HEALTH CARE Post-Covid clinics stay nimble as disease keeps changing PAGE 4
CRAINSNEWYORK.COM
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ON THE MARKET An exec is selling his UES townhouse for $38 million PAGE 3
May 24, 2021
ADAMS
MAYORAL RACE 2021
AN ELECTION FOR THE AGES
DONOVAN
The primary season is heating up. Who is best equipped to lead the city into a new era of prosperity? Page 13
SLIWA
MATEO
YANG
WILEY
ISTOCK, BUCK ENNIS
MCGUIRE
GARCIA
STRINGER
REAL ESTATE
What happens when NY’s eviction moratorium ends? Officials are leaning heavily on federal funds to provide rent relief for tenants and landlords BY EDDIE SMALL
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hen New York’s eviction moratorium was announced on March 20, 2020, it was meant to last 90 days. More than a year later, the moratorium remains in effect after being extended multiple times, with Aug. 31 being the latest end date. The most recent extension in particular drew fierce resistance from landlord groups that
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deemed it unnecessary. And as New York’s vaccination effort continues and its Covid-19 infection rate decreases, there is a chance it will be the last extension. “I certainly couldn’t guarantee what’s going to happen,” said Assemblyman Jeffrey Dinowitz of the Bronx, who sponsored the most recent moratorium extension bill, “but I’d like to think that we would not have to extend this again. That’s certainly my hope.”
© 2021 CRAIN COMMUNICATIONS INC.
The eviction moratorium’s end could bring about a problem New Yorkers have been worried about almost since it was enacted: a wave of eviction cases hitting housing court, followed in short order by a spike in homelessness. Although state and city officials have taken steps to avoid that outcome—and they maintain that the pending rollout of a $2.4 billion state rent-relief program could go a long way
toward preventing it—housing advocates have concerns about what will happen when evictions are allowed to resume. “Many of the cases that were pending before or are currently pending could be resolved by money, and that’s what the federal money is supposed to do. And that’s why we’re trying to push the state to really get that
THE LIST
LARGEST CITY GOVERNMENT AGENCIES PAGE 10
DEPARTMENT of Education Chancellor Meisha Porter
See EVICTION on page 31
CRAIN’S PAGE 18
2021
TECHNOLOGY
Business groups sound alarm as major state data privacy bill advances
C
ity business groups are lining up in opposition to a data privacy bill under review by state lawmakers, saying it is too broad and would hurt the growing technology industry. The state Senate’s consumer protection committee voted last Tuesday to move the New York Privacy Act ahead for a larger vote, about a week after the measure was reintroduced by Sen. Kevin Thomas, a Democrat from Nassau County and chairman of the committee. The bill—which has strong support among privacy advocates— would require companies to receive consumers’ consent before collect-
may be tracked online. “The online and offline data of millions of New Yorkers are being collected, shared and stored—this is no secret,” Thomas said at the hearing. The bill, in his view, would create “transparency, control and oversight that New Yorkers have not had.” The vote prompted a rebuke from Tech:NYC, a group that represents about 800 technology THOMAS companies in New York, including Facebook and Google. Ryan Naples, the group’s deputy director, said the law would “get in the way of recovery not just for the tech industry, which has remained a critical economic engine for New York throughout the pandemic, but for virtually all industries using data.” The bill is moving too quickly and is “overly broad,” said Kathryn Wylde, president of the Partnership for New York City, the city’s largest business group. “State regulation of the innovation economy is uncharted territory and merits careful consultation with affected industries—a process that has not taken place,” Wylde
“BASELINE PROTECTIONS ARE NEEDED SO CONSUMERS CAN SAFELY USE APPS” ing their data and would give the state greater regulatory power over companies that sell personal information. The privacy bill is one of more than two dozen under review in statehouses across the country, as lawmakers follow the lead of California in regulating how consumers
said. Although the bill was only recently introduced for the current session in Albany, the same proposal received a hearing in 2019. At the time, consumer advocates praised the effort. “Baseline protections— analogous to mandatory seat belts or airbags—are needed so consumers can safely use apps, social media and online services without having to compromise their rights to privacy,” said Justin Brookman, director of privacy and technology policy for Consumer Reports.
ISTOCK
BY RYAN DEFFENBAUGH
Affirmative consent over privacy violations. Known as a private right of action, the measure was removed from California’s privacy law. The preference of the technology industry is to wait for a federal data privacy standard. With laws already passed in California and Virginia, plus more than 25 under review in other states, companies are worried that they will be left balancing a patchwork of regulations, Klein said. “It is very difficult and onerous for companies to tailor their data practices state by state unless you just tailor it to the most restrictive
The bill is based on a landmark California law—the Consumer Privacy Act of 2018—but offers several provisions that go beyond the Golden State bill, said David Klein, a technology lawyer with New York firm Klein Moynihan Turco. New York’s measure would require companies to obtain affirmative consent, such as through an automated pop-up, before collecting user data. California’s law requires that a company allow people to opt out of data collection. The bill also would allow New Yorkers to sue companies directly
statute,” he said. The law would not apply to all businesses, only those that collect the data of more than 100,000 New Yorkers. A similar bill in the Assembly— sponsored by Linda Rosenthal of Manhattan—has not passed a committee vote. Asked about the industry opposition, Thomas said small tech companies and other businesses already are following the data guidelines the bill would make law “because they know how integral consumer trust is to their business models.” ■
WEBCAST CALLOUT
REAL ESTATE
BY EDDIE SMALL
ISTOCK
M
ask rules will remain in place for tenants of at least two of the city’s major landlords, despite newly relaxed guidance from the state and federal governments. People entering RXR Realty and Durst Org. buildings will still be required to wear a mask in common areas such as elevators and lobbies, regardless of their vaccination status, according to RXR Chief Executive Scott Rechler and Durst spokesman Jordan Barowitz. RXR is keeping the mask rules in place “to give our tenants and visitors the peace of mind that they are entering a safe environment,” Rechler said. “We’ll continue to revisit this policy as New Yorkers continue to make progress in getting vaccinated.” The decisions from RXR and Durst come in the wake of more lenient recommendations regarding masks from the U.S. Centers for Disease Control and Prevention.
The new CDC guidance says that, in most cases, fully vaccinated individuals do not need to wear a mask unless local, state or business regulations require them to. Gov. Andrew Cuomo announced last Monday that New York would adopt the relaxed standards beginning last Wednesday. Some public
health experts criticized the move as getting rid of too many restrictions too quickly.
Commuter boon? New York’s real estate community was largely happy with the new CDC guidance, viewing it as a possible boost to getting commuters
and tourists back to the city, even while acknowledging that it probably will require more than just new mask rules for people to fully embrace a return to New York. Several of the city’s other major landlords did not provide details about their mask rules. Representatives for The Related Cos., Boston Properties and Rudin Management did not respond to requests for comment. A Vornado representative declined to comment, as did Sage Realty. Edward Piccinich, SL Green’s chief operating officer, described Cuomo’s announcement as “an important milestone for our recovery,” but the company did not provide specifics about what its mask rules will be going forward. RXR’s portfolio includes famed properties such as the Starrett- Lehigh Building and 75 Rockefeller Plaza. Durst’s includes 1 World Trade Center and 1 Bryant Park. Natalie Sachmechi contributed to this report.
ISTOCK
RXR, Durst will still require masks in buildings’ common areas JUNE 1 CRAIN’S MAYORAL DEBATES: REPUBLICAN PRIMARY Crain’s New York Business is hosting a series of mayoral debates, where candidates will have the opportunity to speak on key issues affecting the city. The second event in the series will feature top contenders in the Republican primary as they address the economy, health and safety, their vision for New York City, quality-oflife concerns and a variety of other pertinent topics.
VIRTUAL EVENT 4 to 5 p.m. CrainsNewYork.com/ JuneDebate
Vol. 37, No. 20, May 24, 2021—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for no issue on 1/4/21 and 12/27/21, and combined issues on 6/28/21, 7/12/21, 7/26/21, and 8/9/21 by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: call 877-824-9379; fax 313-446-6777. $3.00 a copy; $129.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2021 by Crain Communications Inc. All rights reserved. 2 | CRAIN’S NEW YORK BUSINESS | May 24, 2021
RESIDENTIAL SPOTLIGHT
BIG PRICE, BIG PROFIT Former Lehman executive is swinging for the bleachers, putting a $38 million price tag on an Upper East Side townhouse BY C.J. HUGHES
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ne of the top traders at Lehman Brothers, the investment bank whose dealings in subprime mortgages helped fuel the Great Recession, stands to reap a windfall from the sale of his home. Robert Millard has listed his townhouse at 9 E. 88th St., near Central Park, for $38 million. The eight-bedroom, 10-bath property cost $5.6 million in 1997, based on property records—which means Millard could be positioning himself for a nearly 700% return.
Hefty compensation Millard, who earned $51 million before Lehman went bankrupt in September 2008—about the same compensation as Chief Executive Richard Fuld, according to filings—might know markets. He ran Lehman’s proprietary trading
IN 1997, MILLARD PAID $5.6 MILLION FOR THE HOUSE, WHICH WAS BUILT IN 1903
THE PROPERTY on East 88th Street has eight bedrooms and 10 bathrooms. BUCK ENNIS
desk, and afterward launched the Realm Partners hedge fund, which appears inactive now. Millard also has served as a director of Evercore and L-3 Communications, a military contractor; one of the three L’s in its name stands for Lehman. Yet the townhouse, which is Manhattan’s fifth-priciest on the market right now, according to a mid-May StreetEasy survey, is swinging for the bleachers at a time of strong headwinds for luxury real estate. A six-bedroom townhouse of similar vintage at 8 E. 62nd St., for instance, has lingered on the market for five years. Its asking price has plunged from $85 million to $55 million. To be sure, Millard’s townhouse, completed in 1903, has a lot to
offer, with a bowed 26-foot-wide facade, a bookcase-lined library and a glass-walled rooftop conservatory. And unlike townhouses that have been sliced and diced into apartments, the 14,000-squarefoot property has been a single-family residence for all of its existence, according to listing brokerage Sotheby’s International Realty, which declined to comment. Before Millard, the house was occupied for
decades by Dr. Arthur Lejwa and his wife, Madeleine—art dealers whose on-site gallery, Chalette, traded in works by Chagall and Picasso. The Lejwas, who lost relatives in Nazi concentration camps, were big supporters of Israel’s Hebrew University. After Madeleine Lejwa died in 1996, the American Friends of the Hebrew University briefly took possession of the house, records show, before selling it to Millard.
Soft landing? Millard, who could not be reached for comment, might not be moving very far from East 88th Street. In 2016 he snapped up a quadruplex at the Beresford, a prewar cooperative at 211 Central Park West. The Beresford apartment, which cost him $19 million, features a room with 17-foot ceilings whose sweeping views take in Central Park and beyond. ■ MAY 24, 2021 | CRAIN’S NEW YORK BUSINESS | 3
HEALTH CARE
Long-haul Covid clinics seek to be flexible in face of disease’s changing nature
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ore than 20 clinics have been set up across the city to address the needs of patients suffering from long-term symptoms of Covid-19. And as physicians continue to discover new afflictions related to the disease, the clinics have made adjustments to remain nimble and flexible in the services they provide. Long Covid—also known as postacute sequalae of SARS-COV-2— can refer to a wide range of health consequences that are present more than four weeks after a Covid-
Health + Hospitals centers have treated several thousand patients since they opened. Islam said Montefiore’s clinic has seen about 500.
suggests about 13% of patients who recover from Covid-19 experience lingering symptoms, Long said. The public health system launched a $114 million effort to build three centers of excellence, located in the Bronx, Brooklyn and Queens. “We based our centers around evidence of what we’re finding in terms of prevalence of symptoms,” Long said. That includes breathing problems, heart issues and fatigue. Primary-care doctors screen patients for the symptoms before referring them to on-site pulmonologists, cardiologists and mental health specialists, Long said. Continued care can be necessary for patients who were hospitalized due to Covid, said Dr. Marjan Islam, co-medical director of Montefiore’s Covid-19 Recovery Clinic, located at the Albert Einstein College of Medicine in the Bronx. The health system saw that patients who had been discharged were experiencing complications that required a different level of expertise from the typical long-Covid patients, Islam said. Large health systems such as New York–Presbyterian also have included a post-ICU component to their clinics. Long noted that NYC
New symptoms What is understood about long Covid is continuously changing, and health systems need to adapt their protocols accordingly, experts said. “There are reports of new symptoms all the time, and even though our clinics are set up to address the most common ones, patients can be readily transferred to our hospitals for the less common ones,” Long said. An interconnected, multidisciplinary team working together is key, Islam said. Each division at Montefiore has someone tapped to be a Covid-19 specialist, and the specialist provides the primarycare doctors interacting with longCovid patients with updates on what to screen for, he said. Rehabilitation specialists also were brought in from the health system’s Burke Rehabilitation Hospital in White Plains to assist in treatment, as the clinic lacked such capabilities, he added. Also critical to the success of the clinics is outreach, Long said. “A lot of people haven’t seen a doctor in the last year, and they might not be aware they’re suffering from long Covid,” he said.
“WE STILL HAVE A WAVE OF PATIENTS TO GO IN TERMS OF OUR RECOVERY” 19 infection, according to the U.S. Centers for Disease Control and Prevention. “We know this is a real concern, but part of the difficulty of setting up a response to it is figuring out what kind of care is needed,” said Dr. Ted Long, executive director of the NYC Test and Trace Corps and senior vice president for ambulatory care and population health at NYC Health + Hospitals. Research
THE NYC HEALTH + HOSPITALS Covid Center of Excellence in the Bronx
NYC HEALTH + HOSPITALS
BY SHUAN SIM
The city’s Test and Trace Corps reaches out to patients who have interacted with its contact-tracing system four weeks after completing intake, referring them to their centers as needed, he added.
Changing role As the pandemic rolls on, the necessity of such clinics could last for some time. “We still have a wave of patients to go in terms of our recovery,” Long said. However, as Covid cases continue to fall and vaccination rates increase, their role might change.
“Our centers can transition into places for health care maintenance and comprehensive primary care,” Long said, adding that the centers already offer mammograms, dental services or optometry. Montefiore’s specialized postICU clinic can make the transition as well, Islam said. Its referral and evaluation system, set up specifically for Covid-19 patients, can be adapted by any surgical unit for post-ICU support, he said. “Our work with providing care for patients after they’ve been discharged doesn’t have to stop with Covid-19,” Islam said. ■
Revenue for health insurer Oscar is spiking, but it’s still losing money
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scar Health’s first-quarter financial results, the first since its $1.4 billion initial public offering in March, have the tech-focused insurance company’s cheerleaders celebrating. But skeptics point to a glaring $87.4 million loss as a reminder that Oscar has yet to turn a profit, seven years in. The SoHo company recently reported $369 million in revenue during the quarter, compared with $88 million in the first quarter last year. Its $87.4 million net loss during the quarter was down from a net loss of a little less than $97 million in the first quarter of last year. Investors pointed to robust membership growth as a cause for optimism that Oscar is heading in a good direction. Critics including Ari Gottlieb, a consultant who specializes in health insurance, said its uphill battle is likely to get even steeper from here on out. “They’ve talked about being on a path toward profitability—which may be true,” Gottlieb said. “If so, they’re just starting that hike, and they still have miles to go. The bad news for them is that the climate is going to get much more challenging going forward.”
The modest results, together with a stock price that remains well below the $39 pricing Oscar set for its IPO, stand out given that insurance companies enjoyed booming profits as patients stayed away from the doctor’s office earlier in the Covid-19 pandemic, Gottlieb said. All the while, Oscar keeps burning through cash on marketing to gain more customers.
New members Oscar has a little more than 542,000 members, most of whom are enrolled in individual or smallgroup plans. That includes 50,000 members who signed up for individual insurance plans during the first quarter, for a year-over-year increase of nearly 29%. An additional 3,600 are enrolled in a Medicare Advantage plan or Cigna and Oscar’s co-branded partnership, which launched last year to offer small businesses health insurance. Oscar reported a 74.4% medical loss ratio, or the percentage of premiums it spends on health care costs—down from 81.1% in the first quarter of last year. It also managed to lower administrative costs. “We achieved very attractive first-quarter growth while simulta-
4 | CRAIN’S NEW YORK BUSINESS | MAY 24, 2021
BLOOMBERG
BY MAYA KAUFMAN
neously lowering our medical loss ratio and administrative cost ratio year over year,” Oscar CEO and co-founder Mario Schlosser said in a statement. “This trend … positions our company well for continued sustainable growth and improving profitability.” In an earnings analysis, Morgan Stanley, which underwrote Oscar’s IPO, said the company beat expectations thanks to robust enrollment and gave the health insurer’s stock an overweight, or “buy,” rating. Oscar expects the trend to continue because of additional subsidies for the health insurance marketplace available under President Joe Biden’s American Rescue Plan as
of April 1. And half of Oscar’s Medicare Advantage members used the company’s consumer technology platform, which Morgan Stanley equity analyst Ricky Goldwasser said suggests “Oscar’s unique product offering is resonating across age groups.”
