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JANUARY 25-31, 2016 | PRICE $3.00
07148601068
504
VOL. XXXII, NO. 4 WWW.CRAINSNEWYORK.COM
NEW YORK BUSINESS
CRAINS
®
NEW
SPAP
ERMorgan Stanley to leave Brooklyn P.7 | Outsourcing ... to the Bronx P. 8 | THE LIST: New York’s largest hotels P. 11
EVERYWHEREEVERYWHERESCAFFOLDSSCAFFOLDS
SCAFFOLDS,
A record 190 miles worth to be exact, or enough to wrap
around Manhattan six times.The law that turned
city sidewalks into an obstacle course PAGE 13
20160125-NEWS--0001-NAT-CCI-CN_-- 1/22/2016 7:07 PM Page 1
THE RULE THAT HISTORY in New York City marches upward,
not onward, as the skyline attests, has its exception on
Gansevoort Street.
There, in 1937, the owner of 52-58 Gansevoort
dismantled the upper floors of a tenement to create a
structure that was less expensive to maintain and better
suited to selling produce and, later, meat. Its next-door
neighbor did the same in 1940.
When the Landmarks Preser-
vation Commission created the Gansevoort Market
Historic District in 2003, it cited those otherwise un-
remarkable, low-slung market buildings as a defining
characteristic of the meatpacking district.
Now, two developers are asking the commission for
permission to redevelop that block. They make the unusual
argument that their plan will preserve that part of the
block’s history that was lopped off after the Depression hit New York’s economy.
Aurora Capital Associates and William Gottlieb Real Estate want to take the block
back—way back—to when the Gansevoort Market was an open-air lot filled with
wagons converging to sell wares. Their rationale challenges the very notion of what
it means to preserve the city’s history.
“We took a look at the full sweep of history,” said Harry Kendall, a partner at
BKSK, the architecture shop hired by the developer. The firm has a track record of
renovating buildings, like 25 Bond St. in NoHo, with natural materials that hardly
feel out of place in the context of that neighborhood.
From the vocal opposition, you’d think the developers were proposing a
supertower. In fact, Aurora plans to renovate two of the historically significant
buildings cited in Landmarks’ designation without altering their height, while
developing three of the two-story buildings on the block into what they were
originally: four-, five- and six-story edifices.
Community preservationists accuse the developers of cherry-picking history for
profit. It is a fair accusation, but not one that should be counted against them.
The stronger case is that the area was landmarked to preserve the
neighborhood’s commercial history. “It’s the only block in the meatpacking
district that consists entirely of meatpacking buildings,” said activist Andrew
Berman. The developers, meanwhile, say they are remedying the architectural
dismemberment that took place 75 years ago (also in the name of profit).
My guess is that the commission will ultimately come to some compromise.
Aurora should be credited with thinking about how to march history upward in
an aesthetically sensitive way that respects the past. “We consider ourselves
artisans of real estate,” said Aurora’s Jared Epstein. I wish more developers did.
JANUARY 25-31, 2016
FROM THE NEWSROOM | JEREMY SMERD
Fight of historic proportions
It’s the only block in
the meatpacking
district that consists
entirely of meatpacking
buildings
“
DIGITAL DISPATCHES
READ For the eighth consecutive year, New
York has the nation’s highest combined state
and local tax burden. While the conservative
Tax Foundation’s work is controversial at
times, its annual ranking is accepted as
the best measure of taxes that states and
municipalities levy.
■ Former Mayor Rudy Giuliani is
joining international law firm Greenberg
Traurig as chair of its cybersecurity and
crisis-management practice. He will be
leaving Bracewell & Giuliani, for which he
helped open a New York office. The law firm
will drop his moniker.
LISTEN to a podcast on our scaffold story,
changes that may be coming to your local
pharmacy and how this week’s Photo Finish
came about. Music by the Brain Cloud.
CrainsNewYork.com/podcast
Go to CrainsNewYork.com
IN THIS ISSUE
Wealthy
residents band
together to stop
supertowers for
the even-
wealthier.
FROM THE REBNY GALASCHMOOZEFEST
DDeeppuuttyy MMaayyoorr AAlliicciiaa GGlleenn and Bill
Rudin (pictured) hobnobbed with
real estate and industry
executives at the 120th annual
event hosted by one of the city’s
most powerful trade groups.
Check out photos from the
event at CrainsNewYork
.com/photos, and interviews
with city officials and industry
hotshots at
CrainsNewYork.com/video.
CRAINS
PHOTO: BUCK ENNIS
ON THE COVER
>
BU
CK
EN
NIS
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 3
Vol. XXXII, No. 4, January 25, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for double issues
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©Entire contents copyright 2016 by Crain Communications Inc. All rights reserved.
CORRECTIONS
HULU WILL NOT be streaming the Judd Apatow series Love.This information was misstated in the Jan. 18 Asked &Answered.
W 78-79 is the landlord of 2200 Broadway and was repre-sented by ROBERT KEMPNER and MARK TERGESEN of ABSPartners Real Estate in a leasing deal with Coco-Mat. Thisinformation was misstated in the Jan. 18 For the Record.
DEREK HUTCHISON’s age is 37. This was misstated in theJan. 18 Executive Moves.
Because of a production error, GOV. ANDREW CUOMO’s fullname was omitted at the start of Jan. 18’s “Cuomo’s budgetdiscipline suddenly comes at New York City’s expense.”
4 AGENDA
5 IN CASE YOU MISSED IT
6 ASKED & ANSWERED
7 REAL ESTATE
8 SPOTLIGHT
9 HEALTH CARE
10 VIEWPOINTS
11 THE LIST
FEATURES
13 SCAFFOLD CITY
21 GOTHAM GIGS
23 PHOTO FINISH
P.8 Keith Klain
20160125-NEWS--0003-NAT-CCI-CN_-- 1/22/2016 7:06 PM Page 1
No drama in de Blasio’s budget?At $82 billion, there should be
In proposing an $82 billion budget for the city’s next fiscal year,
Mayor Bill de Blasio called the plan “boring … and it’s a good
boring.” Growing tax revenue minimizes pain in the budget,
but there is more drama than the mayor lets on.
Start with the nearly $1 billion cut in state aid to the city proposed
by Gov. Andrew Cuomo eight days earlier: The mayor’s budget simply
ignores it. De Blasio explained, “I am taking the governor at his word”
that the city will be spared.
Yet that’s not quite what Cuomo meant when he told NY1, “At the
end of the day what you’ll see is it won’t cost New York City a penny.
But we will make joint streamlining, policy-efficiency changes.”
The Assembly might well block Cuomo’s cuts, but the governor was
saying the city could eliminate fat in Medicaid and City University
spending to offset the lost state aid. This is a challenge that de Blasio
should accept. Most CUNY employees could regale the mayor with
tales of waste and inefficiency—from
healthy workers taking sick days
(because they have accrued the max-
imum number they can cash out
upon leaving the system) to profes-
sors who rarely teach. Perhaps the
governor can shake things up.
Even the City Council—which
traditionally pushes mayors to increase spending—is pressing de
Blasio to look for savings in his agencies. The financial plan he
released last week does little of that, although the mayor said he
would consider the idea during the next five months of budget nego-
tiations. Anyone who deals with city agencies knows employees who
shuffle about at a snail’s pace or are bogged down by paperwork for
lack of technology. De Blasio should be relentlessly pushing for
improvement. City government is not a place for busywork or
sinecures.
The mayor denies any lack of
urgency, pointing to “all the things
we’re doing for fiscal discipline” (he
would cut summer afterschool pro-
grams, for example) to avoid increasing
property taxes. But get ready: His budg-
et says property-tax revenue will rise
next fiscal year by more than $1.3 billion, or 5.8%. That the increase
comes from higher assessments rather than rate hikes is little conso-
lation to most property owners, and it is disingenuous for de Blasio to
say, as he did last week, “We are not raising property taxes.” When
pressed, he admitted many New Yorkers would be paying more. In
fact, rate increase or not, they do so virtually every year.
FINE PRINT The mayor’s budget calls for the number of city correction officers to rise by 542 to 10,195, surpassing Rikers Island’s daily population of roughly 9,900 inmates. The spending plan also adds more than
$40 million to the Department of Correction’s $2.4 billion budget, to combat violence at the notorious jail.
I impressed upon himseveral times that 38million cattle go to thefood industry. It’s niceif one lives once in awhile.”— Animal activist Mike Stura after per-suading a Queens slaughterhouse ownerto give him a cow that escaped androamed the streets for an hour last week
25 WORDS OR LESS
“
GE
TT
YIM
AG
ES
4 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
The mayor declared that he is “taking
the governor at his word” that the city
would be spared from cuts. But that’s
not quite what Cuomo said
ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY
BY GERALD SCHIFMAN
SOURCES NYC mayor’s office, Charles
Komanoff, The New York Times
ST
AT
SA
ND
TH
E C
ITY
NO TAX HIKE,the mayor
said. But
property tax
revenue is
budgeted to
rise by 5.8%.
GRIDLOCK SHOCKCITY HALL RELEASED a $2-million study earlier this month absolving Uber of blame forworsening Manhattan traffic. Previous research, including a July 2015 analysis bytransportation economist Charles Komanoff, tells the opposite story.
AGENDAWHAT’S NEW JANUARY 25, 2016
8.5% Reduction in average vehicle speed, to
8.5 mph, in Manhattan’s central business
district from 2012 to 2014
$14.7B Annual economic
cost of NYC’s
traffic delays
Number of additional daily
rides coming from Uber
cars south of 59th Street,
on top of the 44,500 Uber rides that replaced
yellow cab trips, on average, since 2013
52,400
CONGESTION’S CAUSES, ACCORDING TO KOMANOFF
40%
Increased bicycle lanes
19%
19%
5%
5%
11%
1%
Uber
Cheaper gas
Speed limit reduction
More pedestrians
Saferdriving
Unknown factors
Influence on slowed traffic
20160125-NEWS--0004-NAT-CCI-CN_-- 1/22/2016 6:29 PM Page 1
De Blasio’s budgetMayor Bill de Blasio’s $82.1 billionbudget ignores the more than $600million that Gov. Andrew Cuomo’sown budget would cut in statefunding for Medicaid and CityUniversity. The mayor’s budgetinstead focuses on what he called“the core mission of fightinginequality and creating opportuni-ty.” He will inject $337 million intothe city’s cash-strapped publichospital system, and add more than$600 million to the city’s pension-funds allocation. De Blasio said thatthe increased spending would notboost property taxes, but he wasreferring to rates, not revenues.(See Page 4.)
Litigator turned Wall St. cop All eyes will be on the new sheriff intown. Gov. Andrew Cuomo has nomi-nated Maria Vullo to succeed BenjaminLawsky as superintendent of the stateDepartment of Financial Services.Banks and insurers will be watching tosee if Vullo continues Lawsky’s policyof keeping a tight rein on their indus-try. She takes the post amid criticismthat the agency didn’t do enough tokeep insurer Health Republic afloat.
Apple cutsApple announced it will cut 49 jobsfrom its Fifth Avenue office starting inApril, as it shuts down its iAd business,which sells ads inside iPhone apps.
Onion sold This is not a joke: Spanish-language
broadcaster Univision is buying theparent of satirical website the Onion,which has more than 25 millionmonthly visitors, for an undisclosedamount of money. Univision wants toexpand its digital footprint and reachyounger audiences.
Finally, WTC transit hub to openAfter more than a decade of delays andcost overruns, the Santiago Calatrava-designed transit hub at the WorldTrade Center is scheduled to open thefirst week of March. The $3.9 billionfacility will link 11 subway lines andthe PATH trains to New Jersey.
Ziegfeld 2.0In a sign of how tough the movie-theater business is, the ZiegfeldTheater will play its final feature film inthe coming weeks, ending a 50-yearrun. The single-screen movie housewill reopen as a 10,000-square-foot,column-free ballroom for corporateevents and galas in 2017.
Knicks top listThe New York Knicks are the NBA’smost valuable franchise, according to
Forbes’ annual ranking. A new cabledeal and a league-leading $90 millionin premium-seating revenue helpedthe Knicks edge out the Los AngelesLakers, valued at $2.7 billion.
Koch’s museum post is historyDavid Koch, 75, left the board of theAmerican Museum of Natural Historyafter 23 years. Koch, who has beencriticized by environmentalists andclimate scientists, has donated morethan $23 million to the museum andsits on about 20 boards.
Weak IPO market makes
NYC startups look strong
NEW YORK HAS long looked on with awe at the
spectacular valuations given to venture-backed
startups in Silicon Valley: $62 billion for Uber, $25
billion for Airbnb, $10 billion for Dropbox. Though New York is
now No. 2 in venture-capital investment, it has a mere 15
“unicorns”—companies valued at more than $1 billion—to
the Bay Area’s 58, according to Pitchbook.
But that may be a good thing. Those megabillion-dollar
startups are too expensive for anyone to buy, and the tech
IPO market is dead: On average, the 85 venture-backed
companies that went public in 2015 are now trading 23%
below the prices at their IPOs, according to Renaissance Capital. Highly valued companies burning through
their cash may have to take on new funding at worse terms—or go public for a lot less than their private valu-
ation, as San Francisco-based Square recently did.
“Many of these companies have been trying to sustain their private valuations, but they’re disconnected
from the public market values,” said Kathleen Smith, a principal at Renaissance Capital.
