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PAGE 13 ® ALSO CRAINS Presents The Inaugural Heritage Healthcare Innovation Awards 2016

Innovation. Commitment. Community. Join us in celebrating the healthcare leaders in the New York metropolitan community*. This May, Heritage Provider Network honors the exceptional leaders, pioneers, and trailblazers in New York healthcare in the fi rst ever Heritage Healthcare Innovation Awards. These prestigious awards recognize the best of today’s healthcare clinicians, administrators and researchers who are pioneering new modes of diagnosis, treatment and care delivery, and also impacting long-term aff ordability. Their commitment provides our communities, and our society at large, better access to more cost-eff ective and higher quality care. Finalists will be honored at a luncheon in NYC on May 16. Winners will be awarded in the following categories:

Heritage Innovation in Healthcare Delivery Heritage Healthcare Leadership Award: Award: Recognizing an innovator in the Recognizing a leader in the New York area who has development of new modes of diagnosis, treatment made a signifi cant impact in their healthcare fi eld. and care who actively improves access to services This forward-thinker has forever changed the way and improves the overall quality of healthcare. care systems work through new models, processes and pathways. Heritage Technology Innovator in Healthcare Award: Highlighting an individual or institution that Heritage Healthcare Organizational Leadership leverages technology to create scalable improvements Award: Honoring an organization that has in healthcare delivery and improved patient outcomes. fundamentally changed how healthcare is delivered. This organization has created, or championed, Heritage Research Investigator in Translational new ways of thinking and doing, uniting diverse Medicine Award: Awarded to an individual or team constituencies to work together. based on the most signifi cant quantitative results achieved by accelerating the transition of novel and innovative diagnostic tools and treatments to patients.

You work with these selfless individuals, teams and organizations every day. Here is your chance to recognize their eﬀ orts and spotlight their accomplishments. Join us by nominating a colleague, organization or peer today.

NOMINATIONS NOW OPEN: February 22 to March 23.

For more information, visit www.crainsnewyork.com/heritage.

*Includes all ﬁ ve boroughs of New York City as well as Nassau, Suﬀ olk, Westchester and Rockland counties.

Heritage Full Page Ad MECH.indd 1 2/18/16 10:57 AM 20160222-NEWS--0003-NAT-CCI-CN_-- 2/19/2016 7:48 PM Page 1

FEBRUARYCRAINS 22-28, 2016

FROM THE NEWSROOM | JEREMY SMERD Assault and the Battery IN THIS ISSUE 4 AGENDA

MORE MUST BE DONE to curb the obnoxious, aggressive and 5 IN CASE YOU MISSED IT sometimes violent sellers of real (and fake) sightseeing 6 INSTANT EXPERT When politicians’ cruises and other downtown tourist attractions. These touts 7 TECHNOLOGY eyes are stand around Battery Park and prey on unsuspecting bigger than 8 REAL ESTATE their tourists to sell them tickets at exorbitant prices. They’re bad budgets 10 VIEWPOINTS for New York, and need to be dealt with. 11 Last week, a tourist from Arkansas told a ticket hawker THE LIST “no” and was slammed to the ground, fracturing his skull. It FEATURES was hardly the first violent 13 COVER STORY incident. On Feb. 8, an illegal tout attacked an authorized As tourism has seller representing Statue Cruises. In late January, a ticket 19 GOTHAM GIGS grown in seller slashed a woman at Battery Place. “ 20 EXECUTIVE MOVES “When you have people coming from all over the lower Manhattan, 21 SNAPS country and the world to see the 9/11 museum, to go on the so too has 22 FOR THE RECORD Staten Island Ferry, they shouldn’t be harassed, let alone 23 PHOTO FINISH assaulted,” said Jessica Lappin, president of the Alliance for this problem Downtown New York. “The regulations just haven’t kept pace.” Ticket selling is illegal on park property, but police have less leeway to make arrests if sales take place on sidewalks. The First Amendment offers some protection P. 19 Dr. Karen Lee for services (but not goods) sold on public space, Lappin said, and ticket sellers are not required to register with the state the same way ticket resellers at ball games are. “People are more belligerent,” said Warrie Price, president of the Battery Conservancy. “Whether it’s Times Square or the Battery, these meccas of tourism have attracted more and more illegal work.” The de Blasio administration moved quickly last summer to address an outbreak of aggressive street sellers in Times Square. A task force in October recommended some common-sense solutions: a greater police presence and legislation limiting when and where street sellers can operate. The city says it has met with downtown stakeholders, resulting in an increase of 12 parks enforcement officers. The mayor must do more. “As tourism has grown in lower Manhattan, so too has this problem,” Lappin said. More than 14 million tourists visited downtown last year, up 2 million from 2014. That number will grow. Twenty-one hotels are in development, with 1,540 rooms coming online this year alone. Given the billions of dollars poured into lower Manhattan to make it more ON THE COVER welcoming for New Yorkers and visitors alike, it’s disheartening that this problem PHOTO: BUCK ENNIS has been allowed to metastasize. “We have this incredibly beautiful waterfront,” Price said. “It’s never been grander than what we have now. We have to ensure that this asset is not tarnished by illegal activity.” DIGITAL DISPATCHES Go to CrainsNewYork.com READ A joint venture CONFERENCE CALLOUT MARCH 22 between Northwell and > CRAIN’S BUSINESS GoHealth Urgent Care plans OF STARTUPS to add 20 clinics in the area this year. LEARN HOW to get startups off ■ the ground and grow them. Facebook is looking for Panelists include Howard Lerman, 500,000 square feet to CEO of Yext (pictured left); expand or consolidate its Rachel Shechtman, CEO of Story; city office, even though the and Small Business company just took more space at 770 Commissioner Gregg Bishop. Broadway. ■ JOHN JAY COLLEGE OF The city plans to offer visas to up to 80 CRIMINAL JUSTICE international entrepreneurs. The Economic Development Corp. and CUNY said the 8:30 a.m. to 10 a.m. International Innovators Initiative could gen- [email protected] erate 700 new jobs in the next three years. LISTEN to a discussion on virtual restau- Vol. XXXII, No. 8, February 22, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double rants, the fate of Fairway and the developer issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address trying to hold on to his Sutton Place super- changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit, MI 48207-2912. tower. Music by Relations. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. CrainsNewYork.com/podcast (GST No. 13676-0444-RT)

FEBRUARY 22, 2016 | CRAIN’S NEW YORK BUSINESS | 3 20160222-NEWS--0004-NAT-CCI-CN_-- 2/19/2016 7:44 PM Page 1

AGENDAWHAT’S NEW FEBRUARY 22, 2016 Fast response to tragedy has unintended consequences

hen elected officials respond slowly to tragedy, they get pummeled by the media and the voters. When they act quickly, they reap praise or at least stave off criticism—and, they hope, serve the public interest. WSo we understand why Mayor Bill de Blasio took immediate action when an exceptionally tall crawler crane toppled on Feb. 5, killing an Upper West Side resident. The mayor ordered all crawler cranes shut down when sustained winds reach 20 miles per hour. The policy would THE COLLAPSE continue, he said, until a task force could investigate and suggest ways of this crawler crane led City to prevent similar accidents. It worked: The media moved on, and Hall to impose even Gov. Andrew Cuomo didn’t have a chance to blame the mayor. rules that have stalled But in his eagerness to be responsive and avoid another incident, projects. de Blasio might have acted rashly. Consider that the crane fell while being lowered and secured It is also wreaking havoc on developers, contractors and construc- because 30-mph winds were forecast, tion workers. When a crane is shut per longstanding city policy. The new Shutting down all 380 crawler cranes down, the ripple effect is vast. Some 20-mph rule dramatically increases the when winds reach 20 mph has wreaked workers don’t get paid; others get paid frequency of this tricky procedure. That havoc on developers, contractors and but can’t work. Delays build on each risk must be balanced against that of other. With the wind threshold reached leaving cranes in place. The accident’s construction workers on more than 40% of days, according to cause remains unknown. one industry analysis, and some 380 Second, crawler cranes vary in height and other ways that demand crawler cranes in use citywide, this is no small matter. different responses to windy conditions. Many are designed, built and Yet when a union representing idled workers began calling and writ- tested to operate in winds well above 20 miles per hour, and routinely ing the Department of Buildings about the policy, it was met with silence do. If a 20-mph wind creates grave danger, there would have been many from the agency, a union official said. Two weeks after the fatal mishap, crane accidents over the years. Crane manufacturers know their major construction-industry groups were still missing from the mayor’s machines better than anyone and should have been consulted, along task force and pleading for meetings. This is unacceptable. with trade groups. The mayor’s blanket policy appears to be idling City Hall must promote safety, of course, and take action when prob- some cranes unnecessarily. lems arise. It must be responsive, yes, but also responsible. – THE EDITORS

FINE PRINT New York City still beats runner-up Los Angeles as America’s fashion capital. More than 900 fashion companies are based here, and the industry employs 183,000 people, half in retail. Nearly 40% of all U.S. fashion designers work here. The business generates $11 billion in wages and $2 billion in taxes each year. L.A. has 99,000 apparel workers, 25% of U.S. designers, and pays almost $7 billion in wages, a congressional report says.

BY GERALD SCHIFMAN STATS 25 WORDS OR LESS GRAFFITI GROWTH THE DE BLASIO administration is intensifying

its efforts to reverse a rise in graffiti CITY AND THE We both tried to vandalism. “ % Increase in citywide graffiti come back and complaints in 2015 compared 15 with the previous year failed. I don’t Square feet of graffiti removed by the city’s Economic Development Corp. in have any insight 5.9M 2015, a 45% increase from 2013 % Drop in arrests for graffiti or advice for him in 2015 compared with 15 2014 —Former Rep. Anthony Weiner, EDC’s expenditures on speaking to The Wall Street Journal $ its Graffiti-Free NYC Program last year about Eliot Spitzer’s latest problem 1.86M with a young woman in a hotel room FY2017 cost of Mayor Bill de Blasio’s $ graffiti- and litter-targeting CleaNYC 4.2M program, unveiled earlier this month

BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY Sources Mayor’s Management Report, NYCEDC, NYPD, NYC Mayor’s Office, CBS

4 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 22, 2016 20160222-NEWS--0005-NAT-CCI-CN_-- 2/19/2016 7:45 PM Page 1

