Wall Street’s rookies socked by first crisis for real

Well is dryfor realestatedeals

BY TOM FREDRICKSON

the credit crunch is paralyzingthe New York real estate market.

In the past few weeks, financingfor almost all large commercial andresidential projects in the city hasdried up.

As a result, some property de-velopers and investors are beingforced to abandon deals and arelosing hundreds of thousands ofdollars in deposits. Those who areclosing deals are being forced todouble their down payments andpay significantly higher interestrates.

“The blood on the streetsproved that things go down as wellas up,” says Geoffrey Rice, a seniordirector at CB Richard Ellis/Cap-ital Markets. “The markets have

BY AARON ELSTEIN

jean-philippe aractingi hasnever seen anything like this.

Markets plunge, then soar, thenplunge again, not in days or weeks,but in minutes and even seconds.In recent weeks, three of WallStreet’s longtime titans—BearStearns, Goldman Sachs andKohlberg Kravis Roberts—haveeach seen their reputations sullied.Meanwhile, armies of professionaland amateur investors are boltingfor the exits.

For scrubs like Mr. Aractingi, a25-year-old associate trader atBNP Paribas in midtown, theworld has suddenly gone haywire,and his once-satisfying days at theoffice have become gruelingmarathons.

“It’s crazy,” says Mr. Aractingi,who notes that when the marketsgo into free fall, all conversationwith colleagues ceases because no

one has the time or energy to hearabout other people’s problems.“There is so much stress,” he says.

All across Wall Street, analysts,traders and bankers in their 20s

find themselves facing somethingentirely new to them—a full-blown market crisis.With no expe-rience of their own to fall back on,

Wall Street’s rookiessocked by first crisis

BY ERIK ENGQUIST

new york’s delegation in theHouse, cashing in on Democraticcontrol of Congress, has amassed$1.1 billion in federal budget pork

midway through Washington’s an-nual appropriations process.

The total disclosed so far—10%of the national figure, even thoughNew York accounts for just 6% ofthe U.S. population—shows De-mocrats wielding their clout in theirfirst year of majority rule since 1994.

Local Democrats, reflecting ontheir new ability to snag so-calledearmarks, say that the difference ispalpable.

“Right off the bat, we noticedthat things began to happen,” saysRep. José Serrano,D-Bronx,who inJanuary became chairman of an ap-propriations subcommittee, a perchthat lets him directly allocate funds.

“We recently announced $200million for the Second Avenue sub-way,” Mr. Serrano says. “I have totell you, it was less of a pull than [itwould have been] being in the mi-

nority party.” He also stuck $50million into a supplemental budgetbill to replace other federal moneythat New York lost when it failed to

buy new voting machines.“The chairmen of the appropri-

ations committees are so powerful,

NY Democrats enjoy $1B helping of pork

Digital efforts fallshort at magazinegiant Time Inc.PAGE 2

Chinese firms liston Nasdaq forprestige andaccess to cashPAGE 3

Rate talks betweenhospitals, insurersgetting tensePAGE 3

Business owners inQueens call forprobe of chronicflooding problemsPAGE 25

Labor in NYC: UFTadds members;chart ranks city’slargest unionsUNION REPORT, PAGE 19

A REPORT ABOUT THEAVAILABILITY OF BROADBANDservice in New York City hasbeen delayed. Last year,Chicago-based DiamondManagement & TechnologyConsultants wascommissioned by the city’sEconomic DevelopmentCorp. to conduct the study,which was supposed to becompleted this summer. It isnow scheduled for the fall.TheEDC, which declined todiscuss what Diamond hasturned up so far, asked the firmto expand its research.

THE FOOD BANK FOR NEW YORKCITY has acquiredFoodChange Inc., a 27-year-old nonprofit that providesemergency meals and financialand nutrition education to

07148601068

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See REAL ESTATE on Page 8See WALL STREET on Page 8

See NY DEMS on Page 9

See AT DEADLINE on Page 2

TOP STORIES

AT DEADLINE

Twenty-somethingfinanciers strugglein teeth of the rout;job fears mounting

New generationlearns power ofmajority; actionsoon shifts to Senate

Transactions stall,buyers walk awayas lenders pull plug

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DIVIDING SPOILS:Rep. Charles Rangeland Sen. HillaryClinton are in aposition to help fellowlocal Democrats.

VOL. XXIII, NO. 34 WWW.NEWYORKBUSINESS.COM AUGUST 20-26, 2007 PRICE: $3.00

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BUSINESS LIVES

Textbookanswer toNY jobs—Greg Davidon Columbia’sexpansionplansPage 13

BUSINESS LIVESGOING TO EXTREMESDaredevil execs aretaking risks; employersare wary PAGE 31

MMAARRKKEETT CCHHAAOOSS HHIITTSS HHOOMMEE

IN THE MARKETS Mortgage fears pinch E*Trade Page 4 EDITORIAL Local leaders must brace for economic fallout Page 12

SURGE IN FRESH FACESbe

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ELECTRONIC EDITION

nb34p01.qxp 8/17/2007 6:39 PM Page 1

BY MATTHEW FLAMM

time magazine continues to lose ad pages despiteits radical re-engineering of five months ago, andFortune, Money and Business 2.0 have suffereddouble-digit advertising slides in the first half. Butthe decline of some of Time Inc.’s core printproperties is an old story at the company.

A more troubling issue is that even with trafficincreasing at key Web sites and an all-hands-on-deck approach to reinventing itself as amultiplatform content company, adrevenue at the No. 1 magazinepublisher grew only 1% in thesecond quarter. For a business underpressure, that’s not good enough.

Time Inc. Chief Executive AnnMoore has staked her legacy ontransforming the enterprise intoa 21st century publisher andmaking it the profit machinethat it was when she took thereins five years ago.

But Time Inc. got a late startout of the digital gate. Ms. Moore’scritics complain that she wastedresources launching the ill-fated Lifenewspaper supplement and the low-margin women’s title All You when sheshould have been focused on the Web.

Her defenders argue that she was

low-income city residents.Theacquisition boosts Food Bank inits efforts to broaden itsofferings to include nutritionservices and will shore upFoodChange, which had a $2.5million deficit last year.Thecombined nonprofit will have anoperating budget of about $30million and will be run by FoodBank president Lucy Cabrera.

LIMEWIRE, A MUSIC FILE-SHARING SITE THAT IS BEING suedby the recording industry, willstart selling music. Last week,the Manhattan-based companysaid it will offer users monthlysubscriptions or the chance tobuy individual tunes. IRISDistribution and NettwerkProductions are the first labelsto allow LimeWire to sell theirmusic catalogs. Last year, majorrecord labels sued LimeWire foralleged copyright infringementand are seeking $150,000 forevery song that LimeWiredistributed.The suit is ongoing.

THE PROPERTY AT 446 W. 17THST., OWNED BY The CovenantHouse, was recently bought byhotelier Vikram Chatwal, whowill convert the former roomingfacility for homeless childreninto a boutique hotel calledDream Downtown.Restaurateur Greg Brier willcreate a 24-hour hotel café and a4,000-square-foot nightclub onthe roof of the 15-story building.The partners teamed up onother projects, including highlyrated Amalia restaurant, whichopened this year next to Mr.

Chatwal’s Dream Hotel on West55th Street. Dream Downtownis expected to open in fall 2008.

THE AMERICAN BAR ASSOCIATIONLAST WEEK DENOUNCEDmandatory retirement policiesfor law firm partners.The413,000-member organizationurged firms nationwide to scrapthe age-limiting rules, whichcommonly enforce retirementages of 65 or 70, on the basisthat they violate agediscrimination laws.Approximately 57% of law firmswith more than 100 lawyershave a mandatory retirementage, according to the New YorkState Bar Association.

FOR THE FIRST TIME IN ITSHISTORY, MACY’S IN HeraldSquare will turn over all 39 of itsfamous storefront windows toone product line: the MarthaStewart Collection.The line ofhousewares will be launched onSept 10.The window displays,which are already beinginstalled, will stay in place fortwo weeks and feature awningsin Martha Stewart’s signatureblue instead of Macy’straditional green.

PACE UNIVERSITY IS FACINGMORE LABOR HEAT, this timefrom the New York State UnitedTeachers union. On Thursday,members rallied at the Somerset,N.J., offices of Pace ChairmanAniello Bianco to demand fairwages and better workingconditions for staff and adjunctfaculty. Pace officials wereunavailable for comment. �

BY ELISABETH BUTLER CORDOVA

fao schwarz, barraged by inquiriesfrom shoppers alarmed by the recentspate of recalls of toys made in Chi-na, is trying to assuage customers’fears before the holiday shoppingseason starts in the fall. The NewYork-based retailer is adding a fea-ture to its Web site to let parentssearch for toys by country of originand is creating in-store displays oftoys made in certain countries.

“People are asking questions,both in our stores and at our call cen-

ter,” says Edward Schmults, chiefexecutive of FAO. “They’re lookingfor non-China-production toys.”The Web search feature is slated tolaunch in September,and executivesare designing floor plans for thestore displays now.

Industry observers approved ofFAO’s move.

Made in China“what fao is doing is answeringconsumers’ concerns and investingin infrastructure to do it,” saysChristopher Byrne, an industryconsultant and head of Byrne Com-munications.“Consumers buy on anemotion,not on a rational decision.”

Still, as in most other toy stores,a vast majority of the productson FAO’s shelves are made in Chi-na. Retailers usually have little con-trol over vendors’ manufacturing

practices.None of FAO’s products were af-

fected by Mattel Inc.’s most recentrecall, which included 18.6 milliontoys worldwide. However, the storedid pull some of its Thomas theTank Engine toys during an earlierscare this summer when more than20 items in the Thomas & Friendsline were found to have lead-paintdecoration.

Before the recalls, the year wasshaping up nicely for toy retailers,who have had to fight Apple’s iPodsand Nintendo’s Wiis for marketshare. Retail toy sales increased 3%in the first six months of 2007, tomore than $8 billion, comparedwith $7.8 billion in the first half of2006, according to retail trendtracker NPD Group.

COMMENTS? [email protected]

Digitally challenged Time Inc. past prime?

FAO using Web to calmbuyers about toy recalls

Despite e-push, publisher isn’t growing fast enough

GREG DAVID ------------------------------------13THE INSIDER------------------------------------14WEEK IN REVIEW-----------------------16REAL ESTATE DEALS--------------18REPORT: UNIONS ----------------------19SMALL BUSINESS------------------- 25NEIGHBORHOOD

JOURNAL------------------------------------------25CLASSIFIEDS ----------------------------------26THE WEEKS AHEAD ----------------29BUSINESS LIVES------------------------31

CORPORATE LADDER-------33LIVING LARGE----------------------------34EXECUTIVE MOVES--------------34BOB LAPE---------------------------------------35

THIS WEEK IN CRAIN’S

Store IDs products’country of origin;concerns about fallshopping season

AT DEADLINE

vol. xxiii, no. 34, august 20, 2007—Crain’s New York Business (issn 8756-789x) is publishedweekly by Crain Communications Inc., 711 Third Ave., New York, NY 10017. Periodicalspostage paid at New York, N.Y. and additional mailing offices. Postmaster: Send addresschanges to: Crain’s New York Business, Circulation Department, 1155 Gratiot Avenue, Detroit,MI 48207-2912. for subscriber service: Call (888) 909-9111. Fax (313) 446-6777. $3.00 acopy, $59.79 one year, $109.79 two years. (GST No. 13676-0444-RT) ©Entire contentscopyright 2007 by Crain Communications Inc. All rights reserved.

Continued from Page 1

33

35

CORRECTIONS

An item in the Aug. 13 Real Estate Deals column about the Fulton Street Transit Center wasmistakenly accompanied by an artist’s rendering of the World Trade Center Transportation Hub.

2 | Crain’s New York Business | August 20, 2007

ANN MOORE’S tenureas chief executive of

Time Inc. has beenmarked by an up-and-down quarterlyperformance.

See DIGITALLY on Page 10

getty images

CNYB 08-20-07 A 2 8/17/2007 6:09 PM Page 1

BY SAMANTHA MARSHALL

the nasdaq’s efforts to attractmore Chinese business are payingoff. So far this year, 12 mainlandcompanies have listed on the ex-change, and several more are in thepipeline—well ahead of its ninelistings for all of 2006.The Nasdaqnow boasts 46 Chinese companies ,with a total market capitalization ofmore than $40 billion.

If the trend continues, ViceChairman Michael Oxley said re-cently on a visit to China, the coun-try could displace Israel as the ex-change’s largest source of non-U.S.listings.

“Nasdaq is definitely the desti-nation of choice for these compa-nies,” says Darren Ofsink, a partnerin Guzov Ofsink. The Manhattanlaw firm has seen its number of Chi-nese clients rise 50% since 2005.

The trend demonstrates NewYork’s continued appeal as a globalfinancial center, despite tankingmarkets and fierce competitionfrom exchanges in Singapore,Hong Kong and London. Chinesechief executives recognize that alisting here gives them more ofwhat they need: liquidity, a diverseinvestor base and the legitimacythat comes with meeting Sarbanes-Oxley’s tough requirements.

The Nasdaq has worked hard toattract the Chinese in the past twoyears (See Crain’s, April 3, 2006),with officials racking up plenty offrequent-flier miles. The exchangehas Chinese-speaking staff inShanghai and Beijing and is wait-ing for approval to open a Beijingoffice. As a result, it has more list-ings than either the New YorkStock Exchange (28) or the Amer-ican Stock Exchange (10).

Most of the Chinese companieslooking to raise capital here aremidsize; they find the Nasdaq moreaccessible than the NYSE but moreprestigious than Amex. The Nas-daq is winning against internation-al competition partly because itrepresents a broader range of indus-tries, while the London Stock Ex-change’s Alternative InvestmentMarket tends to be regarded as acommodities specialist.Capital alsoflows relatively freely in NewYork—the recent credit crunchnotwithstanding.

Global market“chinese companies recognizethat listing in this market is the pre-mier foundation for attracting notjust U.S. capital, but global capital,”

says John Heilshorn, a partner atLippert/Heilshorn, an independ-ent investor relations firm.

Outside forces have also drivenChinese companies to the Nasdaq.Many institutional investors re-quire a listing on the exchange.Andmainland firms hope that listing ina market known for tough regula-tions and stringent oversight willgive them credibility with bothglobal and domestic consumers.The recent recalls on Chineseproducts have reinforced that.

Chinese companies even use aNasdaq listing as a marketing tool.On a flight between Shanghai andBeijing two months ago, Mr. Of-sink noticed a video ad for a hotelchain that ended with the tagline,“We are listed on Nasdaq.”

“In China there’s a lot of prestigeassociated with a listing on Nas-daq,”says Mr.Ofsink,who has sev-eral mainland clients looking to listhere.

Momentum is building as suc-cess stories filter back to China.Web-based businesses looking forexpansion capital to take advantageof China’s exploding broadbandmarket have done particularly well.Online gaming company PerfectWorld raised $106 million in itsinitial public offering on Nasdaqlast month.

Diverse offeringsthe 2008 olympics in Beijing isalso bringing booming tourismservice firms like Home Inns &Hotels Management Inc. to mar-ket. Manufacturers also do well. ANasdaq listing in June by Spread-trum Communications,which pro-duces electronic components,raised $100.3 million.

Of course, Chinese companiesdon’t always succeed here.

Some businesses, after initiallydoing well, struggle to keep in-vestors interested and consequent-ly lose share value. Operations arefar away, and few mainland CEOshave the savvy and communicationskills to stay on the radar.

Others flame out because theylack the resources to keep up withU.S.regulatory demands.For exam-ple, Bodisen Biotech, a Wall Streetdarling when it debuted on theAmex in 2005, was delisted in Mayamid allegations of securities fraud.

Nevertheless, lawyers and audi-tors helping to prepare Chinesecompanies to go public say the paceof listings will most likely holdsteady for at least the next five years,even as global markets teeter.

“We don’t expect it to slow downat this point,” says Stefanie Starna,a partner in Deloitte Touche’s Chi-na practice, which has handled sixU.S. listings in the past 12 monthsand has eight more on tap.


BIG PUSH: Theexchange hasworked hardto get Chinesecompanies.

BY GALE SCOTT

negotiations between hospitalsand insurance companies over re-imbursement rates for patient carehave grown unusually acrimoniousthis year.

“New York’s a boiling pot,” saysPaul Keckley, executive director ofthe Deloitte Center for Health So-lutions in Washington, D.C., anindependent health policy re-

search group. “We’re seeing a peri-od of intense animosity betweenthe plans and the hospitals.”

The clash comesas both sides arefeeling squeezedfinancially. Manyhospitals, facingcuts in governmentMedicaid andMedicare funding,are trying to closethe gap by extract-ing larger reim-bursements fromtheir patients’ in-surers. “We see it asa cost-shifting issue,” says aspokesman for the Healthcare As-sociation of New York State. “The

bills have to be paid. This shiftsthem to the private sector.”

But insurance executives arepushing back, say-ing they are facingsimilarly intensepressure fromtheir customers tohold the line onpremium increas-es.Those converg-ing trends are set-ting the stage formore tough nego-tiations in comingmonths as morecontracts—usual-

ly three-year pacts—come up forrenewal.

The negotiations are going on

behind closed doors, but severalparticipants who requested ano-nymity spoke about them.

Executives at two large and fi-nancially sound hospital systemssay they were able to wrest 10% andhigher increases in payments frommost of the commercial insuranceplans, but only after a fight.

Like most hospitals, they say,their systems’ costs for salaries,medical goods and drugs rose about5% over the past year. With cutsfrom the government, their systemsneed at least 10% more from thehealth plans—and larger hikes ifthey are to invest in improvementsand new services.

“We did OK. But double-digit

Hospitals, insurers lock horns

China on the board

Hospitals are trying toextract largerpayments

Nasdaq outdoesothers in listings,seen by Chineseas gateway to capital

See HOSPITALS on Page 8

Both sides under financial pressure; bigger systems in stronger position

August 20, 2007 | Crain’s New York Business | 3

BY THE NUMBERSSICK HOSPITALSRUN UP THE BILLfor three new york cityhospitals set to officially emergefrom bankruptcy next month,reorganization has not comecheaply. Saint Vincent CatholicMedical Centers, The BrooklynHospital Center and ParkwayHospital, which filed for bank-ruptcy in 2005, each turned tosmall armies of lawyers, consul-tants and other professionals forhelp. Total cost: $88.4 million.

THE BROOKLYN HOSPITALCENTER

Hospital totals and fivelargest expenditures,

through June, in millions.

$69.3Weil Gotshal & Manges $15.8

Alvarez & Marsal $11.7

Speltz & Weis $8.8

Huron Consulting Group $8.0

Houlihan Lokey $3.7

$6.6DLA Piper $2.7

BDO Seidman $2.4

J.H. Cohn $0.9

Thelen Reid Brown Raysman& Steiner $0.4

John Maher Consulting $0.1

PARKWAY HOSPITAL

$12.5Stroock & Stroock & Lavan $3.9

J.H. Cohn $3.7

Otterbourg Steindler Houston& Rosen $2.3

Alvarez & Marsal $1.7

Epiq Systems $0.2

Source: Bankruptcy court filings

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SAINT VINCENT CATHOLICMEDICAL CENTERS

NAME IN LIGHTSFive most recent Nasdaq listings from China.

Company Listing date Market cap, in millionsPerfect World Co. July 26 $1,204China Fire & Security Group July 16 $228Spreadtrum Communications Inc. June 27 $640ShengdaTech Inc. May 21 $318China Sunergy Co. May 17 $498

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CNYB 08-20-07 A 3 8/17/2007 6:10 PM Page 1

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HIGHLIGHTS REEL

➡ TheBloomberg/Crain’s NewYork Index

fell 0.8%, toend theweek at364. TheS&P 500Index fell

0.5%,closing at

1446.

-0.8%

STOCKS TO WATCH by Erik Ipsen

SINKERS5-DAY 1-MONTH 3-MONTH CLOSING

% CHANGE % CHANGE % CHANGE PRICE

Sotheby’s -15.0% -27.2% -16.1% $37.74

Take-Two Interactive -14.5% -40.6% -35.0% $12.25

NYMEX -10.2% -15.3% -4.7% $118.66

McGraw-Hill -9.1% -23.5% -29.9% $49.14

Cognizant Technolgy -9.0% -11.3% -2.4% $74.95

RISERS5-DAY 1-MONTH 3-MONTH CLOSING

% CHANGE % CHANGE % CHANGE PRICE

Arrow Electronic +9.4% +0.4% -4.7% $39.69

MBIA Inc. +8.7% +6.2% -8.4% $63.60

Schering-Plough +8.4% -8.2% -9.9% $29.56

Aéropostale +7.9% -17.4% -25.8% $34.63

Bear Stearns +7.3% -15.5% -20.4% $118.20

Mounting fears that the credit crisiswill push interest rates and officevacancies up and rents down istaking a heavy toll on Vornado, ownerof millions of square feet of New Yorkoffice space. Shares of the nation’ssecond-largest real estate investmenttrust have fallen 25% in the past sixmonths. On a happier note, the firmannounced recently that it had nettedmore than $200 million on a big beton McDonald’s shares.

Foot Locker has developed a nasty limp. In May, the shoe seller announced a70% drop in quarterly earnings. It is expected to top that this week, posting itsfirst quarterly loss in years—15 cents a share—the result of price cuts to movemerchandise in its 4,000 stores. True, the retailer recently said it was seekinga private equity buyout, but these days, who cares? Even news last week of a12-cent payout failed to pull the shares out of their three-month, 30% swoon.

When investors start stampeding forthe exits, winners and losers alike gettrampled savagely andindiscriminately. Phillips-Van Heusenis a classic case of such nonsense.The nation’s largest shirtmaker isexpected to post its 14th consecutivedouble-digit profit gain this week. Lastmonth, PVH announced that its debthad been upgraded to investment-grade. Despite all that, the shares aredown 8% in the past month.

Vornado fattens up on burgers and fries;too bad about commercial real estate

BY TOM FREDRICKSON

E*trade has long made farmore money from mortgagesthan it makes on the low-coststock trading business forwhich it is known. In recent

weeks, that dependency has come back tohaunt the company with a vengeance, asinvestors have run screaming from anycompany with exposure to the suddenlytoxic mortgage market.

Last week, with even the nation’slargest mortgage lender, CountrywideFinancial, briefly on the ropes, the 15%five-day drop in E*Trade’s shares hardlycame as a surprise. But bold investorswould be wise to peer through all thesmoke and take note that after a 38% sell-off in the last month, E*Trade representsan appealingly solid bargain.

Sure, vast swaths of the residential realestate market are a mess, but E*Trade hasa lot of room for error with its hugelyprofitable method of gathering ac-counts—and clients’ assets—online. Inthe second quarter, the Manhattan-basedcompany had $414 million in net income

and a cash cushion against loan losses of$30 million.

“Even if it tripled its loan-loss provi-sions,that wouldn’t puta huge dent in its netincome,” says PatrickO’Shaughnessy,an an-alyst at Morningstar.

Even thoughE*Trade was likenedin a column in TheWall Street Journal lastweek to a “mortgageREIT disguised as anonline broker,” thecompany is reallymore akin to a largesavings bank stuffedwith piles of customerdeposits and relativelysafe mortgages. Butunlike a bank,E*Trade buys most ofthem from others. It’sunlikely to have itsfunders run for thehills. Nearly two-thirds of them are really consumers hold-ing checking and savings accounts. Andcustomers’ $27 billion in deposits are in-sured by the FDIC.

The company’s next-largest fundingsource is $13.5 billion in repurchaseagreements—short-term funding instru-ments—with a group of banks with which

E*Trade has long-term relationships,notes Mr. O’Shaughnessy. Even if itsbanks ended their repurchase agreements,

E*Trade still has a $10billion credit with theFederal Home LoanBank Board.

Last week,E*Tradesought to reassure in-vestors about the qual-ity of all its mortgagesvia a 20-page break-down of its holdings.The biggest questionmark in the mortgagemarket these days con-cerns mortgages withhigh loan-to-value ra-tios. E*Trade notedthat all of its loans withat least an 80% loan-to-value ratio carrymortgage insurance.The company’s $12.4billion in home equityloans are less secure.However, 74% of

home equity borrowers have very highcredit scores.

E*Trade is expected to earn $1.62 pershare this year, up 13% from 2006. Ana-lysts forecast revenues to rise 11%, to$2.7 billion.


E*Trade hit by fearsof mortgage meltdownStable deposits, federalguarantees make firm’sshares look oversold

Market cap $5.8 billion

Projected 2008 P/E 7.2

Total debt $22 billion


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NEW YORK,NEW YORK

Early scorefor Boomer no one knows if legions of NewYork radio listeners will tune intoBoomer andCarton in theMorning, thenew radio showthat will fill theold Don Imus sloton WFAN,starting Sept. 4. Butadvertisers are already bettingthey will.

From the moment lastweek that CBS Radioannounced that ex-Bengalsquarterback Boomer Esiasonand New Jersey radiopersonality Craig Cartonwould be settling in at thesports station, advertisersstarted calling.

“[The show] has beenvery well- received,” saysWFAN GeneralManager ChuckBortnick. “We werecontacted by anumber ofadvertisers.”

Radio insiderssay that advertisers willbe happy to have consistency inthe morning drive-time slot afterfour months of fill-in hosts. Somealso think Mr. Esiason will make agood pitchman for their products.

“There were a lot of advertiserswho wouldn’t do ‘live reads’ withImus because he was a littledifficult to work with,” says Mark

Lefkowitz, media director atFurman Roth Advertising.“People have the perceptionthat Boomer will be mucheasier.”