New York’s unicorns and near-unicorns have suffered, too: Gilt just sold for a quarter of its one-time bil-
lion-dollar value, and Foursquare halved its valuation for its latest round. WeWork, valued at $10 billion and led
by founder Adam Neumann (pictured), could be a risky bet. But for the most part, the numbers for New York com-
panies don’t seem far-fetched.
“These smaller companies have had more realistic valuations placed on them,” said Pitchbook ana-
lyst Nizar Tarhuni. “They can still get attractive funding packages from VCs who are looking for
quality companies.”
AGENDA ICYMI
DATA POINT
AN ESTIMATED 58.3 MILLION
PEOPLE VISITED NEW YORK CITY
LAST YEAR, A RECORD. SOME
46 MILLION CAME FROM OTHER
PARTS OF THE U.S.
Horse-carriage deal draws ireUnder the proposed deal, which
requires City Council approval, the
number of horses would be cut to
95 from 180, and the horses
would be housed in a new stable
inside Central Park, while pedicabs
would be banned from operating in
the park south of 85th Street.
Pedicab operators claim the
restriction would put them out of
business, and carriage drivers
have threatened to sue the city.
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 5
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CRAIN COMMUNICATIONS INC.
BOARD OF DIRECTORS
chairman Keith E. Crain
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treasurer Mary Kay Crain, Cindi Crainexecutive vp, operations William Morrow
executive vp, director of strategic
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20160125-NEWS--0005-NAT-CCI-CN_-- 1/22/2016 6:29 PM Page 1
What type of development does the city need?Mixed-income. But land is so expensive in the hot areas: thewaterfronts of Brooklyn and Queens; and Manhattan is almostuntouchable. You can build in the boroughs where you havetransportation, but you need zoning [to allow denser housing]. Themayor is trying to introduce that, and he is getting a lot of pushback.But it is a logical solution. It has to be done. It’s more difficult toextend the transportation network than it is to build housing.
Why do you do mixed-income?BRP is a mission-driven organization. Obviously we are a for-profitfirm, but we like building affordable housing, in some instances wherewe don’t even have to, because that is part of our DNA. We believe inan inclusive society. And in that society everybody doesn’t have tohave the same income, but they should have equity in terms of livingin safe neighborhoods and in healthy buildings.
Is it getting harder to find sites? In some cases people are asking about twice as much as they should[for land]. We are looking in northern Manhattan, Queens, centralBrooklyn and the South Bronx.
And what sort of stuff are you looking to build in these neighborhoods? We like mixed-income with retail that is a 10- to 15-minute walk to thetrain station. That’s our formula.
What do you think of the mayor’s plan to build on NYC Housing Authorityland?We are in favor of the NextGen NYCHA plan, the zoning plan andmandatory inclusionary housing. I think the administration ismoving in the right direction, but as a developer and someone inthe weeds, we would want higher density. But we realize themayor will probably have to settle.
Why did you create a general-contracting arm of the company? In the heady days of 2006, we had about $20 million worth ofconstruction on two projects. We couldn’t find a contractor. Wehad to beg companies to take the job, so we said we’d never dothat again. We actually almost missed the market because wehad to wait so long just to find a contractor. Now folks call us.
BRP is a minority-owned business. Could the government be doing more toencourage similar firms to get started? I think there are some fundamental challenges. First of all, you haveto be certified, but there are limits. For the state, if your net worth is$3 million [or more], you can’t be a certified minority-owned businessenterprise. In our business, how do you become a big guy if you can’tgrow to that level? So there are probably more qualified [minority-and women-owned businesses] that aren’t certified. The system isflawed for that reason, but both sides—the businesses and theagencies that oversee certification—could do a better job. �
We are a for-profit
firm, but we like
building affordable
housing, in some
instances where
we don’t even
have to
Meredith Marshall co-founded BRP Development in1998, initially helping run the business out of theapartment he shared with his wife beforegraduating to a storefront office in Fort Greene,
Brooklyn. Now, with 3 million square feet in the pipeline, BRP is oneof the city’s go-to developers for affordable and mixed-incomeprojects.The firm recently won a bid to redevelop the Flatbush CatonMarket in Brooklyn into a residential and commercial project, and isbuilding a $300 million mixed-use complex in downtown Jamaica,Queens, in partnership with the Greater Jamaica Development Corp.
MEREDITH MARSHALL INTERVIEW BY JOE ANUTA
AGENDA ASKED & ANSWERED REAL ESTATE
“
6 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
DOSSIERNAME Meredith Marshall
WHO HE IS Managing partner
and co-founder, BRP
Development
AGE 50
BORN Brooklyn
RESIDES Alpine, N.J.
EDUCATION Boston
University, B.S. in electrical
engineering; Columbia
University, M.B.A.
STARTING YOUNG Marshall
split a duplex apartment near Fort
Greene, Brooklyn, with his eventual
business partner Geoff Flournoy for
$1,200 in the 1990s. Then they
bought the entire building and
years later sold it for more than
seven times the purchase price.
AFFORDABLE HOUSING
Marshall believes there is a
common misconception that
developers can’t get a market-rate
return on affordable housing. By
varying the types of incomes that
would match up with apartments,
developers can use pricier
apartments to subsidize lower rents
in others. Private and public
pension funds would line up to
finance such low-risk investments.
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20160125-NEWS--0006-NAT-CCI-CN_-- 1/22/2016 3:07 PM Page 1
Our thanks to Ryan Alexander, Michael Geoghegan, Harly Stevens, Robert Stillman and J. Paul Stimpfle at CBRE for this 132,400 SF transaction.
Tom Bow TBow@durst.org 212.257.6610Rocco Romeo RRomeo@durst.org 212.257.6630Ashlea Aaron AAaron@durst.org 212.257.6590
Additional Leasing Opportunities Available. Please contact:
Welcomes ING Financial Holding Corporation to 1133 Avenue of the Americas
Morgan Stanley, whosearrival in 1988 gavedowntown Brooklyn asorely needed boost, is
now plotting its exit. But rather thanmove jobs to Bangalore, Salt LakeCity or other low-cost locales wherebanks have sent jobs in recent years,Morgan Stanley plans to relocatestaff to Manhattan, according topeople familiar with the matter. Thebank wouldn’t comment on howmany jobs would cross the EastRiver, but several hundred peopleare now employed in the Brooklynoffice.
The move could begin soonbecause the Brooklyn office leasesstart to expire this year, and relo-cating people to cheaper real estateis a top priority for the bank, whichis looking to lop $1 billion off itscosts in fewer than two years. “Toomany employees [are] based inhigh-cost centers doing work thatcan sensibly be done in lower-costcenters,” Chief Executive JamesGorman said on a conference calllast week.
Manhattan is no one’s idea of a
less-expensive workplace, ofcourse, but it’s where MorganStanley has been funneling staffersfrom the surrounding area for sev-eral years. Employees were trans-ferred from Brooklyn and JerseyCity into lower Manhattan after thefirm in 2012 agreed to lease 40%
more space in One New York Plaza.It’s not clear how much MorganStanley pays landlord BrookfieldOffice Properties for its 1.2 millionsquare feet in that building near theStaten Island Ferry terminal, butthe lease doesn’t expire until 2029.Brooklyn employees could also be
moved into thefirm’s headquartersin Times Square.
Morgan Stanleyplayed a key role inBrooklyn’s businessrevival when in 1988it moved its com-puter center intoPierrepont Plaza, anewly constructedhigh-rise built by anu p - a n d - c o m i n gdeveloper namedBruce Ratner. Atthe time, the firm’srent was a bit more than $20 persquare foot, according to pressreports. Today, average askingrents for downtown Brooklynoffice space are $52 per square foot,according to Newmark GrubbKnight Frank.
Morgan Stanley has been gradu-ally retreating from Brooklyn forseveral years. It rented nearly670,000 square feet of space in theborough five years ago but now hasabout half that amount.
Carlo Scisurra, president of the
Brooklyn Chamber of Commerce,said it would be unfortunate to losethe Morgan Stanley jobs. That said,he expects that any vacant spacewould be quickly filled. PierrepontPlaza tenants include HillaryClinton’s presidential campaign.
“I’ve got a list of companiesdying to be here,” Scisurra said.“It’s hard for me to understandwhy Morgan Stanley would leave,given the strength of Brooklyn’sbrand. They’re making a seriousmistake.” �
ELECTED OFFICIALS and a Manhattan neighborhoodgroup submitted a plan last week to cap the heightof new apartment towers in Sutton Place at rough-ly 25 stories, aiming to stop a nearly 900-foot-tallluxury tower proposed for the neighborhood.
The East River Fifties Alliance’s proposal, whichwould alter the Manhattan neighborhood’s zoning,was signed by three elected city officials who couldend up voting on it. The proposal would impose aheight cap of 260 feet east of First Avenue betweenEast 52nd and East 59th streets. It is designed to pre-vent the construction of supertall condo towers—buildings topping 1,000 feet—which have croppedup along West 57th Street, an area known asBillionaire’s Row.
“Billionaire’s Row keeps growing, and we aredrawing the line at a residential neighborhood,” saidCity Councilman Benjamin Kallos, who representsthe neighborhood and backs the change, which wasdelivered to the Department of City Planning.
The rezoning effort was galvanized by a pro-posal from developer Joseph Beninati’s BauhouseGroup to erect a 900-foot-tall luxury condo toweron East 58th Street. Beninati is currently tearingdown existing buildings on the site but has not yetsecured financing to start construction. ABauhouse spokeswoman said any effort to blockthe tower would be futile.
“Our project will be nearing completion by thetime any rezoning would be heard,” she said in astatement. �
For Morgan Stanley, it’sgoodbye BrooklynAs a lease expires, back-office staff is moving to Manhattan, for now
REAL ESTATEAGENDA
BY AARON ELSTEIN
Community looksto stop supertowerSeeks 260-foot height cap BY JOE ANUTA
BL
OO
MB
ER
G
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 7
It’s hard for me to
understand why Morgan
Stanley would leave,
given the strength of
Brooklyn’s brand.
They’re making a
serious mistake ”
JAMES GORMANtold investors
last week that
the company
would look to
leave high-cost
centers.
“
20160125-NEWS--0007-NAT-CCI-CN_-- 1/22/2016 6:30 PM Page 1
Doran Jones co-CEO Keith Klain began forming visions of creat-ing an outsourcing powerhouse on the banks of the HarlemRiver as he flew from New York City to places like India, EasternEurope and Singapore to visit offshore software consulting
company vendors. Why travel halfway around the world, he wondered,when you can set up a facility a mere seven miles from midtown, wheremany of the company’s financial-services clients’ offices are?
And so Doran Jones—named after co-founders Glenn Jones (who hassince left the firm) and current co-CEO Matt Doran—set up its technologyhub in a warehouse on East 138th Street. From this location, directly acrossthe East River from Rikers Island, Doran Jones is reimagining the idea of off-shore staffing by running a profitable business using local employees.
“We want to be the onshore outsourcing alternative to India,” says Klain.In September, Doran Jones opened its 15,000-square-foot IT facility in
partnership with Per Scholas Inc., a national nonprofit that teaches techskills to people in economically disadvantaged neighborhoods. The officehas the feel of a tech startup: open-plan seating, TVs for webcasting,whiteboards and a Playstation in the break room.
The company has 53 employees now working to develop and test cus-tom risk-management and claims-adjustment systems for Fortune 100financial and insurance companies. Approximately 80% of Doran Jones’staff came from its training program with Per Scholas, and the companycurrently hires about a third of the program’s graduates.
Twenty minutes from Grand Central “Executives in the testing space spend a lot of their time on planes
going to India or Eastern Europe,” said Doran, who leads the team’s salesefforts and previously worked in the structured-finance group at FitchRatings. “The sheer convenience of being 20 minutes from Grand CentralTerminal is something these guys love.”
Still, selling investors on the idea of an IT center in the Bronx wasn’teasy. Despite being on the edge of Manhattan, the South Bronx is a worldaway from the financial capital of the universe.
“We spent a lot of time asking for money and not a lot of people wereopen to the risk profile of doing this in the Bronx,” said Klain.
So Doran Jones got creative. It went to private philanthropic fundersand asked them to give grants to Per Scholas, which used the money toconstruct the facility. Doran Jones is leasing the space from Per Scholasand sharing 25% of the unit’s profits with them.
“This is a huge paradigm shift for the nonprofit world,” Klain said.By keeping its investment costs relatively low and maintaining company
ownership, Doran Jones provides a cost-competitive alternative to offshorefirms. It previously provided its services on-site at clients’ offices.
Sales figures show onshore staffing can work. Doran Jones had rev-enue of $3.5 million in 2014 and $5.5 million in 2015, and projects $10.2million this year.
Klain, who has 29 years of IT experience working for large banks, said thelevel of education is what separates his employees from those outside theU.S. “In the traditional software testing in India, the attrition rate is high andthe quality is low,” he said. “We focus on software testing as a real career andskill set.” Half of the Per Scholas hires have college degrees, he says.
All new Doran Jones staff members complete a 15-week technologytraining program taught by Per Scholas. Then they tackle an eight-weeksoftware testing program led by Doran Jones. “We give them a job or, ifwe don’t have a job, we help them find one in the open market,” saidKlain. “That is part of the partnership.”
“Doran Jones is a classic India alternative,” says Allie Young, a technologyanalyst at Gartner. Young looks at four elements to measure an onshore com-pany’s success, and Doran Jones has them all: a competitive labor market;proximity to clients; a clear, niche focus; and an education pipeline. “It is wellpositioned,” says Young. “Its growth suggests they are scaling effectively.”
