the Bloomberg ad- nal/Industry City. Among those critics is Steve manufacturer,Cibao Meats,recent- Hindy, co-founder and president of ly announced plans to relocate to Up to the private sector Brooklyn Brewery. He accuses the New Jersey. BIG BET ON INDUSTRY PAYS OFF Since 1981, the city has pumped administration of being too focused Ms. Cintron said a large indus- in $165 million to rehabilitate the 4 on bigger projects, like the Cornell trial project backed by the city Many observers insist that efforts to create industrial space can pay off million-square-foot Brooklyn technology campus, at the expense would flourish in the borough. handsomely. The Navy Yard is a prime example. The Bloomberg administration Army Terminal, home to dozens of of developing land for small busi- While the city has actively support- has put about $250 million into the industrial site. In addition to workers within companies and 3,200 workers.The nesses. ed updating and expanding the its walls, the economic activity there sustains another 15,500 jobs and city also manages nearly 2 million “The kind of companies I’m huge Hunts Point Terminal Market generates $1.96 billion in additional economic activity, according to a re- additional square feet throughout talking about are not going to hire as the city’s major food distribution port prepared by the Pratt Center for Community Development earlier this year. portions of the Bush Terminal, thousands of people on day one— center, she insisted that the city The Navy Yard has worked because businesses know it is the one place South Brooklyn Marine Terminal they may hire four or five people,” could do more. where they won’t be squeezed out by residential towers, said Adam Friedman, and the Brooklyn Wholesale Meat Mr. Hindy said. “But those are the “When this administration has the director of the Pratt Center for Community Development and one of the Market. All told, these properties kind of companies that innovate and stood up for the Bronx, they’ve co-authors of the study. “The property isn’t going to be flipped,” Mr. Friedman now house 400 firms and nearly develop and become large compa- stood up in a very,very big way,”Ms. said. “It gives the tenants the security and the stability to make their 4,000 workers. nies.” Cintron said. “But that’s one proj- investments.” —craig giammona “The city has had tremendous The EDC, knowing it was run- ect, and the question is, where’s the success revitalizing the Brooklyn ning out of space for manufacturers, money?” Ⅲ

40 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0041-NAT-CCI-CN_-- 8/22/2013 5:50 PM Page 1

HELLUVA TOWN INSIDE Source Lunch The new wizard behind the curtains PAGE 42 Out and About India Arie will perform at BAM PAGE 43 Posh hotel’s culinary upgrade

The Peninsula New York may be one of the city’s swankiest hotels, but for a property of its stature, it’s been surprisingly bereft of a culinary draw. If you can dream it Management hopes to change that impression in September when it unveils Clement, its new Incubators and accelerators churn out growing number of restaurant and bar featuring renowned chef Brandon Kida, who graduates, helping to fuel the local economy hails from Asiate of the Mandarin Oriental, among other top restaurants. Clement, which will offer contemporary American cuisine, replaces Fives, the 11-year-old eatery that closed in February. The space has gotten a $4.5 million makeover. “We are putting together a very dramatic renovation,” said General Manager Jonathan Crook. “We’ve gutted the space.” The idea is to create a destination, Mr. Crook added, that will be hopping into the night. Clement will have a private dining room for parties and corporate events. The posh property will also celebrate its 25th anniversary in September. —lisa fickenscher More to love from Eataly

Eataly, the three-year old superstore of Italian gastronomy, recently debuted its holiday gift boxes for the 2013 season. Like everything else about the venture

BEEN THERE, DONE THAT: Ben Lamson (left) and Su Sanni of nonprofit platform WeDidIt. launched by celebrity foodies Mario Batali, Lidia Bastianich and