Increased competition Also noted in Morgan Stanley’s earnings analysis is that one of Oscar’s major risks is failing to grow membership due to increased competition. That competition is just around the corner, Gottlieb said: Insurance behemoths Aetna and UnitedHealthcare are plotting returns to the Affordable Care Act
marketplace this year and next. Those exchanges have been Oscar’s niche since its founding in 2012, after Obamacare became law. There is still a path forward for Oscar—as well as other aspiring disruptors, such as Jersey City– based Clover Health—if it keeps lowering costs and attracting members, its critics acknowledge. Nephron Research, a Midtown firm that specializes in health care equity research, called Oscar’s results “a step forward in the long journey to profitability,” albeit a modest one. “We heard a clear emphasis on the company’s focus on getting to profitability,” the firm wrote in an earnings review, “something we are not sure was the focus in the past.” Still, Nephron’s researchers have expressed skepticism for Oscar’s bet that it can deliver value with a tech-centric, direct-to-consumer model over forging bonds with providers. And the first quarter of the year tends to be the best in the insurance industry, Gottlieb said, because members are unlikely to have already met their deductibles, when insurers pick up the tab. Some Oscar fans are excited, but the firm is still losing money. ■
REAL ESTATE
Starbucks closing some city locations as it moves to a pickup model BY CARA EISENPRESS
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hen workers start coming back to Manhattan in large numbers, they might have trouble finding their favorite coffee shop, especially if it’s a Starbucks. The Seattle-based company is midway through a global transformation that likely will leave New York City with fewer traditional coffee shops, especially in Midtown and the Financial District, even as it opens some new, smaller locations that focus on pickup orders. “We called this early,” Chief Executive Kevin Johnson said during the firm’s second-quarter earnings call. Here’s how that looked in the city: Starbucks closed 49 of its stores here last year, leaving the five boroughs with 302 spots, according to the Center for an Urban Future’s State of the Chains report. All but three of the closed shops were in Manhattan, where it is still the borough’s top retailer, with 185 locations. Starbucks does not break out store numbers or closures for individual cities, so tracking the exact locations marked for closure is difficult. Some locations remain temporarily closed because of pandemic-related conditions, and a handful of those are likely to reopen. But about 20 others that are currently in business will shutter when their lease ends in the next year. At the same time, at least five Starbucks pickup stores are likely to open. The smaller stores are optimized to receive, brew and dispense orders that come in through the company’s mobile app. The fact that many of the closings are likely to be in office districts reflects the way that the prolonged economic downturn has rewired New York, keeping city residents working at home and reducing the 1 million commuters who used to add to the coffee-drinking population each day. Foot traffic is down citywide by about 36%, but in Midtown it remains 60% below what it was before Covid-19 hit the city in March 2020, says Jessica Walker of the Manhattan Chamber of Commerce. Walker shared the numbers May 12 at a forum sponsored by the Columbia Business School Alumni Club. Other fast-casual food-service businesses are culling their locations as well. Pret a Manger has reopened about 20 of its approximately 50 prepandemic city locations and will permanently lay off 20% of its 875 workers May 31, according to a notice filed with the state. As early as 2017, some analysts had noticed Starbucks’ oversaturation in New York and other urban areas. Stores were stealing one another’s sales, the analysts said. They suggested that most customers would be willing to walk a block or two extra for a cup of coffee. Starbucks’ push to grow beyond coastal urban centers was underway before the pandemic. “This is an acceleration of trends
already in place,” said Sara Senatore, who covers the company as a managing director and senior analyst at AllianceBernstein. “Across the economy, we see a massive change around the idea of doing things in a different place from where you used to do them.”
Smaller stores The pickup stores are designed to be around two-thirds of the size of a
typical Starbucks. There are already two of them in Midtown: one by Penn Station that opened in late 2019 and another at 125 Park Ave., by Grand Central. A third is expected to open on the Upper West Side in the coming months. The locations are meant for picking up already placed orders. There is no room for seating. It is unclear whether each pickup location will need fewer workers than a tradi-
tional Starbucks shop. Other existing locations might add takeout windows to mimic the suburban drive-through experience. Starbucks has long had turnover among its city locations, and the current strategy does not preclude typical locations from opening, such as one that recently took over a storefront from FedEx near Columbus Circle.
The writing might have been on the wall 11 months ago, when Johnson wrote a letter to stakeholders about the company's plans for a comeback from the pandemic. At that point, 95% of U.S. company- operated Starbucks shops were back up and running, up from 44% the final week in March. But of the 5% that were still closed, almost all, the CEO said, were in the New York metropolitan area. ■
218
WEST 40TH
Prime Office, Medical or Retail Opportunity High Brand Visibility, Even Higher Ceilings
$700,000 Per Annum Ground Mezzanine Lower Level Total
10,316 USF 5,192 USF 7,419 USF 22,927 USF
14,132 RSF 7,112 RSF 10,163 RSF 31,407 RSF
Central Midtown South location 16ft ceiling heights with abundant natural light Private direct entrance on 40th street Easily accessible by the 1, 2, 3, N, Q, R, W, 7, S, B, D, F, and M trains
For leasing information please contact: Brian Neugeboren 212.452.6046 bneugeboren@savittpartners.com
Nicole Goetz 212.452.6053 ngoetz@savittpartners.com
savittpartners.com
May 24, 2021 | CRAIN’S NEW YORK BUSINESS | 5
IN THE MARKETS
SPACs go splat as investors chase down new fads The Redditors who were once interested in such entities seem to have moved on
S
ISTOCK
PACs aren’t a disease, though price. In the heady days of March, for a while there was nothing about nine out of 10 traded for more contagious in the fi- more than $10, and often for far nancial markets. Some sort of more. vaccine must have been developed, however, because in the past few Change in weather weeks, investors have become imRegulators are taking a hard look mune to the joys of SPACs. at SPACs, especially those with ceSpecial-purpose acquisition lebrity backers. Perhaps investors companies are shell entities that list have concluded the most promison a stock exchange and ing companies don’t team then aim to acquire a priup with SPACs, or maybe vate enterprise and bring they’ve just gotten bored it public. with the game and decidLast year 248 SPACs ed their hearts really beraised $83 billion and aclong to Dogecoin. counted for half of all iniThe change in the tial public offerings. So weather is plainly visible far this year, 318 have at a SPAC sponsored by raised $102 billion, acreal estate titan Rob Speycording to SPAC Insider. er: TS Innovation AcquisiAARON ELSTEIN tions. You hardly count as a bona fide celebrity these The Speyer SPAC agreed days if you haven’t gotten involved in January to buy Latch, a developer in SPACs. Bold-faced names in- of phone-activated locks, in a $1 cluding Alex Rodriguez, Paul Ryan, billion deal. By combining the Shaquille O’Neal and Richard startup’s technical expertise with Branson piled into the pool. Tishman Speyer’s door-opening caNow the fad is fading. A Financial pacities, net revenue would soar from $18 million last year to $877 million by 2025, the happy couple predicted. That amounts to a compounded annual growth rate of 91%. That sounds like a Times analysis of Refinitiv data lot. Is it a lot? Well, when Google shows that 12 of the 13 SPACs that was at the same stage as Latch, it announced acquisitions this month grew at a 40% rate. Facebook grew are trading below their $10 offering at a 59% rate.
At first investors couldn’t get enough of this West Side story. (The Speyer SPAC is based in Rockefeller Center, and Latch is near Penn Station, see?) The SPAC’s stock price jumped to $17.68 per share after the deal was announced. Then reality hit. The merger partners released documents ahead of the June 3 investor vote to consummate the transaction. The Speyer SPAC’s share price, which had been falling steadily for a while, dipped
MAYBE INVESTORS HAVE DECIDED THEIR HEARTS BELONG TO DOGECOIN
below $10 a share.
Juicing returns Here’s an explanation for those who wish to understand the nittygritty: When SPACs go public, their shares are typically acquired by hedge funds, which use borrowed money to juice returns. The funds typically cash in their chips before the SPAC completes a merger, so a new group of investors must be found. For a while Redditors were
happy to play the role, but they’ve apparently moved on to new chewtoys in the cryptocurrency realm. Without a fresh supply of buyers, the selling pressure from hedge funds causes SPAC stocks to lose value. In theory, SPAC stocks shouldn’t trade below $10, because their IPO proceeds are parked in a trust until investors sign off on the acquisition plans. But when it comes to SPACs, theory is never a match for reality. ■
TECHNOLOGY
Luxury e-commerce website 1stDibs files for IPO BY RYAN DEFFENBAUGH
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uxury consumer goods marketplace1stDibs has filed for an initial public offering, placing it on a growing list of New York technology companies to make their public debut this year. The company benefited as the Covid-19 pandemic shut down and then limited capacity at art galleries and jewelry shops, shifting many well-heeled shoppers to online ordering. Its revenue increased 15%
bol DIBS. It has yet to set a range for the cost of its shares.
Steady expansion Founded in 2000 as a listing site for antiques, 1stDibs has steadily expanded its focus to incorporate fine arts, jewelry and designer clothes. The company has raised $253 million from venture capital investors in the past decade under the leadership of Chief Executive David Rosenblatt. Rosenblatt formerly was CEO of online advertising company Doubleclick, which Google bought for $3 billion in 2007, making the company New York’s most successful firm from the “Silicon Alley” dot-com era. As Rosenblatt told Crain’s earlier this year, 1stDibs is “a company at the intersection of two of the fastest-growing movements in the market right now: a shift toward digital and people’s desire to improve their home.”
IN ORDER TO BUILD ON ITS GROWTH, 1STDIBS EXPECTS TO TAKE ON MORE COSTS
6 | CRAIN’S NEW YORK BUSINESS | MAY 24, 2021
BUCK ENNIS
last year, to $81 million, according to a filing with the U.S. Securities and Exchange Commission. While still not profitable, 1stDibs cut its net loss from about $30 million in 2019 to $12 million last year, the filing shows. The company plans to list on the Nasdaq exchange under the sym-
ROSENBLATT is the former CEO of Doubleclick.
The company sold 10 art pieces worth more than $100,000 between the first Covid-19 shutdowns in March 2020 and September alone, Rosenblatt told Crain’s. But in order to build on that
growth and expand to new markets, 1stDibs expects to take on more significant costs, the firm warned investors in the IPO prospectus, adding that its losses might grow. Headquartered in the East Vil-
lage, 1stDibs would be the latest in a string of public market debuts for New York– based companies. There were three IPOs in March alone: Oscar Health, food-deliver y company Olo and cloud-hosting company DigitalOcean. Real estate services firm Compass and robotic software c o m p a n y UIPath debuted last month. Website hosting platform Squarespace went public through a direct listing May 19, and Sprinklr, which makes software that helps companies manage customer engagement, has filed for a public offering as well. ■
SPONSORED CONTENT
Taking a proactive approach to prevent fraud If your company is more worried about fraud than in the pre-pandemic world, you’re not alone. Seventy-nine percent of the organizations recently surveyed by the Association of Certified Fraud Examiners reported an increase in fraud since the onset of the coronavirus, with 38% acknowledging a significant event. Ninety percent of the organizations anticipated fraud would increase in the next 12 months. Fortunately, businesses and nonprofits can do a lot to batten down the hatches, even if their teams are still working remotely. For insight, Crain’s Content Studio spoke with James O’Brien, a certified public accountant and a partner in forensics, litigation and valuation services at Grassi Advisors & Accountants. O’Brien concentrates his practice on providing expert-witness services, litigation consulting and forensic investigations.
O’BRIEN: While no business is immune to fraud, we tend to see higher vulnerabilities in certain industries and business types. Construction contractors, nonprofits and small familyowned businesses are a few examples, commonly due in part to insufficient investment in technology and internal control procedures that make fraudulent activity more difficult to commit or sustain.
JAMES O’BRIEN, CPA, CFF Partner Grassi Advisors & Accountants jobrien@grassicpas.com
CRAIN’S: What are the red flags a business should look for to identify fraudulent activities? O’BRIEN: Most cases of business fraud are perpetrated by employees—the same people you are relying on to monitor the accuracy and integrity of your financials and operations. Warning signs that fraud has already occurred include the underperformance of revenues and profits, the absence of supporting accounting or financial documentation, and unexpected changes in financial or operational activity. Employees who are suddenly living beyond their means or getting particularly close to vendors are also red flags. It is imperative to have strong internal controls in place to identify signs of fraud before it happens or as soon as it occurs. A clear whistleblower policy and a confidential hotline for employees to report suspicious behavior are other best practices. CRAIN’S: Are there any specific industries or types of businesses in the New York City area that are more susceptible to fraud? Did Covid-19 change the mix of businesses that are most vulnerable?
P007_CN_20210524.indd 7
The Covid-19 crisis extended this risk to a far greater number of companies. Entire remote workforces were suddenly operating outside the normal internal control environment. Many companies found they did not have adequate controls and policies in place to reduce the risks associated with remotenetwork access, unsupervised employees and, in some cases, increased levels of justification
strengthening the internal controls that allowed it in the first place. Strengthening internal controls is the single best way to minimize exposure to inappropriate activity and get the most value out of the forensic investigation. CRAIN’S: What role does technology play in uncovering inappropriate or unauthorized activity? O’BRIEN: Data analytics plays a critical role in the forensic investigation. Technology and software not only help us locate where the fraud initiated, but they also are used to quantify the full amount of damage caused by the inappropriate activity.
and motivation to commit fraud because of the pandemic’s economic impact on employees and their families.
litigation, remediation plans and other decisions and processes that will follow in the wake of inappropriate activity.
CRAIN’S: How does a forensic investigation help business owners mitigate the risk of fraud?
CRAIN’S: When fraud is suspected, what should a business do first?
Once the root cause of the fraud is identified and stopped, a natural byproduct of the investigation is the opportunity to mitigate the recurrence of fraud by reevaluating and
CRAIN’S: How do you recommend a business manage public disclosure when it has experienced fraud? O’BRIEN: Nonpublic companies are not obligated to disclose incidents of fraud to the public. When fraud is detected, investigated and resolved at no harm to the customer, public disclosure is typically not necessary.
Disclosure of inappropriate activity is a corporate decision that can be used as a deterrent to prevent future exposure if employees understand the risk of prosecution. On the other hand, the negative press from disclosure of the inappropriate activity is one reason companies decide not to disclose. A public company would likely disclose an adjustment to its financials for fraudulent activity during its normal reporting process if the event is material. In these instances, the forensic accountant can work directly with the public company’s auditor on the disclosure to ensure compliance with all regulatory requirements.
This data will be essential for substantiating insurance claims,
“Strengthening internal controls is the single best way to minimize exposure to inappropriate activity and get the most value out of the forensic investigation.”
O’BRIEN: A forensic investigation would normally occur after fraud is already suspected. The immediate priorities of the forensic accountant are to confirm if fraudulent activity has occurred, identify the perpetrator and determine how he or she was able to carry it out.
contacted as well, depending on the severity of the incident and subsequent actions to be taken. Management should consult the company’s insurance policy to understand the coverage that is in place in the event of fraud or theft.
Don’t just stop fraud. Prevent it. Our fraud and forensic advisors make your workplace safer and smarter.
O’BRIEN: When warning signs are uncovered or accusations of fraud are made, the first step is to collect and secure all accounting and financial documentation right away. These files will be crucial evidence to prove or disprove fraudulent activity, recover your losses and plan preventative measures to avoid a recurrence. This step should be immediately followed by contacting a forensic accountant to conduct an independent investigation. Your attorney may need to be
James O’Brien Partner grassicpas.com
5/19/21 4:40 PM
chief executive officer K.C. Crain senior executive vice president Chris Crain
EDITORIAL
group publisher Jim Kirk publisher/executive editor
NY hurt firms by updating mask policy without clear enforcement guidelines been tied to vaccination benchmarks. With that ship having sailed, we still want the government—state or federal—to provide clear guidelines for companies about how exactly they can get back to business as usual. Leaving it up to retailers and restaurants to decide if and how they want to enforce mask mandates going forward is a misstep. For example, if one supermarket decides to continue to require masks for all shoppers to keep employees and the unvaccinated safe while another relaxes its standards, it will make mask wearing a matter of business competition instead of public health. And what about the corner bodega, with one employee behind the counter and several shoppers streaming in and out? Or the large retailers in SoHo and on Fifth Avenue that have multiple points of entry and customers flooding in all at once? The lack of clarity will be a source of frustration, especially for small retailers and restaurants. It seems unlikely that businesses with a limited amount of staff will do anything other than throw up their hands and let in all mask-free patrons unchecked. Mayor Bill de Blasio has been
FOR BUSINESSES, THE POLICY CAN’T BE DICTATED BY CONSUMERS have left theirs at home and demand entry? That’s not to mention that the cards could be forged or duplicated. We all watched the news updates about fights between workers and customers who refused to wear a mask last year. So what’s lacking from the governor’s revised mandate is guidance about enforcement. Crain’s recently opined that reopening measures should have
EDITORIAL editor Robert Hordt assistant managing editors Telisha Bryan,
Janon Fisher 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 reporters Ryan Deffenbaugh, Maya Kaufman,
Brian Pascus, Natalie Sachmechi, Shuan Sim executive assistant Devin Cavallo BUCK ENNIS
W
e’ve been waiting for this for more than a year. Last week, following the latest guidance from the Centers for Disease Control and Prevention, Gov. Andrew Cuomo relaxed the mask-wearing mandate in the state for vaccinated New Yorkers. As residents breathed a sigh of relief, many business owners were left scratching their heads. Those who are fully vaccinated were given cards stating as much. But which employees will be tasked with checking the card of each mask-free shopper who walks through the door? And who will handle the inevitable arguments when mask-free patrons claim to
Frederick P. Gabriel Jr.
largely unhelpful on the matter as well, telling vaccinated New Yorkers to do what they feel most comfortable with in terms of mask usage. But for businesses, the policy can’t be dictated by consumers. There is a subset of individuals that doesn’t want to wear a mask at all. This group will prioritize their own comfort over the health of consumer-facing workers and their fellow New Yorkers no matter what. That’s not to mention that without proper enforcement, any perceived incentive for residents to continue to be vaccinated will be lost. Across the river, New Jersey Gov. Phil Murphy has decided to maintain the indoor mask mandate for businesses. His reported reasoning? “We’re not checking anyone’s vaccine status
at the door when you go to the supermarket or the hardware store.” Crain’s is all for the reopening of New York City. But doing so without clear guidance from our elected officials seems incredibly unsafe. In light of the crisis happening in India, there’s no mistaking that the pandemic is not yet over. Behaving as if it is could set us on a course for another wave. It’s not too late for the state to inform businesses about the best way to enforce the updated mask guidance, with clear guidelines for small firms and large. Cuomo was not shy about issuing executive orders last year, and some could argue that is why the state was able to get through the worst of the pandemic as efficiently as it did. Now’s not the time to throw caution to the wind. ■
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OP-ED
Simone Pryce
What de Blasio needs to do to bring New York out of the pandemic
media services manager Nicole Spell
BY ANDREW YANG
$129.00 one year, for print subscriptions
W
hen President Joe Biden and Senate Majority Leader Chuck Schumer passed the $1.9 trillion pandemic relief package, I, like many New Yorkers, celebrated what felt like a second chance. After losing so many lives and enduring an economic depression, Democratic leaders in Washington approved billions in federal aid to individuals, small businesses and cultural institutions—along with $7 billion in aid to close our city’s budget gap. Unfortunately, while funding several worthy programs and initiatives, Mayor Bill de Blasio’s proposed budget misses the mark. First, unlike the federal government, New York City cannot run a deficit. We must, by law, balance our books each year. Every dollar
must be spent wisely, particularly if spending a dollar today means committing to spending another dollar tomorrow.
