Crain's New York Business, December 4, 2023 by crains-new-york-business

CRAINSNEWYORK.COM I DECEMBER 4, 2023

Proposed congestion toll aims to ‘satisfy the many, not the few’ A panel recommends a charge of $15 for some drivers entering Manhattan By Caroline Spivack

The mutual civility between Gov. Kathy Hochul and Mayor Eric Adams has been a relief to political insiders, but hasn’t produced any significant relief from New York’s affordability crisis. | GOVERNORKATHYHOCHULOFFICE/FLICKR

TWO YEARS IN, HOCHUL AND ADAMS’ PARTNERSHIP

ONLY GOES SO FAR The mayor and governor are mostly aligned on issues, but slumping support points to difficulty ahead | By Nick Garber When Gov. Kathy Hochul and Mayor Eric calm — and the centrist economic policies — Adams ascended to their posts almost simul- ushered in by the Hochul-Adams era. But their mutual civility has not taneously two years ago, hopes resulted in any major relief from were high about what a new spirit ADAMS’ New York’s affordability crisis, of collaboration would mean for a tenure has which residents have ranked as the city and state whose prior leaders featured more state’s biggest problem. That, along resented each other bitterly. radical ups and with a ceaseless migrant crisis and Two years later, Adams and Hodowns than the looming budget gaps — plus the chul have much to be happy about: wild card of Adams’ personal scanCrime in the city is mostly down, governor’s. dals — could put limits on the pothe pandemic recovery has slowly litical legacies that both leaders continued, and hopes that the two would work well together have been largely hope to achieve. “This partnership hasn’t really paid off for borne out, insiders say. Business groups in particular seem to be relishing the relative working New Yorkers who are still struggling

with high rent and flat wages and the lack of childcare options,” said Jasmine Gripper, co-director of the progressive Working Families Party. This time in 2021, both were riding high: Adams had just been elected mayor, while Hochul had assumed the governorship a few weeks earlier after the resignation of Andrew Cuomo. Early polls showed both enjoying solid support — especially Adams, whose approval stood at 61% two months after taking office. Their unpopular predecessors, Cuomo and Bill de Blasio, had feuded for years, and many in the political world were relieved by the fresh faces. That has changed. A Marist College poll last month showed both political leaders See PARTNERS on Page 19

Drivers heading into Manhattan may soon face a $15 charge as part of a long-awaited plan to reduce congestion on New York City’s busiest streets, according to proposed tolls released on Nov. 30. The Traffic Mobility Review Board tasked with crafting the tolls has recommend that most drivers be charged $15 once a day to enter Manhattan below 60th Street between 5 a.m. and 9 p.m. on weekdays and 9 a.m. to 9 p.m. on weekends. The program, which could be in place as soon as May, is poised to make New York the first U.S. city to join the likes of London, Stockholm and Milan in tolling drivers to reduce gridlock and air pollution and encourage the use of mass transit. Congestion pricing is anticipated to collect $1 billion in annual tolls that the Metropolitan Transportation Authority would See GRIDLOCK on Page 22

A Manhattan street clogged with traffic | BUCK ENNIS

GOTHAM GIGS A digital marketing executive blends music and visual arts to help brands tell stories. PAGE 23

P001_CN_20231204.indd 1

WHO OWNS THE BLOCK A big affordable apartment project is planned for a hard-hit part of the Bronx. PAGE 4

CHASING GIANTS Not your parents’ parenting advice. PAGE 3

12/1/23 5:21 PM

Mount Sinai Health System names its chair of emergency medicine as next chief executive

EVENTS CALLOUT

Dr. Brendan Carr, appointed after a nationwide search, will take over effective early next year By Jacqueline Neber

DEC. 5 POWER BREAKFAST Join us for a live interview with James Whelan, president of the Real Estate Board of New York. We’ll discuss the outlook for real estate in 2024, how to jumpstart more affordable housing, the impact of regulations including Local Law 97 and the implications of the city’s slow but steady return-to-office.

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

Correction ◗ In the story “This Boston-based

construction firm is betting big on New York” published in the Nov. 27 issue, Aeran Doron’s name was misspelled.

Dr. Brendan Carr will be Mount Sinai Health System’s next chief executive, effective early next year, the health system announced Nov. 20. Dr. Kenneth Davis, Mount Sinai’s current chief executive, has been elected executive vice chairman of the Mount Sinai boards of trustees of the system in an ap-

led local and regional initiatives to improve its emergency and critical care capacities while running emergency medicine.

Previously at Penn Carr will be responsible for charting Mount Sinai’s future and overseeing all strategic and operational areas for the system including its eight hospitals, more than 400 ambulatory locations and physician practices and the Icahn School of Medicine at Mount Sinai. He will report to the boards of trustees. Prior to joining Mount Sinai, he was on the faculty of the Perelman School of Medicine at the University of Pennsylvania and served in the U.S. Department of Health and Human Services in roles focused on bettering trauma and emergency care throughout the nation. Richard Friedman and James Tisch, co-chairmen of the boards of trustees, said in a release on the appointment that Carr’s work will

Sinai says Carr played a critical role in shepherding the system through the Covid-19 pandemic. pointment that will also go into effect early next year, according to the health system. Carr, who joined Mount Sinai as its head of emergency medicine in February 2020, was appointed after a nationwide search for a new CEO. According to Sinai, he played a critical role in shepherding the system through the pandemic and

Dr. Brendan Carr | MH COMPOSITE/MOUNT SINAI HEALTH SYSTEM

help Sinai continue to provide quality care through education, research and outreach into the diverse communities it serves. Davis became the chief executive officer and president of the Mount Sinai Medical Center in 2003. He has seen Sinai through decades of change including the formation of the current system in

2013 and, most recently, the planned closure of Sinai’s 16th Street Beth Israel campus. “With Brendan and our existing leadership team, I know the system is in the right hands as we continue to serve New York with the exacting precision and immense passion that are the hallmarks of Mount Sinai,” Davis said.

SOLVING THE

GREATEST

CHALLENGES

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

IN HEALTHCARE MORE EXPERTS. DEEPER INSIGHTS. NEWER BREAKTHROUGHS. 2 | CRAIN’S NEW YORK BUSINESS | December 4, 2023

P002_CN_20231204.indd 2

12/1/23 4:45 PM

CHASING GIANTS

Cooper Parenting is co-founder Gabby Slome’s second startup. She also co-founded Ollie Pets, the fresh pet food startup, in 2015. | BUCK ENNIS

This startup’s coaching service is not your parents’ parenting advice Flatiron-based Cooper Parenting offers online access to licensed experts and support groups The upstart: Cooper Parenting

question about taking away her daughter’s pacifier as a punishment, the expert shared a more appropriate strategy based on what a two-year-old’s brain can actually process, she says. Cooper, which launched in June with $2 million in Seed funding, has 15 employees. The company would not disclose its revenue or membership count.

or baffled parents seeking child-rearing advice, there are seemingly unlimited options—from the nosy neighbor and the pediatrician to Facebook groups and the local moms meetup. But too often, say startup cofounders Ariel Boorstin and Gabby Slome, the advice is irrelevant, laden with judgment, comes with a hefty price tag or The reigning Goliath: Meta just plain wrong. Their new company, Flatiron-based Cooper Parenting, ofMenlo Park, Calif.-based Meta hosts thousands of parent fers online access to what they say is superior parenting ex- groups serving roughly 100 million moms and dads. The pertise, starting at $49 a month. company reported $116.6 billion in revenue in 2022. The main feature offered to members is inclusion in a “Coop Group,” —a small community of parents, How to slay the giant typically a dozen or fewer, who have children of similar age. When co-founders Boorstin and Slome met in a The Coops meet online every month for a Chelsea parenting group in 2017, they were both 75-minute talk with a licensed parenting expert busy executives tending infants. Slome was leadwho guides them through an age-based parenting ing Ollie Pets, the fast-growing fresh pet food startcurriculum, leads a discussion and addresses conup she co-founded, and Boorstin was head of globcerns. These experts typically have PhDs in childal marketing for bottled water company Voss. hood development, years of clinical experience and They shared a frustration with the existing ophave been trained to run group discussions. tions for parenting advice. Help from online foAnne Kadet Membership also includes access to Cooper exrums or their community was typically based on perts during twice-weekly “office hours” to answer anecdote and opinion. Pediatricians were hard to quick questions, along with participation in the Cooper par- reach, and parenting coaches charged high rates. “We beent community, a 24/7 online chat that is moderated by the came a little bit obsessed, with like, ‘How do you solve for experts to ensure parents don’t provide each other errone- this stuff?’” says Boorstin. ous information — or get into verbal scuffles. The two started planning their startup in the summer of Members can also schedule one-on-one, 30-to-60 minute 2021. The time was right, says Boorstin, because people beconsultations with Cooper experts starting at an additional came more accustomed during the pandemic to connect$75 per session. ing with experts and peers online. The platform also hosts live online workshops with guest The first task was to create a team of parenting experts experts addressing topics such as “Understanding and Man- and build a curriculum. “We did a ton of scouring on Linkeaging Picky Eating.” dIn and social media, along with using our own network of Cooper member Stefany Elliot, a mother of two in Lake people we met on the parenting journey to make recomHopatcong, N.J., says she visits the platform several times a mendations,” says Slome. week. While she’s got plenty of friends and three sisters who Convincing experts to join the team took time, but they are eager to provide advice, she loves the fact that everyone generally understood the vision from the get-go, and why in her Coop Group has children of similar age — they’re all there might be strong demand for the service, says Slome. dealing with potty training and temper tantrums. “We’re all Convincing investors was another story. While Slome had a in the throes of those things together,” she says. proven startup track record with the success of Ollie, many Elliot also likes that her designated expert provides advice venture capitalists couldn’t understand why parents would based on research, rather than opinion. When she had a pay for a service like Cooper. When the co-founders asked

these male VCs how they answered questions around parenting, the typical response was, “I don’t know, my wife does that.” They built a strong case for their business model, showing comparisons with similar online membership platforms offering community and expertise, such as the Young Presidents Organization for chief executives and Tempest, a platform for addiction recovery. “There are a lot of companies that have really done well on the subscription model,” says Jesse Morris, general partner at Difference Partners, which participated in the Seed round. “Is there a world where every new parent, instead of joining a Facebook group, joins a Cooper group? That’s how we were thinking about this.” The co-founders learned a lot from the beta operation they launched with friends, family and others in their network. While the model originally focused on the monthly Coop Group meetings and online events, members said they wanted more access more often. This led to the creation of office hours and the 24/7 chat community. The co-founders also cut the frequency of online events, finding it was too hard to plan and effectively promote more than one a week. Much of the marketing is done online through Instagram and keyword ads. While the team originally focused on a wellness-for-parents pitch, this had the platform inadvertently competing with other wellness options like meditation and fitness classes.

The next challenge To grow its membership and serve existing customers as their children age, Cooper, which now serves parents of offspring up to age ten, is expanding its curriculum to include parents with children up to age 18. It will also expand by offering Coop Groups focused on niche concerns such as parents of children with ADHD, or parents who home school, notes Morris. Either way, the team is thinking big. “We want to be a household name,” says Slome. “So when people are getting ready to have a child, it’s, ‘Okay, what are the basic things I need? I need a crib, I need a stroller, I need a car seat, and I need Cooper.’” Anne Kadet is the creator of Café Anne, a weekly newsletter with a New York City focus. December 4, 2023 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20231204.indd 3

12/1/23 5:17 PM

WHO OWNS THE BLOCK

521 E. TREMONT AVE., BRONX

A hard-hit part of the Bronx may see one of the year’s biggest residential developments A prolific builder of affordable housing is planning a 213-unit apartment complex in East Tremont

residential project that is on track to be one of the largest of 2023 is the latest sign of interest in a long-struggling stretch of the Bronx. Mega Development, a low-key but prolific builder of affordable housing, is planning a 213-unit all-affordable apartment complex in East Tremont, a neighborhood near the rumbling Cross Bronx Expressway that appears to have struggled since around the time the borough’s municipal offices left in the 1930s. In October, Mega filed permits for the 14-story, 212,000-square-foot project that would rise from a mash of parking lots and commercial buildings, including 521 E. Tremont Ave., a three-story structure containing a pizzeria and shops. As of late November, Mega had not yet filed demolition permits. But Department of Buildings records indicate the plan, which also features ground-floor retail space and a community facility, plus a design by highend firm SLCE Architects, continues to wind its way through the approval process. Emanuel Kokinakis, who handles development for the three-decadeold, Queens-based Mega, said he’s “still uncertain about exact timing” and otherwise declined to comment on the project until it’s further along. Adding such a splashy new project to an area bedeviled in recent years by poverty, drugs and crime will likely not reverse its decline overnight. Indeed, the changes in East Tremont are gradual and have been playing out over years. But the fresh attention to a neighborhood that was once the beating heart of the Bronx’s government and that later bustled with printing plants, lumber yards and machine shops is noteworthy. That interest includes another bet by Mega in the form of the Wilfrid, a stylish all-affordable complex spanning an entire city block that opened in 2020. Similarly, developer Pistilli Management recently converted a portion of a prewar apartment building at East Tremont and Third avenues into offices in an apparent wager that an area next to a major highway has potential as a business district again. And Mastermind, a local firm owned by a family from Puerto Rico, continues to break ground on large-scale projects in the area. Mega’s latest plan stands out because development has been so sluggish in New York this year. The city will likely produce 10,000 units of new housing in 2023, far less than the 50,000 annual units envisioned by Mayor Eric Adams to deal with a supply crunch. In fact, about the only residential development of East Tremont’s scope so far seems to be a proposal by Brause Realty for a condo project on Second Avenue in Manhattan’s Murray Hill, and even that will have only 157 units.

521 E. TREMONT AVE. Astoria, Queens developer and contractor Mega Development is planning a 14-story, 213-unit affordable project on this site, home to a prewar mixed-use building, and several adjacent properties. An environmental study commissioned by Mega found that a printing plant was based at No. 521 for years. Flying so far under the radar as to be almost invisible, Mega has nevertheless been notably active with taxpayer-subsidized, affordable-housing projects for which it teams up with other companies. Recent plans include a 135-unit apartment house for seniors at a vacant site on 31st Street in Astoria and Park Edge, a project for a similar population on a city-owned parking lot in Brooklyn’s Prospect Heights. But Mega has also occasionally dabbled in market-rate offerings like Fabric Astoria, a mixed rental and condo project on 46th Street that is slated to open next year. It was one of the last projects to take advantage of the 421-a tax break before the state credit expired in June 2022.

516 E. TREMONT AVE. Government agencies are still helping to keep the office-leasing market afloat. Indeed, this 51,000-square-foot office building, called Tremont Park Plaza, is home to the Bronx traffic-enforcement section of the New York Police Department as well as a division of the Department of Education. Mastermind Development, a family-owned firm that claims to be the “most active privately held real estate development company” in the Bronx, has controlled the four-story prewar structure since 2001, according to the city register. Jose Perez, a native of Puerto Rico, is Mastermind’s CEO, though Radame Perez, a founder of the Bronx’s Hip Hop Museum, typically handles operations. A recent nearby Mastermind project is Tremont Renaissance, a towering 255-unit retail-and-affordable-housing complex at 431 E. Tremont Ave. where a bank-turned-nightclub stood previously.

1880 BATHGATE AVE. This massive site, which extends to Third Avenue, has housed a succession of industrial firms through the years, including a lumberyard, a glazing business and Abco Steel Door, which occupied three low-slung warehouses from 1980 to 1993, historical records show. Today, in perhaps the greatest show of East Tremont’s evolution, the site sports the Wilfrid, an eight-story mixed-use complex that opened in 2020. Arrayed across the development’s two sections are 190 studios to three-bedrooms reserved for those making between 40% and 110% of the area median income; apartments at the time of the opening started at $462 a month. There’s also 22,000 square feet of retail space, much of which appears vacant. Mega Development, an affordable housing firm, appears to have developed the site in partnership with a longtime owner from the Abco days. The city’s Housing Development Corporation provided $78 million in financing for the project, according to the city register.

