Crain's New York Business by crains-new-york-business

ASKED & ANSWERED How technology can keep transit riders safe PAGE 10

CRAINSNEWYORK.COM

REVEL TAKES OFF But accidents mar the e-moped company’s rollout PAGE 3

FEBRUARY 1, 2021

TRANSPORTATION

How a lax Taxi & Limousine Commission allowed the app-hail ride industry to undermine the cab industry BY BRIAN PASCUS

See UBER on page 22

IN THE MARKETS

Wall Street pros turned Reddit frenzy into profits Although demonized by amateur traders, professional investors also cashed in when targeted stocks soared

part from captivating the nation, the amateur stock traders from Reddit have contributed something else in their manic bidding for GameStop, AMC and other struggling companies: substantial gains for some of the Wall Street pros they love to hate. Private equity firm Silver Lake recently converted AMC debt it held

NEWSPAPER

VOL. 37, NO. 4

AARON ELSTEIN

to equity, according to a regulatory filing. That meant Silver Lake, which has $75 billion in assets and committed capital, in a flash turned its going-nowhere $600 million AMC investment into a $900 million winner. Executives couldn’t have done it without Reddit novices driving up the ailing movie theater’s stock price Wednesday from $4.96 to $19.90 per share. AMC was down by

GOTHAM GIG

HELPING NEW YORKERS HANG OUT SAFELY PAGE 23

$173M

Reddit traders, those shares were 50% early Thursday. worth about $165 million heading Manhattan hedge fund Mudrick into Thursday trading. Capital pocketed $173 million last AMOUNT one That’s some fee. month, also by converting AMC hedge fund made There have been other winners debt into equity. converting AMC in this mixed-up, muddled-up, That’s not all. To help fend off debt into equity shook-up world. None are what bankruptcy, on Dec. 10 Mudrick you’d call genial Warren Buffett lent AMC $100 million at a painful interest rate of 15%. Because AMC was so types. Some are best described as vultures, a strapped for cash, Mudrick was paid a fee of 8.3 million shares for the loan. Thanks to the See FRENZY on page 4

THE LIST

Manhattan’s biggest retail leases PAGE 16

BUCK ENNIS

WILD RIDE I

nconsistent licensing practices and lax enforcement of regulations by New York City taxi regulators allowed app-based car companies such as Uber and Lyft to expand in the city at the expense of taxis and liveries, a Crain’s investigation shows. The Taxi and Limousine Commission regulated Uber and Lyft as if they were black-car cooperatives—a designation at odds with their operational model—giving them an advantage over the cab industry and allowing them to capture a disproportionate share of the city’s transportation market, the investigation reveals. Even though Uber and Lyft did not enter the market until 2011, daily for-hire vehicle trips exceeded taxi trips by more than 304,000 by January 2018, according to the Taxi Medallion Task Force report commissioned last year by the City Council. The TLC issued licenses for approximately 2,000 for-hire vehicles per month in 2018,

TECHNOLOGY

Union plans push into New York’s tech industry “WE ARE TRYING TO FIGHT FOR EQUALITY FOR ALL EMPLOYEES”

BY RYAN DEFFENBAUGH

The Kickstarter vote “jumpstarted a lot more conversations” among technology workers, who are almost uniformly nonunion, said Grace Reckers, an organizer for the OPEIU. “A lot of people argue that tech employees tend to be well paid with great benefits, and that is true for a lot of people. But there is a whole group of employees that is not the case for,” Reckers said. “We

Declining membership

are trying to fight for equality for all employees.” While declining to share company names, Reckers said conversations are ongoing between the union and employees at about a half-dozen technology workplaces through meetings online. That includes employers outside New York. Many employees at technology companies work remotely, and some firms have offices across multiple cities.

A group of about 400 Google employees voted this month to form a union with the Communication Workers of America. The number of members falls short of what is required for a formal union—which can negotiate a contract—but will give workers a platform for activism, as described in the announcement. Technology employees have in recent years pushed for more say in decisions their companies make,

including on moderating misinformation, deploying facialrecognition technology and setting goals to mitigate climate impact. “This industry is expanding and growing like no other,” Reckers said. “Tech has far more influence on the world than it did even three or four years ago.” Employment in technology jobs grew about 20% between 2015 and 2019 in New York, according to data from CBRE, reaching a workforce of

WEBCAST CALLOUT

HEALTH CARE

hree weeks ago, when vaccine eligibility was expanded to include those 65 and older, software developer Dan Benamy tried to help his grandparents schedule an appointment. It was a painstaking process, going through the websites of the city’s Health Department and health systems to find an available slot. Benamy recalled thinking that there must be a better way to find the information. “I felt I had an opportunity to make this easier,” he said. Benamy and a small group of volunteers got together to create NYC Vaccine List, a website that crawls the online listings of various locations to see if they have supplies and appointments available. The website currently reports the

availability at 45 locations offering vaccinations in the five boroughs, on Long Island and in Westchester and parts of the Hudson Valley. The crawler automatically and periodically checks the locations for appointment slots.

Volunteer effort NYC Vaccine List was inspired by a community-driven vaccineavailability tracker in California. Some members of the NYC Vaccine List team were involved in the California community. Over time, volunteers with skills in graphic design, marketing and software development came on board. One of the volunteers in outreach and research joined because NYC Vaccine List helped him find an appointment for his grandfather, Benamy said. The cost of maintaining and hosting the site is shared among

OFFICE OF ANDREW CUOMO/FLICKR

Tech-savvy do-gooders launch website to help New Yorkers find vaccine appointments BY SHUAN SIM

The effort to expand into the technology industry comes as union membership has declined statewide for the second straight year. New York had 1.7 million union workers last year, according to Census Bureau data—down 70,000 from 2019. About 22% of New York workers are represented by a union, behind only Hawaii for the highest rate among the 50 states. As it was still negotiating a formal contract, Kickstarter’s union in May negotiated a deal for better severance pay and other benefits when the company laid off employees in response to Covid-19. The company cut 25 jobs, according to a notice filed that month. “We’re proud of the fair and democratic process that got us to where we are today,” Kickstarter spokeswoman Kate Bernyk said. “We are now focused on working with our unionized staff to negotiate a fair collective bargaining agreement.” ■

members of the team. “There is no formal funding process,” Benamy said. “We’re just using our personal credit cards.” The site, which launched two weeks ago, has received the attention of City Councilman Mark Levine and Chelsea Clinton, both of whom tweeted about the volunteer efforts. The site exceeded 50,000 visits in its first few days. The team is working to add more

CRAIN’S BUSINESS FORUM MARCH 3 locations to its list. It is estimated there are more than 129 sites to check for appointments in the city alone, Benamy said. There are also locations where vaccine availability is not published online, and volunteers are reaching out to them by phone to obtain the information. “Getting that category up is one of our highest priorities,” Benamy said. “Hopefully we can achieve that soon.” NYC Vaccine List is looking at adding additional languages as well as making the site more accessible for individuals who are not very tech-savvy. “We just want everyone to be able to find a vaccine as quickly as possible,” Benamy said. ■

HOW THE BIG APPLE WILL REGAIN ITS SHINE, FEATURING DANIEL L. DOCTOROFF, CHAIRMAN AND CEO OF SIDEWALK LABS In the wake of 9/11, Daniel Doctoroff, then deputy mayor of economic development, contemplated the same issue we face today: Are cities still necessary? With the redevelopment of the World Trade Center, the High Line and Hudson Yards, among other projects, the answer was a resounding yes. Join Crain’s March 3, when we talk to Doctoroff, now CEO of innovation company Sidewalk Labs, about how New York can come back again.

VIRTUAL EVENT Time: 4 to 5 p.m. CrainsNewYork.com/ MarchBizForum

Vol. 37, No. 4, February 1, 2021—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for bimonthly in January, July and August and the last issue in December, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: call 877-824-9379; fax 313-446-6777. $3.00 a copy; $129.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2021 by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 1, 2021

BUCK ENNIS

Conversation starter

about 270,000, though that includes technical jobs at companies outside the industry.

BLOOMBERG

fter helping to organize workers at Kickstarter in Brooklyn, a New York union plans to expand its reach into the technology industry, where collective action is rare. The Office and Professional Employees International Union— an AFL-CIO affiliate that represents about 100,000 workers at colleges, banks and other office settings— launched an effort last week focused on the industry. Called Tech Workers Union Local 1010, the organization aims to oversee unionization efforts at technology companies. Its first member is Kickstarter, a crowdfunding platform in Greenpoint focused on creative projects. In February 2019 the company was the best-known technology company to have its employees unionize, with the union winning a majority vote among the 88 eligible nonmanagement employees.

TRANSPORTATION

Startup sputters but regains footing New Yorkers have flocked to Revel, but accidents have marred its rollout BLOOMBERG

REIG said Revel was signing up 4,000 new users a day in New York City last summer.

BUCK ENNIS

hen New York locked down last March, Kurt Yaeger was among those in the city who had to go on working. A neurosurgery resident, he didn’t feel comfortable climbing into an Uber and filling his lungs with the same air as the driver and previous customers. The subway might have been safer, but trains stopped running between 1 a.m. to 5 a.m., so Yaeger was out of luck if he had early rounds at hospitals in the Mount Sinai Health System. Fortunately, Yaeger discovered that Revel Transit Inc., a Brooklyn-based provider of shared electric mopeds, was offering free memberships to health-care

workers. He enjoyed zooming around in the open air. Some of his fellow doctors signed up, too, and they became a more affable version of the Hells Angels. “We felt like a scooter gang, all dressed in our scrubs, going together to different hospitals,” Yaeger says. Revel’s outreach to health-care workers coincided with its biggest expansion yet. The two-and-half-yearold company now operates 6,000 electric mopeds in New York; Miami; Washington, D.C.; San Francisco; Oakland, Calif.; and Berkeley, Calif. By some measures, its rapid growth has been a stunning success in a year when the pandemic knocked so many other businesses sideways. It tripled the size of its New York fleet to 3,000

vehicles just as the coronavirus arrived and people started shunning public transportation. At the end of 2020, Revel said it had 400,000 registered users in the city—up 133% since March. That means when it comes to shared electric transportation, Revel has established itself as a dominant name in America’s largest metropolis, second only to Citi Bike, which expected to have almost 4,000 e-bikes on the streets by the end of January. Alternative transportation advocates say the success of companies such as Revel is crucial if countries around the world are to See REVEL on page 18

FEBRUARY 1, 2021 | CRAIN’S NEW YORK BUSINESS | 3

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REAL ESTATE

Residential landlords getting burned in gentrification crash tenant protections as rent falls across New York. Colony 1209, a steel gray apartment building, opened six years ago in the heart of Bushwick. An industrial vision of urban chic, it had a billiards room and a 24-hour doorman. The website pitched one-bedrooms for $2,500 to “like-minded settlers” in the mostly Black and Hispanic neighborhood, which it called Brooklyn’s “new frontier.” Now Colony, renamed Dekalb 1209, faces foreclosure after owner Spruce Capital Partners defaulted on a $46 million mortgage. The fiveyear, interest-only loan matured in October and was not extended, triggering the default, according to monthly filings by the loan’s servicer, Wells Fargo & Co. The lender is filing to repossess the building—as soon as New York’s foreclosure moratorium expires—while simultaneously discussing workout alternatives with the borrower. Spruce could not be reached for comment.

ew York’s apartment investors are suddenly waist-deep in distress. By December they were behind on $395 million in debt backed by mortgage bonds, almost 150 times the level a year earlier, according to Trepp data on commercial mortgage-backed securities. Tenants in rent-stabilized units owe at least $1 billion in rent, and wealthier ones are fleeing the city, leaving behind vacancies and pushing newly-built luxury towers into foreclosure. For years, as crime dwindled and rent climbed in New York, investors gobbled up apartment buildings. But with the city’s economy and culture crushed by Covid-19,

“RENT IS THE GREEN BLOOD THAT KEEPS A BUILDING OPERATIONAL” mounting job losses have derailed the gentrification boom and put financial pressure on landlords. “The people who specialize in mortgage workouts are the busiest people in New York real estate,” said Barry Hersh, a clinical associate professor of real estate at New York University. The developers who are in the most trouble pushed hard into Harlem and the Brooklyn hipster hubs of Crown Heights, Flatbush and Bushwick, squeezing out working-class residents by building new, expensive units. Now they’re grappling with eviction bans and new

Plans ‘stymied’ Right before Covid hit, investors were willing to pay top dollar for luxury buildings like Colony. They wanted alternatives to rent-regulated buildings, which saw values crimped by a 2019 law that banned tactics landlords depended on to convert rent-stabilized units to market-rate. “That was the bright spot until the pandemic happened,” said Victor Sozio, executive vice president

tions for the future, said Shimon Shkury, Ariel’s president. If the vaccine works and college students and office workers start to return, so will the market, Shkury said. “I don’t think there will be as much distress as you think,” he said.

Deregulating rents

BLOOMBERG

at Ariel Property Advisors, a commercial brokerage firm. Emerald Equities, a fast-growing condo-conversion specialist, filed for bankruptcy in December on buildings in Harlem. In its filing, the company said its “well-laid plans were stymied” by the tenant-friendly law. Residents organized a rent strike, then collections plunged even more after the pandemic started, driving Emerald to hand ownership to LoanCore Capital, which lent $203 million for the project. Doug Kellner, an attorney for Emerald tenants, blames the current market troubles on New York’s eviction ban because it came without any accompanying financial support. “Everybody realizes that rent is the green blood that keeps a building operational,” Kellner said.