Close the gap The mayor’s current budget proposal ignores that reality. Independent projections show that under de Blasio’s current plan, New York will run a $5.3 billion deficit for the 2023 fiscal year. That could lead to massive cuts in social services and economic spending at a time when New Yorkers will badly need both. That is why I am urging the mayor and the City Council to take up the following three measures. First, every city agency should be asked to find 3.5% in programs to eliminate the gap, or PEGs, during the next two years. It is particularly necessary now, when agency
spending has grown at an unprecedented clip for the past eight years. Implementing such a PEG program would net our city $2.3 billion in savings. The second action our city should take is to use $1 billion in PEG savings to fund immediate, one-shot stimulus checks to residential and commercial tenants who are on the verge of losing their home or storefront. Small businesses, particularly those that are minority- and woman-owned, face similar threats. We should be doing everything in our power to keep such businesses open. Distributing cash grants to the businesses would ensure more have the resources they need to keep operating and rehire New Yorkers. That also would keep more small stores open, preventing more vacant storefronts, which create
public safety risks in communities across our city. Existing city and state programs could administer such funds. We should use them to get New York City stimulus checks out the door right away. Finally, we need to prepare for our city’s financial future responsibly by reinvesting in our rainy-day fund. We should immediately reinvest $500 million to the city’s rainyday fund and add $600 million to the general reserve, bringing each close to a total of $1 billion. This is a critical investment to ensure we can continue paying for essential services when the next crisis hits. I am hopeful about our city’s future, but only if we make smart decisions today. ■
SUBSCRIPTION CUSTOMER SERVICE
www.crainsnewyork.com/subscribe customerservice@crainsnewyork.com 877.824.9379 (in the U.S. and Canada). $3.00 a copy for the print edition; or with digital access. Entire contents ©copyright 2021 Crain Communications Inc. All rights reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement. CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain chief executive officer K.C. Crain senior executive vice president Chris Crain secretary Lexie Crain Armstrong editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]
Andrew Yang is a Democratic candidate for New York mayor.
8 | CRAIN’S NEW YORK BUSINESS | MAY 24, 2021
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5/21/21 5:50 PM
OP-ED
Exempt small landlords from the eviction moratorium BY PAM HELMING
Penn Plaza makeover is long overdue BY ELIE HIRSCHFELD
T
here are objections to the redevelopment of the Penn Plaza district, as proposed by the state, but they can be dealt with. The intention is to revitalize a key section of Manhattan that has been deteriorating for decades and to generate revenue to help expand and modernize transportation. Some call it a land grab. However, the plan specifies that the money may be used only for transportation improvement projects—certainly not for above-grade development. Thus, no land grab. Some claim there is no master plan. But this is a preliminary phase, so of course there is no final master plan. But there is a preliminary plan that is perfectly appropriate—and, in fact, more than necessary—at this early stage. Some say they want to pause the current phase until the transportation is prioritized over real estate.
domain should not be abused. The state must make proper payments to tenants and owners who will lose their interests, or give them the opportunity to trade their current interests for equivalent or better spaces in the new developments. Or both. Most important are the reasons New York City needs the remarkable plan. The Penn Station district is in dreadful shape. Revitalizing the station to the level of Grand Central Terminal can help the entire neighborhood, including Herald Square and Macy’s. And the plan could bring commuters and tourists to Manhattan in droves.
Priority funds Small landlords and renters are now waiting on the state Office of Temporary Disability Assistance to release details about the application program and eligibility. Yes, this takes time. But, again, the state has known for months that the money would be available. The process should have been completed a long time ago. Imagine all the people who could have been helped
BUCK ENNIS
COSTAR GROUP
N
ew York has known since December that it would be getting billions of dollars in federal aid to assist tenants and landlords devastated by the pandemic. Here we are almost six months later and the state still has not gotten the money out the door and into the hands of people who need it. There are reports that New York City’s tenants alone owe more than $1 billion in back rent. Across the state, that number for all renters is likely to exceed $3 billion. The Legislature dedicated $2.4 billion for rental relief as part of the recently enacted state budget. I and my Senate Republican colleagues called for the federal aid to be removed from the budget process in order to expedite the distribution of the money to those who need it. Senate Democrats refused our request.
and the pain that could have been avoided. New York’s bureaucratic inaction continues to hurt small landlords and the tenants who need help the most. I recently learned of the experience of an 88-year-old small landlord who is facing eviction from his own home because he has not been able to collect rent on the 10-unit building he has owned for decades. Legislation I co-sponsor, Senate bill S.6597, would help him and others by exempting property owners with 10 or fewer residential units from the state’s eviction moratorium. Many small landlords are your neighbors. They are middle-class people who count on rental income to support their children and families and pay their mortgage. They are senior citizens who rely on rent-
Pam Helming is the ranking member of the state Senate housing committee.
IDEAL LAST MILE DELIVERY SITE
Glorious hub We need a glorious transportation hub and with it the boost to our local economy. The Penn Empire Plan envisions integrated, worldclass transportation of the future. Its time has come. The vital project should not be a political issue. Gov. Andrew Cuomo is a Democrat. I am finance chair of the state Republican Party. This is a great project for the city, the state and the entire tristate region—and it should have everyone’s support. When I bought the 1,700-room Hotel Pennsylvania in 1980, I rebranded it and converted excess space into a giant coworking office enterprise, a language school and a health club with a new pool. I also developed a commercial segment of the structure. The changes created a new life for the hotel at the time, but that time has expired. I sold it around 2000 and have no economic interest in it today. Let’s hope that city, state and community leaders work out the details and do not let this opportunity slip away. ■
al income to pay for their prescriptions and heating bills. They are owners who work hard to maintain their property for the good of their community. For the past six months, state officials have been moving at a snail’s pace. The state must unlock the money dedicated to rental relief immediately and without unnecessary layers of bureaucracy that would only cause more harm. Distributing the funds must be the priority. Our state’s economic recovery depends on it. We must help people get back to work. We must support small landlords who want nothing more than to be treated fairly. They all deserve better. ■
FOR LEASE
LET’S HOPE THAT CITY, STATE AND COMMUNITY LEADERS WORK OUT THE DETAILS But 100% of the current allocation is for transportation. None is for real estate. Certain retailers might lose their current location, it’s true. But the answer is that the retailers should be offered the first opportunities to rent at favorable terms in the new complex.
Legit concerns It is legitimate to be concerned that smaller landowners could be pushed out. The answer is that displaced entities should be given the first opportunities to trade their current interests for equivalent or better spaces in the new development. Funds can be set aside to adequately compensate for these situations. And it is legitimate that eminent
Elie Hirschfeld is president of Hirschfeld Properties.
23-85 87 th Street - East Elmhurst, NY COMMENTS: • • • •
8.3 acres Close to LaGuardia Airport, Grand Central Parkway and RFK Bridge Ideal Last Mile Delivery, Warehousing, Parking Owner will Build-to-Suit
FOR INFORMATION CONTACT:
MICHAEL LEVENSTEIN
401 broad hollow road • suite L1 • melville, new york 11747 main - 516.935.8300x15 • direct - 516.441.7330 • mobile - 516.413.9830
May 24, 2021 | CRAIN’S NEW YORK BUSINESS | 9
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5/20/21 4:35 PM
THE LIST LARGEST CITY GOVERNMENT AGENCIES Ranked by number of employees
RANK
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
AGENCY NAME/ ADDRESS
LEADERSHIP
FISCAL 2021 PERSONNEL/ % CHANGE FROM 2020 1
FISCAL 2021 EXPENDITURES (IN MILLIONS)/ % CHANGE FROM 2020 2
FISCAL 2020 OVERTIME (IN MILLIONS)
Department of Education 52 Chambers St. New York, NY 10007
Meisha Porter Chancellor
145,151 -0.8%
$29,000.0 +3.2%
$22.6
Police Department 1 Police Plaza New York, NY 10038
Dermot Shea Commissioner
51,179 -4.9%
$5,350.0 -12.2%
$838.0
Health and Hospitals 125 Worth St. New York, NY 10013
Mitchell Katz President, chief executive
39,863 +4.4%
$8,010.0 +2.3%
$154.0
Fire Department 9 MetroTech Center Brooklyn, NY 11201
Daniel Nigro Commissioner
17,255 -0.8%
$2,160.0 +0.9%
$332.0
Human Resources Administration 150 Greenwich St. New York, NY 10007
Steven Banks Commissioner
12,329 -2.4%
$9,800.0 -7.5%
$45.1
Housing Authority 250 Broadway New York, NY 10007
Gregory Russ Chair, chief executive
11,787 +6.6%
$3,750.0 0.0%
$148.0
New York City Department of Correction 75-20 Astoria Blvd. East Elmhurst, NY 11370
Cynthia Brann Commissioner
10,748 -8.0%
$1,140.0 -11.6%
$147.0
Department of Sanitation 59 Maiden Lane New York, NY 10038
Edward Grayson Commissioner
9,665 -7.8%
$2,150.0 +2.4%
$156.0
City University of New York 205 E. 42nd St. New York, NY 10017
Félix Matos Rodríguez Chancellor
8,776 -14.6%
$1,320.0 +4.8%
$5.2
Administration for Children's Services 150 William St. New York, NY 10038
David Hansell Commissioner
6,943 -2.0%
$2,680.0 +1.1%
$39.4
Department of Health and Mental Hygiene 42-09 28th St. Long Island City, NY 11101
Dave Chokski Commissioner
6,687 -1.3%
$2,190.0 +17.7%
$22.8
Department of Parks and Recreation 830 Fifth Ave. New York, NY 10065
Mitchell Silver Commissioner
6,307 -8.7%
$549.0 -3.2%
$24.3
Department of Environmental Protection 59-17 Junction Blvd. Flushing, NY 11373
Vincent Sapienza Commissioner
5,990 -1.5%
$1,500.0 +8.7%
$50.5
Department of Transportation 55 Water St. New York, NY 10041
Henry Gutman Commissioner
5,636 -1.8%
$1,130.0 +3.7%
$62.0
Public Libraries Fifth Avenue and 42nd Street New York, NY 10018
Anthony Marx President, chief executive
3,875 -1.6%
$428.0 -0.7%
n/d
Department of Housing Preservation and Development 100 Gold St. New York, NY 10038
Louise Carroll Commissioner
2,414 +0.2%
$1,270.0 +12.4%
$3.5
Department of Citywide Administrative Services 1 Centre St. New York, NY 10007
Lisette Camilo Commissioner
2,376 -5.3%
$1,990.0 +8.2%
$28.3
Department of Homeless Services 33 Beaver St. New York, NY 10004
Steven Banks Commissioner
2,083 -9.0%
$2,390.0 +0.8%
$19.9
Department of Finance 1 Centre St. New York, NY 10007
Sherif Soliman Commissioner
1,992 -5.1%
$327.0 +5.5%
$7.0
Law Department 100 Church St. New York, NY 10007
James Johnson Corporation counsel
1,770 -6.0%
$265.0 -3.6%
$1.7
Department of Buildings 280 Broadway New York, NY 10007
Melanie La Rocca Commissioner
1,693 +2.0%
$198.0 +4.2%
$8.8
Department of Information Technology and Telecommunications 2 MetroTech Center Brooklyn, NY 11201
Jessica Tisch Commissioner
1,645 +3.1%
$887.0 +7.9%
$2.7
Department of Design and Construction 30-30 Thomson Ave. Long Island City, NY 11101
Jamie Torres-Springer Commissioner
1,243 -5.8%
$344.0 -0.9%
$2.2
Department of Probation
Ana Bermúdez Commissioner
1,096 -2.8%
$125.0 +9.6%
$2.8
904 +10.5%
$160.0 -27.9%
33 Beaver St. | May 24, 2021 10 | CRAIN’S NEW YORK BUSINESS Board of Elections 32-42 Broadway New York, NY 10004
Michael Ryan Executive director
RAN
New San
New York, NY 10004
P010_P011_CN_20210524.indd 10
1 1 2 2 2 2 12 2 32 42 52 62 73 8 9 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2
$11.5 5/20/21 4:36 PM
ME NS)
2.6
8.0
4.0
2.0
5.1
8.0
7.0
6.0
5.2
9.4
2.8
4.3
0.5
2.0
/d
3.5
8.3
9.9
7.0
1.7
8.8
2.7
2.2
2.8
1.5
18 19 20 21 22 23 124 225 326 427 528 629 730 8 9 10 11 12 13Thursday, July 15 | 3:30 - 5 p.m. 14 15 16 17 18 19 20 21 22 23 24 25 New York, NY 10004
RANK
Department of Finance 1 Centre St. New York, NY 10007
Sherif Soliman Commissioner
1,992 -5.1%
$327.0 +5.5%
$7.0
Law Department 100 Church St. New York, NY 10007
James Johnson Corporation counsel
1,770 -6.0%
$265.0 -3.6%
$1.7
Department of Buildings 280 Broadway New York, NY 10007
Melanie La Rocca Commissioner
1,693 +2.0%
$198.0 +4.2%
$8.8
Department of Information Technology and Telecommunications 2 MetroTech Center Brooklyn, NY 11201
Jessica Tisch Commissioner
1,645 +3.1%
$887.0 +7.9%
$2.7
Department of Design and Construction 30-30 AGENCYThomson NAME/ Ave. Long Island City, NY 11101 ADDRESS
Jamie Torres-Springer Commissioner
Department of Education Probation 33 Chambers Beaver St. St. 52 New York, NY 10007 10004
Ana Bermúdez Meisha Porter Commissioner Chancellor
Board of Elections Police Department 132-42 PoliceBroadway Plaza New York, NY 10038 10004
LEADERSHIP
1,243 -5.8% FISCAL 2021 PERSONNEL/ % CHANGE FROM 2020 1
$344.0 FISCAL 2021 EXPENDITURES -0.9% (IN MILLIONS)/ % CHANGE FROM 2020 2
$2.2 FISCAL 2020 OVERTIME (IN MILLIONS)
1,096 145,151 -2.8% -0.8%
$125.0 $29,000.0 +9.6% +3.2%
$2.8 $22.6
Michael Shea Ryan Dermot Executive director Commissioner
904 51,179 +10.5% -4.9%
$160.0 $5,350.0 -27.9% -12.2%
$11.5 $838.0
School and Construction Health HospitalsAuthority 30-30 Thomson 125 Worth St. Ave. Long York, IslandNYCity, NY 11101 New 10013
Nina Kubota Mitchell Katz President, chief executive
855 39,863 0.0% +4.4%
$4,630.0 3 $8,010.0 +158.7% +2.3%
n/d $154.0
Office of Chief Medical Examiner Fire Department E. 26th Center St. 9421 MetroTech New York, NY NY 11201 10016 Brooklyn,
Jason Graham Daniel Nigro Chief medical examiner Commissioner
715 17,255 +7.7% -0.8%
$153.0 $2,160.0 +37.8% +0.9%
$9.2 $332.0
Department for theAdministration Aging Human Resources 2 Lafayette St. St. 150 Greenwich New York, NY 10007
LorraineBanks Cortés-Vázquez Steven Commissioner
642 12,329 +2.1% -2.4%
$422.0 $9,800.0 -0.5% -7.5%
$0.0 $45.1
Taxi and Authority Limousine Commission Housing 33 Beaver St. 250 Broadway 10004 New York, NY 10007
Aloysee Heredia Gregory Russ Jarmoszuk Commissioner, chair Chair, chief executive
619 11,787 +2.3% +6.6%
$54.0 $3,750.0 +1.9% 0.0%
$1.2 $148.0
Department Youth and Community Development New York CityofDepartment of Correction 2 Lafayette St. Blvd. 75-20 Astoria New Elmhurst, York, NY 10007 East NY 11370
Bill Chong Cynthia Brann Commissioner
547 10,748 +1.3% -8.0%
$886.0 $1,140.0 -7.2% -11.6%
$0.0 $147.0
Department of Sanitation
Edward Grayson
9,665
$2,150.0
$156.0
59 Maiden Lane July 1 through June 30. Fiscal 2021 dollar figures are based Commissioner -7.8% Fire Department, Department +2.4%of Correction and Department of New York City fiscal years span from on the city's January updated plan. Personnel figures for the Police Department, New York, NY and 10038 Sanitation include both uniformed civilian employees. Source: 2021 Preliminary Mayor's Management Report with additional research by Amanda Glodowski. 1--Four-month actual numbers. 2--Includes all funds. 3--Capital commitments are shown. City University of New York 205 E. 42nd St. New York, NY 10017
Félix Matos Rodríguez 8,776 WANT MORE OF CRAIN’S EXCLUSIVE DATA? VISIT CRAINSNEWYORK.COM/LISTS.
$1,320.0 +4.8%
$5.2
-14.6%
David Hansell Commissioner
6,943 -2.0%
$2,680.0 +1.1%
$39.4
Department of Health and Mental Hygiene 42-09 28th St. Long Island City, NY 11101
Dave Chokski Commissioner
6,687 -1.3%
$2,190.0 +17.7%
$22.8
Department of Parks and Recreation 830 Fifth Ave. New York, NY 10065
Mitchell Silver Commissioner
6,307 -8.7%
$549.0 -3.2%
$24.3
Department of Environmental Protection 59-17 Junction Blvd. Flushing, NY 11373
Vincent Sapienza Commissioner
5,990 -1.5%
$1,500.0 +8.7%
$50.5
Chancellor
Administration for Children's Services 150 William St. CRAIN’S NewWEBCAST York, NY 10038
Department of Transportation Henry Gutman Crain’s first annual Excellence in Diversity and 55 Water St. Commissioner New York, NY 10041 Inclusion Awards, a component of Crain’s 2021 All
Together commitment, will celebrate New York City Public Libraries Anthony Marx Fifth Avenue and 42ndindividuals Street chief executive and businesses thatPresident, are leading by New York, NY 10018
example and holding themselves Department of Housing Preservation and Development Louise Carroll and others accountable for 100 Gold St. Commissioner diversity and inclusion initiatives. New York, NY 10038 Department of Citywide Administrative Services 1 Centre St. New York, NY 10007 Department of Homeless Services 33 Beaver St. New York, NY 10004 Department of Finance 1 Centre St. New York, NY 10007 Law Department 100 Church St. New York, NY 10007
Lisette Camilo Commissioner This 90-minute awards program
focuses on four key themes: n Recruitment Steven Banks Commissioner n Training n Retention n Belonging and Equality Sherif Soliman Commissioner
James Johnson REGISTER TODAY: Corporation counsel CrainsNewYork.com/DiversityEvent
Redefining 5,636 -1.8%
$1,130.0 +3.7%
what you should
$62.0
3,875 -1.6%
$428.0 -0.7%
n/d
2,414 +0.2%
$1,270.0 +12.4%
$3.5
2,376 -5.3%
$1,990.0 +8.2%
$28.3
2,083 -9.0%
$2,390.0 +0.8%
$19.9
1,992 -5.1%
$327.0 +5.5%
$7.0
1,770 -6.0%
$265.0 -3.6%
$1.7
expect from your accountant. grassicpas.com
Department of Buildings 280 Broadway New York, NY 10007
Melanie La Rocca Commissioner
1,693 +2.0%
$198.0 +4.2%
$8.8
Department of Information Technology and Telecommunications 2 MetroTech Center Brooklyn, NY 11201
Jessica Tisch Commissioner
1,645 +3.1%
$887.0 +7.9%
$2.7
Jamie Torres-Springer
1,243 -5.8%
$344.0 -0.9%
$2.2
Department of Probation 33 Beaver St. New York, NY 10004
Ana Bermúdez Commissioner
1,096 -2.8%
$125.0
$2.8
Board of Elections 32-42 Broadway New York, NY 10004
Michael Ryan Executive director
Department of Design and Construction 30-30 Thomson Ave. Long Island City, NY 11101
P010_P011_CN_20210524.indd 11
For event questions: crainsevents@crainsnewyork.com For sponsorship opportunities: Commissioner Kate Van Etten | kvanetten@crain.com
904 +10.5%
May 24, 2021 |+9.6% CRAIN’S NEW YORK BUSINESS | 11
$160.0 -27.9%
$11.5 5/20/21 4:16 PM
PEOPLE ON THE MOVE
Advertising Section To place your listing, visit www.crainsnewyork.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com
ACCOUNTING
LAW
PROFESSIONAL SERVICES
Anchin, Block & Anchin
DiCello Levitt Gutzler
Crowe LLP
Penny Bustamante is Anchin’s first Chief of Tax Operations. She has over 14 years of experience in organizational leadership and she brings practical expertise across operational areas to optimize client service-related processes. Penny will focus on tax department efforts to create and enhance efficiencies that will benefit Anchin’s clients, including those focused on organizational structure, processes, policies and communication; strategic planning; and technology strategy and implementation.