YogurtsellerbreaksNY ice the frozen yogurtwars continue to

heat up the city asone of the largest

purveyors in the worldarrives here from abroad.

Korea’s Red Mango, whichhas 140 stores in its

homeland, will open threeshops here by October, in

Flushing, Queens, the theaterdistrict and the Village.The

company is seeking morelocations through

brokerage firm BrandedConcept Development.

The new entrant will fight forcustomers with Pinkberry, whicharrived from Los Angeles lastyear, and smaller rival Yolato,which runs two Manhattan storesand has two more coming inSeptember. One of them will be

the chain’s new headquarters.Red Mango claims its product

is the only frozen yogurt thatmerits certification by theNational Yogurt Association,because it has more active culturesin its brew. It launched its U.S.attack in Los Angeles and LasVegas last month.

“Our goal is to do for yogurtwhat Starbucks did for coffee andwhat Jamba Juice did forsmoothies,” says Chief ExecutiveDan Kim.

Breathe channelsfemale listenerswith the digital age causingagita for traditional radiooperators, Clear ChannelCommunications is trying to givelisteners what they want on theiriPods and HD radios.Thecompany’s format lab has hatcheddozens of channels, includingcomedic Joke Joke and Nascar-driven Race Day.

One of its newest additions,Breathe, is geared toward womenand features a talk show led byWLTW personality ValerieSmaldone, the voice of midday.Theprerecorded show, Blank Canvas,can be heard on WKCI’s HDstation in New Haven, Conn. andincludes interviews with notableslike Suze Orman, Virginia Madsen,Cyndi Lauper and Kenny Loggins.

Neither Clear Channel norMs. Smaldone would commentabout Breathe, which is still inbeta.The channel’s launch may bedelayed because GreenStoneMedia, which was contributingprogramming, has shut down.GreenStone produced RadioRitas, Lisa Birnbach and othershows for women.

Contributors: Lisa Fickenscher, MatthewFlamm, Miriam Kreinin Souccar

Chinese artwork up for auction

America’s largestcollector of Chinesecontemporary art,

Howard Farber, is selling aportion of his historiccollection this fall.Thegroup will contain themost important Chinesecontemporary works everto come to market.

Forty-four works—known as China Avant-Garde:The Farber Collection—will be auctioned off atPhillips de Pury & Co. in London on Oct. 13. Included isWang Guangyi’s Coca-Cola, the most reproduced Chinesecontemporary painting.

Mr. Farber, a former New York real estate investor, startedbuying Chinese contemporary art with his wife, Patricia, inthe mid-1990s, long before the market got hot. Much of thecollection is stored in a warehouse, because the couple can’tfit it all into their two homes.

This past June, Mr. Farber took a Zeng Fanzhi piece,bought for $12,000, to auction. Famed adman CharlesSaatchi nabbed it for $1.7 million. After that, Mr. Farberdecided to sell more of his stash.

“In 1995, when I started buying these works, I had no ideathat this market would pop during my lifetime,” he says.

edited by Valerie Block

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they are seeking advice from indus-try veterans and keeping their headsdown. They are trying to stay fo-cused and not worry about theirbonuses—and jobs.

“This is a big wake-up call for alot of young people,” says NicholasColas, research director at securitiesfirm BNY Jaywalk and a veteran of20 years on Wall Street.

Horn of plentyuntil now, most of the Street’syoungest employees have knownnothing but boundless prosperity.Over the last four years,Wall Streetfirms have coined nearly $100 bil-lion in pretax profits and haveshowered an unprecedented $76billion in bonuses on their NewYork employees alone. In the peri-od, 25,000 financial jobs have been

added here, according to the Secu-rities Industry and Financial Mar-kets Association.

Among those fresh recruitsstands Stoyan Panayotov, an equityderivatives analyst at WachoviaCapital Markets in Manhattan.The28-year-old Bulgaria-born bankersays these days he’s paying “at leasttwice as much” attention to whatev-er news crosses the Bloomberg ma-chine on his desk and the monitorstuned to CNBC that hang from theceiling in his midtown office.

When the news gets disturb-ing—like Thursday’s momentary344-point drop in the Dow JonesIndustrial Average—he turns to hismanager seated nearby.

“He doesn’t panic,” Mr. Panay-otov says. “He’s a nice guy, but morethan that he keeps his cool.”

Other Wall Street rookies are

seeking out an even deeper fix fortheir stress.

“In times like this, my conversa-tions are about dealing with anxietyand getting defensive instead of set-ting goals and maximizing capital,”says Ari Kiev, a psychologist at alarge hedge fund and author ofTrading to Win: The Psychology ofMastering the Markets. “Less experi-enced traders are more panickyabout the market and yet more san-guine.They feel the pain,but unfor-tunately, most don’t learn from theirexperiences like the older ones do.”

At the offices of BNY Jaywalk,Mr. Colas says that he tries to steeryoung traders around him awayfrom the classic rookie mistake ofselling their best-performingstocks and holding on to their los-ers in the hopes that they will even-tually recover.

“I spend a lot of time coaching[employees] on how to avoid losingbehavior,” he says.

Worries about their own finan-cial futures make it even harder forthe rookies to cope. Already, someare starting to ratchet down theirspending plans.

Mr. Panayotov had planned tofund much of the purchase of anapartment in Bulgaria using thisyear’s bonus. Now, he’s reassessingthose plans in light of his fear of asharply reduced year-end check.

Summer freezerumors of a sudden chill in the jobmarket are also making the rounds.Michael Collins,who completed hisM.B.A. this month at FordhamUniversity, says a recruiter recentlytold him that the largest investmentbanks have instituted a hiring

freeze. Meanwhile, executive re-cruiter Mitchell Feldman warnsthat as many as 20% of positions inonce-hot areas like mortgage trad-ing could be eliminated in the nextsix months.

“Some of my colleagues arewondering whether it is time forthem to start searching for a newjob,” says David Cienfuegos, 27,who earned his M.B.A. from PaceUniversity in 2004 and is now headof investments at London-basedhedge fund Frontier Capital Man-agement.

BNP Paribas’ Mr. Aractingi hashit upon a different sort of solutionto the anxieties caused by gyratingmarkets and rumors of layoffs.Afterwork, the Paris native sheds hisbusiness suit and puts on his boxingshorts and gloves at Gleason’s Gymin Brooklyn.

“You’ve got to have a release atnight,” he says.


Wall Street’s rookies rocked by first crisisContinued from Page 1

just changed.”The credit crunch results from

the meltdown in subprime residen-tial loans, which has quashed in-vestor interest in any type of real es-tate securities. Wall Street banksissue most large loans, which theypackage into securities and sell toinvestors. In recent weeks, growingconcern about bad real estate loanshas brought that activity to a virtualstandstill.

With the residential real estatemarket looking increasingly over-built, interest has been particularlyweak in financing new condomini-um developments anywhere exceptin prime Manhattan locations.

Deals on hold“condo developments in fringelocations are soft,” says Dan Fasulo,managing director at Real CapitalAnalytics.

With the securitization pipelinefor all sorts of projects closed, 37commercial deals in Manhattan col-

lectively worth $9.5billion remain un-funded, according toReal Capital Analyt-ics. They include$1.29 billion to ac-quire the Park Av-enue Atrium officetower; $1.2 billionfor the ManhattanHouse apartmentcomplex; and about$53 million to buy anindustrial propertyat 511 W. 21st St.,demolish it and putup a hotel. Thesetransactions may stillbe done, however.

In the past month, such WallStreet firms as Goldman Sachs,Lehman Brothers and Bear Stearns,as well as money-center banks likeCitigroup and J.P. Morgan Chase,have drastically reduced the numberof deals they are willing to finance.

“We are finding it almost impos-sible to get a real quote or anything

that will stick,” saysJames Murphy,exec-utive managing di-rector, New Yorkmetropolitan region,at real estate broker-age GVA Williams.

Deposits at riskseveral sourcessay they know of cas-es in which investorsare losing depositsbecause they can’tfind financing. Thechief hurdle most ofthem failed to clearwas the additionalequity that lenders

are requiring. Buyers could losemany millions of dollars in the nextseveral weeks as the 30- and 60-dayclosing deadlines—typical in NewYork—arrive.

One Brooklyn investor who bor-rows on Wall Street says that in re-cent weeks he has walked away fromacquiring about eight office build-

ing and shopping centers collective-ly worth $150 million.

One of those deals required a$500,000 deposit,which is now lost.The buyer thought he had locked inan interest-only mortgage at 6%,buthis lender changed the terms, mak-ing the loan 7% and requiringmonthly principal payments. Themonthly cash outlay for the latterloan would have been 37% higherthan that for the former, the investorsays. “I would have ended up mak-ing no money.”

About the only transactionsmoving ahead are smaller ones fi-nanced by savings banks and insur-ers; those lenders will not sell mort-gages in the secondary market buthold them in their own portfolios.

In the past two weeks, New YorkLife has begun processing $200 mil-lion of commercial real estate loansnationally.Manhattan-based Amal-gamated Bank, which caps its mort-gages at about $25 million, is hiringcommercial lenders and aims to in-crease its commercial loan portfolioto $1 billion from $600 million.

“We view the current disruptionin the marketplace as a short- andintermediate-term opportunity,”

says Amalgamated Chief ExecutiveDerrick Cephas.

Wall Street is altering terms onthe few loans it is completing.Lenders cite contract provisions thatallow such revisions in response to“material adverse changes”—name-ly, the freeze-up in the debt markets.The result is that interest rates oncommercial mortgages in thepipeline are now a full percentagepoint higher than 10-year Treasurynotes. Lenders are also demandingequity contributions of 30% or more,compared with only 10% or 15% be-fore the credit crunch.

With so much uncertainty, somesellers are lowering prices to helpmake deals happen. Mr. Murphy atGVA Williams says prices for officebuildings under contract for $100million are being slashed by up to 6%.

“Prices are down 5% to 10% onall purchases,” says Ira Zlotowitz,president of Eastern Union Fund-ing, a Brooklyn-based commercialmortgage brokerage.“No one thinksprices are going to go up.”

COMMENTS? [email protected] [email protected] reporting by Theresa Agovino.

Real estate lending evaporatesContinued from Page 1

increases from the plans appear to bea thing of the past,”says the chief ex-ecutive at one Manhattan system.He says his system’s negotiationswith one major insurer took morethan a year. “The sessions were end-less, and we still didn’t get all weneeded.”

Smaller hospitals that are alreadyfacing cuts in Medicare and Medic-aid, declining admissions and otherfinancial issues will probably havean even tougher time wresting bigincreases. Some of those hospitalsmay go under, observers say.

“We’re expecting to see morefailures there,” as insurers balk atkeeping them afloat, says ShellieStoddard,a health insurance analystat Standard & Poor’s.

The president of one majorhealth plan says his company has

kept 2007 contract increases to be-tween 5% and 10%.But he adds thattime may be running out for somesmall facilities, as insurers becomeless willing to support them.

Questionable operations“we’re propping up about fivesmall, financially troubled hospitalsin the downstate region,” he says.“But at some point you have to ques-tion whether they should continueto operate [independently].”

The health insurance industry isfacing its own pressures as well.

S&P recently downgraded themanaged care industry’s outlook to“stable” from “positive” because “thesector isn’t as strong as it used to be,”says Ms. Stoddard. She notes thatmany insurers recently limited therate of premium increases for largeemployers to about 7% this year,

compared with an average of 10% inrecent years. She adds that the costsavings from the sweeping consoli-dation in the insurance industry arebeginning to wane. The number ofcarriers operating in New York hasdwindled to a handful of majorcompanies, from more than 100plans in just the past decade.

The plans will try to recoup whatthey couldn’t get in premiums byforcing hospitals to accept lower in-creases, says Liz Sweeney, an S&Pnonprofit hospitals specialist.

While the two sides seem to befar apart on the issue of reimburse-ment, more battles loom as insurerspush for programs that could givethem more control over how hospi-tals deliver care.

In New York City, both AetnaInc. and WellPoint Inc., the parentcompany of Empire Blue Cross

Blue Shield, have set up experimen-tal pay-for-performance programs.The plans offer bonuses to hospitalsthat meet specific patient care goals,such as computerizing order-entrysystems and giving patients appro-priate drugs in a timely fashion.

Cost is too highhospitals and doctors tend to bewary, saying the investment it takesto meet the plans’ requirements maycost more than the hospitals couldget in bonuses. “It doesn’t cut costsin the short term, and it also worksbetter among the well-heeled,” saysDaniel Sisto, president of the statehealth care association.

But Aetna executive Mike Hud-son, who is in charge of the sectionthat contracts with providers, seesthe concept as a good start in solv-ing the nation’s health care delivery

problems.“It helps control costs and pro-

vides better care,” he says. “We arelearning lessons on what works be-cause we feel we have to be part ofthe solution.”


Hospitals, insurers lock horns over ratesContinued from Page 3


CONDO under construction.

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we’re called cardinals,” says Mr.Ser-rano, whose panel controls fundingfor a variety of agencies and com-missions, from the Internal Rev-enue Service to the account thatpays for White House parties. “Icould cut Cheney’s cigars out if Iwanted to,” he says.

The vice president’s stogies arenot in jeopardy,but the point is clear:Democrats now control the dollars.(New York’s final tally won’t beknown until the fall, and exact com-parisons to previous years are impos-sible because sources of earmarkswere secret.)

Mr. Serrano and another “cardi-nal,”Nita Lowey of Westchester,alsolend a hand to other state Democrats.

“We can go to the decision mak-ers,and they want to help us,not hurtus,”says Amy Rutkin,chief of staff forRep. Jerrold Nadler, D-Manhattan.

Democratic power centerfrom 2000 to 2005, New Yorkranked between 43rd and 46th infederal pork per capita, according tononpartisan group Citizens AgainstGovernment Waste. But whenCongress changed hands at the startof 2007, the landscape was trans-formed for the state’s 23-Democratdelegation in the House—the sec-ond-largest, behind California’s.

Many critics blast congressionalearmarks, which totaled $32 billionin fiscal 2006, as bad public policy. Inresponse, House Democratic leadersare moving to reduce the chamber’searmarks by half but will maintainthe practice of awarding 60% of ear-mark funds to majority-party mem-bers.Democrats may end up with lessmoney than in the past, but they willget 50% more than Republicans.

That bodes well for the city, as 12of its 13 representatives are Demo-crats.Lone Republican Vito Fossel-la of Staten Island did not even re-quest earmarks. (He cites unclearethics rules—not the 67% cut.)

Most of the action so far has beenin the House.But it will move to theSenate next month, and New York’stwo senators are looking for spoils.When the bill establishing the de-fense-spending framework camethrough the Armed Services Com-mittee, on which Sen. Hillary Clin-ton sits, she stuffed it with $462 mil-lion in New York projects,accordingto her own press releases.

“She was one of the top earmark-ers in the defense authorizationbill,” says Steve Ellis, vice presidentof Taxpayers for Common Sense, abudget watchdog group.

Some of the budget items trum-peted by Ms. Clinton—such as$347.9 million for Fort Drum in far

upstate New York—were actuallyrequested by the Bush administra-tion and simply authorized by hercommittee.But Taxpayers for Com-mon Sense has found that 48 of 309disclosed Senate earmarks in thatbill were requested by either Ms.Clinton or Sen. Charles Schumer.

Senate: next battlegroundnew york has not fared as well inthe Senate as it has in the House,however. An analysis of data com-piled by the taxpayers group showsthat the state is poised to get only 3%of the $27.2 billion in earmarks inthe first seven Senate appropria-tions bills. But the low figure is notunexpected. New York typically re-ceives little in most of those bills—such as the one that funds interiorand environmental projects—be-cause it lacks swaths of federal land,massive federal dams and the like.

A much greater bonanza for NewYork could be several years away,when the next omnibus transporta-tion bill is written. The state, whichhas five Democrats on the HouseTransportation and InfrastructureCommittee, including Mr. Nadler,will be positioned to snare large sumsto build rail tunnels and bridges.Even bigger amounts could flow toNew York if its members succeed inchanging formulas for funding fed-

eral programs such as Medicaid.In the meantime, they’re enjoy-

ing appropriations season. Mr. Ser-rano notes that funding for the Se-curities and Exchange Commission

goes through his subcommittee. “Iget the feeling I’ll be ringing the bellat the NYSE a few times,” he says.


NY Dems get big helping of porkContinued from Page 1


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THEIR OWN SPECIAL INTERESTSSelected earmarks in House appropriations bills.

Source: Taxpayers for Common Sense

$15 millionIntrepidFoundationRep. CarolynMaloney, D-Manhattan

$2 millionCharles B.Rangel Centerfor PublicServiceRep. CharlesRangel,D-Manhattan

$2 millionNew SchoolUniversityGreen BuildingRep. JerroldNadler,D-Manhattan

$1.75 millionReconstructionof Route 6Rep. John Hall,D-Beacon

$1.3 millionOnondagaCountycommunicationsprojectRep. Jim Walsh,R-Syracuse

$1 millionTown of Bethelsewer extensionRep. MauriceHinchey,D-Kingston

$990,000CormorantcontrolRep. Jim Walsh,R-Syracuse

$231,000Phoenix House’sdrug-freeworkplaceinitiativesRep. AnthonyWeiner,D-Queens

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hamstrung by parent companyTime Warner’s decision to giveAOL control of Time Inc.’s Websites, a relationship that has beenunwinding for the past two years.

Either way, the publisher is stillpaying the price.

“Time Inc. has yet to find a cen-tral digital strategy for itself,” saysAlan Schanzer,managing partner ofdigital media planning firm MEC:interaction.

He says that People.com missedthe chance to own the entertain-ment news category. It ranks sec-ond in unique visitors after gossipupstart TMZ. He adds thatTime.com faces competition frommyriad other news and informa-tion sites. And CNNMoney.comcombines four different businessmagazine brands—Fortune, Mon-ey, Fortune Small Business and Busi-ness 2.0—which, he argues, havelittle to do with each other.

Ms. Moore declined to be inter-viewed, but a Time Inc. spokes-woman responds that Time.com isgrowing rapidly, that People.comowns its category in terms of viewerengagement, and that CNNMoney.com’s related brands amass a hugeaudience. That site’s net revenue isup 68% this year. SI.com is anothersuccess, adding 18% to the bottom

line this year at theSports Illustratedbrand.Traffic across allof the publisher’s U.S.Web sites now averages20 million unique visi-tors a month.

“That’s more thanour five nearest com-petitors in magazinepublishing combined,” aspokeswoman writes inan e-mail.

An upswingtime inc. executives alsoargue that the most recentquarter shows a turnaround.Thoughrevenue was flat at $1.3 billion, op-erating income before depreciationand amortization grew 12% to $302million—the first quarter of double-digit growth since 2005—with helpfrom lower restructuring charges.Digital ad revenue, for the secondquarter in a row,has more than madeup for the decline in print ad rev-enue. “We’re growing again,” says aspokeswoman.

Some observers are impressedwith Time Inc.’s progress. “TimeInc. has been as aggressive as anycompany—or more aggressive—atstabilizing print brands and diversi-fying in digital,” says Reed Phillips,a managing partner at investment

banking firm DeSilva & Phillips.Others maintain that the publish-

er hasn’t been aggressive enough.Unlike most of its privately heldcompetitors,Time Inc.faces pressure

from analystsand investors.Some of them sayit is neither astrategic fit withinTime Warner nora growth business,and should be soldoff.

Speculationabout Time Inc.’sfuture has been fu-eled lately by talk ofsuccession plans atTime Warner. Ana-lysts consider heirapparent Chief Op-

erating Officer Jeffrey Bewkesmore open to spinning off divisionsthan Chief Executive Richard Par-sons, whose contract expires nextMay. That assessment has sparkedrumblings about Ms. Moore,whose contract runs through 2009.

She has been unequivocal aboutstaying to its end and has talkedabout planning for a successor.

Insiders believe that Mr.Bewkes will need to deal withproblems at AOL before he gets toTime Inc., Time Warner’s smallestdivision.

A Time Warner spokesmanvoices support for the division.“Time Inc. is making good prog-ress,” he says.

But it doesn’t bode well for thepublisher that Ms. Moore’s tenurehas been marked by an up-and-down quarterly performance, incontrast to that of her predecessor,Don Logan. Under Mr. Logan, thecompany posted 41 consecutivequarters of profit growth.

The roaring ’90smr. logan had the advantages of abooming ad market, big-ticket ac-quisitions—and Ms. Moore. Aspresident of People from 1993 to2001, she consolidated the title’shold on popular culture and createdjuggernaut franchises Real Simpleand InStyle.

Critics say that her accomplish-ments on the digital side have beentoo little, too late. “Management issimply not getting the job done fastenough,” insists Pali Research me-dia analyst Richard Greenfield in ane-mail.

In the rapidly changing medialandscape, the mighty Time Inc.may have to get used to loomingless large.

“Are they at the point wherethey’re a must-buy?” asks DavidSmith, chief executive of media-buying firm Mediasmith Inc.,which places clients’ ads withTime.com and CNNMoney.com.“No. But they’re folks we’ve got togive serious consideration to, and,for them, that’s huge progress.”


Digitally challenged Time Inc. past its prime?Continued from Page 2


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THOMPSON WANTSTO GET FUNDING RIGHT

the august 13 editorial,“Real infrastructuresolutions,” missed the markon several points withrespect to my position onfunding for mass transit.

First, I have no objec-tion to a rational policy forincreasing MTA fares and tollswhen such increases are trulyneeded.The point of the reportthat my office issued [recently]was to call attention to New YorkCity’s and New York state’s prac-tice of reducing, eliminating orcapping funding programs for theMTA, which has cost the agencyas much as $645 million annually.The practices hurt NYC Transit aswell as Metro-North, the LongIsland Rail Road and the down-state suburban bus systems. Crain’sshould champion this equity issuefor downstate New York.

Second, I certainly recognizethe need to provide adequatecapital funding to NYC Transit for

critical infrastructuremaintenance, as well as forsuch expansion projects asthe 2nd Avenue subwayand a third bus depot inStaten Island.

In February, my officeissued a report on thestatus of NYC Transit’sspending on State of GoodRepair capital needs. We

highlighted how present rates ofspending will not bring criticalcomponents of the subway and bussystem into good repair foranother 10 to 20 years, yet theMTA and the state Legislaturehave allocated a smaller percentageof capital repair funds to NYCTransit in recent years than wereallocated in the 1980s.

That’s why I have endorsed theidea of congestion-pricing feeswith some modifications todistribute the burden more fairlybetween city and suburban drivers.As the Mayor has proposed, thismoney should be segregated andused for transportation capitalneeds.

william c. thompson jr.Comptroller

New York City

NO DESSERT FORGARGIULO’S FANi am very disappointed in BobLape’s two-star review of one ofBrooklyn’s finest restaurants,Gargiulo’s ( June 25). AlthoughMr. Lape praised the menu,service and quality, his rating fellshort of my numerous experiences.Gargiulo’s 100-year history ofserving the community at such ahigh level should have been ratedmore respectfully, regardless of thedesserts and wine list.

Bravo, Gargiulo’s!

jody giordano

ARCHITECTURENOT FIT FOR DOGScrain’s aug. 6 article “Theregoes the neighborhood,” about theUpper West Side, should haveincluded that we like to walk ourdogs and actually converse withthe other owners about pettraining. It’s quite the social thing.

The piece mirrors myperception of this area, which I’velived in since 1988. I, too, look outmy windows and can only see thehorrible architecture of the Extellbuildings. Shame on the architectsfor designing such eyesores!

steve smith

With all due respect to guruJim Cramer, no one knowswhether the financial crisis willend the long-running prosperityon Wall Street. History tells us,however, that the turmoil posesgreat risks for the New York

economy and that both Mayor Michael Bloomberg andGov. Eliot Spitzer should move now to prepare for trouble.

The 20th anniversary of the October 1987 market crash isaround the corner. After the initial shock of that event, theconventional wisdom was that the city would be able toweather the storm.True, Wall Street quickly began layoffsbut paid bonuses for that year. Overall employment rose thatyear and held its own over most of the next two years.

Because many local economic indicators are little morethan educated guesses, few observers understood that anenormous increase in government hiring was holding up thejob numbers. Private sector retrenchment was actuallyaccelerating, a fact that wasn’t evident until much later.When tax revenues began to shrink, unprepared city andstate officials faced yawning budget deficits.They had nochoice but to institute their own cutbacks. In October 1989,the city began a free fall in which it lost 329,000 jobs.

The pessimists, led by Mr. Cramer, see a perfect storm.The mortgage debacle will be followed by defaults on manyother kinds of debt. Layoffs on Wall Street will begin inearnest within months, bonuses will be eliminated to payseverance and consumers will stop spending because theirhomes are suddenly worth much less than they thought.

The optimists note that similar fears have gripped the

markets several times in the past two decades without suchdire consequences. As the cliché goes, the stock market haspredicted 10 of the past three recessions. Bonuses will besubstantial—even if not as high as those for 2006—becausesecurities firms made so much money in the first half.Employers are adding jobs in many industries, withespecially big gains in retailing, construction andentertainment—as well as Wall Street.

New York can’t afford to wait to determine which side isright. A decline in the real estate market will quickly pinchrevenues from transaction taxes, amounting to some $2 billion

for the city in recentyears. Income taxrevenues will plunge ifWall Street tanks.

The impact would beseen first at the statelevel, where a budgetthat increased spendingby 9% is precariouslybalanced. Mr. Spitzershould move quickly to

impose a hiring freeze, delay the pork-barrel spendingapproved last year and identify other possible cuts.