Joe Bastianich, the boxes are buck ennis popular. So much so, in fact, that Eataly has increased the options ACCELERATED to 20 this year, from just five last BY LAURA LORENZETTI year, said spokeswoman Cristina Villa. Customers can spend from u Sanni and Ben Lamson, co-workers who bonded over their entrepreneurial $29.80 (plus shipping and handling, of course) for We Love impulses, quit their day jobs in July 2011 and set out to change the way non- Lidia, which includes her profit organizations raise funds. WeDidIt, the company the duo started, takes $72,230 signature sauces and pastas, to fundraising online and transforms people’s social networks into vehicles for THE AVERAGE SALARY $498 for Ultimate Italy, which includes extra-aged balsamic social good. Major nonprofits are taking notice. Amnesty International, with an NYU-Poly incubator vinegar and white truffle purée more than 3 million supporters, recently signed on as a client. Now, its street graduate makes annually among its goodies. volunteers will be holding smartphones loaded with the organization’s WeDidIt Eataly’s expansion doesn’t stop at the boxes. A new store is campaign page instead of clipboards. ¶ The breakthrough is the result of the opening in Chicago later this year, founders’ participation in a three-month accelerator program, DreamIt, one of 44 incubators and Los Angeles is among the and accelerators in New York, according to Crain’s research. Fledgling businesses like WeDidIt other U.S. cities in the partners’ S $31.4M scopes. Ms. Villa demurred when look to the programs to, well, accelerate their growth. ¶ DreamIt Ventures, which launched in TAX REVENUE generated asked whether New York would Philadelphia in 2008, started its New York branch in 2010. It has since invested in 45 local from ’09 to ’12 by former and see additional superstores anytime current incubator members soon—sorry, Brooklyn. companies.¶ “Before the three months, if you can imagine a bunch of chickens with their heads —valerie block cut off, that’s what it was like,” said Mr. Sanni. “We were really See DREAM on Page 42 Source: Economic Impact Study, NYU-Poly

August 26, 2013 | Crain’s New York Business | 41 20130826-NEWS--0042-NAT-CCI-CN_-- 8/22/2013 5:51 PM Page 1

