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

ASKED & ANSWERED Valley Bank chief on an equitable economic recovery PAGE 11

CRAINSNEWYORK.COM

SPORTING CHANCE 113-year-old retailer Paragon Sports fights to stay alive PAGE 3

MARCH 15, 2021

YANG 17.09%

POLITICS

MCGUIRE TOPS DEMOCRATIC CANDIDATES

STRINGER 13.36%

DONOVAN 11.79%

BY BRIAN PASCUS

GARCIA 9.82%

nvestment banker Ray McGuire finished first in a Crain’s poll of readers likely to vote in the upcoming Democratic mayoral primary, handily beating entrepreneur Andrew Yang and Brooklyn Borough President Eric Adams, who have greater name recognition among the general public and who have beaten the Wall Street executive in previous polls. Other surprises that emerged from the online survey of 509 Crain’s readers included a split on tax hikes on the wealthy, a concern about See POLL on page 22

MCGUIRE 26.52%

ADAMS 8.06%

POLITICS

With vote ‘up for grabs,’ tech industry seeks louder voice in mayoral race BY RYAN DEFFENBAUGH

uring a Zoom conference hosted by tech entrepreneur and investor Kevin Ryan March 2, Democratic mayoral VOL. 37, NO. 10

candidate Ray McGuire pledged to boost the number of CUNY graduates in science and engineering fields, launch a citywide app and consider naming the first-ever deputy mayor for technology.

For the former Citigroup executive to lead the city, “I want tech involved. I’m sorry—I need tech involved,” McGuire said. The meeting with technology leaders was one among dozens of Zooms and virtual town

NEWSPAPER

GOTHAM GIG

PUTTING EMPATHY FIRST IN PHILANTHROPY PAGE 23

halls that week for the large field of Democratic and Republican candidates. But to Ryan, a co-founder of MongoDB, Gilt Group and Zola, the event represented a change in how candidates have been approaching the city’s technology workforce. “What’s different in this election from eight years ago is you were not seeing many phone calls like this for the tech industry,” Ryan said in an interview following the event. He has

COVID-19 VACCINE

A look at the Aviation High vaccination site PAGE 19

See TECH on page 6

CEDRIC WOOTEN/FLICKR, BLOOMBERG, BUCK ENNIS

In Crain’s poll, investment banker led field with 27% of vote

POLITICS

A defiant Cuomo clings to power as he stares down calls for his impeachment BLOOMBERG

Steps to impeachment Assembly Democrats gathered last Thursday for what Speaker Carl Heastie called a discussion of “next steps.” New York Democratic Party leader Jay Jacobs, a longtime ally of Cuomo who has asked fellow politicians to wait for the results of an investigation before passing judgment, said in a statement that he respected the lawmakers who think the governor ought to resign, and he would “be convening a meeting of county chairs so that I can hear their perspective on the current controversy directly.” Behind the statements is an intensifying clash among Democrats, who hold a supermajority in both houses. In one camp are a growing number of lawmakers who want to initiate articles of impeachment regardless of whether Cuomo steps

CUOMO

other politicians to await the attorney general’s investigation, a statement Cuomo himself hailed as the right way to go. “We’re not really in a position to know,” said Assemblywoman Latrice Walker of Brooklyn. She said demands for immediate resignation without allowing James to go forward and make her own determinations of fact represented an example of a female office holder, particularly a woman of color, being disrespected. “We are watching the position of the authority of the first Black woman attorney general being muted with these calls for resignation and impeachment,” Walker said. “It’s insulting, it’s disrespectful, and it’s against the deeply embedded principle in American jurisprudence that you allow the facts to come out before you make a judgment.” But details of a sixth accuser, who said the governor put his hands up her blouse and groped her in the Executive Mansion last year, turned up the heat on Cuomo, who says he never touched anyone inappropriately. His office referred the matter to the Albany police. “It is impacting the ability to govern at this point, and it just, it crossed a line. This is a new level of allegation,” said Assemblywoman Patricia Fahy, an Albany Democrat who had signed the 23-woman pledge. She said Cuomo should “step aside and let our well-respected lieutenant governor, Kathy Hochul, step in while these investigations are underway.” New York’s U.S. Senate majority leader, Chuck Schumer, who has supported waiting for James’ investigation, called the latest accusation “nauseating” during an inter-

“I DON’T WANT TO BE THE ONE WHO MAKES A DECISION BEFORE ALL THE FACTS ARE IN” down. Another faction argues that Cuomo should be given the chance to stay in power until Attorney General Letitia James publishes the findings of her investigation into the sexual-harassment allegations, or the Legislature conducts its own inquiry. “I don’t want to be the one who makes a decision on the governor’s fate before all the facts are in,” said Assembly Majority Leader Crystal Peoples-Stokes, the second most powerful person in the chamber after Heastie. Peoples-Stokes was among a group of 23 female lawmakers who signed a letter urging the public and

view on MSNBC’s Morning Joe last Friday but did not call for Cuomo’s resignation. “I have a lot of faith in her investigation,” Schumer said of James. The Wall Street Journal reported last Thursday that aides to the governor and others in his circle had called former employees seeking to discredit one of his accusers, Lindsey Boylan, a former aide. Heastie offered a compromise: He formally authorized the judiciary committee to investigate whether the allegations warranted impeachment. The committee will be afforded subpoena power to interview witnesses and evaluate evidence, which could later serve as a legal basis for impeachment. That action could make a case stronger, with the potential for high-quality evidence from the probe, said James A. Gardner, a law professor at the University at Buffalo. New York’s impeachment process works mostly like the federal one used most recently against former President Donald Trump. The process starts with a majority vote in the Democratic-controlled Assembly, then moves to the state Senate, where a two-thirds vote by senators and the state’s top judges is required to convict. Yet unlike the federal process, there is no “high crimes and misdemeanors” standard, so the governor could be impeached for any reason lawmakers deem necessary. There’s also no telling how long the process could take because the state Constitution doesn’t provide any language on timing, and there’s little precedent. The last impeachment was in 1913, and the Constitution is “vague,” Gardner said. “I don’t think anybody alive has any insight.” The moment impeachment proceedings begin at the Assembly, Hochul would step in as acting gov-

GOVERNORANDREWCUOMO/FLICKR

ov. Andrew Cuomo is clinging to power as he faces an impeachment inquiry led by the state’s own Democratic lawmakers over allegations of misconduct. Pressure to unseat him hit a new high last Thursday after allegations emerged that he had groped a female aide under her blouse, 59 Democrats in the state Legislature demanded that he resign, and the Assembly speaker began an impeachment inquiry that could lead to Cuomo’s removal. Yet removing a sitting governor from office is a lengthy, complicated process. And the intractable Cuomo, who has said there was “no way” he would step down, continues to hang on, defiant. “Obviously he’s very much on the ropes,” said longtime Democratic political consultant George Arzt. “He’s just stretching it out.”

ernor. Cuomo would return to office only if the Senate acquitted him. A Cuomo spokesperson didn’t respond to a request for comment.

Weakened grip Some lawmakers argue that keeping Cuomo in power could actually help them achieve more legislative victories as the April 1 budget deadline nears. Privately, some are weighing whether an emboldened Legislature could pounce on a weakened leader. “There’s huge, built-up resentment in the Legislature about how the governor has controlled the budget process, so the impetus on the part of legislators and advocates to take advantage of the governor’s relative weakness at the moment to put their priorities back into the budget is very strong,” said Kathryn Wylde, president and CEO of the Partnership for New York City. “The leverage has shifted to the Legislature.” The governor has final say over the budget, with lawmakers only able to remove or reduce spending with Cuomo’s approval unless they can muster the votes to override him, which Democrats now have in the Senate. Cuomo has another card to play as the Legislature debates a $193.3 billion spending plan for fiscal 2022: $12.6 billion in federal aid from the relief package that he can help dole out to supporters. “The scandal could hurt him, but when you realize the president’s stimulus package has been passed, the impact of that on the state’s finances will be so positive that we will all look good in the budget process,” said Peoples-Stokes. Cuomo has long prized delivering an on-time spending plan, which he has said is the bulwark to a functioning government. Before

he took office in 2011, late budgets were commonplace in Albany. Cuomo made it a point to pass four consecutive on-time plans during his first term and cap spending increases. He has even tied lawmakers’ pay raises to meeting budget deadlines. While technically a spending plan for the state, budget negotiations have allowed him to flex his muscle and push policy priorities like raising the minimum wage to $15 an hour, overhauling ethics rules and altering rules for teacher tenure. Lawmakers also look upon the budget as a way to keep promises made to their constituents. State Senate Majority Leader Andrea Stewart-Cousins, a Democrat, recently called on Cuomo to resign, saying his scandals were a “daily distraction.” Heastie said the governor should “seriously consider” whether he can still be effective in office. Democratic consultant Monica Klein, a longtime Cuomo critic, said that one-two punch was particularly damaging because Cuomo has to work with both leaders to put together the budget. “This is a governor who wields his power to strong-arm legislators, especially around the budget negotiations, and instead the speaker and the majority leader are operating together without him,” she said. ■

WEBCAST CALLOUT

MARCH 18 COMMERCIAL REAL ESTATE RECOVERY FORECAST Covid-19 has had a profound effect on the commercial real estate market in New York and could have a lasting impact even after the danger of the pandemic passes. During this webcast, Crain’s and local real estate experts will examine the changes in leasing activity, including the decreased demand for office space, and the creative ways landlords are redesigning infrastructure to fit the new normal.

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

Vol. 37, No. 10, March 15, 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 | MARCH 15, 2021

BLOOMBERG

RETAIL

After 113 years, Paragon Sports fights to stay open Even after laying off more than 200, company’s future is still uncertain BLOOMBERG

t 113 years old, Paragon Sports had already weathered one pandemic before Covid-19. Now the venerable New York retailer has laid off most of its staff as it fights to survive. Paragon Sports cut more than 200 employees in April, accounting for 70% of its staff, and most of the reduction is permanent, Chief Executive Officer Zach Blank said. The company almost parted ways with 44 more employees in January, but additional loans

from the federal Paycheck Protection Program ultimately helped retain those workers. Generations of sporty New Yorkers have flocked to the red-brick emporium at 18th Street and Broadway. The family-owned retailer is emblematic of the pain the pandemic has inflicted upon even some of the most storied New York businesses. The company is “fighting every day,” Blank said, to make sure it doesn’t need to restructure. “We are not out of the woods,” he said. “We are taking things week to week.” The plunge in foot traffic has dealt a major blow to the retailer, which saw most of its sales coming from the three-level store near Union Square. E-commerce sales have increased during the pandemic, but the uptick

isn’t enough to compensate for the lack of instore sales. Still, the in-store experience will remain the company’s primary sales channel, Blank said. The retailer also counts on tourists, all but absent in the past year. Not that New Yorkers are crowding through the door either, even after restrictions were lifted. The store was fully closed for two months before reopening its bike shop in mid-May. “Customers from all over the world visit Paragon Sports,” Blank said. “With nearly a 100% lack of tourism to New York City, it definitely has hurt sales.” A visit to Paragon Sports late on a recent Monday afternoon found the store largely empty, along with much of its surrounding

“WE ARE NOT OUT OF THE WOODS. WE ARE TAKING THINGS WEEK TO WEEK”

neighborhood, which is normally crawling with traffic, students and tourists.

