TOP STORIES “Every single Ad guru helps rising month, there firm win transit are more and billboard contracts more [Internet] nationwide companies.” PAGE 3 ® –Kevin Ryan, entrepreneur Page 14 Targeted hospitals line up in court to strike back at VOL. XXIII, NO. 1 WWW.NEWYORKBUSINESS.COM JANUARY 1-7, 2007 PRICE: $3.00 state closing panel PAGE 3 MANHATTAN LOCATIONS Expansion on the Terror fund grill at Zen Palate * PAGE 4 campaign REPORT 90* Estimate. 200 ECONOMIC gains steam FORECAST ■New York City’s Insurance subsidy growth rate will continue to outstrip a high priority the nation’s PAGE 6 among Democratic ■After an epic 2006, committee leaders Wall Street profits projected to fall slightly PAGE 9 BY JULIE SATOW ap images ■ DEMOCRATIC Sen. Christopher Dodd and Mass-market Rep. Carolyn Maloney will play key roles. retailers changing for the first time since Sept. the way New Yorkers COFFEE BATTLE 11,the real estate and insurance in- shop PAGE 10 dustries are gaining momentum in A push for permanent funding ■The second wave their effort to secure long-term in 2005 resulted in only a two- of dot-com startups BREWS IN CITY federal subsidies for terrorism cov- year extension. The Democratic arrives in the area erage. takeover of Congress, which con- PAGE 14 The incoming chairmen of the venes Thursday,has improved the Dunkin’ Donuts aims to tap Senate Banking Committee and outlook for an enduring program. the House Financial Services That is good news for landlords Starbucks’ upscale customers Committee have publicly ex- and tenants here.New York has the by opening shops near offices pressed support for extended highest terrorism risk of any city in funding to back insurers that cov- the country, and insurance to cov- er terrorism risk. Another sup- er the cost of rebuilding after an at- AT DEADLINE BY ELISABETH BUTLER porter, Rep. Carolyn Maloney of tack drives up the price of already- Manhattan, became chair last expensive properties. BROADWAY IS EXPECTED TO dunkin’ donuts, a fast-food chain that has long appealed week of a House subcommittee “The No. 1 issue associated REPORT record-breaking to construction workers and taxi drivers, is trying to put overseeing the issue. See INSURANCE on Page 17 grosses—even surpassing 2005’s $825 million—when it more of its signature pink and white coffee cups into the releases its year-end numbers manicured hands of office workers. this week. From the As part of the expansion plan it launched last year, beginning of the theater Dunkin’ Donuts aims to challenge Starbucks’ white-collar season in June through Dec. popularity by opening more stores in Manhattan’s office Stock market rally 24, grosses jumped nearly buildings and near tourist attractions such as Rockefeller 10%, to $520.6 million.The Center and Times Square. To help secure some of those box-office bonanza is the coveted sites, Dunkin’ Donuts has introduced a more up- lifts NY companies result of a number of hit productions as well as the scale store model, complete with granite countertops and advent of premium-priced wallpaper sporting its new logo. Starbucks, the city’s biggest Local index up 24% tickets, which have reached coffee chain, is brewing its own expansion plan to fight back. as interest rates level $300 for some shows.The “Our thing is getting into more high-end buildings,” says top-selling musical, Wicked, Steve Menexas, one of the city’s dozen Dunkin’ Donuts off; some losers also led the overall pack.The franchisees.“We want people to see that we’re not just about show brought in more than cheap coffee,” he says. $1.5 million some weeks, an BY AARON ELSTEIN amount previously unheard of Though Dunkin’ Donuts’ corporate officers did not re- on the Great White Way. turn calls for comment, an insider familiar with the compa- the stock market turned in a ny’s managerial decisions says that executives don’t want to memorable year in 2006, helping NINETEEN NEW YORK AREA turn the doughnut emporium into Starbucks. Rather, they make the experience of reviewing a COMPANIES went public in are trying to freshen up the stores to attract a wider variety 401(k) account the most pleasant in 2006, the most since 1999, of customers without irking their working-class devotees. memory. New York companies led according to Renaissance See COFFEE BATTLE on Page 19 the parade.The Bloomberg/Crain’s See AT DEADLINE on Page 2 New York index of area stocks rose corbis 24%, handily beating the Dow Jones Industrial Average and the tabones gerard Standard & Poor’s 500, which rose were even early signs that the COMINGNEXT WEEK 17% and 14%, respectively. housing market was stabilizing. Crain’s SMALL BUSINESS REPORT starts The market’s rally took hold in The coming year should be a the year