SOURCE LUNCH: If you can dream it MICHAEL RYAN Continued from Page 41 mentors David Bookspan, a prac- The Polytechnic Institute of New by Chris Bragg scrambling to do things without ticing attorney who sold his own York University is another benefac- infrastructure. But coming out of startup to LexisNexis, and venture tor.The college runs a series of tech- DreamIt, we’ve really been able to capitalist Arie Abecassis with help- forward incubators, including its benefit from others’ experience of ing to spur his company’s growth. flagship Varick Street Incubator. The man behind been there, done that.” “Some of these people are be- Revenue at the startup hit near- coming our investors; they’re be- Nurturing tech ly $50,000 in the second quarter of coming advisers,” said Mr. Tollin. Varick Street, in Manhattan’s 2013, compared with about “DreamIt has a great alumni net- Hudson Square neighborhood, the curtains $10,000 in the fourth quarter of work, so always having that knowl- opened its doors in 2009 and counts 2012. In July,the company raked in edge base is valuable to anything five companies that have been ac- $30,500 in subscription fees, with you’re doing.” quired by larger corporations. One n October 2010, George met them, “I’m not afraid to make an expected $100,000 in commis- DreamIt’s latest crop, including such success story is Pixable,a social Gonzalez, executive director decisions, and I’m not afraid to take sion revenue expected to come from WeDidIt and wireLawyer, partici- photo aggregation service that col- of the New York City Board of responsibility for the decisions that I clients booked over the month. pated in a demo day at the Mc- lates users’ top photos from Face- Elections, was fired amid make.” That alone should take a lot The growth came at a cost. Graw-Hill Financial building on book, Instagram, Twitter and scandal.For nearly three years, of the pressure off the staff. Short-term accelerator programs Sixth Avenue in August,where they Flickr. The company graduated Ithe patronage-laden and much-ma- provide mentorship and funding in from the program’s first year and ligned agency went without someone What’s it going to be like running an agency exchange for a small stake. has since been acquired by Singa- heading its operations,as its political- where staffers have their jobs essentially DreamIt, for example, gives each ‘Our company is pore telecommunications company ly appointed commissioners (five because of political connections? company $25,000 in exchange for worth multiples SingTel for $26.5 million. Democrats and five Republicans) It’s not all of them, but it’s a good 6% of the company’s common “NYU-Poly’s incubators have were unable to come up with the six number of them at the top level. Peo- shares. Incubators like IdeaLab since we signed transformed innovation and tech- votes needed for any candidate. ple come from all walks of life to every help earlier-stage companies. nology into real economic develop- Finally, in early August, the grid- agency in city government,and there’s “We are focused on developing the dotted line’ ment throughout the city,” said lock was broken when five Republi- always going to be somebody who businesses that last,” said Mark Katepalli Sreenivasan, president of cans and one Democrat cut a deal to thinks that they’re owed something or Wachen, managing director of NYU-Poly. “This unique partner- elect Michael Ryan, a former Demo- has some powerful person they want DreamIt New York. ship between a strong engineering cratic election board commissioner to fall back on.The fact of the matter and technology institution of high- from Staten Island who has twice run is, no matter how anybody got Tapping a knowledge base er learning, government and the unsuccessfully for Staten Island dis- there—and I have to demand this of Many participants say giving up pitched potential venture capital- private sector has proven to be a trict attorney. Mr. Ryan is giving up myself—we have to come in there some equity is a fair trade. ists and angel investors. powerful cultural and educational his private law practice for the new every day and do our jobs. “It’s created lifelong, valuable Eugene Lee,a founding partner driver.” gig, one of city government’s most relationships, and for us to pay the of Euthenia Capital, an angel in- Another accelerator,FinTech In- sought after and, with a $173,000 The board is going back to the old lever amount of equity to them that we vesting firm, often attends such novation Lab,backed by Wall Street salary,among the best-paid posts.He voting machines for this year’s primary. did is cheap,” said Matthew Tollin, demo days seeking investment firms such as Goldman Sachs, JP- started working full-time at the board How is that going? founder of wireLawyer. ideas. “I’m looking for companies Morgan Chase and Morgan Stanley, only a few weeks before From the briefings I’ve been WireLawyer, a graduate of this with traction,” said Mr. Lee. “I’ll and the Partnership Fund for New New York City’s major WHERE seeing thus far,the testing of year’s DreamIt New York cycle,has usually follow them for three quar- York City, gives financial tech start- Sept. 10 primary election. the machines is going well. been dubbed “the LinkedIn for ters and see their progress.I want to ups an edge in the highly regulated THEY They were reliable ma- lawyers.” It is a new social network know if they can weather storms.” world of banking and finance. CB Are you concerned about get- DINED chines in the past.Obvious- ting blamed for any problems that harnesses the power of small to The Bloomberg administration Insights, a venture capital database, LA STRADA ly,they haven’t been used for midsize law firms by connecting has invested more than $3.5 mil- and Bill Guard, a finance tracking with the election, even though 139 New Dorp quite some time. them to each other so they can lion during the past five years to technology,are among the graduates you’ll only have been on the job Lane, Staten operate on the scale of the large help incubators develop an infra- of the program. a couple weeks? Island How did the pieces come to- powerhouses. The company has structure here to rival Silicon Val- The lab provides direct access to I’m not concerned about (718) 667-4040 gether politically that resulted http://cafe logged 23% week-over-week ley. The city has been a booster in the investors and mentors these catching the blame because lastrada.com in your selection by the board? membership growth since partici- many ways, including its push to companies might never be able to I don’t think that you To speculate why it did pating in the accelerator. launch the Cornell University tech reach without a New York City should take the position of AMBIENCE: happen, or why it didn’t Mr.Tollin,39,credits top-notch campus on Roosevelt Island. base. Other incubators, including leadership in any form if Cozy and elegant; happen the first time, white tablecloths. DreamIt, have caught onto that you’re afraid of getting Everyone seems would undermine my abil- added value. blamed for something. to know each ity to effectively run the “We found that companies were There are things that will other. agency.The fact is that the IMPACTFUL INCUBATION migrating to New York and there not go smoothly.There are selection has been made. was already a critical mass here,” things that will not go per- WHAT THEY ATE: NYC’S INNOVATION ECONOMY is growing at exponential speeds. A recent Grilled chicken said DreamIt’s Mr. Wachen. fectly. Would I have liked over tubetti, with Why do you think the commis- study by the Polytechnic Institute of New York University (below) found that WireLawyer’s Mr. Tollin knew to have more time prior to garlic, oil, peas sioners saw you as qualified? the economic impact of its three incubator programs is expected to triple being in the city was vital.New York the election to get up to and pancetta I think my résumé has a during the next two years. Since 2009, 102 companies have graduated City,with the largest concentrations speed on things? Absolute- Grilled salmon pretty good blend of gov- from the incubators, generating $251 million through direct and indirect of lawyers in the nation, is the ideal ly. But the fact of the mat- with shrimp and ernment service at various job creation, taxes and spending. The economic impact will grow to $719 mussels in red testing ground for his product. ter is I don’t have more sauce levels and time in the private million by 2015. The number of jobs created by companies coming out of “Sometimes great companies time. And under the cir- sector. And then you sprin- Water and Coke the incubators is expected to expand from 900 jobs to date to almost are created in Silicon Valley, but cumstances, clearly, I will kle in my time as a commis- 2,600 jobs during the next two years. Jill Kickul, director of the NYU Stern you’ll never know if they scale be- rely on the people who TOTAL: $42.95, sioner with familiarity with School of Business Program in Social Entrepreneurship, conducted the yond that because they have so have worked the process up including tip the agency.There have been survey and reported that 84% of respondents rated the experience as many early adopters there,” said to this point. And I believe calls for a nationwide important or very important for their success. “This study demonstrates the Mr.Tollin.“If you can get this kind they will rise to the occasion. search, but someone from outside the unique contribution and economic impact that NYU-Poly incubators have of legal tech product to scale in city doesn’t necessarily have that fa- had in providing the resources and environment to support the next New York, then you definitely What has the board lacked by not having miliarity with what makes New York generation of successful entrepreneurs,” she concluded. know it works outside.” an executive director for several years? government tick. Can the guy handle —laura lorenzetti As the DreamIt demo day The agency had a man-hours prob- the media environment? To use a closed out, WeDidIt’s co-founders lem. Technically, the job calls for 35 sports analogy,how many players may were busy bouncing between con- hours a week. We know that man- flourish somewhere else, but they get versations with audience members. agers in every agency work substan- to New York,they’re frozen like a deer They were scheduling meetings tially more than that. That put a in the headlights. I think those of us with potential investors and seek- tremendous amount of pressure on who are born and raised here and have ing to raise an additional $750,000 the other managers who were there worked in government, we get what to expand their tech and sales to carry that load. Plus, over time, it the expectation is.So walking through teams. They expect to add 500 sent a message to staff of uncertain- the door,there should be almost noth- clients to their nonprofit fundrais- ty. I told them the other day when I ing that absolutely shocks you. ing platform during the next 15 months. “Our company is worth multiples since we signed the dot- INSIDE TIP: La Strada is just a block from a ted line three months ago, without stop on the Staten Island Railway. a doubt,” said Mr. Sanni.