Bright spots New Yorkers, like other Americans, have looked to ease the pain of the pandemic with more outdoor activity, but organized team sports have been curtailed. Blank said youth baseball and soccer players are once again coming in, however. Some other parts of the business are recovering too. Paragon Sports saw a boost in sales of tennis gear because of the sport’s socially distanced nature. Its in-line skate and bike business had “exploded” in the spring of 2020 as more people sought alternative ways to commute, Blank said. A recent storewide sale also helped decrease its inventory and generate cash. “We are rebuilding from the ground up,” Blank said. “We know there will always be a place for Paragon in Union Square.” ■ MARCH 15, 2021 | CRAIN’S NEW YORK BUSINESS | 3

IN THE MARKETS

Manhattan’s depressed office values bring the new reality home Investment pros don’t see large numbers of workers returning to Midtown anytime soon

BUCK ENNIS

all Streeters who de- foot value of Empire State Realty camped to Florida to Trust is just $436, according to a rewait out the pandem- port last Thursday from brokerage ic are contemplating firm Evercore ISI. The price is $516 a return to New York. They aren’t per square foot for Vornado shares planning to work from their Mid- and $572 for SL Green. For context, in 2009 the implied town towers again anytime soon, price of Manhattan office space was however. The value of office space in the $469, Evercore said. Empire State Realty is city remains deeply detrading below 2009 levels pressed and still below the because it gets a big slug dark days of the Great Reof revenue from tourists cession in certain cases, paying $42 and up to visit even after accounting for its observation decks. the recent vaccine-fueled Grim as this is, in the surge that the share prices summer of 2020, prosof landlords such as Vornado Realty Trust and SL pects for Manhattan real Green Realty have experiestate looked even worse. enced. That means investIn June the implied price ment pros, many of whom AARON ELSTEIN of Empire State Realty was are big Manhattan comjust $266 per square foot; mercial tenants, don’t see the implied price of Vorlarge numbers of workers returning nado was $364. to the office on the horizon. It has become clear that many If they’re right, that bodes ill for workers who once filled office towshuttered restaurants, Irish pubs ers will work from home, at least and all the other businesses that ca- some of the time, for a long time to ter to commuters. Midtown will be a come. Last week the CEO of Amerilonelier place after it reopens. can Express said it was unlikely all employees would return to the ofImplied prices fice. Big tenants such as JPMorgan To understand the steep road to recovery, focus on one number: Chase, Bank of New York Mellon $928. That’s the average price per and Wells Fargo shrank their footsquare foot that investors were will- prints in 2020. Interpublic Group, ing to pay for shares in the city’s an advertising holding firm, tore up publicly traded landlords over the leases on 1.7 million square feet of space, a 15% reduction globally. three years before the pandemic. That said, newcomers to the city Today the implied per-square-

such as Facebook and Amazon have signed up for big offices. Bargain hunters might fill up vacant spaces after they figure out how many people will be in them. The city has a lot going for it, starting with bagels, no matter what culinary provocateurs may say.

No picnic And working from home is no

white-collar workers in my situation have made the same peace with things. That mental accommodation translates directly into the depressed cost of office space. The price investors once paid of $928 per square foot feels every passing day like no more than a dream remembered, a civilization gone with the wind. ■

picnic, especially with children in the household. I have never felt so fed up and exhausted. But there are things about commuting life I don’t miss, such as squeezing myself into a delayed subway car. I’ve been working at my livingroom table for exactly one year. I could continue, though I would prefer not to. Probably many

CRIME

City spent half a million dollars per inmate in 2020, report says BLOOMBERG

he city Department of Correction spent $447,337 per inmate in fiscal 2020, a third more than a year ago and more than double the fiscal 2015 mark, according to a report released last Wednesday by New York City Comptroller Scott Stringer. The city is spending more on inmates despite a drop in the number

Stringer, who is running to replace Mayor Bill de Blasio as mayor later this year, said the city’s Correction Department is posing budgetary concerns and producing meager results. In the comptroller’s report, which is part of an annual watch list of poor-performing city agencies, Stringer called out a 27% rise in violent incidents in jails from a year ago as well as mounting safety concerns despite spending increases. The department has been under federal oversight since 2015 with a mandate to improve its use-of-force policies. The federal monitor, however, in October said the city hasn’t made enough progress under a consent agreement. “The cost to incarcerate a single individual on Rikers has exploded even as our jail population remains

the city jail if elected mayor, a proposal he has advocated since 2015 because of rising safety concerns on Rikers Island.

Disciplinary action

of incarcerations during the pandemic, the report said. Stay-athome orders led to fewer arrests, and prisoners were released to reduce the spread of Covid-19, leading to a drop in city inmates.

4 | CRAIN’S NEW YORK BUSINESS | MARCH 15, 2021

BLOOMBERG

“WE ARE SPENDING MORE AND MORE TO INCARCERATE FEWER AND FEWER PEOPLE”

near historic lows—yet rates of violence continue to climb,” Stringer said in a statement, referring to the city’s main jail complex. “That means we are spending more and

more money to incarcerate fewer and fewer people and reducing the safety of both officers and people in custody in the process.” Stringer has promised to close

In June de Blasio announced disciplinary action for 17 uniformed jail staff after an investigation into a 2019 incident involving Layleen Polanco, a transgender Latina woman who was found dead in a prison cell. The city has been taking steps to reform its criminal-justice system in the aftermath of the 2020 police killing of George Floyd. This month the city published a database of officer disciplinary records after winning a court fight with the police union, which sought to block their release. In January the city also took steps to update its officer disciplinary process, more clearly laying out the penalties for certain offenses. ■

SPONSORED CONTENT

Preparing to Take Advantage of a Post-Pandemic Rebound As changes related to COVID-19 continue to ripple through the business community, resilient organizations are setting themselves up for future success

To call the COVID-19 pandemic an unprecedented challenge for businesses contacted by Ipsos and Crain’s Content Studio almost undersells its impact. A recent survey conducted by Crain’s Content Studio, Ipsos and Bank of America finds that 86% of companies have re-evaluated, redirected or retooled their strategy in the past year due to the pandemic. Businesses have had to respond to shifting client needs, workforce changes and supply chain disruptions. The rapidly evolving situation has often required quick decisions, as well as periods of extended uncertainty. Despite these hardships, businesses have remained generally positive about the future. With the arrival of vaccines, most businesses are optimistic for a return to usual operations in the coming months. How much the new normal will resemble the pre-pandemic normal remains an open question, however. In many cases, taking advantage of a post-pandemic rebound will require businesses to stay flexible as they roll with a whole new set of changes.

HOW BUSINESSES ADJUSTED TO A NEW NORMAL More than two of every three companies surveyed indicated their business was negatively affected by the pandemic. Sue Duckett, executive vice president at Franklin Capital, a financial services firm in Highland Park, Ill., notes that the immediate impact of the pandemic depended on her clients’ industries. “Anybody that was dealing with big-box companies—apparel, the food industry—all of those were being hurt,” she says. “But the [personal protective equipment] businesses and anybody that pivoted to that field suddenly were doing very well.” Businesses say the top challenges they’ve faced during the pandemic include maintaining workforce productivity in a remote environment, dealing with reduced customer demand, executing an accelerated digital transformation and supply chain disruptions. In many cases, they moved quickly to address these challenges. Six in 10 businesses report they have already completed workforce adjustments designed to keep their employees safe and 63% have completed the transition to remote work. Further adjustments to supply chains and business strategies are more likely to be in the works, however. Another 39% of companies plan to redesign their supply chains, compared to 41% that have already managed to complete that work. GrandPad, a California-based manufacturer of tablet computers designed for senior citizens, shifted its supply chain early on. “The Asian supply chain was definitely disrupted last spring,” says GrandPad’s CEO and co-founder, Scott Lien. “We have worked really closely on more long-term visibility and forecasting, getting more buffer stock in terms of raw materials and parts, and keeping more buffer stock of finished goods in the US.” BUSINESSES ARE GENERALLY OPTIMISTIC ABOUT THE FUTURE A large majority of decision makers (72%) expect their business to return to usual operations in the next six to 24 months. Business leaders in the technology and financial services industries are generally most optimistic about these timelines, possibly because their firms have seen less negative impact from the pandemic than those in other sectors. Executives in the professional services industry tend to see a slower return. In many cases, leaders’ overall optimism reflects an expectation that the changes they have made during the pandemic will bear fruit in the months and years to come. “I’m not sure there were any new trends that happened during COVID—I think it just made certain trends happen faster,” says Amy Binder, CEO of RF/Binder, a communications and consulting company based in New York City. Binder sees a more purpose-driven work ethic as a long-term benefit of this period. “There’s been a lot of talk in the past couple years about the role of purpose,” she says. “I think companies understand in a very different way that your purpose needs to link to what you do, both internally with

your employees and externally with your customers and within the community in which you operate.” EXPECT MORE CHANGES AS A NEW NORMAL BEGINS TO EMERGE Nearly three of four business leaders (73%) expect permanent changes to their industry as a result of the pandemic. In the long run, they most expect to see benefits from the investments their companies have made and will continue to make in technology, greater workforce flexibility, and a more nimble, resilient workforce. Gary’s Wine and Marketplace had to rapidly add digital ordering capability that could be fulfilled by curbside deliveries, as patrons fearful of a shutdown crowded the company’s New York-area stores. “It forced an immediate acceleration for us,” says Gary Fisch, the firm’s founder and CEO. “We need to continue to upgrade the technology because it was not designed to do as many deliveries as we’re doing—we’ve upgraded our phone system, we’ve got queuing now and we’re going to continue to invest in all that back-end technology,” he says. The introduction of digital channels has potential to expand organizations’ reach as things return to normal. Even as some customers resume in-person transactions, others will stick with digital. Still others will take advantage of new opportunities as well. Phil Michaelson, CEO of New York-based Live Auctioneers, a digital platform for online auctions, sees strong potential to expand his company’s user base. “We see buyers who are really excited to participate in multiple auctions on a Saturday morning, as opposed to just one,” he says. “I envision a future where the folks who like attending events in person go in person, but also attend other auctions around the world virtually at the same time.” STAYING FLEXIBLE WHILE MOVING FORWARD During the pandemic, business leaders have been forced to deal with a massive amount of uncertainty in a short period of time. Over the long run, companies may build on the flexibility and resilience they’ve developed during this period. Katherine Zabloudil, CEO of consumer products manufacturer the Vertical Collective, headquartered in Redondo Beach, California, recalls the moment her team dug into the task of manufacturing personal protective equipment. “At first we were just paralyzed, and then after a couple hours, we basically just rolled up our sleeves and started going—calling factories, calling suppliers and securing airspace on cargo flights, just moving quickly. That’s what makes me the most proud of our company and how we define ourselves—the ability to move so fast that we don’t even have time to think about fear at all,” she says. “We have a nimble and smart team of people who can work really quickly and pivot really quickly.”

METHODOLOGY Ipsos and Crain Communications conducted the Bank of America Better Business Banking Report survey online between October 13th – November 20th, 2020 and January 4th – January 15th, 2021. Responses were collected using an online sample of business decision makers in the United States with annual revenue between $5 million and $99,999,999. From October 13th – November 20th, 2020 Crain’s contacted 73 business decision makers using a propriety list in Chicago, New York, Detroit, Boston, Minneapolis and Houston. From October 13th – November 20th, 2020 Ipsos contacted 751 business decision makers using a pre-recruited online sample of small business owners from across the country outside of the following markets: Seattle, Minneapolis/St Paul, Washington DC, San Francisco/Silicon Valley, Chicago, Atlanta, Los Angeles, Detroit, Charlotte, San Diego, Boston, Orlando, Phoenix, New York, Miami, Houston, Philadelphia. From January 4th – January 15th, 2021 Ipsos contacted 400 business decision makers using a pre-recruited online sample of small business owners from within the following markets: Seattle, Minneapolis/St Paul, Washington DC, San Francisco/Silicon Valley, Chicago, Atlanta, Los Angeles, Detroit, Charlotte, San Diego, Boston, Orlando, Phoenix, New York, Miami, Houston, Philadelphia. The final results for the study are not weighted. NEW YORK

FROM PAGE 1

already or plans to host similar conversations with other candidates. CBRE estimates that the city was home to 269,000 technology workers in 2020, up 20% from 2015 and behind only San Francisco among North American cities. Michael Bloomberg aligned himself with the industry as Google and Facebook moved, while Mayor Bill de Blasio has run hot and cold with the tech sector. But the industry as a whole still punches below its weight in local politics, Ryan said, compared to real estate and finance. “This has historically been a young and mobile workforce,” said Julie Samuels, executive director of Tech:NYC, an advocacy and lobbying group for the city’s technology industry. “But more workers are

any funds, records show, for the 2021 race from a political action committee set up in 2019, called Future NY. The group is for now focused on raising awareness and turnout for local races among its tech industry members. “That gets us a bigger seat at the table,” said Ryan, who is on Tech:NYC’s board. “It won’t be as much as everyone would like, but it will be much more than eight years ago. And it will set the stage to be even more powerful four years, eight years from now.”

