20120813-NEWS--0001-NAT-CCI-CN_-- 8/10/2012 7:35 PM Page 1 NICE WING TIPS, BOSS Execs who pilot the skies find flying addictive CRAIN’S® P. 21 NEW YORK BUSINESS VOL. XXVIII, NO. 33 WWW.CRAINSNEWYORK.COM AUGUST 13-19, 2012 PRICE: $3.00 Pop WELCOME TO WAVE HILL: The 28-acre garden and cultural center in Riverdale is among 7,000 acres of parkland in the Bronx—and a favorite destination for the borough’s new tourism Quiz! director, Olga Luz Tirado. Where in the world is tourism executive Olga Luz Tirado? buck ennis Marketing push in works to operators bypass the Bronx. Major publica- And that’s too bad. Because the Bronx South of France tions rarely include its cultural institutions in boasts an abundance of unique attractions, trade boro’s crime-addled their listings. Its biggest problem: lingering including 7,000 acres of bucolic parkland; perceptions that the Bronx is unsafe. more than 40 museums, theaters and gal- rep for golf, salsa vibe. You Only 10% of the record 51 million visi- leries; and its own Little Italy, otherwise Rio de Janeiro got a problem with that? tors who came to the Big Apple last year ven- known as Arthur Avenue. What’s more, tured to the Bronx, according to NYC & crime rates have fallen dramatically, accord- Company, the city’s tourism bureau. That ing to Police Department data. So why don’t BY LISA FICKENSCHER 5.1 million represents a gain of 8.3% since more people visit? Napa Valley 2007, but the increase is less robust than the “We are dealing with movies that make us Tourists planning trips to New York City citywide growth of 10.9%. In addition, the look menacing and newspaper articles that rarely put the Bronx at the top of their lists vast majority of the visitors went to the talk about marauding dogs and rough of places to visit—and no wonder. The bor- borough’s three most popular attractions: streets,” said Marlene Cintron, president of The Bronx ough has no full-service hotels and just a Yankee Stadium, the Bronx Zoo and the the Bronx Overall Economic Development handful of budget motels. The big tour-bus New York Botanical Garden. See BRONX on Page 19 FAIRWAY’S IPO HOT DIGGITY IMMOBILE APP Competitors are Nathan’s Hail a taxi by checking out famed stock smartphone? Why grocer’s plans to price up old city regs may NEWSPAPER reap millions P. 3 50% P. 4 get in the way P. 6 20120813-NEWS--0002-NAT-CCI-CN_-- 8/10/2012 7:56 PM Page 1 STATS AND THE CITY BAKED APPLE WITH NO ICE CREAM July may have ranked as the hottest on record for the U.S., but New Yorkers have been sweltering since June, driving up demand for everything from air conditioners to a quick ride out to the beach at Coney Island. FYICRAINSNEWYORK.COM 20% Rise in J&R’s sales of bladeless Dyson fans, versus a year ago British bank 1.3M down by Lawsky Visitors to city’s public pools, year to date he mayor of London and the governor of the 16M Bank of England were NYC beachgoers, year to date T just two of the many people 2.97 howling for Benjamin Lawsky’s June NYC rainfall (in inches), making it the head last week. ¶ The uproar Benjamin Lawsky second-driest June in 12 years came after the 41-year-old 14 superintendent of New York’s newsbloomberg Days with 90-degree-plus temps, YTD fledgling Department of Financial Services threatened to yank Standard Chartered Bank’s license to operate in the state, alleging that the British lender had been involved in a whopping quarter 12,836 MW of a billion dollars’ worth of banned transactions with Iranian banks (see In the Markets, page 4). Con Ed’s 2012 peak daily energy ¶ Even some U.S. regulators were reported to be wondering if Mr. Lawsky had misplaced his demand, set July 18 decimal point by two or even three places. Reuters reported that the U.S. Treasury and the Federal newscom Sources: J&R Electronics, NYC Parks Department, Reserve were “blindsided” by Mr. Lawsky’s actions. ¶ Meanwhile, some groused that the former National Oceanic and Atmospheric Administration, Consolidated Edison Inc. top aide to ex-New York Attorney General Andrew Cuomo seemed to be trodding on the GLOSSIES GO BEGGING regulatory turf of the current holder of that title, Eric Schneiderman. ¶ If time and further Magazine sales on newsstands are continuing to shrivel rapidly as investigation show that Mr. Lawsky is right about Standard Chartered, he’ll look like a bold more readers go online, or elsewhere. regulatory crusader. If he’s wrong, the damage could be sizable for both himself and his political 2H 2009 1H 2010 2H 2010 1H 2011 2H 2011 1H 2012 mentor. Already last week The Wall Street Journal ’s Simon Nixon theorized that Standard Chartered might simply be “collateral damage in an ambitious young official’s attempt to burnish his reputation.” The verdict likely granting requests for reductions in -5.6% won’t be in for weeks,but the first