HALLOWEEN OBSESSION Inside Kevin Ryan’s big CRAIN’S® bash P. 29 NEW YORK BUSINESS VOL. XXVIII, NO. 43 WWW.CRAINSNEWYORK.COM OCTOBER 22-28, 2012 PRICE: $3.00 AN IPO EYEFUL Citi seen Shutterstock shares were up some 35% in their first seven days of trading. sounding $25 $24.36 10/18 retreat in $23.04 $23.08 $23.00 $22.95 10/17 10/15 10/16 10/19 the city $22.00 $21.66 10/12 10/11 close New CEO is likely $20 to further shrink what used to be the largest employer in town BY AARON ELSTEIN $17.00 PICTURE PERFECT: 10/11 Shutterstock CEO Jon Oringer opening paid close attention to the Citigroup Inc.’s long reign as New IPO’s every detail. A strong York’s largest private-sector employer balance sheet also helped. ended with a resounding thud during the Great Recession. Since then, Citi $15 has sacked a third of its local workforce. Source: Bloomberg News Now the new regime that took over last week is poised to go even further. Analysts expect the new team, led by Chairman Michael O’Neill and Chief Executive Michael Corbat, to move quickly to cut costs.That means taking a meat-ax to slow-growing, thin-margin lines of business, such as trading and branch banking—both of which are centered in New York City. The bank’s focus and its money will See CITI on Page 28 Shutterstock! Marathon The first NY tech IPO in years was a quiet smash. What hit with big Jon Oringer can teach Mark Zuckerberg about going public cop fees BY MATTHEW FLAMM since 2010. week was trading at 20% above its of- The company, which sells stock fering price, according to Renais- City to quadruple Sometimes it pays to be ignored. photos online, also happened to have sance Capital. race’s 2013 traffic, Shutterstock Inc., unlike some of its one of the more successful initial The little-known Shutterstock Silicon Alley peers, had never been the public offerings in recent years. Its now has a market cap valued at more clean-up bill to $3M subject of frequent speculation about stock closed Friday at $23—35% than $750 million. its IPO plans. But on Oct. 11, it flew above its $17 offering price.That put The event was a far cry from Face- BY LISA FICKENSCHER in under the radar to become the first it leaps and bounds ahead of the av- book’s IPO meltdown in May, where New York City tech firm to go public erage U.S. IPO this year, which last See SHUTTERSTOCK on Page 25 For the first time in the ING New York City Marathon’s 43-year history, the city will present the event’s organ- buck ennis izers with a multimillion-dollar bill to pay for the hundreds of workers who will control traffic, keep order and REPORT REAL ESTATE clean the city streets on Nov. 4. Park designers ride high, thanks to $1.5B The tab for police officers alone is expected to surge beyond $1 million— spent by the city on new greens P. 15 from zero in years past. “No question, this is a challenge for THE LIST Largest construction firms P. 19 us,” said Mary Wittenberg, CEO of NEWSPAPER See MARATHON on Page 27 STATS AND THE CITY FRIGHT NIGHT EXPOSED It’s not just the city’s stoplight cameras prompting screams this time of year. Halloween is drawing near, and cash registers are ringing. FYICRAINSNEWYORK.COM 693K Pumpkins harvested in NYS in 2011, with value of $23.6 million, the highest in the U.S. NY shines in 60K+ Costumed revelers slated to walk in the 39th political limelight annual Village Halloween Parade s a longtime gimme for the Democrats, New 33 newscom Giant Captain America shields sold York state almost never by Abracadabra costume shop in A the first few weeks of the season experiences what happened last week—several days in which it basked front and center in the political limelight. It all began with VP candidate Paul Ryan attending an event at the Intrepid 1,564 Sea, Air and Space Museum featuring dozens of prominent Republican officials—and an angry Number of U.S. candy manufacturers, mob of protesters. for whom Halloween is huge, in 2010 On Tuesday, the focus shifted out to Long Island for the show of shows, the superheated 24.7 debate between President Barack Obama and former Massachusetts Gov. Mitt Romney at Hofstra Pounds of candy consumed by the average University. Afterward, people differed as to who had scored more body blows, but everyone American in 2010 agreed on one thing: The event, with questions delivered by members of the audience, was a total Sources: U.S. Dept. of Agriculture, U.S. Census Bureau, Abracadabra and Village Halloween Parade winner in exposing the rest of the nation to the wonders of genuine LawnGuyland accents. istockphoto CASHING IN ON CLICKS At the end of the week, the candidates reunited—in white tie and tails—at the Waldorf- Internet ad revenue set fresh records in the first half of 2012, rising 14% Astoria for the 67th annual Alfred E. Smith Dinner, the Catholic archdiocese’s largest year-over-year. fundraiser of the year. Mr. Obama was the first sitting president to attend the dinner since Ronald Reagan in 1984. $20,000 Revenue in millions That came on the heels of what was billed as a three-day retreat for Romney campaign donors at 15,000 the Waldorf.There was no word on how much it raised. But in the coming weeks, the New York 10,000 Andrew Cuomo 5,000 show will roll on. Gov. has been tapped to stump the nation for his party. 