535 E. TREMONT AVE. This four-story Beaux-Arts-style building once offered apartments but after a makeover now contains a dozen office spaces, some with views of Gladwin Park across the street, online listings show. Queens-based development firm Pistilli Management purchased No. 535 from San Francisco-based housing landlord Prana Investments in 2015 for $3 million. Pistilli, which is headed by brothers Joe and Tony Pistilli, acquired the site as part of a $55 million purchase of five Bronx apartment buildings from Prana, according to news reports. Retail businesses crowd No. 535’s sidewalk-level spaces. One of them, the Quiet Bar Restaurant, opened in 2019, according to its liquor license, but does not seem to have made it out of the pandemic.

1910 MONTEREY AVE. This 6-story, 110-000 square foot office building appears to date to around the time when East Tremont was the civic center of the Bronx. Though the borough president today presides near Yankee Stadium, the government still has a presence in this neighborhood as well. The city’s Human Resources Administration leases much of No. 1910, which also goes by 555 E. Tremont Ave. A job training center is located inside; those in need can also collect Supplemental Nutrition Assistance Program food benefits at the site. Among New York’s boroughs, the Bronx struggles with the highest poverty rate, which was more than 26% in 2021 versus 18% citywide, according to New York University’s Furman Center. Feinberg Properties, which appears to have owned the L-shaped corner site for decades, borrowed $6 million against the property from JPMorgan Chase in 2017, records show.

537 E. TREMONT AVE. Riverdale-based Sopher Group is the landlord of this modest single-story brick retail complex, which counts a pawnshop among its four occupied berths. Founded by the husbandand-wife real-estate investment team of the late Marilyn and Morris Sopher, the company began snapping up retail properties in the Bronx in the 1970s, the “Bronx is burning” era when many landlords were rushing to get out. Morris died in 1998, while Marilyn passed away in 2020. Operated by children Barbara and Jonathan Sopher today, Sopher Group owns and manages 40 mostly-retail properties, representing 300,000 square feet, across the Bronx and Upper Manhattan, according to a profile on the listing service LoopNet. Similar Sopher-owned Bronx retail properties include 4159 White Plains Rd. in Wakefield and 5652 Mosholu Ave. in Riverdale.

WALTER GLADWIN PARK The Morris family (namesake of the Bronx’s Morrisania neighborhood) once owned this 15-acre rock-outcrop-studded site, which was part of a vast farm. The Morris’ later conveyed the land to the family that managed the property, the Bathgates. Alexander Bathgate then sold the acreage to the city to allow it to develop the property as a park that was a companion to the larger Crotona Park nearby. In 1897, Bronx officials constructed an ornate Italianate edifice on a prominent ridge in the park’s northwestern corner to serve as the area’s seat of governmental power. Arriving two years later was a winding stone staircase that aimed to create a dramatic approach, according to a Parks Department history. But when the city’s 1898 consolidation subsumed the Bronx and turned it into a dependent borough, relocating its political leaders closer to Manhattan may have seemed like a better idea. Soon after, the borough’s government packed up for East 161st Street, relocating into a monolithic building doubling as a courthouse that still stands today. The former borough hall, meanwhile, hung on as a marriage bureau before succumbing to a wrecking ball in 1969. Only the grand staircase remains. Long called Tremont Park, the greenspace became Walter Gladwin Park in fall 2020 in honor of the Bronx’s first Black elected official, a Guyanese immigrant who became a state Assemblyman in 1953.

BUCK ENNIS, GOOGLE MAPS

By C. J. Hughes

4 | CRAIN’S NEW YORK BUSINESS | December 4, 2023

P004_CN_20231204.indd 4

12/1/23 3:22 PM

Empire State Building still sees low visitor count By Aaron Elstein

Chef-owner Solomon Halim hopes Mori will attract diners with a low price point and an offbeat menu. | BUCK ENNIS

Fast-growing spots for omakase sushi are appetizing for retail industry The high-end eateries are popping up in storefronts across Manhattan By C. J. Hughes

They may be minuscule — rooms in some cases fit no more than eight customers — but omakase-style Japanese restaurants seem to be giving the retail landscape a big boost. In the past few years, nearly two dozen of the intimate, multicourse sushi joints, at which the chef chooses the courses, have begun filling up empty storefronts, from Chelsea to Hell’s Kitchen to Harlem, and especially in the Village. And the trend got a high-profile bump last month (though perhaps unfavorably so) when a Midtown omakase hot spot became linked to a federal corruption investigation tied to Mayor Eric Adams. After a slow stretch of retail leas-

rants don’t require the same kinds of space-hogging stoves and other equipment that other eateries do. “They’re basically plug and play.”

Low profile

Passersby might have a hard time picking out a place that offers omakase, which roughly translates to “leave it up to you.” Prized for their clubbiness and low profile, the often-windowless eateries can be tucked inside a different restaurant, such as the 10-seat Coral that opened in October inside Point Seven at the MetLife Building at 200 Park Ave. Others can seem practically rundown from the street, like Yoshino, a 10-seat offering at 342 Bowery whose sign is the size of a paperback and whose door is a riot of graffiti. Occupying a space that once held a Subway sandwich shop before becoming vacant for years, Yoshino, which opened in — James Famularo, president, Meridian Capital Group September 2021, does not come cheap, at more than ing, a sluggish period that preced- $600 a head. Indeed, though the ed the pandemic, the recent inter- omakase boom may be benefiting est from a once-obscure kind of the real estate industry, the prices international cuisine is welcome, of its precisely sliced fish can seem according to landlords and bro- tailored to the city’s 1%. But praise has rolled in. Michelin has awardkers. “This is a breath of fresh air for a ed Yoshino a star, and The New lot of landlords,” said James Fam- York Times gave it a rare four-star ularo, a president at the brokerage plug. No. 342, meanwhile, a 4-story, Meridian Capital Group, who has installed about a half-dozen tenement-style building once omakase eateries in the last year owned by artist Andy Warhol, sold and a half, including his latest, Yo- through an auction for $3.6 million kox in Alphabet City, in October, to a shell company called Rainton. Similarly presenting a speakand has four other deals in the easylike front to the street is Bar pipeline. “And they are really easy tenants Miller, a new eight-seat offering at in a lot of ways,” said Famularo, 620 E. Sixth St. near Avenue C. Ocwho added that raw-fish restau- cupying half of the retail space in a

“When somebody gets hot on an idea, they want to go, go, go.”

building owned by Long Island-based ADRE Real Estate, which paid $11.3 million for the site in 2015, Bar Miller has leased a location that previously served sushi. But Bar Miller’s 15-course, $250 meal may break the mold a bit. In addition to the restaurant’s westernized name, it serves cider, for instance. Choosing an out-of-the-way location may add a cool cachet while also saving on rent. Omakase-esque Noksu, a 13-seat offering that opened this fall, is under the Martinique New York on Broadway hotel inside a former barber shop reached by a West 32nd Street subway entrance. Along the same lines, Joji, the restaurant tied to the Adams investigation, is hidden away in the lower level of Midtown skyscraper 1 Vanderbilt, reached along a flagstone path lined with ferns and bonsai trees near an entrance to Grand Central. Joji’s landlord is a team led by SL Green Realty, a major donor to Adams. As part of the probe, investigators want to know if Adams fast-tracked permits to benefit groups that gave money to his 2021 campaign. Adams reportedly expedited a Fire Department inspection at Joji so SL Green could quickly open it by September 2022. Meals there are $375 a head, excluding sake.

Affluent image Omakase restaurants have been associated with platinum-card pricing since perhaps pioneering Sushi Nakazawa debuted at 23 Commerce St. in 2013. But the list of diners that want to shell out huge bucks for cuts of abalone may be somewhat limited. Sushi

Ginza Onodera, which operated out of an intimate space at SL Green-owned 461 Fifth Ave. and charged $450 for a 20-course dinner, shuttered in August after a seven-year run. Mori, a new SoHo offering, thinks omakase can shake off its affluent image. “We’re going to be different,” said Solomon Halim, the chef and owner of Mori, which will open this month in a narrow berth at SoHo’s 144 Sullivan St. “Most omakase restaurants offer a combination of just rice and soy sauce and fish, but we’re not going to be that clean,” Halim added, laughing. Similarly, Mori’s 16-course offering that includes dessert will be $120, according to Halim, about half of what some rivals charge. Mori’s 500-square-foot space, which is owned by the Lavian family, had been empty for about a decade. Similarly, Yokox, located at 41 Ave. B, appears to be one of the only commercial tenants other than a day care center to exist in the 900-square-foot space since its building opened decades ago. Landlord K&R Realty Management, which declined to comment, had been listing the storefront for $120 per square foot annually, or about $9,000 a month. Still, the rise of omakase, which seems to be dovetailing with a renewed interest from Japanese investors in city real estate, may be nearing a peak, brokers say. “Sometimes I say to myself, how will all this be sustainable?” said Famularo, who has previously watched trends like pizza joints, poke restaurants and frozen yogurt stands come and go. “But when somebody gets hot on an idea, they want to go, go, go.”

International visitors to the Empire State Building observatory remain around half that of pre-pandemic levels, according to an analyst report, a signal that tourism still hasn’t fully recovered even though the streets are once again filled with out-of-towners slowly walking four abreast. The observatory is rated the No. 1 tourist attraction in the nation on TripAdvisor and this year 1.3 million overseas visitors are expected to visit, according to analyst Steve Sakwa of securities firm Evercore ISI. Prior to the pandemic the figure was 2.5 million. Sakwa described the data as “one of the talking points” in a recent meeting with Empire State officials. Although fewer are buying tickets to the top, the cost of an adult ticket to the top floor reaches $79, twice the price from four years ago when the highest observatory was closed for renovation. The observatory is expected to generate just under $100 million in earnings for 2023, almost the same as in pre-pandemic years.

Tourism recovery Anthony Malkin, CEO of Empire State Realty Trust, said traffic would have been even better if the weather had cooperated. “We could have done without four consecutive rainy weekends in September,” he said on a conference call in October. Overall, tourism in New York has snapped back strongly, with hotel rates running averaging nearly $400 a night or 27% above 2019 levels, according to CoStar. But a full comeback is held back by the lack of Chinese visitors. Fred Dixon, CEO of NYC & Co., the city’s marketing arm, told travel-industry publication Skift in August that Chinese remain “the missing piece.” China’s borders are open but the government has limited group tours everywhere. Chinese tourists were among the biggest spenders in New York, shelling out an average of $3,000 per person in 2019, more than twice that of Europeans, according to the state comptroller’s office. NYC & Co. has forecast the city will get 63.3 million visitors in 2023 and exceed 2019’s 66.6 million next year. As for the Empire State Building’s observatory, management expects it will produce up to $96 million in net operating income this year, just $2 million shy of 2018’s haul. December 4, 2023 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20231204.indd 5

12/1/23 3:44 PM

ON POLITICS

Cuomo’s mayoral schemes won’t take him far The disgraced former governor’s dream of a City Hall comeback would die at the hands of ranked-choice voting

First, he’d have to move from ndrew Cuomo is apparently Westchester County, where he’s dreaming of City Hall. The disgraced former long resided. He has until Election governor is polling his prospects Day 2025 to do that, and moving for a mayoral campaign in 2025, wouldn’t be too much of a chalwhen he could face, among sever- lenge. His Queens roots would alal Democrats, the embattled Eric low him to talk up the challenges Adams. Cuomo very badly wants of New York City, even as he often back in the political game and neglected the five boroughs for the mulled running against Kathy Ho- suburbs and western New York when he was governor. chul last year. The strengths of a CuoHis remaining allies mo comeback campaign want him to run for office are clear. Many Demosoon, believing New York crats have moved on, but misses his expertise, neva few do buy his aggrieved er mind the credible sexnarrative that he was railual harassment and asroaded by Letitia James, sault allegations that the state attorney general, drove him from office in who is also loathed by an2021. Cuomo is still faother egomaniac from mous, liked by some Queens, Donald Trump. Democrats, and could Ross Barkan Some voters are nostalgic conceivably tap old labor and business friends to make a se- for the Cuomo of 2020, who gained fame for his press briefings in the rious run in a few years. Adams, facing down a federal early months of the pandemic. Cuomo has been visiting Black investigation into his 2021 mayoral campaign, has been embroiled churches and retains some popuin long-running legal trouble. His larity in outer-borough, workold Buildings commissioner, in an ing-class neighborhoods. Against unrelated bribery investigation, Adams, who is Black, that kind of has already been indicted. A wom- advantage wouldn’t manifest itan in a lawsuit even accused Ad- self. But if Adams weren’t on the ballot, Cuomo could make a run at ams of sexual assault in 1993. Last month, a new Marist poll those votes. And then there’s the money: a showed just how unpopular Adams has become: Just 37% of New state bank account with more than Yorkers approve of the job Adams $5 million left over that could be, has done, while 56% disapproved. in theory, plowed into a mayoral It’s plausible these numbers will campaign. Before Melissa DeRosa and her worsen over the next year. Does this create an opening for ilk spike the football, though, the Cuomo? Could he ride a wave of obvious drawbacks of a Cuomo campaign must be explained. Adams discontent to City Hall?

The large segment of left-leaning Democrats who never liked Cuomo much but tolerated him for a decade won’t want to vote for him again. Progressives despise him, and wealthier moderates would prefer more technocratic candidates who didn’t drown in a scandal. If Adams were ever damaged enough to convince Cuomo to jump into the fray — still an unlikely outcome — other prominent Democratic candidates would campaign as well.

High floor, low ceiling Cuomo is the classic candidate with a high floor and a low ceiling. He has a base of voters he can rally together, but growth from there is unlikely. This was Eliot Spitzer’s problem a decade ago, when he tried to run for city comptroller after resigning the governorship in the wake of a prostitution scandal. Spitzer began the race as the frontrunner against Scott Stringer but his negatives caught up to him and he was bested. Under the old primary system, Cuomo would have had a better chance. In a potentially crowded field, he could reach the runoff and try to defeat his rival in a low-turnout affair. A packed field with split votes would have allowed, at the minimum, for him to be a top-two candidate. But ranked-choice voting will be Cuomo’s kryptonite. Democratic voters have grown used to the system and will be ready to put as many as five candidates on their

Former governor Andrew Cuomo is reportedly testing a run for mayor of New York City in 2025. | BLOOMBERG

ballots. For all the Cuomo nostalgists out there, there’s a significant number of Democrats who would choose to never list Cuomo. Those blank ballots would crush him in the end, allowing less alienating candidates to surge ahead. There’s no guarantee, either, that business elites and labor unions coalesce around him. When he was governor, they feared him, and he knew how to exercise his power to keep them in line. No labor leader or millionaire donor misses Cuomo’s hectoring phone calls and threats. They’re happier with Hochul as governor and could likely offer a long list of people they’d prefer for mayor over him. Spitzer couldn’t manage labor support in 2013, and Cuomo 2025 would not goad any of the large unions to back him. All of this, ultimately, is specula-

tion. The most likely outcome is that Cuomo doesn’t run at all. He’s just someone who dearly misses his name in the news.

Quick takes ◗ The House Republican incum-

bents in the New York suburbs are missing Kevin McCarthy’s rainmaking ability. The new speaker, Mike Johnson, is an inexperienced fundraiser, and this is going to make their 2024 campaigns much more uncomfortable. ◗ Will Hochul sign the LLC transparency bill? If she does so by the end of the year, New Yorkers could actually determine the faces behind the many shadowy limited liability companies in the real estate world. Ross Barkan is a journalist and author in New York City.