Doran Jones has signed nondisclosure agreements with its clients, butsays it is bullish on its prospects. The company is looking to grow to 150employees by midyear, and to 450 workers by late 2016.
“The Bronx is shedding the old stereotypes,” said Borough PresidentRuben Diaz Jr. “We still have work to do, but crime is down, jobs are up andwe are on the rise.” �
SPOTLIGHT SMALL BUSINESS
The Bronx takes on Mumbaifor IT outsourcing Doran Jones builds a software testing empire in Port Morris, using localworkers and a totally new approach to raising capital
LLOOCCAATTIIOONN 804 E. 138th St., Bronx
FFOOUUNNDDEERRSS Matt Doran and Glenn Jones
GGOOAALL The company is looking to fill its current facility with employees, including
adding 300 more workers during the next two years. Doran Jones is also exploring
adding a second location in another city.
BBOOTTTTOOMM LLIINNEE
Employees: 53
2014 revenue: $3.5 million
2015 revenue: $5.5 million
2016 forecast: $10.2 million
FOCAL POINTS
KEEPING IT CLOSE:Keith Klain is
bringing tech
outsourcing closer
to his Manhattan
customers by
creating jobs in the
Bronx.
AGENDAB
UC
KE
NN
IS
8 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
BY MATT MCCUE
20160125-NEWS--0008-NAT-CCI-CN_-- 1/22/2016 3:12 PM Page 1
years have relied on the legislatureto beat back proposals from thegovernor that would cut Medicaidcosts at their expense. AssemblySpeaker Carl Heastie, who receivesregular contributions from pharma-cy groups, sponsored legislationpassed in 2011 that made it illegalfor health plans to require theirmembers to use mail-order phar-macies or to charge co-pays forusing brick-and-mortar pharma-cies. Insurers argued that the mail-order option would save moneythat would translate to lower pre-
miums for consumers.When it comes to lifesaving spe-
cialty drugs, the most importantthing is to ensure they’re widelyavailable, according to a spokesmanfor the Gay Men’s Health Crisis, anHIV/AIDS advocacy organization inNew York City. “Given the commit-ment to ending the epidemic inNew York state by 2020, we arehopeful that as the budget negotia-tions continue that the final budgetwill remove barriers like reducedreimbursements for specialtydrugs,” the spokesman said. �
A plan by Gov. AndrewCuomo to save the statemoney on high-cost specialty drugs has local
pharmacies pushing back, sayingthey could be forced to discontinuecarrying those medicines.
The drugs are used to treat com-plex conditions such as cancer andHIV, and retail at an average of$53,000 for a year’s treatment,according to the AARP PolicyInstitute. Local pharmacies see theplan as a lose-lose scenario: losemoney on the drugs becauseMedicaid’s proposed reimburse-ment does not cover their costs; orstop carrying the medicine and risklosing customers who would goelsewhere to fill their prescriptions.
“If pharmacies aren’t going to beable to afford to fill these prescrip-tions, it creates patient-accessissues,” said Mike Duteau, presi-dent of the Chain PharmacyAssociation of New York State, alobbying group that representscommunity drugstores.
In some cases, pharmacies arepaid hundreds of dollars below costfor specialty drugs by Medicaid
managed-care plans, and have lim-ited ability to negotiate rates,Duteau said.
The governor, who introducedthe measure as part of his $145.3billion budget, has taken aim atspecialty pharmacy costs as part ofhis focus on bringing downMedicaid spending, which theadministration said fell to a 13-yearlow of $8,223 per enrollee in 2014.(Medicaid spending has nonethe-less increased to $63.3 billionbecause more New Yorkers, 6.3million, are covered by it.)
A major part of Medicaid reformhas centered on better coordinatingpatients’ health through managed-care plans, which typically reim-burse pharmacies at lower rates forthe drugs they dispense. Now,Cuomo wants pharmacies to bereimbursed at those lower rates forall Medicaid members.
The state is not alone in trying toaddress the rising cost of specialtydrugs, which in 2012 accounted forjust 2% of drug utilization but 28%of drug spending, according to theKaiser Family Foundation.
Local pharmacists in recent
Pharmacies decry proposedcuts to specialty-drug careMedicaid patients with cancer, HIV could be affected
HEALTH CAREAGENDA
BY CAROLINE LEWIS
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JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 9
New York Pres-byterian Hospitalhas received a $75million gift from
the Steven & AlexandraCohen Foundation to create aunit to care for newborns.
The Alexandra & StevenCohen Hospital for Womenand Newborns will occupysix floors and 246,500square feet in the DavidKoch Center, a plannedambulatory-care facility onthe Upper East Side. It willbe part of New York-Presbyterian’s Weill Cornellcampus. The hospital will have75 private rooms and well-baby bassinets, 60 privateneonatal intensive care unitbassinets, 16 labor and deliv-ery rooms, five C-sectionsuites, five post-acute carebays and 14 ultrasound rooms.It is scheduled to open inDecember 2020.
The Cohens have also beenprodigious benefactors toother area hospitals. In 2005,they donated $50 million
toward a pediatric emergencyroom at NYP’s Morgan StanleyChildren’s Hospital in Wash-ington Heights. NorthwellHealth, the 21-hospital LongIsland system, renamed itsown children’s hospital inNew Hyde Park after theCohen family, following a $50million pledge made in March2010.
Steven Cohen is thefounder of hedge fund SACCapital Advisors, now Point72Asset Management. Earlierthis month, Cohen settledcharges from the U.S.Securities and ExchangeCommission alleging he failedto supervise an SAC hedge-fund manager convicted ofinsider trading. Forbes esti-mates Cohen’s net worth is $12billion.
Epilepsy drug test beginsFive New York hospitals wereapproved to conduct clinicalstudies on a cannabis-basedepilepsy drug called Epi-diolex, the state Department
of Health announced lastweek. Patients between theages of 1 and 21 who sufferfrom treatment-resistantepilepsy are eligible; 100 willbe chosen to participate.Epidiolex, manufactured byGW Pharmaceuticals, previ-ously was tested in a study atNYU Langone. Participatinginstitutions include Monte-fiore, Women & Children’sHospital of Buffalo, NYULangone, Mount Sinai Beth
Israel and University ofRochester Medical Center.
Genome research The New York Genome Centerin Manhattan received a four-year, $40 million commitmentfrom the National Institutes ofHealth’s National HumanGenome Research Institute fora genome-sequencing pro-gram that will study commondiseases, with autism as itsprimary focus. The funding
comes on the heels of a sepa-rate $100 million challengegrant made by the SimonsFoundation ($80 million) andthe Carson Family CharitableTrust ($20 million), charitiesthat are affiliated with twoNYGC board members.
City hospitals get bailoutMayor Bill de Blasio’s $82.1 bil-lion preliminary budgetincludes $11.6 billion for healthand welfare, most notably a$337 million infusion for NYCHealth + Hospitals, which lost$263.6 million in the first quar-ter of its fiscal year. The mayorsaid the public hospital systemis suffering because of federalcuts for uninsured care, butthat proposed Medicaid cutsfrom the state “won’t cost thecity a penny” because they willbe offset by efficiency gains.The budget also sets aside $5.4million to expand FDNYambulance tours in Manhattanand Queens and to fund initia-tives in the Bronx to improve response times. �
NY-Presby gets $75 million gift to improve care for newbornsBY JONATHAN LAMANTIA AND CAROLINE LEWIS
The gift to the hospital
came from the Steven
& Alexandra Cohen
Foundation.
20160125-NEWS--0009-NAT-CCI-CN_-- 1/22/2016 3:06 PM Page 1
AS NEW
YORK Metsa n n o u n c e rHowie Sternlikes to sayafter a win,“Put it in thebooks.’’ And2015 wascertainly a
win for New York City,according to last week’s stateLabor Department report.
● It’s a record.New York City added
100,500 jobs in 2015 (using theannual average of nonfarmemployment), the secondconsecutive year the city hasgenerated six-figure employ-ment gains, after 120,700 jobs
were added in 2014. This isimportant because it is thefirst time that has happenedsince reliable statistics beganbeing collected.
Halfway through the newmayor’s term, it is time to callthe expansion that began in2010 the “Bloomberg-deBlasio Boom.”
● Forget the idea that there is amanufacturing revival.
Last fall the Center for anUrban Future made a splashby reporting an uptick inmanufacturing jobs. Somemedia outlets continue to relyon that finding. Now weknow manufacturing declinedby 1,000 jobs—the only majorsector to lose ground.
The numbers to focus onare 103,200 (the job count adecade ago) and 74,400 (theDecember 2015 total). Fromhistory, it is easy to predictwhat will happen. This sectorwill lose a small number ofjobs each year as long as thenational economy remainsstrong, and then will plungeduring the next recession.
● Ignore all those bad-news head-lines on Wall Street.
In the last year, securitiesfirms added 8,300 positions—an impressive 5% increase. Itisn’t clear where those jobsare, but the best guess is thatthey are at hedge funds andprivate-equity firms, withsome additions to compliance
and legal depart-ments at the bigfirms. It is worthnoting that 2014 payrose sharply, anddespite mediareports to the con-trary, bonuses are like-ly to be better than expectedwhen we get the state comp-troller’s take next month.
● Leisure and hospitality just keepexpanding.
The great New York Citytourism boom produced13,000 new positions lastyear, bringing the total toabout 430,000. Most of thecredit goes to full-serviceeateries, but fast-foodemployment grew, too,
despite the looming mini-mum wage increase to$10.50 an hour.
The report released lastThursday is preliminary andwill be revised in March,when the department restatesall the numbers for 2014 and2015. At least a few local econ-omists expect those to berevised upward. �
GREG DAVID
AGENDA VIEWPOINTS
With record employment, let’s call it the Bloomberg-de Blasio boomThe city records consecutive six-figure job gains for the first time in history
10 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
GREG DAVID blogs regularly
at CrainsNewYork.com.
Pot shots and Penn Station
Kill or keep common core
The premise of “Wastedmoney, chaos predicted if NYrepeals Common Core”(CrainsNewYork.com) is ludi-crous. We should keep theseharmful standards because itwould be cheaper than tryingto replace them?
Perhaps the true waste wasthe billions spent trying toshove them down the throatsof educators and families.Now, the state has decidedthat tests associated withCommon Core won’t evencount toward teacher evalua-tions until 2020. And what dothese businesses care aboutother than the bottom line?They know nothing of how toeducate the whole child.DANIEL BARRESI
Centereach, N.Y.
THEY MAY CHANGE the nameand decrease testing, but thestandards of increasing mathand English skills are goingto remain. About 30%-40%of New York state studentsgraduating high school needto take remedial classeswhen they enter college.The ACT and SAT both areshowing large percentages
taking those tests are notready for college or theemployment market.
The kids who need reme-dial classes often fail to gradu-ate from college, or take six-plus years with too many stu-dent loans. They end upunderemployed and in fiscaldifficulty for a great part oftheir lives. Increasing mathand English skills is a starttoward reversing that trend.
Common Core has becomethe No. 1 conspiracy theoryamong the opt-out group.They blame the businessgroups, book companies, BillGates, President Obama oranything they can. It is sad tosee adults falling for silly con-spiracy theories. I guess this isthe new world we live in.
We did land on the moon,folks. We do need to improvemath and English skills for alarge number of our kids.JAMES HAYES
Love those tip-free restaurants
There are more than 20 tip-freerestaurants in New York City,so while Danny Meyer is start-ing a good conversation, he’sfar from alone (“New Yorkersstill love tipping, survey
shows,” CrainsNewYork.com).There are many reasons to
support this trend: In additionto reducing the server/cookwage gap, tipping is discrimi-natory (black and olderwomen servers earn less) andtied to sexual harassment andcorruption. I hope diners canbe open to the change.MAX GHENIS
Grow the weed business
I’m grateful to Crain’s reporterCaroline Lewis for staying onthe medical-marijuana story(“Inside a marijuana buyersclub,” Jan. 4). Politicians mustlose their fear and act to makeNew York’s entire cannabisindustry flourish.
There are thousands ofpeople across New York whocould be positively affected bythe swift expansion of thisoverly restrictive medical-cannabis program: manymore patients in need, ofcourse, but also thousands ofNew Yorkers who desire long-term, respectable careers inthe cannabis industry.
Also, the stalks and seedsof cannabis plants presentlimitless economic opportuni-ties for New York’s farmers
Readers also react to school tests and tip-free restaurants
CRAIN’S WELCOMES SUBMISSIONS to its opinion pages. Send letters to letters@crainsnewyork.com. Send columns of 475 words or fewer to opinion@crainsnewyork.com. Pleaseinclude the writer’s name, company, address and telephone number.
and entrepreneurs, who canjoin forces to revitalize manu-facturing, medicine, nutritionand adult recreation all atonce. The only thing we haveto fear about cannabis is thefear of these plants itself!LAWRENCE GOODWIN
Replant the Garden in the Bronx
Crain’s editors are correct that“The long-awaited overhaulof awful Penn Station comes abit too soon”(Jan. 11).
Let’s startplanning nowfor 2023, thelast year of theCity Council’spermit exten-sion forMadisonSquare Garden.A new Garden should be builtnear Yankee Stadium, perhapsin place of underused garagesor by Metro-North’s YankeeStadium stop. HankSteinbrenner, with BronxBorough President RubenDiaz Jr., should lead a“Knicks, Rangers andYankees as Neighbors” campaign.
