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The Right Moves CRAINSNEW YORK BUSINESS NEW YORK BUSINESS® FEBRUARY 4 - 10, 2019 | PRICE $3.00 SPEAKER PIVOTS ON CAMPAIGN FUNDING P. 5 THE LIST TOP RETAIL LEASES P. 14 BROOKFIELD BETS BIG ON 2 MANHATTAN ALL THE WEST P. 18 RIGHT VOL. XXXV, NO. 5 WWW.CRAINSNEWYORK.COM MOVES A savvy real estate play by choreographer Gina Gibney saved her business—and bolstered the city’s struggling dance industry PAGE 16 NEWSPAPER P001_CN_20190204.indd 1 2/1/19 6:54 PM FEBRUARY 4 - 10, 2019 CRAINSNEW YORK BUSINESS ON THE COVER PHOTO: BUCK ENNIS FROM THE NEWSROOM | BRENDAN O’CONNOR | MANAGING EDITOR Navigating the maze IN JULY 2014, seven months into his mayoralty, Bill de Blasio released the “Small Business First” report, a series of recommendations intended to identify the challenges city employers face and recommend ways to lessen them. e ndings described an “overwhelming maze of requirements,” including some 6,000 regulations, 250 business-related licenses and permits and “many pro- P. cesses created to ensure compliance with the law.” 18 But given the posture the mayor has taken toward business inter- ests since then, he’s apparently come to believe that maze isn’t quite IN THIS ISSUE overwhelming enough. UP FRONT 12 VIEWPOINTS New mandates compelling city employers to oer paid sick leave Wealthy Dems don’t really (2014), paid family leave (2016) and, more recently, 10 days of annu- 3 EDITORIAL want higher taxes; no such al paid vacation add signicantly to the cost of doing business here. Too many hands in the pot thing as a free vacation; what to do with Brooklyn Judging by his recent rhetoric—notably during last month’s State for marijuana legalization Bridge; from our readers of the City address, when he declared that New York’s hard-earned 4 IN CASE YOU MISSED IT 16 THE LIST wealth was “in the wrong hands”—it’s clear Hizzoner is convinced It’s difcult for pols to steer clear of real estate donations Top Manhattan retail leases; that all local business owners regardless of industry are so ush with discount chains buying big cash that they can swallow these extra costs and still turn a prot. 5 POLITICS State expands protections for More worrisome, he seems willfully ignorant of this fact: e vast transgender workers; Crain’s FEATURES majority of employers do their level best to treat workers fairly and names new publisher equitably, not to comply with city mandates but simply because it’s 16 LANDLORD OF THE DANCE 6 TECHNOLOGY A key player keeps local good for business. Drivers up in arms as Lyft productions on their feet Of course there is a need for safeguards and regulations to ensure blocks pay raise; Zocdoc 18 BROOKFIELD’S BIG BET workers’ rights and competitive equity in a thriving business envi- pricing policy could cost city physicians Tower developer pushes ahead ronment. But it is a two-way street. As my colleague Erik Engquist without an anchor tenant noted in a tweet on the subject, of the 38 people quoted in de Blasio’s 21 FOR THE RECORD press release announcing the paid-vacation mandate, exactly zero Our tally of the week’s buys, were business owners. busts and breakthroughs 22 SNAPS Photos from the city’s biggest fundraisers and charity events CONFERENCE CALLOUT 23 GOTHAM GIGS Neighborly customer service FEB. 21 helps a UWS retailer survive CRAIN’S BREAKFAST P. 23 FORUM ASKED & ANSWERED James Patchett of the city Economic 7 CORRECTION Head of Hospitality Alliance Development Corp. will discuss the Legislation proposed by Sen. Liz Krueger and on tip credit, paid time off Amazon deal, the EDC’s biggest projects Assemblywoman Crystal Peoples-Stokes would ex- and the de Blasio administration’s 8 IN THE MARKETS tend the right to run cannabis-smoking and economic-development agenda. Some news sites’ fortunes are vaping establishments to small operators. A Register at CrainsNewYork.com/events/ improving; “greatest” trader bill proposed by Gov. Andrew Cuomo would not. And Empire State NORML supports auctions Patchett2019 readies his exit to let medical-marijuana providers operate NEW YORK 10 REAL ESTATE in the recreational market but otherwise ATHLETIC CLUB Brooklyn green space hits a opposes their participation. This informa- 8 to 9:30 a.m. red light; city’s secret wage tion was misstated in “Wading Into Weed,” [email protected] deal with building workers published Jan. 28. Vol. XXXV, No. 5, Feb. 4, 2019—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues Jan. 1, June 25, July 9, July 23, Aug. 6, Aug. 20 and Dec. 24, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing ofces. