Crain's New York Business

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SOARING SALARIES Paychecks in the tech sector are eclipsing Wall Street’s PAGE 4

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REAL ESTATE

Property owners ready to fight for 1031 swaps Small business

President Joe Biden has set his target on a lucrative tax break

CITY CONTRACTS LAG FOR MINORITY BUSINESSES

BY AARON ELSTEIN

C

ommercial real estate owners are mobilizing to defend a cherished tax break that the Biden administration has put squarely in its sights.

The benefit, known as a 1031 Exchange, is one of the most lucrative loopholes in the entire tax code. It enables real estate investors to swap one property for another without paying taxes on the transaction. There’s no limit to how many trades can be made and if an investor dies while holding appreciated real estate, the investor's heirs inherit the property on a stepup basis—meaning they pay no taxes on the gain when they sell.

1031 Exchanges were created in the 1920s to help farmers, but they became popular in commercial real estate after Congress “clarified the process” in 1990, the Federation of Exchange Accommodators said.

One of the most famous beneficiaries was Donald Trump, who 16 years ago used a 1031 swap to acquire 30% of a Midtown office tower that is his company’s most valuable real estate holding.

Researchers estimate 1031 swaps account for up to 20% of commercial real estate transactions today.

“It’s how my clients expand their real estate holdings,” said Peter Buell, a partner at accounting firm

Procurement elusive for MWBEs under the de Blasio administration

BY BRIAN PASCUS

I

See CONTRACTS on page 22 GREENE checks regularly for city contracts

See TAXES on page 19

NEWSPAPER

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SMALL-BIZ SPOTLIGHT

INSTANT EXPERT

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LEATHER GOODS FIRM STILL BETTING ON MASKS

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t took Elaine Greene four months INSIDE NY to fill out the paperwork to desigArea’s Largest nate her Crown Heights uniform Minority-Owned store as a minority- and womCompanies List an-owned business for city conPAGE 14 tracting.

Then she had to do the same for state certification, which uses a completely different application and takes even longer for approval.

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ECONOMY

New Yorkers could need some convincing that returning to the city is safe De Blasio has announced that all business restrictions will be lifted July 1

M

ayor Bill de Blasio’s announcement last Thursday that all restrictions on businesses and cultural institutions would be lifted as of July 1 was greeted warmly by most city residents. But is it realistic?

Getting to that moment means state lawmakers will have to let Gov. Andrew Cuomo’s emergency executive orders expire, and businesses, employees, residents and tourists will need to accept the mayor’s assurance that regular activities are once again safe.

The mayor’s decision to return the city to normalcy stems from data showing that the virus is wan-

1,203 confirmed and probable cases of Covid-19 each day over the last week, with at least 103 hospitalizations and 25 daily deaths, according to the city’s tracker. That’s down from a January peak when the seven-day average was around 6,500 cases, 392 hospitalizations and 80 deaths each day.

Alongside the drop, restrictions on businesses have been loosening.

In February indoor dining reopened. In March and April came announcements about pool halls, movie theaters and events. In addition, word came about slowly increasing capacity at restaurants to 50%.

Then last week, the slow rollback accelerated. On Tuesday leaders of the state Senate said they would let an executive order expire that required all bars and restaurants to serve food with drinks. On Wednesday Cuomo set May 17 as the end of the midnight curfew on outdoor dining and at events where attendees were vaccinated or tested negative, and he set May 31 as the end of curfews everywhere else. In addition, he ended

DE BLASIO

NYC MAYOR OFFICE/FLICKR

BY CARA EISENPRESS

“HEALTH IS PARAMOUNT, BUT SOME OF THE ORDERS SEEM ARBITRARY” ing and a bet that 1.4 million additional people will join the 3.6 million who have received at least one dose of a Covid-19 vaccine.

There have been an average of

the rule prohibiting seating at city bars. On Friday he said city restaurants could move to 75% capacity May 7.

School reopening But capacity restrictions, mask wearing, full school reopening and subway hours have yet to be ad-

dressed.

Because the state Legislature repealed Cuomo’s pandemic-era emergency powers in early March, he now has only the power to update directives after he lets lawmakers review them and responds to their comments. Since the repeal, there has been a countdown until

many of the directives expired, although it was unclear for weeks whether the Legislature’s review would rubber-stamp public health– related orders or question them.

“We’re looking for real explanations,” confirmed Sen. Michael See REOPENING on page 18

WEBCAST CALLOUT

HEALTH CARE

Is it safe to relax mask wearing in the crowded city? Experts weigh in

T

he Centers for Disease Control and Prevention last week announced new guidance that relaxed outdoor mask-wearing guidelines for vaccinated Americans. However, New Yorkers with their shots might want to continue to cover their faces in the crowded city.

The new guidelines stipulate that fully vaccinated individuals don’t need to wear a mask when walking or running with company outdoors. The same applies for attending small outdoor gatherings and dining outdoors.

The science has shown that outdoor transmission is exceedingly rare, said Dr. Jennifer Lighter, hospital epidemiologist at NYU Langone and associate professor of pediatrics at NYU Grossman School of Medicine.

“New York’s improving daily rates of Covid-19 and vaccination rates certainly build the confidence that vaccinated New Yorkers too

can relax mask wearing in certain situations,” said Dr. Fred Pelzman, medical director at Weill Cornell Internal Medicine Associates.

But how should these guidelines play out when walking on a busy sidewalk or waiting on a crowded train platform?

JOIN US WEDNESDAY NEW YORK CITY’S RESTAURANT REVIVAL

Waiting for the bus Walking past someone with the virus even on a crowded street is unlikely to pose much of an infection threat, Lighter said. But what builds exposure risk would be situations where people are congregating for prolonged periods of time, such as waiting on a train platform or at a bus stop, Pelzman said.

“These new guidelines are just recommendations, not requirements. If you don't feel safe in certain situations, you can definitely mask up,” said Dr. Waleed Javaid, director of infection prevention and control at Mount Sinai Downtown.

Risk is not just a measure of whether an individual will catch Covid, but also whether one can

ISTOCK

BY SHUAN SIM

pass it to a household member, Pelzman said.

“If I have elderly or young family members that have not been vaccinated, I'm going to perceive various outdoor situations to be riskier, even if I’m vaccinated,” he said.

There have been recorded cases of vaccinated individuals contracting Covid-19, but the science is still out on their ability to spread the virus, Javaid said.

“If you’re in a mixed group and

you don’t know everyone’s vaccination status and if you consider your risk for spreading to be higher, wear a mask,” Pelzman said.

The experts agreed, however, that the CDC's move is wise because it will encourage Americans to get vaccinated.

“I see this loosening restriction as being meant for vaccinated people, and if you want to enjoy those freedoms, get vaccinated,” Javaid said. ■

The city’s restaurants have been devastated by the pandemic— hundreds of businesses have closed, and thousands of employees have lost their jobs. As the industry begins to recover, there are questions about Covid-19’s impact and what the future has in store. Join Crain’s as we examine which establishments have been hit the hardest, how businesses are evolving and what eateries are doing to bring back diners. Additionally, attendees will learn what actionable steps the government, business community and public can take to help local food entities get back on their feet.

VIRTUAL EVENT MAY 5 Time: 4 to 5 p.m.

CrainsNewYork.com/webcasts

Vol. 37, No. 17, May 3, 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.

MAY 3, 2021 | CRAIN’S NEW YORK BUSINESS | 3

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BLOOMBERG

TECHNOLOGY

THE GREAT TECH PAYCHECK

Soaring salaries used to be reserved for Wall Street, but now compensation in the city’s burgeoning technology sector is taking off

BY RYAN DEFFENBAUGH

W

all Street just had a killer year, but you can find a larger paycheck these days in Brooklyn’s technology industry.

Dumbo-based Etsy paid its employees a median total of $190,000 last year, including bonuses and equity, according to a report filed last week with the U.S. Securities and Exchange Commission. That is, quoting the many Larry David–themed T-shirts up for sale on the crafting marketplace, pretty, pretty good.

So good, in fact, that it is about $50,000 per year higher than

“THE AVERAGE CANDIDATE IS GOING TO HAVE MULTIPLE OFFERS” the median at top Wall Street firm Goldman Sachs.

Etsy’s stock price has been on a steady rise since 2017, and its annual employee compensation has climbed too, up about 56% between 2018 and last year.

The company is not alone in its industry for offering gener-

ous pay packages. Facebook’s median compensation package netted employees a median of $262,000, according to the company’s 2020 filing. Twitter’s median pay is $205,000. Locally, Yext and Shutterstock paid medians of $160,000 and $146,000, respectively, last year.

Publicly traded companies have been required since 2018 to report the median earnings of their employees as well as that of their chief executive. The requirement was part of the 2010 Dodd-Frank Act, passed in response to the financial crisis. The totals generally reflect base salaries, bonuses and See PAY on page 18

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IN THE MARKETS

Apartment lender dials down exposure to NY real estate after striking MI merger

MAJOR STEP

loans. That will shrink to 56% after the merger, the bank said. It will also lower its exposure to commercial real estate, which is 16% of the portfolio.

Seeking safer ground The merger comes as small and midsize banks scramble for safer ground in anticipation of a surge in delinquent and defaulted commercial real estate loans.

David Marino, co-founder of commercial real estate brokerage Hughes Marino, told Wedbush analysts that he expects office rents to fall from 30% to 40% by the end of next year and the value of office buildings to tumble even further.

“He likened this coming downturn to the collapse of the commercial real estate market in the 1990s,” Winter said in a client report this month.

Acquiring Flagstar makes New York Community less vulnerable to the twists and turns of the New York economy. Flagstar has more than 150 branches, mostly in Michigan and Indiana, and it is also a nationwide mortgage lender.

In many ways New York Community and Flagstar seem rather differ-

BLOOMBERG

N

But the pandemic has raised ew York Community Bancorp, the city’s larg- questions about long-term deest apartment lender, mand for New York apartments. will be much less ex- Two years ago the state Legislature posed to the New York apartment changed the economics by limiting how much rents could be market after agreeing to raised on vacant regulatacquire Michigan-based ed units. Albany also conFlagstar Bancorp for $2.6 strained how much landbillion. lords could charge tenants “This is a transformato pay for improvements. tional change,” New York Then the pandemic hit Community Chief Execand crushed demand for utive Tom Cangemi said office and retail space. on a conference call last Cangemi made it clear Monday. “This is a major he wanted to quickly step in changing who we AARON ELSTEIN make a deal to reposition are and where we’re the bank after becoming going.”

For many decades New York CEO late last year in an unexpected Community’s sweet spot has been power shift. Wall Street applauded lending to owners of rent-regulated his move, with New York Community’s share price rising 6% on the news.

“THIS IS A IN “This deal was CHANGING WHO WE ARE AND priced right and accomplished a WHERE WE’RE GOING” lot to diversify the bank,” Wedapartments. The loans almost nev- bush Securities analyst Peter Winer go bad because tenants are keen ter said.

Currently 75% of New York Comto hang on to below-market housmunity’s portfolio is apartment ing.

ent culturally. They operate in different parts of the country and have different ways of compensating top executives.

New York Community awards top officers by paying them dividends on shares they don’t own, a practice that most companies have

abandoned after pressure from shareholders. Flagstar doesn’t provide that perk. It isn’t clear which side will prevail. A spokesman didn’t reply to a request for comment.

“We’re going to bring the cultures together,” Cangemi said. ■

SMALL BUSINESS

Restaurateur Meyer to chair Economic Development Corp.

BY CARA EISENPRESS

R

‘Economic regrowth’ Meyer has been involved in the hospitality industry in New York City since he opened Union Square Café in 1985, eventually expanding his business into other city industries, such as catering and burgers with Shake Shack, which he later took public. He invests in companies related to hos-

Redefining what you should expect from your accountant. !"#$$%&'#$(&)* BUCK ENNIS

estaurateur Danny Meyer will chair the New York Economic Development Corp., Mayor Bill de Blasio announced last Tuesday.

Meyer has been vocal about New York City’s recovery from the pandemic and its accompanying economic crisis.

“Building a lasting economic recovery means caring about workers and reaching every corner of every borough. It takes strong leadership to get there—and Danny Meyer has the experience, vision and creativity we need to drive our recovery forward,” de Blasio said.

As a restaurant owner, Meyer said, “it was frustrating not to be able to be the spark” to help the city come back from the crisis since his restaurants remained closed for some of 2020.

Now he will lead the EDC, which works to foster economic growth through its investments.

MEYER, CEO of Union Square Hospitality Group pitality through his Enlightened Hospitality Investments arm.