Across the boroughs, rents are on a downward spiral, as landlords try to fill empty apartments with ever-sweeter tenant concessions— only to see the number of vacant listings surge further. In Manhattan, available units nearly tripled in December from a year earlier, and the median rent plunged 17%, to $2,800, according to data from Miller Samuel and Douglas Elliman Real Estate. Rents are down 11% in Brooklyn and 18% in northwest Queens, where starry-eyed developers built glassy apartment fortresses along the waterfront for young Midtown professionals. In some ways, investors may be better insulated than after the 2008 financial crisis. Lenders generally required bigger down payments and underwrote loans based on current rents rather than expecta-

FRENZY

“YO, THIS IS A ... CRIME WHAT @ROBINHOODAPP IS DOING. HOLD THE LINE ... WTF”

FROM PAGE 1

Wall Street term for the breed of investor that provides funding to distressed companies. As sister publication Crain’s Detroit Business reported, one of GameStop’s biggest shareholders is Donald Foss, whose stock would have been worth $1.2 billion heading into Thursday if he hadn’t sold any. Foss is founder and former chairman of Credit Acceptance Corp., a Michigan company that makes auto loans to struggling borrowers. The Massachusetts attorney general’s office sued the company for fraud last year.

@RobinhoodApp is doing,” tweeted performer Ja Rule, a native of Hollis, Queens. “HOLD THE LINE … WTF.”

Repercussions

BLOOMBERG

Big bets Silver Lake is a major investor in media and entertainment. Its portfolio includes Airbnb, the Manchester City soccer team, Madison Square Garden and UFC. Last year it invested $1 billion in Twitter in return for a board seat. A spokesman did not immediately return a request for comment on its AMC investment. A Mudrick spokesman did not immediately return a request for comment.

Lenders have already put $1.4 billion worth of commercial-backed multifamily debt on watch lists because of issues including rising vacancies and impending maturities. That’s 19% of all outstanding debt, compared with 22% at the nadir of the financial crisis. The trouble will filter from highly leveraged investors who expanded quickly to lenders with the most aggressive underwriting, says NYU’s Hersh. “There will be banks that go under,” he said. At the same time, the market for multifamily buildings has gone soft. The total dollar volume of New York City multifamily sales was $4.5 billion in 2020, a 61% plunge from 2018, before the pandemic or the new rent laws, according to a report by Ariel. Still, firms such as Limekiln Real Estate Investment Management see opportunities. The company made $224 million in New York multifamily loans in the second half of 2020, up from $9.3 million before the pandemic. It’s easier to extract better terms in a “lender’s market,” said Scott Waynebern, Limekiln’s president. “It’s tricky to find where the bottom is,” he said. ■

To those of a certain age, the GameStop frenzy recalls the frothiest days of the dot-com bubble, when millions of newbie investors got reamed. Back then fans of free-falling stocks used to support each other in Yahoo or Raging Bull chat rooms. A common and some-

4 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 1, 2021

what baffling plea was to “call in your certs”—meaning call in your stock certificates so Wall Street brokers wouldn’t lend your shares to short-sellers. It has been estimated that 10 million people opened brokerage accounts last year. They returned to

their online congregations Thursday, and as favorites such as GameStop and AMC returned to earth, a big meme was Do Not Sell. Many were enraged when brokerage firms imposed trading limits to contain the frenzy. “Yo this is a ... CRIME what

Before noon on Thursday the first of what will surely be many lawsuits was filed against Robinhood Markets in federal court in Manhattan by an angry customer. Rep. Alexandria Ocasio-Cortez, a member of the House financial services committee, went to Twitter to call for a hearing. Sen. Ted Cruz tweeted in response: “Fully agree.” “A message to everybody on Wall Street from somebody with nothing to lose. You only think you’re in control,” wrote one participant on the now-famous Reddit forum Wall Street Bets. “You’re trying to scare us into selling. It won’t work.” ■

HEALTH CARE

City’s $40M biotech investment pledge follows banner year for sector

ayor Bill de Blasio’s plan to award nearly $40 million in grants for biotech developments further bolsters an industry that had a record-setting 2020. De Blasio’s latest funding pledge for the industry includes $9 million to Columbia University’s Therapeutic Validation Center for early state research, $13 million to help launch the Einstein-Montefiore Biotechnology Accelerated Research Center in Morris Park, $6.5 million to expand the New York Stem Cell Foundation research center in Midtown and $9 million to launch a commercial life sciences incubator

Venture-capital investors pumped $27 billion into American biotech startups last year, up from $17 billion in 2019, according to a report from the National Venture Capital Association and PitchBook. There were 57 initial public offerings in the sector, raising $10 billion for the companies.

Signs of change New York has long trailed both Silicon Valley and the Boston region in attracting life sciences companies, in part for the city’s lack of lab space and affordable office rents in general. There are signs that is changing, however. Schrödinger, a drug-discovery software firm in Midtown, opened last year with a successful IPO that raised $232 million. Nuvation Bio, which is researching cancer therapeutics, plans to go public this year after reaching a $500 million deal with a special acquisition company in the fall. Of the 12 New York technology startups to reach public markets last year, four were in biotech, according to data from Ernst & Young.

THE INVESTMENTS ARE PART OF LIFESCI NYC, A 10-YEAR, $500 MILLION INITIATIVE at Rockefeller University. The investments are part of LifeSci NYC, a 10-year, $500 million initiative launched in 2017 to boost jobs in the life sciences, using a mix of tax incentives and public investment in incubators.

ISTOCK

BY RYAN DEFFENBAUGH

“New York, starting six or seven years ago, has made a ton of investment in this space, and we are seeing that attract biotechs,” said Derek Steinhiser, a partner and an IPO leader for EY. Despite the progress, New York still has some catching up to do. The Boston-Cambridge region

launched 24 life sciences companies into public markets last year. But Steinhiser said New York is increasingly well positioned to grow in a market that has been helped by a potent mix of available capital and the attention brought to medical research by Covid-19. “When the life science and bio-

tech craze started around 2014, it was seen as a one- or two-year event,” Steinhiser said. “Instead, it’s been a consistent leader in the capital market space for seven years now. There is still a lot of appetite around the space from the success these companies have had in going public.” ■

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chief executive officer K.C. Crain senior executive vice president Chris Crain group publisher Jim Kirk

EDITORIAL

publisher/executive editor

Life sciences offer a ray of hope in a grim business landscape

Frederick P. Gabriel Jr. EDITORIAL editor Robert Hordt assistant managing editors Telisha Bryan,

Janon Fisher

audience & analytics manager

Gabriella Iannetta associate editor Lizeth Beltran art director Carolyn McClain photographer Buck Ennis senior reporters Aaron Elstein, Eddie Small reporters Ryan Deffenbaugh, Brian Pascus,

Natalie Sachmechi, Shuan Sim executive assistant Devin Cavallo to contact the newsroom:

www.crainsnewyork.com/staff 212.210.0100 GETTY IMAGES

At least in part, the pandemic— or rather, ways to fight it—have captured the attention of investors, and they are more than willing to pump money into startups and other promising ventures in the health care sector. In addition to the good jobs and ripple effects the life sciences sector produces for the local economy, it also has helped prop up the real estate industry at a critical time in New York. Employees at medical research firms generally work better in teams, side-by-side, in laboratory settings—in other words, not from home. A CBRE report in September identified 42 life sciences firms that looked for appropriate space in the city during the previous nine months, compared NEW YORK HAS ALWAYS HAD with 29 the year before, a THE NUCLEUS TO ESTABLISH A 45% increase. THRIVING LIFE SCIENCES INDUSTRY Prices also reflected the trend, with average asking rents for others, part of a 10-year, $500 lab space up 10%, according to the million initiative known as LifeSci same report. NYC launched in 2017. In the past, the life sciences And there’s plenty of private sector has found it difficult to find funding around. Venture-capital the type of laboratory space it investors poured $27 billion into needs, but that is changing. With American biotech startups last demand down from traditional year, a whopping 58% increase office tenants because of the over 2019. s it time for some good news? With the city still struggling to distribute enough doses of the Covid vaccine to break the back of the pandemic, and with sectors such as restaurants, hotels and the theater district on life support for nearly a year now, there is one industry that is flourishing in New York. Oddly enough, some of its success is directly related to the pandemic. We’re talking about the life sciences sector, and no matter how you measure it, the industry is thriving. Mayor Bill de Blasio just announced $40 million of grants for life sciences programs at Columbia University, Einstein-Montefiore and Rockefeller University, among

pandemic, landlords increasingly have been willing to convert buildings—or parts of buildings— into laboratories. There also has been a steady move toward more new construction designed for research facilities. Whether those trends continue is anyone’s guess, but there is reason to believe they will. New York has always had the nucleus to establish a thriving life sciences industry. It has world-class medical academic centers, and it produces more than enough scientists and engineers to support such an industry. New York still lags major health

care regions such as Silicon Valley and Boston by a long stretch. But through public-private partnerships, the industry is being nurtured. One effort, for example, seeks to ensure that enough incubator space is available for small biotech startups—companies that could turn into medical powerhouses in the future. The emergence of the life sciences industry is not going to turn around the city’s fortunes by itself. But it is a welcome development that should continue to be encouraged and supported in the business community and at all levels of government. ■

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Employing former inmates shouldn’t be an opportunity for exploitation

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BY DONOVAN RICHARDS

s we emerge from this pandemic, we must reimagine New York City’s workforce. We need to hire local residents and increase opportunities for communities of color across Queens and the rest of the boroughs. But the local hiring must involve more than dead-end, low-wage jobs. That is why I was shocked to learn that some prominent real estate developers are using a new breed of predatory companies, known as body shops. Such firms specialize in brokering the labor of formerly incarcerated people of color. Release on state parole puts a person at risk of reimprisonment for not staying consistently employed. The so-called body shops use that fact to get employees to accept wages barely above minimum wage while usually charging clients for their services at least double that. Body shops therefore profit from an exploitation dis-

count: the gap between a fair and unfairly coerced wage. When I was a City Council member, I represented neighborhoods with some of the highest incarceration rates in Queens, such as Arverne, Edgemere and Far Rockaway. The development boom in Queens has made jobs available in construction, including to returning citizens, but the data shows their wages start low and stagnate. As a result, they struggle to exit cycles of poverty and recidivism. Projects that were in my district, including the Arker Cos.’ Edgemere Commons and Arverne East, are bringing critical affordable housing and community space. But we also must ensure that the projects create jobs through which people can live securely. As we imagine a post-pandemic New York City, we need to expand our conception of criminal justice reform to include the plight of re-entering community members. They and their families are the true

victims of mass incarceration. The release of a human being must be reimagined as an opportunity for rebuilding a life, rather than a new opportunity for body shops to maximize their profits.

Unions Union collective bargaining agreements squarely address the problem by requiring employers to pay all workers the same fair wages and benefits, regardless of personal histories. Laborers Local 79, which represents and organizes construction workers, has stood out in the struggle. It created a nonprofit organization eight years ago, Pathways 2 Apprenticeship, which specializes in recruiting and training people from communities most affected by mass incarceration. The apprenticeship has transformed the lives of hundreds of people. Many re-entry organizations pathologize justice-affected workers. Local 79 says it’s the system,

not the worker, that is pathological. The union has busted the myth that through undercompensated demeaning work ex-prisoners get taught tough lessons about an “honest day’s work.” Just like the rest of us, formerly incarcerated people respond to— and are entitled to—respect in the workplace and the promise of a family-sustaining career. Along the way, Local 79 has cultivated a base of active, committed members. It has shown the path to real re-entry. As borough president, I pledge my policymaking will prioritize re-entering workers’ conditions and remain informed about which development projects are in the best interest of Queens. I call on other local leaders to join me in elevating this issue of real re-entry as a genuine policy priority in planning New York City’s recovery. ■

customerservice@crainsnewyork.com 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or $129.00 one year, for print subscriptions with digital access. Entire contents ©copyright 2021 Crain Communications Inc. All rights reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement. CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain chief executive officer K.C. Crain senior executive vice president Chris Crain secretary Lexie Crain Armstrong editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]

Donovan Richards is the Queens borough president.

