CNYB 11-24-08 A 1 11/21/2008 8:43 PM Page 1 INSIDE GREG DAVID TOP STORIES Willets Point’s choreographed Condo projects ending stall; architects PAGE 11 scrounge for work ® PAGE 2 Local TV stations roiled by car VOL. XXIV, NO. 47 WWW.CRAINSNEWYORK.COM NOVEMBER 24-30, 2008 PRICE: $3.00 industry’s collapse PAGE 3 Help Efforts to aid small business Bloomberg knocked needed inadequate, late in coming PAGE 3 at ailing SPECIAL REPORT off balance NEW YORK’S Citigroup PRIVATE COMPANIES Economic crisis, budget CEO Pandit’s job G The road from public to private cuts, council battles trip up on the line as bank isn’t paved with gold for Reader’s mayor; popularity slips faces grim choices; Digest nothing is working PAGE 15 G Companies forced BY ERIK ENGQUIST to put off plans to go BY AARON ELSTEIN public as IPO market predictions that remains in deep freeze diminished stature and the sickening downward spiral PAGE 15 a hostile environment of Citigroup shares is rapidly erod- G Commodities firm awaited Mayor Michael ing support for Chief Executive climbs to top of Crain’s Bloomberg on the other side Vikram Pandit, who seems in- list of 200 top privately of his term-limits fight have come creasingly powerless to turn things held companies true—and earlier than expected. around at the banking giant. PAGE 18 In the month since he signed the bill Investors dropped the stock and that allows him to run for a third term,hard- ran last week, following Mr. Pan- ly a day has gone by without a major city dit’s move to shed 52,000 employ- employer announcing layoffs, or ees and bring $17 billion of ailing another dismal eco- structured investment vehicles nomic indicator ismael roldan onto Citi’s books.After two days of making headlines. record declines in the value of Citi’s With tax revenues shares, he told employees that the dropping, he has pro- company would neither be sold nor posed $2.5 billion in broken up—steps that many ex- tax increases and serv- perts insist are now all but in- ice cuts, sparking anger evitable.The bank’s share value has and fear among special- shrunk 86% this year and 60% last interest groups. He has week alone. been challenged by an em- Now the bank’s future,as well as boldened City Council, and Mr. Pandit’s, is in doubt, with a his approval rating has fallen 9 possible federal takeover or fire sale BUSINESS LIVES points, to 59%—its lowest to another bank on the horizon. HOLIDAY TWIST See MAYOR on Page 7 See HELP on Page 3 Ethnic eateries put their stamp on the traditional meal PAGE 31 Top of shopping list: Save the holidays INDEX NEW YORK, NEW YORK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _6 Restaurants, hotels, stores offer freebies, NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 promotions to reel in thrifty customers THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _12 day season. WEEK IN REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _13 BY LISA FICKENSCHER Last week, the storied property, CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _28 AND ADRIANNE PASQUARELLI still gleaming from its $400 million REAL ESTATE DEALS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _30 renovation of almost a year ago, an- CORPORATE LADDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _33 the plaza hotel,one of the city’s nounced a package inviting guests THE WEEKS AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _34 top tourist attractions, is doing its to stay three nights and get the third See AT DEADLINE on Page 2 TABLE TALK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _35 part to put some cheer back into one free—a savings of $775, ac- this otherwise anxiety-filled holi- cording to the hotel, which plans to run the promotion through March. 47 “It’s an opportunity to get our 5 name out there and to give some- KEN BIBERAJ thing extra-special,” says General of the Russian Tea Manager Shane Krige. Room says people The Plaza’s golden carrot is one can pick up their ELECTRONIC EDITION of many these days.Despite the re- borscht at the bar. lentless torrent of bad news, busi- NEWSPAPER See TRYINGon Page 7 buck ennis 71486 01068 0 CNYB 11-24-08 A 2 11/21/2008 8:22 PM Page 1 BUILDING BUST IN BRIEF THE INDEPENDENT COLLEGE FUND OF NEW YORK, WHICH RAISES SCHOLARSHIP FUNDS for small liberal arts universities in the state, New construction stalls shuttered earlier this month, a victim of the ailing economy. According to a letter to its board on Oct. 30, ICFNY said support for the Offerings plunge as fund waned due to mergers and acquisition activity among corporate donors and changes in lack of loans, condo donors’ philanthropic guidelines.The 56-year- old fund had raised $40 million from major glut stop projects; donors, including the Coca-Cola Co. and HSBC. Since 1995, ICFNY established 1,200 boroughs in a bind scholarships for students. GRAND CANYON EDUCATION INC. MANAGED TO BY HILARY POTKEWITZ RAISE $100 MILLION THROUGH AN INITIAL public offering Thursday—the first U.S. filings of offering plans for new con- company to issue an IPO since August. Its dominium sales in New York City—an bankers at Credit Suisse and Merrill Lynch had indicator of the number of units about to to cut the Phoenix-based company’s offering hit the market—plunged in October price three times in order to find enough compared with year-earlier levels, ac- buyers, and the stock, which is listed on cording to the latest data from the state Nasdaq, ended the week essentially flat. Few attorney general’s office. companies are expected to follow its lead any There were 30 offering plans filed for time soon. A story in the current issue of Crain’s new condo buildings in October, a 33% that went to press earlier last week incorrectly drop from the 45 filed during the same states that no companies have gone public since month last year. Aug. 8. Fewer offerings are being filed be- cause more and more residential devel- MORE THAN 25% OF THE 200 OFF-OFF- opers are pulling the plug on their build- BROADWAY THEATERS HAVE CLOSED IN THE ing projects in the face of shrinking past five years, according to a new study by construction loans and the glut of units the New York Innovative Theatre already on the market. Foundation. The closings, mostly in the heavily populated theater districts of midtown Grinding to a halt and the West Village, include the Perry Street “a lot of the residential jobs are stop- Theatre and actor Michael Imperioli’s Studio ping right now,” says Raymond buck ennis/chart: lindström bekka Dante. Most of the venues closed because of McGuire,managing director of the Con- rent increases, but in some cases, theaters tractors’ Association of Greater New same quarter a year ago. residential construction over the sum- weren’t offered the option to renew as their York, which counts the city’s largest The results are visible all across the mer. The scene is quite different now. spaces were turned into luxury-condo or builders among its members. city, as once-bustling construction sites “When you come off the Brooklyn office developments. After more than three years of double- have fallen ghostly quiet. Bridge into Boerum Hill, a lot of those digit growth in filings for new condos in Mr. McGuire estimates that until re- sites have come to a dead standstill,” says LEADERS OF THE RESTAURANT INDUSTRY ARE New York City, the market started its cently, there were 50 or so large residen- Matthew Kaplan, principal of Matthew ALREADY MAPPING OUT A STRATEGY TO BOOST slump in 2007, when sales applications tial projects under construction in Man- L. Kaplan Architects in Park Slope. business next year. Restaurant Week, a popular for both new construction and conver- hattan. He can list six that have been put semiannual promotion, is being extended in sion dropped by 20%.