AGENDA ICYMI CRAINS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan assistant to the publisher Alexis Sinclair, 212.210.0701 EDITORIAL Paid-leave law too generous editor Jeremy Smerd assistant managing editors Erik Engquist, for biz, but voters love it Peter S. Green web editor Amanda Fung copy desk chief Steve Noveck HE BUSINESS COUNCIL OF NEW YORK STATE art director Carolyn McClain released photographer Buck Ennis an analysis last week showing that the paid- senior reporters Joe Anuta, Aaron Elstein, Matthew Flamm, Daniel Geiger family-leave program proposed by Gov. Andrew reporters Rosa Goldensohn, T Jonathan LaMantia, Caroline Lewis Cuomo would be the most far-reaching in the U.S. data reporter Gerald Schifman “Imposing additional state-level requirements would web producer Peter D’Amato columnist Greg David only add to the perception that the Empire State is contributing editors Tom Acitelli, Theresa Agovino, Barbara Benson, hostile to business,” said Heather Briccetti, the council’s Erik Ipsen, Suzanne McGee, Judith Messina, Cara S. Trager president and CEO. ADVERTISING The business group says allowing employees 12 www.crainsnewyork.com/advertise advertising director Irene Bar-Am paid weeks to care for new children or sick loved ones [email protected] or 212.210.0133 would put an undue burden on small businesses, senior account managers Zita Doktor, Jill Bottomley Kunkes, Rob Pierce, though workers would fund the system. Stuart Smilowitz But state legislators who defend that position could account managers Jake Musiker senior marketing coordinator face a burden of their own come November, when LeAnn Richardson sales/events coordinator Ashlee Schuppius they all face re-election. According to the latest Siena 212.210.0282 [email protected] College poll of New York state registered voters, paid family leave garners 77% support in the suburbs ONLINE general manager Rosemary Maggiore and 69% support among Republicans. Among women, it is viewed even more favorably: 82% like it. 212.210.0237 Paid leave’s overall 80% approval surpasses another popular Cuomo cause—a $15 minimum wage—by [email protected] CUSTOM CONTENT 15 points. director of custom content Patty Oppenheimer 212.210.0711 Democrats trying to win control of the state Senate will campaign on the two measures if [email protected] Republicans block them. Senate Majority Leader John Flanagan, R-Smithtown, has signaled that he is EVENTS www.crainsnewyork.com/events open to compromise. He could look to exempt smaller businesses from paid leave and push the $15 director of conferences & events Courtney Williams, 212.210.0257 wage further into the future. – ROSA GOLDENSOHN [email protected] manager of conferences & events Adrienne Yee A lot of lots DATA POINT AUDIENCE DEVELOPMENT device by a firm called S.A.L.T. that director of audience & content The more than 1,000 city-owned FAIRWAY IS ON THE CUSP OF helps hypertension patients meas- partnership development vacant lots across the five boroughs ure their salt intake. Hospital part- Michael O’Connor, 212.210.0738 DEFAULT. THE SUPERMARKET [email protected] could hold as many as 50,000 units ners include Mount Sinai, Weill CRAIN’S 5BOROS of affordable housing, Comptroller CHAIN SOLD IN 2007 FOR $150 Cornell and the insurer Healthfirst. www.5boros.com Scott Stringer charged in an audit, Irene Bar-Am, 212.210.0133 MILLION. ITS MARKET VALUE [email protected] accusing the city’s Department of Stop-and-frisk stumble SPECIAL PROJECTS Housing Preservation and TODAY IS $16.5 MILLION NYPD officers failed to document manager Alexis Sinclair 212.210.0701 Development of not acting fast why they stopped New Yorkers for [email protected] REPRINTS enough to get new homes built. questioning in about 25% of such reprint account executive Krista Bora HPD chief Vicki Been shot back that Hornblower promises to have the incidents last year, according to 212.210.0750 many of the sites are being readied needed boats ready to start service Peter Zimroth, the special monitor PRODUCTION production and pre-press director for construction while others are in in 2017. It must integrate service appointed to ensure the department Simone Pryce floodplains. with the losing bidders, who now doesn’t unfairly target blacks and media services manager Nicole Spell run East River ferry services. Hispanics. In most cases, supervi- SUBSCRIPTION CUSTOMER SERVICE Net transfer www.crainsnewyork.com/subscribe sors signed off on the stop-and- [email protected] The Brooklyn Nets have moved Bad Apple frisk paperwork, even when officers 877-824-9379 (in the U.S. and Canada). their training gym to Sunset Park, NYPD Commissioner Bill Bratton omitted required information. $3.00 a copy for the print edition; or $99.95 one year, $179.95 two years, for print Brooklyn, from East Rutherford, accused Apple of “corporate irre- – PETER S. GREEN subscriptions with digital access. N.J. The new facility includes two sponsibility” for refusing to help to contact the newsroom: www.crainsnewyork.com/staff basketball courts, a theater, a pool investigators unlock an iPhone that 685 Third Ave., New York, NY 10017-4024 and a 3,000-square-foot hospitality belonged to ISIS supporter Syed phone: 212-210-0100 fax: 212-210-0799 lounge. Farook, who, along with his wife, Entire contents ©copyright 2016 killed 14 people in San Bernardino, Crain Communications Inc. All rights reserved. ®CityBusiness is a registered Times Square cop shop Calif., in December. trademark of MCP Inc., used under license The New York Police Department agreement. plans to spend $3.5 million to make Union Square Café flies Delta CRAIN COMMUNICATIONS INC. BOARD OF DIRECTORS its Times Square substation more Danny Meyer’s Union Square Café chairman Keith E. Crain attractive to visitors and recruits, The will be making menus for Delta Air president Rance Crain treasurer Mary Kay Crain, Cindi Crain New York Times reported. Locker Lines’ first-class passengers, executive vp, operations William Morrow rooms and a large holding area for including its classic beef short rib executive vp, director of strategic detainees would be removed. stracotto. operations Chris Crain executive vp, director of corporate operations K.C. Crain Ferry contract Medical startups Piazza on High senior vp, group publisher David Klein The High Line’s last leg will vp/production, manufacturing David Kamis Hornblower Cruises & Events, The city’s Economic Development chief financial officer Thomas Stevens which runs boats to the Statue of Corp. named 11 winners of $50,000 include a 4,500-square-foot chief information officer Anthony DiPonio Liberty and Ellis Island, beat out a grants to launch pilot programs piazza over 10th Avenue at West founder G.D. Crain Jr. [1885-1973] group including New York with local health care institutions. 30th Street, according to new chairman Mrs. G.D. Crain Jr. [1911-1996] secretary Merrilee Crain [1942-2012] Waterway and New York Water Taxi The products include a peer-to- renderings. Construction will to run new ferry services between peer care model for older adults begin later this year.

AP IMAGES Brooklyn, Queens and Manhattan. created by AgeWell Global, and a

FEBRUARY 22, 2016 | CRAIN’S NEW YORK BUSINESS | 5 20160222-NEWS--0006-NAT-CCI-CN_-- 2/19/2016 5:04 PM Page 1

AGENDA INSTANT EXPERT CRIMINAL JUSTICE BY ERIK ENGQUIST What would it take to close Rikers Island? [in 5 steps]

THE PLAYERS THE ISSUE City Council Speaker Melissa Mark-Viverito this month generated interest in the idea of closing Rikers, hailing it as a dream worth The movement to 2 fighting for, and Gov. Andrew Cuomo promptly amplified her call. reform criminal Mayor Bill de Blasio declared it to be “a noble concept, but one that 1 justice has taken would cost many billions of dollars, and we do not have a viable on Rikers Island as a pathway to that.” He added that it’s unclear where Rikers’ inmates cause as a result of would go. Preet Bharara, the U.S. attorney in Manhattan, sued the city persistent violence at to stop the epidemic of violence at Rikers, notably correction officers’ the massive city jail practice of beating up detainees, while the officers’ powerful union leader, complex and the logistic Norman Seabrook, has focused attention on inmates assaulting his and social problems of members. The mayor’s ambitious chief investigator, Mark Peters, housing detainees far showed how easily drugs and other contraband are smuggled in. from their families and Minority activists have also emerged as a force. Correction courthouses. The Commissioner Joseph Ponte made his name reforming the jail system isolated island is at the in Maine, but New York’s is several orders of magnitude more daunting. top of the East River, Giant consulting firm McKinsey is being paid $9.2 million to craft and between the Bronx and LaGuardia Airport in Queens. Rikers implement an anti-violence plan. holds about 10,000 of the city’s 13,500 people who have just been arrested, are awaiting trial and unable to post bail, or are serving short sentences. The city has smaller facilities in Brooklyn, Manhattan and the Bronx. Because 88% of the people in the Department of Correction’s custody are black or Latino, the matter has taken on racial overtones. YEAH,BUT... With so many chefs in the Rikers-reform kitchen, the issue will be on the front burner for a while. Political 3 Achieving consensus, however, will be a SOME BACKSTORY agendas abound. challenge. Agendas abound: Mark-Viverito can elevate her profile and emerge from the mayor’s shadow; Martin Horn, the former correction That will ensure Cuomo can burnish his justice-reform credentials and commissioner, tried to expand the Rikers reform stays pressure his whipping boy de Blasio; the mayor can 4 city’s Brooklyn detention center in the deliver for his African-American base. Seabrook’s mid-2000s but was defeated by local on the front burner for job—at which he excels—is to block pro-detainee opposition. Overcoming such NIMBYism is a while. Achieving measures and crackdowns on officers. De Blasio has essential because closing Rikers requires expanding said changing Rikers’ corrupt culture will take years, but detention facilities in Brooklyn and the Bronx consensus, Bharara has a federal monitor in place and won’t wait and building a new one in Queens, where the however, will be a that long. Any redevelopment of the island would be old jail is shuttered. Mark-Viverito and her constrained by airplane noise and limits on building fellow council members have not said they challenge heights because it’s in LaGuardia’s flight path. would welcome more detainees in their districts, even though borough jails trigger few community complaints. Horn says expansions could add 5,000 beds, and the Rikers population could be reduced by several thousand more through faster WHAT’S NEXT processing, more diversion of the mentally ill (who make up 40% of Rikers detainees) to The City Council and Police Commissioner Bill treatment, and removing 16- and 17-year-olds Bratton (pictured) have agreed on legislation from adult jails—as Cuomo is pushing state 5 that could cut down on arrests and reduce legislators to do. New facilities could curb pressure on Rikers. But the prospects for “raise the violence and smuggling through better design age” legislation in Albany are uncertain because and programming, experts say. incumbents fear being branded as soft on crime in an election year. De Blasio is wary of that label as well, and lets the more conservative Bratton negotiate with the council on arrest policy. Expansion of detention centers in the boroughs is not on the drawing board, let alone funded. And even the reform-minded Horn would leave 800 or 900 convicted prisoners at Rikers to serve out their sentences. The bottom line: Although calls to close the jail complex are growing, Rikers is likely to be with us for years to come. AP IMAGES

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AGENDA TECHNOLOGY

Startups stumble trying to make it easier to own a car in the city On-demand parking valets cut service, seek new markets BY MATTHEW FLAMM

aybe New seed funding while Zirx Yorkers with cars want- Long-term parking Yorkers raised at least $36.4 mil- ed to use them mainly on “is a much more pre- don’t lion, and Luxe has raised weekends. Parking a car dictable and scalable need three $25.5 million. for people going out to business than the on- SKATEBOARD SERVICE: Luxe still offers valets in the city valet-parking startups Kao says his company dinner was costly and demand parking busi- M but has cut back elsewhere. vying for their business. found that most New time-consuming. ness,” Kao said. Zirx, a Silicon Valley-based company that launched a service to park people’s cars for them while out on the town, closed its New York City consumer business last month. Valet parking for corporate clients will continue, it said. “Consumer on- demand parking, while one of those novel, amazing experiences for customers, is a very difficult business to Join us for a scale,” Zirx CEO Sean Behr wrote in a blog post earlier this month. global meeting New Yorkers who need a valet still have Luxe, another Silicon of the minds. Valley startup, which launched in parts of Brooklyn and Man- hattan last July. Its PUT OUR TAILORED INSIGHTS TO WORK FOR YOU. blue-jacket-clad valets will pick up a car, park To make confident decisions about the future, middle market it in a lot or garage and leaders need a different kind of advisor. One who starts by return the vehicle when understanding where you want to go and then brings the summoned. ideas and insights of an experienced global team to help Luxe shut down its get you there. Philadelphia and Bos- Experience the power of being understood. ton operations in Experience RSM. December, but says its rsm us.com New York business is profitable. But Luxe has been phasing out phone support for its customer service, relying on text- messaging instead. The company’s re- maining competitor for the consumer market here, Valet Anywhere, called it a mistake to drop phone support. “If Luxe has your car and you can’t get a live per- son to find out what’s going on, [customers] are going to freak out,” said CEO Robert Kao. Launched in 2014, Manhattan-based Valet Anywhere focus- es on long-term parking: delivering cars to RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax and consulting firms. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. owners Friday night, and returning them to garages on Sunday. Valet Anywhere has McGladrey is now RSM. Learn more about our unified global network at rsmus.com/mcgladrey raised $2.4 million in

