new york, new york, p. 6 sellingbloomberg’svisiongains in ad revenue the post has made gainsin...

BY ANNE MICHAUD

mayor michael bloomberg andhis staff labored for nearly twoyears on an ambitious plan for thecity’s growth over the nextquarter-century. Now thework of selling his vision tothe public begins—a taskthat may be just as arduous.

Last week, two days afterthe mayor had presentedPlaNYC 2030, state legisla-tors began receiving infor-mation packets detailing its127 initiatives. Includedwas an analysis of the com-muting patterns in eachlawmaker’s district—abuilding block for winningapproval for the most con-troversial piece of PlaNYC: con-gestion pricing.

The mayor’s lobbyists in Al-bany have drawn up a two-page

brief on changes needed from theLegislature. A coalition of 70groups—from environmentaliststo labor and business interests—has begun mobilizing to talk up theplan with lawmakers. Called the

Campaign for New York’sFuture, the coalition has or-ganized a lobbying day onWednesday.

“This is a new conceptfor New York, and it’s acomplicated one,” saysDeputy Mayor DanielDoctoroff, who ledPlaNYC development. “Itmay take a lot of discussionand compromise, and we’reeager to do that.”

PlaNYC is a grand de-sign to prepare New YorkCity to accommodate

900,000 more residents by 2030,by adding capacity to parkland,electrical supply, drinking water,

Administration mobilizes allies to generate support in Albany

Lutnickversus theloudmouth

BY AARON ELSTEIN

after 658 Cantor Fitzgerald em-ployees perished in the WorldTrade Center attacks, Chief Exec-utive Howard Lutnick staked hisbrokerage’s fu-ture on eSpeedInc., an electron-ic trading opera-tion that he hadcreated two yearsearlier.

“Godspeed toeSpeed—I loveyou,” Mr. Lutnick wrote in a pub-lic statement on Sept. 20, 2001.

At first, his faith was rewarded.Trades once made over the phoneby Cantor brokers migrated almost

Selling Bloomberg’s vision

BY MATTHEW FLAMM

it has been a tough spring formost of broadcast television, but ithas been positively brutal forNBC.

The Peacock network has suf-fered through five straight weeksof its lowest prime-time ratingsduring a regular season since peo-ple meters went into use twodecades ago. The dismal numbers come just

as NBC is preparing for the adver-tising upfront sales period, ensur-ing that the network will begin ne-gotiating next season’s sales infourth place for the third straightyear. NBC plunged from its long-time first-place perch in 2004.

Wall Street is concerned, too.On Friday, Citigroup analysts ad-

vised parent company GeneralElectric to spin off the NBC Uni-versal division, saying that the net-work’s problems had become adistraction.

Worst of all, the most recentfailures occurred despite NBC’sexpensive effort to revive its repu-tation for upscale, quality pro-gramming.

“The majority of what theytried to do didn’t pan out,” says BillCarroll, director of programmingfor consulting firm Katz TelevisionGroup.“They must be disappoint-ed, given the investment theymade.”

Disappointed and frustrated,considering how well the seasonstarted.

Sunday Night Football, a newface in the lineup,helped boost rat-ings among advertiser-friendly18- to 49-year-olds by 16%. Thedrama Heroes became the biggestnew hit on television. Game showDeal or No Deal also took off.

But football season ended, and

NBC’s ratings woes mountas key ad sales period begins

See ADMINISTRATION on Page 8

Former No. 1network in cellarafter spending big;Wall Street restive

Cantor CEO andinvestor square offover eSpeed

PlaNYC2030NextStepsCONGESTIONpricing’s silverlining Page 3ENERGY plansdovetail closelyPage 3EDITORIAL: A political map2POLL: Narrowmajority backsMike Page 13

Howard Lutnick

TEAM EFFORT:Mayor MichaelBloomberg’saides spent fivemonths briefingconstituenciesto build acoalition. Hisplan includesproposalsinvolving traffic,transportationand energy.

BUSINESSLIVES

The heavy stress ofadjusting to a new

life after rapidweight lossPAGE 27

Retailers switch from defense to offense withtheir online storesPAGE 2

Nightlife hot spotgoes looking forcheaper digsNEW YORK, NEW YORK, P. 6

What Don Imus can learn from the fall and rise of Martha StewartVALERIE BLOCK, PAGE 13

Tensions emergebetween Spitzerand BloombergTHE INSIDER, PAGE 14

Regime changebrings new ideasto kitchen at Tavernon the GreenPAGE 29

THE FIRST PUBLIC HEARING ONTHE CITY’S PLAN to redevelopWillets Point in Queens islikely to become a forum forlocal property and businessowners to protest the use ofeminent domain.The purposeof the meeting is to hold ascoping session on theenvironmental impact of theEconomic DevelopmentCorp.’s plan for the area, now acollection of auto body shopsand metal scrap yards nextdoor to Shea Stadium.

NEW YORK DOWNTOWNHOSPITAL named JeffreyMenkes, a consultant atPricewaterhouseCoopers,chief executive. Earlier in hiscareer, Mr. Menkes was chiefoperating officer at Beth IsraelMedical Center, where heheaded an effort by the

07148601068

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See ACTIVIST on Page 9See NBC’S on Page 8

See AT DEADLINE on Page 2

TOP STORIES

AT DEADLINE

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VOL. XXIII, NO. 18 WWW.NEWYORKBUSINESS.COM APRIL 30-MAY 6, 2007 PRICE: $3.00

REPORT

NY FILM INDUSTRYPlum is pick of indie

crop; bigger budgets fordistributors PAGE 17

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CNYB 04-30-07 A 1 4/27/2007 7:23 PM Page 1

ELECTRONIC EDITION

BY ELISABETH BUTLER

for years, Macy’s flagship at Herald Square has proudly called itself the world’s largest store.But size isn’t everything. Macy’s parent, Federated Department Stores, has set out to turn itsonline store into its biggest moneymaker and is spending $100 million to do so.

Federated is just one of many brick-and-mortar retailers spending huge sums and embracingthe Web as their biggest growth opportunity. Companies such as Polo Ralph Lauren andKenneth Cole Productions are lavishing big bucks on their Web divisions, doing everythingfrom taking control of their sites to building warehouses that meet surging demand tocreatively blending service between the Web and physical locations.The moves mark a sharpescalation from the days when sites were largely designed to defend the brand’s turf.

“Retailers are seeing how much business they can generate online,” says Lori HollidayBanks, a senior fashion analyst at consulting firm Tobe. “In many cases, it’s their biggest store.”

Federated’s expenditure this year is designed to bolster distribution for its online orders.The

hospital to reach out to NewYork’s Asian communities.That experience could beuseful at New York Downtown,which markets its servicesaggressively to residents ofnearby Chinatown. “China-town is one of our maincommunities; obviously, Jeff ’sexperience at Beth Israel willfit right in with our goals,” saysDr. Bruce Logan, who hasheld the CEO and presidentposts for three years. He willresume his previous post asmedical chief.

THE FIRSTMAJOR MOVIE

PREMIERE in Queenstakes place today when

Spider-Man 3 is unveiled atKaufman Astoria Studios. Morethan 3,000 people are expectedto attend the event, which isbeing held in Queens becauseit’s the home borough of PeterParker, aka Spider-Man.Thepremiere kicks off a citywidepromotional week organized byNYC & Company andColumbia Pictures. Otherevents will include a live-spiderexhibition at the AmericanMuseum of Natural History,Spider-Man workout classes atCrunch gyms and Spider-Mansightseeing tours on Gray Linebuses.

I-HATCH VENTURES PLANSTO LAUNCH a $125 millionventure capital fund nextmonth.The investment pool—the third for the Manhattan-based firm—will focus on

mobile telecommunications andbroadband startups. i-Hatch hasinvested mostly in local techfirms including mobile softwarecompany Vindigo, which wassold to For-Side in 2004.

SO FAR, 13 OVERSEASCOMPANIES that have gonepublic this year have elected tolist their shares on New Yorkexchanges, according toRenaissance Capital, aGreenwich, Conn., researchfirm.That is three more to liston the New York StockExchange, Nasdaq or the

American Stock Exchangethan at this point last year.

Some business leaderscontend that heavy

regulation is discouragingforeign companies from raising

capital in the United States.

DELOITTE & TOUCHE ISCONSIDERING the launch of

a campus-like training centercalled Deloitte University.TheManhattan-based consultingfirm plans to hold at least 75%of its training exercises,conferences and events at thesite, according to a companyofficial.The location of thefacility has not been determined,and the size of the investmentwas not disclosed.

PATINA RESTAURANT GROUPIS TAKING OVER a managementcontract at Walt DisneyWorld’s Epcot in Orlando,Fla., from Alfredo of Rome, arestaurant with more than$20 million in revenues.Thecontract represents Manhattan-based Patina’s first foray intoFlorida and its second deal withDisney, for which it operates arestaurant at Disneyland inAnaheim, Calif. �

BY MATTHEW FLAMM

the new york post returns to thereal world of newspaper economicstoday,when it doubles its newsstandprice to 50 cents a copy.

The News Corp. tabloid hasbeen the lowest-priced daily in townsince it started selling at a discountin 2000. The 25-cent newsstandprice worked successfully as a keyfactor in the Post’s relentless climb tosurpass the Daily News in circula-tion, but also contributed to a riverof red ink. Estimates of its lossesrange from $10 million to $75 mil-lion a year.

Observers expect that the paperwill shed some readers, but say thatthe move is still worthwhile.

“It’ll increase revenue and reducenewsprint costs to the extent that

circulation goes down,” says news-paper industry analyst John Mor-ton. “The question is how much thelower circulation will affect adver-tising rates.”

Gains in ad revenue the post has made gains in ad-vertising in the last year as its circu-lation has grown, but its advertisingrevenue still lags far behind theNews ’.

The move to 50 cents comes asthe Audit Bureau of Circulations is

releasing thelatest circula-tion figures fornewspapers.Though num-bers were ex-pected to bedown acrossthe country,Post PublisherPaul Carluccisaid in a recentstatement thatthe paper willreport “sub-stantial circula-

tion gains.” Six months ago, thePost’s circulation rose 5% to 704,011.The Daily News, owned by real es-tate developer Mortimer Zucker-man, increased 1% to 693,382.

“[Post executives] are confidentenough at this point that they’re notgoing to lose circulation,” says anewspaper industry insider.

A spokesman for the Post did notreturn a call. Executives at the Dai-ly News declined to comment.

COMMENTS? [email protected]

NY Post rehikes priceto stem steady lossesMove will put off some readers; will ad rates drop with circulation?

Betting onWeb storesRetailers make switch from defense to offense online

See RETAILERS SWITCH on Page 10

AT DEADLINE

VALERIE BLOCK ---------------------------13THE INSIDER------------------------------------14WEEK IN REVIEW-----------------------16REPORT: NEW YORK

FILM INDUSTRY------------------------17NEIGHBORHOOD

JOURNAL------------------------------------------21REAL ESTATE DEALS--------------22SMALL BUSINESS------------------- 23CLASSIFIEDS ----------------------------------24BUSINESS LIVES------------------------27

CORPORATE LADDER-------29EXECUTIVE MOVES--------------30THE WEEKS AHEAD------------30BOB LAPE---------------------------------------31

THIS WEEK IN CRAIN’S

vol. xxiii, no. 18, april 30, 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

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Unique visitors, in millions.

RETAILER MARCH ’06 MARCH ’07

Macys.com 5.0 8.1Bloomingdales.com 1.0 1.4SaksFifthAvenue.com 1.6 1.8Source: comScore Inc.

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MUCH MORE THAN A REARGUARD ACTION

NEW YORK’S TABLOIDS enter a new phase of competition.

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CNYB 04-30-07 A 2 4/27/2007 7:28 PM Page 1

BY ERIK ENGQUIST

lenore schwartz, whose StatenIsland company delivers electricalsupplies citywide, was aghast whenshe heard of the city’s plan to chargetrucks $21 to enter Manhattan. “Ithink that is unfair to business, es-pecially businesses on Staten Islandwho are already paying tolls,” she e-mailed her borough’s chamber ofcommerce.

But when told that the $21would be reduced by $14.40, hertruck’s Verrazano Bridge toll, shewarms to the idea.And she becomeseven more amenable when she real-izes drivers could even scootthrough the Brooklyn Battery Tun-nel rather than inching across theManhattan Bridge, because the$7.20 tunnel toll deduction wouldwipe out the rest of the $21 fee.

“I might break even,’’ she says,her voice lifting.“Given the fact thatit’s not going to hurt my company somuch, I think it’s a good idea.”

Most small businesses, especial-ly those in the outer boroughs, saythey are opposed to the mayor’scongestion-pricing plan. But it’sclear that they have missed its nu-ances—in particular, that their tollswould be subtracted from the fee toenter Manhattan below 86th Street.That suggests that Mayor MichaelBloomberg has an opportunity to

win them over.Some won’t be easy to convince.

Dominic Valente, president of Va-lente Yeast Co.in Maspeth,Queens,notes that he operates six trucks aday, five days a week. “It’s going tokill us,’’ he says. “You’re talking$33,000 [a year] right off the bot-tom line.”

Some skepticismtwo-thirds of that amount wouldbe offset by the $22,000 in tolls hepays. The mayor also predicts thathis trucks would be more productivebecause traffic speeds would in-crease by 7.2%. Yet Mr. Valente is

skeptical, because the benefits are“hard to calculate.”

Early objections to the mayor’scall for a three-year trial are to be ex-pected, says Kathryn Wylde, presi-dent of the Partnership for NewYork City. “Whenever this is intro-duced, before it’s explained every-body’s always against it.” Ultimate-ly, small businesses are shown tobenefit the most, she says.

Some who have studied the plansay its discounts would undermineits goal to reduce congestion. Rep.Anthony Weiner, a Queens Demo-crat and leading contender for may-or in 2009, says private cars would

keep plowing in from LongIsland, as the Midtown Tun-nel toll deduction woulderase their $8 congestion fee.He warns that to significant-ly reduce traffic or add rev-enue, the city would soonraise the fee, as London did.

Bridge users would be hitthe mayor’s plan wouldhurt users of the free East Riv-er bridges, who would have topay the full congestion fee.

The biggest beneficiaries wouldbe companies whose trucks makemany Manhattan stops,such as bev-erage makers or big couriers.Trucksoriginating within the zone wouldpay only $5.50 per day—and carsonly $4—and could make morestops if traffic moves more swiftly.Federal Express and United ParcelService say they are evaluating theproposal.

Many large corporations are al-ready lining up behind the mayor’splan, which would help fund majorprojects, including a direct rail linkfrom Kennedy Airport to lowerManhattan. Improved transit links

would boost tourism, says RobertLand, JetBlue’s senior vice presidentfor government affairs.

“This effort is intended to in-crease New York’s vibrancy in theinternational market for tourismand business,” he says, “and if thebenefits can also be sent to masstransit, which can help people get toand from the airport,we think that’sterrific.”

Mr. Bloomberg’s PlaNYC 2030forecasts a modest 6.3% reduction intraffic here, versus the 26% declinethat congestion pricing has pro-duced in London. The administra-tion hopes to spend $224 million infederal funds to launch a three-yearpilot program in 2009 that wouldraise about $380 million in its firstyear.After untold administrative ex-penses, the revenue would go towardmass transit, including express busesand ferries in areas lacking subways.

To implement his plan, the may-or needs approval from the Legisla-ture. Whether he can win the battlein Albany may be decided by hisability to reach business owners likeRobert Davis,president of Red AlertInc., a Staten Island security firmwhose trucks often venture to Man-hattan for a single job.Mr.Davis,likemany business owners interviewed,did not initially realize that the$24 in tolls his minivan drivers payfor a round-trip to Manhattanwould nullify the congestion fee.

He says that makes the plan ap-pealing for those who already pay twotolls,and adds with a chuckle,“You’regoing to have a lot of people movingtheir businesses to Staten Island.”


BY TOM FREDRICKSON

with gov. eliot spitzer’s andMayor Michael Bloomberg’s ener-gy conservation goals in remark-able agreement, the shared agendacould add up to real change.

The city and state plans both in-volve spending hundreds of mil-lions of dollars to produce energymore efficiently to address risingdemand and reduce greenhousegases. Both also agree on the needfor new power plants.

“On substance, they are com-pletely compatible,” says AshokGupta, director of the air and ener-gy program at the Natural Re-sources Defense Council.

The approaches differ struc-turally, with the city calling for it-self to play a key role. That point islikely to be contentious.

The state approach, which callsfor a reduction of 15% of forecast-ed power consumption by 2015,

and the city’s PlaNYC 2030 bothfocus on conservation. As Mr.Spitzer said in announcing hisgoals two weeks ago,“The cheapestand cleanest power plant in theworld is the one you never have tobuild.”

The state focuses on reducingelectricity usage by raising efficien-cy standards on some appliancesand toughening the state’s buildingenergy code. The city’s plan wouldreduce demand by making build-ings more efficient; upgradeswould be paid for by surcharges onelectricity bills.

Both city and state approachesremove a disincentive utilities haveto promote conservation.State reg-ulations mean utilities now makeless money when they help cus-tomers cut power consumption. Achange would allow utilities to col-lect just as much for helping con-sumers not consume power.

In addition to encouraging con-servation, the mayor and the gover-nor agree on the need for “re-pow-ering” existing plants with cleanertechnology, as well as expeditingthe approval process for new plantlocations. The governor proposedfast-tracking new plants with low

City, state energy plansagree on conservation

Silver liningontraffic fee

See CITY on Page 8

But diverge on who controls policy and purse strings; cooperation needed

April 30, 2007 | Crain’s New York Business | 3

INVESTMENT COMPANY (IN MILLIONS) BUSINESS

Teliris $40.0 Interactive videoconferencing

Eyeblaster $30.0 Online advertising

Stroz Friedberg $30.0 Computer forensics,cybercrime consulting,technical services

Ascend Health $20.1 Behavioral health care

CashEdge $20.0 Financial services technology

Paradigm Spine $13.9 Nonfusion spinal implants

Serious $13.5 Digital publishing, marketing

Digital Railroad $10.0 Web-based applicationsfor photographers

SpeechCycle $9.7 Automated call centertechnology

Next New Networks $8.0 Online video

Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report

BY THE NUMBERS

VENTURING INTO THE KNOWNarea companies drew $360 million in venture capital funding in thefirst quarter, down from $390 million in the same period last year. Butexperts note that one quarter does not a trend make. Indeed, the diversityof NYC-based recipients shows the strength of the venture scene here.

Top 10 venture capital investments in NYC in first-quarter 2007.

‘On substance,they arecompletelycompatible’

STREET VALUESmall businesses warm to idea whenthey learn details,givingmayor opening

SAL VALENTE ofValente Yeast Co.,which operates sixtrucks a day, fivedays a week.

Congestion-pricing forecast.

STARTUP COST $224 million

FIRST-YEAR REVENUES $380 million

NEW TRANSIT RIDERS 94,000

CONGESTION ZONE VISITS -1.4%

CONGESTION ZONE TRAFFIC* -6.3%*Vehicle miles traveled. Source: Mayor’s PlaNYC 2030

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CNYB 04-30-07 A 3 4/27/2007 7:02 PM Page 1

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HIGHLIGHTS REEL

➡ TheBloomberg/Crain’s NewYork Index

fell 0.3% toend theweek at395. TheS&P 500Index rose

0.7%,closing at

1494.

-0.3%

STOCKS TO WATCH by Erik Ipsen

SINKERS5-DAY 1-MONTH 3-MONTH CLOSING

% CHANGE % CHANGE % CHANGE PRICE

Travelzoo -25.9% -27.0% -8.7% $27.54

JetBlue Airways -11.0% -14.6% -30.5% $10.00

NYSE Euronext -7.8% -9.1% -15.9% $85.10

Maidenform -6.1% -14.1% +3.9% $20.16

G-III Apparel -4.9% -10.8% -20.1% $17.47

RISERS5-DAY 1-MONTH 3-MONTH CLOSING

% CHANGE % CHANGE % CHANGE PRICE

Avaya +9.3% +10.2% +2.4% $13.00

Jefferies +8.0% +12.0% +11.8% $32.50

J. Crew +7.3% +3.3% +10.5% $41.63

IBM +7.0% +6.8% +3.8% $101.17

General Maritime +6.3% +16.8% -8.3% $33.28

MEDCO WILL LIKELY POST a sharpslowdown in earnings growth thisweek—marking a 31% gain in the firstquarter versus a year earlier, downfrom 51% in the fourth quarter. Still,with growth like that, it’s no wonderthat shares of the huge drug-benefitsmanager are hot, up 47% so far thisyear. Patients aren’t the only onesbenefiting as more medications comeoff patent: So is Medco, which enjoyshigher margins on generics.

Later this month, The Children’s Place is expected to post a 6% gain inearnings for its fiscal second quarter—a big step down from the double-digitgains of previous quarters. But that’s not the reason the stock is off 26% inthe past six months. The children’s wear retailer is under a cloud due to aninvestigation of options grants that may yet force earnings restatements as farback as 2005. Recent sales numbers have been encouraging, however.