Police radio encryption, which could keep public in the dark about NYPD communications, faces scrutiny By Nick Garber

Local news reporters pleaded with police officials last month to reconsider a planned upgrade to the department’s radio system that would largely eliminate public access — a shift taken in the name of safety that could put the public at the mercy of law enforcement to stay abreast of breaking news. The pleas came during a City Council hearing focused on the NYPD’s $400 million switchover that will replace the department’s 42,000 handheld radios with new digital devices that encrypt all communications, making them impossible to listen in on. For generations, reporters in New York City and elsewhere have relied on police departments’ public radio feeds to document incidents of crime and peril as they unfold. The impact of that access is hard to overstate: Eric Garner’s 2014 chokehold death at the hands of a Staten Island police officer was exposed in part by a reporter who

had heard radio chatter. The NYPD’s airwaves may go silent as soon as December 2024, when the upgrade is complete, a police official testified Nov. 20. The shift got underway earlier this summer at a handful of Brooklyn precincts. Local journalists have raised the alarm, saying encrypted radios would wipe out their ability to cover breaking news. Users of the popular Citizen app, and local anti-violence groups that respond to crime scenes in hopes of de-escalating, would be similarly disadvantaged. Some advocates and elected officials have voiced support for an exemption that would give reporters access to encrypted chatter. But Ruben Beltran, the NYPD’s chief of information technology, appeared to cast doubt on such a carveout during the Nov. 20 hearing. Asked whether the NYPD might give media permission to listen in, potentially on a time delay, Beltran said only that “We haven’t made that decision yet.”

Beltran, who called the NYPD “the most transparent police force in the country,” asserted that the shift is necessary to thwart bad actors who weaponize the NYPD’s radio transmissions against them. He referred to at least 60 incidents since 2022, in which “interlopers” on the department’s radio waves called in false incidents of hurt officers or simply jammed communications entirely. Other would-be criminals, such as burglars, use police radios to stay aware of law enforcement’s movements when carrying out heists, according to Beltran.

Move called a ‘betrayal’ “This encryption is necessary to ensure operational safety and security,” he said. City Council members pushed back on Beltran’s claims. Brooklyn lawmaker Jennifer Gutiérrez called Beltran’s transparency claim “comical” — others who spoke Nov. 20 noted that the department

routinely takes months or years to respond to public records requests — and accused the department of deliberately stalling on a plan to provide press access before radios go dark next year. “Oftentimes, it is the media that has provided that level of transparency which the PD has been unable and unwilling to do,” Gutiérrez said. Veteran photojournalist Todd Maisel described himself as a longtime friend of the police department, and called the encryption move a “betrayal.” “It’s not about radio encryption — it’s whether you trust the NYPD controlling the narrative,” he said Nov. 20. “Do you trust the police to be 100% honest, fair, transparent?” Others who testified at the hearing Nov. 20 included Andrew Frame, founder and CEO of the Citizen app, which relies on police radio to send live updates to its estimated 10 million users nationwide. Although the app has attracted controversy of its own for, as critics charge, sowing panic and sometimes sending inac-

curate information, Frame argued NYPD encryption would put the public at a disadvantage — especially residents of low-income neighborhoods where crime tends to be higher. Encryption at the NYPD would “shut down our largest and most important American market,” Frame said. It was unclear from the hearing whether the council would take any legislative steps compelling the NYPD to grant access, as some transparency advocates have called for. At the state level, state Sen. Michael Gianaris introduced a bill last month that would require police departments to keep all transmissions except for “sensitive information” available to media and the public. Cities such as Chicago and San Diego have made similar shifts to encrypted communications in recent years, although at least some, such as Las Vegas, have carved out ways for media outlets to keep listening.

6 | CRAIN’S NEW YORK BUSINESS | DECEMBER 4, 2023

P006_CN_20231204.indd 6

12/1/23 4:16 PM

SPONSORED CONTENT

Why keeping employees engaged in their healthcare should matter to employers With family premiums rising for employer-sponsored health insurance in an inflationary environment, many employers in the New York City area want to make sure their employees get the greatest possible benefit from their healthcare. The average premium hit $23,968 this year, with workers contributing $6,575 and employers paying the balance, according to the Kaiser Family Foundation Health Benefits Survey. Against the backdrop of higher costs, 44% of insured adults worry about affording their deductible before their health coverage kicks in, according to other research from KFF. One way employers can keep costs down is by encouraging preventative care and management of chronic conditions. It’s easier to tackle healthcare challenges if they’re caught early, and routine checkups and gynecological screenings are covered by many health plans with no patient co-pay. Healthy employees, in turn, are less likely to call in sick, allowing their workplaces to stay productive. So how can employers encourage their teams to take care of themselves, physically and mentally, and tap into the valuable benefits in their health plans? For insight, Crain’s Content Studio spoke with AnneBeth Litt, MD, Chief Medical Director, Empire BlueCross BlueShield (Empire).

visits. And that leads to better health outcomes. CRAIN’S: How much can employee engagement in healthcare reduce costs for employers?

ANNEBETH LITT, MD Chief Medical Director Empire BlueCross BlueShield

CRAIN’S: Why is it important for employers to encourage employees to become more engaged with their healthcare? ANNEBETH LITT: Keeping your employees engaged in their overall health means a happier, stronger, and more productive workforce – and one that is less likely to call in sick. Simplifying the experience for employees and offering member engagement programs are key to making them more willing to access care. For example, ensuring your health coverage includes virtual care options allows employees to focus on their well-being in a way that fits their schedules and needs. In addition, health plans like Empire offer health benefits integration of comprehensive medical, dental, vision, and pharmacy benefits to allow for faster identification and closure of care gaps. By taking a holistic view of your employees’ health, potential issues can be more easily identified—whether it’s not taking medications as prescribed, missing important lab tests, or skipping flu shots and other preventive screenings or wellness

ANNEBETH LITT: Wellimplemented workplace health programs can lead to 25 percent savings on healthcare costs, according to the Centers for Disease Control and Prevention.1 The most effective health and wellness programs are the ones employees use. That’s why it’s important to tailor your benefits to your employees’ needs. Members’ engagement with their benefits can be improved through personalized resources, digital tools, health advocacy, navigation support, and health and wellness programs. Network/benefit design can optimize employer costs through value-based care arrangements, network discounts, and high-performance and curated networks. Your health

primary care, available through our SydneySM Health mobile app. Eligible members have access to a virtual care team that conducts an initial health check-in, creates a personalized care plan, and provides services at little or no cost to the member. This is one of the many ways Empire offers access to affordable, high-quality care from preventive screenings to chronic care management. Employee education is also a powerful tool. Wellness programs and trainings that boost prioritizing sleep, daily exercise, eating healthy food, and drinking more water will reap rewards for your employees’ health. CRAIN’S: How can employers provide support for chronic conditions? ANNEBETH LITT: Given that 90 percent of annual healthcare expenses are attributed to people with chronic and mental health conditions, according to

ANNEBETH LITT: Productive teams thrive in workplace cultures that value positive mental health. Many health plans now offer both in-person and virtual behavioral healthcare options and encourage members to choose in-network providers for the lowest out-of-pocket costs. Because treatment is highly individualized and personalized, having access to a comprehensive network with a variety of care options is crucial. At Empire, we have been working to bring new types of providers into our network, including virtual, outpatient, at-

CRAIN’S: What are some lowcost things employers can do to help employees optimize their well-being? ANNEBETH LITT: One of the best ways to promote better health is by encouraging preventive care and screenings to catch emerging health issues early. A good place to start is by promoting annual primary care visits. In addition to our robust network of providers, Empire offers virtual

the CDC, employers can achieve significant savings through improved care management.2 Your health plan can identify at-risk employees and their gaps in care, and partner with them to establish their healthcare team to support their wellness journey. This approach can lead to fewer emergency room visits, lower hospitalization rates, increased preventive screenings and employees receiving the right care at the right place at the right time. CRAIN’S: How can employers best support their employees’ behavioral healthcare needs?

Centers for Disease Control and Prevention. “Control Health Care Costs.” Accessed at: https://www.cdc.gov/chronicdisease/about/costs/ index.htm

Centers for Disease Control and Prevention. “Health and Economic Costs of Chronic Diseases.” Accessed at: https://www.cdc.gov/chronicdisease/ about/costs/index.htm

The confidence of whole health.

Simplifying the experience for employees and offering member engagement programs are key to making them more willing to access care. plan is your partner in promoting better health while helping to manage your healthcare dollars to keep care affordable.

home, and residential behavioral health providers. By encouraging employees to use available and confidential resources, leaders can also actively work to reduce the stigma around mental health.

Empire is here to materially and measurably improve the whole health and well-being of all New Yorkers.

empireblue.com Services provided by Empire HealthChoice HMO, Inc. and/or Empire HealthChoice Assurance, Inc., dba Empire BlueCross BlueShield. Independent licensees of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. A02138NYEENEBS 10/22

COPY EDITOR ______ COLD READER ______ WRITER ______ SENIOR EDITOR ______ FINAL ______ P007_CN_20231204.indd 7

11/30/23 10:14 AM

EDITORIAL

State leaders can’t let setback put housing on back burner A

ides to Gov. Kathy Hochul say she has no plans to propose a comprehensive housing plan next year after making it a top legislative priority in 2023. Not because the affordability crisis has eased. Not because rents are dropping. Not because fed-up New Yorkers have stopped moving to other states where developers are actually building housing in large volumes. By her own admission, Hochul is punting in part because it’s an election year for the Legislature, and policies boosting housing production have proven politically perilous, particularly in the suburbs. Hochul also learned from a touch-thestove moment: her push for three-year housing growth mandates of 3% in downstate communities and 1% upstate sparked sufficient blowback that housing was left out of the state budget almost entirely. It’s a shame 2024 may hold the same cards. New York needs leaders who don’t shy away from the thorniest problems, including the housing affordability crisis, which residents rank as the state’s biggest problem. Congress has more than enough

elected officials focused mostly on getting themselves reelected. The challenge represents a big opportunity for Hochul and Mayor Eric Adams to deliver on a signature policy achievement. The pair have mostly worked well together, changing the tone from their predecessors and advocating for centrist economic policies that have drawn kudos from the business community, as reporter Nick Garber notes in his cover story this week. But both

New York needs leaders who don’t shy away from the thorniest problems, including the housing crisis. leaders have seen their approval ratings plummet as they struggle to tackle their constituents’ biggest concerns. Some issues are built for conflict: The migrant crisis is such a budgetary and logistical nightmare there’s no surprise Hochul and Adams often butt heads, includ-

ing on where to house migrants and who should pay. But the state’s housing shortage represents an opportunity to find common ground: Everyone agrees we need much more of it, and many of the solutions are common-sense. What’s missing is the political will and influence to make it happen.

Collaboration is key The governor and mayor this year collaborated on a range of development projects and have both shown they understand the housing crisis and are eager to tackle it. But otherwise they were like ships passing in the night. Adams was unable to persuade state lawmakers to enact several of his priorities in the budget, including a replacement of the 421-a tax break to spur more housing growth, and he offered little public support for Hochul’s ambitious housing plan that risked her own political capital. Adams is gearing up to push his own housing reform agenda through a skeptical City Council, and Hochul, for her part, has said she will con-

Gov. Kathy Hochul and Mayor Eric Adams. | GETTY IMAGES

tinue to take executive action to address the crisis, though those moves fall far short of what comprehensive legislation could accomplish. In 2024, Hochul and Adams should team up, align on a comprehensive housing agenda, relentlessly make the case with legislators for why it’s essential, and ultimately muscle together the support it takes to get it done. By many accounts, Hochul’s housing plan failed last year in part because she failed to shore up enough support beforehand. Legislative leaders, rather than shying away from any talk of housing, should have the courage to run proudly on their record of passing a plan to finally tackle the state’s desperate shortage. Let’s not give up on waging another battle for the housing policy New York needs before it’s even been fought.

PERSONAL VIEW

New York City’s arbitrary rules for food delivery workers ultimately hurt diners enough deliveries to justify hiring delivery employees. And then there are the delivery employees themselves — the majority of whom tend to work multiple jobs or contracts — who will get hit with a compliance burden with more complicated tax scenarios. It seems the only winners here are New York City’s accountants.

Leave market alone Contrary to the City Council’s preferred narrative, there is little evidence that gig workers are victims. A study I co-authored surveyed more than 1,000 gig workers in the Northeast and found that most work in the gig economy because it is flexible, pays more than other alternatives, and provides more opportunities than if they were merely an employee. Most of these workers had no problem obtaining health insurance through a spouse, another job or the health exchange. The arrangement between gig workers and app delivery companies is not in need of heavy-handed government regulation. And there’s no evidence that restaurants are being exploited by app delivery firms either: If restaurants don’t like the fees delivery services charge, they can decline to use them or hire their own delivery employees. These options would reduce

BLOOMBERG

ew York City is home to many of food delivery companies while capping the world’s greatest and most di- their prices threatens their very existence verse restaurants, both pricey and in the one city where the food delivery cheap, and most of which are available for market should be the most economical. delivery thanks to app-based services. Un- When the city is simultaneously reducing revenue and increasing costs, it fortunately, these very services makes it hard for the app delivery like DoorDash, Uber Eats, and companies to make a profit. Grubhub are now under attack These minimum wage laws are from all angles by the Adams adparticularly punitive because ministration and the New York they only apply to people who deCity Council. New York City liver restaurant food for an appshould be the best market in the based service such as DoorDash, country for food delivery serGrubhub or UberEats. Bizarrely, vices. The city’s population is far these minimum pay rules do not denser than anywhere else, makapply to Uber drivers when they ing it easier to make timely deliv- Ike Brannon transport people, Instacart workeries. Also, since most New York- is a senior ers who deliver grocery store ers do not own cars, it should fellow for the food, or delivery employees who make them eager customers for Jack Kemp work for Domino’s or Chick-fil-A. food delivery. Foundation. It seems the City Council views However, the City Council and Mayor Eric Adams seem intent on making food delivery app companies as exploiting it difficult for food delivery services to op- both their workers and the restaurants deerate. The city recently increased the min- spite these companies struggling to make imum wage for their delivery drivers — a profit. The council has forced its own who notably receive tips — to $18 an hour, perspective on the food delivery market by which is well above the $10 tipped mini- trying to kill independent firms in favor of mum wage for restaurant workers. What’s restaurants employing their own drivers. more, the city also caps the fees delivery The losers here aren’t just the delivery apps can charge restaurants for their ser- companies either. The city’s diners will vices at 20% of the cost of the meal. Simul- have fewer choices. Smaller restaurants taneously imposing higher labor costs on will lose business because they don’t have

restaurant revenue and increase costs, which is why most restaurants use some form of third-party delivery service in the first place. There is no compelling reason for the City Council to impose draconian regulations on app-based restaurant food delivery companies, and the heavy-handed way it has done this shows the council’s clear discomfort with the market-based economy altogether. The City Council should leave this nascent market alone before it disintegrates in the city where the market should be strongest.