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OP-ED

BY PETER MADONIA

n a normal, pre-Covid year, this would be when those who work in New York City’s restaurants would be thinking about love. And by love I mean Valentine’s Day, the biggest dining-out night of the year, right ahead of that other “let’s get dressed up and go out” special occasion, Mother’s Day. By now the menus would be set, and most, if not all, the tables booked. You might think restaurants design special Valentine’s Day prix fixe menus to increase their profits. But the fact is, limited choices are the only way to avoid kitchen bottlenecks, keep the servers moving and turn over so many tables. In the Belmont section of the Bronx, we have dozens of dining establishments with long family histories. In a normal, non-Covid year,

Valentine’s Day, our big night, the restaurateurs I know are filled with dread, because in New York City— and in our great state, only in New York City—our dining rooms are closed. The few diners we have are sitting on the street, where—as is traditional this time of year—it’s very cold. To my mind, Gov. Andrew Cuomo’s aggressive moves to prohibit indoor dining in the five boroughs have ceased to make any sense. In the beginning, sure, an emergency called for emergency measures. But now we know so much more, and we know that it’s more likely you’ll get infected at a small gathering in your home than in a restaurant, so why are the city’s restaurant interiors off-limits while those in other counties are open at 50% capacity? Where is the science that shows germs spread faster in Queens than Nassau County, for example? With Valentine’s Day upon us, it’s time for a new approach, governor. We need our city’s dining rooms opened at least at 25% capacity immediately. Prior to the pandemic, 325,000 New Yorkers worked in restaurants and bars in the city. By April that number had plummeted to 91,000. When restaurants reopened in November at 25% capacity and with outdoor dining in full swing, 102,000 workers, including chefs, waiters, hostesses and bartenders, were re-employed. Now, 132,000

WHERE IS THE SCIENCE THAT SHOWS GERMS SPREAD FASTER IN QUEENS? Enzo’s of Arthur Avenue, for example, would serve about 350 customers on an average Saturday night; on Valentine’s Day they’d do about 850 “covers.” That means every one of the restaurant’s roughly 220 chairs would be filled by four diners in the course of the evening. And let me tell you, it’s a real scene. But instead of looking forward to

BLOOMBERG

Hey, Cuomo, Valentine’s Day is near. Where’s the love for restaurants?

city restaurant workers are without income due to the ban. So many restaurants have closed. Probably at least one you loved has closed. Others are dark. I recently walked by a longtime favorite, Café Un, Deux, Trois near Broadway, and it was dark as a tomb. Broke my heart. We’ve done reasonably well on Arthur Avenue. We closed the street to vehicle traffic on summer weekends, and the neighborhood became a beautiful, European-style piazza. Some nights all the tables were filled. And once restaurants could do 25% capacity inside, well, the owners could see light at the end of the tunnel. Now? Last week I saw a few tables filled on a not-so-freezing day, but

on other days? Not a soul. It just makes no sense. Restaurants in “orange zones” everywhere in the state have been allowed to accommodate diners indoors since a judge upstate expressed doubt about the Cuomo administration’s indoor-dining ban. Everywhere that is, but New York City. Chicago Mayor Lori Lightfoot is pushing Illinois to open restaurants. I’m not being Pollyanna about Covid-19. Every day we hear that the national death toll is rising, and we learn about more unspeakable family heartbreak. I personally lost two dear friends as well as one of our Arthur Avenue elders, Joe Migliucci, owner of Mario’s. I’m not putting business ahead of lives. But now we know from the governor’s

own data that going to a restaurant can actually be safer than staying home. Roughly three-quarters of all Covid-19 cases transmitted in New York state have occurred in small social gatherings inside people’s homes, while only 1.4% have occurred in restaurants. I mean, it’s not even close. Restaurants have invested in expensive filtration systems, and many take customers’ temperatures and record phone numbers for contact tracing. And then there’s the absurdity of geography. Right now Nassau County, for example, has indoor dining at 50% capacity. Walk a block down Northern Boulevard from Nassau into Queens and you may not eat inside. I even saw the Nassau County executive, Laura Curran, on Good Day New York recently inviting city residents to eat in her county. Restoring some percentage of indoor dining by Valentine’s Day would give a huge boost to a struggling industry, would create fair competition around the state and could actually make people safer. Please, governor, don’t be the man who killed Cupid. ■ Editor’s note: Gov. Andrew Cuomo said Friday restaurants in the city could reopen at 25% capacity, starting on Valentine’s Day. Peter Madonia, a former chief of staff to Mayor Michael Bloomberg and chief operating officer of the Rockefeller Foundation, is chairman of the Belmont Business Improvement District in the Bronx.

OP-ED

BY KEVIN MILLER

s 2021 rolls on, New York state and its local governments are focused on getting the economy back on a sustainable growth path, funding vital state programs and helping communities recover from the pandemic. The pandemic has highlighted the link between public health and environmental pollution; it has also given us a glimpse of what a future could look like with cleaner air. New York can chart a path forward that achieves statewide climate, public health and economic development goals by eliminating barriers to significant private investment in clean technology and infrastructure—in line with its Climate Leadership and Community Protection Act. A study conducted by Harvard University found that communities with high levels of air pollution are more affected by Covid-19 than those in less polluted areas. In New York, transportation emissions account for 30% of the state’s overall emissions, and half of New Yorkers live in areas with failing air quality.

We need to dramatically improve our air quality, strengthen public health measures and get New Yorkers back to work without burdening already stressed budgets.

Initiatives A clean fuel standard accomplishes these objectives by facilitating the transition away from fossil fuels toward cleaner fuels, promoting transportation electrification, attracting businesses and private investment to the state, and creating jobs in clean transportation infrastructure. A clean fuel standard would require fuel suppliers such as oil refiners and importers to reduce the greenhouse gases associated with their fuels while encouraging the production and use of low-carbon alternative fuels and expanded transportation electrification. These initiatives would help create a dependable, long-term market for clean fuels and drive investment into these industries, without additional cost to the state or taxpayers. To meet New York’s goal of having 850,000 electric vehicles on the road by 2025, the state needs a 1,500% increase in adoption of the new vehi-

cles over five years with a commensurate increase in access to charging infrastructure at home, work, around town and along highways. A clean fuel standard addresses both of these targets, as well as broader greenhouse gas reduction targets, by attracting investment in electric vehicle charging and generating significant funding that can be used to expand access to the benefits of electric transportation across the state. Program funds can also be earmarked for providing additional support for low- and moderate-income communities. Clean fuel standards work by attracting investment in cleaner fuels and infrastructure. This can help fleet operators electrify faster, thereby eliminating harmful localized air pollution from diesel engines. It also improves the business case for owning and operating charging stations, which accelerates deployment and further encourages more electric vehicles. In California, payback periods on charging stations have been cut in half because of the state’s clean fuel standard. In fact, over the course of 2013 through the first half of 2020, California’s clean fuel stan-

CLEAN CHOICE ENERGY

Why New York needs a clean fuel standard

dard generated over $1.2 billion in value that has gone toward transportation electrification projects and expanded the use of electricity as a transportation fuel (displacing gasoline and diesel) by over 3,600%. Critically, a clean fuel standard can be implemented at no additional cost to the state, meanwhile creating the market to ensure long-term, sustainable financing to reach New

York’s ambitious climate goals outlined in the Climate Leadership and Community Protection Act. This is important while New York faces an economic downturn, which is estimated to cost the state $63 billion in revenue through 2024. California has been the home to the growing clean transportation industry, supporting 300 companies and more than 20,000 jobs. In the next five years, California’s clean fuel standard could generate more than $2.5 billion for transportation electrification, including public transportation, marine ports and school bus fleets. New York cannot afford to pass up this opportunity to restart the clean economy, address air pollution and climate change, and become a national leader in transportation electrification. By including a clean fuel standard in the Senate and Assembly onehouse budgets, the state Legislature can catalyze significant investment in clean transportation and create a safer, healthier New York. ■ Kevin Miller is the director of public policy at ChargePoint, an electric vehicle infrastructure company.

FEBRUARY 1, 2021 | CRAIN’S NEW YORK BUSINESS | 9

ASKED & ANSWERED Transit Innovation Partnership INTERVIEW BY RYAN DEFFENBAUGH

earable sensors for social distancing. Portable air filters. Real-time crowd monitoring on buses and trains. The Metropolitan Transportation Authority has tested a range of technologies designed to help keep bus and subway riders moving safely. As leader of the Transit Innovation Partnership, a nonprofit collaborator with the MTA, Rachel Haot guides the study of technologies that respond to Covid-19, using technical expertise honed as an executive in the Bloomberg and Cuomo administrations. The partnership worked with the MTA to introduce the Covid-19 Response Challenge to find technology to address pandemic needs. How did it come together?

In July we announced the challenge and received nearly 200 applications from around the world in a matter of weeks. The transit agencies—the MTA but also the New York City Department of Transportation, the Port Authority, New Jersey Transit and the Department of Education— selected eight companies to try new technologies. Now the next step is for the transit agencies to decide who they want to engage with for a yearlong pilot.

What is the MTA looking for?

By summer the science had pointed to the fact that the virus was spreading primarily through aerosols.

WHO SHE IS Executive director of the Transit Innovation Partnership, a public-private initiative of the MTA and the Partnership for New York City AGE 37 HOMETOWN Dobbs Ferry, Westchester County RESIDES Rockaway, Queens EDUCATION Bachelor’s in history, New York University CALL TO ACTION Haot was attending her second day of classes at NYU on 9/11, which shaped her interest in serving the public sector. GOTHAM GETAWAY A favorite spot in the city for Haot is the Rockaway Boardwalk and beach, not far from her home.

Federal funding is absolutely critical, and public transit is chronically underfunded. At the same time, often the constraints from times of crisis result in breakthroughs. We’ve seen public transit rise to the occasion of the pandemic and accelerate modernization.

How do you plan for the potential changes in transit usage thanks to the proliferation of remote work?

It is important to note that a recent partnership survey found that 78% of workers anticipate using public transit when they return to work. So public transit continues to be critical. Even today New York moves millions more people than other cities around the world.

The MTA in October launched a digital subway map. What possibilities does it offer?

MEDIA ROOTS Before working in the Bloomberg administration, Haot founded GroundReport, a crowd-sourced news startup.

So a main area of interest is, how do we effectively purify the air? The fantastic thing about these challenges is you find new approaches you would not have anticipated, such as micromobility that allows customers greater flexibility in how they move around. There’s a partnership with Brooklynbased e-scooter and e-bike company Beyond. Another company, CitySwift, can predict crowding levels on buses and adjust the schedules to moderate that.

TITLE SPONSOR

Wednesday, March 3 | 4-5 p.m.

How the Big Apple will regain its shine In the wake of 9/11, Dan Doctoroff, then deputy mayor of economic development under Bloomberg, contemplated the same issues we face today. Are cities still necessary? With the redevelopment of the World Trade Center, the High Line and Hudson Yards, among others, the answer came as a resounding yes. Join Crain’s on March 3, when we talk to Doctoroff, now CEO of urban innovation company Sidewalk Labs, about how New York City can come back again.

Daniel L. Doctoroff, Chairman & CEO, Sidewalk Labs

RESERVE YOUR SPACE TODAY: CrainsNewYork.com/MarchBizForum For event questions: Ana Jimenez | 212-210-0739 | crainsevents@crainsnewyork.com For sponsorship opportunities: Kate Van Etten | kvanetten@crain.com

10 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 1, 2021

It is much more than a map. It is realtime scheduling and departure times. It is the location of every train, the status of the elevator and the escalator at your station—tools to enable users with limited mobility to plan out their routes. It is an unprecedented level of real-time information.

How has government technology in general been tested by Covid-19? Whenever you have an emergency situation, it’s going to reveal where your vulnerabilities are. We’re now seeing a great amount of investment in technology that will have benefits for decades to come. ■

CARA WILLENBROCK, PARTNERSHIP FOR NEW YORK CITY

RACHEL HAOT

How does the MTA’s current financial crisis affect its ability to adopt new tech?

DOSSIER

Advertising Section

PEOPLE ON THE MOVE

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

ACCOUNTING

ADVERTISING / PR / MARKETING

ARCHITECTURE

LEGAL

PROFESSIONAL SERVICES

Grassi

W2O Group (21GRAMS)

SBLM Architects

Latham & Watkins

The Advance Group

Aaron Rupper was named Partner at Grassi, where he is a key member of the Construction and Architecture & Engineering practices. Rupper He has extensive experience helping contractors, architects and engineers achieve their financial goals. Aaron Cirelli specializes in financial reporting, regulations and best practices that impact his clients’ operations and tax planning. Sarah Cirelli was promoted to Chief Marketing Officer and will assume an expanded leadership role in shaping Grassi’s go-tomarket strategies. She works alongside the firm’s partners and professionals to achieve the growth goals of each industry and service line. She led Grassi’s rebranding in 2020 and was instrumental in pivoting the firm’s service offerings during the COVID-19 crisis.

Larry Mickelberg will develop innovative approaches to digitize the commercial vision and strategy as Group President for W2O’s creative business, 21GRAMS. As a recognized thought leader on digital transformation in the future of health & wellness, Mickelberg was recognized by MM&M’s “Top 50 Health Influencer” power list in 2019. Prior to this, Mickelberg was Managing Director at Deloitte Digital, a global Partner and CDO at Havas Health, and part of the founding executive team at Digitas.

Antonio Palladino, RA, NCARB, has joined SBLM Architects as Senior Project Architect. He brings extensive design and architecture experience to his new role, working on SBLM’s Healthcare, Commercial, Institutional and Residential projects.

Gianluca Bacchiocchi has joined the New York office of Latham & Watkins as a partner in the Energy & Infrastructure Industry Group and a member of the Latin America and Capital Markets Practices. Bacchiocchi represents sponsors, issuers, underwriters, investors, and enhancers in a broad range of cross-border capital markets transactions in Latin America.

The Advance Group, with offices in Farmingdale, NYC and Queens, is proud to welcome Jack Macejka as Vice President of National Accounts. Jack brings his unique experience and skills, servicing companies around the world with their office furniture installation, moving, warehousing, and IT needs. Most recently, Jack was employed at WeWork, managing office openings throughout its east coast territories, including Minneapolis, Nashville, Boston, Philadelphia, and NYC.