“I am honored to be given the opportunity to support the economic regrowth of New York City,” Meyer said. “For too long New Yorkers have not been able to gather together to hear the clink-

ing of glasses in restaurants or see the lights on Broadway. We’re ready to safely re-engage the culture, travel and hospitality industries—and the people who make them so special—and get back to the business and heart of what makes our city beloved by all.” ■ MAY 3, 2021 | CRAIN’S NEW YORK BUSINESS | 5

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WHO OWNS THE BLOCK

RENT BATTLE SQUEEZES HARPERCOLLINS IN MIDTOWN

1350 SIXTH AVE.

Blackfield butts heads with publisher over sublet

BY C. J. HUGHES

hattan’s availability rate hit 17%, up from 11.5% a year ago, the brokerage Savills found, and rents are down 9% over the same time period. ■

101 W. 55TH ST. A rare residential offering in Manhattan’s main business district, this 16-story, red-brick, prewar edifice, which began life as a residential hotel, is now a traditional apartment building known as Claridge’s. It contains 160 one- to three-bedrooms, some with terraces along Sixth Avenue. It is owned by the Zucker Organization, which started out as a mortgage brokerage in 1961 but has since developed more than two dozen buildings of many types. Among them is a high-rise rental at 401 E. 34th St., once known as Rivergate but known today as View 34. At Claridge’s, apartments in mid-April started at $2,295 for a one-bedroom, according to figures from StreetEasy.

77 W. 55TH ST. This 20-story, 186-unit property, built in 1962 as a rental, went condo in 1972. It was the first rental-to-condo conversion in New York City, according to news reports from the time. Its sponsors included Peter Malkin, whose family runs the trust that controls the Empire State Building. Developer Harry Helmsley also was involved. In April its least expensive unit was a one-bedroom listed for $835,000, a price that reflected two discounts since September, when the unit came on the market at $865,000, StreetEasy said.

1350 SIXTH AVE. While architect Emery Roth is associated with elegant apartments, his sons may be best known for office buildings, especially along Sixth Avenue, where sleek high-rises such as Nos. 1133, 1155 and 1350 all bear their imprint. No. 1350, which has 35 stories, is owned

by SL Green Realty, which had been leasing three floors to HarperCollins when the publisher relocated downtown in 2014. In a daisy-chain series of moves, HarperCollins began renting its empty floors there to Blackfield Office Suites, which in turn leased them to small businesses eager for a fancy address. Blackfield was to pay HarperCollins $175,000 a month. But when the coronavirus hit and Blackfield’s own tenants struggled to make ends meet, the office-space provider was left in the lurch, said Ed Carroll, its chief executive.

65 W. 54TH ST. This 36-story, 426-room property, developed in 1926 by publishing magnate William Randolph Hearst and designed by Emery Roth, today operates as the Warwick New York Hotel. The Warwick is part of a privately held chain of similarly named hotels with outposts in London, Qatar and Fiji. In April the Warwick offered a room with a king-size bed for two people at $130 a night. The corner property last changed hands in 1980, which was also the founding year for its parent company. An $80 million loan from HSBC Bank in 2013 secured by the building consolidated four previous mortgages. Randolph’s Bar and Lounge, the hotel’s ground-level eatery, which has been popular for power breakfasts, shuttered during the spring of 2020.

BUCK ENNIS, GOOGLE MAPS

A

dd the media giant News Corp. to the list of big-name companies entangled in a Covid-19-related battle over unpaid rent.

One of the media giant’s subsidiaries, book publisher HarperCollins, is butting heads with Blackfield Office 1345 SIXTH AVE. Suites over a sublet at 1350 Sixth Ave. Many of the office towers that rule this part in Midtown. of Midtown are postwar, lanky and set back Blackfield, which leases executive from the sidewalk behind sculpture-decoratsuites to small companies, failed to ed plazas. Examples include this 50-story, pay $2.3 million in rent to Harper2 million-square-foot high-rise, completed Collins last year, according to court in 1969 and designed by the locally ubiqdocuments. uitous Emery Roth and Sons. Its landlord is In December a judge absolved Fisher Brothers, a multigenerational family Blackfield of half the rent due but firm founded in 1915. A below-grade amenfound the firm is responsible for about ity space, part of a $100 million, multiyear $1.1 million. renovation, opened during the winter. Its Blackfield, which its executives say centerpiece is a tall terrarium. In the past saw a third of its business wiped out by few months the Equitable Life insurance firm the pandemic, is willing to pay its share but only if HarperCollins promsigned a deal for 130,000 square feet at the ises it won’t sue to collect the balance. tower. It will move from nearby 1290 Sixth Yet HarperCollins says Blackfield’s Ave. Other tenants include AllianceBernstein, chief executive, Ed Carroll, is crying Accenture and Fortress Investment Group. poor without justification, and the publisher has tried to view Carroll’s bank accounts to see if any funds are hidden there.

A spokeswoman for HarperCollins had no comment. But Carroll says that the publisher, which shares the same corporate par1335 SIXTH AVE. ent as Fox News, is a hypocrite for going after a relatively little This location is home to the city’s largest hotel, the guy.

New York Hilton Midtown, a 47-story, 1,900-room, “Every time you turn on Fox, block-long property. The hotel, developed by Uris you hear about the plight of Buildings, a major builder in the middle of the 20th small businesses. But they’re century, opened in 1963. It is popular with both leiputting their boots to our neck,” sure and business travelers, two kinds of customers Carroll said. “If there was no who have been slow to return to the city. Although pandemic and I wasn’t paying, I the hotel reopened this year, it was dark for much would be the bad guy. But the of 2020, said Park Hotels and Resorts, the publicly state of New York and the federtraded company that has controlled the hotel since al government shut me down.”

2017. Based on fourth-quarter data, the pandemic As is the case with apartwas tough on Park Hotels. Throughout its portfolio, ments and stores, legal clashes room rates plummeted 85% in a year, although 12 of have erupted over whether ofthe 22 hotels that shuttered because of the pandemfice tenants should be on the ic—of its 60 hotels—were operational by January. hook for rent during a public health crisis.

White-shoe law firms such as Simpson, Thacher and Bartlett at 425 Lexington Ave. and Schulte, Roth and Zabel at 919 Third Ave. have sued, claiming their landlords are not giving them relief. Condé Nast is holding 1330 SIXTH AVE. back more than $2 million at 1 World Trade Center, whose owners include This 40-story, 526,000-square-foot office towthe Durst Organization. er, which opened in 1965, has changed hands But courts are often siding with several times in recent years. Macklowe Properproperty owners. Celebrity chef Bobby ties purchased it for $498 million in 2006, but Flay withheld rent and tried to walk when the Great Recession hit, Harry Macklowe away from his company’s lease for a lost it to a lender through foreclosure. RXR Re12th-floor office at 1140 Broadway. But alty snapped it up for $400 million in 2010.

Judge Arlene Bluth ruled against Flay Covid-19 safety measures seem front and cenin December, saying, “The landlord ter; the tower promises touch-free doors and faunever agreed to make paying the rent cets, and barriers between seats in some suites. contingent on the tenant being able to The largest offices available in April, according afford it.” to RXR’s website, were a pair of 16,300-squareThe pro-landlord slant comes as vafoot spaces on the 12th and 14th floors. cancies rise. In the first quarter Man-

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HEALTH CARE

New York-Presbyterian, Empire BCBS settle dispute that thrust union workers into the crossfire

BY MAYA KAUFMAN

E

mpire BlueCross BlueShield has reached a deal with New York-Presbyterian to continue covering its 4 million New York members, including many municipal and union workers, at the health system’s 10 hospitals and expansive physician network. The two are finalizing terms to renew their contract, set to expire May 31, following a months-long and public dispute.

Before Empire said last Friday that the two had come to an agreement, the insurer had already started preparing a state-required 30day notice that New York-Presbyterian facilities and doctors could be out-of-network starting June 1.

Members of Empire’s commercial, Medicaid and Medicare Advantage plans would have been affected, as well as its federal employee program and national accounts. As of 2018 about 300,000 New York-Presbyterian patients used Empire.

In an emailed statement, a spokeswoman for New York-Presbyterian said Empire had been

pressing for “steep payment cuts” even as the system incurred more than $650 million in unreimbursed losses during the Covid-19 pandemic.

She did not provide further details on the proposed cuts, which Empire spokeswoman Alessandra Simkin called “simply not true.”

Empire has spent several months negotiating with New York-Presbyterian, said Simkin, who declined to elaborate on the proposals. The current contract dates back to 2018.

“We understand that our clients are concerned about NYP’s costs and some of their practices, and we are attempting to address those concerns in our negotiations,” Simkin said last week.

Pricey care Contract negotiations are typically private, shielded by confidentiality agreements between health systems and insurers. Some details have spilled into public view thanks to the union health funds that use Empire to build their hospital network.

tals and several times the Medicare rate for services including colonoscopies. In 2019 the fund spent $124 million on services through New York-Presbyterian.

Members also pay higher copays there, after the system previously declined to lower prices for the health fund.

‘Blaming the victim’ Local 32BJ of the Service Employees International Union, whose members include cleaners, doormen and security guards, provides benefits to 135,000 New Yorkers.

Sara Rothstein, director of the union’s self-insured health fund, said about 23,000 use New York-Presbyterian.

The union had allied with more than a dozen others in New York City to demand a “fair contract” between Empire and New York-Presbyterian that lowers prices at “the city’s most expensive hospital system,” read a full-page ad in last Monday’s New York Times.

Rothstein said New York-Presbyterian charges 32BJ’s health fund thousands more than other hospi-

Still, New York-Presbyterian—U.S. News’ top-rated New York hospital—is one that health plans want in their network, Rothstein said. Patients face even larger bills when they seek out-of-network care.

In March 32BJ wrote directly to New York-Presbyterian CEO Dr. Steven Corwin to ask the system to, among other things, lower prices for its union members and make public their negotiated rates.

Senior Vice President Dov Schwartzben responded in an email, obtained by Crain’s: “We do not think it’s appropriate to discuss with you terms and conditions of any agreement NYPHS Hospitals may have with any insurer or third-party administrator to which 32BJ is not a party.”

Some of the city’s largest health care providers have butted heads with insurers in recent years. A similar clash between UnitedHealthcare and Montefiore Health System reached an impasse this year, after Montefiore requested a nearly 30% rate increase over three years for commercial members.

United dropped Montefiore’s hospitals and physicians from its network.

Kenneth Raske, president of the Greater New York Hospital Association, said faulting hospitals for failed negotiations with insurers is “blaming the victim” and called the criticism of hospital prices a straw man argument.

“The reason you’re seeing more stymied activity is the insurers are looking for greater profits on Wall Street,” Raske said.

Opponents argue hospitals are looking to make more money too.

And union members get caught in the middle, they say.

“We have a system where big, moneyed hospitals are able to prioritize them making money over taking care of 32BJ members and New York’s working families,” state Sen. Jessica Ramos of Queens said. ■

When the status quo actually makes us sick Raise Health When where we live determines how long we live Raise Health When thoughts and prayers aren't enough Raise Health It's time to raise our expectations Because when we Raise Health we raise everyone Be a Health Raiser at RaiseHealth.com

RAISE VOICES RAISE HOPE RAISE HEALTH MAY 3, 2021 | CRAIN’S NEW YORK BUSINESS | 7

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

EDITORIAL

publisher/executive editor

The Hero Act is a business killer; Cuomo must veto it

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

Janon Fisher

N

deputy digital editor, audience & analytics

Jennifer Samuels associate editor Lizeth Beltran art director Carolyn McClain photographer Buck Ennis data editor Amanda Glodowski senior reporters Cara Eisenpress,

Aaron Elstein, Eddie Small NEW YORK STATE SENATE/FLICKR

Amazon-killer Sen. Michael Gianaris (D-Queens), would create enforceable workplace health and safety standards for airborne diseases like Covid-19, allow the establishment of workplace oversight committees and allow employees to sue their employers for noncompliance without fear of reprisal. It's a union-backed bill.

The Legislature couldn’t even be bothered with the details of the new regulations.

These new safety protocols, like establishing “proper airflow,” are not specified in the legislation.

That will be left up to unelected industry-specific worker committees and government bureaucrats with no regard to the cost of compliance.

Senate Labor Committee chairwoman Sen. Jessica Ramos (D-Queens) touted the bill THE HERO ACT WOULD CREATE as a corrective action against ENFORCEABLE WORKPLACE unscrupulous HEALTH AND SAFETY STANDARDS business owners. But companies know that collectively passed through Albany in recent worker illness across the country years” by the National Federation costs billions of dollars every year. of Independent Business.

We urge Gov. Andrew Cuomo to Any business creating a workplace that is unsafe, unsanitary and veto the legislation. generally unhealthy will not be The Hero Act, spearheaded by ew York City’s economy will fully open in July, Mayor Bill de Blasio announced last week. A year plus into the pandemic, which cost the city 631,000 jobs, shuttered countless businesses and killed almost 52,000 New Yorkers statewide, the Big Apple will return, just in time for the summer. This is great news.

But before we start celebrating there’s some bad news in Albany that should be addressed. A bill passed by the Legislature and moving to the governor’s desk could bring a rebound to a screeching halt.

The New York Health and Essential Rights Act, or Hero act, has been called “the most anti– small business piece of legislation

GIANARIS

reporters Ryan Deffenbaugh, Maya Kaufman,

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

www.crainsnewyork.com/staff 212.210.0100 685 Third Ave., New York, NY 10017-4024 ADVERTISING

open for long.

Aside from that, don’t we already have a mechanism in place to ensure workplace safety?

