Crain's New York Business, November 13, 2023

CRAINSNEWYORK.COM I NOVEMBER 13, 2023

Health Care Report

More coverage starting on page 5

WeWork at 85 Broad St | BUCK ENNIS

Landlords to feel pain of WeWork Chapter 11 Bankruptcy filing to add more vacancy at office properties

By Aaron Elstein

to address New Yorkers’ mental health needs.

Last month, a 30-year-old woman was left in critical condition after being shoved into a train by an individual who police said was “known to us in the subway system.” Adams never publicly addressed the attack.

According to the NYPD, the number of incidents where individuals are shoved into the subway tracks has declined slightly over recent years. It happened to 30 people in 2021 compared to 29 in 2022. As of Oct. 15 of this year, 15 individuals have been pushed,

Coworking giant WeWork, which filed for bankruptcy protection on Nov. 6, plans to tear up leases at 40 New York City buildings where it has locations, a reduction of around 50%.

The retreat would reduce WeWork’s overall square footage in the city by 25% and introduce another 1.57 million square feet of available space to the office market, a dismal prospect for landlords struggling to fill buildings. For perspective, that’s about the size of One Vanderbilt Avenue, the new office tower next to Grand Central Terminal.

If approved by a bankruptcy judge, WeWork’s retreat could force several of the city’s largest landlords to swallow millions in losses while scrambling to find new tenants.

“This is even worse than anticipated,” said Eric Haber, a bankruptcy lawyer and counsel at Wharton Property Advisors.

“Pretty much every landlord in New York City is involved.”

Several New York landlords

See ILLNESS on Page 16

See WEWORK on Page 22

Mayor Eric Adams discussed the city’s mental health plan in March. Above is the southbound platform at the 53rd Street E/F subway station, where a woman was shoved into a train last month. | BUCK ENNIS, NYCMAYORSOFFICE

SLOW PROGRESS One year after Mayor Adams revealed his roadmap to tackle serious mental illness, some say the city is ‘walking away’ from its responsibility to address the crisis. | By Jacqueline Neber A year after Mayor Eric Adams unveiled his strategy to address serious mental illness, signs of meaningful progress remain scarce.

The plan, which emphasized police involvement and involuntary hospitalization, initially garnered backlash from advocacy organizations. Now, experts say that not much has changed in the city’s mental health landscape. The city says the issue is not an overnight fix, but sparse data makes it difficult to gauge if the plan is working.

BY THE NUMBERS

0

Calls as of July to a hotline to link police to H+H for people who may be having mental health issues.

“Everyone in New York City has a particular need for something: shelter, food, medical services and the like,” said Beth Haroules, the director of disability justice litigation at the New York Civil Liberties Union.

“And I think rather than the city being as creative as it can be [in] leveraging the resources that are here, they’re just walking away from everything.”

Incidents where people are pushed onto subway tracks are highly visible reminders of the city’s need

VOL. 39, NO. 40 l COPYRIGHT 2023 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED

Three more restaurants have agreed to come to Grand Central Terminal after two others recently opened. PAGE 3

P001_CN_20231113.indd 1

CITY ELECTIONS A City Council incumbent declares victory in Brooklyn while another one loses in the Bronx.

PAGE 2

11/10/23 5:36 PM

Offshore wind effort takes big hit in N.J., puts pressure on New York Incumbent Democrat Justin Brannan (left) won a high-profile clash in South Brooklyn; Incumbent Democrat Marjorie Velázquez (right) lost her City Council seat. | NYCCOUNCILMEDIAUNIT

Brannan wins while Velázquez is out in NYC council elections

By Nick Garber

An incumbent Democrat declared victory in a hard-fought Brooklyn race while another was unseated in the Bronx, according to unofficial results in New York City’s general election contests — a mixed outcome for a set of races seen as tests of the Republican Party’s possible resurgence in the city.

In the season’s marquee race, Democrat Justin Brannan held an insurmountable lead over Republican Ari Kagan in South Brooklyn’s District 47, covering parts of Bay Ridge and Coney Island. Brannan had 58% of votes to Kagan’s 41%, with 98% of votes counted.

The clash between two incumbents was set in motion by redistricting that mashed their constituencies together, as well as Kagan’s defection to the Republican Party.

“Tonight is a victory for the end of divide-and-conquer politics,” Brannan said in a victory speech.

But Republicans won in an upset in the Bronx, where incumbent Democrat Marjorie Velázquez trailed Kristy Marmorato, 47% to 52%, with 98% of scanners reporting.

The apparent win by Marmorato, an X-ray technician with close ties to the Bronx Republican Party, represents the GOP’s first victory in the borough in almost 20 years.

Velázquez took heat in her Northeast Bronx district for supporting a 348-unit residential development last year, although labor unions rewarded her by strongly supporting her re-election campaign.

In the new Asian-majority district in Southwest Brooklyn, Democrat Susan Zhuang won easily over Republican Ying Tan, with 59% to Tan’s 26% with 99% of the votes counted.

And in Northeast Queens, firebrand Republican incumbent Vickie Paladino was leading Democrat Tony Avella by 21 percentage points with 99% of votes counted.

Other incumbent council members thought to have competitive races easily defeated their challengers, including Republican Inna Vernikov in South Brooklyn and Democrats Linda Lee and Sandra Ung in Eastern Queens.

Additional contests around the city included a pair of statewide ballot initiatives affecting local

governments, as well as little-watched judicial races. All district attorneys outside Manhattan were also up for re-election, but only Queens Democrat Melinda Katz faced a challenge, which she survived easily.

The general election saw low turnout, with just 18% of the city’s 4.6 million active voters having cast ballots. (The 2021 general election, which included a race for mayor, saw 23% turnout.)

Uneasy electorate After years of Democratic dominance, the GOP has made startling gains in New York recently, especially in the outer boroughs and the suburbs. In 2022, Republicans won three state legislative seats in South Brooklyn, and the party’s gubernatorial nominee Lee Zeldin received strong support in parts of the city, especially in Asian and Orthodox Jewish enclaves.

The backdrop of this fall’s campaign is an uneasy electorate. A Siena poll last month found that more than 60% of city residents consider the migrant crisis a “very serious” problem, while 51% feel crime in the state has gotten worse over the last year. (Most major crime categories are down in the city compared to last year.)

Mayor Eric Adams’ approval was underwater, with 41% of those polled praising his performance and 50% disapproving.

The expected low turnout in the general election “means the candidates who do a better job of mobilizing their voters are in better shape,” said Evan Stavisky, a Democratic political consultant.

Over the summer, the City Council primary elections showed a modest desire for change as younger candidates in Harlem and East New York defeated established lawmakers. The general election played out in a different environment — especially due to the migrant crisis, which has grown in salience as more emergency shelters open near voters’ homes and the city’s heavy spending on the crisis is prompting potential budget cuts that could curtail a wide range of services.

“It has forced a lot of Democratic candidates to be on the defensive,” said Trip Yang, a Democratic strategist.

Danish company Ørsted, the world’s largest offshore wind developer, announced recently that it’s pulling the plug on building two wind farms off the coast of New Jersey — and may ultimately do the same for a New York project planned east of Long Island.

After months of signaling financial concerns, the energy developer said on Oct. 31 that it is halting the construction of its two New Jersey projects: Ocean 1 and Ocean 2. Write-downs at the company have soared to $5.6 billion as a result. Ørsted executives pointed to supply chain bottlenecks and surging interest rates that have complicated the math of projects once perceived as profitable investments.

“The world has in many ways, from a macroeconomic and industry point of view, turned upside down,” Ørsted chief executive Mads Nipper told reporters on a Nov. 1 call.

The New Jersey cancellations are a blow to the nascent offshore wind industry in the U.S. and dampen President Joe Biden’s plans to grow the sector and reduce the country’s greenhouse gas emissions. Ørsted’s about-face also puts pressure on New York,

GETTY IMAGES

By Caroline Spivack

“A further adverse development of the Sunrise Wind project may potentially lead to us ceasing the project and incurring cancellation fees,” according to the Nov. 1 financial document. Nipper said that the company is taking “a cautionary approach” to Sunrise Wind and that fees to terminate the project would amount to $424 million. Ørsted says it hopes to rebid the project for a price “reflecting the current component and financing costs” now that New York has announced plans for a new solicitation process on an accelerated timeline, according to company financial documents. Ørsted, however, is waiting to assess the conditions of the forthcoming request for proposal before deciding if it will rebid, according to Nipper. Ørsted is far from alone in its losses. On Oct. 31, fossil fuel behemoth British Petroleum reported that it is taking a $540 million pretax write-down on its offshore wind projects contracted with the state in New York. The loss came just three days after BP’s partner on the projects, Equinor, similarly booked a $300 million write-down for its U.S. offshore wind portfolio.

Both companies say they are weighing next steps for their three offshore wind developments — Empire Wind 1 and 2 off the Jersey Shore, and Beacon Wind east of Long Island — after regulators shot down their request to increase the projects’ subsidies.

“BP and its partner Equinor continue to work on options for their U.S. offshore wind projects to mitigate the effect of inflationary pressures and permitting delays,” BP stated in its third quarter results released Oct. 31. “Equinor and BP are assessing the impact of the decision on these projects and future development plans.”

Eversource continued the downward trend on Nov. 6 by reporting a $331 million loss of value on the company’s offshore wind investments.

The losses add up to the very real possibility of developers deciding to cancel contracts, and New York regulators are painfully aware.

In recent weeks, Gov. Kathy Hochul’s administration has taken steps to reassure developers. She unveiled a 10-point action plan to grow the renewable industry in the state and swiftly announced awards for three new offshore wind projects. The state has also

The New Jersey cancellations are a blow to the nascent offshore wind industry in the U.S. which now has the most gigawatts of offshore wind power under contract, to stabilize at-risk projects.

If sites fall through, New York’s status as a leader in the budding industry is at stake; so too are hundreds of millions of dollars in economic development and thousands of jobs linked to the projects.

Sunrise Wind project The fate of existing New York projects is unclear. In a Nov. 1 financial document, Ørsted highlighted uncertainty surrounding its Sunrise Wind project planned off of Montauk with its partner, New England-based Eversource.

The developers signed a 25-year purchase-and-sale agreement in 2019 with the New York State Energy Research and Development Authority. Earlier this year, Ørsted, Eversource and other offshore wind developers sought to amend their contracts, blaming inflation.

But in October, New Yorker regulators rejected the request, which would have added $12 billion in costs to existing state offshore wind contracts — doubling the costs to ratepayers.

asked developers to provide input on terms for new offshore wind bids that could be issued as soon as the end of this year.

“I do find that as a signal of commitment and a willingness to fast-forward a process,” said Equinor Chief Financial Officer Torgrim Reitan on an Oct. 28 earnings call with investors. “But what I want to say is that for us to move forward with these projects, we need to see profitability that is sort of reflecting the risk at hand.”

‘Not an idle threat’ Fred Zalcman, director of the New York Offshore Wind Alliance, argued that New York officials should take heed of developers’ concerns if they want to avert a repeat of Ørsted in New Jersey.

“This obviously sends a signal of the seriousness of these pronouncements; it’s not an idle threat that the companies are making,” Zalcman said in an interview.

He added that he’s encouraged by the potential pathway New York has created for the state’s existing offshore wind projects to rebid with plans for the sped-up solicitation, but it’s unclear if firms will ultimately see the process as a viable way to move forward.

“The situation in New Jersey should, I think, give New York policymakers some pause that these projects truly are at risk,” Zalcman said. “Unless some relief is forthcoming, New York projects could suffer the same fate.”

EVENTS CALLOUT

NOV. 15 HEALTH CARE FORUM A fireside chat with health commissioner Dr. Ashwin Vasan exploring the city’s role in meeting residents’ need for mental health care.

The discussion will touch on how, in a post-Covid world, where cases have waned but a mental health crisis persists, the city plans to build on established health care initiatives to address inequality, quality of life and access to care.

Correction

DETAILS

◗ Updated 40 Under 40 profiles of Anna Daher, Annie Evans, Adam Laitsas,

Location: 180 Central Park South, NYC CrainsNewYork.com/forumevent

Channon Lucas and Laura Turano can be found at CrainsNewYork.com.

2 | CRAIN’S NEW YORK BUSINESS | November 13, 2023

P002_CN_20231113.indd 2

11/10/23 5:27 PM

Veselka opened in Grand Central in early October. | BUCK ENNIS

3 more eateries coming to Grand Central Terminal The restaurants are expected to begin building out space at the transit hub in the coming weeks, the MTA said

By Mario Marroquin

An increase in mass-transit ridership and rising foot-traffic figures seem to continue to lure restaurants to Grand Central Terminal even as the retail market in the neighborhood has remained largely depressed in the past year.

The MTA announced that two restaurants recently opened at the terminal’s dining concourse and three more have agreed to open there.

New Jersey-based concept Playa Bowls, which serves fruit bowls; Greenpoint-based Van Leeuwen Ice Cream; and Portuguese concept Joey Bats Cafe, which specializes in Iberian pastries, are expected to begin building out their restaurant pads on the lower level in the coming weeks, the MTA said.

East Village-based Ukrainian restaurant Veselka opened in Grand Central in early October, and Amsterdam-based cafe Van

Wonderen Stroopwafels held a soft opening in late September, the agency said.

All five tenants signed three-year leases at the terminal, which has 20 retail pads available, the MTA said. Brokerage firm CBRE, which handles leasing at the property, is currently negotiating nine additional retail leases.

Landlords’ shift

a wave of landlords in the neighborhood shifting from offering traditional office building amenities, such as employee lounges, to allocating space for high-profile retail and restaurant tenants as a means to attract and retain office tenants.

At the MetLife Building at 200 Park Ave., for example, real estate firm Tishman Speyer signed seafood restaurant Point Seven and restaurant chain Capital Grille in May. However, overall retail leasing in the Grand Central neighborhood remains largely challenged, according to real estate firm CoStar, which found that the vacancy rate across all types of retail space stood at 15% as of Nov. 1. The vacancy rate in the transit hub stood at 3.6%, while the vacancy

Overall retail leasing in the Grand Central neighborhood remains largely challenged, according to CoStar.

“With the opening of Grand Central Madison earlier this year, having a broad range of tenants is especially important since the terminal now welcomes Long Island Rail Road customers as well as Metro-North and New York City Transit customers every day,” Metro-North Railroad President Catherine Rinaldi said.

News of the eatery openings comes amid

rate for the 246,179 square feet of street-level retail available in the neighborhood stood at 22%.

Sentiment largely positive The real estate firm estimated the average market rent in the neighborhood to be $250 per square foot as of Nov. 1, while the MTA said asking rents in the terminal range from $185 to $200 per square foot.

The sentiment across the neighborhood’s retail sector remains largely positive due to the increase in foot traffic and mass-transit use, according to CoStar, but the high vacancy rate gives prospective tenants some room to negotiate rent concessions and discounts.

The daily average pedestrian count in Grand Central Terminal increased by 21.4% on a year-over-year basis in September, according to the nonprofit group Grand Central Partnership.

November 13, 2023 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20231113.indd 3

11/10/23 5:26 PM

RESIDENTIAL SPOTLIGHT

Ex-Rockefeller townhouse on East 65th Street trades for what could be a 2023 record A former Clinton aide who spent several years remodeling it sold it for reportedly $47 million

send-up flick Wears Prada.

Devil

Was unpaid intern

By C. J. Hughes

ago. Still, the renovation, which increased the depth of the basevery long renovation may ment along with other upgrades, likely didn’t come cheap. have been worth the wait.

It’s not known who purchased The townhouse at 144 E. 65th St., which was the longtime the property, which closed Oct. 19, home of the late David Rockefeller though the deed has yet to appear in the city register. Brobut has been a construcker Adam Modlin, who tion zone in recent represented both the years, has reportedly buyer and the seller in sold for $47 million.