ADVERTISING / MARKETING

SPIN Media SPIN has appointed industry legend Mark Stroman as Chief Marketing Officer, bolstering the leadership team of one of the most recognizable names in music journalism, which recently celebrated its 35th Anniversary. Stroman was formerly SVP, Marketing for KISS at McGhee Entertainment, and Agent at Endeavor. He is an award-winning producer and brand builder, with a proven track record of coordinating strategic partnerships with top brands, including Google, Snapchat, BMW, NFL, and more.

PROMOTE. Why not?

CRAINSNEWYORK.COM I OCTOBER 26, 2020 I

ASKED & ANSWERED Few qualities are more vital to the health of any business than financial experts in tax regulation, audit, estate administration, forensic accounting, organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency. Rarely has the value of both been more strongly felt than in recent structure. They represent an extraordinary group of professionals from months. From stress-tested balance sheets to fast-changing regulations, firms of varying size and renown. To find these honorees, Crain’s consulted with trusted sources in the and reconfigured supply chains to “new normal” working arrangements, business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest of businesses. Standing tall within this chaotic breach are the foot soldiers of profes- particular. The nominations submitted by individuals and firms in the New Few qualities are more vital to the health of any business than financial experts in tax regulation, audit, estate administration, forensic accounting, York metropolitan area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management consultants. organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency. In selecting the 86 honorees for this year’s list of Notable Women in counting and consulting notables was chosen for her career achievements Rarely has the value of both been more strongly felt than in recent structure. They represent an extraordinary group of professionals from Accounting and Consulting, Crain’s sought to spotlight the accomplished and involvement in industry and community organizations—and at times and renown. months. From stress-tested balance sheets to fast-changing regulations, firms of varyingI size 28, 2020 I to help New York rebound SEPTEMBER from the coronavirus. metropolitan area professionals and problem-solvers who keep business- her effortsCRAINSNEWYORK.COM To find these honorees, Crain’s consulted with trusted sources in the and reconfigured supply chains to “new normal” working arrangements, Read their biographies and learn how the members of this remarkable es churning. The talented individuals presented here are a diverse group, business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest of businesses. skilled at resourceful innovation and disruptive thinking. These women are cohort keep the gears of business whirling. The nominations by individuals andadministration, firms in the New Standing tall within thisqualities chaoticare breach soldiersofofany profesexperts insubmitted tax regulation, audit, estate forensic accounting, Few moreare vitalthetofoot the health businessparticular. than financial York metropolitan organizational area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management transformation, advisory services, fundraising and business equilibrium and organizational efficiency.consultants. counting and consulting notables chosenan forextraordinary her career achievements In selecting the 86 honorees for this list been of Notable structure. They was represent group of professionals from Rarely has the valueyear’s of both more Women stronglyinfelt than in recent andregulations, involvement infirms industry and community organizations—and at times Accounting and Consulting, Crain’s sought to spotlight the accomplished of varying size and renown. months. From stress-tested balance sheets to fast-changing efforts to help New from theCrain’s coronavirus. metropolitan area and professionals andsupply problem-solvers businessTo York find rebound these honorees, consulted with trusted sources in the reconfigured chains to who “newkeep normal” working her arrangements, Read their biographies learn how theand members this remarkable es churning. The talented individuals presented here are aeven diverse group, of businesses. businessand world in general in the of accounting and consulting realms in the Covid-19 pandemic has challenged the strongest cohort the gears of business whirling. submitted by individuals and firms in the New skilled at resourcefulStanding innovationtalland disruptive thinking. Theseare women aresoldiers particular. The nominations within this chaotic breach the foot of keep professional service firms, led by accountants and management consultants. In selecting the 86 honorees for this year’s list of Notable Women in Accounting and Consulting, Crain’s sought to spotlight the accomplished metropolitan area professionals and problem-solvers who keep businesses churning. The talented individuals presented here are a diverse group,

LAURA PETERSONskilled at resourceful innovation and disruptive thinking. These women are

York metropolitan area were rigorously vetted. Ultimately, each of the accounting and consulting notables was chosen for her career achievements and involvement in industry and community organizations—and at times her efforts to help New York rebound from the coronavirus. Read their biographies and learn how the members of this remarkable cohort keep the gears of business whirling.

Managing Director and Communications, Media and Technology Northeast Business Leader Accenture

LAURA PETERSON

Laura Peterson’s résumé lists a whopping 10 positions she’s held at the multinational professional services company Managing Director and Communications, Media and Technology Northeast Business Leader Accenture since joining the firm in 2000. In her current role as Accenture the Northeast business lead for communications, media and technology, the enterprising ladder climber presides over a team Laura Peterson’s résumé lists a whopping 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held at the multinational professional services company andinCommunications, Media and Technology Northeast Business Leader million profit-and-lossManaging statementDirector for clients the Accenture since joining the firm in 2000. In her current role as aforementioned sectors as well as the high tech sector. Peterson Accenture the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Laura Peterson’sstructure. résumé lists a whopping within Accenture’s global management Since 2017, she 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held the multinational professional company has been a board adviser to at Fairygodboss, an online platformservices that million profit-and-loss statement for clients in the since joining the firm in 2000. In her current role as seeks to elevate womenAccenture in the workplace. aforementioned sectors as well as the high tech sector. Peterson the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team within Accenture’s global management structure. Since 2017, she of 3,000 professionals. Peterson is charged with managing a $750 has been a board adviser to Fairygodboss, an online platform that million profit-and-loss statement for clients in the seeks to elevate women in the workplace. aforementioned sectors as well as the high tech sector. Peterson works with key business leaders among more than 40 clients and within Accenture’s global management structure. Since 2017, she has been a board adviser to Fairygodboss, an online platform that seeks to elevate women in the workplace.

LAURA PETERSON

PAT WANG Healthfirst

INTERVIEW BY JENNIFER HENDERSON

at Wang, president and CEO of Healthfirst, a nonprofit insurer formed by a group of health care systems, had been working to advance value-based care long before the pandemic. The concept involves paying hospitals and physicians based on their patients’ outcomes rather than on the volume of services they provide. Now, as health care providers face unprecedented financial strain due to the Covid-19 crisis, Wang says such payment arrangements are more critical than ever. Not only do they improve the quality of care for patients—including the 1.5 million plan members Healthfirst serves throughout the city, Long Island and surrounding areas—but they also generate fiscal benefit for the facilities, practices and health centers that serve them. How does Healthfirst contribute to value-based care? What you understand as profit in another health insurance company’s balance sheet at Healthfirst is contractually-driven surplus that goes back to the delivery system. Eighty percent of the premiums we get for medical services flows through value-based payment arrangements, which means that providers benefit when there is a surplus in the premium. If less money is spent on fee-for-service claims, the surplus is part of the contractually-obligated payment stream. What has that meant during the pandemic? For April through June, we are distributing $250 million in those surpluses [about double that of the same period last year], and we’ve expedited the calculation and reconciliation of those amounts to get them out the door faster because the delivery system really needs it. Why are value-based payments vital now and in normal times? In the best of times, we have always been trying to push for this model because it aligns the incentives around trying to keep people healthy and avoiding unnecessary care. The providers are aligned with that goal because they benefit from it if they can reduce avoidable care. Consider Covid-19 to be like a war. In war times, the model has been a lifesaver because there is this artificial depression of utilization, and that’s why the providers have lost so much money—their revenue has dried up. But because we have these risk contracts, the surplus that is there, that’s what has gone out the door to them.

DOSSIER WHO SHE IS President and CEO, Healthfirst AGE 66 BORN Jersey City RESIDES Manhattan EDUCATION Bachelor’s in history and East Asian studies, Princeton University; J.D., New York University School of Law FAMILY MATTERS Wang is married and has one son who lives in Brooklyn. GLOBAL TIES She has lived in Croatia, Taiwan as well as China, where she had more than 20 first cousins. FLARE FOR FOOD Wang has become reacquainted with the joy of cooking as a result of the pandemic. EYE ON MEDICAID About three-quarters of Healthfirst’s members are Medicaid beneficiaries. The insurer’s initial response to the crisis included having its care managers make sure members had medicine and durable medical equipment to stay at home safely. BUDGET CUTS Wang says the magnitude of the state’s Medicaid cuts—instituted to pare back on spending growth—is devastating. “Cuts to us as a Medicaid plan are cuts to hospitals.”

What happens when patients again begin seeking services? We do see utilization coming back, and we have been encouraging our members to get needed care because people have put a lot of stuff off. We have to see whether the bounce back is gigantic or it just brings things back to a steady state. If we go back to a more normal utilization pattern, then the regular incentives of trying to align around good preventive care and avoiding unnecessary care, they just kick in. How can the city safely bounce back from the pandemic? Continue doubling down on the public health measures already in place: wearing masks, social distancing and hand sanitation. We know what to do. But I think a singular focus on getting the schools open for full learning should top the list of what we are aiming for. We should measure our success against that goal. As an employer, I can tell you that we will not be able to get fully back to work until the thousands of employees with school-age children can get their kids back into school. It’s of course better for all children and particularly critical for poorer children. The city’s economic recovery is going to hinge on how quickly and how well we can get that done so that parents can resume their normal lives too. As a longtime resident of the city who has watched us recover from recession, 9/11 and Hurricane Sandy, I believe in the city’s ability to bounce back against the odds. But this time is going test all of us, and we should be sober about the need for everyone to contribute to the solution. What challenges face the broader insurance industry? Balancing the needs and expectations of consumers who need and deserve good health care coverage, expanding access however we can and doing it within an increasingly constrained economic environment. This is especially true with Medicaid, where the state’s budget situation is dire at the same time as people’s needs are increasing. Given that Healthfirst has over 1 million Medicaid members, the potential impact of the state’s budget is especially concerning. For me, our priority has to be enabling as many people as possible to have full access to high-quality care, and it’s going to be a challenge to figure out how to do that in this economic environment. Insurers also need to be mindful of the hurt being experienced by so much of the provider delivery system. The value of our products relies on having strong doctors, hospitals and community resources. Balancing all of this in a financially viable way is going to be a challenge. ■ Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. #NB20080

For more information contact: Lauren Melesio Director, Reprints & Licensing lmelesio@crain.com • (212) 210-0707

ADVERTISING / PR / MARKETING

W2O Group Marcos Mendell joins W2O as Executive Vice President, Health Platform Innovation and will focus on creating scalable integrated MarTech/AdTech products that embed marketing performance and AI driven insights, as well as client and organizational growth. Mendell comes to W2O from Syneos Health, where he was Global Business Technology Lead, Commercial and Omnichannel Solutions. Previously, Mendell held various leadership roles at Pfizer, Wunderman Thompson, Tribal DDB, and various other agencies.

ADVERTISING / PR / MARKETING

W2O Group As W2O’s new Chief Digital Officer, Jo Ann Saitta will lead the development of omnichannel performance marketing capabilities, activating audience insights through technology and data strategies. Named one of “16 Women Changing Healthcare” by MM&M and CIO of the Year by the NJ Technology Council, Saitta is a member of the Google Health Marketing & Advertising Advisory Board. She most recently served as the global Chief Digital Officer at Omnicom Health Group, and held various roles at IBM.

LEGAL FINANCIAL SERVICES

KeyBank KeyBank has hired Yulia Murphy as Senior Relationship Manager - Healthcare Banking, serving clients in Metro NY, the Hudson Valley and Southern CT. She joins Key from M&T Bank, where she held a similar position. Murphy has 15 years of commercial banking experience, beginning her career in credit roles focused on middle market companies before specializing in the healthcare segment. She holds a bachelor’s from University of Missouri and master’s from NYU’s Leonard N. Stern School of Business.

HUMAN RESOURCES

Consumer Alight Solutions Cathinka Wahlstrom has been named president and chief commercial officer of Alight, a leading cloud-based provider of integrated digital human capital and business solutions. Cathinka will be responsible for accelerating Alight’s growth strategy, leading all aspects of its commercial organization, including North America sales, strategic accounts, channels and partnerships and marketing. Cathinka joins Alight from Accenture where she served in various leadership roles for more than 26 years.

ANNOUNCE

YOUR BIG NEWS IN CRAIN’S!

Latham & Watkins Guido Liniado has joined the New York office of Latham & Watkins as a partner in the Energy & Infrastructure Industry Group and a member of the Latin America and Capital Markets Practices. Liniado represents sponsors, issuers, underwriters, investors, and enhancers in a broad range of cross-border capital markets transactions in Latin America. LEGAL

Olshan Frome Wolosky LLP Robert M. Appleton joined Olshan Frome Wolosky LLP as Partner in the White Collar Defense & Government Investigations practice. Appleton is an internationally recognized cross border litigation attorney assisting global/US companies, organizations and individuals in regulatory & enforcement actions in FCPA, AML, fraud and corruption, insider trading, and government investigations & compliance. Prior positions include serving 15 years in the US DOJ and as the first UN anticorruption chief. MEDIA / ENTERTAINMENT

Red Apple Media, 77 WABC John Catsimatidis, CEO of Red Apple Group, the parent company of Red Apple Media and 77 WABC Radio has announced that Emily Pankow, Esq. has been appointed Red Apple Media’s General Counsel. After fifteen years with the organization working across the company’s diverse portfolio of business interests, she has risen to the position of General Counsel of Red Apple Media.

