Crain's New York Business articles from May 2009

Crain's New York Business archives from May 2009

It's unions' turn to tighten belts; Both business and government bring long lists of givebacks to bargaining table.
May 4, 2009... Byline: Daniel Massey As the recession pounds city businesses, cost-cutting employers have chopped workers' salaries, bonuses and benefits. The changes have largely hit employees who don't have the protection of union contractsuntil now....

THE OBAMA EFFECT A better census.(Brief article)
May 4, 2009... The Bloomberg administration, making a big push to boost the city's census count next year, could be aided by Barack Obama's election. The lowest response rates to census surveys in 2000 were in African-American communities, in part because of...

IN BRIEF.
May 4, 2009... The lousy economy has robbed executive chefs in New York City of a lot of dough. According to a new survey by StarChefs.com of restaurant salaries in 2008, top toques were paid an average salary of $82,291, or 26% less than in 2007. What's...

Bronx biz pitches sports gear to pros; CTG Athletics uses personal touch to take on big baseball-equipment players.
May 4, 2009... Byline: Daniel Massey As the florida Marlins' Emilio Bonifacio darted around third base, Jorge Medina wasn't paying attention to the infielder's helmetless head, his flailing arms or even the fact that he was about to leg out baseball's...

WIDE GYRATIONS.
May 4, 2009... In dollars per square foot Building cost $225 1992 sale price $129 2004 sale price $580 2006 pale price $700 2007 sale price $1,067 2009 sale price $392

Quality, location rule at 30 Rock; How landmark survived Depression and 13 recessions.
May 4, 2009... Byline: Theresa Agovino In his travels around the globe, lawyer Whitney Gerard says, people are always delighted when he reveals his office's address: 30 Rockefeller Plaza. "People know the Christmas tree and say, `Oh, how great,' ''...

In city, flu bug is nothing to sneeze at; Companies move to guard against bug, but life goes on; warning scaled back.
May 4, 2009... Byline: Barbara Benson Months ago, Richard Allen decided to make a family vacation out of a business conference by bringing along his wife, Fran Chan, and their three children. At the time, it seemed like a great idea. Last week, when...

Wilbur Ross losing gloss; `King of Bankruptcy' moves into toxic mortgages. Hope that proves wiser than his auto-biz bets.
May 4, 2009... Byline: AARON ELSTEIN Wilbur Ross, who famously pocketed hundreds of millions turning around bankrupt steel mills, is moving to dramatically different turf. Last week, the "King of Bankruptcy'' unveiled plans to invest up to $1 billion in...

CORRECTIONS.
May 4, 2009... John McGettrick of the Red Hook Civic Association was incorrectly linked with community efforts to stop Phoenix Beverages from moving to Pier 11 in the April 27 "Neighborhood Journal'' story. Mr. McGettrick is currently negotiating with city...

Big ads a harder sell in Times Sq. Bad climate takes toll on billboards; a scramble to fill vertical acres.
May 4, 2009... Byline: Adrianne Pasquarelli By early summer, teen retailer American Eagle Outfitters will unveil an enormous sign above its new Times Square flagship on Broadway that will be five times as tall as the three-floor store itself. Sadly,...

HOT JOBS.
May 4, 2009... Byline: AMANDA FUNG WANTED: president and general manager COMPANY New York City Media Group JOB DESCRIPTION Oversee six municipal-owned broadcast and cable channels, WNYE 91.5 FM Radio and a number of online properties, including...

Altered expectations; Generation What Next adapts to tight job market.
May 4, 2009... Byline: MATTHEW FLAMM Peter valeiras had his life all mapped out. He would graduate this spring with a bachelor's degree in civil engineering from Columbia University. He would find a job before school ended and go straight to work at...

NEW YORK, NEW YORK.
May 4, 2009... Byline: Valerie Block Helmsley suite fit for the Queen Travelers renting the penthouse suite at the Helmsley Park Lane Hotel may not know that they are sleeping in the late Leona Helmsley's bed. Indeed, most of the furniture in...

Histories of 4 buildings offer clues on pricing.
May 4, 2009... Byline: THERESA AGOVINO In 1931, architect Claude Bragdon declared that the construction of the Empire State Building and what was to become known as Rockefeller Center marked the end of the city's skyscraper era. He said the United States...

Haughtiest publisher comes; Conde Nast turns out to be as vulnerable to economic storm as everyone else.
May 4, 2009... Byline: Matthew Flamm Last week's shuttering of Conde Nast Portfolio, S.I. Newhouse's ill-timed adventure in business publishing, hardly surprised anyone. If anything, Conde Nast insiders breathed a sigh of relief that the two-year-old,...