Write us: Crain’s welcomes submissions to its opinion pages. Send letters and op-eds of 500 words or fewer 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 | DECEMBER 4, 2023

P008_CN_20231204.indd 8

12/1/23 4:41 PM

PERSONAL VIEW

LETTER TO THE EDITOR

Squash is now an Olympic sport, which is great for all New Yorkers

s a Black woman in New York, I’m many advantages, achieve their dreams. I started in commodities trading straight not the stereotypical squash player. Recent news that squash will be an out of undergrad and became the first Olympic sport in 2028 heralds a huge Black vice president in commodities at JP Morgan before I decided not to boost in inclusion. Here’s why continue on that track. I didn’t that matters. want to make rich people richer First invented in England, without honoring my commitwhere I happen to have been ment and responsibility to help born to Caribbean parents, improve the lives of those less forsquash spread globally with the tunate. After business school, I British Empire. It was once the focused on impact investing prielitist preserve of mostly white vate equity. Currently, I invest in men. But the game is becoming and advise startups focused on more open, and it will look differaddressing climate change and ent in a few years’ time. Gillian decarbonizing our environment. I’m a venture capital climate Francis has The companies I work with are tech investor, and my journey lived in mostly founded by immigrants, into squash is a bit like my jour- Brooklyn for people of color and women; they ney into finance. Both were stuffy more than 20 white male environments that are years. She grew hire people in undercapitalized communities. So, my professionnow evolving and opening up to up in New al life has come full circle. everyone. My parents immigrat- Jersey. I started playing squash as a ed to West New York, New Jersey mature adult. Now I try to play when I was 4 years old. As working-class immigrants in New Jersey they five times a week, and I’ve found a great emphasized the importance of education. community of people around the game. As a child, I used to point across the Playing squash improves your well-being Hudson River at the Empire State Building and makes you a more aware person. It and say, “I’m going to work in New York forces you to be analytical, confronting the one day.” Thanks to their hard work and parts of your game that need improvemy own, I accomplished that dream. Now ment and working on them. I’ve found I’m keen to give back and help more young those are lessons that all New Yorkers enwomen and men who are not exposed to joy learning on and off the court.

I also teach young people to play squash at StreetSquash. It’s a nonprofit focused on empowering mostly Black and Latino children in Harlem and giving them a route into college through squash. As a Black woman who plays squash and who is also in finance, the young people see me and they realize they can go to college and make an impact in a currently mostly white sport and their future professional lives. 97% of StreetSquash participants go to college. I’m proud to be a part of those young people’s journeys.

New facility A new eight-court, including a glass court, squash facility opened in New York’s financial district. I’ve been a member of the nonprofit behind it, Open Squash, and I’ve been playing at its Bryant Park club for three years. Their mission is to open up squash for everyone and increase the participation of women of all levels in the sport. I’ve become a pseudo spokesperson for Open Squash, promoting the club wherever I go. Now they’ve put my face on subway posters to advertise the opening, and I’m glad. People need to think of squash in a new way. Squash: the ideal sport for all backgrounds. That should be its Olympic motto by 2028.

PERSONAL VIEW

New York has taken an important step to help address the growing labor shortage

e at Indeed applaud Gov. Kathy ment, housing and educational opportuHochul and New York’s legisla- nities. This new law offers a real path fortors for their recent passage of ward for people who are trying hard to the Clean Slate bill that removes employ- support themselves and their families, ment barriers associated with old convic- and to contribute meaningfully to the tion records by sealing them. As a result of community. Giving those with conviction this move, the pool of talented records a fair chance at employworkers is set to expand for New ment will help increase their York businesses — a reform apspending power and stimulate plauded by employers and chameconomic growth. Meanwhile bers of commerce across the state businesses will have new opporas it will help unlock opportunitunities to diversify their workties for millions and fill staffing force and benefit from untapped gaps that keep companies and talent. This is especially helpful to organizations from reaching their employers today who continue to full potential. struggle to find talent. In fact, a reBecause of ongoing legal barri- Abbey cent Indeed survey shows that acers and widespread stigma and Carlton is the cessing quality candidates and discrimination, the more than 70 global social scarcity of applicants are two of million Americans with convic- impact lead at the top five barriers to hiring. tion records are often overlooked the online job While the Clean Slate Act’s pasfor jobs despite having complet- site Indeed. sage is an important step, we must ed their sentences, sometimes remember that it is just the begineven decades earlier. In New York, it’s estimated that more than two ning, and we cannot lose momentum now. million people have past convictions that Effective implementation of this legislation may discourage them from looking for is key to ensuring millions of people curemployment or applying for better oppor- rently blocked from making a living can tunities once they secure a position. By find better work. It also means countless automatically sealing old convictions, the employers looking for capable employees Clean Slate Act will allow people with past statewide can connect with talented candiconvictions to more easily seek employ- dates. In addition to effective implementa-

tion by the state government, it’s crucial for us all to ensure that people with eligible records understand the changes to come and are encouraged to seek employment opportunities that may have previously been out of reach for them.

Addressing bias, barriers Indeed’s mission is to help all people get jobs. We are continuing to build and iterate on a variety of products and tools to help address bias and barriers to employment. This includes offering a “fair chance” job filter so that people can find jobs with employers that are committed to fair hiring practices, and free record clearing services through our Essentials to Work program. Our work is far from over, but it gets even easier to help when states like New York, and hopefully more to come, implement policies like the Clean Slate Act that break down unnecessary barriers to employment. Ensuring individuals with conviction records can obtain gainful employment is squarely aligned with our mission. We stand ready and prepared to help on this journey and look forward to working together to make Clean Slate New York a concrete reality, both in New York and beyond.

City is making progress helping those with serious mental illness To the Editor: Regarding “Slow progress” [Nov. 13], treating serious mental illness is one of the issues New Yorkers care most deeply about, and we appreciate Crain’s attempt to cover our city’s efforts to get people the care and services they need. Jacqueline Neber’s article touched upon many of the successful efforts we have made in this area, including better training of social service clinicians and police officers, and improved coordination with Heath + Hospitals, but, sadly, left out much of the most important work we have been doing. First and foremost, our Certified Behavioral Health Taskforce regularly meets to ensure our agencies are connecting with those most in need — that is our north star: helping those most in need. Additionally, it is clinicians who are leading this effort and not police officers. We made that clear last year, and we will continue to make that point. We also strongly object to the idea that we are somehow “walking away” from our responsibilities when the reality is that we are making real progress. A few weeks from now will mark one year since we redoubled our efforts to address the ongoing crisis of individuals experiencing severe mental illnesses on New York City’s streets and subways, and we look forward to sharing additional new data that will again highlight the positive impacts of our work. Serious mental illness is a cruel disease and a difficult policy issue that requires multiple stakeholders to work together in good faith. We hope that Crain’s will make every effort to shine a light on all the good work the city does every day to address mental health and improve public safety. Brian Stettin New York City Senior Advisor on Severe Mental Illness DECEMBER 4, 2023 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20231204.indd 9

11/30/23 2:56 PM

THE LIST TOP SBA LENDERS Ranked by dollar value of loans in fiscal year 2023

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

amanda.glodowski@crainsnewyork.com

FISCAL YEAR 2023 DOLLAR VALUE OF LOANS (IN MILLIONS)

FISCAL YEAR 2023 TOTAL NUMBER OF LOANS

302-351-4560 tdbank.com

$51.8

754

1111 Polaris Pkwy Columbus, Ohio 43240

877-242-7372 chase.com

$34.1

212

Bank of America, National Association

100 N. Tryon St. Charlotte, North Carolina 28255

704-386-5681 bankofamerica.com

$27.7

Cross River Bank

885 Teaneck Road Teaneck, New Jersey 7666

201-808-7000 crossriver.com

$26.6

Dime Community Bank

300 Cadman Plaza West Brooklyn, New York 11201

631-537-8834 dime.com

$23.6

Flushing Bank

220 RXR Plaza Uniondale, New York 11556

516-327-0026 flushingbank.com

$20.9

FinWise Bank

756 E. Winchester St. Murray, Utah 84107

801-545-6000 finwisebank.com

$16.0

Ulster Savings Bank

399 Knollwood Road White Plains, New York 10603

914-686-0220 ulstersavings.com

$15.3

Manufacturers and Traders Trust Co.

1 M&T Plaza Buffalo, New York 14203

716-635-4000 mtb.com

$14.9

332

Newtek Small Business Finance Inc.

1981 Marcus Ave. Lake Success, New York 11042

855-763-9835 newtekone.com

$12.0

112

Bank Five Nine

400 E. Wisconsin Ave. Milwaukee, Wisconsin 53202

888-569-9909 bankfivenine.com

$9.3

NewBank

146-01 Northern Blvd. New York, New York 11354

718-353-8100 newbankusa.com

$7.7

ConnectOne Bank

301 Sylvan Ave. Englewood Cliffs, New Jersey 7632

connectonebank.com

$7.5

Live Oak Banking Co.

1741 Tiburon Drive Wilmington, North Carolina 28403

910-790-5867 liveoakbank.com

$5.9

M&T Bank

1 M&T Plaza Buffalo, New York 14203

716-842-5138 mtb.com

$5.4

Capital Bank, National Association

2275 Research Blvd. Rockville, Maryland 20850

240-283-0416 capitalbank.com

$5.3

KeyBank National Association

127 Public Square Cleveland, Ohio 44114

800-539-2968 key.com

$5.0

Wells Fargo Bank, National Association

420 Montgomery St. Sioux Falls, South Dakota 94104

605-575-6900 wellsfargo.com

$4.8

Webster Bank, National Association

137 Bank St. Waterbury, Connecticut 6702

203-328-8110 websterbank.com

$4.8

Hanover Community Bank

80 E. Jericho Turnpike Mineola, New York 11501

866-541-2431 hanoverbank.com

$4.7

Provident Bank

239 Washington St. Jersey City, New Jersey 07302

201-433-3879 provident.bank

$4.7

Citibank

388 Greenwich St. New York, New York 10013

605-370-6261 citi.com

$4.7

Savings Bank of Danbury

2586 Summer St. Stamford, Connecticut 06905

203-703-6700 sbdanbury.com

$4.7

First Bank of the Lake

4558 Osage Beach Pkwy. Osage Beach, Missouri 65065

573-348-2265 fblake.bank

$4.5

Harvest Small Business Finance

24422 Avenida de la Carlota Laguna Hills, California 92653

949-778-0039 harvestsbf.com

$4.3

COMPANY NAME

LOCATION

CONTACT INFO

TD Bank, National Association

2035 Limestone Road Wilmington, Delaware 19808

JPMorgan Chase Bank, National Association

Source: U.S. Small Business Administration with additional research by Amanda Glodowski and Jasmine Sheena. Data spans federal fiscal year 2021: October 2021 through September 2022. The SBA's New York District includes New York City and Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, Ulster and Westchester counties. All figures are for banks' 7(a) loans (loans to businesses unable to secure financing on reasonable terms through normal lending channels) unless otherwise noted as 504 loans (long-term, fixed rate financing for major fixed assets) for certified development companies (CDCs). 10 | CRAIN’S NEW YORK BUSINESS | December 4, 2023

P010_CN_20231204.indd 10

11/30/23 2:58 PM

THE LIST HIGHEST-PAID NONPROFIT EXECUTIVES Ranked by total cash compensation

TOP EXECUTIVE/ ORGANIZATION

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

amanda.glodowski@crainsnewyork.com

ORGANIZATION FOCUS

ADDRESS

Michael Murphy President, chief executive

Affinity Health Plan

1776 Eastchester Road Bronx, New York 10461

866-247-5678 affinityplan.org

$4,388,277 $4,388,277

$45,932

Health care plan

Patricia J. Wang President, chief executive

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$3,804,417 $0

$3,804,417

$496,243

Health insurance

Eric Doppstadt Vice president, chief investment officer

The Ford Foundation

320 E. 43rd St. New York, New York 10017

212-573-5000 fordfoundation.org

$3,701,695 $3,701,695 1

$107,861

Advancing human welfare

Steven H. Black Chief operating officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$2,283,347 $0

$2,283,347

$199,933

Health insurance

Scott O'Malia Chief executive

International Swaps and Derivatives Association

10 E. 53rd St. New York, New York 10022

212-901-6000 isda.org

$2,023,344 $2,023,344

$11,249

Derivatives transactions

Mark Baumgartner Chief investment officer

Carnegie Corp. of New York

437 Madison Ave. New York, New York 10022

212-371-3200 carnegie.org

$1,912,917 $1,912,917

$165,623

K-16 education, democracy, international peace

John J. Bermel Chief financial officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,829,022 $0

$1,829,022

$35,014

Health insurance

Gerald McNamara Chief investment officer

JPB Foundation

875 Third Ave. New York, New York 10022

212-935-9860 jpbfoundation.org

$1,705,334 2 $1,705,334 2

$68,666 2

Poverty, environment, medical research

Rosalind Hewsenian Chief investment officer

The Leona M. and Harry B. Helmsley Charitable Trust

230 Park Ave. New York, New York 10169

212-679-3600 helmsleytrust.org

$1,671,096 2 $1,671,096 2

$204,786 2

Severe chronic diseases

Chun Lai Chief investment officer

The Rockefeller Foundation

420 Fifth Ave. New York, New York 10018

212-852-8361 rockfound.org

$1,640,215 2 $1,640,215 2

$77,187 2

Equitable global health systems

Rajeev Shah President

The Rockefeller Foundation

420 Fifth Ave. New York, New York 10018

212-852-8361 rockfound.org

$1,614,128 2 $1,614,128 2

$74,218 2

Equitable global health systems

Stephanie Cuskley Former chief executive 3

The Leona M. and Harry B. Helmsley Charitable Trust

230 Park Ave. New York, New York 10169

212-679-3600 helmsleytrust.org

$1,578,355 2 $1,578,355 2

$128,388 2

Severe chronic diseases

Daniel Savitt President, chief executive 4

Visiting Nurse Service of New York

5 Penn Plaza New York, New York 10001

212-609-5716 vnsny.org

$1,568,570 $1,568,570

$71,478

Home care

Scott Dolfi President, chief executive

Young Men's Christian Association (YMCA) Retirement Fund

120 Broadway New York, New York 10271

646-458-2400 yretirement.org

$1,543,223 $1,543,223

$61,576

Recreational services

Clive Gillinson Executive and artistic director

Carnegie Hall

881 Seventh Ave. New York, New York 10019

212-903-9600 carnegiehall.org

$1,493,958 $1,493,958

$82,760

Concert venue

Gerald T. Sweeney Senior vice president, chief information officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,485,165 $0

$1,485,165

$169,705

Health insurance

Paul Portsmore Jr. 5 Senior vice president, growth

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,480,485 $0

$1,480,485

$17,400

Health insurance

Marki Flannery Former president, chief executive 6

Visiting Nurse Service of New York

5 Penn Plaza New York, New York 10001

212-609-5716 vnsny.org

$1,445,489 $1,445,489

$48,962

Home care

Steven Spinola Former president

The Real Estate Board of New York

570 Lexington Ave. New York, New York 10022

212-532-3100 rebny.com

$1,425,724 $1,425,724

Real estate

Scott Breidbart Chief medical officer

Affinity Health Plan

1776 Eastchester Road Bronx, New York 10461

866-247-5678 affinityplan.org

$1,321,853 $1,321,853

$4,971

Health care plan

Elizabeth Hewitt Chief investment officer

Alfred P. Sloan Foundation

630 Fifth Ave. New York, New York 10111

212-649-1649 sloan.org

$1,309,906 $1,309,906

$105,350

Scientific research, DEI in STEM, public science engagement

Sean Kane Chief human resources officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,285,421 $0

$1,285,421

$152,779

Health insurance

Sean Cunningham President, chief executive

Video Advertising Bureau Inc.

830 Third Ave. New York, New York 10022

212-508-1200 thevab.com

$1,262,095 $1,262,095

$78,332

Video marketing

Hunter Reisner Chief investment officer

Young Men's Christian Association (YMCA) Retirement Fund

120 Broadway New York, New York 10271

646-458-2400 yretirement.org

$1,250,104 $1,250,104

$88,232

Recreational services

Linda Tiano Chief legal officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,248,501 $0

$1,248,501

$135,281

Health insurance

Emma Devito President, chief executive

Village Care of New York Inc.