PROFESSIONAL SERVICES

Crowe LLP Chris Oliva, CPA, has been appointed the office managing partner for the New York office at Crowe LLP, a public accounting, consulting, and technology firm. In this role, Oliva will oversee local office personnel and strategy while continuing to lead tax services in the New York office. He earned his bachelor’s degree in business administration from Georgia State University and his master’s in taxation from the University of Toledo.

REAL ESTATE

The NHP Foundation The NHP Foundation (“NHPF”), a national not-for-profit provider of affordable housing, announced the promotion of Sr. Vice President Eric W. Price to Executive Vice President and CFO. Price joined NHPF in 2019 with 30 years of experience in affordable housing and community development. He has been integral to new project developments: The Strand Theater in Washington, D.C. and Park Heights in Baltimore, MD. Price also chairs NHPF’s RSI (Racism and Social Injustice) task force.

FEBRUARY 1, 2021 | CRAIN’S NEW YORK BUSINESS | 11

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TECHNOLOGY

BY RYAN DEFFENBAUGH

ith the pandemic bringing in hundreds of new clients for its software, which allows contactless ordering and payment at restaurants, Astoria startup Bbot has added $4 million to its seed funding round. Bbot’s software allows dine-in customers to use their phone to scan a QR code that launches the restaurant’s menu. Patrons can then use their device to place an order and pay, without having to handle a physical menu or check. The startup’s funding round, an-

ity jobs in the city down 140,000 in December compared with December 2019, a 43% drop. But startups that cater to restaurants have found success by offering solutions—such as contactless payments—that help with social distancing and operating with a smaller staff. “Restaurants have really taken this opportunity to retool their whole tech operations,” said Steven Simoni, Bbot’s CEO and co-founder. “They were shut down for a time, so it was, like, ‘OK, what new tools can we use to reopen?’ ” Restaurant-focused startups SevenRooms (based in Chelsea) and Lunchbox (headquartered in Queens) have raised funds in the past six months as well. Bbot entered 2019 with a client list of about 100. The firm began this year with 600, according to Simoni, helped by partnerships with other hospitality software companies such as SevenRooms, which integrated Bbot’s mobile ordering into its reservations and checkouts platform. The firm’s largest competitor is

BBOT PLANS TO USE THE ADDITIONAL FUNDING TO GROW ITS STAFF nounced last Tuesday, adds to a $3.3 million investment deal finalized during the summer. The company launched in 2017. The restaurant industry as a whole has been crushed by the Covid-19 pandemic, with hospital-

Toast, a hospitality startup in Boston valued at $5 billion that facilitates both on-site and online ordering. Bbot charges venues $149 to $199 per month for its software, along with a roughly 2% credit card processing fee. Customers also can place delivery orders through Bbot, fulfilled by third-party services such as DoorDash and Relay, which charge separate fees.

Pushed by pandemic Robert Guarino, chief executive of Five Napkin Burger, started working with Bbot in 2018, using mobile-phone orders for Reunion, a casual, surf bar–theme restaurant in Hell’s Kitchen. He said the disruption of the pandemic pushed him to try to integrate the system at Five Napkin’s four full-service restaurants in Manhattan, allowing phone ordering at tables. “Customers are now used to digital ordering, so I think it is here to stay,” Guarino said. “Our online ordering is also now powered by Bbot, so I like that our guests are having a similar ordering experience wheth-

er it is dine-in or takeout.” The software works in tandem with Five Napkin’s staff, he said. The staff is still taking some orders, answering questions and running food. Bbot plans to use the additional funding to grow its staff, with roughly 10 new hires, reaching 65 total. Through expanding its engineering staff, Simoni said, the company will offer restaurants more customization options within the app. Simoni launched the company out of San Francisco, with a focus on developing a robot to deliver drinks to tables. When restaurants proved more interested in the software to order the drinks, the company pivoted. There is still one bar—Tokyo Kitty in Cincinnati— that uses the bots to deliver cocktails.

BBOT

Contactless payment startup grabs $7M in funding as restaurants go digital

The firm’s center of operations shifted to New York two years ago, as Simoni felt the city’s restaurant scene provided a stronger base of operations. The company operates remotely, however, with employees across 14 states. ■

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Thursday, March 18 | 4-5 p.m.

Speakers Helena Rose Durst Principal, The Durst Organization

Don Peebles

Chairman and CEO, The Peebles Corporation

James Whelan

President, REBNY

Register today at www.crainsnewyork.com/MarchNYNSummit For event questions: Ana Jimenez | 212-210-0739 | crainsevents@crainsnewyork.com For sponsorship opportunities: Kate Van Etten | kvanetten@crain.com SPONSORED BY:

12 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 1, 2021

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REAL ESTATE

Developer Gotham Org. to bring mixed-use tower to Far West Side THE REAL ESTATE FIRM IS PLANNING A 47-STORY, 453UNIT TOWER ON 10TH AVENUE

BY EDDIE SMALL

he Gotham Organization is in the planning stages for an enormous mixed-use project for Manhattan’s Far West Side. The real estate firm has filed plans with the city for a 47-story, 453-unit tower at 550 10th Ave. that will span about 436,000 square feet. According to the filing, it will stand 520 feet tall and include residential, commercial and community space. Gotham said it hopes to start construction early next year.

to a request for comment.

Smaller sites

The property, located by the Lincoln Tunnel between West 40th and West 41st streets, is home to Covenant House, a nonprofit started in the late 1960s to provide shelter for homeless children. Covenant House has owned the building since at least 1989, property records show. Gotham is currently overseeing construction of a new Covenant House building at 460 W. 41st St. The nonprofit plans to leave 550 10th Ave. and move into its new building once the work is done. At

GOOGLE MAPS

Covenant House

that point, Gotham plans to buy 550 10th Ave. for its mixed-use development. “Gotham is proud to be working with Covenant House to develop a

state-of-the-art headquarters for the organization,” Gotham President Bryan Kelly said, adding that the project “reflects Gotham’s deep-rooted commitment to work-

ing collaboratively with mission-driven nonprofit organizations.” Representatives from the nonprofit for children did not respond

Filings for buildings of more than 300,000 square feet dropped by 35% from 2019 to 2020, according to a Real Estate Board of New York report released last Monday. Overall, new building filings in New York spanned about 42.7 million square feet last year, the lowest total since 2012, the report said. The largest project filed during the fourth quarter was a mixed-use development at 2-10 54th Ave. in Long Island City, spanning about 842,000 square feet. The largest project filed during the quarter in Manhattan was a roughly 167,000-squarefoot residential building at 620 W. 153rd St. in Hamilton Heights, according to the report. ■

BLOOMBERG

Redefining

Home prices rise at fastest pace since 2014 BLOOMBERG

ome prices in 20 U.S. cities gained in November, as historically low mortgage rates continued to fuel the booming housing market. The S&P CoreLogic Case-Shiller index of property values climbed 9.1% from a year earlier, beating the median estimate of 8.7% in a Bloomberg survey of economists. It was the biggest jump since May 2014 and followed an 8% gain in October. Nationally, the Case-Shiller index gained 9.5% in November, also the most since 2014. “The trend of accelerating home prices that began in June 2020 has

now reached its sixth month with November’s emphatic report,” said Craig Lazzara, global head of index investment strategy at S&P Dow Jones Indices.

Affordability gap Historically low borrowing costs have fueled a housing boom, despite the economic fallout from the Covid-19 pandemic. With Americans gobbling up homes in the suburbs, a scarce inventory of properties to purchase has met surging demand to drive up prices. Mortgage rates for 30-year loans have been below 3% since July. But there is concern that the increase in buying power is being eroded by the jump in housing prices, creating an

affordability gap that could freeze many Americans out of the market. Phoenix, Seattle and San Diego reported the highest home price gains in November, according to a statement last Tuesday. Data for Detroit were excluded because of pandemic-related reporting delays. A separate report from the Federal Housing Finance Agency—which derives its data from mortgages that conform to Fannie Mae and Freddie Mac limits—reported that its price index rose 11% in November a year ago, the most in data going back to 1992. Home prices were up 1% compared to October, FHFA said. After peaking in September, the gains have eased in recent months. ■

what you should expect from your accountant. grassicpas.com

FEBRUARY 1, 2021 | CRAIN’S NEW YORK BUSINESS | 13

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS

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ECONOMY

New York among hardest-hit labor markets during pandemic as job losses top 10%

awaii, Michigan and New York registered the steepest declines in employment last year, underscoring the repercussions on the job market and economy from states employing stricter Covid-related business restrictions. A sharp slowdown in travel and tourism resulted in a 13.8% slump in Hawaii’s payrolls in December from a year earlier, the biggest decline among U.S. states, a Labor Department report showed Jan. 26. In Michigan and New York, states with harsh shutdown measures, employment declines exceeded 10%.

crease in the unemployment rate last year. It rose 6.6 percentage points to 9.3% in the 12 months through December. Colorado’s jobless rate jumped 5.9 percentage points to 8.4%. Nevada’s rose 5.5 percentage points to 9.2%. All are tourism-dependent states that have implemented business and travel restrictions.

Lowest rates

Alabama and Utah, which have remained largely open since the summer, have unemployment rates below 4%. Those states that rely on tourism, as well as those that STATES THAT HAVE REMAINED have been especially hard-hit by MOSTLY OPEN POSTED THE the coronavirus, are counting on FEWEST JOB LOSSES the rollout of vaccines to restore ecoAt the same time, Mississippi, nomic activity. That said, vaccine Georgia and Alabama—which have distribution is running slower than remained mostly open throughout planned, with cities including San the pandemic—posted the fewest Francisco and New York facing shortages. job losses. President Joe Biden has called for Hawaii also had the largest in-

BLOOMBERG

a $20 billion national vaccination program to speed up the pace of Covid-19 immunizations as part of a wider proposal for economic and virus relief. The funding likely would help speed up the pace of vaccinations, but Biden will have to

get Congress on board. The latest figures also give a more detailed picture of the 140,000 jobs lost in December and explain the toll from the latest coronavirus resurgence on state labor markets. Nationally, Covid-19 cases rose

each week in December, prompting some states to introduce new lockdown measures. Between November and December, Minnesota and Michigan reported the largest percentage declines in employment. ■

DEADLINE TO NOMINATE: FRIDAY, FEB. 12

NOMINATE TODAY: CRAINSNEWYORK.COM/NOMINATIONS FEBRUARY 1, 2021 | CRAIN’S NEW YORK BUSINESS | 15

THE LIST TOP MANHATTAN RETAIL LEASES Biggest transactions in the second half of 2020, ranked by square feet

THE TRANSACTIONS

38 BUCK ENNIS

FROM THE LEFT 28-40 W. 23rd St., 49 Chambers St., 52 E. 14th St., 1271 Avenue of the Americas

ADDRESS

SQUARE FEET TENANT

TENANT REPRESENTATIVE

28-40 W. 23rd St.

120,166 Home Depot

401 E. 60th St.

120,000 Home Depot

121 W. 125th St.

LANDLORD(S)

LANDLORD/SUBLANDLORD REPRESENTATIVE

NEIGHBORHOOD

DEAL TYPE

Ripco Real Estate

Williams Equities

Colliers International

Chelsea

Renewal

Ripco Real Estate

GAIA Real Estate

Ripco Real Estate

Lenox Hill

New lease

44,000 Target

Ripco Real Estate

New York State

The Prusik Group

Harlem

New lease

49 Chambers St.

32,098 Culturespaces

Newmark

Chetrit Group

The Manhattes Group

Civic Center

New lease

52 E. 14th St.

31,283 Nordstrom Rack

Crown Retail Services

The Related Cos.

Direct deal

Union Square

Renewal

1535 Third Ave.

22,047 The Dalton Schools

Newmark

KLM Equities

Newmark

Upper East Side

New lease

718 Fifth Ave.

19,050 Harry Winston

Direct deal

Paramount Group

Midtown West

Renewal

712 Fifth Ave.

17,928 Harry Winston

Direct deal

Paramount Group

Midtown West

New lease

Sour

1271 Avenue of the Americas

16,560 Avra Estiatorio

CBRE

Rockefeller Group

Rockefeller Group; CBRE

Midtown West

New lease

This For m

19 Union Square W.

16,309 Zappos

Direct deal

Walford Co.

ABS Partners Real Estate

Union Square

New lease

150 E. 58th St.

15,041 Holly Hunt

Direct deal

Vornado Realty Trust

Midtown East

Renewal

103-105 MacDougal St.