Investors are beginning to have secondthoughts about their shabby treatmentof one of the bluest of blue chips,American Express. After lagging themarket this year, the shares are finallygathering steam. They rose 2% lastweek, as the market digested newsfrom earlier this month of record first-quarter earnings, and began toanticipate another big jump for thecurrent quarter. Another factor: Thecompany’s P/E is at a multiyear low.

Cheaper drugs provide ideal infusion to stimulate Medco earnings juggernaut

BY ELISABETH BUTLER

Steven madden,once one of thefastest-growing companies inthe footwear industry, is sud-denly out of favor on WallStreet.

After quadrupling in the 18 monthsleading up to October, its stock hassteadily lost ground. Shares closed Fridayoff 31% from their autumn high.

Investors looking for a marathon win-ner rather than a sprinter would do wellnot to give up on this Manhattan-basedcompany. Steven Madden’s highly re-garded creative team, coupled with thecompany’s unique ability to switch gearsmidseason to take advantage of emergingtrends, mean the firm will probably catchanother wind in the coming months.

In addition, the stock is simply cheap.With a trailing 12 months price-to-earn-ings ratio of 15, the shares are a bargaincompared with peers Kenneth Cole Pro-ductions, with a P/E of 20, and SkechersUSA, with a P/E of 22.

In some ways, Steven Madden has be-come a victim of its own spectacular suc-cess.The company generated sales of $475

million last year, up 26% from 2005, andearnings per share of $2.21—up a whop-ping 56%. Part of that kick came from theFebruary 2006 acqui-sition of accessoriesmaker Daniel M.Friedman & Associ-ates, which added $53million in sales.

The company isexpected to take abreather this year.An-alysts expect sales torise by just 4%, to$494 million. Earn-ings, meanwhile, arelikely to slip slightly to$2.05 a share.

That slowdown,though, is alreadypriced into the shares.Scott Krasik, an ana-lyst at CL King & As-sociates, for example,does not recommendthe stock because of “alack of any earningsgrowth during the first half of the year.”

Four out of seven analysts who followthe company, however, rate its shares a“buy,” anticipating that the current earn-ings pause will prove short-lived.

And with good reason.Steven Maddenhas no debt and a heap of cash that can beused for another acquisition or a licensing

deal that would build on the company’sstrong brand recognition. Meanwhile,sales of Madden Girl, a line of girls’ appar-

el launched last year,are expected to grow atleast 25% this year.

The firm is also up-ping its retailing ef-forts this year,openingas many as 10 stores tobring its total to 105.That will help increasemargins and reducedependence on bigchains.

Steven Madden’sperformance is alsolikely to improve asfall’s shoe stylesemerge. The companyis able to react muchmore quickly to fash-ion shifts by constant-ly tweaking and retest-ing sample stylesmade in its Long Is-land City, Queens,

production facility instead of halfwayaround the world.

“It really allows him to keep up withthe trends faster,” says Maria Carvalho,footwear merchandising manager forThe Doneger Group.


Trendy shoemaker looksfor fresh footing after slipSteven Madden’sgrowth pause likely to be short-lived

Market cap $655 million

Trailing 12 months P/E 15

Total cash $109 million


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Project2 4/23/07 11:22 AM Page 1

NEW YORK,NEW YORK

Feeding futurePlaza partiersthe plaza hotel won’t reopenuntil the fall, but it has alreadysigned a deal for its lucrativecatering business.

Great Performances, whichwas founded by Liz Neumark,hooked up with internationalcatering giant Delaware NorthCos. of Buffalo to create a jointventure expressly for the Plaza.The new enterprise snagged a 25-year contract to handle foodservice operations in the hotel’sfamous ballroom and banquetspaces.

Elad Properties, whichbought the landmark building in2004, is transforming it into 200private residences and a 150-room hotel. Elad confirms thecatering arrangement, which hasnot been announced.

“We are delighted that thisgifted and creative company witha celebratory passion for food willbe providing six-star service in thegrandest space in the city,” aspokesperson says.

Rap starrolls as editor rapper and hip-hop producerKanye West has a new gig.Themusician will be guest editor ofComplex’s annual style and designissue, hitting stands in earlyAugust. Mr. West writes themagazine’s Beatdown column,critiquing men’s fashions.Thefive-year-old title comes out seventimes a year.

“Becoming a household namehas given Kanye access to a wholelot of cool stuff and information,whether about art, architecture orfashion,” says editor in chief NoahCallahan-Bever. “And there’s somuch trendsetting coming from

rappers to begin with.”Published by designer Marc

Ecko, Complex is the last titlestanding in the men’s shoppingcategory, having outlasted largerrivals Cargo,Vitals andSync. Ad pagesfor the twoissues out sofar this yearare up 16%,with revenue30% higher, to$8.4 million,according toPublisher RichAntoniello.“With the others gone, we’re fillinga segment,” he says.

Pelé promotesreading the statsfútbol mundial will launch aliteracy campaign in June toencourage youngsters and parentsto spend more time readingtogether—particularly if they’rereading the soccer magazine.

The effort, called Read FútbolMundial, features Brazilian soccerlegend Pelé, who stopped by theNasdaq television studio in TimesSquare last week to shoot apromotional spot.

“Self-serving or not, ifkids are engaged, the goalis being achieved,” saysFelix Sención, the title’sfounder and publisher.“Pelé’s message is, ‘There’sa time to play, and a timeto read.’ ”

The campaign willmark the fifth anniversaryof the weekly, which has acirculation of 1 millionand is distributed insideSpanish-languagenewspapers.The English-language edition, FútbolMundial USA, appears

inside USA Today Sports Weekly.“Mom and Dad can read it inSpanish, while the kids read it inEnglish,” Mr. Sención says.

Imus fracascuts both wayshoping to turn controversyinto capital, the East HarlemCouncil for Human Services isholding a news conference May 1to announce that Deirdre Imus hasagreed to help raise $9 million ofthe $11 million needed to turn aformer state-owned building atEast 123rd Street into New York’sfirst “green” clinic.

The wife of disgraced shockjock Don Imus will be the starattraction at the press event.

The group contacted Ms.Imus, who is known for hercommitment to green issues, inFebruary, “way before thiscraziness began,” says Ellie Sanchez,the council’s chief executive.Referring to recent publicity forMr. Imus, she says, “Maybe thiswill get us the attention we needto reach our goal.”

Contributors: Lisa Fickenscher,Matthew Flamm, Gale Scott

Flatiron venue sings high-rent blues

The high cost of real estate is causing trouble foranother New York music club.The Cutting Room, in theFlatiron district, has watched its rent double in the eight

years it has been on West 24th Street.Co-owners Chris Noth (left) and Steve Walter are now seeking

new digs, rather than paying even more to re-lease the currentspace.The popular haunt could move to Hell’s Kitchen within thenext year,Mr.Walter says.

He insists that The Cutting Room will not join a list ofcasualties that includes Tonic,Sin-e and CBGB.“Ours is a goodproblem,” says Mr. Walter, who wants to double the capacity ofhis performance space to accommodate 300. Recent acts include

legendary songwriter Jimmy Webb and comic Joan Rivers, whoperforms every Wednesday. Mr. Walter also wants to expand TheCutting Room to Las Vegas or Los Angeles.To do that, he and Mr.Noth may have to take on additional partners.

edited by Valerie Block

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Project2 4/25/07 12:14 PM Page 1

transportation and reasonablypriced housing. At the same time,the plan would lead to cleaner airand waterways and reduce green-house gases.

Insiders are already betting thatsome of the most sweeping propos-als will never clear their politicalhurdles.

Control and funding at issuebrooklyn Congressman AnthonyWeiner, a likely Democratic candi-date for mayor, has come out swing-ing against congestion pricing tollsas anti-middle class. To enact thePlaNYC ideas on pollution cleanupand energy conservation, the citywill have to wrest jurisdiction fromstate agencies. Transit investmentwould require more than $200 mil-

lion annually from state coffers, andGov. Eliot Spitzer is said to be un-convinced that he should join Mr.Bloomberg.

For example, two entities envi-

sioned by PlaNYC—an EnergyPlanning Board and an Energy Effi-ciency Authority—are “unlikely tohappen,” says Ashok Gupta,director

of the air and energy program of theNatural Resources Defense Council.

“The conflict is going to bearound creating these new struc-tures,” says Mr. Gupta, who has ad-vised both the mayor and the gover-nor on energy policy. “The goodnews is that the mayor can accom-plish 90-plus percent of what hewants without these new agencies.”

Mr. Bloomberg has just two anda half years remaining in his finalterm. Is he too ambitious?

“Not at all,” says former MayorEd Koch. “This is absolutely in linewith the way Bloomberg hasworked. He’s a visionary.”

Champions of PlaNYC say theyare prepared to carry it forward afterthe mayor leaves office. TheBloomberg administration spentfive months briefing environmental,

transit, labor, energy and businessadvocates to build the Campaign forNew York’s Future.

‘Loyal to the issues’“the mayor’s leadership hasbeen phenomenal, but we’re com-ing together not out of personalloyalty to the mayor but around thejoint vision for the city,” says AlisonHirsh, state policy director for theNew York League of ConservationVoters, a coalition member. “Weare loyal to the issues.”

Many observers believe that themayor will have a difficult time get-ting the Legislature to support con-gestion pricing, which would elec-tronically charge vehicles driving inManhattan below 86th Street dur-ing the business day.

The administration also needs

Albany’s approval to create a newtransportation funding mechanism,the SMART Finance Authority, tofill a $30 billion gap for such proj-ects as the Second Avenue subwayand another Hudson River traintunnel connecting New Jersey andManhattan.

In addition, city officials wantcontrol over cleanup of brown-fields—polluted former industrialsites—within the five boroughs.Some 7,600 acres could be redevel-oped for affordable housing.

Steven Spinola, president of theReal Estate Board of New York,likened the brownfields proposal tothe mayor’s takeover of publicschools.

“You’ve got to give [Mr.Bloomberg] credit for saying this ishis area, and he’s going to deal withit,” Mr. Spinola says. “But it’s goingto be an issue of turf.”


Administration aims for Albany support Continued from Page 1

or no emissions.The plans agree on the need for

long-term energy contracts to stim-ulate investments in power plants.Without them, investors will beafraid to invest the billions of dollarsneeded. Some plants could be builtvirtually tomorrow if long-termcontracts were signed.

Time to build, not just plan“it’s ludicrous to have half adozen power plants planned in thecity, if they are not being built,”says Clifford Case, an energy expertat law firm Carter Ledyard & Milburn.

The plans diverge when it comes

to who controls policy and the pursestrings.

The state calls those shots now, afact that the governor made implic-itly clear when he jumped ahead ofMr. Bloomberg’s announcement bya few days.The two politicians couldclash over strategy as they put theirplans into motion. Most of Mr.Bloomberg’s efforts will requirestate approval.

The governor’s strategy allowsthe city a smaller role than Mr.Bloomberg has outlined. However,Mr. Spitzer was not explicit aboutwhich of the following two tacks hewould take, according to FredZalcman, executive director of thePace Law School Energy Project:

He could expand the role the NewYork State Energy Research andDevelopment Authority alreadyplays in administering conserva-tion programs. Alternatively, hecould dial the state back to an ear-

lier time, before deregulation in themid-1990s, when the utilitiesthemselves oversaw the lion’s shareof conservation.

City officials contend that a vac-uum of energy leadership requires

them to step in and help administerconservation measures through anew board.The city argues that cur-rent conservation spending is poor-ly coordinated.

Taking the broad view“no organization is currently em-powered to develop a broad visionfor energy planning in the city thatconsiders supply and demand to-gether as part of an integrated strat-egy,” PlaNYC says.

Whoever coordinates conserva-tion in New York City—a new cityboard, the state, or utilities ConEdison and KeySpan—a high levelof cooperation among the city, thestate and the utilities will be re-quired.That means putting politicalbragging rights aside.


City, state plans agree on conservationContinued from Page 3

Heroes went on hiatus in March.Thestruggling Studio 60, by West Wingcreator Aaron Sorkin, was replacedby The Black Donnellys, which lasteda month.

Even critics’ darlings, like sit-coms The Office and 30 Rock, havebeen posting record-low numbers,while Friday Night Lights has yet tofind an audience. Aging stars ERand Law & Order appear close toburning out.

NBC Entertainment PresidentKevin Reilly, whose contract wasjust renewed, has been praised forsticking with shows like 30 Rock inhopes that their audiences grow nextseason. Blame falls mainly on hispredecessor, Jeff Zucker—recentlypromoted to chief executive of NBCUniversal—for failing to develophits.

“[NBC is] still paying for the sinsof the past,” says Ben Grossman, aneditor at Broadcasting & Cable mag-azine. “They didn’t have enoughgood shows to launch other showsbehind.”

NBC executives point out thatshows across television are havingtrouble. They say that this seasonthey achieved their main goals,

which were to bring back qualityprogramming and to deliver a cou-ple of hits.

“We still don’t have enough fire-power to keep our momentum go-ing through the entire season,” aspokeswoman says. “But we’reheaded in the right direction.”

Next season, she says, the net-work will aim to present more showswith the broad appeal of Heroes,while still attracting upscale viewers.

A difficult strategythat approach, which includeslow-budget reality programming,will be hard to get right, however.Deal or No Deal has been fading inthe ratings, and a recent entry, TheReal Wedding Crashers, has beenpoorly received.

“NBC has developed a split per-sonality between upscale, scriptedshows and lowbrow, unscriptedfare,” says Ed Martin, editor of MediaVillage.com. “As a result, itisn’t winning in either camp.”

While the presidential campaignwill create more ad demand nextyear, NBC will still have a toughtime raising rates when it presentsits fall lineup next month. Last year,only the addition of football enabled

the network to stay even with 2005and book sales of $1.9 billion. Bycontrast, in 2004, No. 1 NBC gar-nered $2.9 billion.

Prime time contributes only asmall portion of revenues at NBCUniversal, which includes thrivingcable channels USA and Bravo, aswell as Universal Studios. But GEhas been clear that it wants betternumbers.

NBC Universal’s first-quarterrevenues were down 22% from theyear-earlier period—8% if the 2006Winter Olympics aren’t consid-ered—to $3.5 billion. Massive jobcuts at NBC helped operating prof-it climb 6%, to $691 million. GEdoesn’t break out the division bysegments.

After three years on the job, Mr.Reilly will be feeling the pressure toshow that he can turn the networkaround. Advertisers say they’rekeeping an open mind, even aboutNBC’s basement ranking.

“I don’t think it’s going to help,”says Andy Donchin, director of na-tional broadcast at media buyerCarat USA.“But we’ll see what theyintroduce in May.”


NBC’s ratings woes mountContinued from Page 1


OVERLOADING THE SYSTEMProjected New York City energy increases.

Summer peak Electricity Heating fuel demand1 consumption2 consumption3

2005 11,400 50 million 422 million

2030 14,700 72 million 480 million

1-Megawatts. 2-Megawatt hours per year. 3-Millions of BTUs per year. Source: PlaNYC 2030

The mayor hasonly two and ahalf years left in office

IN SEARCH OF AN AUDIENCE: Though well-received by critics, comedy 30 Rock (top) anddrama Friday Night Lights have failed to catch fire with viewers.

nbc

nbc

CNYB 04-30-07 A 8 4/27/2007 7:26 PM Page 1

overnight to eSpeed computers, andrevenue from the upstart helpedkeep Cantor afloat while it distrib-uted $180 million to survivingspouses and children.

It’s a different story now. Earn-ings at eSpeed—a publicly tradedcompany that Mr. Lutnick con-trols—have plunged 90% from theirpeak in 2002,and the stock price haslost two-thirds of its value as rivalsset upon its business. The dismalperformance has attracted RobertChapman, a rambunctious investorwho owns 9.3% of eSpeed and is ag-itating for Mr.Lutnick to relinquishcontrol.

The stage is set for a battle be-tween one of Wall Street’s most en-trenched CEOs against the world’sloudest hedge fund manager. Ana-lysts and shareholders expect a skir-mish Thursday,when Mr.Lutnick isscheduled to hold a conference callto discuss eSpeed’s first-quarterearnings.

In recent months, Mr. Chapmanhas likened Mr. Lutnick to indictednewspaper tycoon Conrad Blackand suggested that either World-Com’s Bernard Ebbers or Tyco’sDennis Kozlowski be appointedeSpeed’s chief ethics officer aftertheir prison terms expire.

“You have two very strong-willed, capable people here whohave very different views of the sit-uation,” says Tim Allen, a portfoliomanager at Wentworth Hauser andViolich, which owns 1.3 millioneSpeed shares.

Too close for comfortmr. chapman believes that any eSpeed recovery will be compromisedby its cozy relationship with Cantor,which pockets 35% of the firm’s rev-enues. Mr. Chapman has demandedthat eSpeed be auctioned off. Earlierthis month, he protested when Mr.Lutnick dismissed an offer from Tul-lett Prebon, a London-based broker-age firm that offered to pay about$600 million, or a 25% premium.

“The seemingly impulsive rejec-tion has done nothing but heightenour concerns that Napoleonic be-havior continues to be condoned by

eSpeed’s director of fiduciaries,”Mr.Chapman raged in a press release.

The crusading shareholder, whohas used similar tactics against scoresof companies, insists that his cam-paign is winning converts. “I havenearly unanimous support” amongeSpeed’s Class A shareholders, Mr.Chapman said in an interview.

But he faces an uphill battle intrying to force the hand of Mr. Lut-nick, whose control of eSpeed’sClass B shares grants him power toelect the board. Dual-share struc-tures, a hallmark of family-run en-terprises like Cablevision Systems

Corp. or The New York Times Co.,are virtually unheard of among WallStreet firms. Mr. Lutnick declinedto comment for this article.

Growth planspeople close to Mr. Lutnick saythat eSpeed, which specializes inbrokering trades between large fi-nancial institutions, will grow by ex-panding into foreign exchange andfutures trading. But analysts believethose plans are doomed because ofcompetition:Few traders will give upexisting marketplaces for eSpeed.Making an acquisition could help,

but rival ICAP plc—which hasseized significant market share in thepast few years—beat it to the punchlast year by buying currency tradingsystem EBS Group for $775 million.

“There’s no sweet spot foreSpeed anymore,” says Tom Price,an analyst at research firm Tower-Group.“They’re getting creamed byICAP, and their system is now just anice alternative, a bleeder valve, fortraders to have on their desks.”

In 2006, eSpeed posted net in-come of $4.4 million, or 9 cents ashare, on revenues of $164 million.That was better than 2005’s per-

share earnings of 4 cents on revenuesof $153 million but far below 2002’speak profits of $42 million. Thisyear, the firm expects a patent expi-ration to cause earnings and rev-enues to decline.

One thing is certain: Every pieceof bad news from eSpeed will begreeted with a colorful reaction byMr. Chapman, who last year ac-cused another company’s board oftreating its responsibility to share-holders like “a time-share in a con-struction site Porta Potti.”

“Chapman is effective—and alittle crazy,” says one activist hedgefund manager. “He’s like a dog thatbites your leg and won’t let go.”



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AN ACTIVIST’STRACK RECORDROBERT CHAPMAN, managingmember of Chapman Capital, a$300 million hedge fund in ElSegundo, Calif., has targeted 20companies over the years. Someof his most recent actions:

Bought a 5.6% stake in CarrekerCorp. last year; company wasacquired in January 2007 for$172 million

Purchased a 9.3% stake inEmbarcadero Technologies earlierthis year; company was acquiredthis month for $200 million

Bought an 8.4% stake in Sunter-ra Corp. in 2006; firm was ac-quired last week for $325 millionSources: SEC filings; company reports

Activist investor goes after eSpeed chief

CNYB 04-30-07 A 9 4/27/2007 2:54 PM Page 1

company, which had total revenuesof $27 billion in 2006, expects com-bined online and catalog sales tocrack $1 billion for the first timenext year—a gain of more than 50%from last year’s total of $628 million.

“[Direct to consumer] is thefastest-growing part of our busi-ness,” a Federated spokesman says.

In fact, after the company put800 of its stores under the Macy’sbanner, Macys.com drew more than8 million unique visitors in March,up nearly 62% from a year earlier,ac-cording to Web tracker comScore

Inc. Some industry insiders seethose gains as vindication of Feder-ated’s decision to drop storiednames like Marshall Fields anddrive customers to a single brand—and a single Web site.

Web’s edgetraditional retailers reckonthat their physical stores, coupledwith a global Web presence,will givethem an edge,but they face well-en-trenched competition. Online-onlystores such as fashion houseShopbop.com—which was boughtby Amazon.com last year—and

footwear purveyor Zappos.com areboth growing at a furious pace. AsInternet boutiques, they already en-joy more cachet with coveted youngshoppers than old-line departmentstores do.

Saks Fifth Avenue has alreadydemonstrated that even the moststaid brands can be reborn on theWeb if they spend enough moneyand energy. In the three years sinceSaks Inc. made SaksFifthAvenue.com a top priority, the site has be-come the chain’s second-largeststore by sales volume. More impor-tant, the site attracts younger,

trendier customers than the group’sphysical stores.