Primary plans Nearly 90% of the roughly 600 New York technology workers polled by Change Research and Tech:NYC last month said they plan to vote in the mayoral primary. About 23% of those polled had donated to a candidate for mayor, compared with 45% who had donated in the 2020 presidential race. The voters’ largest concerns, according to the poll, are employment opportunities, cost of living and public safety. The poll showed Andrew Yang had the widest name recognition, with only 3% of respondents saying they were not familiar with him. In the same poll, 20% or more said they were not familiar with candidates such as McGuire, Maya Wiley, Scott Stringer

“MORE WORKERS ARE PUTTING DOWN ROOTS HERE—THAT LEADS TO POLITICAL ACTIVITY” putting down roots here, raising families, and that leads to more interest in local political activity.” Launched in 2016, Tech:NYC itself did not exist the last time the city elected a new mayor. The group has no immediate plans to endorse a candidate and has yet to deploy

and Eric Adams. Each candidate was viewed more favorably than unfavorably among those who were aware of them, however. Also in the poll, tech workers were near unanimous in wanting the city to offer more technology skills training, both in school and through apprenticeship programs. Three-quarters of workers said the city should offer incentives to tech compaRYAN nies that provide jobs, a nod to the controversy over the scuttled Amazon HQ2 deal in Long Island City. Charlie O’Donnell, founder of technology investment firm Brooklyn Bridge Ventures, co-hosts a podcast that interviews mayoral candidates. He was one of the founding members of NY Tech Meetup in 2004, an early organizing force for the industry that later became the 65,000-member New York Tech Alliance. He said the industry conversations he has attended with candidates have focused more on how a person can handle City Hall, rather than on specific technology issues. “A lot of the questions we’ve heard are about experience and management style, versus promises to make New York a tech city,” O’Donnell said. “That always rings a bit hollow since New York is literally the second-largest venture

RASIEJ capital city. It’s like ‘Thanks, we’ve been working on that for 15 to 20 years and come pretty far.’ ” But issues such as broadband access and updating the city software system to be easier for New Yorkers to use have popped up on campaign websites and during forums. “I think there is a tech vote up for grabs for any candidate that can push forward an imaginative plan to leverage technology to make the city work better,” said Andrew Rasiej, executive director of the nonprofit Civic Hall and chairman emeritus of the New York Tech Alliance.

Competing for attention Still, candidates will also have to balance the valid criticisms of the industry—the lack of diversity in its workforce and the growing power

SAMUELS of a few companies—with the desire to embrace technology’s potential job growth. The industry, meanwhile, is competing with entrenched business interests for attention from candidates. Billionaire real estate developer Stephen Ross, for instance, is raising “tens of millions of dollars” to get New Yorkers to vote in the upcoming Democratic primary for mayor, hoping to boost a moderate candidate, according to a Bloomberg report March 10. “It’s not whether an industry is large enough that candidates should pay attention,” said Bradley Tusk, a venture capital investor and political strategist advising the Yang campaign. “It’s whether the industry is organized enough, political enough, focused enough to do things that can impact an election.” ■

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6 | CRAIN’S NEW YORK BUSINESS | MARCH 15, 2021

BUCK ENNIS, GETTY IMAGES

TECH

SMALL BUSINESS

Hispanic businesses threaten Coca-Cola with boycott over closing of Office of Latin Affairs Chairman of national group says company has been pulling back support for the community BY BRIAN PASCUS

nity that distributes Coca-Cola?” Garcia fumed. “Why isn’t Cocat might have been harder to Cola making the same investment find a Coke in the city’s many in what they’re doing with African bodegas if a coalition of His- American businesses with the Latipanic business leaders had no and bodega businesses that are made good on a threat to boycott going under?” There is no evidence that CocaCoca-Cola after the company closed its independent Office of Cola has given any money to the Latin Affairs following 33 years of Black Lives Matter organization, but the company anoperation. In addition to restoring nounced last June the Latin Affairs office, the that the Coca-Cola coalition demanded fundFoundation would donate $2.5 million ing for diversity contracts to the Equal Justice from Coca-Cola. Initiative, the NAACP “We threatened to boyLegal Defense Fund cott them if they think of YEARS that Cocaand the National cutting money to supply Cola’s Office of Latin Center for Civil and diversity contracts to the Affairs had been in Human Rights. Hispanic community,” said operation When asked for a Frank Garcia, chairman of response to the conthe National Association of State Latino Chambers of cerns of the Hispanic Commerce. “[CEO] Alfrebusiness communiAMOUNT the Cocaty, a spokesperson do Rivera needs to underCola Foundation for Coca-Cola said, stand: Don’t try to mess plans to donate to “Our commitment to with my Hispanic commuthree civil rights– our Hispanic connity when we’ve supported related organizations Coca-Cola.” sumers and commuNelson Eusebio, governnities is as strong as ever” and emphament affairs coordinator at the National Supermarket Associa- sized that “the decision to integrate tion, said his organization had re- the Latin Affairs work into all asceived corporate funding from Co- pects of the business” was part of ca-Cola. It used the money to fund an overall restructuring effort anHispanic community initiatives nounced last year. The concerns of Hispanic busiduring the holidays and the school season, but it saw the donations ness leaders snowballed in the past from the company dry up last year. couple of months when the NSA, “We noticed our funding was the Bodega and Small Business Asdwindling and dwindling, and it sociation and the National Associcame to a point where we were get- ation of Latino State Chambers of ting no funding from Coca-Cola,” Commerce wrote letters to Cohe said. “Here at the NSA, of ca-Cola, addressing the closing of course, we consume Coca-Cola, we the Office of Latin Affairs and the sell your product, we display your perceived lack of investment in product. How the heck are you go- and commitment to the Hispanic American community. ing to cut us out?” “As your customers, we ask that ‘Give us crumbs’ you reconsider closing down the More concerning to Garcia— Office of Latin Affairs at Coca-Cola who in 2012 led the New York State and start a conversation with us,” wrote Francisco Marte, general secretary of the Bodega and Small Business Association. Alba Baylin, vice president of Coca-Cola community Hispanic Chambers of Commerce and stakeholder relations, said in in a fight on behalf of Coca-Cola an internal email to Garcia that the and bodega owners against former work of the Office of Latin Affairs Mayor Michael Bloomberg’s pro- had been integrated across the reposed “soda ban”—was watching sources of a more than 80-member Coca-Cola pull back its support for department, “where the expertise Hispanic business interests after it and capabilities of that team can announced in October that $500 better serve stakeholders and enmillion in supply chain spending gage with our Hispanic community would go to Black-owned enter- partners.” A former employee at the Coprises over five years. “I went against Bloomberg for ca-Cola Office of Latin Affairs conthe soda tax and now they want to firmed to Crain’s that the eliminate the office and give most four-member office closed earlier of the money to Black Lives Matter this year and Peter Villegas, former and give us crumbs—the commu- vice president and head of the of-

ICE-COLD NUMBERS

“WE WANTED TO GIVE A MESSAGE TO CORPORATE AMERICA THAT WE WON’T TOLERATE THIS DISRESPECT”

BLOOMBERG

$2.5M

fice, was no longer working for the company after six years in that role.

Commitment On March 9, Garcia, Marte, Eusebio and other Hispanic business leaders met with Coca-Cola executives, including Baylin, to discuss the issue and clear the air. Following the meeting, Garcia said Coca-Cola leadership had made a commitment to give more supply and distribution contracts to Hispanic-owned businesses and explained that company leadership had merged the Office of Latin Affairs with other communications departments to save money, a point which Coca-Cola has disputed. “They made a commitment to support the bodegas they never funded,” Garcia said. Eusebio said Baylin did not address why the company had decreased funding for the NSA, but she promised Coca-Cola would work with his organization. “I feel 100% better, but I can only take people at their word,” Eusebio said. “They promised us our funding would return, and it may even be better than before.” When asked why the closing of the Latin Affairs office and funding issues had sparked such a reaction from the Hispanic business leaders, Garcia did not mince words: “We wanted to give a message to corporate America that we won’t tolerate this disrespect,” Garcia said. “We want equity with our counterparts. Don’t take away from us to give more to African Americans. A lot of my chambers nationally are closing down because of funding.” ■

Redefining what you should expect from your accountant. grassicpas.com

MARCH 15, 2021 | CRAIN’S NEW YORK BUSINESS | 7

chief executive officer K.C. Crain senior executive vice president Chris Crain

EDITORIAL

group publisher Jim Kirk publisher/executive editor

Not so surprising, business vet McGuire resonates with Crain’s readers McGuire will have to build a coalition beyond the business community if he is to have a chance at winning the nomination. “If he can simultaneously connect with outer-borough minority voters, especially Black homeowners, he has a chance to become competitive in this race,” Bruce Gyory, a Democratic political strategist, said. That strategy could work because McGuire is building a formidable war chest for the election, money that will be needed for a well-funded advertising campaign to build name recognition. Another Democratic candidate who did well in the polling was Shaun Donovan, a former Obama cabinet secretary and Bloomberg aide. When survey respondents were asked who would be their second choice for mayor, Donovan received 17% of the vote, the most of all the Democratic candidates. That could be important because for the first time, New Yorkers will be given the option of voting for four more candidates in addition to their first choice. Called ranked-choice voting, the process gives candi-

THE BUSINESS COMMUNITY IS LOOKING BEYOND THE TRADITIONAL CANDIDATES numbers, it shouldn’t be that much of an eye-opener when you consider the audience. This was a survey of Crain’s readers, who are largely business professionals and not representative of the electorate in general. As some political consultants noted in our story,

assistant managing editors Telisha Bryan,

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dates another path to win the nomination even if they don’t place first in the primary. Given the strong showing of McGuire, Yang and Donovan, one could argue that the business community is looking beyond the pool of traditional politicians for a fresh leader. One group of candidates who decidedly did not do well in the poll were Republican hopefuls. None of the four declared candidates earned more than 20% of the vote. Most of the likely GOP voters—nearly 50%—said they favored “someone else,” reinforcing the common wisdom that whoever wins the Democratic

primary will be the next mayor. Among the issues most important to Crain’s readers, “improving the economy” ranked first, but “reducing crime” ranked second, even before “fighting the coronavirus,” “homelessness” and “reducing taxes.” Actually, on the subject of taxes, those taking the poll were evenly split on the subject of supporting a wealth tax, a surprise coming from a business audience. Forty-one percent said yes, and 40.5% said no; 18% were undecided. Business people are usually opposed to any new taxes, but after the pandemic, they may feel some type of levy is inevitable. ■

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To hasten recovery, New York must maintain its reopening momentum hough it may seem difficult to imagine, almost a full year has passed since haunting images of empty New York City streets, quiet sidewalks and shuttered storefronts flooded television screens following the first shutdown caused by the coronavirus. In fact, our last Queens Chamber of Commerce event was held the week before St. Patrick’s Day, the last time a bagpiper was heard in New York. It’s been a year that has taken a heavy toll in the city, across the state and throughout the country. Though the shutdowns offered an opportunity for health experts to determine how best to deal with a new, unfamiliar and invisible threat, they also came with costs too large for many businesses to withstand. Almost one-third of New York and New Jersey’s small businesses were forced to close for good, and

editor Robert Hordt

associate editor Lizeth Beltran

OP-ED

BY THOMAS GRECH

EDITORIAL

BLOOMBERG

ew York may finally be discovering who Ray McGuire is. As reported in our cover story this week, McGuire garnered 26% of the vote among Crain’s readers likely to participate in the Democratic primary in June. The longtime Wall Street investment banker, who most recently worked for Citigroup, received more votes than the candidate who has been leading in most other polls, Andrew Yang (17%), as well as other Democratic politicians such as city Comptroller Scott Stringer (14%) and Brooklyn Borough President Eric Adams (8%). While McGuire’s showing was a surprise to some experts because of his previous low polling

Frederick P. Gabriel Jr.

more than 1 million people statewide lost their jobs in the process. This particularly hurt traditionally disadvantaged groups such as Black and Hispanic communities. Low-income workers and hourly employees who depend on local businesses like retail stores in order to provide for their families also experienced disproportionately large job losses during the shutdown.

Economic spark Now, with the vaccine rollout finally underway and a conclusion to this pandemic in sight, we need to remember the devastating impact these lockdowns have had on the lives of so many people, not just in New York but everywhere. We know how to keep businesses open safely, and we should continue to welcome the economic spark they are providing. Fortunately, things appear to be heading in the right direction. More businesses are being allowed

to reopen, and many jobs are making their way back to New York as the statewide unemployment rate continues to steadily decline. Even some businesses that appeared to be lost for good are making a comeback. Century 21, a prominent department store in the area, announced it will be returning after initially being forced to close and lay off more than 1,000 employees due to the effects of the pandemic. It is a development that bodes well for the future of our business community and the health of our economy. These are the kinds of trends that will need to continue if New York’s recovery is to happen as quickly as possible, something that our elected officials are showing they recognize. During his annual address earlier this year, Gov. Andrew Cuomo emphasized that the state “simply cannot stay closed” if it wants to get back on its feet. Mayor Bill de Blasio similarly outlined a plan for reopening New

York City in his own address. It will be crucial for both the governor and the mayor to continue on this path in the weeks and months ahead. Rather than weighing any further lockdowns based on unhelpful distinctions between “essential” and “nonessential” businesses, they must maintain their commitment to keeping businesses open. They are on the right track, and keeping up our current momentum is absolutely necessary. A year ago, an eerily silent New York painted a broader portrait of life during the coronavirus. So long as our elected officials continue to recognize the importance of allowing businesses to remain open and operate safely, we can be the example for recovery from this epidemic and inch closer to the bustling city life we once knew. ■

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Thomas Grech is president and CEO of the Queens Chamber of Commerce.