14,000 Pappas Taverna

Meridian Capital Group

Davean Holdings

Meridian Capital Group

Greenwich Village

New lease

THE

77 Bowery

11,752 East West Bank

Newmark

PD Properties

Direct deal

Soho

Renewal

1721 First Ave.

11,400 C-Town

Direct deal

Magnum Real Estate Group

Newmark

Upper East Side

Renewal

Aver 201

2686 Broadway

11,183 CVS

Newmark

Toll Brothers City Living

Direct deal

Upper West Side

New lease

166 Crosby St.

10,660 HealthQuarters

CBRE

Renaissance Properties

Lantern Real Estate

Greenwich Village

New lease

330 Madison Ave.

9,771 Gulf International Bank

Cushman & Wakefield

Munich Reinsurance America

JLL

Midtown East

New lease

1227 Broadway

9,480 HaiDiLao

The Corcoran Group

The Lam Group

Newmark

Chelsea

New lease

1370 Third Ave.

9,300 Fidelity Brokerage Services

CBRE

RFD Third Ave

SRS

Upper East Side

Renewal

55 E. 59th St.

8,908 Bread and Butter

Murro Realty

55 E 59th Street LLC

Friedland Properties

Lenox Hill

New lease

2 Park Ave.

8,612 JPMorgan Chase Bank NA Newmark

Morgan Stanley Real Estate Advisors

Cushman & Wakefield

Murray Hill

Renewal

606 W. 57th St.

7,900 Century Medical & Dental

Winick Realty Group

TF Cornerstone

Winick Realty Group

Hell's Kitchen

New lease

12 E. 12th St.

7,731 Gotham Restaurant

Direct deal

1212 Realty Associates

Newmark

Greenwich Village

New lease

116 W. Houston St.

7,500 Chefscape

Lee & Associates

Henri Dimidjian

Lee & Associates

Greenwich Village

New lease

475 Park Ave.

7,410 Kvadrat

Isaacs and Co.

Charles H. Greenthal

Newmark

Midtown East

New lease

936 Broadway

7,107 Flat Rate Movers

Newmark

First Sterling Corp.

Newmark

Flatiron District

New lease

Moynihan Train Hall

7,000 Duane Reade

JLL

Vornado Realty Trust

Chelsea

New lease

1470 Second Ave.

6,765 TD Bank

Cushman & Wakefield

The Seville Condominium

Direct deal

Upper East Side

Renewal

16 | CRAINâ&#x20AC;&#x2122;S NEW YORK BUSINESS | FEBRUARY 1, 2021

$2,0

$1,5

$1,0

SOUR

SQUARE FEET TENANT

TENANT REPRESENTATIVE

LANDLORD(S)

LANDLORD/SUBLANDLORD REPRESENTATIVE

DEAL TYPE

6,700 Arc’teryx

Maven Retail Partners; Isaacs and Co.

Thor Equities

Flatiron District

New lease

1271 Avenue of the Americas

6,106 Ted’s Montana Grill

Direct deal

Rockefeller Group

Rockefeller Group; CBRE

Midtown West

Renewal

545 Fifth Ave.

5,996 Deckers

Newmark

The Moinian Group

Direct deal

Midtown East

New lease

2680 Broadway

5,970 Janovic

Direct deal

Ditmas Management

Katz NYC

Upper West Side

New lease

759-771 Madison Ave.

5,214 Armani

Direct deal

Vornado Realty Trust

Upper East Side

New lease

134-138 Greene St.

5,041 Hugo Boss

Direct deal

The Andrews Organization

Sinvin Real Estate

SoHo

Renewal

2770 Broadway

5,000 LensCrafters

Cushman & Wakefield

Walter & Samuels

Winick Realty Group

Upper West Side

Renewal

541 Broadway

4,750 Lacoste

CBRE

Marcia Hafif

Cushman & Wakefield

Soho

Renewal

692 Broadway

4,541 SoulCycle

Direct deal

Vornado Realty Trust

SoHo

Renewal

14 E. 23rd St.

4,500 Popeyes

Isa Realty Group

Nian Chen

Meridian Capital Group

Flatiron District

New lease

750 Eighth Ave.

4,300 New York Gifts

Direct deal

LAZ Parking

ABH Realty

Midtown West

New lease

1 Rockefeller Plaza

4,116 Caffe Lodi

Direct deal

Tishman Speyer

Midtown West

New lease

1517 Third Ave.

4,000 Athleta

Newmark

The Wings Group

Direct deal

Upper East Side

Renewal

630 Third Ave.

3,919 SPEAR Physical Therapy

The Dartmouth Co.

Atco

Newmark

Murray Hill

New lease

186 Franklin St.

3,705 Rosebox

Kassin Sabbagh Realty

DAX Real Estate

Kassin Sabbagh Realty

Tribeca

New lease

300 W. 43rd St.

3,516 7-Eleven

Katz & Associates

KRW Realty Advisors

Colliers International

Midtown West

New lease

612-616 Eighth Ave.

3,500 Wendy’s

Compass

Hyung Lee

Compass

Garment District

New lease

650 Broadway

3,500 Wendy’s

Tower Brokerage

650 Realty

Newmark

Greenwich Village

New lease

420 Lexington Ave.

3,432 Medley Grand Central

Katz & Associates

SL Green Realty

Newmark

Midtown East

New lease

44-50 W. 28th St.

3,200 Killar Karts

Meridian Capital Group

Stellar Management

Meridian Capital Group

Chelsea

New lease

156 Columbus Ave.

3,181 Le Botaniste

Lee & Associates

Accord Realty Services

CBRE

Upper West Side

New lease

119 Spring St.

3,133 Watches of Switzerland

Newmark

60 Guilders

CBRE

Soho

Renewal

BUCK ENNIS

NEIGHBORHOOD

139 Fifth Ave.

ADDRESS

Source: CoStar Group with additional research by Chuck Soder (csoder@crain.com).

This list includes leases with terms of more than two years. In cases of ties, deals are listed with the same ranking number in alphanumeric order of address. CoStar Group conducts research to maintain a database of commercial real estate information. For more information, visit costar.com or call 800-204-5960.

WANT MORE OF CRAIN’S EXCLUSIVE DATA? VISIT CRAINSNEWYORK.COM/LISTS.

THE SLIDE CONTINUES

SPACE FOR RENT

Average asking rents per square foot for ground-floor retail have dropped by roughly 50% since spring 2016 in shopping corridors along Madison Avenue and Fifth Avenue.

The number of available ground-floor retail spaces in Manhattan’s top 16 shopping corridors shot up 20.5% during 2020.

Madison Avenue between 57th and 72nd streets Fifth Avenue between 42nd and 49th streets

$2,000

Ground-floor availabilities

300 254

250 $1,500

208 200 216 208 201 196 195

200 150

$1,000

$784

$717

$500 Spring ’16

Fall ’16

Spring ’17

Fall ’17

Spring ’18

Fall ’18

Spring ’19

Fall ’19

* Fall

152

164

229

264

226 235 216 219 214 219

172

100 50 0

’20

Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ Q1/ Q2/ Q3/ Q4/ 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020

*REBNY did not provide a spring 2020 figure because the data was skewed due to the onset of the pandemic.

SOURCE: CBRE Research

SOURCE: Real Estate Board of New York

23%

INCREASE IN retail square footage leased on this list vs. the top 50 deals from the first half of 2020. SOURCE: CoStar Group

46%

DECLINE IN retail square footage leased in Manhattan in 2020. SOURCE: CBRE Research

314K

RETAIL employees working in the city in November 2020, up 5.4% from July but down 11.5% year-over-year. SOURCE: State Department of Labor

FEBRUARY 1, 2021 | CRAIN’S NEW YORK BUSINESS | 17

BUCK ENNIS

REVEL mopeds became a common sight on city streets last year.

REVEL FROM PAGE 3

meet the goal of net-zero emissions by 2050, endorsed by President Joe Biden. In New York City, where motor vehicles contributed nearly 15% of greenhouse gas emissions in 2019, political leaders are operating under the same deadline. “In 10 or 20 years, every vehicle on the roads in New York is electric, and ideally, as many of them as possible are lighter and not like SUVs,” says Andrew Salzberg, creator of the Decarbonizing Transportation newsletter. Revel’s mopeds, however, are more dangerous than other kinds of what’s often referred to as micromobility. They’re heavier than e-scooters or electric bikes, and with a top speed of 30 mph, they’re much faster. Revel’s New York expansion was marred by the deaths of three riders last summer, including Nina Kapur, a 26-year-old TV reporter for a local CBS affiliate, who tumbled from a moped on July 18. Never mind that many more died during the same time in motor vehicle collisions in the city. Revel was still fairly new, so the mishaps

Even so, in October, an 82-year-old woman died after being struck by a Revel rider. Revel is grappling with the fallout of these problems, including more than 40 lawsuits in New York. City officials also have Revel in their crosshairs. Until recently the startup had the luxury of largely doing what it pleased in its home city. That’s because mopeds are considered class B motorcycles under state law and are therefore lawful to operate with a normal driver’s license. That set the mopeds apart from e-scooters and e-bikes, which were illegal until last year in the state.

Permitting process Now New York City Mayor Bill de Blasio’s aides and members of the City Council want to belatedly fashion a permitting process for shared moped companies that will almost certainly make it tougher for Revel to operate in its largest market. They are talking about probationary periods for new riders, stricter helmet requirements, and the adoption of safety technology that may or may not exist yet. Most of Revel’s critics in city government say they support moped sharing and praise Revel’s elevated safety measures. The question is how much further must Revel go—and at what point do the imposed restraints threaten not only the company’s ability to operate but also New York’s chances of meeting its own emission-reduction target? Revel has grown so rapidly this past year that Frank Reig, its 35-year-old CEO, has difficulty keeping track of all the changes. In 2017, he was living in Brooklyn and working for Gerson Lehrman Group, a company that provides research to corporate clients, when he had a more life-changing experience with mopeds.

“WE CAN’T BELIEVE WE HAVE TO SAY THIS BUT ‘N0 RUNNING RED LIGHTS’” of its customers got a lot of attention. Ten days later, Revel voluntarily ceased its operations in the city. It spent much of August bolstering its safety protocols and resumed service at the end of the month with much tighter requirements. The result: a 50% decline in collisions in September compared with three months earlier when the rate peaked, according to the New York City Department of Transportation.

18 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 1, 2021

REVEL’S REALITY

the fall of 2019. He took a vacation to By the end of the year, Buenos Aires. The South Revel had expanded into American city reminded Washington, and it was him of Brooklyn. Same eyeing other cities. Its avbohemian vibe. The diferage customer trip was ference was that the NUMBER of about 4 miles, enabling it streets were buzzing with questions on a to claim it was replacing the lightweight motorcyquiz Revel riders Uber and Lyft rides. cles. He couldn’t stop are required to “We’re a third of the thinking about how moanswer. price,” Reig says. “We’re a peds would be a natural helluva lot more fun. fit for New York. And when you talk about He shared his musings sustainability, clearly a over drinks with Paul two-wheeled electric veSuhey, one of his Gerson NUMBER hicle trip is a lot better Lehrman co-workers. “It of collisions involving Revel than a Toyota minivan wasn’t like he came to me mopeds in first picking you up.” with a fully fleshed idea,” six months of Then coronavirus arSuhey recalls. “It was 2020. rived, and Revel’s home more of ‘There’s somemarket shut down. Raththing here.’” er than let its mopeds sit It didn’t take long before the two of them decided to quit idle, the company offered free rides their jobs and start Revel. They to doctors and nurses. When New raised $1 million from friends and York Gov. Andrew Cuomo eased the family and sent LinkedIn messages lockdown in June, Revel’s ridership seeking advice from anybody they spiked. Reig says it was soon signcould find in the ride-sharing ing up 4,000 new users a day. It was an unsettling time in New world. They discovered mopeds were legal as long as they were reg- York. Its streets were much less istered with the state and licensed congested, which meant drivers of and insured. New York was also one all vehicles could race around at of the few U.S. cities that didn’t have much higher speeds. It was also a residential permit parking, mean- moment when the city was being ing customers could park bikes for shaken by Black Lives Matter profree in much of the city. “You get to tests, and police seemed to back off a certain point where you’re, like, from enforcing lesser crimes such I’m not crazy,” Reig says. “We can as traffic offenses. With fewer cars and fewer police officers keeping do this!” By July 2018, Revel introduced a watch on the streets, many Revel fleet of 68 dockless mopeds in customers could be seen riding Brooklyn, charging $4 for a 20-min- against traffic on one-way streets, ute ride and 25¢ per mile after that. traveling on sidewalks, running red Its safety regime was minimal com- lights, some with children in their pared with what it is now. Custom- lap, few of them wearing helmets. There were 340 collisions involvers were required to scan their license so the company could screen ing Revel mopeds from early Januout anybody with drunk driving re- ary to July 28, 2020, when the comcords. Bikes came with two hel- pany ceased its operations in the mets. If riders didn’t wear one, they city, according to data provided by the New York City Police Departrisked a fine. Reig says Revel’s machines were ment. “A lot of people were just so coveted that customers often wrecking these things,” says Erik logged on to its app only to find Marketan, injury prevention coornone available. The demand helped dinator at St. Barnabas Hospital in the startup to raise $28 million in the Bronx.

340

Revel attempted to rein in its less constrained users. It loaded its GPS system with more granular mapping data from the city and used it to track when customers were riding against traffic, permanently suspending those who continued flouting the law. It sent an email warning all riders against riding on sidewalks, racing through city parks, and letting others borrow their accounts. “We can’t believe we have to say this, but ‘no running red lights,’” Revel pleaded. It wasn’t enough to prevent the succession of injuries and deaths. Facing mounting pressure from the de Blasio administration, Revel pulled its vehicles from city streets. “We realized we needed to take a pause,” Reig says. Revel riders are now required to pass a multiple-choice safety quiz twice with 21 questions including “Why am I required to wear a helmet?” and “Why are Revels NEVER allowed in parks?” before they’re allowed to start using mopeds. The second time, the questions are scrambled so, as Reig puts it, users can’t “button-mash” their way through. Before every rental, riders must also upload a selfie of themselves in a helmet, which Revel verifies using artificial intelligence.