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: Call 877-824-9379. Fax 313-446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2019 NYCMAYORSOFFICE/FLICKR, BUCK ENNIS NYCMAYORSOFFICE/FLICKR, by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 4, 2019 P002_CN_20190204.indd 2 2/1/19 7:01 PM FEBRUARY 4, 2019 AGENDAWith marijuana legalization upon us, too many hands are in the pot or years New Yorkers debated decriminalizing marijuana. But last year a consensus for cannabis grew so rapidly that sudden- ly the question became not whether to regulate the market but how. It is proving to be just as thorny. FNumerous constituencies have emerged with conicting demands. Some even conict with themselves: Hazel Dukes, NAACP head in New York, wants minority communities to sell lots of legal weed but not to use it. Various activists want cannabis taxes dedicated to their causes: training disadvantaged individuals to be entrepreneurs, improving subways and buses, repairing public housing, treating substance abuse and more. But Gov. Andrew Cuomo, whose budget proposal lays out a complex frame- work for legalization, projects it will generate no tax revenue next scal year and just $83 million in the following one. Ultimately, it would yield only $300 million per annum. at’s about what the Metropolitan Trans- Matthew Flamm that in three years, he had grown his business from 500 portation Authority spends to paint a station and the Housing Authority clients in one borough to 1,400 in three. New York has a vested inter- to replace a toilet. OK, slight exaggeration. e point is, $300 million won’t est in tamping down illicit sales, not just to maximize tax revenue but to x our problems any more than smoking a joint will cure cancer. keep cannabis out of young people’s hands. (It is associated with worse Cuomo, like Dukes, doesn’t actually want academic performance and other problems, people getting stoned. He wants political Numerous constituencies have and long-term use is not well studied.) plaudits for making cannabis legal but not Cuomo doesn’t want a few corporations to make it cheap, abundant and highly mar- emerged with conicting demands. to dominate the market with large operations keted. ere’s an economics quandary here Some even conict with themselves that push out small ones, enjoy economies of as well. e more the legal cannabis indus- scale and concentrate prots on CEOs. But try is taxed and regulated, the more it will be he does want to protect the investments of undercut by the black market—already a well-oiled machine, so to speak. the big medical-marijuana companies he welcomed two years ago. Consider the eects of high tobacco taxes: ey have curbed smoking, but Assembly Speaker Carl Heastie took some heat last week for suggest- half of the cigarettes sold in New York City are smuggled in. ing lawmakers would not (ahem) hash this out before the state budget is is is the largest and perhaps most advanced marijuana market in the due at the end of March. But he is correct. Anyone who thinks Albany can nation. Just one of its untold number of dealers told Crain’s senior reporter get this right in two months must be smoking something. — THE EDITORS FINE PRINT From 2013 to 2017, construction fatality rates decreased 23% in the city while rising 39% in the state. The nding comes from the annual Deadly Skyline report from the New York Committee for Occupational Safety and Health, which also showed that 93% of construction workers who died in 2017 were nonunion. BY GERALD SCHIFMAN ST 25 WORDS OR LESS A SALES SURGE TS SALES TAX REVENUE has been rising in New York City and throughout the state. A “News is where music ND TH was 10 years ago. Sales tax collected in New York City last year, 44.9% of the statewide total. The NYC SALES TAX REVENUE GROWTH city has 44% of the state’s population. E At that time no one $7.8B +5.7% CIT thought you’d pay for +4.4% Growth in city employment from 2016 Y to 2018, a contributing factor in the gain music again” % +2.9% 3 in tax revenue —Spencer Waxman, founder of the $450 million Shannon River Capital Management hedge fund, on why his Rise in state gas prices last year. rm is investing in publishing com- % Gas taxes accounted for 14.9% 2015–16 2016–17 2017–18 of sales taxes. panies. Shannon River’s biggest U.S. 10.5 position is in The New York Times Co. SOURCE: State comptroller’s ofce BUCK ENNIS FEBRUARY 4, 2019 | CRAIN’S NEW YORK BUSINESS | 3 P003_CN_20190204.indd 3 2/1/19 6:52 PM IN CASE YOU MISSED IT CRAINSNEW YORK BUSINESS president K.C.
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