The width of the the deal, declined to Former Bill Clinton townhouse at comment. aide Doug Band, who 144 E. 65th St. But the Olshan Luxubought the eight-bedroom property in 2018 from ry Market Report, a weekly roundRockefeller’s estate and has spent up of deals of more than $4 milthe past several years remodeling lion, which first reported the news, it, had sought $58 million when he said the townhouse went into contract “several weeks ago,” meaning the prewar edifice was able to land a buyer just a few months after hitting the market, no small feat in the current sluggish climate.

Measuring 40 feet across, No. listed the Lenox Hill property in 144 is about twice the width of a July.

Band had to settle for a price typical townhouse. It also has an that was nearly 20% off his target. unusually generously-sized yard, But the attorney, who also as part of its 3,500 square feet of co-founded global consulting firm outdoor space. An indoor basketTeneo, sold the 12,500-square- ball court is another highlight.

Of the townhouses that have foot structure for multiples above the $20 million he paid five years been publicly listed, one of the

The

A

40 feet

An indoor basketball court is a highlight of the townhouse.

144 E. 65th St. | MODLIN

priciest to trade this year appears to have been 29 Beekman Place, a property with ties to an Iranian princess that became ensnared in

a long-running legal battle. The British government snapped up the home in October for about $28 million.

Other single-family townhouses to find takers in 2023 include 129 E. 73rd St., a seven-bedroom property that has its own basketball court. It closed in September for about $28 million, according to the city register. The townhouse served as the home of magazine editor Miranda Priestly, played by actress Meryl Streep, in the Vogue

The $20 million-plus range seems to have been a popular bracket for townhouses.

Others to change hands in that ballpark included 58 Bank St. in Greenwich Village, which closed for $24 million in September, records show.

But there do not seem to be other townhouses, at least not yet, to have breached the $40 million mark, even though several are for sale at that rarefied level.

Band, who began working as an unpaid intern in the Clinton White House in 1995 before earning his law degree at night, served in the White House counsel’s office and later helped Clinton set up the nonprofit Clinton Foundation after his presidency.

Teneo, founded in 2011, meanwhile, has counted Coca-Cola, IBM and Dow among its clients, though Band stepped down from the company in 2020.

A grandson of billionaire John Rockefeller, David Rockefeller had lived at No. 144 since 1948, when his family bought the house. He died in 2017 at 101.

Historic Black Catholic parish site in Hell’s Kitchen slated for conversion into 10-unit residential building A billionaire philanthropist plans to build a residential project on the site of the first Black Roman Catholic church north of the Mason-Dixon line.

Shirley Wang of the JMM Charitable Foundation recently filed plans with the Department of Buildings for a project with the address 340 W. 53rd St., between Eighth and Ninth avenues, that will span about 21,500 square

tion, which is based in Los Angeles, purchased 338-342 W. 53rd St. from the Archdiocese of New York in March for $16 million, property and court records show.

The assemblage includes the former home of the Church of St. Benedict the Moor at 342 W. 53rd St., where Wang has filed plans to enlarge the cellar and mezzanine.

The church itself will remain a church and undergo an extensive renovation to bring it up to current city building codes and make it ADA-compliant, according to Kutnicki Bernstein Architects.

The church building dates back to 1869 and housed the north’s first Black congregation starting in the late 1890s, when the parishioners who had been worshipping at St. Benedict the Moor in Greenwich Village moved to the Hell’s Kitchen property, according to former neighborhood news site DNAinfo. The congregation then merged with the Church of the Sacred Heart of Jesus on West

The church building dates back to 1869 and housed the north’s first Black congregation starting in the late 1890s. feet with 10 residential units. It will stand 7 stories and 66 feet tall and include space for a community facility on the ground floor.

Kutnicki Bernstein Architects is the architect on the development.

The JMM Charitable Founda-

51st Street in 2007, and the Archdiocese deconsecrated the West 53rd Street building in 2017, clearing the way for it to be sold, DNAinfo reported.

There are no plans to reopen the parish, and the new project’s planned community space is not affiliated with the church, according to Archdiocese spokesman Joseph Zwilling.

340 W. 53RD ST.

Part of Adams’ plan Wang is the CEO of ­ P lastpro, a fiberglass door manufacturer. She is married to Walter Wang, CEO of plastic and PVC pipe manufacturer JM Eagle, according to their profile on UCLA’s Global Chinese Philanthropy Initiative. They have supported philanthropic causes including AIDS research and reducing poverty in Africa. Forbes pegged the family’s net worth at $5.4 billion in 2017.

The JMM Charitable Founda-

BUCK ENNIS

By Eddie Small

tion had about $120 million in assets at the end of 2021, according to its tax filings.

A representative for JMM could not be reached by press time.

Building more housing on church properties is one compo-

nent of Mayor Eric Adams’ plan to ramp up residential construction in the city. The former site of St. Ambrose’s Church, also located in Hell’s Kitchen, is slated to become a residential building as well with 71 units.

4 | CRAIN’S NEW YORK BUSINESS | November 13, 2023

P004_CN_20231113.indd 4

11/10/23 1:54 PM

Health Care Report

City unveils plan to raise New Yorkers’ life expectancy past age 83 in effort to make population healthier

By Jacqueline Neber

Mayor Eric Adams, city Health Commissioner Dr. Ashwin Vasan and other officials announced a plan to increase New Yorkers’ life expectancy to exceed 83 years by 2030 in an “all hands on deck” approach to create a healthier population.

According to a HealthyNYC report released Nov. 1, life expectancy in the city dropped to 78 years in 2020 from about 83 in 2019, the first decline after a century of progress.

In 2021, life expectancy went back

the Covid-19 pandemic.

Furthermore, he said, mental health concerns, violence and crime, chronic disease and the worsening overdose crisis have all caused expectancy to drop further, and expectancies vary among marginalized communities. The report shows that in 2021 Black New Yorkers’ life expectancies didn’t reach the 80s.

HealthyNYC agenda

To that end, the HealthyNYC agenda aims to highlight citywide strategies that will have the greatest impact on reducing these issues, monitor the conditions that drive decreased life expectancy and health inequity and report the city’s progress annually. Conditions the city plans to tackle include screenable cancers, cardiometabolic — City Health Commissioner Dr. Ashwin Vasan conditions, drug overdoses and suicide; some of up to about 81 — but Adams em- the strategies to address the drivers phasized at a Nov. 1 press confer- include increasing access to healthy ence that it has not recovered from food and support services.

“For too long, government at every level has acted like — and certainly spent like — health is an individual choice.”

Dr. Ashwin Vasan (left) with Mayor Eric Adams in the background and Councilwoman Lynn Schulman | NYCMAYORSOFFICE/FLICKR, NEWYORKCITYCOUNCIL/ FLICKR

According to the report, if the city achieves its goals and tracks risk factors among neighborhoods it could avert 7,300 deaths by 2030.

“For too long, government at every level has acted like — and certainly spent like — health is an individual choice,” Vasan said Nov. 1. He added that it is city institutions’ re-

sponsibility to address concurrent crises and that the agenda will become a permanent fixture of city government moving forward.

City Councilwoman Lynn Schulman, who worked on the agenda and was to introduce legislation around it at Nov. 2nd’s City Council meeting, told Crain’s that

HealthyNYC and her bills were a collaborative effort of agencies.

“They’re going to go into communities, it’s going to involve a ton of stakeholders. It’s not just going to be a handful of people making a decision about this,” Schulman said.

“This is from the bottom up and that’s what’s thrilling for me.”

WE'RE RAISING HEALTH

FOR MORE PEOPLE

IN NEW YORK

THAN ANYONE

With more experts across all specialties working together, we’re Raising Health for more people in New York than anybody.

MORE EXPERTS. DEEPER INSIGHTS. NEWER BREAKTHROUGHS.

November 13, 2023 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20231113.indd 5

11/10/23 3:08 PM

IN THE MARKETS

Bankman-Fried conviction could help revive the lost art of white-collar prosecutions Let’s hope the verdict gives U.S. Attorney Damian Williams and his staff confidence to prosecute more hard financial cases

A

Manhattan jury deliberated house, a database maintained by for only four hours Nov. 2 Syracuse University. 2022’s level before finding Sam Bank- was even lower than 2020, when courts were closed due to man-Fried guilty of all the pandemic. Let that seven counts after a foursink in for a moment. week trial. It was a triOne explanation for the umph for federal proseevisceration of white-colcutors, who secured a lar enforcement is bringconviction one year to ing terrorists to justice afthe day after CoinDesk ter 9/11 was a top priority. published the article that The Trump administraled to the demise of tion had, let us say, prioriBankman-Fried’s crypto ties other than white-colexchange, FTX. Let’s hope this win Aaron Elstein lar enforcement.

It takes on average 452 gives U.S. Attorney Damian Williams and his team confi- days for a prosecutor to file a dence to prosecute more tough fi- white-collar case after getting a renancial cases. The sad truth is our ferral, 3.6 times longer than avernation’s capacity to bring age for all federal prosecutions, white-collar crooks to justice has according to TRAC. It takes only seriously degraded since a jury 27 days to bring an immigration found the Arthur Andersen ac- case and 103 to bring weapons counting firm guilty of helping charges.

Williams says the yawning gap cover up crime at Enron.

Corporate and white-collar must narrowed.

“We need to collapse the disprosecutions hit an all-time low last year, according to the Trans- tance between misconduct and actional Records Access Clearing- consequence,” he told the audi-

Sam Bankman-Fried was found guilty of seven counts of fraud and conspiracy. | BLOOMBERG

ence at a Crain’s Power Breakfast in April. “The longer time goes by where something bad happens and no one is held accountable, that can lead to a sense of lack of enforcement, lack of rules, distrust in the criminal-justice system.”

Where might he be looking now? Williams observed during the Crain’s event that a slowing

economy reveals accounting fraud, which isn’t apparent in better times. The decimation of IRS staff in the past 10 years surely created a golden age for tax cheating.

In Jesse Eisinger’s masterful book, The Chickenshit Club, former U.S. Attorney James Comey told his lawyers to bring hard cases or they risked joining the group in the title. It’s not an easy ask, be-

cause prosecutors tend to be young and angling for better-paying jobs at law firms that defend white-collar defendants. And no ambitious prosecutor could forget how things ended for Eliot Spitzer, the last official genuinely feared by the financial world.

But on Nov. 2, there was Williams taking a deserved victory lap.

“When I became U.S. Attorney, I promised we would be relentless in rooting out corruption in our financial markets,” he said. “This is what relentless looks like.”

He added: “This case is also a warning to every fraudster who thinks they’re untouchable, that their crimes are too complex for us to catch, that they are too powerful to prosecute, or that they are clever enough to talk their way out of it if caught. Those folks should think again, and cut it out. And if they don’t, I promise we’ll have enough handcuffs for all of them.”

Strong words. Now let’s see more action.

ON POLITICS

Just how much trouble is Eric Adams in?

After previous mayors and governors escaped indictment, the big question is whether Adams will, too

H

ow much trouble, exactly, scheme to divert tens of thousands of dollars in public money to Adis Mayor Eric Adams in?

News broke Nov. 2 that ams’ 2021 campaign. Last month, the FBI had raided the home of his two men pleaded guilty to a mistop fundraiser, 25-year-old Brian- demeanor conspiracy charge na Suggs. Federal prosecutors are stemming from the straw donor reportedly trying to determine if scheme. And Eric Ulrich, Adams’ Adams’ 2021 campaign conspired former Department of Buildings with the Turkish government and commissioner, has also been ina Brooklyn construction company dicted by the Manhattan D.A. in to direct foreign money into the yet another unrelated bribery case. campaign through straw All of it adds up to an donations. Investigators enormous scandal cloud were also focused on for Adams, who has stumwhether the Adams cambled from one controverpaign kicked back benesy to the next. With scant fits to the construction public polling available, company and to Turkish it’s unclear how he’s farofficials. ing with city voters these Adams, who is not acdays — none of this, cercused of any wrongdotainly, will help. ing, had to cancel a The greatest question of planned trip to Washing- Ross Barkan all will be whether federal ton D.C., to meet with the White House about the migrant prosecutors indict Adams. History crisis. He told reporters he held his suggests they’ll have a high bar to mayoral campaign to the “highest clear. Preet Bharara, the publicity-hungry U.S. attorney in the ethical standards.”

How far federal prosecutors go 2010s, indicted many politicians is anyone’s guess. Given the na- and seemed eager to take down ture of the authorized leaks — the both Andrew Cuomo and Bill de New York Times had the story first, Blasio, who were serving as goverin full detail — it’s likely the U.S. nor and mayor of New York reAttorney’s office is feeling confi- spectively.

Bharara couldn’t indict either. dent that those targeted, including Suggs, may eventually be indicted. He came closest with Cuomo, winIn another case, the Manhattan ning a bribery conviction of Joe District Attorney’s office has al- Percoco, the governor’s closest ready charged six people in a aide. (This year, the Supreme

easy yet. Cuomo was governor under a state campaign finance system that doesn’t offer public matching funds and permits enormous individual donations.

Adams is very good at raising cash, but this scandal could make donors wary of cutting large checks to him next year. An ambitious challenger could take advantage of an 8:1 match to become competitive quickly.

There’s also no guarantee that federal prosecutors won’t target Adams. We don’t Multiple separate investigations that touch on Eric Adams and his campaign add up to a cloud of scandal. know the extent of the BENNY POLATSECK | MAYORAL PHOTOGRAPHY OFFICE investigation. We don’t Court reversed the conviction.) head was never indicted. No know what Suggs, under pressure, De Blasio’s fundraising practic- equivalent straw donor schemes will tell investigators. Adams has es were repeatedly investigated, were ever uncovered or even sug- plenty to be nervous about. His fubut no charges were ever brought. gested to have existed. ture is only getting cloudier.

Instead, Bharara’s successor deIf Adams himself is never indictnounced the mayor in a harsh but ed, he can plausibly survive Quick take toothless letter, arguing he had vi- re-election. The initial conviction olated the “intent and spirit” of the of Percoco did little damage when ◗ Adams’ legal troubles could hurt law.

Cuomo ran again in 2018. Incum- New York City’s relationship with bents have fundraising and name Washington as agency heads conrecognition advantages that are tinue to grapple with the influx of Re-election difficult to overcome. No formida- migrants. The Biden administraIt should be noted that prosecu- ble challengers have emerged tion has every reason to distance tors have already gotten much fur- against Adams for the 2025 Demo- itself from Adams.

Ross Barkan is a journalist and ther with Adams than they ever cratic primary.

But Adams shouldn’t breathe author in New York City. did de Blasio. A de Blasio agency

6 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 13, 2023

P006_CN_20231113.indd 6

11/10/23 3:07 PM

SPONSORED CONTENT

How Airbnb is using technology to scale global engagement

Theo Yedinsky, head of global policy at Airbnb and Fred Gabriel, publisher and executive editor at Crain’s New York Business during a panel discussion at Crain’s Tech Summit.

D

isruptive new technology, especially the most successful, often results in new regulations. Few businesses rival Airbnb, the online rental marketplace, which boasts listings in more than 100,000 cities and towns around the world. The global footprint of its Host community means the company must engage with policy makers at every level of government to negotiate short-term rental rules—from giant governing bodies like the European Union, to smaller communities that benefited from pandemic “We’ve invested heavily in scaling technology and strategies to meet that challenge,” said Airbnb’s head of global policy Theo Yedinsky, the individual overseeing the company’s policy efforts, during an engaging “Ask

to keep tech the leading economic driver in New York City. And there is certainly much to discuss about Airbnb’s role in the city’s current economy.

to New York, you’re going to have to stay at a hotel—most likely in a certain small part of Manhattan. You’re not going to be able to visit the outer boroughs,” Yedinsky said.