Even more ambitiously,posh ap-parel maker Polo Ralph Laurenaims to transform Polo.com into theworld’s leading luxury retail site.The company is spending $175 mil-lion this year to buy out its two In-ternet partners and take full controlof Polo.com, which gets 1.8 millionvisitors a month on average.The re-vamped site will largely target inter-national shoppers.

Kenneth Cole Productions justincreased its e-commerce wager bysigning a multimillion-dollar con-tract with Accretive Commerce tofill Internet orders and answer cus-tomer inquiries. Accretive, inHuntersville, N.C., performs simi-lar services for American EagleOutfitters.

Payless ShoeSource,which oper-ates three dozen stores in New York

City, may have found a Web toolthat abets its brick-and-mortarchains.The company recently beganoffering free shipping if Internetorders are delivered to a nearbystore. Customers duck the handlingcharge, and retailers get anotherchance to add on to the sale whenshoppers come in to pick up theirmerchandise.

Casualties inevitabledo-it-yourself queen MarthaStewart is making a new Web push,adding scrapbooking supplies to theitems sold on MarthaStewart.com.

Casualties are inevitable whenestablished retailers start throwingtheir weight around online. Just twoweeks ago, Girlshop.com, a pioneerin apparel e-commerce, shut downafter operating for a decade.

“There were some skeptics a fewyears ago who thought that apparelwas a touchy-feely business—thatcustomers would want to try on be-fore buying,” says Ms. Banks atTobe. “It took many retailers by sur-prise just how much volume you cangenerate with this.”


Retailers switch to the offense onlineContinued from Page 2


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CNYB 04-30-07 A 10 4/27/2007 12:04 PM Page 1

NEW YORKERS PAY a ridiculousamount in taxes to begin with.(See Crain’s online poll, Page 13.)

How it is that taxi drivers aregiven consideration because it istheir livelihood, but the sameconsideration is not given to me?

Rest assured that I would nottravel to New York City duringpeak hours if I did not need to forbusiness.

lisa gahn

THIS IS NOT a Manhattan versus the other boroughs issue, asopponents try to present it.Congestion pricing has manysupporters in Queens andBrooklyn.

angus grieve-smith

I ALREADY PAY EVERY DAY to comehome to Staten Island. Why notban private cars in Manhattan?That makes sense.

rona solomon

BUSINESSES WILL THRIVE. The

$8 they spend on access toManhattan will be far less thanthey spend getting around NYCfor deliveries.

marc agger

THE FEE will hurt small businessesthat need to use cars to do businessin Manhattan. Also, it willundoubtedly affect the prices ofgoods and services.

janet finkel

ONE WAY TO CUT CONGESTION is tohave truck deliveries at night.Most of the congestion occursfrom trucks double-parking.Also, residents of Manhattan

should not have to pay; we alreadypay a hefty price for parking, as noon-street parking is set aside forus. Finally, the money raisedshould not be for mass transporta-tion but to fix the city streets.

elaine m. walsh

CONGESTION PRICING is a goodmove for environmental reasons(even more than for relievinggridlock), but the city needs todevelop reasonable, affordableand time-efficient alternatives torelieve the undue burden that thiswill place on middle- and lower-income residents in the boroughs.

Perhaps there’s a solution, such

as “park and train-it’’ hubs, thatalso involves the parking garageoperators, and that will actually cuttime and costs for commuters whonow drive the whole way.

sari roboff

THE OUTER-BOROUGH POLITICIANSare so shortsighted. If congestionpricing makes it more expensive tomove through Manhattan, morebusinesses will site in the outerboroughs.

jon stone

I HAVE SEEN congestion pricing,effectively, in London, and there is

Deputy mayor daniel doctoroffjourneyed to Staten Island last week totry to convince 300 of the borough’sleading businesspeople that they shouldsupport the mayor’s plan to rebuildNew York—including its controversialfee on cars and trucks that enter parts of

Manhattan.The standing ovation that the executives gaveMr. Doctoroff in what should havebeen hostile territory illustrates howMayor Michael Bloomberg hascaptured the city’s imagination withthe breadth of his scheme. It alsoshould bring home to theadministration that there is only oneway to overcome the hurdles thatPlaNYC 2030 faces: Build agroundswell of public support.

The mayor’s plan is designed toaccommodate population growth overthe next 25 years while improving the environment. Considerwhat it entails: making available thousands of acres forhousing by reclaiming brownfields, decking rail yards andconcentrating new construction at transit hubs.That’s justthe housing component.The plan would also expand thearea’s transportation network by providing as much as$30 billion to complete a long list of projects. It would alsoshort-circuit a looming $3 billion in citywide energy costs byspurring the construction of new clean-energy plants andretrofitting existing plants. Rounding out the mayor’s list:creating more parks and making the water cleaner.

But also ponder what the mayor will need from Albany tomake this all happen.The state Legislature and the governor

will have to agree to give the city a voice in cleaning upbrownfields. State leaders will have to confer on the city a newrole in the development of sites controlled by the MetropolitanTransportation Authority.They will have to approve thecreation of a city-state panel to raise money for transitprojects, which will give the city greater clout in planning.

The Legislature and the governor also will have to agreeto a major expansion of the city’s role in energy—including

the right to buy power directly, a sayon how companies like Consolidat-ed Edison operate and the authorityto levy a fee on consumers to financeconservation strategies. Last but notleast, they will have to approve thecontroversial fee for driving inManhattan south of 86th Street.

All this from Albany?To pull off this ambitious scheme,

the mayor and Mr. Doctoroff—thearchitect of PlaNYC 2030—will

have to heed the lessons of their failed effort to build astadium on the West Side and win the 2012 Olympics. Inthat campaign, they played the insider game, trying to amassthe support of powerful interests to convince AssemblySpeaker Sheldon Silver and Senate Majority Leader JosephBruno to approve the stadium.

A similar strategy this time would also be doomed.Albany officials will only be convinced to approve theseunprecedented measures if they believe that average NewYorkers enthusiastically support the mayor.The best hopefor success is a series of public debates, leading to yes or novotes from every community board, every borough presidentand the City Council.

Collision on congestion pricing

The political road to 2030

LETTERS TO THE EDITOR

V I E W P O I N T


MICHAEL BLOOMBERGpresents his plan torebuild New York.

See LETTERS on Page 14

editor in chief Rance Crainpublisher Jill R. Kaplan

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sale of ImClone stock,advertisers abandonedher and CBS droppedher television show.Even her own companyreduced the size of hername on Martha Stew-art Living magazine.

But her fortuneshave improved mark-edly since she was re-leased from jail. Rev-enues for her flagshiptitle jumped by 56% in2006 and were up 20%in the first quarter of 2007. Ms.Stewart is back on TV and is com-

ing up with new initia-tives to return her com-pany to profitability.Her revival was strikingin its swiftness.

She has companyon the comeback trail.ABC dumped StarJones from The View foraccepting wedding-related goodies fromvendors in exchange foron-air mentions. Thatdidn’t stop Court TVfrom signing up the

talk-show host, whose newly sveltefigure has been featured in every

celebrity magazine imaginable.Opie and Anthony re-landed on

terrestrial radio after getting tossedfor broadcasting a couple supposed-ly having sex in St. Patrick’s Cathe-dral. And who are they working for?CBS Radio, the same company thatfired them. Meanwhile, shamed an-alyst Henry Blodgett has written abook, and his blog has been quotedin The New York Times.

In today’s mash-and-thrash me-dia circus, transgressions like, say,P.Diddy’s gun-related charges,get afull public airing, and some form ofpunishment is meted out.

But such sinners are no longerexpendable. They may be fallenstars, but they’re also brands. Theirvalue cannot be measured by moralsalone—there’s too much time to fillon broadcast and cable TV,terrestri-al and satellite radio, streamingvideo and podcasts.

If they can bake an attractive souf-flé for the camera or make hitrecords, what media company canafford to write them off for good? Es-pecially those who appear humbled.Putting on a jailhouse poncho madethe haughty Ms. Stewart look sym-pathetic. Was it a true awakening orjust a calculated move? Who cares,as long as it works on the public.

So, what about Mr. Imus?Odds are that the 66-year-old

will find his way back into the spot-light if he so desires.Mr. Imus couldeven become the beneficiary of thesympathy vote, as many of his fansbelieve the punishment was tooharsh. Between that and the notori-ety that comes with making a hugepublic blunder, he could be biggerthan ever after his reinvention.

As long as he follows the script.If Mr. Imus keeps raising money forcharity and, say, writes a book witha mea culpa chapter, we’re likely tohear soon enough that he has hisown talk show—maybe even onMSNBC. His bad behavior is al-ready having a positive effect, withsome rappers promising to watchtheir words.

“I’d love to see him return to keepdoing all the good things he was do-ing,” says Roy Clark, a journalismprofessor at the Poynter Institutewho liked Mr. Imus’ commentaryand tuned out the churlish banter.“You can have humor without thehate speech.”

Martha stewart survived. Star Jonesmorphed. Henry Blodgett resurfaced. WillDon Imus rise again?

Americans love a public flogging, and thesecelebrities have given them their fill. But late-

ly, Americans have developed a distinct taste for redemption.When Ms. Stewart got into legal trouble for lying about her

CRAIN’S ONLINE POLL

WOULD YOU SUPPORT CONGESTION PRICING?A BARE MAJORITY of the1,150 respondents to aCrain’s online poll supportthe mayor’s plan to imposean $8 fee for driving inManhattan south of 86thStreet to reduce congestionand raise money for transitprojects.

For readers’ comments, see Letters to the Editor on Page 12.

Schadenfreudeand forgiveness

VALERIEBLOCK

joh

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No, it willincrease

congestionelsewhere Yes, it is

necessary toreduce gridlock

Yes, it willgenerateneeded funds

9%

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38%.No, it’s unfairto borough

residents andemployees who

have to drive

45%

.8%

CNYB 04-30-07 A 13 4/27/2007 12:05 PM Page 1

Mr. Meeks said that only 36 ofthe last 7.1 million flights by U.S.carriers were delayed five hours ormore after leaving the gate. Headded that most delays are causedby factors beyond the airlines’control.

Advocates of the legislation sayairlines should let passengersdisembark after a certain amount oftime.

New DOT chiefis pinpointedinsiders say Janette Sadik-Khan willbe named to head the cityDepartment of Transportation. Ms.Sadik-Khan, a senior vice presidentat engineering firm ParsonsBrinckerhoff, is viewed as the choiceof transit advocates, who believe that

she will favor pedestrian, bicycle andmass transit projects.

Michael Horodniceanu, a formerDOT traffic chief under MayorDavid Dinkins, was the otherfinalist for the post.The newcommissioner’s job will beparticularly challenging, givenMayor Michael Bloomberg’sambitious PlaNYC agenda.

Auto shops wantto go high-techautomobile service stationswill push the Legislature thissession to help them compete withcar dealerships. Independentgarages want Albany to guaranteethem access to the information andtools needed to diagnose and repairlate-model cars and light trucks.

Many vehicles are made withtechnology that controls nearly alltheir functions, and manufacturersgive only franchised dealers theequipment and training to docomplete repairs, according to theConsumer Electronics Association.Thefreeze-out of local garages reduceschoice and increases the cost toconsumers, the group says.

Assemblyman Darryl Towns,D-Brooklyn, has introduced a billto address the issue.

Duds drop-off binsunder discussionthe city council is moving toprohibit clothes-donation binsfrom city property and to requirebin owners to get permission fromproperty owners before putting the

containers on private lots.Themeasure would also requireorganizations to keep the binsgraffiti-free and in good repair.

But a hearing tentativelyscheduled for last week was

postponed until the council canwork out minor differences withthe Bloomberg administration.Currently, the law allows the city toremove bins on its property only ifthey present an “obstruction.” �

GUV AND MAYOR Points of tensionTHOUGH THE BLOOMBERG AND SPITZER ADMINISTRATIONS insist that they willabide by their commitment to work cooperatively, potential fissures areevident on several crucial issues: climate change, the Jacob K. Javits Centerexpansion and rebuilding downtown.

City Hall was more than a little miffed that Gov. Eliot Spitzer gave a majorspeech on clean energy just four days before Mayor Michael Bloombergwas scheduled to announce his PlaNYC 2030 initiatives. His team hadbriefed the governor’s aides on PlaNYC, and the proposals seemed eerilysimilar. For example, Mr. Spitzer wants to reduce electrical use by 15% offorecasted levels by 2015, which he dubbed “15 by 15”; Mr. Bloomberg hasa “30 by 30” plan, a 30% reduction in carbon emissions by 2030.

Ashok Gupta of the Natural Resources Defense Council attributes theplans’ substantive similarities to the fact that Messrs. Bloomberg and Spitzermined the same sources for good ideas. As attorney general, for example, Mr.Spitzer signed on to a coalition that pushed for renewal of the Article X powerplant-siting regulation, which the city also supported.

Publicly, members of both teams say that they are happy that they sharegoals on global warming.

But tensions are clearly high over the Javits expansion. At a Crain’sbreakfast forum earlier this month, Mr. Spitzer seemed ready to torpedo the$1.7 billion plan and called the design “really horrendous.” The Bloomberg

administration continues to support it.Also, the governor appointed two new

executives to lead the moribund LowerManhattan Development Corp., whichmany believed was going to be

downsized to a pro formaagency. The move could

set up a power struggle withthe city for control of

downtown rebuilding.


Join Our Vibrant Online Business Community

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SPONSORED BY

LETTERS TO THE EDITOR

no reason for it not to work in NewYork City.

There would have to be anexception for handicapped drivers,and there would have to be aprovision for those drivers whotraverse Manhattan to get to NewJersey or Long Island.

geo carl kaplan

IT’S ABOUT TIME. This is a good firststep, but it’s only the first step.Anyone who is against it is just aNIMBY.

sid meyer

TAXING PEOPLE who want to dobusiness in the city is shortsightedand only serves to drive morebusiness away.

The mayor could do more toreduce congestion by enforcing the “don’t block the box” regula-tions that were enforced during the Giuliani administration andhave been ignored during thecurrent one.

errol brick

NO MATTER HOW you frame theissue, the bottom line is that acongestion pricing fee would be atax imposed by the rich on the poorand the middle class.

Those who can afford it willcontinue to drive into Manhattanand will enjoy the luxury of having

the streets cleared of those whocan’t afford it.

kalman yeger

THE MAYOR KILLED expanded ferryservice from Staten Island, makingit necessary to occasionally drivein—especially on weekends—witha $9 Verrazano Bridge toll.

Adding an $8 driving toll inManhattan would show just howout of touch he is.

john luisi

SOME FORM of congestionpricing for Manhattan is inevita-ble, as are variable on-streetparking fees.

Both ideas were proposed byNobel Prize winner Bill Vickreysome years ago.

john tepper marlin

IT’S NOT FAIR to let rich people usethe public streets more thanworking people—working peoplepay the taxes!

charles gates

WRITE TO US

Letters to the Editor: Crain’s New York Business,711 Third Ave., New York, NY 10017. Fax letters to(212) 210-0799. Send e-mail to Crain’s staffers byusing their first initial, their last name [email protected]. For example, Editor Greg David is [email protected]. Names are in the list on Page12. All letters are subject to publication, providedthey are signed.


Congressmandefends airlines

Airlines that cancelflights and leavethousands of travelers in

limbo are especially unpopularthese days, but one New YorkCity congressman is willing totake up their cause.

Rep. Gregory Meeks, whoseQueens district includes JFKInternational Airport, is tryingto defeat legislative efforts topunish airlines that strandpassengers in planes for hours.

He recently testified before the House Aviation Subcommitteethat the industry’s competitiveness is all the incentive thatairlines need to provide good customer service.

THE INSIDERby Erik Engquist and Anne Michaud

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CNYB 04-30-07 A 14 4/27/2007 1:40 PM Page 1

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

NYT shareholderswithhold votesnew york times co. shareholders,led by Morgan Stanley, withheld42% of their votes from directorsto protest the Sulzberger family’scontrol of the company.Thatpercentage was up from the 30%who withheld their votes at lastyear’s meeting.

PA plans toweratop bus terminalthe port authority of NewYork and New Jersey revived aplan to build a1.3 million-square-footoffice tower ontop of itsmidtown busterminal.Theagency willnegotiateexclusively withVornado RealtyTrust and theLawrenceRuben Co.—the developersbefore theproject wasscrapped in 2001.

CEOs in and outlifetime President and ChiefExecutive Betty Cohen resignedafter two years at the helm of thecable channel, which has sufferedfrom management turmoil anddepressed ratings. ABC executiveAndrea Wong is succeedingher. … Colgate-Palmolive Co.’slongtime Chief Executive ReubenMark will retire July 1. Mr. Mark,who has been CEO since 1984,announced his retirement planslast year. He will be succeeded by

Ian Cook, Colgate’s president andchief operating officer. … Bristol-Myers Squibb Co. named interimChief Executive James Corneliuspermanent CEO.

IBM buys moreinternational businessMachines Corp. added $15 billionto its buyback program, whichnow totals $16.4 billion. Big Bluealso hiked its quarterly dividend33%. Both moves are aimed atboosting returns for shareholders.

Radio pranksterscbs radio suspended WFNYradio hosts Jeff Vandergrift andDan Lay after they twice aired aracially charged prank phone callto a Chinese restaurant.The callswere laced with lewd language andracial slurs.The suspensions cametwo weeks after Don Imus wasfired for making racially chargedremarks.

Principals settle contract termsthe union for New York City’sschool principals agreed to atentative labor contract that willgive its 5,600 membersa total 23% raisethrough 2010.The$190 million deal,which still needsmember ratification,allows for $25,000merit bonuses butsharply curtailsseniority rights.

Sex bias dealmorgan stanleyagreed to pay $46 mil-lion to settle a sexualdiscrimination lawsuit

filed by eight former and currentfemale brokers. In addition, thefirm said that it would boost thecompensation of its 2,700 femalebrokers by $16 million and changehow new accounts are distributedamong brokers.

Foot Locker’s bidsnubbedfoot locker inc.’s $1.2 billiontakeover offer for rival athletic-shoe maker Genesco Inc. wasrebuffed. Smaller rival Genescooperates 2,000 stores in NorthAmerica and sells wholesalefootwear under the Johnston &Murphy and Dockers brands.

Stable shutclaremont riding academy, ahorse stable near Central Park,closed its doors due to a decline inriders. Claremont, which openedas a riding stable in 1892, becamea riding academy in 1920.

Jarden buys K2for $765 millionconsumer products firm JardenCorp. agreed to buy K2 Inc. in acash-and-stock deal valued at$765.9 million. Carlsbad, Calif.-based K2, which makes K2 skisand the Rawlings brand baseballbat and glove, has annual sales of$1.4 billion.

Warner settleswarner music group corp. saidthat it would receive $110 millionas part of a copyright infringementsettlement with Bertelsmann AG.The German media giant wasaccused of contributing tocopyright infringement afterinvesting $85 million in Napsterin 2000—a time when Napsterallowed free file sharing of piratedsongs.

Broadway bowmel brooks’ musical TheProducers ended its Broadway runafter 2,502 performances at the St.James Theatre.The show, whichoriginally starred MatthewBroderick and Nathan Lane, wona record 12 Tony Awards and hasgrossed more than $1 billion inworldwide ticket sales.

—from staff reports andbloomberg news reports

Rosie to exitThe ViewROSIE O’DONNELL (left)is leaving The View afterfailing to reach a contractagreement with ABC. Theopinionated host boostedratings in her one seasonon the show afterMEREDITH VIEIRA left tobecome co-host of NBC’sToday Show. But she alsobecame famous for herfeuds with real estatemagnate DONALD TRUMP,as well as with her co-hosts. She was reportedlyseeking a one-year dealworth $10 million, whileABC was hoping to lockher in for three years at alower salary.

MEL BROOKS’show ends its run.


ECONOMIC SPOTLIGHT

FEBRUARY ’07 MARCH ’07 COMPARISON

NYC jobless rate 4.8% 4.3% 4.4%1

NYC employment change +6,500 +100 +24,2002

NY area inflation change +0.6% +0.7% +2.9%3

1-U.S. unemployment rate. 2-Change since December 2006. 3-Inflation rate for the latest 12-month period.

Economy WatchNYC’s jobless rate hit a record low in March, the eighth straight month inwhich the rate was below 5%. The city has added 72,300 jobs since Dec. 2005.

NYC Hotel StatsAverage daily room rates andoccupancy levels in New York Cityrecovered somewhat in February,according to data from PKFConsulting. The year-earlier levelswere $218.75 and 76.6%.

Broadway StatsAttendance and gross droppedin the week ended 4/22, TheLeague of American Theatres andProducers says. There were 38Broadway productions that week,including seven shows in previews.

bekk

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Capital IQ’s Weekly Deals ReportTRANSACTION SIZE

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

Hitwise Pty. Ltd. $250.0 Experian Group Ltd. SB M&AManhattan

Atlantic Express Transportation Corp. $165.0 Not disclosed GCIStaten Island

Vintage Filings $53.0 PR Newswire Association SB M&AManhattan

Arbor Realty Trust Inc. $51.5 Not disclosed GCIUniondale, L.I.