8 | CRAIN’S NEW YORK BUSINESS | MARCH 15, 2021

P008_CN_20210315.indd 8

3/12/21 7:05 PM

OP-ED

Opening Midtown to more residential use could ease the affordability crisis

ur city’s recovery from the massive financial downturn created by the ongoing pandemic requires us to consider innovative solutions to revitalize our economy. That includes repurposing underutilized and vacant space, even if only temporarily, in order to give property owners a chance to recoup some of their pandemicrelated losses and to reactivate their buildings with new tenants. From the early days of the pandemic, the real estate industry has grappled with its repercussions. They include hotel vacancies and closings resulting from the sudden loss of tourism, together with the glut of vacant office space, a result of changing work habits, a new work-from-home culture and a dearth of Midtown commuters. At the same time, the city’s affordable housing crisis has deepened, along with budgetary deficits at the city and state levels, putting a strain on public funds that might be available to address that ongoing crisis. In response, Gov. Andrew Cuomo has proposed an amendment to the state Multiple Dwelling Law that would authorize flexibility in zoning to address high commercial vacancy rates and underutilized hotel properties located within specified areas in New York City. It’s an encouraging step because it will allow property owners the

opportunity to reimagine their vacant space for new revenue-generating uses rather than allow it to lie fallow until the economy returns to its post-Covid-19 levels, which could take years.

Conversions If adopted, the proposal would substantially increase a building owner’s ability to convert to residential use both hotels with fewer than 150 rooms and office buildings that were either built before 1980 or that are currently subject to bankruptcy proceedings or receivership. Although such conversions are currently permitted in some situations, they are limited by rules governing required rear yards and light and air standards, for example. Great flexibility is available in some cases for buildings built before 1961, and this proposal would extend that flexibility to many buildings that would not otherwise qualify. The proposal includes geographic limitations as well. Qualifying hotels must be located either outside Manhattan or in Manhattan south of Chambers Street or north of 110th Street, and office buildings must be located in Manhattan south of 60th Street. The governor’s plan also appears to permit residential conversion of buildings located in manufacturing districts within those geographic areas, which would otherwise require a zoning change or other special approval. Additionally, all conversions

BLOOMBERG

BY JAMES POWER

must either dedicate at least 25% of the units as affordable housing or be operated as supportive housing. Thus, instead of using limited public resources for the construction of new affordable housing, the proposal would tap a ready pool of buildings in need of occupants and building owners in need of economic relief. The proposal and the relief that it provides would sunset at the end of 2024. Mayor Bill de Blasio has raised objections to the proposal, arguing that it should proceed through the

City’s Uniform Land Use Review Procedure, and presumably be subject to environmental review procedures.

An opportunity Of course, the proposal will be fully vetted and refined by the Legislature and the governor’s office, and input from the city and its planners and the real estate industry are essential. But the proposal is a ray of light for building owners who have struggled with hotels that have ceased to operate and office properties with vacant floors and dwin-

dling rent rolls, and it is an opportunity to provide a substantial number of new affordable units in the coming years. But full ULURP and environmental review, as suggested by the mayor, would cause undue delay in the implementation of a proposal that requires immediate action. That is a delay we cannot afford. ■ James Power, a partner at Kramer Levin, advises private developers and cultural, educational and health care institutions on land use issues.

OP-ED

BY JOLIE MILSTEIN

ew York’s digital divide has long been a crisis in the making. Two years ago nearly a third of the city’s households lacked broadband internet access, and disproportionately those were people of color. The pandemic, which increased reliance on online access exponentially for everything from doctor’s visits and education to job searches and grocery shopping, has exacerbated the problem and underscored the need to solve it—now. We need innovative ways to close the digital divide and provide all New Yorkers with the online access they not only need but deserve. The affordable housing industry, which already serves the households most in need, is in a unique position to help. There is a blueprint we can follow that will equip new and existing buildings with the necessary infrastructure to deliver high-quality internet service while it ensures the widespread availability of low-cost service plans that low-income

households can easily afford. First, all new affordable housing construction should include the infrastructure necessary to support a minimum download speed of 100 megabits per second. Doing so will help safeguard against future upgrades and changes to broadband service that can leave affordable housing residents behind. By requiring government funding for new construction to be contingent on this capacity, we can make real progress on this front right away. But while there are indeed pockets of the city that require additional broadband infrastructure investment, it is not enough to simply build physical capacity. New Yorkers also need to be able to afford services for the online initiative to be successful.

Costs While rents in affordable housing buildings already include allowances for essential utilities such as heat, electricity, and water, they do not yet account for broadband internet costs. Including broadband service as one of the utilities

calculated in a resident’s rent is the most cost-effective way to provide high-quality broadband to residents of affordable housing without affecting their bottom lines. Another step to complement these allowances is to explore the potential for buildingwide purchasing agreements with broadband providers. This has the potential to drive down costs and ensure that all residents of a building have access, regardless of income level. Negotiating as a collective promotes economies of scale, making broadband service more efficient for everyone. Taken together, these steps provide the opportunity to make an immediate difference: More than half of those who do not have broadband in their homes cite high costs as the main reason behind this shortfall. Improving access while lowering costs is the best path forward. Finally, elected officials, public policy experts, broadband advocates and internet service providers should come together with affordable housing professionals to concentrate our collective focus on af-

ASSOCIATED PRESS

Pandemic underscores need to bridge New York’s digital divide

fordable broadband access to residents of low-income housing. By coming together, we can innovate ways beyond those outlined above to ensure low-cost service provision, high-speed connectivity, and access to communal Wi-Fi in shared spaces such as lobbies in all new and rehabilitated affordable buildings. Following this road map can help our city and state solve a pressing public policy challenge that is af-

fecting millions of New Yorkers. While it will not be enough to completely eliminate the digital divide, it will go a long way toward empowering low-income individuals by providing them the connectivity they deserve and require to succeed in an increasingly digital world. ■ Jolie Milstein is the president and CEO of the New York State Association for Affordable Housing.

MARCH 15, 2021 | CRAIN’S NEW YORK BUSINESS | 9

PEOPLE ON THE MOVE

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ACCOUNTING

CONSTRUCTION

NONPROFIT

Baker Tilly

Schimenti

Autism Speaks

Karin Kovacic has joined Baker Tilly as a Business Development Director bringing 15 years of experience to the firm. Karin will be responsible for the business development strategy for the local and national private equity practice. Karin will help enhance client relationships and market growth. Mergers & Acquisitions magazine recently named Karin to their 2021 Most Influential Women in Mid-Market M&A Honorable Mentions list.

Whitney Libby joins Schimenti as Director, Human Resources, where she will oversee the firm’s HR functions, leading efforts to attract, hire, develop, and retain top talent, taking a “People as the Foundation” approach to support an accelerated growth strategy. Recently accepted into the Forbes Human Resources Council, Whitney will also drive development in the DEI sphere, where she will be instrumental in devising a comprehensive strategy for achieving workplace equity.

Angela Timashenka Geiger is stepping down as President and CEO of Autism Speaks later this year. Her departure comes after a five-year tenure during which time Ms. Geiger introduced a new strategic vision for Autism Speaks and strengthened the financial stability of the organization. Ms. Geiger will continue to actively lead Autism Speaks until a successor is named and their transition is complete.

ACCOUNTING

CBIZ Valuation Group Andrew Kahn has been named Business Development Manager of the Northeast region for CBIZ Valuation Group. In his role, Andrew will be responsible for helping professionals throughout the region deliver a full range of valuation services. He has worked directly with more than 100 private equity firm clients and coordinated service delivery with a total of more than 500 private equity firms, as well as intermediaries, law firms, and a number of prominent corporate clients and family offices.

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. particular. The nominations submitted by individuals and firms in the New Standing tall within this chaotic breach are the foot soldiers of profesFew 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 and involvement in industry and community organizations—and at times Accounting and Consulting, Crain’s sought to spotlight the accomplished 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 this chaoticare breach the soldiersofof profesexperts insubmitted tax regulation, audit, estate forensic accounting, Few qualities moreare vital tofoot the health any 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 innovation disruptive thinking. Theseare women aresoldiers particular. The nominations talland 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, skilled at resourceful innovation and disruptive thinking. These women are

LAURA PETERSON

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 and Media and Technology Northeast Business Leader million profit-and-lossManaging statementDirector for clients inCommunications, 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

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS HEALTH CARE

H1 H1, which provides the largest global healthcare platform that connects healthcare professionals, announced today the appointment of Julie Stern to Senior Vice President of Engineering and Chief Information Security Officer (CISO). Julie brings more than thirty years of technology executive leadership to her role at H1 where she is running the 60+ person engineering team for the global healthcare organization.

Recognize them in Crain’s

COMMERCIAL REAL ESTATE

M&T Realty Capital Corporationl M&T Realty Capital Corporation® (MTRCC) has announced the appointment of Sean Cullen as a Managing Director. He will be responsible for originating affordable housing and multifamily loans across the United States and will be based in New York City. Sean will be a true asset to the communities that we serve, bringing innovative structuring ideas from his breadth and depth of experience in the multifamily and affordable housing sectors.

LAW

Latham & Watkins LLP Jason C. Ewart has been elected a partner at Latham & Watkins in New York, effective March 1. He is a member of the Capital Markets Practice in the Corporate Department. He advises underwriters and issuers on high-value debt transactions, with a focus on advising clients in high-yield debt offerings and acquisition financings. His work also encompasses bridge loan facilities, convertible debt offerings, restructurings, exchange offers, and consent solicitation processes.

For listing opportunities, contact Debora Stein at dstein@crain.com or submit directly to

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10 | CRAIN’S NEW YORK BUSINESS | MARCH 15, 2021

P010_CN_20210315.indd 10

3/11/21 3:08 PM

ASKED & ANSWERED

INTERVIEW BY AARON ELSTEIN

s chief executive of Wayne, N.J.–based Valley Bank, Ira Robbins leads an institution with $40 billion in assets that serves thousands of small businesses. Valley is the only place he’s ever worked, and he took the helm in 2018. He thinks good things are on the horizon for the economy—as long as relief funds go to those who need them most.

How does the economy look from where you sit?

I see encouraging things. For instance, about 45% of businesses that came to us for Paycheck Protection Program money last spring have come for a second draw. A lot of companies have reinvented themselves and become a lot more confident they’ll survive. Some are still struggling, but they can look to another big round of government assistance.

You worry the assistance isn’t well targeted, right?

It’s a bad PR position for me to take, but I think there will be unintended consequences that exacerbate the social divide because too much will go to people who don’t need it. Federal assistance has already created a significant amount of what I call nontraditional asset inflation—Bitcoin is an example. In the past when we’ve had accommodating monetary and fiscal policies, the main outcome has been making the wealthy wealthier.

What should be done differently?

I would focus on addressing immediate needs. I’ll

With so much vacancy, how come there haven’t been more foreclosures?

WHO HE IS Chief executive, Valley Bank FROM Annapolis, Md. RESIDES Morris County, N.J. EDUCATION Bachelor’s in finance and economics, Susquehanna University; MBA, Pace University GOOD DEEDS Robbins, 46, is a CPA and serves on the board of the Jewish Vocational Service of MetroWest New Jersey. He also is on the Morris Habitat for Humanity leadership council. MOTHER KNOWS BEST He started working at Valley because his mother wanted him to work close to home. She mailed him “help wanted” ads from the newspaper while he was away at college. One was for an entry-level job at the bank.

give you an example: The New Jersey state government is using stimulus money to make the maximum contribution to its pension plan. That’s a good thing; we absolutely should fund our commitments. But using Covid relief money to invest in the market? I would put the funding into shoring up the state’s unemployment system.

Your bank is renting much less office space, yet you believe demand will remain strong in the city. Why?

There’s a tendency to look at life statically, but things change. Facebook and Amazon are big tenants in New York now. They weren’t a decade ago. Companies we aren’t thinking about now will want space in New York in the years ahead because there’s something about this

When the pandemic hit, the government got smart and put in a moratorium that I think will remain for about another year. The stay has enabled us to modify loans without having to foreclose, and that’s positive. That said, the stay means vacant retail stores are unable to find solutions. Eventually there will be foreclosures, but for now we all have time to think and plan.