Mr. Bloomberg’s more cautious fiscal approach gives himmore room to maneuver.The recently adopted budget has$4 billion set aside, which could be used to fill a gap. But anysignificant recession would result in much larger revenuedeclines, and taking similar steps would allow the mayor tofulfill his pledge not to leave his successor with the kind offiscal mess he inherited.

Comptroller clear on transit funds

Preparing for market fallout

The 20thanniversary ofthe 1987 crashis 2 months away

LETTERS TO THE EDITOR

V I E W P O I N T

THE COMPTROLLER

WHAT’S COMING UP IN CRAIN’S?Health

carereport

Aug. 27

Realestate reportSept. 3

Smallbusinessreport

Sept. 10


editor in chief Rance Crainpublisher Jill R. Kaplan

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Carmen Fleetwood, Robert Hordtcolumnist Alair Townsendsenior reporters Aaron Elstein,

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restaurant critic Bob Lapeart director Steven Krupinskideputy art directors Carolyn McClain,

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PUBLISHED BY CRAIN COMMUNICATIONS INC.chairman Keith E. Crainpresident Rance Crainsecretary Merrilee Craintreasurer Mary Kay Crainexecutive vp, operations William Morrowsenior vp, group publisher Gloria Scobygroup vp, technology, circulation,

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founder G.D. Crain Jr. (1885-1973)chairman Mrs. G.D. Crain Jr. (1911-1996)

CNYB 08-20-07 A 12 8/16/2007 7:28 PM Page 1

No fact is more cen-tral to the decision thatwill be made in the nextfew months on whetherto allow Columbia Uni-versity to build a newcampus in West Harlemthat will double itsspace. It is nothing lessthan a decision to em-brace the future or thepast.

Of course, there aremany legitimate con-cerns about Columbia’sproposal, including whether the de-velopment is too dense, how it inte-grates with the neighborhood and

whether the school isprepared to cushion theimpact with a commu-nity benefits agree-ment. What is beyonddispute is the impactthe project will have onthe city. To understandits importance, an eco-nomics lesson is use-ful—especially the con-cept that not allindustries are equal.

Historically, NewYork became rich from

manufacturing. Consumers fromelsewhere in the country, indeed theworld, sent their hard-earned mon-

ey to New York to buy the goodsmade in the city. The balance-of-trade surplus is what made the cityrich.

Today, Wall Street is the majorcollector of other people’s money.Corporate bigwigs and averageworkers from all over the globe paysecurities firms to invest their funds,arrange mergers and finance theirfactories and homes. The valueplaced on the intellectual capital onWall Street is so high that it hasmade the industry the most prof-itable in the world.

By contrast, sectors like retailingor health care are sustained by localresidents, which means they recyclethe money already in the economy.There’s nothing wrong with this,but it just doesn’t make the city asprosperous.

Like Wall Street, universities arebuilt on using other people’s money.Parents from around the countrypay to send their children to Colum-bia and NYU. Colleges like St.John’s or Fordham, which attractstudents closer to home, draw mon-ey from the region, not just the city.These schools also bring in hugesums in philanthropy and researchdollars.

Meanwhile, in a twist of fate,manufacturing has become anotherindustry supported by New Yorkresidents.Because the city is such anexpensive place to operate, the onlyproducts made here are those thatrequire interaction with the buyer,such as custom furniture.

So opponents of Columbia’splan, some who seek to create amanufacturing oasis on the site andothers who seek to preserve what ex-ists in the community, are wrong ontwo counts. The Columbia jobs aresimply better for New York. Even ifthey weren’t, it makes more sense tosupport a growing sector than de-clining industries. All efforts to savefactory jobs in the city have failedmiserably, with the city losing an-other 6,000 manufacturing jobs inthe first six months of this year.

The city can reject Columbia’splan, which will sharply limit itsability to grow. Or it can approve it,and make sure other universities canexpand as well, which will boost theeconomy and maybe, just maybe,fuel an industry that will be growingwhen Wall Street falters.

If recent trends continue, New York City will pass amilestone next year.The number of people employed atuniversities,colleges and professional schools will exceedthose in manufacturing. Since 1990, the number ofhigher-education workers will have increased by about

30,000 to about 90,000, while factory payrolls will have fallenfrom 265,000 to a little over 85,000.


CRAIN’S ONLINE POLL

WILL YOU LISTEN TO BOOMER ESIASON ON WFAN, OR TO DONIMUS, IF HE RETURNS TO THE AIRWAVES?A MAJORITY OF THE 777 respondents saythey would tune into Imus. Only 13% saythey would be inclined to turn the dial toWFAN, where Boomer Esiason has beendesignated as the permanent replacementfor Imus’ spot. A third of respondents saythat they have established other listeninghabits in the morning.

For this week’s question: Go to www.NewYorkBusiness.com/poll to have your say.

Neither. I listento news or music

in the morning

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Nevertheless, many are pushingMr. Spitzer to find a seasonedpolitical adviser to help himnavigate Albany.They point toPresident Bill Clinton’s hiring ofDavid Gergen, who was a journalistand confidant of three Republican

presidents before joining theClinton White House.

There is even a list of candidatesincluding Kenneth Shapiro,managing partner of Wilson ElserMoskowitz & Dicker; WilliamCunningham, former

communications director forMayor Michael Bloomberg and asenior staff member for Govs.Hugh Carey and Mario Cuomo;Joseph Strasburg, president of theRent Stabilization Association anda housing agency chairman duringthe Pataki administration; andFrederick Jacobs, former counsel toAssembly Speaker Sheldon Silver.

Spitzer gets busywith business billsgov.eliot spitzer has signed anumber of business-friendly bills inthe past two weeks and vetoedothers that the Business Council ofNew York State sought to derail.Thegovernor:� Vetoed a bill that would haveallowed plaintiffs in liability suits todetermine the extent of thedefendant’s insurance coveragebefore trial. Foes said it would leadlawyers to ask for bigger judgments.� Extended the industrialdevelopment agencies’ financingauthority for six months as theLegislature considers reform.Thelaw would have expired,endangering $1.37 billion inprojects, says the New York StateEconomic Development Council,including $190 million for a YankeeStadium parking garage.� Approved a bill that streamlinesrisk allocation for unexplainedwarehouse losses.� Vetoed a bill that would havedivested HealthyNY reinsurancefunds to union benefit plans.BCNYS President Ken Adams saysthe measure would haveundermined the viability of

HealthyNY, which is vital to smallbusiness owners.

Administrationtouts housing gainsmayor Michael Bloomberg’saffordable housing plan exceededits 2006 goal for providing homesfor low-income people, accordingto a report by the city Department ofHousing Preservation and Development.

Of the more than 13,000 unitsbuilt or preserved in 2006, 75%went to low-income households:families of four making less than$56,700.The mayor had set a goalof 68%.

A spokesman for thedepartment concedes that futureunits are more likely to servemiddle-income families, becausemost units to date have beenpreserved rather than newconstruction, and the olderbuildings are cheaper.

City preparesresidents for exitcolumbia university and the cityDepartment of HousingPreservation and Development areworking together to move tenantsout of the West Harlem area wherethe school wants to build a satellitecampus.The action comes fivemonths before a City Council voteon Columbia’s application for aneeded zoning change.

The department met recentlywith tenants of two of its buildings,602 W. 132nd St. and 3289Broadway, to offer a relocationpackage that insiders say wouldmove tenants 15 blocks north.Columbia and HPD say they arecommitted to offering displacedtenants residences that are equal toor better than their current onesand to maintaining a program that

offers them the chance to becomehomeowners.

Victoria Theaterplan losing steaman effort to redevelop Harlem’shistoric Victoria Theater, avaudeville palace in its heyday, isstalled because of foot-dragging bythe Spitzer administration, saysAssemblyman Keith Wright,D-Harlem.

The administration waited sixmonths before calling the firstmeeting of the Harlem CommunityDevelopment Corp. and still has notnamed a chairman, Mr. Wrightsays. Developers who are finalistsfor the project are growing anxious,he adds.They are Paul Williams,former president of theorganization 100 Black Men; andSteven Williams (no relation) ofDanforth Development Partners.

Additionally, the plan now facescompetition from the W hotelgoing up at 233 W. 125th St.Thevision for the Victoria includes ahotel as well as condominiums andan entertainment complex.

The Empire State DevelopmentCorp., parent of the HCDC, says theVictoria Theater delays go back tothe previous administration. “We’vetaken steps to pick up the pace, andnow the project is on track,” says anESDC spokesman. �

SEEKING PROPOSALS FOR ...NewYork City EconomicDevelopment Corporation is seekingproposals forthe development and operation of the Willoughby Square UndergroundParkingGarage located in Downtown Brooklyn and the construction of thestreet-level public space on top.

RESPONSESAREDUENOLATERTHAN4:00p.m.onFriday,October 12, 2007.

Submission guidelines and requirements are outlined in the RFP and available to

download at www .nycedc.com/rfp , or pick up at NYCEDC, 110 W illiam Street,

6th +oor, New York, NY, Monday - Friday, 9:30 a.m. - 4:30 p.m.

REQUEST FOR PROPOSALS

downtown brooklyn.design, build, operate.


Dems rallying to governor’s side

Gov.eliot spitzer (right) hascome in for his share ofcriticism from fellow

Democrats amid investigations ofwhether his aides used the statepolice to smear RepublicanState Senate MajorityLeader Joseph Bruno. Butthere are signs that someDemocrats are moving to hisside.

Rep. Carolyn Maloney lastweek said it was inappropriatefor the state Senate to launch aninvestigation and that probes should be left to independentbodies.The state Democratic Party hired a public relationsfirm, BerlinRosen Public Affairs, to distribute positivecolumns and editorials from around the state. AssemblymanDavid Valesky, D-Syracuse, said people in his district don’t careabout the political fighting and want lawmakers to move on.

DIGGING IN No walk in the parkDIANA TAYLOR—the former state superintendent of banking known more forbeing Mayor Michael Bloomberg’s significant other—finds herself with herhands full as she takes over as chairwoman of the Hudson River Park Trust.

Ms. Taylor, whose appointment wasannounced earlier this month, must stretch$360.2 million in funding commitments tocomplete an estimated $550 million inconstruction for a five-mile park. After nine yearsof planning and work, the park is just 40%complete.

She must also wade into the growingcontroversy over how to develop Pier 40, whichis expected to provide $19 million each year, or40% of the park’s operating costs. The RelatedCompanies has proposed a $626 million

complex that would serve as a permanent homefor the Tribeca Film Festival and Cirque du Soleil, but it is stronglyopposed by neighbors. Nonprofit group Urban Dove would spend $145million to build park space, sports fields and a high school but wouldappear to provide less revenue for the park.

Ms. Taylor, who has been on the board of the trust since 1998, at firstrefused Gov. Eliot Spitzer’s request that she chair it. She was leaving hergovernment job as banking superintendent in February to lead boutiqueinvestment bank Wolfensohn & Co. But the governor wouldn’t take no for ananswer.

“It was very flattering,” Ms. Taylor says. “It’s such a great park, and I reallywant to see the project come to a positive conclusion. Parks add a lot to thecity’s livability.”

She says she prefers to study the details before talking about how sheintends to proceed in her new role or about Pier 40.

Diana Taylor

THE INSIDERby Erik Engquist and Anne Michaud

THE VICTORIA was a vaudeville mecca.

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CNYB 08-20-07 A 14 8/17/2007 11:57 AM Page 1

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W E E K I N R E V I E W

Ford Foundationappoints presidentthe ford foundation namedMcKinsey & Co. Director LuisUbiñas president. Mr. Ubiñas,who was with McKinsey 18 years,will succeed Susan Berresfordwhen she retires in January. Shehas led the 70-year-oldfoundation since 1996.

Harper’s iBookharpercollinsmade samples of 14new book titlesavailable in aniPhone-compatibleformat through itsWeb site.The pilotprogram lets usersview excerpts fromthe books.

Goldman fillsflailing fundgoldman sachs group inc. saidit is leading a group of investors,including Maurice “Hank”Greenberg and billionaire EliBroad, who are injecting $3 billioninto Goldman’s Global EquityOpportunities Fund.The fund haslost nearly 30% of its value thismonth and is now worth about$3.6 billion.

Ann Taylor eyesbaby boomersann taylor stores corp. plansto launch a casual apparel chain inan effort to attract baby boomers.Mark Mendelson, former head of

merchandising at Jones Apparel,will run the division. … AnnTaylor Chief Financial OfficerJames Smith is leaving thecompany to pursue other interests.

Banks developtrading systemcitigroup, Lehman Brothers,Merrill Lynch, Morgan Stanleyand Bank of New York are creatinga new system for institutionalinvestors to trade unregisteredsecurities.The Open Platform forUnregistered Securities aims tocompete with Goldman SachsGroup’s GS TRuE system in thegrowing market.

Gun crackdowna federal judge ruled that anumber of out-of-town gundealers are subject to lawsuits byNew York City.The judge decidedthat there is a high probability thatthe dealers sold guns that wereused to commit crimes in NewYork.The ruling allows suits toproceed against shops in Georgia,Ohio, Pennsylvania, SouthCarolina and Virginia.

Orajel IPOdli holding corp., maker ofSally Hansen and Orajel products,filed to raise up to $200 million inan initial public offering.

O.J. findspublisherbeaufort books acquired therights to O.J. Simpson’s If I Did Itand has scheduled it to hit

bookstores on Oct. 3.The book isa supposedly hypothetical accountof how Mr. Simpson might havekilled ex-wife Nicole BrownSimpson and her friend RonaldGoldman.The book wasoriginally slated for publication byNews Corp.’s HarperCollins,which canceled it after acontroversy erupted.

Ziff evaluates debtziff davis media inc. said itwould not make an interestpayment and would seek ways ofrestructuring $390 million inlong-term debt.The company isdelaying its quarterly report tocontinue reviewing how itaccounted for the July sale of itsEnterprise Group.

Claiborne pairs with Best Buyliz claiborne inc. signed a dealto design and sell its electronics-related accessories in 250 Best Buystores. Priced between $25 and$200, the line of laptop bags,protective sleeves and totes will goon sale in stores and on Best Buy’sWeb site in October.

Enough Stuffkent brownridge and theQuadrangle Group completedtheir $240 million acquisition ofDennis Publishing and said theywill fold Stuff magazine. Stuff willbecome a section in Maxim.

Take-Two receivesnotice from SECtake-two interactive SoftwareInc. received a so-called Wellsnotice from the Securities andExchange Commission related tothe company’s stock optionspractices.The notice signals thatan SEC enforcement action maybe forthcoming.

Regatta boughtli & fung usa purchased apparelfirm Regatta USA for about $145million, giving it access to brandssuch as Daisy Fuentes and SimplyVera by Vera Wang.

Auctions legalizedgov. eliot spitzer signedlegislation that makes theauction of distilled spirits legal inNew York.Christie’s, whichlobbied for thelegislation withthe DistilledSpirits Council ofthe United States,plans to hold thefirst auction inDecember. NewYork is the eighthstate to legalizesuch sales.

—from staff reports andbloomberg news reports

WFAN names Imus replacementsWFAN TAPPED FORMER NFL QUARTERBACK and CBS Sportscommentator BOOMER ESIASON (above left) and CraigCarton, co-host of the Jersey Guys program on WKXW, inTrenton, N.J., to take the morning slot vacated when DONIMUS (above right) was fired in April. The show will debut onSept. 4. Meanwhile, Mr. Imus, whom WFAN ousted formaking racist remarks, settled his lawsuit against stationowner CBS Radio in a deal said to be worth $20 million. Heis now free to return to the radio; one possibility is WABC.


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ECONOMIC SPOTLIGHT

NYC Hotel StatsAverage room rates and occupancylevels have been rising since January,PKF Consulting data show. Theaverages for first-half 2007 were$273.72 and 84.2%, topping year-earlier levels of $242.48 and 83.5%.

Broadway StatsAttendance and gross fell in the weekended 8/12, The League of AmericanTheatres and Producers says. For theseason, attendance was 10% above’06 levels, at 2.8 million; gross, at$211.4 million, rose 11%.

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JUNE ’07 JULY ’07 COMPARISON

NY area inflation change +0.5% +0.2% +2.5%1

NYC unemployment 5.3% 5.7% 4.6%2

NY employment change 3,718,400 52,500

1-Inflation rate for the latest 12-month period. 2-U.S. unemployment rate. 3-Not seasonallyadjusted.

Economy WatchThe New York City unemployment rate jumped in July as a large number ofpeople began looking for work.

Capital IQ’s Weekly Deals ReportTRANSACTION SIZE

COMPANY/LOCATION (in millions) BUYER/INVESTOR TRANSACTION TYPE

Icahn Management $1,909.9 American Real Estate Partners SB M&AMount Kisco, N.Y.

Infocrossing Inc. $568.5 Wipro Technologies Ltd. SB M&ALeonia, N.J.

NPS Pharmaceuticals Inc. $100.0 Not disclosed GCIParsippany, N.J.

NPS Pharmaceuticals Inc. $50.0 Balyasny Asset Management, GCIParsippany, N.J. Visium Asset Management

Mycroft Talisen $10.0 Petra Capital Partners, Ticonderoga GCIManhattan Capital Inc.

Worldwide Biggies Inc. $9.0 Greycroft, Hearst Interactive Media, GCIManhattan NBC Universal Inc., Platform Equity,

Prism VentureWorks

Selected deals announced during the week of Aug. 5 for companies headquartered in metro NewYork. GCI: Growth capital investment represents new money invested in a company for a minoritystake. SB M&A: Strategic buyer M&A represents a minority or majority acquisition of existingshares of a company without the participation of a financial buyer.

JOB TOTAL JULY3 12-MONTH CHANGE

CNYB 08-20-07 A 16 8/17/2007 11:17 AM Page 1

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MONTROSECPR Telecommunications2153 Albany Post RdOAKDALECellular Warehouse1217A Montauk HwyOSSININGMid Hudson Communication57 Croton AveSELDENDirect Connect708A Middle Country RdNew York Wireless Comm729 Middle Country RdSOUTH HAMPTONS & B Wireless801 Sountry Rd

STATEN ISLANDCell Place Inc.2200 Richmond AveSTONY BROOKS & B Wireless1320 Stony Brook RdSUFFERNPerformance Wireless Corp.4 Lafayette AveWHITE PLAINSThe Customer Center300 Tarrytown Road


R E A L E S T A T E D E A L S

Uniform maker I.Spiewak & Sons ismoving to smallershowroom space in thegarment district.

The company has signed a 10-year lease for 8,800 square feet at 463Seventh Ave., at West 35th Street. It ismoving from 11,000 square feet at469 Seventh Ave.The company de-clined to comment.

“We’ve been aggressive aboutbringing outerwear companies” tothe building, says David Levy, anAdams & Co. broker who repre-sented property owner The ArsenalCo. Michael Burgio, at Cushman &Wakefield Inc., negotiated on be-half of the tenant.

Asking rent was about $42 asquare foot, which is comparable toasking rents in other Class B officebuildings on Seventh Avenue.Prices have increased recently as lawfirms and other professional servic-

es began moving into buildings onthe avenue. Many apparel makerswanting to maintain a presence inthe garment district have moved offSeventh Avenue and onto sidestreets, where rents are about half asmuch. They have also been risingwith demand, however.

Spiewak, a family business start-ed in Brooklyn 105 years ago, isknown for its durable clothing. Itproduced uniforms for U.S. soldiersin both world wars and has madejackets for the New York, Chicagoand Los Angeles police depart-

ments. Michael and Roy Spiewakare the fourth generation to run thecompany. It also makes fashionableclothing, which sells at such retail-ers as Barneys and Atrium.—elisabeth butler cordova

Smooth startfor shaving storeafter a year of searching the cityfor an ideal retail space, DanielleMelka found a solution in her ownneighborhood.

The president of eShave discov-ered the 576-square-foot space at993-B First Ave., between East 54thand East 55th streets, while she waswalking home. She signed a 10-yearlease and is getting ready to debuther first brick-and-mortar shop.

“All the real estate agents told methat the first store is always the hard-est one to get,but everything flowedso well,” says Ms. Melka, whoworked directly with the landlordStahl Realty.The asking rent for thespace, which includes 288 squarefeet of retail space and a basement ofequal size, was $145 a square foot.

The company has been selling itsshaving accessories, sets and travel

kits online for a year. The store isscheduled to open on Sept. 10.

Ms. Melka says the location fitsher needs perfectly. It is surroundedby a variety of retail and serviceproviders, including a flower shop,hair salon, bank, wine store andhigh-end butcher. The area’s foottraffic is driven primarily by its res-idents, many of whom have stoppedby to welcome her.

“It’s a mixed crowd,and one that’svery proud of the neighborhood,”Ms. Melka says. “It’s very differentthan if we had opened in midtown,where we were also looking. Theclientele there is more transient.”

She plans to open a total of 10eShave stores, five of them in Man-hattan. She is eyeing Chelsea andthe West Village for the next two.

—kira bindrim

Cuban cuisinefor Fulton St. though sophie’s Cuban Cuisine onWest 41st Street remains closed inthe aftermath of the steam-pipe ex-plosion in July, a Sophie’s is slated toopen downtown, on Fulton Street.

The company, which already has

seven spots in Manhattan, signed a10-year lease for 1,500 square feet ofground-floor space and a 1,500square-foot basement at 141 FultonSt., between Nassau Street andBroadway. It will be the low-pricedchain’s second franchised eatery.

A restaurant opening is a happyoccasion for Sophie’s,which has hadsome bad luck in recent years. Itsoriginal downtown location wasforced to close after Sept.11,and themidtown store has been closed fornearly a month. Co-owner andpresident Sophia Luna says therestaurant, accustomed to steadybusiness from local office workers,has sustained $400,000 in damagesand lost sales.

Sophie’s hopes that the FultonStreet outpost will benefit from theneighborhood’s recent influx ofcommercial, residential and retailtenants.

“There are a lot of office workersin that area, which is great for So-phie’s in terms of lunches,” said Jor-dan Spiegel, the Sunburst Advi-sories broker who represented thebuilding owner. “Plus, a lot of WallStreeters are moving downtown.The residential population is grow-ing significantly.”

Jack Braha of Jud Leasing Corp.represented Sophie’s. The askingrent was $175 a square foot.

—kira bindrim

Uniform maker getssmaller digs but stayson 7th; eShave getsfirst nonvirtual shop

Downsizing in garment district


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I. SPIEWAK &SONS will bemoving to 463Seventh Ave.

CNYB 08-20-07 A 18 8/16/2007 1:28 PM Page 1

Organizingeffort paysoff for UFT

BY VICTORIA RIVKIN

in a few months, union officialsrepresenting close to 28,000 home-based child care providers in NewYork City will be sitting down withthe state to negotiate their first con-tract, which is likely to include a payincrease, health insurance and otherbenefits.

It will not only be a victory for thechild care providers—who up untilMay did not even have the right tounionize—but a coup for the unionthat organized them, the UnitedFederation ofTeachers.Already oneof the city’s largest and most power-ful unions, the UFT is increasing itsmembership by nearly 20% in onefell swoop, adding millions of dol-lars in union dues to its coffers andstrengthening its influence with cityand state officials.

“This is one of the largest single[bargaining] units a union has wonin decades, probably since the hos-pitals were unionized in the city inthe late 1960s and early ’70s,” saysEd Ott, executive director of theNew York City Central LaborCouncil. “It adds to the strength ofthe UFT and adds to their leader-ship role in the labor movement.”

The UFT hasn’t determined adues structure yet for the child careproviders, who earn $20,000 a yearon average. But even if they pay halfthe amount that city teachers pay—$921 in 2005—the union would in-crease its annual revenues by $12.8million. And in a city where laborunions are politically active, anoth-er 28,000 potential votes will carryweight with elected officials. “Thiswill bolster the union’s power polit-ically and add to its already diversemembership,’’ says Joshua Freeman,a history professor and union schol-ar at Queens College.

Taxpayers could be hitwhile the uft hasn’t yet comeup with a proposed contract for thechild care providers, it could coststate taxpayers millions. In Illinois,where 49,000 home-based childcare providers unionized, the statesigned off last year on a three-year,$250 million contract that includes$33 million of new money to coverthe first year of rate increases. Thestate has also agreed to make a one-time payment of $27 million towardhealth premiums for the providers.

Mr. Freeman says that New Yorkcould be facing another unforeseen

BY WENDY DAVIS

every day, union organizer Laura Tapiapounds the pavement on Knickerbocker Av-enue in Bushwick, Brooklyn. She’s on thepayroll of the Retail, Wholesale and Depart-ment Store Union, but when she goes out tointerview employees about their wages andworking conditions, she touts her affiliation

with another association, the communitygroup Make the Road by Walking.

The retail union began working with Makethe Road more than two years ago in acampaign to improve working condi-tions in the 170 stores along Knicker-bocker Avenue. The partnership’sbiggest success came last year, whenabout 100 employees of theFootco/New York Sneakers chainjoined the union.

“Before, we didn’t have anything,”says Christina Roche, who has sold sneakersat Footco for four years. She used to work six-day, 52-hour weeks for $5.25 an hour. Nowthat there’s a union contract, she earns the

minimum wage, $7.15 an hour, and has twodays off each week, two weeks’ paid vacationand a health insurance plan.

Make the Road is one of severalcommunity groups that the retail work-ers union is partnering with in a new ef-fort to organize employees. The unionalso has joined forces with at least twoother community groups in the city, theGood Old Lower East Side in Man-hattan and the Northwest Bronx Com-munity and Clergy Coalition.