42 | Crain’s New York Business | August 26, 2013 20130826-NEWS--0043-NAT-CCI-CN_-- 8/23/2013 6:21 PM Page 1

OUT AND SNAPS Museum of the City of New York mounts its bash ABOUT by Ali Elkin and Theresa Agovino

CULTURE FIX CAREER BUILDER THURSDAY, AUGUST 29 WEDNESDAY, AUGUST 28 India Arie will perform with the Brooklyn Entrepreneurs from Harlem, the Philharmonic, rapper Talib Kweli, R&B Bronx and upper Manhattan are artist Luke James and other artists in THE invited to an informational session TRUTH SERUM, at the BAM Howard on micro-loans at the HARLEM Gilman opera house at 321 Ashland COMMONWEALTH COUNCIL offices Place. Tickets run from $35 to $125 and at 361 W. 125th St. The session can be purchased online at www.bam.org. will cover eligibility, the For more information, visit the website or application process and resources call (718) 636-4100. for improving credit history.The session will go from 8:30 a.m. to WEDNESDAY, SEPTEMBER 4 9:30 a.m. The event is free, but julie saad The Park Avenue Armory will play host registration is required by calling MAX DWORIN and ELISE ROSENTHAL at the to the U.S. premiere of British playwright (212) 749-0900, ext. 122. For Museum of the City of New York’s Sixth Annual Matt Charman’s more information, visit Big Apple Bash on Aug. 8. The event raised julie saad THE MACHINE. www.harlemcommonwealth.org. more than $28,000 for the museum’s LAUREN PAINTER, ALLIE DASILVA, ALICE EATON and TORY SHAHEEN at the Big Apple Bash, The play, which exhibitions and educational programs. organized by the Museum of the City of New York’s Young Members Circle. runs through THURSDAY, SEPTEMBER 5 Wednesday, Sept. Online social shopping platform 18, dramatizes OPENSKY will hold an open chess legend Garry house for new merchants at its Kasparov’s 1997 headquarters at 18 W. 18th St., loss to Deep Blue, the IBM ninth floor, from 6 p.m. to 8 p.m. supercomputer, and its creator. The The open house will provide Armory is at 643 Park Ave. between merchants with information about East 66th and East 67th streets. Tickets selling their wares through are $60 and are available at OpenSky.The event is free, but an www.armoryonpark.org. For more RSVP is required by Wednesday, information, visit the website or call Sept. 4. RSVP via email to (212) 616-3930. [email protected].