FEBRUARY 22, 2016 | CRAIN’S NEW YORK BUSINESS | 7 20160222-NEWS--0008-NAT-CCI-CN_-- 2/19/2016 7:46 PM Page 1

AGENDA REAL ESTATE

AS THE MEATPACKING DISTRICT New York state never used becomes a destination for tech and design firms, a tower changes bond quota denied to city plans, shifting from a hotel to offices. Affordable-housing plan scuttled by subsidy tiff BY JOE ANUTA

he de Blasio administration called the revelation “very concerning,” abandoned plans to build 1,200 in an interview. “At the end of the day, affordable apartments last year we are trying to build affordable housing when New York state said it at an unprecedented pace.” Tcouldn’t extend privileges to the city to Affordable-housing advocates were issue about $150 million in federal tax- livid that 1,200 units worth of shovel- exempt bonds. Albany said it had pressing ready projects went unfunded after the needs elsewhere and had bumped up state said it didn’t have enough bonds to against the limit of the subsidy. spare in November of 2015, yet ended the But numbers released by the state last year $500 million under what’s known by week reveal Albany never issued other financiers as the bond cap. bonds using that borrowing authority, Last May, the state indicated that about leaving affordable-housing advocates to $785 million in bonds might be available believe the city’s plans had fall- for the city. By Dec. 31, the city en victim to another chapter in had received $595 million, the ongoing spat between Gov. according to the state—its low- Andrew Cuomo and Mayor Bill 1,200 est allocation in five years. de Blasio. AFFORDABLE The discrepancy affected A state finance official, who HOUSING UNITS seven affordable-housing spoke on condition of were left unbuilt developments, kicking off a anonymity, said the money public spat with the Cuomo wasn’t available in time for the city to use administration. Albany countered that because it was tied up in projects that fell there were never any guarantees regard- through at the last minute. ing the city’s share of the pot, and that the “That’s what people say when they are $500 million in leftover bonds will be making excuses,” said City Councilman used this year. They said the surplus that Brad Lander, who worked for affordable- is now available is the result of projects housing nonprofits before taking office. falling through at the last minute—too Meatpacking district “The state needs to stop playing politics.” late for the bonds to be redirected to the Alicia Glen, the city’s deputy mayor city. An upstate trash-to-energy plant hotel flips to offices for housing and economic development, used half the allotment. Ⅲ hotel planned for the the entire property to Internet north end of the security firm Palantir. The rent meatpacking district rent was about $90 a square foot. Bauhouse battles back to keep will instead rise as an “We get a call a week from A18-story office tower with tenants looking for high-end Sutton Place luxury spire annual rents as high as $150 a boutique office space,” said square foot, in the latest sign of a Cynthia Wasserberger, a broker he future of a giant Norman or refinance the property to pay off its growing market for high-priced at JLL who specializes in top-of- Foster-designed luxury apart- debt to Gamma. office space in one of the-line leasing deals. “Because ment tower on Sutton Place is Bauhouse said it had the site appraised Manhattan’s trendiest neigh- there are now several buildings in doubt. The project’s chief by Cushman & Wakefield for $269 mil- borhoods. being built in the meatpacking Tlender has scheduled a foreclosure auc- lion. That assessment predicted the pro- Boston-based Rockpoint district, it could be a little com- tion for Feb. 29, and its developer is ject’s 113 luxury condos would be worth Group is leading a consortium petitive, but the market isn’t sat- scrambling to find cash to pay $1.045 billion on completion. to build the 270-foot-high, urated, and demand right now is off the loan and break ground Last year, Bauhouse 130,000-square-foot building robust.” on the site. secured a $127.25 million at 412 W. 15th St., between Aurora Capital and Vornado Developer Joseph senior mortgage and a $20 Ninth and 10th avenues. Hotel Realty Trust said they will soon Beninati’s Bauhouse Group million mezzanine loan with operator and developer begin construction on a $100 sued the lender, N. Richard Gamma to purchase the Highgate Holdings remains a million, nine-story office Kalikow’s Gamma Real property and prepare it for partner in the project, along building at the corner of West Estate, in a bid to fend off development. with the Meilman family, which 15th Street and Ninth Avenue. foreclosure on the proposed Beninati has struggled to leased the land to Rockpoint. “The average-size tenant in 68-story spire at 428-432 E. secure a construction loan to The tower will connect to Manhattan is about 5,000 58th St. The suit accuses pay off Gamma and begin 85,000 square feet of office and square feet, and there really are Gamma of rushing through building the tower, which retail space Rockpoint is creat- not a lot of brand-new state-of- the foreclosure process and neighbors oppose for its ing in renovated buildings on the-art buildings that have dissuading potential bidders soaring height. The debt West 14th Street. been built catering to them,” who might be willing to pay expired Jan. 19, according to Rockpoint’s decision to con- said Paul Amrich, a broker at enough to save Beninati and the suit, and Gamma quickly vert the project to offices comes CBRE who is handling leasing Bauhouse from losing millions moved to seize the property as the meatpacking district is for Rockpoint along with col- of dollars on the deal. using the mezzanine loan. attracting a growing number of league Neil King. Bauhouse charged that Mezzanine loans allow deep-pocketed tech, finance and Rockpoint’s tower may be the Gamma purposely structured lenders an easier path to fore- creative companies. Several new, last skyscraper in the area. The its $147.25 loan to allow it easy closure than conventional small office buildings are being company poured its foundations seizure of the site, and asked debt. constructed to house them. before a zoning change took the court to issue a temporary Gamma demanded a $45 Rockpoint recently finished a effect last year that set a cap on injunction to block the fore- million exit fee to be paid on 100,000-square-foot, eight- buildings in the meatpacking closure auction. A delay could SUTTON PLACE TOWER: top of the $147.25 million story building next door at 430 district at 130 feet tall.

NEOSCAPE buy time for Bauhouse to sell See you in court. loan. – DANIEL GEIGER W. 15th St., where it pre-leased – DANIEL GEIGER

8 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 22, 2016

20160222-NEWS--0010-NAT-CCI-CN_-- 2/19/2016 10:42 AM Page 1

AGENDA VIEWPOINTS

THE FUTURE LaGuardia Airport— according to Gov. Question for pols: Who’s Andrew Cuomo going to pay for all this? Talk is cheap. Building projects in New York is not

WHEN DID the lead- for indebted municipalities. ers of New York Let’s start with the Rikers “pro- stop caring about posal,” although that’s a pretty how much their charitable way to describe it. How ideas cost? much would it cost to build jails in That’s the only each borough? Would it be $1 billion real question that each, or $2 billion or more? Where ought to be asked— would they be built? Name one GREG DAVID and answered— neighborhood that would volunteer following City to host a new jail. What would the Council Speaker Melissa Mark- city be unable to afford to do if it Viverito’s embrace of shutting pursued the speaker’s dream? down the Rikers Island cor- It was fitting that the reported the cost of the Central to raise taxes and because both the rectional complex and governor came to the Terminal alone had soared past $4 city and state have such high debt replacing it with smaller council speaker’s defense, billion. loads, they will be tempted to make jails in each borough. $4B because Cuomo has Mayor Bill de Blasio was the voice fiscally irresponsible moves to push I know people like Gov. become a big advocate of of reason this month in casting the costs into future years. REVISED COST Andrew Cuomo would say I estimate of the “propose now, worry doubts on the Rikers plan, but he too The governor has taken several should stop being such a LaGuardia’s later” style of governing. has been guilty of this approach—if steps down this road using one-time Debbie Downer. We are proposed Central Consider his much-bally- on a smaller scale. The $25 million bank lawsuit settlements to prevent New Yorkers, he likes to Terminal hooed promise in July to cost of a new barn for carriage horses toll increases on the new Tappan Zee say, and we can figure out overhaul the despised in Central Park was apparently pulled Bridge being built and the New York things like this. Others will say LaGuardia Airport. At the time, his from thin air. His $2.5 billion street- State Thruway. these ideas are just PowerPoint pre- administration said the Central car scheme for the Queens-Brooklyn For decades, the scars of the city’s sentations and there’s no reason to Terminal would be replaced, as waterfront has more than a few ques- fiscal crisis served to restrain New get excited. would Delta’s newly refurbished tion marks, too. Yorkers’ ambition. It’s a shame the Neither is true. These ideas are a Terminals C and D, and a new link to Why care about this? Because history has been forgotten. Ⅲ slippery slope to the kind of place the subway would be completed— projects like these put pressure on where cities and states get in big all for something like $4 billion. governors and mayors to deliver GREG DAVID blogs regularly trouble. Sort of like a Rikers Island Last week, The Wall Street Journal something. Because they don’t like at CrainsNewYork.com.

full meal they get all day. daily nutritious lunch. This can be Yes, there is such a thing The current, decades-old struc- an insurmountable financial burden ture of free lunch sadly reinforces on working families struggling to as a free lunch the worst social and economic hier- meet basic needs in one of the archies that play out in lunchrooms world’s most expensive cities. For $3.6 million, the city can end school cafeterias’ income divide across our city. Children eating free Universal lunch would provide BY LETITIA JAMES AND LIZ ACCLES lunch are taunted by their peers, them significant relief. and many choose to go hungry In September 2014, universal free instead of facing ridicule—especial- school lunch was launched in mid- o child in our city should Yorkers behind. Yet he did not dle schools, and the early results go hungry at school. mention anything about universal have been promising: An additional Universal free lunch— free lunch, which would be one of Nearly one-third of 7,300 students are eating every day. offered in major cities the most effective, far-reaching and “students who qualify for This was a great first step, and we Nincluding Chicago, Boston, Detroit, fiscally responsible anti-hunger must expand on this progress and Dallas and the District of Columbia— initiatives the city could undertake. free school lunch don’t ensure that students at all grade is critical to making sure all students Offering free lunch to all New levels have universal free lunch. are focused and ready to learn. Yet York City public-school students— eat it. For many, it is We commend the mayor for here in New York, efforts to provide through a federal incentive program because of the stigma making public education a corner- children with the universal lunch called the Community Eligibility stone of his administration, with they need to thrive are stalled at the Provision—will end the income of being poor exciting new initiatives to lift up highest levels of City Hall. divide in cafeterias, ease the work- children living in poverty. But we In his 2017 preliminary budget, load for school staff and cost the cannot underestimate the well- Mayor Bill de Blasio acknowledged city only an additional $3.6 million ly as they enter high school. documented impact that hunger that the city’s wage growth has dis- a year after state and federal reim- A startling 78% of New York City has on the health, academic success proportionately benefited the bursements. And for many of our public-school students qualify for and mental well-being of our stu- wealthy, leaving low-income New children, it will provide the only free school lunch, but close to one- dents. third of those low-income students If we truly want a healthier, don’t eat it. For many, it is because more equitable city, we must make CORRECTIONS of the stigma. If no children were the common-sense investment in The name of the trade group METROPOLITAN MOVERS ASSOCIATION was misstated in the Feb. 8 paying for lunch, none would be universal school lunch. Ⅲ “Teamsters target Sony for using ‘wrong’ movers,” as was the title of FRANK MCNALLY, chief operations officer at the Advance Group. singled out as poor. TORYA BEARD is a choreographer and an artistic associate at the Classical Theatre of Harlem. Her given Another beneficiary would be Letitia James is the New York City pub- name and title were misstated in the caption of the Feb. 8 “How Ty Jones staged a theater’s comeback.” the many families who don’t quali- lic advocate. Liz Accles is executive CONSULTECH represents transportation companies when they run into trouble over their use of independent fy for free lunch but still struggle to director of Community Food Advocates, contractors. The firm’s name was misspelled in the Feb. 8 “Uber Rushes In.” Also, Uber does not carry $1 million in liability insurance for its drivers in New York City. This information was misstated in the story. afford feeding their children. On a Manhattan-based nonprofit that In the Jan. 25 Executive Moves, LENDING.COM was referred to incorrectly as a peer-to-peer lending compa- average, it costs a family nearly works to improve and expand nutrition

GOVERNOR.NY.GOV ny. It is a lending-as-a-service platform. $1,000 per year to feed one child a programs for children.