New York state’s Department of Labor has a Worker Protection Bureau, the federal government has the Occupational Health and Safety Administration and New York City has the Department of Consumer Affairs and Worker Protection. The senators from Queens seem to be saying that our bureaucracy is failing us, then arguing that the only remedy is more bureaucracy.

The other major flaw with the bill is the cover it gives to disgruntled workers who seek to redress

their grievances in court while still enjoying the paycheck from the employer that they are suing. It’s unfathomable why an employee would even want to work at a place that is so toxic that they would sue their bosses.

The business community with the help of their employees did heroic work keeping the city running in the face of this killer disease.

As the mayor said, the clouds are parting. The Centers for Disease Control is easing restrictions on mask use outdoors.

Now is not the time to shut the city’s businesses down with the Hero Act. ■

www.crainsnewyork.com/advertise account executives Kelly Maier,

Courtney McCombs, Christine Rozmanich, Laura Warren people on the move manager Debora Stein,

dstein@crain.com CUSTOM CONTENT senior manager, custom content

Sophia Juarez, sophia.juarez@crainsnewyork.com EVENTS

www.crainsnewyork.com/events events and marketing manager

Michelle Sustar, mstustar@crain.com manager of conferences & events

Ana Jimenez, ajimenez@crainsnewyork REPRINTS

OP-ED

director, reprints & licensing Lauren Melesio,

Congress should heed lessons learned in fight for New York tipped wage

212.210.0707, lmelesio@crain.com

BY SUSANNAH KOTEEN

T

hree years ago we successfully fought to keep the "tip credit" in New York. Now our fight is in Congress.

I have owned Lido Restaurant in Harlem for 10 years. I am deeply invested in this community. Like most restaurant owners in this country, I run an independently owned small business. The debate over abolishing the tipped minimum wage—the tip credit— threatens the survival of my business, the livelihoods of my team and the hospitality industry overall.

Proponents of making this change argue that we need to eliminate the “subminimum wage” for servers. In truth, there is no subminimum wage: All employees are subject to the same minimum wage, which in New York City is $15 an hour.

What does exist is a tip credit.

This allows business owners with

tipped employees to pay a percentage less than the hourly minimum, only if the employee's hourly wage plus tips equals or exceeds the minimum wage. If anyone is paid less than the minimum wage after tips, it is illegal, and the business owner risks hefty fines, lawsuits and criminal liability.

Take New York City, for example: The tipped wage has gone from $5 an hour to $10 an hour in the past few years. This change has been very difficult for my restaurant and has required a number of changes to pricing and staffing. If the tip credit is lost and tipped workers’ wages are raised to $15 an hour, this will be a combined 200% increase in wages.

Bad service Restaurants have extremely thin profit margins. With this kind of drastic increase—which will be even steeper in markets outside the city—businesses will close, and jobs will be lost.

In recent years, many famous restaurateurs have attempted to offset higher labor costs by substituting higher hourly wages instead of tipping in their restaurants. These include Danny Meyer, Tom Colicchio and David Chang. All have since gone back to the tipped model. Danny Meyer said he lost 40% of his floor staff when he changed from the tipped model in favor of a higher hourly wage.

Tipped workers prefer the status quo, and they have fought to keep it. In both Maine and Washington, D.C., legislation was passed to get rid of the tip credit.

In both places, tipped workers united and overturned this legislation because getting rid of tips negatively affected their income and their ability to support themselves and their families.

Here in New York, thousands of tipped workers successfully rallied against a proposal to eliminate the tip credit.

Covid-19 has caused insurmountable challenges for many of my industry colleagues; some have closed and will never reopen.

If the tip credit is taken away, those operators that survived the pandemic will be forced to vastly change their business model, cut back significantly on hours and jobs, or else risk closing altogether.

The hospitality industry is one of the few careers where you can make a good living without a college education. The same person who may not hold a college degree or whose first language might not be English may not have many pathways to earning considerably more than the minimum wage or potentially multiple times the minimum wage as they grow. The hospitality industry provides that opportunity.

I am asking our representatives to keep that opportunity in place. ■

PRODUCTION production and pre-press director

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CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain chief executive officer K.C. Crain senior executive vice president Chris Crain secretary Lexie Crain Armstrong editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]

Susannah Koteen is the owner of Lido Harlem and Bixi Harlem.

8 | CRAIN’S NEW YORK BUSINESS | MAY 3, 2021

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4/30/21 3:14 PM

OP-ED

Here’s how environmentally savvy building owners can cash in on climate crisis

BY PETER DOTSON-WESTPHALEN

ing leader in energy policy and regulations, and a Feb. 18 order ne unexpected result of the from the Federal Energy Regulatomovement to decarbonize ry Commission further supports our energy systems is that New York’s vision.

One of the most significant outany business is now a potential energy producer. More and more comes of the order is that commercompanies are able to sell energy cial and industrial consumers will from solar panels on their roofs— no longer need to choose between or earn revenue by managing their utility retail or wholesale markets, own demand—as decentralized such as the New York Independent energy resources become more System Operator market, in order to provide demand-response supvaluable.

Large users that are able to adapt port. Participants can operate in their usage or shed valuable ener- both interchangeably. We are takgy when needed are earning cash ing a closer look at what this opthrough utility programs such as portunity for dual participation really means. demand response.

From here on, it will be more Demand-response programs, which respond to program signals, compelling for large commercial are so valuable to local utilities and companies operating in New York the broader region for grid support to participate in demand-response that the federal government re- programs. More specifically, comcently ruled to give them a com- mercial and industrial users with resources—such as loads, enULTIMATELY, IT WILL BE EASIER building ergy storage and TO MONETIZE ENERGY ASSETS other assets—that are capable of providing different WITH LESS RISK types of depetitive edge and broader market mand-response services will benefit from dual participation. Ultiopportunities in New York.

As large energy consumers, our mately, it will be easier to monetize commercial and industrial built energy assets with less risk. For environment will play a critical many of the same reasons, the part in supporting a more reliable change also benefits the grid beand sustainable grid system, and cause participating assets can supNew York is providing an excellent port both the bulk power and disindication of what it can look like tribution system operations.

Enrollment deadlines for utiliwhen put into practice. The state has been a methodical, long-stand- ties’ summer demand-response

ASSOCIATED PRESS

O

programs range between April 1 and May 1, so commercial and industrial building managers need to act now to determine their eligibility. However, NYISO’s Special Case Resources demand-response program enables enrollment beginning each month, with deadlines that fall generally within the first week of the month.

Other initiatives The Feb. 18 FERC order is not only an opportunity to maximize demand-response program revenue; it also aligns with other climate and building initiatives already in place. Local Law 90 in New York City places carbon caps on buildings larger than 25,000 square feet. The caps come with

fines for noncompliance and will start to go into effect in 2024. They become stricter over time, with the goal of reducing building emissions 80% by 2050.

The FERC order also will help commercial and industrial buildings, utilities and other stakeholders meet mandates outlined in New York’s Reforming the Energy Vision (REV) and Climate Act. The REV program launched in 2014 following Hurricane Sandy to provide incentives for renewable energy resources and new clean technologies. The Climate Act is targeting net-zero-emission electricity by 2040, among other major milestones.

Distributed energy resources and demand-response programs,

particularly now that they allow for dual participation, can help New York’s biggest energy users maximize revenue from their existing assets and any distributed energy resources that come online. The change might seem somewhat nuanced, but it is also a signal for how the state will continue to offer inspiration to other energy markets when it comes to addressing the climate crisis. The FERC order will support energy-use targets, supporting the state’s shift to a cleaner and more efficient energy system, as well as a more resilient grid. ■ Peter Dotson-Westphalen is the senior director of market development at CPower.

OP-ED

BY BERNARDO DE ALBERGARIA

consumer behavior in recent years toward mobile wallets indicates accine passports on mo- such passports can be an allbile devices have become around success.

The travel industry offers a moan important topic in New York and around the world. While bile-minded guide for how vaccine New York state and Israel have al- passports can enable in-person exready developed a vaccine pass- periences. Two years ago, 21% of port, the European Union, the Americans had an airline app on United Kingdom and Japan are their phone, and 1.5 billion digital reportedly considering making boarding passes were used. What’s more, around 2 million Americans their own.

New York City, like many other used the Transportation Security locations around the world, expe- Administration PreCheck every day in 2019.

The vaccine THE VACCINE PASSPORT WILL BE passport will SIMILAR TO THE DIGITAL BOARDING be similar to the digital PASS AND TSA PRECHECK boarding pass and TSA Preriences broad-reaching benefits of Check experience, centering on a tourism, and with summer months scannable QR code that verifies coming, the public may be won- the individual has been vaccinated dering how the state’s Excelsior or has recently tested negative for Pass is going to work since the vac- Covid-19. With mobile wallet uscine passport is a brand-new con- age established in the marketcept. If people hope that Excelsior place, significant adoption should will lift the local economy, they’ll follow.

For New Yorkers, it’s worth notbe happy to know that shifting

V

ing that the Excelsior Pass can now be stored in Apple Wallet for iPhone users or Google Wallet for Android devotees. A vaccine passport that’s stored in a mobile wallet is easily accessible and will not require Wi-Fi or a cellular connection to use it.

Mobile wallets are tied to a user’s Apple or Google ID, so they will only be accessible by the owner of the phone with a security code or biometrics login. While vaccination data is medical and private, more and more people entrust their mobile wallets with sensitive information, including credit and debit cards—contactless mobile payments grew 29% in 2020.

Storing vaccine passports in mobile wallets isn’t a big leap when you consider their importance in more quickly returning our lives and the economy to normal.

Getting better Government and health care providers might have been better served by skipping the dedicated app altogether and going straight

NY GOVERNOR’S OFFICE

Why mobile wallets can make vaccine passports a New York success

to mobile wallet for the broadest possible adoption. Instead of asking people to download an app, enter their information and find their pass, they could have just sent a single link via email or SMS immediately on administering the first dose, enabling citizens to add a personalized pass to Apple Wallet or Google Pay with a couple of

taps.

And that pass could be updated automatically by the issuer over time with no manual app update required. That’s something government leaders should keep in mind for future digital needs. ■ Bernardo de Albergaria is chief commercial officer at Airship.

MAY 3, 2021 | CRAIN’S NEW YORK BUSINESS | 9

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4/29/21 3:08 PM

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS

Recognize them in Crain’s

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

CRAINSNEWYORK.COM/PEOPLEMOVES

CN020022.indd 1

12/4/20 1:32 PM

ASKED & ANSWERED

EDUCATION: Bachelor’s in political science, Queens College; bachelor’s in hospitality management, New York City College of Technology MUSICAL MOONLIGHTING For more than 20 years, Stein has played lead guitar and sung backup vocals for his band, Plain Jane, which covers songs by various artists. Stein taught himself to play the guitar as a kid and has performed all over the tristate area.

We had hundreds of employees that were furloughed, and that cut down the labor expense dramatically. A good amount of our cash came from our chairman and his investors.

WHO HE IS CEO, Dream Hotel Group

INTERVIEW BY NATALIE SACHMECHI

E

AGE 64

ven though hotelier Jay Stein of the Dream Hotel Group had to close four of his New York inns during the pandemic, he isn’t worried about the future. In fact, the chief executive, who has been at the helm of the firm since 2015, is guiding the company toward expanding around the world. He plans to open a location in Doha, Qatar, this year after he reopens a couple of hotels locally this month in anticipation of tourists returning.

The Dream Downtown reopened in the summer but closed again by fall. What happened?

The reason we opened that hotel is we had the outdoor pool and outdoor food-and-beverage abilities on the rooftop. We thought we could generate some interest, and we did through August and September. At that point, we saw the customer numbers starting to drop, and the Covid numbers started to go up again. The rooftop just wasn’t as in demand in the cooler months. We’ve always used the rule of thumb: If we’re going to lose more money being open than being closed, we’re going to close.

Now that tourism numbers are rising, what are your plans for your hotels in the city?

We plan to reopen two of our four hotels that are closed: the Dream Midtown on May 14, and the Dream Downtown on May 26. We don’t expect to come in at 90% occupancy, which New York historically ran. We’re anticipating 25% occupancy. There’s going to be different

BORN Queens RESIDES Livingston, N.J.

HOMEBODY HIGHLIGHT A bright spot of the quarantine for Stein has been getting a chance to spend some time at home. As a hotelier, he travels a lot for work. Not having to go through the Lincoln Tunnel for 300 days has been a treat, but he misses the city immensely.

staffing that we need initially, and that will ramp up as demand ramps up. So where you may have had three front-desk clerks, now you’re only going to have one. We need to advise the union on what we are planning and who’s getting called back.

What separates hotels that survived from the ones that closed?

The hotels that closed permanently

How has your firm stayed afloat?

What do you think would be the most helpful to the hotel industry now?

If the city forgave real estate taxes, we would have more cash. Also in New York City, it’s not only the tax. There’s the 18% penalty if you miss the real estate tax bill. It was very difficult for the government to say, “The hotel industry is getting killed, and we should save it,” like you could do with banks or the automobile industry. The government is unable to reach out to 3,000 different hotel owners and save the industry.

Will you acquire any distressed hotels?