Anthracite Capital Inc. $50.0 Not disclosed GCIManhattan

Castle Brands Inc. $21.0 CNF Investments GCIManhattan

Network-1 Security Solutions Inc. $5.0 Hound Partners, Graham Partners, GCIManhattan Aurelian Partners

Selected deals announced during the week of April 15 for companies headquartered in metro NewYork. GCI: Growth capital investment represents new money invested in a company for a minori-ty stake. 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.

apim

ages

gett

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ages

CNYB 04-30-07 A 16 4/27/2007 12:06 PM Page 1

N E W Y O R K F I L M I N D U S T R Y

Plum becomes pickof indie producer cropBY MIRIAM KREININ SOUCCAR

The three principals of Plum Pictures were star-struck when they met Harvey Weinstein for thefirst time at this year’s Sundance Film Festival.

“I went up to him and said, ‘I’ve been trying toget in a room with you for 10 years,’ ” Galt

Niederhoffer recalls.Along with Celine Rattray and Daniela Taplin Lundberg,

Ms. Niederhoffer sits at the helm of a production companythat’s becoming the toast of indie film production, which isprimarily based in New York.

The youthful partners—all three have recently seen their30th birthday—not only made it into the same room with Mr.Weinstein at Sundance but held court through the night whilehe and three other distributors waged a bidding war for theirfilm Grace I s Gone, starring John Cusack.

Mr. Weinstein won: He paid $4 million for the movie—thefirst big deal of the festival—and snatched up a second PlumPictures flick for $3.5 million.

In the competitive indie marketplace, with hundreds offilms vying for attention, Plum Pictures is breaking out of thepack.The company—started by the trio of friends in 2003—has already made close to 10 movies, five of them accepted at

Tribeca Film Festexpands influence

BY LOUISE KRAMER

when the Tribeca Film Festi-val launched in 2002,its missionto help revitalize lower Man-hattan after the World TradeCenter attacks succeeded as if adirector had been working froma script. In a matter of months,founders Robert De Niro, JaneRosenthal and Craig Hatkoffcreated an ambitious programthat drew some 150,000 visitorsto the devastated area andpumped about $10 million intolocal hotels, restaurants andother businesses.

Since then, the annual eventhas grown beyond all expecta-tions, creating $325 million ineconomic activity for the city,according to festival organiz-ers, and drawing an estimatedtotal of 1.5 million visitors in itsfirst five years.

In its sixth season—whichbegan last Wednesday and runsthrough May 6—the festivaldrew a record 4,550 film sub-missions, with 157 chosen forinclusion.More than 50 corpo-rate sponsors signed on.

“We’re very excited aboutthe growth of the festival. It isgreat for New York, and it isgreat that we are able to accom-modate and grow the audiencefor independent film,” says Jon

Growth meansmore screeningsuptown; downtownmerchants teed off

See TRIBECA on Page 18

See PLUM on Page 18

ALL FOR ONE:Partners DanielaTaplin Lundberg, Galt Niederhofferand Celine Rattray(from left).


Cost-cutting and creativity help startup score Sundance coup bu

ck e

nnis

INSIDE John Sloss rewrites the ruleson packaging indie film deals PAGE 19

“John has changed the landscape ofwhat a lawyer can do in this business.”

—Harvey Weinstein, The Weinstein Co., Page 19

Ticketed Filmattendance submissions

2002 43,000 1,300

2003 81,000 2,400

2004 87,000 3,200

2005 138,000 3,300

2006 203,000 4,100

2007 n/a 4,550

n/a Not available. Source: Tribeca Film Festival

BOX-OFFICE BANG

CNYB 04-30-07 A 17 4/26/2007 3:44 PM Page 1

Sundance. Their secret: findingways to make quality films for$2 million or less—achieved partlyby unearthing projects so com-pelling that big-name talent likeMandy Moore and Matthew Brod-erick can be persuaded to take paycuts to star in them.

“Celine, Galt and Daniela aresmart, have impeccable taste andknow how to make movies for theright price,” Mr. Weinstein says.“They have quickly become a pow-erful production company withgreat talent relationships.”

Appropriate backgroundsin spite of their relative youth,the women weren’t industry new-bies or lacking pedigrees when theystarted Plum with $500,000 in seedcapital from Los Angeles entrepre-

neur Reagan Silber. (They havesince raised $10 million for a pro-duction fund and are looking for $20million more.)

Ms. Niederhoffer produced herfirst movie, Hurricane Streets, whileattending Harvard.The film aston-ished the industry, winning best di-

rector, screenplay and cinematogra-phy at Sundance in 1997. Ms.Lundberg, a Princeton graduate, isthe daughter of Jonathan Taplin,who produced Martin Scorsese’sMean Streets.British-born Ms.Rat-tray graduated from Oxford and wasa consultant with McKinsey & Co.before taking an executive positionin business development at HomeBox Office.

Yet, despite their backgrounds,connections and quick rise,the part-ners say they’ve weathered their fairshare of challenges.

“The first year we would sit bythe phone praying that the manypeople we had called would callback,” Ms. Rattray says. “Then,every day, we would receive e-mails,letters and phone calls saying ‘no.’ ”

The $3 million in funding forPlum’s first film, Lonesome Jim, was

lost when United Artists reneged onits commitment a month beforeproduction was slated to start. In-stead of scrapping the project, theproducers scrambled and got$400,000 from digital film label In-DigEnt, backed by IFC Produc-tions, to shoot the movie.

Homegrown setsthey cut costs by using the child-hood home of screenwriter JamesStrouse, who is also Ms. Niederhof-fer’s husband. Local businesses inMr.Strouse’s hometown of Goshen,Ind., offered discounts on variousservices, like catering.

Throughout all the budget cutsand changes,Plum managed to keepactors Liv Tyler and Casey Affleckon the project.

“To get Liv Tyler in the cast at allwas amazing,”says Jonathan Sehring,

president of IFC Entertainment.“Liv barely appears in any films.”

Lonesome Jim grossed just$154,187 at theaters domestically,but Plum says the investment wasrecouped from international distri-bution and DVD sales.

Though they now have morethan $400,000 to spend on a movie,the three executives still keep a lidon expenses. They fly coach, sleepon friends’ floors instead of in ho-tels, and often give up their produc-ers fee if it means the difference be-tween getting a movie made andnot. They each take a paltry annualsalary of $60,000 a year.

Their goal is to make great filmswhile proving that the medium canbe a solid investment, they say.GraceIs Gone, for example, was made for$2.4 million.

Plum is now scouring WallStreet for backers. “We think youcan get a 30% return on your invest-ment,” Ms. Rattray says.


Plum Pictures becomes pick of indie cropContinued from Page 17

Patricof, chief operating officer ofTribeca Enterprises, the companythat runs the event.

Gaining prominence as a film in-dustry marketplace, the event alsodraws distributors from around theworld. “It is now on the calendar interms of what the buyers take seri-

ously,” says Andrew Herwitz, presi-dent of The Film Sales Co., a firmrepresenting romantic comedy BlueState, which premiered at the festi-val last Friday.

Uptown venuesbut with growth come growingpains. With too few screens avail-

able in lower Manhattan, the festi-val has been forced to expand out-side of its original borders south ofCanal Street, ruffling the feathers ofthe very TriBeCa businesses ithelped to revive. This year, somefilms will be shown as far uptown asthe Cathedral of St. John the Divineon West 112th Street.

“Strictly from aselfish point of view, asa person emotionallyattached to down-town, it is disappoint-ing that it couldn’t beour event downtownand stay downtown,”says David Chase,general manager of theRitz-Carlton BatteryPark.The hotel had nomajor advance book-ings for the festivalthis year, unlike a pre-vious year,when spon-sor General Motors booked a largeblock of rooms and staged numer-ous events on site.

“When all the movies were here,people had to come down here topartake,” says Albert Capsouto, apartner in TriBeCa eatery CapsoutoFrères. The area has yet to reboundfully from the terrorist attacks.

Despite their envy of uptown,members of the community ac-knowledge that the festival contin-ues to bring tourism downtown.“We can’t fault the Tribeca FilmFestival for being the victim of itsown success,” says Andrew Neale,co-chair of the TriBeCa Committeeof Community Board 1.

Major sponsorswith success comes more success.The festival depends on sponsor-ships for most of its funding, andmajor media companies are signingup for the 12-day event at a rapidclip. ESPN got in on the game thisyear with the Tribeca/ESPN SportsFilm Festival, complete with 14sports-themed films, panel discus-sions and a day of free sports activi-ties.Adding star power,Tiki Barber,a former New York Giants runningback, is the program’s “ambassador.”

Other new sponsors includeMontblanc, Target and Yahoo, allwith special “experiences,” such as

Target’s Filmmaker Lounge. New-comer AARP is the official sponsorof the festival’s volunteer program.

In a display of the festival’s stay-ing power, the founders signed a20-year lease for space in a TriBeCabuilding in late 2003, and havesince leased more space there forthe event’s growing needs. Thebuilding, at 54 Varick St., serves asfestival headquarters and boasts acinema, a gallery, the festival’s boxoffice and office space for staff.Thefestival leased temporary officespace this year at 75 Varick St. toaccommodate its growth. Mr.Patricof says that some 400 peopleare working for the event thisyear—a record.

The festival has become such ahit that it has added year-roundevents, like the Tribeca Cinema Se-ries, which was launched last sum-mer at the festival headquartersbuilding. The series features pre-view screenings, panel discussions,premieres and sessions with actorsand directors, giving film fans an-other reason to head downtown.“The year-round screenings havebeen really well received,” says Mr.Patricof. “They give the filmmakersand studios we work with a great op-portunity to reach our audience.”


Tribeca Film Festival expands influenceContinued from Page 17


R E P O R T N E W Y O R K F I L M I N D U S T R Y

BLUE STATE, a romantic comedy starring Breckin Meyer,premiered at the Tribeca Film Festival last Friday.

“Every day, wewould receive e-mails, lettersand phone callssaying ‘no’ ”

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CNYB 04-30-07 A 18 4/26/2007 3:45 PM Page 1

BY MARGARET JAWORSKI

before the final credits rolledon the premier screening of LittleMiss Sunshine at the 2006 SundanceFilm Festival, John Sloss, the film’ssales agent, had fled the theater.

“I knew we had a hit, and I didnot want to get cornered by the dis-tributors,” Mr. Sloss says.

But he did want to throw thestars and interested companies to-gether to “wind each other up”aboutthe film. He told the cast to head toa classic Park City restaurant, theRiverhorse Café, grab a big tableand prepare to hold court.

Meanwhile, the sales agent washiding out at Ruby Tuesday’s, aneatery seven miles outside of town.He didn’t answer his cell phone,which rang “literally every six sec-onds,” Mr. Sloss says. At around10:30 p.m., he reappeared in ParkCity. “There was bedlam [amongpotential buyers],” he recalls.

The ploy succeeded. The sellingprice spiked to $10.5 million.

“We have some tricks,” he says.“We try to goose the market. We dothings like that.”

Impressive rosterin the cutthroat world of inde-pendent film sales and distribution,“things like that” can bring to minda wealth of skills or a multitude ofsins—or some combination of both.

To his admirers, the 50-year-oldfounder of Sloss Law Office and Ci-netic Media is an indie icon. He’sthe man who finds financing forworthy young filmmakers and helpsadvance their careers.

His sales roster is impressive:Boys Don’t Cry, Napoleon Dynamite,Spellbound, Far From Heaven andSuper Size Me, to name a few.

Harvey Weinstein, co-founderof The Weinstein Company, is a fan.“John has established himself as thepremier indie sales agent and haschanged the landscape of what alawyer can do in this business,” hesays.

Mr. Sloss’ detractors say that heis manipulative and divisive. Theysay he allows personal feelings to in-fluence his dealmaking and may sellto the highest bidder rather than tothe distributor best-suited to suc-

cessfully market the film.Not surprisingly, his critics de-

cline to comment on the record, anod to his power as well as to prac-tical considerations: Regardless ofhow distributors feel about Mr.Sloss, they need product.

“If he has a film they want,they’re going to have to deal withhim,” an industry insider says.

At this January’s Sundance festi-val, however, Mr. Sloss didn’t landthe top-dollar deal. That honorwent to his competition, sales agentHengameh Panahi at CelluloidDreams,who snagged $8 million forBritish coming-of-age film Son ofRambow.

Mr. Sloss didn’t go home empty-handed, though. He scored $5 mil-lion for La Misma Luna and $4 mil-lion for Grace Is Gone.

He represented the latter filmwith talent agents Rena Ronson andCassian Elwes of William MorrisIndependent, who, like all talentagents, take a 10% fee. Mr. Sloss’ feeruns closer to 15%, and he usuallygets a cut of all ancillary deals. Mr.Sloss says he’s worth it. As both the

sales agent and deal lawyer, he cansell and structure transactions as wellas secure financing for new projects.

Though he started his career as acorporate lawyer, Mr. Sloss quicklytransitioned to an entertainmentlaw firm. In 1993, he started hisManhattan firm.

His high-profile indie career be-gan serendipitously,when 6-foot-4-inch Mr. Sloss and director JohnSayles met as players in a pickupbasketball game.They hit it off, andMr. Sloss executive produced andrepresented several of Mr. Sayles’films, including City of Hope,PassionFish and Lone Star.

“John Sayles gave me credibility,”Mr. Sloss says.

Earning street credarmed with that credibilityand his sales and negotiating skills,Mr. Sloss launched film consultingand financing firm Cinetic Media in2001.

Cinetic’s edge is its 20 full-timestaffers, whose sole job is trackingmovies. “We find out what’s gettingmade, which films don’t have a dis-tributor—and we get in touch withthat filmmaker,”Mr.Sloss says.“Wewatch about 800 completed films ayear,” he says.

Despite industry opposition and

his competition, Mr. Sloss’ reputa-tion and status—both good andbad—are intact. And he doesn’tstress about sounding arrogant orself-promoting. “If I’m difficult or

iconoclastic,that doesn’t bother me,”he says. “Now, if people thought Iwas sleazy—that would bother me.”


Lawyer-cum-sales agenttransforms art of the dealJohn Sloss a masterat selling, financingindies, but calleddivisive by some



‘We have sometricks. ... Wetry to goosethe market’

PRIORITIES: “If I’mdifficult or iconoclastic,that doesn’t bother me. If people thought I wassleazy—that would botherme,” John Sloss says.

davi

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LEADERSHIP PROGRAM

CORO SEEKS RISING EXECUTIVES THE CORO NEW YORK LEADERSHIP CENTER is accepting applications frombusiness executives for the Leadership New York program. The program isdesigned for mid-career professionals who are committed to strengtheningNew York City.

Participants will learn firsthand about urban issues, including municipalfinance, public education and economic development. They will meet withopinion leaders and decision-makers, and explore cross-sector solutions toNew York City’s challenges.

The program will run from September 2007 through May 2008. It involvesattending one full weekday a month, two weekend retreats and groupplanning meetings.

For more information, visit www.coronewyork.org, send an e-mailmessage to [email protected] or call (212) 248-2935, ext. 304. The applicationdeadline is June 1.

CNYB 04-30-07 A 19 4/26/2007 3:46 PM Page 1

BY MIRIAM KREININ SOUCCAR

new york’s independent film dis-tributors are getting supersized.

With competition to land thehottest new movies and score abreakout hit tougher than ever, localdistributors from IFC Films toThinkFilm are boosting their budg-ets by the millions to buy the mostpopular films at high-end festivals.Some companies, such as longtimespecialty distributor Sony PicturesClassics, are going even further.Notonly is Sony releasing bigger-budg-et movies, it’s taking the unusualstep of producing them itself.

Film executives say the changesare crucial to their companies’ sur-vival.These distributors,either smallstand-alone outfits or independentdivisions of Hollywood studios,have built businesses around buyingfinished specialty films and releasingthem in art-house cinemas with thehope of eventually attracting wideaudiences.

Competition to land a limitednumber of independently producedmovies with big-name talent andthe widespread appeal of, say, a Lit-tle Miss Sunshine is stronger thanever. Bidding wars at Sundancereached a frenzied pace this year,with a record 13 movies scoringmultimillion-dollar deals.

Of course, making bets on a big-ger scale means taking on more riskin an already treacherous market.For every Brokeback Mountain, thereare hundreds of films that don’t findaudiences.

“With DVD systems and high-def TVs, you have to give people areally compelling reason to get offtheir couches and out of theirhouse,” says Eamonn Bowles, pres-ident of Magnolia Pictures, whichpaid $2.3 million for Sundance hor-ror hit The Signal,more than doublethe distributor’s usual outlay. “Ifpeople read it’s a low-budget film,they wait until video.”

Some bombsfilm executives say they’ve beenshocked by how poorly a number oftheir movies have fared in the lastcouple of years. Magnolia’s JesusCamp, a controversial documentaryabout a Christian summer camp, re-ceived an Oscar nomination thisyear, but grossed just $900,000 atthe box office. Even Candy, a recentThinkFilm release starring HeathLedger, bombed at the box office.

“We didn’t think it would be a bighit, but the worst-case scenario hasnever been so bad,” says Mark Ur-man, head of U.S. theatrical forThinkFilm.“It is possible for a well-reviewed film with known actors todo low six figures at the box office,which doesn’t even pay for lunch.”

With their new strategies, thesecompanies are doing their best toimprove their odds.

IFC Films, with backing fromparent company Cablevision, willrelease up to six films a year in the $4million to $10 million productionbudget range, a jump from its usual$2 million projects. The biggerbudget allowed the company to snag

You Kill Me, a mob comedy starringBen Kingsley, Téa Leoni and LukeWilson, and Penelope, Reese With-erspoon’s first film as a producer.Both movies will be released thisyear.

Five-year-old ThinkFilm wentlooking for an infusion of capital lastfall and was bought for $25 millionby L.A. entrepreneur David Berg-stein, owner of film financing com-pany Capitol Films. Now Think-Film can spend up to a hefty $20million acquiring and marketing amovie.

In February, the distributorsigned a deal with local productioncompany Killer Films to finance andproduce movies together. And atSundance, the company outbidWarner Independent and severalothers in a stiff competition for In theShadow of the Moon, the award-win-ning documentary about the Apollomissions with rarely seen NASAfootage of space. ThinkFilm spentaround $2.5 million and agreed to amultimillion-dollar marketing cam-paign to win the movie, which willbe released on Sept. 7.

“We paid more than twice whatwe’ve ever paid to pick up anymovie, but I think we can makemany, many times more than ourgreatest box office success up tonow,” Mr. Urman says.

Sony Pictures Classics, the old-est and one of the most prestigiousof the specialty distributors, is alsoplanning to release bigger movies,upping some of its film budgets to$15 million from an average of $6million. It plans to avoid the festivalbidding wars altogether by makingmovies itself.

Quid pro quosony just finished shooting TheJane Austen Book Club, starring LynnRedgrave, for $6 million, giving itworldwide distribution rights to thefilm. It is also helping to financeSleuth, a thriller starring MichaelCaine and Jude Law, in exchangefor dibs on the North American andLatin American markets.

With talent agencies or sales rep-resentatives now shopping the topfilms, and taking a 15% cut of prof-its, distributors see the wisdom inthe do-it-yourself model.

“It’s not worth it to go to Sun-dance and pay $11 million for justthe North American rights and thengive up a lot of the profits,” says TomBernard, co-president of Sony Pic-tures Classics. “It has put a lot of thecompanies out there in a position tosay, ‘Fine, we’ll make our ownmovies.’ ”


Indie distributors boost budgets to nab hitsMake bigger bets as bidding wars heat up; Sony triesproducing films itself



LIGHTS! CAMERA! ACTION!WITH NO DOWNTURN IN SIGHT for New York’s thriving film productionbusiness, the three major film studios have announced expansion plans.Silvercup Studios in Long Island City boasts the biggest plans—SilvercupWest, a new $1 billion 6-acre complex on the East River—but KaufmanAstoria Studios and Steiner Studios at the Brooklyn Navy Yard are adding totheir empires as well.

The studios are capitalizing on a boom that began when the city andstate approved a 15% tax credit in 2004. The credit will be in place until atleast 2011.

The studios are not only hoping to attract new business but also trying toaccommodate a trend toward larger productions that need multiple stages,says Hal Rosenbluth, president of Kaufman Astoria. “It’s not only to capturenew business but to secure the business I have,” he says. —CLAIRE WILSON

Kaufman SilvercupAstoria Studios Steiner Studios Studios

Current production 300,000 300,000 400,000space (sq. ft.)

Additional space 40,000 289,000 350,000(sq. ft.)

Cost n/a $45 million $1 billion*

Construction begins: 3rd quarter 3rd quarter 2008

Filmed there: Sesame Street The Hoax, 30 Rock,Music and Lyrics The Sopranos

n/a Not available. *Includes other development costs.

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For everyBrokebackMountain, manyfilms don’t findan audience

BIG-NAME TALENT IN THE INDEPENDENT FILM GAME: Reese Witherspoon is producing Penelope, while Michael Caine (middle) and Jude Law are starring in the thriller Sleuth.