Getting to Yankee Stadiumis an easy ride on the subwayor Metro-North—an instant-camaraderie experience forfans. Plus, it’s time to take
advantage of the close-by,easy-walking-distance of theHarlem River. Imagine the funand the visual splendor ofarriving for a game by ferry.
For fans who drive, thearea has plenty of parking.
What is now known as theYankee Stadium area couldbecome a year-round SportsVillage USA. Restaurants,other establishments, condosand hotels further propellingthe already well-advanced
revivification ofthe SouthBronx wouldn’tbe far behind.Before long, thenext generationof young pro-fessionals willwant to livethere or nearby.
Lastly, somemayor will one day bring upthe idea of a bid for theSummer Olympics. The bidwill be a lot stronger if itincludes Sports Village USA. Itcould also, of course, containseveral pictures of the newPenn Station!MICHAEL J. GILL
Gill is a partner in theGillWright Group, a Bronx-based management consultingfirm, and was a founder andchairman of the South BronxOverall EconomicDevelopment Corp.
YEAR TOTAL CHANGE
2009 3,693.3 -135.5
2010 3,711.5 18.2
2011 3,798.5 87.0
2012 3,885.3 86.8
2013 3,981.5 96.2
2014 4,102.2 120.7
2015 4,202.7 100.5
SSoouurrccee:: NYS Department of Labor
NYC JOB TOTALS
In thousands
BU
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20160125-NEWS--0010-NAT-CCI-CN_-- 1/22/2016 3:12 PM Page 1
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20160125-NEWS--0012-NAT-CCI-CN_-- 1/21/2016 6:18 PM Page 1
Scaffold CityHOW A LITTLE LAW MEANT TO PROTECT PEDESTRIANS CREATED A $1 BILLION INDUSTRY
AND CHANGED THE FACE OF NEW YORK
One day in 2004, workmen arrived at the corner of West123rd Street and Lenox Avenue in Harlem to erect asidewalk shed, one of those unsightly steel-and-wooden structures that pop up any time a building isunder construction. Twelve years later, it’s still there.
“It’s completely demoralizing,” said Laurent Delly,a real estate broker with a master’s degree in civil
engineering who lives down the street from the shed. Sidewalk sheds andthe scaffolding that usually sits atop them are intended to protect pedes-trians from falling bricks and debris. But the chief purpose of this partic-
ular shed, on a handsome block in the Mount Morris Park HistoricDistrict, seems to be to collect garbage and provide shelter to the loiter-ers who lurk underneath. Repairs at the building it surrounds move at aglacial pace.
Delly has complained over and over to the city, elected officials andbuilding inspectors, who have fined the owner for numerous violations.He contacted The New York Times, which wrote a feature on it two yearsago. Still, the shed remains.
“This is a beautiful block, and people here care about our streets,”Delly said. “Do you think this would be allowed to happen if we lived on
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 13
CONTINUED ON PAGE 14
By Aaron Elstein
PHOTOGRAPHY BY BUCK ENNIS
20160125-NEWS--0013-NAT-CCI-CN_-- 1/22/2016 3:53 PM Page 1
the corner of Park Avenue and 72nd Street?”Plenty of New Yorkers can understand his
frustration. Across the city, sidewalk sheds andscaffolding spread like kudzu. They devourprecious sidewalk space, cut off sunlight, cre-ate safety hazards and hurt businesses. Thereare now nearly 9,000 sheds entombing citystreets, according to the Department ofBuildings, up from about 3,500 in 2003. That’s190 miles worth of sheds, or 1 million linearfeet—equal to the distance between GansevoortStreet in the West Village and thehamlet of Gansevoort in upstateSaratoga County.
“New York is insatiable rightnow when it comes to sheds,”said George Mihalko, a shed-equipment supplier who said hisbiggest challenge is findinginventory to fill the five 25-foot-long truckfuls of steel pipes andbeams that he sends out dailyfrom his North Bergen, N.J., ware-house. “I’ve never seen anything like it in 30years.”
The unprecedented demand is driven in partby the new wave of construction fueled by thecity’s robust economy. But there’s another,more important reason: Thirty-six years ago,the city passed a law requiring regular inspec-tions of older buildings to ensure concrete andbricks don’t fall on pedestrians. And sincethen, the City Council has strengthened the lawwhile adding new ones, giving rise to an indus-try that generates $1 billion a year—$200 mil-lion of that is for the street-level sheds, and therest pays for the scaffolding and the workerswho repair the façades.
One of the shed boom’s biggest winners isWilliam Laffey, a 36-year-old native ofBellerose, Queens, who, after graduating from
Albany’s Siena College in 2001, started outmanaging the tool inventory at a Home Depot.He is now president of Spring Scaffolding, aLong Island City-based firm that builds moresheds than anyone else, with 583 standingaround the city, according to BuildingsDepartment records. “I wouldn’t say this isrecession-proof, but someone always needsscaffolding,” Laffey said.
Of course, what some might call boom timesfor sheds would be described by others as an
epidemic. “Sheds are awful and everywhere,” lament-
ed Dan Biederman, president of the 34th StreetPartnership, a midtown business district wheresheds cover about 20% of the sidewalk space.
“So many things about the city haveimproved, yet sheds are the same gloomy thingthey’ve been for more than 40 years,” groanedStephen Varone, president of Rand Engineering& Architecture.
Even shed builders agree their works don’texactly please the eye. “Basic sidewalk shedsare built for safety, economy and functionality,not beauty,” said Ken Buettner, CEO of YorkScaffold Equipment Corp. in Long Island City.
Sheds themselves can be safety hazards. Lastyear, Mayor Bill de Blasio described sheds as“great for criminals as a place to hide” and
“great for folks who want to throw their trashon top.” On Jan. 8, his administrationannounced a “shed safety sweep” in whichinspectors will examine sheds to ensure they’rewell-lit and code-compliant. In 2007, a NewYork police officer chasing a suspect slammedinto a poorly lit shed at the corner of RiversideDrive and West 109th Street, and was injured.“I never saw the pole ... the light was—it wasblack, dark,” the officer later testified. Small-business owners complain that sheds obscuresigns and shop windows and drive potentialclients across the street. Last month, the UpperWest Side’s Ocean Grill shut down after a shedand construction noise drove away customers,according to a lawsuit the owners filed againsttheir landlord. BLT Fish in the Flatiron districtcalled a shed outside its restaurant a “kiss ofdeath” in a 2013 lawsuit against its landlordthat was settled a few months ago.
Residents loathe sheds because some nevergo away. The Mount Morris shed has lingereduptown longer than Wicked has played onBroadway. “The city assumes if you want a per-mit, there’s work to be done, and clearly thatisn’t always the case,” said Robert Rodriguez,an assemblyman from Harlem. Last summer,the de Blasio administration removed eightmiles of sheds from New York City HousingAuthority properties where no active work wastaking place, and last month, Gov. AndrewCuomo signed into law a bill that requires theHousing Authority to remove any remainingdormant sheds on its sites. Rodriguez, the bill’ssponsor, wants the legislation extended to pri-vate landlords.
Six years ago the building industry held acontest to create a nicer-looking shed. Thewinning entry was an attractive assemblage ofhigh-strength recycled steel, translucent plas-tic and LED lighting, called Urban Umbrella.But it flopped because it costs more than tradi-tional steel-and-wood sheds and is harder toassemble.
And so the dismal spread of sheds continues.“What’s supposed to be a temporary struc-
ture has become an architectural feature of thecity,” said Andres Cortes, UrbanUmbrella’s designer. “How do we getout of this?”
THE ANCIENT GREEK historianHerodotus described howEgyptians used scaffolding to
build pyramids, but the modern busi-ness dates to 1938. That’s when aMilwaukee contractor named ReinholdUecker patented the first scaffolding
system of steel beams and pipes, after thewooden structure he had used on a churchsteeple collapsed. Today, the scaffolding busi-ness nationally generates more than $10 billiona year in revenue, says Marty Coughlin, pastpresident of the Scaffold & Access IndustryAssociation, a national trade group.
In New York, the business is dominated byoutfits including York Scaffold, UnitedHoisting & Scaffolding, and Universal BuildersSupply, which not only install sheds but alsobuild scaffolding and construction elevatorsabove them. Universal, which helped erect theEmpire State Building in 1931, generated $75million in revenue last year, according to thetrade journal Engineering News-Record. Itsscaffolds once covered the Statue of Liberty, St.Patrick’s Cathedral and the Time Warner
14 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
AGING IN PLACE: Disgruntled Harlem
resident Laurent Delly wants this
12-year-old shed removed.
“SO MANY THINGS ABOUTTHE CITY HAVE IMPROVED, YETSHEDS ARE THE SAME GLOOMY
THING THEY’VE BEEN FOR MORETHAN 40 YEARS”
20160125-NEWS--0014,0015-NAT-CCI-CN_-- 1/22/2016 3:25 PM Page 1
Center on ColumbusCircle. “It’s not anexaggeration to saywe helped build a lotof the New Yorkskyline,” saidPresident KevinO’Callaghan, thethird generation torun the family busi-ness. His firm’s cen-tral role in the city’sreal estate sceneputs O’Callaghan inregular touch witheveryone from cor-porate CEOs to truckdrivers—“the wholegamut of society.”That said, he doubtshe will pass on thecompany to his chil-dren, one of whomworks at GoldmanSachs, another atDeutsche Bank and a
third at Yext, a Manhattan-based firm special-izing in digital-location management software.He’s proud of his kids, but adds, “They’re mov-ing paper.”
Starting in the early 1980s, O’Callaghan andother big scaffold builders started to see newcompetition. There’s a founding figure for thatstory, too. Her name is Grace Gold.
Gold was a graduate of Brooklyn’s JohnDewey High School who was fluent in Spanishand liked to sing and play guitar. She finishedhigh school early and was only 17 when shecompleted her freshman year at BarnardCollege on the Upper West Side. On May 16,1979, after attending the annual graduationceremony, she headed with some friends to getcash at a bank at the corner of Broadway andWest 115th Street. Then a piece of masonry felloff the building and struck her on the head.“Her friends watched her die on the street,”recalled her sister, Lori Gold.
A year later, the city enacted a law requiringowners of buildings higher than six stories toinspect their properties’ street-facing façadesevery five years. The law created a need foranyone skilled in replacing aging bricks orstonework. “Grace’s death catapulted whathad been a cottage business into an industry,”said Wayne Bellet, owner of BelletConstruction, a 70-employee firm that special-izes in renovating old buildings.
The statute, Local Law 10, was also a boon tothe shed industry because there were 13,000buildings around the city that needed inspectingand a shed had to be installed any time restora-tion work was deemed necessary. Hundreds ofstartups rushed in, including Spring Scaffoldingand Skyline Restoration, which merged in 2011.In 2013, Skyline was ranked by Crain’s as one the50 fastest-growing companies in the city, with$66 million in revenue. (That figure is now morethan $90 million, according to a person familiarwith the firm.)
Over time, the city broadened its inspectionlaws, usually in reaction to accidents. In 1998,Local Law 11 came into effect and requiredinspections of side and rear façades. In 2010,the city staggered deadlines for filing safetyreports to avoid mass sprints to the finish line,in the process creating a never-ending streamof work for shed builders. In 2013, after a 35-
year-old woman was killed when a balconyrailing collapsed, the city added railings to thechecklist.
“I’m sure it was never anyone’s intention tohave sheds pop up all over the place,” saidRand Engineering’s Varone, who started hisfirm in 1987 to help buildings comply withLocal Law 11. “But that’s how it worked out.”
Business grows constantly. Even the finan-cial crisis didn’t hurt, with Universal BuildersSupply’s revenue rising every year between2007 and 2013.
The emphasis on building safety has had ademonstrable impact. Complaints about fallingbricks or other debris decreased by more thanhalf from 2005 to 2015, according to cityrecords of 311 calls. “There’s no doubt in mymind that decline is due to the city’s laws,”said Eric Cowley, founder of CowleyEngineering, a firm that has renovated NewYork buildings since 1985.
The improvement also comes at considerablecost to building owners, with expenses ratch-eted up in part because cautious city officials
sometimes require a shed even when it isn’twarranted. One reason is constrained resources:The Department of Buildings’ 500 inspectorsmonitor thousands of construction sites, andharried officials sometimes order a shed to pro-tect pedestrians until they get time to visit thebuilding. Cowley said officials sometimesdemand sheds for minor projects that don’t evenneed permits, such as masonry-joint repair.
“The city has become a little overzealouswhen it comes to requiring sheds,” he said.
That probably wouldn’t be so bad if thestructures really were temporary. But oncethey go up, there’s no law saying private land-lords must take down dormant sheds, nor doesit always make financial sense to do so. Thelaws of shed economics explain why.
THE EVER-PRESENT SHED on Delly’s Harlemblock sprouted up about four monthsafter the four-story, eight-unit building
was acquired in 2004 by Muhammad Shahid.
190MILES OF SIDEWALK SHEDS
in the city, more than doublethe number a decade ago
$25KCOST TO ERECT a 200-foot-long shed
$200MANNUAL COST of building andmaintaining NYC’s sheds, notincluding scaffoldingSources: New York City Department ofBuildings, industry estimates
FACTS
CONTINUED ON PAGE 16
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 15
�
�
�
�
�
�
THE CEILING is
made of beams and
corrugated steel
pitched so rainwater
rolls off, and is
topped with wooden
planks
THOSE MULTITUDINOUSCOLUMNS, by the way,
are called bridge legs
BRIDGE LEGS rest
on wooden squares
called mudsills
T-CLAMPS secure cross
braces to
bridge legs
HEAD CLAMPS secure I-beams
to columns
COLUMNS are
linked by
horizontal beams
called girts
DIAGONALPIPES are
called
cross
braces
AND DON’T FORGET! City rules also require a sign giving information about the
construction project and whom to call with complaints. The letters spelling this out
must use Calibri or a similar sans-serif font, be at least one inch high as measured
by the uppercase character, and be white on a background painted one of eight
shades of blue.