“Let’s dive into the elephant in the room—Local Law 18, of course,” said Yedinsky’s interlocutor, Fred P. Gabriel.

The Crain’s publisher and executive editor was referring to new legislation, also known as the Short-Term Rental Registration Law, that went into effect in September. Among other things, it requires short-term rental hosts to register with the city through a complicated process, and significantly limits stays under 30 days. Some reports estimate the law took roughly 70% of short-term rentals off the market and created a backlog of 4,000 applications with the city.

Meanwhile, thousands of Airbnb hosts in those outer boroughs can no longer make money using Airbnb’s platform.

Small businesses and restaurants in those neighborhoods will also suffer due to decreased tourism.

“We’re a communitybased company.

Maybe 6,000 people work at Airbnb, but there are 4 million hosts worldwide.”

- Theo Yedinsky, Airbnb

the Expert” panel at Tech Summit.

The October 11th event, co-hosted

by Crain’s and Tech:NYC, brought together entrepreneurs, investors, Theo Yedinsky

policymakers, civic leaders and technologists to explore many aspects of tech, but most especially how

Yedinsky and his team have been trying to work with the City on sensible rules for years. Still, he expects the negative impact will be felt by the city’s short-term rental hosts, visitors and businesses.

“The real people to lose out are consumers. If you’re a tourist coming

“You said you’ve been able to work things out with municipalities all over the world. Why not New York?”

Gabriel asked.

“Honestly, that would be a question for the city,” he replied. “We tried to work with New York City, just like we’ve done with thousands of cities around the world. The city’s rules are an outlier and a contrast to the approach of other cities around the country.”

needs of different governments.

It includes a dashboard with data insights and travel trends to help cities understand Airbnb’s footprint in their communities; compliance tools; and access to the Airbnb Neighborhood Support hotline.

This sort of scalable initiative is a helpful way for Airbnb to work with national, regional and local policymakers around the world. .

Of course, Airbnb must also address the concerns of hosts and guests—and it’s using technology there, too. “We’re a community-based company. Maybe 6,000 people work at Airbnb, but there are 4 million hosts worldwide,” said Yedinsky.

Having seen so many different types of regulation, what does Yedinsky think is most effective? Certainly not New York’s new law: “There have been reports of hosts going underground on social media—and that’s one of the things we warned the city about,” he said. “The policies that work best are the ones that make it simple to get everybody in the system. You make it very easy for people to register so that you have broad knowledge of what’s going on in the community and can develop good compliance.”

That said, Yedinskey noted that the law was signed by the previous administration and city council, so he remains hopeful something can be worked out. “Our door will always be open for conversations. I remain an optimist,” he said.

Gabriel, too, said he hoped for a resolution, as he had already experienced the law’s effects: “The hotel room I booked last night was two and a half times more expensive than I expected!”

But how does Airbnb successfully advocate for itself with so many other entities?

Airbnb has built a tool called City Portal, which helps manage the

A crowd view during the Airbnb panel discussion at Crain’s Tech Summit.

CRAIN’S CONTENT STUDIO

P007_CN_20231113.indd 7

11/9/23 10:00 AM

EDITORIAL

If it hopes to make progress, the city must be forthcoming with mental health data H

elping individuals with serious mental illnesses, and protecting those who may come in contact with them, is no small task for city agencies. But if there’s any hope of addressing the issue, the city must share what data it has with the partners it depends on to carry out its plans.

It is currently failing to do so, which makes it impossible to understand which tactics deployed are working and deserve more resources, and which strategies aren’t making much of an impact. Such information is especially critical because the city’s mental health care system is composed of a vast network of hospitals, police, nonprofits, city agencies and community groups that are all expected to work with one another.

To name a few players, there’s the city’s Department of Health and Mental Hygiene, which is different from the Mayor’s Office of Community Mental Health. The New York Police Department plays a central role in dealing with the small but highly visible population of seriously mentally ill and unhoused individuals and has the

authority to involuntarily transport those who appear to be a danger to themselves to a hospital. Health + Hospitals, along with the city’s private health care systems, receive these admissions and may then connect patients to assertive community treatment teams or intensive mobile treatment teams, community programs designed to reduce some of the burden placed on hospitals.

Solving the deficits in the mental health care system is certainly not a one-man job.

But having so many parties involved creates a secretive environment that’s ripe for finger-pointing and dodging accountability. To ensure that the groups involved have the best possible chance of success, the city must be transparent about what’s happening, what’s working, and what isn’t.

Sharing data allows everyone to learn from successes and failures as the city figures it out, but the city’s opacity forces many groups to operate blindly. The city should regularly and proactively report on the number of individuals that police involuntarily transport to hospitals, how many New Yorkers with serious mental ill-

tially dedicated elsewhere.

The city would not give an on-the-record comment on what has become of the hotline presently or if those resources are being deployed elsewhere.

It’s also critical to understand progress given the city’s large investments in the cause; it has increased menThe city’s mental health care system is composed of a vast network of tal health spending by hunentities, including the Department of Health and Mental Hygiene. | ALAMY dreds of millions of dollars since 2019, according to the nesses are on the waitlists for a spot on ei- city budget. As agencies are tasked with ther an ACT or intensive mobile treatment cutting their budgets for the next fiscal year team and establish key metrics to track to allocate funds to the migrant crisis, it’s impossible to prioritize strategies that newly introduced strategies.

Crain’s reported earlier this year that a show signs of promise if no one can say hotline meant to connect police officers what those strategies are.

Collaboration ultimately can’t impede encountering individuals who may be experiencing mental health issues with an progress in caring for the city’s most vulH+H clinician had received zero calls nerable, and truly successful partnerships during at least its first six months of opera- demand candor. If the city plans to contintion. Though the hotline does not appear ue to rely on its network of partners to solve to have been a success, it’s now productive this pressing issue, it must be more transto know that the resources can be poten- parent.

PERSONAL VIEW HEALTH CARE REPORT

Understanding the origins of the nursing shortage

GETTY IMAGES

U

nderstanding the nursing shortage are using those skills in a wider variety of in the United States isn’t solely settings than they have in the past. That’s about looking at the numbers. Like especially true for experienced nurses.

More nurses have opportunities in telenursing itself, it requires considering the health to provide patient education, colproblem from several angles at once. laborate with patients, families The shortages involve more than and the healthcare team and ofnurses. Just as nurses look at the fer follow-up consultations as whole patient to provide interneeded. Other nurses are reevalconnected care, it’s important to uating roles such as nurse educaview the entire picture of the tion and care coordination, or are healthcare workforce. combining their clinical knowlYes, nurses are the closest and edge with communications or most central point of care for pacomputer and information scitients. They assess patient’s medence in informatics and adviseical stability, monitor their condiment roles in nursing and other tion and coordinate care with Launette industries. other healthcare professionals Woolforde, These new frontiers are excitincluding doctors, social work- EdD, DNP, is ing, but they create a challenge ers, physical and occupational deputy chief therapists, respiratory therapists nursing offer at within the healthcare industry to find ways to maintain a sufficient and more.

Northwell workforce in settings where nursAnd those other professionals Health. es are needed in person. also face shortages, for many of Accept that the pandemic has changed the same reasons as nursing. Industrywide, there are pipeline and capacity challenges, nursing. Even before the pandemic, many increased career options and healthcare nurses experienced burnout. Covid-19 acdemand that outpaces supply. Health care celerated the decision for some nurses to workers as a whole deal with stress and leave the workforce because of the intensiburnout. For instance, medical lab workers ty of the loss and grief they experienced during the height of the pandemic. Others and paramedics are in short supply too.

Nurses have more professional options. chose retirement.

These changes created a workforce gap Nurses are creative and adaptable — and

and a different dynamic between experienced and newer nurses. In the past, newer nurses could draw more on their colleagues’ knowledge and clinical experience. In turn, seasoned nurses helped newer nurses build on the experiences they had in nursing school. The pandemic altered the journey for some newer nurses, limiting their real-life experiences with patients and families, other nurses and the healthcare team.

It’s a difficult balance that we need to

address and discuss so we can build an environment where nurses can draw on resources to provide the professional support they and their patients need, whether it’s leaning on technology that eases workload, or helping nurses connect with each other for wisdom, guidance and ongoing development.

That’s why the nursing shortage requires a multifaceted approach. Hopefully this perspective will help us move closer to achieving lasting solutions.

Write us: Crain’s welcomes submissions to its opinion pages. Send letters and op-eds of 600 words or less to opinion@CrainsNewYork.com. Please include the writer’s name, company, title, address and telephone number. Crain’s reserves the right to edit submissions for clarity.

8 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 13, 2023

P008_CN_20231113.indd 8

11/10/23 4:18 PM

PERSONAL VIEW HEALTH CARE REPORT

The ‘nursing shortage’ is really a staffing crisis

GETTY IMAGES

A

s the president of the largest nurs- ing healthcare. They may be the first es’ union in New York, I am often person you see when you walk through asked how to solve the nursing the door, the person who answers your shortage. I always respond first that it’s not call bell, the person who monitors your condition to catch small proba nursing shortage but only a lems before they become big shortage of nurses willing to work problems, and the person who under the current conditions in teaches you how to support your our healthcare facilities. To solve health before you leave the hosa problem, you need the correct pital. Patient outcomes largely diagnosis. depend on nursing staff.

The nursing shortage is really a crisis of understaffing that health care employers have Need safe staffing manufactured. It started well before the Covid-19 pandemic Nancy Pushing nurses to constantly — the pandemic only exacerbat- Hagans, RN, do more with less — to take on ed the problem. In New York BSN, CCRN, is more patients and more hours and throughout the country the president of and be more flexible with less there are more than enough li- the New York support from administration and censed registered nurses to fill State Nurses less pay than temporary travel hospital vacancies. Many nurses Association. nurses — has led to moral dislook for jobs beyond the bedside tress, exhaustion and a record because of the challenging conditions, number of nurses reporting that they plan including unsafe patient loads that put to leave the bedside. patients’ health and nurses’ licenses at To address the staffing crisis, hospital risk. administrators need to listen to the nursHigh patient loads and stressful condi- es. What we have been saying for years is tions are the result of hospital executives that we need safe staffing. When we have aiming to make facilities more profitable safe staffing — enough nurses to provide by reducing a major expense — the nurs- quality care to patients — nursing can be es. However, nurses are more than an ex- so rewarding. Being able to talk to patients pense; they are the backbone of deliver- and see their smiles as they return home is

a feeling like nothing else in the world. It’s what keeps many of us at the bedside after decades of working a physically and emotionally taxing job.

The U.S. has an aging nursing workforce and an aging population with complex health conditions, so the need for more nurses to meet society’s healthcare needs is only growing. There should be a greater investment in educating and training the next generation of nurses, and at the same

time, there needs to be investment in retaining nurses and making our workplaces better.

It’s not just pay that will make nurses stay. We want to be able to take care of patients the way we were trained to do — with care and quality. To do that, healthcare employers must put patients over profits and guarantee safe staffing — every day, every shift, on every unit, in every facility.

during training than in the past.

Consequently, many new graduates felt ill-prepared for their first patient care position. A study of New York City health workforce shortages found that most health care providers now routinely offer “nurse residencies” to new RN graduates to help them acclimate to bedside nursing practice.

The study also found that younger workers prioritize work-life balance more than older generational cohorts. Providers have

increasingly recognized the need to structure workers’ jobs to reduce stress and burnout, support resilience and help workers achieve the balance they seek, in order to provide them with a sense of control while ensuring the work gets done.

Understanding the perspectives of this generational cohort and addressing their workplace concerns have the potential to improve recruitment, reduce turnover and increase retention of Gen Z RNs.

PERSONAL VIEW HEALTH CARE REPORT

The new generation of registered nurses

GETTY IMAGES

A

s the Covid-19 pandemic subsides, logical advancement in the U.S., including health care providers in all settings the advent of the internet and dramatic report growing difficulty recruiting uptake in the use of smartphones which and retaining workers, particularly regis- has facilitated access to social media.

This generation lived through a global tered nurses.

The turnover of patient care RNs is at- pandemic that had profound effects on them as well as on the economic, tributed to several factors, insocial and political landscape of cluding stressful working condithe U.S., according to the Pew tions characterized by very ill Research Center. One crucial patients and inadequate staffing. pandemic impact was the educaAs an increasing number of older, tional disruptions that students experienced RNs exit the field in experienced, with many schools the near term, there is a recogmoving away from in-person nized need to fill gaps in the nursclasses to remote learning, which ing workforce, using strategies contributed to a sense of isolathat include the recruitment and tion and to lagging educational retention of newly trained RNs. Jean M. As this transition occurs, it is Moore, DrPH, achievement. important to know more about FAAN, is the the youngest cohort of RNs — Director of the Work-life balance understanding the experiences New York that helped shape their work val- Center for These disruptions adversely afues and attitudes — in order to Health fected the health professions’ edudevelop effective strategies to as- Workforce cational pipeline as well, in part by similate them into the health Studies at the limiting access to clinical experiworkforce.

School of ence in health care facilities. Many Generation Z, people born af- Public Health, nursing students who trained ter 1995, represents the youngest State University during the pandemic were unable cohort of RNs. They are more ra- of New York at to complete clinical rotations in cially and ethnically diverse than Albany. hospitals or other health care setprevious generational cohorts. tings, and instead developed their They tend to be more tech-savvy, having clinical skills using simulation, leaving grown up during a time of rapid techno- them with less direct-patient contact

November 13, 2023 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20231113.indd 9

11/9/23 4:04 PM

THE LIST LARGEST NONPROFITS New York-area organizations ranked by total expenses

amanda.glodowski@crainsnewyork.com

PHONE/ WEBSITE

TOP EXECUTIVE

2022/ 2021 TOTAL EXPENSES

International Rescue Committee Inc. 122 E. 42nd St. New York, NY 10168

212-551-3000 rescue.org

David Miliband President, chief executive

United States Fund for UNICEF 4 125 Maiden Lane New York, NY 10038

212-686-5522 unicefusa.org

Michael Nyenhuis President, chief executive

Doctors Without Borders USA Inc. 40 Rector St. New York, NY 10006

% 2022 REVENUE FROM PRIVATE CONTRIBUTIONS

% EXPENSES ALLOCATED TO PROGRAMMING 2022

% EXPENSES ALLOCATED TO FUNDRAISING 2022

$1.27B 1 $979.51M 2

87%

6%

$838.18M $995.72M 5

89%

10%

$812.7M

100%

212-679-6800 Avril Benoit doctorswithoutborders.org Executive director

$649.58M $599.98M

83%

16%

$688.7M

98%

Jewish Communal Fund 575 Madison Ave. New York, NY 10022

212-752-8277 jcfny.org

Susan Dickman Executive vice president, chief executive 6

$610.17M 7 $538.39M 7

97%

0%

$934M 7

n/d

New York Blood Center 310 E. 67th St. New York, NY 10065

212-570-3100 nybloodcenter.org

Christopher Hillyer President, chief executive

$548.15M 7 $507.09M 7

90%

0%

$550.4M 7

n/d

Leukemia & Lymphoma Society 3 International Drive Rye Brook, NY 10573

914-949-5213 lls.org

Andy Kolb President, chief executive

$518.62M $359.85M

79%

10%

$427M

94%

Catholic Medical Mission Board Inc. 100 Wall St. New York, NY 10005

212-242-7757 cmmb.org

Mary Beth Powers President, chief executive

$431.1M 8 $356.69M 8

97%

2%

$480.1M 8

9%

The Metropolitan Museum of Art 1000 Fifth Ave. New York, NY 10028

212-535-7710 metmuseum.org

Daniel Weiss President, chief executive 9

$418.76M 7 $368.98M 7

65%

4%

$653.5M 7

n/d

American Jewish Joint Distribution Committee Inc. 220 E. 42nd St. New York, NY 10017

