20090810-NEWS--0001-NAT-CCI-CN_-- 8/7/2009 8:10 PM Page 1 INSIDE TIMES SQUARE skirmish over city’s TOP STORIES impromptu Cut the bonus bull: park the truth about P. 3 Goldman Sachs ® EDITORIAL, PAGE 10 Shadow units cast pall over city’s VOL. XXV, NO. 32 WWW.CRAINSNEWYORK.COM AUGUST 10-16, 2009 PRICE: $3.00 residental market PAGE 2 Paterson has Überpatron to the rescue of struggling local arts groups no place to PAGE 3 go ... but out SPECIAL REPORT With low ratings, he’s caught between a rock (Cuomo) and a hard place SMALL BUSINESS Entrepreneurs keep a sunny disposition when the sales BY ERIK ENGQUIST are grim P. 13 can gov. david paterson G How to kick-start your save himself? That is the credit P. 16 question on the lips of the G Hits & Misses: city’s power elite, as Demo- Restaurateur delivers the cratic leaders and union offi- buck ennis goods P. 17 cials signal that they will find another candidate for gover- ademics cannot recall a nor if the incumbent does not politician rescuing himself lift his approval rating soon. from such a predicament, let BUSINESS LIVES The answer, according to alone one with Mr. Pater- political experts, is almost son’s shortcomings. certainly no. “Has anybody ever come The governor’s poll num- back from this low? Proba- bers have been dreadful for bly. But I can’t think of any,” six months,a sign that public says Maurice Carroll, direc- opinion is solidifying. Barely tor of the Quinnipiac Uni- one in five voters think he’s versity Polling Institute and doing a good job. Pollsters, a former political reporter. GOTHAM GIGS campaign operatives and ac- See GUV on Page 32 Smithy shoes horses for police patrols P. 33 G ANNE FISHER on getting better pay P. 33 stephen munday G MOVERS & SHAKERS Look who’s eyeing Wynn has a vision for Aqueduct P. 34 Dead-tree crowd desperately NYC: Wal-Mart G GAEL GREENE finds the best chef no one’s ever heard of P. 35 seeking a profit rewrite Retailer that gave up on Big Apple BY MATTHEW FLAMM INDEX renews push; like a lot of newspapers,The New York Times has endured a rough year.But there’s THE INSIDER ‘just looking’ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 little evidence of that inside the paper’s soaring Eighth Avenue headquarters. REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 The walk to Executive Editor Bill Keller’s office proceeds around an atrium that NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 casts so much natural light a visitor feels half-outdoors.There are high ceilings,wide- BY DANIEL MASSEY GREG DAVID open spaces and sleek furnishings with accents of blond wood. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 DRAWING IRE: As long as unions Just two years old, the Renzo Piano-designed building belongs to an era when more than two years after CRAIN’S ONLINE POLL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 object, the City Council is unlikely to newspapers had 20% profit margins and the Times was the undisputed ruler of the Wal-Mart’s bruised chief ex- back a Wal-Mart store. CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 news business. Those days may be over, but according to Mr. Keller, the paper won’t ecutive wrote off opening a EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _33 have to find a new address. New York City store as not RÉSUMÉ REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _34 He is bullish on print, while also recognizing that the industry is being blasted by “worth the effort,” the New York City residents SeeTHE ATWEEK DEADLINE AHEAD _on _ _ _ _ _ _ _ _Page _ _ _ _ _ _ _ _ _ _ _ _ _ _2 _ _ _ _ _ _ _ _ _ _ _ _35 forces that have left news publishers in tatters and unsure where to turn. Arkansas-based giant is back want and need better access See NEWSPAPERS on Page 31 in the hunt, scouting out po- to our stores so they are not tential locations. forced to travel to New Jersey 32 The company’s search is or Long Island to benefit 5 ON THE WEB citywide, with a focus on the from the savings Wal-Mart Sign up to receive Crain’s award-winning daily outer boroughs. Executives provides for working fami- e-mail alert containing breaking news feel the recession makes this lies,” wrote a spokesman, impacting the New York City business an ideal time to enter the city. Philip Serghini, in an e-mail ELECTRONIC EDITION community at www.crainsnewyork.com. “Now,more than any oth- message. “Hopefully we will NEWSPAPER er time in recent memory, See WAL-MART on Page 32 71486 01068 0 20090810-NEWS--0002-NAT-CCI-CN_-- 8/7/2009 7:12 PM Page 1 IN BRIEF BID ADIEU TO WAMU. J.P. MORGAN CHASE & Shadow units cast pall CO. IS RENAMING THE 223 WASHINGTON Mutual branches in the tristate area today, as many as 7,000 shadow units. giving them the Chase logo, a spokesman says. Not-yet-marketed condominiums mean An analysis conducted by Crain’s, with That move means there will be more than help from Mr. Miller and brokerage firm 1,000 Chase branches here, giving the bank a apartment glut is worse than it looks Aptsandlofts.com, shows the scope of the 52% share of the local market, according to a problem in two bellwether neighbor- SNL Financial study.The federal government shadow inventory that is not reflected in hoods: Williamsburg and Manhattan’s fi- seized WaMu last fall in the biggest bank BY AMANDA FUNG the data. This includes units that are held nancial district. failure ever and sold it to J.P.Morgan Chase for by developers in soon-to-be In the latter, there are currently 410 a paltry $1.9 billion. new york city’s condominium completed buildings, as well as condominiums for sale. But according to market may be in even worse those kept off the market by Crain’s research—which involved tabulat- IN THE FACE OF PRESSURE FROM NEW YORK shape than the commonly used banks and by individual owners ing all the units in a dozen financial district SEN. CHARLES SCHUMER AND CITY HOUSING yardsticks show. who are waiting for conditions to condo buildings—there are also nearly officials, Fannie Mae decided to cancel an In Manhattan in the first improve before they tack up “For 1,000 units lurking in the shadows. In online auction of 19 Bronx apartment buildings quarter, sales were halved from Sale” signs. Williamsburg, meanwhile, feverish build- that had fallen into foreclosure.The officials year-earlier levels even as more ing has helped put 2,820 units on the block had worried that the auction would attract apartments flooded onto the Flawed inventory count this year, according to Aptsandlofts.com. speculators who would overpay for the market, leaving it choking on an SWAMPLAND “we are undercounting the But there are almost as many again not yet properties, which were purchased for a hefty 18.6-month supply of units. housing stock,” says Jonathan accounted for; 2,760 units will come on $36 million in 2007 by Ocelot Capital. Instead, Meanwhile, in the recently red- Miller, chief executive of ap- line next year. officials will work with Fannie Mae to find an hot neighborhood of Williams- praisal firm Miller Samuel Inc. “The financial district and Williams- owner who will keep the 519 units affordable. burg in Brooklyn,sales in the pe- 18.6 “And when you have more in- burg were overbuilt,” says Jorden Tepper, riod plummeted by 70% as even MONTHS’ SUPPLY ventory than the market can ab- executive director of sales at Century 21 APPLE-METRO, THE EXCLUSIVE FRANCHISEE OF more units expanded the proper- of Manhattan sorb,it places pressure on prices.” NY Metro. “It will take these neighbor- APPLEBEE’S NEIGHBORHOOD GRILL & BAR ty glut there. condos, 1Q 2009 In a report on Manhattan res- hoods longer to correct themselves in this in the New York metro area, is on an expansion As bad as those figures look, idential real estate this spring, depressed market.” tear in the city, opening two restaurants this they may actually overstate the Mr.