120 Broadway New York, New York 10271

212-337-5600 villagecare.org

$1,244,333 $1,244,333

$73,360

Senior care

Douglass Coyle Deputy chief investment officer

The Rockefeller Foundation

420 Fifth Ave. New York, New York 10018

212-852-8361 rockfound.org

$1,224,455 2 $1,224,455 2

$78,168 2

Equitable global health systems

Mark Schienberg President

Greater New York Automobile Dealers Association Inc.

18-10 Whitestone Expressway Whitestone, New York 11357

718-746-5900 gnyada.com

$1,187,207 $1,187,207

$55,154

Automobiles

Steve Odland

The Conference Board Inc.

845 Third Ave. New York, New York 10022

212-759-0900 conference-board.org

$1,166,563 $1,166,563

$200,316

Connecting senior executives 11/30/23 2:59 PM

Anti-Defamation League

605 Third Ave.

212-885-7700

$1,151,432 $575,716

$575,716

$100,300

Civil rights,

Jonathan A. Greenblatt

COMPENSATION FROM ORG.

OTHER COMP.

COMPANY NAME

President, chief11executive, trustee P011_P012_CN_20231204.indd

TOTAL CASH COMP.

COMPENSATION FROM RELATED ORG(S).

PHONE/ WEBSITE

December 4, 2023 | CRAIN’S NEW YORK BUSINESS | 11

21 22 23 THE LIST 24 HIGHEST-PAID NONPROFIT EXECUTIVES 25 26 27 128 229 330 431 532 633 734 835 9 10 11 12 13 14 15 16 17 18 19 Crain's New York Business is looking to recognize 20 influential women and workplaces that are 21 inspiring change in New York City. 22 23 24 25 Nominate by January 12 CrainsNewYork.com/WomenOfInfluence 26 27 28 29 30

science engagement

Sean Kane Chief human resources officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,285,421 $0

$1,285,421

$152,779

Health insurance

Sean Cunningham President, chief executive

Video Advertising Bureau Inc.

830 Third Ave. New York, New York 10022

212-508-1200 thevab.com

$1,262,095 $1,262,095

$78,332

Video marketing

Hunter Reisner Chief investment officer

Young Men's Christian Association (YMCA) Retirement Fund

120 Broadway New York, New York 10271

646-458-2400 yretirement.org

$1,250,104 $1,250,104

$88,232

Recreational services

Linda Tiano Chief legal officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,248,501 $0

$1,248,501

$135,281

Health insurance

Emma Devito President, chief executive

Village Care of New York Inc.

120 Broadway New York, New York 10271

212-337-5600 villagecare.org

$1,244,333 $1,244,333

$73,360

Senior care

Douglass Coyle TOP EXECUTIVE/ Deputy chief investment officer ORGANIZATION

The Rockefeller Foundation COMPANY NAME

420 Fifth Ave. New York, New York 10018 ADDRESS

212-852-8361 PHONE/ rockfound.org WEBSITE

2 $1,224,455 TOTAL CASH 2 $1,224,455 COMPENSATION COMP. FROM ORG.

COMPENSATION $0 FROM RELATED ORG(S).

$78,168 OTHER 2 COMP.

Equitable global ORGANIZATION health FOCUSsystems

Mark Schienberg Michael Murphy President President, chief executive

Greater New York Affinity Health PlanAutomobile Dealers Association Inc.

718-746-5900 866-247-5678 gnyada.com affinityplan.org

$1,187,207 $4,388,277 $1,187,207 $4,388,277

$55,154 $45,932

Automobiles Health care plan

Patricia J. Wang Steve Odland President, chief executive President, chief executive, trustee

Healthfirst The Conference Board Inc.

18-10 Whitestone Road 1776 Eastchester Expressway Bronx, New York 10461 Whitestone, New York 11357 100 Church St. 845 Ave. York 10007 New Third York, New New York, New York 10022

212-801-6000 212-759-0900 healthfirst.org conference-board.org

$3,804,417 $0 $1,166,563 $1,166,563

$3,804,417 $0

$496,243 $200,316

Health insurance Connecting senior executives

Eric Doppstadt Jonathan A. Greenblatt Vice president, chief investment officer Trustee 7

The Ford Foundation Anti-Defamation League Foundation

320 E. 43rd St. 605 Ave. York 10017 New Third York, New New York, New York 10158

212-573-5000 212-885-7700 fordfoundation.org adl.org

$3,701,695 $3,701,695 1 $1,151,432 $575,716

$0 $575,716

$107,861 $100,300

Steven H. Black Chief operating officer Marc Morial President, chief executive Scott O'Malia Chief executive Jay A. Schechtman Chief medical officer Mark Baumgartner Chief investment officer Darren Walker President

Healthfirst

100 Church St. New York, New York 10007 80 Pine St. New York, New York 10005 10 E. 53rd St. New York, New York 10022 100 Church St. New York, New York 10007 437 Madison Ave. New York, New York 10022 320 E. 43rd St. New York, New York 10017

212-801-6000 healthfirst.org 212-558-5300 nul.org 212-901-6000 isda.org 212-801-6000 healthfirst.org 212-371-3200 carnegie.org 212-573-5000 fordfoundation.org

$2,283,347 $0

$2,283,347

$199,933

Advancing human Civil rights, welfare combating antisemitism Health insurance

$1,139,194 $1,139,194

$56,608

$2,023,344 $2,023,344

$11,249

$1,131,708 $0

$1,131,708

$147,075

John J. Bermel David Milibandofficer Chief financial President, chief executive

Healthfirst International Rescue Committee Inc.

100 Church St. 122 42nd New E. York, NewSt.York 10007 New York, New York 10168

Gerald McNamara Adam Falk Chief investment officer President, trustee

JPB Foundation Alfred P. Sloan Foundation

Rosalind Hewsenian Chief investment officer

The Leona M. and Harry B. Helmsley Charitable Trust

National Urban League Inc. International Swaps and Derivatives Association Healthfirst

Carnegie Corp. of New York The Ford Foundation

Economic empowerment Derivatives transactions Health insurance

$1,912,917 $1,912,917

$165,623

$1,114,504 $1,114,504 8

$103,909 9

212-801-6000 212-551-3000 healthfirst.org rescue.org

$1,829,022 $0 $1,086,979 $1,086,979

$1,829,022 $0

$35,014 $55,434

Health insurance Foreign affairs and national security

875 Third Ave. 630 Fifth New York, Ave. New York 10022 New York, New York 10111

212-935-9860 212-649-1649 jpbfoundation.org sloan.org

$1,705,334 2 $1,705,334 2 $1,084,775 $1,084,775

$0 $0

$68,666 2 $80,450

230 Park Ave. New York, New York 10169

212-679-3600 helmsleytrust.org

$1,671,096 2 $1,671,096 2

$204,786 2

Poverty, environment, Scientificresearch research, medical DEI in STEM, public sciencechronic engagement Severe

K-16 education, democracy, Advancing human international peace welfare

diseases

2 $1,640,215 2 2 SOURCE: Chun 2021 Lai Forms 990 of nonprofits and foundations are headquartered the five Does not include academic institutions or hospitals. Individuals included must hold Research byEquitable Amanda Glodowski. Thethat Rockefeller Foundationwithin 420 Fifthboroughs. Ave. 212-852-8361 $1,640,215 $0 a leadership position. $77,187 global Compensation the organization 990s.York Reportable from related organizations can be found in Section A, column E of organization 990s. Estimated amount of other Chief from investment officer can be found in Section A, part VII, column D of organization New York, New 10018 compensation rockfound.org health systems compensation from the organization and related organizations can be found in Section A, column F of organization 990. "Total cash comp." is the sum of compensation from the primary organization and related organizations. "Other comp." typically includes retirement funds. 1--Reportable compensation includes taxable cash benefit payments of $173,891 in lieu of an additional employer contribution to the foundation's retirement plan. 2--Figure from ProPublica. 3--Term ended in October 2 2 2 Rajeev Shah The Rockefeller Foundation 420 Fifth2021. Ave. 7--Term ended in November 212-852-8361 $0benefit payments $74,218 Equitable 2021. 4--Effective February 2021. 5--Term ended in December 2020. 6--Term ended in February 2021. 8--Reportable$1,614,128 compensation $1,614,128 includes taxable cash of $159,729 in lieu of an global additional employer President contribution to the foundation's retirement plan. 9--Contributions to employee benefit plans andYork deferred compensation. New York, New 10018 rockfound.org health systems

Stephanie Cuskley Former chief executive 3

The Leona M. and Harry B. Helmsley Charitable Trust

230 Park Ave. New York, New York 10169

212-679-3600 helmsleytrust.org

$1,578,355 2 $1,578,355 2

$128,388 2

Severe chronic diseases

Daniel Savitt President, chief executive 4

Visiting Nurse Service of New York

5 Penn Plaza New York, New York 10001

212-609-5716 vnsny.org

$1,568,570 $1,568,570

$71,478

Home care

Scott Dolfi President, chief executive

Young Men's Christian Association (YMCA) Retirement Fund

120 Broadway New York, New York 10271

646-458-2400 yretirement.org

$1,543,223 $1,543,223

$61,576

Recreational services

Clive Gillinson Executive and artistic director

Carnegie Hall

881 Seventh Ave. New York, New York 10019

212-903-9600 carnegiehall.org

$1,493,958 $1,493,958

$82,760

Concert venue

Gerald T. Sweeney Senior vice president, chief information officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,485,165 $0

$1,485,165

$169,705

Health insurance

Paul Portsmore Jr. 5 Senior vice president, growth

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,480,485 $0

$1,480,485

$17,400

Health insurance

Marki Flannery Former president, chief executive 6

Visiting Nurse Service of New York

5 Penn Plaza New York, New York 10001

212-609-5716 vnsny.org

$1,445,489 $1,445,489

$48,962

Home care

Steven Spinola Former president

The Real Estate Board of New York

570 Lexington Ave. New York, New York 10022

212-532-3100 rebny.com

$1,425,724 $1,425,724

Real estate

Scott Breidbart Chief medical officer

Affinity Health Plan

1776 Eastchester Road Bronx, New York 10461

866-247-5678 affinityplan.org

$1,321,853 $1,321,853

$4,971

Health care plan

Elizabeth Hewitt Chief investment officer

Alfred P. Sloan Foundation

630 Fifth Ave. New York, New York 10111

212-649-1649 sloan.org

$1,309,906 $1,309,906

$105,350

Scientific research, DEI in STEM, public science engagement

Sean Kane Chief human resources officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,285,421 $0

$1,285,421

$152,779

Health insurance

Sean Cunningham President, chief executive

Video Advertising Bureau Inc.

830 Third Ave. New York, New York 10022

212-508-1200 thevab.com

$1,262,095 $1,262,095

$78,332

Video marketing

Hunter Reisner Chief investment officer

Young Men's Christian Association (YMCA) Retirement Fund

120 Broadway New York, New York 10271

646-458-2400 yretirement.org

$1,250,104 $1,250,104

$88,232

Recreational services

Linda Tiano Chief legal officer

Healthfirst

100 Church St. New York, New York 10007

212-801-6000 healthfirst.org

$1,248,501 $0

$1,248,501

$135,281

Health insurance

Emma Devito President, chief executive

Village Care of New York Inc.

120 Broadway New York, New York 10271

212-337-5600 villagecare.org

$1,244,333 $1,244,333

$73,360

Senior care

Douglass Coyle Deputy chief investment officer

The Rockefeller Foundation

420 Fifth Ave. New York, New York 10018

212-852-8361 rockfound.org

$1,224,455 2 $1,224,455 2

$78,168 2

Equitable global health systems

Mark Schienberg President

Greater New York Automobile Dealers Association Inc.

18-10 Whitestone Expressway Whitestone, New York 11357

718-746-5900 gnyada.com

$1,187,207 $1,187,207

$55,154

Automobiles

Steve Odland President, chief executive, trustee

The Conference Board Inc.

845 Third Ave. New York, New York 10022

212-759-0900 conference-board.org

$1,166,563 $1,166,563

$200,316

Connecting senior executives

Jonathan A. Greenblatt

Anti-Defamation League Foundation

605 Third Ave. New York, New York 10158

212-885-7700 adl.org

$1,151,432 $575,716

$575,716

$100,300

Civil rights, combating 11/30/23 3:00 PM antisemitism

12 | CRAIN’S NEW YORK BUSINESS | December 4, 2023

P011_P012_CN_20231204.indd 12 Trustee 7

‘A 1932 moment’: Mayor strikes an ominous note as JPMorgan Chase tops off its new headquarters tower Eric Adams compared the project to the completion of the Empire State Building, which came on the eve of the Great Depression By Aaron Elstein

At a ceremony marking the topping off for JPMorgan Chase’s supertall headquarters under construction at 270 Park Ave., Mayor Eric Adams likened the tower to the Empire State Building, the last skyscraper built in Manhattan for a long time because tough economic times meant the market could no longer bear such ambitious projects. “This is a 1932 moment,” he said. “Many of us reflect on the Great Depression and what we

tion of office skyscrapers went dormant until Lever House was developed 20 years later. While the mayor was pointing to the power of perseverance, his explicit reference to the hardest of hard times hit a discordant note at a ceremony to celebrate the installation of the top-most steel beam on JPMorgan’s new 60-story tower. The $3 billion building is expected to open in 2025 and house 14,000 workers. “We’ve worked on this hard to try to help build the best building in the United States and in fact the world,” said CEO Jamie Dimon, who called the tower “an unbelievable thing” and thanked the mayor and governor for their assistance. JPMorgan’s building will lord over Park Avenue thanks to the city rezoning a part of Midtown six years ago. The tower got a further boost by the city granting St. Patrick’s Cathedral, St. Bartholomew’s Church, and Central Synagogue permission to sell air rights over a much longer distance than normally allowed.

JPMorgan’s building will lord over Park Avenue thanks to the city rezoning a part of Midtown six years ago. were experiencing. In 1932 we built the Empire State Building and it became a symbol of not only the strength of New York City but America’s strength.” After the 102-story Empire State Building was completed (it actually opened in 1931), the construc-

tenants have left. Behind the stage was 280 Park Ave., which next year could lose six tenants that pay 24% of the rent.

Banks dialing back

270 Park Ave. | BUCK ENNIS

Dimon took the stage to the sounds of Bruce Springsteen’s “Glory Days” and sat between Mayor Adams and Gov. Kathy Hochul, who cheered the project as “the most magnificent building in the world.” They were joined by MTA Chairman Janno Lieber, developers Jerry and Rob Speyer, and labor leader Gary LaBarbera.

Even as speakers thanked JPMorgan for sticking with the project and praised organized labor for building it, the difficult present and future for office towers was everywhere to see. Speakers had an unobstructed view of the landmarked Helmsley Building, which faces imminent default on its mortgage because

While JPMorgan is making a major investment in Midtown, banks as a whole are dialing back commercial real estate lending even as they press employees to return to office. Although some developers and financial institutions have plans to build their own supertall towers on Park Avenue, none appear close to breaking ground. Mayor Adams wasn’t the only speaker thinking about history. Architect Sir Lord Norman Foster said the roots of JPMorgan’s new tower go back to when the city grid was laid out in 1811. The past isn’t always prologue, of course, and the leaders of last month’s ceremony were more interested in looking forward. “Norman thought it was 1811, the mayor thinks it’s 1932,” said the master of ceremonies, JPMorgan global head of real estate David Arena. “I think it’s 2023!”

