TOP STORIES REPORT Concrete demand BUSINESS OF LAW could harden into a How Bush has been construction crisis good for the ACLU PAGE 2 Plus: top firms ® PAGE 21 Financially pressed firms move to cash in on their leases with sublets VOL. XXII, NO. 44 WWW.NEWYORKBUSINESS.COM OCTOBER 30- NOVEMBER 5, 2006 PRICE: $3.00 PAGE 2 Steaming up the aisles at Duane Cooks push Reade with new line of sex aids alternative PAGE 3 Crain’s endorses Spitzer, Pirro and to fats ban Clinton on Nov. 7 ap images EDITORIAL, PAGE 10 ap images Restaurateurs will Top health officials clash on HIV use Board of Health testing; the GOP hearing to urge side of the story City Council to act THE INSIDER, PAGE 12 BY LISA FICKENSCHER the city’s restaurant industry hopes to take advantage of a turf war between the Bloomberg ad- ministration and the City Council to weaken a controversial plan that ap images bloomberg newsbloomberg would ban the use of artificial trans landov photo IN TROUBLE: Cleared specialists Kevin Fee, Donald Foley, Robert Scavone and Richard Volpe fats at eateries. OIL CANNED: Health chief Thomas Frieden (clockwise from top left) will probably be fined and could be barred from the industry. Restaurateurs will be out in appears to be taking a hard line on a ban. BUSINESS LIVES force today at a Board of Health HOTEL FAMILY AFFAIR hearing on the proposal, to both Live-iin general managers voice their opposition and suggest month to vote on whether to ratify enjoy the perks but at the that the measure be taken up by the the proposal. cost of privacy PAGE 43 city’s legislative body. They cite a “We understand that it’s a good Traders in limbo, multitude of objections to the thing to get rid of trans fat,” says measure, including the economic Louis Nunez, president of the La- hardships it would pose for small- tino Restaurant Association.“What AT DEADLINE despite acquittals er establishments, a shortage of al- See COOKS on Page 41 ternative oils and the difficulty of NATIONAL FINANCIAL PARTNERS making a switch by July 2007, the OPINION The media must start CORP. could be hurt by Eliot redemption on Oct. 6 when feder- proposed cutoff date. reporting the story right Page 11 Spitzer’s lawsuit alleging bid- Specialists cleared al prosecutors suddenly dropped The board will meet next rigging and anticompetitive of crimes can’t their case. Now, the trader who behavior in the life settlements used to take orders for blue-chip business. Previous probes have restart their careers stocks such as J.P. Morgan Chase already crimped NFP’s growth wants to return to work. (Crain’s, Oct. 16). An NFP amid crackdown “The government made a mis- unit called Advanced take and indicted an innocent At Condé Nast, it’s Settlements was named in five BY AARON ELSTEIN man,” says Mr. Foley’s attorney, of the 20 examples of Franklin Velie.“My client wants to fraudulent activity alleged in donald foley’s 17-year career as go back to the exchange.” print versus digital the New York state attorney a trader at the New York Stock Ex- Not so fast. While Mr. Foley general’s suit, which was filed change started to unravel a couple and three other traders have been last Thursday. UBS analysts of years ago. cleared of criminal wrongdoing, Magazines want believe that 4% of NFP’s In 2004, with a federal investi- they are still facing civil charges TRAFFIC JAM? revenue and earnings could be gation of illegal floor trading gain- from industry regulators for violat- more control over CondéNet’s Web destinations. “eliminated.” ing steam, he was fired by Bank of ing exchange rules. Indeed, Mr. online versions UNIQUE VISITORS America Corp. The next year, he Foley is confronting a formidable SITE (September 2006) THE WORLD SERIES HAS BEEN A was charged with brokering adversary in the NYSE, which is STRIKEOUT for Channel 5. 12,620 fraudulent trades and eager to demonstrate its regulato- BY MATTHEW FLAMM Epicurious.com 1,349,000 According to one media buyer, pocketing more than $310,000 in ry toughness to counter critics who Style.com 867,000 in recent weeks the local Fox illegal profits. say that it allowed the illegal trad- vogue magazine may be the epit- Concierge.com 698,000 station had been selling Mr. Foley—one of 15 traders ing to flourish in the first place. ome of chic, with its trend-defin- See AT DEADLINE on Page 2 indicted in 2005 in a wide-ranging “The traders have more trou- ing editor in chief Anna Wintour Men.Style.com* — crackdown—thought he had won bles ahead,” says David Robbins, a and its mammoth fall and spring *Falls below reporting cutoff of 340,000 unique visitors. Manhattan securities lawyer and issues that help make the title No. Source: Nielsen/NetRatings former compliance director at the 1 in the women’s fashion