10 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 22, 2016 20160222-NEWS--0011-NAT-CCI-CN_-- 2/19/2016 10:43 AM Page 1

AGENDA THE LIST THE MOST ACTIVE VENTURE-CAPITAL FIRMS Ranked by the number of investments in New York metro area startups in 2015

TRENDS

APP ALLOCATION Internet-focused companies net two-thirds of venture-capital deals in Manhattan. In San % Francisco, a higher portion of deals go to mobile companies and other firms, such as health care and green-tech startups. +38.7 Internet Mobile Other RISE IN THE SUM OF NEW YORK metro area investment dollars in 2015, Manhattan compared with just a 7.5% increase for Silicon Valley

66.0% 19.5% 14.6%

San Francisco $2.4B TOTAL OF VENTURE-CAPITAL investments in the New York metro area in 60.0% 23.5% 16.5% 2Q 2015, the highest single-quarter amount since dot-com bubble-era 3Q 2000

SOURCE: CB Insights SOURCE: PwC/NVCA MoneyTree Report

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CONTINUED ON PAGE 12

FEBRUARY 22, 2016 | CRAIN’S NEW YORK BUSINESS | 11 P012_CN_20160222.qxp 2/19/2016 6:04 PM Page 1

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12 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 22, 2016 20160222-NEWS--0013-NAT-CCI-CN_-- 2/19/2016 3:17 PM Page 1

FOOD | GHOST RESTAURANTS

ASSEMBLY-LINE sandwich-making at Green Summit’s basement kitchen

RESTAURANTS IN NAME ONLY Why bother with tables, waitstaff and huge real estate costs? All you need these days is a kitchen and an app By Cara Eisenpress

PHOTOGRAPHY BY BUCK ENNIS

ight restaurants. Two kitchens. One company. Zero which includes Seamless, served $2.4 billion of food in 2015 and helped storefronts.That’s the formula one food business has Green Summit grow with a line of financial support. used to make and deliver 7,500 meals a week and gen- Without the burden of managing retail spaces, Green Summit can erate millions of dollars in revenue.“We’re fulfilling a quickly cater to fast-evolving consumer preferences and deliver high- demand that’s not being filled,” said Peter Schatzberg, er returns to its owners. The company sells its salads, sandwiches, bur- 39, a founder and partner of Green Summit Group. ritos, Pan-Asian rice bowls, meatball subs, milkshakes and juices “Consumer preferences are changing faster than what others are will- under brands that exist only as logos on paper bags and websites: Eing to adapt to.” Authentic, ’Leafage, Butcher Block, Maya Blue, Braised, Bushwick, The eight brands exist only online, delivering in midtown Grind Meatballs and Crust Deli. Manhattan and Williamsburg, Brooklyn, and are a part of a growing Unlike the company’s brick-and-mortar competitors, Green Summit food takeout industry dominated by Grubhub. The delivery platform, can shift menu items and create a branded online-only “restaurant” CONTINUED ON PAGE 14

FEBRUARY 22, 2016 | CRAIN’S NEW YORK BUSINESS | 13 20160222-NEWS--0014,0015-NAT-CCI-CN_-- 2/19/2016 3:18 PM Page 1

FOOD | GHOST RESTAURANTS

tion? It’s low over- roasting chicken with appropriate spices. That A LETTER GRADE ON THE DOOR IS THE head and high chicken was then used as an ingredient in dishes ONLYHINT OFTHE FOOD PREP GOING potential sales—but across many menus. The approach gives Schatzberg are you being truth- an economy of scale that prioritizes freshness and ON IN THE 6,000 SQUARE FEET BELOW ful to the public?” use of unprocessed ingredients over culinary In the two and a authenticity. “My tacos are not going to taste like half years since the tacos from Mexico City,” he said. that appeals to the flavor of the moment— concept’s debut, almost no one has tried to go By around 10:30 a.m., some 50 prep cooks, line whether it’s low-carb, low-fat, gluten-free, or to a physical location, said Schatzberg, answer- cooks and expediters on seven lines had assembled all things bacon.“Variety is key,” said ing a concern about the role of food establish- the first of 600 daily lunches. Between its two loca- Schatzberg. “There’s variety in terms of ethnic- ments that offer no storefront, counters or tions, the company employs more than 200 people. ity in cuisine types, but also along the healthy chairs. While that seems like a lot to feed a relatively small spectrum. If you can have vegan, vegetarian, number of diners, it’s the logical number to get food chicken and shrimp, you can cater to a broader out in a reasonable time, according to ICE’s Zagor, audience. It’s a variety of categories, and vari- O PASSERSBY, the Manhattan restaurant is who said the figure jibes with the firm’s ability to ety within categories.” nothing more than a pair of opaque glass make a profit. “This is complex—you’ve got 600 In late February, a ninth “restaurant” will T doors next to a Potbelly sandwich shop on orders to get out,” the professor said. materialize in the same kitchen—a sushi joint East 44th Street between Lexington and Third The lines organize around a menu category: sal- called Hummingbird whose wares were mar- ads, quinoa bowls, sandwiches, drinks. Each brand ket-tested as menu items under two of the has an expediter at a small station who receives the company’s existing brands. After that, food and packs it. Finished orders go out to the Schatzberg and his partner, Todd Millman, 45, front in paper sacks imprinted with each brand’s plan to broaden their geographic reach with logo. They are then stuffed into Seamless bags and kitchens in the financial district in the spring, organized by customer and final destination. downtown Brooklyn in early summer, and the Deliverymen pile a dozen bags into duffels, which Upper East Side and East Village by the end of they load onto their backs before exiting up the the year. With these locations, they calculate stairs to depart on bikes or on foot. that 90% of New York’s online food-ordering When business slackens around 1 p.m., workers population will be within their delivery range. eat and clean up before the dinner rush between (They are scouting a Chicago outpost to open 5:30 p.m. and 8 p.m., when another 600 orders this year as well.) flood in. Schatzberg and Schatzberg was run- Millman built the com- ning an organic deli on pany for less than $1 West 45th Street named million, and together FreeFoods when he the brands brought in launched Green Summit $10 million in revenue with one online-only in 2015. They anticipate brand, Authentic. “I their expansion plans observed that half my will triple revenue to volume was delivery,” $30 million this year. he said. Millman was The model has few operating a hospitality similar rivals in New consulting company York. One, Maple, called Blue Radish and backed by $25 million owned several midtown from San Francisco venture fund Greenoaks delis that delivered through Seamless. Capital, has hired Momofuku chef David Chang When Millman frequented Schatzberg’s store, as its chief culinary officer. It opened last April Millman would pepper him with suggestions on and delivers sophisticated farm-to-table-style improving the business. Their observations sparked food to homes and offices in lower Manhattan the concept of a delivery-only kitchen. and parts of midtown. (Joshua Kushner’s Thrive Schatzberg approached contacts at Seamless, Capital invested $4 million in a seed round.) then separate from Grubhub, about listing his Savory, also a kitchen-only caterer, delivers menu. Only after the merger was he “cleared up the to both individuals and corporate clients in ranks” to go forward, and Authentic’s sandwiches lower midtown. But both are companies with a and salads made their way onto the platform. (The single identity. Neither has the gamut of brands Seamless brand still monopolizes New York City’s that Schatzberg says is fueling Green Summit’s STEPS TO DELIVERY: Food is cooked en masse (left), then takeout scene; Grubhub dominates in other locales, success. assembled (top), bagged according to brand (right) and such as its Chicago base.) Green Summit has no head chef who tests delivered by bicycle (above). The duo engineered dishes to survive the rigors and retests recipes. Instead, Schatzberg racks of city transportation. “Other people only realize his brain for names and concepts for the menu avenues. Health inspectors have given the kitchen later that delivery will be 35% of sales,” Schatzberg and looks to pop culture, sports and music for an A letter grade, and the grade on the door is the said. “Then you have to bastardize your menu and sandwich and salad titles, quizzing his younger only hint of the food preparation going on in the packaging.” As he introduced more brands, he tried employees for ideas. “The 23-year-olds have a 6,000-square-foot space below. to differentiate them with free, signature offerings: pulse on what’s cool,” he said. “We get a lot of There, on a Wednesday earlier this month, two popcorn, candy bars, sides, Mason jars to hold inspiration from Brooklyn.” Puns proliferate: dozen printers at Green Summit’s kitchen began smoothies, juices and milkshakes. “The free slaw is Notorious P.I.G. is a pulled-pork sandwich, and discharging orders in the late morning, when cor- 15 cents of cabbage,” he said. Thai Cobb is a salad with soy-glazed shiitakes porations—which account for 70% of Manhattan To launch a concept, Green Summit needs little and blue cheese. sales—submitted their group lunch orders. An inte- more than a logo and a menu. The company has Steve Zagor, dean of the School of Business grated point-of-sale application connects Grubhub taken a brand from origin to market-ready in as and Management Studies at Manhattan’s and Seamless to Green Summit. Schatzberg said little as a week. “Quinoa bowls—I had that Institute of Culinary Education, crowns the most individual customers simply find his epiphany in the morning, and we launched in the concept as brilliant. “The question is, will the brands online. afternoon,” Schatzberg said. customer care at the end of the day that you’re Chefs prepped the meats, vegetables and grains, The cost of failure is also low. A Mediterranean- not really a restaurant, you’re a delivery opera- and cooked them using a single formula—say, food idea that the partners scrapped totaled about