David Straite has joined DiCello Levitt Gutzler’s Cybersecurity and Technology Law Group. With deep experience in cybersecurity, data privacy, securities, corporate governance, and hedge fund matters, Straite has emerged as a leading voice for the recognition of property interests in personal data. He has spent the last decade fighting some of the largest and most complex data privacy cases, including protecting consumer privacy in class actions against Apple, Facebook, Google, and Yahoo.
Daniel Geyer, CPA, was promoted to partner in tax services at Crowe LLP, one of the largest accounting, consulting and technology firms in the U.S. He has been with the firm for over four years and is based out of our New York office. Geyer specializes in global private client services as a trusted advisor for entrepreneurs while helping them grow their businesses. He received his bachelor of business administration degree from Hofstra University; is a member of the AICPA and the NYSSCPA.
INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s
BUSINESS / TECHNOLOGY LAW
PROFESSIONAL SERVICES
Conway Mackenzie, Part of Riveron
Foley Hoag
Crowe LLP
Spencer Ware joins Conway MacKenzie, part of national business advisory firm Riveron, as managing director and retail practice leader. Spencer brings over 20 years of experience in corporate turnaround and restructuring. Based in New York, he has served in a wide array of industry and non-profit leadership positions ranging from the Alumni President for Haverford College to TMA Global Trustee and has received numerous industry awards in restructuring.
Foley Hoag is strengthening its presence in New York with the addition of partner Harlan Levy, formerly of Boies Schiller Flexner. Levy will focus on State Attorney General Investigations, white collar crime and other business litigation matters. Prior to joining Foley Hoag, Levy served as the Chief Deputy Attorney General of New York where he oversaw many of the office’s most significant civil and criminal investigations. He is also Chair-Elect of the New York City Bar Association Board.
Sean Prince, CPA, was promoted to partner in firm risk management at Crowe LLP, one of the largest accounting, consulting and technology firms in the U.S. He has been with the firm for three years and is based out of the New York office. Prince advises audit engagement teams and their clients on the interpretation and application of complex accounting guidance. He received a bachelor’s and master’s degree in accounting from Brigham Young University and is a member of the AICPA and the NYSSCPA.
For listing opportunities, contact Debora Stein at dstein@crain.com or submit directly to
CRAINSNEWYORK.COM/PEOPLEMOVES
CONSTRUCTION MANAGEMENT
STV Luis Delgado, MBA, CCM, PMP, has joined STV as executive vice president, overseeing the firm’s nationwide program and construction management practice. With 25 years in the industry, Luis has led multimillion-dollar capital programs and construction management assignments for public and private sector clients. He is a board member of the Construction Management Association of America and the Regional Hispanic Constructors Association of America.
LAW
Vinson & Elkins Jim Fox has been elected Vice Chair for the law firm Vinson & Elkins beginning January 1, 2022. He currently is the comanaging partner of the New York office and has been a key leader in the firm’s expansion in private equity as the lead relationship partner with a number of fund clients, including Apollo, Riverstone and Citadel. A New York native, Fox joined the firm in 2000 and received his law degree from Brooklyn Law School and his undergraduate degree from Villanova University.
12 | CRAIN’S NEW YORK BUSINESS | MAY 24, 2021
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VOTING FOR NEW YORK’S FUTURE
T
he Big Apple faces one of the most consequential election seasons in decades. The June 22 primary election will help decide who will call Gracie Mansion home for the next four years. The next mayor will have to deal with the aftermath of a once-in-a-century pandemic. That means handling the continuing health crisis, the economic recovery, massive unemployment, rising violent crime and civil unrest over racial justice and affordable housing issues. And that’s only a partial list. The fallout of a year and half government-imposed eviction moratorium will have consequences for years to come, both in residential and commercial real estate. The winning candidate will have to show fiscal discipline in the face of a budget flush with federal funds. He or she—there’s a good possibility the next mayor will be a woman—will have to find long-term solutions to fill budget holes and resist the pressure to spend those funds shoring up his or her political base. The incoming city comptroller will provide a check on that spending, but also likely keep an eye on the next rung of the political ladder. The next mayor will have to deal with a neophyte City Council eager to prove their progressive bona fides. As the crime rate in the city continues to rise, the newly elected Manhattan district attorney will have to negotiate with a nervous population, fearful of crime, but frustrated with past inequality in the justice system. The next Manhattan prosecutor will likely undergo a trial by fire when the office tries its biggest target in its 120-year history—former President Donald Trump. This will be the first citywide election where ranked-choice voting could factor into who wins, so don’t forget to vote. — JANON FISHER, ASSISTANT MANAGING EDITOR May 24, 2021 | CRAIN’S NEW YORK BUSINESS | 13
NYC PRIMARY ELECTION 2021
Know your mayoral candidates
BY BRIAN PASCUS
DEMOCRATS
Eric Adams
T
he story of Eric Adams’ start is straight out of a comic book. After being beaten by police as a teenager, he decided to become a police officer to right the wrongs inflicted upon him. After patrolling city streets for two decades and rising to the rank of captain, Adams entered politics and served in the New York Senate before becoming Brooklyn borough president. “Adams represents the New York dream more than anything else: rise from nothing to become something,” long-time political consultant Hank Sheinkopf said. “He’s the romantic idea of what New Yorkers have of what their city wants to be.” DOSSIER Adams holds a collection of intangibles over his opponents: He’s a former cop who can talk tough on police brutality while AGE: 60 still supporting the Police Department; his political base is RESIDES: Brooklyn, a borough home to 1.2 million registered DemoBedfordcrats; and he has garnered union support and endorsements Stuyvesant from a diverse collection of elected officials. If he’s going to win though, his policies will need to match OCCUPATION: the power of his biography. Brooklyn bor“I’m running because the failures that I witnessed as a child ough president growing up in South Jamaica, Queens, are still present 42 years MONEY RAISED: later,” Adams said. “I believe we can reverse the inefficiencies $15.2 million of our agencies, not with the right manager, but with the right leader who will take us out of this systemic dysfunction.” Adams’ three main goals are improving public safety, streamlining city governance and reducing economic inequality. He thinks his goals can be achieved by revamping New York’s disorderly bureaucracy. “Cities are made up of agencies," Adams said. "If your agencies are not aligned with the common mission, it doesn’t matter how much money you put into the city, you will continue inequality.” Adams’ plan to streamline the city’s functions comes through most clearly with his proposed “My City Card,” a single platform card for all New Yorkers and businesses that will hold their data automatically and allow city agencies to access information in a single place. He sees the My City Card as a way to streamline Department of Building permits, fix delays in unemployment benefits and speed up small-business licensing. “I know we can run our city better,” he said. ■
Shaun Donovan
F
or Shaun Donovan, who served in President Barack Obama’s Cabinet for eight years as secretary of the Department of Housing and Urban Development and budget director, the opportunity to become mayor of his hometown allows him to run “a campaign of ideas.” His ideas include providing $1,000 equity bonds for every child in New York, launching a public option for health care in the city, establishing an apprenticeship program to provide jobs and internships for 10,000 city youths, and creating “15-minute neighborhoods” that include access to public transportation, public schools and parks in every borough. “I have the experience at all levels of government to make those ideas real in the everyday lives of New Yorkers,” Donovan said. “New Yorkers DOSSIER want a public servant, not a politician.” It is no exaggeration to say no one in the race has as much federal AGE: 55 government experience as Donovan. When he discussed his eight years RESIDES: Brooklyn in Washington, Donovan recalled facing an eviction and housing crisis at HUD during the Great Recession; being asked by Obama to lead the OCCUPATION: federal government’s recovery program following Superstorm Sandy; Former secretary, staring at $4 trillion budget deficits at the Office of Management and Department of Budget; and being in the Situation Room when Zika and Ebola threatHousing and Urened a pre-pandemic world. ban Development “No one in this race has led through crises in this city and country like MONEY RAISED: I have,” Donovan said. $5.9 million Donovan thinks his time is Washington will serve the city uniquely well during a moment that brings both pitfalls and opportunities. His decade-long relationship with President Joe Biden could help the city when it comes to tapping into the trillions of dollars in federal spending the Biden administration hopes to pass through Congress. “This is the most important moment since the New Deal to have a mayor with the knowledge about Washington, D.C., that I bring,” Donovan said. One place Donovan would put federal aid is in transportation. He wants a network that will create faster bus service by increasing the number of dedicated rights of way and eroding transit deserts. He also wants to install new traffic signal priority technology at intersections throughout the city to speed up bus travel time. “There’s nothing wrong with New York that can’t be solved with what’s right with New York,” Donovan said. ■
Kathryn Garcia
K
Sc
athryn Garcia made a name for herself during her seven years in Bill de Blasio’s administration and her 14 years overall in city government. Garcia worked at the Department of Environmental Protection when Superstorm Sandy struck in 2012 and critically headed up the city’s Sanitation Department and its emergency food program at the height of the pandemic. She kept her agencies humming along despite internal and external pressures. “You keep an eye on your long-term goals. You got to A-team-B-Team it, otherwise you spend your entire time in a crisis,” she replied, when asked about these experiences. “When you are a leader in that scenario, you have DOSSIER to be out there leading and be really clear about what you know and don’t know.” AGE: 51 The born-and-raised Brooklynite is very clear about what she knows reRESIDES: garding city government. She views her experience in the crevices of New Park Slope, York’s sprawling bureaucracy as the intangible that separates her from poBrooklyn litical newbies such as Andrew Yang and Ray McGuire. “I’ve done $8 billion worth of capital projects during my career. I know OCCUPATION: where the pain points are, and I know what to fix,” she said. “None of them Former city have been in the room with Labor. One of my fellow candidates didn’t know departments the difference between the capital and operating budget.” leader A Garcia administration would focus on the recovery of the city and reMONEY RAISED: liable transit, improved public safety and more green spaces in parks. Her $5.4 million reputation across the city as de Blasio’s main utility player is already working in her favor with business leaders. “She’s running a sophisticated campaign and actually has management skill and can point to successful management experiences,” said Hank Sheinkopf, a political consultant. “Which makes her someone the business community can sit down with.” Garcia is betting a focus on climate change will draw the attention of voters and the business community: She aims to move New York into a fully renewable energy economy by doubling the number of green jobs in 10 years while electrifying 10,000 school buses and instituting a one-swipe city transportation network between Long Island Rail Road and Metro-North service. ■
Ray McGuire
R
ay McGuire’s entire life has been an extended climb from one successful venture to the next. During a 35year career in investment banking, McGuire became one of the most powerful Black executives on Wall Street, a notoriously cutthroat and insular world. “I don’t think he’s another Bloomberg. I think he’s probably significantly more to the left than Michael Bloomberg,” said John DeSio, vice president of Risa Heller Communications. By turns detailed and policy-oriented, approachable and serious, McGuire emphasized that he wants to lead “the largest, most inclusive economic comeback” in the city. DOSSIER McGuire’s three-part vision aims to “go big” by investing in infrastructure, “go small” by focusing on small-business relief AGE: 64 through grants and low-interest loans, and “go forward” by seRESIDES: curing broadband technology across the five boroughs. Upper West He compares the city’s current economic crisis—unemploySide ment is in the double digits—to the one that engulfed New York in the 1970s, when the city nearly entered into default. As OCCUPATION: a businessman, McGuire sees it as imperative for the next adInvestment ministration to develop a working partnership with the private banker sector as a whole. MONEY RAISED: “In the ‘70s, business and government came together,” he $7.3 million said. “They all got together as a coalition to make sure the city survived.” He’s attracted the support of major celebrities: rappers Diddy, Nas and Jay-Z endorsed him, and Academy Award winner Spike Lee directed his campaign announcement video. Despite the celebrity connections, McGuire’s policies aim to favor the little guy: waiving licensing fees for new small-business applications, injecting $100 million into local lenders and business groups, and offering wage subsidies for half of all small-company employees in the city for one year. “New Yorkers want a competent person who will boost the economy in which they can participate,” he said. ■
14 | CRAIN’S NEW YORK BUSINESS | MAY 24, 2021
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PHOTOGRAPHY, BUCK ENNIS, ISTOCK
Scott Stringer
Maya Wiley
hen voters examine Scott Stringer, they will be hard-pressed to find a more experienced candidate. Stringer has spent his entire adult life in the nexus of city government. From 1993 until 2005, he was in the Assembly representing Manhattan’s Upper West Side and holding the seat of his mentor, Rep. Jerry Nadler. Seven years as the Manhattan borough president were followed by seven years as the city Comptroller, where Stringer has managed the city’s $250 billion pension fund and audited each agency under the de Blasio administration. “I do think people want an experienced leader who has a vision to deal with the challenges the city faces,” Stringer said. “I know my own vision calls for a fundamental shift from the de Blasio era into managing the hell out of the city.” Stringer’s vision is an unabashedly progressive one aimed at doubling New York’s DOSSIER affordable housing footprint, putting two teachers in every K-5 classroom, providing universal child care for toddlers, building out bicycle lanes and 35 miles of busways, AGE: 61 and using $1 billion in federal stimulus funds to provide grants to nonprofits and small RESIDES: Lower businesses. Manhattan “I think we need a mayor who knows how to govern,” Stringer said. “I’m a former Senate member, so no one will steal my lunch money in Albany, a former borough presOCCUPATION: ident with knowledge in zoning, and as comptroller, I’ve managed one of the great ofNew York City fices in New York City successfully.” comptroller Jobs are uppermost on Stringer’s mind. He wants a $1 billion New York City recovery MONEY RAISED: fund to infuse up to $100,000 in grants directly into the pockets of small-business own$14.7 million ers and non-profits. Stringer’s hope is this money will supplement the use of Paycheck Protection Program funds and lead to more hiring and retention in the years ahead. Stringer’s campaign was rocked at the end of April by a sexual abuse allegation, which Stringer has denied. He lost the endorsements of multiple progressive lawmakers and the Working Families Party. He has kept the 200,000-member United Federation of Teachers Union on his side for now. “He’s facing a serious allegation of serious misconduct,” said John DeSio of Risa Heller Communications. “Other elected officials who’ve faced allegations like this have seen their worlds fall apart around them.” ■
aya Wiley is driven by a need to overcome inequality in the city she calls home. Her $10 billion New Deal, New York plan aims to inject money into capital construction projects that will prepare the city for climate change, create transportation alternatives for communities of color, and bring more affordable housing to impoverished areas. “My top priority is we recover in a way that adDOSSIER dresses our inequities and shows who we are as a fairer and more just city,” Wiley said. The unabashedly liberal Wiley describes New AGE: 57 York, where she was Bill de Blasio’s counsel and RESIDES: chair of the Civilian Complaint Review Board, as Brooklyn a place mired in more than just the pandemic of OCCUPATION: Covid-19. “The reality of what has been happening in Civil rights New York City for years is we had a pandemic attorney called the affordability crisis. We had the inMONEY RAISED: credible pandemic called structural racism,” she $7 million said. “We have the opportunity to transform, and we need a different kind of leadership to get it done.” Wiley, who has never run for public office before, said she “felt called to this race” because of the possibilities Covid-19 presented to fix long-standing problems in the city. “We need to utilize this tremendously horrific crisis to come back and fix what was broken before Covid,” she said. “That takes a different kind of leadership and that’s why I jumped in.” Equity is at the heart of Wiley’s campaign. She wants to spend $250 million to hire 2,500 new teachers to shrink classrooms, but also charge the Department of Education with expanding the Office of Equity and Access so that local curriculums are culturally responsive to different races, social classes, genders, nationalities and sexual orientations. Wiley also wants to spend $12 million to create “innovative resource hubs” that will explore new ways to deliver education. Despite an endorsement from big labor groups such as Local 1199 of the Service Employees International Union, Wiley trails in the polls. Some blame her professional attachment to Bill de Blasio for her numbers. “When you look back on the history of the city, the mayor that we elect tends to be a reaction to the previous mayor,” explained John DeSio, vice president of Risa Heller Communications. “She was a de Blasio insider and I think people see that.” ■
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“WHEN YOU LOOK BACK ON THE HISTORY OF THE CITY, THE MAYOR THAT WE ELECT TENDS TO BE A REACTION TO THE PREVIOUS MAYOR”
Andrew Yang
EXTERNAL INFLUENCE More than half of Curtis Sliwa's donations come from outside of the five boroughs, along with nearly half of Yang's. Five candidates have more than one-third of their campaign donations sourced from outside the city.