Some people have come to us, and we would certainly be open to the right opportunity. The question is, do they stay hotels? Will they morph into residential? I’m so curious. ■

CRAIN WEBCAST

BUCK ENNIS

JAY STEIN Dream Hotel Group

were already on a little bit of thin ice even prior to Covid. The New York marketplace for hotels has not been super strong. Real estate taxes, employee salaries, [and] all those other expenses have gone up over 10 years, leading to a lot of the crunch. The city added so many rooms from 2007 to 2018, and all that demand got absorbed, but it kept the rates from really escalating, which held back a lot of the profits. To have Covid come in during this time really just put the dagger in them.

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MAY 3, 2021 | CRAIN’S NEW YORK BUSINESS | 11

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4/29/21 3:21 PM

INSTANT EXPERT

Understanding the city’s public campaign finance system THE ISSUE

1

New York City’s Public Finance System allows for small donations to be turned into matching sums given out by the Campaign Finance Board of New York. Any candidate for muncipal office is eligible, but this article primarily applies to mayoral candidates.

Candidates first have to qualify for the voluntary program by raising $250,000 in individual checks of $250 or less from 1,000 individual donors. Once a candidate reaches that number, the Campaign Finance Board of New York gives—or matches—that money at a specific ratio based on the number of contributions below $250. This year campaigns receive $8 for every $1 matched under that public financing ratio. The individual contribution limit is $2,000.

The system caps campaigns from spending more than $7.3 million. Those that stay within the spending framework are rewarded with public money. The theory behind matching funds is that it keeps those who participate on equal footing and ensures candidates are tethered to the public interest.

CAMPAIGN FINANCE BOARD OF NY

BY BRIAN PASCUS

THE PLAYERS

2

Through New York City’s Public Finance Fund, which is managed by the New York City Campaign Finance Board and is funded by taxpayers, matching public funds are paid out to campaigns five times before the primary.

Mayoral candidates Andrew Yang, Eric Adams and Scott Stringer are among the candidates participating.

The format is supposed to make sure candidates participating in the public system aren’t at a disadvantage when they run against someone who is not in the system. This is why the matching funds multiplier is so important. For instance, mayoral candidate Maya Wiley raised $715,000 in the most recent filing period, with $280,000 worth of matching funds—but at an 8-1 ratio that money turns into $2.2 million, bringing her total raised in the most recent cycle to nearly $3 million.

Former HUD secretary Shaun Donovan received his matching funds despite $2 million donated by his father for a PAC supporting his campaign.

ADAMS

STRINGER

WILEY

WHAT’S NEXT

IT KEEPS PARTICIPANTS ON EQUAL FOOTING AND ENSURES CANDIDATES ARE TETHERED TO THE PUBLIC INTEREST

YEAH, BUT . . .

3

Not everyone participates in the public financing system.

Ray McGuire, with his deep connections to Wall Street and finance, changed the dynamic by fundraising outside the public system and raising $7.3 million. While his individual donors are capped at $5,100, McGuire is not constrained by the same spending caps as his opponents. He can receive money from corporations, partnerships and LLCs. McGuire’s campaign said he did not feel it was appropriate to accept taxpayer money.

There’s a twist to McGuire’s haul. Because he raised so much money, the spending threshold set in the public financing system jumps by 50% to allow all candidates under that umbrella to keep pace with his fundraising. The public finance spending cap is now $10.9 million.

SOME BACKGROUND

4

Since 1988, when the Campaign Finance Act emerged, only one nonparticipant in the public finance system was elected to office: Michael Bloomberg, a multibillionaire.

BLOOMBERG The system of matching funds was set up under the Koch administration to give candidates an incentive to make small donations a priority over large contributions from Wall Street and other special interests. The system fosters public discourse by requiring candidates who participate to appear in public debates. This has been the law since 1997.

The matching funds rate has changed over time. It has gone from a $1-$1 match up to $1,000 to the present $8-$1 ratio used in this election cycle. No mayoral candidate can receive more than $6.4 million in a single matching public fund payment. The matching rate has increased over time to allow publicly funded candidates to compete with those who rely on corporate dollars.

BUCK ENNIS

5

As of April, the city had disbursed more than $22 million to six Democratic Party candidates as part of its matching funds program. The public funds will be put to the test when the Democratic primary concludes on June 22 and voters participate in ranked choice voting for the first time, which has further complicated the public financing picture.

Will the candidates who raise the most in public funds win? Crain’s most recent data shows Adams and Stringer have raised at least $5.2 million in public money thus far. Andrew Yang has raised $3.7 million. Wiley, Donovan and Kathryn Garcia are each below $2.8 million raised in public funds.

Regardless of who wins, the matching funds program is viewed as a system that engages the public and encourages voting. 2013 election data from the Center for Urban Research at the City University of New York Graduate Center found city voters who contributed political campaign donations during that election cycle were three times as likely to vote in that race as those who did not.

The city’s complex election spending laws can be seen as a reaction to the 1976 U.S. Supreme Court decision in Buckley v. Valeo, which affirmed that limits on election campaign spending are unconstitutional and that money is “free speech.”

12 | CRAIN’S NEW YORK BUSINESS | MAY 3, 2021

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SPONSORED CONTENT

Covid-19 testing remains critical as vaccinations roll out Polymerase chain reaction tests are used to detect the presence of a virus, and Long Island-based Acupath Laboratories pivoted early in the pandemic from their traditional business in cancer diagnostics to offer Covid-19 PCR testing. Since then, the company has expanded its offerings while guaranteeing high-quality, affordable tests and a fast turnaround.

Even as more New Yorkers are getting vaccinated, experts say Covid-19 testing will be critical to opening businesses, schools and cultural institutions for months to come. For starters, overall vaccination rates remain low. In addition, government officials continue to raise concern about variants.

To learn more about the latest cutting-edge testing technology, Crain’s Content Studio turned to Jeff Boschwitz, Ph.D., the general manager of Acupath’s coronavirus-testing business.

standard for Covid-19 detection and is generally considered to be far more sensitive than rapid antigen testing for detecting Covid-19. While RT-PCR is disadvantaged by the lag time it takes to receive results, Acupath negates that issue by focusing its business in the New York area and neighboring states, including New Jersey, Connecticut and Pennsylvania.

This allows Acupath to courier samples to the lab rapidly after collection and deliver test results within 24 hours of sample arrival.

JEFF BOSCHWITZ, PH.D.

CRAIN’S: Why is Acupath doubling down on testing, even as more people are becoming vaccinated against Covid-19?

CRAIN’S: What is the difference between Acupath and other testing companies?

BOSCHWITZ: While the Covid-19 vaccination is available, as of April only 20% of Americans are fully vaccinated, according to Centers for Disease Control and Prevention, and it will take months to vaccinate everyone.

In addition, Gov. Andrew Cuomo and the CDC have made it clear that they are concerned about the spread of variants. Given the enormous pressure to open up the economy and return to

General manager of Acupath’s coronavirus-testing business.

JEFF BOSCHWITZ, PH.D.: Unlike the many pop-up labs doing Covid testing, Acupath Laboratories has delivered highquality, in-network lab services to the tristate area for over 20 years. Our team understands the regulatory guidelines and operational challenges of running a high throughput, rapid-turnaround laboratory. For our Covid-19 testing, Acupath guarantees 24-hour results. Many testing services charge $120 or more for the same service; Acupath offers it to organizations for $55 or less. For owners or human resource managers who desire an even faster turnaround, we offer guaranteed nextmorning results for as little as $20 extra per sample.

CRAIN’S: Please describe Acupath’s Covid-19 testing technology.

BOSCHWITZ: Acupath uses real-time polymerase chain reaction to detect Covid-19, and it is one of only a handful of labs offering employers the choice of traditional nasopharyngeal (nasal) swabs or saliva testing methods. RT-PCR is the gold

P013_CN_20210503.indd 13

BOSCHWITZ: Acupath’s traditional business is in cancer diagnostics, but just two months into the pandemic, we launched our first Food and Drug Administration Emergency Use Authorization authorized Covid-19 PCR assay. This move provided vital support to vulnerable populations in local nursing homes and assisted living facilities, as well as surgical clients who required Covid-19 test results to perform cancer-screening procedures critical to curing that deadly disease. Acupath subsequently recognized that many organizations had a need for accurate Covid testing but were unable to find a service with the speed, cost, and experience necessary to implement it for their staff and students. As a result, Acupath expanded its operation to service organizations and now offers the fastest, lowest-cost PCR testing in the tristate area.

Acupath’s commitment to guarantee results in 24 hours or less—or it’s free—is a game changer for organizations whose path to reopening depends on fast results without compromising quality.

CRAIN’S: How will Acupath make it easy for companies to implement testing regimes?

BOSCHWITZ: Sample collection logistics challenges can seem insurmountable. To help make this necessary task as easy as possible for businesses, Acupath developed a simple electronic ordering process called Aculink.

We’re already using Aculink

with employers, including movie studios that face production shutdowns if the testing process does not run smoothly. And to make it even easier, Acupath launched a saliva sample collection option. With saliva testing, the collection process is less costly and faster, meaning there is less disruption to the workday. Finally, with its easyto-use, customizable electronic dashboards, Acupath makes Covid testing management easy for school administrators, business owners, executives, and human resources managers asked to wear the unfamiliar and daunting hat of Covid-testing coordinators.

CRAIN’S: Where will Acupath focus its outreach?

BOSCHWITZ: Acupath will continue servicing the television and film industry. We

“Acupath’s commitment to guarantee results in 24 hours or less—or it’s free—is a game changer for organizations.” work, school, and normal life, Covid-19 testing is going to remain necessary for several more months to protect the unvaccinated and minimize the spread of variants. As a result, it’s critical that organizations have easy access to accurate testing and the ability to receive results quickly, particularly with an easyto-collect sample type such as saliva.

CRAIN’S: What has Acupath been focused on previously, and why did the company pivot to Covid-19 testing?

will support the testing needs of theaters and collaborate with organizations and schools in the tristate area that have been unable to safely bring staff and students back to the office or campus because of a lack of low-cost, fast turnaround, accurate Covidtesting options. We’re also turning our attention to day camps, where there is higher risk of Covid spread. Acupath eliminates critical barriers to large group, repeat testing with its low cost and easyto-use saliva sample option.

4/27/21 9:28 AM

THE LIST NY AREA’S LARGEST MINORITY-OWNED COMPANIES Ranked by 2020 revenue

OF M/WBEs that were in business in 2020 had been operating for more than 10 years.

As of 2020, the largest share of minority-owned businesses was in Manhattan, followed closely by Brooklyn. Staten Island had the least diverse business ownership.

The Bronx 15%

BUSINESS OWNERSHIP GAP

TOP-FUNDED CITIES

While Black individuals account for nearly a quarter of New Yorkers, they own less than 5% of NYC businesses, according to census data released in 2020.

As of the end of 2020, New York City was home to 71 Black- and Latino-funded startups that each raised more than $1M (a 37% increase from 2019).

SOURCE: NYC

32%

Comptroller's office

Number of Black/Latino founders who have raised more than $1M in VC funding

Share of Black New Yorkers 24%

Ma nha tta n

50%

BOROUGH BREAKDOWN

SAN FRANCISCO 72

Queens 21% Share of Black business owners

Brooklyn 29%

NEW YORK CITY 71 3.5%

LOS ANGELES 30

Staten Isand 3%

BOSTON 14 ATLANTA 14

SOURCE: NYC Comptroller's office

SOURCE: U.S. Census, NYC Small Business Services

SOURCE: Harlem Capital

New be a pos Cra

SHOULD YOUR COMPANY BE ON THE LIST? EMAIL RESEARCHER@CRAINSNEWYORK.COM

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2020 REVENUE (MILLIONS)/ % CHANGE VS. 2019

2021 EMPLOYEES (FULL TIME) NY AREA/ TOTAL

MINORITY OWNERSHIP GROUPS (PRIMARY)

COMPANY

PHONE/WEBSITE

TOP EXECUTIVE(S)

Sigma Plastics Group Page and Schuyler avenues Lyndhurst, New Jersey 07071

201-933-6000 sigmaplasticsgroup.com

Mark S. Teo President, chief executive

$2,475.0 -4.8%

Goya Foods Inc. 350 County Road Jersey City, New Jersey 07307

201-348-4900 goya.com

Robert Unanue President, chief executive

$1,500.0 1 0.0%

Better.com 3 World Trade Center New York, New York 10007

415-523-8837 better.com

Vishal Garg Founder, chief executive

$800.0 2 +613.9%

n/d Asian 4,500 3

Synechron Inc. 11 Times Square New York, New York 10036

212-619-5200 synechron.com

Faisal Husain Cofounder, chief executive

$550.0 +13.4%

n/d Asian 10,000 4

Pride Global 420 Lexington Ave. New York, New York 10170

212-235-5300 prideglobal.com

Leo J. Russell Founder, chief executive

$392.0 -3.7%

Deep Foods Inc. 1090 Springfield Road Union, New Jersey 07083

908-810-7500 deepfoods.com

Deepak A. Amin President, chief executive

$317.5 5 0.0%

n/d Asian 4,600 5

Manufacturer of Indian foods and restaurant operator

Mindlance 1095 Morris Ave. Union, New Jersey 07083

877-965-2623 mindlance.com

Vikram Kalra Cofounder, managing director

$225.0 +12.0%

350 Asian 3,500

Staffing and consulting

Bartlett Dairy Inc. 90-04 161st St. Jamaica, New York 11432

718-658-2299 bartlettny.com

Thomas A. Malave President

$144.6 -31.9%

405 Hispanic/Latino 419

Dairy and food service

Crystal Window & Door Systems Ltd. 31-10 Whitestone Expressway Flushing, New York 11354

718-961-7300 crystalwindows.com

Steve Chen President Thomas Chen Chairman

$119.1 -4.1%

361 Asian 730

Manufacturer of windows, doors and fenestration systems

Direct Agents Inc. 740 Broadway New York, New York 10003

212-925-6558 directagents.com

Dinesh Boaz Josh Boaz Cofounders, managing directors

$98.5 +22.9%

57 Asian 70

ACS System Associates 101 New South Road Hicksville, New York 11801

516-681-1350 acssystem.com

Ahmad Reyaz President

$90.0 -2.2%

106 Asian 165

Heating, ventilation, air conditioning and general contracting

Ashnu International Inc. 58-09 28th Ave. Woodside, New York 11377

718-267-7590 ashnuinternational.com

Nayan Parikh President

$83.8

275 Asian 22

General construction

Samuel A. Ramirez & Co. Inc. 61 Broadway New York, New York 10006

212-248-0500 ramirezco.com

Sam A. Ramirez President, chief executive

$78.0 +18.7%

120 Hispanic/Latino 150

Investment banking and advisory, institutional sales and trading and asset management

Cooperative Home Care Associates Inc.