THIS WEEK ON

Breaking news E-mail alerts from Crain’s New York Business keepyou up-to-date about arts industrynews in New York City.

Resources Click on the Arts page tofind easy links to local and nationalarts and culture organizations, photosof industry executives who haveappeared in the print edition ofCrain’s, and more.

Events View a listing of meetings,seminars and other New York Citynetworking events of interest to localbusinesspeople.

The next Crain’s event is a breakfastwith Patrick Foye, the new chairmanof the Empire State DevelopmentCorp., on Wednesday, May 9. To getmore details or to make reservationsfor the program, which will takeplace at the Sheraton New Yorkstarting at 8 a.m., visit the Crain’shome page and click on “Events.”

Back issues Use the archives tofind Crain’s stories in previouseditions of the paper.

Online polls Express your opinionabout key issues of the week.

Subscribe Use the “Subscribe now”button to get the weekly print editionof Crain’s or digital subscriptions tothe paper. You can also order trialsubscriptions of the daily Insider on-line political newsletter and the dailyPulse online health care newsletter.

Residential real estate Coming soon:an interactive Crain’s guide with theinside scoop on available properties.

CNYB 04-30-07 A 20 4/26/2007 3:47 PM Page 1

N E I G H B O R H O O D J O U R N A L

Apopular revolt againstthe influx of new resi-dents that made StatenIsland the fastest-grow-ing county in the state

has gone too far, according to a newforecast of the borough’s economy.

Development of downtown areasis being hamstrung, and the numberof residents aged 18 through 34 hasactually begun to decline, warnsStaten Island 2020, a sweeping re-port commissioned by the borough’seconomic development corporationand presented last week at its annu-al conference.

“Staten Island is not attractingyoung professionals from other bor-oughs or hanging on to its own,”saysJonathan Bowles, director of theCenter for an Urban Future, whichprepared the report.

The report also found that nomajor companies have put downroots in Richmond County since2001,even as the rest of the city greweconomically. In fact, vacancy rateshave been increasing at places likethe Teleport complex and at a six-year-old corporate park across thestreet. Meanwhile, new zoning iscrimping growth in places like St.George, where mass transit wouldsupport it.

The study offers recommenda-tions to stimulate the local economy,including reversing the downzoningof St.George to again allow develop-ment of 10-story structures.

“People were very frustrated withthe quality of the development on thesouth shore, and they did a blanketdownzoning of the entire island,”laments Robert Cross, executive di-rector of the Downtown Staten Is-land Council, a business group. “Ithas been a major hindrance for pro-gressive development.”

A critical mass of residents isneeded to attract businesses andallow St. George to reach its Ho-boken-like potential, the study says.Better marketing of its ferry termi-nal would also help. About 600,000commuters and thousands oftourists pass through the terminalevery week, yet it has only one retailtenant and no signage directing vis-itors to nearby cultural institutions.

“You should at the very least beable to buy a Staten Island Ferry keychain,” says Mr. Bowles.

Seizing those opportunities mayprove difficult. Many locals don’twant more visitors, let alone newneighbors.Moreover,they equate tallbuildings with blocked views, slowertraffic and crowded classrooms.

—erik engquist

Lions and tigersand toilets. Oh my!the bronx park neighborhoodin the central Bronx can now lay

claim to having the city’s greenest—and arguably most expensive—rest-rooms.

Hailed by some as nothing lessthan the future of restrooms in thecity, the facility opened on EarthDay last week. It is located justinside the Bronx River entrance tothe Bronx Zoo, and took nearly 18months and $2 million to build.

Designed by architecture firmEdelman Sultan Knox Wood,known for its work on environmen-

tally friendly projects, the restroom’sdesign maximizes daylight, reducesenergy use and takes recycling tonew heights. Sink water is divertedto a “gray-water garden” nearby,while solid waste is turned intocompost.

“We want to show that even thesmallest effort can be a conservationeffort,” says a spokeswoman for thezoo, which draws nearly 2 millionvisitors per year.

The facility’s crown jewels, so to

speak, are its 18 compostingtoilets. Pricier than even thetrendiest Kohl or AmericanStandard models, these envi-ronmentally correct commodescost $250,000.

The toilets were paid for by thecity Department of EnvironmentalProtection. The rest was paid for bythe Wildlife Conservation Society,which runs the zoo for the city ParksDepartment.

The Parks Department is re-

sponsible for the 638 comfort sta-tions throughout the parks. Thereare an additional 200 in zoos, muse-ums and botanical gardens. If thenew toilets prove effective, the de-partment may consider plans towiden their use.

—hilary potkewitz

Report finds S.I.development has stalled; Bronx Zoo gets green restrooms

St.George a long way from Hoboken

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CNYB 04-30-07 A 21 4/26/2007 7:53 PM Page 1

Another tenant hasfled midtown: Adver-tising agency Baron &Baron Inc., which spe-cializes in fashion, is

moving to Hudson Square.Baron & Baron—whose clients

include Hugo Boss, Michael Korsand Burberry—has signed a 10-yearlease for 13,000 square feet on thefifth floor at 435 Hudson St. The ask-ing rent at the building,which is be-tween Leroy and Morton streets, is$44 a square foot.

The company is relocating from9,000 square feet of office space at250 W. 57th St.

“They have always been in mid-town, but they wanted to movedowntown where it was more cre-ative,” says Marc Schoen,a broker atHunter Realty Organization whorepresented Baron & Baron.

Jason Pizer of Trinity Real Es-tate, the building’s landlord, repre-sented Trinity in the deal.

The Hudson Square neighbor-

hood—bounded by Morton Streetto the north, Sixth Avenue to theeast, Canal Street to the south andthe Hudson River to the west—has become a bastion for media-related companies. Advertising gi-ant Saatchi & Saatchi has occupied350,000 square feet at 375 HudsonSt. since 1998; new additions tothe neighborhood include Work-man Publishing Co.,The WeinsteinCompany and the Solomon R.Guggenheim Foundation.

Other tenants at 435 HudsonSt. include beauty care companies

L’Oréal and Kiehl’s.—julie satow

Nike considersswooping into SoHonike may bring its signature swooshto SoHo.

Industry insiders say the iconicsneaker company is close to signinga lease for a 3,200-square-foot storeat 21 Mercer St., between Grand andHoward streets.

The store would be Nike’s sec-ond company-owned location in thecity. The Beaverton, Ore.-basedcompany sells its shoes, apparel andaccessories at the Niketown store onEast 57th Street,as well as in dozensof Foot Locker and The Athlete’sFoot locations.

The proposed deal, which wouldinclude a 2,300-square-foot base-ment for storage space, raised someeyebrows in the real estate industry,because the space is located on thesouthern fringe of SoHo.

Fashion designer Vivienne Tamrecently pioneered retail develop-ment in that area when she an-nounced plans to open her first NewYork City store at 40 Mercer St. thisspring.

“She created an instant credibil-

ity,” says Stephen Tarter, a principalat Tarter/Stats Realty.

SoHo’s appeal for Nike is obvi-ous:The neighborhood has becomea hot spot for major chains lookingto attract New Yorkers and touristsalike. Foreign retailers such asLush,a bath-product specialist, andclothiers Uniqlo and Evisu have re-cently opened stores in the area, ashomegrown shops such as Kate’sPaperie and Broadway Panhandlerhave been forced out. Asking rentsregularly top $300 per square footon the ground floors of the bestSoHo locations.

On Mercer Street, asking rentsare about $160 per square foot.AlanSchmerzler, the Cushman & Wake-field Inc. broker who represents21 Mercer St.’s owner, declines tocomment on the deal.Rigby 21 ownsthe building, according to CoStar

Group Inc.’s real estate database.—elisabeth butler

Madden horns inon Bleecker Streetthe west village’s“Fashion Row”has a new resident.

Shoe designer Steven MaddenLtd. signed a 10-year lease for a1,400-square-foot Steve Maddenstore at 355 Bleecker St., betweenCharles and West 10th streets.

The ground-floor store—StevenMadden’s fifth site in Manhattan—places the retailer near high-endneighbors in a three-block strip thatextends from Bank to Charles streets.Nearby retailers include Marc Ja-cobs,James Perse and Juicy Couture.

“It’s exciting for Steve Maddento be so close to that area,” says Sin-vin Realty Corp.broker Kristin Mc-Cann, who represented landlord355 Bleecker in the deal. “Therearen’t fashion shoe stores there rightnow.They’re going to be able to grabthat market and take a little nichefor themselves.”

Nestled in a three-story land-mark building, Steven Madden willalso have access to a 1,400-square-foot basement. The asking rentwas $300 per square foot on the

ground floor.Sinvin principal Bruce Sinder

represented Steven Madden, whichplans to open the Bleecker Street lo-cation in May.

—kira bindrim

Baron & Baron abandons midtown for media-rich area; downtown shoo-ins

Real Estate Deals

Ad agency joins peers at Hudson Sq.


BY HILARY POTKEWITZ

the business mantra used to be,if you want to survive, diversify. Butthe travel industry is now chanting adifferent tune: If you want to sur-vive, specialize. And it’s not enoughjust to specialize in a region—you’vegot to commit to a particular activi-ty. Go ahead, the numbers say; pi-geonhole yourself.

Jack Ezon, president of leisuretravel for Manhattan-based Ova-tion Vacations, has seen his businessgrow by 53% in the five years sincehe started specializing in adventuretravel. The biggest growth, he says,has come in family vacations.“I havea wealthy Generation X clientele,and they want to take their kids onactive trips,” he explains.

After several years in the dumps,thanks to the ease of Internet book-ing, agent fee cuts by airlines and asharp decline in travel after Sept.11,professional travel agents are finallystarting to see some bright spots.The New York chapter of the Amer-ican Society of Travel Agents heldsteady at 400 members last year—

roughly the same number as the yearbefore, for a change, though still adrastic drop from the 1,200 mem-bers it had in 2001. In an age whencustomers can just as easily booktheir own trips with a mouse click,the struggle to stay relevant—andstay in business—has led some trav-el agents off the beaten path.

Mr. Ezon thought it best to gethis agents certified in the adventuretravel specialty, so he had them takea course and seminar series offeredby Virtuoso Ltd., a travel networkbased in British Columbia. Of the300 agents in his New York office,about 10 have been certified as Vir-tuoso Active and Specialty Travelprogram specialists.The VAST des-ignation guarantees a listing in theVirtuoso network’s 6,000-plusagent database.

Since his company gained the cer-tification last year,Mr.Ezon has seena 25% jump in business, with an av-erage booking of $1,140 in January ofthis year, up from $986 in 2005.

Niche expertisepart marketing gimmick, partlast-ditch effort at survival, the rushto become an expert in the next hotarea has taken hold. “A lot of agentsare looking to find important nich-es that are relevant to customers,”says Jim Forberg, director of tradeshow Adventures in Travel Expo.

Organizations are cropping up,

eager to set a standard. Adventuresin Travel Expo is establishing a des-ignation program in adventure, theInternational Ecotourism Society ishoping to certify travel providers aseco-friendly, and Manhattan-basedSpa Quest is offering credentials asa spa and yoga specialist.

“Specialization is where it’s at, ifthey want to survive,” echoesPauline Frommer,creator of PaulineFrommer Guides and daughter ofthe Frommer’s Travel Guidesfounder.

The fastest-growing areas ofspecialty travel for New Yorkers areadventure travel, eco-travel, yogatravel and culinary travel, expertssay. Once the domain of adrenalinejunkies and nature and health nuts,these tailored vacations are attract-ing “regular”travelers eager for a dif-ferent experience.

The Travel Industry Associationcites adventure travel as one of thetop three vacation requests in a 2006survey. In a separate study, 25% ofrespondents were interested in aspiritual/meditative vacation. Morethan 17% of travelers wanted culi-nary vacations.

In the old days, clients used tocome to agents and tell them whatto do, notes Alexandre Chemla, di-rector of Manhattan-based AltourInternational Inc. “Today, the agentis more of an adviser,” he says. Thebiggest growth area he’s noticed re-

cently is in yoga trips—or clientswho want yoga to be at least part oftheir vacation. He had to hire a yogaretreat specialist.

California connectionbut most New York agents havebeen slow to capitalize on the trend,leading customers to seek expertselsewhere. YogaFit Training Sys-tems Worldwide Inc., a yoga-in-structor training center based inTorrance, Calif., has become the ex-clusive travel provider for New YorkSports Clubs.

“They came to us to create a stan-dard program for their club yogaclasses,” says Beth Shaw, YogaFit’sfounder and New York native,“Then the demand for putting to-gether trips came along.”

Ms. Shaw created a travel arm ofher company, booking five retreats

last year. About 15% of her partici-pants come from NYSC. She’s al-ready planning 10 trips for next year.

Eastern Mountain Sports, anoutdoor gear retailer with a locationon Broadway, is a frequent stop fortravelers headed for vacation. Somany customers were asking aboutyoga trips that Assistant Store Man-ager Alan Aldo decided to partnerwith a yoga travel agency, Body &Soul Adventures, based in Rio deJaneiro, which specializes in re-treats. Of the 2,000 clients Body &Soul served last year,half came fromNew York City.

“People who are doing adven-ture-type travel aren’t going to yourtraditional travel agents anymore,”says Mr. Ando. “They just don’tknow how to plan it.”


Travel agents find that yoga,adventure are the tickets Boost bookingsby specializing in activities; some slow to capitalize

NOBLE CAUSE: Agency moves to 435 Hudson.

TRIAL RUN: Nike eyes a nascent retail hot spot.

SURVIVAL SKILLS: Ovation Vacations’ Jack Ezon had some agents certified in the adventuretravel specialty. Since his firm gained certification, Mr. Ezon has seen a 25% jump in business.

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CNYB 04-30-07 A 22 4/27/2007 12:07 PM Page 1

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

BY STEVE WEINSTEIN

In a world where advertisershave far more places to hawktheir wares than ever before,any new offering faces a toughstruggle just to get noticed.

Matt Wasserlauf knew that, buthe pushed ahead anyway. In 2005,his fledgling company, BroadbandEnterprises, debuted “Cube Fabu-lous,” which he bills as an online re-ality show that combines the spon-taneity of Web video with reality TV.Each of the show’s seven-minute

“webisodes” features the makeoverof an office worker’s drab cubicle toreflect the staffer’s inner self.

New offeringslast year, the first 12 “Cube”shows drew tens of millions of view-ers on the Internet and picked upbig-name advertisers, includingHonda and America Online. Thisyear, Mr. Wasserlauf is following upwith 18 more episodes of “Cube”plus five entirely new programs thathe will present to advertisers on May17,during the upfront market,whenthe television networks show theirnew products to advertisers.

Manhattan-based Broadband

Enterprises is a part of a new breedof network that brings together ad-vertisers hungry for elusive youngerconsumers and Web sites desperatefor cash. Other such networks in-clude Brightcove, Lightningcast,Tremor and Roo.

Broadband offers advertisers ac-cess to its loose network: 1,800 Websites assembled by Mr. Wasserlauf.Together, they garner 40 millionviewers per month, according tocomScore, a company that measuresInternet traffic.

Clients go through the list ofBroadband-affiliated sites, whichrange from music site Rock.comand educational site Fun School toArmy Times, and pick the ones theywant. Mr. Wasserlauf then streamshis clients’ ads—or more recently,their sponsored episodes of“Cube”—directly to those sites. Forthat, the sites get a fee from the ad-vertisers and Mr. Wasserlauf gets asmall piece of that.

“I approach this business thesame way as TV syndication,” saysMr. Wasserlauf, who learned histrade selling ads for Telepictures,thegiant syndication arm of Time-Warner’s TV studio, beginning in1996. Later, he discovered the po-tential of online video as a market-ing tool when he headed digital salesfor CBS, then moved on to TheFeedRoom, a video production anddistribution company.

Internet video still has a long wayto go to overtake the dollars flowinginto television. But according to Re-becca Lieb,editor in chief of ClickZ,a Web site that reports on online ad-vertising, “it’s the fastest-growingdisplay advertising on the Web.”

Mr. Wasserlauf believes one rea-son is that it is so easy for advertis-ers to measure the effectiveness ofsuch Web ads.

“As advertisers dip their toes intothe water, they’re seeing the actualresults of how many impressions ranand the activity based on those im-pressions,” he says.

The experience of American Ex-press is a good example. Josh Mar-

tin,new-media director at ad agencyID Media, picked out a group ofBroadband sites where he wanted toplace the card company’s ads. UsingBroadband’s proprietary technolo-gy Vindico, he then monitored inreal time how many people wereviewing the ads.More important,hecalculated how many people, and onwhich sites, were actually applyingfor a credit card.

Customized episodes“vindico lets us see how theclick-throughs are coming,” Mr.Martin says.

Shows like “Cube” take advertis-ing one step further by allowing ad-vertisers to produce their own

episodes and insert their messagesas they see fit. Mr. Wasserlauf saysthe idea is actually similar to whatadvertisers did half a century ago ontelevision when they produced theirown shows.

“We’re taking advertisers backto the days of Texaco Star Theater,”he says.

With “Cube,”clients feature theirproduct or serviceright in the episodes,along with a more tra-ditional ad message.Monster.com askedpotential makeovercandidates to send ré-sumés to its site andreceived more hitsthan from its SuperBowl ad.

AOL used “Cube”to promote its instantmessaging. Viewerscould click to a linkand IM friends about

what they were watching.The show has proven to be a hit

with the public and Mr. Wasser-lauf ’s clients. AOL’s webisode alonewas viewed by 27 million people andplayed 82 million times duringAOL’s sponsorship in December.


Young viewers, big-name advertisersclick with Broadband’s sites, programming

Web networker lands ads with online reality show


IN A NUTSHELL

BROADBANDENTERPRISESFOUNDED 2004

EMPLOYEES 2006 152007 26

REVENUES 2006 $5 million2007 $28 million SMALL BUSINESS AWARDS

SEEKING TOP ENTERPRISES IN NEW YORKCRAIN’S NEW YORK BUSINESS seeks nominations forits 12th annual Small Business Awards. The six winnerswill have distinguished themselves by showing a pattern ofgrowth in their businesses and by contributing to thequality of life in their communities.

Firms must be for-profits that have been in business forat least three years. They must employ no more than 150people, have annual sales of no more than $25 millionand be headquartered in New York City. Companies maynominate themselves or may be nominated by a businesscontact. The entry deadline is noon on May 14. Winnerswill be profiled in the Aug. 13 issue.

To nominate a business, send the company’s name andaddress and a description of its business and civic accom-plishments to Crain’s Small Business Awards, 711 Third

Ave., New York, NY 10017. The Information can also be e-mailed to [email protected] or faxed to (212) 210-0799.

Among last year’s honorees were Lexy Funk andVahap Avsar, founders of trendy retailer BrooklynIndustries; David Wender of WhenTech, a company thatmakes software used by options traders; and JeffreySmalls, whose eponymous electrical contracting firm hasfound success by specializing in transit projects. Winnersalso included Marco Minuto, whose Red Castle Bakerieschurns out meat patties in ever-increasing numbers anddescriptions; Gary Zammit, who bought a sleep laboratoryand turned it into Clinilabs, a big drug tester; and JamesO’Connell, Clifford Nordquist and Charles Contreras,whose Just Bagels Manufacturing has grown to have anationwide reach.

Zammit Smalls Funk and Avsar Wender O’Connell, Nordquist, ContrerasMinuto

j.sc

ott

berm

an

DAN TAYLOR had his cubicle redone for Broadband’s show.

CNYB 04-30-07 A 23 4/26/2007 3:50 PM Page 1


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PUBLIC & LEGAL NOTICES

Notice of Formation of ManhattanEndocrinologist PLLC. Arts. of org. filed withSecy. of State of N.Y. (SSNY) on 1/25/07.Office location: NY County. Principal businessaddress: 130 West 12th Street, Ste 7D, NY,NY 10011. SSNY designated as agent ofPLLC upon whom process against it may be served. SSNY shall mail copy of anyprocess against PLLC served upon: 43Greenwich Avenue, Apt. 1, NY, NY 10014.Purpose: to practice medicine.

Notice of Qualification of Praesidian CapitalManagement II, LLC. Authority filed with NYDept. of State on 3/5/07. Office location: NYCounty. LLC formed in Delaware (DE) on3/2/07. NY Secy. of State designated as agentof LLC upon whom process against it may beserved. NY Secy. of State shall mail processto the principal business address of the LLC:419 Park Ave. South, NY, NY 10016. DEaddress of LLC: c/o Corporation Service Co.,2711 Centerville Rd., Ste. 400, Wilmington,DE 19808. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activity.

NOTICE OF FORMATION OF LIMITED LIABILITYCOMPANY. NAME: CHADERTON ADVISORS,LLC.Articles of Organization were filed with theSecretary of State of New York (SSNY) on02/01/07. 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 processto the LLC, 845 3rd Avenue, 6th Floor, NewYork, New York 10022. Purpose: For anylawful purpose.