ANATOMY OF AN ANNOYANCE
�
20160125-NEWS--0014,0015-NAT-CCI-CN_-- 1/22/2016 3:26 PM Page 2
Shahid, who is listed in city records as presi-dent of a firm called Zamzam Realty, said theshed has stood for so long because the area’slandmark status has made it hard to get reno-vation plans approved. “I have no idea whenthe shed will come down,” he said.
Shahid may infuriate people who live nearhis property, but he’s one of many landlordswho have concluded it’s cheaper to keep up ashed—and pay fines for violations—than it is tofix a building.
Here’s the math: To erect a 200-foot-longshed costs around $25,000, half of which ispaid upfront and the rest when the shed istaken down. In between, the shed builderwould collect about $700 per month in rent.Suppose the building owner needed to replaceloose bricks and masonry, tighten the parapetand waterproof the roof. If the building werehigher than 15 stories, he would need to employa full-time site-safety inspector, install protec-tion over neighboring buildings, and put up ashed that extends 20 feet past the end of itsfaçade in each direction. The entire cost of therenovation project, including the shed andscaffolding? Easily $250,000, according toCowley. Even a prosperous building ownerwould probably flinch at that expense; the lesswealthy simply put up the shed and worryabout when it will come down some other day.
This could be remedied with legislation sim-ilar to the law requiring the Housing Authorityto take down its sheds. But City CouncilSpeaker Melissa Mark-Viverito wouldn’t com-ment on whether she would support such alaw, and the state couldn’t pass one withoutthe city giving its go-ahead.
Shed builders certainly would not welcomemore government oversight, in part becausetheir business is already heavily regulated.Nearly every aspect of a shed is determined bythe city government.
It starts with the city saying the structuresmust be strong enough to support 300 poundsper square foot—twice as much as demanded byany other city. That rule, which has been on thebooks since at least the 1960s, ensures struc-tures are strong enough to absorb the shock of abrick falling 20 stories, but it also means a col-umn is required every eight feet to support the
load. That helps explain why New York shedsgobble up so much sidewalk space.
Until 2013, sheds came in a variety of colors,including blue, silver and beige, which con-tractors used to identify their projects. ThenMayor Michael Bloomberg decided to put anend to that. “What we are looking for is a colorthat is, you know, what maybe psychologiststhink are soothing colors,” then-BuildingsCommissioner Robert LeMandri told the City
Council. “And so we chose green.”The edict was big news for Michael Schnurr,
president of National Paint Industries, theleading paint provider to the city’s biggestbuilders. His factory in North Brunswick, N.J.,got busy producing the exact type of paint cho-sen by the city, a blend that he calls HunterGreen 1390. Sales of the color immediatelyquadrupled, to more than 80,000 gallons peryear at $25 a can, and today it’s almost impos-sible to walk the streets without seeingSchnurr’s green paint. “Not bad for a kid whosedad started mixing paint in the back of his shopin Brooklyn in 1959,” he marveled.
The laundry list of rules and regulations leavealmost no room for personal touches in shed con-struction, though builders take pride in placingthe plywood panels close enough together thatthey look like a wall. “We always make it niceand smooth and seamless,” said SpringScaffolding’s Laffey. He paused to look at a photoin his office that showed the ParamountBuilding’s marquee practically swallowed up byhis firm’s shed. Whatever Times Square pedestri-ans negotiating their way around the shed mayhave thought, the wood panels were certainlysmooth. “It was a quality job,” Laffey said.
While there is huge demand for sheds, prof-its in the business have been constrained foryears by steadily rising labor costs. The averageNew York construction laborer’s pay rose by athird from 2004 to 2014, according to the U.S.Department of Labor, while the price of steelrose by more than 50% and lumber prices near-ly tripled before retreating in the past year.Amid rising costs, developers and contractorshave hired more nonunion shed-building
16 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
MICHAEL SCHNURR,president of National Paint
Industries, saw sales
quadruple after the city
mandated sheds be
painted hunter green.
WENDY WHITESELL’s
photos were selected to
be displayed outside
Barclays Center.
CONSTRUCTION | SCAFFOLDS EVERYWHERE
20160125-NEWS--0016-NAT-CCI-CN_-- 1/22/2016 3:48 PM Page 1
firms. Nonunion shed builders tend to getpaid about $20 an hour without benefits,compared to nearly $70 an hour, whichincludes the costs of benefits, for unionmembers. Even with lower labor costs,nonunion shed builders claim their profitmargins are only around 4%. Given thatone shed is almost exactly like another, the lowbidder usually wins. And there are hundreds offirms competing for work.
Shed building isn’t as dangerous as otherkinds of construction work because much of itis done fairly close to the ground. BuildingsDepartment data shows that 11 of the 199 con-struction accidents reported in the first half oflast year involved scaffolds and sheds, with nofatalities.
W ENDY WHITESELL is trying to make thecity’s sheds look better. Her photog-raphy is displayed outside Barclays
Center after it was selected by Art Bridge, anonprofit that decorates sheds with works byemerging artists. The exposure even helped hersell a few pictures. “It’s like being displayed ina gallery, only better,” Whitesell said.
Art Bridge Executive Director Stephen Piersonwould love to get more up-and-comers’ workdisplayed on sheds. “It’s a good way for a build-ing to brand itself,” he said. Yet the going is slow.Perhaps 20 buildings have allowed art to be dis-played on their sheds. The chief culprit is cost.
“People don’t want to pay for sheds, nevermind decorating them,” said Joe Covello, vicepresident at United Hoisting & Scaffolding, anda member of Art Bridge’s advisory council.
Indeed, ideas to make sheds look betteralmost invariably go nowhere because devel-opers figure that no one ever paid more to rentan office or buy an apartment because thebuilding once had a nice-looking shed. Formost real estate executives, the expense ofinstalling an aesthetically pleasing shed just isnot worth it. As Jonathan Drescher, senior vicepresident for project development at the DurstOrganization, delicately put it, “We try to doeverything in the best way we reasonably can.”
It doesn’t help that the Urban Umbrellaexperiment was a bust. Great as it looked—Mayor Bloomberg called it the shed for the 21stcentury—contractors said it didn’t fit well intothe city’s busy sidewalks, couldn’t supportscaffolding and cost twice as much as a con-ventional shed. Urban Umbrellas have beeninstalled in downtown Toronto, and Cortes saidhe is working on improvements. “For the pub-lic, it’s a forefront issue,” he said. “To develop-ers, it’s a line item.”
Another reason sheds don’t change is thatbuilders have assembled massive collections ofparts over the decades and aren’t interested instarting anew. At United Hoisting & Scaffolding’sheadquarters in Long Island City, stacks of beams,pipes and planks for sheds and scaffolds fill an80,000-square-foot yard. “We’ve got 10 timesmore stuff in use out in the field,” Covello said.
And developers may not be inclined to spendon nicer sheds because of the growing cost of set-tling lawsuits brought under New York stateLabor Law 240/241, better known as the scaffoldlaw. The statute holds building owners and con-tractors 100% liable for any gravity-related acci-dent in which they are at least partially at fault.Critics say the law has caused construction-insurance and legal costs to soar by $3 billionannually across the state. Efforts to repeal it were
thwarted by former Assembly Speaker SheldonSilver, who was of counsel to a personal-injurylaw firm that reaped fees from such lawsuits.Now that the convicted Silver is out of the pic-ture, the door is open to change, but trial lawyersremain one of Albany’s most powerful lobbies.
The building community and city tookanother crack at shed-beautification byannouncing four winners of another contestlast month. Unfortunately, shed builders aren’thappy with the latest crop, although Covellosaid all were pleasing to the eye and meet code.“Investing in a system that satisfies minimumrequirements is not a good investment for meunless a customer of ours is willing to overpay,which is rare. But it does happen,” he said.Another contractor said only one design looked“slightly realistic” and worried that all thecontest winners would collapse if hit by a car orbus because their spans are so long. “I doubtthat any of the designers or engineers wereasked to consider such a real-life situation,”the shed builder said. “This real-life situationhappens all the time.”
So it looks like New Yorkers will be stuck withthe old sheds for a while. If that’s the case, it maybe best to learn how to appreciate them. That’s noeasy task, but Benjamin Marcus, an architect and a
former construction-site manager atTiffany’s flagship store on Fifth Avenue, haslearned to see the brighter side.
“Sheds aren’t meant to be beautiful, butsometimes they just are,” he explained,walking along West 37th Street one rainyafternoon.
He came upon a shed on the south side of thestreet, between Seventh and Eighth avenues,and at first he didn’t like what he saw. Severallights weren’t functioning and a graffiti-writerhad spray-painted some of the columns. “Prettydisappointing,” he said, after a female pedestri-an hissed “Excuse me!” upon bumping intohim.
Then the shed’s artistic qualities began tocome out of the woodwork. Look, Marcus said,at how the shed comes within an inch of touch-ing the building without actually coming intocontact, because that would leave a mark.Down below, the uneven sidewalk slopedtoward the street, so the builders had stackedmudsills to even things out. “That is creating aperfectly level condition using really simplematerials,” he said. The roof was perhaps mostimpressive: The builders had lined planksabove the corrugated steel ceiling to create aspace that was safe to walk on. “They built arudimentary floor without nailing thingstogether, and they’re relying on tension tomake it work. And the way they’ve arrangedthe wood has a lovely pattern to it,” Marcussaid, snapping a picture for his Facebook page.
“The sidewalk shed, to me, is the found artof New York City.” �
JOE COVELLO, vice president of United
Hoisting & Scaffolding, said building
owners are unwilling to pay extra to
erect a prettier scaffold.
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 17
“SHEDS AREN’T MEANTTO BE BEAUTIFUL, BUT SOME-
TIMES THEY JUST ARE. THE SIDE-WALK SHED, TO ME, IS THE
FOUND ART OF NEW YORK CITY.”
20160125-NEWS--0017-NAT-CCI-CN_-- 1/22/2016 3:40 PM Page 1
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The Last Word LLC
Carol Dunitz, Ph.D.
POMP YOURCIRCUMSTANCE
Speaking, Writing,Consulting & Production
lastword.com646.434.6738 734.237.6614
PUBLIC AND LEGAL NOTICES
PUBLIC AND LEGAL NOTICES
18 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
Notice of formation of We Do Strong, LLC.
Arts of Org filed with Secy. Of State of NY
(SSNY) on 10/7/2015. Office location: NY
County. SSNY designated agent upon
whom process may be served and shall
mail copy of process against LLC to
principle business address: 222
Riverside Dr. #8A NY, NY 10025. Purpose:
Any lawful act.
Notice of Formation of FIZZLE TOV LLC.
Arts of Org filed with Secy of State of NY
(SSNY) on 07/31/2015. Office location: NY
County. SSNY designated agent upon
whom process may be served and shall
mail copy of process against LLC to
principal business address: 308 Lenox
Avenue, Suite B, New York, NY 10027.
Purpose: any lawful act.
Notice of Formation of MALCOLM 308
LLC . Arts of Org filed with Secy of
State of NY (SSNY) on 09/28/2015.
Office location : NY County. SSNY des-
ignated agent upon whom process may be
served and shall mail copy of process
against LLC to principal business
address: 308 Lenox Avenue, New
York, NY 10027. Purpose:any lawful act.
Notice of Formation of Lili Chemla LLC.
Arts. of Org. filed with NY Dept. of
State on 12/15/15. Office location: NY
County. Sec. of State designated agent
of LLC upon whom process against it
may be served and shall mail process
to: c/o Windels Marx Lane &
Mittendorf, LLP, 156 W. 56th St., NY, NY
10019, Attn: Jeanine Margiano, Esq.
Purpose: all lawful purposes.
Notice of Qualification of Magma Finco 13,
LLC. Authority filed with NY Dept. of State
on 11/2/15. Office location: NY County.
Princ. bus. addr.: 345 Park Ave., NY, NY
10154. LLC formed in DE on 10/20/15.
NY Sec. of State designated agent of LLC
upon whom process against it may be
served and shall mail process to: CT
Corporation System, 111 8th Ave., NY, NY
10011. DE addr. of LLC: 1209 Orange
St., Wilmington, DE 19801. Cert. of
Form. filed with DE Sec. of State, 401
Federal St., Dover, DE 19901. Purpose:
all lawful purposes.
Notice of Qualification of Calamos Wealth
Management LLC. Authority filed with
Secy. of State of NY (SSNY) on
12/3/15. Office location: NY County. LLC
formed in DE on 2/26/27. SSNY desig-
nated agent upon whom process may
be served and shall mail copy of process
against LLC to: CT Corp. System, 111
Eighth Ave., New York, NY 10011.
Principal business address: 2020
Calamos Ct., Naperville, IL 60563.
Certificate of LLC filed with Secy. of State of
DE located at: 401 Federal St., Ste. 4,
Dover, DE 19901. Purpose: any lawful act.