Kicked out Reig says thousands of users have been kicked out of the system for good as result of such measures. “There are people that have paid us hundreds and, even in certain circumstances, thousands of dollars in revenue, and we have suspended them permanently from the platform,” he says. “What business does that?” Doctors who treated injured Revel users in the city’s emergency rooms during the summer say they haven’t seen many lately. “That’s really dropped off since they’ve had to reset a lot of their safety standards,” says Mount Sinai’s Yaeger, who remains a Revel rider. ■

AWARD CATEGORIES: n DIVERSITY CHAMPIONS n EMERGING LEADERS n TOP D&I OFFICER n BOARD HEROES n CIVIC DIVERSITY HEROES Crain’s first Excellence in Diversity and Inclusion Awards will celebrate New York City individuals and businesses that lead by example and hold themselves and others accountable for diversity-and-inclusion initiatives. Join Crain’s in our commitment to celebrate diversity and cultivate a culture of belonging when you nominate a business professional or organization today for the awards program. Finalists will be recognized June 21 in a special issue. Winners will be announced at an awards reception in July and recognized in an issue appearing the week after the event.

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CLASSIFIEDS LEGAL NOTICE ADJOURNED SHERIFFâ&#x20AC;&#x2122;S SALE

By virtue of an execution issued out of the Supreme Court, Kings County, in favor of YONG ZHONG LI, judgment creditor and against GRAND CHINA FARM INC. and XUE WEN ZHU, judgment debtors, to me directed and delivered, I will sell at public auction, by Dennis Alestra, DCA# 0840217, auctioneer, as the law directs, FOR CASH ONLY, on the 10 th day of February, 2021, at 11:00 in the forenoon, at the Kings County Sheriffâ&#x20AC;&#x2122;s Office, located at 210 Joralemon Street suite 909, in the county of Kings all the right, title and interest, which Xue Wen Zhu, the judgment debtor, as tenant in common had on the 29 nd day of November, 2017 or at any time thereafter, of, in and to the following properties: 2115 East 15th STREET, BROOKLYN, N.Y. 11229 Block 7348 Lot 72. ALL that certain plot, piece or parcel of land, with the buildings and improvements thereon erected, situate, lying and being in the Borough of Brooklyn, County of Kings, City and State of New York, bounded and described as follows: Schedule A Description All that certain plot, piece of parcel of land, with the buildings and improvements thereon erected, situate, lying and being in the Borough of Brooklyn, County of Kings, City and State of New York, bounded and described as follows: BEGINNING at a point on the easterly side of East 15th Street, distant 100 feet southerly from the corner formed by the intersection of the easterly side of East 15th Street and the southerly side of Avenue U; Running thence southerly along the easterly side of East 15th Street, .40 feet; Thence easterly at right angles to East 15th, 75 feet; Thence northerly parallel with East 15th Street, 40 feet; Thence westerly at right angles to East 15 Street, 75 feet to the point or place of BEGINNING. XUE WEN ZHU 2115 E 15 TH STREET BROOKLYN, NEW YORK 11229 BLOCK 7348; LOT 72. Joseph Fucito Sheriff of the City of New York Deputy Sheriff Lisi (718) 488-3545 CASE# 19013969.

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POSITION AVAILABLE Holland and Knight, seeks Associate, $VVHW )LQ *URXS 5HSUHVHQW LQWÂˇO GRPHVWLF OHDVLQJ FRV Ă&#x20AC;Q LQVWLWXWLRQV DLUOLQHV RQ OHDVLQJ Ă&#x20AC;QDQFLQJ RI FRPPHUFLDO EXV DLUFUDIW KHOLFRSWHUV HQJLQHV SDUWV -' RU //0 GHJUHH

PUBLIC & LEGAL NOTICES Notice of Formation of T Natural Creations LLC Articles of Organization filed on 10/15/2020 with the NYS Secretary of State located in Albany NY SSNY is designated as agent of LLC whom process against may be served SSNY Shall mail process to: 1829 Lexington Avenue NY NY 10029 any lawful act

1< %DU $GPLVVLRQ \U H[S UHODWHG RFFXSDWLRQ GRPHVWLF LQWÂˇO WUDYHO UTUHG 5HVXPH WR + . DWWQ 0U 'XUKDP :HVW 6W 1< 1< Compass, Inc. has a position in New York, NY. *Software Engineer II [COMP-NY20-ZXLP] â&#x20AC;&#x201C; Extract info from data, identify bottlenecks, & optimize processes to improve server-side services; write code for software systems using Java, Python programming language; database systems & SQL; & cloud computing AWS, Microsoft Azure.

Notice of Qualification of TENARON CAPITAL MACRO PARTNERS GP LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/05/21. Office location: NY County. LLC formed in Delaware (DE) on 09/ 21/20. Princ. office of LLC: 90 Park Ave., 25th Fl., NY, NY 10016. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c /o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Mail to: M. Quinn, 90 Fifth Ave Fl 3, New York, NY 10011 & note Job ID#

PUBLIC & LEGAL NOTICES Notice of Formation of Jayonamarie LLC. Arts of Org filed with Secy. Of State of NY (SSNY) on 8/21/20. Office location NY county. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 1115 Broadway, 12 floor, New York, NY 10010. Purpose: any lawful act. Notice of formation of Saint Johns Peak Realty LLC. Articles of Org. filed with the Secretary of State of New York (SSNY) on 10/09/2020. Office located in New York County. SSNY has been designated for service of process. SSNY shall mail copy of any process served against the LLC to: 1603 200th St. Bayside, NY 11360. MP 205 LLC. Arts. of Org. filed with the SSNY on 12/03/20. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, 140 East 56th Street, Suite 1D, New York, NY 10022. Purpose: Any lawful purpose. Notice of Qualification of ACELLA PHARMACEUTICALS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/11/20. Office location: NY County. LLC formed in Delaware (DE) on 11/06/07. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., #4, Dover, DE 19901. Purpose: Any lawful activity. FELICE 240, LLC, Arts. of Org. filed with the SSNY on 01/07/2021. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: SA Hospitality Group LLC, 950 Third Avenue, Ste 500, NY, NY 10022. Purpose: Any Lawful Purpose.

Notice of Formation of Vermland Holdings LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/22/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Elias Kefalidis, c/o KLM Equities Inc., 920 Broadway, NY, NY 10010. Purpose: any lawful activities. Notice of Formation of WOOVANI LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/18/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: the Company, c/o 141 East 72nd St., 4th Fl., NY, NY 10021. Purpose: any lawful activities. MP 125Q LLC. Arts. of Org. filed with the SSNY on 12/03/20. Office: New York County. SSNY designated as agent of the LLC upon whom process against it may be served. SSNY shall mail copy of process to the LLC, 140 East 56th Street, Suite 1D, New York, NY 10022. Purpose: Any lawful purpose.

Notice of Qualification of TITAN GLOBAL TECHNOLOGIES LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/04/21. Office location: NY County. LLC formed in Delaware (DE) on 12/28/20. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 110 Greene St., NY, NY 10012. 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, John G. Townsend Bldg., 401 Federal St., Ste. #4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Formation of MONIR ARTS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 01/12/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to M. Nader Ahari, 200 Park Ave. South, Ste. 1608, NY, NY 10003. Purpose: Any lawful activity.

NOTICE OF FORMATION OF MID-TOWN EAST DISTRIBUTING LLC. Articles of Organization filed with Secretary of State of NY (SSNY) on 01/19/2021. Office location: New York County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail a copy of process to: The LLC, 216 East 45th St. Suite 1302, New York, NY 10017. Purpose: any lawful activity.

Notice of Qualification of REVANTAGE RISK SERVICES, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/25/20. Office location: NY County. LLC formed in Delaware (DE) on 08/14/20. Princ. office of LLC: 233 S. Wacker Dr., Ste. 4700, Chicago, IL 60606. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. 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 ILLUMINATE FM LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/03/20. Office location: NY County. LLC formed in Delaware (DE) on 08/ 19/19. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 205 Hudson St., 7th Fl., NY, NY 10013. 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., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Qualification of PREMIUM BRANDS OPCO LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/21/20. Office location: NY County. LLC formed in Ohio (OH) on 1 2/02/20. Princ. office of LLC: 7 Times Sq., NY, NY 10036. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. Cert. of Form. filed with Secy. of State, 180 E. Broad St., 1st Fl., Columbus, OH 43215. Purpose: Any lawful activity. HOCNYCO LLC has filed Articles of Organization filed with Secretary of State of New York (SSNY) on 1/18/2019. Office location: New York. SSNY is designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 355 South End Ave, #3B, New York NY, 10280. Purpose: any lawful act or activity. Notice of Qualification of PEG COINVESTMENT FUND L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/11/21. Office location: NY County. LP formed in Delaware (DE) on 10/29/20. 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. 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 DE Secy. of State, Div. of Corps., Townsend Bldg., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

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CLASSIFIEDS

To place a classified ad, Call 212-210-0189 or Email: jbarbieri@crainsnewyork.com PUBLIC & LEGAL NOTICES

NOTICE OF FORMATION OF GY HONG KONG, LLC. Articles of Organization were filed with the Secretary of State of New York (SSNY) on 11/20/2020. Office Location: New York County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is 36 West 47th Street, W03, New York, NY 10036. The principal business address of the LLC is 36 West 47th Street, W03, New York, NY 10036. Purpose: any lawful act or activity. Notice of Formation of DLS HR Solutions LLC. Arts of Org filed with secy . of State of NY (SSNY) on 10/6/20. Office location: BX County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 1740 Mulford Ave, Apt 19H, Bronx, NY 10461. Purpose: any lawful act. NOTICE OF QUALIFICATION of HVPG JACKSON TERRACE MANAGER, LLC. App. for Auth. filed with Secy of State of NY (SSNY) on 12/22/20. Office location: New York County. LLC formed in Delaware (DE) on 10/5/20. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o 28 Liberty Street, New York, NY 10005. DE address of LLC: c/o 1209 Orange Street, Wilmington, DE 19801. Arts. of Org. filed with DE Secy of State, Townsend Bldg, Dover, DE 19901. Purpose: any lawful activity.

Notice of Qualification of HUDSON PELHAM HOUSE ASSOCIATES LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/25/20. Office location: NY County. LLC formed in Delaware (DE) on 11/20/20. Princ. office of LLC: c/o The Hudson Companies Inc., 826 Broadway, 11th Fl., NY, 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. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of 120 E. 70TH STREET LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/16/20. 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 David A. Stein, Esq., Withers Bergman LLP, 430 Park Ave., 10th Fl., NY, NY 10022. Purpose: Any lawful activity. ATOM CARES LLC, Arts. of Org. filed with the SSNY on 01/13/2021. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: The LLC, 303 Fifth Avenue, Ste 1205, NY, NY 10016. Reg Agent: Ganga Mukkavilli, 303 Fifth Avenue, Ste 1205, NY, NY 10016. Purpose: Any Lawful Purpose.

S H A R E

Y O U R

Notice of Formation of MS RESIDENCE LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/23/20. Office location: NY County. Princ. office of LLC: Philip J. Michaels, c/o Norton Rose Fulbright US LLP, 1301 Ave. of the Americas, NY, NY 10019. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity.

Notice of Qualification of SJV 1 Sheepshead Bay OpCo LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/30/20. Office location: NY County. LLC formed in Delaware (DE) on 11/24/20. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901. Purpose: Healthcare.

RS8M LLC. Articles of Org. filed with Secy. of State of NY (SSNY) on 12/ 24/20. Off. loc.: New York Co. SSNY des. as agent of LLC upon whom process may be served. SSNY shall mail process to the LLC, One Manhattan Square, 252 South St, Unit 8M, New York, NY 10002. Purpose: General.

Notice of Formation of REVENUESOLUTIONS PARTNERS, L.L.C. Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/10/20. Office location: NY County. Princ. office of LLC: One Penn Plaza, Ste. 6328, NY, NY 10119. 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. Purpose: Any lawful activity. Notice of Formation of MERIDIAN BRANDS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/24/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Any lawful activity. Notice of Qualification of Elite Media, LLC, Fictitious Name: Elite Advertising, LLC. Authority filed with Secy. of State of NY (SSNY) on 07/31/20. Office location: NY County. LLC formed in Delaware (DE) on 05/16/13. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 92 Morningside Ave., Unit 1B, NY, NY 10027. Address to be maintained in DE: Worldwide Incorporators Ltd., 3411 Silverside Rd., Ste 104, Tatnall Bldg., Wilmington, DE 19810. Arts of Org. filed with the Secy. of State of the State of DE, Townsend Bldg., 401 Federal St., #4, Dover, DE 19901. Purpose: any lawful activities.

C O M P A N Y ’ S

Notice of Formation of OMAHA FALLS II LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/07/20. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Robert Milam, 150 Charles St., Unit M3, NY, NY 10014. Purpose: Any lawful activity. NOTICE OF FORMATION of Bardock Sales, LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 9/ 23/20. Office Location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 300 E 34th St, 35H, NY, NY 10016. R/A: US Corp Agents, Inc. 7014 13th Ave, #202, BK, NY 11228. Purpose: any lawful act. Notice of Qualification of PRIVATE EQUITY V GP LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/11/21. Office location: NY County. LLC formed in Delaware (DE) on 01/04/21. Princ. office of LLC: 9 W. 57th St., 12th Fl., NY, NY 10019. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c /o Summit Rock Advisors, LP 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 Secy. of State, 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Investments.

