TOP STORIES REPORT Chinatown’s uphill REAL ESTATE climb continues, Top office leases, five years after building sales terrorist attack in 2006; more PAGE 2 ® PAGES 19-35 Designer struggles for spotlight in his make-or-break VOL. XXIII, NO. 8 WWW.NEWYORKBUSINESS.COM FEBRUARY 19-25, 2007 PRICE: $3.00 fall season PAGE 3 Bankers Oscar-winning actor Jamie Foxx may be aim to working on a book PAGE 6 buy NY Alair Townsend on how to fix city’s sick assets retiree health plan PAGE 13 They make pitch Planning chief for privatization; Burden sets rules only MTA says no for garment district, UP AGAINST THE WALL: Former floor trader Linda BY ANNE MICHAUD Coney Island McBurney hopes to find a INSIDER, PAGE 15 job with a money investment bankers are blitzing management firm. the Spitzer administration with proposals to sell state assets to pri- BUSINESS LIVES buck ennis vate firms, as investors seek to buy NIGHT CRAWLERS EXCHANGING PLACES toll roads, bridges and even Off- Track Betting. The strange world and Bankers are making the rounds vampire hours of club at the Thruway Authority,the Em- PAGE 39 promoters Stranded by Street, pire State Development Corp., the state Department of Transporta- tion and the Port Authority of New York & New Jersey. They ex-traders seek rebirth seek to capitalize on statements by the new governor that he is open to public-private partnerships. “buy” and “sell” orders. New York’s stock and commodity Meanwhile, Gov. Eliot Spitzer Electronic markets Not anymore. Over the past exchanges operate, is also elimi- has ratcheted up the pressure on his erode a way of life; couple of years, as firms increas- nating hundreds of jobs. The administration by talking about a ingly used computers to make transformation is slowly but surely wish list of at least eight major AT DEADLINE some expats struggle trades, Ms. McBurney realized cutting off the livelihoods of a gen- transportation projects that will re- to relaunch careers that her career prospects were eration of Wall Streeters—the quire funding. In his State of the INVESTORS EXPECTING A bleak. Last July, she left to find a high-energy traders in the colorful State speech,he called for “a bold vi- SWEETENED OFFER have driven new job. She’s still looking. jackets who have long been the sion for infrastructure investment.” Smith & Wollensky’s stock BY AARON ELSTEIN “I’m at a point in my life where public face of the exchanges, and The only agency that has price higher than a takeover I’m trying to reassess why I was put who now number a mere 4,000. brushed off private-investment bid for the company. In Jan- linda mcburney worked at the on this planet,” she says. “There’s a sense of lament over talks, bankers say,is the Metropol- uary, Landry’s Restaurants Inc. New York Stock Exchange for She’s got plenty of company. what’s happening,” says Caitlin itan Transportation Authority. made a hostile bid to buy the more than a decade, jostling with The explosion of electronic Zaloom, an anthropologist who “We took a look at the projects New York steakhouse chain, hundreds of other traders barking trading,which is changing the way See EX-FLOOR TRADERS on Page 10 See BANKERS on Page 8 offering $7.50 a share, or $64.5 million in cash.The stock closed Friday at $8.20. It isn’t clear if speculators expect an increased offer from Landry’s, a bid from another company or Saint Vincent’s plan faces obstacles a management-led buyout. THE NEW YORK CITY OPERA IS Medicaid cuts, state approvals could hold EMBROILED in a labor dispute BEFORE AND AFTER with the American Guild of hospital system back as it looks to rebuild Stats for Saint Vincent Catholic Medical Centers. Musical Artists that could stall the company’s up- bold plan to emerge from bank- AT BANKRUPTCY AT EMERGENCE coming production of The BY GALE SCOTT ruptcy and build a shiny new flag- FILING1 FROM CHAPTER 112 Pirates of Penzance.Talks ship hospital on Seventh Avenue HOSPITALS between the opera and the coming at a time when the state took many industry veterans by sur- 6 2 See AT DEADLINE on Page 2 is in hospital-closing mode, Saint prise last week. Now, they are busy 4 NURSING HOMES 3 Vincent Catholic Medical Centers’ calculating whether the hospital can pull off such an ambitious plan. 11,628 TOTAL EMPLOYEES 5,592 “It’s a question of whether they $1.6 BIL. TOTAL OPERATING REVENUE $896 MIL. can get the necessary state ap- 1-July 2005. 