TOP STORIES REPORT Restaurateurs see SMALL BUSINESS juicy profits in new Making 2007pay off: burger joints resolutions for PAGE 2 the new year ® Engineers threaten PAGE 13 strike at office buildings as contract expires VOL. XXIII, NO. 2 WWW.NEWYORKBUSINESS.COM JANUARY 8-14, 2007 PRICE: $3.00 PAGE 2 Broadcast media Spitzer aides face another tough year in 2007 plan to review PAGE 3 Random House insiders fret over big projects pending bio running a deficit and faces tight of Oprah Winfrey ESDC’s new chiefs fiscal constraints imposed by Mr. NEW YORK, NEW YORK, P. 6 promise to overhaul Spitzer. In addition, ESDC is exploring Crain’s 101: agency; star-studded whether it can undo a controversial panel to court execs deal that would move the agency applying old rules downtown. Patrick Foye, the to new tasks agency’s new downstate chairman, BY ERIK ENGQUIST is looking to see if the state can get GREG DAVID, PAGE 11 out of a contract under which it gov.eliot spitzer’s new econom- sold its office at 633 Third Ave. ic development team is embarking and bought an office condo at 125 BUSINESS LIVES on an overhaul of the Empire State Maiden Lane. CURE WINTER BLAHS Development Corp., beginning Mr. Foye and Avi Schick, Crain’s picks weekly this week with a hard look at every ESDC’s new president and chief diversions in the city pending and recently ap- operating officer, say their to spice up January proved project. success will ultimately be and February The agency’s new lead- judged on how much pri- PAGE 23 IN THE PAINT: Anthony ers will review the subsi- vate investment in New Missere, head of the dies involved and hold the York they can generate. To sports program at St. John’s, focuses courses developers accountable for that end, they are assem- on leadership and any promises to create jobs. FOR MORE bling a star-studded task international marketing. Their study will last for ON SPITZER: force to pitch New York to three to six months and Week One is a prospective investors.It will reformer’s will cover Moynihan Sta- dream Page 10 consist of Mr.Spitzer,Sens. tion, Atlantic Yards and The inside story Charles Schumer and the World Trade Center,as on staffing the Hillary Clinton, state Sen- well as smaller projects. administration ate Majority Leader Joseph Page 19 AT DEADLINE larry ford Older deals will be exam- Bruno and Assembly ined to determine what has Speaker Sheldon Silver. THIS YEAR’S ARMORY SHOW, A worked and what hasn’t. The “Our goal is to be quick and CONTEMPORARY ART FAIR, has agency is under pressure to maxi- nimble and smart,just as corporate been moved up by about a mize its financial impact, since it is See OVERHAUL on Page 9 month to coincide with The Local colleges Art Show—creating a major art event in New York during Feb. 22-26.The two fairs are expected to attract 60,000 get in the game visitors. A number of smaller On the horizon:IPOs fairs, like Pulse, that used to the Boston Red Sox. run in March at around the Sports management “That’s why I decided to go to same time as the Armory programs spring up St. John’s,” says Mr. Olwell, who by hedge funds Show have also rescheduled will start an internship in Madison for February.The lineup will as leagues make play Square Garden’s marketing depart- include more than 100 gallery ment this month. “I’ve been inter- 20 funds could go openings, major exhibitions at for qualified staff ested in sports my whole life.” CURTAIN LIFTED the Museum of Modern Mr. Olwell chose St. John’s in public; may have Eleven European hedge funds went Art and the Guggenheim BY SAMANTHA MARSHALL Queens in part because it has one to tone down style public in 2006, raising a total of Museum, and numerous of the country’s most established $4.4 billion. These were the five panel discussions at art venues steve olwell, a 21-year-old sen- sports management programs.But biggest IPOs, in millions of dollars: around town. ior at St.John’s University,wants to the school is no longer the only BY AARON ELSTEIN be the next Theo Epstein. The game in town. $2,002 SIX WEEKS AFTER ITS sports management major—a In September, both Columbia hedge fund managers,Wall Marshall Wace/MW Tops BLOCKBUSTER initial public diehard New York Mets fan— University and Westchester’s Street’s wizards behind the cur- $568 offering, the New York hopes to run a major league team Manhattanville College started tain, are seeking to cash in on their Boussard & Gavaudan Holding See AT DEADLINE on Page 2 by the time he’s in his early 30s,just offering master’s of science degrees eye-popping success by selling like the young