20131209-NEWS--0001-NAT-CCI-CN_-- 12/6/2013 7:29 PM Page 1 COUPLES STEAL THE SHOW in the fashion business CRAIN’S® NEW YORK BUSINESS PAGE 33 VOL. XXIX, NO. 49 WWW.CRAINSNEWYORK.COM DECEMBER 9-15, 2013 PRICE: $3.00 School authority hit with huge bill Old scaffold law 19.9%CITY’S AVERAGE SHARE OF SECURITIES JOBS IN THE U.S. through October, the first wreaks new havoc, time it’s been below 20%. The city’s share of investment-banking and brokerage jobs raising pressure for was 30% two decades ago. legislative change BY DANIEL GEIGER At the stroke of midnight on Dec. 31, 23%SHARE OF WALL STREET JOBS REGAINED nearly $140 million will effectively IN THE CITY IN THE CITY since the bottom of the vanish from the budget of one of the recession in 2010. The city lost 32,000 securities jobs between 2008 and 2010. city’s biggest builders, the New York City School Construction Authority. In the following two years, at least an- other $260 million will disappear, bringing the total to $400 million— enough to build as many as 10 new schools, say SCA officials. 54%SHARE OF SECURITIES JOBS REGAINED 54% The losses stem not from budget NATIONALLY since 2010. Firms are hiring cuts or cost overruns, but from an un- more people—higher up the corporate precedented escalation in the price of ladder—inladder—in lower-costlower-cost citiescities likelike TampaTampa andand the construction insurance that the Jacksonville, Fla., and Salt Lake City. agency must have to cover the costs of potential injuries suffered by workers See SCAFFOLD on Page 32 Food co-op Call It Small Street shares The incredibly shrinking Wall Street keeps losing jobs. Why that spells trouble for tax receipts—and income inequality its wealth BY AARON ELSTEIN ed for decades, dipped earlier this year business scene. “That has all sorts of to below 20%, an all-time low. More- implications for the city’s tax revenues.” Popular Park Slope Long ago, the city’s banks and broker- over, jobs lost after the financial crisis The fiscal well-being of the state and grocer will loan funds; ages decided they no longer needed to are being replaced in New York at less city is closely tethered to the financial Clinton Hill wants in be based close together in downtown’s than half the rate of the rest of the industry despite efforts to diversify the concrete canyons. Now there is growing country. economy by stoking growing sectors evidence that these firms are starting to “The numbers say there are a lot of like tech and tourism. Wall Street con- BY LISA FICKENSCHER see they no longer need New York. Wall Street jobs that don’t need to be in tributed a full sixth of the state’s tax rev- The city’s share of jobs in the securi- New York,” said Barbara Byrne Den- enue last year and accounted for better The Park Slope Food Co-op,the largest ties industry, which has gradually erod- ham, an economist who tracks the local See WALL ST. on Page 7 in the country, with 16,300 members and $49 million in revenue, has a new buck ennis mission.Though it has long acted as an adviser to other co-ops,for the first time in its 40-year history it will loan them 49 5 money to start up or grow. best Complete list Its success, including net income this year of $221,544 and an endless places of all 75 winners stream of people who want to become members, has allowed it to launch a towork starts on Page 16 fund managed by a 501(c) foundation NEWSPAPER See PARK SLOPE on Page 32 71486 01068 in NYC 0 EDITOR’S NOTE Give and take FYICRAINSNEWYORK.COM Moments of sadness and joy last week. First, a farewell to Peter Feds order safety upgrades Kaplan, the late, great editor of The New York Observer, whose snappy at Metro-North after crash journalism sensibilities influenced, perator error is the likely culprit to blame oh, only everyone in American for the Metro-North Railroad train crash publishing these past 25 years. Dead in the Bronx that killed four and injured at 59 from cancer. Damn you, God, Glenn Coleman O 71 Dec. 1, but investigators have not determined for taking him. At the funeral last whether criminal charges will be levied against newscom Tuesday, a rabbi offered beautifully the train’s engineer. William Rockefeller reportedly admitted to falling into a trance-like daze in comforting words for Peter’s family, including his the moments before the crash, as the Manhattan-bound train hurtled around a curve at 82 widow, a friend of mine since college days, and her mph—almost three times the 30-mph speed limit. He has been suspended without pay. now-fatherless 9-year-old boy. It’s hard to imagine a The accident