212-687-6200 jdc.org

Ariel Zwang Chief executive

$397.87M $336.74M

92%

3%

$456M

84%

The Legal Aid Society 199 Water St. New York, NY 10038

212-577-3300 legalaidnyc.org

Janet Sabel 10 Attorney-in-chief, chief executive

$354.86M 7 $334.1M 11

92%

1%

$351.4M 7

n/d

Institute of International Education 1 World Trade Center New York, NY 10007

212-883-8200 iie.org

Allan Goodman Chief executive

$310.59M $244.6M

90%

1%

$281.5M

12%

Services for the UnderServed 12 463 Seventh Ave. New York, NY 10018

212-633-6900 sus.org

Perry Perlmutter Interim president, chief executive

$276.6M $248.47M

96%

0%

$283.7M

1%

YAI Inc. 220 E. 42nd St. New York, NY 10017

212-273-6100 yai.org

Kevin Carey Chief executive

$270.43M $235.32M

88%

0%

$268.2M

1%

Teach for America Inc. 25 Broadway New York, NY 10004

212-279-2080 teachforamerica.org

Elisa Villaneuva Beard Chief executive

$269.74M 7 $258.62M

74%

10%

$220.7M 7

67%

SCO Family of Services 1415 Kellum Place Garden City, NY 11530

516-671-1253 sco.org

Suzette Gordon President, chief executive 13

$263.82M $252.73M

87%

0%

$267.8M

6%

UJA-Federation of New York 130 E. 59th St. New York, NY 10022

212-980-1000 ujafedny.org

Amy Bressman President 14 Eric Goldstein Chief executive

$258.77M $258.98M

77%

13%

$294M

80%

Jewish Board of Family and Children's Services Inc. 463 Seventh Ave. New York, NY 10018

212-582-9100 jewishboard.org

Jeffrey Brenner Chief executive

$232.29M $234.59M

83%

1%

$232.3M

10%

American Museum of Natural History Central Park West at 79th Street New York, NY 10024

212-769-5100 amnh.org

Sean Decatur President Ellen Futter Former president 15

$201.74M $189.16M 16

81%

3%

$228.3M

30%

Hadassah, The Women's Zionist Organization of America Inc. 40 Wall St. New York, NY 10005

212-355-7900 hadassah.org

Naomi Adler Executive director, chief executive

$189.7M $85.69M

85%

6%

$98.8M

99%

Children's Aid 117 W. 124th St. New York, NY 10027

212-949-4800 childrensaidnyc.org

Phoebe Boyer President, chief executive

$148.62M $141.34M

81%

2%

$167.1M

15%

RANK

ORGANIZATION

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

2022 TOTAL REVENUE

$1.4B 3

n/d

To qualify for this list list, organizations must be tax-exempt 501(c)(3) nonprofits with headquarters in the New York area. This includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain's New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that the listings are complete. Universities, colleges, libraries, hospitals, health care institutions, medical practice groups and research institutions are excluded. Information is from the foundations, foundation websites, Forms 990 and financial statements. n/d-Not disclosed. Send feedback to researcher@crainsnewyork.com. 1-- Figure from organization's audit for period ending September 2022. 2-- Figure from organization's audit for period ending September 2021. 3-- Figure from organization's audit for period ending Sept. 2022. 4-Contains figures from two affiliated 990s. 5--Expense increase reflects increased programming activity enabled by fundraising growth. 6--Left post in June 2022. 7--Figure from organization's 990. 8--Figures are from audited financial statements. 9-Left post in June 2023. 10--Left post in May 2022. 11--Figure from organization's audit for period ending June 2021. 12--Includes data from 990s for two affiliated organizations. 13--Served as interim president and chief executive until July 2023. 14-Completed tenure in June 2023. 15--Concluded tenure on March 15, 2023. 16--2020 total expenses.

10 | CRAIN’S NEW YORK BUSINESS | November 13, 2023

P010_CN_20231113.indd 10

11/9/23 1:59 PM

THE LIST LARGEST FOUNDATIONS New York-area charities ranked by total assets

7 8 9 10 11 12 13 14 15

2022 ASSETS (IN MILLIONS)/ % CHANGE FROM 2021

2022 CONTRIBUTIONS (IN MILLIONS)/ % CHANGE FROM 2021

2022 NOTABLE GRANTS TO NYC ORGANIZATIONS

YEAR FOUNDED

PHONE/ WEBSITE

TOP EXECUTIVE(S)/ TITLE

The Ford Foundation 320 E. 43rd St. New York, NY 10017

212-573-5000 fordfoundation.org

Darren Walker President

$20,038.0 1 +12.4%

$948.1 1 n/d +45.4%

Civic engagement; government

1936

Open Society Foundations 2 224 W. 57th St. New York, NY 10019

212-548-0600 opensocietyfoundations.org

Mark Malloch-Brown President

$15,866.4 3 -10.1%

$855.3 3 n/d -17.0%

Justice; equity; expression

1993 4

Bloomberg Philanthropies 25 E. 78th St. New York, NY 10075

212-205-0100 bloomberg.org

Patricia E. Harris Chief executive

$11,529.7 -11.6%

Public health; environment; the arts

2006

Andrew W. Mellon Foundation 140 E. 62nd St. New York, NY 10065

212-838-8400 mellon.org

Elizabeth Alexander President

$9,550.2 5 0.0%

$417.7 5 n/d 0.0%

Presidential initiatives; higher learning; arts and culture

1969

The Leona M. and Harry B. Helmsley Charitable Trust 230 Park Ave. New York, NY 10169

212-679-3600 helmsleytrust.org

Sarah E. Paul Chief executive

$7,256.8 -11.7%

$467.4 Icahn School of Medicine at +11.7% Mount Sinai, $2 million, Fund for Public Housing Inc., $3.2 million

Severe chronic diseases; select place-based initiatives

1999 6

The Rockefeller Foundation 420 Fifth Ave. New York, NY 10018

212-852-8361 rockfound.org

Rajiv J. Shah President

$6,279.4 -18.5%

$409.2 n/d -31.4%

Equitable global health systems

1913

Simons Foundation 160 Fifth Ave. New York, NY 10010

646-654-0066 simonsfoundation.org

David Spergel President

$4,910.6 -5.9%

$310.0 New York University - Simons +0.1% Center for Computational Physical Chemistry, $10 million; Research Foundation/CUNY on behalf of the Graduate Center - Masters in Astrophysics Bridge Program, $4.4 million

Research in mathematics, physical sciences, computer science, life and autism sciences

1994

JPB Foundation 875 Third Ave. New York, NY 10022

212-935-9860 jpbfoundation.org

Barbara Picower President

$4,117.9 -18.5%

$359.3 New York Hall of Science, $1 +12.9% million; Harlem Children's Zone, $3.5 million

Poverty; environmental; medical research

2011

Carnegie Corp. of New York 437 Madison Ave. New York, NY 10022

212-371-3200 carnegie.org

Dame Louise M Richardson President-elect Gov. Thomas Kean Chair, board of trustees

$3,564.0 1 -24.2%

n/d n/d

K-16 education; democracy; international peace and security

1911

The New York Community Trust 909 Third Ave. New York, NY 10022

212-686-0010 nycommunitytrust.org

Amy Freitag President

$3,104.4 1 -11.3%

n/d n/d

Promising futures, thriving communities, healthy lives

1924

Doris Duke Charitable Foundation 650 Fifth Ave, New York, NY 10019

212-974-7000 ddcf.org

Sam P. Gill President, chief executive

$2,418.8 1 -7.0%

n/d n/d

Medical research, performing arts, environment

1996

Alfred P. Sloan Foundation 630 Fifth Ave. New York, NY 10111

212-649-1649 sloan.org

Adam F. Falk President

$2,056.9 -13.9%

$87.2 Research Foundation for the City +1.4% University of New York, $1.5 million; BIOBUS, $600,000

Scientific research; DEI in STEM, public science engagement

1934

The Starr Foundation 399 Park Ave. New York, NY 10022

212-909-3600 starrfoundation.org

Courtney O'Malley President

$1,482.1 -14.5%

$75.6 New York Presbyterian Fund, $10 +6.1% million; Georgia State University Risk Management Foundation, $15 million

Health and medicine; education; human needs

1955

Rockefeller Brothers Fund 475 Riverside Drive New York, NY 10115

212-812-4200 rbf.org

Stephen B Heintz President, chief executive

$1,351.2 -18.3%

$61.2 The New York Community Trust's +12.9% Mosaic Network and Fund, $1 million; Potential Energy Coalition's Science Moms Project, $1 million

Democratic practice; peacebuilding; sustainable development

1940

Surdna Foundation Inc. 7 200 Madison Ave. New York, NY 10016

212-557-0010 surdna.org

Don Chen President

$1,189.0 -9.1%

$45.6 n/d +1.9%

Thriving cultures; sustainable environments; inclusive economies

1917

FOUNDATION

1 2 3 4 5 6

amanda.glodowski@crainsnewyork.com

$1,700.0 Robin Hood Foundation, $9.9 +2.4% million; Inner-City Scholarship Fund, $1.5 million

TOP GIVING AREAS

To qualify for this list list, organizations must be headquartered in the New York area, which includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain's New York Business uses staff research, surveys and the most current references available to produce its lists, but there is no guarantee that the listings are complete. Information is from the foundations, foundation websites, Forms 990 and financial statements. Send feedback to researcher@crainsnewyork.com. 1--Figure from organization's 990. 2--Previously listed as two separate entities: Foundation to Promote Open Society and Open Society Institute 3--Foundation estimate. 4--Date of earliest 501(c)(3). Open Society Foundations was established in 1984. 5--Previous year's figure used. 6--Active grantmaking began in 2008. 7--Fiscal year ends June 30. Some data are based on Crain's estimates.

WANT MORE OF CRAIN’S EXCLUSIVE DATA? VISIT CRAINSNEWYORK.COM/LISTS. November 13, 2023 | CRAIN’S NEW YORK BUSINESS | 11

P011_CN_20231113.indd 11

11/9/23 1:56 PM

Powerhouse real estate law firm Stroock to close

By C. J. Hughes

A real estate-focused law firm involved with some of the most high-profile developments in New York in recent years — the World Trade Center, Essex Crossing and Hudson Yards among them — is calling it quits.

Stroock & Stroock & Lavan, a practice that dates to around the Civil War, will turn off the lights in January, laying off 138 employees, according to a state labor notice made public Nov. 3 that confirmed news reports about the firm’s closing. But another firm, Hogan Lovells, has hired most of the workers, according to the company.

The Financial District-based

The firm voted Oct. 24 to dissolve itself, according to a source close to the decision who asked to remain anonymous to discuss a sensitive matter. But about 130 employees, including 30 partners and associated staff members, are planning to relocate to Midtown-based global law firm Hogan Lovells, a move that was put in place after merger talks with the firm Pillsbury Winthrop Shaw Pittman went nowhere, that source said.

Founded in 1876 “This is a premier group of extremely talented lawyers who will significantly expand our presence in New York as well as add to our real estate capabilities in other important markets,” said Hogan Lovells CEO Miguel Zaldivar in an Oct. 27 statement.

Stroock co-managing partners Alan Klinger and Jeff Keitelman both declined to comment.

Founded in Manhattan in 1876, Stroock showed a knack with complicated lease transactions, especially when its real estate practice was chaired

by Leonard Boxer, who helped Larry Silverstein raise the equity needed in the competitive race to lease the World Trade Center site from the Port Authority of New York and New Jersey in 2001.

Silverstein ended up closing his $3.2 billion, 99-year deal in summer 2001, just weeks before the Sept. 11 terrorist attacks destroyed

About 130 employees, including 30 partners and associated staff members, are planning to move to Hogan Lovells. firm had spent the past year and a half courting other practices in a bid to merge after dozens of lawyers in its lucrative restructuring group decamped to the firm Paul Hastings.

But a multimillion-dollar pension liability reportedly was a deal-breaker for some suitors. The firm voted in August to end its pension obligation to appear more attractive.

180 Maiden Lane, Financial District | COSTAR

the site. The Port Authority remained a client of the firm through this year.

The firm was also known for handling tricky public-private partnerships, like with Essex Crossing, a multiblock redevelopment of city-owned land on the Lower East Side under the guidance of partner Karen Scanna, a 30-year veteran of the firm.

Financial District lease Based at 180 Maiden Lane since the mid-1990s, Stroock appears to have hit its financial peak in 2007

with $300 million in gross revenue; there have been diminishing returns since then, according to the magazine The American Lawyer.

In 2021 the firm added 18 partners, according to the source. But the next year saw 40 attorneys defect to rival Paul Hastings, a blow that came as real estate transactions, once a lifeblood of the practice, began to dry up as development projects slowed. Other firms that Stroock approached about a possible merger included Nixon Peabody, McGuireWoods and Squire Patton Boggs.

At 180 Maiden, a 41-story, 1980s

tower owned by a partnership of Clarion Partners, Banyan Street Capital and LaSalle Investment Management, Stroock leases seven floors, or about 211,000 square feet of the 1.2 million-square-foot building, according to the data firm CoStar. Stroock appears to have renewed its lease in 2016.

Whether the firm will continue to make rent payments or sublet the space is unclear. But the building is already dealing with vacancies, such as on its top floor, and is just 88% leased, CoStar said.

Stroock will close Jan. 30, according to the labor filing.

Extell chairman unloads former Papaya King site on East 86th Street for $24.5 million after two years

By C. J. Hughes

In the end, an uptown Papaya King site seemed too much for developer Gary Barnett to stomach.

Barnett, the chairman of luxury developer Extell, has sold the former hot dog and fruit juice stand on East 86th Street on the Upper East Side for $24.5 million, according to a deed that appeared in the city register Nov. 1.

Purchasing the 5,000-squarefoot, single-story parcel at Third Avenue, which could support at least a 20-story building based on its zoning, was Long Island-based developer ZD Jasper Realty, which

what the buyer will do at the narrow site. The firm had no comment. And an Extell spokeswoman did not respond to a request for comment.

Paid $21 million But Barnett initially seemed interested in developing the property itself. In June 2022 he filed plans to demolish the low-slung brick structure, which also once contained a Children’s Place clothing store and a Cohen’s eyeglasses shop, though those permits don’t ever seem to have been approved.

The developer could have merely been sweetening the deal for an eventual sale.

Barnett paid $21 million for the site in 2021, meaning he enjoyed a more than 15% profit in two years.

But his tenure with the property likely caused some indigestion. When he bought the building, it was enmeshed in an eviction battle between Papaya King and landlord Imperial Sterling. Imperial had moved to kick out Papaya King after it missed more than $120,000 in rent payments.

The parcel at Third Avenue could support at least a 20-story building based on its zoning. has been snapping up parcels across Manhattan in recent months.

ZD Jasper borrowed $14.5 million from Pacific National Bank to finance the deal, which closed Oct. 10, records show. It’s not clear

1535 Third Ave., Upper East Side | BUCK ENNIS

But Papaya King’s management company later supposedly broke into the location to reopen the shop, alleging that Imperial Sterling, which appears to have been tied to the site since the 1980s, wasn’t its only owner, court documents show. After buying the property, Barnett inherited the case, which seemed to break in his favor in March, when a Manhattan

Supreme Court judge ruled that Papaya King had to go.

Soon after Papaya King announced plans to relocate to a former Modell’s sports store across the street at 1535 Third Ave., though it does not seem to have whipped up any mango beverages at that berth yet.

Founded in 1932 at East 86th Street and Third Avenue, Papaya

King helped popularize the idea of pairing frankfurters with tropical drinks, a combo that Gray’s Papaya would also embrace starting in the 1970s. Papaya King later branched out to the East Village and Brooklyn while also opening outposts in places such as Los Angeles, but the Third Avenue address appears to be the only one remaining.