For the retail workers union, partneringwith community groups is born out of a recog-nition that the old strategy of focusing just on

Increases membership by 20% by adding child care providers

U N I O N S I N N E W Y O R K

See ORGANIZING on Page 20

Teams up with communitygroups to help break icewith low-wage workers

See NEW SALES PITCH on Page 21

DUE FOR MORE: Nila Edwards,who watches children in herBrooklyn home, expectsunionization to help with herbenefits.

LAURA TAPIA,an organizer forthe retail union,works withcommunity groupMake the Roadby Walking.


Retail workers union tries new sales pitch

INSIDE Q&A The president of thereorganized NYC Central Labor Council talksabout its missions and goals PAGE 20

NY’S LARGEST UNIONS ranked bynumber of members PAGE 22

OrganizedGETTING

3 LOCALStry to raise citymembership Page 21

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CNYB 08-20-07 A 19 8/16/2007 2:41 PM Page 1

Gary labarbera is thenew president of theNew York City Cen-tral Labor Council.His predecessor, for-

mer state Assemblyman BrianMcLaughlin, was fired after beingindicted last October on embezzle-ment and fraud charges. In re-

sponse, the CLC changed its gov-erning structure, transferring day-to-day responsibilities from thepresident to the executive director.It also made the presidency a part-time, unpaid position and limits anindividual to one three-year term.

Mr. LaBarbera, 47, continues toserve as president of Teamsters Lo-cal 282 on Long Island, which rep-resents about 4,000 construction-truck drivers.He joined the union in1981, when he went to work as aforklift operator in a King Kullenwarehouse. Mr. LaBarbera recentlytalked with Crain’s assistant manag-ing editor Robert Hordt.

Q: What is the role of the CentralLabor Council?A: First, it is not a union. Itrepresents 400 local labor unionsthat have 1.2 million members, butit is not a bargaining agent for anyindividual union. It is designed towork with its affiliate unions in anumber of capacities. One ismutual aid, in which local affiliatescontact the CLC when they havedisputes or when they need helpfrom other affiliates.

The CLC has a strong legis-lative arm. Many things that affectboth public and private sectorunions are driven by legislation andpolicy set by the city. So we serve asan advocate for the affiliates withinthe mayor’s office and the CityCouncil.

Q: How badly did Mr. McLaughlinhurt your organization, and whatkind of challenge does that pose foryou?A: It’s history.The new structurewithin the CLC is moving forward.The executive board—not any oneindividual—is the governing bodyin terms of policy, and that is asignificant change.

Q: What are your priorities?A: We have serious issuesregarding economic development,critical issues regarding health carecosts and concerns about the overallrising cost of living for workingpeople. We want to find solutions.We realize that a strongpartnership with the business andpolitical communities is critical tothe future. Ultimately, our goals are

to improve the lives of workingpeople and to have strongcommunities.

Q: The United Federation ofTeachers is in the process of organizing28,000 home-based child careproviders. Are there any other biggroups of workers in the city thatunions are targeting?A: Organizing is one of the coreissues for unions, to bring morepeople into the labor movement.

Skeptics say they want moremembers because they want moredues dollars, but it is so far beyondthat. It is to elevate people’sstandard of living and to find avehicle for them to enter themiddle class.

Most of the affiliates have drivesgoing on, but organizing is difficultbecause of the unfavorable laws.We’re trying to change that. (Aproposed federal bill would allowunionization after a majority ofworkers sign union authorizationcards. Currently, after most workershave signed cards, an employer canrequest an election—a process thatcan take months and that unionssay favors employers.) The law isnot going to be changed under theBush administration. But it isprobably the most important issuefor organized labor throughout thecountry, and that’s why there’s suchan emphasis on ’08 and thepresidential election. If we aresuccessful in getting the law passed,it will change the future oforganizing in this country.


Labormovement prioritiesNew CLC head seeschange in electionlaw as critical issue


R E P O R T U N I O N S I N N E W Y O R K

QA&CARD-CARRYING: Mr. LaBarbera joined theTeamsters as a forklift operator in 1981.

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expense. He says once the home-based child care providers get in-creases from the state in their newcontract, the city’s day care centers,which are already unionized, mightseek raises as well.That’s what hap-pened in Illinois,where the Legisla-ture increased day care center subsi-dies by $18 million this year.

Smoother pathwhatever the new contract final-ly looks like, the home-based childcare providers have Gov.Eliot Spitzerto thank. Most organizing drives areknock-down, drag-out affairs pittingiron-fisted labor leaders againstequally strong-willed employers whocampaign hard to keep their work-places union-free.But this organizingeffort was different. While the unioncourted the child care providers, themore important negotiations werebeing conducted in Albany.

Although home-based child careproviders care for the children oflow-income workers who receivechild care subsidies from the state,the providers are independent con-tractors,not state employees.As a re-sult, they could not unionize withouta change in the law. After lobbyingfrom the UFT and the Civil ServiceEmployees Association, anotherunion that will represent 30,000 up-state child care providers,Mr.Spitzersigned an executive order in Maygranting them the right to organize.

“It’s the single biggest favor anygovernor ever did for the unions,’’saysE.J.McMahon,a senior fellow of theManhattan Institute and the directorof the Empire Center for New YorkState Policy.The Legislature passed abill last year that would have given theworkers the same right, but then-Gov. George Pataki vetoed it.

Without any opposition from thestate, the nominal employer in this

case, the UFT was able to quicklygather the 8,400 signatures needed torequest a union election. Late lastmonth, the New York State Employ-ment Relations Board certified thesignatures.An election,largely a sym-bolic exercise, will be held in the nextfew weeks, and then the union willprepare for contract negotiations.

Randi Weingarten, president ofthe UFT, says the child careproviders, mostly immigrants andmostly female,deserve higher wagesand benefits.“This is a group of peo-ple who are really exploited,” saysMs. Weingarten. “They are regulat-ed by so many different governmentagencies, yet there is no one there tohelp them navigate the system.”

In some ways, the UFT has al-ready been representing the childcare providers. In the past two years,the UFT and the Association ofCommunity Organizations for Re-form Now, known as Acorn, havehelped win more than $154,000 inback pay owed to some child careworkers.The groups also got the CityCouncil to give some providers a$150 yearly stipend to buy supplies.

Past difficultiesgladys jones, a home-based childcare provider in Staten Island, re-ceived nearly five months of backpay as a result of the UFT’s efforts.“I used to call the Administrationfor Children’s Services, and theywere very rude and unhelpful. I evenhad them tell me that I should justforget about ever getting the moneyowed to me,” she says.

“We never knew what we wereentitled to,’’ says Nila Edwards, aprovider who watches seven chil-dren in her home in East New York,Brooklyn. “If you don’t know, youjust accept what you can get.”


Organizing pays offContinued from Page 19

CNYB 08-20-07 A 20 8/16/2007 1:32 PM Page 1

be supervised by theNational LaborRelations Board.

Unions often seeelections as adelaying tactic.

“The museum ishoping that if theytake this to theNLRB, then the

union will go away—but we’re not goingaway,” says Local 2110 PresidentMaida Rosenstein.

—VICTORIA RIVKIN

THE LOWER EAST SIDE, where theInternational Ladies Garment WorkersUnion was born over 100 years ago, isnow the site of a union-organizing driveat a museum dedicated to theneighborhood’s past.

The Technical, Office andProfessional Union UAW Local 2110is attempting to unionize about 40per-diem tour guides and other workersat the Lower East Side TenementMuseum. Most of them have signed

union authorization cards.The employees say theywant a raise, benefits,guaranteed hours and alounge where they cantake breaks.

But the privatenonprofit is fighting back.In a statement, the tenement museumsays that the union should also includeall 40 full-time employees and thatthere must be an election—which would

INSPIRED BY A LABOR LEGACY


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employees is no longer working. Asof last year, just 12% of full-time em-ployees nationwide belonged to aunion, down from 16.4% in 1989,according to the U.S. Bureau of La-bor Statistics. In New York state,24.4% of employees were in unionsin 2006, down from 27.9% in 1989.

Part of the problem is the make-up of the workforce. Many of thepeople the union is trying to orga-nize are low-wage immigrant work-ers who come from cultures that donot have an affinity for unions.

“People are afraid to talk tounions,” says Ms. Tapia, the labororganizer working in Bushwick. Onthe other hand, workers welcomeher when she mentionsMake the Road, formed 10years ago as an immigrants’rights group. “Make theRoad is an institution thatmost of the people know andtrust,” she says.

Unions have little choice but towork with community groups if theywant to rebuild their ranks, saysThomas Kochan, a professor ofmanagement at the MIT SloanSchool of Management and a mem-ber of the U.S. Commission on theFuture of Worker Management Relations.

Cultural considerations“it’s absolutely essential to workwith community groups, immigrantgroups, the religious groups thatthese workers come from and relateto,” he says. Such groups give theunion legitimacy with workers.

Building on their success atFootco, the retail workers union andMake the Road are working to-gether to rally support for workers atthe Associated Supermarket on

Knickerbocker Avenue,where Makethe Road is leading a boycott over al-leged labor law violations.

The union is working with GoodOld Lower East Side as it fights theowner of a retail store, Yellow RatBastard, over wages and workingconditions. The state attorney gen-eral has sued the owner for $2 mil-lion for alleged labor law violations.

Hidden benefitsunions stand to benefit even iftheir partnerships with communitygroups don’t immediately result inan increase in union membership,says Lawrence White, a professor atNew York University’s Stern Schoolof Business. In some cases, unions

have joined with communi-ty groups to keep anti-unionretailers such as Wal-Martfrom opening stores in NewYork City.

In fact, the prospect of ananti-union store moving into theircommunity is exactly what theNorthwest Bronx Community andClergy Coalition and the retailworkers union hope to avoid. Thecommunity group sought help fromthe union last year when the city wasgetting ready to solicit proposals todevelop the Kingsbridge Armory.As a result, the city’s request for pro-posals includes a preference for de-velopers who commit to hiring re-tailers that offer jobs with “livingwages”—defined as $10 an hourwith benefits or $11.50 an hourwithout.

“In order for us to be able to of-fer living-wage jobs, we knew wehad to work with the union,” saysTeresa Andersen, president of theBronx group.


New sales pitchContinued from Page 19

VERIZON HANGS UP ON CWAFEDERAL LEGISLATION making it easier for workers to joinunions can’t come fast enough for the CommunicationsWorkers of America District 1.

The CWA and the International Brotherhood ofElectrical Workers are trying to organize 390Verizon Business technicians—270 of them inNew York City—and a change in the law regulatingunionization would guarantee their membership.

The technicians were formerly at MCI, which Verizonbought. It created a separate division for them rather than fold them into itsunionized workforce. This spring, 67% of the workers signed unionauthorization cards.

Under current law, that allows the CWA to petition the National LaborRelations Board for an election. An employer can waive an election andautomatically recognize the union, and that’s what the CWA would likeVerizon to do. So far, it has refused.

A labor-backed bill that would unionize a company’s workers after amajority of them sign the cards—thus making elections unnecessary—passedin the House but died in the Senate this summer.

The CWA is resisting the move to the labor relations board. “Going to theNLRB is like going into the black hole,” says Tim Dubnau, organizingcoordinator for the CWA District 1. A company’s lawyers “can stall a union’sefforts at the NLRB for years,” he says.

To put pressure on Verizon, the CWA has launched a campaign to have its700,000 members nationwide switch to AT&T from Verizon Wireless.

The company remains unswayed. “Any union organizing in VerizonBusiness occurs according to current law, which guarantees each employee’sright to cast a vote via secret ballot,” a spokeswoman says.

— VICTORIA RIVKIN

LOCAL 32BJ ADOPTS NEW SECURITY STRATEGY

Organized

ORGANIZING 6,000 SECURITY GUARDS in midtown andlower Manhattan is proving difficult for the ServiceEmployees International Union Local 32BJ becausethey work at dozens of small firms. The largest firmhas just 6% of the market.

As a result, rather than dilute its resources byfocusing on the firms, Local 32 is appealing tocommercial tenants and landlords with theargument that unionized security workers wouldbe better trained and more professional.

One of the Local 32’s targets is J.P. MorganChase & Co., which uses about 100 guards, 77 of

whom are employees of Summit Security Services,the third-largest security provider in the city. Theunion has asked the financial services giant to

pressure Summit to let its guards unionize, andto switch security contractors if Summitdoesn’t act.

Local 32 has been rebuffed so far. “Thisis an issue between the security guards andtheir employers,” says a spokeswoman for

J.P. Morgan Chase, which owns four majorbuildings in the city, three of them in Manhattan.

—VICTORIA RIVKIN

GETTING

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CNYB 08-20-07 A 21 8/16/2007 1:35 PM Page 1

New York City’s Largest Local UnionsRanked by number of members

Continued on Page 24


UNION COMPOSITION Demographic characteristics of U.S. union members, 2006


Rank Union

Phone/Web site

Parent body union Top executive

2007

members1

2006

members1

% change

2006

dues

receipts

(in millions)

2006

assets

(in millions)

Year

founded Groups represented

1 1199 SEIU United Healthcare Workers East

310 W. 43rd St.New York, NY 10036

(212) 582-1890www.1199seiu.orgService Employees International Union

George GreshamPresident

295,000 275,000 +7.3% $120.4 $64.4 1932 Health care workers: registerednurses, pharmacists,nursing/physician assistants,home care/nursing home workers

2 UFT Local 22

52 BroadwayNew York, NY 10004

(212) 777-7500www.uft.orgAmerican Federation of Teachers

Randi WeingartenPresident

150,000 150,000 0.0% n/d n/d 1960 Nonsupervisory public schooleducators

3 SEIU Local 32BJ

101 Sixth Ave.New York, NY 10013

(212) 388-3800www.seiu32bj.orgService Employees International Union

Michael P. FishmanPresident

85,000 78,965 +7.6% $49.8 $28.4 1934 Residential and commercialproperty service workers,including cleaners, doormen andsecurity officers

4 Transport Workers Union Local 100

80 W. End Ave.New York, NY 11210

(212) 873-6000www.twulocal100.orgTransport Workers Union of America

Roger ToussaintPresident

39,975 39,975 0.0% $20.7 $44.3 1934 Transport workers, including busoperators, train operators, trainconductors, motormen, stationagents, tower operators

5 IBEW Local Union 3

158-11 Harry Van Arsdale Jr. Ave.Flushing, NY 11365

(718) 591-4000www.local3.comInternational Brotherhood of Electrical Workers

Christopher EriksonBusiness manager

30,6773 30,564 +0.4% $1.8 $32.1 1888 Construction, manufacturing,

maintenance employees

6 UNITE HERE Local 6

709 Eighth Ave.New York, NY 10036

(212) 957-8000—UNITE HERE

Michael SimoPresident

25,000 21,023 4 +18.9% $13.1 4 $13.7 4 1938 Hotel and private club employees

7 New York City Patrolmen’s Benevolent Association5

40 Fulton St.New York, NY 10038

(212) 233-3351www.nycpba.org—

Patrick J. LynchPresident

24,000 22,500 +6.7% n/d n/d 1894 Police officers

8 IBT Local 2375

216 W. 14th St.New York, NY 10011

(212) 924-2000—International Brotherhood of Teamsters

Gregory FloydPresident

22,914 22,764 +0.7% $11.7 $4.1 1951 School safety agents, hospitalpolice officers, CUNY campuspeace officers, NYC housingauthority caretakers

9 UFCW Local 15006

221-10 Jamaica Ave.Queens Village, NY 11428

(800) 522-0456www.ufcw1500.orgUnited Food and Commercial Workers Union

Bruce W. BothPresident

21,856 22,742 -3.9% $8.1 $27.7 1937 Grocery store workers,pharmacists and pharmacyworkers

10 Professional Staff Congress

AFT Local 23347


(212) 354-1252www.psc-cuny.orgAmerican Federation of Teachers

Barbara BowenPresident

20,9568 15,031 9 +39.4% $8.7 4 $6.9 1972 CUNY faculty and professional

staff

11 AFTRA-NY Local10

260 Madison Ave.New York, NY 10016

(212) 532-0800www.aftra.orgAmerican Federation of Television & RadioArtists

Stephen BurrowExecutive director

20,61911 20,619 0.0% n/d 12 n/d 12 1937 Actors, broadcasters, singers,

dancers, sportscasters, discjockeys and recording artists

12 OPEIU Local 153


(212) 741-8282www.opeiu-tristate.orgOffice and Professional Employees InternationalUnion

Michael GoodwinBusiness manager

18,556 18,614 -0.3% $6.4 $0.8 1945 Office, clerical, technical andprofessional employees

13 AFSCME Local 15495

125 Barclay St.New York, NY 10007

(212) 815-1549www.local1549.comAmerican Federation of State, County andMunicipal Employees

Eddie RodriguezPresident

18,000 18,000 0.0% n/d n/d 1964 Clerical-administrativeemployees

14 RWDSU Local 338

97-45 Queens Blvd.Rego Park, NY 11374

(718) 997-7400www.local338.orgRetail, Wholesale and Department Store Union

John R. DursoPresident

14,000 12,000 +16.7% $5.0 4 $49.0 4 1925 Supermarket and retail pharmacyemployees

15 Committee of Interns and Residents

SEIU Local 195713


(212) 356-8100www.cirseui.orgSEIU Healthcare

Simon AhtaridisPresident

12,500 12,000 +4.2% $7.6 $4.6 1957 Medical interns, residents andfellows at public and privateteaching hospitals

16 Council of School Supervisors

and Administrators14

16 Court St.Brooklyn, NY 11241

(718) 852-3000www.csa-nyc.orgAmerican Federation of School Administrators

Ernest A. LoganPresident

11,903 11,817 +0.7% $9.6 $11.8 1968 Principals, assistant principals,education administrators, daycare directors and assistantdirectors

17 LIUNA Local 300 Mail Handlers15


(212) 431-0040www.local300npmhu.orgNational Postal Mail Handlers Union

Paul HogrogrianPresident

11,46811 11,468 0.0% $2.8 $1.2 1972 Mail handlers

White 12,259,000

Black or African-American 2,163,000

Asian 592,000

Other 345,000

Hispanic1 1,770,000

1-People of Hispanic origin can be of any race; they are also included in other categories. Sources: U.S. Department of Labor, Bureau of Labor Statistics

1-Excludes IBT Local 237, AFSCME Local 1549, Uniformed Firefighters Association Local 94 and New York City Patrolmen’s BenevolentAssociation, which were not required to file compensation data with the U.S. Dept. of Labor’s Office of Labor Management Standards.2-Includes disbursements for meal and travel allowances, entertainment and other union activities. 3-From 2005 annual financial(LM) report, the latest available. 4-Jill Levy stepped down on Jan. 31, 2007. Ernest Logan became president on Feb. 1, 2007.

HIGHEST-PAID CITY UNION OFFICIALSUnion1 Name/title 2006 compensation2

RWDSU Local 338 John Durso, president $278,354

UFCW Local 1500 Bruce Both, president $254,955

UFT Local 2 Randi Weingarten, president $240,8483

SEIU Local 32BJ Michael Fishman, president $213,476

Council of School Supervisors Jill Levy,4 president $198,903

dail

y ne

ws

ap im

ages

Weingarten

Fishman

Women

TOTAL 15,359,000

Men6,702,000 .

.8,657,000

CNYB 08-20-07 A 22 8/16/2007 1:37 PM Page 1

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Rank Union

Phone/Web site

Parent body union Top executive

2007

members1

2006

members1

% change

2006

dues

receipts

(in millions)

2006

assets

(in millions)

Year

founded Groups represented

18 IBT Local 210

110 Wall St.New York, NY 10005

(212) 757-3463www.ibtlocal210.orgInternational Brotherhood of Teamsters

George L. MirandaSecretary, treasurer

10,817 10,650 +1.6% $5.7 $7.5 1953 Airline employees, generic-drugmanufacturer employees, Costcoemployees

19 CWA Local 118014

6 Harrison St.New York, NY 10013

(212) 226-6565www.cwa1180.orgCommunications Workers of America

Arthur CheliotesPresident

9,300 7,965 +16.8% $2.1 $1.2 1965 NYC government administrativeworkers, supervisors, nonprofitemployees

20 Uniformed Firefighters Association Local 945

204 E. 23rd St.New York, NY 10010

(212) 683-4832www.ufanyc.orgInternational Association of Firefighters

Stephen T. CassidyPresident

9,000 9,000 0.0% n/d n/d 1918 Professional firefighters

21 Associated Musicians of Greater New York

Local 802


(212) 245-4802www.local802afm.orgAmerican Federation of Musicians

Mary LandolfiPresident

8,981 9,167 -2.0% $6.8 $7.3 1921 Professional musicians

22 AFSCME Local 38916

75 Varick St.New York, NY 10013

(212) 219-0022www.dc1707.net/local389.htmAmerican Federation of State, County andMunicipal Employees

Elizabeth StuddivantPresident

8,74011 8,740 0.0% $0.2 $0.1 n/d Home care employees

23 CWA Local 110114

275 Seventh Ave.New York, NY 10001

(212) 633-2666www.cwa1101.orgCommunications Workers of America

Joseph ConnollyPresident

8,197 8,298 17 -1.2% $5.5 $5.2 1961 Wireless and wiretelecommunications, health care,education workers

24 Laborers Local 7915


(212) 465-7976www.nysliuna.org/localLaborers’ International Union of North America

John DelgadoBusiness manager

8,13211 8,132 0.0% $10.1 $11.1 n/d Mason tenders, demolition

workers

25 UNITE HERE Local 100


(212) 541-4226www.unitehere100.orgUNITE HERE

Bill GranfieldPresident

7,707 7,110 +8.4% $2.9 $0.4 1982 Bartenders, cashiers, cooks,waiters and food serviceemployees

New York City includes Bronx, Brooklyn, Manhattan, Queens and Staten Island. Crain’s New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that these listings are complete. Private sector laborunions are required to file annual financial (LM) reports to the U.S. Department of Labor’s Office of Labor Management Standards. Unions composed of state and local government employees are not required to file these reports. To qualify for this list, a local union must beheadquartered in New York City. Intermediary bodies or union structures like district, regional and state councils are excluded. All information was provided by the unions, unless otherwise noted. Financial figures are for calendar year except where noted. Financial figures forunions with fiscal years ending in April through December are for the year ended 2006, and figures for unions with fiscal years ending in January through March are for the year ended 2007. n/d Not disclosed. 1-As of June 30. 2-Fiscal year ends July 31. 3-As of July 31. 4-Uniondid not disclose figure. Figure obtained from union’s 2006 LM filings. 5-Composed of public sector employees and is not required to file financial reports with the Department of Labor’s Office of Labor Management Standards. 6-Fiscal year ends March 31. 7-Fiscal year endsAug. 31. 8-As of May 31. 9-As of Aug. 31. 10-Union did not respond. Figures obtained from union’s 2006 LM filings. 11-Crain’s estimate based on union’s 2006 LM filings. 12-Figure is consolidated into the AFTRA National LM-2 filing. 13-Fiscal year ends June30. 14-Fiscal year ends Sept. 30. 15-Union declined to respond. All figures were obtained from the union’s 2006 LM filings, except where noted. 16-Fiscal year ends May 31. 17-As of Sept. 30. Research: Denise Southwood, Adrianne Pasquarelli, Kathleen Morgenier and SarahStudley

Randi Weingarten, President

There’s been a lot of talk lately about the need for accountabilityin our public schools.

New York City’s teachers couldn’t agree more — we’re fullyaccountable to the city’s 1.1 million school children whodepend on us for a quality education.

That’s why our voices deserve to be heard.

So when big changes are made in our schools, teachersneed to be involved and invested in the plans.

We’re already making a difference in the futures of our kids.

We can also make a difference in the futures of our schools.

All we ask New Yorkers to do is listen.

ALL CRAIN’S BUSINESS LISTS ARE AVAILABLE AT WWW.NEWYORKBUSINESS.COM/LISTS.

CNYB 08-20-07 A 24 8/16/2007 1:40 PM Page 1

S M A L L B U S I N E S S

BY WENDY DAVIS

In october, just a few monthspast its 78th birthday, thePeck’s Office Plus store onMain Street,Flushing,will beno more. The company,

which won a small business awardfrom Crain’s in 2004 in part becauseof its ability to outfox its chain-storerivals, is moving to Brooklyn, whereit will focus on selling office furni-ture and supplies directly to busi-nesses.

“When we examined our busi-ness,we looked at our retail sales de-clining and our commercial salesgrowing, and it just made sense tofind a location conducive to growingthe latter,” says Robert Peck, thecompany’s president.

The move comes in the face ofgrowing competition for retail cus-tomers from big chains like Staples,which has 11 outlets in Queens

alone and boasts large,richly stockedstores. Retail sales make up 33% ofPeck’s $5 million in annual revenue,down from 60% 25 years ago.

“It’s been difficult for an organi-zation like theirs to compete withStaples and stores of that nature,”says Joyce Moy, director of businessand community development at La-Guardia Community College. “Be-cause of space, they don’t have the

variety and inventory that a storelike Staples might have.”

Even Peck’s business-to-busi-ness operation was hobbled by thecompany’s 23,000-square-footMain Street site, where the drive-

way was too small for tractor trailers.Meanwhile, property values in thearea kept rising, adding to the pres-sure on Mr.Peck to cash in his chips.

Several years ago, he even wentso far as to hire an architect to drawup plans to develop an office towerand apartment building on the site.But in the end,Mr.Peck decided theventure was too risky. “I thought,who am I kidding?”he says.“I’m nota builder.”