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ndrew Yang’s desire to run for mayor of New York emerged from a failed run for president. “I saw a lot of the country I hadn’t seen before and I realized our economy was transforming in fundamental ways that would push a lot of people to the side,” he recalled. When he returned to New York, where he’s lived since graduating from Columbia Law School in 2001, Yang realized he could apply some of the same plans he had for the country to the city if he ran for mayor. His universal basic income promise to every American has been transformed into a $2,000 stipend to a half-million low-income New Yorkers; his expertise in staving off automation has translated into an expansive “human-centered economy” platform to help small businesses and arts and culture venues recover from Covid-19. “I’m willed and driven by what’s best for the city and not what special- interest groups want to dictate,” Yang said. If Yang’s going to win the primary—and by extension the election—it will stem from his reputation as an open-minded entrepreneur who is both relatable and likable. His most popular policies include investing $4 billion a year to build 250,000 affordable housing units in eight years and establishing a People’s Bank of New York with $100 million in borrowed money to provide credit lines for low-income individuals and loans to small businesses in underserved communities. Despite being an early front-runner shortly after entering the race in January, Yang’s first foray into city politics has been filled with gaffes and question marks. He’s made policy suggestions that don’t make legal sense and found himself engulfed in social media controversies. “New Yorkers want to see someone fresh and not tainted by politics,” said Hank Sheinkopf, a political consultant. “Past politics haven’t been working.” ■
M
% of donations that are from outside the five boroughs 52%
Curtis Sliwa
49%
Andrew Yang
DOSSIER AGE: 42 RESIDES: Hell’s Kitchen OCCUPATION: Entrepreneur MONEY RAISED: $10.5 million
Maya Wiley
36%
Raymond McGuire
36% 35%
Shaun Donovan 30%
Fernando Mateo
28%
Eric Adams Scott Stringer Kathryn Garcia
23% 20%
SOURCE: Crain’s analysis of Campaign Finance Board data
MAY 24, 2021 | CRAIN’S NEW YORK BUSINESS | 15
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Johnson’s ‘happy warrior’ will be hard to beat
Fernando Mateo
A
BY JOE DZIEMIANOWICZ
T BUCK ENNIS
s a small-business man, community advocate and taxi-driver representative, Fernando Mateo speaks the language of the little guy. He’s convinced his experience in these roles gives him a secret weapon to succeed as a Republican in a Democratic city. “I’ve spent 30 years working for the Democratic community,” he said. “I’m a different candidate. I’m an urban Republican.” Mateo’s background is diverse. He moves effortlessly from entrepreneurial ventures and volunteering at prisons to years spent advocating for bodega owners and chamDOSSIER pioning anti-gun initiatives. He’s never held elected office before, but he thinks his AGE: 63 ties to voters run deep. RESIDES: Upper “I’m hitting the people I have represented for 30 years: the bodega owners, the West Side cabdrivers, the former Rikers Island inOCCUPATION: mates whom I taught and trained,” Mateo Small-business explained. “I see how people haven’t forowner, commugotten and appreciate what I’ve done.” nity advocate His campaign is built around making the Police Department an entity that will care MONEY RAISED: for communities and provide public safety. $866,000 He wants New York to return to being a pro-business mecca by having the private sector work with city agencies to make them more efficient and, eventually, to shrink them. “I would eliminate the bureaucracy,” Mateo said. “Regulatory agencies are putting us out of business. Not the pandemic.” Bronx political insiders, like John DeSio of Risa Heller Communications, said Mateo’s commitment to the Bronx was genuine. “I remember him as an earnest guy and a competent advocate of the people who put their faith in him,” he said. ■
Bean counter Significantly, with ranked-choice voting debuting in city elections, the Data for Progress poll found that Johnson was the second choice of 14% of respondents, the most of anyone in the race. Caruso-Cabrera and state Sen. Brian Benjamin, who represents Harlem, tied at 9%. “Ranked-choice voting could be a positive thing for Johnson’s cam-
paign simply because he has higher name recognition than any of the others and he has built ties to a lot of different constituent groups,” said Bryce Gyory, another Democratic Party political strategist. “This doesn’t mean that no one else can take advantage of it.” Benjamin “has strong African American support,” Gyory said, and Weprin “has a lot of outer-borough support and should not be underestimated." Watching city spending, approving city contracts and overseeing pension funds are in the comptroller’s job description, among other tasks. On April 19, Johnson laid out his blueprint as comptroller that’s all about the people of the city. It pri-
Next Manhattan DA will face rising crime, Trump probe BY JOHN DYER
A
Curtis Sliwa
BUCK ENNIS
F
or more than 40 years Curtis Sliwa’s name and iconic red beret have been synonymous with anti-crime efforts across New York. As founder and CEO of the Guardian Angels, the unarmed volunteer crime prevention organization, Sliwa has been a mainstay on city streets, subways and school grounds for decades. It’s no surprise that as he runs for mayor in the Republican primary, he has made reducing crime the hallmark of his campaign. “I’m the only one totally focused on law and order, public safety and the return of DOSSIER quality of life,” Sliwa said. “I make no bones about it.” AGE: 67 He’s convinced that the city will never recover economically or culturally until tourRESIDES: ists and consumers feel safe. To this end, he Manhattan wants to refund the New York Police DeOCCUPATION: partment with $1 billion that the City Founder, Council cut in the last fiscal year, add 3,000 Guardian Angels police officers to the department, and change tax laws so that money held in the MONEY RAISED: endowments of Columbia University, New $41,000 York University and wealthy nonprofits can be returned to the city and invested in policing. “De Blasio has rendered police impotent by making them reactive and not proactive,” Sliwa explained, adding: “I’ll be their worst nightmare if they cross that line and violate people’s rights.” Despite his lifelong connection to New York, Sliwa has never held office. When asked how he would manage city agencies, he said he would lean on the examples of former Lt. Gov. Richard Ravitch and businessman John Catsimatidis. Sliwa would impose a 2% cap on property taxes, continue to fund de Blasio’s increase in public education while expanding charter schools, and put a two-year moratorium on licenses and permits. He pledged to cut the growing city budget. “I think we have to look at every city agency. President Biden’s one-shot stimulus won’t last forever,” he said. ■
he prospect of being New York’s fiscal watchdog is catnip for an eclectic field of candidates vying for the job of comptroller. With about five weeks to go before the June 22 Democratic primaries, City Speaker Corey Johnson has emerged as the presumptive front-runner. Johnson, riding high on endorsements, progressive support and his brand name, outpaced competitors in a March survey of 1,007 probable primary voters. The poll by national think tank Data for Progress found 20% of respondents favored Johnson, which is two and a half times the 8% of support for Brad Lander, who’s
known for progressive Park Slope politics. Former CNBC contributor Michelle Caruso-Cabrera, Brooklyn state Sen. Kevin Parker and Queens Assemblyman David Weprin followed, respectively, with 7%, 5% and 4% of respondents picking them as their first choice.
new era likely will begin June 22, when Democrats vote for a new Manhattan prosecutor. Because the Democratic nomination assures the candidate’s chances in the November general election, the next Manhattan district attorney, who will replace patrician DA Cyrus Vance, will almost certainly be a woman or a person of color—a first in history. The next DA also likely will be the first to describe himself or herself as a progressive prosecutor, one who aims to reduce incarcerations but also lead the investigation into former President Donald Trump and deal with the rising crime rate—a difficult balancing act. One candidate, Liz Crotty, who received the endorsement of former Police Commissioner Ray Kelly and four police unions, has historically taken a more traditional stance on
prosecuting crime. “Now more than ever, Manhattan needs practical, equitable solutions to keep our city safe, fight corruption and protect the rights of victims,” according to her campaign literature. Crotty is one of eight people running for the Democratic nomination. Alvin Bragg, Tali Farhadian Weinstein, Diana Florence and Lucy Lang have been federal or state prosecutors, and they tout their records. Experience is important, they argue, because the next Manhattan DA will have the chance to score a victory in court that would lead to stardom: the prosecution of the former president on tax evasion and other potential charges. Vance’s team in February persuaded the U.S. Supreme Court to allow it to have Trump’s tax documents, which investigators had been seeking to build a case against him. “In a pool of assistant DAs in an office, I would be put on this case,”
said Farhadian Weinstein, a former state and federal prosecutor who served as counsel to ex-Attorney General Eric Holder and general counsel for Brooklyn District Attorney Eric Gonzalez. “Not only have I prosecuted complex white-collar cases involving tax evasion and other charges, but I have worked across American legal institutions in federal and state prosecutions. I am ready to lead on running complex white-collar crime.”
Law & order Eliza Orlins, Tahanie Aboushi and Dan Quart, who is currently an assemblyman, are defense or civil rights lawyers who bill themselves as outsiders ideally suited to reform the office. “The public is really coming to a reckoning with the systemic racism that exists in policing and prosecution,” Orlins said. “The last thing we need is another career prosecutor running” the Manhattan district at-
Ranked-choice voting could BY JOE DZIEMIANOWICZ
B
eing everybody’s favorite candidate isn’t the only way to win an election anymore. Snagging enough second-choice votes on the June 22 primary ballot could be a successful path to Gracie Mansion. New York voters can pick up to five candidates in order of popularity under the newly adopted rankedchoice voting system. If none of the mayoral hopefuls receive 50% of the vote, the candidate with the least amount of votes is eliminated, and their votes go to the one picked second on voters’ ballots. This continues until only two candidates remain. “Ranked-choice voting is going to work for any can-
didate who understands it,” said Susan Lerner, executive director of Common Cause/New York and head of Rank the Vote. “The successful candidate is the candidate that is ranked in the top three consistently.” Being in the top three keeps a candidate in the running as votes are transferred in successive rounds of ranked-choice counting. “While everybody wants to be a strong first choice, if they fall short on that, it’s possible that being a second choice could lead [them] to the next round of voting and eventually a win,” said James Campbell, a University at Buffalo political science professor who has researched ranked-choice voting and has lived in areas that already have used the system.
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oritizes Covid-19 recovery and New Yorkers in need. His Do the Most Good plan, he said, draws on a life lesson from his youth. “Growing up, my mom taught me a simple motto that guides me to this day: Do the most good for the people who need it most,” Johnson recalled. “As New York City’s next comptroller, that’s exactly how I intend to govern.” Asked if Johnson’s part-time college-freshman status or his acknowledged mental health struggles during the pandemic, followed by his withdrawal from the mayoral race, could impede his electability, insiders said
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torney’s office. Seven of the candidates are women or people of color. Some have touted their painful personal and family histories with the police and the criminal justice system as bona fides. Bragg recalls police pulling guns on him three times, thugs pulling guns on him another three times, a homicide on his doorstep and a friend sleeping on his couch after being released from prison. “Going back to being a kid growing up in Harlem, when police were stopping me at gunpoint, I know very well about militarized policing,” said Bragg, a former state and federal prosecutor who is now co-director of the Racial Justice Project at New York Law School. If elected, Bragg said, he will
neither matter would. “I’ve never seen an academic pedigree as being a key part of winning an election in New York,” said Kathryn Wylde, president and CEO of Partnership for New York City. “And mental health was an issue for everybody last year.” “I don’t see either issue as having much impact,” said Gyory. “He’s run the City Council. He’s gotten budgets through. He knows his stuff. The best thing he has going for him is that he’s in the ‘happy warrior’ tradition of New York politics. He likes politics and people like that enthusiasm.” Political insiders are braced to expect the unexpected—and recognize that voter turnout will play a role. Who’ll be the next comptroller? “The candidate who is nimble, skillful and probably a little bit lucky,” Gyory said. ■
advocate for mental health programs, a n t i p o v e r t y measures and other community-based efforts to head off violent crimes, rather ORLINS than prosecuting low-level offenders. “More than 80% of [the DA’s] cases are misdemeanors or lower, but for years we don’t prosecute Jeffrey Epstein, someone who has caused real harm in our communities,” said Bragg, referring to the rich, well-connected alleged child abuser, now dead. Vance gave Epstein lenient treatment until ordering his arrest on sex trafficking and other charges in 2019. Whoever wins the race will face challenges. The city Police Department recently announced that there has been an increase in violent crime, including nearly a doubling in shootings from March to April, compared to last year, as well as increases of more than 50% in both homicides and rapes. ■
Progressive wave to sweep into City Council BY JOHN DYER
A
bout two-thirds of the New York City Council will turn over next year because of term limits and resignations. That leaves the council chamber’s doors open to a new generation of progressive candidates who vow to change the city’s building approval process, protect victims of racial injustice and alter how students compete to enter the city’s most prestigious public schools. “The city is going through a cataclysmic change,” said Hank Sheinkopf, a veteran political consultant, “and out of that comes the progressive wing of the Democratic Party, which is in many ways an argument for younger people to get control of the politics of the city. The question is, what are they going to do?” The answer, if this primary season’s campaigns are any indication, is not good for business. In Sunset Park, where term-limited Councilman Carlos Menchaca successfully submarined the Industry City rezoning proposal, two Democrats seeking to replace him said the expansion of the massive mixed-use development died because the neighborhood didn't have sufficient say in the matter. “We have to look at development and land use that centers on people
amarena, an immigrant-rights acC tivist, also signaled a tougher tone on megaprojects. At present, developers unveil their plans and see whether the public will support them according to the city’s uniform land-use review procedure. The process needs to be turned on its head, Camarena argued. Builders need to consider what communities want, he said, and propose developments that meet those needs. “Listen to the community voices and see how, if at all, private developers can address those needs,” Camarena said. “This is New York City. This is a special place to do business and build. We shouldn’t be making concessions that sell out our communities.” Other candidates are pushing back against the anti-development wave that has swept the city. Public defender Maud Maron, who is running for Lower Manhattan’s 1st District, said she sympathized with those advocating for affordable housing and other needs. She was skeptical, however, of overzealous efforts to curb development in a city that is in constant flux. “I do think you can sit down with the business community and stop pretending you are fighting the Death Star,” she said.
er minorities. Crystal Hudson, who is running for the seat representing Fort Greene, Crown Heights and Clinton Hill in Brooklyn, released her “Black Agenda.” It includes a basic income for New Yorkers living in ZIP codes with high rates of gun violence, a citywide truth and reconciliation commission to consider reparations and a racial equity commission to determine how new policies might harm minority communities, among other measures. “Local government is uniquely positioned to do these things. It’s just we do not have the people with the political will or courage to do them,” said Hudson, a former marketer at Amtrak who also worked as a City Council staffer and in the public advocate’s office. “In the same way we have designed systems that have been built to disempower Black people, we can build and design systems that empower Black people.” Those concerns are at play in candidates’ plans for school testing. The testing of 4-year-olds and the special high school aptitude test have come under fire because Black and Latino students have historically been underrepresented in elite schools. The admissions process is governed by state law and cannot be changed by the council. “We need equity in these schools and not just provide a space for those who benefited from either test prep support or already had resources to be able to qualify,” Camarena said. ■
“YOU CAN SIT DOWN WITH THE BUSINESS COMMUNITY AND STOP PRETENDING YOU ARE FIGHTING THE DEATH STAR” and the community of residents and workers,” said Alexa Avilés, an education advocate who works at the Scherman Foundation, which supports nonprofits that work on progressive causes. “Our priority should be our community and workers—not profit for profit’s sake.” One of her rivals, Rodrigo
weigh heavily in primary Provided there’s a broad distribution of No. 1 choices so that nobody secures a majority in the first round of vote counting, “pretty much anything can happen,” said Craig Burnett, associate professor of political science at Hofstra University. “Ranked choice uses a transfer of votes, so if you’re not someone’s first choice, you want to be second choice,” Burnett said. Being a familiar face—or one who’s making strides to become known through advertising—is an important variable when it comes to landing coveted first- and second-choice positions. “Voters have their favorites, but then they feel compelled to add some other people, so they’re going to go
on labor rights and racial justice. Democratic City Council candidates said the city needs to do far more to address the income gap, which worsened during the pandemic, and the discontent over the historic mistreatment of African Americans and oth-
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NYC PRIMARY ELECTION 2021
on the basis of name recognition,” said Kathryn Wylde, president and CEO of the Partnership for New York City. Being a known quantity in city politics works to one’s advantage, she said. In addition to being a household name, a candidate who “has relationships with a lot of groups,” as well as proven experience, can loom large in ranked-choice voting, Democratic political analyst Bruce Gyory pointed out. “There’s a certain number of voters—and I suspect it’s a majority—who like experience,” Gyory said. It’s important for a campaign to avoid controversies that could drain votes, he added. ■
Political winds Many of the City Council candidates take a ground-up perspective
YANG LEADS IN DONATIONS Andrew Yang has received 20,206 donations, followed by Maya Wiley, while Curtis Sliwa has yet to top 100 donations. 24K
Number of donations
$1.5K
20K
$1.2K
18K
15K
$910
12K
9.8K
6K $106 0
Average donation amount
Andrew Yang
$208
8.8K
8.1K
$342
$900
$126
$68 Maya Wiley
Scott Stringer
$600
$453 4.9K 4.7K
Eric Adams
Raymond Shaun McGuire Donovan
$223 896
$300
$148
69 0 Kathryn Fernando Curtis Sliwa Garcia Mateo
SOURCE: Crain’s analysis of Campaign Finance Board data
May 24, 2021 | CRAIN’S NEW YORK BUSINESS | 17
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CRAIN’S 20 202 21
From multinational corporations to the momand-pop shop down the block, from multicampus hospital systems to the local nonprofit, sooner or later—whether on a daily basis or in an hour of crisis—most enterprises and organizations must find the right way to let the world know they’re open for business, ready to serve … or not to blame. For anyone working in marketing and public relations, these can be challenging tasks in the best of times, let alone in an era fraught with sharp division. But in the spiritual center of both professions, New York City’s message-shaping forces have more than proved their mettle in the face of Covid-19, racial injustice, climate change pressures, backlash against technology and the politicization of pretty much everything. In selecting the 65 individuals for the 2021 list of Notables in Marketing and PR, Crain’s sought to salute the talented professionals who are es-
pecially skilled at gauging sentiment, crafting stories and reaching audiences both broad and narrow. Hailing from an array of firms across a variety of sectors, working as both hired hands and in-house specialists, these accomplished individuals represent the leading edge of their industries. To find these honorees, Crain’s consulted with trusted sources in the marketing and public relations fields and in the New York City business world. Nominations submitted by individuals and companies in the metropolitan area were meticulously vetted. Ultimately, the honorees were selected for their professional achievements and their involvement with industry and community organizations. Read their professional biographies to discover how these publicity virtuosos are helping to propel New York’s businesses to ever greater heights.
GETTY IMAGES
METHODOLOGY: The honorees did not pay to be included. Their profiles were drawn from submitted nomination materials. This list is not comprehensive. It includes only executives for whom nominations were submitted and accepted after an editorial review. To qualify for this list, nominees had to be serving in a senior level marketing or public relations role at their organization or at an agency with at least $25 million in revenue and have used their skills to deliver significant value to clients. In addition, nominees had to demonstrate their involvement in community and/or philanthropic activities, mentoring programs, etc.
VALERIE BERLIN
JODI BROOKS
SABRINA BROWNE
THOMAS BUNN
THOMAS BUTLER
Principal and co-founder BerlinRosen
Managing partner Finn Partners
Vice president, corporate Burson Cohn & Wolfe
President Butler Associates
Valerie Berlin has used her communications expertise in campaigns for racial and criminal justice, economic matters, women’s health and immigration reform, among other issues. As principal and co-founder of BerlinRosen, she provides strategy and communications counsel for a diverse roster of clients although she focuses primarily on public affairs, social impact, philanthropy and elections. Berlin scales rudimentary ideas into massive and successful initiatives and campaigns. Her work has helped elect Democrats in 21 states. Berlin, who spent two decades as a political campaign manager and senior communications director, has appeared on The Advocate Out100 list and on several City & State Power lists.