ZD Jasper is no stranger to doing deals with Extell. In 2022 the company, founded by Tom Wu, purchased a Hudson Yards development site from Barnett at 430 W. 37th St. near 10th Avenue for $52 million.

The firm plans on constructing an 11-story, 128-unit project there. It would be ZD Jasper’s first Manhattan development. Previously, the firm constructed projects across Queens, including several in Long Island City, such as 5 Court Square, an 11-unit condo from 2019.

12 | CRAIN’S NEW YORK BUSINESS | November 13, 2023

P012_CN_20231113.indd 12

11/9/23 3:59 PM

PEOPLE ON THE MOVE

Advertising Section To place your listing, visit www.crainsnewyork.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

ACCOUNTING

CONSTRUCTION

FINANCIAL SERVICES

FINANCIAL / TECHNOLOGY

LAW

Withum

Suffolk

IDB Bank

DailyPay

Latham & Watkins LLP

Hon. Margaret M. Foti P.J., Cr. (Ret.), formerly the presiding Judge of the Criminal Division of the Superior Court of Foti New Jersey, Bergen County, joins Withum as a Principal in the Forensic and Valuation Services team. She has over 30 years of experience and specializes in Gruda civil and criminal investigations, both governmental and internal, monitorships, receiverships and other court-appointed assignments.

Jonah Gruda, CPA, joins Withum as a Partner in the Private Client Services Group.

He has over 20 years of tax experience and serves as a trusted advisor to high net-worth executives, investment bankers, entrepreneurs, hedge fund and private equity fund managers, providing customized solutions and high-touch, proactive service.

Aeran Doron has joined Suffolk as Vice President of Operations in their New York office.

With over 20 years of experience, Aeran will focus on expanding Suffolk’s public sector portfolio by providing unparalleled client service and strategic business planning. His impressive skills, combined with Suffolk’s national resources and state-of-the-art technologies, will allow him to deliver a seamless design and construction process that will transform the way buildings are constructed in the city.

IDB Bank, a New York-based private and commercial bank, has appointed Neil Wolfe as its new Senior Vice President, Head of Asset-Based Lending & Factoring. A seasoned executive, he will leverage more than 20 years of leadership and business development success to drive loan originations, as well as credit and portfolio management across the Bank’s New York ABL & Factoring divisions to service more than 120 client relationships, representing several billion dollars in facilities.

DailyPay, a leading financial technology company, has appointed Ken Brause as Chief Financial Officer, reporting to CEO Kevin Coop.

Brause will advance DailyPay’s financial strategy and capabilities to accelerate company growth.

Brause brings over 35 years of financial services and fintech experience at companies of various sizes and stages of ownership and growth, and has extensive expertise overseeing companies through complicated capital markets transactions and transformations.

Jennifer Ezring has rejoined the New York office of Latham & Watkins as a partner in the Banking Practice.

Ezring has significant experience advising commercial and investment banks on domestic and international acquisition financings, leveraged buyouts, going-private transactions, recapitalizations, project financings, bridge lending and loan commitments, out-of-court debt restructurings, and other secured lending transactions across a variety of industries.

LEGAL

NONPROFIT

Nutter McClennen & Fish

Child Mind Institute

Representing sophisticated corporate clients, Andrew Tenzer joined Nutter’s NY office as partner in Tenzer the Bankruptcy, Restructuring, and Workout practice group. Previously at Paul Hastings, Tenzer focuses on advising lenders, Masaitis troubled companies, and buyers and sellers of distressed assets in Ch.11 and in out-of-court and cross-border restructurings.

Scott Masaitis joined Nutter’s NY office as partner in the Tax Department, previously serving as leader of KPMG’s National M&A Strategic Tax practice.

Masaitis provides counsel on complex tax issues, including domestic corporate tax, tax structuring, tax due diligence, and cross-border transactions.

He works with clients to structure tax-efficient transactions and manage technical tax matters.

The Child Mind Institute appointed Demetrios Kadenas as Chief Development Officer (CDO) and Charles Fields as Kadenas Chief of Staff (COS).

The leading children’s mental health nonprofit will welcome both individuals to the organization in November 2023.

Fields Kadenas and Fields join the Child Mind Institute at a time of significant growth.

The organization has more than tripled its staff since 2018 and announced earlier this year that they will soon move their headquarters to an 82,000 square foot new office space at 825 Third Avenue.

SHOWCASE INDUSTRY LEADERS AND THEIR CAREERS RECOGNIZE TOP ACHIEVERS IN NEW YORK’S PREMIER PUBLICATION New Hires / Promotions / Board Appointments Retirements / Special Acknowledgements

MAKE AN ANNOUNCEMENT Debora Stein / dstein@crain.com

CRAIN’S NEW YORK

Tap into New York.

Crain’s is now in the app store.

November 13, 2023 | CRAIN’S NEW YORK BUSINESS | 13

SPONSORED CONTENT

A roadmap to help connect employees with affordable, quality health care The average premium for employer-sponsored health care increased by 7% in 2023 in the U.S., with the average premium for a family now exceeding $23,900, according to recent research.

Employers and employees are both experiencing the effects of those increases, as workers now contribute more than $6,500 each year to their own care. Unfortunately, research has found that almost 25% of what is spent on health care may be wasteful, including overtreatment, low-value care and fraud – all of which contribute to the total cost of care while doing little to improve health outcomes.

With increasing health care costs and high inflation putting financial pressure on companies in New York and across the country, many employers are looking for ways to maximize the value of their health benefits and implement programs that encourage access to quality, evidence-based care. For many organizations, the priority is offering innovative benefit packages that aim to help attract and retain top talent, while enabling for strategic cost management.

Crain’s Content Studio recently spoke with Junior Harewood, CEO, UnitedHealthcare of New York, about how to put these ideas into action. Here are some insights from the conversation.

go-to option amid the COVID-19 pandemic and remains a popular option for many employees.

Virtual care can help treat urgent medical issues, such as allergies, rashes, or seasonal flu, along with other types of care, including primary, specialist and behavioral.

Plus, virtual care is often less timeconsuming, which can eliminate the need to take time off work, arrange childcare, or travel long distances to receive care.

JUNIOR HAREWOOD CEO UnitedHealthcare of New York

CRAIN’S: How can employers promote preventative care?

HAREWOOD: According to the United Health Foundation’s America’s Health Rankings report, New York was 14th in the country for the percentage of adults who have a dedicated health care provider. By further encouraging access to primary care, employers may be better positioning their team members to help prevent, detect or manage health care conditions, such as type 2 diabetes or high blood pressure.

In addition to contributing to improved health outcomes, a recent study found primary care visits reduced annual health care costs by 33% for employees.

Employers can act by seeking innovation in network and plan designs, including options that incorporate Accountable Care Organizations (ACOs) and Centers of Excellence (COEs). These approaches may help deliver quality, cost-effective care, while reducing the risk of complications and lowering hospital length of stay.

CRAIN’S: How can workplaces invest in remote care resources?

HAREWOOD: Telehealth, also called virtual care, emerged as a

To help make virtual care as accessible as possible, some health plans and employers are opting to waive member cost sharing for certain virtual visits.

CRAIN’S: What are some best practices for rewarding employees for wellness activities?

or tracking sleeping. To help spur engagement, employers can consider offering incentives that are tangible and that can be spent however the employee wants, rather than virtual coins or points. This may help members to to offset out-of-pocket medical costs or redeem the value of the incentives in other ways.

Investing in programs that leverage wearable devices may also play an important role, providing employees with daily feedback on their activity levels and other markers of health.

This type of technology may be crucial to help address the growing prevalence of type 2 diabetes, which accounts for up to 19% of health care costs for employers. For instance, I’m seeing growing interest in

To help make virtual care as accessible as possible, employers can evaluate what virtual care options are currently available to employees through their health plan, local care providers, or other virtual service providers.

HAREWOOD: Many employers offer well-being programs, but only 23% of employees use these wellness initiatives. That’s why it may be important for employers to take a comprehensive approach and look to drive employee engagement broadly with their health plan. That can include making their engagement platform more integrated into their overall health plan experience and looking for ways to enable employees to more easily to find and take advantage of with these resources, while offering incentives for any number of healthy activities and engaging with cost saving tools or educational resources. Potential actions include filling out a health survey, getting a flu shot, getting a biometric screening, meeting certain movement goals,

programs that use a combination of real-time glucose monitoring, activity trackers and virtual care teams to help people with type 2 diabetes improve control over their condition and offer cost savings for employers.

to care and encourage people to make more informed choices when selecting health care providers and facilities.

In some instances, employers are offering a traditional health plan alongside one of these newer options, with the goal of helping reduce the total cost of care and lower out-of-pocket costs for employees. For instance, many of our employees and their families have recently switched to UnitedHealthcare’s Surest plan, which provides upfront price information in advance of care and offers $0 virtual care visits in many instances.

Empowered with this information,

UnitedHealthcare members in this plan more frequently accessed preventive visits and exams, while experiencing fewer emergency department visits and in-patient hospital admissions.

As a result, a recent study found members in this plan pay about 50% less out of pocket, while employers save an average of 11%.

Ultimately, there are many way employers can help employees make more informed health care decisions. That, in turn, may support improved outcomes, reduce the total cost of care and help employers build a culture of wellness.

There for what matters™ To learn more about Oxford health plans for your business, contact your broker or visit uhc.com/oxfordnewyork

CRAIN’S: Some employees may avoid using their health plan because deductibles are a barrier. What can employers do about that?

HAREWOOD: One strategy is to add a plan with upfront pricing.

These health plans are doing away with deductibles and instead giving employees first-dollar coverage, coupled with access to upfront cost and coverage information before they schedule medical appointments. In doing so, these plans are designed to help remove financial barriers

Oxford insurance products are underwritten

by Oxford Health Insurance, Inc. B2B EI232427412-OXF 8/23 © 2023 Oxford Health Plans LLC All Rights Reserved.

23-2421699-H

COPY EDITOR ______ COLD READER ______ WRITER ______ SENIOR EDITOR ______ FINAL ______ P014_CN_20231113.indd 14

11/8/23 1:19 PM

Health Care Report Q&A

New Lenox Hill chief nursing officer on overcoming workforce challenges and finding joy in the job

L

ocal hospitals are at an inflection point when it comes to staffing as they try to balance the ever-rising cost of care with employee demands for safe care and adequate pay.

In light of this, staffing and safe patient care are two of hospitals’ biggest priorities for 2024, and Northwell Health has appointed two new chief nursing officers at two hospitals who will play major roles in these areas. Kevin Browne, who is now chief nursing officer at Northwell’s Lenox Hill Hospital, Manhattan Eye, Ear & Throat Hospital and Lenox Health Greenwich Village and has been a registered nurse for 36 years in multiple positions, said his strategic business acumen and understanding of frontline nurses’ roles has prepared him for his new job. He spoke to Crain’s about what the role entails from a business perspective and how he’ll approach the biggest challenges facing nursing. | By Interview by Jacqueline Neber

From a business perspective, what does this role entail?

Nursing is typically the largest workforce in any health care organization so they are an asset.

Nurses are involved and engaged

do, is to help nurses be seen, to tap into nurses, to help other executives and personnel appreciate the return on investment and the value of a registered nurse and how that nurse can impact the trajectory of an organization.

That nurse can be a main player in a strategic plan and initiative and creating health systems that are healthy and best for patients. I think that understanding what patients and families need while they’re admitted to a health system…Nurses understand that best and are just always aligned with the patient’s narrative and the patient’s story.

And by understanding those nuances, they capture a flavor of what patients need to be able to help health systems be strong, to be focused, to be strategic. I would say that nurses very much have

“I would say in the postpandemic era, staffing [and] compensation modeling has become a top priority for the discipline.”

— Kevin Browne in every single strategic initiative across health systems. If it’s touching a patient, you need nurses at the table to help you move that agenda forward.

So when I think about what it is that I’m doing, what helps me help nurses be seen? I think that’s fundamentally what I’m trying to

their finger on the pulse of what’s happening and they’re really in an organization and by inviting them and embracing their wisdom, their intellect, they can be quite influential in the landscape.

It feels like we’re at an inflection point for nursing and hospital staffing in general. How do you envision approaching safe staffing and adequate pay?

I would say in the post-pandemic era, staffing [and] compensation modeling has become a top priority for the discipline. I think it’s a national conversation right now; there’s pretty much no nursing organization that’s not talking about it. Over time [nurses’] value has become much more appreciated. I believe that institutions recognize what their nurses do to contribute to their overall bottom line. So by valuing a nurse and understanding the return on investment of that nurse,

it then becomes a much easier conversation to have when it comes to compensation and overall resources.

Human resources and fiscal resources have to be targeted to be able for you to achieve your bottom line and your mission. I believe that healthy organizations take that into account and look to create competitive compensation models while also ensuring you have adequate nursing resources at a bedside, at a table, at a chair to deliver favorable outcomes.

It needs to be a discussion.

It needs to be a thoughtful conversation. It has to be strategic.

We have to understand how we contribute to that bottom line.

What’s the biggest challenge in your new role and how do you plan to overcome it?

I think there is such [an] opportunity to bring joy back into the work. So having been a nurse

Kevin Browne | NORTHWELL

now for 36 years. I remember a time when I felt very passionate about the work that I was engaged in. The nursing discipline at large has to begin to examine itself about the joy in the work. There’s nothing more important than one human being inserting his or herself into another human being’s story, and nurses do that every single day, that insertion into someone’s story.

You’re coming into sacred space, and in that sacred space [is] the fuel to continue to do this great work that we’re engaged in, to help people reach their healthcare milestones, and return people from a degree of brokenness to some degree of wholeness.

Hochul signs bill to help Medicaid enrollees get doula care higher risk of pregnancy-related morbidity and mortality in New York and nationally.

By Amanda D’Ambrosio

Gov. Kathy Hochul signed legislation on Nov. 6 to help New Yorkers enrolled in Medicaid find doula care, as the state prepares to expand Medicaid to cover the costs of doula services at the beginning of next year.

The new legislation directs the state Department of Health to publish a doula directory on its website to help New Yorkers find doulas who take Medicaid. The database will include the names and locations of doulas across the state, as well as Medicaid providers that offer doula services.

Hochul signed legislation to help New Yorkers get doula care as the state prepares to expand the Medicaid program in the coming months. The state will cover doula services for Medicaid enrollees starting on Jan. 1 of next year, the governor announced Nov. 6.

Doulas who participate in New York’s Medicaid program will receive a maximum reimbursement of $1,500 per pregnancy in New York City, and $1,350 in the rest of the state, said Aja Worthy-Davis, a

Effort to cut racial disparity

The state of New York will begin covering doula services for Medicaid enrollees starting Jan. 1. | GETTY IMAGES

spokeswoman for the governor.

Coverage will include a total of up to 10 visits during pregnancy and the postpartum period, as well as doula support during labor and delivery.

Medicaid reimbursement for doula care could offer additional

pregnancy support to a vast portion of low-income New Yorkers.

But some legislators and advocates fear that the reimbursement rates are not adequate to attract enough providers to participate in the Medicaid program.

Doulas, non-clinical providers

that offer physical and emotional support to mothers during and after pregnancy, have the ability to improve health outcomes for pregnant people. They also advocate for patients during the birthing process, providing critical services to people of color who face a

Black women in New York are five times more likely to die because of conditions related to pregnancy — three-quarters of which are preventable, according to a report released by the state’s maternal mortality review board in 2018. Efforts to improve doula care are a piece of the state’s efforts to reduce racial disparities in pregnancy outcomes.

In addition to announcements around doula services, Hochul also said Nov. 6 that the state health department allocated $4.5 million to regional perinatal centers to improve birthing center networks and offer provider training. The funding for regional perinatal centers was included in the budget.

The legislation requiring the health department to create a doula database will take effect nine months after it is signed into law.