Your bank lends to small businesses in Florida. Are they doing better than those here?

Here’s an anecdotal example: A dry cleaner in a Florida retail strip is producing 75% of its pre-pandemic revenue, but the same kind of business up here is at 35%. We’re in a different place up here because of government restrictions. Also, people have started to move down to Florida in greater numbers.

I’ve heard that before, yet it’s never had a significant economic impact.

I do think things have changed. We lend to private schools and charter schools in Florida that tell us their waiting lists are five times longer than ever. I don’t think it’s transitory when you enroll your kids in school. Meanwhile, I hear that enrollment in private schools up here has dramatically declined. ■

2019

Crain’s 50 Most Powerful Women list is a dynamic representation of the breadth and depth of power held by women in New York. This list is selected and curated by Crain’s New York Business reporters and editors and will publish in our May 31 issue. We welcome input from the public.

NOMINATE TODAY: CrainsNewYork.com/nominations Entries Appreciated By: March 26 MARCH 15, 2021 | CRAIN’S NEW YORK BUSINESS | 11

BUCK ENNIS

IRA ROBBINS Valley Bank

city. The Theater District is such a special place, and when it’s reopened, people will come.

DOSSIER

THE LIST LARGEST LOBBYISTS City firms ranked by total compensation FEWER DOLLARS

FEWER CLIENTS

Total compensation for city lobbyists fell 6% in 2020, the first drop in a decade.

The number of clients served by city lobbyists also fell by 6% in 2020. Total clients

Total lobbyist compensation (in millions) 2,500

$120 $100

$106.3

SIZE OF THE largest 2020 lobbying contract, paid by developer coalition FWRA to Stroock & Stroock & Lavan, which worked to win city approval for a new Special Flushing Waterfront District.

2,314

2,000

$80 1,500 $60 $40

1,000 ’11

’12

’13

’14

’15

’16

’17

’18

’19

’20

Most lobbyist clients fall into these industries. As usual, a huge chunk of them are in real estate-related fields. REAL ESTATE, CONSTRUCTION, ENGINEERING AND DEVELOPMENT 40%

HEALTH AND MENTAL HYGIENE 6%

’12

-6%

REAL ESTATE DOMINATION

PUBLIC, COMMUNITY INTEREST AND NOT-FOR-PROFIT ORGANIZATIONS 16%

’11

’13

’14

’15

’16

’17

’18

’19

$1M

’20

KNOCK, KNOCK Lobbyists typically target city council and city agencies.

2020 DROP in total compensation for city lobbyists. Total clients fell by the same percentage.

Portion of targets

CITY COUNCIL AND STAFF

46% CITY AGENCIES 40% BOROUGH PRESIDENTS 5% MAYOR 5% COMMUNITY BOARDS 4%

TECHNOLOGY AND OTHER MEDIA 5%

SOURCE: Crain’s analysis of Lobbying Bureau data from the Office of the City Clerk

PHONE/ WEBSITE

TOP EXECUTIVE(S)

Kasirer 321 Broadway New York, NY 10007

212-285-1800 kasirer.nyc

Suri Kasirer President

Capalino & Co. 233 Broadway, Suite 710 New York, NY 10279

212-616-5810 capalino.com

Bolton-St. Johns 7 World Trade Center New York, NY 10007

RANK

COMPANY

1 2 3 4 5 6 7 8 9 10

2020 LOBBYIST COMPENSATION 2020 CLIENTS (IN MILLIONS)/ REGISTERED/ 1 % CHANGE VS. 2019 % CHANGE VS. 2019 2

2020 TOTAL EMPLOYEES 3

YEAR FOUNDED

$14.2 -1.1%

222 +2.3%

1997

James Capalino Chief executive

$9.9 -17.1%

233 -17.7%

2000

212-431-4748 boltonstjohns.com

Giorgio DeRosa, Ed Draves, Bill McCarthy, Emily Giske, Tom Connolly, Mike Keogh, Juanita Scarlett, Patrick McHugh, Teresa Gonzalez, Samara Daly, Anne Marie Anzalone, John Albert, Violet Moss Partners

$6.8 +20.7%

133 +26.7%

1992

Constantinople & Vallone Consulting 233 Broadway, Suite 830 New York, NY 10279

212-393-6500 candvconsulting.com

Peter Vallone Sr., Anthony Constantinople, Tony Constantinople, Perry Vallone Partners

$5.7 +12.0%

99 +12.5%

1998

Pitta Bishop & Del Giorno 120 Broadway, 28th Floor New York, NY 10271

212-652-3890 pittabishop.com

Jon Del Giorno, Vincent Pitta, Robert Bishop Founding members

$4.8 +10.4%

91 +7.1%

n/d

2008

Greenberg Traurig 200 Park Ave. New York, NY 10166

212-801-9200 gtlaw.com

John Mascialino Chair of New York City government law and policy practice

$4.6 +19.0%

113 +21.5%

1967

Davidoff Hutcher & Citron 605 Third Ave. New York, NY 10158

212-557-7200 dhclegal.com

Sid Davidoff Founding partner, chair of government relations

$3.2 -19.3%

69 -20.7%

1975

Fried, Frank, Harris, Shriver & Jacobson 1 New York Plaza New York, NY 10004

212-859-8000 friedfrank.com

David Greenwald Chairman

$3.2 —

n/d —

1971

Geto & de Milly 276 Fifth Ave., Suite 806 New York, NY 10001

212-686-4551 getodemilly.com

Michele de Milly, Ethan Geto Principals

$3.1 -7.4%

n/d

1981

CMW Strategies 233 Broadway New York, NY 10279

212-437-7373 cmw.nyc

Michael Woloz President, chief executive, Martin McLaughlin Founding partner

$3.1 -1.2%

65 -1.5%

n/d

1988

Source Source: Lobbying Bureau at the Office of the City Clerk, with additional research by Crain's (researcher@crainsnewyork.com). Data is self-reported to the Lobbying Bureau and is subject to change. n/d-Not disclosed. 1--Cumulative compensation reported by the lobbyists in their periodic reports. 2--Includes clients and lobbyist/client filers that reported retaining an outside lobbying entity in statements of registration. 3--Based on employees listed on statements of registration filed by lobbyists. 12 | CRAIN’S NEW YORK BUSINESS | MARCH 15, 2021

TRANSPORTATION

Taxi group blasts de Blasio’s $65M relief fund for medallion owners

he mayor is offering struggling taxi medallion owners $65 million in financial assistance, but the city’s taxi workers union last Tuesday said the program was not a collective solution and called it “a disgraceful betrayal from a city that already has blood on its hands.” The program, which will be funded with federal Covid-19 relief aid, will provide up to $20,000 in zerointerest debt restructuring and up to $9,000 in direct debt relief to medallion owners. In a series of tweets, the New York Taxi Workers Alliance, a 21,000-member union representing taxi drivers and livery and rideshare drivers, called out the mayor’s initiative as a program that does absolutely nothing for drivers. The mayor’s fund is “a giveaway to lenders,” Bhairavi Desai, executive director of the taxi workers union, said in a statement tweeted by the organization. “It’s a cash bailout for lenders while drivers are left to drown in debt, foreclosure and bankruptcy.” The average medallion price

reached $1.1 million in 2014. Christopher Lynn, former chairman of the Taxi and Limousine Commission, also spoke out against the mayor’s program, saying that the money allocated for relief wasn’t nearly enough and that bankruptcy protection was needed for medallion owners. “I challenge anyone who put this proposal forward to demonstrate how this will improve the financial condition of medallion owners,” Lynn said. “Loans for people who can’t pay the loans they already have—even though it’s interest free—doesn’t really get us anywhere. It doesn’t accomplish anything.”

BLOOMBERG

BY WILLIAM JOHNSON

Feasibility The mayor insisted during last Tuesday’s briefing that a much larger relief program was not feasible and that the new program would be a step in the right direction. “We’ve seen different bailout proposals. Some that would cost hundreds of millions, some that even went into a billion-plus,” de Blasio said. “That’s not possible for New York City . . . but here is a way to greatly improve the situation.”

TLC Commissioner Aloysee Heredia Jarmoszuk said during the briefing that her office would continue to offer medallion owners financial counseling and assist them in getting further relief from federal Paycheck Protection Program loans. “Demand for taxi trips is already starting to increase as our city’s

economy reopens,” Jarmoszuk said. “We need the taxi industry healthy and ready to put more cabs on the road to meet that demand. That is how the industry will truly recover.” The New York Taxi Workers Alliance called on the state to intervene, tweeting that the fund “is a gross misuse of the goodwill of the

senator [Chuck Schumer] and Congress members who are putting the money into the mayor’s hands.” The taxi workers union has come out in support of a taxi medallion relief bill sponsored by state Sen. Jessica Ramos, a Queens Democrat. ■ Lizeth Beltran contributed to this report.

Nominations are now open for Crain’s New York Business 2021 Notable in Marketing and PR

This is a special print and digital editorial feature within Crain’s May 24 issue that will recognize men and women in marketing and PR who have adapted quickly during the pandemic, whether offering news and educational programs or fundraising, or figuring out new ways to pitch and win business. We are welcoming nominations to help us determine those recognized in this feature.

CRAIN’S NEW YORK BUSINESS 2021

NOTABLE IN MARKETING AND PR

NOMINATE TODAY: CrainsNewYork.com/Nominations DEADLINE TO NOMINATE: MARCH 26

CRAIN’S NEW YORK BUSINESS 2021 MARCH 15, 2021 | CRAIN’S NEW YORK BUSINESS | 13

NOTABLE IN MARKETING AND PR

WHO OWNS THE BLOCK

543 WEST 122ND VANDEWATER

TALL TOWERS RISE ABOVE THE NEIGHBORHOOD Because of air rights, two buildings soar in Morningside Heights BY C. J. HUGHES

14 | CRAIN’S NEW YORK BUSINESS | MARCH 15, 2021

100 CLAREMONT AVE. A nickname for West 122nd Street is Seminary Row because of institutions such as Union Theological Seminary, an Oxford-type Gothic-style full-block school. After demolishing a chapel, L+M Development Partners, a firm known for affordable housing, and Lendlease, a construction company branching into development, are constructing a 193-unit, 42-story condo tower that will occupy the western edge of campus and part of its quad. Its offering plan, filed in November, has yet to be approved by the state’s attorney general, so pricing, finishes and amenities are unknown. But study spaces, a cafe and a new chapel are to be included in the tower, according to news reports. The Rev. Dr. L. Serene Jones, the seminary’s president, said that selling a piece of the campus to L+M, which paid $61 million, is in part to cover $125 million in necessary renovations and upgrades that would have otherwise been impossible because of flagging finances. But that hasn’t been a totally popular call: Some students protested in 2019 after Jones announced her plans. L+M has secured $250 million in financing, backed by life insurance policies, from the lender Barings. In the spirit of apartment buildings with geographic names, the 6-story redbrick prewar edifice at No. 512 is called the Sarasota. Adjacent to it, at No. 514, is the Grant, a nearly identical building, with gray bricks. Both are owned by Teachers College, one of many not-for-profits in the neighborhood and one that has been under Columbia’s umbrella since 1893. (Columbia awards students diplomas.) The Teachers College’s classrooms are nearby, in a full-block facility between West 120th and 121st streets. The Sarasota and Grant have four apartments per floor. Rents for the 2021-22 school year start at $9,650 per semester.

3080 BROADWAY The Jewish Theological Seminary, completed in 1930 and recognizable by its chamfered corner, trains rabbis. The seminary used the proceeds from the sale of a piece of its campus to construct a 2-story library, an auditorium and dorm, which were all open as of last year. As part of its 2016 fundraising efforts, the notfor-profit seminary also sold a 5-story dorm at 415 W. 120th St. for $19 million to a New Jersey-based limited liability company. The dorm was later purchased for $20.3 million by Pebb Capital, a private-equity firm focused on college housing. Its rentals are at the University of Kansas, the University of Georgia and Florida State. At 415, Pebb constructed a 14-story, 80-unit dorm called Monarch Heights. A common area features a spray-painted concrete wall.

1274 AMSTERDAM AVE..

490 RIVERSIDE DRIVE Riverside Church, completed in 1930 with a 392-foot spire visible far and wide, is next to McGiffert Hall, a 7-story granite-and-limestone building that for years had been a Union Theological dorm. But in 2018, as part of its massive divestment strategy, Union sold the structure to the church for $47 million. Worried that Riverside could someday sell the property as a development site, which was what happened across the street, some neighbors are pushing the city to protect McGiffert with landmark status.