Notice of Formation of Magnetic Midnight
LLC. Arts. of Org. filed with NY Dept. of
State on 12/3/15. Office location: NY
County. Sec. of State designated agent of
LLC upon whom process against it may be
served and shall mail process to: Becker,
Glynn, Muffly, Chassin & Hosinski LLP, c/o
Karin P.E. Gustafson, 299 Park Ave., NY,
NY 10171. Purpose: any lawful activity.
Name of LLC: davi3 llc. Arts. of Org. filed
with NY Dept. of State: 12/24/15. Office
loc.: NY Co. Sec. of State designated agent
of LLC upon whom process against it may
be served and shall mail process to:
Business Filings Inc., 187 Wolf Rd., Ste.
101, Albany, NY 12205, regd. agt. upon
whom process may be served. Purpose:
any lawful act.
Notice of Qualification of Midfield US LLC.
Authority filed with NY Dept. of State on
12/28/15. Office location: NY County.
Princ. bus. addr.: 1790 Broadway, 8th Fl.,
NY, NY 10019. LLC formed in DE on
11/21/14. NY Sec. of State designated
agent of LLC upon whom process against
it may be served and shall mail process
to: c/o CT Corporation System, 111 8th
Ave., NY, NY 10011, regd. agent upon
whom process may be served. DE addr. of
LLC: c/o The Corporation Trust Co., 1209
Orange St., Wilmington, DE 19801. Cert.
of Form. filed with DE Sec. of State, 401
Federal St., Dover, DE 19901. Purpose: all
lawful purposes.
Notice of Qualification of D. E. Shaw Alkali
Portfolios III, L.L.C. Authority filed with NY
Dept. of State on 5/12/15. Office loca-
tion: NY County. LLC formed in DE on
3/3/15. NY Sec. of State designated
agent of LLC upon whom process against
it may be served and shall mail process to
the principal business addr.: D. E. Shaw &
Co., L.P., 1166 Ave. of the Americas, 9th
Fl., NY, NY 10036, Attn: John Liftin,
General Counsel, regd. agent upon whom
process may be served. DE addr. of LLC:
The Corporation Trust Co., 1209 Orange St.,
Wilmington, DE 19801. Cert. of Form. filed
with DE Sec. of State, 401 Federal St., Dover,
DE 19901. Purpose: all lawful purposes.
Notice of Qualification of D. E. Shaw Alkali
Portfolios Alternate III, L.L.C. Authority filed
with NY Dept. of State on 5/12/15. Office
location: NY County. LLC formed in DE on
3/3/15. NY Sec. of State designated
agent of LLC upon whom process against
it may be served and shall mail process to
the principal business addr.: D. E. Shaw &
Co., L.P., 1166 Ave. of the Americas, 9th
Fl., NY, NY 10036, Attn: John Liftin,
General Counsel, regd. agent upon whom
process may be served. DE addr. of LLC:
The Corporation Trust Co., 1209 Orange St.,
Wilmington, DE 19801. Cert. of Form. filed
with DE Sec. of State, 401 Federal St., Dover,
DE 19901. Purpose: all lawful purposes.
Notice of Qualification of D. E. Shaw
Orienteer X Fund, L.L.C. Authority filed with
NY Dept. of State on 8/3/15. Office loca-
tion: NY County. LLC formed in DE on
6/9/15. NY Sec. of State designated
agent of LLC upon whom process against
it may be served and shall mail process to
the principal business addr.: D. E. Shaw &
Co., L.P., 1166 Ave. of the Americas, 9th
Fl., NY, NY 10036, Attn: John Liftin,
General Counsel, regd. agent upon whom
process may be served. DE addr. of LLC:
The Corporation Trust Co., 1209 Orange St.,
Wilmington, DE 19801. Cert. of Form. filed
with DE Sec. of State, 401 Federal St., Dover,
DE 19901. Purpose: all lawful purposes.
Notice of Formation of Blue Sky
Technologies, LLC. Article Of
Organization filed with Secy. of State of
NY (SSNY) on 11/27/2015. Office
location: NY County. SSNY designated
agent upon whom process may be
served against LLC to: 2 Daniel Dr.,
Hillsborough, NJ 08844. Principal
Business Address: 170 W 23RD St. #3N,
NY, NY 10011 Purpose: Any lawful act.
NOTICE OF FORMATION OF REBY ADVISORS
LLC. Application for Authority filed with
the Secretary of State of New York (SSNY)
on 09/25/2015. Office location: NEW
YORK County. LLC formed in CT on
05/06/2011. SSNY has been desig-
nated as an agent upon whom process
against it may be served. The Post
Office address to which the SSNY shall
mail a copy of any process against the
LLC served upon him/her is: 44 Old
Ridgebury Road, Danbury, CT 06810. The
principal business address of the LLC
is: 44 Old Ridgebury Road, Danbury, CT
06810 CT address of LLC is: 44 Old
Ridgebury Road, Danbury, CT 06810
Certificate of LLC filed with Secretary
of State of CT located at: P.O. Box
150470, Hartford, CT 06115 Purpose:
any lawful act or activity.
Notice of Formation of COLONIAL CON-
SULTANTS, LLC Arts. of Org. filed with
Secy. of State of NY (SSNY) on
01/05/16. Office location: NY County.
SSNY designated as agent of LLC upon
whom process against it may be served.
SSNY shall mail process to Stephen J.
Sheinbaum, 460 Park Ave. South, 10th Fl.,
NY, NY 10016. Purpose: Any lawful activity.
Notice of Qualification of BORDEN
INDUSTRIAL LLC Appl. for Auth. filed
with Secy. of State of NY (SSNY) on
01/05/16. Office location: NY County. LLC
formed in Delaware (DE) on 09/29/15.
Princ. office of LLC: 450 Park Ave., 4th
Fl., NY, NY 10022. SSNY designated as
agent of LLC upon whom process
against it may be served. SSNY shall mail
process to c/o Corporation Service Co.
(CSC), 80 State St., Albany, NY 12207-
2543. DE addr. of LLC: c/o CSC, 2711
Centerville Rd., Ste. 400, Wilmington,
DE 19808. Cert. of Form. filed with
Secy. of State, 401 Federal St. - Ste. 4, Dover,
DE 19901. Purpose: Any lawful activity.
Notice of Formation of Moxie
Communications Group of NY LLC.
Arts. of Org. filed with NY Dept. of
State on 1/4/16. Office location: NY
County. Sec. of State designated agent
of LLC upon whom process against it
may be served and shall mail process
to: Taryn Langer, 2 S. Beechcroft Rd.,
Short Hills, NJ 07078, principal business
address. Purpose: any lawful activity.
Name of Foreign LLC: Remy/Newman
Realty Services, LLC. Authority filed
with NY Dept. of State: 12/23/15.
Office location: NY County. LLC formed
in CT: 3/8/05. NY Sec. of State desig-
nated agent of LLC upon whom
process against it may be served and
shall mail process to: c/o Executive
Management Offices, 545 Main St.,
NY, NY 10044. CT addr. of LLC 138
Goodhill Rd., Weston, CT 06883. Cert.
of Form. filed with CT Sec. of State, 30
Trinity St., Hartford, CT 06115.
Purpose: all lawful purposes.
Notice of Qualification of Magnet 360,
LLC. Authority filed with NY Dept. of
State on 1/7/16. Office location: NY
County. LLC registered in MN on
3/25/08. NY Sec. of State designated
agent of LLC upon whom process
against it may be served and shall mail
process to: c/o National Registered
Agents, Inc., 111 8th Ave., NY, NY
10011, regd. agent upon whom
process may be served. MN and princi-
pal business address: 5757 Wayzata
Blvd., Minneapolis, MN 55416. Cert. of
Reg. filed with MN Sec. of State, 60
Empire Dr., St. Paul, MN 55103.
Purpose: all lawful purposes.
Formation of 371 Harlem LLC filed with
the Secy. of State of New York (SSNY)
on 12/8/15. Office loc.: New York County.
SSNY designated as agent of LLC upon
whom process against it may be served.
The principal business loc. and address
SSNY shall mail process to is Jason
Hoppy, 195 Hudson St., Apt. 5B, New York,
NY 10013. Purpose: Any lawful activity.Notice of Qualification of Centerbridge
Special Credit Partners III, L.P. Authority
filed with NY Dept. of State on 1/8/16.
Office location: NY County. LP formed in
DE on 1/5/16. NY Sec. of State desig-
nated agent of LP upon whom process
against it may be served and shall mail
process to the principal business addr.:
375 Park Ave., 12th Fl., NY, NY 10152.
Regd. agent upon whom process may be
served: CT Corporation System, 111 8th
Ave., NY, NY 10011. DE addr. of LP: c/o
The Corporation Trust Co., 1209 Orange
St., Wilmington, DE 19801. Name/addr.
of genl. ptr. available from NY Sec. of
State. Cert. of LP filed with DE Sec. of
State, Duke & York St., Dover, DE
19901. Purpose: all lawful purposes.
Notice of Qualification of Centerbridge
Special Credit Partners General Partner
III, L.P. Authority filed with NY Dept. of
State on 1/11/16. Office location: NY
County. LP formed in DE on 1/5/16. NY
Sec. of State designated agent of LP
upon whom process against it may be
served and shall mail process to the prin-
cipal business addr.: 375 Park Ave., 12th Fl.,
NY, NY 10152. Regd. agent upon whom
process may be served: CT Corporation
System, 111 8th Ave., NY, NY 10011. DE
addr. of LP: c/o The Corporation Trust
Co., 1209 Orange St., Wilmington, DE
19801. Name/addr. of genl. ptr. avail-
able from NY Sec. of State. Cert. of LP filed
with DE Sec. of State, Duke & York St., Dover,
DE 19901. Purpose: all lawful purposes.
Notice of Qualification of Centerbridge
Special Credit Partners III-Flex, L.P.
Authority filed with NY Dept. of State on
1/8/16. Office location: NY County. LP
formed in DE on 1/5/16. NY Sec. of
State designated agent of LP upon
whom process against it may be served
and shall mail process to the principal
business addr.: 375 Park Ave., 12th Fl.,
NY, NY 10152. Regd. agent upon whom
process may be served: CT Corporation
System, 111 8th Ave., NY, NY 10011. DE
addr. of LP: c/o The Corporation Trust
Co., 1209 Orange St., Wilmington, DE
19801. Name/addr. of genl. ptr. available
from NY Sec. of State. Cert. of LP filed
with DE Sec. of State, Duke & York St., Dover,
DE 19901. Purpose: all lawful purposes.
P034-35CL_CN_20160125.qxp 1/22/2016 11:43 AM Page 18
TO PLACE A CLASSIFIED AD, CALL 1800 444 6007 OR VISIT CRAINSNEWYORK.COM
PUBLIC AND LEGAL NOTICES
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 19
39 EAST 72ND STREET LLC Articles of
Org. filed NY Sec. of State (SSNY)
12/2/13. Office in NY Co. SSNY desig.
agent of LLC upon whom process may be
served. SSNY shall mail copy of process
to c/o United States Corp. Agents, Inc.,
7014 13th Ave., Ste. 202, Brooklyn, NY
11228, which is also the registered
agent upon whom process against the LLC
may be served. Purpose: Any lawful purpose.
Principal business location: 1155 Avenue
of the Americas , 6th Fl, NY, NY 10036.
Notice of Qualification of MetaProp Advisors
LLC. Authority filed with NY Dept. of State on
11/25/15. Office location: NY County. Princ.
bus. addr.: 18 W. 21st St., NY, NY 10010. LLC
formed in DE on 5/26/15. NY Sec. of State
designated agent of LLC upon whom process
against it may be served and shall mail
process to: c/o CT Corporation System, 111
8th Ave., NY, NY 10011, regd. agent upon
whom process may be served. DE addr. of
LLC: 2711 Centerville Rd., Ste. 400,
Wilmington, DE 19808. Cert. of Form. filed
with DE Sec. of State, P.O. Box 898, Dover,
DE 19903. Purpose: all lawful purposes.
Notice of Qualification of MPNYC GP I LLC.
Authority filed with NY Dept. of State on
11/25/15. Office location: NY County.
Princ. bus. addr.: 18 W. 21st St., NY, NY
10010. LLC formed in DE on 11/4/15. NY
Sec. of State designated agent of LLC
upon whom process against it may be
served and shall mail process to: c/o CT
Corporation System, 111 8th Ave., NY, NY
10011, regd. agent upon whom process
may be served. DE addr. of LLC: 1209
Orange St., Wilmington, DE 19801. Cert.
of Form. filed with DE Sec. of State, P.O.
Box 898, Dover, DE 19903. Purpose: all
lawful purposes.
Notice of Qualification of Panorama Music
Festival, LLC. Authority filed with NY Dept.
of State on 11/25/15. Office location: NY
County. Princ. bus. addr.: c/o AEG Live,
145 W. 45th St., 9th Fl., NY, NY 10036. LLC
formed in DE on 11/20/15. NY Sec. of
State designated agent of LLC upon whom
process against it may be served and
shall mail process to: c/o CT Corporation
System, 111 8th Ave., NY, NY 10011, regd.
agent upon whom process may be served.
DE addr. of LLC: c/o The Corporation
Trust Co., 1209 Orange St., Wilmington,
DE 19801. Cert. of Form. filed with DE
Sec. of State, 401 Federal St., Dover,
DE 19901. Purpose: all lawful purposes.