NOVEMBER 13, 2023 | CRAIN’S NEW YORK BUSINESS | 15

P015_CN_20231113.indd 15

11/9/23 4:28 PM

Health Care Report

ILLNESS Hochul, opioid board divide widens on money for safe injection sites From Page 1

By Amanda D’Ambrosio

New York’s opioid settlement fund advisory board has submitted updated spending guidance to the state, urging officials for the second year in a row to use settlement dollars to fund overdose prevention centers.

The board, which is tasked with advising the state on how to spend money obtained from litigation with opioid manufacturers and distributors, recommended that New York fund an overdose prevention center demonstration project, calling on officials to authorize the centers and gather research on overdose outcomes.

Overdose prevention centers operate as supervised drug-use sites with the aim of intervening in fatal overdoses.

The recommendation comes on the heels of refusals to fund overdose prevention centers by Gov. Kathy Hochul. Last year, the Hochul administration rejected the board’s suggestion to fund these sites, citing concerns about the legality of government-sanctioned drug use.

Governor says no Additionally, Hochul affirmed in a press conference that she would not use the settlement funds to support these centers, stating that the money must go to efforts that would “withstand legal challenge.” Hochul referenced a statement from the U.S. Attorney Damian Williams, who told the New York Times this summer that overdose prevention centers are operating in violation of the law until they are authorized by local officials, noting that his office would consider enforcement.

In response to an inquiry from Crain’s, Aja Worthy-Davis, a spokeswoman for the governor, said that “there is no plan at this time to fund safe injection sites.”

New York City is home to the state’s only two overdose prevention centers, both of which are operated by the nonprofit OnPoint NYC. The sites, which are privately funded, have intervened in more than 1,000 overdoses since they first opened in November 2021, according to data released by OnPoint.

In its latest recommendations, the advisory board again called on the state to use a portion of the settlement funds, which will amount to more than $2.6 billion, to fund overdose prevention centers.

The opioid settlement fund advisory board first convened in June 2022 and submitted its first report to the state last fall. Since then, board members have heard feedback on how initial guidance has been implemented, adjusting recommendations for fiscal year 2025 to reflect issues around lagging delivery of funds and complexities around supporting a vast array of

addiction services.

In the new recommendations, the board changed how it prioritizes spending in 10 different categories.

It has allocated 28% of the funding, the highest share, to investments across the continuum, which includes funding for data, technology, workforce and integration of care.

Harm reduction received the second-highest share of funding at 17%, followed by recovery, housing and treatment.

Research and public awareness efforts received the lowest share of funding, at 2% and 1%, respectively.

In a settlement fund advisory board meeting the week of Oct. 30, some members also brought up concerns with the approach to devising spending guidance. Anne Constantino, a board member and former CEO of Horizon Health Services in Buffalo, said she was worried that the board’s recommendations were not guided by an integrated, strategic plan from the Department of Health, Office of Addiction Services and Supports and Office of Mental Health.

“Spending is not a plan, spending is something that helps a plan to be achieved,” Constantino said. “I have a very real concern that we’re talking about billions of dollars that are being spent towards no vision or strategy.”

Constantino also called for reporting of metrics that track whether programs that are funded by the settlement funds are successful.

Dr. Chinazo Cunningham, the commissioner of OASAS, said in the meeting that state law requires the agency to come up with a strategic plan every five years, adding that it is in the midst of developing its next plan. She also pointed to state databases that have information on overdoses and spending.

The board updated its recommendations to get more clarity on the state’s strategic plan moving forward.

The new recommendations from the board come as New York City and the state have seen a worsening overdose crisis. Last year, the state had more than 6,300 overdose deaths, more than three-quarters of which involved opioids.

So far, the state has allocated $192.8 million from the opioid settlement funds to local governments and organizations aiming to address the crisis. While the state has allocated all of the funds that became available in the first year of the allocation process, some board members noted that it is still unclear how much of that money has actually been delivered.

The state has 14 days to notify the board once it decides to reject any recommendations, according to Evan Frost, a spokesman for OASAS. The board will have the opportunity to respond to the state after that.

seven less than for the same period in 2022. The NYPD declined to provide Crain’s with the numbers for years prior to 2021.

A lack of transparency has posed a challenge to the city’s mental health system, which is a patchwork of agencies, nonprofits, law enforcement and hospitals. The complex system creates an environment where no central party is considered accountable. Kimberly Blair, director of public policy and advocacy at the National Alliance on Mental Illness of New York City, said the success of the plan hinges on the city sharing data with the organizations it relies on to carry out care to these individuals.

“The public needs data. We need

pitalized, providers have to rebuild their trust, which interrupts care, she said. Without hospitalizations, groups can continue providing continuous care such as Assertive Community Treatment, which offers treatment and peer support to people with serious mental illness, and Intensive Mobile Treatment, where teams provide mental health support and medication to people who have recently exhibited unsafe behaviors.

Brian Stettin, the senior adviser on severe mental illness for the Adams administration, emphasized that he doesn’t expect the directive to cause a major shift in the number of people being hospitalized — and that those types of “removals” are relatively rare.

Stettin also said the directive has been a positive “culture shift.” Before, some people who could have benefited from hospitalization weren’t brought in because they weren’t seen as an immediate threat, he said. Now that law enforcement, clinicians and outreach teams have widened their grounds to include people who seem unable to meet their basic needs, the city’s coordinated behavioral health task force has seen removals happen that would not have previously. More people are getting care, he said.

“We have more people with [serious mental illness] who are getting that extended hospital care that they really need to heal, that it really takes to get somebody on a track to get back into the community,” he said.

The most controversial part of Adams’ plan is the directive on involuntary transportation to hospitals for people who appear unable to meet their basic needs. transparency as a community-based organization. How are we expected to partner with city agencies if we don’t know the data or the trends? We don’t know how to provide that follow-up care,” she added.

Adams’ plan aimed to address the ongoing crisis of untreated individuals experiencing mental illness who have resisted voluntary assistance but pose a danger to themselves, a small but highly visible population. It included additional training for law enforcement, a hotline staffed by Health + Hospitals clinicians to guide police officers who encounter individuals in psychiatric crisis and a directive to law enforcement and emergency medical responders that involuntary transportation to hospitals for people who appear unable to meet their basic needs falls within their purview.

The directive is the most controversial part of the plan. Last year, advocates’ uproar centered around the idea that the directive could take away individuals’ autonomy by forcing them into treatment. Mental illness-focused groups argued that involuntary hospitalization violated New Yorkers’ rights.

The city did not respond to Crain’s requests for how many involuntary transports or hospitalizations have occurred since the directive went into effect last November but a May report from Politico found that H+H had tallied just 38 involuntary commitments at that time.

Anecdotally, mental health experts say they have not seen a major uptick in involuntary hospitalizations.

Jody Rudin, the chief executive officer at the Institute for Community Living, said that’s a good thing.

When a patient is involuntarily hos-

Communication hurdles The plan also took aim at some of the communication barriers between the multitude of organizations that strive to help this population. It included a legislative proposal that would require hospitals to notify known community providers when their clients are admitted or released and collaborate with providers to prepare patients for discharge.

H+H has set up a dedicated email address for each hospital to discuss people involuntarily transported to the facility, Stettin said. When a removal occurs, the hospital has the information the responders share about the person and staff are prepared to meet the patient, according to Stettin. Such communication channels increase the likelihood a patient will be admitted. Admittance allows the hospitals to keep the patient for long enough, prepare them for discharge and connect them with services such as supportive housing.

Historically, information didn’t reach hospital clinicians who made decisions about admitting patients, resulting in a non-admission or quick discharge, Stettin said.

Additionally, hospitals sometimes had little-to-no communication with community providers when their patients were discharged, a practice that has led to disastrous consequences. Without

this communication, outreach teams can lose track of their clients only to have them reappear in critical condition in the hospital.

Another tenet of the plan intended to improve communication between parties has seen less success.

A hotline that was launched, meant to connect police officers encountering individuals who may be experiencing mental health issues with an H+H clinician, had received zero calls as of July according to the hospital system. H+H did not provide Crain’s with updated data.

Budget cuts loom As the ongoing migrant crisis continues to siphon city resources, budget cuts pose another threat to care for seriously mentally ill New Yorkers. In September Adams requested that agencies submit proposed 5% annual budget cuts by November in an effort to rein in spending as the city takes in upwards of 100,000 migrants. The reductions could be as high as 15%, as the next rounds of cuts would come in January and April.

Such cuts could threaten agencies’ ability to provide care to New York’s most vulnerable populations.

Rudin, whose organization has several contracts with the city to operate IMT programs and supportive housing, said the reductions could be “absolutely devastating” for people with serious mental illness if they trickle down to community organizations.

The second phase of Adams’ mental health plan, unveiled in March, focuses on reaching people with serious mental illness before they are in crisis by improving access to care, building out mobile mental health response teams, increasing access to supportive housing and growing capacity at Clubhouses, community facilities where individuals can get support. It is unclear how potential agency-wide cuts could impact the $12 million in new funding for fiscal year 2024 allocated to those initiatives, but advocates agree that shifting to preventative measures could lead to more success.

A long road ahead Going forward, Stettin said the city is focused on legislative priorities such as requiring hospitals to screen psychiatric patients for their need to receive court-ordered care under Kendra’s Law, to ensure more people access treatment.

The city also hopes to restore psychiatric beds at H+H and private hospitals, including those repurposed during the pandemic, and have private hospitals adopt H+H’s communication protocol, he added. However, he said, progress won’t happen immediately and hinges on having community support in place.

“It’s not going to happen overnight,” he said. “We’re trying to reverse decades of systemic neglect. I would ask people to take note that on a small scale, through our coordinated behavioral health task force, we really have made a difference with this culture shift.”

16 | CRAIN’S NEW YORK BUSINESS | November 13, 2023

P016_P017_CN_20231113.indd 16

11/9/23 4:30 PM

U m

By J

A tion rem for cord rese Glo Sch O surv adu thei awa laun just ous dist tive com uals awa with mak

Jona

Pu tha do aro inc ca

to t hav 30% who like

Soc

In 26 r mak soci gau abo Abo mor hea and foun Jo pro sch cou resu he m ed the

ach ents riti-

ndbeess. eant unexsues ved the pro-

risis ces, at to New reproby n in upre%, as ome

genNew ons. sevpertive ould peoss if y or-

ms’ in ople fore acbile inousubhere It is wide n in 4 aladpred to

the oris to heir care more

psyvate purand +H’s ddress and up-

verrect. I that oortask ffer-

Health Care Report

U.S. awareness of 988 mental health hotline remains modest a year after it launched, NYU researchers find

By Jacqueline Neber

Americans’ awareness of the national 988 mental health hotline remains modest and there is room for utilization improvement, according to two new studies from researchers at NYU’s School of Global Public Health and Silver School of Social Work.

One study, published Oct. 31, surveyed more than 5,000 U.S. adults in June of this year about their mental health status and awareness of the hotline, which launched in July 2022. It found that just under half of people with serious and moderate psychological distress — 47% and 45%, respectively — had heard of the hotline compared to about 40% of individuals without distress who were aware of it. About 6% of people with serious distress had used 988, making them 30 times more likely

around its rollout, illustrating New York’s commitment to raising awareness.

In light of this, Purtle emphasized that more work needs to be done in New York and around the country to increase the hotline’s capacity, such as hiring more staff at call centers.

“A lot of states have been delib-

erate and cautious in their marketing about 988 until they get the capacity up, which I think is a really smart move,” he said. “So maybe 50% is good for what we want to see right now. Maybe if it was higher, [such

$

0 deductible plan options?

$

0 copays for 24/7 Virtual Visits?

as] 80%, it’d be too high and people wouldn’t be able to get the help that they’re seeking.”

Going forward, Purtle added, he hopes to see more people with moderate distress reaching

out to the hotline as capacity grows. He aims to do more research into 988 utilization and awareness in the future and hopes the two studies can be useful to state and federal policymakers.

NYU’s School of Global Public Health and Silver School of Social Work are based in Greenwich Village.

You’ll get that. Plus, a $700 earning potential for achieving certain wellness goals.¹ These are just some of the ways an Oxford health plan may help your employees and your business’s bottom line get healthier.

Jonathan Purtle | NYU SCHOOL OF PUBLIC HEALTH

Purtle emphasized that more needs to be done in New York and around the country to increase the hotline’s capacity. to than those who didn’t report having symptoms. However, only 30% of those with serious distress who had called said they were very likely to use the hotline again.

Get started

Contact your broker or visit uhc.com/oxfordnewyork

Social media posts In another study published Oct. 26 researchers analyzed state lawmakers’ posts about 988 on certain social media platforms in 2022 to gauge how states communicated about the hotline to their residents.

About 1,000 legislators published more than 2,000 posts with the heaviest messaging coming in July and September 2022, the study found.

Jonathan Purtle, an associate professor at the public health school who led the research, couldn’t provide specific study results for New York residents. But he mentioned that the state invested a large chunk of funding into the hotline — about $30 million —

Oxford fully insured subscribers can apply for reimbursement up to $200 when completing 50 workouts in a 6-month period (up to $400 per year). Workouts consist of fitness facility visits, physical fitness classes and fitness events. Subscribers may also earn up to $300 annually for completing certain one-time activities and reaching certain wellness goals.

Oxford insurance products are underwritten by Oxford Health Insurance, Inc. This policy has exclusions, limitations and terms under which the policy may be continued in force or discontinued. For costs and complete details of the coverage, contact your broker or Oxford sales representative.

Oxford $0 deductible plans are available for New York-sitused employers and can be paired with either the Freedom, Liberty or Metro network. $0 24/7 Virtual Visit copays apply to all Oxford fully insured plans. Plans sold in New York use policy form numbers: OHINY_SG_GEA_2023 and POL20.OHI.2019.LG.NY. 24/7 Virtual Visits is a service available with a Designated Virtual Network Provider via video, or audio-only where permitted under state law. Unless otherwise required, benefits are available only when services are delivered through a Designated Virtual Network Provider. 24/7 Virtual Visits are not intended to address emergency or life-threatening medical conditions and should not be used in those circumstances. Services may not be available at all times, or in all locations, or for all members. Check your benefit plan to determine if these services are available.

1

B2B EI232427410.0-OXF 8/23 © 2023 Oxford Health Plans LLC All Rights Reserved. 23-2421699-G

November 13, 2023 | CRAIN’S NEW YORK BUSINESS | 17

P016_P017_CN_20231113.indd 17

11/9/23 4:29 PM

Brooklyn construction firm reportedly at center of investigation into Eric Adams’ 2021 campaign

By Eddie Small and Nick Garber

Specializes in luxe condos

Until Nov. 2 KSK Construction was a largely unknown firm outside the cloistered world of New York real estate. Now the company is reportedly at the center of an FBI investigation into Mayor Eric Adams’ 2021 election campaign.

Federal prosecutors are looking into whether the campaign used KSK Construction to obtain illegal foreign donations from the Turkish government, according to The New York Times, citing a copy of the search warrant officials used to raid the home of Adams’ chief fundraiser, Brianna Suggs, on Nov. 2. In total, 11 employees from the company donated $13,950 to the Adams campaign, all on May 7, 2021, in amounts between $1,200 and $1,500, according to city campaign finance records.

KSK’s Brooklyn office was also searched by authorities Nov. 2, CNN reported, citing law enforcement officials.

A representative for KSK reached by phone at the company’s Brooklyn office the morning of Nov. 3 morning declined to comment.

No arrests or indictments have been made related to the searches.

The Williamsburg-based firm was started by former employees of a larger company called Kiska, who left in the early 2000s, according to multiple people in the city’s real estate industry and a 2021 interview company principal Ulgur Aydin gave to the trade publication Construction Today.

KSK was particularly active on Williamsburg projects during the 2000s, when the neighborhood’s now-famous transformation into a pricey hipster enclave was taking root.