718-993-7104 chcany.org

Adria Powell President, chief executive

$61.2

2,356 Hispanic/Latino; 2,356 Black/African American

Paraprofessional home care

516-876-6900 cardozaplumbing.com

Raymond Cardoza President Marie Cardoza Vice president

$57.0 +23.9%

170 Hispanic/Latino 170

400 E. Fordham Road 14 | CRAIN’S NEW YORK BUSINESS | MAY 3, 2021 New York, New York 10458 Cardoza Plumbing Corp.

514 Grand Blvd.

Westbury, New York 11590

P014_P015_CN_20210503.indd 14

500 Asian 4,350 n/d Hispanic/Latino n/d

110 Hispanic/Latino 232

9 1 1 1 1 1 21 31 41 51 61 7 8 9 1 1 1 1 1 1 1 1 1 1

TYPE OF BUSINESS Flexible packaging

Food manufacturing, packaging and distribution Digital mortgage platform

Technology consultancy for the financial services industry Labor vendor management, payroll services and staffing

Digital marketing

New be a pos Cra

Plumbing 4/29/21 4:23 PM

ore

have ding

72

1

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ds

Crystal Window & Door Systems Ltd. 31-10 Whitestone Expressway Flushing, New York 11354

718-961-7300 crystalwindows.com

Steve Chen President Thomas Chen Chairman

$119.1 -4.1%

361 Asian 730

Direct Agents Inc. 740 Broadway New York, New York 10003

212-925-6558 directagents.com

Dinesh Boaz Josh Boaz Cofounders, managing directors

$98.5 +22.9%

57 Asian 70

ACS System Associates 101 New South Road Hicksville, New York 11801

516-681-1350 acssystem.com

Ahmad Reyaz President

$90.0 -2.2%

106 Asian 165

Heating, ventilation, air conditioning and general contracting

Ashnu International Inc. 58-09 28th Ave. Woodside, New York 11377

718-267-7590 ashnuinternational.com

Nayan Parikh President

$83.8

275 Asian 22

General construction

Samuel A. Ramirez & Co. Inc. 61 Broadway New York, New York 10006 COMPANY

212-248-0500 ramirezco.com

Sam A. Ramirez President, chief executive

PHONE/WEBSITE

TOP EXECUTIVE(S)

Sigma Plastics Group Cooperative Home Care Associates Inc. Page Schuyler avenues 400 E.and Fordham Road Lyndhurst, NewYork Jersey 07071 New York, New 10458

201-933-6000 718-993-7104 sigmaplasticsgroup.com chcany.org

Mark Teo Adria S. Powell President, chief executive

$2,475.0 $61.2 -4.8%

Goya Foods Inc. Corp.

Cardoza Plumbing 350 Road 514 County Grand Blvd.

Jersey City,New NewYork Jersey 07307 Westbury, 11590

201-348-4900 516-876-6900 goya.com cardozaplumbing.com

Robert Unanue Raymond Cardoza President, President chief executive Marie Cardoza Vice president Vishal Garg Founder, chief executive Rengachari Srinivasaraghavan President

$1,500.0 $57.0 1 0.0% +23.9%

9 10 11 12 13 114 215 316 417 518 619 7 8 9 10FREE SPONSORED WEBCAST 19 Testing Strategies 11Covid≠ for New York Businesses 12Tuesday, May 18 | 4≠ 4:45 p.m.

13 14 15 16 17 18 19

$78.0 2020 REVENUE +18.7% (MILLIONS)/ % CHANGE VS. 2019

Manufacturer of windows, doors and fenestration systems Digital marketing

120 Hispanic/Latino 2021 EMPLOYEES (FULL TIME) 150 MINORITY NY AREA/ OWNERSHIP GROUPS TOTAL (PRIMARY)

Investment banking and advisory, institutional sales and trading and asset TYPE OF BUSINESS management

500 Hispanic/Latino; Asian 2,356 4,350 2,356 Black/African American

Flexible packaginghome care Paraprofessional

n/d Hispanic/Latino 170 n/d 170

Food manufacturing, Plumbing packaging and distribution

n/d Asian Better.com 415-523-8837 $800.0 2 Digital mortgage platform +613.9% 4,500 3 World Trade Center better.com Savin Engineers 914-769-3200 $51.1 185 3 Asian Consulting, engineering and New York, New 3 Campus DriveYork 10007 savinengineers.com +24.7% 185 construction management Pleasantville, New York 10570 Synechron Inc. 212-619-5200 Faisal Husain $550.0 n/d Asian Technology consultancy for 11 Square synechron.com Cofounder, +13.4% 10,000 the financial technology services industry EIATimes Electric Inc. 646-827-1233 Yolanda Delchief Pradoexecutive $36.2 153 4 Native Hawaiian/ Engineering, and New York, New York 10036 31-00 47th Ave. eia.us President +59.3% 158 Pacific Islander construction Long Island City, New York 11101 Pride Global 212-235-5300 Leo J. Russell $392.0 110 Hispanic/Latino Labor vendor management, 420 Lexington prideglobal.com Founder, chief executive -3.7% 232 payroll services and staffing LargaVista Cos.Ave. 646-612-7350 Marcello Porcelli $33.0 35 Hispanic/Latino Real estate, gasoline stations New York, NewAve. York 10170 275 Madison largavista.com President -5.7% 35 and convenience stores New York, New York 10016 Deep Foods Inc. 908-810-7500 Deepak A. Amin $317.5 5 Manufacturer of Indian foods n/d Asian 1090 Springfield Road deepfoods.com President, chief executive and restaurant 0.0% 4,600 Imperial Iron Works Inc. 718-617-1925 Jaime Osorio $30.0 35 5 Hispanic/Latino Structural steel operator contractor Union, New17N Jersey 07083 479 Route iiwnyc.com President +54.1% 45 Mahwah, New Jersey 07430 Mindlance 877-965-2623 Vikram Kalra $225.0 350 Asian Staffing and consulting 1095 Morris Ave. mindlance.com Cofounder, managing director +12.0% 3,500 Union, New Jersey 07083 New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. To qualify, a company must be headquartered in the New York area and estimated to

be at least 50% owned by a racial minority group. Crain's New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but given the confidential nature of privately held companies, it is not Dairy Inc. every qualified company. 1--718-658-2299 A. Malave 405 exceeded Hispanic/Latino service possible to Bartlett identify and include Projection submitted to Crain's Thomas in September 2020. 2--Projection from September$144.6 2020 story by The Information. 3--Employment 7,000 as of April Dairy 26. 4--and Fromfood company website. 5-Crain's estimate. and Bill Lucey (researcher@crainsnewyork.com) 90-04Research 161st St.by Chuck Soder, Amanda Glodowski bartlettny.com President -31.9% 419

Jamaica, New York 11432

Crystal Window & Door Systems Ltd. 31-10 Whitestone Expressway Flushing, New York 11354

WANT MORE OF CRAIN’S EXCLUSIVE DATA? VISIT CRAINSNEWYORK.COM/LISTS. 718-961-7300 Steve Chen $119.1 361 Asian crystalwindows.com

President Thomas Chen Chairman

Direct Agents Inc. 740 Broadway New York, New York 10003

212-925-6558 directagents.com

Dinesh Boaz Josh Boaz Cofounders, managing directors

ACS System Associates 101 New South Road Hicksville, New York 11801

516-681-1350 acssystem.com

Ahmad Reyaz President

Ashnu International Inc. 58-09 28th Ave. Woodside, New York 11377

718-267-7590 ashnuinternational.com

Nayan Parikh President

Samuel A. Ramirez & Co. Inc. 61 Broadway New York, New York 10006

212-248-0500 ramirezco.com

Sam A. Ramirez President, chief executive

Cooperative Home Care Associates Inc. 400 E. Fordham Road New York, New York 10458

718-993-7104 chcany.org

Adria Powell President, chief executive

Cardoza Plumbing Corp.

514 Grand Blvd.

Westbury, New York 11590

516-876-6900 cardozaplumbing.com

Savin Engineers 3 Campus Drive Pleasantville, New York 10570

-4.1%

$98.5 +22.9%

Manufacturer of windows, doors and fenestration systems

730

57 Asian 70

Digital marketing

BioReference Laboratories Inc., with the New $90.0 106 Asian Heating, ventilation, York Empire State Development Corporation, will air -2.2% 165 conditioning and general contracting describe current Covid≠ 19 testing initiatives in $83.8 275 Asian General construction place for New Yorkers to safely return to arenas, 22 restaurants, retail and other venues. In addition, $78.0 be a description 120ofHispanic/Latino Investment banking and there will strategies that +18.7% 150 advisory, institutional sales and trading and asset businesses can employ to safely bring their management

$61.2

2,356 Hispanic/Latino; 2,356 Black/African American

Raymond Cardoza President Marie Cardoza Vice president

$57.0 +23.9%

170 Hispanic/Latino 170

Plumbing

914-769-3200 savinengineers.com

Rengachari Srinivasaraghavan President

$51.1 +24.7%

185 Asian 185

Consulting, engineering and construction management

EIA Electric Inc. 31-00 47th Ave. Long Island City, New York 11101

646-827-1233 eia.us

Yolanda Del Prado President

$36.2 +59.3%

LargaVista Cos. 275 Madison Ave. New York, New York 10016

646-612-7350 largavista.com

Marcello Porcelli President

Imperial Iron Works Inc. 479 Route 17N Mahwah, New Jersey 07430

718-617-1925 iiwnyc.com

Jaime Osorio President

Paraprofessional home care

MODERATOR:

$33.0

-5.7% at Register $30.0 +54.1%

P. Gabriel 153 Native Hawaiian/ FredEngineering, technology and Publisher and 158 Pacific Islander construction Executive Editor Crainí s New York Business 35 Hispanic/Latino Real estate, gasoline stations 35 and convenience stores CrainsNewYork.com/BioReference 35 Hispanic/Latino 45

Structural steel contractor

New York area includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. To qualify, a company must be headquartered in the New York area and estimated to be at least 50% owned by a racial minority group. Crain's New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but given the confidential nature of privately held companies, it is not possible to identify and include every qualified company. 1--Projection submitted to Crain's in September 2020. 2--Projection from September 2020 story by The Information. 3--Employment exceeded 7,000 as of April 26. 4--From company website. 5-Crain's estimate. Research by Chuck Soder, Amanda Glodowski and Bill Lucey (researcher@crainsnewyork.com)

e MAY 3, 2021 | CRAIN’S NEW YORK BUSINESS | 15

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VIRTUAL EVENT ï EARLY BIRD TICKETS ON SALE NOW

21

This summit will bring together the leading women in New York Cityí s public and private sectors to discuss the unique challenges and opportunities facing them today.

CRAIN’S NEW YORK BUSINESS MAY 20 3 ñ 5 P.M.

Attendees will leave the summit with valuable insights they can apply to their careers. From addressing workplace burnout to finding your voice, this event has something to offer for seasoned professionals and rising stars alike.

OPENING KEYNOTE

21 an Impostor?: How to Know Your Worth and Are You Negotiate for Yourself

Carlina Rivera

Carlina Rivera, Council Member, New York City District 2 When it comes to impostor syndromeó a feeling of inadequacy despite obvious successó women are often hit harder than men. This session will examine why women feel this way and provide tactics on how to break the cycle.