Manhattan borough president fast-tracks apartment tower development in first test of pro-housing pledge By Nick Garber

This spring, when Manhattan Borough President Mark Levine released a list of 171 sites around the borough where more housing could be built, he included a promise: If a developer came forward with a plan to build on one of those sites, Levine would greenlight the project in just five days, far shorter than the 30-day window his office is allowed in the city’s review process for rezonings. Now, Levine has gotten his first chance to make good on that promise. On Nov. 20, four days after receiving the application, Levine’s office signed off on a 46-story tower on the Upper East Side that will create 452 apartments, according to a recommendation shared with Crain’s. “We’re doing our part by chopping 25 days off the process,” said Levine, who has been a leading voice for building more housing in order to tackle the city’s affordability crisis. “That may not seem like a lot to the general public, but in the world of real estate, time is money — and we’re in a housing emergency, so every day is precious.” The developers, Friedland Properties and the Chapman Group, need permission to rezone the block due to a historical quirk. When the city introduced its zoning code in 1961, these blocks of

Upper Yorkville were home to industrial uses including Ruppert Brewery, a beer company helmed by the owner of the New York Yankees. The brewery closed in 1965, but the block is still zoned only for manufacturing — an oddity in modern-day Manhattan.

Outdated zones Levine’s April housing report prioritized scrapping those outdated manufacturing zones, both in Yorkville and parts of Midtown such as the Garment District. In the ensuing months, there has been movement to do just that — the Adams administration is embarking on a plan to rezone as many as 42 Midtown blocks to permit housing where none is currently allowed. Levine sees some hope for development at other sites included in his report, such as the corner of West 145th Street and Lenox Avenue in Harlem, where a high-profile rezoning collapsed last year because of opposition from the local council member. But the developer Bruce Teitelbaum revived that rezoning this year, and the incumbent council member, Kristin Richardson Jordan, is soon to be replaced by newly elected Yusef Salaam, who has indicated more openness to development. The East 94th Street project would include 113 affordable

units, winning praise from the local community board, which voted last month to support the rezoning. Levine, in his recommendation, echoed the board’s requests that the developer maximize the number of affordable units and build more family-sized twoand three-bedroom units — although he declined to take up neighbors’ demand that the developers in- Manhattan Borough President Mark Levine took less than five days to sign off on the new 46-story residential clude parking tower on East 94th Street (rendering at right) proposed by Friedland Properties and the Chapman Group. spots to compen- | HILL WEST ARCHITECTS sate for the loss of favor of a more comprehensive Side project was an easy first test the garage. Some obstacles remain: The de- approach. His counterpart in for Levine’s quick-approval policy, velopers said last month that they Brooklyn, Antonio Reynoso, re- since he happened to be in agreewill be unable to build the project leased a plan for his borough in ment with the local community until the state replaces the 421-a October that would similarly fast- board. A tougher case would be a tax break, whose lapse has stalled track projects proposed in areas scenario where neighbors vehemently oppose a new developconstruction around the city, the that have built little housing. And Mayor Eric Adams is ad- ment, as they often do — but news site Patch reported. As more New Yorkers struggle to vancing a major rewrite of the Levine said he is prepared for that contend with historically high city’s zoning code that would al- possibility. “One of the advantages of putrents and evidence mounts that low for more homes near transit, new construction is a necessary above shops, and in backyards ting out a report with specific sites way forward, Levine is one of sev- and garages — potentially elimi- is that my cards are on the table eral city leaders who have argued nating the need for many small- now,” he said. “I’m not trying to pretend like I’m not willing to for moving past piecemeal, neigh- scale development battles. In some ways, the Upper East push for housing.” borhood-level rezoning fights in December 4, 2023 | CRAIN’S NEW YORK BUSINESS | 13

P013_CN_20231204.indd 13

11/30/23 3:38 PM

THANK YOU

2023 Corporate Members

DIAMOND MEMBER

GOLD MEMBERS

SUPPORTING MEMBER

Contact Ryan Call at Ryan.Call@CrainsNewYork.com for 2024 Corporate Member Opportunities.

CN021522.indd 1

11/30/23 11:08 AM

INSTANT EXPERT

What to know about the electric taxi license change By Caroline Spivack

THE ISSUE THE ADAMS ADMINISTRATION made a surprise announcement on Oct. 18 that the Taxi Limousine Commission would issue an unlimited number of new license plates to Uber, Lyft and other fleet drivers behind the wheel of an electric vehicle. The change effectively blew the doors wide open to new rideshare vehicles rolling out onto the city’s streets, so long as they are electric. The announcement reversed part of a cap on for-hire vehicle licenses initially put in place in 2018 by the City Council and then-Mayor Bill de Blasio to prevent gridlock and market oversaturation. It’s not an exaggeration to say the new policy could represent a seismic shift in the rideshare industry, particularly as the city is pushing the industry to rely on electric vehicles over four-wheelers powered by gas. The Green Rides Initiative, which was approved by TLC in October, requires New York’s fleet of roughly 78,000 Uber and Lyft vehicles to transition to either zero-emission or wheelchair-accessible rides by 2030. The new electric vehicle permits, TLC has said, are meant to encourage that transition. But there was no public discussion or studies shared on the implications for the industry and the city ahead of the announcement.

It’s not an exaggeration to say the new policy could represent a seismic shift in the rideshare industry.

YEAH, BUT . . . IT’S NOT CLEAR HOW MANY of the 9,730 applications would enable new drivers to enter the city’s rideshare industry, since some drivers are swapping out existing gas-powered rides for electric ones. More motorists on the road competing for fares could impact drivers’ take-home pay, and some transportation analysts argue that more vehicles — regardless of if they are electric — will worsen the city’s congestion and air pollution because of stop-and-go traffic. The TLC can no longer accept new applications but taxi officials are allowed to process the applications they have already received. That process will unfold over the next several months. So even if the Taxi Workers Alliance lawsuit is successful in blocking applications from resuming, there will be thousands more electric vehicles entering the rideshare market. The TLC had planned for roughly 5% of the city’s 78,000 rideshare vehicles — about 3,900 four-wheelers — to convert to electric by 2024. Some 2,200 e-hail rides are already electric. If taxi officials approve the majority of the applications already received, it would put the agency well over the target staffers had intended for next year. In short, the city’s electric charging infrastructure may struggle to keep pace with a growing electric rideshare fleet.

BLOOMBERG

THE TLC HAD UNTIL NOV. 29 to submit a response to the Taxi Workers Alliance lawsuit; the alliance then has until Dec. 13 for its own reply. In the meantime, the temporary restraining order issued by JusAmanda Farias tice Sweeting will remain in place on the program pending a ruling in the case. The heated back-and-forth has attracted the ire of some City Council members who say they share concerns raised by driver and transportation advocates. In a Nov. 15 letter sent to TLC Commissioner Do, a pair of council members urged the agency to reconsider issuing the permits. Council Selvena members Amanda Farías and Selvena Brooks-Powers Brooks-Powers, who both sit on the council’s transportation and infrastructure committee, expressed “grave concerns regarding the categorical and seemingly haphazard lifting” of the license cap. “We have been and continue to be your partners as the City seeks to achieve carbon neutrality,” the council members wrote in their letter, “but we were surprised that this major policy change was announced without providing meaningful opportunities for debate or discussion among drivers, advocates, and Council Members.” The letter warns the TLC that if the agency does not take the council’s concerns seriously, and take “corrective action,” the politicians will mount their own challenge. “We will pursue all possible avenues to limit congestion and ensure TLC hard-working drivers can continue to earn a living wage,” the letter states.

COUNCIL.NYC.GOV

WHAT’S NEXT

DRIVER ADVOCATES quickly voiced a number of concerns: How would an influx of new electric vehicle permits impact drivers’ earnings? What would the impact be on congestion? Will the city have enough charging infrastructure to support the growing fleet of electric rides? David Do The New York City Taxi Workers Alliance, which represents 25,000 drivers including rideshare and yellow cabbies, on Nov. 2 filed a lawsuit seeking to block the policy. The suit argues that a lift on the license cap for electric rideshare vehicles would unleash “an unlimited number of new cars to the roads” and “have a disastrous impact on driver income.” In response to the lawsuit, Acting New York Supreme Court Justice J. Machelle Sweeting issued a temporary order that blocked the TLC from accepting new applications for the permits on Nov. 13. Prior to the lawsuit the TLC said it was processing between 100 and 150 applications a day for a total of 1,746 applications for the EV permits. After the court’s deadline, the TLC said that figure had ballooned to more than 9,730 applications — roughly 12% of the current amount of Uber and Lyfts on the road. Individual drivers make up the bulk of the applications with corporate entities filing some 1,040 applications, according to the TLC. TLC Commissioner David Do has repeatedly positioned the new electric vehicle plates as a pathway for drivers who rent vehicles with TLC plates, often for several hundred dollars each week, to own their own TLC-licensed vehicles. “Resuming the issuance of EV licenses not only has long term benefits for our environment, but also drivers who have been stuck in predatory leasing arrangements,” Do said when the Taxi Workers Alliance first filed its lawsuit.

BUCK ENNIS

NYCMAYORSOFFICE/FLICKR

THE PLAYERS

December 4, 2023 | CRAIN’S NEW YORK BUSINESS | 15

P015_CN_20231204.indd 15

11/30/23 3:55 PM

Demand for medical office space still concentrated uptown, report shows By Jacqueline Neber

The demand for medical office space in the city remains concentrated on the Upper East and Upper West Side, according to the latest Manhattan medical real estate market report from JLL. The third quarter 2023 report, published last month, shows that the uptown submarket has the lowest vacancy rates in the city at just under 4%, with about 1.3 million square feet of space. By contrast, Midtown South has about 564,000 square feet of inventory with a vacancy rate of almost 7% and Midtown encompasses more than three million square feet and has an almost 15% vacancy rate. These numbers are similar to those JLL recorded in its inaugural second-quarter medical office report in August. However, the downtown vacancy rate–the highest of all the areas–has dropped slightly from 37% to 29%. The uptown market also saw the highest average direct asking rent of all the areas, at about $69 per square foot. Downtown rents were cheapest at $47 per square foot on average. Matthew Coursen, executive

managing director at JLL, said things have mostly held steady in the market since analysts last assessed medical office space. He noted some statistics within the report that coincide with where demand is concentrated. First is the rising number of New Yorkers ages 55 and older. Manhattan’s population is growing faster than the group nationally and is expected to increase by 35% between 2010 and 2024. That boost could contribute to sustained interest in the uptown submarket, as many older New Yorkers live in those neighborhoods and need care as they age. Furthermore, he said, the borough’s outpatient space growth is outpacing that of its overall population. Outpatient footprints are expected to expand by 13% by 2032 as health systems shift more services to those sites in an effort to raise those revenues, which have become a bright spot for hospital finances. However, the population is expected to grow by just 7.5% between 2010 and 2024, according to the report. “That to me is an interesting sort of dichotomy [that] points to the need for more health care services

for the population that’s already there,” Coursen said. “It’s the baby boomer generation consuming twice as much health care as the next generation. It’s people living longer, living healthier lives.” Additionally, he noted, many medical providers are focused on preventative and wellness care, which many affluent people on the Upper East and Upper West Sides are interested in.

Pushing up prices The report shows that increased demand for accessible, wellness-centered space has driven up prices for retail medical sites as well. While the average rent for offices and medical offices hovers at $64 per square foot in Manhattan, retail medical space has fetched between $111 and $158 per square foot. The heightened visibility of ground floor and lower level space also pushes up prices, Coursen said. Analysts ranked the largest hospitals in the city as part of the report, and of the top 10, four are on the Upper East and Upper West Side with another two further uptown. Those institutions have gobbled space as they’ve opened new

sites and shifted more services to outpatient facilities. However, Coursen said many institutions have chosen to enlarge their footprints downtown and in While demand is centered uptown, some health systems have Midtown, too. He also chosen to expand their footprint in the Midtown and mentioned Weill downtown submarkets. | BUCK ENNIS Cornell, which added 100,000 square feet to its fice-building inventory is of an space at 575 Lexington Avenue older quality,” he said. “So you have some office buildings that earlier this fall. As the year has stretched on, an- are functionally obsolete. You alysts have seen that medical have some that are of a newer space in New York “cuts across quality but are not fully occupied product types,” Coursen said, with leases. . . .Not all of that space meaning that many different types will be repurposed to medical, but of sites are now being used for some of [it] will.” He added that he expects the conmedical purposes. Those include multifamily, apartment, retail and tinuing trend of hospital consolidaoffice buildings. Going forward — tion to help some systems increase including as the city tries to get their market shares at scale going people to return to work — Cours- forward as they take over other hosen expects to see more conver- pitals and physician networks. The sions, adding that JLL investor cli- process could also increase properents are becoming more interested ty values, Coursen noted, as highin repurposing their space for er-credit tenants come into more spaces, a potentially positive outmedical use. “In New York, you just have such come for the future. JLL New York is headquartered an incredible density of office buildings, and a lot of the of- near Bryant Park.

STAY AHEAD OF WHAT’S NEXT IN INDUSTRY NEWS RECOGNIZE TOP ACHIEVERS IN NEW YORK’S PREMIER PUBLICATION Mergers & Acquisitions / Name Changes / Business Launches / New Office Locations Funding Announcements / Industry Honors / Anniversaries

MAKE AN ANNOUNCEMENT Debora Stein / dstein@crain.com CrainsNewYork.com/COTM

6 IN 10 READERS BELIEVE CRAIN’S GIVES THEM A COMPETITIVE EDGE

16 | CRAIN’S NEW YORK BUSINESS | December 4, 2023

P016_CN_20231204.indd 16

11/30/23 3:56 PM

Midtown-based Nightingale sued over unpaid mortgages at office building near Grand Central The litigation comes on the heels of the real estate firm settling a separate lawsuit with CrowdStreet investors By Mario Marroquin

Midtown-based real estate firm Nightingale Properties may be at risk of losing control of a 15-story office building near Grand Central Terminal after years of trying to stave off foreclosure. The firm and its CEO, Elie Schwartz, were recently sued by Long Islandbased lender Klosed Properties in Manhattan Supreme Court over three unpaid mortgages totaling $30 million for the property at 20 E. 46th St. Klosed purchased the notes for the outstanding mortgages from California-based financial services firm East West Bank in August after Nightingale delayed payments for over two years, according to the Nov. 16 court filing.

2016 for the ground lease, which is set to expire in 2043, according to the lawsuit. East West Bank provided a loan for $18 million that was set to mature in May 2021. And two other loans, for $4 million and $7 million, were originated by East West Bank in 2016 and 2017, respectively, before being sold to Klosed, the lawsuit said.

Botched deals Nightingale’s office tower totals 120,000 square feet, according to real estate research firm Loopnet. Klosed said in the lawsuit that 28 out of 36 commercial units in the building were occupied by medical and retail tenants including Northwell Health and Gotham City Orthopedics as of Oct. 1. Nightingale and Klosed Properties did not return a request for comment by press time. News of the lawsuit was first reported in PincusCo. In October Nightingale and Schwartz were reported to have settled a lawsuit from investors at crowdsourcing firm CrowdStreet regarding two botched real estate deals, in Atlanta and Miami Beach, that reportedly used funds sourced from CrowdStreet.

Klosed Properties is asking the court to appoint a receiver to take control of the property and its revenues. Klosed is asking the court to appoint a receiver to take control of the property and its revenues before the building can be sold at foreclosure auction at a later date. Nightingale paid $27.7 million to Midtown East-based real estate firm Extell Development in May

20 E 46th St., New York. | GOOGLE MAP STREET VIEW

Investors alleged that Nightingale raised over $60 million from more than 800 investors to acquire the 1 million-square-foot Atlanta Financial Center and an 8-story office building in Miami Beach. Those deals never closed, and the funds were later moved to separate accounts controlled by Nightingale in August, according to a report in Forbes.