“I left Kiska around 2002 to start my own development company in New York City,” Aydin said to Construction Today, “with a focus on developing Williamsburg, Brooklyn — an up-andcoming area in the early 2000s — which I believed to be a massive development opportunity.”

The company specializes in luxury condo projects, and its website lists 39 developments it has worked on, including Williamsburg residential projects the Ikon, the Aurora and the Sevenberry. The firm has long been known as an active player and solid option for running con-

The office of KSK Construction in Williamsburg | BUCK ENNIS

struction projects, according to people in the real estate industry.

“When people told me [KSK was] building a project, I was like, ‘Yeah, that’s who should be,’” said one city developer who requested anonymity due to the investigation. “These were not, like, 30,000-square-foot projects. They were real projects.”

Kiska’s work included replacing

the Third Avenue Bridge and constructing the first section of the High Line, according to the company’s LinkedIn page.

2021 fundraiser KSK may be connected to more than just the $13,950 in donations registered to its employees. A May 2021 fundraiser orga-

nized by Erden Arkan, one of KSK’s owners, netted a total of $69,720 from 84 donors, which Adams’ campaign used to obtain nearly the same amount in public matching funds, the news site The City reported Nov. 2. One of the employees listed as having donated to Adams told the publication that he has no recollection of doing so.

From top talent to top employers, Crain’s Career Center is the next step in your hiring process or job search.

Connecting Talent with Opportunity.

Get started today CrainsNewYork.com/CareerCenter

18 | CRAIN’S NEW YORK BUSINESS | November 13, 2023

P018_CN_20231113.indd 18

11/10/23 3:21 PM

Remote work hasn’t reduced the wages suburban residents earn from New York companies, report finds

By Nick Garber

About 2 million more people are working remotely in the New York City region than before the Covid-19 pandemic — a shift with profound implications for everything from the subway system to the office market. But the trend hasn’t made the city and its suburbs any less dependent on one another, according to a new study.

Indeed, by 2022, residents of New Jersey, Long Island, Connecticut and the Hudson Valley were earning even more money from New York City-based employers than they were in 2019, ac-

“Folks seem to think that Covid and work-from-home trends would mean that the economies of the different parts of the region would move in different directions from each other,” said Tom Wright, the association’s president and CEO. “Instead, just the opposite happened.”

Wage gains Wage increases account for much of those gains — although the benefits have been spread unevenly. From 2019 to 2022, average pay grew by 5.8% for suburbanites who work for New York City employers, compared to 4.6% for people who both live and work in the city.

That’s because the suburban cohort tends to work in high-paying fields like finance and management, the RPA said, while city residents work in industries like retail and hospitality that have still not fully recovered from their pandemic losses.

Some suburbs have also seen more gains than others. Residents of northern New Jersey and southwestern Connecticut who work for city employers saw wage growth of 6.4% and 7.2%, respectively, from 2019 to 2022, compared to 4.5% for Long Islanders and 4.6% for residents of the city.

Still, New York derives some benefit from the rising wages: A

The Regional Plan Association said the findings bolster the case for projects like the Gateway rail tunnel below the Hudson River. cording to the report released last week by the Regional Plan Association.

Those roughly 1 million suburbanites took home an estimated $141 billion from city-based companies in 2022, up from $136 billion in 2019. By last year, New York City employers accounted for 26% of all wages earned by people in the tri-state area outside of the city, compared to 24% pre-pandemic.

By 2022, residents of New Jersey, Long Island, Connecticut and the Hudson Valley were earning even more money from New York City-based employers than they were in 2019, according to a report from the Regional Plan Association. | BLOOMBERG

resident of New Jersey or Connecticut who works remotely for a city-based company needs to pay New York state income taxes. State tax receipts have indeed come in above expectations so far this year thanks to strong wages.

The RPA report relied on 2019 American Community Survey data from the U.S. Census Bureau, with 2022 estimates based on the ACS survey and federal labor data.

The Regional Plan Association, which advocates for transit and

environmental improvements across the New York City region, said the report’s findings bolster the case for projects like the Gateway rail tunnel below the Hudson River and the construction of more housing near transit — both of which would keep the economy humming.

Congestion pricing The findings also boost the case for congestion pricing, which is at

the center of a battle between New York and New Jersey, Wright argued. Although opponents of the tolling plan warn it could hurt the city by deterring people from commuting in, Wright pointed out that a vast majority of suburbanites who work in the city arrive via public transit, which would stand to benefit from the new revenues.

“The most important thing to do is to make sure we have an outstanding transit system to bring them in,” Wright said.

Judge throws out lawsuit challenging Local Law 97

By Caroline Spivack

A judge has thrown out a lawsuit filed by a coalition of co-ops and building owners seeking to block Local Law 97, a win for the Adams administration as officials prepare for the hotly debated building decarbonization law to take effect.

Acting New York Supreme Court Justice J. Machelle Sweeting in an Oct. 30 ruling dismissed the lawsuit against the Department of Buildings that challenged the city’s plan to reduce greenhouse gas emissions with increasingly strict carbon caps on most large buildings starting in 2024. Owners who do not comply will face fines of $268 per every metric ton over their

is especially onerous to owner-occupied co-ops and condos and certain small rental buildings. The plaintiffs also claimed the law was “too vague.”

Justice Sweeting flatly rejected the lawsuit’s arguments.

Adams administration ‘glad’ The plaintiffs, she wrote in her decision, “cannot honestly maintain that they do not understand the conduct Local Law 97 prohibits or the penalties they will face for violations, considering the detailed calculations Plaintiffs made in the complaint about the ‘draconian’ penalties Glen Oaks will incur over the next decade.”

The lawsuit also argued that the state’s Climate Leadership and Community Protection Act, which sets a series of emissions targets for New York, preempts Local Law 97. But Sweeting pointed out that state officials have actively partnered with local governments on climate-friendly measures to help achieve the state’s broader climate targets.

“Rather than identifying any inconsistency or divergence in their

The plaintiffs alleged that the law is especially onerous to owner-occupied co-ops and condos and certain small rental buildings. emission limit.

The suit’s plaintiffs, led by the Glen Oaks Village and Bay Terrace Cooperative Section I co-op in Queens, argued that Local Law 97

Residential buildings in Manhattan | BUCK ENNIS

objectives, New York State has repeatedly expressed its desire and intent to collaborate with the City and other local governments to abate [greenhouse gas] emissions,” Sweeting wrote in her decision.

The Adams administration praised the ruling.

“We are glad to see that the courts rightly dismissed this law-

suit,” Andrew Rudansky, a spokesman for the city’s DOB told Crain’s in a statement. “The Adams Administration is committed to fully enforcing this nation-leading climate initiative in a way that supports building owners who are making efforts to comply with the law, and penalizing those who are not.”

Warren Schreiber, president of Bay Terrace Cooperative Section I, said that the legal team for the coalition of property owners is planning to appeal Sweeting’s decision.

“We’re disappointed; we disagree with the judge’s decision,” said Schreiber. “Our attorneys are planning an appeal, so we’re hopeful that on appeal we can prevail.”

November 13, 2023 | CRAIN’S NEW YORK BUSINESS | 19

P019_CN_20231113.indd 19

11/10/23 2:54 PM

Nominate a general counsel who leads their organization’s legal response.

NOMINATE BY DEC. 1 CrainsNewYork.com/ NotableNoms

CLASSIFIEDS

Advertising Section

Contact Suzanne Janik at 313-446-0455 or email: sjanik@crain.com PUBLIC & LEGAL NOTICES

Notice of Formation of GARANCE - DOULA SERVICES LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/23/23.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to THE LIMITED LIABILITY COMPANY, 11 STUYVESANT OVAL, APT 4E NEW YORK, NY 10009 regd.agent upon whom and at which process may be served.

Purpose: Any lawful activity.

Notice of Formation of WORLDS GREATEST ENTERTAINMENT LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/6/23. Office location: NY County. Princ. office of LLC: 228 PARK AVE S #340569, NEW YORK, NY 10003. 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 SHERMAN TIGER LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 09/26/23.

Office location: NY County. LLC formed in Delaware (DE) on 09/12/23. 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. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

SHE SHED PRODUCTIONS, LLC. Arts. of Org. filed with the SSNY on 06/05/23. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served.

SSNY shall mail copy of process to the LLC, c/o Chapman Consulting, 770 Lexington Avenue, 11th Floor, New York, NY 10065.

Purpose: Any lawful purpose.

Notice of Qualification of RGNMCA PORT JERVIS I, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 09/26/23.

Office location: NY County. LLC formed in Delaware (DE) on 09/25/23. SSNY designated 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. DE addr. of LLC: 251 Little Falls Dr., 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 XPRESS SERVICE SYSTEMS, LLC Arts of Org filed with Secy. of State of NY (SSNY) on 9/25/2023.

Office Location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against to 2266 Fifth Avenue, Unit #584, NY, NY 10037. Purpose: any lawful act

Notice of Formation of Nicol Furniture, LLC Arts of Org filed with the Secretary of State of NY (SSNY) on 8/4/23.

Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 64 E. 111 St. Unit 609, NY, NY 10029. Purpose: any lawful act

Notice of Formation of OUCHA, LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 9/19/23. Office Location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against to ; 101 West 24th Street Apt 21A, NY, NY 10011.

Purpose: any lawful act.

MATTHEW EVAN ROTH, Ph.D., PSYCHOLOGY, PLLC filed Arts. of Org. with the Sect'y of State of NY (SSNY) on 8/18/2023. Office: New York County. SSNY has been designated as agent of the LLC upon whom process against it may be served and shall mail process to: Matthew Evan Roth, Ph.D, 315 Gates Ave, Apt 1B, Brooklyn, NY 11216. Purpose: Psychology.

Notice of Formation of BOUNDLESS IMAGINATIONS, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/11/23. Office location: NY County. Princ. office of LLC: 400 E. 90th St., 12D, 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: Film production.

Notice of Qualification of MUZINICH DIRECT LENDING ADVISER, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 09/28/23.

Office location: NY County. LLC formed in Delaware (DE) on 07/06/23. Princ. office of LLC: 450 Park Ave., 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 122072543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of the State of DE, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity

Notice of Formation of 204 FORSYTH HOLDINGS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/16/23.

Office location: NY County. 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, regd. agent upon whom and at which process may be served.

Purpose: Any lawful activity.

Notice of Formation of KIERAN ANDREW BOTH, ATTORNEY AT LAW PLLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/06/23.

Office location: NY County. Princ. office of LLC: 225 BROADWAY, SUITE 2018, NEW YORK, NY 10007-3739. 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 MHR CONSULTING SERVICES LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/28/23.

Office location: NY County. Princ. office of LLC: 39 Fifth Ave., Apt. 4C, NY, NY 10003. SSNY designated 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

Notice of Formation of SUTTON GROWTH ADVISORS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/12/23.

Office location: NY County. Princ. office of LLC: 20 Sutton Pl S, Apt. 20C, NY, NY 10022. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Andrew J. Byrne at the princ. office of the LLC. Purpose: Any lawful activity

Notice of Formation of WISNIEWSKI PSYCHOLOGY SERVICES, PLLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/26/23.

Office location: NY County. Princ. office of PLLC: 2900 E. Overlook Rd., Cleveland Heights, OH 44118.

SSNY designated as agent of PLLC upon whom process against it may be served. SSNY shall mail process to c/o C T Corporation System, 28 Liberty St., NY, NY 10005. Purpose: Psychology

Notice of Formation of TRESS XPRESS LLC Arts of Org filed with Secy. of State of NY (SSNY) on 3/30/2023. Office Location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against to 2266 Fifth Avenue, Unit #584, NY, NY 10037.

Purpose: any lawful act.

NOTIFICATION OF PUBLIC DISPOSITION OF COLLATERAL

Notice of Qualification of ZENDABLE CARDS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 09/29/23. Office location: NY County. LLC formed in Delaware (DE) on 04/26/23.

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: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

I THINK IN SPACES LLC. Arts. of Org. filed with the SSNY on 1/6/23. Office: BRONX County. SSNY designated as agent of the LLC upon whom process against it may be served.

SSNY shall mail copy of process to the LLC, 4440 Baychester Ave., 1st Floor, Bronx, NY 10466 Purpose: Any lawful purpose.

Notice of Qualification of PALISADE CAPITAL MANAGEMENT, LP Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/17/23.

Office location: NY County. LP formed in Delaware (DE) on 02/08/23. NYS fictitious name: PALISADE CAPITAL MANAGEMENT, L.P. Duration of LP is Perpetual. SSNY designated as agent of LP upon whom process against it may be served.

SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543.

Name and addr. of each general partner are available from SSNY. DE addr. of LP: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808.

Cert. of LP filed with Secy. of State, 820 N. French St., 10th Fl., Wilmington, DE 19801.

Purpose: Any lawful activity.

Notice of Formation of TWELVE BAR, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/14/21.

Office location: NY County. Princ. office of LLC: 930 High St., Fairfield, CT 06824. 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 SPECIAL WICKAPOGUE LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/03/23.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Barnes & Thornburg LLP, 390 Madison Ave., 12 Fl., NY, NY 10017-2509. Purpose: Any lawful activity

PLEASE TAKE NOTICE THAT, for default in payment of a debt and performance of obligations owed by Nicole Gallagher (“Pledgor”) to Churchill Funding I LLC (“Secured Party”), pursuant to Section 9-610 of the Uniform Commercial Code, at 1:00 p.m. (prevailing Eastern Time), on December 14, 2023, at the law offices of Polsinelli PC, 600 Third Avenue, 42nd Floor, New York, NY 10016 and offered virtually via online video conference, Secured Party shall cause the following property to be sold by public auction to the heist qualified bidder: 100% of the membership interests in 2524 Noyack Road, LLC, which is the owner of certain real property located at 2524 Noyack Road, Sag Harbor, New York 11963. The membership interests are being offered as a single lot on an “as-is, where-is” basis with no express or implied warranties, representations, statements or conditions of any kind made by Secured Party or any person acting for or on behalf of Secured Party, without any recourse whatsoever to Secured Party or any other person acting for or on behalf of Secured Party.

Secured Party reserves the right to reject all bids and terminate or adjourn the sale to another time or place or effectuate a private sale instead of a public sale, without further publication, and further reserves the right to bid for the Collateral at the sale and to credit bid by applying some or all of its secured debt to the purchase price.

Interested parties who would like additional information concerning the items to be sold at the sale and the terms and conditions of the sale, including the eligibility requirements to be a qualified bidder, should contact Amy E. Hatch, Polsinelli PC, 600 Third Avenue, 42nd Floor, New York, NY 10016; Tel.: (816) 753-1000; Fax: (816) 753-1536; ahatch@polsinelli.com.

Notice of Qualification of EGMF GP LP Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/16/23.

Office location: NY County. LP formed in Delaware (DE) on 03/11/14. Princ. office of LP: 230 Park Ave., 8th Fl., NY, NY 10169.

NYS fictitious name: EGMF GP L.P. Duration of LP is Perpetual.

SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. Name and addr. of each general partner are available from SSNY. DE addr. of LP: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of LP filed with Secy. of State, State of DE, Dept. of State, Townsend Bldg., 401 Federal St., Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Formation of KINDERBROOK HOME LLC Arts. of Org. filed with Secy of State of NY (SSNY) on 10/11/23.

Office: NY County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, 80 State St., Albany, NY 12207.

Purpose: Any lawful purpose.

Notice of Qualification of RUNNER MUSIC GROUP LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/11/23.

Office location: NY County. LLC formed in Delaware (DE) on 08/16/22. SSNY designated 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. DE addr. of LLC: 200 Bellevue Pkwy., Ste. 210, Wilmington, DE 19809. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity

NOVEMBER 13, 2023 | CRAIN’S NEW YORK BUSINESS | 21

Uber, Lyft settle wage WEWORK theft claims for $328M From Page 1

By Caroline Spivack

Uber and Lyft have agreed to pay New York drivers a combined $328 million to settle claims that the ride-share giants cheated drivers out of pay and benefits, New York Attorney General Letitia James announced Nov. 2.