PANEL DISCUSSION

CRAIN’S NEW YORK BUSINESS Kelly Grier

Suri Kasirer

Taking Yourself to the Next Level: Why Self≠c are is Non≠n egotiable for Career Development Panelists: Kelly Grier, US Chair and Managing Partner and Americas Managing Partner, EY Suri Kasirer, President, Kasirer Melva M. Miller, Chief Executive Officer, Association for a Better New York Moderator: Julie Samuels, Executive Director, Tech:NYC

Melva M. Miller

Ití s no secret that, between their careers and personal lives, women are often stretched too thin. This can result in mental and physical fatigue that can impede success. This session of the Powerful Women Summit will focus on why, despite the stigmas, self≠ care is actually a selfless act.

Julie Samuels

CLOSING KEYNOTE Excuse Me, Ií m Speaking: How to Stand Your Ground in a Male≠d ominated World

Liz Rodbell

Liz Rodbell, Group President, Steve Madden Every woman has dealt with the jarring situation of having an idea ìh epeatedî to her. This session will examine tactics for focusing on what you can control and provide tips for how to stop apologizing in communications and let the men know you are speaking.

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REAL ESTATE

Growing veterinary startups offer a bright spot in the city’s retail leasing landscape

BY RYAN DEFFENBAUGH

“Even the term ‘pet parent’ is something that has really taken off just in the last 10 years,” Sun said.

“There are just these great tailwinds in having both the pet population and the amount that people are willing to spend on their pets climbing and climbing.”

The venture capital interest in the vet industry comes as most storefront businesses have pulled back, with ground-floor retail availabilities reaching a record to start the year and asking rents down about 13% year over year in Manhattan, to $618 per square foot, according to CBRE data.

T

Having a moment

SMALL DOOR VETERINARY

he pet boom has unleashed a vet boom.

City veterinary startups backed by venture capital are increasingly sniffing out new storefronts during a time retail openings sit at record levels.

The latest is Small Door Veterinary, a membership-based care provider for cats and dogs. The Manhattan-based startup has raised $20 million in a funding round and plans to open 25 locations by 2025 in New York and other dense U.S. cities. The firm will open a clinic on the Upper East Side in the summer.

The rise in pet adoptions during the pandemic has received plenty of media attention in the past year.

Indeed, U.S. families added 10 million dogs and 2 million cats, to reach populations of 96 million and 32 million, respectively, according to a March report by research firm Packaged Facts. Spending on pets, including health care and food, climbed 9% in 2020 to reach a record $107 billion, the report said.

“We certainly think we benefited from a pet boom, but already there were a lot of pet parents out there, and we are providing a service we think is missing,” said Josh Guttman, CEO and co-founder of Small Door. “We love all our new pet owners, but there was already no shortage of pets to serve.”

Small Door opened its first location in the West Village in January 2020 and in July will launch a 2,600-square-foot clinic at 1231 Third Ave. near East 71st Street on

Small Door is not the only veterinary upstart snatching up city storefronts. Bond Vet, a walk-in clinic for pets, has signed leases to open four locations—in Hell’s Kitchen, the East Village, Kips Bay and Williamsburg—in the next few weeks, as Crain’s has reported.

Bond Vet raised $17 million from investors in November and pledged to open 10 locations within a year—a pledge the firm is halfway to completing.

The vet industry’s growth “is definitely in a bright spot,” said Jenna Heidenberg, a broker with SCG Retail. “And not just limited to veterinary uses—any use that pertains to people’s pets is having a moment for sure.” That includes doggy day care, specialty foods and grooming centers.

“It’s ripe ground,” Heidenberg said. “You are investing in something people love. I have a dog and a cat and would do anything for them.” ■

SMALL DOOR VETERINARY

the Upper East Side.

Guttman, formerly an investor with SoftBank and an executive at the tech firm Outbrain, said he decided to launch the firm in 2017 after a frustrating experience seeking care for his dog.

“This industry has not kept up with the modernization of other consumer categories,” he said.

Price of pet parenthood Small Door offers a membership model that includes access to 24/7

virtual care and online appointment scheduling. An $89-permonth plan for dog owners covers the cost of yearly checkups and regular vaccinations, among other services.

The company’s expansion will reach at least five New York City locations by the end of the year, with plans to expand to other dense urban U.S. markets. The typical Small Door location will be between 2,000 and 3,000 square feet, Guttman said.

Small Door’s lead investor on the $20 million deal is Los Angeles-based Toba Capital. Also participating were Lerer Hippeau and Primary Venture Partners, two of New York’s top local investment firms.

Ben Sun, general partner at Primary and a Small Door board member, said the number of households with pets has grown steadily in the past decade among both recent college graduates and emptynesting baby boomers.

The Plaza joins hotels reopening this spring

F

ew places are as glamorous and quintessential to New York City as the 113-year-old Plaza hotel.

The landmarked property, known for its luxurious guestrooms, was forced to close during the pandemic. But unlike a handful of other hotels, The Plaza has made it to the other side and will reopen as early as May 20.

“For the past year you’ve been asked to stay home. The Plaza is now extending its formal invitation to return to New York,” the hotel announced on its website.

The hotel industry lost more than 70% of its workers in the last year, according to Department of Labor statistics.

It’s unclear how many of The Plaza’s workers will be called back.

Representatives for the hotel did not return requests for comment.

The Plaza had recently changed hands before the pandemic decimated tourism in the city.

Katara Hospitality, a hotel owner and developer owned by the Qatari

sovereign wealth fund, acquired the property for $600 million in July 2018 after buying out the previous owners, Sahara India Pariwar, Sant Singh Chatwal, Prince Alwaleed Bin Talal’s Kingdom Holdings and Ashkenazy Acquisition.

It’s currently operated by Fairmont, an AccorHotels brand, and had been before its sale to Katara.

“THE PLAZA IS NOW EXTENDING ITS FORMAL INVITATION TO RETURN”

Recent reopenings

Still, the situation is looking up for tourism in the city. Occupancy rates at the city’s hotels reached as high as 65% by April 10, according to analytics firm STR, and airport traffic has almost bounced back to prepandemic levels.

On April 27, nearly 1.1 million people passed through TSA checkpoints in the U.S. That’s nearly 10 times the number that passed through an airport on the same day last year. ■

Several other highend hotels in the city have opened in recent weeks, while others THE PLAZA are also planning a May return. The Mandarin Oriental by Columbus Circle reopened April 1, owner Chatwal is a chairman, will and the Peninsula Hotel on Fifth open May 14, and another of its hoAvenue will open June 1. The tels will open later in May (for more Dream Hotel Group’s Dream Mid- on the Dream Hotel Group, see town, where former Plaza hotel Asked & Answered, page 11).

the Roosevelt, have permanently shut their doors. Others, including the NoMad Hotel, are temporarily closed, and some, such as the Andaz on Wall Street, are fighting to keep their lenders from foreclosing.

Looking up

AP PHOTO

BY NATALIE SACHMECHI

But not all of the city’s inns have been lucky enough to make it through the pandemic. Several, including the New York Marriott Eastside, the Omni Berkshire Place and

MAY 3, 2021 | CRAIN’S NEW YORK BUSINESS | 17

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TECH PAY

ETSY’S COMPENSATION SOARS AS GOLDMAN SACHS’ AND MORGAN STANLEY’S REMAIN STAGNANT

FROM PAGE 4

TECH COMPANY PAY IS OUTPACING THAT OF WALL STREET FIRMS Median worker pay in 2020

Median worker pay

Tech companies Etsy

equity grants, though companies have discretion in calculating the median.

Rick Dionisio, chief executive of technology recruiting firm Ingenium in Midtown, said the tech salaries are a product of supply and demand.

“The average candidate—not even the whiz kid coming out of a top school—is going to have multiple offers,” Dionisio said. “Those of us trying to recruit candidates are always in a dogfight because there is so much demand for these candidates.”

Goldman Sachs

$200K

Morgan Stanley

$262,633

$190,451 MONGODB* $213,000 TWITTER $205,198 ETSY $190,451

$150K

$139,430

YEXT $161,449 SHUTTERSTOCK $146,479

$126,470

GOLDMAN SACHS $139,430

The competition Of course, there are shortcomings in comparing the pay of thousands of workers using a single number. Etsy has a workforce of a little less than 1,500, compared with the 40,000 Goldman employs globally. Both companies declined to comment on the data.

The median pay totals can vary by business structure too. Amazon

MORGAN STANLEY

$100K 2017

2018

2019

resenting the range of corporate, warehouse and delivery jobs at the company.

JPMorgan Chase, the city’s largest publicly traded employer, reported median employee pay of $81,000, but that includes a large number of parttime workers at its branch locations.

The pay data is notable because Goldman and other financial firms are often competing with startups and large technology companies for employees who have comput-

is competing for the same coders as Facebook and Twitter. Yet the company’s median pay for full-time workers last year was $38,000, rep-

$126,470

2020

SOURCE: Securities and Exchange Commission filings

“THE PRICE IS GOING UP BECAUSE YOU HAVE TO BE EVEN MORE COMPETITIVE”

er-science skills.

JPMorgan and Goldman joined Amazon, Google and Bloomberg as the top hirers of New York City technologists last year, according to a report from Dice, an online marketplace for technology jobs. Goldman in 2017 changed its dress code and updated parts of its pay structure to better compete with Silicon Valley firms.

The Dice report found that technology workers in New York City made $114,000 on average last year, up 14% from 2019.

Richard Lipstein, a longtime Wall Street recruiter with Gilbert Tweed International, said stories of 100-

hour workweeks and backlash against the financial industry during the past decade have pushed some workers toward the technology sector.

“When you look at what motivates you, particularly as a young grad, you go where it is most exciting and you perceive the upside is greater,” Lipstein said.

Industry backlash Technology is going through a backlash of its own these days, focused largely on privacy issues and whether the sector’s biggest companies are abusing their market power.

Yet, Dionisio said, that has not dimmed the desire of workers to join the industry, nor the demand for those workers.

One thing to watch, he said, is whether the rise of remote work helps further increase the salaries of technology workers.

“A company in Philadelphia or Austin is now talking to candidates in New York, whereas before that was not an option,” Dionisio said.

“The price of poker is going up, for salaries, because you have to be even more competitive.” ■ Amanda Glodowski contributed reporting to this article.

MAYOR’S GOALS

FROM PAGE 3

The Broadway League said September remained its targeted opening date.

NUMBER OF “Broadway’s additional people a very importde Blasio expects ant piece of to get vaccinated the equation,

by July 1 very emotionally important to us all,” de Blasio said.

“But the vast NUMBER OF jobs lost in the majority of pandemic that other parts of the mayor expects our life and to regain after the our economy, reopening we’ll certainly be able to get up and running full strength or close to full strength by July first.”

Actors’ Equity, which represents actors and stage managers for live theater, has put out safety guidance for fully vaccinated workplaces whose protocols will last through June 30.

These still require weekly Covid-19 testing, masking except during rehearsal and performances, and 6 feet between masked audience members and the stage. The union did not respond to a question regarding whether it would loosen these measures beginning in July.

The mayor hopes that the full reopening will put the city on track to regain 400,000 of the 600,000 remaining lost jobs, many of which came from the hospitality, tourism and arts sectors. ■

1.4M

Gianaris of Queens, the deputy majority leader. “We’re scrutinizing anything proposed. Public health is paramount, but some of the orders seem arbitrary.”

He said, he still needed to get consensus within his conference and with the state Assembly.

400K

ISTOCK

Faith in the Legislature

Many restaurants in residential neighborhoods report that they are already beginning to fill to capacity between indoor dining at 50% and outdoor tables, although they are still missing corporate diners, tourists and parties.

“It really depends on how fast people get comfortable coming back,” said Thomas Keller, the chef and owner of Per Se. He noted that at his locations in Florida and California, “people

“IT MIGHT BE EASIER IF SIMPLER EXPLANATIONS WERE PROVIDED” later in the day last Thursday that he was “managing it by the science, by the data” and that he hoped for a full reopening before July.

SOURCE: Company SEC filings

*2019 figure used

REOPENING

The mayor said he is counting on both bodies to get the city open in July.

“I have a lot of faith in Andrea Stewart-Cousins and Carl Heastie,” he said. “They have made clear by their actions the last few days that they are restoring this state to normal democracy. They are bringing back democratic norms in New York state and canceling some of the arbitrary decisions by the governor.”

Assembly Speaker Heastie did not respond to a request for comment.

Cuomo mocked the entire idea of the mayor picking a date to reopen, saying at a news conference

Finance companies

FACEBOOK

can’t wait to get back to restaurants,” whereas New Yorkers have so far been more reticent.

Public health officials say many of the regulations from the emergency orders had begun to seem unreasonable, even though curfews were originally meant to keep people from congregating too long in one place and the bar prohibition was meant to protect bartenders.

“It might be easier for the public to understand the recommendations if more, simpler explanations were provided,” said Dr. Waleed Ja-

vaid, director of infection prevention and control at Mount Sinai Downtown.

The show must go on For live performances, capacity restrictions have been a hindrance to reopening, given the huge expense of mounting a show that would not be covered by selling just a third of the usual tickets. The largest-scale shows need several months to prepare—a costly endeavor—and may not have been willing to get started before an opening date was set.