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cut of each order (companies can pay a BIG BITES higher percentage to promote their listings), are doing their best to help so-called virtual $2.4B restaurants succeed. SIZE OF GRUBHUB’S Though Schatzberg food-delivery business and Millman started nationwide Green Summit with their own money, they relied on a line of credit from Grubhub to expand. 7,500 “We love the inno- MEALS DELIVERED WEEKLY vation and quality TODD MILLMAN AND PETER SCHATZBERG, by Green Summit partners in Green Summit, came up with they’ve brought to the their concept after realizing delivery was space,” said Matt a huge portion of their deli businesses. Maloney, Grubhub’s CEO. He intended the loan to support Green $30M Summit’s growth but EXPECTED REVENUE this $25,000 in sunk costs, as opposed to the $100,000 to after complaints in November. “As the food- is not looking to acquire year for Green Summit, up $500,000-plus that a small midtown retail opera- services industry evolves, the Health Department a stake in the company from $10M last year tion would absorb, by Zagor’s estimate. Though it has continued to keep pace with these changes by or others. “We Sources: Grubhub, Green Summit brought in about a half-million dollars, Schatzberg amending our permitting requirements to meet absolutely want to con- said, he believed that the kebabs and hummus were business needs and protect consumer health and tinue supporting virtual not maximizing revenue for their square footage. So safety,” she said. restaurants through our ordering platform, by driv- he shuttered the spot. “What’s the downside?” he Some of Green Summit’s competitors have ing orders their way, and we would seriously con- asked himself. Very little. Nobody was fired, no backed away from the model. Fresh & Co. is consid- sider any other opportunities to directly support leases terminated. He simply had to take the com- ering replacing delivery—which represents 20% of virtual restaurants with this structure,” Maloney pany off Seamless. average store revenue of $3 million to $4 million said. Before Green Summit decided to launch annually—with an online system of pre-orders and Institutional investors have approached the Hummingbird, Schatzberg and Millman tested pickups. “We’d rather have consumers in our four team, Schatzberg said, but so far the partners have sushi’s potential on the menus of two brands: walls. The consumer wants to engage with the not been happy with how investors planned to rep- ’Leafage and Authentic. They learned how to make brand,” said Perez. The chain, co-founded by resent the company. Schatzberg does see an exit not rolls on YouTube. “We wanted to see if people were George Tenedios, is part of ST Management, a New too far off, if a large food or logistics company want- interested in purchasing sushi from a place that’s York company owned by his father, Steve Tenedios, ed to acquire Green Summit. He imagines that the only upscale and healthy, but not Japanese,” said the man behind Café Metro. kind of software that fuels food-delivery platforms Schatzberg. “That seemed to be the case.” Savory, a Manhattan company launched in 2011, could also power extraordinary efficiency and accu- was one of the few competing delivery-only restau- racy in the kitchen, with real-time analytics rants in New York but has recently shifted its strat- informing purchasing, operations and sandwich NY RESTAURANT WITH DELIVERY assumes egy. Instead of distributing miso-glazed Atlantic assembly. a share of risks. Hot food cools en route. salmon with shaved broccoli, black barley and For now, “I’m just delivering food,” said A Time estimates are unreliable. Saucy sand- butterbean salad to individuals through its app and Schatzberg. He’s doing so against a backdrop of a wiches get soggy. Dressed salads wilt. “Once the Seamless, it now plans to focus on group orders, growing number of players, from Uber to Amazon, food leaves the facility, [the business] can’t control from breakfast for six to dozens of boxed conference who want to join Grubhub in the competition to the experience,” said Alex Perez, chief operating lunches and platters for large offices and social deliver dinners and lunches to hungry consumers. officer at Fresh & Co., whose 16 outlets serve organ- events. But someone has to do the cooking. “I field the vol- ic, seasonal lunches and dinners to Manhattan office “What we found was that ordering for yourself is ume they bring,” he said. Ⅲ workers. “To me, that’s a tricky business model.” becoming easier and easier,” said Dhruv Singh, a Not surprisingly, most of Green Summit’s brands founder and partner. “There are a lot of people solv- have several harsh comments and more than a few ing this problem for consumers. ... There are boxes, one-star ratings on Seamless, Grubhub and Yelp; you can get groceries, there’s food you reheat. I grievances relate to food temperature, delivery thought we were different. But I woke up one time, ingredient mistakes and high prices. (A “Thrill morning and thought, ‘People don’t care! It’s ‘push Cheese” sandwich with cheddar, Gruyere, a button, get food.’ ” Parmesan, greens, jalapeños and oven-roasted To differentiate Savory, Singh and his partners tomatoes is $10.75; a sweet cherry pie smoothie is “decided to go a bit anti-tech.” Instead of the $8.75.) And lunch can take nearly an hour from hands-off approach of Seamless, Savory introduced order to delivery. a team of concierges to field questions and cus- “Reviews are important, but they’re statistically tomize menus by phone or live-chat during busi- insignificant,” said Millman. Instead, he and ness hours. “You want someone to take care of Schatzberg concentrate on how much is selling. you,” he said. “We’re getting it right,” Millman said. Currently, Savory sends out more than 10,000 Being online-only put the company in ambigu- meals a month from a 10,000-square-foot kitchen ous territory with the city’s Department of Health. on West 39th Street, near Fifth Avenue. The chefs Until November, when a WNBC investigation ques- put every dish through a “stress test,” sending bike tioned Green Summit’s model, it had used a permit deliverymen around with containers of sample food for conducting a nonretail food business. Schatzberg that they bring back to the kitchen for tasting and DITCHING DELIVERY: Alex said he believed it was in compliance and had been tweaking. Although the company does not have a Perez, COO of Fresh & Co., and founder George Tenedios inspected under that designation by the health timeline for shuttering the individual-delivery are considering replacing agency. business, Singh said, it has reduced hours and is delivery with takeout only. A spokeswoman for the department said it reassessing its strategy every quarter. advised the company to get a food-service permit Grubhub and Seamless, which take at least a 10%

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Formation of K & M Associates CRE, LLC MASDAC, LLC, Art. Of Org. Filed Sec. of State Notice of formation of 42 FOSTER, LLC filed with the Secy. of State of New York of NY 1/26/2016. Off. Loc.: Richmond Co. Arts. of Org. filed with the Sect'y of MILK IT! (SSNY) on 12/28/15. Office loc.: New SSNY designated as agent upon whom State of NY (SSNY) on 2/4/2016. The Last Word LLC York County. SSNY designated as agent process against it may be served. SSNY to Office location, County of New York. Speaking, Writing, of LLC upon whom process against it may mail copy of process to The LLC, c/o Alain SSNY has been designated as agent of Consulting & Production be served. The principal business loc. W. Holtz, 1135 Pheasant Lane, Collegeville, the LLC upon whom process against it 646.434.6738 z 734.237.6614 and address SSNY shall mail process to is PA 19426 Purpose: Any lawful act or activity. may be served. SSNY shall mail lastword.com Carol Dunitz, Ph.D. Leia Kim, 825 3rd Ave., 31st Fl., New York, process to: 77 W. 24th St. Apt 30A, NY POSITION AVALIABLE NY 10022. Purpose: Any lawful activity. NY 10010. Purpose: any lawful act. Notice of Formation of ON YOUR MARK NYC, LLC Arts. of Org. filed Notice of Formation of JTang Broadway Consultant (PA Consulting Group, Inc. Notice of Qualification of KEY with Secy. of State of NY (SSNY) on 02/01/16. Office location: NY County. //&$UWVRI2UJÀOHGZLWK6HF\RI – New York, NY) Prvde rsrch & analysis SQUARE GROUP LP Appl. for Auth. SSNY designated as agent of LLC 6WDWHRI1< 661< RQ2IÀFH w/in the life sci sector. F/T. Reqs filed with Secy. of State of NY (SSNY) on 01/15/16. Office location: upon whom process against it may be ORFDWLRQ1<&RXQW\661[email protected] State designated agent of LLC upon location: NY County. Princ. bus. location: NY County. LLC formed in whom process against it may be addr.: 161 Washington St., Ste. 600, Delaware (DE) on 01/05/16. SSNY des- served and shall mail process to: c/o Conshohocken, PA 19428. LLC ignated as agent of LLC upon whom PUBLIC AND LEGAL NOTICES CT Corporation System, 111 8th formed in DE on 10/6/15. NY Sec. of process against it may be served. SSNY shall Ave., NY, NY 10011, regd. agent State designated agent of LLC upon mail process to c/o Corporation Service upon whom process may be served. whom process against it may be Co., 80 State St., Albany, NY 12207-2543. City Tails NYC, LLC Arts of Org filed with DE addr. of LLC: c/o The served and shall mail process to: c/o DE addr. of LLC: c/o PHS Corporate NY Sec of State (SSNY) on 1/8/16. Corporation Trust Co., 1209 Orange CT Corporation System, 111 8th Services, 1313 Market St., Ste. 5100, Office: New York County. SSNY desig- St., Wilmington, DE 19801. Cert. of Ave., NY, NY 10011, regd. agent Wilmington, DE 19801. Cert. of Form. filed nated as agent of LLC upon whom Form. filed with DE Sec. of State, upon whom process may be served. with DE Secy. of State, John G. Townsend process may be served. SSNY shall 401 Federal St., Dover, DE 19901. DE addr. of LLC: 1209 Orange St., Bldg., 401 Federal St., Ste. 4, Dover, DE mail process to: 95 Horatio St, #6V, Purpose: all lawful purposes. Wilmington, DE 19801. Cert. of 19901. Purpose: Any lawful activity. Form. filed with DE Sec. of State, NY, NY 10014. General Purposes. 401 Federal St., Dover, DE 19901. Purpose: all lawful purposes. Notice of Qualification of Centerbridge Notice of Qualification of Angelo, Notice of Qualification of HHC 33 PECK SLIP Special Credit Partners III-Flex, L.P. Gordon Energy Partners Extension RESOURCES, LLC Appl. for Auth. filed with Authority filed with NY Dept. of State on Fund GP LLC. Authority filed with Secy. of State of NY (SSNY) on 01/25/16. 1/8/16. Office location: NY County. LP Notice of Qualification of Macquarie NY Dept. of State on 1/22/16. Office Office location: NY County. LLC formed in formed in DE on 1/5/16. NY Sec. of Executive Holdings LLC. Authority filed with NY location: NY County. LLC formed in Delaware (DE) on 01/21/16. Princ. office of State designated agent of LP upon Dept. of State on 12/30/15. Office location: DE on 1/20/16. NY Sec. of State LLC: The Howard Hughes Corporation, One whom process against it may be served NY County. Princ. bus. addr.: 125 W. 55th designated agent of LLC upon Galleria Tower, 13355 Noel Rd., 22nd Fl., and shall mail process to the principal St., 18th Fl., NY, NY 10019. LLC formed in whom process against it may be Dallas, TX 75240. SSNY designated as business addr.: 375 Park Ave., 12th Fl., DE on 12/29/15. NY Sec. of State designat- served and shall mail process to: c/o agent of LLC upon whom process against it NY, NY 10152. Regd. agent upon whom ed agent of LLC upon whom process Angelo Gordon & Co., L.P., 245 Park may be served. SSNY shall mail process to process may be served: CT Corporation against it may be served and shall mail Ave., 26th Fl., NY, NY 10167, princi- c/o Corporation Service Co., 80 State St., System, 111 8th Ave., NY, NY 10011. DE process to: c/o CT Corporation System, 111 pal business address. DE address of Albany, NY 12207-2543. DE addr. of LLC: addr. of LP: c/o The Corporation Trust 8th Ave., NY, NY 10011, regd. agent upon LLC: c/o The Corporation Trust Co., 2711 Centerville Rd., Ste. 400, Wilmington, Co., 1209 Orange St., Wilmington, DE whom process may be served. DE addr. of LLC: 1209 Orange St., Wilmington, DE DE 19808. Cert. of Form. filed with DE Secy. 19801. Name/addr. of genl. ptr. available c/o The Corporation Trust Co., 1209 Orange 19801. Cert. of Form. filed with DE of State, Div. of Corps., John G. Townsend from NY Sec. of State. Cert. of LP filed St., Wilmington, DE 19801. Cert. of Form. filed Sec. of State, Div. of Corps., Bldg., 401 Federal St., Ste. 4, Dover, DE with DE Sec. of State, Duke & York St., Dover, with DE Sec. of State, 401 Federal St., Dover, Townsend Bldg., Dover, DE 19901. 19901. Purpose: Any lawful activity. DE 19901. Purpose: all lawful purposes. DE 19901. Purpose: all lawful purposes. Purpose: all lawful purposes.