with resolutions from 10 midyear, after the Federal Reserve bountiful one as well, according to ELECTRONIC EDITION entrepreneurs, who share frustrations stopped raising interest rates and Morgan Stanley strategist Henry and express optimism about 2007. the three-year run-up in oil prices McVey.He forecasts that the mar- NEWSPAPER ran out of gas. By year’s end, there See MARKET on Page 18 WEEK IN REVIEW AT DEADLINE Continued from Page 1 proposed Dallas-Beijing service Capital’s IPOHome.com. The had been considered the front- approved the $4 billion, 22-acre surge was composed mostly of runner until last month, when Atlantic Yards project.The midsize investment banks like its pilots said they wouldn’t fly development will include a home Evercore Partners and Keefe the long-haul trip. American’s for the New Jersey Nets and 16 Bruyette & Woods. A number flight would stop in Chicago as buildings, including 6,000 of hedge funds are expected to a result, giving Continental residential units. … The U.S. go public if New York-based renewed hope for its bid. Department of Transportation Fortress Investment Group can Northwest Airlines and United committed $2.7 billion to help pull off its proposed IPO this Airlines are also competing. build a rail link between Grand spring. Central Terminal and the Long THE CONSULATE GENERAL OF Island Rail Road. THE BROADWAY DANCE CENTER IRELAND HAS SIGNED UP for HAS SIGNED a 10-year lease for another 13 years in its 35,000- 22,000 square feet at 322 W. square-foot location at 345 Park NYT downgraded 45th St., at Eighth Avenue.The Ave., between East 51st and standard & poor’s cut The New center has been holding classes East 52nd streets.The sublease York Times Co.’s credit rating to in three temporary locations with Bristol-Myers Squibb was BBB-plus from A-minus. S&P since leaving its longtime set to expire.The consulate now cited the publishing company’s location at West 57th Street in has a lease with the building’s capital spending plans and a December. Cresa Partners landlord, Rudin Management challenging environment for represented Broadway Dance in Co. CB Richard Ellis newspapers. It also said that the the deal, and Newmark Knight represented the tenant in the outlook for the NYT’s debt is Frank negotiated on behalf of deal; Rudin represented itself. negative, which could lead to the sublessor,Thomson’s Tourists flock to New York City further downgrades. Technicolor. Asking rent was A PROPOSAL TO CHANGE STATE LAW A RECORD 44 MILLION VISITORS pumped more than about $30 a square foot. TO REMOVE the informed consent requirements for HIV testing $24 billion into the Big Apple last year, according to NYC & Monster starts THE U.S. DEPARTMENT OF could pose one of the first health Company. That’s up 7.3% from 2005, and MAYOR MICHAEL climbing back TRANSPORTATION is expected to care challenges faced by the BLOOMBERG said the city is well on its way to achieving his decide in the coming weeks Spitzer administration.The monster worldwide inc. which airline will get the rights New York County branch of the goal of attracting 50 million tourists annually by 2015. NYC regained its status with the Nasdaq to a new route to China. Among state Medical Society endorses & Company is expanding its international marketing Stock Market after filing its third- those vying for the valuable eliminating consent to speed up campaign, which debuted in London last month. quarter earnings report with the business is Continental Airlines, testing, but a key Assemblyman, Securities and Exchange which would fly from Newark Richard Gottfried, maintains corbis Commission. Liberty International Airport to that that goal can be reached in increased its reserves to cover the Shanghai. American Airlines’ other ways. ■ Bruno probed; settlement costs and lowered its Hevesi out 2006 earnings estimates. Spitzer settles new york state Senate Majority two inquiries TOP 10 CRAIN’S WEB STORIES Leader Joseph Bruno (below) said News Corp., entercom communications The most popular online stories in the fourth quarter of 2006. that the federal government is Liberty swap Corp., the nation’s fifth-largest 1 Lord & Taylor considers moving out Nov. 6 investigating his radio conglomerate, settled a pay- outside business news corp. and Liberty Media for-play inquiry by New York state 2 Park Avenue Cafe to shutter on Jan. 1 Nov. 7 interests. … Corp. agreed to an $11 billion asset Attorney General Eliot Spitzer Under a deal swap, settling a two-year dispute for $4.25 million. … Cardinal 3 MetLife real estate deal could be derailed Nov. 15 that allowed over Liberty’s stake in Rupert Health Inc., which distributes 4 Merrill Lynch may leave New York City Nov. 10 him to avoid jail Murdoch’s empire.