20120213-NEWS--0001-NAT-CCI-CN_-- 2/10/2012 8:23 PM Page 1 INSIDE REPORT TOP STORIES Housing’s flavor of the moment; Is Fashion Week CoStar’s largest becoming passé? leases of 2011 MICHAEL GROSS, PAGE 2 ® Page 13 NYC arts groups sink their shovels into the ground VOL. XXVIII, NO. 7 WWW.CRAINSNEWYORK.COM FEBRUARY 13-19, 2012 PRICE: $3.00 PAGE 2 Javits fans say not so fast, Guv EDC’s bigger. But is Shows, hotels weigh econ agency better? fight to save center PAGE 2 from wrecking ball Howard Lutnick’s latest reinvention BY LISA FICKENSCHER PAGE 3 Ever since Gov. Andrew Cuomo announced his plan last month to Knicks star a leading tear down the Jacob K. Javits Con- vention Center to unlock its real stock Lindicator estate for new development, long- newscom IN THE MARKETS, PAGE 4 / time users of the building and oth- er groups have been trying to fig- polaris / ure out whether to fight the plan. They were not consulted, they say, and feel blindsided by the proposal, which matthew mcdermott calls for a much larger conven- tion center to be built at the new Aqueduct racino in Queens and a smaller facility in BUSINESS LIVES AQUEDUCT JACKPOT! Manhattan to replace Javits. For now, they are adopting a GOTHAM GIGS wait-and-see approach. OKCupid’s chief Genting strikes gold with ing time, an energetic Motown band was setting up to “We have been waiting for the cherub slings his arrows perform for the afternoon while a steady stream of char- dust to settle,” said Britton Jones, all year long ter buses delivered throngs of people from Chinatown, president of Business Journals Inc., Queens casino. Just wait downtown Brooklyn and Long Island. one of the largest users of Javits, ● ANNE FISHER Make Some city dwellers,mostly older men with canes and producing 17 annual fashion and P. 25 for that convention center meetings more fun packed lunches in plastic bags, arrived via the A train. retail-focused shows there. “There ● MOVERS & SHAKERS They boarded free shuttle buses that brought them will be meetings and discussions Interior designer builds BY LISA FICKENSCHER across a vast parking lot to the front entrance of the ra- over the next few weeks in Albany her own Haus P. 26 cino—so named because it is connected to the Aque- with the people who will be over- ● GAEL GREENE Resorts World Casino in southeastern Queens was duct racetrack.Resorts World Casino tapped into a gold seeing these projects,” he added. Starr shines at new Caffè buzzing with activity on a recent Friday—and it was mine when it opened three months ago, attracting an The timing couldn’t be worse, Storico P. 27 only 11 a.m. With another 17 hours to go before clos- See AQUEDUCT on Page 22 See JAVITS on Page 23 INDEX WALL ST. PAYMASTERS NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _7 For some on Street, pay is up At major Wall Street banks, traders THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _8 and investment bankers are getting SMALL BUSINESS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 less, but retail brokers are getting more. Consider the 2011 numbers VIEWPOINT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 Up big-time. Why brokers are suddenly banks’ most valued players at Morgan Stanley: FOR THE RECORD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _19 ment bankers’ bonus pool by a bru- equal to 140% of the revenue gen- SHARE OF CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _20 BY AARON ELSTEIN tal 40%. Yet just a day earlier, the erated by brokers with large client REVENUES HOT JOBS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _25 money-losing Zurich-based giant accounts, a person familiar with the FOR 62% EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _25 Last week, UBS became the latest hired several stockbrokers from matter says. Merrill Lynch started BROKER BONUSES THE WEEK AHEAD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 bank to slash pay when it an- Merrill Lynch, dangling upfront the year by hiking pay for some of nounced it had shrunk its invest- bonuses equal to an eye-popping its best brokers by a third. Revenues: $13 billion 180% of their previous year’s pay. Yes,these are the same firms that “I’ve been in this business for 20 are also cutting pay. Goldman years and never seen bonuses like Sachs chopped average employee SHARE OF REVENUES 42% this,” marveled Alan Reed, a vice compensation by 15% last year; FOR president at recruiting firm Morgan Stanley, Deutsche Bank BANKER ELECTRONIC EDITION Michael King Associates. “Every- and Barclays capped cash bonuses at BONUSES one is offering big bucks.” about $125,000. Merrill’s owner, Revenues: $17 billion And so they are. Morgan Stan- Bank of America, told its invest- Source: Morgan Stanley NEWSPAPER ley is offering upfront bonuses See PAY GAP on Page 24 20120213-NEWS--0002,0003-NAT-CCI-CN_-- 2/10/2012 8:10 PM Page 1 COMMENTARY The EDC at 20: b It’s looking administration, the EDC has in- City’s econ development arm has creased its spending and clout and revamped its mission, moving from like Fashion revamped its subsidies strategy developing the physical infrastruc- ture of the city toward building up its underlying economy as well. Some observers say the agency is Weak, folks BY DANIEL MASSEY setting itself apart from the ham- handed methods and crude models s it churlish to say this during Fashion Week? In December,just a year after the city issued a request to gauge univer- of counterparts elsewhere. Fashion’s imagery has gotten hopelessly bor- sities’ interest in building a tech campus, Mayor Michael Bloomberg announced Cornell University and Technion-Israel Institute of Beyond stadiums ing—and it’s a shame. “Economic development in the My interest in fashion dates back to col- Technology would build a $2 billion campus on Roosevelt Island. U.S. is about stadium-building in lege, when I was inexplicably named one of Only two months later, New York University is on the verge of many places, or stealing businesses the best-dressed members of my class, but I never inking a pact for a second tech campus. with tax abatements,” said Bruce I Behind these deals has been the city’s Economic Development Katz, director of the Metropolitan thought of writing about style until the early 1980s, Policy Program at the Brookings In- when I was lured into its fantasy realm, like many Corp.—a powerful, quasi-governmental entity not subject to many stitute.“What New York City is do- of the restrictions that city agencies face. Under the Bloomberg ing with the applied sciences is a others,by ads in fashion mag- past few years, as surely as oli- azines.I’d noticed fashion be- garchs have taken over Saint- fore that, of Tropez and St. course. I recall a Barts, models vaguely fetishis- whose Slavic tic childhood in- looks scream terest in furrier “former Soviet and lingerie ads Union” have in The New York come to own Times Magazine fashion imagery. and the excite- And now, fash- ment of seeing ion’s compass is my first British swinging farther Vogue, back in the to the East: Sev- ’70s, when it was MICHAEL eral notable de- seriously kinky. GROSS signer brands, But I credit the from the venera- now-retired ble Valentino to Calvin Klein for luring me the trend-setting Marc Ja- under fashion’s tent. In my cobs, feature Asian models in first piece of fashion writing, their current campaigns. I likened his provocative ads This isn’t a fashion con- to terrorism:I don’t care if you spiracy—even if models of like me,Calvin seemed to say, African descent are still too so long as you notice me.