The payout is the result of a three-year investigation by James’ office into a wage-theft complaint that the companies deducted certain taxes and fees from drivers earnings, which under state law should have been paid by passengers.

Uber will pay $290 million and Lyft will pay $38 million into two settlement funds that will be distributed to roughly 100,000 current and former e-hail drivers eligible to file claims. Both companies did not not admit to wrongdoing in the settlements.

“For years, Uber and Lyft systematically cheated their drivers out of hundreds of millions of dollars in pay and benefits while they worked long hours in challenging conditions,” James said in a statement. “These settlements will ensure they finally get what they have rightfully earned and are

owed under the law.”

The two companies also agreed to provide a minimum base pay starting at $26 an hour to New York drivers along with paid sick leave. Drivers will earn one hour of sick pay for every 30 hours worked, up to a maximum of 56 hours per year.

Companies satisfied Representatives for both rideshare companies said they are satisfied with the settlement.

“We thank Attorney General James and her team for their hard work in delivering a resolution that balances accountability and innovation while addressing the true needs of these hard working drivers in New York,” Uber chief legal officer Tony West said in a statement.

Jeremy Bird, Lyft Chief Policy Officer, described the settlement as “a win for drivers.”

“We look forward to continuing this work in order to provide New York drivers the independence and full range of benefits available to those in other states, like California and Washington,” Bird said in a statement.

CLASSIFIEDS

appear on the list of the 30 largest unsecured creditors included in WeWork’s Chapter 11 petition.

They include Unibail-Rodamco-Westfield, owed $8 million in unpaid rent. RFR Realty is owed $5 million; Sapir Corp., $4.6 million; Cohen Bros., $3 million; and Chetrit Group, $2 million.

None of the landlords replied to requests for comment.

The figures in the creditor list may represent sums owed in the short term and understate the actual amounts owed landlords.

A California landlord listed as being owed nearly $8 million has sued WeWork for walking away from $250 million in long-term obligations at a San Francisco location, for instance.

It will be difficult for landlords to recover everything they’re

It is likely landlords will recoup pennies on the dollar. owed because, under bankruptcy law, their claims aren’t addressed until secured creditors — such as banks or equipment lenders — are paid. It is likely landlords will recoup pennies on the dollar.

The 40 locations whose leases

130 Madison Ave. | BUCK ENNIS

WeWork seeks to terminate are mostly small and unused, a person familiar with the matter said.

Assuming they’re all closed, WeWork’s footprint here would shrink from 6.24 million square feet to 4.67 million square feet, according to calculations for Crain’s made by a top city office-leasing expert.

‘This is hardball’ The firm rents a bit more than 1% of the total office space in the city, so its demise wouldn’t necessarily harm New York financially. But it is a headache for landlords struggling to keep tenants, especially in the older office buildings favored by WeWork, which in its glory days was New York’s No. 1 commercial

tenant — even ahead of JPMorgan Chase.

WeWork has been shrinking its New York presence for several months. As recently as this past summer it rented 6.9 million square feet across more than 70 sites, but several unprofitable WeWork locations have closed.

The firm’s website shows it currently has 47 New York locations, a figure that accounts for the 40 leases it has moved to terminate.

By walking away from so many leases, WeWork is sending a message to an additional 400 landlords nationwide, Haber said: Lower our rent or we’ll move to terminate your lease too.

“This is hardball,” he said. “It’s what bankruptcy is all about.”

Eddie Small and C. J. Hughes contributed reporting.

Advertising Section

Contact Suzanne Janik at 313-446-0455 or email: sjanik@crain.com

POSITIONS AVAILABLE Senior Software Engineer positions (WarnerMedia Services, LLC; NY, NY).

Lead delivery of SW Architecture required to enable effective delivery & scalability of communication platform. May work remotely. Salary range is $142,563/yr $201,000/yr, depending on qualifications. Email resume to GMRI@warnerbros.com. Ref: 7064575SSE2.

Site Reliability Engineer (Citadel Securities Americas Services LLC – New York, NY); Mult. Pos. Avail. Mng large-scale app and infrastruct capacity planning and deplymt. Collab with cross-functional teams, incl trading, quant, and software engr’ing teams, to supp and enhance Citadel's core suite of trading apps with the latest, most cutting-edge tech to proactively diag and resolve prod issues. F/T. Salary range of $220,000 - $260,000/yr.

Resumes: citadelrecruitment@citadel.com. Job ID: 7085344.

Quantitative Researcher (Citadel Americas Services LLC – New York, NY); Mult. Pos. Avail. Assist with the formulation of math and simulation models of complex mkt problems, relating constants and variables, restrictions, alternatives, conflicting objectives, & their num parameters using tech, math & stat modeling, & comp systems. Provide tech & invstmt analytics supp to the trade desks. F/T. Salary range $205,000 to $245,000/yr. Resumes: citadelrecruitment@citadel.com.

Reference Job ID: 7207985.

SHOWCASE INDUSTRY LEADERS AND THEIR CAREERS

SUBMIT YOUR BUSINESS CLASSIFIEDS TODAY

RECOGNIZE TOP ACHIEVERS IN NEW YORK CITY’S PREMIER PUBLICATION New Hires / Promotions / Board Appointments Retirements / Special Acknowledgments

MAKE AN ANNOUNCEMENT!

To place a classified ad, Call 313-446-0455 or Email: sjanik@crainsnewyork.com

Debora Stein / dstein@crain.com CrainsNewYork.com/POTM

22 | CRAIN’S NEW YORK BUSINESS | November 13, 2023

22 | CRAIN’S NEW YORK BUSINESS | OCTOBER 20, 2023 |

P022_CN_20231113.indd 22

11/10/23 4:33 PM

A look at 6 unique buildings where WeWork wants out

W

eWork’s hot streak of a decade ago had it expanding aggressively into seemingly every corner of the commercial real estate market, from Downtown Brooklyn to Times Square, from trendy former warehouses to aging office towers and from soaring block-size buildings to ones just a few stories tall. And it struck deals with a long list of well-known landlords along the way, Brookfield, RFR Holdings and William Gottlieb Real Estate among them. Here, a look at six of the coworking firm’s locations. (The landlords mentioned either couldn’t be reached by Crain’s or declined to comment.) By C. J. Hughes

KEY LOCATIONS

1619 BROADWAY In 2018 WeWork leased five floors at the Brill Building, where Carole King wrote hit songs in the 1960s. In recent years several developers tried to make over the Brill as a more traditional office building. For example, Allied Partners paid $186 million for the 11 story, block-long landmark in 2013 but then lost it to Brookfield in 2017. But Brookfield, too, ran into problems, surrendering the keys to lender Mack Real Estate Group last summer in a deal valued at $216 million, public records show. One major office tenant seems to remain at the site at West 49th Street, Broadway Video, a multimedia company owned by Saturday Night Live producer Lorne Michaels.

229 W. 36TH ST. WeWork took its penchant for offbeat locations to the Garment District, with a berth on the fourth floor of this 12-story, prewar building where clothes were once stitched. Now the company appears to want out. The 151,000-square-foot structure was 86% leased when it was put up for sale last year, according to an ad from JLL. It’s not clear if that figure includes WeWork. In 2013 AR Capital paid $65 million for the building, according to the city register. But Brickman, a Queens-based real-estate investor, is listed as the contact in court filings.

Publisher/executive editor Frederick P. Gabriel Jr. Editor-in-chief Cory Schouten, cory.schouten@crainsnewyork.com Managing editor Telisha Bryan Assistant managing editors Anne Michaud, Amanda Glodowski Director of audience and engagement Elizabeth Couch Audience engagement editor Jennifer Samuels Digital editor Taylor Nakagawa Opinion editor Jan Parr opinion@crainsnewyork.com Creative director Thomas J. Linden Associate creative director Karen Freese Zane Digital design editor Jason McGregor Art directors Kayla Byler, Carolyn McClain, Joanna Metzger Senior digital news designer Stephanie Swearngin Photographer Buck Ennis Notables coordinator Ashley Maahs SENIOR REPORTERS Cara Eisenpress, Aaron Elstein, C.J. Hughes, Eddie Small REPORTERS Amanda D’Ambrosio, Nick Garber, Mario Marroquin, Jacqueline Neber, Caroline Spivack

1 LITTLE W. 12TH ST. 130 MADISON AVE.

In 2011 WeWork opened its third New York location at this former warehouse complex in the Meatpacking District. Exposed-brick walls lined offices, and rowdy brunch spot Bagatelle was downstairs. (It’s now a Lucid Motors showroom.) WeWork lasted at the landmark building, which is owned by major local landlord William Gottlieb Real Estate, until 2021, when it shut down operations there. But WeWork appears to have never officially broken its lease, court documents show. WeWork ripping up leases will cost Gottlieb $4.3 million, according to the filings.

This 1903, midblock, Class B building, a term used to describe older properties with few bells and whistles, has seemed to struggle with vacancies since WeWork’s exit. The vacancy rate of the 19,200-square-foot building is currently just 27%, according to data firm CoStar.

Landlord Walter & Samuels, which bought the NoMad-area property in 2016 for $14.5 million, according to a deed, could potentially be wiped out to the amount of $2.6 million from WeWork’s bankruptcy, filings show, though that’s the take from the company’s lawyers.

Walter & Samuels could argue that its lease there, and breaking it, should cost much more.

WeWork appears to still be operating a similar outpost a block away at 135 Madison Ave.

22 CORTLANDT ST. This 34-story, early 1970s high-rise near the World Trade Center complex had one of a handful of WeWork locations in Manhattan’s Financial District though it now appears closed. Century 21’s flagship store, which reopened in May, is at its base.

The company has leased about 38,000 square feet of the 668,000-square-foot tower, a sprawling two-level column-lined space it gut-renovated.

According to WeWork, the company will walk away from $1.8 million in rent obligations at the site, filings show, though the landlord, an entity controlled

by Brooklyn investor Moshe Drizin, like other owners ensnared in the case, will likely argue that the amount owed by the tenant is much higher. The Class A office building is 97% leased at rents of around $55 per square foot annually, CoStar says.

CrainsNewYork.com President and CEO KC Crain Group publisher Jim Kirk (312) 397-5503 or jkirk@crain.com

BROOKLYN/77 SANDS ST. This former industrial building, owned for years by the Jehovah’s Witnesses, had a WeWork location that appears to have been up and running until fairly recently.

But WeWork’s troubles may have caused financial problems for its landlords. In September the ownership team that includes RFR Holdings and Kushner Cos. defaulted on a $180 million loan for the building and others at the Dumbo site. In 2017, around WeWork’s peak, the ownership group paid $121.3 million to buy out partner Invesco and take control of the four-building complex, according to the city register. The landlords stand to lose $3.1 million in rent at 77 Sands, documents show.

CONTACT THE NEWSROOM editors@crainsnewyork.com www.crainsnewyork.com/staff ADVERTISING www.crainsnewyork.com/advertise Senior vice president of sales Susan Jacobs (312) 649-5492 or susan.jacobs@crain.com Account executives Miriam Dreese, Philip Redgate People on the move manager Debora Stein Classified sales Suzanne Janik, (313) 446-0455 or sjanik@crain.com Sales assistant Ryan Call Inside sales Isabel Foster CRAIN’S CONTENT STUDIO www.crainsnewyork.com/custom Senior director of Crain’s Content Studio Kristin Bull, (313) 446-1608 or kbull@crain.com Crain’s Content Studio manager Sophia Juarez EVENTS www.crainsnewyork.com/events Senior manager of events Michelle Cast Manager of conferences & events Ana Jimenez PRODUCTION Vice president, product Kevin Skaggs Product manager Tim Simpson Production and pre-press director Simone Pryce Media services managers Chris Bard, Nicole Spell CUSTOMER SERVICE customerservice@crainsnewyork.com or (877) 824-9379 Director, reprints & licensing Lauren Melesio, (212) 210-0707 or lmelesio@crain.com

Crain’s New York Business is published by Crain Communications Inc. Chairman Keith E. Crain

How much WeWork owes some of the city’s biggest landlords

By Eddie Small

WeWork’s list of its 30 largest unsecured creditors reads like a who’s who of the city’s major office landlords.

The firm, which filed for Chapter 11 bankruptcy protection Nov. 6, owes millions in unpaid rent, lease termination fees and other expenses to prominent landlords including RFR, the Chetrit Group and Brookfield, according to the filing. It is extremely unlikely that any of the landlords will be able to collect anything close to the amounts of money listed in the filing, dealing another blow to an already fragile office market.

The real estate firms on the company’s list of creditors and the amounts they are owed include: Unibail-Rodamco-Westfield: about $8.2 million in unpaid rent RFR Realty: about $8.1 million in unpaid rent Sapir Corp.: about $4.6 million in unpaid rent and related litigation William Gottlieb Management: about $4.3 million in unpaid rent Beacon Capital Partners: about $3.5 million in unpaid rent and lease termination fees

Jamestown: about $3.3 million in lease termination fees Brookfield: about $3.1 million in unpaid rent and lease termination fees Cohen Bros.: about $3 million in unpaid rent and lease termination fees Nuveen: about $2.9 million in unpaid rent Walter & Samuels: about $2.6 million in unpaid rent CIM Group: about $2.1 million in unpaid rent The Chetrit Group: about $2 million in unpaid rent Allied Partners: about $1.8 million in unpaid rent Meringoff Properties: about $1.7 million in unpaid rent WeWork also owes Cushman & Wakefield about $2.5 million in trade debt, the filing says.

All of other the firms listed above either declined to comment or did not respond to a request for comment by press time.

Cushman referred to remarks CFO Neil Johnston made on its latest earnings call, when he said the impact of a WeWork bankruptcy would be “not material to the overall company.”

C. J. Hughes contributed reporting.

Vice chairman Mary Kay Crain President and CEO KC Crain Senior executive VP Chris Crain Chief Financial Officer Robert Recchia G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) Editorial & Business Offices 685 Third Ave., New York, NY 10017 (212) 210-0100 Vol. 39, No. 40 Crain’s New York Business (ISSN 8756-789X) is published weekly, except for no issue on 1/2/23, 7/3/23, 7/17/23, 7/31/23, 8/14/23, 8/28/23 and the last issue in December by Crain Communications Inc. at 685 Third Ave., New York, NY 10017-4024. Periodicals postage paid at New York, NY, and additional mailing offices. © Entire contents copyright 2023 by Crain Communications Inc. All rights reserved. Reproduction or use of editorial content in any manner without permission is prohibited. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement.

Subscriptions: Print+Digital $140/yr. For subscriber service call 877-824-9379. (GST No. 13676-0444-RT) Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2732.

November 13, 2023 | CRAIN’S NEW YORK BUSINESS | 23

P023_CN_20231113.indd 23

11/10/23 4:36 PM

H E A LT H CA RE

NOVEMBER 15 | 9–11AM

180 CENTRAL PARK S.

F I RES I D E C H AT TO P I C

The Mental Health Crisis in NYC F I RES I D E C H AT S P E A K E R

Dr. Ashwin Vasan Commissioner The New York City Department of Health and Mental Hygiene

PA N E L D I SC USS I O N

Insights and Best Practices on Supporting Mental Health in the Workplace

L E E A N N E P. E N G E LS *

G A RY R . B E A RD,

M SW, LCSW - C, 6 S I G M A M B B * VP Talent Strategy and Employee Wellbeing, Director of Behavioral Market Human Resources and Services Insights & Strategy Cigna Cigna HealthCare – Solutions & U.S. Commercial Markets *Sponsored Speaker

PRESENTING SPONSOR:

REG I ST E R N OW : CrainsNewYork.com/ForumEvent