Big investmentinstead mr. peck sold the site inApril and two months later signed alease for a 13,000-square-foot of-fice/warehouse space on JamaicaAvenue in Cypress Hills, Brooklyn.So far, he’s invested hundreds ofthousands of dollars in reconfigur-ing and furnishing the space. Healso purchased a new computer sys-tem that will make it easier to sched-ule deliveries and track inventory,among other things.

Going forward,Mr.Peck plans tocontinue selling printer cartridges,envelopes and other office suppliesto his 800 active commercial ac-counts. He reckons his new, better-configured space will allow him toincrease the total volume of his in-

ventory by around20%. Meanwhile, bymaking his purchasesthrough a cooperativethat includes 400 in-dependent office sup-ply stores, he reckonshe can handily com-pete with the chains onprice.

“The office supplybusiness is our breadand butter,” he says.“We’re never going towalk away from thatbusiness.” Instead, heplans to build on thatline of business by sell-ing more office furni-ture and office designservices in his newquarters.

Mr. Peck, whospent two years as a copywriter at anadvertising agency before enteringthe family business at age 24, plansto promote the retooled enterprisevia a new ad campaign using directmail and newspaper inserts.

Meanwhile,he won’t be abandon-ing retailing entirely. The companywill continue to operate its 1,540-square-foot outlet on Myrtle Avenue

in Ridgewood,Queens,which bringsin 6% of Peck’s revenues.

In the future, there may even beothers.

“If I see an opportunity in anoth-er area where I think it could work,we will open up another store,” Mr.Peck says.


Faced with big-box competition, Peck’s focuses on servingbusiness accounts

Stationer shutters retail flagship


BY HILARY POTKEWITZ

More than 100 busi-nesses in parts of Ja-maica and Wood-side in Queens haveyet to recover from

flooding caused by the Aug. 8 thun-derstorms that triggered disrup-tions across the city. Business own-ers say that flooding has become achronic problem in the area, andthey insist that something needs tobe done.

“I can’t even go into it,” says IrenePosner, vice president of sales andoperations for Classique Perfumes,a perfume and essential oil manu-facturer on Archer Avenue. “Just asI was about to get up and running af-ter the July flooding,we had this one[in August].”

Ms. Posner has yet to tally thedamages but estimates she’s losthundreds of thousands of dollars.Each time the area floods, she has tothrow out her entire inventory andstart from scratch.

In response to merchants’ pleas,

several local politicians swung intoaction last week. Rep. Joseph Crow-ley joined local City Council mem-bers Eric Gioia, Leroy Comrie,David Weprin, James Gennaro andThomas White in calling for an in-vestigation into the persistentflooding of their Queens neighbor-hoods.

“I’m a little frustrated thatFEMA hasn’t come out to Queensyet,” says Mr. Comrie. “We’ve hadthe three heaviest rainstorms of theyear flooding out businesses in mydistrict, and we need to start work-ing on how to deal with this flash-flood phenomenon.”

Rising water tabledata from the city’s Departmentof Environmental Protection seemto confirm the chronic nature of theproblem. DEP studies reveal thatthe water table beneath Queens hasbeen rising steadily since the 1990s.At the Parsons-Archer Avenue sub-way station and at York College inJamaica, for example, Mr. Comrienotes that pumps are currently run-ning 24 hours a day.

Council members have beenpushing for improvements to thearea’s sewer system that would betied to the development of down-town Jamaica.

Any long-term solution wouldcertainly be welcomed at the Qual-

ity Inn on 94th Avenue and 143rdStreet in Jamaica. The hotel took inabout 10 feet of water in the floodsthat rippled through the area in July,and Manager Nikul Patel still hasnot been able to reopen.

Business owners and the GreaterJamaica Development Corp. aretrying to organize a meeting withthe City Council and the DEP,where owners like Ms. Posner andMr.Patel can testify about the recur-ring problem.

A hearing with city officialscouldn’t come soon enough for Ms.Posner. Classique Perfumes was at-tracted to Queens in the 1980s bythe city’s Industrial Relocation andRenovation Program.

“They want to bring you to thisarea to build it up and provide jobs,and then they just drop you herewithout a paddle,” she says.

The company owns its 7,500-square-foot building and a 2,000-square-foot mezzanine/showroom,bought with the help of tax breaksprovided under the relocation pro-gram. Moving out is not an option,though Ms.Posner admits that late-ly she’s been nostalgic for her olddigs.

“We used to be located in LongIsland City, which did not flood, bythe way,” she says.


Neighborhood Journal

Flooding leaves Queensbusinesses up the creekOwners join with local politicians to call for investigation,long-term solution

IN A NUTSHELL

PECK’SFOUNDED 1929

EMPLOYEES 20 (after the move)

BEST-SELLING B-TO-B PRODUCTcopy paper, $31.99 a case (10 reams)

BEST-SELLING RETAIL PRODUCTcopy paper, $3.99 a ream

ROBERT PECK says his firm won’t leave the office supply business.

buck

enn

is

THE CRAIN’S BEAT SHEETEDITORSGREG DAVIDEDITORe-mail: [email protected] charge of all editorial operationsfor the paper and related products.

RICHARD BARBIERIMANAGING EDITOR e-mail: [email protected] paper’s day-to-day functions.

VALERIE BLOCKDEPUTY MANAGING EDITORe-mail: [email protected] “New York, New York”column and other stories.

ERIK IPSENDEPUTY MANAGING EDITOR e-mail: [email protected] small business columns and special reports.

CARMEN FLEETWOODASSISTANT MANAGING EDITOR e-mail: [email protected] special reports and Crain’s HealthPulse.

ROBERT HORDTASSISTANT MANAGING EDITOR e-mail: [email protected] special reports and other stories.

REPORTERSAARON ELSTEINSENIOR REPORTERe-mail: [email protected] Wall Street.

LISA FICKENSCHERSENIOR REPORTERe-mail: [email protected] tourism, restaurants, hotels.

MATTHEW FLAMMSENIOR REPORTERe-mail: [email protected] media and entertainment.

TOM FREDRICKSONSENIOR REPORTERe-mail: [email protected]

Covers the banking and energy industries and the New York economy.

SAMANTHA MARSHALLSENIOR REPORTERe-mail: [email protected] education, and internationalbusiness and trade.

ANNE MICHAUDSENIOR REPORTERe-mail: [email protected] politics and government,works on Crain’s Insider newsletter.

MIRIAM KREININ SOUCCARSENIOR REPORTERe-mail: [email protected] the business of arts and culture.

THERESA AGOVINOREPORTERe-mail: [email protected] commercial real estate.

BARBARA BENSONREPORTERe-mail: [email protected] on Health Pulse newsletter.

ELISABETH BUTLER REPORTERe-mail: [email protected] retail and apparel.

ERIK ENGQUISTREPORTERe-mail: [email protected] politics and government,works on Crain’s Insider newsletter.

AMANDA FUNG REPORTER e-mail: [email protected] technology and telecom.

HILARY POTKEWITZREPORTERe-mail: [email protected] legal issues and transportation.

GALE SCOTTREPORTERe-mail: [email protected] hospitals and insurers,works on Health Pulse newsletter.

CNYB 08-20-07 A 25 8/16/2007 1:54 PM Page 1

Notice of Formation of AJA Group, LLC. Arts.of Org. filed with NY Dept. of State on 6/28/07.Office location: NY County. Secy. of State designated as agent of LLC upon whomprocess against it may be served and shallmail process to the principal businessaddress of the LLC: c/o CorpDirect Agents,Inc., 225 W. 34th St., Ste. 910, NY, NY 10122,registered agent upon whom process may be served. Purpose: any lawful activity.

Notice of Qualification of CGDO, LLC.Authority filed with NY Dept. of State on6/15/07. Office location: NY County. Principalbusiness address: 1266 E. Main St., 7th Fl.,Stamford, CT 06902. LLC formed in Delaware(DE) on 7/21/06. NY Secy. of State designatedas agent of LLC upon whom process againstit may be served and shall mail process to: CT Corporation System, 111 8th Ave., NY, NY10011. DE address of LLC: c/o The CorporationTrust Co., 1209 Orange St., Wilmington, DE19801. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of Chilton StrategicValue Partners II, L.P. Authority filed with NYDept. of State on 6/19/07. Office location: NYCounty. Principal business address: 1266 E.Main St., 7th Fl., Stamford, CT 06902. LPformed in Delaware (DE) on 3/11/05. NY Secy.of State designated as agent of LP upon whomprocess against it may be served and shallmail process to: c/o CT Corporation System,111 8th Ave., NY, NY 10011, registered agentupon whom process may be served. DEaddress of LP: 1209 Orange St., Wilmington,DE 19801. Name/address of each genl. ptr.available from NY Secy. of State. Cert. of LPfiled with DE Secy. of State, 401 Federal St.,Dover, DE 19901. Purpose: any lawful activity.

Notice of Qualification of D. E. Shaw AQ-SPSeries 4-09, L.L.C. Authority filed with NYDept. of State on 6/13/07. Office location: NYCounty. LLC formed in Delaware (DE) on10/26/06. NY Secy. of State designated asagent of LLC upon whom process against itmay be served and shall mail process to: D.E. Shaw & Co., L.P., 120 W. 45th St., 39th Fl.,Tower 45, NY, NY 10036, Attn: Bertrand C.Fry, General Counsel, registered agent uponwhom process may be served. DE address ofLLC: 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State, 401Federal St., Dover, DE 19901. Purpose: anylawful activity.

Notice of Qualification of D. E. Shaw CAQ-SPSeries 2-01, L.L.C. Authority filed with NYDept. of State on 6/14/07. Office location: NYCounty. LLC formed in Delaware (DE) on6/9/06. NY Secy. of State designated as agentof LLC upon whom process against it may beserved and shall mail process to: D. E. Shaw& Co., L.P., 120 W. 45th St., 39th Fl., Tower45, NY, NY 10036, Attn: Bertrand C. Fry,General Counsel, registered agent uponwhom process may be served. DE address ofLLC: 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State,401 Federal St., Dover, DE 19901. Purpose:any lawful activity.

Notice of Qualification of D. E. Shaw CH-SPSeries 2-06 (C), L.L.C. Authority filed with NYDept. of State on 6/14/07. Office location: NYCounty. LLC formed in Delaware (DE) on5/24/06. NY Secy. of State designated asagent of LLC upon whom process against itmay be served and shall mail process to: D.E. Shaw & Co., L.P., 120 W. 45th St., 39th Fl.,Tower 45, NY, NY 10036, Attn: Bertrand C.Fry, General Counsel, registered agent uponwhom process may be served. DE address ofLLC: 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State, 401Federal St., Dover, DE 19901. Purpose: anylawful activity.

Notice of Qualification of AGMB 400 Mineola,L.L.C. Authority filed with NY Dept. of Stateon 7/5/07. Office location: NY County. LLCformed in Delaware (DE) on 5/4/07. NY Secy.of State designated as agent of LLC uponwhom process against it may be served andshall mail process to: c/o CT CorporationSystem, 111 8th Ave., NY, NY 10011, registered agent upon whom process may beserved. DE address of LLC: The CorporationTrust Co., 1209 Orange St., Wilmington, DE19801. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Dover, DE 19901.Purpose: any lawful activity.


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Notice of Qualification of CEA AutumnManagement, LLC, App. for Auth. filedSec'y of State (SSNY) 5/11/07. Office location:NY County. LLC org. in DE 4/3/07. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNYshall mail copy of process to 101 E. KennedyBlvd., Ste. 3300, Tampa, FL 33602. DE officeaddr.: c/o Corp. Creations Network, 1308Delaware Ave., Wilmington, DE 19806. Cert. ofForm. on file: SSDE, Townsend Bldg., Dover,DE 19901. Purpose: any lawful activities.

NOTICE OF FORMATION of Queen of HarlemLLC. Arts. of Org. filed with Secy. of State ofNY (SSNY) on 10/05/06. Office location:New York. SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process to: Cinotti& Buck, 50 Broad Street, Ste. 1911, NY, NY10004. Principal business location: 287Edgecombe Ave., Ste. 1C, NY, NY 10031.Purpose: Any lawful act.

Notice of Qualification of RCPI 30 ROCK22234849, L.L.C. Authority filed with Secy of State of NY (SSNY) on 06/18/07. Officelocation: New York County. LLC formed inDelaware (DE) on 06/05/07. SSNY designatedas agent of LLC upon whom process againstit may be served. SSNY shall mail processto: National Registered Agents, Inc., 875Avenue of the Americas, Ste 501, New York,NY 10001. NRAI is Registered Agent as well.Address required to be maintained in homejurisdiction: 160 Greentree Drive, Ste 101,Dover, DE 19904. Arts of Org filed with Secyof State, Div of Corporations, John G.Townsend Bldg., Federal & Duke of YorkStreets, P.O. Box 898, Dover, DE 19903.Purpose: Any lawful purpose.

Notice of Formation of Ascend TC, LLC. Arts.of Org. filed with Secy. of State of N.Y. (SSNY)on 6/25/07. Office location: NY County. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNY shallmail process to: Corporation ServiceCompany, 80 State St., Albany, NY 12207.Purpose: any lawful activity.

Notice of Formation of BLUE SEA CONSTRUCTION CO. LLC. Arts. of Org. filedwith Secy. of State of N.Y. (SSNY) on3/17/1999 as amended. Office location: NYCounty. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to: Three Park Avenue,NY, NY 10016. Purpose: any lawful activity.

Notice of Qualification of Mount Daly Partners,LLC. Authority filed with Secy. of State of N.Y.(SSNY) on 7/6/07. Office location: NY County.Principal business location: c/o Sopris CapitalAssociates, LLC, 350 Park Ave., 24th Fl., NY,NY. LLC formed in Delaware (DE) on 5/31/07.SSNY designated as agent of LLC upon whomprocess against it may be served. SSNY shallmail process to: c/o Corporation ServiceCompany, 80 State St., Albany, NY 12207. DEaddress of LLC: 2711 Centerville Rd., Ste.400, Wilmington, DE 19808. Arts. of Org. filedwith DE Secy. of State, 401 Federal St., Ste. 4,Dover, DE 19901. Purpose: any lawful activity.

Notice of Qualification of PVE Associates, LLC.Authority filed with Secy. of State of N.Y.(SSNY) on 7/11/07. Office location: NYCounty. Principal business location: 401Broadway, 24th Fl., NY, NY 10013. LLCformed in Delaware (DE) on 7/3/07. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNY shallmail process to: c/o Corporation ServiceCompany, 80 State St., Albany, NY 12207. DEaddress of LLC: 2711 Centerville Rd., Ste.400, Wilmington, DE 19808. Arts. of Org. filedwith DE Secy. of State, 401 Federal St., Ste. 4,Dover, DE 19901. Purpose: any lawful activity.

Notice of formation of STEPHEN R. RAMSAYDMD, P.L.L.C. a NYS LLC Formation filedwith SSNY on 03/21/07. Off. Loc.: NewYork Co. SSNY designated as agt. of LLC,upon whom process may be served. SSNYshall mail copy of process to: The LLC, 257Lexington Avenue, New York, NY 10016.Purpose: Any Lawful purposes.

Notice of Qualification of William JenningsBryan Group, LLC. Authority filed with NYDept. of State on 6/22/07. Office location: NYCounty. LLC formed in New Jersey (NJ) on7/31/06. NY Secy. of State designated as agentof LLC upon whom process against it may beserved and shall mail process to: 39 LexingtonCircle, Matawan, NJ 07747. NJ address of theLLC: 100 Canal Pointe Blvd., Ste. 108,Princeton, NJ 08540. Arts. of Org. filed withNJ State Treasurer, 225 W. State St., Trenton,NJ 08608. Purpose: any lawful activity.

1 CONVENT REALTY, LLC, a domesticLimited Liability Company (LLC) filed with theSec of State of NY (SSNY) on 6/28/07. NYoffice Location: NEW YORK County. SSNY isdesignated as agent upon whom processagainst the LLC may be served. SSNY shallmail a copy of any process against the LLCserved upon him/her to MR. MICHAEL ARYEH,619 WEST 54TH STREET, NEW YORK, NY10019. General purposes.

Notice of Formation of 554 East 82 LLC. Arts.of Org. filed with Secy. of State of N.Y. (SSNY)on 7/10/07. Office location: NY County. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNY shallmail process to principal business location:c/o The LLC, 151 E. 81st St., Ste. 1E, NY, NY10028. Purpose: any lawful activity.

Notice of Formation of EBQ EIS, LLC. Arts. ofOrg. filed with NY Dept. of State on 4/2/07.Office location: NY County. Secy. of State designated as agent of LLC upon whomprocess against it may be served and shallmail process to the principal business addressof the LLC: 1954 Flatbush Ave., Brooklyn, NY11234. Purpose: any lawful activity.

THE WEINBERG AREYS COVE, LLC, adomestic Limited Liability Company (LLC)filed with the Sec of State of NY (SSNY) on6/22/07. Office Location: NEW YORK County.SSNY is designated as agent upon whomprocess against the LLC may be served. SSNYshall mail a copy of any process against theLLC served upon him/her to THE LLC, 514EAST 89TH STREET, NEW YORK, NY 10128.General purposes.

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Notice of Formation 441 East 57th Street LLCart. of org. filed Secy. of State NY (SSNY)10/31/05. Off. loc. in NY Co. SSNY designatedas agent of LLC upon whom process may beserved. SSNY shall mail copy of process to:Flank Management LLC, Attn: Jonathan Kully,548 West 28th Street, NY, NY 10022. Purpose:Any lawful purpose.

Notice of Qualification of AG Diversified Credit Strategies GP LLC. Authority filed withSecy. of State of N.Y. (SSNY) on 7/25/07.Office location: NY County. Principal businesslocation: 245 Park Avenue, 26th Fl., NY, NY10167. LLC formed in Delaware (DE) on6/21/07. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to: c/o CorporationService Company (CSC), 80 State Street,Albany, NY 12207. DE address of LLC: c/oCSC, 2711 Centerville Road, Wilmington,DE 19808. Arts. of Org. filed with DE Secy.of State, Townsend Bldg., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of Arnhold and S.Bleichroeder Advisers Inc. DiversifiedInternational Equity Fund LLC, App. for Auth.filed Sec'y of State (SSNY) 5/17/07. Officelocation: NY County. LLC org. in DE 8/6/02.SSNY designated as agent of LLC uponwhom process against it may be served.SSNY shall mail copy of process to Attn:Mark Goldstein, 1345 Ave of the Americas,NY, NY 10105. DE office addr.: c/o CTC, 1209Orange St., Wilmington, DE 19801. Cert. ofForm. on file: SSDE, Townsend Bldg., Dover,DE 19901. Purpose: any lawful activities.

Notice of Qualification of BlackstoneMezzanine Capital Commitment Partners IIL.P. Authority filed with NY Dept. of Stateon 6/1/07. Office location: NY County.Principal business address: 345 Park Ave.,NY, NY 10154. LP formed in Delaware (DE)on 5/27/05. NY Secy. of State designated asagent of LP upon whom process against itmay be served and shall mail process to:c/o CT Corporation System, 111 8th Ave.,NY, NY 10011, registered agent upon whomprocess may be served. DE address of LP:c/o The Corporation Trust Co., 1209 OrangeSt., Wilmington, DE 19801. Name/addressof genl. ptr. available from NY Secy. ofState. Cert. of LP filed with DE Secy. ofState, 401 Federal St., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of Blackstone RealEstate Acquisitions III L.L.C. Authority filedwith NY Dept. of State on 6/1/07. Officelocation: NY County. Principal businessaddress: 345 Park Ave., NY, NY 10154. LLCformed in Delaware (DE) on 2/19/99. NYSecy. of State designated as agent of LLCupon whom process against it may be servedand shall mail process to: c/o CT CorporationSystem, 111 8th Ave., NY, NY 10011, registered agent upon whom process may be served. DE address of LLC: c/o TheCorporation Trust Co., 1209 Orange St.,Wilmington, DE 19801. Arts. of Org. filed withDE Secy. of State, 401 Federal St., Dover, DE19901. Purpose: any lawful activity.

Notice of Qualification of Chickasaw CapitalManagement LLC, App. for Auth. filed Sec'y ofState (SSNY) 4/3/07. Office location: NY County.LLC org. in DE 5/29/03. SSNY designated asagent of LLC upon whom process against itmay be served. SSNY shall mail copy ofprocess to 277 West End Ave., NY, NY10023. DE office addr.: c/o CTC, 1209Orange St., Wilmington, DE 19801. Cert. ofForm. on file: SSDE, Townsend Bldg., Dover,DE 19901. Purpose: any lawful activities.

Notice of Qualification of Credit Suisse GTAAGlobal Macro Co-Investors, LP. Authority filedwith Secy. of State of N.Y. (SSNY) on 7/11/07.Office location: NY County. LP formed inDelaware (DE) on 5/4/07. SSNY designated asagent of LP upon whom process against itmay be served. SSNY shall mail process to principal business location: c/o DLJ LBOPlans Management Corporation, 11 MadisonAve., NY, NY 10010. DE address of LP: c/oCorporation Service Co., 2711 Centerville Rd.,Ste. 400, Wilmington, DE 19808. Name/addressof each genl. ptr. available from SSNY. Cert. ofLP filed with DE Secy. of State, 401 Federal St.,Dover, DE 19901. Purpose: any lawful activity.

Notice of Qualification of Domino's PizzaFranchising LLC. Authority filed with NYDept. of State on 3/22/07. Office location:NY County. Principal business address: 24Frank Lloyd Wright Dr., Ann Arbor, MI48106. LLC formed in Delaware (DE) on3/2/07. NY Secy. of State designated asagent of LLC upon whom process against itmay be served and shall mail process to:c/o CT Corporation System, 111 8th Ave.,NY, NY 10011, registered agent upon whomprocess may be served. DE address of LLC:1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State,401 Federal St., Dover, DE 19901. Purpose:any lawful activity.

Notice of Qualification of First Eagle Value InBiotechnology Fund (QP), LP, App. for Auth.filed Sec'y of State (SSNY) 7/7/05. Officelocation: NY County. LP org. in DE 7/5/05.SSNY designated as agent of LP upon whomprocess against it may be served. SSNY shallmail copy of process to Attn: Daniel Declue,1345 Ave of the Americas, NY, NY 10105. DEoffice addr.: c/o CSC, 2711 Centerville Rd.,Wilmington, DE 19808. Cert. of LP on file:SSDE, Townsend Bldg., Dover, DE 19901.Name/addr. of each gen. ptr. avail. at SSNY.Purpose: any lawful activities.

Notice of Formation of Henpecked LLC. Arts.of Org. filed with Secy. of State of N.Y. (SSNY)on 7/24/07. Office location: NY County. SSNYdesignated as agent of LLC upon whom processagainst it may be served. SSNY shall mailprocess to principal business location: 99Suffolk St., NY, NY 10002. Purpose: anylawful activity.

QUATTRO CONSTRUCTION MANAGEMENT,LLC, a domestic Limited Liability Company(LLC). Articles of Organization filed withSecretary of State on 5/29/07. NY Officelocation: NEW YORK County. Secretary ofState is designated as agent upon whomprocess against the LLC may be served.Secretary of State shall mail a copy of anyprocess against the LLC served uponhim/her to DAVID LENEFSKY, ESQ., 1 COLUMBUS PLACE, S48C, NEW YORK,NY 10019. General purposes.

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Notice of Qualification of Normandy NVWestchester Owner, LLC. Authority filed withSecy. of State of N.Y. (SSNY) on 6/29/07.Office location: NY County. LLC formed inDelaware (DE) on 6/12/07. SSNY designatedas agent of LLC upon whom process against it may be served. SSNY shall mail process to:c/o CT Corporation System, 111 8th Ave., NY,NY 10011, registered agent upon whomprocess may be served. DE address of LLC:c/o The Corporation Trust Company, 1209Orange St., Wilmington, DE 19801. Arts. ofOrg. filed with DE Secy. of State, 401 FederalSt., Ste. 4, Dover, DE 19901. Purpose: realestate investment.

Notice of formation of DaniCon PharmaConsulting, LLC. LLC articles were filed with theSec. of State of New York (SSNY) on 6/14/07.N.Y. Office location: NY County. SSNY hasbeen designated as agent upon whom processagainst it may be served. SSNY shall processto principal business address : The LLC, 207West 98th St., #2AA, New York, NY 10025.Purpose: any lawful activity.

Name of LLC: JR Grafik Design LLC. Arts. ofOrg. filed with NY Dept. of State on 5/31/2007.Office location: NY County. Secy. of State designated as agent of LLC upon whomprocess against it may be served and shallmail process to: c/o Business Filings Inc., 187 Wolf Rd., Ste. 101, Albany, NY 12205,registered agent upon whom process may beserved. Term: until 12/31/2047. Purpose: anylawful activity.

PHOENIX INVESTMENTS AND DEVELOPMENTLLC, a domestic Limited Liability Company(LLC) filed with the Sec of State of NY(SSNY) on 6/07/07. NY office Location:NEW YORK County. SSNY is designated asagent upon whom process against the LLCmay be served. SSNY shall mail a copy ofany process against the LLC served uponhim/her to DESENA & ASSOCIATES, LLP,225 BROADWAY, STE. 901, NEW YORK, NY10007. General purposes.

Notice of Qualification of CRP/Extell 99 WestSide LLC. Authority filed with Secy. of Stateof NY (SSNY) on 3/22/07. Office location:NY County. LLC formed in Delaware (DE)on 3/6/07. SSNY designated as agent ofLLC upon whom process against it may beserved. SSNY shall mail process to: c/o CTCorporation System, 111 Eighth Ave, NY, NY10011. Address to be maintained in DE: c/oThe Corporation Trust Company, 1209 OrangeSt., Wilmington, DE 19801. Arts. of Org.filed with DE Secy. Of State, 401 FederalSt., Ste 4., Dover, DE 19901. Purpose: anylawful activities.