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while the total number of taxis on the city’s streets has been capped by law at 13,587. Some of the 130,000 for-hire vehicles added to the streets were true black cars or livery vehicles, but most were apphail cars. “Uber and Lyft had been given an unfair advantage to the point they were able to grab market share,” said Steven Shanker, an attorney who represents the Livery Round Table. “The TLC’s failure to act, especially when these things were pointed out to them, led them to take market share away from legitimate businesses who were playing by the rules.” The value of a yellow taxi medallion has dropped from an average of $1.1 million in 2014 to less than $150,000 today. From 2011 to 2018 more than 100,000 app-based vehicles entered the city’s streets, and their rapid growth would not have occurred without the consent of the TLC, the city’s main transportation regulatory agency. “[The TLC] supported a system that grew in value over time, and then they allowed it to collapse,” said Kenneth Tuch, a lawyer who filed an antitrust complaint against Uber in 2014. “The TLC changed the rules, and they changed the interpretation of the rules to serve the new model, Uber.”

Collision course When Uber entered the city’s market in May 2011, it encountered a transportation landscape far different than in other parts of the country. New York’s cab and car companies had been heavily regulated for decades. Taxis held the domain of street-hail pickups, while prearranged rides were the province of black cars, livery companies and limousines. Eventually, the TLC concluded Uber performed similar functions as a licensed black car—the dispatch of cashless, prearranged trips—and

pendent black-car operators.” That is a contradiction, transportation experts say. “They don’t meet any of the qualifications of being a cooperative,” said Christopher Lynn, TLC chairman from 1996 to 1998. “They’re not a black car. Their vehicles are not assigned to a specific base and dispatched.” There are further issues with Uber’s use of the 28 black car bases that Gold mentioned.

Off-base The 2018 legal reform required Uber and other high-volume forhire-service companies—HVFHSs, as they were now called—to document the number of trips arranged and dispatched through a black car base, as well as the projected number of for-hire vehicles needed to operate the base and the geographic areas the HVFHSs intended to serve. But according to documents submitted by Uber to the TLC for approval of its HVFHS license, the company has only two base locations in the city. One of them, at 636 W. 28th St., is a former Uber office that is listed as the site of 27 of its 29 LLC base companies. But the building has been empty much of the year as it undergoes renovations. “Uber is not a base. They have no base,” Lynn said, adding that the law requires a black car base to be a physical location, from which cars are dispatched and where records are kept. “Their base is wherever the owner parks at night.” Currently, Uber has one base at its Long Island City office and is “transitioning” the other bases to 3 World Trade Center, where it is moving its headquarters, the company said. Transportation lawyer Daniel Ackman agrees and argues that the business model of the app-based companies is antithetical to the use of an actual base. “To have a base means you dispatch from a base,” Ackman said. “They don’t dispatch from a base. They dispatch from cyberspace.” Ackman characterized Uber’s process as allowing its drivers to get blackcar licenses even though they don’t comply with the licensing rules. The same licensing contradiction plagues Uber’s closest competitor, Lyft, which also rapidly expanded in the 2010s. A 2019 affidavit from Matt Rodrigues, Lyft’s New York City market manager, said that two Lyft LLCs—Endor and Tri City— were twice approved to be licensed by the TLC as black-car bases even though they hold no such distinction as either a franchise or a cooperative. The TLC declined to directly address the apparent contradiction. “The companies you asked about were lawfully licensed as for-hire-vehicle bases prior to becoming high-volume for-hire-vehicle licensees as required by Local Law 149 of 2018,” TLC spokesman Allan Fromberg said. Under TLC rules, a for-hire-vehicle base is either a black-car base, a livery base or a luxury limousine base. “No they weren’t lawfully li-

“UBER AND LYFT HAD BEEN GIVEN AN UNFAIR ADVANTAGE” brought Uber in under the regulatory framework of black cars such as the Arecibo and Tel Aviv car services. Under TLC rules, a black car base is a central facility where cars are dispatched on a prearranged basis. All vehicles are either owned by franchisees of the base or are members of a cooperative that operates the base. Both franchises and cooperatives (i.e., driver-owned entities) require members to sign up and drive exclusively under the umbrella of one company and pay dues each month to receive a share of profits. Freelancing is not allowed. Uber has acknowledged its black-car classification. “We operate 28 bases in New York. We have a series of black-car bases and one luxury limo base,” Uber spokesman Joshua Gold said, adding that the company’s drivers “don’t work for us—they are inde-

3 WTC is Uber’s new HQ, a move that started before the pandemic.

22 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 1, 2021

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UBER

censed as bases,” Lynn said, disputing the TLC’s assertion. “They were not black cars. They were not limousines. They were not luxury cars. They were none of those things. That’s the whole point of Local Law 149.” Lyft did not respond when asked to comment. Uber said, in response to questions about its base structure and licensing classification that it has operated black car, livery and luxury for-hire vehicle bases in New York City for a decade. “The TLC’s black-car cooperative designation has been challenged in court multiple times by medallion fleet owners, and it has been deemed appropriate,” Uber spokesman Harry Hartfield said. He referenced Glyka Trans LLC v. City of New York, a case that Uber was not party to and that ruled in favor of the city. Crain’s reached out to the attorney who represented the plaintiff in the case, and he rejected Hartfield’s argument. “This is inaccurate,” said Eric Hecker, a partner at Cuti Hecker Wang. “The court in that case held only that it was up to the TLC whether and how to regulate Uber, not that Uber did or did not comply with the TLC rules relating to franchises or cooperatives.”

Legal challenges Aside from licensing issues, there is the question of the TLC’s connection to the unprecedented growth of the ride-hail companies. A class-action lawsuit filed in state Supreme Court in 2017 accuses the TLC of violating the city’s covenant of good faith and fair dealing in its oversight of the taxi medallion market. Ackman, one of the lead attorneys on the case, argues that prior to a medallion auction, the TLC published false or misleading information regarding prices and that the agency caused their value to plummet after permitting up to 90,000 ride-hail vehicles to enter the market by issuing them blackcar licenses for which they did not qualify.

Ackman’s legal challenge follows similar action taken six years ago by Kenneth Tuch, whose firm, Tuch & Cohen, accused Uber of making “material misrepresentations.” He charged that TLC abdicated regulatory responsibility in a 2014 complaint sent to the attorney general office’s Antitrust Bureau. “Uber has repeatedly submitted applications for black-car licenses in which it has falsely claimed the applicant is a driver-owned cooperative,” Tuch’s complaint states. “These companies are in fact not driver-owned cooperatives, yet they are availing themselves of all the benefits of securing a black car base license under the guise of being a cooperative.” The attorney general’s office never responded to his firm’s formal complaint, Tuch said. Attorney General Letitia James did not respond to a request for comment. Last year, however, James sued the TLC for $810 million, accusing the city of fraud in artificially inflating medallion values. Uber has maintained it has done nothing wrong. “We operate the same as we always did,” Hartfield said. “All our bases are fully licensed and regulated by the TLC.” Ackman’s two lawsuits against the TLC are tied up in court—one is seeking reconsideration and appeal; the other is pending in Queens court. Taxi fleet owners are furious that the city has allowed the tech companies to operate virtually unchecked. “In this way they were able to add the additional 85,000 cars to our streets—which in turn led to pollution, congestion, driver poverty, increased crashes and less use of public transportation,” said Carolyn Protz, a taxi medallion owner. The technology offered by Uber and Lyft was a market disruptor. The companies’ business model proved popular with customers. But there were regulatory questions as to whether the prearranged action of requesting a car via a cellphone app counted as a traditional

on-demand street hail, which was always the domain of taxis. By the mid 2010s, the TLC punted its duties as regulator to the City Council. “They were bringing in 2,000 vehicles every week, and there’s no way these drivers could make a living,” said Meera Joshi, TLC chairwoman and CEO from 2014 to 2019. “We told City Council the way the law is written, the agency couldn’t regulate it.” Following a failed attempt at regulation in 2015, City Hall passed a reform law in 2018, in an attempt to rein in Uber and Lyft. But as Crain’s reported last year, the TLC did not implement the the law for nearly two years. New TLC documents provided to Crain’s after a Freedom of Information Act request demonstrate the extent that Uber and Lyft have expanded across New York as City Hall and the TLC vacillated on how to regulate the companies. In 2017 alone, Uber cars traveled nearly 35 million miles across Midtown’s four transportation zones, including 8.4 million miles of cruising without passengers. The delayed regulation on the app-based companies has had widespread ramifications on the city’s transportation landscape. The for-hire vehicle industry accounted for 24 million trips in March 2019, according to the task force report. In that same month, yellow taxi medallion trips fell to less than half that. Average daily fares for licensed medallions dropped from more than $400 in 2013 to nearly $200 in 2019. “Within two years, they took twothirds of the ridership from the yellows,” Lynn said.

The road ahead In the face of allegations of impropriety, Uber has argued it has followed TLC rules and regulations. “This idea that we launched unregulated in NYC is just untrue,” Gold said. “We submit data to the TLC on a weekly basis. That includes daily trips [and] that includes when drivers log on and log off, so they understand the utilization. We submit where trips start and where trips end and the amount paid on each trip.” Lynn had nothing but harsh words for the agency he once led, alleging that the TLC violated the Haas Act of 1937, which established the medallion system’s framework. “Under the mandate and under the law, they had to protect the integrity of the franchise of the yellow cab. You keep the value of the franchise high,” Lynn said. “You don’t let people dilute the value of the franchise by calling themselves a taxi.” As the value of the medallions has continued to plummet, some industry stakeholders say the TLC’s decision to go against its own rules and certify Uber and Lyft as blackcar cooperatives should be seen as the turning point for a dying industry. “That’s what got them going, and the TLC allowed it and the TLC perpetuated it,” Shanker said. “They got a base license under false pretenses, and they maintain a base license under false pretenses.” ■

GOTHAM GIGS

BUCK ENNIS

SCHWARTZ at The Greens, which is now a series of heated cabins

ANDREW SCHWARTZ AGE 42 BORN Fairlawn, N.J. LIVES Park Ridge, N.J. EDUCATION Bachelor’s in communications and marketing, University of Connecticut DEVIL IN THE DETAILS Schwartz’s first job was as the mascot for the New Jersey Devils hockey team. The role taught him that no job is too big or too small. He still likes to hire employees with experience in sports and events, because they’re “the people who know that the game doesn’t start unless someone gets the puck from the freezer,” he said. HIS STANLEY CUP Schwartz hopes to be president of a National Hockey League franchise one day and views all his projects, including creating lawns and cabins from scratch, as career stepping stones for getting there.

Finding new ways to get together

Veteran marketer helps repurpose rooftop venue into communal backyard

BY CARA EISENPRESS

ast spring, as New York City’s weather began to warm, Andrew Schwartz started seeking ways to help New Yorkers safely socialize outdoors. Schwartz is senior vice president of marketing and creative for The Rooftop, an outdoor concert venue at South Street Seaport, where he is in charge of sponsorships, marketing and events. The spot boasts views of the Brooklyn Bridge and skyline, and he realized Covid-19 had made it even more of a prize in a city tired of being stuck inside. The venue, which Schwartz helped to open for the Howard Hughes Corp. as part of Pier 17 in 2018, had hosted outdoor concerts for two seasons, and its events team was well versed in executing complicated projects. By August Schwartz and the five teams he leads had turned The Rooftop into 14-foot squares of

well-manicured turf, rebranding it as The Greens, a place New Yorkers without backyards could gather. “It encouraged people to come out of their apartments, to trust venues and to be around other people again,” Schwartz said. Schwartz spent much of his career in sports marketing and partnerships, including helping the Brooklyn Nets kick off their inaugural season at Barclays Center. In previous positions, he learned how to launch a brand, make a splash and lead a team. For The Greens, Schwartz, his staff and external marketing agency Relevant confronted the challenges of their mini lawns, which included manufacturing umbrellas large enough to shade the large swaths of turf, training concert security personnel to enforce Covid safety protocols and implementing an online food-and-drink ordering system to limit interaction. Visitors came to watch sports and

movies on a huge LED screen. Reservations, released two weeks at a time, were hard to come by, and the waiting list grew to 20,000 people—a win for the email database, notes Schwartz, who has a marketer’s mentality. When winter came, Schwartz reinvented The Greens as a series of heated cabins fitted with air filters. They have an upstate theme, with decor reminiscent of a ski chalet. All this ideation and innovation invigorated his five teams, he said, especially as they adjusted to remote work. “I wanted to make sure people were engaged and excited about what we had to bring to the table.” The Rooftop found the lawns such a boon to business that it plans to keep them around even once concerts are back. With Relevant, Schwartz is now at work turning them into a modular system that can be set up for reservations when no concerts are scheduled. ■

“IT ENCOURAGED PEOPLE TO COME OUT OF THEIR APARTMENTS, TO TRUST VENUES AND TO BE AROUND OTHER PEOPLE AGAIN”

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