On a section of a street with limited historic structures owing to urban renewal—the Grant Houses public-housing complex is catercornered—this vintage structure and others like it on the block stand out. The building is a 6-story prewar walk-up, owned by the Dermot Company, a national landlord that bought it for $2.6 million in 2006. The building contains Max Soha, an Italian restaurant popular with students, on its ground floor. Upstairs, a renovated four-bedroom apartment rented for $3,000 a month in November. Max Caffe, a sister restaurant, is nearby, at No. 1262, in a 7-story red-brick walk-up with 29 apartments that features Bar 314, a pizzeria.

1255 AMSTERDAM AVE. 543 W. 122ND ST. Vandewater, a 32-story tower from the firm Savanna, is among the few condos in Morningside Heights, a college town-like enclave that’s home to Columbia University, Barnard College and the Manhattan School of Music. Also, there is the Jewish Theological Seminary, which sold Savanna a portion of its campus, in a multipart deal in 2016, for $77 million. The site, which replaced a library, is home to the tower today. Savanna demolished a 1980s library wing for a 183-unit building, which has been delayed, like other condos, by the pandemic. To help get buyers in the door, Savanna is offering financial incentives such as covering closing costs and parking fees, said Christopher Schlank, the firm’s co-managing partner. Sales began in 2018 and won’t wrap up until 2023, he said, although Covid-related setbacks have not led to one canceled contract. “These are trying times, but trying times make you love some things even more,” he said. Pacific Western Bank provided a $35 million acquisition loan, and Deutsche Bank supplied $176 million in construction financing.

Not all of Columbia’s buildings are a century old. Dating to 2004 is this 11-story facility, the home of the School of Social Work, a graduate program that’s been part of Columbia since 1898. It was originally situated downtown. Through the mid-1960s, the corner berth was home to the College of Pharmacy of the City of New York, which itself was once based downtown, on West 23rd Street. Today the School of Social Work enrolls 900 students.

BUCK ENNIS, GOOGLE MAPS

wo new apartment buildings near Columbia University are drawing scrutiny for putting on airs—as in air rights. On West 122nd Street, the under-construction towers Vandewater, a 32-story condo, and 100 Claremont Ave., a 42-story version, soar much higher than other buildings in their Morningside Heights neighborhood, which is dominated by Columbia's lowslung campus and its affiliated schools. Under the rules, the towers are permitted to be that tall because vast troves of zoning envelopes, known as air rights, dangle over those classroom sites. While a yearslong effort backed by top city officials continues to push for Morningside Heights to have height caps, the new apartments are welcoming their first residents. “I probably would be [upset] about scale too,” said Christopher Schlank, the co-managing partner of Savanna, the developer of Vandewater, which began closings on apartments on its lower floors in January. The building’s studios to four-bedroom units are 35% sold since 2018, at prices averaging $1,800 per square foot, or from about $940,000 to $6,000,000. Schlank, a native of the Upper West Side, recalled the controversies that erupted over the redevelopment of the Penn Central rail yards, which became a line of Trump-branded residences. “But we have tried to be as respectful as possible,” Schlank said, noting that the facade of his 183-unit building is made of a prefabricated stone that mimics the limestone of Columbia’s walls. Likewise, the Vandewater’s concentric-square-patterned driveway and terrace are meant to echo the decorative brickwork on walkways inside the Ivy League school’s gates. “This is not some glass box,” Schlank said. Meanwhile, 100 Claremont, which is rising on the campus of Union Theological Seminary, also has tried to fit in, even as its height flirts with the top of Riverside Church’s spire across the street. The facade of the 193-unit tower, designed by Robert A. M. Stern Architects, appears in renderings to be made of stone like others in the collegiate hub. Robert A.M. Stern is known for his prewar-inspired designs. An effort led by the Morningside Heights Community Coalition, a fiveyear-old grassroots group, is moving forward with a rare thing in planning circles: a rezoning led not by developers but residents. That's necessary because nearly two-dozen sites around Columbia are rife with air rights and thus vulnerable, said Robert F. Stern, the group's vice president. “The bottom line is that if we do nothing, all we will continue to see in our neighborhood are out-of-scale all-luxury condo towers and high-end market rentals,” Robert F. Stern said. ■

HEALTH CARE

BY SHUAN SIM

rtificial intelligence, machine learning and cloud computing are a few of the cutting-edge technologies making the rounds in health care. But even with those capabilities in its arsenal, IBM’s Watson Health—the Westchester-based tech giant’s cloud-powered health solutions arm—has not been able to turn a profit. Now IBM is reportedly contemplating selling it off. “It is extraordinary technology, but they struggled to prove a return on investment in health care that could get people to buy into it,” said John Bosco, chief information officer at Northwell Health, the state’s largest health system, headquartered in New Hyde Park. Watson Health provides a case study for what health systems actually look for when adopting technology, industry experts say. The bridge between innovation and adoption is understanding what health systems’ needs are and spelling out how the tech meets them. The health care industry has lagged rather than led when it

comes to adopting innovative tech solutions, said Amir Farhi, chief business development officer of WalkMe, a San Francisco-based digital solutions provider across multiple industries. “Its approach to novel technology has been cautionary rather than jumping all in,” Farhi said. “That has been the situation for the past decade or so.”

Considerations In interacting with health systems, solution providers must consider the laymen who use the innovations because it’s not just about the science, said Dr. Eric Dusseux, CEO of Toronto-based Bionik, a robotics and analytics solution provider for neurological conditions. The solution has to address questions at the C-suite level as well as at the physician level, he noted. Such questions could include: “Is this technology going to fill a capability gap that we have?” “How can we integrate this into our technology environment?” And “Is this company one we see as a long-term partner?” said Kristin Myers, chief information officer at Mount Sinai Health System.

There are so many new products on the market that it is difficult to advance even a few for feasibility studies and pilots, Myers said. With health systems already having so many in-house tech solutions, any new entrant must demonstrate it integrates well into the existing workflow, she added. Return-on-investment considerations include not just financial ones, but also those related to patient and provider experience, Myers said. What about cutting-edge technologies that have yet to prove their worth, as might have been the case with Watson Health? For products that do not have a proven track record, a health system’s ability to try them out depends on its willingness to take a risk with its financial resources, Myers said. Bosco agreed, saying that even though Watson Health was IBMbacked, without its value clearly spelled out, the risk for adopting it was unpalatable for many. IBM did not respond to a request for comment. Bosco recalled examples of peers at smaller health systems or physician networks that would decline to

GETTY IMAGES

Health systems need proven solutions— not just flash—when adopting tech

undertake any new technological innovation unless there were a demonstrated positive financial return. However, the health care industry cannot drag its feet when it comes to technological innovation, Farhi said. “In five to 10 years, there will be a tipping point where it becomes risky for C-suite executives not to adopt cutting-edge technology in their workflow,” he said. Bosco anticipates a similar future. “At Northwell, there are certainly aspects of being an early

adopter that are driven by strategic competitive reasons,” he said. “We don’t want to lose out to our competitors because they’re innovating too.” Until then, health-tech solution providers need to hold on and take their small wins where they can, Farhi said. “It will be about building relationships with one health provider at a time until the critical mass takes over,” he said. “One day the industry will look back and wonder how it ever survived without these innovations in the first place.” ■

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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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CN020148.indd 1

3/11/21 2:50 PM

COMMERCIAL REAL ESTATE

BY RYAN DEFFENBAUGH

new West Side life sciences hub will be anchored by Mount Sinai’s Icahn School of Medicine, adding more than 200,000 square feet of laboratory and biomedical facilities to a growing city sector. Mount Sinai has leased 165,000 square feet across three floors at 787 11th Ave. in Hell’s Kitchen for laboratory and outpatient space, according to the building’s developer, The Georgetown Co. The deal is part of a full redevelopment of the 505,000-square-foot building, a century-old former ser-

With the deals, Georgetown is targeting a rapidly growing market. Real estate brokerage CBRE expects the city’s life science office space, currently 1.7 million square feet, to reach 4.2 million by 2025, according to a report released last month.

Tiny market

Even with that expansion, the market is still tiny in comparison to the city’s 500 million square feet of office space as well as the life science capacity of East Coast rival Boston. “Yet we’ve got exceptionally talented physicians, researchers and scientists who live and work here,” said Jonathan Schmerin, a GEORGETOWN HAS SECURED managing principal at George$100 MILLION IN FINANCING town. “It’s evident to us that FROM GUGGENHEIM the industry is INVESTMENTS going to continue to grow dravice hub for Packard Motor Car Co. matically in New York, given the The developer has also leased quality of the existing institutions 36,000 square feet to Neri Oxman, and the talent in those institutions.” currently leading the Mediated Georgetown has secured $100 Matter group at MIT, for a research million in financing from Guggenfacility. heim Investments to help construct

Mount Sinai’s site. The facility will include centers for genomic research, a medical imaging center, an ambulatory surgery center and a spine and breast center, offering diagnostics and surgery. Mount Sinai is expected to move in by 2024. JLL’s Peter Riguardi and Steven Rotter partnered with Georgetown on the deal, while JLL’s Rob Martin and Barbara Winter represented Mount Sinai. The 787 11th Ave. development is now fully leased, according to Georgetown, with car dealerships for Jaguar, Land Rover and Nissan taking spots. Georgetown purchased the site in 2015, with a list of partner investors that includes hedgefund manager Bill Ackman, NBA superstar LeBron James and actor and politician Arnold Schwarzenegger. Both the Bloomberg and the de Blasio administrations invested resources in expanding biotech and the life sciences, most recently

THE GEORGETOWN CO.

Mount Sinai to anchor West Side life sciences hub

through a $40 million grant to Columbia University, Einstein-Montefiore and Rockefeller University, among others. Life sciences is especially important to the city’s economic recovery because it is a business unlikely to embrace remote

work, Schmerin said. “You can’t Zoom to do this type of research,” he said. “This is the type of work that is pandemicproof, and I believe this industry will become a critical backbone to New York’s economy.” ■

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INSTANT EXPERT

What’s in the $1.9 trillion rescue package for New York? THE PLAYERS

Some economists, notably Lawrence Summers, are concerned inflation could be on the horizon after federal relief in 2020 totaled $3.4 trillion and raised the national debt to $28 trillion. Other economists such as Treasury Secretary Janet Yellen argue that the benefits allocated in the relief bill will offer immediate relief to struggling families and help jumpstart the economy. The New York economy is re-opening, albeit gradually. Gov. Cuomo has continued to lift dining restrictions, and more than 18% percent of the state’s population has received at least one vaccine dose. More notably, President Joe Biden expects to have enough doses to vaccinate 300 million Americans by July, an initiative that will help the economy recover more than any single piece of economic stimulus.

THE MTA WILL GET $6.5 BILLION ALLOCATED UNDER THE RELIEF BILL’S $30.5 BILLION CARVEOUT FOR TRANSIT RELIEF

BIDEN discusses the economy at a recent briefing with aides.

YEAH, BUT….

It’s also not clear if New York State even needed some of this federal aid money. Gov. Andrew Cuomo announced last month that total tax receipts came in higher than expectMANCHIN ed—$3.2 billion higher, in fact—giving the state a financial cushion before the billions roll in from Washington. Republicans criticized the unemployment provisions in the legislation, arguing that extending unemployment benefits into the summer could deincentivize people from returning to work, especially in service industry jobs and at SINEMA small businesses. Meanwhile, the progressive base of the Democratic Party lamented the elimination of a provision raising the minimum wage to $15 an hour, after moderates like Sen. Joe Manchin and Sen. Kyrsten Sinema sunk the amendment during contentious negotiations.

WIKI

WHAT’S NEXT

Senate Majority Leader Chuck Schumer, a Brooklyn native and the dean of New York’s congressional delegation, was the chief negotiator for the latest relief bill. As SCHUMER such, Schumer was able to dictate the terms of the package and set up a variety of financial provisions for New York to draw on. The state will receive $12.5 billion in direct aid to help close a $15 billion budget gap and pay for essential services and general funding. New York City will receive $6.1 billion, while $4.1 billion will be divided among New York counties and municipalities. The beleaguered Metropolitan Transportation Authority—which had already received $8 billion in CARES Act I and II—will get $6.5 billion allocated under the relief bill's $30.5 billion carveout for transit relief. The MTA faced a $17.1 billion projected shortfall through 2024 before the federal measures were passed. Local K-12 schools will receive $9 billion in funding, while the state’s colleges and universities are eligible to use $2.6 billion to pay for re-opening and financial aid. The devastated restaurants of the city will be able to tap into grants from a $28.6 billion “restaurant relief fund,” and small businesses have a new $10 billion “opportunity fund” to draw on.