18 | CRAIN’S NEW YORK BUSINESS | MAY 3, 2021

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TAXES FROM PAGE 1

Marcum. “A lot of these transactions wouldn’t occur if they were taxed.”

Last Tuesday the Biden administration moved to change the rules of the game. It proposed to eliminate the benefits of 1031 Exchanges when gains exceed $500,000.

The proposal, which must be approved by Congress, is part of an atttempt by the Biden administration to “ensure that high-income Americans pay the tax they owe under the law—ending the unfair system of enforcement that collects

increase rents if their properties are no longer economically viable.”

Morgan Stanley said in a report last Wednesday: “The elimination of this advantage is a double whammy as the Biden proposal would also tax capital gains at 39.6% vs.

20% currently.”

Congressional opposition This isn’t the first time a Democratic administration has tried to rein in 1031s. In 2016 President Barack Obama proposed to eliminate capital-gains deferrals exceeding $1 million in the transactions, saying that doing so would bring in $19.5 billion in deferred or avoided taxes over time. But Congress wouldn’t go along.

Reform came in 2017 as part of President Trump’s tax overhaul, with one giant exception: 1031 Exchanges were done away with for art, cars and even airplanes—but not for real estate.

It just so happens that a big slug of Trump’s wealth stems from a 1031 swap. In 2005 Trump traded the 30% stake he held in the West Side residential development formerly known as Trump Place for a 30% stake in 1290 Sixth Ave., an office tower whose tenants are banks and top law firms. Based on data provided by the building’s majority owner, Vornado Realty Trust, Trump collects $53 million in annual rent—more than he gets from Trump Tower, 40 Wall St. or his ho-

“THIS DEEPLY FLAWED PROPOSAL WOULD DAMAGE INVESTMENTS”

BIDEN

tel in Washington, D.C. The real estate industry is lobbying to ensure another 1031 swap can be struck. In March the Mortgage Bankers Association, the National Association of Real Estate Investment Trusts and about 30 other real estate groups sent a letter to Treasury Secretary Janet Yellen extolling the virtues of 1031 trades,

describing them as vital to rebuilding the economy.

Jobs on the line “Like-kind exchanges of real estate under section 1031 of the tax code support job growth and investment; the health of U.S. commercial real estate and real estate markets; and the preservation of

JO

IN

BLOOMBERG

almost all taxes due on wages, while regularly collecting a smaller share of business and capital income.”

Real estate and financial executives weren’t pleased to see 1031s under attack.

James Whelan, president of the Real Estate Board of New York, said: “This deeply flawed proposal would damage investments in critical infrastructure, such as housing, at a time when they are most needed— and it could ultimately leave property owners with no choice but to

family-owned farms, ranches, and forestland,” the letter reads.

Buell said clients typically use 1031s to trade one underperforming property for another they find more desirable. The money they would have spent on taxes goes instead to improvements.

“They put people to work,” he said. ■

US

WE

DN

ES DA Y!

Wednesday, May 5 | 4≠ 5 p.m.

NYCí s Restaurant Revival

New York City restaurants have been devastated by the pandemic ñ hundreds of businesses have closed, and thousands of employees have lost their jobs. As the restaurant industry begins to recover, there are questions about Covid≠ 19í s impact and what the future has in store. Join Crainí s as we examine which establishments have been hit the hardest, how businesses are evolving and what eateries are doing to bring back diners. Additionally, attendees will learn what actionable steps the government, business community and public can take to help local food entities get back on their feet.

Featured Panelists:

Daniel Boulud Chef and Restaurateur

Thomas Keller Chef/Proprietor

Founder & CEO, Union

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

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POSITION AVAILABLE Zebra Technologies, Corporation seeks -

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NOTICE OF FORMATION OF Walking Stick Studios LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 10/2020. 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 ave Suite 202 Brooklyn NY 11228. The principal business address of the LLC is: 468 W 58th St New York, NY.

Notice of Qualification of Upper90 Partners SPV GP II, LLC. Authority filed with Secy. of State of NY (SSNY) on 03/11/21. Office location: NY County. LLC formed in Delaware (DE) on 10/23/19. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 114 W 26th St., 5th Fl., NY, NY 10001. Address to be maintained in DE: 251 Little Falls Dr., Wilmington, DE 19808. Arts of Org. filed with the Secy. of State, 401 Federal St. Ste 4 Dover DE 19901. Purpose: any lawful activities.

Notice of Qualification of Skydance Animation East, LLC. Authority filed with Secy. of State of NY (SSNY) on 0 3/11/21. Office location: NY County.

LLC formed in Connecticut (CT) on 03 /09/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Jesse Sisgold, Skydance Media, 2900 Olympic Blvd., Santa Monica, CA 90404, also the principal office address. Arts of Org. filed with the Secy. of State, 165 Capitol Ave., Hartford, CT 06106. Purpose: any lawful activities.

Notice of Qualification of DAVID ZWIRNER DIGITAL, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/22/21. Office location: NY County. LLC formed in Delaware (DE) on 12/16/20. Princ. office of LLC: 525 W. 19th St., NY, NY 10011. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 80 State St., Albany, NY 12207. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of SAMARA CAPITAL LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/15/21. Office location: NY County. LLC formed in Delaware (DE) on 03/11/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State of the State of DE, Dept. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St. Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

NOTICE OF FORMATION OF A. ROSE B LLC. Articles of Organization filed with the Secretary of State of New York on 03/18/2021. 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 301 E 117th St, 2X, New York, NY 10035.

Purpose: any lawful act or activity.

NOTICE OF QUALIFICATION of Steady Rent, LLC. Authority filed with Secy. of State of NY (SSNY) on 2/11/21. Office loc: NY County. LLC formed in DE on 1/12/21. SSNY designated agent upon whom process may be served & mailed to: 379 W. Broadway, FL 2, NY NY 10012. DE address of LLC: c/ o Corp Service Co, 251 Little Falls Dr, Wilmington, DE 19808. Cert. of LLC filed with Secy. of State of DE loc: John G. Townsend Bldg, 401 Federal St, #4, Dover DE 19901. Purpose: Any lawful activity.

NOTICE OF FORMATION OF Belock Design Studio LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 1/28/2021. 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: 215 W 84th St #207 New York, NY 10024.

The principal business address of the LLC is: 215 W 84th St #207 New York, NY 10024. Purpose: any lawful act or activity.

NOTICE OF FORMATION of Kinzey Growth Partners, LLC. Arts of Org filed with Sec. of State of NY (SSNY) on 1 2/14/20. Office location: NY County, SSNY designated as agent upon whom process may be served and shall mail a copy of process against LLC to 369 Lexington Ave., 3rd Fl, New York, NY 10017. Purpose: any lawful act.

Notice of Formation of PRINCETON AMHERST DEVELOPER, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/18/21. Office location: NY County. Princ. office of LLC: 30 Hudson Yards, 72nd Fl., NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 122072543. Purpose: Any lawful activity.

BACK FIFTY LLC, Arts. of Org. filed with the SSNY on 03/15/2021. 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, 145 Nassau Street, Apt 5D, NY, NY 10038. Reg Agent: U.S. Corp.

Agents, Inc. 7014 13th Ave., Ste 202, Brooklyn, NY 11228. Purpose: Any Lawful Purpose.

Notice of Qualification of MSG CHICAGO, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/03/21. Office location: NY County. LLC formed in Delaware (DE) on 06/01/07. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., John D. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of B9 HUNTERS POINT OWNER LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 04/07/21. Office location: NY County. LLC formed in Delaware (DE) on 04/05/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qual. of 28 W. 36th Street Sole Member LLC, filed with the SSNY on 3/1/2021. Office: NY County. LLC formed in DE on 2/22/2021.

SSNY is designated as agent upon whom process against the LLC may be served and shall mail process to: 28 W 36 St, Ste 301, NY, NY 10018.

Address required to be maintained in DE: 850 New Burton Rd, Ste 201, Dover, DE 19904. Cert of Formation filed with DE Sect’y of State, 401 Federal St, PO Box 898, Dover, DE 19901. Purpose: any lawful act.

Notice of Formation of PARKSIDE AMHERST RELATED CLASS C, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/18/21. Office location: NY County. Princ. office of LLC: 30 Hudson Yards, 72nd Fl., NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 122072543. Purpose: Any lawful activity.

Notice of Qualification of SUP SKYLINE LLCAppl. for Auth. filed with Secy. of State of NY (SSNY) on 03/ 26/21. Office location: NY County.

LLC formed in Delaware (DE) on 03/ 23/21. Princ. office of LLC: 500 Stanton Christiana Rd., NCC2, Fl. 02, Newark, DE 19713. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., #4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of VALENTINA KOVA HQ, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 04/02/21. Office location: NY County. LLC formed in Delaware (DE) on 03/30/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Sela Group 12 LLC Arts. of Org. filed with the SSNY on 3/23/2021. 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 276 Fifth Avenue, Suite 404, New York, NY 10001. Purpose: Any lawful purpose.

Notice of formation of Moments In Time Chef and Caterering LLC. Arts of Org. Filed with Secy. of State of NY on 11/18/2020 NY County SSNY. Agent upon whom process to be served and copy mailed of process against LLC to 1885 Adam Clayton powel BLVD 1A NY NY10026 for any lawful act.

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Notice of formation of Ecotage Clothing LLC. Articles of Organization filed with the Secretary of State of New York SSNY on 03/09/2021. Office located in New York. SSNY has been designated for service of process.

SSNY shall mail copy of any process served against the LLC Registered Agents Inc. 90 State Street STE 700 Office 40 Albany, NY 12207 Purpose: any lawful purpose.

Notice of Formation of RTW GoCo LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/26/21. Office location: NY County. Princ. office of LLC: 40 10th Ave., Fl. 7, NY, NY 10014. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543.

Purpose: Any lawful activity.

Notice of Formation of N KNOTEL PLATFORM 2017, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/10/21. Office location: NY County. Princ. office of LLC: 110 E. 59th St., NY, NY 10022. SSNY designated as agent of LLC upon whom process against it may be served.

SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207. Purpose: Any lawful activity.

NOTICE OF FORMATION of Str8StackinBulliesKennel, LLC. Articles of Organization filed with the Secretary of State of New York (SSNY) on 03/11/2021. Office Location: BRONX County. SSNY 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: 1036 Manor Ave apt 2C. The principal address of the business shall be located: Online.

Purpose: Any lawful act or activity.

Notice of Formation of CHERRY GARDEN DEVELOPER, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/08/21. Office location: NY County. Princ. office of LLC: 30 Hudson Yards, 72nd Fl., NY, NY 10001.

SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207. Purpose: Any lawful activity.

Notice is hereby given that a license, number pending, for beer, cider, liquor and wine has been applied for by the undersigned to sell beer, cider, liquor and wine at retail in a restaurant under the Alcoholic Beverage Control Law at 275 Madison Avenue Ste 130, New York, NY 10016 in New York County for on premises consumption.

SS2 Inc. DBA Summer Salt

Notice of Formation of N KNOTEL 110 WILLIAM LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/10/21. Office location: NY County. Princ. office of LLC: 110 E. 59th St., NY, NY 10022. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207.

Purpose: Any lawful activity.

Notice of Formation of ETKIN GOLD LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 02/03/21. Office location: NY County. Princ. office of LLC: Michael L. Martell, Esq., Morrison Cohen LLP, 909 3rd Ave., 27th Fl., NY, NY 10022. 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.

S H A R E

Y O U R

NOTICE OF FORMATION of Essential Absolutely LLC. Arts of Org filed with SSNY on 1/05/21. Office location: NY County. SSNY designated as agent upon whom process may be served and mail copy of process against the LLC to 1200 East 53rd Street, #6F, Brooklyn, NY 11234. Purpose: any lawful act.

Notice of Qualification of ND Growth Investors II, L.P. Authority filed with Secy. of State of NY (SSNY) on 03/ 11/21. Office location: NY County. LP formed in Delaware (DE) on 03/ 08/21. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to: 9 Great Jones St. Fl. 4, NY, NY 10012. Address to be maintained in DE: Corporation Trust Center, 1209 Orange St., Wilmington, DE 19801.

Name/address of genl. ptr. available from SSNY. Cert. of LP filed with DE Secy. of State, 401 Federal St., Ste. 3, Dover, DE 19901. Purpose: any lawful activities.

Notice of formation of Synceed LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 3/12/21. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to R/A: Inc Authority RA, 42 Broadway, fl.12-200, New York, NY10004. Purpose: any lawful act.

Notice of Formation of Ballistic Sprint LLC. Arts of Org Filled with Secy. of State of NY (SSNY) on 1/21/21. Office location: New York County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 151 East 26th St, Unit 4D, New York, NY 10010. Purpose: any lawful act.

C O M P A N Y ’ S

Notice of Qualification of KNICKS HOLDINGS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/03/21. Office location: NY County. LLC formed in Delaware (DE) on 05/19/15. NYS fictitious name: MSG KNICKS HOLDINGS, LLC. SSNY designated as agent of LLC upon whom process against it may be served.

SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808.