Notice of Qualification of D. E. Shaw AlloyPower Acquisition Holdings, L.L.C. Authorityfiled with NY Dept. of State on 6/14/07. Officelocation: NY County. LLC formed in Delaware(DE) on 3/30/06. NY Secy. of State designatedas agent of LLC upon whom process againstit may be served and shall mail process to: D.E. Shaw & Co., L.P., 120 W. 45th St., 39th Fl.,Tower 45, NY, NY 10036, Attn: Bertrand C.Fry, General Counsel, registered agent uponwhom process may be served. DE address ofLLC: 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State, 401Federal St., Dover, DE 19901. Purpose: anylawful activity.

Notice of Formation of YA ASSOCIATES, LLC.Arts. of Org. filed with Secy. of State of N.Y.(SSNY) on 7/13/1999. Office location: NYCounty. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to: Three Park Avenue,NY, NY 10016. Purpose: any lawful activity.

Notice of Qualification of D. E. Shaw CF-SPSeries 5-08 (C), L.L.C. Authority filed with NYDept. of State on 6/14/07. Office location: NYCounty. LLC formed in Delaware (DE) on12/19/06. NY Secy. of State designated asagent of LLC upon whom process against itmay be served and shall mail process to: D.E. Shaw & Co., L.P., 120 W. 45th St., 39th Fl.,Tower 45, NY, NY 10036, Attn: Bertrand C.Fry, General Counsel, registered agent uponwhom process may be served. DE address ofLLC: 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State, 401Federal St., Dover, DE 19901. Purpose: anylawful activity.

NOTICE OF FORMATION OF HARMONEX LLC,Arts. Of Org. filed with SSNY on 03/08/01.Off. Loc.: NY County, SSNY designated asagent of LLC upon whom process against itmay be served. SSNY shall mail a copy ofprocess to: The LLC, 161 Madison Ave.,12th/FL, NewYork, NY 10016. Purpose: toengage in any lawful act.

Notice of Qualification of D. E. Shaw AQ-SPSeries 3-06, L.L.C. Authority filed with NYDept. of State on 6/13/07. Office location: NYCounty. LLC formed in Delaware (DE) on7/18/06. NY Secy. of State designated asagent of LLC upon whom process against itmay be served and shall mail process to: D.E. Shaw & Co., L.P., 120 W. 45th St., 39th Fl.,Tower 45, NY, NY 10036, Attn: Bertrand C.Fry, General Counsel, registered agent uponwhom process may be served. DE address ofLLC: 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State, 401Federal St., Dover, DE 19901. Purpose: anylawful activity.

Notice of Qualification of EB Personal RiskManagement Solutions, LLC. Authority filedwith NY Dept. of State on 4/20/07. Office location: NY County. LLC formed in Delaware(DE) on 3/2/07. NY Secy. of State designatedas agent of LLC upon whom process againstit may be served and shall mail process to: c/oCT Corporation System, 111 8th Ave., NY, NY10011, registered agent upon whom processmay be served. Principal business address: 6E. 42nd St., NY, NY 10017. Arts. of Org. filedwith DE Secy. of State, Townsend Bldg., Dover, DE 19901. Purpose: any lawful activity.

45 STONE STREET LLC, a domestic LimitedLiability Company (LLC) filed with the Secof State of NY (SSNY) on 4/14/05. NYoffice Location: NEW YORK County. SSNYis designated as agent upon whom processagainst the LLC may be served. SSNY shallmail a copy of any process against the LLCserved upon him/her to THE LLC, 2221ROYCE STREET, BROOKLYN, NY 11234.General purposes.

Notice of Formation of AEROSCAPE-NYCLLC. Arts. of Org. filed with Secy. of State ofN.Y. (SSNY) on 6/14/07. Office location: NYCounty. SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process to: DLAPiper US LLP, 1251 Avenue of the Americas,NY, NY 10020, Attn: Xavier Jones. Purpose:any lawful activity.

Notice of Qualification of Arden InstitutionalAdvisers II MS Feeder, L.P., App. for Auth. filedSec'y of State (SSNY) 5/18/07. Office location:NY County. LP org. in DE 4/16/07. SSNYdesignated as agent of LP upon whomprocess against it may be served. SSNY shallmail copy of process to Attn: Averell H.Mortimer, 375 Park Ave., 32nd Fl., NY, NY10152. DE office addr.: c/o CSC, 2711Centerville Rd., Wilmington, DE 19808. Cert.of LP on file: SSDE, Townsend Bldg., Dover,DE 19901. Name/addr. of each gen. ptr. avail.at SSNY. Purpose: any lawful activities.

Notice of Qualification of Battery Park HighYield Opportunity Fund, L.P., App. for Auth.filed Sec'y of State (SSNY) 6/4/01. Officelocation: NY County. LP org. in DE 5/30/01.SSNY designated as agent of LP uponwhom process against it may be served.SSNY shall mail copy of process to 2 WorldFinancial Ctr., Bldg. B, NY, NY 10281. DEoffice addr.: c/o CSC, 2711 Centerville Rd.,Wilmington, DE 19808. Cert. of LP on file:SSDE, Townsend Bldg., Dover, DE 19901.Name/addr. of each gen. ptr. avail. at SSNY.Purpose: any lawful activities.

Notice of Qualification of BMOF I LLC, App.for Auth. filed Sec'y of State (SSNY) 12/3/04.Office location: NY County. LLC org. in DE11/30/04. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail copy of process to 345Park Ave., NY, NY 10154. DE office addr.:c/o CSC, 2711 Centerville Rd., Wilmington,DE 19808. Cert. of Form. on file: SSDE,Townsend Bldg., Dover, DE 19901. Purpose:any lawful activities.

NOTICE OF FORMATION of PowerPlaysCoaching, LLC. Arts. Of Org. filed with Secy.Of State of NY (SSNY) on 06/27/07. Officelocation: New York County. SSNY designatedas agent of LLC upon whom process againstit may be served. SSNY shall mail process to:The LLC, 2576 Broadway, #243, New York,NY 10025. Purpose: any lawful activity.

Notice of Qualification of DB SAM LLC.Authority filed with NY Dept. of State on 7/5/07.Office location: NY County. LLC formed inDelaware (DE) on 6/28/07. NY Secy. of Statedesignated as agent of LLC upon whom processagainst it may be served and shall mail processto: 1345 Ave. of the Americas, 46th Fl., NY, NY10105, principal business address of the LLC.DE address of LLC: The Corporation Trust Co.,1209 Orange St., Wilmington, DE 19801. Arts.of Org. filed with DE Secy. of State, Div. ofCorps., Townsend Bldg., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of CHANNEL PARTNERS, LP. Authority filed with Secy. ofState of N.Y. (SSNY) on 12/24/01. Officelocation: NY County. LP formed in Delaware(DE) on 12/10/01. SSNY designated asagent of LP upon whom process against itmay be served. SSNY shall mail process to:The LP, 153 E. 53rd St., 48th Fl., NY, NY 10022.DE address of LP: 15 East North St., Dover,DE 19901. Name/address of each genl. ptr.available from SSNY. Cert. of LP filed with DESecy. of State, PO Box 898, Dover, DE 19903.Purpose: any lawful activity.

Notice of Qualification of Traxis EmergingMarkets Opportunities Onshore Fund GP LLC.Authority filed with Secy. of State of N.Y.(SSNY) on 6/25/07. Office location: NYCounty. Principal business location: 600 FifthAve., 20th Fl., NY, NY 10020. LLC formed inDelaware (DE) on 4/30/07. SSNY designatedas agent of LLC upon whom process against it may be served. SSNY shall mail process to:c/o Corporation Service Company (CSC), 80State St., Albany, NY 12207, registered agentupon whom process may be served. DEaddress of LLC: CSC, 2711 Centerville Road,Wilmington, DE 19808. Cert. of Form. filedwith DE Secy. of State, Townsend Bldg., Dover,DE 19901. Purpose: any lawful activity.

Notice of Qualification of Chester 11 ParkAvenue, L.L.C. Authority filed with Secy. ofState of N.Y. (SSNY) on 5/22/07. Office location: NY County. LLC formed in Delaware(DE) on 5/18/07. SSNY designated as agentof LLC upon whom process against it may beserved. SSNY shall mail process to: c/o TheCheshire Group L.L.C., 475 Fifth Ave., 12thFl., NY, NY 10017, Attn: Ms. Susan Hewitt. DE address of LLC: United Corporate Services,Inc., 874 Walker Rd., Ste. C, Dover, DE19904. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Ste. 4, Dover, DE19901. Purpose: any lawful activity.

Notice of Qualification of Dunlop GeneralPartner, LLC, App. for Auth. filed Sec'y ofState (SSNY) 7/29/04. Office location: NYCounty. LLC org. in DE 7/28/04. SSNY designated as agent of LLC upon whomprocess against it may be served. SSNYshall mail copy of process to 39 Broadway,36th Fl., NY, NY 10006. DE office addr.: c/oCSC, 2711 Centerville Rd., Wilmington, DE19808. Cert. of Form. on file: SSDE, TownsendBldg., Dover, DE 19901. Purpose: any lawfulactivities.

Notice of Qualification of R.M. SincerbeauxCapital Management, LLC, App. for Auth. filedSec'y of State (SSNY) 4/11/07. Office location:NY County. LLC org. in DE 4/10/07. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNY shallmail copy of process to Attn: Richard M.Sincerbeaux, 525 E. 72nd St., Apt. 39H, NY,NY 10021. DE office addr.: c/o CSC, 2711Centerville Rd., Wilmington, DE 19808. Cert. ofForm. on file: SSDE, Townsend Bldg., Dover,DE 19901. Purpose: any lawful activities.

Notice of Formation of EAI Alternatives LLC.Arts. of Org. filed with NY Dept. of State on5/14/07. Office location: NY County. Secy. ofState designated as agent of LLC uponwhom process against it may be served andshall mail process to the principal businessaddress of the LLC: 5 E. 42nd St., NY, NY10017. Purpose: any lawful activity.

Notice of Qualification of BlackstoneCustomized Commodities Master Fund II L.P.,App. for Auth. filed Sec'y of State (SSNY)3/14/07. Office location: NY County. LP org. inDE 3/13/07. SSNY designated as agent of LPupon whom process against it may be served.SSNY shall mail copy of process to Attn: J.Tomilson Hill, 345 Park Ave., NY, NY 10154.DE office addr.: c/o CSC, 2711 Centerville Rd.,Wilmington, DE 19808. Cert. of LP on file:SSDE, Townsend Bldg., Dover, DE 19901.Name/addr. of each gen. ptr. avail. at SSNY.Purpose: any lawful activities.

Notice of Qualification of Caminus CapitalPartners, LLC, filed under the original nameRye-Vencil Capital, LLC, App. for Auth. filedSec'y of State (SSNY) 2/21/02. Office location:NY County. LLC org. in DE 2/14/02. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNY shallmail copy of process to Attn: Joseph W.Vencil, 51 W. 95th St., NY, NY 10025. DEoffice addr.: c/o CSC, 2711 Centerville Rd.,Wilmington, DE 19808. Cert. of Form. on file:SSDE, Townsend Bldg., Dover, DE 19901.Purpose: any lawful activities.

DAVID GUYER, LLC Articles of Org. filed NYSec. of State (SSNY) 5/1/07. Office in NY Co.SSNY desig. agent of LLC upon whomprocess may be served. SSNY shall mail copyof process to 279 Central Park W., #16B, NY,NY 10024. Purpose: Any lawful purpose.

Notice of formation of Just In Title Agency,LLC. Arts. of Org. filed with the Secy. of Stateof NY (SSNY) on 7/3/07. Office location: NewYork. SSNY designated as agent of LLC uponwhom process against it may be served.SSNY shall mail process to Principal businesslocation: 280 Madison Ave., Suite 705B, NY,NY 10016. Purpose: Any lawful act.

Notice of Qualification of Perseus MarketOpportunity Management, L.L.C. Authorityfiled with NY Dept. of State on 7/18/07. Officelocation: NY County. Principal businessaddress: 2099 Pennsylvania Ave., NW, Ste.900, Washington, DC 20006. LLC formed inDelaware (DE) on 10/2/01. NY Secy. of Statedesignated as agent of LLC upon whomprocess against it may be served and shallmail process to: c/o CT Corporation System,111 8th Ave., NY, NY 10011, registered agentupon whom process may be served. DEaddress of LLC: 1209 Orange St., Wilmington,DE 19801. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Dover, DE 19901.Purpose: all lawful purposes.

Notice of Qualification of D. E. Shaw CompositeSide Pocket Series 4, L.L.C. Authority filedwith NY Dept. of State on 6/14/07. Officelocation: NY County. LLC formed in Delaware(DE) on 9/20/06. NY Secy. of State designatedas agent of LLC upon whom process againstit may be served and shall mail process to: D.E. Shaw & Co., L.P., 120 W. 45th St., 39th Fl.,Tower 45, NY, NY 10036, Attn: Bertrand C.Fry, General Counsel, registered agent uponwhom process may be served. DE address ofLLC: 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State, 401Federal St., Dover, DE 19901. Purpose: anylawful activity.

IN THE US DIST. COURT FOR THE NORTHERNDIST. OF ILL. FREDERICK KAUFMANN Plaintiffv. RONALD KUZON et al. Defendants, 07 C1633 To: Ronald Kuzon and Joshua Kuzon,Defendants for service by publication. TAKENOTICE that Plaintiff, Frederick Kaufmann, hasfiled a Summons and Complaint seeking reliefin this case. The case alleges violations ofsecurities law. You must answer this complaint no later than twenty days afterfinal publication of this notice. Upon failureto do so, Plaintiff will seek default judgment.Contact Plaintiff’s Attorney: Enterprise LawGroup, LLP; 70 W. Madison, #740, Chicago,IL 60602; 312-578-0200; 312-578-0202;Firm ID 40994

Notice of Qualification of Ameriflight, LLC.Authority filed with Secy. of State of N.Y.(SSNY) on 6/28/07. Office location: NYCounty. LLC formed in Nevada (NV) on5/11/05. SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process to: c/o CTCorporation System, 111 8th Ave., NY, NY10011, registered agent upon whom processmay be served. Principal office of LLC: 4700Empire Ave., Burbank, CA 91505. Arts. ofOrg. filed with NV Secy. of State, 202 NorthCarson St., Carson City, NV 89701. Purpose:all lawful purposes.

Notice of Qualification of BREOF BNK2 NewYork LLC. Authority filed with NY Dept. ofState on 8/1/07. Office location: NY County.Principal business address: 3 World FinancialCtr., 3rd Fl., NY, NY 10281. LLC formed inDelaware (DE) on 7/24/07. NY Secy. of Statedesignated as agent of LLC upon whomprocess against it may be served and shallmail process to: c/o CT Corporation System,111 8th Ave., NY, NY 10011. DE address ofLLC: 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State, 401Federal St., Dover, DE 19901. Purpose: anylawful activity.

D BOBER, LLC, a domestic Limited LiabilityCompany (LLC) filed with the Sec of State ofNY (SSNY) on 6/04/07. Office Location: NEWYORK County. SSNY is designated as agentupon whom process against the LLC may beserved. SSNY shall mail a copy of any processagainst the LLC served upon him/her to DAVIDBOBER, 260 WEST 54TH STREET, 39E, NEWYORK, NY 10019. General purposes.

Notice of Qualification of DB Midtown TDRLLC. Authority filed with NY Dept. of State on12/26/06. Office location: NY County. LLCformed in Delaware (DE) on 12/11/06. NYSecy. of State designated as agent of LLCupon whom process against it may be servedand shall mail process to: 1345 Ave. of theAmericas, 46th Fl., NY, NY 10105, principalbusiness address of the LLC. DE address ofLLC: National Corporate Research, Ltd., 615S. DuPont Hwy., Dover, DE 19901. Cert. ofForm. filed with DE Secy. of State, Div. ofCorps., Townsend Bldg., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of GE Westbury HoldingLLC. Authority filed with Secy. of State of N.Y.(SSNY) on 7/11/07. Office location: NYCounty. LLC formed in Delaware (DE) on7/10/07. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to: c/o JPMorganChase Bank, Attn: Diane McGuire, 345 ParkAve., 8th Fl., NY, NY 10154. DE address ofLLC: Corporation Service Company, 2711Centerville Rd., Ste. 400, Wilmington, DE19808. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Ste. 4, Dover, DE19901. Purpose: any lawful activity.

Notice of Qualification of Granite CompaniesLLC. Authority filed with Secy. of State ofNY on 01/24/06. Office loc.: NY Co. LLCformed in Delaware (DE) on 11/07/03. SSNYdesignated as agent upon whom processagainst it may be served and shall mailprocess to the principal business address ofthe LLC: 214 W. 39th Street, NY, NY 10008.DE address of LLC: c/o The CorporationTrust Co., 1209 Orange St., Wilmington, DE19801. Cert. of Form. filed with DE Secy. ofState, 401 Federal St., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of GS Employee Fund2000 Offshore (Corporate), L.P. Authority filedwith Secy. of State of N.Y. (SSNY) on 5/16/07.Office location: NY County. LP formed inCayman Islands (CI) on 8/1/00. SSNY designated as agent of LP upon whom processagainst it may be served. SSNY shall mailprocess to: 85 Broad St., NY, NY 10004. CIaddress of LP: c/o M & C Corporate ServicesLtd., P.O. Box 309GT, Ugland House, SouthChurch St., George Town, Grand Cayman, CI,BWI. Name/address of each genl. ptr. availablefrom SSNY. Cert. of LP filed with Registrar ofExempted LPs, Elizabethan Sq., 4th Fl., PhaseFour, George Town, Grand Cayman, CI.Purpose: any lawful activity.

Notice of Formation of MG Retail LLC. Arts. ofOrg. filed with Secy. of State of NY on 08/26/05.Office loc.: NY Co. SSNY designated asagent upon whom process against it maybe served and shall mail process to: theLLC, 214 W. 39th Street, NY, NY 10008.Purpose: any lawful activity

Notice of Qualification of Municipal Real EstateHoldings, LLC. Authority filed with Secy. ofState of N.Y. (SSNY) on 6/11/07. Office location:NY County. Principal business location: 2929Arch St., 17th Fl., Philadelphia, PA 19104. LLCformed in Delaware (DE) on 4/23/07. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNY shallmail process to: c/o Corporation ServiceCompany (CSC), 80 State St., Albany, NY12207. DE address of LLC: c/o CSC, 2711Centerville Rd., Wilmington, DE 19808. Arts.of Org. filed with DE Secy. of State, 401Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activity.

Notice of Formation of Pinky Wolman DesignsLLC, Art. of Org. filed Sec'y of State (SSNY)7/25/07. Office location: NY County. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNY shallmail copy of process to 15 Park Ave., #11A,NY, NY 10016. Purpose: any lawful activities.



Name of LLC: Regal Digital LLC. Arts. of Org.filed with Secy. of State of NY (SSNY) on1/25/2006. Office location: NY County. SSNYdesignated as agent of LLC upon whomprocess against it may be served and shallmail process to: c/o Andy Ranley, 128 W. 75thSt., Ste. 4B, NY, NY 10023, registered agentupon whom process may be served. Term:until 12/31/2046. Purpose: any lawful activity.


Notice of Qualification of Hygrove Select LP,App. for Auth. filed Sec'y of State (SSNY)1/22/04. Office location: NY County. LP org.in DE 1/21/04. SSNY designated as agent ofLP upon whom process against it may beserved. SSNY shall mail copy of process to399 Park Ave., 4th Fl., NY, NY 10022. DEoffice addr.: c/o CSC, 2711 Centerville Rd.,Wilmington, DE 19808. Cert. of LP on file:SSDE, Townsend Bldg., Dover, DE 19901.Name/addr. of each gen. ptr. avail. at SSNY.Purpose: any lawful activities.

NOTICE OF FORMATION of iRolls MultimediaLLC. Arts. of Org filed with Secy. of State ofN.Y. (SSNY) on 6/14/06. Office location: NYCounty. SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process to: iRollsLLC, 58 W 56th St. #3, NY, NY 10019.Purpose: any lawful activity.

Notice of Formation of National SpecialtyPublications L.L.C. Arts. of Org. filed with Secy.of State of NY (SSNY) on 6/01/2007. Officelocation: New York County. SSNY designatedas agent of LLC upon whom process againstit may be served. SSNY shall mail processto: National Specialty Publications LLC, 425Fifth Ave. Apt.# 46A New York, New York10016. Purpose: any lawful activity.

Name: BROADWAY 41 LLC Art. Of Org. FiledSec. Of State of NY 5/3/07. Off. Loc.: NewYork. Co. SSNY designated as agent uponwhom process against it may be served.SSNY to mail copy of process to The LLCC/CO Bernath & Rosenberg 1430 Broadway,13th Flr. , NY, NY 10018. Purpose: Anylawful activity.

SUSAN TEEGER MEDICAL PRACTICE, PLLCArticles of Org. filed NY Sec. of State (SSNY)5/16/07. Office in NY Co. SSNY desig. agent of LLC upon whom process may be served.SSNY shall mail copy of process to c/oNewhouse & Shey LLP, 3 W. 35th St., 9th Fl.,NY, NY 10001. Purpose: To practice medicine

Notice of Qualification of El-Ad 250 West LLC.Authority filed with NY Dept. of State on6/15/06. Office location: NY County. LLCformed in Delaware (DE) on 5/18/06. NY Secy.of State designated as agent of LLC uponwhom process against it may be served andshall mail process to the principal businessaddress of the LLC: c/o The El-Ad Group Ltd.,575 Madison Ave., 22nd Fl., NY, NY 10022,registered agent upon whom process may beserved. DE address of LLC: The CorporationTrust Co., 1209 Orange St., Wilmington, DE19801. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Dover, DE 19901.Purpose: any lawful activity.


Notice of Qualification of Merrill LynchPurchase Price Investment LLC. Authorityfiled with NY Dept. of State on 7/27/07. Officelocation: NY County. LLC formed in Delaware(DE) on 6/26/07. NY Secy. of State designatedas agent of LLC upon whom process againstit may be served and shall mail process to:225 Liberty St., 2 World Financial Center,South Tower, 7th Fl., NY, NY 10281, principalbusiness address of the LLC. DE address ofLLC: The Corporation Trust Co., 1209 OrangeSt., Wilmington, DE 19801. Arts. of Org. filedwith DE Secy. of State, P.O. Box 898, Dover,DE 19903. Purpose: any lawful activity.

NOTICE OF FORMATION OF LIMITED LIABILITYCOMPANY. NAME: NEWTON INTERNATIONALLLC. Articles of Organization were filed withthe Secretary of State of New York (SSNY)on 04/06/07. Office location: New York County.SSNY has been designated as agent of theLLC upon whom process against it may beserved. SSNY shall mail a copy of process tothe LLC, c/o Newton Hotel, 2528 Broadway,New York, New York 10025, ATTN: LindaTalbert and John Pouliot. Purpose: For anylawful purpose.

Name of LLC: Vegasoul Capital Management,LLC. Authority filed with NY Dept. of State on6/27/07. Office location: NY County. LLCformed in Delaware (DE) on 2/21/07. NY Secy.of State designated as agent of LLC uponwhom process against it may be served andshall mail process to: c/o Business Filings Inc.,187 Wolf Rd., Ste. 101, Albany, NY 12205,registered agent upon whom process may beserved. DE address of LLC: 108 W. 13thSt., Wilmington, DE 19801. Arts. of Org. filedwith DE Secy. of State, 401 Federal St., Dover,DE 19901. Purpose: any lawful act.

Notice of Qualification of Moi-Meme Attire,LLC Authority filed with Sec of State of NY (SSNY) on 6/7/07. Office location: NYCounty. LLC formed in Delaware (DE) on2/13/07. SSNY has been designated asagent upon process against it may be served.SSNY shall mail process to: C/O the LLC,Business Filings Inc, 108 W 13th St,Wilmington, DE 19801. Principal businessaddress: 130 7th Ave., No 340, NY, NY 10011.Purpose: any lawful purpose.


Notice of Qualification of Stadia CapitalPartners (QP), L.P. Authority filed with Secy.of State of NY (SSNY) on 5/1/01. Officelocation: NY County. LP formed in Delaware(DE) on 4/27/01. SSNY designated as agentof LP upon whom process against it may beserved and shall mail process to: 140 E.45th St., 31st Fl., NY, NY 10017. DE addressof the LP: c/o Corporation Service Co., 2711Centerville Rd., Ste. 400, Wilmington, DE19808. Name/address of genl. ptr. availablefrom SSNY. Cert. of LP filed with DE Secy.of State, Federal & Duke of York Sts., Dover,DE 19901. Purpose: any lawful activity.

Notice of Formation of 4SK - 24 St. MarksLLC. Arts. of Org. filed with NY Dept. of Stateon 1/18/07, as amended. Office location: NYCounty. Secy. of State designated as agent ofLLC upon whom process against it may beserved and shall mail process to: DaihwanChoi, 636 6th Ave., Ste. 370, NY, NY 10011,principal business address of the LLC.Purpose: any lawful activity.