Bisnow Atlanta reported that Nightingale and Schwartz agreed to pay approximately $4 million per quarter over the next three years to reimburse investors for funds misappropriated over the past year. Crain’s reported in July that Nightingale was also trying to stave off foreclosure at 300 Lafayette St. in SoHo. Lender TPG Real

Estate Finance claims Nightingale owes approximately $129 million after delaying mortgage payments in 2021 and 2022. One month later Midtown-based real estate firm Capstone Equities took over control of the 500,000-square-foot Whale Building in Sunset Park from Nightingale over an unpaid $88.9 million acquisition mortgage, Crain’s also reported.

Wedding site Zola may be looking to break up with its 40,000-square-foot Financial District headquarters By C. J. Hughes

It appears to be splitsville for a wedding website and its offices. Zola, a decade-old startup backed by more than $140 million in venture financing and with heavyweight investors including Kevin Ryan on its board, has put its headquarters at 7 World Trade Center on the market as a sublet. Sweeping across the entire 39th floor of the Silverstein Properties-owned tower, the 40,000-square-foot space features a mix of open areas lined with bench seating and small conference rooms with colorful walls. The offices, with “great light and river views,” can fit 290 workers, according to the listing, which appeared last month in a newsletter from industry group Tech:NYC. Whether Zola, known for its allin-one-place wedding-gift registries, is downsizing at the address or relocating to another site, or facing a worse fate, is unclear. Zola executives did not return phone and email messages by press time. An email sent to Ryan’s venture capital firm AlleyCorp went unanswered. And Sam Einhorn and Marcus Rayner, the Colliers agents

marketing the property, declined to comment. A woman-led company headed by co-founder Shan-Lyn Ma, Zola has flirted with coveted unicorn status since bursting onto the scene in 2013. Along the way, the startup seemed to have little trouble wooing investors. The company’s most recent major infusion, a Series D round in 2018 from investors including Goldman Sachs and NBCUniversal, clocked in at $100 million.

Expansion mode? Zola has appeared to be in expansion mode. In September it announced the introduction of a baby-gift registry service. In addition to Ryan, who has cultivated success stories such as Business Insider, Gilt Groupe and MongoDB, Zola’s board includes investor Josh Kushner, brother of former White House adviser Jared Kushner. Zola signed its lease at 7 World Trade in 2019 for a reported rent of $80 per square foot annually as it relocated from 150 Broadway, a prewar Financial District building near Liberty Street.

7 World Trade Center, Financial District | COLLIERS

Opened in 2006, 7 World Trade is home to the firm that developed it and much of the surrounding World Trade Center site, Silverstein Properties. Other tenants in the 52-story, 1.7 million-squarefoot spire, which also uses the ad-

dress 250 Greenwich St., include ratings firm Moody’s Investors Service, architecture practice SOM and Champagne importer Moet Hennessy USA. The tower’s 40th story is currently empty, and Silverstein is

searching for a tenant to fill it, according to the building’s website. The New York Academy of Sciences had occupied the full-floor space since the tower’s opening but moved to nearby 115 Broadway earlier this year.

December 4, 2023 | CRAIN’S NEW YORK BUSINESS | 17

P017_CN_20231204.indd 17

12/1/23 3:29 PM

Pfizer bets big on new drugs to fuel post-Covid growth

uring the pandemic, Pfizer developed vaccines and treatments for Covid-19 that led to skyrocketing revenues to the tune of $100 billion last year alone. But as the virus has waned, so have Pfizer’s earnings. In October the company slashed its revenue projections by $9 billion by the end of 2023, due to sinking sales of its Covid vaccine and antiviral pill. Now, Pfizer is banking on new treatments to make up for revenue gaps. The company is in the midst of launching 19 therapeutics across a range of disease areas. The launches, 13 of which have already happened, are estimated to bring in $20 billion by the year 2030, according to the company, and are a combination of internal drug development efforts and acquisitions. Angela Hwang, chief commercial officer and president of the global biopharmaceuticals business at Pfizer, spoke with Crain’s about new products and revenue growth in the aftermath of the pandemic. | Interview by Amanda D’Ambrosio

Angela Hwang | PFIZER

How has Pfizer strategized around new drug development in the wake of revenue loss? What we have in front of us is a very important moment in our company’s history, where we have an unprecedented number of launches — in fact, 19 of them — in 18 months. So it certainly is an incredibly exciting time. But [it’s] also one that we have to thoughtfully nurture as well as invest in, because this is where the growth, the up to $20 billion in revenue through 2030, would come from. The products that we’re launching are a mixture of new molecular entities — completely new molecules — and those that are new indications of existing molecules. Whether we’re tackling a new

diseases present opportunities for growth? If you think about Pfizer and where we have made stated investments or been very clear about our priorities in R&D, they are in the following areas: number one, oncology; number two, vaccines; and number three, internal medicine. Number four is in inflammation and immunology. We also have products for rare diseases, including sickle cell and hemophilia. And, finally, we have a portfolio in local hospital products, the hospital injectables and the multi-source products that we would use heavily in the hospital setting. Those are the six therapeutic areas, I would say, that Pfizer has been investing in for the last several years.

disease or a new condition, or whether it’s expanding a new indication, it’s all underpinned by the unmet needs of patients and how we grow and bring new technology to those specific areas. Which products are you most excited about? There are a few off the top of my head that I think are worth talking about, but some represent more growth than others. One I’ll talk about is for RSV; we just recently launched this. Our vaccine portfolio has really hit an important time in Pfizer’s history — we started with one vaccine called Prevnar, and today we have an entire portfolio. I think we have created a strong set of vaccines for

adults, but specifically in respiratory diseases. Now we also have [Abrysvo for] RSV. RSV is one of those products that is dually indicated. It’s indicated for older adults, but it’s also indicated for mothers. Between 32 and 36 weeks of pregnancy, mothers who are able to get protection [from the RSV vaccine] will impart the antibodies to their newborns. In a disease as devastating as RSV, especially to infants that are six months and younger, the ability to be born with the antibodies is a tremendous amount of protection. Pfizer quickly developed treatments for Covid-19 when no treatments were available. Now that the pandemic has slowed, what types of

Pfizer is planning to launch its mRNA vaccine for flu next year. Can you talk about the market potential of a flu vaccine that deploys that technology? As you know, our Covid vaccine Comirnaty was the world’s first mRNA vaccine. With the experience we’ve gained from that, we entered into an mRNA program for flu. In fact, in 2018, when we first entered into a partnership with BioNTech, it was for the flu. MRNA technology is well aligned with viral strains that change frequently. We have to let the trials play out, so it’s a little premature for me to comment on the outcome. But being that flu is a disease that is seasonal, there is a high demand for flu vaccinations. Flu vaccinations actually [cover] like 50% or so of the entire population. So we know that there is a large market that exists. The market that exists today relies on technologies where you have to sort of predict what the strain is many, many months prior. And so I think we have an opportunity to bring a different technology that catches most accurately the likely strain that will emerge during a season. That’s going to be the difference.

NOTABLE LEADERS IN FINANCE Nominate a senior leader in finance who shares their expertise with others in the field.

NOMINATE BY JAN. 19 CrainsNewYork.com/ NotableNoms

18 | CRAIN’S NEW YORK BUSINESS | DECEMBER 4, 2023

P018_CN_20231204.indd 18

12/1/23 4:02 PM

PARTNERS From Page 1

with underwater approval ratings. Hochul was elected to a full term by a startlingly narrow margin in 2022, and Adams is facing down potential challengers amid a corruption probe into his campaign. “It’s foolish to write off either the mayor or the governor’s chances,” said Evan Stavisky, a Democratic political consultant. “That being said, they obviously are presiding at a time when Americans generally, and New Yorkers specifically, have a negative outlook on the economy and other issues.” The next two years will test whether both leaders manage to pass the significant housing reforms they have each sought, keep their relationship cordial under the strains of the migrant crisis, and close multibillion-dollar budget gaps at the city and state levels without resorting to drastic service cuts.

‘Unity and stability’ Both leaders can point to things improving on their watch. Crime, arguably Adams’ signature issue, has generally fallen in the city — as it has in much of the country. Job losses from the pandemic have finally been reversed — although high earners have reaped more of the benefits — and subway ridership has grown along with office occupancy. Hochul has strengthened the state’s gun control and abortion laws, begun implementing an ambitious climate law, and been credited with

detoxifying Albany’s political culture after the Cuomo years. Both have also preserved their reputations as business-friendly centrists, and have steadfastly opposed raising taxes to close the widening budget gaps at the city and state levels. That’s won them continued support — not to mention hefty campaign donations — from the business world. “Both are prioritizing public safety and fiscal responsibility, both are saying they don’t want to raise taxes,” said Kathy Wylde, President of the Partnership for New York City. “I think the business community regards them both as having the right agenda and trying to bring unity and stability into the state and city after the trauma of the past few years.” Elected officials and political observers tend to speak highly of how Adams and Hochul work together. The two have collaborated on a range of development projects, initiatives to support public housing tenants, and a high-profile plan to boost police presence on the subways. The most notable exception has been the migrant crisis — Adams has demanded that Hochul cover more than the $1 billion the state has given the city so far, and faulted her for not forcing upstate towns to accept migrant shelters. Hochul’s administration, in turn, harshly criticized Adams’ handling of the crisis in August court papers. But both leaders have downplayed their disagreements and remained united in their call for more federal aid. It’s a far cry from the Cuomo-de Blasio days, when everything from a Legion-

naires’ disease outbreak to a loose deer in Harlem was fodder for feuding.

‘Without a vision for future’ Still, Adams and Hochul’s relationship may be more notable for its lack of drama than for producing any signature policy achievement that will stand above the others. Mayors’ policy dreams often depend on Albany action, and Adams this year was unable to persuade state lawmakers to enact several of his priorities in the budget, including a replacement of the 421-a tax break to spur more housing growth. The mayor, for his part, offered little public support for Hochul’s ambitious housing plan, which died this spring amid opposition from the Legislature and which she will apparently scale back in 2024. Adams is now pursuing his own housing reforms at the local level — whose fate, similarly, may depend on his ability to muscle the plan through a hostile City Council. Their mixed record on policy has forced both executives to defend themselves against criticisms that they lack the political acumen or ideological guideposts of some of their predecessors — with de Blasio’s universal pre-K program frequently cited by progressives as the kind of fundamental reform the current leaders have not achieved. “They seem to lead without a vision for the future, and at the same time, [to be] unable to respond to the crises of the moment,” said Ana María Archila, the other co-director of the Work-

ing Families Party, who ran for lieutenant governor last year against Hochul’s deputy. Of course, budgets are tighter now than they were when Cuomo and de Blasio held power. “It’s very difficult to do the big vision stuff when you have less money to play with,” one city lawmaker noted. A spokesman for Hochul, Avi Small, said in a statement that the governor has “become a national leader on reproductive rights, gun safety and hate crime prevention.” He pointed to her success in toughening the state’s bail laws, investing $1 billion in mental health care, tying the minimum wage to inflation, and securing the upstate semiconductor plant toward which the company Micron has pledged as much as $100 billion. Charles Kretchmer Lutvak, a spokesman for Adams, noted that under his mayoralty “crime is down, jobs are up, and tourists are returning to the city.” “And with bold efforts to create affordable housing and put money back into people’s pockets, it’s clear that the Adams administration is delivering for working people every day while simultaneously managing a national humanitarian crisis,” Lutvak said in a statement. Without a doubt, Adams’ tenure has featured more radical ups and downs than the governor’s. His mayoralty has been jolted by the indictment of a former Buildings commissioner, a decaying relationship with President Joe Biden, and Adams’ own controversial public statements — such as his assertion that the migrant

crisis will “destroy” the city and his comparison of an elderly white constituent to a slaveowner. Supporters of Hochul point to her understated leadership style as a strength. “Our agencies are functioning better now than they did under the Cuomo administration,” said State Sen. Liz Krueger. “It’s not necessarily a newspaper story every time an agency functions, but her team has done a good job rebuilding a state government that was sitting with enormous numbers of open slots and no one doing the work.” Some in the political world say Adams has to contend with a tougher media environment than Hochul, working under the scrutiny of a watchful city press corps and lacking the governor’s ability to retreat to Albany for extended periods. But Hochul has also steered mostly clear of the ethical concerns that have dogged Adams since his days in the state Senate, which now constitute a full-fledged crisis as federal authorities investigate his campaign for possible illicit dealings with Turkey. It remains to be seen whether tighter times ahead will drive wedges between Hochul and Adams, or accentuate their similarities. Despite few obvious similarities between the brash, nightlife-loving Brooklynite and the more reserved Buffalo native, their overlapping ideologies point to the potential for more common ground. “They have different personal styles,” Wylde said, “but in substance they’ve been very much aligned.”

Casinos could open in wide swath of New York under set of zoning changes proposed by city By Nick Garber

Casinos would be permitted in wide swaths of New York City under a set of zoning changes released by Mayor Eric Adams’ administration last month, designed to fit into the state-led process that will choose as many as three new gambling sites to open in and around the five boroughs. Under the proposal, casinos would be barred in residential areas but allowed in any medium- to high-density commercial district in the city, as well as in manufacturing zones. The plan puts no restrictions on casinos’ size, and allows developers to tack on “related” facilities such as hotels and restaurants. While most of the developers and gaming companies gunning for a lucrative casino license are keeping their eyes on the state’s all-important selection, the city also needs to make changes to its zoning code for a casino to even be permitted here. The Adams administration initially said it would include that tweak as part of a bigger package of business-friendly zoning reforms, then changed course in October, announcing along with City Council leaders

that the casino portion would be advanced separately and subjected to its own public review. The full casino zoning plan, released quietly just after Thanksgiving on Nov. 24, is fairly bare-bones, with few restrictions on the future casinos besides barring them from residential areas. The Adams administration says that simplicity is meant to avoid subjecting casino bidders to a redundant layer of bureaucracy, since they will already have to go through the state’s monthslong review that includes binding votes by six-person councils composed of local officials. But compared to the granular level of scrutiny that city lawmakers often apply to new developments — of everything from buildings’ height to their number of parking spaces — the blanket permission provided by the city’s proposal is striking, said George Janes, an urban planner who consults with several community boards. “They’re ceding all of the planning power that the city has in terms of locating these things, what they’re going to look like,” Janes said. “I’m shocked that they’re just ceding everything, even the urban design components of this, to some other body.”

Gail Benjamin, a member of the City Planning Commission, criticized the proposed zoning changes during a public hearing on Nov. 27. Benjamin argued that open-ended language could allow developers to sneak in certain types of buildings under the guise of a casino — such as hotels, which are otherwise heavily restricted in the city.