WIKI

The $1.9 trillion American Rescue Plan Act is one of the largest federal relief packages ever assembled. One of the reasons why the federal aid package is so expensive is due to how much money is allocated to direct stimulus payments to Americans, the extension of unemployment aid, and an expansion of the child tax credit. Many New Yorkers are eligible for these provisions. Those New Yorkers making under $75,000 (and couples making less than $150,000) will receive $1,400 in direct payments. Parents with children under the age 6 are eligible to receive a tax credit of $3,600 per child; a $3,000 tax credit is available for every child from 6 to 17. For those New Yorkers collecting unemployment benefits, an extra $300 a week will continue through September, while those who lost their jobs last year will have taxes waived on the first $10,200 in unemployment benefits received in 2020.

ISTOCK

THE ISSUE

BLOOMBERG

SOME BACKGROUND

Prior to the passing of the rescue package, New York’s budget situation was a mess and unemployment had decimated certain industries, especially those connected to the tourism industry. The city ended 2020 with 569,000 fewer jobs, with roughly 350,000 unemployed in arts, leisure, and hospitality. A recent survey of small businesses from the Brooklyn Chamber of Commerce revealed 80% of those questioned indicated year-over-year revenues declines. One reason the Democrats went so big this time and pushed it through with a 50-49 party-line vote is due to the stalled economic recovery President Barack Obama experienced following the passage of the $787 billion stimulus package in 2009. Gross Domestic Product grew just shy of 1% in Obama’s first term and unemployment remained above 5% into his second term.

18 | CRAIN’S NEW YORK BUSINESS | MARCH 15, 2021

WIKI

BY BRIAN PASCUS

CORONAVIRUS More than 2.6 million vaccine doses have been dispensed in New York City, including some at Aviation High School in Queens. PHOTOGRAPHS BY BUCK ENNIS

MARCH 15, 2021 | CRAIN’S NEW YORK BUSINESS | 19

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NOTICE TO PURCHASERS OF HESS HEATING FUEL OIL This Notice has been authorized by the Court to advise you that a class action is pending on behalf of all persons or entities in New York City, Westchester, and Long Island who, between March 2009 to March 2013, purchased Hess No. 4 fuel oil or Hess No. 6 fuel oil and received and paid for an adulterated product containing non-Hess used and/or waste oil. The lawsuit is pending before the Honorable Jennifer G. Schecter, New York State Supreme Court, New York County (Mid Island Management of Queens and Carnegie Park Associates, L.P., on behalf of themselves and all others similarly situated, Plaintiffs, against Hess Corporation, Defendant, Index No. 650911/2013). Plaintiffs allege that heating oil delivered to them by two independent third party trucking companies contracted by Hess was adulterated with waste oils and other oils of a lesser value that were mixed into the ordered grade of fuel oil by those trucking companies and another third party oil company, so that the delivered product did not meet the standards of the parties’ contracts and that Hess customers thereby were caused to overpay for the product. Defendant has denied the allegations and has asserted defenses. On February 17, 2021, the Court ordered that the case may proceed as a class action and designated GROSSMAN LLP as counsel to the Class. This Notice is not an expression by the Court of any opinion as to the merits of any claims or defenses by the parties to the lawsuit. YOUR LEGAL RIGHTS AND OPTIONS IN THIS LAWSUIT Make sure to read this section carefully to understand your options. 1. REMAIN IN THE LAWSUIT If you do nothing in response to this Notice, you may be a member of the Class if you received Hess No. 4 or Hess No. 6 fuel oil which was adulterated. This may allow you to get money or other benefits that may come from a trial or settlement of this class action lawsuit. You will be bound by all of the orders and judgments that the Court issues whether fa vorable or not. 2. ASK TO BE EXCLUDED FROM THE LAWSUIT If you ask to be excluded from this class action lawsuit, you will retain the right to sue Defendant separately and on your own behalf. If you are excluded, you will not be entitled to a share in any money or other benefits that the Class may obtain from Defendant from either a trial or a settlement in this lawsuit. If you exclude yourself from this class action lawsuit in order to start or continue your own lawsuit against Defendant, you should talk to your own lawyer soon because your claim may be subject to a statute of limitations. To exclude yourself from the Class you must send a request by mail stating that you wish to be excluded. Be sure to include the name of the purchaser of the fuel oil, address, and telephone number. The Request for Exclusion must be postmarked no later than JuO\ 2, 2021, and sent to: LINDSAY E. HOGAN, GROSSMAN LLP, 745 Fifth Avenue, 5th Floor, New York, NY 10151 For further information about the case you may call or email Lindsay E. Hogan at GROSSMAN LLP, (646) 770-7445, lhogan@grossmanllp.com. You may also view all filings with the Court at: https://iapps.courts.state.ny.us/nyscef/CaseSearch. Enter the characters provided. That will then take you to “case search” where you can enter the Case Number: 650911/2013. That will take you to the docket. PLEASE DO NOT CONTACT THE COURT

POSITIONS AVAILABE Compass, Inc. has a position in New York, NY. *Engineering Manager [COMP-NY21-EXMR] – Develop software in modern object oriented functional language; design, develop, & maintain distributed backend systems or data platforms; & work with databases high performance, scalability & availability requirements. Mail to: M. Quinn, 90 Fifth Ave Fl 3, New York, NY 10011 & note Job ID#

Associate (Corporate): Collaborate w/ Corporate partners, associates & legal VXSSRUW VWDII 5HS FOLHQWV LQ QDW·O FRUSRrate practice & participate in sophisticated corporate matters. Draft & prep legal docs. Collaborate w/ resources inside RXWVLGH WKH ÀUP WR FRPSOHWH SURMHFWV tasks. Use initiative & discretion in accomplishing routine assignments w/ minimal supervision. Consistently exhibit high degree of professionalism. Establish priorities & work concurrently RQ D YDULHW\ RI SURMHFWV 3HUIRUP DOO assignments in strict compliance w/ ethical guidelines governing the practice of law. Communicate orally & in writing w/ DWW\V ÀUP SHUVRQQHO FOLHQWV LQ D FRXUWHRXV SRVLWLYH SURI·O PDQQHU 5HT -' RU )'( %DUUHG LQ 6WDWH RI 1< 5HT yrs of working in transactional corporate ODZ VHWWLQJ \UV RI GUDIWLQJ DFTXLVLWLRQ agmts, proxy stmts & formation docs for corporations, LLCs & partnerships; \UV SUHSDULQJ SXEOLF FRPSDQ\ GLVFORVXUH GRFV \UV GUDIWLQJ MRLQW YHQWXUH agmts; 2 yrs using extensive comm. skills presenting to companies & boards RI GLUHFWRUV RQ FRUSRUDWH ODZ ÀGXFLDU\ duties. Travel 5% dom 5% intl. Mail UHVXPH 7URXWPDQ 3HSSHU +DPLOWRQ 6DQGHUV 3DWUL]LD 'H*HQQDUR UG Ave, New York, NY 10022.

Notice of Qualification of STORY VENTURES MANAGEMENT, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/19/21. Office location: NY County. LLC formed in Delaware (DE) on 10/24/18. Princ. office of LLC: 50 W. 17th St., 2nd Fl., NY, NY 10011. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808-1674. 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 formation of SEAPORT SNAK NYC, LLC. Arts of Org filed with Secy of State of NY (SSNY) on 1/8/21. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to: 130 Barrow St., #511, NY, NY 10014 . Purpose: any lawful act. NOTICE OF FORMATION of Optimal Health and Greatness LLC.Arts of Org filed with Secy.State of NY (SSNY) on 8/20/20 Office location:NY County. SSNY designated as agent upon whom process may be served and shall mail a copy of process against LLC to 310 E 46th St,#9G, NY, NY 10017.R/A US Corp Agents, Inc. 7014 13th Ave, #202, BK, NY 11228 Purpose: any lawful act

PUBLIC & LEGAL NOTICES Notice of formation of Limited Liability Company name:Walker 9, LLC Art. Of Org. Filed Sec. of State of NY 06/07/2017. Off. Loc.: Richmond Co. SSNY designated as agent upon whom process against it may be served. SSNY to mail copy of process to The LLC, 209 Granite Ave Staten Island NY. Purpose: Any lawful act or activity

Glen Falls DB LLC. Arts. of Org. filed with the SSNY on 11/16/20. 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, c/o Duvernay + Brooks, 2095 Broadway, Ste 404, New York, NY 10023. Purpose: Any lawful purpose.

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SUSHI LAB LLC, Arts. of Org. filed with the SSNY on 02/16/2021. 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, 132 W 47th St, NY, NY 10036. Purpose: Any Lawful Purpose.

Notice of Formation of CLOUD NINE HOLDINGS, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 01/12/21. Office location: NY County. Princ. office of LLC: 483 Tenth Ave., NY, NY 10018. 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.

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2496 Amsterdam LLC, Arts of Org. filed SSNY 11/05/20. Office: NY Co. SSNY design agent of LLC upon whom process may be served & mail to c/o Yeshiva University, 500 West 185th St., Belfer Hall Ste. 1001, NY, NY 10033. General Purpose. NOTICE OF REGISTRATION of Joseph Saveri Law Firm, LLP. Notice of Registration filed with the Secretary of State of New York (SSNY) on 02/12/2021. Office location: NEW YORK County. LLP formed in California on 04/05/2018. SSNY has been designated as an agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLP served upon him /her is: 40 Worth St, 10th Floor, Office 1018, New York, NY 10013. The principal business address of the LLP is: 40 Worth St, 10th Floor, Office 1018, New York, NY 10013. California address of LLP is: 601 California St #1000, San Francisco, CA 94108. Certificate of LLP filed with Secretary of State of California located at: 1500 11th St, Sacramento, CA 95814. Purpose: any lawful act or activity.

Notice of Qualification of Fairview Property Group LLC. Authority filed with Secy. of State of NY (SSNY) on 12/1/20. Office loc: NY County. LLC formed in NJ on 9/23/20. SSNY designated agent upon whom process may be served & mailed to: 348 Fairview Ave, Cedar Grove, NJ 07009. Cert. of Form. filed with State Treasurer Div. of Rev., 125 W. State St Trenton, NJ 08625. Purpose: Any lawful activity. Notice of Qualification of Fintech Meetup, LLC. Authority filed with Secy. of State of NY (SSNY) on 01/15/21. Office location: NY County. LLC formed in Delaware (DE) on 01/11/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 605 3rd Ave., 26th Fl., NY, NY 10158. Address to be maintained in DE: Registered Agent Solutions, Inc., 9 E. Loockerman St., Ste. 311, Dover, DE 19901. Arts of Org. filed with the DE Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities.

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Notice of Formation of The Law Office of Samer Yahyawi, PLLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 01/13/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 888 Main St., Ste. 123, NY, NY 10044. Purpose: to practice the profession of Law. Notice of Formation of COMMUNITYPOLICE RELATIONS FOUNDATION OF NEW YORK, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 0 1/13/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c /o Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Charitable entity. Notice of Formation of Bluebird Capital LLC, Articles of Organization filed with Secy. of State of NY (SSYNY) on 3/19/19. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 1562 First Ave, #205-2089 NY, NY 10028. /A: US Corp Agents, INC 7014 13th Ave, #202, BK, NY 11228. Purpose: any lawful act.

Notice of Qualification of VEKOMA CAPITAL ADVISORS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 02/04/21. Office location: NY County. LLC formed in Delaware (DE) on 01/15/21. Princ. office of LLC: 3 Peter Cooper Rd., 3A, NY, NY 10010. 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 122072543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19807. Cert. of Form. filed with DE Secy. of State, 401 Federal St., #4, Dover, DE 19901. Purpose: Hedge fund. Notice of formation of King Durian LLC. Articles of Organization filed with the Secretary of NY (SSNY) on 10/ 07/2020. 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: 7014 13th Avenue, Suite 202BRO, Brooklyn, NY 11228. The principal business address of the LLC is: 456 Washington Street, Apt 6A, New York, NY. Purpose: any lawful act or activity.

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Y O U R

Notice of Qualification of TOWER ENTERPRISES GROUP LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/11/21. Office location: NY County. LLC formed in New Jersey (NJ) on 12/30/20. Princ. office of LLC: 256 W. 36th St., 8th Fl., NY, NY 10018. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 61 Reservoir Ave., Apt. 2, Jersey City, NJ 07307. Cert. of Form. filed with State Treasurer, 33 W. State St., Fifth Fl., Trenton, NJ 08646. Purpose: Any lawful activity.