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Notice of Qualification of Magnet 360, Notice of Qualification of OCA POSITIVE FOOD, Notice of Formation of HERRMANN Notice of Qualification of BAMTech, LLC. Authority filed with NY Dept. of LLC Appl. for Auth. filed with Secy. of State of ASSOCIATES LLC Cert. of Conversion LLC Appl. for Auth. filed with Secy. of State on 1/7/16. Office location: NY NY (SSNY) on 01/25/16. Office location: NY filed with Secy. of State of NY (SSNY) State of NY (SSNY) on 01/07/16. County. LLC registered in MN on County. LLC formed in Delaware (DE) on on 01/04/16, converting HERRMANN Office location: NY County. LLC formed in 3/25/08. NY Sec. of State designated 09/22/15. SSNY designated as agent of LLC ASSOCIATES to HERRMANN ASSOCI- Delaware (DE) on 10/19/15. Princ. office agent of LLC upon whom process upon whom process against it may be served. ATES LLC. Office location: NY County. of LLC: 75 Ninth Ave., NY, NY 10011. against it may be served and shall mail SSNY shall mail process to c/o Corporation Princ. office of LLC: 1105 Park Ave., SSNY designated as agent of LLC upon process to: c/o National Registered Service Co., 80 State St., Albany, NY 12207- NY, NY 10128. SSNY designated as whom process against it may be served. Agents, Inc., 111 8th Ave., NY, NY 2543. DE addr. of LLC: 2711 Centerville, agent of LLC upon whom process SSNY shall mail process to c/o 10011, regd. agent upon whom Ste. 400, Wilmington, DE 19808. Cert. of against it may be served. SSNY shall Corporation Service Co., 80 State St., process may be served. MN and princi- Form. filed with Jeffrey W. Bullock - Secy. of mail process to the LLC at the addr. of Albany, NY 12207-2543. DE addr. of LLC: pal business address: 5757 Wayzata State, Loockerman & Federal Sts., Dover, DE its princ. office. Purpose: Any lawful activity. 2711 Centerville Rd., Ste. 400, Blvd., Minneapolis, MN 55416. Cert. of 19901. Purpose: Any lawful activity. Wilmington, DE 19808. Cert. of Form. filed Reg. filed with MN Sec. of State, 60 with Secy. of State, State of DE, 401 Empire Dr., St. Paul, MN 55103. Federal St., Ste. 3, Dover, DE 19901. Purpose: all lawful purposes. %WDV'($,/3DXWKRULW\ÀOHG Purpose: Any lawful activity. NOTICE OF FORMATION OF Craftily LLC. Arts. 661<2IÀFH1<&R/3IRUPHG of Org. filed with Secy of State of NY (SSNY) '(H[LVWV%HOOHYXHSNZ\ :LOPLQJWRQ'(661< Notice of Formation of ALLYOGA LLC. on 1/13/2016. Office location: NY County. MH LAM, LLC. Arts. of Organization filed GHVLJQDJHQWXSRQZKRPSURFHVV Arts. of Org. filed with Secy. of State of NY SSNY designated as agent of LLC upon with Secy. of State of NY (SSNY) on (SSNY) on 03/04/08. Office location: NY whom process against it may be served. DJDLQVWWKH/3PD\EHVHUYHG PDLOWR 12/24/15. Off. loc.: New York Co. SSNY County. SSNY designated as agent of LLC SSNY shall mail process to 410 Central Park ,QWHUWUXVW&RUSRUDWH6HUYLFHV'HODZDUH des. as agent of LLC upon whom upon whom process against it may be West, 4E, NY, NY 10025. The principal busi- /WGDWVDPHDGGUHVV&HUWÀOHG'(626 process may be served. SSNY shall mail served. SSNY shall mail process to: The ness address of the LLC is: 410 Central )HGHUDO6W'RYHU'(*3 process to the LLC, Attn: Beth Thornton, LLC, 252 West 76th Street, Suite 7B, New Park West, 4E, NY, NY 10025. Purpose: any QDPHDGGUHVVDYDLODW626*HQHUDO 481 Washington St., #1N, New York, NY York, NY 10023. Purpose: any lawful activity. lawful act or activity. 3XUSRVH 10013. Purpose: General.

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Name of Foreign LLC: Pennypacker Labs Notice of Qualification of BioMed Notice of Qualification of Centerbridge Notice of Formation of GOV BALL 2016, LLC. Authority filed with NY Dept. of State: Realty LLC. Authority filed with NY Special Credit Partners III, L.P. Authority LLC. Arts. of Org. filed with NY Dept. of 10/23/13. Office loc.: NY Co. LLC formed in DE: Dept. of State on 1/19/16. NYS ficti- filed with NY Dept. of State on 1/8/16. State on 11/17/15. Office location: NY 8/30/13. NY Sec. of State designated agent tious name: BioMed Realty New Office location: NY County. LP formed in County. Sec. of State designated agent of LLC upon whom process against it may be York LLC. Office location: NY DE on 1/5/16. NY Sec. of State desig- of LLC upon whom process against it served and shall mail process to: c/o Business County. Princ. bus. addr.: 17190 nated agent of LP upon whom process may be served and shall mail process to: Filings Inc., 187 Wolf Rd., Ste. 101, Albany, NY Bernardo Center Dr., San Diego, CA against it may be served and shall mail Founders Entertainment, 86 E. 10th St., 12205. DE addr. of LLC: 108 W. 13th St., 92128. LLC formed in DE on process to the principal business addr.: Suite 1, NY, NY 10003, principal business Wilmington, DE 19801. Cert. of Form. filed with 7/30/04. NY Sec. of State designat- 375 Park Ave., 12th Fl., NY, NY 10152. address. Purpose: any lawful activity. DE Sec. of State, 401 Federal St., Dover, DE ed agent of LLC upon whom Regd. agent upon whom process may be 19901. Purpose: any lawful act. process against it may be served served: CT Corporation System, 111 8th and shall mail process to: CT Ave., NY, NY 10011. DE addr. of LP: c/o Corporation System, 111 8th Ave., The Corporation Trust Co., 1209 Orange Notice of Qual. of Crow Hill Fund, LP, St., Wilmington, DE 19801. Name/addr. Auth. filed Sec’y of State (SSNY) 4/27/15. Notice of Formation of SELKNAM 13th Fl., NY, NY 10011. DE addr. of LLC: of genl. ptr. available from NY Sec. of Off. loc: NY Co. LP org. in DE 4/24/15. SSNY MANAGEMENT LLC Arts. of Org. c/o The Corporation Trust Co., 1209 State. Cert. of LP filed with DE Sec. of desig. as agent of LP upon whom proc. filed with Secy. of State of NY (SSNY) Orange St., Wilmington, DE 19801. State, Duke & York St., Dover, DE against it may be served. SSNY shall mail on 02/01/16. Office location: NY Cert. of Form. filed with DE Sec. of 19901. Purpose: all lawful purposes. copy of proc. to 256 W. 116th St., 2nd Fl., County. SSNY designated as agent State, 401 Federal St., Dover, DE 19901. Purpose: all lawful purposes. NY, NY 10026. DE off. addr.: CSC, 2711 of LLC upon whom process against it Centerville Rd., Wilmington, DE 19808. Cert. may be served. SSNY shall mail process of LP on file: SSDE, Townsend Bldg., Dover, to the LLC, 242 W. 137th St., NY, NY Notice of Formation of ZOIA PROPER- DE 19901. Name/addr. of each gen. ptr. 10030. Purpose: Any lawful activity. Notice of Qualification of MCP SECURI- TIES LLC Arts. of Org. filed with Secy. of avail. at SSNY. Purp: any lawful activities. TIES LLC Appl. for Auth. filed with Secy. State of NY (SSNY) on 12/18/06. Office of State of NY (SSNY) on 02/02/16. location: NY County. Princ. office of LLC: Office location: NY County. LLC formed Notice of Qualification of Mobile Leasing 156 W. 56th St., 4th Fl., NY, NY 10019. Notice of the formation of Cara in Delaware (DE) on 12/11/09. Princ. Solutions, LLC. Authority filed with NY Dept. of SSNY designated as agent of LLC upon Dussich, LLC. Arts of Org filed with State on 12/1/15. Office location: NY County. office of LLC: Attn: Ridgely Donohue, whom process against it may be served. Secy. of State of NY (SSNY) on Princ. bus. addr.: 850 Technology Way, 777 Third Ave., 25th Fl., NY, NY 10017. SSNY shall mail process to Adam Zoia, 10/1/2015. Office location: NY Libertyville, IL 60048. LLC formed in DE on SSNY designated as agent of LLC upon 1965 Broadway, PH3C, NY, NY 10023. County. SSNY designated agent upon 10/26/15. NY Sec. of State designated agent whom process against it may be Purpose: Any lawful activity. whom process may be served against of LLC upon whom process against it may be served. SSNY shall mail process to the LLC to: 7014 13th Ave #202 Brooklyn, served and shall mail process to: c/o CT LLC at the addr. of its princ. office. DE NY 11228. Principal business address: Corporation System, 111 8th Ave., NY, NY addr. of LLC: Corp. Trust Center, 1209 210 E 73 St. #4A NY, NY 10021. 10011, regd. agent upon whom process may Orange St., Wilmington, DE 19801. NOTICE OF FORMATION OF REBY ADVISORS be served. DE addr. of LLC: 1209 Orange Cert. of Form. filed with DE Secy. of LLC. Application for Authority filed with St., Wilmington, DE 19801. Cert. of Form. State, John G. Townsend Bldg., 401 the Secretary of State of New York (SSNY) filed with DE Sec. of State, 401 Federal St., Federal St., Ste. 4, Dover, DE 19901. on 09/25/2015. Office location: NEW Notice of Formation of COLONIAL CON- Dover, DE 19901. Purpose: all lawful purposes. Purpose: Any lawful activity. YORK County. LLC formed in CT on SULTANTS, LLC Arts. of Org. filed with 05/06/2011. SSNY has been desig- Secy. of State of NY (SSNY) on nated as an agent upon whom process 01/05/16. Office location: NY County. against it may be served. The Post SSNY designated as agent of LLC upon NOTICE OF QUALIFICATION OF Trifera, Office address to which the SSNY shall whom process against it may be served. Name of Foreign LLC: Remy/Newman LLC. Application for Authority filed with mail a copy of any process against the SSNY shall mail process to Stephen J. Realty Services, LLC. Authority filed the Secretary of State of NY (SSNY) on LLC served upon him/her is: 44 Old Sheinbaum, 460 Park Ave. South, 10th Fl., with NY Dept. of State: 12/23/15. 07/06/2015. Office location: New York Ridgebury Road, Danbury, CT 06810. The NY, NY 10016. Purpose: Any lawful activity. Office location: NY County. LLC formed County. LLC formed in DE on principal business address of the LLC in CT: 3/8/05. NY Sec. of State desig- 03/04/2015. SSNY has been desig- is: 44 Old Ridgebury Road, Danbury, CT nated agent of LLC upon whom nated as agent upon whom process 06810 CT address of LLC is: 44 Old process against it may be served and against it may be served. The Post Ridgebury Road, Danbury, CT 06810 Notice of Formation of S.H.E. 959 ONE LLC. Arts. of Org. filed with Secy. of State shall mail process to: c/o Executive Office address to which the SSNY shall Certificate of LLC filed with Secretary Management Offices, 545 Main St., of State of CT located at: P.O. Box of NY (SSNY) on 1/13/16. Office location: mail a copy of any process against the NY County. SSNY designated as agent of NY, NY 10044. CT addr. of LLC 138 LLC served upon him/her is: 2001 150470, Hartford, CT 06115 Purpose: Goodhill Rd., Weston, CT 06883. Cert. any lawful act or activity. LLC upon whom process against it may Western Ave, Suite 430, Seattle, WA of Form. filed with CT Sec. of State, 30 be served. SSNY shall mail process to: 98121. The principal business address Trinity St., Hartford, CT 06115. Ivan Moskowitz, Esq., Schiff Hardin LLP, Purpose: all lawful purposes. of the LLC is: 2001 Western Ave, Suite 666 Fifth Avenue, Ste. 1700, NY, NY 430, Seattle, WA 98121. Certificate of LLC 10103. Purpose: any lawful activity. filed with Secretary of State of DE Notice of Qual. of Coatue CT VII LLC, Auth. filed Sec’y of State (SSNY) located at: 401 Federal St., Dover, DE 3/13/15. Off. loc: NY Co. LLC org. in DE 19901. Purpose: any lawful act or activity. 3/11/15. SSNY desig. as agent of LLC Notice of Formation of Buckner Notice of Formation of QUANTUM DIAG- upon whom proc. against it may be served. Company of Colorado, LLC. Arts of Org NOSTICS LLC Arts. of Org. filed with Secy. SSNY shall mail copy of proc. to Att: filed with Secy. of State of NY (SSNY) on of State of NY (SSNY) on 01/15/16. Notice of Formation of R and R Philippe Laffont, 9 W. 57th St., NY, NY 12/11/2015. Office location: NY County. Office location: NY County. SSNY desig- Acquisition Group LLC. Arts. of Org. 10019. DE off. addr.: CSC, 2711 SSNY designated agent upon whom nated as agent of LLC upon whom filed with NY Dept. of State on Centerville Rd., Wilmington, DE 19808. Cert. process may be served and shall mail process against it may be served. SSNY 12/18/15. Office location: NY of Form. on file: SSDE, Townsend Bldg., copy of process against LLC to: 6550 S shall mail process to Corporation Service County. Sec. of State designated Dover, DE 19901. Purp: any lawful activities. Millrock Drive STE300, Salt Lake City, UT Co., 80 State St., Albany, NY 12207-2543. agent of LLC upon whom process 84121. Purpose: any lawful act. Purpose: Any lawful activity. against it may be served and shall mail process to: c/o Emmet Marvin & Martin, LLP, 120 Broadway, 32nd Notice of Formation of 505 GREENWICH Fl., NY, NY 10271, Attn: John P. STREET 3GH, LLC Arts. of Org. filed with Notice of Formation of NUTMEG ASSO- NAME OF FOREIGN LLC: Isle of Wight Uehlinger. Purpose: all lawful purposes. Secy. of State of NY (SSNY) on 01/08/16. CIATES, LLC Arts. of Org. filed with Holdings, LLC. Auth. filed with NY Dept. of Office location: NY County. Princ. office Secy. of State of NY (SSNY) on State: 12/29/2015. Office location: NY of LLC: 505 Greenwich St., Unit #3GH, 02/01/16. Office location: NY County. County. LLC formed in DE on 12/3/2015. NY, NY 10013. SSNY designated as SSNY designated as agent of LLC upon NY Sec. of State designated agent of LLC Notice of Qualification of Centerbridge agent of LLC upon whom process upon whom process against it may be whom process against it may be served. Special Credit Partners General Partner against it may be served. SSNY shall SSNY shall mail process to c/o Timothy served and shall mail process to: III, L.P. Authority filed with NY Dept. of mail process to the LLC at the addr. of its Corporation Service Company, 2711 P. Terry, 667 Madison Ave., 24th Fl., NY, State on 1/11/16. Office location: NY princ. office. Purpose: Any lawful activity. NY 10065. Purpose: Any lawful activity. Centerville Road, Suite 400, Wilmington, DE County. LP formed in DE on 1/5/16. NY 19808. Purpose: Any lawful activity. Sec. of State designated agent of LP upon whom process against it may be served and shall mail process to the prin- Notice of Qual. of Coatue CT VIII LLC, Notice of Qual. of Crow Hill Fund GP, LLC, Notice of Formation of Moxie cipal business addr.: 375 Park Ave., 12th Fl., Auth. filed Sec’y of State (SSNY) 4/8/15. Auth. filed Sec’y of State (SSNY) 4/27/15. Communications Group of NY LLC. NY, NY 10152. Regd. agent upon whom Off. loc: NY Co. LLC org. in DE 4/6/15. Off. loc: NY Co. LLC org. in DE 4/24/15. Arts. of Org. filed with NY Dept. of process may be served: CT Corporation SSNY desig. as agent of LLC upon whom SSNY desig. as agent of LLC upon whom State on 1/4/16. Office location: NY System, 111 8th Ave., NY, NY 10011. DE proc. against it may be served. SSNY proc. against it may be served. SSNY shall County. Sec. of State designated agent addr. of LP: c/o The Corporation Trust shall mail copy of proc. to Att: Philippe mail copy of proc. to Att: Alex Friedman, of LLC upon whom process against it Co., 1209 Orange St., Wilmington, DE Laffont, 9 W. 57th St., NY, NY 10019. DE 256 W. 116th St., NY, NY 10026. DE may be served and shall mail process 19801. Name/addr. of genl. ptr. avail- off. addr.: CSC, 2711 Centerville Rd., off. addr.: CSC, 2711 Centerville Rd., to: Taryn Langer, 2 S. Beechcroft Rd., able from NY Sec. of State. Cert. of LP filed Wilmington, DE 19808. Cert. of Form. on Wilmington, DE 19808. Cert. of Form. Short Hills, NJ 07078, principal business with DE Sec. of State, Duke & York St., Dover, file: SSDE, Townsend Bldg., Dover, DE on file: SSDE, Townsend Bldg., Dover, address. Purpose: any lawful activity. DE 19901. Purpose: all lawful purposes. 19901. Purp: any lawful activities. DE 19901. Purp: any lawful activities.