Council could modify “The hotel could be any size if there’s nothing that says the people who are staying in the hotel have to be gaming at the casino,” she said. “We are allowing things that would not be permitted, without any City Planning review, oversight, determination.” None of the nine known contenders for a casino license within the city would be imperiled by the new zoning plan — proposals such as SL Green’s in Times Square and Silverstein Properties’ near the Javits Center are on blocks where casinos would be allowed under the proposal. But a handful of bidders will need to overcome their own specific hurdles: for example, Steve Cohen’s in Queens and the Bally’s proposal in the Bronx would

both require lawmakers to permit building on parkland. Without the citywide zoning change, all nine casino proposals would have needed to undergo their own monthslong reviews by city officials before even being considered by the state. Some observers had expected city lawmakers to try to preserve that ULURP process, which, while cumbersome, would have given them leverage to essentially veto any project. “If you take away ULURP, you take away the loaded gun,” one lobbyist involved in the casino process told Crain’s in July. The City Council will need to approve the zoning permissions announced on Nov. 24, and could modify the proposal before it becomes final. Council Speaker Adrienne Adams said in October that passing the plan will ensure the city’s applicants are not at a “competitive disadvantage” compared to other downstate bidders — like, for example, the Nassau County proposal by Las Vegas Sands. The six-person “community advisory councils” convened by the state will be allowed to consider whichever factors they want when voting on each casino bid. If a pro-

The Adams administration would pre-emptively legalize nine potential casinos within New York City, including this one atop Saks Fifth Avenue proposed by Hudson’s Bay Company. | RENDERING, HBC

posal passes with at least four votes, it will reach the state’s Gaming Facility Location Board, whose members are required to focus on each project’s potential for economic development when making their final decision. The state’s selection process is slowly advancing, but no applications have been submitted yet. In August, a state board finally released answers to hundreds of procedural questions from applicants, which will be followed by another round of questions and, finally, the applications themselves — with nothing likely to be decided until well into next year at the earliest. Each new casino could generate as much as $2 billion in revenue annually, according to some estimates. With two of the new licenses expected to go to existing racetrack casinos in Queens and Yonkers, just one license appears genuinely up for grabs among the contenders in the city and Nassau County.

December 4, 2023 | CRAIN’S NEW YORK BUSINESS | 19

P019_CN_20231204.indd 19

12/1/23 4:46 PM

CLASSIFIEDS

Advertising Section

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

PUBLIC & LEGAL NOTICES 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 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 NCOURAGE ARTS MOBILE STUDIO LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 7/14/23. Office location: NY County. Princ. office of LLC: 228 PARK AVE S #612179, 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 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

Notice of Qualification of VICI CP PROPCO LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/16/23. Office location: NY County. LLC formed in Delaware (DE) on 10/04/23. Princ. office of LLC: 535 Madison 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., 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, Div. of Corps., 401 Federal St., Ste. 4, Dover, DE 19901. 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 1314 CAFE LLC Arts of Org filed with Secy. of State of NY (SSNY) on 6/27/2022. Office Location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against to 1314 1st Avenue NY, NY 10021. Purpose: any lawful act

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

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 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 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 THREE91/ONE30 LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/16/23. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Eli Zabar, 403 E. 91st St., NY, NY 10128. Purpose: Any lawful activity.

Notice of Formation of SILK INDUSTRIES LLC Arts of Org filed with Secy. of State of NY (SSNY) on 7/13/2023. Office Location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against to 228 Park Ave S #845281 NY, NY 10003, USA Reg Ag.: United States Corp Agents, Inc. 7014 13th Ave Ste 202. BKLYN, NY 11228. Purpose: any lawful act

SUBMIT YOUR BUSINESS CLASSIFIEDS TODAY Advertising Section

POSITIONS AVAILABLE

Notice of Formation of CAST LEGAL STUDIO PLLC Arts of Org filed with Secy. of State of NY (SSNY) on 8/29/2023. Office Location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against to 418 BROADWAY, STE N, ALBANY, NY 12207. Purpose: any lawful act

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

FIG Associate (Apollo Management Holdings, L.P. – New York, NY); Mult. pos. avail. Analyze & support execution of investment opportunities with a range of risk/return profiles, across the capital structure, for Apollo & its investors through private equity-style underwriting, with a focus on financial services companies, primarily within insurance, specialty finance & asset mgmt. Analyze data, scrutinize business trends, construct investment models, assess & dev capital structures, & present the investment thesis to sr investment professionals & sr leadership of the firm. F/T. Int’l travel req up to 5% of working time. Domestic travel req up to 5% of working time. Offering a salary range of $175,000 to $200,000 per year. Apply w/ resume to pkotakonda@apollo.com. Ref. Job ID: 7139481.

Trader (Citadel Americas Services LLC – New York, NY); Mult. Pos. Avail. Mng trade execution (both low touch platforms & manual/voice) within paramtrs est by the business. Monit & respond to mrkt info, corporate announcements, & trading act to mng risk in portfolio, & to find opport. F/T. Salary $215,000 - $235,000/yr. Resumes: citadelrecruitment@citadel.com. Reference JobID: 7472762.

PUBLIC & LEGAL NOTICES PROFESSIONAL LIMITED LIABILITY COMPANY Notice of Formation of Foreign Professional Limited Liability Company (PLLC) Name: Soho Integrative Psychological Services PLLC Application for Authority filed by the Department of State of New York on: 07/21/2023 Jurisdiction: Florida Organized on: 01/11/2023 Office location: County of New York Purpose: Psychology Secretary of State of New York (SSNY) is designated as agent of PLLC upon whom process against it may be served. SSNY shall mail a copy of process to: The PLLC, 325 22nd Avenue NE, Saint Petersburg, FL. 33704

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 Qualification of USSA INTERNATIONAL LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/14/23. Office location: NY County. LLC formed in Delaware (DE) on 07/11/19. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 767 Fifth Ave., 45th Fl., NY, NY 10153. DE addr. of LLC: c/o United Corp. Services, 800 N. State St., Ste. 304, Dover, DE 19901. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of DLJ BUILDING CO 70 LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/03/23. Office location: NY County. LLC formed in Delaware (DE) on 11/02/23. Princ. office of LLC: c/o DLJ RECP Management, L.P., 1123 Broadway, 2nd Fl., NY, NY 10010. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: c/o Corporation Service Co., 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

Notice of Qualification of DLJ BUILDING CO 60 LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/03/23. Office location: NY County. LLC formed in Delaware (DE) on 08/03/23. Princ. office of LLC: c/o DLJ RECP Management, L.P., 1123 Broadway, 2nd Fl., NY, NY 10010. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: c/o Corporation Service Co., 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.

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

DECEMBER 4, 2023 | CRAIN’S NEW YORK BUSINESS | 21

P021_CN_20231204.indd 21

12/1/23 2:24 PM

GRIDLOCK From Page 1

put toward infrastructure upgrades for the city’s subway, buses and commuter rail. Under the recommendations, drivers of cars, SUVs and pickup trucks would be charged the $15 fee during the daytime hours, which is roughly in the middle of the $9 to $23 tolls the authority had initially explored. The proposal would make it cheaper to drive at night: implementing a 75% discount between 9 p.m. and 5 a.m. on weekdays and 9 p.m. through 5 p.m. on weekends. That would drop the toll to $3.75. “The guiding principle for us was how do we satisfy the many, not the few,” Carl Weisbrod, chairman of the Traffic Mobility Review Board, said during a Nov. 30 press briefing. “For that we really recognized that the many are the million plus people who take mass transit into the central business district every day and the relatively few, at least in one category, are the 150,000 or so people who drive.”

Trucking industry Transportation and environmental advocates lauded the proposed tolls as fair, rational and essential to ensuring the region has high-quality mass transit. “The benefits are many-fold: cleaner air, less traffic and funding for critical

transit projects around the region totaling some $15 billion,” said Lisa Daglian, executive director of the Permanent Citizens Advisory Committee to the MTA. “That’s an investment in our future.” Members of the TMRB particularly struggled with deciding how much to charge trucks, said Weisbrod, out of concern that too-high a fee would divert big rigs to poorer neighborhoods that are already disproportionately burdened by polluting traffic and facilities. To minimize air-quality concerns the MTA plans to spend $207.5 million on mitigation efforts over five years in the Bronx and elsewhere. The proposed tolls for trucks ultimately landed between $24 and $36, depending on their size. The fee structure, Weisbrod said, is designed to encourage commercial drivers to shift their operations to overnight — when it’s cheaper — instead of during the day. Industry advocates remain skeptical. Kendra Hems, president of New York Trucking Association, in a interview described the proposed fees as destabilizing to the trucking industry, and while she is reviewing the proposal’s full details, said litigation could possibly be on the table. “This isn’t just us not wanting to pay a toll, this is about the impact to the trucking industry and to their customers, to all the businesses in the zone that rely on those trucks to make deliveries,” said Hems. “This is going to be an

increased cost and we’re incredibly concerned with the timing.” A $1.25 surcharge would be added to the fares of yellow and green cabs, while a charge of $2.50 would be tacked on to trips through rideshare services such as Uber and Lyft. Cabbies and their advocates have pushed for an exemption from congestion pricing tolls out of fear that higher fares will reduce ridership. Taxi advocates are somewhat split on the proposed tolls. Matthew Daus, transportation technology chair at the City University of New York’s university transportation research center, had argued for exemptions for taxi and rideshare drivers but said he’s pleased with the TMRB’s compromise. “We’re thankful that that the TMRB has recommended a more modest, workable charge for both taxis and for-hire vehicles, and we think that it’s not going to have a catastrophic impact,” Daus, who is a former commissioner of the city’s Taxi and Limousine Commission, said in an interview. “But we do need to monitor the impact on ridership, because there will be an impact.” Brendon Sexton, president of the Independent Drivers Guild, said he’s glad to see that the tolls “are not primarily on the backs of drivers” but that he’d like to see more parity between the fees on taxis and for-hire vehicles. The New York Taxi Workers Alliance, meanwhile, remains vigorous in

its opposition to the tolls. “This is a reckless proposal that will devastate an entire workforce,” said NYTWA Executive Director Bhairavi Desai in a statement. “Trips are still down 50% since Covid-19 and 40% of yellow cab medallions are not even operational on the streets.”

Proposed discounts For drivers who already pay tolls to enter Manhattan, the TMRB is recommending a $5 discount for motorists who travel through Hugh L. Carey, Holland, Lincoln and Queens-Midtown tunnels. The credit would not apply to motorists crossing the George Washington Bridge, which is north of the congestion pricing zone. Much of the debate around congestion pricing, in recent months, has been occupied with how to address concerns about New Jersey drivers being hit with multiple tolls to enter Manhattan. Garden State lawmakers furious with the fees aim to block the congestion pricing plan in court — which threatens to delay or even derail the tolling program. In a statement late Nov. 29, New Jersey Governor Phil Murphy said his state’s legal battle would continue. Murphy slammed the proposed tolls as “wholly inadequate.” He added that the state is “left with no choice than to continue addressing our concerns through litigation.” The plan offers discounts to a

host of other motorists, including low-income drivers who would get a 50% discount during the daytime hours after their first 10 trips per month. Drivers traveling on the Franklin D. Roosevelt Drive and the West Side Highway would not be charged. The same is true for certain buses, government vehicles and those carrying people with disabilities. People who live within the congestion pricing zone and who earn an annual income below $60,000 would be eligible for a state tax credit to cover their tolls. The MTA this week will vote to initiate the final round of public hearings on the tolls before the authority’s board votes on the plan. Transit officials could still tweak the recommended tolls, though they have indicated that they don’t expect to majorly deviate from what is proposed. Under state law, congestion pricing is required to collect $1 billion in toll revenue each year. That is to say, if new discounts are carved out the overall fee structure would need to be reworked to ensure that the tolling program would generate the required annual revenue. “It is a start in the sense that if it’s embraced we will see what changes, if any, should be made,” said Weisbord. “But I do think it does hang together and if you change one piece of it in any significant way, it does affect the others.”

22 | CRAIN’S NEW YORK BUSINESS | December 4, 2023

P022_CN_20231204.indd 22

12/1/23 4:25 PM

GOTHAM GIGS

CrainsNewYork.com President and CEO KC Crain Group publisher Jim Kirk (312) 397-5503 or jkirk@crain.com 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 Opinions: 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 Aaron Elstein, C.J. Hughes, Eddie Small REPORTERS Amanda D’Ambrosio, Nick Garber, Mario Marroquin, Jacqueline Neber, Caroline Spivack 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

Max Pollack at HERO NYC in what used to be the Rockefeller Center Finance Station post office just two years ago | BUCK ENNIS

Digital marketing exec blends music, visual arts to help brands tell stories

The managing partner and co-founder of SoHo-based Matte helped launch a new exhibition space in October. | By Mario Marroquin

ax Pollack has been producing events since he was a 17-year-old student at Stuyvesant High School in downtown Manhattan. Back then, simply finding a venue that would allow him to host parties for his friends was a challenge due to his age. But he stuck with it in service to his fellow students. “I love the idea of bringing people together,” said the Bronx native, who is now 35. After he graduated from Dartmouth in 2010, and cut his teeth booking concerts for professional musicians and DJs, Pollack co-founded Matte, an events and marketing firm headquartered in

located below the famed CBGB music club, which hosted crowds from its perch in the East Village from 1973 to 2006. Pollack says their mutual passion for music, arts and entertainment solidified their bond. They decided to start Matte to combine their knack for creative design and problem solving with their love of music and live events.

Has noticed a convergence The company has so far created marketing campaigns and produced events for brands including Maison Kitsune, Bose, Marc Jacobs and Hermes. It has approximately 70 clients and 100 employees. Last year it took in nearly $50 million in revenue. After working in branding for the past 12 years, Pollack, who is the managing partner at Matte, says he has noticed a convergence between marketing and entertainment that is allowing musical and visual artists to express themselves like never before. He says merging the worlds of advertising, entertainment and production helps brands create new worlds

“I love the power of . . . experience. I don’t think there is anything more important than that.” — Max Pollack SoHo, with Brett Kincaid in 2011, when Pollack was 23. They met when Pollack was looking for a venue in Manhattan where he could put on an event and Kincaid was managing one

and find new ways to tell stories. In previous years Matte has created events that blended music and the visual arts, but Pollack and the company are now setting their sights on a new venture. The company teamed with Manhattan-based marketing firm Collective to open Hero NYC, a venue tricked out to host a series of digital arts exhibits, in late October. Staged in a 17,000-square-foot venue that used to be the Rockefeller Center Finance Station post office just two years ago, the exhibition space showcases some of Pollack’s favorite works as art installations, across LED screens and through sound systems. The aim is to deliver an immersive experience. Clients can rent the space to host events, while the venue’s sound systems and screens can be programmed for a tailored experience. Pollack says approximately 40%, or nearly 5,000 square feet, of the Hero NYC space will be fully customizable. Although Pollack declined to specify how much money it took to build out the venue, he did note the entire process took about two months. The concept, he said, is the culmination of more than 11 years of working alongside brands, artists and musicians to bring new expe-

Max Pollack Age: 35 Grew up: Riverdale Resides: Bedford-Stuyvesant Education: Bachelor’s in art, Dartmouth College Family life: When Pollack is not working at Matte, he is spending time at home with his 2-year-old and 6-monthold children. Keep going: Pollack says the key to his success has been perseverance. “[Marketing] is all about staying with it, persevering and seeing how things change,” he said. “You need to be able to take big hits and be able to wake up the next day and keep going.” riences to consumers and bring people together, and recognizes the future of media and entertainment. It’s something Pollack could have only imagined as a teenager throwing parties. “I love the power of . . . experience,” he said. “I don’t think there is anything more important than that.”

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 associate director 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 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. 43 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.

DECEMBER 4, 2023 | CRAIN’S NEW YORK BUSINESS | 23

P023_CN_20231204.indd 23

12/1/23 4:06 PM

NOTABLE LEADERS Each year, Crain’s New York Business recognizes leaders at their companies, in their industries and in their communities. These individuals manage, mentor, innovate and give back. Help us recognize Notable Leaders in 2024 by nominating today. Visit CrainsNewYork.com/NotableNoms for more information and to nominate.

CN021527.indd 1

Notable

Nomination

Publication

Program

Deadline

Date

Leaders in Finance

Jan. 19

Mar. 18

Leaders in Sustainability

Feb. 16

Apr. 15

LGBTQIA+ Leaders

Apr. 26

Jun. 24

Real Estate Leaders

May 24

Jul. 22

Black Leaders

Aug. 2

Sep. 30

Leaders in Health Care

Sep. 13

Nov. 11

Leaders in Accounting, Consulting & Law

Oct. 11

Dec. 9

11/30/23 11:12 AM