0 —andrew j. hawkins 1H 1H 1H 1996 2004 2012 STOP-AND-FRISK’S COURT DATE. The projects like roof repairs to create Sources: Interactive Advertising Bureau and PricewaterhouseCoopers NYPD’s controversial stop-and- jobs and take advantage of cheap fi- HOORAY! frisk practice is getting its day in U.S. nancing costs. … NEWSWEEK TURNS THE RAINBOW ROOM, Rock Center’s ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY court. For the first time, a federal THE PAGE. After nearly eight legendary party venue, is officially a city judge in Manhattan is hearing testi- decades, Newsweek will finally close landmark. mony on whether NYPD tactics, in- the book on its print publication at THIS WEEK IN CRAIN’S cluding stopping people on the street year’s end. With circulation down and arresting others for trespassing and financial losses up, the long- in residential buildings, violate con- fading title will morph into an all- IN THE BOROUGHS-------------------------- 3 stitutional protections.The hearings digital publication called IN THE MARKETS----------------------------------4 are expected to run for two weeks. Newsweek Global in 2013. In the THE INSIDER -----------------------------------------------6 Among others eagerly awaiting the process, further cuts in staffing will outcome will be Mayor Michael be made. Newsweek’s announce- CORPORATE LADDER----------------10 Bloomberg, who has fully backed ment comes just a few months after A BOUNCE IN OPINION --------------------------------------------------------12 stop-and-frisk. ... SmartMoney announced it would go OY VEY! BUILDING. Surprise, surprise: After paperless. … STYLISH EATS FOR GREG DAVID--------------------------------------------13 HARLEM. THE YANKEES blew their American many quarters of The news is League Championship Series with four REPORT: REAL ESTATE-------------15 nothing but bad out: Come the sum- straight losses. news, things are ‘I would not mer of 2015, REAL ESTATE DEALS------------------- 18 looking up for even Harlemites will be THE LIST ---------------------------------------------------------19 builders. Construc- able to pick up or- tion in the city is ex- consider— ganic quinoa, arti- DIGITAL NEW YORK-----------------------21 pected to top out at even sanal cheeses and CLASSIFIEDS -----------------------------------------22 more than $30 bil- more from a Whole BUSINESS PEOPLE lion worth this year, consider—a Foods on West 125th FOR THE RECORD--------------------------- David Paterson’s radio show 24 the most since 2008. Street and Lenox has kept the former governor NEW YORK, NEW YORK ----------29 Major expansions pay raise’ Avenue. The high- in the public domain since ongoing at several Gov. Andrew Cuomo, end chain has an- SOURCE BREAKFAST-----------------30 leaving Albany two years ago. colleges are helping explaining that until nounced it’s staked opment at the old Domino refinery P. 8 But will WOR keep him? OUT AND ABOUT ------------------------------31 and will likely push legislators get busy and out a place in a yet- on the Williamsburg waterfront are pass key reform legislation, CORRECTIONS the needle over $30 to-rise building back on the burner. Dumbo-based billion next year as all raises for lawmakers there,as well as a spot Two Trees has paid $185 million for Anupam Singhal and Nishant Mittal were investor colleagues before co-founding data well. The city will do will be off the table down on East 87th the long-stalled 11-acre site, but it analytics company Monaeo. Their previous connection was incorrectly characterized in the Oct. 8 “The App for the 1%.” its part, too. The Street and Third Av- has also hinted that it may want to mayor,along with Comptroller John enue, due to open in 2014—upping talk to local leaders about amending David Szuchman worked at the Manhattan district attorney’s office from 1997 to 2001 and was then rehired in 2010. Mr. Szuchman worked on a case in which nonprofit Liu, announced plans to push for- its Manhattan outposts to nine. ... the earlier plans. That could mean employees were stealing donors’ personal information to sell to local gangs.