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GOTHAM GIGS

STEPPING UP: Dr. Karen Lee wants New Yorkers—and all urbanites—to live in cities that encourage healthy choices, from exercise to good food.

Designing a fitter, healthier world The new face of public health,Dr. Karen Lee makes sure every step you take is good for you

r. Karen Lee isn’t worried about the plague. dren to be more active than if you just had a blank court- KAREN LEE The Canadian-born physician helps design yard,” she said. cities to protect the health of their inhabitants. At Via Verde, an affordable-housing complex in the D AGE 46 In the 19th and early 20th centuries, planners and public South Bronx that Lee helped design, inhabitants hike up health experts focused their efforts on infectious dis- sunlit, brightly painted stairs to rooftop gardens and BORN Penang, Malaysia; raised in eases. “[They] put windows in every building so that take advantage of a fitness center and bicycle storage. Edmonton, Canada there was light and fresh air, and ventila- These environmental changes spur peo- RESIDES Manhattan tion,” she said. “Buildings [were put up] far ple to exercise and address the systemic My work has TITLE Founder and principal, Dr. enough apart for light and air to enter the “ causes of obesity. “A fundamental part of my been about Karen Lee Health + Built streets, which dried up puddles that bred work has been about creating the options for Environment + Social Determinants mosquitoes and yellow fever and malaria.” creating the healthy choices that people don’t have,” she

Consulting, based in NYC

But a century later, local public health options for said. “If you don’t have sidewalks, you can’t departments were still focused on infectious “ walk to work, you can’t walk to school. … If healthy EDUCATION B.Sc. in genetics and diseases, Lee found, rather than today’s top there are no stores in [the] vicinity, you’re M.D. from University of Alberta in killers: heart disease, cancer and diabetes. choices not going to walk there.” Edmonton; Master of health science, So she took it upon herself to bring the Lee, who opened a consultancy after and medical residency in public nexus of urban health and design into the 21st century. leaving city government, created a certification pro- health and preventive medicine from Lee, a graduate of the University of Alberta medical gram to help architects design buildings that encourage University of Toronto school, became built-environment director for the physical activity. She has advised planners in Singapore Bloomberg administration’s Health Department in and Miami; designed university courses; and organized PLAY TIME Lee spearheaded the 2006. She helped develop tactics to get New Yorkers Fit Nation conferences to spread the word, with backing development of “play streets”— climbing stairs, burning calories and playing outdoors— from the U.S. Centers for Disease Control. temporary street closings that create often with tools as cheap as paint. In her spare time, she’s turning her attention to the pop-up playgrounds to lure kids and “There’s evidence that if you paint hopscotch mark- social causes of disease. First up on her list of issues: parents outside

BUCK ENNIS ings and things like that, it will actually stimulate chil- job stress. — ROSA GOLDENSOHN

FEBRUARY 22, 2016 | CRAIN’S NEW YORK BUSINESS | 19 20160222-NEWS--0020-NAT-CCI-CN_-- 2/19/2016 5:03 PM Page 1

EXECUTIVE MOVES

Grassi & Co.: Lori Bono, 37, York Studio for the archi- Ryan Reszelbach, 46, joined Nixon Peabody: Meghan NORTHWELL HEALTH was promoted to chief tecture firm. He continues as director of retail leasing. Altidor, 38, was promoted financial officer at the as principal and director. He was formerly director to partner at the law firm. DAVID LANGER, accounting and business- Trump International Hotel & of retail leasing at Massey She was previously an 52, was promoted to consulting firm. She was Tower New Knakal/Cushman & associate. chair of neurosurgery at previously principal of York: Kelly Wakefield. Thomas Mealiffe, 35, was Lenox Hill Hospital. He internal operations. Merryfield, Rose Associates: Michael promoted to partner. He was previously director Jacqueline Fackler, 47, was 46, joined Adamo, 32, joined the real was previously an of neurosurgery. promoted to tax principal. as director estate firm as director of associate. She was previously senior of sales development. He was pre- Aaron Yowell, 38, was pro- tax manager. and mar- viously development moted to partner. He was Shatterproof: Shannon keting. She was previously manager at AvalonBay formerly an associate. Municipal record. He was previously Hartley, 45, joined the director of travel-industry Communities. Trustpilot: Art Society: executive manager at health advocacy group as sales at Salamander Hotels Leumi: Eric Halpern, 54, Hanno Gina D.R.I. Real Estate Co. chief marketing officer. & Resorts. was promoted to national Damm, 39, Pollara, Cureatr: Greg Leone, 51, She was previously Omnigon: Jake Stone, 25, head of health care lending joined the 54, joined joined the mobile health- managing director at was promoted to director for the bank. He was pre- open- the non- care communication plat- Razorfish Health. at the digital consulting viously group head in review profit form as vice president of TPG Architecture: Leslie firm. He previously held Leumi’s New York community organization as president. sales. He was formerly vice Jenkins, 42, joined as chief the position of senior Commercial Banking for online shoppers as She was previously an president of sales at marketing officer. She was manager of digital sports Division. chief financial officer. He executive director at ZeOmega. previously corporate mar- consulting. Andrew was formerly senior vice Franklin D. Roosevelt Four Prager keting director at Perkins Constellation Real Estate Franz president at Bankrate. Freedoms Park. Metis: and Will. Advisors: Leah Balkany, 46, Architect: – ERICA DAVIES BizBash Media: Nicole Peck, Martin Stanton PRM: Karen Wish, joined the company as Jamie 41, joined the media com- Greenberg, 50, joined the public- director of investment Donate, 34, pany for event planners as 58, joined relations and marketing sales. She was formerly a was pro- EXECUTIVE PROMOTIONS executive vice president. the firm as chief marketing sales broker at Douglas moted to To get your announcement She was formerly execu- accounting officer. She was previously Elliman Commercial. associate. He was previ- into Crain’s, please submit tive director at Relevents. firm as chief operations a director at New York- Nicole Rabinowitsch, 42, ously technical director. it online. Fill out the form at Alexander Anderson Real officer and managing part- Presbyterian Hospital. joined as a partner. She North Keeragool, 34, was CrainsNewYork.com/ Estate Group: Steve Kopf, ner of the Westchester Westlake Reed Leskosky: was formerly director of promoted to associate. He execmoves. The Executive 45, joined as vice president office. He was formerly Thomas Gallagher, 53, investment sales at Eastern was previously assistant Moves column is also of real estate and broker of managing partner at RSSM. became owner of the New Consolidated. design director. available online.

Wednesdays at 8pm NEW Presented by Profiles of YORK Entrepreneurs STORIES Tune in for more proﬁ les of entrepreneurs in the and small business owners in NYC! 5 boroughs All new episodes beginning March 9th Hosted by Publisher Jill Kaplan

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20 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 22, 2016 20160222-NEWS--0021-NAT-CCI-CN_-- 2/19/2016 5:03 PM Page 1

SNAPS

Foundation for AIDS Research fete brings out the big names The Feb. 10 gala for amfAR, the Foundation for AIDS Research, was a star-studded event as the organization honored Academy Award-winning producer Harvey Weinstein. Movie stars Uma Thurman, Ryan Reynolds and others mingled with local power players such as shoe designer and amfAR Chair Kenneth Cole at the fundraiser, which raised $2 million. Weinstein offered one special auction item: a walk-on role in an upcoming movie about Richard Pryor that stars Eddie Murphy, Oprah Winfrey, Mike Epps and Kate Hudson. It sold for $50,000.