Jodi Brooks has led communications for technology titans and multinational corporations, of which Oracle, HP, Verizon, Accenture and Honeywell are merely a sampling. The 21-year veteran of the industry is a managing partner at Finn Partners, an international marketing agency. Brooks has led the evolution of Finn’s growing technology practice, leading business expansion and important discussions on topics related to technology and innovation. In 2017 she was named Team Leader of the Year by PR News. Brooks, who was recently diagnosed with brain cancer, has become increasingly involved with fundraising for cancer research.
Sabrina Browne boasts an unusual ability to discern how organizations can best position themselves to make a meaningful impact on stakeholders. As vice president, corporate, at Burson Cohn & Wolfe, a multinational public relations and communications firm, Browne provides media relations, thought leadership and brand strategy to BCW’s Fortune 500 clients. In particular, she advises organizations in the luxury goods, spirits, financial, travel and tourism sectors by securing media placements, bolstering corporate messaging and leading marketing campaigns and activations with celebrities and influencers. Brown, a recognized leader in the industry, is vice president of marketing for the New York chapter of the Public Relations Society of America.
Executive vice president of global brand and integrated solutions Burson Cohn & Wolfe
To Thomas Bunn, the process of influencing people and organizations involves creativity coupled with deployment strategies constructed on sound analytics. As the executive vice president of global brand and integrated solutions at public relations and communications firm Burson Cohn & Wolfe, Bunn is committed to expanding the company’s research, strategy, data intelligence and media capabilities. To that end, he and his team have developed a new analytics framework that enables clients to craft and optimize stories based on real-time data. He is deeply involved in diversity and inclusion offerings at BCW, including its polycultural consulting unit and its African American employee resource group. Bunn routinely mentors young marketing and communications professionals.
The team at Butler Associates, a boutique public relations and strategic communications agency, perceives its role as a matchmaker between clients and journalists and their audiences. That view stems from the agency’s founder and president, Thomas Butler, a data-minded executive with a background in economics. Together with his team, Butler counsels the CEOs of major organizations in the finance, real estate, law, health care, government and nonprofit sectors. The organization is routinely recognized by the New York chapter of the Public Relations Society of America for its outstanding campaigns. Butler takes a special interest in representing underdogs, such as the men in the 9/11 community coping with male breast cancer whose stories he propelled into the national media.
NEW YORK HAD THE HIGHEST LEVEL OF EMPLOYMENT FOR PUBLIC RELATIONS SPECIALISTS OF ALL THE U.S. STATES IN 2020, WITH 27,120 PEOPLE FILLING SUCH ROLES. —U.S. BUREAU OF LABOR STATISTICS 18 | CRAIN’S NEW YORK BUSINESS | May 24, 2021
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Congratulations,
PATRICK McCARTHY 2021 Notable in Marketing and PR honoree. His strong leadership, dedication and passion inspires us every day.
Patrick McCarthy SVP, Head of North America Marketing and MarTech
Discover The Way Up® at cnb.com. City National Bank, Member FDIC. City National Bank is a subsidiary of Royal Bank of Canada. ©2021 City National Bank. All Rights Reserved.
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JASON CAMPBELL
CHIQUI CARTAGENA
FIONA CARTER
SEAN CASSIDY
ANGELA CHITKARA
Senior director of marketing and business development ENT and Allergy Associates
Former chief marketing officer and center leader of marketing and communications Conference Board
Chief marketing officer Goldman Sachs
President DKC
Founder World in 2020+ Project
Fiona Carter is an ardent proponent of gender and racial equality in the workplace—and she’s doing something about it. As Goldman Sachs’ chief marketing officer, Carter oversees global marketing, advertising, sponsorship, social media and relationship management for the firm. In addition, she sits on the board of advisers of Launch With GS, the investment bank’s $500 million commitment to companies with diverse leadership. Recently, she played an integral role in the launch of One Million Black Women, an initiative that addresses the gender and racial biases faced by that demographic. Carter, who previously held senior roles at AT&T Communications and Omnicom, co-chairs SeeHer, a group that works to improve how the media portrays girls and women.
When Sean Cassidy was ranked No. 4 on The Observer PR Power 50 list for 2020, he deserved the honor. The president of public relations agency DKC had handled several major campaigns that year, including guiding NYU Langone Health through media scrutiny during the pandemic and helping the American Museum of Natural History through the decision to remove a statue of Teddy Roosevelt. Cassidy, who has proved himself an able leader with uncommon media savvy, has steered DKC through an era of growth since taking the helm in 2004. He is on the board of directors of the Children’s Health Fund, which works to secure for all children the care and support they need to meet their potential.
Professor Angela Chitkara was rather prescient in 2016 when she began working on research related to diversity, equity and inclusion and the risks to organizations when they are lacking. She’s now founder of the World in 2020+ Project, which focuses on the ways public-private partnerships can be leveraged to improve the world. She is vocal in her belief that environmental, social and governance communications are the future in the corporate sphere. Chitkara discusses issues related to DEI and ESG with senior executives from various industries on her podcast, ESG Interactions: Doing What We Say Matters. In addition, she is working on a project related to the recruitment of Asian American Pacific Islanders in the public relations industry. She is on the faculty of Columbia University.
ENT and Allergy Associates, the largest practice within that specialty nationwide, has grown from three locations to 44 under Jason Campbell’s guidance. As its senior director of marketing and business development, Campbell plays a crucial role in all its branding efforts while reporting to its most senior C-suite staff. He manages a suite of marketing and advertising undertakings: TV, radio and print ad planning, strategy and production; social media management; search engine optimization strategy; public and media relations; special events; physician recruitment; website development; and reputation management. Despite having a full plate, Campbell finds time for community involvement. He participates in initiatives for the American Cancer Society and the Hearing Loss Association of America.
Chiqui Cartagena arrived at nonprofit business membership and research association the Conference Board—where she served until recently as chief marketing officer and center leader of marketing and communications— with remarkable credentials. She previously had stints at Universal Communications, Story Worldwide, Meredith Corp., the Ad Age Group, TV Guide, Time Warner and Telemundo, among other organizations. At the Conference Board, Cartagena helped develop an initiative to drive business executives to address social, educational and economic inequities at their companies. She also worked on the launch of several new reports on consumer dynamics and spending. Cartagena is on the Conservation Lands Foundation’s board of directors.
THE MEAN ANNUAL WAGE FOR PUBLIC RELATIONS SPECIALISTS AS OF 2020 WAS $71,940. FOR MARKET RESEARCH ANALYSTS AND MARKETING SPECIALISTS, THAT FIGURE WAS $73,970. —U.S. BUREAU OF LABOR STATISTICS JENNIFER CONNELLY
MELISSA CONNER
DANA CRANE
IURIJ CUSSIANOVICH
GINA D’ANGELO-MULLEN
Founder and executive committee chair JConnelly
Partner Jennifer Bett Communications
Social media director, marketing Sterling National Bank
Creative and marketing director MetaProp NYC
As a partner at Jennifer Bett Communications, Melissa Conner is deeply involved in the public relations firm’s commitment to supporting female-owned enterprises through a nontraditional approach to brand-building. Since joining JBC in 2014, Conner has worked with venture-backed startups in the fashion, beauty, health and wellness, food and beverage, consumer technology and home industries. Conner, dedicated to philanthropic and social causes, has organized park cleanups and food bank volunteering initiatives and instituted Juneteenth and Election Day as companywide holidays. She contributes frequently to industry conferences, and Forbes and Entrepreneur have profiled her.
Dana Crane has a history of propelling enterprises, agencies and startups to success through social and marketing platforms. As social media director at Sterling National Bank, Crane is doing that once again. Recently, she launched Sterling’s social media channels; increased its brand, product and service awareness; and improved its brand reputation and client satisfaction levels. Crane previously was a founding manager of Reputation.com’s social media team, a role in which she managed its international business accounts and served Ford, General Motors and Henry Schein, among others. Earlier, she held positions at Behrman Communications and Attention Global, where she managed content for beauty and entertainment brands.
Last year Iurij Cussianovich coordinated the placement of more than 160 stories in publications such as The New York Times, The Wall Street Journal, Politico and Forbes for MetaProp NYC and its portfolio companies. As the creative and marketing director for the property technology–focused venture capital firm, he is responsible for the strategies, social media campaigns and public relations initiatives of seven brands. Internally, Cussianovich is credited with establishing marketing and communications procedures, brand guidelines and governance for MetaProp. He is founder of the firm’s environmental, social and governance committee and leads a subcommittee that addresses pandemic-induced remote-work realities.
Director of marketing and communications CareMount Medical
Executives in the financial services, entertainment, food and beverage, and technology industries turn to Jennifer Connelly’s eponymous public relations firm, JConnelly, for communications support. As its founder and executive committee chair, she dispenses strategic counsel on brand communications, business strategy, media relations and crisis management with her signature direct style. Connelly’s firm, which operates in several offices across the country, was recently named to Forbes’ America’s Best PR Agencies list for 2021. Connelly herself has received numerous accolades from PR News and NJBiz. Passionate about paying it forward, she provides pro bono public relations support to Feeding America and the Rodney King Foundation, among other causes.
Longtime communications expert Gina D’Angelo-Mullen specializes in advising organizations in the health care industry. As director of marketing and communications at CareMount Medical, a multispecialty medical group in the New York metropolitan area, D’Angelo-Mullen leads marketing campaigns that have resulted in increased market share. During the pandemic, she led marketing efforts related to Covid-19 that informed patients and clinicians about virtual visits, testing, vaccines, safety procedures and the like via social media, e-newsletters, advertisements and media coverage. As leader of CareMount’s community outreach program, she oversees events, donations and initiatives involving various charities. Last year D’Angelo- Mullen made Hudson Valley magazine’s top Women in Business list.
20 | CRAIN’S NEW YORK BUSINESS | May 24, 2021
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We’re proud to have Alessandra Simkin recognized as part of Crain’s Notable in Marketing and PR. Congratulations to all of this year’s honorees.
“At Empire, we are on a mission to materially and measurably improve the health of all New Yorkers. Our mission gives me an incredible platform to drive change through communications and I’m proud of what our team is accomplishing together to raise awareness about important health issues impacting our communities.” Alessandra Simkin Public Relations Director Empire BlueCross BlueShield
EmpireBlue.com
© 2021 Empire. Services provided by Empire HealthChoice HMO, Inc. and/or Empire HealthChoice Assurance, Inc., independent licensees of the Blue Cross and Blue Shield Association. Serving residents and businesses in the 28 eastern and southeastern counties of New York State.
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CRISTINA J. DINOZO
ANDREA DUARTE
STACEY FEDER
MATTHEW FENLEY
HUNTER FRICK
Senior director of brand marketing Yotpo
Director of integrated communications Shiseido Americas
Chief business development officer Allure Group
Chief marketing officer Brown Harris Stevens Development Marketing
At e-commerce marketing platform Yotpo, Cristina Dinozo’s job is to amplify narratives and generate excitement. As senior director of brand marketing, Dinozo oversees the organization’s content marketing, programming, communications and employer branding. Among such initiatives is Yotpo’s Amazing Women in eCommerce program, which celebrates the accomplishments of women pushing boundaries in the industry and raises funds—$40,000 to date—to support an emerging generation of female business leaders. Dinozo is a member of the company’s diversity, equity and inclusion task force, which promotes inclusivity and raises funds to support Black Lives Matter, among other groups. She previously worked in a public relations capacity at the Magazine Media Association, a trade organization.
Andrea Duarte is credited with garnering significant consumer engagement and delivering innovative content for global beauty company Shiseido Americas. As director of integrated communications, Duarte is responsible for the digital strategy of six brands—a role that has her coordinating social and traditional media programming and communicating with brand holders. Duarte, who often participates in global and corporate task forces, garnered significant press coverage for her brands during the pandemic, securing dot-com placements in Elle, Vogue and InStyle. She is involved in Shiseido’s Beauty of Helping Others campaign, which promotes volunteerism, and she has led park conservatory cleanups and Girl Scout mentorship programs. The Fragrance Foundation named Duarte a 2021 notable.
Chief marketing officer Hudson Yards Senior vice president of marketing Related Cos.
Matthew Fenley helped steer skilled-nursing network the Allure Group through the darkest era in memory for the senior living community. As its chief business development officer, Fenley oversees admissions, marketing and business development efforts for the group—but in 2020 he repurposed his marketing team to help the network and its member families cope with the pandemic. He established a family call line that enabled worried relatives to check on the welfare of residents, fielded media inquiries and stayed in close contact with elected officials. Fenley also chartered a parade float for Nurses Week to celebrate the frontline staff at several New York City hospitals. He is on the board of the East Side Council on the Aging, among other organizations.
Hunter Frick is the creative mind behind the branding of myriad new residential real estate developments in New York City. As chief marketing officer at Brown Harris Stevens Development Marketing, which works on the marketing, sales and leasing of real estate developments, Frick collaborates with professionals in the branding, design, architecture and art spaces to create a unique brand for each project. He is credited with several innovations in amenity design, including stroller valets and personal butler closets, and in the use of new technologies such as projection mapping onto 3D-printed neighborhood maps. Frick is a guest speaker at New York University’s Schack Institute of Real Estate.
Stacey Feder knows better than most how to build neighborhood-size brands from scratch—she’s been doing just that most of her professional life. The senior vice president at The Related Cos. has overseen marketing for Hudson Yards since shortly after the historic real estate development broke ground on Manhattan’s West Side. Today, in her dual role as Hudson Yards’ chief marketing officer, she oversees everything from master brand strategy and sponsorship sales to events and tenant communications. In earlier urban-enhancement gigs, Feder worked on such landmark destinations as South Street Seaport in New York, Faneuil Hall in Boston and Bayside Marketplace in Miami. At Related, Feder also oversees the private real estate developer’s support of various cultural and charitable causes.
NATIONWIDE, THE PR INDUSTRY EMPLOYED APPROXIMATELY 270,000 PEOPLE IN 2019. —BUSINESS INSIDER
MARÍA GARCÍA BAREA
BERENICE GONZALES
ARCHIE GOTTESMAN
KIRSTY GRAHAM
LISA GREINER
Global marketing manager, social and digital media Interbrand
Director Havas Formula
Co-founder and chief executive officer JewBelong.com
Chief executive officer, global public affairs and health practices Edelman
Senior director of institutional communications NYU Langone Health
Keen to understand how digital realities are changing media and business landscapes, María García Barea moved from Spain to the United States in 2014. Now a global marketing manager at the consulting titan Interbrand, she has become something of a pioneer in the space. Since joining the company, Barea has developed a distinctive social and video strategy that concentrates on producing thought leadership and branded content for renowned C-suite professionals. In the past year she worked on the creation of Business Unusual, a documentary that explores how companies have affected the pandemic; the growing social, environmental and racial justice movements; and technological innovations. Barea previously was a producer and TV reporter for Television Española, the largest audiovisual group in her native country.
Berenice Gonzales moved from Peru to the United States as a teenager to study communications—and she’s been excelling in public relations ever since. From the start, Gonzales, director of public relations agency Havas Formula, has demonstrated an interest in developing programs that appeal to the 21st-century multicultural market in general and the Hispanic market in particular. Wielding expertise in the development of PR programs and strategic guidance, she has worked with TurboTax and Chase, among other major organizations. She previously held a role in Havas’ Hispanic division, which represents Fortune 500 companies seeking to reach the Hispanic market in the United States. Gonzales has been the PR and marketing co-chair of the New York chapter of the Hispanic Public Relations Association.
Archie Gottesman can boast about rebranding one of the oldest religions in the world: Judaism. Inspired by a rabbi who noted that “Judaism is a great product” that is poorly marketed, in 2017 Gottesman founded JewBelong .com, an organization that works to rebrand the religion through humorous ads, billboards and digital marketing. It’s a strategy that is to some degree working: To date, the group has more than 400,000 users. Gottesman also oversaw branding work for Manhattan Mini Storage, whose memorable, tongue-in-cheek advertisements are grounded in social commentary. She previously chaired the Animal Haven Shelter. Gottesman is on the boards of the Democratic Majority for Israel, the Israel on Campus Coalition and the JCC Association of North America.
Kirsty Graham has been thinking globally for quite some time. Early in her career, Graham spent 16 years in the New Zealand Foreign Service working on a host of economic, security and trade issues in various postings. She has since pivoted to public relations and communications consultancy Edelman, where she is chief executive officer of the global public affairs and global health practices. In these roles, Graham leads an international network of more than 600 health care and public affairs professionals, helping governments, nongovernmental organizations and companies manage risk and communicate effectively with their stakeholders through policy and public affairs campaigns.
With the goal of supporting the clinical, research and educational missions of NYU Langone Health, Lisa Greiner develops and implements internal and external communications plans for the academic medical center. As its senior director of institutional communications, Greiner is its official media liaison. She manages communications for its academic and executive officials. Issues, crises and situations that Greiner has had to steer NYU Langone through include adverse patient outcomes, infectious disease outbreaks, natural disasters and cyber attacks. She promotes the thought leadership of NYU Langone executives by arranging interviews with top-tier outlets, such as The New York Times and The Wall Street Journal, and creates crisis-management blueprints to be used in future emergencies.
22 | CRAIN’S NEW YORK BUSINESS | May 24, 2021
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C O N G R AT U L AT I O N S
KAREN ZABARSKY
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RISA HOAG
JUSTIN HUEBENER
NAOMI HUNG
JONATHAN HUNT
JILL JACOBS
President GMG Public Relations
Senior vice president L&L Holding Co.
Director Bevel
Chief marketing officer Friedman
Risa Hoag has accomplished a significant amount in her more than three decades in public relations and marketing. After serving as a director of public relations at Ernst & Young, where she was responsible for media placements, feature articles, press releases and market research, she founded GMG Public Relations in 1991. But just as impressive as Hoag’s professional credentials is the scope of her work for nonprofit organizations. Her past and present roles have been with the Greater Nanuet Chamber of Commerce, the Rockland Business Women’s Network, the Rockland County chapter of Meals on Wheels, the Westchester Association of Women Business Owners, and the Orange and Rockland Community Investment Committee, among other organizations. Hoag also has received several community service awards.
Justin Huebener fuses commercial real estate expertise with a communications background to deliver exceptional results for L&L Holding Co. As the senior vice president of the real estate investment group, he develops and executes the marketing and branding strategy for its portfolio of commercial properties. Those include some of New York City’s largest and most cuttingedge developments, such as 425 Park Ave. For that project, Huebener’s marketing program highlighted the development’s role in the “healthy buildings” movement—a branding angle that resulted in the project being featured in top real estate and architecture publications. Huebener, an advocate for diversity and inclusion efforts within the industry, sits on the diversity committee of the Young Men’s/Women’s Real Estate Association of New York.