Notice of Formation of Pearson Place
Holdings, LLC. Arts. of Org. filed with NY Dept.
of State on 12/3/15. Office location: NY
County. Sec. of State designated agent of
LLC upon whom process against it may be
served and shall mail process to: c/o
Windels Marx Lane & Mittendorf, LLP, 156
W. 56th St., NY, NY 10019, Attn: Charles J.
Hamilton. Purpose: all lawful purposes.
Notice of Formation of Favelukes
Consulting LLC. Arts of Org filed with Secy.
of State of NY (SSNY) on 10/5/2015.
Office location: NY County. SSNY desig-
nated agent upon whom process may
be served and shall mail copy of
process against LLC to principal busi-
ness address: 302 W. 86th St. #3C NY,
NY 10024. Purpose: any lawful act.
Notice of formation of Kismet Eleven,LLC. Arts of Org filed with Secy. ofState of NY (SSNY) on 8/6/15. OfficeLocation: NY County. SSNY desig-nated agent upon whom process may beserved and shall mail copy of processagainst LLC to principal businessaddress: 53 N. Moore Street, NY, NY10013. Purpose: any lawful act.
NOTICE OF FORMATION of FINI PRO-
DUCTIONS, LLC. Arts. of Org. filed w/Secy
of State of NY (SSNY) on 11/20/15.
Office location: NY County. SSNY desig-
nated as agent for service of process.
SSNY shall mail process to 678 St.
Nicholas Avenue #54 NY, NY 10030.
Purpose: Any lawful activity.
Notice of Qualification of 825 EAST 141ST
STREET INVESTORS III, LLC Appl. for Auth.
filed with Secy. of State of NY (SSNY)
on 12/17/15. Office location: NY
County. LLC formed in Delaware (DE) on
10/29/15. Princ. office of LLC: 430 Park
Ave., 12th Fl., NY, NY 10022. SSNY
designated as agent of LLC upon whom
process against it may be served. SSNY
shall mail process to c/o Corporation
Service Co. (CSC), 80 State St., Albany, NY
12207-2543, regd. agent upon whom
and at which process may be served. DE
addr. of LLC: c/o CSC, 2711 Centerville
Rd., Ste. 400, Wilmington, DE 19808. Cert.
of Form. filed with DE Secy. of State,
Div. of Corps., John B. Townsend Bldg.,
401 Federal St., Ste. 4, Dover, DE
19901. Purpose: Any lawful activity.
Notice of Qualification of 1825 PARKAVENUE PROPERTY INVESTORS III,LLC Appl. for Auth. filed with Secy.of State of NY (SSNY) on 12/17/15.Office location: NY County. LLCformed in Delaware (DE) on 10/06/15.Princ. office of LLC: 430 Park Ave.,12th Fl., NY, NY 10022. SSNY desig-nated as agent of LLC upon whomprocess against it may be served.SSNY shall mail process to CorporationService Co. (CSC), 80 State St., Albany,NY 12207-2543, regd. agent uponwhom and at which process may beserved. DE addr. of LLC: c/o CSC,2711 Centerville Rd., Ste. 400,Wilmington, DE 19808. Cert. of Form.filed with DE Secy. of State, Div. ofCorps., John B. Townsend Bldg.,401 Federal St., Ste. 4, Dover, DE19901. Purpose: Any lawful activity.
Notice of Qualification of 1825 PARK
AVENUE INVESTORS III, LLC Appl. for
Auth. filed with Secy. of State of NY
(SSNY) on 12/17/15. Office location:
NY County. LLC formed in Delaware
(DE) on 10/06/15. Princ. office of LLC:
430 Park Ave., 12th Fl., NY, NY 10022.
SSNY designated as agent of LLC upon
whom process against it may be
served. SSNY shall mail process to
Corporation Service Co. (CSC), 80
State St., Albany, NY 12207-2543,
regd. agent upon whom and at which
process may be served. DE addr. of
LLC: c/o CSC, 2711 Centerville Rd.,
Ste. 400, Wilmington, DE 19808. Cert.
of Form. filed with DE Secy. of State,
Div. of Corps., John B. Townsend Bldg.,
401 Federal St., Ste. 4, Dover, DE
19901. Purpose: Any lawful activity.
Notice of Qualification of LFD Malone NY
LLC. Authority filed with NY Dept. of State
on 12/16/15. Office location: NY County.
LLC formed in DE on 12/11/15. NY Sec.
of State designated agent of LLC upon
whom process against it may be served
and shall mail process to: c/o Ladder
Capital, 345 Park Ave., 8th Fl., NY, NY
10154, principal business address. DE
address of LLC: 1209 Orange St.,
Wilmington, DE 19801. Cert. of Form.
filed with DE Sec. of State, 401 Federal
St., Dover, DE 19901. Purpose: all lawful
purposes.
Notice of Qualification of D. E. Shaw Alkali
Holdings Alternate III, L.L.C. Authority filed
with NY Dept. of State on 5/12/15. Office
location: NY County. LLC formed in DE on
3/2/15. NY Sec. of State designated
agent of LLC upon whom process against
it may be served and shall mail process to
the principal business addr.: D. E. Shaw &
Co., L.P., 1166 Ave. of the Americas, 9th
Fl., NY, NY 10036, Attn: John Liftin, General
Counsel, regd. agent upon whom process
may be served. DE addr. of LLC: The
Corporation Trust Co., 1209 Orange St.,
Wilmington, DE 19801. Cert. of Form. filed
with DE Sec. of State, 401 Federal St., Dover,
DE 19901. Purpose: all lawful purposes.
Notice of Formation of HERRMANN
ASSOCIATES LLC Cert. of Conversion
filed with Secy. of State of NY (SSNY)
on 01/04/16, converting HERRMANN
ASSOCIATES to HERRMANN ASSOCI-
ATES LLC. Office location: NY County.
Princ. office of LLC: 1105 Park Ave.,
NY, NY 10128. SSNY designated as
agent of LLC upon whom process
against it may be served. SSNY shall
mail process to the LLC at the addr. of
its princ. office. Purpose: Any lawful activity.
Notice of Formation of 505 GREENWICH
STREET 3GH, LLC Arts. of Org. filed with
Secy. of State of NY (SSNY) on 01/08/16.
Office location: NY County. Princ. office
of LLC: 505 Greenwich St., Unit #3GH,
NY, NY 10013. SSNY designated as
agent of LLC upon whom process
against it may be served. SSNY shall
mail process to the LLC at the addr. of its
princ. office. Purpose: Any lawful activity.
Notice of Qualification of GOKUL WORK-
SHOPS LLC Appl. for Auth. filed with Secy.
of State of NY (SSNY) on 01/07/16. Office
location: NY County. LLC formed in
Delaware (DE) on 01/05/16. SSNY des-
ignated as agent of LLC upon whom
process against it may be served. SSNY shall
mail process to c/o Corporation Service
Co., 80 State St., Albany, NY 12207-2543.
DE addr. of LLC: c/o PHS Corporate
Services, 1313 Market St., Ste. 5100,
Wilmington, DE 19801. Cert. of Form. filed
with DE Secy. of State, John G. Townsend
Bldg., 401 Federal St., Ste. 4, Dover, DE
19901. Purpose: Any lawful activity.
Notice is hereby given that a license,
number 1289580 for beer and wine
has been applied for by the undersigned
to sell beer and wine at retail in a
restaurant under the Alcoholic Beverage
Control Law at 1569 Lexington Avenue
New York, NY 10029 for on premises
consumption. THE ROAST NYC LLC
d/b/a Roast Homestyle Chicken
Notice of Qualification of BAMTech,
LLC Appl. for Auth. filed with Secy. of
State of NY (SSNY) on 01/07/16.
Office location: NY County. LLC formed in
Delaware (DE) on 10/19/15. Princ. office
of LLC: 75 Ninth Ave., NY, NY 10011.
SSNY designated as agent of LLC upon
whom process against it may be served.
SSNY shall mail process to c/o
Corporation Service Co., 80 State St.,
Albany, NY 12207-2543. DE addr. of LLC:
2711 Centerville Rd., Ste. 400,
Wilmington, DE 19808. Cert. of Form. filed
with Secy. of State, State of DE, 401
Federal St., Ste. 3, Dover, DE 19901.
Purpose: Any lawful activity.
NOTICE OF FORMATION OF Manhattan
Mental Health Counseling Services, PLLC.
Articles of Organization filed with the
Secretary of State of NY (SSNY) on
December 21, 2015. Office location:
NEW YORK County. SSNY has been
designated as agent upon whom process
against it may be served. The Post Office
address to which the SSNY shall mail a
copy of any process against the PLLC
served upon him/her is: 136 Madisoon
Ave, 6th Floor, NY NY 10016 The prin-
cipal business address of the PLLC is:
136 Madison Ave, 6th Floor, NY NY
10016 Purpose: any lawful act or activity
Notice of Formation of ZOIA PROPER-
TIES LLC Arts. of Org. filed with Secy. of
State of NY (SSNY) on 12/18/06. Office
location: NY County. Princ. office of LLC:
156 W. 56th St., 4th Fl., NY, NY 10019.
SSNY designated as agent of LLC upon
whom process against it may be served.
SSNY shall mail process to Adam Zoia,
1965 Broadway, PH3C, NY, NY 10023.
Purpose: Any lawful activity.
Contact Joanne Barbieri at 212-210-0189 for
classified advertising opportunities.
WANT TO GET YOUR COMPANY IN FRONT OF
250,000 INFLUENTIAL BUSINESS PROFESSIONALS?
Notice of Formation of QUANTUM DIAG-
NOSTICS LLC Arts. of Org. filed with Secy.
of State of NY (SSNY) on 01/15/16.
Office location: NY County. SSNY desig-
nated as agent of LLC upon whom
process against it may be served. SSNY
shall mail process to Corporation Service
Co., 80 State St., Albany, NY 12207-2543.
Purpose: Any lawful activity.
P034-35CL_CN_20160125.qxp 1/22/2016 11:48 AM Page 19
truTV: Marissa Ronca, 39,
was promoted to executive
vice president and head of
programming at the cable
network. She was
previously senior vice
president of development
and original programming.
Puja Vohra, 43, was
promoted to executive vice
president of marketing and
digital. She was previously
senior vice president of
marketing and digital.
Brooklyn
Nets: Tom
Bowden, 32,
was
promoted to
executive
director of
ticket sales and service of
the NBA team. He was
previously director of VIP
services.
ESI Design: Emily Conrad,
37, was promoted to
director of the immersive
and activity design group at
the design company. She
was previously senior tech
and media designer.
Lilker Associates Consulting
Engineers: Michael Leonick,
48, was promoted to vice
president at the
engineering consultant
firm. He was previously
head of the electrical
department.
Louis Licameli, 55, was
promoted to vice president.
He was previously director
of the Long Island office.
Univision Communications:
Tonia O’Connor, 46, was
promoted to chief
commercial officer and
president of content of
distribution at the
Spanish-language media
company. She was
previously president of
content distributions and
corporate business
development.
Quadrum
Global:
Anoop
Rustgi, 34,
joined the
real estate
developer
and investment firm to
oversee asset management
and acquisitions. He was
previously an associate at
Vanbarton Group.
PricewaterhouseCoopers:
Shawn Panson, 44, was
appointed U.S. private-
company services leader at
the professional services
firm. He was previously
leader of the risk assurance
cybersecurity, privacy and
IT risk practice.
Wells Fargo Insurance: Eric
Van Heyst, 59, joined the
insurance brokerage as
trade credit and political-
risk insurance manager. He
was formerly vice president
and senior credit officer at
QBE North America.
Anaplan: Jim Rich, 49, joined
the software company as
area vice president. He was
previously area vice
president at Salesforce.
OTC Markets Group: Bea
Ordonez, 43, joined the
financial markets operator
as chief financial officer.
She was previously chief
operations officer of
Convergex Group.
Partnership
With
Children:
Robin
Veenstra-
Vanderweele,
41, joined
the social-services
organization as chief
strategy officer. She was
previously director of child
and youth initiatives at the
Nashville Mayor’s Office.
Marina Schreiber, 50, joined
as chief financial and
administrative officer. She
was previously chief
operating officer at Domus
Kids.
Astoria Bank: David Cinelli,
29, joined the bank as vice
president in the retail
banking division and
manager of the Long Island
City branch. He was
previously vice president
and senior cluster manager
at HSBC Bank USA.
Brooklyn Sports and
Entertainment: Mike LaHaie,
33, joined the media
company as vice president
of premium partnerships.
He was previously manager
of suite sales for the New
York Yankees.
MGM
Racquet
Sports:
Michael
Moreno, 26,
was
promoted to
managing director at the
athletics company. He was
previously treasurer and
board member of the
Moreno Family Trust.
Lending.com: Corey Moreira,
44, joined the peer-to-
peer lending company as
chief technology officer.
He was previously chief
architect of the enterprise
growth group at American
Express.
Jenner &
Block: Susan
Kohlmann,
57, was
promoted
to office
managing
partner at the law firm.
She continues as chair of
the trademark, advertising
and unfair-competition
practice, as well as the
diversity and inclusion
committee.
TO PLACE A CLASSIFIED AD, CALL 1800 444 6007 OR VISIT CRAINSNEWYORK.COM
PUBLIC AND LEGAL NOTICES
Notice of Formation of KOBE 66 LLC
Arts. of Org. filed with Secy. of State of
NY (SSNY) on 01/07/16. Office location:
NY County. SSNY designated as agent of
LLC upon whom process against it may
be served. SSNY shall mail process to
Oren Tepper, 203 E. 72nd St., Apt. 8A, NY,
NY 10021. Purpose: Any lawful activity.
