Grand Central Partnership 2014 Annual Report ReEngineer ReBuild ReImagine 2 Message from the Chairman and President/CEO 4 2014 Review and Profiles 18 Financial Statements 20 Board of Directors, Officers and Management Contents The Grand Central Partnership (GCP) manages one of the world’s oldest, busiest, and largest Business Improvement Districts (BIDs) on behalf of the Grand Central District Management Association. GCP serves approximately 70 square blocks in Midtown Manhattan surrounding Grand Central Terminal, the landmark transportation hub and destination. A nonprofit organization, GCP is now in its second quarter century of delivering supplemental public safety, sanitation, capital improvements, maintenance, horticultural displays, business support, and visitor services. Financed by special assessments on the area’s properties, the BID operations are provided under a renewable contract with the City of New York. 2014 GRAND CENTRAL PARTNERSHIP ANNUAL REPORT 1 fter a triumphant year in which we looked to the past in celebration of (Left) Peter S. Kalikow, Grand Central Terminal’s first one hundred years, the Grand Central Chairman, (Right) Alfred C. Cerullo, III Welcome Partnership (GCP) spent 2014 contemplating the next one hundred President/CEO A years, with a focus on the more immediate future of our neighborhood. As we look ahead, we see the many ambitious projects currently underway or soon to begin in the area. While the neighborhood will attain new heights – both literally and figuratively – as a result of these projects, it will also be reimagined, as business owners and developers adapt to the changing marketplace. Its existing spaces, too, will be adapted: reengineered and rebuilt to best serve the demands of today’s workplace. As GCP enters our second quarter-century of successfully working with our stakeholders to strengthen the Grand Central community, we are working closely While remaining focused on the neighborhood’s vitality and future during with our partners in City government; at Metro-North Railroad, Long Island this “rebuilding year,” we also spent 2014 taking a close look at the company’s Rail Road, New York City Transit; and with private developers on nearly half a operations and organization in reengineering the way it does business and dozen major projects that will dramatically change the face of the district over delivers services to the Grand Central community year-round. the next decade. These projects – some of which are highlighted in this report This report, while providing an operational overview, as well as updates on – are the blueprint for how the Grand Central neighborhood will face the our day-to-day activities, also highlights specific examples of how reimagining, remainder of the 21st century: with improved access to the public transportation reengineering and rebuilding are already shaping the Grand Central network; more open spaces; improved lighting and infrastructure; modern, Partnership district. state-of-the-art commercial office buildings; and the creative re-use and adaptation of existing structures. To those featured in the following pages, we thank you for your time and participation, and for your initiatives and contributions to the area that only serve Another crucial component of this blueprint is changing zoning regulations to enhance the reputation of our already great neighborhood. that will allow for redevelopment and revitalization of the East Midtown building stock. Toward this end, in 2014 GCP was fully engaged in the land-use and And as we head into the future, we thank you – our stakeholders – for your planning debate before the New York City Planning Commission that resulted continued support and tireless advocacy on behalf of our organization and our in the rezoning of the Vanderbilt Avenue corridor and the approval of SL Green’s neighborhood. One Vanderbilt. These plans will spur modern, state-of-the-art commercial development along the corridor and provide enhanced public transit improvements. Also this past year, we took a seat at the table as part of the East Midtown Rezoning Task Force, chaired by Manhattan Borough President Gale Brewer and Councilmember Dan Garodnick, formed with the purpose of providing city Peter S. Kalikow Alfred C. Cerullo, III planners with a zoning and public-realm framework for the entire Midtown Chairman President/CEO East community. 