was the first with passenger fatalities in Metro-North’s 30-year history, but losing sadder sight, hard for thoughts not to drift: your own focus at the controls does not automatically establish criminality, unless the engineer knew he family, your own fear of loss, your own appreciation of shouldn’t be working.The crash prompted the Federal Railroad Administration to order Metro- life and its satisfactions (God willing) in the years to North to upgrade its signals so that engineers would be warned when speeding, and the power cut if come. And so, the next moment: a “Get well” to trains fail to slow down. In the meantime, the railroad will be required to have two crew members Frederick Gabriel, the editor of Crain’s sibling inside or near a locomotive’s cab when it approaches curves and other hazardous areas. publication InvestmentNews, whose remarkable Meanwhile, in a jab at Mayor Michael Bloomberg, Mayor-elect Bill de Blasio said that as generosity I will now tell you about, with neither his mayor he would be present at such tragedies. Mr. Bloomberg was golfing in Bermuda at the time knowledge nor consent. Fred donated a kidney last of Sunday’s disaster. He later visited victims at the hospital and defended his absence by saying week to a fellow colleague in our New York offices, he would have been able to do little at the crash site. and both are recuperating from their surgeries. Word last Thursday of their progress produced an instant BIG GAINS FOR GIVING TUESDAY. Some lead to the collapse of 7 World Trade flashback to when Fred informed me and another 10,000 nonprofits participated in the Center hours after the Twin Towers HOORAY! editor over breakfast last month about his plan. He second annual Giving Tuesday, a day fell during the 9/11 terrorist attacks. MAYOR dedicated to donations,up from 2,500 The ruling absolves developer Larry MICHAEL was giving up a kidney not because of any unusually BLOOMBERG lit last year. According to software com- Silverstein and others of liability. … up the 76-foot close bond with the recipient, a rather crusty pany Blackbaud, which serves non- “AMAZON LAW” LIVES. The Supreme Rockefeller character in our workplace. He was doing it simply profits, online giving jumped 90% Court refused to hear appeals by Ama- Center Christmas tree, a because he could.The two are a genetic match, from 2012 for its 3,800 customers. zon and Overstock.com on a New signature event Blackbaud processed more than $19.2 York law that forces Internet sellers to of the holiday kidney-wise.The tests also showed that Fred could million in online donations this year. collect New York sales taxes on deliv- season. never help his partner or their children, all adopted, The average gift was $142.05. … eries to state residents, even if those should (God forbid) any of them need a donor E-CIGS LIGHT UP COUNCIL. The City companies do not maintain facilities bloomberg news someday.“Glenn, what’s the matter?” he asked in Council heard a bill that would ban here. The court’s rejection leaves it to OY VEY! mid-explanation. I was frozen, my jaw agape, a slow electronic cigarettes in most public Congress to knit a patchwork of spaces in New York.Proponents of the Internet sales-tax laws into a nation- A NATIONWIDE KNISH SHORTAGE was and steady drip, drip, drip of tears hitting the table. ban argued that there is no research to wide approach. … VOLCKER VOTE. supposed to end by “Thanksgivukkah,” but the machine destroyed by a fire at Thank you, God, for giving us Fred. prove that the battery-operated Five federal agencies are expected this Gabila’s Knishes won’t be operational smokeless cigarettes are safe. Advo- week to approve a rule prohibiting until Christmas at the earliest. cates, puffing on va- banks from trading por-emitting e-cigs, ‘I put a Yankee for their own benefit THIS WEEK IN CRAIN’S said the product helps and limiting their smokers kick the habit cap on his ability to invest in IN THE BOROUGHS-------------------------- 4 by providing a safer al- hedge funds.The vote ternative. … MAGA- head, and he on the 950-page IN THE MARKETS----------------------------------6 ZINE ISSUES. Follow- said to the Volcker Rule will oc- ing a drop in ad pages, cur more than a year THE INSIDER -----------------------------------------------8 New York magazine crowd, “You after regulators the life sciences. Both ventures OPINION --------------------------------------------------------12 will scale back its fre- know who I missed a congression- bring together public and private dol- quency to biweekly al deadline because of lars.