Notice of Formation of Mighty Industries
LLC. Arts. of Org. filed with Secy. of State
of NY (SSNY) on 12/10/15. Office loca-
tion: NY County. SSNY designated as
agent of LLC upon whom process against
it may be served. SSNY shall mail
process to: 15 W. 63rd St., Apt. 26A, NY,
NY 10023. Purpose: any lawful activity.
Notice of Formation of Atrium Managed
Services LLC. Arts. of Org. filed with Secy.
of State of NY (SSNY) on 11/27/15.
Office location: NY County. SSNY desig-
nated as agent of LLC upon whom
process against it may be served. SSNY
shall mail process to: 71 5th Avenue, 3rd Fl.,
NY, NY 10003. Purpose: any lawful activity.
Notice of the formation of Cara
Dussich, LLC. Arts of Org filed with
Secy. of State of NY (SSNY) on
10/1/2015. Office location: NY
County. SSNY designated agent upon
whom process may be served against
LLC to: 7014 13th Ave #202 Brooklyn,
NY 11228. Principal business address:
210 E 73 St. #4A NY, NY 10021.
BENKSHAW ENTERPRISES LLC Articles
of Org. filed NY Sec. of State (SSNY)
11/16/2015. Office in NY Co. SSNY desig.
agent of LLC upon whom process may
be served. SSNY shall mail copy of
process to 343 E. 74th St., #17CD, NY, NY
10021. Purpose: Any lawful purpose.
Notice of Formation of Tick TockSeries, LLC. Arts of Org filed withSSNY on 9/3/2015. Office location:NY County. Princ. bus. addr.: 838Greenwich St. PHB, NY, NY 10014.SSNY designated agent upon whomprocess may be served against LLCto: 440 W 47 St. #3i NY, NY 10036.Purpose: any lawful act.
Notice of formation of SEGELOV PHYSI-
CAL THERAPY, PLLC. Art. of Org filed w/
secy of state of NY (SSNY) on
12/07/15. Office location: NY County.
SSNY designated as agent for services
of process. SSNY shall mail process to
80 State Street, Albany NY, 12207.
Purpose: Any lawful activity.
Notice of Qual. of Coatue CT VII LLC,
Auth. filed Sec’y of State (SSNY)
3/13/15. Off. loc: NY Co. LLC org. in DE
3/11/15. SSNY desig. as agent of LLC
upon whom proc. against it may be served.
SSNY shall mail copy of proc. to Att:
Philippe Laffont, 9 W. 57th St., NY, NY
10019. DE off. addr.: CSC, 2711
Centerville Rd., Wilmington, DE 19808. Cert.
of Form. on file: SSDE, Townsend Bldg.,
Dover, DE 19901. Purp: any lawful activities.
Notice of Qual. of Coatue CT VIII LLC,
Auth. filed Sec’y of State (SSNY) 4/8/15.
Off. loc: NY Co. LLC org. in DE 4/6/15.
SSNY desig. as agent of LLC upon whom
proc. against it may be served. SSNY
shall mail copy of proc. to Att: Philippe
Laffont, 9 W. 57th St., NY, NY 10019. DE
off. addr.: CSC, 2711 Centerville Rd.,
Wilmington, DE 19808. Cert. of Form. on
file: SSDE, Townsend Bldg., Dover, DE
19901. Purp: any lawful activities.
Notice of Qual. of Crow Hill Fund, LP,
Auth. filed Sec’y of State (SSNY) 4/27/15.
Off. loc: NY Co. LP org. in DE 4/24/15. SSNY
desig. as agent of LP upon whom proc.
against it may be served. SSNY shall mail
copy of proc. to 256 W. 116th St., 2nd Fl.,
NY, NY 10026. DE off. addr.: CSC, 2711
Centerville Rd., Wilmington, DE 19808. Cert.
of LP on file: SSDE, Townsend Bldg., Dover,
DE 19901. Name/addr. of each gen. ptr.
avail. at SSNY. Purp: any lawful activities.
Notice of Qual. of Crow Hill Fund GP, LLC,
Auth. filed Sec’y of State (SSNY) 4/27/15.
Off. loc: NY Co. LLC org. in DE 4/24/15.
SSNY desig. as agent of LLC upon whom
proc. against it may be served. SSNY shall
mail copy of proc. to Att: Alex Friedman,
256 W. 116th St., NY, NY 10026. DE
off. addr.: CSC, 2711 Centerville Rd.,
Wilmington, DE 19808. Cert. of Form.
on file: SSDE, Townsend Bldg., Dover,
DE 19901. Purp: any lawful activities.
Notice of Formation of Pez LocoPartners LLC, Art. of Org. filed withSec’y of State (SSNY) on 5/29/15.Office location: NY County. SSNYdesignated as agent of LLC upon whomprocess against it may be served.SSNY shall mail copy of process toSeward & Kissel, Att: Hume Steyer,One Battery Park Plaza, NY, NY10004. Purpose: any lawful activities.
Notice of Formation of Buckner
Company of Colorado, LLC. Arts of Org
filed with Secy. of State of NY (SSNY) on
12/11/2015. Office location: NY County.
SSNY designated agent upon whom
process may be served and shall mail
copy of process against LLC to: 6550 S
Millrock Drive STE300, Salt Lake City, UT
84121. Purpose: any lawful act.
Notice of Formation of GOV BALL 2016,
LLC. Arts. of Org. filed with NY Dept. of
State on 11/17/15. Office location: NY
County. Sec. of State designated agent
of LLC upon whom process against it
may be served and shall mail process to:
Founders Entertainment, 86 E. 10th St.,
Suite 1, NY, NY 10003, principal business
address. Purpose: any lawful activity.
MH LAM, LLC. Arts. of Organization filed
with Secy. of State of NY (SSNY) on
12/24/15. Off. loc.: New York Co. SSNY
des. as agent of LLC upon whom
process may be served. SSNY shall mail
process to the LLC, Attn: Beth Thornton,
481 Washington St., #1N, New York, NY
10013. Purpose: General.
Notice of Formation of S.H.E. 959 ONE
LLC. Arts. of Org. filed with Secy. of State
of NY (SSNY) on 1/13/16. Office location:
NY County. SSNY designated as agent of
LLC upon whom process against it may
be served. SSNY shall mail process to:
Ivan Moskowitz, Esq., Schiff Hardin LLP,
666 Fifth Avenue, Ste. 1700, NY, NY
10103. Purpose: any lawful activity.
EXECUTIVE MOVES
20 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
ELLEN ARCHER, 53, joined the
company as president of trade
publishing. She was formerly a
founding partner at Path2 and
is currently managing director
at Golden Seeds.
HOUGHTON MIFFLINHARCOURT:
EXECUTIVE PROMOTIONS
The fastest way to get an announcement into Crain’sis to submit online. Fill out the form at CrainsNewYork
.com/execmoves. TheExecutive Moves column is also available online.
20160125-NEWS--0020-NAT-CCI-CN_-- 1/22/2016 3:33 PM Page 1
CAREN MAIO
AGE 31
BORN Yonkers, N.Y.
RESIDES Brooklyn
EDUCATION New York University,
B.A. in brand building
NOT SO FAST Maio was so eager
to start her own business that she
planned to drop out of college, but
her parents urged her to stay in
school and gain on-the-job experience.
She listened.
EXPANSION Nestio will double its
footprint to 7,000 square feet when
it moves to Chelsea Castle, on
West 22nd Street.
HIRING MODE The firm will need the
extra space. It will use an infusion of
capital to double its workforce to 60
employees during the next year.
BU
CK
EN
NIS
GOTHAM GIGS
HUNTING GUIDE: Caren Maio would like
Nestio to become the
rental clearinghouse
the city sorely needs.
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 21
Caren Maio knew she was destined for a
career in real estate when, as a student at
New York University, she repeatedly vol-
unteered to help friends move.
“I loved it,” she said. “I’ve been enamored by New
York real estate for a long time.”
At 31, Maio now works on a far grander
scale as the chief executive of Nestio, the
tech company she co-founded in 2011. In
December, it received $8 million in ven-
ture-capital funding, effectively doubling
the company’s number of employees.
Nestio is an online business-to-business
conduit for apartment listings. When land-
lords record vacancies or occupancies in their buildings
on one end of the portal, brokerages and apartment-
hunting websites like StreetEasy and Trulia instantly reg-
ister it on the other. To understand why this concept is so
novel, it is important to note just how vast, fractured and
unreliable the listings data landscape is in New York City.
Unlike selling a home or condominium, where both
the listing and sale must be registered in public databases,
no such central clearinghouse exists for most rental units.
(A small portion is listed by the Real Estate Board of New
York, which uses Nestio and other firms to export and
update its own database.) Instead, landlords often use
spreadsheets and emails that trickle to brokers and search
sites before reaching consumers, but this information can
be outdated and incorrect.
“We looked at this and asked, ‘Why can’t people get
accurate listing info when it comes to
rentals?’ ” Maio said.
She had always wanted to be an entrepre-
neur. At NYU, she participated in a program
to create her own major. After working in
business development after graduation, Maio
and two partners had an idea for a tool to help
renters catalog and share apartment listings.
In 2011, they were accepted to the Techstars
accelerator program in the garment district.
“We quit our jobs, and that’s how we began Nestio,”
she said.
They soon noticed their product would be only as good
as the data behind it, so Maio and one partner shifted the
focus to listings information. Maio hopes Nestio eventual-
ly becomes the rental clearinghouse the city lacks.
The firm is off to a good start. So far it is used here by
landlords such as Two Trees Management, and this year
will operate in Chicago, Washington, D.C., and Boston.
– JOE ANUTA
Making it easier to find an apartment in NYC
Why can’t you
get accurate
info when
it comes to
rentals?”
Caren Maio’s company tames city’s unruly apartment rental data and attracts an $8 million investment
“
20160125-NEWS--0021-NAT-CCI-CN_-- 1/22/2016 3:34 PM Page 1
Frick Collection thanks directors
On Jan. 11, the Frick Collection hosted its annual Directors Circle Dinner. It is a small affair—only
40 guests attended—when the museum thanks its directors for their support. The display of grati-
tude was very special: The event is held in a gallery that was once the Frick family’s dining room. It
is the only time the museum holds an event in that space.
Artists awarded mucho De Niro
SNAPST
OP
: C
HR
IST
INE
BU
TL
ER
,B
OT
TO
M L
EF
T:
ST
AR
TR
AK
S/
DA
VE
AL
LO
CC
A,
BO
TT
OM
RIG
HT
: R
OU
ND
AB
OU
TT
HE
AT
ER
CO
MP
AN
Y
22 | CRAIN’S NEW YORK BUSINESS | JANUARY 25, 2016
SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS
GETYOUR GALA IN SNAPS. EMAILTHERESA AGOVINO, TAGOVINO@CRAINSNEWYORK.COM
Elaine Textor and her husband, Donald, a portfolio man-
ager at Dorset Energy Fund, with Frick Board of Trustees
Chairman Margot C. Bogert, at the museum dinner.
‘Noises Off’ parties on
Artists Stanley Whitney and Joyce Pensato, actor Robert De Niro and artists
Laura Owens and Robert Bordo at a Jan. 11 ceremony, where De Niro present-
ed Owens an award for her painting. The other artists are previous recipients of
the $25,000 prize that is administered by the Tribeca Film Institute and named
for the actor’s father, Robert De Niro Sr., an abstract expressionist painter who
died in 1993.
Derek McLane, set designer for Noises Off, along with one of the show’s stars,
Andrea Martin, and its director, Jeremy Herrin, at the play’s opening-night
party on Jan. 14.
Actor Jim Dale and
Noises Off male lead
David Furr at the
show’s opening-
night party at B.B.
King Blues Club
& Grill.
Frick Director Ian Wardropper, curator
Aimee Ng, Frick trustee and Blackstone
Group Chief Executive Stephen A.
Schwarzman and his wife, Christine, at
the museum dinner.
20160125-NEWS--0022-NAT-CCI-CN_-- 1/22/2016 3:35 PM Page 1
PHOTO FINISH
One way tobeat the boot
A for-hire car with Connecticut plates
left a memento the morning it drove
away from a parking spot on Greene
Avenue in Bedford-Stuyvesant,
Brooklyn: a wheel with a yellow steel parking-
infraction boot still attached.
The city’s Department of Finance brought
back the boot in 2012, after its first iteration—in
1986—was phased out in the mid-1990s. Now,
drivers with $350 or more in overdue parking
fees, speeding tickets or red-light violations get
the clamp. They then have 48 hours to pay by
phone before the car is towed. (The NYPD has its
own boots for cars it is waiting to tow.)
The practice has brought down the number of
cars towed to 41,114 in 2013 from 108,564 in 2010.
Upgraded boots from New Jersey-based Paylock
can be unlocked car side after drivers pay the
outstanding fines and fees for the boot, plus
Paylock’s 2.49% convenience fee.
Owners try to beat the boot the hard way.
Videos have popped up on YouTube giving step-
by-step instructions, including deflating tires or
dismantling the lock. But that just adds a $250 fee
to the driver’s tab, and it doesn’t make tickets
disappear.
PE
TE
R D
’AM
AO
JANUARY 25, 2016 | CRAIN’S NEW YORK BUSINESS | 23
— PETER D’AMATO
20160125-NEWS--0023-NAT-CCI-CN_-- 1/22/2016 7:06 PM Page 1
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