Notice of Qualification of Lion Hound CapitalGP LLC. Authority filed with NY Dept. of Stateon 1/17/07. Office location: NY County. LLCformed in Delaware (DE) on 1/11/07. NY Secy.of State designated as agent of LLC uponwhom process against it may be served. NYSecy. of State shall mail process to the principalbusiness address of the LLC: 106 SeventhAve., #2A, NY, NY 10011. DE address of LLC:c/o The Corporation Trust Co., 1209 OrangeSt., Wilmington, DE 19801. Cert. of Form. filedwith DE Secy. of State, Townsend Bldg., Dover,DE 19901. Purpose: any lawful activity.

Notice of Formation: 192 Surf LLC. Art. ofOrg. filed with Sec. of State of NY (SSNY)on 2/22/07. Office loc.: New York County.SSNY designated as agent of LLC uponwhom process against it may be served.SSNY shall mail process to: c/o David Selig,529 West 42nd Street, Suite 9-M, NY, NY10036. Purpose: Any lawful activity.

Notice of Qualification of Tourneau, LLC.Authority filed with NY Dept. of State on3/6/07. Office location: NY County. LLCformed in Delaware (DE) on 3/1/07. NYSecy. of State designated as agent of LLCupon whom process against it may beserved. NY Secy. of State shall mail processto: 3 E. 54th St., NY, NY 10022, principalbusiness address of the LLC. DE address ofLLC: c/o Corporation Service Co., 2711Centerville Rd., Ste. 400, Wilmington, DE19808. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activity.

Notice of Formation of RHR West 100th StreetLLC. Arts. of Org. filed with Secy. of State ofNY (SSNY) on 3/31/06. Office location: NYCounty. SSNY designated as agent of LLCupon whom process against it may be served.SSNY shall mail process to: c/o CT CorporationSystem, 111 8th Ave., NY, NY 10011, registeredagent upon whom process may be served.Purpose: any lawful activity.

Name of For. LLC: LDVF II Plaistow LLC. Appl.for Auth. filed with Sec. of State of NY: 2/7/07.Jurisd. and date of org.: DE 1/3/07. NY Stateoffice loc.: NY Cty. Sec. of State of NY designatedas agent of LLC upon whom process may beserved. Sec. of State shall mail copy ofprocess to principal business location of LLC:1345 Avenue of the Americas, NY, NY 10105.Addr. of LLC in DE is c/o National CorporateResearch, Ltd., 615 South DuPont Hwy.,Dover, DE 19901. Authorized office in DEwhere Cert. of Form. is filed: DE Sec. of State,Townsend Bldg., Dover, DE 19901. Purpose:any lawful activity.

Notice of Qualification of Morgan StanleyManaged Futures HV, L.P. Authority filed withNY Dept. of State on 3/12/07. Office location:NY County. Principal business address: 330Madison Ave., 8th Fl., NY, NY 10017. LPformed in Delaware (DE) on 2/22/07. NY Secy.of State designated as agent of LP uponwhom process against it may be served. NYSecy. of State shall mail process to: c/o CTCorporation System (CTCS), 111 8th Ave.,13th Fl., NY, NY 10011. DE address of LP:CTCS, 1209 Orange St., Wilmington, DE19801. Name/address of genl. ptr. availablefrom SSNY. Cert. of LP filed with DE Secy. ofState, 401 Federal St., Dover, DE 19901.Purpose: any lawful activity.

Notice of Qualification of WBM 475 Fifth OwnerLLC. Authority filed with Secy. of State of N.Y.(SSNY) on 2/28/07. Office location: NY County.LLC formed in Delaware (DE) on 2/20/07.SSNY designated as agent of LLC upon whomprocess against it may be served. SSNY shallmail process to: c/o National RegisteredAgents, Inc., 875 Avenue of the Americas, Ste.501, NY, NY 10001, registered agent uponwhom process may be served. DE address ofLLC: 160 Greentree Drive, Ste. 101, Dover, DE19904. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activity.

NOTICE OF FORMATION OF PROFESSIONALSERVICE LIMITED LIABILITY COMPANY.NAME: SWEET DREAMS ANESTHESIOLOGY,PLLC. Articles of Organization were filedwith the Secretary of State of New York(SSNY) on 03/02/07. Office location: NewYork County. SSNY has been designated asagent of the PLLC upon whom processagainst it may be served. SSNY shall mail acopy of process to the PLLC, c/o Segal,Tesser & Ryan, LLP, 509 Madison Avenue,New York, New York 10022. Purpose: Forthe practice of the profession of Medicine.

Notice of Formation of MANTAS WRIGHTPHOTOGRAPHY, LLC, a domestic LimitedLiability Company. Arts. of Org. filed withthe SSNY on 01/16/07. Office location: NewYork County. SSNY has been designated asagent upon whom process against the LLCmay be served. SSNY shall mail a copy ofprocess to: The LLC, 122 Duane St., Apt2B, New York, NY 10007. Purpose: AnyLawful Purpose. Latest date upon whichLLC is to dissolve: No Specific Date.

Notice of Formation of 95WALLAB, LLC, adomestic Limited Liability Company. Arts. ofOrg. filed with the SSNY on 05/04/01. Officelocation: New York County. SSNY has beendesignated as agent upon whom processagainst the LLC may be served. SSNY shallmail a copy of process to: A & E Stores, Inc.,1000 Huyler Street, Teterboro, NJ 07608.Purpose: Any Lawful Purpose. Latest date uponwhich LLC is to dissolve: No Specific Date.

Notice of Qualification of Blackstone CapitalPartners (Cayman) V-B L.P. Authority filedwith NY Dept. of State on 3/8/07. Office location: NY County. LP formed in CaymanIslands (CI) on 9/26/06. NY Secy. of Statedesignated as agent of LP upon whomprocess against it may be served. NY Secy.of State shall mail process to the principalbusiness address of the LP: c/o TheBlackstone Group, 345 Park Ave., NY, NY10154. Registered agent upon whom processmay be served: CT Corporation System, 1118th Ave., NY, NY 10011. CI address of LP:c/o Walkers SVP Ltd., Walker House, 87Mary St., P.O. Box 908GT, George Town,Grand Cayman, KY1-9002, CI. Name/addressof genl. ptr. available from SSNY. Cert. of LPfiled with Registrar of Exempted LPs, CitrusGrove Bldg., George Town, Grand Cayman, CI.Purpose: any lawful activity.

HUDSON REAL ESTATE GROUP, LLCNotice of formation of the above LimitedLiability Company (“LLC”). Articles ofOrganization filed with the Department of theState of NY on 3/27/2007. Office location,County of New York. The street address is:215 East 68th Street, Ste. 18Y, New York, NY10021. Secretary of State (“SSNY”) has beendesignated as agent of the LLC upon whomprocess against it may be served. SSNY shallmail a copy of any such process served to:The LLC, 215 East 68th Street, Ste. 18Y, New York, NY 10021. Purpose: any lawful act.

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OCCAMS RAZOR, LLC Articles of Organizationfiled with NY Sec. of State(SSNY) 3/13/07.Office is located in NY County. SSNY isdesignated as agent of the LLC upon whomprocess may be served. SSNY shall mailcopy of process to c/o Joseph Zawadzki,144 W. 27th St., #3F, NY, NY 10001.Purpose: Any lawful purpose.

Notice of Formation of Santibanez LLC. Arts.of Org. filed with NY Dept. of State on4/6/07. Office location: NY County. Secy. ofState designated as agent of LLC uponwhom process against it may be served.Secy. of State shall mail process to: RobertoSantibanez, 45 W. 60th St., Apt. 35G, NY, NY10023, principal business address of theLLC. Purpose: any lawful activity.

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Notice of Formation of 1405 FIFTH AVENUEAPARTMENTS, LLC, a domestic LimitedLiability Company (LLC). Articles ofOrganization filed with Secretary of State on12/18/2006. NY Office location: NEW YORKCounty. Secretary of State is designated asagent upon whom process against the LLCmay be served. Secretary of State shall mail acopy of any process against the LLC servedupon him/her to C/O YUCO MANAGEMENTINC., 295 MADISON AVE., 34TH FL, NEWYORK, NY 10017. Purpose: To engage in anylawful act or activity.

Notice of Formation of 1405 FIFTH AVENUERETAIL, LLC, a domestic Limited LiabilityCompany (LLC). Articles of Organizationfiled with Secretary of State on 12/01/2006.NY Office location: NEW YORK County.Secretary of State is designated as agentupon whom process against the LLC maybe served. Secretary of State shall mail acopy of any process against the LLC servedupon him/her to C/O YUCO MANAGEMENTINC., 295 MADISON AVE., 34TH FL, NEWYORK, NY 10017. Purpose: To engage inany lawful act or activity.

Notice of Qualification of Mather Productions,LLC. Authority filed with Secy. of State ofN.Y. (SSNY) on 1/2/07. Office location: NYCounty. LLC formed in Delaware (DE) on5/24/05. SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail process to: 309West 49th Street, NY, NY 10019. DE addressof LLC: 874 Walker Road, Ste. C, Dover, DE19904. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activity.

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PUBLIC & LEGAL NOTICES

Notice of Qualification of AGBH Versailles,L.L.C. Authority filed with NY Dept. of State on3/8/07. Office location: NY County. Principalbusiness address: c/o Angelo Gordon & Co.,L.P., 245 Park Ave., 26th Fl., NY, NY 10167.LLC formed in Delaware (DE) on 2/22/07. NYSecy. of State designated as agent of LLCupon whom process against it may be served.NY Secy. of State shall mail process to: CTCorporation System, 111 8th Ave., NY, NY10011, registered agent upon whom processmay 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 EOS Education,Outcomes, Science LLC. Authority filed withNY Dept. of State on 3/1/07. Office location: NYCounty. Principal business address: 437Madison Ave., NY, NY 10022. LLC formed inDelaware (DE) on 12/4/03. NY Secy. of Statedesignated as agent of LLC upon whomprocess against it may be served. NY Secy. ofState shall mail process to: Corporation ServiceCo. (CSC), 80 State St., Albany, NY 12207. DEaddress of LLC: c/o CSC, 2711 Centerville Rd.,Wilmington, DE 19808. Arts. of Org. filed withDE Secy. of State, Loockerman & Federal Sts.,Dover, DE 19901. Purpose: any lawful activity.

Notice of Formation of Kenmare SquareAssociates, LLC; Arts of Org., filed with NYSec. of State (“SSNY”) 06/01/2004. Office inNY County; SSNY designated agent for serviceof process with copy mailed to Thomas J.Malmud, Esq., c/o Pryor Cashman Sherman &Flynn LLP, 410 Park Avenue, 10th Floor, NewYork, NY 10022, All lawful business purposes.

Notice of Formation of Loft Brands L.L.C. Arts.of Org. filed with Secy. of State of NY (SSNY)on 5/19/06. Office location: NY County. SSNYdesignated as agent of LLC upon whomprocess against it may be served. SSNY shallmail process to: Bruce J. Grossman, Esq., 301Market St., Lemoyne, PA 17043. Purpose: anylawful activity.

Notice of Formation Regatta New York Realty I,LLC art. of org. filed Secy. of State NY (SSNY)10/24/06. Off. loc. in NY Co. SSNY designatedas agent of LLC upon whom process may beserved. SSNY shall mail copy of process to:300 Rector Pl, Ste 3R, NY, NY 10280. Purpose: Any lawful purpose.

Notice of Formation of TMG Dobie CenterLLC. Arts. of Org. filed with Secy. of Stateof NY (SSNY) on 1/20/06. Office location:NY County. SSNY designated as agent ofLLC upon whom process against it may beserved. SSNY shall mail process to: c/o TheModlin Group LLC, 130 W. 57th St., NY, NY10019, Attn: Avery Modlin. Purpose: anylawful activity.

Notice of Formation The Center for CulturalCompetency and Professional Development,LLC art. of org. filed Secy. of State NY (SSNY)1/23/07. Off. loc. in NY Co. SSNY designatedas agent of LLC upon whom process may beserved. SSNY shall mail copy of process to:900 Riverside Dr, 6F, NY, NY 10032. Purpose:Any lawful purpose.

Notice of formation of CHINESE WAH LAILLC a NYS LLC Formation filed with SSNYon 11/16/06. Off. Loc.: New York Co. SSNYdesignated as agt. of LLC, upon whomprocess may be served. SSNY shall mailcopy of process to: The LLC, 20-22 MulberryStreet, New York, NY 10013. Purpose: AnyLawful purposes.

Notice of formation of DP 10 West 33RD LLC.Arts. Of Org. filed with Secty. Of State of NY(SSNY) on 3/21/2003. Office location: NewYork County. SSNY designated as agent ofLLC upon whom process against it may beserved. SSNY shall mail process to: c/o DianePachetti, 485 Park Ave., NY, NY 10022.Purpose: any lawful activity.

NOTICE OF REGISTRATION of HoltzmanHelfman, LLP. Certificate filed with the NYDepartment of State on 4/22/05. OfficeLocation: NY County. SSNY designated asagent of LLP with whom process of servicemay be served. SSNY shall mail copy ofprocess to Harriet Holtzman, 345 EighthAvenue, #5F, New York, NY 10001. PrincipalBusiness Address: 350 Seventh Avenue,Suite 604, New York, NY 10001. Purpose:any lawful activities

Notice of Qualification of PCA Real EstateAsset Management, LLC. Authority filed withNY Dept. of State on 3/20/07. Office location:NY County. LLC formed in Delaware (DE) on2/5/07. NY Secy. of State designated as agentof LLC upon whom process against it may beserved. NY Secy. of State shall mail processto: One Market St., Spear Tower Suite 3600,San Francisco, CA 94105, principal businessaddress of the LLC. DE address of LLC: c/oCorporation Service Co., 2711 Centerville Rd.,Ste. 400, Wilmington, DE 19808. Arts. of Org.filed with DE Secy. of State, 401 Federal St.,Dover, DE 19901. Purpose: any lawful activity.

Notice of Qualification of AGBH Holtsville,L.L.C. Authority filed with NY Dept. of State on3/8/07. Office location: NY County. Principalbusiness address: c/o Angelo Gordon & Co.,L.P., 245 Park Ave., 26th Fl., NY, NY 10167.LLC formed in Delaware (DE) on 2/22/07. NYSecy. of State designated as agent of LLCupon whom process against it may be served.NY Secy. of State shall mail process to: CTCorporation System, 111 8th Ave., NY, NY10011, registered agent upon whom processmay 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 formation of CITY CHOW CAFÉ V,LLC a NYS LLC Formation filed with SSNYon 10/31/00. Off. Loc.: New York Co. SSNYdesignated as agt. of LLC, upon whomprocess may be served. SSNY shall mailcopy of process to: The LLC, 16 West 45thStreet, New York, NY 10036. Purpose: AnyLawful purposes.

Notice of Qualification of Armand de BrignacHoldings, LLC. Authority filed with Secy. ofState of N.Y. (SSNY) on 1/23/07. Office location: NY County. LLC formed in Delaware(DE) on 1/11/07. SSNY designated as agentof LLC upon whom process against it maybe served. SSNY shall mail process to: 480Broome St., 2nd Fl., NY, NY 10013, Attn:Brett Berish. DE address of LLC: 901 MarketSt., Ste. 460, Wilmington, DE 19801, Attn:Hanover Corporate Services Ltd. Cert. ofForm. filed with DE Secy. of State, 401 FederalSt., Ste. 4, Dover, DE 19901. Purpose: anylawful activity.

Notice of formation of China Solutions LLC.Art of Org filed with Secretary of State of NY(SSNY) on 23 March 2005. NY office location:New York County. SSNY designated as agentupon whom process against LLC may beserved. Address to which SSNY shall mailprocess against LLC is: c/o Nestor Gounaris169E 78 Street NY NY 10021. Purpose isany lawful activity.

Notice of Qualification of HedgeForum Icahn,LLC. Authority filed with NY Dept. of Stateon 1/10/07. Office location: NY County. LLCformed in Delaware (DE) on 1/3/07. NYSecy. of State designated as agent of LLCupon whom process against it may beserved. NY Secy. of State shall mail processto: c/o Citigroup Alternative InvestmentsLLC, 731 Lexington Ave., 28th Fl., NY, NY10022, principal business address of theLLC. DE address of LLC: c/o NationalCorporate Research, Ltd., 615 S. DuPontHwy., Dover, DE 19901. Arts. of Org. filedwith DE Secy. of State, Div. of Corps., Federal& Duke of York Sts., Dover, DE 19901.Purpose: any lawful activity.

Notice of Formation of KH RadiologyHoldings, L.P., Cert. of LP filed Sec'y of State(SSNY) 3/19/02. Office location: NY County.SSNY designated as agent of LP upon whomprocess against it may be served. SSNY shallmail copy of process to Michael Abiri, M.D.,c/o Mid-Kings Imaging, Inc., 1780 Broadway,Ste. 1100, NY, NY 10019. Name/addr. of eachgen. ptr. avail. at SSNY. Purpose: any lawfulactivities. Latest date 12/31/2042.

Notice of Formation of Kitchen TableAssociates, LLC, Art. of Org. filed Sec'y ofState (SSNY) 11/21/03. Office location: NYCounty. SSNY designated as agent of LLCupon whom process against it may beserved. SSNY shall mail copy of processto c/o Gary I. Fields, Esq., 8 Haven Ave.,Ste. 209, Port Washington, NY 11050.Purpose: any lawful activities.

Notice of Formation of O & M Partners, LLC,Art. of Org. filed Sec'y of State (SSNY) 1/5/05.Office location: NY County. SSNY designatedas agent of LLC upon whom process against itmay be served. SSNY shall mail copy of processto David Mandy, 26 East 93rd St., NY, NY 10128.Purpose: any lawful activities.

Notice of formation of Artware Editions, LLC.Arts. of Org. filed with Secy. of State NY(SSNY) 4/19/06. Office in NY County. SSNYdesig. agent of LLC upon whom processmay be served. SSNY shall mail process to:The LLC, 327 W. 11th St., NY, NY 10014.Purpose: any lawful activity.

NOTICE OF FORMATION OF LIMITED LIABILITYCOMPANY. NAME: BANNER AVENUE, LLC.Articles of Organization were filed with theSecretary of State of New York (SSNY) on09/01/05. The latest date of dissolution is12/31/2099. 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 The J Companies, 711 ThirdAvenue, New York, New York 10017.Purpose: For any lawful purpose.

Notice of Formation of Hamptons 39 LLC.Arts. of Org. filed with NY Dept. of State on4/3/07. Office location: NY County. Secy. ofState designated as agent of LLC upon whomprocess against it may be served. Secy. ofState shall mail process to: c/o KenilworthEquities Ltd., 825 3rd Ave., NY, NY 10022,principal business address of the LLC.Purpose: any lawful activity.

Notice of Qualification of RP Martin LLC.Authority filed with NY Dept. of State on3/30/07. Office location: NY County. Principalbusiness address: 44 Wall St., 21st Fl., NY, NY10005. LLC formed in Delaware (DE) on3/14/07. NY Secy. of State designated as agentof LLC upon whom process against it may beserved. NY Secy. of State shall mail processto: c/o Thelen Reid Brown Raysman & SteinerLLP, 875 3rd Ave., NY, NY 10022, Attn:Richard S. Green. DE address of LLC: c/oCorporation Service Co., 2711 Centerville Rd.,Ste. 400, Wilmington, DE 19808. Arts. of Org.filed with DE Secy. of State, 401 Federal St.,Dover, DE 19901. Purpose: any lawful activity.

Notice of formation of Limited Partnership.Name: Selfhelp (KIV) Associates, L.P. (“LP”).Certificate of Limited Partnership filed withNY Secretary of State (“SSNY”) on January26, 2007, NY office location is New YorkCounty. The SSNY has been designated asagent of the LP upon whom process againstit may be served. The SSNY shall mail a copyof any process to LP at 520 Eighth Avenue,New York, NY 10018. Purpose/character ofLP is to engage in any lawful act or activity.

Notice of Formation of ROCKY MOUNTDEVELOPMENT LLC, domestic LimitedLiability Company (LLC). Articles ofOrganization filed with Secretary of State on3/2/07. NY Office location: NEW YORK County.Secretary of State is designated as agent uponwhom process against the LLC may beserved. Secretary of State shall mail a copy of any process against the LLC served uponhim/her to THE LLC, 69 E. 130TH STREET,2ND FLR., NEW YORK, NY 10037. Purpose:To engage in any lawful act or activity.

Notice of Qualification of 85 Tenth NYInvestors, L.L.C. Authority filed with NY Dept.of State on 4/5/07. Office location: NY County.Principal business address: 60 ColumbusCircle, NY, NY 10023. LLC formed in Delaware(DE) on 4/4/07. NY Secy. of State designatedas agent of LLC upon whom process against itmay be served. NY Secy. of State shall mailprocess to: c/o Corporation Service Co. (CSC),80 State St., Albany, NY 12207. DE address ofLLC: c/o CSC, 2711 Centerville Rd., Wilmington,DE 19808. Arts. of Org. filed with DE Secy. ofState, Townsend Bldg., Dover, DE 19901.Purpose: any lawful activity.

