20111107-NEWS--0001-NAT-CCI-CN_-- 11/4/2011 9:17 PM Page 1 INSIDE NEW LIST! TOP STORIES NY AREA’S LARGEST Amazon Publishing ENGINEERING catches 3rd big fish, FIRMS Deepak Chopra ® PAGE 17 NEW YORK, NEW YORK, P. 6 PRECARIOUSVOL. XXVII, NO. 45 WWW.CRAINSNEWYORK.COM PENINSULANOVEMBER 7-13, 2011 PRICE: $3.00 Five Boro Bike Tour: nies controlled by Faye Zakheim, hospital through affiliates of Bankrupt hospital’s owner of a for-profit agency called Brooklyn-based Revival Home Talk about your rescue plan involves Revival Home Health Care,pledged Health Care, is married to Steven economic cycles $27 million to bail out the Far Rock- Zakheim, a controversial health controversial player away, Queens, institution. A thou- services entrepreneur who has had PAGE 2 sand jobs were saved and a hospital run-ins with law enforcement offi- rescued—a near miracle, given the cials and regulators over the years. Queens Theatre, BY BARBARA BENSON large number of financially chal- Mr. Zakheim is considered so toxic lenged medical centers in the city. by state Department of Health of- STEVEN AND FAYE ZAKHEIM: His past the new hot spot for legal troubles led state officials to extract a Teetering on the brink of closure, But Peninsula’s resurrection has ficials, they required him to sign an promise he’d stay away from his wife’s core Broadway tryouts Peninsula Hospital Center won a re- come at a price. Ms. Zakheim, affidavit in June 2005 that stated he business. But he’s all over the Peninsula PAGE 3 prieve in September when compa- whose company now operates the See PRECARIOUS on Page 24 Hospital deal her company is steering. War vets returning to a battle for jobs PAGE 3 BUSINESS LIVES IN THE BLACK: GOTHAM GIGS Alain Kaloyeros’ vision Princess for a day P. 25 and a decade of taxpayer money are ● ANNE FISHER Want finally paying off. healthier employees? Offer prizes P. 25 ● MOVERS & SHAKERS Barclays Center architect designs more growth for his firm P. 26 SOLVING THE UPSTATE JOBS RIDDLE: PART II ● GAEL GREENE Taste of Prague at Hospoda P. 27 We built it, INDEX THE INSIDER _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ and they’re coming 8 molly cagwin molly NEIGHBORHOOD JOURNAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _9 VIEWPOINT _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _10 Layoffs in the early 1990s Albany is the new BY JEREMY SMERD changed all that. IBM’s vulnerabil- OPINION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _11 REVIVING UPSTATE REAL ESTATE DEALS ity startled employees and signaled _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _14 Austin. Really. How on the SMALL BUSINESS REPORT Warren Montgomery joined IBM a crisis in the state’s high-tech econ- _ _ _ _ _ _ _ _ _ _ _ _ _ _15 a $1 billion SUNY out of college 30 years ago, expect- nanotech and casino industries omy. Mr. Montgomery jumped CLASSIFIEDS _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _18 complex lured high- ing the lifelong employment and complete a two-part series on ship, embarking on a nearly two- EXECUTIVE MOVES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _25 blue-chip perks that others in his upstate job creation. Part I decade odyssey that has mirrored THE WEEK AHEAD looked at how natural gas _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _27 tech jobs upstate Hudson Valley family had enjoyed: the volatile growth of global com- weekends at the company’s country exploration could help reverse a puting and New York’s struggle to club, car loans made easy,and those decades-long decline. Upstate reclaim its perch in the nation’s silver spoons. New Yorkers today earn nearly high-tech economy. “When your kid was born, you’d 10% less than the average As jobs and skilled workers left get a silver spoon,” he said. “It was American. Crain’s examines the state,so did Mr.Montgomery— as if the kid was born with a silver different options to move the for Europe, then for Silicon Valley spoon in his mouth because he was employment needle. and, as chip manufacturing moved born to an IBMer. Why would you north, to Oregon’s Silicon Forest. want to go anywhere else?” See HIGH-TECH on Page 12 NEWSPAPER 20111107-NEWS--0002,0003-NAT-CCI-CN_-- 11/4/2011 9:21 PM Page 1 IN BRIEF Bike New York sets new course EMPIRE BLUE CROSS BLUE SHIELD IS CUTTING THE NUMBER OF HEALTH INSURANCE plans it offers small companies to six from 13 as of April 1. It has also requested premium rate for its annual five-borough tour increases from New York state regulators that, if approved, could mean hikes in the remaining plans that range from zero to as high as 29%. Tiny nonprofit hopes ROLLING: The last Five Boro The insurer said years of successive losses in its Bike Tour sold out in 24 hours. small-group-coverage business plus continuing to turn nation’s largest increases in medical costs had forced its hand. However, Empire stresses that it has “no cycling event into the intentions to withdraw from the New York next NYC Marathon small group market.” Aside from shrinking its product offerings, Empire is slashing its financial incentives for brokers who sell its BY LISA FICKENSCHER products. The TD Bank Five Boro Bike Tour, the THE NEW TAVERN ON THE GREEN WILL BE A largest bicycling event in the country, has CASUAL RESTAURANT WITH AN OUTDOOR become so popular that for the first time in café and bar—and anyone interested in running its 34-year history,riders will have to enter it will get a chance to make a bid next month. a lottery to participate in next year’s tour. According to a Parks Department memo That isn’t the only change cyclists can obtained by Crain’s, the city “intends to issue a expect. significant request for proposal” to operate the Bike New York,which produces the an- restaurant as a casual eatery.The RFP will be nual tour, has been studying the ING New issued in December.The memo was sent to the York City Marathon’s model, picking up a five community boards that border Central few other ideas that will attract more out- Park as well as to Manhattan Borough of-town participants and make the event President Scott Stringer. Parks officials will be more impactful.To that end,the organiza- seeking public comments on the plans. n tion is producing its first ever bike expo and even developing a bike tour on the tunity to broaden our horizons and to ways, setting us up for 2012.” Caribbean island of Jamaica. A tiny get our brand out there,” said board The new lottery system to enter the BY THE NUMBERS nonprofit with 12 staffers, Bike member Cyndi Steiner. event will be promoted locally, nationally New York is riding the wave of en- Mr. Podziba has made big strides and abroad with the help of the city’s Weekly shift of the city’s economy thusiasm for the sport—in part in that direction. Since he arrived, he tourism bureau, NYC & Company, and buck ennis PASS THE DRAMAMINE Wild swings in stock sparked by the city,which has added has added nine sponsors, including the tour’s title sponsor,TD Bank.The idea prices, a huge Wall Street bankruptcy and more than 250 miles of bike lanes Zipcar, Eastern Mountain Sports is to attract more foreigners who will stay turmoil in Europe took their toll on everybody’s since 2006 and is set to launch a and Energy Kitchen,for a total of in hotels and spend money here. confidence—and stomach. 10,000-bike share program 11. He changed the organiza- “We want to have a larger economic im- next summer. tion’s nonprofit status to pact on the city,” said Mr. Podziba, adding 5M 72 8 501(c)3 to allow it to raise that any locals who are shut out will be New leader funds, and has more than guaranteed a spot in the following year’s HOURS DAYS that MF GLOBAL’S The big push started doubled Bike New York’s tour if they serve as a volunteer during the of mobile phone Kim Kardashian RANK ‘We want to game Angry Birds and Kris among two years ago when Bike annual budget to $4.7 mil- event.