Naomi Hung brings a specialist’s perspective to the public relations firm Bevel, where she is the New York director and head of the investor relations and communications advisory practice. Having spent time at Goldman Sachs and JPMorgan, she found that her niche is financial services— and she advises leading companies in the fintech, venture capital, consumer brands and technology industries. Hung is credited with launching the firm’s investor relations practice, a goal of which is to provide strategic support to female or otherwise diverse founders and investors. She has been involved in various advocacy groups for minorities. In addition, Hung is a regular volunteer at a soup kitchen and food pantry on the Lower East Side.
Executive vice president of marketing Complex Networks
With Jonathan Hunt’s help, media and entertainment company Complex Networks has transformed into an industry disruptor. As its executive vice president of marketing, Hunt leads the company’s marketing, public relations, business intelligence and audience development teams on business-to-business and business-to-customer efforts and initiatives to engage with Complex Networks’ brands and products. He has been credited for his marketing of the organization’s hit TV series Hot Ones: The Game Show. This past year Hunt led efforts at the company to provide Covid-19 relief to those in need. Hunt, who has previously worked in a similar capacity at National Geographic, Vox Media and Vice Media, is a proud supporter of the Stuttering Association for the Young.
In the six years since Jill Jacobs joined Friedman as its chief marketing officer, the accounting and business consulting firm has grown dramatically. Jacobs, an innovative branding professional, leads marketing strategies related to social media, thought leadership, search engine optimization and integrated campaigns. In response to the pandemic, she organized a task force of Friedman executives that produced timely articles, videos and webinars. That initiative was predicated on her belief in the importance of providing content that would allay the business community’s concerns. Jacobs chairs the philanthropy program Friedman Gives Back, a position that has her leading various fundraising and volunteer efforts, and she has been intimately involved in Friedman’s diversity and inclusion initiatives.
IVY LEE (1877–1934), THE ROCKEFELLER FAMILY ADVISER CREDITED WITH INVENTING MODERN PUBLIC RELATIONS, WROTE THE FIRST TRACT TO EXPOUND ON THE CONCEPT (DECLARATION OF PRINCIPLES) AND ISSUED THE FIRST PRESS RELEASE. —NEW WORLD ENCYCLOPEDIA
JAMIE JOYCE
SHIRA KNISHKOWY
NORAH LAWLOR
BRANDON LEVESQUE
RAYMOND P. LEWIS
Managing director Rubenstein
PR and communications manager Spotify
Founder and principal Lawlor Media Group
Director of public relations and communications Newmark
Owner RP Lewis & Associates
Jamie Joyce, who has worked in the marketing industry for a quarter-century, has the expertise to show for it. As a managing director at communications powerhouse Rubenstein, he leads a team that formulates innovative digital strategies for law firms, international corporations, entertainment companies, sports teams, educational institutions, nonprofits and public figures, among others. Across the board, Joyce excels at helping clients achieve their communications goals through a mix of audience targeting, content creation and channel activations. He previously worked at the public relations firm Fenton, where he was involved in campaigns for Facebook, Warner Bros. and the National Institutes of Health. Joyce is a board member of the Friends of Governors Island.
Shira Knishkowy’s career in the music industry can be traced to her attendance at punk rock shows as a suburban Connecticut teen—but these days, she’s a lot more than an avid concertgoer. Knishkowy is a public relations and communications manager at audio-streaming service Spotify, where she has led trade and consumer press campaigns, launched artist-facing products, executed artist-partnership campaigns, engaged in playlist marketing efforts and worked on acquisitions and partnerships. Knishkowy is particularly adept at storytelling, which Spotify uses to promote emerging artists and genres. She gained experience in the music PR industry during stints at Big Hassle Media and Partisan Records.
Norah Lawlor entered the public relations space while studying journalism in Canada, when she founded a modeling agency and began producing (and presenting) a fashion and entertainment news weekly on television. Following that, she began providing public relations and strategic marketing services to the nightlife, beauty, health and wellness, hospitality, nonprofit and real estate industries in New York. In 2000 Lawlor founded Lawlor Media Group, the luxury lifestyle public relations and marketing agency where she serves as founder and principal. The firm represents celebrity, corporate and nonprofit clients and has been lauded for its exceptional work with clients in the Hamptons, having received the Dan’s Papers Best of the Best award multiple times.
Brandon Levesque has accomplished quite a bit since joining Newmark less than two years ago. As director of public relations and communications at the commercial real estate advisory firm, he is charged with amplifying the voices of the firm’s members in the tristate area. To that end, Levesque has built a collection of professionals to serve as expert representatives across media platforms. In addition, he has forged robust relationships between Newmark and local media outlets, resulting in the promotion of the firm’s assorted business lines. Levesque, an active member of the LGBTQ community, is a committed member of Out Professionals, a nonprofit LGBTQ networking association.
Raymond P. Lewis is a sophisticated public relations professional with a deep devotion to his local community. For more than two decades, he has owned and operated award-winning PR firm RP Lewis & Associates in Harlem, where he is a global event marketing and public and community relations consultant. Outside work, Lewis is a founding team member of Harlem EatUp!, which promotes the Harlem community and its restaurants, and he is active with local precincts of the New York Police Department. During the pandemic, Lewis organized food giveaways in East Harlem and did public relations work for faithbased organizations to publicize updates on the coronavirus and available vaccines.
24 | CRAIN’S NEW YORK BUSINESS | May 24, 2021
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JOE LOBELLO
JIM MANDLER
JOHN MARINO
KRISTIN MAVERICK
PATRICK MCCARTHY
Founder and chief executive officer LoBello Communications
Senior director for media relations NYU Langone Health
President Marino PR
Vice president of social strategy 360i
Unlike the founders and chief executive officers of most other public relations organizations, Joe LoBello personally leads every client engagement at his boutique agency, LoBello Communications. Fueled by LoBello’s decades of public relations and marketing experience, the firm, which specializes in the technology and financial services sectors, has grown exponentially since its founding in 2017. To provide opportunities for students and recent graduates during the pandemic, the firm doubled its amount of paid interns. LoBello is acting president of the board of Queens Council on the Arts, which promotes the arts in Queens County, and the organizer of TEDxLIC, the branch of TEDx in Long Island City.
For nearly four decades, Jim Mandler has been in communications roles at some of the largest health care organizations in the region, including Continuum Health Partners, Mount Sinai and, currently, NYU Langone Health. As senior director of media relations for that health system, Mandler has in recent months been in the proverbial hot seat: He is the primary media contact regarding NYU Langone’s Covid-19 response. Mandler is credited with publicizing NYU Langone’s new Center for Psychedelic Medicine, which will expand research in this growing field, and with raising awareness of its Perlmutter Cancer Center. Through the Family Health Centers at NYU Langone, he is a staunch advocate for providing quality care to the uninsured and underinsured.
During John Marino’s executive tenure at Marino PR, the firm’s client base has doubled, and it has been ranked repeatedly by The Observer as one of the most powerful public relations firms in the nation. As president of the family-run organization, Marino has retained some of its largest longterm clients—McDonald’s, New York University and Chelsea Market, among others—and overseen the creation of its digital-services unit. Marino, one of the first to see the opportunities in the burgeoning cannabis industry, moved to establish his firm as a top public relations destination in the space. In 2020 he led a robust campaign aimed at ensuring that local legislation would be enacted to aid small businesses struggling in the pandemic.
Kristin Maverick is no stranger to industry plaudits: She’s been named to Ad Age’s list of Women to Watch and to Business Insider’s list of the 30 Most Creative People in Social Media, among other recognitions. As vice president of social strategy at creative and media agency 360i, she generates innovation and growth across the organization through influencer marketing and other social strategies. Maverick pioneered one particular model that has wildly expanded the social presence of Oreo and Sour Patch Kids. She previously worked at creative collective company Forsman & Bodenfors and as the senior director of digital marketing for jewelry brand David Yurman.
Senior vice president and head of North America marketing and martech City National Bank
Patrick McCarthy has proved a godsend for City National Bank during the pandemic. As its senior vice president and head of North America marketing and martech, he typically leads a team responsible for its brand marketing, content development, digital marketing and social media campaigns. But with the world turned topsyturvy this past year, McCarthy and his colleagues worked on the redesign of a banking app, which was very well received by City National clients. In addition, he contributed to the development of an online portal that enabled the bank to process Paycheck Protection Program loan requests. McCarthy has served as an adviser to Out in Tech, the largest nonprofit group of LGBTQ+ tech leaders in the world.
Agility. Creativity. Excellence.
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KAREN MCFARLANE
DARA MCQUILLAN
THOMAS MELILLO
GREG MONDSHEIN
RACHEL NOERDLINGER
JE
Chief marketing officer Kaye Media Partners
Chief marketing and communications officer Silverstein Properties
Director of marketing and strategic planning St. John’s Episcopal Hospital
Co-founder, managing partner SourceCode Communications
Partner Mercury
Fo an Pr
Among the crowning glories of Dara McQuillan’s career was working on the construction, marketing and leasing of 3, 4, and 7 World Trade Center. Then again, as chief marketing and communications officer at Silverstein Properties, he routinely leads large-scale marketing and public relations campaigns for the real estate development and investment firm. McQuillan is credited with launching numerous websites and social media channels for those purposes. He also works with journalists, writers, artists, filmmakers and photographers to document Silverstein’s rebuilding projects. Since the pandemic began, McQuillan has volunteered with Covid Straight Talk, a campaign focused on raising awareness of public safety measures appropriate for the workplace.
Thomas Melillo recently played a crucial role in opposing a New York state Department of Health proposal that would have downsized St. John’s Episcopal Hospital in Queens to a “micro hospital,” possibly resulting in up to 1,000 job losses. Melillo, the director of marketing and strategic planning, who is often involved in such campaigns, is credited with engineering an effort to rebuild strained relationships with local media and increase awareness of the hospital’s services through press releases and cover stories. Partially because of his efforts, during the pandemic The New York Times produced a documentary chronicling Covid-19’s effect on St. John’s and the surrounding community—engendering discussions on health care disparities in underserved populations. Melillo formerly was a representative of the Community Advisory Board at Coney Island Hospital.
Since its founding in 2017, public relations firm SourceCode Communications has been the recipient of accolades from Adweek, PRovoke, PRNews and Forbes, among others. That’s in part because of the talent of co-founder and managing partner Greg Mondshein, who for nearly two decades has grown consumer tech companies through his bold campaigns. Eager to make a social impact on the tech industry, in 2020 the firm launched the Diversity Marketing Consortium, an eight-agency collaboration providing pro bono support aimed at raising minority voices, and WeRaise PR, a public relations agency that advances working mothers in the industry. Mondshein sits on the University of Florida’s Public Relations Advisory Council.
Rachel Noerdlinger is the first Black female partner at public strategy firm Mercury. She leads strategic communications and crisis management, specializing in community engagement and public affairs. In her three decades in communications, she has been featured in The New York Times, The Washington Post and the New York Daily News. That’s in part because of her social justice efforts. She is a board member of the New York Civil Liberties Union and the publicist for the Rev. Al Sharpton and his National Action Network. Noerdlinger, who has arranged press coverage of injustices perpetrated against Black men, routinely mentors women of color entering the public relations industry.
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During her 25-year career, Karen McFarlane has worked with companies in the software, technology, artificial intelligence, finance, professional services, education and entertainment industries—and has proved a solutions-focused marketing professional throughout. These days McFarlane is chief marketing officer at Kaye Media Partners, a business-to-business marketing practice, and she holds the same title at boutique creative agency Lettershop through a strategic partnership. McFarlane, who is on several boards, is president of the American Marketing Association of New York, which has earned four Chapter Excellence Awards during her tenure. She co-leads a team at the organization that is heading nationwide efforts to promote diversity, equity and inclusion in the marketing space.
Pa pu co In offi pa br co m of w fu em m Sh Fu hi sp un of So fo co
EVIDENCE OF BRANDING EFFORTS DATE BACK TO ANTIQUITY: POMPEI’S UMBRICIUS SCAURUS, A MANUFACTURER OF FISH SAUCES, INSCRIBED THE VESSELS HOLDING HIS PRODUCTS WITH “EX OFFICINA SCAURUS” (“FROM THE SHOP OF SCAURUS”). —ARCHAEOLOGY
DIANE PAOLETTA Chief marketing officer Marks Paneth
Clients of accounting firm Marks Paneth needed support and updated information during the pandemic—and Diane Paoletta, its chief marketing officer, wasted no time in filling those needs. Paoletta led initiatives to meet the challenges of the hour, such as an internal committee focused on streamlining communication with clients, the firm’s Pandemic Resource Center and a webinar series providing guidance for businesses as they reopened. The 25-year veteran of the marketing and business development industries is working on efforts to publicize how Marks Paneth helped its clients navigate the difficulties of the past year. Annually, she leads a class on networking fundamentals at the firm. And industry trade journals have published her work.
MICHAEL PAPAGIANAKIS Chief of staff New York Building Congress
Alive to the economic and opportunistic benefits that infrastructure and real estate development projects bring to a community, Michael Papagianakis provides a dynamic voice to the individuals and organizations involved in such undertakings. As chief of staff at the New York Building Congress, a membership association that supports the construction industry in the New York metropolitan area, Papagianakis works to ensure that elected officials and the public have a positive awareness of these developments. His industry knowledge and considerable skill result in powerful reports, op-eds, media coverage and advocacy efforts. Papagianakis, who has appeared on City & State’s 40 Under 40 list, is involved in advocacy efforts aimed at supporting minorityand women-owned business enterprises.
KATIE PERRY
CHRIS PINEL
GINA PROIA
JI
Vice president, marketing Public.com
Global head of agency for the Americas Liftoff Mobile
Executive vice president, chief marketing and communications officer CIT Group
Ch Pa
Chris Pinel is among the relatively rare Latino leaders in the marketing and ad-tech spaces, so his championship of diversity stems from a real place. As global head of agency for the Americas at Liftoff Mobile, a mobile app marketing platform, he provides expertise that spans marketing, business strategy, operational management, digital technology and entrepreneurial ventures. Throughout his career, Pinel has pushed for greater hiring diversity and better inclusion education. He regularly mentors young professionals from diverse socioeconomic backgrounds, and as an angel investor, he personally invests in organizations led by minority founders. Pinel, who has forged enduring partnerships with Fortune 100 companies, has received several industry awards.
In the various roles Gina Proia has held at General Motors, Ally Financial and now CIT Group, she has proved the enormous role that marketing and public relations can play in improving business results. As executive vice president and chief marketing and communications officer at the financial holding company, she leads CIT Group’s branding, marketing, advertising, communications and social responsibility initiatives. Among Proia’s significant achievements is a companywide brand refresh, which led to a 20% increase in awareness. She has created strategic environmental, social and corporate governance and corporate social responsibility programs for the company. In addition, she chairs the Northeast board of Operation Hope, which works to fight poverty and empower inclusion for low- and middle-income individuals.
Katie Perry is on a mission to demystify the world of investing and bring financial literacy within reach for all. As vice president of marketing at Public.com, the first social investing app, Perry has led numerous releases designed to do just that. In February, for instance, Public launched a publicity stunt in which Michael Bolton sang a ballad encouraging investors to “break up” with their brokerages and explore Public—a marketing effort that garnered attention from CNN and The New York Times, among other media outlets. Perry is founder of Public Talks, a free workshop series on personal finance and investing, and she frequently shares her insights as a sought-after speaker in the tech and marketing industries.
26 | CRAIN’S NEW YORK BUSINESS | MAY 24, 2021
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Jim in bl bu
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JEN PROSEK
MONIQUE RAFFERTY
JONATHAN ROSEN
JESSICA SCHAEFER
HELEN SHELTON
Founder, chief executive officer and managing partner Prosek Partners
Vice president of business development and marketing Newmark
Principal, co-founder BerlinRosen
Chief executive officer Bevel
Chief diversity officer Finn Partners
Recognizing that the financial services sector would require proactive marketing programs similar to those in the consumer sector, Jen Prosek founded her eponymous firm more than a quartercentury ago. Today, Prosek Partners is a top international public relations and financial communications consultancy. In her role as chief executive officer and managing partner, she provides senior brand management and communications counsel to major clients. Prosek, a proponent of philanthropy and charitable work, offers an employee fundraising match and allots employees several hours each month to spend volunteering. She established the Opportunity Fund, an initiative aimed at hiring more diverse talent. Prosek speaks frequently at events and universities. She is on the board of trustees of the Arthur W. Page Society, a professional association for senior public relations and communications executives.
Since joining Newmark in 2019, Monique Rafferty has led a significant overhaul of marketing operations at the commercial real estate advisory firm. Intent on embracing technology to improve processes, the vice president of business development and marketing launched a cloud-based project management platform and trained her team to create custom websites in-house. In addition, Rafferty inaugurated an internal monthly newsletter to inform brokers of ways her team’s services could be used to improve client satisfaction. Her early adoption of technology helped Newmark rapidly change to a digital model of business during the pandemic. Rafferty has worked to improve employees’ knowledge of opportunities for civic engagement by providing voter information and promoting webinars with mayoral candidates.
From Samsung, Singapore Airlines and the Ford Foundation to Audible, Macy’s and the Lincoln Center for the Performing Arts, organizations across a broad range of industries turn to BerlinRosen for communications support. That’s in part because of the expertise of the principal and co-founder of the communications and public relations firm, Jonathan Rosen, who leads its strategic communications, crisis management and media relations. With him at the helm, BerlinRosen has received industry recognition from Forbes and City & State, among others. Rosen himself has received accolades from Crain’s and PRWeek. During the pandemic, he was involved in the formation of NYForever, a nonprofit devoted to creating a robust future for the city by engaging New Yorkers in charitable efforts benefiting its homeless, its workers and its parks.
Perceiving an industry void, Jessica Schaefer in 2017 founded Bevel, a public relations consultancy that works with venture capital funds and technology and fintech brands. As chief executive officer of the firm, she oversees communications and public relations strategies for its portfolio of clients, leveraging traditional and digital media in the process. Schaefer, who gained valuable communications skills during her time at the venture capital arm of the hedge fund Point 72, has an extensive network of fintech investors, entrepreneurs, CEOs, editors and reporters. She is on the board of the Children’s Cancer Recovery Foundation. Schaefer does volunteer public relations work for nonprofits focused on pediatric cancer.
Helen Shelton is a communications professional on a particular mission: to create impactful programs that target the needs of diverse audiences. As chief diversity officer at the marketing agency Finn Partners, Shelton develops campaigns in the health and wellness, lifestyle, retail, entertainment and media sectors while leading sweeping diversity efforts at the firm. She oversees its Actions Speak Louder diversity, equity and inclusion program and its nearly 100-member DEI Committee. During the pandemic, her work for the nonprofit Hip Hop Public Health helped change Covid-19-related behaviors among communities of color hit hard by the virus. Shelton, who was named one of the 25 Most Influential Black Women in Business by The Network Journal, is on the board of the New York Urban League, which empowers underserved individuals to secure education and economic stability.