Restaurants revamp ways for lean times; Cook up simpler foods, lower costs.
May 4, 2009... Byline: Lisa Fickenscher People walking by any one of the three Uncle Jack's Steakhouses in the city most nights may be surprised to see a well-packed place that seems oddly out of step with our present hard times. But behind the...

Take 2 for state tax credit brings movie shoots back to NY; TV outlook less rosy, since series need long-term incentives.
May 4, 2009... Byline: Miriam Kreinin Souccar Angelina Jolie is in town filming the movie Salt. Nicolas Cage is working on The Sorcerer's Apprentice, the biggest Disney movie ever to shoot in New York. And Harrison Ford is about to start filming the...

HIRING IS HAPPENING.(Brief article)
May 4, 2009... The job market may be tight, but graduates with the right credentials will still find openings. "Accounting firms have been visiting us all year,'' says Barbara Lambert, deputy director of the Starr Career Development Center at Baruch...

WTC solution hinges on Larry.
May 4, 2009... Another impasse at the World Trade Center threatens the meager progress that has been made in rebuilding the site of the Sept. 11 terrorist attacks. Citing the financial crisis, developer Larry Silverstein has asked the Port Authority to...

Law firm rents from Scottish bank.(Duval & Stachenfeld )
May 4, 2009... Duval steps up with Park Avenue sublease; ready-built Law firm Duval & Stachenfeld signed a four-year sublease for 33,000 square feet at 101 Park Ave., between East 40th and East 41st streets. The deal covers the entire 11th floor and...

PERSONNEL FILE.
May 4, 2009... COMPANY Baker Hostetler TITLE Managing partner, New York office AGE 47 RESUME Federal prosecutor, U.S. Justice Department, Organized Crime Division PERSONALITY TYPE Principled and tenacious

New South Bronx mall brings Gateway to change; Residents will have more shopping options, but local merchants are wary.
May 4, 2009... Byline: Hilary Potkewitz Last week, the South Bronx got a taste of a big-league shopping mall when the first store opened at the new Gateway Center in the old Bronx Terminal Market. City officials from Mayor Michael Bloomberg on down...

FALLOUT HITS NEW YORK.
May 4, 2009... The government-instigated bankruptcy of Chrysler means a new future for the automaker. While New York is a long way from Detroit, plenty here stand to win or lose now that the American icon has filed for Chapter 11 protection in the Southern...

Long, hard road to November.
May 4, 2009... Byline: Greg David Mayoral candidate William Thompson has become the latest example of the truth in the saying "Be careful what you wish for.'' The city comptroller longed for a clear shot at Mayor Michael Bloomberg. His wish was fulfilled...

HARD-TIMES BARGAINING.
May 4, 2009... * Hospital workers reopen contract to help reeling pension, health funds. * Newspaper workers agree to 5% pay cut without a no-layoff promise. * Construction workers bend on work rules, yet industry says it's not enough. * Hotel...

NEW YORK, NEW YORK.
May 11, 2009... Byline: Valerie Block Tennis pro serves up story Tennis phenom Rafael Nadal may soon be shopping a book. Industry sources say that literary agent Larry Kirshbaum has been talking to publishers about a memoir by the 22-year-old...

Kindle-ing a fire for print media.(Viewpoint essay)
May 11, 2009... Byline: Valerie Block I love reading the newspaper, but I didn't know how much I disliked print until I got a Kindle for my birthday last year. I had always hated wrestling with the broadsheets, especially when reading on a bus or...

Personnel file.
May 11, 2009... COMPANY Parade Communications TITLE Chief executive AGE 56 RESUME Managing partner, Haire Media Ventures PERSONALITY TYPE Optimistic

Tenants, pleading poverty, lobby for rent reductions; Landlords in a quandary: Give 'em a break or risk a vacancy?
May 11, 2009... Byline: Theresa Agovino For many people, the eyes are the windows to the soul, but for Manhattan landlord David Levy, they are something more. He sees them as portals to a tenant's bottom lineones he finds himself using a lot more these...

Rare sight: growing architecture firm; With UN and police academy on board, Perkins+Will expands on Park Ave. South.
May 11, 2009... Byline: THERESA AGOVINO In a rare show of prosperity in its beleaguered industry, architecture firm Perkins+Will is expanding its footprint at 215 Park Ave. South by more than a third by subleasing 16,500 square feet. That will bring its...

Bulk sales of condos spreading; Developers try package deals to lure investors.
May 11, 2009... Byline: Amanda Fung After nine months and a total of only four tentative sales at its six-story condominium in Harlem, owner Gaetano Development Group decided the time had come for a radical change of tack. Last month, the company began...