Notice of Qualification of GS LVB Advisors,L.L.C. Authority filed with Secy. of State of N.Y.(SSNY) on 5/31/07. Office location: NY County.LLC formed in Delaware (DE) on 2/28/07.SSNY designated as agent of LLC upon whomprocess against it may be served. SSNY shallmail process to: 85 Broad St., NY, NY 10004.DE address of LLC: 1209 Orange St., Wilmington,DE 19801. Cert. of Form. filed with DE Secy.of State, P.O. Box 898, Dover, DE 19903.Purpose: any lawful activity.

NOTICE OF QUALIFICATION OF ClerestoryCapital Advisors LLC. Application for Authorityfiled with the Secy. of State of New York (SSNY)on 4/12/07. N.Y. Office Location: New YorkCounty. LLC formed in Delaware on January 5,2007. SSNY has been designated as agent ofLLC upon whom process against it may beserved and shall mail process to the principalbusiness address of the LLC: 11 East 44thStreet, Suite 1603, New York, NY 10017. DEaddress of LLC: 2711 Centerville Rd., STE400, Wilmington, DE 19808. Arts. of Org. filedwith DE Secy. of State, Division of Corporations,401 Federal Street, Suite 4, Dover, DE 19901.Purpose: any lawful activities.

NOTICE OF FORMATION OF LIMITED LIABILITY COMPANY. NAME: SUSHI-A-ROUND LLC. Articles of Organization werefiled with the Secretary of State of New York(SSNY) on 03/07/07. Office location: NewYork County. SSNY has been designated asagent of the LLC upon whom process againstit may be served. SSNY shall mail a copy ofprocess to the LLC, 17 Ann Street, New York,New York 10038. Purpose: For any lawfulpurpose.

Notice of Qualification of TA Operating LLC.Authority filed with Secy. of State of N.Y.(SSNY) on 6/13/2007. Fictitious name in NYState: TCA Operating LLC. Office location:NY County. Principal business location:24601 Center Ridge Rd., Westlake, OH 44145.LLC formed in Delaware (DE) on 7/8/1993.SSNY designated as agent of LLC uponwhom process against it may be served.SSNY shall mail process to: 400 Centre St.,Newton, MA 02458. DE address of LLC:1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of Asharoken CapitalFund LP. Authority filed with Secy. of State ofN.Y. (SSNY) on 4/18/07. Office location: NYCounty. LP formed in Delaware (DE) on 4/13/07.SSNY designated as agent of LP upon whomprocess against it may be served. SSNY shallmail process to: 801 Second Ave., 8th Fl., NY,NY 10022. DE address of LP: CorporationTrust Center, 1209 Orange St., Wilmington, DE19801. Name/address of each genl. ptr.available from SSNY. Cert. of LP filed withDE Secy. of State, P.O. Box 898, Dover, DE19903. Purpose: all lawful purposes.

Notice of Formation of 159 West 24th PartnersLLC. Arts. of Org. filed with Secy. of State ofN.Y. (SSNY) on 5/29/07. Office location: NYCounty. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to: c/o 159 West24th Street Management LLC, Attn: Eric S.Gray, 900 Broadway, Ste. 402, NY, NY 10003.Purpose: all lawful purposes.

Notice of Qualification of AIREA Capital, LLC.Authority filed with Secy. of State of N.Y.(SSNY) on 6/18/07. Office location: NY County.Principal business location: 115 Broadway,Ste. 403, NY, NY 10006. LLC formed inDelaware (DE) on 4/30/07. SSNY designatedas agent of LLC upon whom process against itmay be served. SSNY shall mail process to:c/o Corporation Service Company, 80 StateSt., Albany, NY 12207. DE address of LLC:2711 Centerville Rd., Ste. 400, Wilmington, DE19808. Arts. of Org. filed with DE Secy. ofState, Townsend Bldg., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of I-DONTICS, LLC.Authority filed with Secy. of State of N.Y.(SSNY) on 6/12/07. Office location: NYCounty. Principal business location: 532 ParkAve., NY, NY 10065. LLC formed in Delaware(DE) on 4/25/07. SSNY designated as agent of LLC upon whom process against it may beserved. SSNY shall mail process to: c/oCorporation Service Company (CSC), 80 StateSt., Albany, NY 12207. DE address of LLC: c/oCSC, 2711 Centerville Rd., Ste. 400,Wilmington, DE 19808. Arts. of Org. filed withDE Secy. of State, PO Box 898, Dover, DE19903. Purpose: any lawful activity.

Notice of Qualification of Lanexa GlobalManagement, LP, filed under the original nameCamber Global Management, LP, App. forAuth. filed Sec'y of State (SSNY) 5/5/06. Officelocation: NY County. LP org. in DE 4/10/06.SSNY designated as agent of LP upon whomprocess against it may be served. SSNY shallmail copy of process to 101 Park Ave., 21stFl., NY, NY 10178. DE office addr.: c/o CTC,1209 Orange St., Wilmington, DE 19801. Cert.of LP on file: SSDE, Townsend Bldg., Dover,DE 19901. Name/addr. of each gen. ptr. avail.at SSNY. Purpose: any lawful activities.

Notice of Formation of Impark Cadman LLC.Arts. of Org. filed with Secy. of State of NY(SSNY) on 3/3/06. Office location: NY County.SSNY designated as agent of LLC upon whomprocess against it may be served and shallmail process to: c/o CT Corporation System,111 8th Ave., NY, NY 10011, registered agentupon whom process may be served. Purpose:any lawful activity.

Notice of Qualification of Investor EducationCollaborative, LLC, App. for Auth. filed Sec'yof State (SSNY) 4/16/04. Office location:NY County. LLC org. in DE 4/1/04. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNYshall mail copy of process to 17 State St.,NY, NY 10004. DE office addr.: c/o CSC,2711 Centerville Rd., Wilmington, DE 19808.Cert. of Form. on file: SSDE, TownsendBldg., Dover, DE 19901. Purpose: any lawful activities.

Notice of Formation of LK 530 LLC. Arts. ofOrg. filed with Secy. of State of N.Y. (SSNY) on 7/18/07. Office location: NY County.Principal business location: 737 Park Ave., NY,NY 10021. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to: c/o CorporationService Company, 80 State St., Albany, NY12207. Purpose: any lawful activity.

Notice of Formation of MATTERMINDSSEARCH LLC. Arts. of Org. filed with theSecy. of State of NY (SSNY) on 7/19/07.Office location: NY County. SSNY designatedas agent of LLC upon whom process against it may be served and shall mail process to:The LLC, 173 East 74 th Street, 3A, New York,NY 10021. Purpose: any lawful activity.

Notice of Formation of Michael AndrewsLLC, Art. of Org. filed Sec'y of State (SSNY)3/14/06. Office location: NY County. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNYshall mail copy of process to Michael BrianMantegna, 90 Clinton St., Ste. 2H, NY, NY10002. Purpose: any lawful activities.

Notice of Qualification of North Hill Holdingof New York, LLC. Authority filed with NYDept. of State on 8/3/07. Office location: NYCounty. LLC formed in Delaware (DE) on7/16/07. NY Secy. of State designated asagent of LLC upon whom process against itmay be served and shall mail process tothe principal business address of the LLC:51 E. 42nd St., Ste. 300, NY, NY 10017. DEaddress of LLC: c/o The Corporation TrustCo., 1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State,401 Federal St., Dover, DE 19901. Purpose:any lawful activity.

Notice of Qualification of Och-Ziff Real EstateManagement, L.L.C. Authority filed with NYDept. of State on 5/29/07. Office location: NYCounty. Principal business address: 9 W.57th St., NY, NY 10019. LLC formed inDelaware (DE) on 11/14/03. NY Secy. ofState designated as agent of LLC upon whomprocess against it may be served and shallmail process to: c/o CT Corporation System,111 8th Ave., NY, NY 10011, registered agentupon whom process may be served. DEaddress of LLC: The Corporation Trust Co.,1209 Orange St., Wilmington, DE 19801.Arts. of Org. filed with DE Secy. of State,Townsend Bldg., Dover, DE 19901.Purpose: any lawful activity.

Notice of Formation of Olmstead 315 LLC.Arts. of Org. filed with Secy. of State of N.Y.(SSNY) on 7/18/07. Office location: NYCounty. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to principal businesslocation: c/o Olmstead Properties, Inc., 5758th Ave., Ste. 2400, NY, NY 10018. Purpose:any lawful activity.

Notice of Formation of Royal Field ManagementCompany LLC. Arts. of Org. filed with Secy.of State of N.Y. (SSNY) on 11/17/06. Officelocation: NY County. SSNY designated asagent of LLC upon whom process against itmay be served. SSNY shall mail process to:Royal Field, LLC, 164 W. 128 St., Ste. 1C, NY, NY 10027. Purpose: any lawful activity.

Notice of Qualification of Seidman PrivateAdvisors, LLC. Authority filed with Secy. ofState of N.Y. (SSNY) on 7/24/07. Officelocation: NY County. LLC formed in Delaware(DE) on 4/21/04. SSNY designated as agentof LLC upon whom process against it maybe served. SSNY shall mail process to: c/oCorporation Service Co. (CSC), 80 State St.,Albany, NY 12207. DE address of LLC: c/o CSC,2711 Centerville Rd., Ste. 400, Wilmington,DE 19808. Arts. of Org. filed with DE Secy.of State, Townsend Bldg., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of Source BroadbandServices, LLC. Authority filed with Secy. of State of N.Y. (SSNY) on 7/2/07. Officelocation: NY County. LLC formed in Delaware(DE) on 5/15/07. SSNY designated as agentof LLC upon whom process against it may be served. SSNY shall mail process to: c/oCT Corporation System, 111 8th Ave., NY, NY10011, registered agent upon whom processmay be served. DE address of LLC: 1209Orange St., Wilmington, DE 19801. Arts. ofOrg. filed with DE Secy. of State, 401 FederalSt., Ste. 4, Dover, DE 19901. Purpose: alllawful purposes.

Notice of Qualification of WRA InvestmentsLLC, App. for Auth. filed Sec'y of State (SSNY)2/10/03. Office location: NY County. LLC org.in DE 1/27/03. SSNY designated as agent ofLLC upon whom process against it may beserved. SSNY shall mail copy of process to101 Park Ave., 48th Fl., NY, NY 10178. DEoffice addr.: c/o CSC, 2711 Centerville Rd.,Wilmington, DE 19808. Cert. of Form. on file:SSDE, Townsend Bldg., Dover, DE 19901.Purpose: any lawful activities.

NOTICE OF QUALIFICATIONS OF WestMonroe Partners LLC. Articles of Organizationfiled with the Secretary of State of New Yorkon May 18, 2007. N.Y. Office Location: NewYork County. LLC formed in Delaware on April17, 2002 SSNY has been designated as agentof LLC upon process against it may beserved. The P.O. address to which the SSNYshall mail a copy of any process against theLLC served upon him/her is C/O the LLC: 175W. Jackson Blvd. Suite 2200, Chicago IL60604. The Principal Business Address of theLLC is: 175 W. Jackson Blvd. Suite 2200,Chicago IL 60604. Dissolution date N/A.Purpose of LLC: Full service technology andbusiness consulting firm.

Name of Foreign LLC: Helmut Lang LLC (Fict.Name: Helmut Lang New York LLC). Appl. forAuth. filed NY Dept. of State: 6/27/07. Jurisd.and date of org.: DE 3/13/06. County off. loc.:New York County. Princ. bus. loc.: 38Gansevoort St., NY, NY 10014. Sec. of Statedesignated as agent of foreign LLC uponwhom process may be served. The Sec. ofState shall mail copy of process to the LLC:38 Gansevoort St., NY, NY 10014. Addr. offoreign LLC in DE is: c/o National CorporateResearch, Ltd., 615 South DuPont Hwy.,Dover, DE 19901. Auth. office in DE whereCert. of Form. filed: Sec. of State of DE, JohnG. Townsend Bldg., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of Embassy HouseOwner LLC. Authority filed with Secy. of Stateof N.Y. (SSNY) on 7/18/07. Office location: NYCounty. LLC formed in Delaware (DE) on7/16/07. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to principal officeaddress of LLC: c/o National RegisteredAgents, Inc., 875 Ave. of the Americas,Ste. 501, NY, NY 10001, the registeredagent upon whom process may be served.Arts. of Org. filed with DE Secy. of State,401 Federal St., Ste. 4, Dover, DE 19901Purpose: real estate investment.

Notice of Formation of Flamengo PartnersLLC. Arts. Of Org. filed with Secy. of State ofN.Y. (SSNY) on 07/20/2007. Office location:New York County. SSNY designated as agentof LLC upon whom process against it may beserved. SSNY shall mail process to: c/o GalletDreyer & Berkey, LLP, 845 Third Avenue, 8thFloor, New York, NY 10022-6601- Att: DavidL. Berkey, Esq. Purpose: any lawful activity.

Notice of Formation of Life Long FitnessLLC. Arts. of Org. filed with Secy. of Stateof NY (SSNY) on 7/18/07. Office location:NY Co. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to: The LLC, 56Ludlow St., 2nd Fl, NY, NY 10002. Purpose:any lawful activities.

Notice of Qualification of Insight VenturePartners VI (Co-Investors), L.P. Authority filedwith Secy. of State of NY (SSNY) on 7/11/07.Office location: NY County. LP formed inDelaware (DE) on 3/29/07. SSNY designatedas agent of LP upon whom process against itmay be served. SSNY shall mail process to:c/o National Registered Agents, Inc., 875Avenue of the Americas., Ste. 501, NY, NY10001, also registered agent. DE address ofLP: 1209 Orange St., Wilmington, DE 19801.Name/address of genl. ptr. available fromSSNY. Cert. of LP filed with DE Secy. of State,Federal & Duke of York Sts., Dover, DE 19901.Purpose: any lawful activities.


BY AARON SIEGEL

caroline giuliani may not be sup-porting her father’s presidential bid,but financial advisers say they preferthe former New York mayor overany other presidential candidate.

Thirty-six percent of 205 advis-ers surveyed by the Brinker Barom-eter—a quarterly gauge of profes-sionals’confidence in and sentimentsabout the economy—say formerNew York Mayor Rudolph Giulianiwould have the most positive effecton investment and the economy.

GOP countryrounding out that list were Mr.Giuliani’s fellow Republicans, in-cluding former Massachusetts Gov.Mitt Romney and Sen. John Mc-Cain, R-Ariz., who garnered 30%and 15% of the survey participants’

support, respectively.“The industry is overwhelming-

ly Republican, and Mr. Giuliani is aleader on the ticket,” says BruceFenton, president of Atlantic Fi-nancial Inc. in Norwell, Mass. “Theperception is that he would cut tax-es. Many people in the industry feelthat Republicans are better for theeconomy, and he is a recognizablecandidate.”

Mr. Giuliani’s 17-year-olddaughter had for a short time listedherself as a member of a Facebook

group, “Barack Oba-ma (One MillionStrong for Barack),”belonging to the De-mocratic senator fromIllinois.

Dems trailwhen advisers wereasked,“Which candi-dates would be worstfor the U.S. economyand investing?” about60% answered Sen.Hillary Clinton, D-N.Y. Following herwere John Edwards,

Democrat and former senatorfrom North Carolina (13%); Mr.Obama (12%); Mr. Giuliani (6%);Mr.McCain (6%);and Mr.Romney(4%).

The Brinker Barometer survey isconducted online among the 2,150advisers at Brinker Capital Inc., awealth management company basedin Berwyn, Pa., which managesabout $8.9 billion.

Aaron Siegel is a reporter at InvestmentNews, a Crain publication.

Wealth managers givenod of approval to Rudy

THE WEEKS AHEAD

THIS WEEK’S EVENTSAUGUST 21Lehman College’s Small BusinessDevelopment Center holds workshopon managing and understanding credit.10:00 a.m. to 1:00 p.m., 250 BedfordPark Blvd. West, Old Gym Building,room 108-B. Free. (718) 960-8697 [email protected] 21BizNet, Chapter 2, holds networkingreception. 8:00 a.m. to 10:00 a.m.,Meerbaum & Co., 555 Fifth Ave.,14th-floor conference room. Free.(212) 378-1720.AUGUST 22Seedco’s Lower Manhattan BusinessSolutions Center and GreenPath DebtSolutions hold information session onbuilding and improving credit. 3:00 p.m.to 5:00 p.m., 110 William St., fourthfloor. Free. (212) 618-8817 [email protected] 22The Wall Street Journal and NationwideEquities Corp. hold networking lunch.1:00 p.m. to 2:00 p.m., Calico Jack’s, 800Second Ave. Free. (917) 975-5985 [email protected] 22 Networking for Professionals holdslunch program. 1:00 p.m. to 3:00 p.m.,Palm Too, 840 Second Ave. Fee: $44.90members, $54.90 nonmembers.(212) 227-6556 [email protected] 23 SalemGlobal holds networkingbreakfast. 8:00 a.m. to 10:00 a.m., 70 W.40th St. Free. (646) 872-6592 [email protected].

AUGUST 27-SEPTEMBER 2AUGUST 29Five O’Clock Club Executive JobSearch Group holds seminar onadvanced interviewing techniques. 6:30p.m. to 8:30 p.m., 11 Penn Plaza, fifthfloor. Fee: $50. (914) 788-5482 [email protected] 30 Manhattan Review holds informationsession on M.B.A. admissions at theWharton School of the University ofPennsylvania. 7:00 p.m. to 8:30 p.m.,420 Lexington Ave., suite 2310. Free.(212) 997-1660.

SEPTEMBER 3-9 SEPTEMBER 5 Banco Popular and Sandler Institutehold networking reception and programon winning more business. 6:00 p.m. to8:00 p.m., 441 Second Ave. Free.(212) 679-1201 or [email protected] 6Purple Dot Group holds seminar onhow to test marketing results. 6:30 p.m.to 8:30 p.m., SLC Conference Center,352 Seventh Ave., 16th floor. Fee: $49.(800) 514-3557 orwww.purpledotmag.com/events.SEPTEMBER 6 Industrial and Technology AssistanceCorp. holds seminar on green building.5:30 p.m. to 7:30 p.m., Skadden ArpsSlate Meagher & Flom, 4 TimesSquare, 37th floor. Fee: $25.(212) 404-6990, ext. 15, [email protected] 6 Camba’s Small Business Services holdsworkshop on for-profit versus nonprofitorganizations. 3:00 p.m. to 5:30 p.m.,884 Flatbush Ave., second floor,Brooklyn. Free. (718) 282-2500, ext.242, or [email protected] 7 Global Purchasing Cos. holds workshopon how to open and run a retail store.10:00 a.m. to 5:00 p.m., 1133 Broadway.Fee: $189. (212) 414-4001 or

More meetings online atwww.newyorkbusiness.comClick on “Events”

[email protected].

SEPTEMBER 10-16 SEPTEMBER 10 Queens Economic Development Corp.holds open house on its entrepreneurassistance program. 6:00 p.m. to 8:00p.m., Queens Borough Hall, 120-55Queens Blvd., room G-110, KewGardens. Free. (718) 263-0546.SEPTEMBER 11 Manhattan Chamber of Commerceholds networking reception. 6:00 p.m. to8:00 p.m., Roger Smith Hotel, 501Lexington Ave. Fee: $15 members, $25nonmembers. (212) 473-8074.SEPTEMBER 14CenterPoint Solution, R3 Health andWellness Center hold seminar on livinga better life at work. 8:00 a.m. to 10:00a.m., Microsoft Office, 1290 Sixth Ave.,sixth floor. Free. (860) 496-4636 [email protected].

SEPTEMBER 17-23 SEPTEMBER 18Smart Business Advisory andConsulting holds networking receptionand program on public speaking in theworkplace. 5:30 p.m. to 8:30 p.m., YaleClub, 50 Vanderbilt Ave. Free.(610) 964-4054 orwww.smartgrp.com/events.asp.SEPTEMBER 18Bedford Stuyvesant Restoration Corp.holds seminar on making the most ofyour money. 6:30 p.m. to 8:30 p.m.,1368 Fulton St., Billie Holiday Theater,Brooklyn. Free. (718) 636-6924 [email protected] 18 New York Society of Security Analystsand National Investor RelationsInstitute-New York hold seminar onanalyst and investor relations. 8:30 a.m.to 12:00 p.m., 1177 Sixth Ave., secondfloor. Fee: $225 NYSSA and NIRImembers, $295 nonmembers.(646) 871-3405 or [email protected] 18 New York Public Library’s Science,Industry and Business Library holdsworkshop on launching a consumermagazine. 5:30 p.m. to 7:00 p.m., 188Madison Ave., room 018. Free.(212) 592-7000.SEPTEMBER 20Manhattan Chamber of Commerceholds networking reception. 5:30 p.m. to8:00 p.m., Club 101, 101 Park Ave. Fee:$25 members and $35 nonmembers inadvance; additional $5 for all at door.(212) 473-7805 [email protected] 21Daily Mastery holds seminar on timemanagement. 8:00 a.m. to 10:00 a.m.,Microsoft Office, 1290 Sixth Ave., sixthfloor. Fee: $20 in advance, $25 at door.(201) 484-0263 [email protected].

SEPTEMBER 24-30SEPTEMBER 25Goodwin Procter and Mergers &Acquisitions magazine hold forum onfinancial services M&A. 3:00 p.m. to5:30 p.m., Regency Hotel, 540 ParkAve. Fee: $99. (212) 803-8833 [email protected].

—adrianne pasquarelli

TO LIST YOUR EVENT

Crain’s lists business meetings online and includesthem in the print edition on a space-available basis.Events in New York City with admission fees of lessthan $300 are considered for the print publication.

Listings can be submitted only through the Crain’sWeb site. To submit a calendar listing, go towww.newyorkbusiness.com and click on “Events.”Sponsors have a choice of several free or paid list-ing options. All business events will be postedonline within two business days.

Crain’s can neither confirm receipt of listings nor sayif or when event listings will appear in the print edition.


Financial adviserssay former mayorwould be betterfor the economy

BY NAT IVES

fall issues, and September in par-ticular, are again proving golden formany magazines. That’s good newsfor publishers, whose bosses are bynow getting a pretty good idea how2007 as a whole will turn out.Thosebig issues will likely help the indus-try end the year on par with 2006.

Vogue and its Condé Nast siblingW benefited from spending in theaccessories category.

The September Vogue shot uplike the champion should, clocking727 ad pages, for a gain of more than100—helped only a bit by this year’sCondé Nast-wide Fashion Rocksinsert,which is 15% thicker than lastyear’s.The number of ad pages in theinsert ranges from 75 to 100, de-pending on the title.

Not surprisingly, given thespending strength in the accessoriescategory this past year, the otherfashion books are fat as well.

Adding upw racked up 477 ad pages, an 85-page gain over last September. Elle,part of Hachette Filipacchi MediaU.S., nabbed 398 ad pages for themonth, up 27 from a year earlier, ac-

cording to the MediaIndustry Newsletter.Matching Elle wasTime Inc.’s In Style; its398 pages representedan improvement of 33pages.

Harper’s Bazaar,from Hearst, is run-ning 360 ad pages inits September tome—the largest issue in thetitle’s history—for anincrease of about 48 pages. AndGlamour, though not as strict a fash-ion play as the others, is up 10 adpages from last September, to 285.

But some of the most notablesuccesses are highlighting the diffi-culties that persist for magazines—reminding us that October,Novem-ber and, especially, December are asuncertain and crucial as ever.

Details, for example, is publish-ing its largest September issue ever,nearly 259 pages. Impressive as thatsounds,it’s just four more pages thanlast year’s issue. And October willcome in about 40 pages shy of theyear-earlier magazine.

“The market felt a little soft thisOctober,” says Publisher ChrisMitchell. “When we look at newbusiness, which is just one of our in-dicators, we have about 50 pages ofnew business in October. We didabout 100 last October.”

Details will still beat last year’stotal comfortably, helped along by anew holiday issue, coming out onNov. 6, that will give the title 11 is-

sues rather than its usu-al 10 for 2007.

“The only real ques-tion mark for me is howthe market holds upfor December,” Mr.Mitchell says. “Is it amarket where peopleare looking for ways tospend money or to pullit away? In our case,a lotof it’s driven by the re-tail environment.”

Retail uncertainty is already ondisplay at Seventeen and CosmoGirl,which have a shot at matching lastyear’s ad-page totals, according toMichael Clinton, publishing direc-tor at Hearst Magazines.

Spring revival“the beauty and fashion businessis up, but the retailers were softer in2007 than we would have liked,”Mr.Clinton says.“I think that’s going tocome back in the fourth quarter andthe spring.” Elsewhere at Hearst,Cosmopolitan’s September issue falls19 pages short of last year’s. But hesays the title is up more than 20pages in October.

For the year,Mr.Clinton predictsthat magazines will continue togrow, despite a new-media mael-strom outside their pages.Of course,there are paper- and postage-cost in-creases coming in 2008,he notes,“soa growing ad picture is good.”

Nat Ives is a reporter at Advertising Age, aCrain publication.

Another sweet Septemberfor major fashion magazinesAccessories marketdrives ad page gainsfor important issue;difficulties persist

LOVE-HATE RELATIONSHIP: Advisers says they would expect Mr.Giuliani to cut taxes. Sen. Hillary Clinton had the worst showing.

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CNYB 08-20-07 A 29 8/16/2007 8:02 PM Page 1

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LIVING LARGEMore New Yorkers areheading to the islandsto buy asecondhomePAGE 34

Going to extremesDaredevil execs take risks; some employers wary

BY HILARY POTKEWITZ

eet marilyn neiman, esq.: litigator, 53-year-old mother of two, white-water kayaker.

She says that she handles her toughest river runs the same way she handles her toughest cases—by analyzing theirmerits.