DON’T MISS HIGH-RESOLUTION MOTHS THROUGH SUNDAY, SEPTEMBER 29 patrick mcmullan.com patrick Catch the American Museum of mcmullan.com patrick Natural History’s WINGED GISELE BRITO, KIRA McDONALD, GABRIELLE REECE, AINSLEY McWHA and APRIL PANITZ at HILARY RHODA and LAIRD HAMILTON at TAPESTRIES: MOTHS AT LARGE the Breast Cancer Research Foundation’s Paddle & Party for Pink on Aug. 17. The event raised more the Paddle & Party for Pink event in the before it closes on Sept. 29. The than $1.2 million for cancer research. Hamptons. exhibit features more than 30 prints by Canadian photographer Jim des Rivières, who scans high- See more of this week’s Snaps online at CrainsNewYork.com/galleries. resolution images of moths, revealing their colors and textures. The museum is on Central Park West at 79th Street, and is open daily from 10 a.m. to 5:45 p.m. Suggested admission is $22 for adults. For more information, visit amnh.org. REAL ESTATE CONFERENCE OPENING FUNDRAISERS FRIDAY, SEPTEMBER 6, THROUGH TUESDAY, AUGUST 27 SUNDAY, JANUARY 5 The GREEN SPORTS GALA will be held at The RESHAPING NEW YORK 2013 The Asia Society will showcase Liberty Warehouse at 260 Conover St., Iranian art created during the 30 Brooklyn, from 7 p.m. to 9:30 p.m. The years leading up to the 1979 Green Sports Alliance helps sports teams Crain’s New York Business will explore how the real estate market is preparing for the long haul as the revolution in IRAN MODERN. The and leagues adopt more environmentally economic recovery continues to evolve and new leadership enters City Hall. The conference will explore exhibit includes friendly practices. Christina Weiss Lurie, an growth and opportunities for investors, developers and landlords and the affordability of New York. more than 100 owner of the Philadelphia Eagles, will be paintings, honored at the event. Individual tickets are sculptures, $300, and tables start at $2,750. Tickets are photographs available at www.greensportsgala13-es2 CONFERENCE AGENDA and other works .eventbrite.com. For more information, call PANEL DISCUSSIONS: by Iran’s most (855) 740-8417. notable artists. > Wise Gal and Guy Discussion > 50 Million Reasons to Love The Asia SATURDAY, AUGUST 31 Real estate experts dish on the election results New York Real Estate SALSA DANCE PARTY FOR Society is at 725 Step out for a and discuss its impact on New York real estate. Park Ave., at CHARITY at You Should Be Dancing, 412 East 70th Street. The Society is Eighth Ave., from 8 p.m. to 11 p.m. The first > Reinventing Midtown > Plenary: Money is Power open Tuesday through Sunday, hour is dedicated to salsa lessons, with a and admission dance party to follow. A portion of the >> REGISTER TODAY: crainsnewyork.com/events-realestate2013 is $12 for adults. For more evening’s proceeds will benefit Hope information, visit for New York City.Tickets are $30 www.asiasociety.org or call and are available on Eventbrite at COST TO ATTEND: THURSDAY, NOVEMBER 7, 2013 (212) 288-6400. www.eventbrite.com/event/7771481711. $225 individual tickets. Essex House New York $2,250 for table(s) of 10. Early bird rate ends September 9. Networking Breakfast – 8:00am - 8:30am You must be pre-registered to attend this event. Program – 8:30am - 12:00pm MARK YOUR CALENDAR… No refunds permitted. For more information, call Alexis Sinclair at 212-210-0739 FRIDAY, SEPTEMBER 27, TO SUNDAY, SEPTEMBER 29 or [email protected] THE DUMBO ARTS FESTIVAL will bring elaborate installations and performances to the streets of Brooklyn’s Dumbo. Be sure to stop by at night to see bright digital Supporting Partner: artwork projected onto entire buildings. There will also be indoor and outdoor exhibitions. The three-day festival is spread over the entire neighborhood. For more For sponsorship information, call Nancy Adler at 212-210-0278 or [email protected] information, visit www.dumboartsfestival.com.

August 26, 2013 | Crain’s New York Business | 43 Hello Tomorrow

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“Airline of the Year” 2013 Skytrax World Airline Awards

CN016030.indd 1 8/13/13 10:31 AM