general manager of in sports management. Wagner shares to the public. $512 College on Staten Island is plan- More than 20 hedge funds are GS Dynamic Opportunities ning to offer a sports specialization expected to conduct initial public $387 to graduate students in business offerings over the next two years. CMA Global Hedge administration. St. John’s, which Manhattan-based Fortress Invest- has offered an undergraduate ma- ment Group has already filed for $268 ELECTRONIC EDITION jor for 30 years,is awaiting state ap- what would be the first IPO of a Close AllBlue Fund proval of a new master’s of profes- domestic hedge fund since 1990. Source: Dealogic See LOCAL on Page 8 See HEDGE FUND on Page 8 NEWSPAPER AT DEADLINE Continued from Page 1 U.S. consumers for its mini- Mercantile Exchange was refrigerators and cheap air slapped with a “sell” rating by conditioners. Merrill Lynch analysts, who argued that the stock is THE WILDLIFE CONSERVATION overpriced relative to the SOCIETY named Manhattan- company’s growth prospects. based Deutsch Inc. its Trading volume would have to advertising agency of record. Deutsch, which took over the more than double over the next OFF THE RANCH: Chris two years to justify Nymex’s account from Young & Russell’s Brgr gets its hefty valuation, which is 70% Rubicam and Mediaedge:cia, meat from a small higher than that of other stock will develop a new online and provider in Montana. exchanges. Merrill Lynch offline marketing campaign for analysts believe that a 50% the WCS, which runs the Bronx increase in trading is more Zoo, the New York Aquarium likely.The stock closed Friday at and the zoos in Central, Queens $118.86, down from its recent and Prospect parks.The high of $133.50. It went public campaign will focus on the at $59. Bronx Zoo and the New York Aquarium. WCS spent just THE NEW YORK CITY DEPARTMENT under $500,000 on advertising OF PARKS AND RECREATION is last year. vowing that Wi-Fi service will be available in 10 more city parks RODALE IS GETTING AN EARLY by early March.The department JUMP ON BOOK DEALS pegged to roger hagadone began the process of wiring the the new Democratic-controlled parks in 2003 and was to have Congress, signing up Madame finished the job last summer. So Speaker, a biography of the new far, only Central Park and Speaker of the House, Battery Park are equipped to Representative Nancy Pelosi. Crazy ’bout burgers allow patrons free connections to The book, which should be out the Internet.The parks in 2008, will be written by Marc department has partnered with Sandalow, Washington bureau the city’s Department of chief for the San Francisco Beef on a bun goes upscale at passel of new joints Information Technology and Chronicle. Telecommunications to pursue BY LISA FICKENSCHER plans to install Wi-Fi in more SONA MOBILE HOLDINGS CORP., city parks. Officials declined to A MANHATTAN-BASED provider of new yorkers may be forced to give up trans fats and cigarettes, but they can still savor their say how many Wi-Fi parks they gaming and entertainment red meat. plan. DoITT was not involved in applications, signed a deal on The lust for beef is fueling an explosion of burger joints—a surge that is taking even jaded the original effort. Friday with the New York Racing Association to develop a New York foodies by surprise. HAIER AMERICA IS ROLLING OUT Web-based betting platform. At least a dozen specialty hamburger businesses have debuted in the city in the past several MORE HIGH-END consumer Racing fans will be able to years. About half of them cropped up in the past six months, and more are in the pipeline. electronic products. Last week, register online and gain access to the Manhattan-based division of track information. By the end of Heavy hitters such as Rachael Ray and Joe Bastianich have plans to join the fray, which already the $13 billion Chinese the first quarter, racing fans will includes chef Laurent Tourondel of the BLT restaurant empire. conglomerate introduced an also be able to watch streaming “It’s sort of amazing,” says Ray Pirkle, managing partner of Stand, which offers 11 gourmet MP3 phone, called Elegance, as videos. Eventually, the new burgers. “Six months ago, we actually thought about not opening at all” because of the glut of well as a line of LCD television platform will let racing fans bet sets. Haier is best-known among using their wireless devices. ■ competitors, he says. Newcomers say they are simply filling the void between fast-food restaurants like McDonald’s and the white-tablecloth eateries that serve beef on a bun as an afterthought.