NOTICE OF SALE SUPREME COURT: COUNTY OF BRONX -BANK OF NEW YORK AS TRUSTEE FORTHE CERTIFICATEHOLDERS CWABS, INC. ASSET-BACKED CERTIFICATES, SERIES2006-5 C/O COUNTRYWIDE HOME LOANS,INC., Plaintiff, AGAINST JOHNNY SEBASTIAN,ET. AL., Defendant(s). Pursuant to a judgmentof foreclosure and sale duly dated 1/24/2007,I, the undersigned Referee will sell at publicauction at the Bronx County Courthouse,Room B-129, 851 Grand Concourse,Bronx, New York, on 5/22/2007 at 2:00 PM,premises known as 2026 GleasonAvenue, Bronx, NY 10472. All that certain plotpiece or parcel of land, with the buildings andimprovements thereon erected, situate, lyingand being in the New York City, Borough ofBronx, County of Bronx and State of NewYork, Section, Block and Lot: 14-3802-21.Approximate amount of judgment$397,999.16 plus interest and costs. Premiseswill be sold subject to provisions of filedJudgment Index #16482/06. Mario Biaggi,Jr., Esq., Referee, STEVEN J. BAUM, P.C., Attorney for PlaintiffP.O. Box 1291, Buffalo,NY 14240-1291 Dated: 4/18/2007

NOTICE OF FORMATION OF MUTED TRAX,LLC. Name: Muted Trax, LLC. Articles ofOrganization were filed on February 9, 2007with the Secretary of State of New York(SSNY). 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, 418 W. 47th Street, #1FW, New York,NY, 10036. Purpose: any lawful activity. Streetaddress of Principal Business location is: 418W. 47th Street, #1FW, New York, NY, 10036.

Notice of Qualification of Post Avenue PortfolioInvestor, LLC. Authority filed with NY Dept. ofState on 3/16/07. Office location: NY County.LLC formed in Delaware (DE) on 3/13/07.Secy. of State designated as agent of LLC uponwhom process against it may be served. Secy.of State shall mail process to: The DermotCompany, Inc., 320 W. 57th St., 5th Fl., NY, NY10019, principal business address of the LLC.DE address of LLC: c/o National CorporateResearch, Ltd., 615 S. DuPont Hwy., Dover, DE19801. Arts. of Org. filed with DE Secy. ofState, 401 Federal St., Ste. 4, Dover, DE 19901.Purpose: any lawful activity.

Notice of Formation of 165 William StreetInvestor, LLC. Arts. of Org. filed with NYDept. of State on 4/10/07. Office location: NYCounty. Secy. of State designated as agent ofLLC upon whom process against it may beserved. Secy. of State shall mail process to:c/o Metro Loft Management, 67 Wall St., NY,NY 10005, principal business address of theLLC. Purpose: any lawful activity.

Notice of Formation of CIP 55, LLC. Arts ofOrg filed with Secy of State of NY (SSNY) on10/14/04. Office location: New York County.SSNY designated as agent of the llc, uponwhom process against it may be served.SSNY shall mail process to: c/o Cipriani,110 East 42nd St., New York, NY 10017.Purpose: To engage in any lawful business.

Notice of Qualification of D.B. Zwirn & Co.,L.P. Authority filed with Secy. of State ofNY (SSNY) on 3/26/04. Office location: NYCounty. LP formed in Delaware (DE) on3/24/04. SSNY designated as agent of LPupon whom process against it may be served.SSNY shall mail process to: The LP, 745 5thAve., 18th Fl., NY, NY 10151. DE address ofLP: The Corporation Trust Co., 1209 OrangeSt., Wilmington, DE 19801. Name/address ofgenl. ptr. available from SSNY. Cert. of LPfiled with DE Secy. of State, Townsend Bldg.,Dover, DE 19901. Purpose: any lawful activity.

Notice of Qualification of Deister CapitalOnshore Fund, LP, App. for Auth. filed Sec'yof State (SSNY) 2/5/07. Office location: NYCounty. LP org. in DE 2/1/07. SSNY designated as agent of LP upon whomprocess against it may be served. SSNY shallmail copy of process to Attn: HilmarSchaumann, 1114 6th Ave., 37th Fl., NY, NY10036. DE office addr.: CSC, 2711 CentervilleRd., Wilmington, DE 19808. Cert. of LP onfile: SSDE, Townsend Bldg., Dover, DE 19901.Name/addr. of each gen. ptr. avail. at SSNY.Purpose: any lawful activities.

Notice of Qualification of Izara Focus Fund,LP, App. for Auth. filed Sec'y of State (SSNY)12/26/06. Office location: NY County. LP org.in DE 12/19/06. SSNY designated as agent ofLP upon whom process against it may beserved. SSNY shall mail copy of process toAttn: John Raniolo, 747 Third Ave., 10th Fl.,NY, NY 10017. 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 Needham Contrarian(QP) Fund, L.P., App. for Auth. filed Sec'y ofState (SSNY) 5/5/04. Office location: NYCounty. LP org. in DE 5/3/04. SSNY designatedas agent of LP upon whom process against itmay be served. SSNY shall mail copy ofprocess to Attn: Glen W. Albanese, 445 ParkAve., NY, NY 10022. DE office addr.: 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 application for Authority of limitedliability company (LLC). Name: OIKOS VENTURES LLC. Application for Authorityfiled with the Department of the State of NewYork on September 30, 2003. The jurisdictionof its formation is Delaware. The date of itsformation is September 26, 2003. Officelocation: New York County. The Secretary ofState of New York (SSNY) is designated asagent of LLC upon whom process against itmay be served. The principal business locationand the address SSNY shall mail copy ofprocess to is c/o Steven K. Aronoff, 499 ParkAve., 6th Fl., New York, NY 10022. Theaddress of the office required to be maintainedin the jurisdiction of its formation is 203 NEFront St., Ste. 101, Milford, DE 19963. Thename and address of the authorized officer inthe jurisdiction of formation where a copy ofits certificate of formation is filed is DelawareDivision of Corporations, John G. TownsendBldg., 401 Federal St., Dover, DE 19901.

Notice of Formation of Stowe Group, LLC, Art.of Org. filed Sec'y of State (SSNY) 3/7/07.Office location: NY County. SSNY designatedas agent of LLC upon whom process againstit may be served. SSNY shall mail copy ofprocess to 57 West 57th St., Ste. 505, NY, NY10019. Purpose: any lawful activities.

Notice of Formation of 66 WEST BARCLAYSTREET, LLC, a domestic Limited LiabilityCompany (LLC). Articles of Organization filedwith Secretary of State on 2/12/2007. NYOffice location: NEW YORK County. Secretaryof State 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 upon him/herto THE LLC, 498 7TH AVE., 8TH FLR. NEWYORK, NY 10018. GENERAL PURPOSES

Notice of Formation Whaley ConsultingServices, LLC art. of org. filed Secy. of StateNY (SSNY) 1/25/07. Off. loc. in NY Co. SSNYdesignated as agent of LLC upon whomprocess may be served. SSNY shall mailcopy of process to: 402 E 83rd St #5A, NY,NY 10028. Purpose: Any lawful purpose.

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GEM FOR JOY, LLC, domestic Limited LiabilityCompany (LLC). Articles of Organization filedwith Secretary of State on 02/22/07. 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 upon him/herto GONZALEZ OBERLANDER & HOLOHANLLP, 170 BROADWAY, STE.1515, NEW YORK,NY 10038. General purposes.

50 MORTON STREET LLC, domestic LimitedLiability Company (LLC). Articles ofOrganization filed with Secretary of State on03/23/07. NY Office location: NEW YORKCounty. Secretary of State is designated asagent upon whom process against the LLCmay be served. Secretary of State shall mail acopy of any process against the LLC servedupon him/her to THE LLC, 50 MORTON ST.,NEW YORK, NY 10014. General purposes.

nb18p24_25cls.qxp 4/26/07 2:43 PM

We made room for your TVbefore you did.

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CORPORATELADDER Regimechangeat Tavernon theGreenPAGE 29

Transit tunerLYDIA BRADSHAW, 43, headsthe Metropolitan Transporta-tion Authority’s Music UnderNew York program. Sheorganizes a roster of 100-plussoloists and groups, whoperform at transit locationsthroughout the boroughs,including major hubs likePennsylvania Station.Successful buskers typicallycollect about $150 a day.

MUSIC MANAGER Ms. Brad-shaw was promoted four yearsago, after receiving a master’sin art and cultural manage-ment from Pratt Institute. Sheloves music but concedes thather own expression is limitedto “singing in the shower.”

GOTTA SING The program,founded in 1985, gets 250applications annually. Once ayear, Ms. Bradshaw invitesabout 70 applicants to audition.This year’s audition is May 15;about 20 musicians will beadded to her database. She’slooking for quality, variety andoverall fit. She notes that a 25-piece marching band wouldnot make the cut.

NEW TRACK Ms. Bradshawtakes performers’ schedule andlocation requests on a first-come, first-served basis. Eachact remains on the rosterpermanently, though somehave gone on to bigger stages.Over the years, some havelanded parts in a Madonnavideo and a Pepsi commercial,while a few others have signedrecording contracts.

—adrianne pasquarelli

LONG WEEKEND: HOW CAN I GET OUT OF WORK?you could make a doctor’sappointment at 2 p.m. onFriday, then leave from there.Instead of coming in lateMonday, ask to work fromhome so that you can cut outthe commute. If you are goingto make excuses, you can bevague, but don’t lie. If you dodecide to lie, don’t get toodetailed—don’t say Grandmadied for the third time.Theyare going to figure that out.—christine della monaca

Content producerMonster.com

B U S I N E S S

GOTHAM GIGS

EXPERT OPINIONS


BY SAMANTHA MARSHALL

ince gastric bypasssurgery and severalbody-contouringoperations helpedTracy Gannon dropto 150 pounds from426 pounds, she hasbeen fantasizing

about the possibilities of a newlife, despite her marriage of 15years.The physical differenceis so extreme that when herkids look at her weddingphotos, they ask, “Who isthat woman with Daddy?”

Her internal changesare just as striking. Ms.Gannon is going outsocially more often andgetting her nursingdegree so she can standon her own two feet.

“No one prepared mefor all the psychologicalproblems that wouldcome from this,” shesays. “I am constantlyfighting with myself.”

As efforts among the obese tolose weight accelerate, many aredealing with the emotionalaftermath of such dramaticphysical changes.Theadjustments, ranging from newwardrobes to whole new careers

and relationships, come at a rapidpace, often before the newly slim

are mentally prepared to face theworld. While dropping excess

weight boosts confidenceand saves lives, lostfriendships and divorce arecommon byproducts of thetransformation.

“People’s bodieschange a lot faster thantheir identities,” saysDavid Mahony, apsychologist at Luther-an Medical Center who

runs a support group forpatients who’ve had a gastric

bypass. “A lot of patients areblindsided by it.”

With high-profile New

Heavy adjustments

SRapid weight loss brings psychological changes

See HEAVY on Page 28

NEW LOOK:Surgeries helpedTracy Gannon slimdown to 150 poundsfrom 426 pounds.

Nationwide, bypass operations increased ninefold to 121,055 in2004 from 13,386 in 1998, according to a report released in Januaryby the federal Agency for Healthcare Research and QualityS

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CNYB 04-30-07 A 27 4/26/2007 6:01 PM Page 1

Yorkers such as Al Roker and StarJones looking svelte after losingmore than 100 pounds each, publicattention has been focused on phys-ical attributes,prompting thousandsto turn to weight-loss programs—and surgeons. But the psychologicaleffects are rarely discussed.

Bariatric procedures in NewYork state rose steadily to 1,943 in2006, from 1,825 in 2003, accord-ing to the New York state De-partment of Health. Nonsurgicalweight-loss programs have alsobeen booming in the five boroughs.Jenny Craig has seen membershipin New York City jump 36% a yearsince 2004.

Strong reactionsmatt farrell is one of WeightWatchers’ success stories. At 168pounds, the 5-foot-11-inch mar-keting executive finally reached ahealthy weight after years of trying.But the strong reactions to his phys-ical change weren’t quite what he’dhoped for.

“There was a point where I wasgetting yelled at by family membersfor not eating enough,” recalls Mr.Farrell,who even had to reassure theowner of a Korean deli where heused to buy sandwiches that hewasn’t dying of cancer.

Challenges go beyond dealingwith the initial reactions of lovedones. As many relationships under-go alterations as clothing.

“Every relationship has a certain

status quo; this kind of change canbe very destabilizing,” commentsDr. Joseph Capella, the plastic sur-geon who reshaped Ms. Gannon’sbody.

Peter Pettas, an event planner,split from his live-in partner of twoyears soon after he lost 166 poundsfrom a gastric bypass. Problems hewas willing to overlook in the past

ceased to be tolerable, and when hefound evidence of “extracurricularactivity,” he cut ties. Single now, hesays he’s more selective about whohe dates, and questions peoples’motives.

“I guess I found my self-esteem,”he says.

New palsas painful as the life adjustmentscan be, they’re often necessary tobreak old patterns. Janice Taylor,who went to a size 4 from a size 18six years ago, gradually shed a fewfriends as well, including an old eat-ing buddy.

“She was the one I was allowedto eat with until I couldn’t breathe,”recalls Ms. Taylor.

But the most important changewas the relationship Ms. Taylorhad with her job. Working behindthe scenes for a prominent NewYorker closely involved in thecity’s bid for the 2012 Olympics,Ms. Taylor logged long hours andspent little time on life outside theoffice.

She describes her old self as“subservient and willing to dowhatever needed to be done.” Butsoon after she dropped the weight,she found the confidence to focuson outside interests, such as creat-ing artwork and shopping for moreglamorous outfits.

As she was trying on a stylishnew pair of high-heeled shoes un-der her desk, her boss passed by andsaid, “ ‘Jeez, you’re walking around

like you’re all superior now,’ ” recallsMs.Taylor. It wasn’t long before shemade a career switch as dramatic asher weight loss. She’s now the au-thor of humor book Our Lady ofWeight Loss and a full-time motiva-tional speaker.

Joel Brito made a similar changeafter dropping 141 pounds throughJenny Craig.The former backroommanager for a shoe and jewelrycompany always felt his bosseswanted to keep him hidden awayfrom clients, despite his solid peo-ple skills.Today he’s one of the facesof Jenny Craig and serves as a full-time weight-loss consultant for thecompany.

Mr. Brito’s metamorphosis washard-won. A social eater whosefamily’s gatherings revolve aroundfood, Mr. Brito noticed that hisgrandmother would get upset whenhe wouldn’t eat a bread pudding

she’d baked just for him.He also lostfriends. “There are so many peoplewho feel envious or hurt that you’vedone a change on them, even if it’sfor the better,” he says.

He regards people who sudden-ly want his friendship after reject-ing him over his size with equalsuspicion. When he heard throughthe grapevine that his old girl-friend, who broke up with him forbeing too heavy, was having regretsafter learning about his new athlet-ic physique, he says he felt morehurt than if she’d rejected him allover again.

“My appearance changed, butinside I am the same person and Istill have a big heart,” he says. “Itmakes you think people are shal-low, but these things make youstronger.”


Heavy changes for the newly thinB U S I N E S S L I V E S


LOSING A LONGTIME FRIEND: FOODIT’S NOT JUST RELATIONSHIPS that change for people who’ve lost a largeamount of weight. The emotions they attach to food and eating also undergoa major upheaval.

Many go through a grieving period because they miss eating and thecomfort that their favorite dishes used to bring them. Others are suddenlyforced to deal directly with psychological problems they once smotheredwith snacking.

“Patients come back to me and say they feel like their best friend died,”says David Mahony, a psychologist at Lutheran Medical Center who counselspeople after they’ve had bariatric surgery. “It’s very similar to grieving.”

Joel Brito, a reformed emotional and social eater who lost 141 poundsthrough Jenny Craig last year, writes down the events that could trigger a foodbinge as a way of detaching himself and getting back on track. “If you analyzethe situation, it helps you break the cycle,” he says.

Peter Pettas, who lost 166 pounds after a gastric bypass operation,thinks more about food than he ever did when he was overweight, but in agood way.

Because he can only handle up to 6 ounces of food per meal, he’sbecome more conscious about what he puts in his mouth, he says. If he’sever tempted to overeat—which can happen despite a smaller stomachcapacity—he looks at pictures of himself before the operation.

“I don’t want to forget who that person was or how dissatisfied I was withmyself,” says Mr. Pettas.


‘No one preparedme for all theproblems,’ saysMs. Gannon

TRACYGANNONbefore shelost weight.

THE CRAIN’S BEAT SHEETREPORTERSAARON ELSTEIN SENIOR REPORTERe-mail: [email protected] Wall Street.

LISA FICKENSCHER SENIOR REPORTERe-mail: [email protected] the tourism, restaurant and hotel industries.

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

TOM FREDRICKSON SENIOR REPORTERe-mail: [email protected] banking, energy and the New York economy.

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

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

JULIE SATOW SENIOR REPORTERe-mail: [email protected] commercial real estate.

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

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

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

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

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

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YOU MUST BE PRE-REGISTERED TO ATTEND THESE EVENTS. ALL TICKETS ARE NON-REFUNDABLE. FOR MORE INFORMATION, CALL THE EVENTS HOTLINE AT 212-210-0739.

Patrick Foye, chairman of the Empire State Development Corp.,

will discuss the Spitzer administration's approach to economic

development and review the big projects either underway or

in the planning stages including the expansion of the Javits

Center, Penn Station, downtown and others. He will be

questioned by Crain's editor Greg David and another journalist. Patrick Foye

BUSINESS BREAKFAST FORUMMEET DOWNSTATE’S NEW DEVELOPMENT CZAR

DATE: WEDNESDAY, MAY 9, 2007

PLACE: Sheraton New York 811 Seventh Avenue

TIME: Networking Breakfast 8:00–8:30 a.m.Program 8:30–9:30 a.m.

COST TO ATTEND:$60 for individual ticket(s) $600 for table(s) of ten if pre-registered by May 2nd if pre-registered by May 2nd$70 thereafter. $700 thereafter.(American Express, Visa or MasterCard only)

To register go to newyorkbusiness.com, or fax your business card and credit card informationto “Foye Breakfast” at 212-210-0499.

SPONSORED BY:

CNYB 04-30-07 A 28 4/26/2007 6:02 PM Page 1

BY LISA FICKENSCHER

Executive chef BrianYoung’s fascinationwith all things militarycould help him in hisnew role at Tavern on

the Green.Given the operation’s scale—the

restaurant serves about 1,500 mealsa day—and the position’s burnoutrate, adopting a general’s approachto discipline and organization couldbe the recipe for longevity.

“You never know who will sur-vive at Tavern,” says owner JenniferLeRoy. “It’s like throwing someoneinto the fire and seeing what hap-pens.” Indeed, chefs at Tavern seemto come and go much like so manyplates of prime rib.

Job stability isn’t the only uncer-tainty Mr.Young faces.The CentralPark landmark has just two years lefton its lease, and developers likeDonald Trump are salivating overthe space.

Despite these challenges, Mr.

Young, a Chinese-Canadian whohas worked at highly rated restau-rants in Manhattan since 1989, sayshe can stand the heat.

“I saw the kitchen several yearsago, and I thought at the time that Icould see myself in charge,” Mr.Young says.

Reviewers welcomethe toque was hired to raise qual-ity at the iconic eatery. It has notbeen the subject of a serious reviewsince 1995, when the late chefPatrick Clark garnered one starfrom The New York Times.

If all goes as planned, Mr. Youngwill eventually become Tavern onthe Green’s corporate chef, says Ms.LeRoy, who inherited the spot fromher father, Warner LeRoy, in 2001and plans to expand the brand. Sheopened a Tavern last year inWellington, Fla., and is negotiatingto launch locations in Atlantic Cityand Las Vegas.

Observers say Mr.Young possess-es the confidence and the manage-ment and cooking skills required torun the country’s highest-grossingrestaurant.It had more than $38 mil-lion in revenues last year, up about4% from 2005 levels. He was a part-ner in and executive chef at Main-land, a modern Chinese restaurantthat opened—and closed—last year.

He also worked at four-star LeBernardin, starting as a line cook in1991 and quickly climbing to chefde cuisine. His former boss there,Eric Ripert, recalls a youthful Mr.Young full of bravado.

“When I interviewed him for theline cook job, he had a big mouth,”Mr. Ripert says. “I was amused andcouldn’t wait to see him in action. Itsurprised me that he could deliver.”

Since taking over the kitchen atTavern in March, Mr.Young has re-cruited eight former colleagues,most of whom were executive chefsor chefs de cuisine elsewhere.He re-assured them that he had changed.

“I told them that I’m pretty calmnow that I’m not a yeller anymore,”he says.“I’ve made a conscious effortto become more effective as a leader.”

Mr. Young and his team will un-veil a new menu in June.He then ex-pects to change the fare each monthinstead of just seasonally.

Target practicehis ambition, and his love of cook-ing, were evident early on. Raised inVancouver, B.C., Mr. Young gradu-ated from high school at 16 and en-rolled in culinary school in Paris.Hemoved to New York in 1989 and be-gan working at the Quilted Giraffe.