test street cleaning.Looks like it could be HOORAY! -7.3% will come Aug. 15, when Standard the green thing to do. … LIVING IT UP Chartered must defend its state AT WOOLWORTH. The top 30 floors of -9.1% -9.2% -10.0% -9.6% charter to Mr. Lawsky. Beyond that, downtown’s landmarked Woolworth the investigation will likely involve Building will be going condo. An in- % change year-over-year Source: Audit Bureau of Circulations multiple agencies and nations. vestment group purchased the upper Whatever. Mr. Lawsky’s backers say reaches of the 58-story building, ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY he’s ready. “Ben is a very smart guy,” once the world’s tallest. Given that one insider close to the superinten- the conversion is expected to cost NASA’S $2.5 BILLION MARS SHOT dent told Crain’s Insider. “He knows $150 million, the prices of the 40 worked, with the Curiosity rover beaming THIS WEEK IN CRAIN’S what he just did, and he’s not units that will hit the market in 2015 pictures home to prove it. shocked by the reaction.” … MEN IN will likely be far beyond the wildest BLUE ARE WATCHING. A new $40 mil- dreams of Frank W. Woolworth, IN THE BOROUGHS-------------------------- 3 OY VEY! lion system unveiled last week will who built his eponymous business on IN THE MARKETS----------------------------------4 give the New York Police Depart- nickels and dimes. … VERIZON’S ment an electronic leg up in its fight LABORED FUTURE. THE INSIDER -----------------------------------------------6 After a year of against crime and terrorism, accord- fruitless talks with employee unions, BUSINESS PEOPLE ---------------------------8 ing to Police Commissioner Ray- the chances of a strike being called CORPORATE LADDER --------------------9 mond Kelly. Developed with Mi- against Verizon are rising. An unoffi- crosoft Corp., the Domain cial deadline to reach a new contract OPINION --------------------------------------------------------10 Awareness System includes 3,000 was pushed back to this Wednesday. TWENTY JETS PLAYERS BRAWLED on GREG DAVID--------------------------------------------11 surveillance cameras. Those eyes on Not even federal mediators have been the sidelines during practice. Already the the streets will be seamlessly linked able to overcome differences between Green Machine seems to need a tune-up. REAL ESTATE DEALS------------------- 12 with NYPD databases in what the the two sides over health care costs FROM AROUND THE CITY----12 mayor called a “next century”system. and job security for 45,000 workers, readies to spin off the unit into a sep- George Orwell fans, on the other including 17,000 in New York state. arate company.And the Audit Bureau THE LIST --------------------------------------------------------- 15 hand, might say it all sounds more … MEDIA MADNESS. The New York of Circulations reported that single- CLASSIFIEDS -----------------------------------------17 like 1984. … CLEANER STREETS, Times Co. sold off information web- copy newsstand sales of magazines REPORT: SMALL BUSINESS DIRTIER AIR. The city’s alternate-side site About.com, once trumpeted as tumbled 9.6% in the first half of the NEW YORK, NEW YORK ---------- Web entrepreneurs like 21 parking rules may be bad for the en- the future of the company, for $270 year. … END OF STORY. Pfizer Inc. said Steven Asherman (left) are SOURCE LUNCH--------------------------------22 vironment. On scheduled street- million, 34% less than it paid in 2005. it’s dropping plans to develop an intra- finding that age is no barrier cleaning days, there is typically a 7% Meanwhile, Rupert Murdoch’s legal- venous formulation of bapineuzumab, OUT AND ABOUT ------------------------------23 when it comes to creating a upward spike in car usage, according ly challenged News Corp. posted a a drug expected to slow the progress of hot tech startup. P. 13 SNAPS--------------------------------------------------------------23 to a forthcoming study.It comes two $1.6 billion loss in the fourth quarter Alzheimer’s disease, after a second CORRECTIONS years after the City Council passed a after booking a $2.9 billion write- trial failure. —lauren elkies bill creating a framework for down on its publishing assets as it and andrew j. hawkins The Brooklyn Nets signed Deron Williams to a five-year contract this off-season. That figure was misstated in the Aug. 6 “Nuts for the Nets.” Nordstrom has agreed to buy a retail condo to house a seven-floor store at 225 W. 57th St. The address was misidentified in the Aug. 6 “Tenants step up to ownership.” STORIES TO WATCH THIS WEEK vol. xxviii, no. 33, august 13, 2012—Crain’s New York Business (issn 8756-789x) is published weekly, except for double issues the weeks of July Fourth, Labor Day and Christmas, by Crain Communications Inc., 711 Third Ave., New York, NY 10017.