Al Roker of NBC’s Today show and Deborah Roberts of ABC News at the amfAR fundraiser. Harvey Weinstein, music impresario Jay Z, and actors Robert De Niro and Harvey Keitel at the amfAR benefit, held at Cipriani Wall Street.

Writers with their eyes on the prizes

Actors Marin Ireland and Tony Goldwyn at Raking in some green for Central Park at the annual Writers Guild Awards at the Edison Ballroom.

Mitchell Silver, commissioner of the city’s Department of Parks and Recreation, and Karen May, president of the Women’s Committee of the Central Park Conservancy, at a Feb. 3 fundraiser at the Rainbow Room. The Lowell Peterson, executive director of the Writers Guild of America, East, event raised $150,000 to maintain Central Park’s 21 playgrounds. writer Alan Zweibel, Sen. Al Franken, D-Minn., Julie Menin, commissioner of the Mayor’s Office of Media and Entertainment, and Michael Winship, president of the WGA, East, at the Writers Guild event on Feb. 13. SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS

KEVIN TACHMAN,KEVIN PATRICK MCMULLAN, WARGO/GETTY THEO IMAGES GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected]

FEBRUARY 22, 2016 | CRAIN’S NEW YORK BUSINESS | 21 20160222-NEWS--0022-NAT-CCI-CN_-- 2/19/2016 5:01 PM Page 1

FOR THE RECORD*

traditional Italian fare and Lott 204 Corp. Scott Klau, Ben Shapiro by Newmark Grubb Management, was repre- NEW IN TOWN Neapolitan-style pizzas in 204 Lott Ave., Brooklyn and Zach Weil along with Knight Frank’s Jamie sented by NGKF’s Joseph an exposed-brick space. Filed for Chapter 11 bank- Equity’s in-house brokers, Jacobs and Brittany Silver Colista and Hymie Bark Ave. ruptcy on Jan. 27. The fil- Zachary Freeman and along with Eretz Group’s Dweck. The asking rent 167 W. 83rd St. Prawn Shop ing cites estimated assets Scott Silverstein. The ask- Nick Mok, in-house. The was $300 per square foot. The pet groomers opened 669 Union St., Brooklyn of $0 to $50,000 and esti- ing rent was in the mid- asking rent was in the a shop on the Upper West The seafood restaurant mated liabilities of $70s per square foot. mid-$50s per square foot. Le Troquet signed a 10- Side. The venue offers opened in Park Slope and $500,001 to $1 million. year lease for 1,100 square dental and day-care serv- features a no-tipping poli- Alliance Homecare signed RETAIL feet at 161 Lafayette St. ices, and spa options cy. The menu offers raw a seven-year lease for 4,985 Dr. Martens signed a The restaurant will occupy including a hydro- oyster and ceviche, a crab GOVERNMENT square feet at 252 W. 37th 10-year lease for 1,000 a ground-floor space of the massage bathing system. and kale dip appetizer, CONTRACT St. The health services square feet at 193 five-story building at the and a seafood boil, which OPPORTUNITIES provider will occupy part Bedford Ave. in Brooklyn. corner of Howard and Le Botaniste are sustainably caught of the sixth floor in the The British footwear store Grand Streets. The land- 833 Lexington Ave. from the Gulf of Mexico, CONSTRUCTION 18-story building will occupy the ground lord, 161 Lafayette Realty, The apothecary-inspired New York and New Department of Design between Seventh and floor of the five-story and the tenant were repre- restaurant opened on the England. and Construction Eighth avenues. The ten- building at North 7th sented by Bertwood Upper East Side. A product Seeks competitive sealed ant was represented by Street. The tenant was Realty’s Abe Bichoupan of Belgian bakery chain Le bids by 11 a.m. on March 11 ABS’ Jonathan Cohen. represented by Lansco’s and Bertrand de Soultrait. Pain Quotidien, the COMPANY MOVES for the replacement of The landlord, Eretz Robin Abrams, and the The asking rent was organic menu offers items, water mains and appurte- Group, was represented landlord, Carnegie $16,000 per month. or “prescriptions,” like a Fuku Stall nances along Arcade brown rice dish with 4 Penn Plaza Avenue in Queens. peanut curry sauce, David Chang’s fast-casual Contact Yamina Youb at steamed greens and spicy fried-chicken shop debuted (718) 391-1016 or DEALS ROUNDUP kimchi. its third location, in a kiosk [email protected]. TARGET/SELLERS TRANSACTION BUYERS/INVESTORS TRANSACTION TYPE in Madison Square Garden. SIZE [IN MILLIONS] Emmy Squared The venue is open only Department of Parks 364 Grand St., during games and events. and Recreation ITC Holdings Corp./ $11,426.9 Fortis Inc. SB M&A Brooklyn The limited menu offers a Seeks competitive sealed BlackRock Advisors; The pizzeria will open in signature spicy fried- bids by 10:30 a.m. on Deutsche Investment Management Americas Inc. Williamsburg this spring. chicken sandwich, french March 11 for the recon- (Manhattan); Fidelity A spinoff of Clinton Hill’s fries and a selection of Milk struction of the paths, Management & Research Co. popular restaurant Emily, Bar cookies. landscape and staircase in the restaurant will serve Bronx River Park at East Opera Software ASA/ $1,365.1 Golden Brick Silk Road SB M&A Ferd Invest; Folketrygdfondet; Fund Management (Shenzhen) Detroit-influenced square Kuro-Obi by Ippudo 233rd Street and the Bronx JPMorgan Chase & Co., pies and Italian-American 230 Park Ave. River. Contact Michael private banking and sandwiches. The Japanese restaurant Shipman at (718) 760-6771 investment banking investments (Manhattan); Ludvig Lorentzen AS; opened its second loca- or michael.shipman Sundt AS Etsy tion, in midtown. The @parks.nyc.gov. 151 W. 34th St. noodle house spinoff will Apollo Education Group Inc./ $1,085.6 Apollo Global Management FB M&A The online marketplace specialize in chicken GOODS AND SERVICES Aronson+Johnson+Ortiz; (Manhattan); Najafi Cos.; Fidelity Management & Research Co.; Vistria Group opened a store inside broth-based ramen and Department of Education Glenview Capital Management Macy’s Herald Square. The offer add-ons including Seeks requests for proposals (Manhattan); collaboration includes basil, bacon and by 1 p.m. on April 5 for Robeco Boston Partners; T. Rowe Price Associates Inc. New York-themed items Parmigiano-Reggiano information-technology from local Etsy sellers like cheese. consulting services. Contact GLID Wind Farms TopCo Ltd./ $612.4 BlackRock Inc. (Manhattan); FB M&A Sara Schiwal of Hook & the Vendor Hotline at EIG Global Energy Partners; UK Green Investment Bank Matter, plus Macy’s exclu- 12 Chairs Kiosk (718) 935-2300 or vendor GLID Ltd. sive items, including an “I 342 Wythe Ave., Brooklyn [email protected]. Yodle Inc. (Manhattan)/ $342.0 Web.com Group Inc. SB M&A Love New York” ring dish The restaurant, a to-go Hudson River Ventures for $42. version of the Manhattan New York City Health + (NY); Icon Ventures; café of the same name, Hospitals entorTech Ventures; Stevens Ventures; Joya opened in Williamsburg. Seeks requests for propos- Stratim Capital 19 Vanderbilt Ave., Brooklyn The menu offers Israeli als by 4 p.m. on March 2 The fragrance studio street food including for pharmacy benefit Thinking Phone $112.0 Bessemer Venture Partners GCI opened in Clinton Hill. Its sabich (eggplant sand- management services. Networks Inc./not disclosed (Larchmont, N.Y.); Summit Partners; Technology Crossover Ventures first flagship store offers wiches), falafel and Contact Kathleen Nolan at art installations, master kebabs. (212) 908-8730 or Xenith Bankshares Inc./ $101.7 Hampton Roads Bankshares Inc. SB M&A classes with visiting per- [email protected]. Maltese Capital fumers, and items includ- Management (Manhattan) ing a $250 Oliver Ruuger BANKRUPTCIES “In Girum” art print and REAL ESTATE DEALS Selected deals announced for the week ended Feb. 11 involving companies in metro New York. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existing shares of a company without Joya’s signature hand- Global Energy Efficiency the participation of a financial buyer. FB M&A: Financial buyer M&A represents a minority or majority poured candle for $78. Holdings COMMERCIAL acquisition of existing shares of a company with the participation of a financial buyer. GCI: Growth capital investment represents new money invested in a company for a minority stake. 14 Bruckner Blvd., Bronx VTS signed a five-and-a- Noglu Filed for Chapter 11 bank- half-year lease for 15,769 SOURCE: CAPITALIQ 1266 Madison Ave. ruptcy on Feb. 7. The filing square feet at 114 W. 41st The French restaurant cites estimated assets of $0 St. The leasing and asset opened on the Upper East to $50,000 and estimated management platform will GET YOUR NEWS ON THE RECORD Side. Its gluten-free-only liabilities of $10,000,001 occupy the entire 11th floor *To submit company openings, moves or real estate deals, or to receive further information, menu includes quiche, to $50 million. The credi- of the 22-story tower email [email protected]. croque monsieur, lasagna tors with the largest unse- between Broadway and For the Record is a weekly listing to help businesspeople in New York find opportunities, and a club sandwich. cured claims are Lumenor Sixth Avenue. The tenant potential new clients and updates on customers. Bankruptcy filings from the Eastern and Energy Services, owed was represented by JLL’s Southern districts of New York are listed alphabetically, as are recently announced New Pizzeria Sirenetta $232,909.56; Rockshelter Patrick Heeg and Jim York City agency contract opportunities. Real estate listings are provided in order of square 568 Amsterdam Ave. Capital, owed $150,000; Wenk. The landlord, footage. Stock transactions at New York’s largest publicly held companies were filed with The Mermaid Inn’s sister and Selective Insurance Equity Office, was repre- the Securities and Exchange Commission. Listings are in order of transaction value, and the information was obtained from Thomson Reuters. restaurant opened on the Co. of America, owed sented by Newmark Grubb Upper West Side. It serves $102,765. Knight Frank’s Erik Harris,

22 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 22, 2016 20160222-NEWS--0023-NAT-CCI-CN_-- 2/19/2016 7:45 PM Page 1

PHOTO FINISH

Idle cabs line the block cab made a U-turn at the corner of Green and Provost streets in Greenpoint, Brooklyn, at 10 a.m. one weekday last week, search- Aing for an open space in a sea of yellow. No luck. A line of parked taxis, most of them owned or controlled by McGuinness Management a block away, has been growing in this industrial strip next to the Newtown Creek Wastewater Treatment Plant. Last year, McGuinness had about 50 of its 341 medallions dormant at any time, according to Gothamist. Now it’s common to see more than 100 cabs sitting idle. Owner Gus Kodogiannis blames Uber. Idle cabs mean that every curbside parking spot is filled, and Kodogiannis has even tem- porarily deactivated some of his medallions. “We have several of our medallions in storage,” Hedy Kodogiannis, Gus’ wife, told Crain’s. For any cab sitting idle for 10 days or more, city rules require the medallion to be removed and turned over to the Taxi and Limousine Commission. The owner then has 60 days to retrieve the medallion and reactivate the associated taxi, or risks losing his hack license. — PETER D’AMATO PETER D’AMATO

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ATM_NYJ_P6_2507_Crains_R4.indd Saved at 1-29-2016 12:01 PM Printed At None Client AT&T Media Type Newspaper DEPARTMENT: Art Director Copywriter Acct. Manager Studio Artist Proofreader Traffic Production Live 10.125” x 13.75” Trim 10.875” x 14.5” Bleed 11.125” x 14.75” APPROVAL: Job Title Blackberry NYC Print January/ February Addl. Notes: None Pubs Crain’s NY Business Ad Code None