category. American Stock Exchange. “The Vogue’s online version, however, is stock exchange won’t be influ- another story. Ratings minimum reporting level enced by the outcome of the crim- As part of destination site of 340,000 unique visitors. ELECTRONIC EDITION inal cases.” Style.com, which includes content But neither Ms. Wintour nor The cases against Mr.Foley and from sister title W, the Vogue chan- Vogue Publisher Tom Florio is to See SPECIALISTS on Page 42nel falls below the Nielsen/Net See AT CONDÉ on Page 39 NEWSPAPER AT DEADLINE Continued from Page 1 announced plans to relocate advertising packages in downtown, has found a new anticipation of the New York home on Maiden Lane. ESDC Mets playing in the series—and agreed to acquire a of getting ratings “at least 50% condominium at 125 Maiden higher” than the dismal Lane—between Pearl and numbers posted in the first four Water streets—for $376 a games.That means the station square foot from Time Equities will provide make-goods to Inc., according to a broker advertisers that didn’t get the familiar with the deal. In return, numbers they expected. Time Equities agreed to acquire According to Nielsen Media the state agency’s office Research, the first four games condominium at 633 Third had an average household rating Ave., between East 40th and of 10.9. Fox 5 declined to East 41st streets. comment. BURDENSOME COMPLIANCE SPECULATION IS GROWING THAT PROCEDURES ARE sparking THE STATE’S hospital closing broker defections and sluggish commission chaired by asset growth at Smith Barney, investment banker Stephen Investment News reports in Berger will issue its report well today’s edition.The firm’s before the Dec. 1 deadline for broker head count fell slightly recommendations.The in the third quarter to 13,076 commission’s regional advisory brokers, from 13,414 at the committees must provide their beginning of the year, following final recommendations on Nov. the acquisition of Legg Mason’s 15, while the last public meeting brokerage operations. In the THE POUR FARM: Joseph of the full commission is set for third quarter, net client asset Ferrara says boosting Nov. 20. However, Executive flows were $2 billion, off 67% production of concrete should be easy. But Director David Sandman from the level in the year-earlier delivering it won’t be. strongly denies that the report period. In contrast, Merrill will be issued a moment before Lynch has added about 500 buck ennis its statutory date of Dec. 1. brokers this year. THE CITY’S ECONOMIC THE CITY DEPARTMENT OF DESIGN DEVELOPMENT CORP. hired AND CONSTRUCTION led all Diamond Management and agencies in change orders last Technology Consultants to year, according to the annual list Saving concrete jungle conduct a study that will help of the top 100 city contracts to New York decide whether it be published by CityLaw on should build a citywide Wi-Fi Nov. 6.The number and value Number of huge projects citywide threatens supply network.The Chicago-based of change orders during consulting firm will have four construction is one measure of months to compile data on how well a city agency manages BY ERIK ENGQUIST usage of and demand for high- its projects, CityLaw says.The speed Internet service in the five journal, which is published by concrete can be a builder’s best friend—and worst enemy. It can represent 60% of a boroughs. New York Law School, says project’s bulk, yet just 2% of its cost. It can add three skyscraper floors in a week. But when it orders increased the city’s doesn’t arrive at a construction site, it can stop billion-dollar projects on a dime. THE EMPIRE STATE DEVELOPMENT building costs by 6% in fiscal CORP., which earlier this year 2006. ■ The prospects of costly delays, soaring prices and even criminal activity loom as construction is about to begin a dozen giant projects, with only half that many big concrete plants to feed them. Ground Zero construction alone might eat up the current output of two plants. A Bronx water filtration project could commandeer a third, and a Queens sewage plant a fourth. THIS WEEK IN CRAIN’S Then there are the new Yankees and Mets stadiums,new tunnels under the Hudson and East VALERIE BLOCK ---------------------------11 rivers, a mammoth water tunnel, the Second Avenue subway, an expanded Javits convention See PRESERVING on Page 41 THE INSIDER------------------------------------12 WEEK IN REVIEW -----------------------14 NEIGHBORHOOD JOURNAL------------------------------------------15 Cashing in on midtown SMALL BUSINESS ------------------- 16 of space for whatever reason, it is a years and announced last month it REAL ESTATE DEALS--------------18 45 Companies market very opportunistic time,” says Paul would cut 8% of its U.S.