Lesson 3. Be Networked; LinkedIn users, take note: Garment district legend is a master of the art of connections.
May 11, 2009... Countless young designers come to New York hoping to turn their sketches into actual clothing. A few lucky ones land under the wing of Ramdat Harihar, the owner of R&C Apparel in Manhattan's garment district. For the designers in whom he...

Lesson 4. Be Lean; Parts maker knows there's no such thing as `too efficient'.
May 11, 2009... Back in 1996 and '97, the slowing defense market sent aerospace parts maker Precision Gear Inc. into a rough patch. That's when Briggs Forelli, the company's president, decided to hire a consultant to help him make his operation more efficient....

Lesson 2. Be Local; It pays to focus on the big, dense, wealthy market in your own backyard.
May 11, 2009... The baguettes, which go stale fastest, slide out of the Tom Cat Bakery ovens at 3:30 a.m. Half an hour later, the crusty loaves are leaving Long Island City, Queens, for Manhattan and by 5 a.m. are carted into the kitchen at the Grand Hyatt...

PIER PRESSURE.
May 11, 2009... Want to look buff at events celebrating the 40th anniversary of the Stonewall riots? Check out Laura Miranda's recently launched Gay Men's Boot Camp. A four-week course, offering three classes per week, runs $359. Individual classes go for $33....

THE CAMPAIGN Mike's Achilles' heels.
May 11, 2009... Mayor Michael Bloomberg's re-election campaign is rolling along with TV ads and glossy mailers, and his poll numbers remain strong, but some Democrats believe he's susceptible to attack on pocketbook and personality issues. One...

Can Google guy turn around AOL? Spinoff could bring Time Warner unit out of tech dark age.
May 11, 2009... Byline: Matthew Flamm Since he took the reins of AOL just a month ago, Tim Armstrong has been traveling the globe, getting a feel for the long-troubled Time Warner division. His goal, he has said, is to reclaim the "magic'' of the AOL...

IN BRIEF.
May 11, 2009... The economic crisis has claimed another retail victim: plus sizes. Women's clothier Ann Taylor Stores Corp. recently stopped ordering size 16 apparel for its brick-and-mortar Ann Taylor and Loft stores. Beginning this spring, the size will be...

Bank of America.
May 11, 2009... NEEDS TO RAISE $34 Billion Its stress test showed it must find far more capital than anyone else. Fortunately, it has many ways to get there. ON THE BLOCK Stake in China Construction Bank LIKELY SALE PRICE $8 billion ...

Citi.
May 11, 2009... NEEDS TO RAISE $5.5 Billion It's already dumped its German banking operations and much of what it owns in Japan. Still, it looks like more moolah is required. ON THE BLOCK Nikko Asset Management LIKELY SALE PRICE $2.7 billion...

Morgan Stanley.
May 11, 2009... NEEDS TO RAISE $1.8 Billion It announced last week it would sell $5 billion in debt and equity. But the brokerage-turned-bank holding company isn't done remaking itself. ON THE BLOCK Proprietary trading business LIKELY SALE...

School reenrolls in Bronx landmark.(John v. Lindsay Wildcat Academy Charter School)(Brief article)
May 11, 2009... Byline: AMANDA FUNG The John v. Lindsay Wildcat Academy Charter School has decided to remain at its Bronx campus at the landmark BankNote Building in Hunts Point for another 12 years. The high school, which also has a campus in lower...

Bankruptcy, no judgments; Fitness chain `crunched' by recession.(Brief article)
May 11, 2009... Byline: Adrianne Pasquarelli The fitness industry is feeling the burn. Fitness chain Crunch filed for Chapter 11 bankruptcy protection last week. The company cited assets between $100 million and $500 million, and liabilities of the same...

A PLAN FOR UNSOLD UNITS.(Brief article)
May 11, 2009... Talk about turning lemons into lemonade, City Council Speaker Christine Quinn thinks she may have a way to cut through the glut of unsold condos. She is pushing to have the city snap up vacant units from developers at bargain-basement, bulk...

CRAIN'S ONLINE POLL.
May 11, 2009... Should Obama close tax loopholes for U.S.-based global firms? 281 VOTES Date of poll: May 5, 2009 Yes. The companies have avoided paying billions of dollars in taxes because of these loopholes, and that cash could help pay down the...

How not to improve the schools.
May 11, 2009... Now that state legislators have temporarily patched over the Metropolitan Transportation Authority's financial crisis, they will turn their attention to New York City's public schools. The question is whether to renew mayoral control of the...

