20140929-NEWS--0001-NAT-CCI-CN_-- 9/26/2014 6:14 PM Page 1 POT OF GOLD Anticipation is high for state’s budding medical-marijuana biz CRAIN’S® PAGE 5 NEW YORK BUSINESS VOL. XXX, NO. 39 WWW.CRAINSNEWYORK.COM SEPTEMBER 29-OCTOBER 5, 2014 PRICE: $3.00 Aqueduct Looking Smart racino’s The next big thing in artificial intelligence isn’t called Watson growth BY MATTHEW FLAMM brain—a “cognitive” platform that firm Gartner calls “the next level up” slows could learn a job, not just search for from IBM’s Watson supercomputer In 1998, an independently wealthy programmed answers. and “a breakthrough innovation” that New York University doctoral student On Sept. 29, IPsoft—now a global signals “the end of outsourcing as we As Genting competes gave up his assistant professorship in company little known outside the know it.” math and founded a company to build for upstate license, it world of IT infrastructure services— The brainchild of IPsoft founder software that could mimic the human unveiled Amelia, which consulting See AMELIA on Page 35 looks to boost its Queens outpost BY LISA FICKENSCHER The jackpot at Resorts World Casino is a little leaner these days—though not for gamblers. The 36-month-old racino at Aque- duct Raceway in Queens has enjoyed THE BIG a run of record- GAMBLE breaking revenue and GENTING, double-digit annual CAESARS growth. But during SQUARE OFF the past year, its PAGE 6 growth has slowed, just as its owner, Malaysia-based Genting Americas, is hoping to be ap- proved by the state for a $1.5 billion luxury resort and casino in Tuxedo. Resorts World’s revenue this fiscal See RACINO on Page 36 Mayor’s housing surprise ONWARD, UPWARD: IPsoft founder Chetan Dube hopes his creation, Amelia, will Inclusionary zoning revolutionize business. will drop subsidies, not jack up mandates BY JOE ANUTA Mayor Bill de Blasio is not expected to require a massive increase in the per- centage of affordable housing in new buck ennis developments when he unveils his much-anticipated mandatory inclu- sionary housing proposal. Instead, his 39 administration will attempt to boost 5 PROFESSIONAL SERVICES the number of such units by asking de- velopers to build near current bench- REPORT Tax-shelter crackdown P. 16 marks without subsidies, freeing up LISTS Top law, accounting firms P. 13 those subsidies for other projects. When the policy is rolled out in a NEWSPAPER See HOUSING on Page 36 71486 01068 0 20140929-NEWS--0002-NAT-CCI-CN_-- 9/26/2014 6:08 PM Page 1 OLIGARCH CENTRAL: The new One57 EDITOR’S NOTE residential tower Walking dread FYICRAINSNEWYORK.COM Stand on a corner in California and the cars whiz by—until you place Pied-à-terre tax fever gives your foot in the crosswalk. Whoa, dude. Drivers slow to a stop and real estate industry chills beckon you to do your pedestrian he real estate industry last week swam thing. Place that foot in a crosswalk frantically against a tide of support for a tax in New York’s Central Park and, on pieds-à-terre valued at more than $5 well, woe, indeed: You could be Glenn Coleman T million, arguing it would idle the construction of struck dead by a cyclist reportedly luxury towers—and the union jobs that go with approaching 40 miles an hour and them—as well as hurt property values.Their concerns may be well founded, but may not be screaming,“Out of my way! Out of my way!” Clearly, enough to sink the idea. After all, the political risk of taxing the 1,556 co-ops and condos valued at Mayor Bill de Blasio’s Vision Zero traffic-fatality more than $5 million and owned by nonresidents who don’t vote in the city is pretty slim. Since 2008, initiative must do a number on the city’s two-wheel nonresidents have accounted for 30% of purchases in the Manhattan luxury market.That terrors in addition to slowing down the recklessly competition has pushed prices skyward.The tax could raise $665 million, according to the driven cars, taxis and trucks that do 99% of the proposal floated by the Fiscal Policy Institute. Whether it would make foreigners look to another pedestrian-killing on our streets. I often encounter global city to park their cash—and sometimes crash for the night—could depend on the property. gantlets of Tour de Francey-pants when I enter or exit Homes valued at $6 million would see a $5,000 tax increase, but starting at $10 million, property Hudson River Park.The signs in the middle of the owners would pay a $47,000 surcharge and 1.5% levy, going up to $370,000 and 4% for $25 park’s shared cycling and running trail couldn’t be Brad Hoylman clearer: Stop for pedestrians crossing the trail. Perhaps million homes. State Sen. ’s bill, expected to be introduced in Albany this week, offers a wrinkle: City residents with investment properties would also be hit by the tax. Even Mayor you too have been clipped