Cert. of Form. filed with DE Secy. of State, Div. of Corps., John D. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of MSG LAS VEGAS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 03/03/21. Office location: NY C ounty. LLC formed in Delaware (DE) on 03/09/16. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., John D. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

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FROM PAGE 1

“Oh, it was so difficult. I had to get someone to help me out,” Greene said. “They say the more you have all the right paperwork, the better your chances are of getting contracts and things like that.”

She now checks online daily to see if there’s a way for her to bid on a public contract for her school uniforms and scrubs for local hospital workers.

“I don’t see anything at all. I’ve been passed on to the next person and the next person,” Greene said.

“I’ve become certified, but it doesn’t even mean anything. At least that’s what it seems.”

Greene’s experience is not unusual. Although city contracting to minority- and women-owned businesses, referred to as Minority- and Women-owned Business Enterprises, has grown by leaps and bounds from previous administrations, MWBEs remain underrepresented in the public procurement process.

The de Blasio administration has increased the number of MWBEs certified in New York City from roughly 3,460 in 2014 to more than 10,300 today. But certification is only the first step in an arduous process for minority and women entrepreneurs who hope to do business with the city. They face a complex competition for contracts, city funding and reimbursements long after they are officially recognized by the city.

“The administration has been successful getting more people certified,” explained Jessica Walker, CEO of the Manhattan Chamber of Commerce. “But when you look at the entire city budget and the number of contracts that go to MWBEs, it’s unacceptably low.”

Contracting contradictions From the start, the de Blasio administration committed itself to reversing the lack of progress made by its predecessors in advancing minority business interests in the city.

David Dinkins, the city’s first Black mayor, used an executive order to create an MWBE procurement program for city contracts in 1992. His successor, Rudy Giuliani, ended it in 1994. Michael Bloomberg restarted the program in 2003, with about 700 businesses certified, but by the time he left the mayor's office 10 years later, less than 3,800 MWBEs were certified in the city.

Mayor Bill de Blasio established the Office of Minority- and Women-owned Business Enterprises in 2016, three years after the city charter was amended to make procurement more inclusive. Local Law 1 established participation goals for MWBEs across four city industries: construction, professional services, standard services and goods. De Blasio ushered through a law that allowed MWBEs to receive a greater number of higher value citywide contracts.

The de Blasio administration said it has met its 10-year initial goal of awarding $16 billion in contracts to MWBEs—today it stands at $17.6 billion—and revised the goal to $25 billion by 2025.

“We want to make sure MWBEs

MWBES

BY THE NUMBERS

are not lost in the scramble,” said Saba Hazel, first deputy director of the Mayor’s Office of MWBEs. The administration said it had THE DEBLASIO increased the utiadministration’s lization rate—the initial 10-year percentage of goal for minority prime contracts procurement awarded to MWBEs measured against total contracts PERCENTAGE of awarded—from city contracts that 8% in 2016 to go to minority 28.5% in fiscal and women 2020. businesses But the MWBE contracting numbers from Comptroller Scott Stringer’s office paint a substantially different picture than the progress the administration touts, mainly because the Mayor’s Office of MWBEs uses a different accounting metric that inflates the contracting percentage.

Unlike the mayor’s office, Stringer’s office does not limit the number of eligible contracts to just those subject to Local Law 1; it includes all city contracts that MWBEs are eligible for. The comptroller's 2020 budget report found that of $22.5 billion in contracts awarded by the city, only $1.1 billion—or 4.9%— were awarded to MWBEs. De Blasio raised the MWBE share of total city procurement from 2.7% in the final year of Bloomberg's administration to 4% in 2014, Stringer said, but that share has stagnated since, falling no lower than 4.8% and rising no higher than 5.5% between 2015 and 2020.

“While we have forced the administration to move the needle, the needle is not impacting lives,” Stringer said. “I don’t think the administration took the time to read or understand our reports.”

Magalie Austin, director of the Office of MWBEs, said her office is restricted by Local Law 1 to count contracts awarded, not contracts paid out, which depresses the contracting stats.

“It’s like comparing apples to oranges,” she said.

During the height of the pandemic—from March 2020 to February of this year—the Mayor's Office

$16B

ALEXANDER, owner of Lishawn’s Cupcakes

5.5%

BUCK ENNIS

CONTRACTS

worked a year, including during the height of the pandemic, her contract with the MTA ended and was given to New York State Industries for the Disabled Inc., an Albany-based nonprofit with $249 million in revenue in 2019.

“I felt used,” Murray said. “When everyone did it for more, we did it for less. We did it and then afterwards they took it. After everything calmed down, we were out the door, and they brought those other people in.”

Murray questioned why the state even attempts to contract with MWBEs when they are eager to move on to preferred vendors.

“The move to hire NYSID will save taxpayers nearly $1.5 million annually,” senior MTA advisor Ken Lovett said. “At the same time, the MTA continues to be a leading supporter of minority and women owned businesses statewide, having purchased $96 million worth of products and services from MWBEs as of last month.”

He said Murray’s company still holds its original less lucrative contract with the agency.

Lishawn Alexander, a city-certified MWBE owner of a cupcake business, has received multiple small contracts from the city, although she describes the process as akin to finding a needle in a haystack.

“You get lots of opportunities that have been solicited to someone else,” she explained. “You send an email to city agencies, and you either won’t get a response or they tell you to keep doing what you’re doing.”

Alexander spent 10 years working in the Mayor’s Office of Contract Services before starting her cupcake business. So she knows why things differ for business owners on the certification and con-

“THE NUMBER OF CONTRACTS THAT GO TO MWBES [IS] UNACCEPTABLY LOW” of MWBEs reported that less than $900 million in contracts were awarded to MWBEs and noted that most of the emergency spending is not included in Local Law 1.

Statewide Issues The frustrations tied to MWBE contracting extends to the state level.

As CEO of Prospect Cleaning Service Inc., Ingrid Murray won a $5 million contract with the Metropolitan Transportation Authority to clean Metro-North cars and stations. After Murray's company

tracting side, where the idealistic aims of a level playing field often meet frustrating day-to-day obstacles.

“There was a lot of language in terms of supporting small businesses, but when you’re on the other end you see the hiccups,” Alexander said, noting that MWBE subcontracts are often not paid out on time. “When you have experience on the business side, you see all the challenges that are there for competing and accessing opportunities.”

Few hiccups have been as embarrassing for the de Blasio administration’s MWBE policy as the Covid-19 contracting numbers reported in the middle of last year.

Instant reaction Last year, Crain’s reported the de Blasio administration’s failure to allocate Covid-19 emergency contracts to MWBEs. Despite doling out $3.4 billion in Covid-19 emergency and recovery contracts, only 5% of the money was granted to minority-owned businesses, according to July 2020 data from the comptroller’s office.

In response, the mayor signed an executive order allowing city agencies to sign contracts worth $500,000 or less with minority businesses without a competitive bidding process and requiring them to consider at least one MWBE before awarding a contract related to Covid-19 response efforts.

“It’s a tool to allow MWBEs to get more valuable contracts,” said Austin, the Office of MWBEs director.

“It’s a capacity-building tool. If you get two or three of these [contracts] per year, then you can really sustain yourself.”

Executive Order 59 also established a chief diversity officer for MWBEs in all city agencies and set up a pro-bono consultant service to help noncertified businesses get connected to city opportunities.

De Blasio's executive order builds

off the work done by the Assembly, which increased the discretionary spending threshold for contracts from $150,000 to $500,000 in 2019.

The moves were made with a simple calculation in mind: Contracts with more value increase the number of opportunities to firms previously shut out by lower spending floors. Agencies now would have the flexibility to select more vendors during the procurement process.

“One of the things that we work with our agencies on is to broaden the pool of MWBEs they work with,” Austin explained. “Especially with that $500,000 discretionary award, we feel it’s a really good tool to bring new businesses into the program.”

From January 2020 to January of this year, the Office of MWBEs said, there were approximately $88.5 million in contracts awarded under the $500,000 MWBE discretionary award method.

“The $500,000 is huge,” said Jonnel Doris, the commisioner of Small Business Services and the previous leader of the Office of MWBEs. “The city is pushing for $1 million discretionary spending for MWBEs. The MTA has that already, and that’s what we’ve been fighting for for many years.”

These steps have engendered concrete progress. Newly analyzed Crain's data shows the number of Covid-19 contracts for MWBEs increased by 22% between 2020 and this year.

Assemblywoman Rodneyse Bichotte, who led the push to increase the minimum spending threshold in Albany, wants to see the discretionary contract ceiling raised to $1 million in the belief this will improve the prospects of MWBEs to access capital.

“We need access to capital.

There’s not enough money to go around in the lending arm,” Bichotte said. “It’s something we’ve been challenged with for years." ■

22 | CRAIN’S NEW YORK BUSINESS | MAY 3, 2021

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BUCK ENNIS

SMALL- BUSINESS SPOTLIGHT

SARKA says crafting the face coverings helped her maintain her business.

FOCAL POINTS

Leather-goods firm still betting on face masks Garment District outfit pursues certification to make its coverings suitable for sales to hospitals

COMPANY NAME 1 Atelier FOUNDED 2014 FULL-TIME EMPLOYEES Six CEO Stephanie Sarka 2019 REVENUE Nearly $2 million

BY CARA EISENPRESS

B

y the time New York City’s fashion lovers get back to buying handbags at a pre-2020 pace, Stephanie Sarka aims to have a second product line at her company 1 Atelier, which sells custom, luxury accessories: face masks.

The coverings might seem like a strange bet with the pandemic waning and mask mandates being relaxed across the nation. But 1 Atelier’s offerings will become an ongoing source of revenue because of an opportunity to sell to state-owned hospitals and other facilities. To that end, the company is putting the masks through the certification process by the National Institute for Occupational Safety and Health to have them approved as N95 substitutes. They are the only real candidates for this certification in New York, said Sarka.

“Masks provided a way for me to maintain the business,” Sarka said. “It has allowed us to get through this dark tunnel.”

Sarka, a tech entrepreneur, loved fashion so much that she decided to start 1 Atelier in 2014. The idea was to solve some of the problems at the intersection of fashion, sustainability and technology by letting customers order leather goods to their own specifications and then creating them on demand, on West 36th Street in the Garment District. This runs counter to the business model of build-

ing forecasts and stocking merchandise in line with predicted demand—a way of operating that is behind some of retail’s long-term financial problems.

In January 2020 the company was in a great place, Sarka said. The direct-to-consumer custom business had found loyal customers who loved selecting materials and colors for the trim, body and lining of handbags such as the Saddle (starting at $1,365) or accessories including Apple Watch straps (starting at $195). The company was also a year and a half into a partnership with Nordstrom to set up boutiques inside two Nordstrom locations— in Westchester and Oakbrook, Ill. Sarka said she had also begun conversations with a second major luxury retailer to place the same kind of boutiques.

Then Covid-19 came.

Sales at 1 Atelier plunged 50% in 2020 compared to 2019, and Sarka let half of her 12-person staff go. Loyal customers were continuing to place orders, but when Sarka saw that Gov. Andrew Cuomo was asking New York–based companies to retool their production lines to make needed protective equipment, she decided to try it out.

“We became quick semi-experts on the materials required,” she said. She tinkered with nosepieces and researched the comparative advantages of spun-bond and melt-blown fabrics for filtration, all the while looking for

local factories that could produce the relatively small quantities the company could sell at that point.

Within two months the company had worked with an area hospital to create a design that met its standards as a respirator. The masks, made from three layers of polypropene that fit closely but are easy to breathe through, are sold on the company’s website for the retail price of $10 to $12.50, depending on the quantity purchased.

Taking a gamble As the state began to offer financial support through Empire State Development, Sarka applied for the grant and received $500,000 in February, part of a $20 million endeavor to incentive local firms to invest in making protective gear. At 1 Atelier, the money has gone to working on the application needed to apply for the NIOSH certification, which Sarka called rigorous, and to contracting with a factory in the Garment District that can do the bulk of the mask production at scale.

Recently, Sarka hired a dedicated employee to oversee mask accounts, as production gears up; the company is looking to reach 250,000 total masks produced soon. The idea is to become a go-to supplier that can move quickly to provide masks to hospitals and municipal agencies that need them. The risk, though, is that now that the Centers for Dis-

PRODUCT MIX Face masks and leather handbags and accessories GROWTH STRATEGY Using its experience producing custom goods, 1 Atelier figured out how to engineer and produce health care facility–quality masks that will likely soon receive certification as N95 substitutes. Sales of the masks covered some of 2020’s missing revenue, allowing the company to survive the year WEBSITE 1atelier.com

ease Control and Prevention has changed its guidelines to say that vaccinated individuals don’t need to wear masks outside, mask mandates, even at some facilities, could disappear.

On the other side of the business, demand for the company’s luxury products is picking back up, and 1 Atelier is meeting its modest 2021 monthly goals for its leather business. It hopes that growing consumer sentiments toward sustainability in fashion will benefit it as customers notice the low environmental impact of its not keeping inventory.

“The industry has refocused dramatically on being sustainable,” she said, “and we saw it coming.” ■ MAY 3, 2021 | CRAIN’S NEW YORK BUSINESS | 23

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