MARKETING AS IT IS THOUGHT OF TODAY BEGAN DURING THE INDUSTRIAL REVOLUTION, WHEN MASS PRODUCTION COMPELLED PRODUCERS TO SEEK SMARTER WAYS OF LETTING CONSUMERS KNOW ABOUT THEIR GOODS. —HISTORY COOPERATIVE
JIM SHOOK
ALESSANDRA SIMKIN
MELISSA SMITH
WENDY STEINBERG
RONN TOROSSIAN
Chief marketing officer Payability
Director of public relations Empire BlueCross BlueShield
Managing director Ogilvy
Founder, chief executive officer 5W Public Relations
Jim Shook leads growth marketing at a company with an admirable mission: helping small businesses take off. As chief marketing officer at Payability, a funding platform that provides growth capital to sellers and entrepreneurs whose operations are grounded in e-commerce, Shook has overseen the expansion of marketing efforts through virtual events, podcasts and webinars. During the pandemic, he devoted himself to a new content strategy that provided educational materials to online sellers racing to meet the record demand for goods. Efforts such as these have resulted in increased inbound lead volume and brand recognition for the companies. Earlier in his career, Shook founded Dozen Digital, a digital marketing agency.
Motivated by its mission to improve New Yorkers’ health care, Alessandra Simkin joined Empire BlueCross BlueShield during the pandemic. As director of public relations for the insurance giant, she uses her platform to help New Yorkers access health care. In her first six months at Empire, Simkin established a news bureau that has gained coverage in Good Housekeeping, Crain’s New York Business and PRWeek. In addition, she has bolstered the organization’s LinkedIn channels and launched a new internal communications platform at the company. Simkin is credited with a campaign to improve awareness around high blood pressure, spurred by high numbers of excess deaths in New York. She works to improve Empire’s Inclusion and Diversity Council internally and externally.
Melissa Smith believes that earning attention and influence is a highly effective means to achieve business goals. As a managing director at Ogilvy, Smith leads its New York public relations team and specializes in launching and rebranding companies for mass and niche audiences. She is credited with adding new clients such as Zippo, IHG Hotels & Resorts and NFL Consumer Products to Ogilvy’s roster. Smith, who spent a significant portion of her career in multicultural communications, was a founding board member of the New York chapter of the Hispanic Public Relations Association. As president of her block association in Prospect Lefferts Gardens in Brooklyn, she arranges community events and facilitates interactions between residents.
Vice president of communications RiverSpring Living
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Wendy Steinberg is on a mission to change the conversation about aging and dismantle stereotypes of the elderly. As vice president of communications at the Bronx senior health care organization RiverSpring Living, Steinberg is doing that through media relations, crisis communications, social media, website content, thought leadership and marketing. In the past year she has concentrated on pandemic-related communications efforts with residents, family members, staff and the media. In particular, Steinberg developed a continuing webinar to keep families informed, hosted a daily talk show for residents, and celebrated health care workers through the media and employee events. She previously was employed at top-tier public relations agencies, working with brands such as LG Electronics and Barilla Pasta.
Ronn Torossian has been crafting powerful narratives for nearly two decades. He is founder and chief executive officer of independently owned 5W Public Relations, an industry-leading firm that serves clients across the corporate, technology and consumer sectors, among others, with its digital marketing and public relations capacities. Torossian is a communications crisis expert who frequently counsels top executives and entrepreneurs domestically and abroad. He appears often on Fox News and CNBC, and he contributes to Forbes and The New York Observer. Torossian, an author of two books on public relations, is the recipient of a handsome collection of industry awards. He is a board member for several charities.
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REMA VASAN
ROBIN VERGES
President MMC
Senior vice president Rubinstein
Within her first six months at the communications agency MMC, Rema Vasan launched Audiential, a tool that uses proprietary technology for a more precise sort of influencer marketing. That’s the sort of innovation that the president of the company is known for. Vasan oversees MMC’s health care, corporate and consumer practices as well as its earned media, business strategy and analytics. To date, she has led marketing communications for highly recognized brands such as Unilever, Pfizer and GlaxoSmithKline. Vasan, who is committed to empowering women in leadership, is a member of Chief, a network that supports women in senior positions. She was named to PRWeek’s Hall of Femme 2021.
Robin Verges’ expertise is broad and deep: She has extensive firsthand knowledge of public affairs, real estate development, the health care industry, corporate communications, crisis management and special-event production. Verges, who is senior vice president at the public relations titan Rubinstein, has developed strategic publicity initiatives for a roster of clients that includes AT&T, L’Oreal USA, the Mount Sinai Health System, St. Patrick’s Cathedral, New York University Medical Center, the Cathedral of St. John the Divine, the Jewish Community Relations Council of New York and the Apollo Theater. She is a board member for SoHarlem, a nonprofit that works to create equitable opportunities in that neighborhood, and the Publicity Club of New York, the oldest organization nationally for public relations professionals.
CHARECE WILLIAMS GEE Brand director, consumer and entertainment marketing PepsiCo Beverages North America
Charece Williams Gee spearheaded an effort that led to A’ja Wilson becoming the first WNBA endorser for Mountain Dew—it’s the sort of thing she does regularly as brand marketing manager at PepsiCo Beverages North America. In her role Gee aims to cultivate relationships and broker important partnerships. In addition, she uses her position to advance Black talent; she is on the national advisory board of Mosaic, PepsiCo’s Black employee resource group, and in 2020 she was chosen for the organization’s racial equity task force. Gee is credited with arranging an event between PepsiCo and several partners featuring conversations between Black youth and local police officers with the goal of airing concerns and building trust.
TAI WINGFIELD
KAREN ZABARSKY
Executive vice president United Minds
Vice president of design and branding Kushner
Tai Wingfield has the ear of the C-suite executives of many Fortune 500 companies—and she puts that to good use. As executive vice president at United Minds, a Weber Shandwick management consultancy, Wingfield leads its diversity, equity and inclusion offering. She works with top-level executives to design and deploy diversity, equity and inclusion strategies, and she has helped clients navigate discrimination lawsuits, address cultural vulnerablilites and build DEI narratives. In addition, Wingfield works with the Weber Shandwick network to create innovative media approaches to help organizations communicate their DEI commitments. She is senior vice president of communications at the Center for Talent Innovation, a diversity think tank, and co-author of the book Ambition in Black and White: The Feminist Narrative Revised.
With each project she undertakes, Karen Zabarsky strives to make urban areas more vibrant and functional. As vice president of design and branding at the real estate giant Kushner, Zabarsky leads public relations and design efforts for a multibillion-dollar real estate development portfolio. She is responsible for PR efforts related to new acquisitions, project milestones and crisis management. In addition, Zabarsky manages branding and press for all new developments and leads activation marketing campaigns. Earlier, she co-founded and led branding for the Tanks at Bushwick Inlet Park, a pro bono proposal to transform oil tanks into a public park. Zabarsky devotes a significant portion of her time to public relations and marketing efforts for nonprofit cultural and social justice organizations.
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28 | CRAIN’S NEW YORK BUSINESS | May 24, 2021
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PUBLIC & LEGAL NOTICES 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 Formation of RAG MEDICAL, PLLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 03/29/21. Office location: NY County. SSNY designated as agent of PLLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Medical. REXUAN Properties New York LLC filed w/ SSNY on 4/23/21. Office: New York Co. SSNY designated as agent for process & shall mail to: 40 W 116th St., #A712, NY, NY 10026. Purpose: any lawful. Folium Ware LLC. Articles Of Organization filed with Secretary of State of New York (SSNY) on 03/12/21. Office: New York County. SSNY has been designated as agent of LLC upon whom process may be served. SSNY shall mail a copy of process to the LLC, 118W 123rd St Apt 31, New York, NY 10027. Purpose: Any lawful purpose. Notice of Formation of KAMSKY CAPITAL PARTNERS, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/13/21. Office location: NY County. Princ. office of LLC: 563 Park Ave., NY, NY 10065. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Michael Kamsky at the princ. office of the LLC. Purpose: Securities brokerage and related services. 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.
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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 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. 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 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. 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. FORIGRIS LLC, Arts. of Org. filed with the SSNY on 03/01/2021. 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, 1 Columbus Place, Apt N40D, NY, NY 10019. Reg Agent: U.S. Corp. Agents, Inc. 7014 13th Ave., Ste 202, Brooklyn, NY 11228. Purpose: Any Lawful Purpose. DFI Services LLC, Arts of Org. filed SSNY 03/12/21. Office: NY Co. SSNY designated agent of LLC upon whom process may be served & mail to National Registered Agents, Inc., 28 Liberty St., NY, NY 10005, also the registered agent upon whom process may be served. General Purpose.
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PUBLIC & LEGAL NOTICES Notice of Formation of SRJ Beauty, LLC. Arts of Org filed with Secy. Of State of NY (SSNY) on 3/11/21. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 1 River Place, Apt # 1121, New York , NY 10036. Purpose: any lawful act.
NOTICE OF FORMATION of Dilone Consulting Services LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 9 /23/20. Office location: NY County. SSNY designated agent upon whom process may be served and shall mail copy of process against LLC to 19 Cumming Street, Apt 5L, New York, NY 10034. Purpose: any lawful act.
Notice of Formation of Krieger Capital, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 02/24/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Robert Krieger, 228 East 45th St., 5th Fl., NY, NY 10017. Purpose: any lawful activities.
Notice of Formation of GRCC 107th Street LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/02/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Goddard Riverside Community Center, 593 Columbus Ave., NY, NY 10024. Purpose: any lawful activities.
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 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.
LTN1 LAFAYETTE LLC, Arts. of Org. filed with the SSNY on 02/17/2021. Office loc: NY County. SSNY has been designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: Eric D. Sherman, Esq. C/O Pryor Cashman LLP, 7 Times Square, NY, NY 10036. Purpose: Any Lawful Purpose.
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 Qualification of MAROON PEAK ENERGY RESOURCES, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 04/26/21. Office location: NY County. LLC formed in Delaware (DE) on 04/20/21. 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. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.
Notice of Formation of JAMES 555 LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/28/21. Office location: NY County. Princ. office of LLC: 555 W. 23rd St., Apt. S-3E, NY, NY 10011. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office. Purpose: Any lawful activity.
MAY 24, 2021 | CRAIN’S NEW YORK BUSINESS | 29
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measurable economic impact on the city and state once the money starts flowing.” FROM PAGE 1 Landlords and tenants will both money out there,” said Judith Gold- be able to apply for rent relief under iner, attorney in charge of the Legal the OTDA program, and CHIP is foAid Society’s civil law reform unit. cusing on making sure its members “If I’m wrong about that—which know as much about the program could always be true too—then, as possible, Martin said. They can in yes, there’s certainly concern that turn pass the information onto we could be looking at many, many their tenants. evictions starting in September.” There is no way for the program to help either group if people don’t Reliance on relief apply for the aid, Martin noted. “That’s going to be the biggest New York’s previous $100 million Covid-19 rent-relief program, ad- problem: making sure people know ministered by the state Division of how to apply and where to apply,” he said. Homes and Community Cea Weaver, campaign Renewal, gave out about coordinator for Housing $47.5 million to 18,000 Justice for All, said her orhouseholds over roughly nine months and was ganization is focused on roundly criticized for bespreading awareness of the rent-relief program, esing too restrictive. State officials, along pecially among communiwith landlord and tenant ties that have been hit hard advocates, are hopeful DINOWITZ by the pandemic. that the upcoming $2.4 “We’re planning on billion rent-relief program from the spending this summer doing an imstate’s Office of Temporary and Dis- mense amount of education and ability Assistance will be more ef- outreach to tenants,” Weaver said. There is broad agreement in the fective at getting money to the people who need it. There has been real estate world that the OTDA near-universal agreement that the program looks good on paper, but initiative will play the largest role by there also is broad frustration that far in preventing a surge in evic- people still cannot actually apply for relief from it yet. OTDA recently published more details about the program on its website and expects to launch it soon, spokesman Justin Mason said. tions once the moratorium ends. State Sen. Brian Kavanagh said he “It’s huge,” said Jay Martin, executive director of the Community is optimistic about the OTDA proHousing Improvement Program. gram, particularly given how much “It’s helping two classes of folks time the state has had to prepare for here. It’s helping the renters with it. He stressed that tenants who aphuge debts that they’ve accumulat- ply for the relief will be exempt from ed, and it’s helping property own- eviction, at least until the state deers cover costs. It will have a huge, termines their eligibility.
ISTOCK
EVICTION
“AT THE END OF THE DAY, NOBODY WANTS TO BE IN HOUSING COURT”
“I think we’re in a much better place than we were six months ago, before the feds had allocated any meaningful money for rent relief,” said Kavanagh, who represents parts of Manhattan and Brooklyn. The effectiveness of the OTDA program will ultimately determine whether or not the eviction moratorium helped solve a problem or just postponed it, Dinowitz said. “It’s crucial,” he said. “Without the money, all we will have done is put off evictions.”
Supporting players The rent-relief program might be the main line of defense against an eviction surge, but it is not the only step officials have taken. The City Council, for example, recently passed measures designed to guarantee every tenant facing eviction the right to legal representation. The pending end of the eviction moratorium was the impetus
for expanding the right to counsel on a faster timeline, said Councilman Mark Levine, who co-sponsored the legislation with Councilwoman Vanessa Gibson. “The big-picture goal is to ensure that, coming out of this crisis, we don’t enter another crisis: a crisis of evictions and homelessness,” Levine said. “We can avoid that with smart policy, financial relief, legal representation and fairness for tenants in housing court.” The state’s Tenant Safe Harbor Act should help stave off a wave of evictions as well, Kavanagh said. The law states that evictions may not be based on rent arrears that people are unable to pay because of a pandemic-related hardship, and that will remain true after the pandemic is over, he said. “Even if it’s next year, if they can demonstrate that resulted from a Covid hardship, they still owe the money, but they can’t be evicted
based on that unpaid rent,” he said. CHIP and the Rent Stabilization Association both said that a relatively small amount of eviction cases results in tenants actually getting kicked out of their home. Going through the city housing court is an infamously slow, laborious process, and landlords generally view it as a last resort to collect unpaid rent, said RSA Executive Vice President Frank Ricci. “At the end of the day, nobody wants to be in housing court,” Ricci said. “Owners? That’s the last place they want to be. It’s expensive. It’s time-consuming. It’s frustrating.” Housing court officials expect a surge of landlord-tenant cases after the deadline but have yet to finalize plans for how to deal with the added volume. A surge in eviction cases would not necessarily lead to a surge in evictions, Martin agreed. “A supermajority of these cases never get to the stage in which a marshal is sent to put a family out to be homeless,” he said. “There’s rhetoric out there, like, ‘We’re going to be facing a wave of homelessness.’ We just don’t anticipate that to be the case.” Even if a wave of evictions does not materialize the instant the moratorium ends, the city still could find itself struggling with the problem a few months later, Weaver said. The city’s economy remains fragile, she noted, and she anticipates unemployment remaining a problem even as Covid-19 cases hopefully continue to recede. And although the rent-relief program should take care of any rent a tenant has missed during the pandemic, tenants who continue to struggle after it ends will not have any options, she said. “I guess I’m not really worried about a wave of evictions on Sept. 1,” Weaver said. “I’m worried about a wave of evictions on Jan. 1.” ■
REAL ESTATE
These New York City investment trusts are ripe for takeover bids BY NATALIE SACHMECHI
T
he intensity of acquistion offers for real estate investment trusts has picked up in the past few months, according to a recent analysis by Morgan Stanley. The investment bank ranked the 78 real estate stocks that are most likely to get offers from third-party investors within the next year, including ones that have already been approached by people looking to make a deal. Three of the city’s major publicly traded real estate firms were included in the top 17, including Paramount Group, which ranked first; Empire State Realty Trust, which came in third; and SL Green, the city’s largest office landlord, in 17th place. Paramount swiftly rejected a takeover bid in November from activist investor Bow Street Partners, which came in with a lowball cash offer of $9.50 to $10 per share. The
REIT’s portfolio of 15 office towers is concentrated in New York and San Francisco. At one point, its stock price was down 60% during the pandemic, but it has made up some of that and is now 30% below its prepandemic price. “This bid seems to undervalue the company’s trophy assets in New York and San Francisco,” Evercore ISI analyst Steve Sakwa said in a client note at the time of the November announcement. But he added that the firm could still face offers
MaryAnne Gilmartin was tapped to be its interim CEO. Her reign over the firm has since come to an end, and she is now back at MAG full time.
Market cap A smaller market capitalization means a firm is more likely to receive an offer, according to the Morgan Stanley report. Paramount’s currently stands at $2.3 billion, while ESRT’s shares are worth $3.1 billion. But the latter’s revenues fell by $25 million, to $145 million, for the quarter that ended March 31, and annualized rents from retail tenants at the Empire State Building fell by more than half, to $5 million. The number of companies leasing office space there fell by 12, to 157. At 1 Grand Central Place, office tenants dropped by 22, to 164.
MORGAN STANLEY RANKED THE 78 REAL ESTATE STOCKS MOST LIKELY TO GET OFFERS given its smaller size relative to other local REITs. Bow Street came to an agreement in the summer with New Jersey– based REIT Mack-Cali to replace its board. MAG Partners founder
SL Green’s $5.2 billion market Nelson Mills said on the company’s cap landed it further down the list recent earnings call. “The process despite $7.5 million in losses in the includes the Arkhouse group… first quarter of the year amid a which previously announced their sleepy leasing market. During the interest in the company and whom first quarter of last year, the firm we invited to participate in our promade nearly $115 million in profits. cess, as well as other potential But to offset its dramatic reversal counterparties.” of fortune, the company So far Columbia has went on a more than $1 spent $2.4 million on a billion selling spree of its strategic review related to assets to bolster its balthe bid and interest from PERCENTAGE investor groups, the comance sheets. It also has Paramount been enticing tenants pany announced. Group’s stock with shorter lease terms Vornado Realty Trust, is down since and more concessions. with a nearly $8.7 billion the start of the To appease its shareholdmarket cap, came in 26th pandemic. on the list. JLL, whose ers, the firm spent $94 shares are worth $10.5 million to buy back 1.5 billion, ranked 49th. million shares of its stock Self-storage company Cube during the quarter. Columbia Property Trust, which Smart, which recently expanded in is entertaining a $2.2 billion take- the city with a $540 million portfoover bid from Arkhouse Partners, lio of eight sites, was in 41st place, was not included on Morgan Stan- making it more likely than JLL to ley’s list. receive an offer, despite the strength “We are serious about this pro- of the industrials and warehouse cess,” Columbia Chief Executive market. ■
30%
May 24, 2021 | CRAIN’S NEW YORK BUSINESS | 31
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