by the sarcastic speed freak Bill de Blasio who yells,“I’m cycling here! I’m cycling here!” as he , who owns a million-dollar rental in Park Slope, may one day have to pony up.That pedals into the distance. Cyclists have been given is, unless the naysayers are right and property values nosedive. —jeremy smerd thousands of miles of city bike lanes. It’s time to learn TERROR ALERT.The city increased sub- dropped to 9.8% in August—the first how to use them. But enforcement isn’t enough. Our way security after Iraqi Prime Minis- time it fell below 10% since Decem- HOORAY! sidewalks, roads and bridges are overcrowded. New ter Haider al-Abadi claimed that in- ber 2008, according to data from the DEREK JETER delivered a game-winning Yorkers need more space. Maybe we should consider telligence led him to believe that ISIS state Labor Department. … SAKS single in his last Yankee Stadium at-bat in HEADS DOWNTOWN. the Bronx Bombers’ 6-5 win over the skyways. An NYU executive fancifully proposed in was targeting subways in the U.S. and Saks Fifth Baltimore Orioles last Thursday. France. U.S. officials (including Gov. Avenue will open an 85,000-square- Crain’s a few years back that the High Line’s success as Andrew Cuomo and Mayor Bill de foot department store in the Brook- a new public realm should be replicated with elevated Blasio) downplayed the concerns and field Place complex, its second Man- walkways along the spine of Manhattan, from Battery said there was no specific threat. … hattan location. The retailer will also HACK ATTACKS. JPMorgan Chase & open its first Off Fifth discount out- Park to 125th Street. While we’re at it, ban bikes on the Co. and other banks stepped up let store in New York in lower Man- Brooklyn Bridge, whose walkway 277 feet above the efforts to block suspicious credit-card hattan. Saks’ parent company, Hud- East River is dangerously crowded, and embrace traffic activity stemming from a Home son’s Bay Co., will consolidate into guru Sam Schwartz’s proposed tolled bicycle bridge. Depot Inc. data breach of 56 million 400,000 square feet at Brookfield bloomberg news JAIL FRAUD. New Yorkers need to chill out, but it would help if we credit cards. … Rikers Place. In exchange, it will receive $3 Island’s decline in violence was based million in tax credits from New York OY VEY! had a bit more space to chill in.The return on such on data falsified by the state and $9 million THE GROUNDHOG who predicted a long investments could be measured with improved real city’s Department of ‘The from a federal grant. winter this year died from internal injuries estate values, although the lives that skyways and bike Correction, which … TORY BURCH a week after falling from Mayor Bill de NAMES CO-CEO. Blasio’s grasp. The male hog was also a omitted hundreds of alternative … poseur: He was really a she. bridges would save should be dividend enough. inmate fights and Roger Farah, a long- other statistics, The is staying time Ralph Lauren New York Times un- home and executive, was hired THIS WEEK IN CRAIN’S covered.The city may by the fashion brand be slapped with a talking to to help with global IN THE BOROUGHS-------------------------- 3 civil-rights lawsuit, Diana about expansion. Ms. IN THE MARKETS----------------------------------4 forcing it to make Burch will remain changes. … LIGHT UP feelings’ chairman and co- SMALL BUSINESS ------------------------------5 THE BRONX. OnForce —Former Mayor Michael CEO of her name- ap images THE INSIDER -----------------------------------------------6 Solar is partnering Bloomberg, on his decision sake company, which with Bronx Commu- to return to work as head of generated more than students enrolled at the City Univer- BUSINESS PEOPLE ---------------------------7 nity College to create Bloomberg LP $1 billion in sales last sity of New York this fall, a 40% jump OPINION-------------------------------------------------------------8 a technology hub for year. … PUTTING THE from 2000. … THE LION KING SETS ALAIR TOWNSEND------------------------------9 emerging companies to create more BRAKES ON BIKES. A week after a RECORD. With $6.2 billion in gross jobs for locals, including 50 positions Connecticut mom was fatally struck ticket sales worldwide, the 17-year- GREG DAVID ------------------------------------------------9 in the next six months.The $7 million by a speeding bicyclist in Central old Disney musical took the crown REPORT-----------------------------------------------------------11 project,which requires state approval, Park, city Councilman Mark Levine from The Phantom of the Opera for the NEW YORK, NEW YORK REAL ESTATE-------------------------------------------21 will be established through the Start- called for a speed-limit reduction for most successful box-office total ever.