2 2014 GRAND CENTRAL PARTNERSHIP ANNUAL REPORT 2014 GRAND CENTRAL PARTNERSHIP ANNUAL REPORT 3 On the importance of continuous FIELD OPERATIONS Public Safety Management, and with key neighbor- hood representatives from commercial improvement: In 2014, the Grand Central Partnership With a newly reengineered supervisory building, retail and hotel security, and (GCP) undertook a reorganization of structure, GCP’s Public Safety work- “In reflecting on the more than 25 years property management. Public Safety its separate Field Operations units force maintained its vigilant watch on GCP has been providing services to our staff also attended specialized training (Public Safety, Sanitation, and Tourism) the streets of the district as part of neighborhood, we’ve never lost focus on and briefings with various state, View to create a centralized managerial, GCP’s “clean and safe” mandate, with federal, and local law enforcement 2014 the need to build and improve on prior supervisory, and administrative close to 80,000 patrol hours logged agencies. These sessions, sponsored successes. In fact, we’ve come to take team. This reorganization included in 2014. by the NYPD Shield Program, were held pride in striving to ‘outdo’ ourselves, the recruitment of a highly qualified Re GCP’s vigilance extended beyond the at NYPD Headquarters. management team. Former New York setting new standards for success year streets, as well, as the Public Safety City (NYC) Sheriff, Lindsay Eason, In addition, Public Safety officers to year. program continued to operate the was hired as GCP’s new Director of served as ambassadors for GCP Neighborhood Alliance Office, a walk-in “2014 certainly proved to be a year of Field Operations, and former NYC and the neighborhood by delivering space in the 335 Madison building Department of Investigations Assistant information and customer assistance continued improvement, and the great (with its entrance on the northwest Commissioner, Alberta E. Ancrum, to businesses in the area, as well as thing about continuous improvement is corner of Vanderbilt and 43rd Street). was hired as Deputy Field Operations to the general public. The officers that 2015 will be even better!” The office is an initiative of GCP, the Director. The reorganization resulted in periodically visited the nearly 850 Metropolitan Transportation Authority significant savings due to a reduction retail establishments and 350 private (MTA) Metro-North Railroad, the MTA in supervisory overtime, increased building managers in the district as Police and the New York City Police accountability across all field units, a way of reinforcing GCP’s overall Department (NYPD). It allows all of the and consistent policies and procedures visibility, its role as an anticrime entities to coordinate their crime-fight- department-wide. This reorganization deterrent, and to provide information ing efforts to enable increased was initiated after a successful pilot regarding services available to support efficiency and effectiveness. program, commenced on September 1, their businesses. Public Safety officers 2013, to assess operational effi- In 2014, GCP maintained another served the general public as well, ciencies in the field using existing connection to local law enforcement assisting individuals at GCP taxi stands experienced supervisors. through its participation in the NYPD near Grand Central Terminal, providing “Paid Detail Program,” whereby two referrals to services for those in need, Alfred C. “Fred” Cerullo, III, off-duty uniformed NYPD officers and by helping to ensure the area President and CEO, accompany Public Safety personnel remained “ship-shape” by completing Grand Central Partnership on patrols around the neighborhood weekly maintenance reports for to be on the lookout for quality-of-life GCP-owned streetlight poles, rooftop infractions and criminal activity. stadium lighting systems, and distinc- tive multi-newsracks. As part of GCP’s efforts concerning emergency preparedness, GCP Public Safety staff worked to foster close ties with the NYC Office of Emergency 4 2014 GRAND CENTRAL PARTNERSHIP ANNUAL REPORT 2014 GRAND CENTRAL PARTNERSHIP ANNUAL REPORT 5 On reorganizing GCP’s field operations under one director and a unified Sanitation through 230 Park Avenue, as well as the In an effort to educate building owners Park Avenue Malls between East 46th and management, retailers, and supervisory structure: The other pillar of GCP’s “clean and Street and East 54th Street. restaurants about NYC Department safe” efforts, its Sanitation team, logged Rochelle: “Grand Central used to be a neighborhood where people took the train in, of Sanitation collection and recycling 131,612 hours of cleaning the streets, Maintaining a sparkling clean streets- regulations pertaining to their property went to work, and left the neighborhood. But it has evolved into a 24/7 destination. sidewalks and streetscape in 2014, filling cape also required keeping a watchful or business, GCP district coordinators And we’ve had to evolve with it. We keep changing the way we do things to meet the nearly 150,000 bags of trash that were eye on planters, lamp posts,