NOTICE OF QUALIFICAITON of HVPF MANAGER II, LLC. App. For Auth. filed with Secy of State of NY (SSNY) on 01-06-21. Office location: New York County. LLC formed in Delaware (DE) on 01-15-20. SSNY is designated as agent of the LLC upon whom process against it may be served. SSNY shall mail a copy of any process to: 28 Liberty Street, New York, New York 10005. DE address of LLC: c/o 1209 Orange Street, Wilmington, DE 19801. Articles of Org. filed with DE Secy of State, 401 Federal Street, Ste 3, Dover, DE 19901. Purpose: any lawful activity.

Notice of Qualification of CONNECT CCC, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/13/21. Office location: NY Cou nty. LLC formed in Delaware (DE) on 07/29/19. Princ. office of LLC: One Park Ave., Ste. 1412, 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., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., #4, Dover, DE 19901. Purpose: Residential ISP Provider. NOTICE OF FORMATION OF AfroConex LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 12/22/20. 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: 119 Payson Ave, Apt 6E, New York, NY 10034. The principal business address of the LLC is: 119 Payson Ave, Apt 6e, New York, NY 10034. Purpose: any lawful act or activity

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NOTICE OF FORMATION NXTTHING RPO, LLC Articles of Organization filed with the Secretary of State of New York (SSNY) on October 21, 2020. Office location: NEW YORK County. LLC formed in Ohio on Mach 22, 2019. SSNY has been designated as an agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 28 Liberty Street, New York, NY 10005. The principal business address of the LLC is: 7298 Upper Clarenton, Drive South, New Albany, Ohio 43054. Ohio address of LLC is: 7298 Upper Clarenton, Drive South, New Albany, 0hio 43054. Certificate of LLC filed with Secretary of State of Ohio located at: 22 North Fourth Street, Columbus, Ohio 43215. Purpose: any lawful act or activity. Glen Falls DB Developer LLC. Arts. of Org. filed with the SSNY on 11/16/20. 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, c/oDuvernay + Brooks, 2095 Broadway, Ste 404, New York, NY 10023. Purpose: Any lawful purpose.

J O U R N E Y

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3/12/21 9:11 AM

POLL FROM PAGE 1

the rise in crime and widespread dissatisfaction with the Republican nominees running for mayor. But it was McGuire, the former Citigroup executive, who emerged as the big winner in the poll. Crain’s readers gave the little-known Wall Street executive almost 27% of the vote as their first choice for mayor among Democratic candidates. “It’s striking that McGuire does so well in this group,” said Nicole Gelinas, senior fellow at the Manhattan Institute. “In the last general polls, McGuire still had very low polling. It’s not that people don’t like him; it’s that he has low name recognition.” McGuire also received 14% of the vote when readers were asked who their second choice would be. “It reveals that Ray McGuire has an opening to consolidate the support of business professionals below the C-suite level,” said Bruce Gyory, a Democratic political strategist. Gyory emphasized that McGuire still has more work ahead of him— namely to build a diverse coalition of voters as entrepreneur Andrew Yang has—but those who dismiss his chances are being premature. “If he can simultaneously connect with outer-borough minority voters, especially Black homeowners, he

out because they are drawing from a more diverse constituency.” Gyory compared this year’s race to the 1977 mayoral Democratic primary that drew voters from different ethnic, borough and racial constituencies in a field that included Ed Koch, Mario Cuomo and Bella Abzug. This year there are three Black candidates, two Hispanics, four women and an Asian American running among the Democrats. “The large number of candidates draws a different cross-section of voters out and alters the shares. Whoever has second- and thirdplace shares will have a telling advantage under ranked-choice voting,” Gyory said. With roughly 16% of the vote, Donovan emerged as the favorite among readers as a second choice. He was followed by Yang at about 15%, McGuire at about 14%, Adams at roughly 14% and Stringer at around 13%. “The interesting thing to note is Yang, who probably reflects the old John Lindsay quote ‘fresh while everyone else is tired,’” said Hank Sheinkopf, a longtime New York political strategist. “Yang has a freshness to the readers of Crain’s and some business relationship where they would look well upon him.” The readers surveyed did not look well upon the four Republican candidates running for mayor—nearly 50% said they preferred “someone else” than anyone among the group that includes Guardian Angels founder Curtis Sliwa (about 20%), former Wall Street executive Sara Tirschwell (about 15%), small businessman and advocate Fernando Mateo (about 14%) and former NYPD officer Bill Pepitone (about 4%). “The Republicans missed an opportunity with [Joe] Lhota and [Nicole] Malliotakis, who were oldschool Republican candidates in the New York environment,” said Gelinas, listing the GOP’s 2013 and 2017 candidates, respectively, who were defeated by Mayor Bill de Blasio. “And as they’ve more tightly embraced Trump, that harms their ability to compete for a while.”

“LOOKING AT COMPETENCE RATHER THAN IDEOLOGY MAKES ... MORE SENSE” has a chance to become competitive in this race,” Gyory said. Yang came in second with about 17% of the first-choice vote, followed by Comptroller Scott Stringer (about 13%), former Office of Management and Budget and HUD secretary Donovan (about 12%) and former Sanitation Commissioner Kathryn Garcia (about 10%). “This shows the business community is looking for options outside of the traditional elected official,” said John DeSio, a political consultant and vice president of Risa Heller Communications.

Poor showing As might be expected, progressive candidates fared poorly among Crain’s readers, with attorney Maya Wiley getting around 3% of the vote, activist Diana Morales around 1% and Councilman Carlos Menchaca nearly 1%. “There’s probably some measure of concern of how far left people feel the candidates, and the progressive movement, are going,” DeSio said. “You look at a business guy like Ray McGuire, and Yang is not running a very leftward campaign, and Donovan is running as a Bloomberg technocrat.” The element of ranked-choice voting, which can help pick the winner in the event no candidate reaches 50% of the vote by adding voters’ additional choices, makes the second-choice vote all the more important this year. “The ranked choice is going to have an impact,” Gyory said. “In large candidate fields, for an open seat, it’s whoever gets a higher turn-

THE NEXT MAYOR

If you are planning on voting in the Democratic primary and you were voting today, which mayoral candidate would you vote for?

22 | CRAIN’S NEW YORK BUSINESS | MARCH 15, 2021

26.52%

Raymond McGuire

17.09%

Andrew Yang Scott Stringer

13.36%

Shaun Donovan

Maya Wiley

14.73%

Andrew Yang

14.15% 13.56% 12.97%

Scott Stringer

8.06%

9.82%

Someone else

6.48%

Someone else

16.31%

Shaun Donovan

Eric Adams

9.82%

Eric Adams

This is the first year that voters may rank up to five candidates. Who is your second choice for mayor in the Democratic primary?

Raymond McGuire

11.79%

Kathryn Garcia

7.07%

Kathryn Garcia

3.34%

Maya Wiley

6.68%

Loree Sutton

1.38%

Dianne Morales

2.75%

Dianne Morales

1.18%

Loree Sutton

1.38%

Carlos Menchaca

0.98%

Carlos Menchaca

0.59%

If you are planning on voting in the Republican primary and you were voting today, which mayoral candidate would you vote for?

Which of the following issues is most important to you? Fighting the coronavirus Improving the economy

46.37%

Someone else

Lowering taxes Reforming the Police Department

20.43%

Curtis Sliwa

13.95% 41.06% 5.70% 2.16%

Reducing crime 15.13%

Sara Tirschwell

Bill Pepitone

3.34%

Homelessness

2.75% 5.51%

School integration 0.20%

4.13%

Do you support raising taxes on the wealthy?

41.65%

18.86%

Income inequality

Creating more affordable housing

13.95%

Fernando Mateo

Key issues Roughly 63% of readers surveyed said the most important quality for the next mayor to have is competence, and nearly 60% said unions in the city should have less influence. “The business community wants someone who can manage a business, has competence and won’t cave into unions. That’s the message here,” said Sheinkopf. The economy and taxes were a primary focus. The most important issue among voters surveyed was improving the economy (about 41%), but readers were nearly evenly split on whether they supported raising taxes on the wealthy: about 42% said yes, 40% said no, and 18% were undecided. “It’s very strange so many people support raising taxes on the wealthy, and I wonder what they mean,” said Gelinas. “Are they for the six-bill plan in Albany or a tiny income tax hike? Or do they just think it’s inevitable?” The second most important issue to those surveyed was reducing

CRAIN’S asked 509 likely primary voters about their preferences for mayor as well as what issues were most important to them, among other questions. Here are their responses.

Combating climate change

1.38%

Something else

3.34%

Do you support the next mayor promoting broader reopening measures even if Covid-19 is still contagious in 2021 and 2022? 48.13%

40.08%

30.45% 21.41%

18.27%

Yes

Undecided

Yes

Undecided

SOURCE: Crain’s research. Note: numbers may not add up to 100 because of rounding

crime (about 19%), which came in with significantly more support than fighting Covid-19 (about 14%). “There is some expectation that the next mayor shouldn’t have to deal with fighting Covid,” said DeSio. “If Covid is still an issue in January 2022, then we have real problems.”

At the other end of the spectrum, less than 1% chose school integration as their most important issue. Another interesting finding was that about 66% supported the legalization of marijuana, while only about 47% supported the expansion of gambling across the state. One thing Crain’s readers seemed

to agree on was de Blasio’s job performance as mayor—70% of those surveyed “strongly disagreed” with the notion that de Blasio has done a good job while in office. “I don’t think that’s surprising,” said Gelinas. “Looking at competence rather than ideology makes a lot more sense.” ■

GOTHAM GIGS

BUCK ENNIS

TILLETT wants the Brooklyn Community Foundation to provide more than funds.

MARCELLA J TILLETT AGE 40 GREW UP Buffalo RESIDES Flatbush, Brooklyn EDUCATION Bachelor of social work, Clark Atlanta University; master of social work, Columbia University INTREPID WANDERINGS At age 15, during her winter break from school, Tillett took a bus trip to visit a cousin in college in Atlanta, then they headed to Berkeley, Calif., together. She called her mom from a pay phone at every stop. AUNTIE EXTRAORDINAIRE Tillett has a close relationship with her two nephews, ages 29 and 9. “They see me as wise and fun,” she said. “We exist in this playful space together.” PROUD HBCU ALUM Tillett cherished her time at Clark Atlanta. “It felt like heaven. I loved learning about the diversity of Black people in such a supportive environment.”

Putting empathy front and center A Brooklyn social worker brings her sense of equity to philanthropy

BY DEBORAH NASON

arcella J Tillett felt a calling to social work as a college student intrigued by the Afrocentric perspective of the classes. The experience provided the inspiration for the rest of her career. “I work from a social justice framework for all people,” she said. “And all my professional roles have allowed me to work toward the betterment of Black people’s lives.” From a young age Tillett felt “connected to the rest of the world.” In 2004 she traveled to Botswana with the Peace Corps after graduate school to work on HIV prevention. She was impressed by how much the nation’s government invested in its people. She spent two years there. After returning to the U.S., she joined the Osborne Association, based in the Bronx, where she continued her work in HIV prevention.

Her focus was on the female partners of incarcerated individuals, and her responsibilities included education around healthy communication and relationships. An avid networker, Tillett connected with a mentor who encouraged her to apply for a job at the local chapter of Planned Parenthood to spread her wings professionally. Indeed, during her nine-year tenure, which began in 2010, she broadened her approach to look at clients’ health holistically—not just addressing one particular condition but all of their chronic conditions. An opening at the Brooklyn Community Foundation provided Tillett the opportunity to work in philanthropy and sit “at the other side of the table” as a funder, not as an agency requesting funds. “It was something very different where I could apply everything I’ve learned and done and help my home borough too,” she said. Now as vice president of pro-

grams and partnerships, Tillett has led her team to introduce several ideas, most notably establishing standing community advisory councils, making them a part of the grant-making process and allowing them equal say in resource allocation. She also implemented a screening tool to ensure that grants are distributed equitably, taking into consideration the racial-ethnic identity of a nonprofit’s leadership, along with its operational budget, its number of donors and the size of its board. Tillett approaches her work with heartfelt empathy for the grant recipients. In addition, she helps the foundation ensure that working in partnership—not just providing funds—stays central to its mission. “As a foundation, we check with the community organizations to see how they’re perceiving us, and we ask them if we are doing anything to make their work harder instead of easier,” she said. ■

“I WORK FROM A SOCIAL JUSTICE FRAMEWORK FOR ALL PEOPLE”

MARCH 15, 2021 | CRAIN’S NEW YORK BUSINESS | 23

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