A father of three, Mr. Young haspassed along his interest in militaryhistory to his daughter,14,and sons,16 and 20. They enjoy a DVD col-lection full of war films, includingPatton and Saving Private Ryan.

In his spare time, the chef takestarget practice. “I’ve never shot ananimal,” he says, “because huntingseason coincides with one of mybusiest times in the kitchen.”


Brian Young

Kitchen regime changeChef tempers blusterwith discipline to facechallenges at famedTavern on the Green

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

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CORPORATELADDER


PERSONNEL FILEORGANIZATION Tavern on theGreen

AGE 39

RÉSUMÉ Executive chef, Main-land, POP and Josephs Citarella;chef de cuisine, Le Bernardin

HOBBY Collects shotguns

BIRTHPLACE Vancouver, B.C.

Issue Date: June 11 | Ad Close: May 24

Crain’s Life: Golf IssueCrain’s readers are successful executives and affl uent consumers who spend a signifi cant amount of time—and money—on golf and all that goes with it. From equipment to apparel to vacations, the Crain’s community makes every manner of golf-related purchase. And only Crain’sLife reports on golf in a way that is directly relevant to the lives of these remarkable readers.

The Crain’s Life Golf Issue presents a unique opportunity to touch the lives—and affect the buying decisions—of 236,000 Crain’s readers in an uncluttered, trusted environment focused exclusively on golf.

Join the Crain’s community for a round and advertise in Crain’s Life Golf Issue. Space is limited. Contact Vanessa Cognard today at (212) 210-0732 or [email protected].

We bring golf to

CNYB 04-30-07 A 29 4/26/2007 4:02 PM Page 1

ACCOUNTING & CONSULTINGCitrin Cooperman & Co.: John J.Piccinnini, 50, joined as partner. He hadbeen chief financial officer at theCoastal Group.Mahoney Cohen & Co.: Ricky Rahaman,38, was promoted to shareholder fromsenior manager.Trenwith Valuation: Edward Impastato,53, joined as vice president. He had beenvice president at Sutter Securities.

ADVERTISING & COMMUNICATIONS Butler Associates: Eldin Villafane, 39,joined as partner. He was formerlysenior adviser and communicationsdirector for Bronx Borough PresidentAdolfo Carrión.Creston U.S. Holdings Inc.: Steve Blamer,50, was named chief executive. He hadbeen chief executive and president ofFoote Cone & Belding Worldwide.Katz Media Group: Gerry Boehme, 52, waspromoted to executive vice president,strategic planning and informationtechnology services, from senior vicepresident of strategic planning.Joe Brewer, 45, was promoted to seniorvice president, information technologyservices, from vice president and directorof customer support.Torrenzano Group: Rick Anderson, 62,joined as managing director. He hadbeen senior vice president and partner atFleishman-Hillard.

APPAREL & RETAIL Plaza Retail Collection: Anthony Nicola,50, was appointed general manager. Hehad been vice president of operations atBergdorf Goodman.

HEALTH CARE MediZine: Renée Martin, 46, joined asmarketing creative director. She hadbeen creative director, marketingservices, at Better Homes and Gardensmagazine.

HIGH TECH & NEW MEDIA SilverCarrot: Dorothy Young, 43, joined aschief operating officer. She had been

chief client operations officer at OgilvyNorth America.

HOSPITALITY & TOURISMJapan Society Gallery: Joe Earle, 54, wasappointed vice president and director,effective Sept. 4. He is currently theMatsutaro Shoriki chair of thedepartment of art of Asia, Oceania andAfrica at the Museum of Fine Arts inBoston.ShermansTravel Media: Alfred Payton, 41,joined as vice president of businessdevelopment. He was formerly vicepresident of business development atDow Jones Licensing.

LAWCase Closure: Leo F. McGinity, 79, joinedas senior arbitrator and mediator, basedin New York City and Great Neck, N.Y.He had been justice of the SupremeCourt of the State of New York,Appellate Division, SecondDepartment.Cozen O’Connor: James F. Campise, 60,joined as member. He had been apartner at Nicoletti Hornig Campise &Sweeney.David Y. Loh, 44, joined as member. Hehad been a partner at Nicoletti HornigCampise & Sweeney.Crowell & Moring: Mark S. Lichtenstein,46, joined as partner. He had been ashareholder at Buchanan Ingersoll &Rooney.Frankfurt Kurnit Klein & Selz: Alison S.Cohen, 38, joined as partner. She wasformerly a senior partner at EpsteinLevinsohn Bodine Hurwitz &Weinstein.Milbank Tweed Hadley & McCloy: Alan J.Stone, 46, joined as partner. He had beena partner at Morris Nichols Arsht &Tunnell.Paul Hastings Janofsky & Walker: KenBreen, 40, joined as partner. He had beena partner at Fulbright & Jaworski.Schulte Roth & Zabel: Barry McCarty, 49,joined as special counsel. He wasformerly assistant general counsel at theFederal Home Loan Bank of

Pittsburgh.Sonnenschein Nath & Rosenthal: AnthonyL. Perricone, 48, joined as of counsel. Hewas formerly counsel at Dechert.Venable: Ralph Miles, 51, joined aspartner. He had been partner atMcCarter & English.

MEDIA & ENTERTAINMENT Barclays Center Brooklyn: Rob Chibbaro,39, was named managing director ofpremium sales. He was formerly seniorvice president of premium sales forAEG New York.Fader magazine: Melanie Samarasinghe,30, was promoted to director, advertisingand business development, from fashiondirector.In Demand Networks: Vincent Onorati, 37,joined as director, online marketing. Hewas formerly director of Web design atRainbow Media.Metro New York: Jonathan Auerbach, 40,was named editor in chief. He had beenexecutive editor at Star magazine.

REAL ESTATEColliers ABR Inc.: Patrick Gardner, 51,joined as managing director. He wasformerly a senior vice president at CresaPartners.Aron Schreier, 30, was promoted tomanaging director from director.Fox Residential Group: Ann Ryan, 33, waspromoted to chief financial officer fromassistant chief financial officer.Francine M. Schwartz, 57, joined as chiefoperating officer. She had been directorof operations at William B. May Co.Jack Resnick & Sons Inc.: Jonathan D.Resnick, 39, was promoted to presidentfrom executive managing director ofconstruction.Metropolitan Valuation Services Inc.:Michael P. Neal, 31, was promoted tosenior vice president from seniorappraiser.

SERVICES Arthur W. Page Society: Thomas P.Nicholson, 52, was appointed executivedirector. He was formerly a vice

president at Avery Weigh-Tronix.Interfaith Center on CorporateResponsibility: Laura Berry, 49, joined asexecutive director. She had been seniorvice president for philanthropic servicefor the Community Foundation forGreater New Haven.Major Lindsey & Africa: Sheri Michaels,47, was promoted to partner from seniormanaging director.U.S. Energy Group: Dan Margulies, 56,joined as chief operating officer. He hadbeen principal at his own firm,Buildingbuyer.com.Thomas Scali, 37, joined as director ofsales and business development. He hadbeen sales specialist at Panduit Corp.U.S. Power Generating Co.: Mark Sudbey,

46, was promoted to president and chiefoperating officer from executive vicepresident of finance, administration andcommercial operations.


WANTED: NATIONAL DIRECTOR OF DEVELOPMENT

COMPANY The Real News

JOB DESCRIPTION Creating and implementing U.S. strategy to promotecontributions

MOST IMPORTANT TASK Raising $15 million in the next few years

CREDENTIALS NEEDED 5 to 10 years’ fund-raising experience

SALARY $125,000-plus

RECRUITER Internal

DOWNSIDE Requires frequent travel to headquarters in Canada

UPSIDE Member-supported organization does not rely on advertising, orgovernment or corporate funding

The Toronto-based news and documentary network is focused on inde-pendent journalism. This year, The Real News plans to launch a worldnews hour and a 24/7 Web-based video news service. Chief ExecutivePaul Jay is looking to expand the company’s U.S. presence by openingoffices in New York, where the director of development will be located,and Los Angeles. —KIRA BINDRIM

HOT JOBS

EXECUTIVE MOVES



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.

Crain’s cannot confirm receipt of listings or saywhen they will appear.

THIS WEEK’S EVENTSMAY 2NYC Midtown Coaching Center holdsseminar for small business owners. 6:00p.m. to 9:00 p.m., SLC Center, 352Seventh Ave., 16th floor. Fee: $15members, $20 nonmembers.(516) 944-6454 or [email protected] 2B’nai B’rith Real Estate Unit holdslunch program with Brian Neilinger ofCIBC World Markets on accessingcapital. 12:00 p.m. to 2:00 p.m., CornellClub, 6 E. 44th St., Ivy Room. Fee: $55in advance, $65 at door. (212) 885-7239or [email protected] 3SobelMedia and the Mayor’s Office ofFilm, Theatre and Broadcasting holdforum on current and future media,entertainment and technology. 7:30 a.m.to 10:00 a.m., 4 W. 43rd St. Fee: $25members, $35 nonmembers.(516) 750-9610 or [email protected] 3Tracey Picon Communications andManhattan Chamber of Commercehold seminar on generating freepublicity. 6:00 p.m. to 8:00 p.m., TRSInc. Professional Suites, 44 E. 32nd St.,11th floor. Fee: $45 members, $55nonmembers. (718) 740-8572 [email protected] 5Global Purchasing Cos. holds workshopon opening and running a retail store.10:00 a.m. to 5:00 p.m., 1133 Broadway,suite 245. Fee: $189. (212) 414-4001 or

www.globalpurchasinggroup.com.

MAY 7-13MAY 7Small Business Administration of theWomen’s Venture Fund holdsinformation session on first steps for abusiness. 6:30 p.m. to 8:00 p.m., 545Eighth Ave., 17th floor. Free.(212) 563-0499 or [email protected] 8Manhattan Chamber of Commerceholds networking reception. 6:00 p.m. to8:00 p.m., Roger Smith Hotel, 501Lexington Ave. Fee: $15 members, $25nonmembers. (212) 473-7805.MAY 9Crain’s New York Business holdsnetworking breakfast and program withPatrick Foye, co-chairman, EmpireState Development Corp. 8:00 a.m. to9:30 a.m., Sheraton New York, 811Seventh Ave. Fee: $60. (212) 210-0739or www.newyorkbusiness.com.MAY 9Five O’Clock Club’s Executive JobSearch Group holds seminar on effectivenetworking. 6:30 p.m. to 8:30 p.m., 11Penn Plaza, fifth floor. Fee: $50.(914) 788-5482.MAY 9Deloitte & Touche USA holds programon the changing nature of retail. 8:30a.m. to 1:00 p.m., Princeton Club, 15 W.43rd St. Free. (212) 436-4381 [email protected] 9American Society for Training &

Development, metro New York chapter,holds workshop on the business resultsof learning. 5:30 p.m. to 8:00 p.m.,Deutsche Bank, 60 Wall St. Fee: $10members, $25 nonmembers.(212) 982-7371 or [email protected] 10Score NYC holds seminar on startingand managing a retail business. 10:00a.m. to 12:30 p.m., New York PublicLibrary’s Science, Industry and BusinessLibrary, 188 Madison Ave., lower level.Fee: $40 in advance, $50 at door.(212) 264-4507 or [email protected].

MAY 14-20MAY 14American Business Women’sAssociation holds program oncommunicating. 6:00 p.m. to 8:30 p.m.,Domenico’s Restaurant, 120 E. 40th St.Fee: $27 members, $35 nonmembers.Registration required. (646) 207-2994 [email protected] 15New York Interagency EngineeringCouncil holds conference on buildinggreen in the urban environment. 8:00a.m. to 5:00 p.m., La GuardiaCommunity College Performing ArtsCenter, 31-10 Thomson Ave., BuildingE, second floor, Long Island City,Queens. Fee: $125 members and $150

nonmembers in advance; additional $20for all at door. (201) 807-4013.MAY 15Council of Community Services of NewYork State Inc. holds workshop onemployee benefits. 9:00 a.m. to 12:00p.m., Support Center for NonprofitManagement, 305 Seventh Ave. Fee:$30 members, $40 nonmembers.(518) 434-9194.MAY 15New York Society of Security Analystsholds course on forensic accounting.1:00 p.m. to 4:30 p.m., 1177 Sixth Ave.,second floor. Fee: $215 members, $275nonmembers. (646) 871-3429.MAY 16Networking for Professionals holdsreception. 6:30 p.m. to 8:30 p.m.,Techspace, 41 E. 11th St., 11th floor.Fee: $25 members and $35 nonmembersin advance; $40 for all at door.(718) 625-1369 [email protected] 16Society for Marketing ProfessionalServices, New York area chapter, holdsbreakfast and panel discussion on healthcare trends. 8:00 a.m. to 10:00 a.m.,Penn Club, 30 W. 44th St. Fee: $65members, $85 nonmembers.(646) 720-9814.MAY 16Small Business Development Center atCUNY’s Lehman College holdsworkshop on starting a successfulbusiness. 10:00 a.m. to 1:30 p.m., 250Bedford Park Blvd. West, Old Gym

Building, room 108-B, Bronx. Free.(718) 960-8697 [email protected] 17Business Development Institute holdsconference on examining corporate taxstrategies for multinationalcorporations. 2:00 p.m. to 6:00 p.m.,DLA Piper, 1251 Sixth Ave. Fee: $195.(212) 765-8358 [email protected] 17Asian Women in Business holdsconference on procurementopportunities for minority- and women-owned businesses. 8:30 a.m. to 3:00p.m., Bank of New York, 101 BarclaySt., 10th floor. Free. Registrationrequired by May 12. (212) 868-1368 [email protected] 17Anderson Kill & Olick and theAssociation of Corporate Counsel,greater New York chapter, hold seminaron developments in antitrust law. 3:30p.m. to 6:30 p.m., Harvard Club, 27 W.44th St. Free. (212) 278-1400 or [email protected].


THE WEEKS AHEAD

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

TO LIST YOUR EVENT

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.

CNYB 04-30-07 A 30 4/26/2007 3:51 PM Page 1


Dennis foy is back intown with a suave andartful TriBeCa res-taurant that targetswallets in New York’s

financial district.Mr. Foy is a culinary trailblazer

once hailed as a founding father ofNew Jersey’s haute cuisine. It’s a fairdescription, based on his esteemedTarragon Tree in Chatham andMondrian in Manhattan. With wifeand partner Estella Quiñones-Foy,he successfully operated EQ inGreenwich Village. As a consultant,Mr.Foy tapped chef Craig Shelton tolead a four-star charge at Ryland Inn.

Often torn between a career as alandscape painter and the call of thekitchen, he brings both into play athis new eponymous eatery. The

space is lined with Mr. Foy’s sooth-ing sea- and landscapes in an “ab-stract realist” style.

The 60-seat dining room is strik-ingly designed, with vaulted archesand cranberry-hued, sand dollar-shape chandeliers. Guests are en-sconced at tables with soft whitetablecloths and handsome Guy De-grenne silverware. They are seen toby a highly professional sextet ofsuited servers with an aggregate 150years of customer care.

In addition to paying thoughtfulattention, they explain and present amenu of French-influenced con-temporary American food keyed tofine, fresh seasonal ingredients.

The evening may begin with abracing sip of spicy gazpacho wear-ing a top hat of cucumber and cala-mari. The amuse-bouche is also themost zestily seasoned of the day.

Among the appetizers ($8 to$18) is a salt-cured terrine of foiegras with “eis and snow.” One is agelée of ice wine, the other a dust-ing of “snow” made from foie grasfat and tapioca powder.Fresh spring

vegetables bubble and bounce inMr. Foy’s vegetable soup with awhite bean patranque, a small crispcake of bean paste, garlic andcheese.

Superb gnocchi is tossed withchives, sage, mushrooms and par-mesan. Warm fresh crabmeat andthyme served in a small casseroletian is another Foy standby andstandout. Thin strips of marinatedKona kanpachi dressed in white soywith yuzu and pickled plum do notlight my fire.

Arctic char swims to the head ofmy entrée list.The delicate pink fishis seared in ginger bouillon withsesame and served with soybeans,enoki mushrooms and pea tendrils.Day-boat fluke gets a Mediter-ranean spin in a dish with squid,chorizo, white beans, fennel and al-monds. The Basque pepper calledpiment d’Espelette provides addedIberian flavor zip to a wild stripedsea bass and cockles dish,and plumpsea scallops play off Savoy cabbage,cèpes and a parsnip purée.

The short menu is equally divid-ed between seafood and meats.Sweet potatoes and sherry punch upthe sirloin; acorn squash and broc-coli rabe accompany roast lamb loindrizzled in black pepper gastrique.A prized Berkshire pork chop ispaired with ricotta gnocchi, spinachand an exotic mushroom called vel-vet pioppini. The warmly familiarmorels are used as a foil for braisedveal and sweetbreads in a pinot noirreduction.

Desserts ($10) are as artfully plat-ed as earlier courses.The chocolate-

hazelnut dome with dulce de lecheice cream and coffee brûlée is thestyle leader in this group.A pear-pis-tachio tart takes place position.

The restaurant aspires to a lunchand brunch business but is buildingits dinner creds first. It is also reach-ing out to its immediate neighborsas well as casting an eye towardthose in downtown money marts.

Mr. Foy says his newcomer is onthe cusp of a rapidly changing area.“I see the migration of TriBeCafarther east,” he says. “It’s prettymuch filled in to the south of us, andChurch is the next area. My coreclientele is the financial centers—the most traveled and sophisticatedpeople in the world.”


TABLETALK by Bob Lape

buck

enn

is


DENNIS FOY313 Church St. (between Walker

and Lispenard streets)(212) 625-1007

� � ½CUISINE French-influenced newAmerican

WINES 105 choices, 14 by theglass

DRESS No code

NOISE LEVEL Serene

PRICE RANGE $24-$35

WINE MARKUP 100%-250%

CREDIT CARDS All major

RESERVATIONS Recommended

HOURS Dinner, Mon.-Sat., 5:30-11 p.m

��= Outstanding��= Excellent��= Very good�= Good

BEST OF BOB LAPE

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

Dennis Foy offers new American withFrench accents; blend of food, art

NEAR THE DOWNTOWN MONEY MARTS: Dennis Foy and his wife and partner, EstellaQuiñones-Foy, are targeting Wall Streeters with their new restaurant on Church Street.

Following are other contemporaryAmerican restaurants with French orMediterranean influences.

Picholine � � � �35 W. 64th St. (between Broadwayand Central Park West),Manhattan.(212) 724-8585. An elegant redesign,exciting new menu and reinvigorat-ed spirit move Terrance Brennan’stemple of modern Mediterraneancuisine to the top of the list.

David Burke Fromagerie � � �26 Ridge Road (at Avenue of TwoRivers), Rumson, N.J.(732) 842-8088. Mr. Burke and hisculinary crew celebrate the chef ’sreturn to his rustic roots. Hot andAngry lobster, scallops Benedict,Bronx veal filet mignon and cheese-cake pops feature among otherwhimsical treats.

Trotters � � �175 Main St., White Plains.(914) 421-5012. There is excitingand original New American cui-sine, a worldly wine list and metic-ulous service at this constantlyevolving and improving diningspot in downtown White Plains.Owner-chef Anthony Goncalves isthe real deal.

Amalia � � ½204 W. 55th St. (between Broadwayand Seventh Avenue), Manhattan.(212) 245-1234. Stunning new multi-level setting for chef Ivy Stark’s ex-citing Mediterranean rim-Ameri-can cuisine.

Brasserie � � ½100 E. 53rd St. (between Lexingtonand Park avenues), Manhattan.(212) 751-4840. Chef Franklin Beck-er brings a lusty but light touch toclassic French bistro fare at this late-night mecca. Business lunch andweekend brunch also draw crowds.

Brasserie 81/2 � � ½9 W. 57th St. (between Fifth andSixth avenues), Manhattan.(212) 829-0812. A visual showplaceof modernist design, 8½ also has abuzzing bar and lounge scene. ChefJulian Alonzo tastefully balancesAsian seafood tartares, Spanish

Trailblazertries TriBeCa

tapas and steak frites.

Peacock Alley � � ½Lobby, the Waldorf-Astoria, 301Park Ave. (at East 49th Street),Manhattan. (212) 872-7335. Fouryears and $5.5 million later, the sig-nature restaurant of the grand hotelmoves to the center of the lobby.The mix of Art Deco and contem-porary elements mirrors chefCedric Tovar’s global cuisine.

Tempo � � ½256 Fifth Ave. (between CarrollStreet and Garfield Place), ParkSlope, Brooklyn. (718) 636-2020.Three partners from top Manhattaneateries bring a high gloss of foodand service to their own. ChefMichael Fiore taps the entireMediterranean rim to inspire fla-vorful food.

Pair of 8’s � �568 Amsterdam Ave. (between West87th and West 88th streets), Man-hattan. (212) 874-2742. Chef Mat-thew Hamilton’s gently creative spinon American comfort food has thisUpper West Side yearling rollingsevens. Intelligent service and a live-ly crowd in an earth-tone setting. �

CNYB 04-30-07 A 31 4/26/2007 3:51 PM Page 1

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