Summer fun on any budget; City eats, drinks, activities for adults, kids, co-workers.
May 11, 2009... Byline: ADRIANNE PASQUARELLI Whether one is dining on caviar or Cheez Whiz these days, the Big Apple serves up plenty of spring and summer fun. From a romantic evening out to educational events for the children, or even the occasional...

Made in NEW YORK; News flash: Thousands of manufacturers still thrive in postindustrial New York. Even more shocking: These time-tested survivors offer every business five lessons for long-term success.(Brief article)
May 11, 2009... Byline: ELIZABETH MACBRIDE Fifty years ago, "Made in NY'' was about as ubiquitous as "Made in China'' is today. The end of that story is familiar to any New Yorker who has ever watched an abandoned factory morph into a restaurant or...

IN THE MARKETS.
May 11, 2009... Byline: Aaron Elstein and Hilary Potkewitz At the SEC, working life isn't quite working right Considering that it missed Bernie Madoff and slept while much of Wall Street binged on leverage and toxic assets, it seems safe to say the...

Lesson 1. Be High-End; If you want your company to last, you need a lasting reputation for quality.(Company overview)
May 11, 2009... When the depth of a pillow or the subtle turn of a furniture leg or the quality of an upholstery tuck really matters, interior designers from around the country trek to the Anthony Lawrence-Belfair workshop on West 23rd Street. "I know if...

THE INSIDER.(Metropolitan Transportation Authority)
May 11, 2009... Byline: Erik Enquist and Daniel Massey The masses pan half-baked MTA plan The agreement reached in Albany last week to rescue the Metropolitan Transportation Authority funds only two years of the agency's next five-year capital plan....

Marching to Parade; Time Inc. veteran will run own show in troubled sector; sees long-term gains.
May 11, 2009... Byline: Matthew Flamm Jack haire has been busy since he exited Time Inc. in a management shake-up at the end of 2005 that effectively cleaned out the old guard and left Chief Executive Ann Moore with her own team. Mr. Haire, who had...

In cheap-chic era, retailers alter plans; Aim for value, lean inventory, `buzz'.
May 11, 2009... Byline: Adrianne Pasquarelli A year ago, fern penn, owner of SoHo boutique Rosebud, would never have dreamed of joining forces with a similar shop down the street to drum up business. Competition was cutthroat. These days, though, she...

LET THE TAG SALES BEGIN.
May 11, 2009... Byline: AARON ELSTEIN ONLY A FEW MONTHS after he clinched the megamerger that created Citigroup in 1998, financial empire builder Sandy Weill made it clear that his ambitions were global when he acquired a 25% stake in Japanese securities...

Swimming upstream; Razorfish vet advances to top job; looks to sign new ad clients, keep old ones aboard.
May 18, 2009... Byline: Kira Bindrim Bob Lord Bob lord has been with interactive marketing agency Razorfish through nine years and three acquisitions. But the online veteran says that securing business with Mercedesnot last month's promotion to...

No bold answers for banished GOP; Report filled with tactical advice may not spur the comeback that Republicans need.
May 18, 2009... Byline: Erik Engquist It's no secret that New York Republicans are in trouble. By every measureelection results and voter registration in particulara Democratic wave is turning the state deep blue. Republicans control no levers of power in...

Everyone sacrifices, except city unions.
May 18, 2009... Businesses across New York are reeling from the recession. As their customers have tightened purse strings, they are responding. Restaurants are changing their menus to provide lower-cost options. Retailers are discounting every day. Hotels are...

Blue Moonves.
May 18, 2009... Byline: Matthew Flamm CBS chief has more viewers than anyone else, but try telling that to advertisers The past year has been like a bad horror movie for CBS Corp., as it has been for every media company that gets most of its revenue...

Can Brooklyn keep its mojo? Sliding Manhattan rents threaten artsy borough's hip brand.
May 18, 2009... Byline: Miriam Kreinin Souccar Executives at Etsy, an online marketplace for handmade goods, flirted with the idea of moving their company to Manhattan when it outgrew its 5,000-square-foot space in downtown Brooklyn. Ultimately,...

Growing retailer to bow on B'way.(Callalilai)(Brief article)
May 18, 2009... Byline: Adrianne Pasquarelli It's out with the old and in with the new on Broadway south of Union Square. Clothing and accessories shop Callalilai recently signed a five-year lease for 3,100 square feet at 827 Broadway, between East 12th...

SpongeTech soaks up space.(SpongeTech Delivery Systems)(Brief article)
May 18, 2009... Byline: Amanda Fung Fast-growing retail sensation SpongeTech Delivery Systems has filled up every nook and cranny in its current office space and is moving down the block to 10 W. 33rd St. The Manhattan-based maker of sponges preloaded...