“There are weaker areas of the river and stronger areas, justlike a case,” says Ms. Neiman, senior counsel at Manhattan lawfirm Cohen Pontani Lieberman & Pavane. “You don’t jump inand randomly pursue a case, or a river. You plan a strategy, and

you stop and adjust as you get more information.”Ms. Neiman is a member of a growing class of daredevil executives who deem golf or squash

too tame. Instead, they seek adrenaline-filled activities like flying planes, climbing mountainsor skydiving. Recruiters call these pursuits “aggressive hobbies,” and their popularity is causingcomplications for companies worried about losing top

BrooklynshutterbugHOOKED ON BROOKLYNKathryn Kirk didn’t expect tostay long when she becamestaff photographer forBrooklyn Borough PresidentHoward Golden in 1989. “Iwas thinking two years, max,”she says. She photographedJackie Kennedy Onassis onone of her first assignments.“Every time I go out, I meetsomeone intriguing.” Hersalary was $51,494 last year.

DARKROOM DELIVERANCEUntil Marty Markowitz tookoffice in 2002, Ms. Kirkdeveloped her photos in adarkroom at Borough Hall. “Itwas slower but one of themore relaxing parts of the job,”she says. “Now, everyonewants everything right away.”

SPOTLIGHT MOMENT WhenBill Clinton visited BoroughHall in 1992, “he walkedacross the room ... andintroduced himself,” Ms. Kirksays. “[At our next encounter],I said, ‘We’ve met before,’ andhe said, ‘I remember.’ ” Hethen declared, “I want mypicture with the photographerlady.”The single momincluded that photo with heradoption applications and nowraises Elena, 8, and Paloma, 2.

—erik engquist

OFFICE ROMANCE:MAKING IT WORKif you do begin datingsomeone from work, makesure to protect your paycheckand keep the relationshipprofessional. Don’t argue inthe office, and don’t come inand tell everyone about yourgreat night together. Avoid e-mailing one another at work.If you think your co-workersknow about the relationship,go ahead and tell your boss.It’s better that he hears it fromyou than from someone givinghim a nudge in the elevator.

—helaine olenCo-author of the upcoming book

Office Mate

See DAREDEVIL on Page 32

B U S I N E S S

GOTHAM GIGS

EXPERT OPINIONS


M

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THE STATS

41%of skydivers are between the ages of 40 and 59

23%of skydivers work in businessmanagement, marketing or tech

Source: United States Parachute Association

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MARILYN NEIMAN, a seniorcounsel at Cohen PontaniLieberman & Pavane, handlestough cases and tough rivers.

CNYB 08-20-07 A 31 8/17/2007 1:00 PM Page 1

performers to strained backs, bro-ken limbs or worse.

The conflict is becoming more ofan issue during executive recruiting.Employers prize the kind of peoplewho are drawn to extreme hob-bies—go-getters who achieve theirgoals. At the same time, reaching aC-level suite means more responsi-bility to the firm, customers andshareholders.

“They want their executives to

have outlets to follow their passion,”says Terence Gallagher,president ofexecutive search firm Battalia Win-ston International. “But they wantto know their top-level execs are be-ing prudent, so it’s: ‘By all means,pursue your hobbies, but don’t gojumping into a shark tank, please.’ ”

Issue will arise more oftenmr. gallagher says he expects tosee the issue arise more frequently asgrowing numbers of baby boomers

hit the apex of their careers, and asyounger generations hooked on allthings extreme rise through theranks.

The 51-year-old Mr. Gallagherunderstands the conflict well. Aself-described Harley-Davidsonman, he says he’s always careful. Henever rides his bike at night, and herecently upgraded to a safer model,the 2002 Softail Deuce, which has amore sophisticated engine than hisold 1996 Harley.

Still, Mr. Gallagher says hisbusiness partner isn’t too thrilledabout his hobby. “Sometimes helooks at me sideways and says,‘Whywould you take that kind of risk?’ ”

The most common extreme pur-suits are motorcycle riding, pilotingsmall planes, scuba diving and racecar driving.

O. James Sterling, the 37-year-old managing director of private eq-uity firm Aleutian Capital Partners,has been a pilot since he was ateenager. He flies his four-seat, sin-gle-engine plane nearly every sum-mer weekend. He also takes it upabout 10 times a year for companytrips, sometimes bringing his busi-ness partner.

It’s quite a change from his for-mer employer,a Big Four consultingfirm that had rules against employ-ee pilots flying for business pur-poses. “I think you can be adven-turous without being a risk-taker,”says Mr. Sterling, who spent threeyears as a professional airline pilotafter college.

The dangers faced by hobbyistfliers were brought home last Octo-ber when New York Yankee pitcherCory Lidle and a flight instructorwere killed when their small planehit a Manhattan high-rise.

No serious injuriesdespite the risks, some employ-ers embrace extreme hobbies. Forexample, Ms. Neiman’s law firmcounts a pilot and a mountaineeramong its ranks. “If it’s somethingthey enjoy doing, it probably con-

tributes to their overall mental well-being,” says CPLP Managing Part-ner Martin Pavane. “Apart from abroken limb here and there,so far noone’s suffered any serious injury,” headds.

Though he knows his lawyers aresmart and methodical by nature, thefirm has taken on key-man insur-ance for its top partners.

In other cases, the risks mightnot be as obvious.Michael Cannon,a hedge fund manager at LehmanBrothers, is a mountaineer. He has

summited mountains in the PacificNorthwest and South America, andhas completed some “reasonablygnarly” climbs in Alaska. An expe-rienced climber, he says safety is histop priority.

“I am the opposite of a weekendwarrior,”says the 46-year-old Mon-tana native.Since he started manag-ing the MLP Opportunity Fundlast year, he brings a satellite phoneon his expeditions. He once con-ferred with the office for 10 minutesfrom the top of Mount McKinley.

As a result, he has a hunch hisco-workers don’t really understandwhat these three-week, ice-riddentrips are like at 19,000 feet. “Unlessyou say you’re doing Everest or go-ing to Pakistan, people have noidea.”

In the corporate world, it is dif-ficult for companies to limit em-ployees’ leisure activities. NewYork labor law forbids discrimina-tion on the basis of off-duty activ-ities, to protect union membershipand political speech. But the lawalso covers recreational pursuits,defined as “sports, games and hob-bies,” according to Dermot Sulli-van, a partner in the labor and em-ployment law practice at BryanCave. He has negotiated both sidesof this issue.

Companies can find ways towrite contracts around the rule, ifthe hobby could directly conflictwith a firm’s best business interest,for example. But the result dependson who has the leverage.

“If the company really wants theexecutive,and the guy really likes hisHarley, he’s going to keep the bike,”Mr. Sullivan says.


Daredevil execs thrive on risksB U S I N E S S L I V E S

Continued from Page 31

PUSHING THE LIMITSTop extreme hobbies among daredevil executives.

MOTORCYCLERIDING

PILOTING SMALLPLANES

SCUBA DIVINGRACE CAR DRIVING

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‘Unless you sayyou’re doingEverest ...peoplehave no idea’

STORIES CAN BE REPRINTED, POSTED ONLINECRAIN’S OFFERS REPRINTS ofpublished articles, which caninclude black-and-white or colorphotos that accompany the story.To obtain an estimate, contactLori Noffz at Reprint ManagementServices, (717) 399-1900, ext.104, or [email protected].

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Send a letter describing thearticle and how it will be used,along with a check, to JillBottomley at Crain’s New YorkBusiness, 711 Third Ave., NewYork, NY 10017. For moreinformation, please call Ms.Bottomley at (212) 210-0282.

CNYB 08-20-07 A 32 8/16/2007 7:32 PM Page 1

BY MIRIAM KREININ SOUCCAR

Nine years ago, Gor-don Campbell took ona major challenge asleader of the nonprofitnow known as Safe

Horizon. It had a poor organiza-tional structure and,even worse,wascalled Victim Services,which scaredaway potential beneficiaries whodidn’t want to be labeled “victims.”

Mr. Campbell renamed thegroup, cut underperforming pro-grams and nearly doubled the bud-get, to $55.8 million.

“He turned the organizationaround,” says Peter Powers, chair-man of government relations con-sulting firm Powers Global Strate-gies and a Safe Horizon trustee.“But you can’t keep somebody asgood as Gordon forever.”

Indeed. Mr. Campbell is bring-ing his brand of nonprofit rehabili-tation to United Way of New YorkCity, where he will start as presidentand chief executive on Sept. 24.

His magic touch is sorely neededthere.

The $115 million agency, the na-tion’s largest United Way, has suf-fered high staff turnover (includinghaving two CEOs in four years) andtwo internal probes into the handlingof assets, and it has an overall publicimage problem. It is still thought ofas a fund raiser for its member char-ities,even though it revamped its op-erations three years ago.

Program developmentinstead of just raising money, itnow also develops programs andworks on select issues such as home-lessness prevention and access tohealth care.Mr.Campbell says Unit-ed Way hasn’t been able to spread theword about its new mission.

“The biggest challenge is to getthe word out about the modernUnited Way of New York City … asa community problem solver and acatalyst for change,” Mr. Campbellsays.

One example of the different di-rection is a homelessness preventioneffort in the Bronx that United Waystarted with the Bank of New York,Legal Aid, Women In Need and anumber of city agencies. The pro-gram helps families fight evictionnotices in civil court.

“Fifty percent of families in shel-

ters are there due to evictions,” Mr.Campbell says.“The cost of the pro-gram is about $3,000 a family, whilea shelter stay averages $32,000.”

Mr. Campbell plans to overhaulUnited Way’s image. He intends tospend a lot of time promoting thegroup’s new model and illustratinghow it can benefit both corporateand nonprofit partners while solv-ing the biggest social problems inthe city.

Just hiring Mr. Campbell was amajor step toward renewing trust inthe United Way. The former prose-cutor gained wide acclaim after Sept.11, when Safe Horizon took on thetask of disbursing $250 million

raised by United Way and the NewYork Community Trust. Safe Hori-zon cut checks for 20,000 victims ofthe attacks with virtually no delays.

Into public serviceat the same time Safe Horizonwas handling that task, it stayed trueto its mission of helping womentrapped in abusive relationships.

For Mr. Campbell, whose ré-sumé includes a number of jobs incity government, including launch-ing the AIDS Services division,

heading United Way is a culmina-tion.The Seattle native realized thathe wanted a career in public servicewhen he was in junior high andworked as a page in the Washingtonstate Legislature.

The new job also has an impor-tant perk: the Equinox across thestreet from his office. An avid cyclerwho has biked through Vietnamand Costa Rica, Mr. Campbell hasalready signed up for spin classes.


Gordon Campbell

Nonprofit transformer United Way CEO to promote charity’s redefined mission,polish public image

B U S I N E S S L I V E S

PERSONNEL FILECOMPANY United Way of NewYork City

TITLE President and chief executive

AGE 54

RÉSUMÉ CEO, Safe Horizon;commissioner, city Department ofHomeless Services

FAVORITE RESTAURANTTamarind

PERSONALITY TYPE Optimist

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CORPORATELADDER


CNYB 08-20-07 A 33 8/16/2007 4:09 PM Page 1

BY MARGARET JAWORSKI

Last november, thePinto family spent theirfirst week in their newlyfinished vacation home:a 2,700-square-foot cot-

tage at The Somerset on Grace Bay,a resort development on Providen-ciales in Turks and Caicos.

Aviva Pinto and her husband,both avid scuba divers and sailors,had fallen in love with the island’sturquoise waters and snow-whitebeaches during their first trip therein 1989.

Fourteen years and two childrenlater, Ms. Pinto, a senior vice presi-dent at U.S. Trust in Manhattan,and her husband, who works forNatixis, a French investment bank,took the plunge and bought a homeof their own. By the time their cot-tage was finished, it was worth $1.2million, double the average precon-struction price of $595,000.

Ms. Pinto will likely run into fel-low Manhattanites at the resort.

New Yorkers are snapping upCaribbean homes in Turks andCaicos, Anguilla and a host of oth-er locations as developers cater towealthy buyers looking for a vaca-tion spot, rental income and an in-vestment—all in one package.

New Yorkers make up 60% ofbuyers at the Ritz-Carlton Reserve,West Caicos, and 35% of purchasers

at The Somerset. At St. Regis Re-sort Temenos Anguilla, where the78 residences are priced from $1.4million to $13.2 million, 60% ofbuyers are New Yorkers.

“Over the past five years, we’veseen an explosion in the foreignmarket for second homes,” says JeffHornberger, managing director ofmember development for the Na-tional Association of Realtors. “Andthis is not a temporary trend.”

Growth driversthat movement could accelerate,driven by a spike in the number ofretirees,a decline in real estate pricesthroughout the United States andrapid appreciation of properties inthe Caribbean.To keep up with de-mand, more than 30 luxury mixed-use developments have appearedaround the region within the pastfive years.

The building boom “speaks to anoverall greater confidence by the de-velopers, hotel brands and con-sumers,” says Scott Berman, princi-pal in the hospitality and leisure

advisory group at Pricewaterhouse-Coopers in Miami.

Buyers are particularly attractedto branded resorts like St. Regis Re-sort Temenos, which “provide homebuyers with a certain sense of safetyand credibility,” says Paul Kanavos,chairman of Flag Luxury Proper-ties, the resort’s developer.

Yvonne Marsh, her husband andfive kids, who range in age from 6 to30, have been vacationing for yearsat The Abaco Club on WindingBay—a membership-only enclaveon Great Abaco in the Bahamas.

After Ritz-Carlton signed on tomanage the property, which in-cludes cottages currently pricedfrom $2.4 million to $3 million, thefamily decided to put down roots.

In July, Ms. Marsh, senior man-aging director of private equity firmLiberty Partners, and her recentlyretired husband closed on a 3,000-square-foot, 2-bedroom cottagewith a deck.

“I like knowing the house will becared for when we’re not here,” shesays.

Though Ms. Marsh looks for-ward to rental income at some point,she’s putting it off.“I’m sure the old-er ones will be coming down fairlyoften,” she says.

Paying for itselfms. pinto, on the other hand, iscounting on the revenue her proper-ty generates. “We ran the numberson the rental income and the ex-penses,” she says.“We figured that ifwe could break even, the propertywas worth it, because we knew thatit would appreciate in value.”

She pays $2,100 a month formaintenance, plus $900 for utilitiesand other expenses. The cottagerents for $600 to $1,100 a night; asis typical, she splits the rental rev-enue 50-50 with New York-basedSackman Realty, the developer.

Additionally, Ms. Pinto won’thave to pay estate or rental-incometaxes: Other than a 9.75% stamp taxlevied at purchase, the British Over-sea Territory is tax-free.


B U S I N E S S L I V E SLIVINGLARGE

ACCOUNTING & CONSULTINGAccenture: Roxanne Taylor, 51, waspromoted to chief marketing andcommunications officer from managingdirector.BDO Seidman: Marlene Rabinowitz, 39,was promoted to partner from director.Joel Robinson, 54, was promoted topartner from director.Stephen M. Wyss, 35, was promoted topartner from senior manager.DOAR Litigation Consulting: Paul J. Neale,38, was promoted to president andmanaging director from executive vicepresident.Eisner: Michael McMurtry, 46, waspromoted to partner from director.Sidney Schwartz, 51, joined as partner.He had been a tax director at RSMMcGladrey.Andrea Will, 41, was promoted topartner form director.Proudfoot Consulting: James Edmister, 59,was appointed senior vice president andhead of the tristate region. He wasformerly a business consultant.

FINANCE & INSURANCE Riverstone Holdings: Elizabeth Weymouth,39, joined as managing director. She wasformerly managing director at J.P.Morgan Private Bank.

LAWChadbourne & Parke: Edouard S.

WANTED: DIRECTORORGANIZATION Solomon R. Guggenheim Museum

JOB DESCRIPTION Oversee exhibitions, fundraising and a 200-personstaff

MOST IMPORTANT TASK Maintaining the Manhattan museum’s staturedespite global expansion

CREDENTIALS NEEDED Proven management experience; extensiveknowledge of art

SALARY $300,000-plus

RECRUITER Internal

DOWNSIDE Large shoes to fill: Former Director Lisa Dennison organized35 exhibitions during her 29-year tenure

UPSIDE Running a landmark cultural institution

Ms. Dennison is leaving next month to become the executive vice presi-dent of Sotheby’s North America. The Guggenheim Foundation’s board oftrustees and senior management have formed a search committee tofind her successor. Marc Steglitz, chief operating officer of both the foun-dation and museum, will serve as interim director beginning Sept. 1.

—KIRA BINDRIM

HOT JOBS

EXECUTIVE MOVES

Markson, 37, joined as partner. He hadbeen a director, tax advisory, at CreditSuisse.Dewey Ballantine: Avinash V. Ganatra,37, joined as partner. He was formerlycounsel at Skadden Arps Slate Meagher& Flom.Evan Koster, 44, joined as partner. Hehad been director and senior counsel atUBS Investment Bank.Hughes Hubbard & Reed: Dan Schnapp,38, joined as partner. He had been apartner at Reed Smith.Morrison & Foerster: LawrenceGerschwer, 46, joined as partner. He hadbeen assistant U.S. attorney for theSouthern District of New York.Schiff Hardin: Thomas P. Battistoni, 54,joined as partner. He had been a partnerat Balber Pickard Battistoni Maldonado& Van Der Tuin.

MEDIA & ENTERTAINMENT Connected Ventures: Moshe Koyfman, 29,

joined as chief operating officer. He hadbeen a vice president at IAC.MSL Productions: Michael Visconti, 37,joined as partner and investor. He wasformerly vice president at BarclaysCapital.Scholastic Corp.: Thomas K. Hoekzema,53, joined as senior vice president ofoperations. He was formerly a seniorvice president at Direct HoldingWorldwide.Symphony magazine: Robert Sandla, 50,joined as editor in chief. He had beenpublications editor for the New YorkPhilharmonic.Ziff Davis Media: Jason Young, 38, waspromoted to chief executive frompresident, consumer and small business.

REAL ESTATECorcoran Group: G. Scott Segler, 36, joinedas senior vice president and chief financialofficer. He had been chief financial officerat Sentigen Holding Corp.Andrew Fesen, 46, joined as regionalhuman resources director. He had beendirect of human resources at WorldKitchen.Grubb & Ellis Co.: Geraldine Walsh, 32,joined as vice president and regionaldirector of operations for managementservices. She was formerly a propertymanager at Tishman Speyer New York.

—adrianne pasquarelli andsarah studley

Manhattanitesfind 2nd homeson other islands

sarg

ent

phot

ogra

phyPARADISE

FOR SALEBAHAMASThe Residences atMandarin Oriental Dellis CayScheduled to open in 2009

ELEUTHERACotton Bay Estates & VillasStarwood CollectionPrices from $1.6 to $2.5 million

ST. MAARTENThe Westin St. MaartenDawn Beach ResidencesPrices from $1.2 million

ST. LUCIAResidences at The Ritz-CarltonPrices from $1 million

TURKS AND CAICOSMolasses Reef, aRitz-Carlton Reserve Prices from $2.7 million


EXECUTIVE PROMOTIONS

Crain’s lists the promotion and hiring of New Yorkarea senior executives on a space-available basis,with priority given to positions in New York City.

The fastest way to get an announcement intoCrain’s is to submit details online by filling out theform at www.NewYorkBusiness.com/submit.The Executive Moves column is also availableonline.

More buying in luxuryCaribbean resorts;rental income may ormay not be a factor

NEW UPPER WESTSIDE: Thirty-fivepercent of the buyersat The Somerset, onProvidenciales inTurks and Caicos, are New Yorkers.

CNYB 08-20-07 A 34 8/16/2007 1:46 PM Page 1

B U S I N E S S L I V E S

As it has in many parts ofNew York, food is driv-ing redevelopment ofManhattanville. That’sthe glamorous name for

the Harlem neighborhood near therail line and the West Side Highway.Columbia has earmarked it for ma-jor retooling in years ahead.

The uptown Fairway Market an-chors several blocks. Dinosaur Bar-B-Que adds smoky goodness to oneside of 12th Avenue. The $2.5 mil-lion Hudson River Café is providinga luscious lure to what was formerlyan auto repair shop on the other side.

Owners Hamlet Perelta andMax Piña,who have backgrounds inclubs, music, and retail wines andspirits, are partnered with estimablechef Ricardo Cardona in the zestynewcomer. It’s taken three years tobuild but has caught on fast withthose of us who’ve wondered whenit would finally open. Dinner busi-ness is so great it caused four nightsof live music to be reduced to two,Wednesdays and Sundays.

Views from the HRC are raff-ish—one end of Fairway and theunderside of the highway approach-

es. The lively ambience is periodi-cally punctuated by trains chargingpast the expansive two-level patio.But designer Albert Montoya anddecorator Angela Chang have in-fused the loft-like space with stylishand clean modern lines. Chairs,however, are hard and of the you-wouldn’t-want-to-overstay ilk.

There is valet parking ($10),bikeracks are coming,and it’s hoped thatNew York Waterways will have astop nearby as of next summer.

Meantime, I’ve found streetparking as easy as wading into one ofchef Cardona’s smoked-fish plat-ters, featuring tuna jerky, salmon,scallops and mussels. Small bucketscontaining horseradish sauce, pick-led cucumber salad and capers ac-company that fine item.Another sa-vory starter for sharing is troutmousse, smoked cod and bean-olivepurée served with flatbreads.

While he’s renowned for Latinmenus, Mr. Cardona specializes infresh seafood-oriented Americanfare at Hudson River Café. Thismeans appetizers ($10 to $15) suchas grilled baby back ribs, lean andsucculent in guava BBQ sauce;crispy and spicy Buffalo-seasonedshrimp with Maytag blue cheesedressing; and jumbo lump crabcakes with remoulade sauce.

There are raw bar selections,Kobe beef mini burgers, localtomato gazpacho and a Caesar sal-ad that is adorned with grilled

hearts of palm.Main courses may be as simple as

grilled seafood, steak or chicken—you choose a side and a sauce—ormore elaborate dishes. Two paellastyles are named for the owners.Max’s Paella is strictly seafood,while Hamlet’s is heaped with rab-bit, chorizo, Serrano ham, chicken,duck and wild mushrooms. I en-joyed it, truffle oil and all.

“Crusted” is a favored style ofpreparation, as in horseradish-crusted salmon, sesame-crustedtuna, pepper-crusted duck breastand herb-crusted lamb loin. All thefood has visual verve and arrives onplates of varied shapes and surfaces.

Desserts are as American as analmond-chocolate brownie layeredwith berries and ice cream. Othersweet endings are peach cheesecake,lemon tart with lemon sorbet,chocolate cake and crème brûlée.

Hudson River Café’s service iscordial and effective, from the greet-ing at the door to the thanks andfarewell at meal’s end. There aresavvy professionals seeing to that—general manager Robert Smithfrom Park Avenue Cafe and assis-tant GM Iman Dean from Nobu.

Mr. Smith is the go-to guy foradvice on the fairly priced winechoices.Any of the waitstaff will de-tail the signature cocktails, includ-ing a salute to what Manhattanvillewas once: The 1921 meatpackingdistrict.


TABLETALK by Bob Lape

Manhattanville’snew attraction

HUDSON RIVERCAFE

697 W. 133rd St.(at 12th Avenue)(212) 491-9111

� � ½CUISINE Modern American,seafood-oriented

WINES 170 choices, 12 by theglass

DRESS No code

NOISE LEVEL High

PRICE RANGE $18-$34

WINE MARKUP 90%-180%

CREDIT CARDS All major

RESERVATIONS Recommended

HOURS Dinner, Tues.-Sat., 5 p.m.-midnight, Sun., 5-10 p.m.;Brunch, Sun., 11 a.m.-3 p.m.

��= Outstanding��= Excellent��= Very good�= Good


HARLEM HELMSMEN: Hamlet Perelta, Max Piña and Ricardo Cardona (left to right) of HudsonRiver Café, which took three years to build. The restaurant features an expansive two-level patio.

Hudson River Café offers zesty American with seafood focus; view isn’t picturesque

BEST OF BOB LAPE

Marcum & Kliegman LLP

800.921.0777

WWW.MKLLP.COM

ERNEST KLEIN& CO.

� FINE FOODS �� Same Day Delivery

� Phone Orders

� Corporate Accounts

� Catered Luncheons Located at:

Sixth Ave. and 55th St. 212.245.7720

A FULL SERVICE SUPERMARKET

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os

Here are other modern Americanrestaurants reviewed recently.

Gilt � � � �New York Palace Hotel, 455 Mad-ison Ave. (between East 50th andEast 51st streets), Manhattan.(212) 891-8100. A new kick in thekitchen, 1,500 wines and superbservice.

X20 Xaviars on the Hudson� � � � 71 Water Grant St., Yonkers.(914) 965-1111. Peter Xaviar Kellyreturns to his hometown with aworld-class dining destination.

Four Food Studio and Cocktail Salon � � �515 Broadhollow Road (Route 110),Melville, L.I. (631) 577-4444. Newchef James McDevitt gives anAsian-American savory charge tothe $4 million showplace.

Park Avenue Summer � � �100 E. 63rd Street (at Park Ave-nue), Manhattan. (212) 644-1900.From Quality Meats’ son-fatherteam of Michael and Alan Still-man, a truly seasonal restaurant.

David Burke Fromagerie � � �26 Ridge Road (at Avenue of TwoRivers), Rumson, N.J.(732) 842-8088. Mr. Burke and hisculinary crew celebrate the chef ’s re-turn to his rustic roots. �

CNYB 08-20-07 A 35 8/16/2007 1:52 PM Page 1


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