2-Anticipated in summer 2007. provals in this climate,” says An- drew B.Roth,a partner specializing in health care at Mintz Levin Cohn off debt, building a state-of-the-art valuable real estate in the West Vil- ELECTRONIC EDITION Ferris Glovsky and Popeo. “The facility.” lage, Saint Vincent can raise much plan makes a lot of sense—capital- The long-awaited plan does of the money needed to build a NEWSPAPER izing on valuable real estate, paying have a lot going for it. By selling off See SAINT VINCENT on Page 8 AT DEADLINE Continued from Page 1 to provide free on-site tax union broke down Feb. 7 over preparation for entry-level the number of rehearsal hours staffers.The national nonprofit required by members of the has already lined up 14 chorus.The two groups will businesses, ranging from begin discussions again on Feb. Century 21 to the Garment 28, just four days before opening Industry Development Corp. to night.The union may picket the Just Bagels.The goal is to opening if the issue isn’t reduce the estimated $500 resolved. million in earned-income tax credits that go uncollected MANSUETO VENTURES, annually in the city. PUBLISHER of business magazines Fast Company and NEW YORK CORPORATION Inc., is launching Mansueto COUNSEL Michael Cardozo will Digital, which will expand the argue a case before the U.S. magazines’ Web sites and create Supreme Court in a fight over networking and database nearly $20 million. Lower services targeting the business courts have upheld the city’s community. Mansueto, founded position that India owes the city by Morningstar Inc. Chairman more than $16 million in Joe Mansueto, will invest property taxes on its consulate $10 million in the project, and U.N. mission, and that MAKING SOME NOISE: Chinatown merchant Andy which will include a partnership Mongolia owes more than Liu says it will take more with a Web site offering listings $2 million on its consulate.The than customers’ holiday of small businesses in China. countries appealed, arguing that splurges to cover his rent. the city doesn’t have the buck ennis THE CITY’S ECONOMIC authority to compel them to pay DEVELOPMENT CORP. expects to taxes.The case is scheduled for release a report this summer April. outlining the use of and de- mand for high-speed Internet SOME OF THE BIGGEST services in the five boroughs. INVESTMENT BANKS are An uphill struggle The study, conducted by devouring struggling mortgage Chicago-based Diamond companies that make loans to Management & Technology risky borrowers. Financial Week Chinatown’s recovery comes slowly, despite advances Consultants, will recommend reports in today’s edition that what the city can do to Credit Suisse swooped in to buy BY SAMANTHA MARSHALL encourage universal broad- most of the assets of ResMae band access. It may also suggest Mortgage Corp., a lender to on a wintry friday afternoon, business was sporadic at the Fu Qiang Enterprise souvenir the construction of a citywide home buyers with bad credit. Wi-Fi network. Other companies remain for shop on Mott Street in Manhattan’s Chinatown. Owner Andy Liu was hoping preparations sale, including Option One for this week’s Lunar New Year celebrations would lure more customers for traditional SEEDCO IS LOOKING TO EXPAND Mortgage Corp. and ACC ornaments: golden pigs, decorative firecrackers and lion puppets. But the Beijing native says THE NUMBER OF EMPLOYERS it’s Capital Holdings’ Ameriquest ■ it’ll take much more than holiday splurges to cover his rent. working with in New York City unit. “We need to make it nice so tourists will want to come here,” says Mr. Liu, who is also president of the Chinese American Business Network, an association of local merchants. He CORRECTION waves a long wish list, written in Chinese characters, outlining suggestions for neighborhood The WIRED NextFest held from Sept. 29 to Oct. 1 attracted 50,242 attendees. The number was incorrect in a Feb. 5 list of the largest meetings and conventions in the city. improvements—from better street lighting to a traditional archway pointing visitors to the See CHINATOWN on Page 9 THIS WEEK IN CRAIN’S NEIGHBORHOOD JOURNAL------------------------------------------11 Indie publisher looks more ALAIR TOWNSEND -------------------13 Perseus expands & Hamilton consultant who has THE INSIDER------------------------------------15 GET IN LINE been Perseus’ chief executive since 2004. He is expected to pay about in distribution with Top clients of Publishers WEEK IN REVIEW -----------------------16 $18 million for PGW. winning bid; small Group West, ranked by size. The firm’s bid has not been pop- SMALL BUSINESS ------------------- 17 houses concerned Avalon Publishing Group ular with some of the bankrupt dis- REPORT: Grove/Atlantic tributor’s smaller clients,which wor- 41 ry about getting lost in the shuffle. REAL ESTATE -------------------------------19 BY MATTHEW FLAMM New World Library “I always felt [PGW] was out there fighting for us,” says Beverly DEALS--------------------------------------------34 Rich Press perseus books group will become Potter, who runs Ronin Publishing CLASSIFIEDS ----------------------------------36 the Random House of indies if its in Berkeley.