Executive Moves.
May 18, 2009... Byline: Maia Blume Accounting & Consulting Ernst & Young: Richard M. Jeanneret, 47, was promoted to Americas vice chair in the transaction advisory services practice from mid-Atlantic managing partner of assurance and advisory. ...

Landlord stretches for VC tenant.
May 18, 2009... Byline: Theresa Agovino RRE Ventures taken with generous concession package for E. 58th St. office Venture capital firm RRE Ventures inked a 10-year lease for roughly 8,600 square feet at 130 E. 58th St., between Lexington and Park...

In the Markets.
May 18, 2009... Byline: Aaron Elstein For the Weills, it may be a case of like father, like daughter Is there a curse on the House of Weill? Much ink has been spilled over the struggles at Citigroup Inc., the colossus assembled by Sandy Weill....

Trials of an accidental eatery boss.
May 18, 2009... Byline: Lisa Fickenscher Boutique hotelier launches posh spot during a scary time last week, when Henry Kallan bounded out of his stretch limo at the door of Montenapoan elegant Italian restaurant overlooking the serene atrium of The...

Port Authority vs. Silverstein feud heads to Gracie Mansion; Time running out, mayor tries to break WTC deadlock.
May 18, 2009... Byline: Theresa Agovino The port authority is demanding that developer Larry Silverstein give back one of the plots for his three planned towers at the World Trade Center site in exchange for helping him to finance construction of one of...

The Insider.
May 18, 2009... Who's on track to run the MTA? Insiders say that Gov. David Paterson's dumping of Metropolitan Transportation Authority chief Elliot "Lee'' Sander was a mistake because the governor's tenuous political situation will make it hard to...

New mix at Union Square; As big retailers leave, stores like Best Buy and Marshalls look to take their place.
May 18, 2009... Byline: Adrianne Pasquarelli Union square's big-box retailers are dropping like flies, but the area remains sweet for prospective tenants. Circuit City was recently shuttered, and music purveyor Virgin Megastore will close at the end...

Manufacturers aren't running away.
May 18, 2009... Byline: Matthew Sollars Steady real estate prices, fewer conversions keep industry in the city The recession has dealt a cruel blow to the city's dwindling manufacturing sector. Just 82,500 New Yorkers were working in manufacturing in...

Personnel File.
May 18, 2009... COMPANY Razorfish TITLE Global chief executive AGE 46 RESUME President of East region, chief operating officer, Razorfish MANAGEMENT STYLE Collaborative Hobby Biking

Developers' about-face; Unable to build, they focus on sales.
May 18, 2009... Byline: Amanda Fung As recently as last year, Kenneth Horn routinely began marketing his condominium projects within a few months of breaking ground. This year, when it came to marketing his newest Manhattan project, Hudson Hill, the...

A tale of two auction houses; Fortunes diverge as recession makes an art of picking.
May 18, 2009... Byline: Miriam Kreinin Souccar How to succeed in the current art market? Christie's seems to have the answers. Sales over the past two weeks at the spring art auctions in New York were a fraction of what they were a year ago. But in...

Correction.(Correction notice)
May 18, 2009... The Gaetano Development Corp.'s willingness to sell packages of units at its Lore Condominium stemmed from an offer of such a purchase, rather than a change in the company's marketing strategy. This fact was misstated in a May 11 story on bulk...

Hot Jobs.
May 18, 2009... Byline: Miriam Kreinin Souccar WANTED: President and chief executive ORGANIZATION Museum of American Finance JOB DESCRIPTION Heading the country's only museum dedicated to the history of America's free market system MOST...

Rent control out of control.
May 18, 2009... Tenant groups and 16 state senators are making their final push to win sweeping changes in the system that regulates rents on 1 million apartments in New York City. With the Democrats in control in the Senate, they want to seize the first...

Economic Development 2.0; Old City Hall way: Build more buildings. New City Hall way: Build more businesses.
May 18, 2009... Byline: Daniel Massey On a february night, 50 top executives from traditional and digital media, advertising, venture capital and higher education joined Mayor Michael Bloomberg for a buffet dinner at Gracie Mansion. WPP Group Chief...

No. 91.
May 25, 2009... The recession has brought most retailers to their knees, but teen queen Aeropostale Inc. is still standing, with double-digit monthly percentage increases in same-store sales. The 912-unit chain can credit its budget-conscious marketing and...

Executive Moves.
May 25, 2009... Byline: Maia Blume Accounting & Consulting Tatum: Patricia Owens, 45, was named partner and practice leader of business development. She was formerly chief strategy officer at Decision Strategies International. Architecture &...