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

ASKED & ANSWERED Majority-Black group vies to make development history PAGE 16

CRAINSNEWYORK.COM

FIXER-UPPERS Firm remodels dingy units as short-term rentals PAGE 3

NOVEMBER 8, 2021

POLITICS

HEALTH CARE

Mayorelect Adams hints at agenda

Not-for-profit facilities find big business in selling donated blood to hospitals

Promises new approach to law enforcement, more optimistic city

OUT FOR BLOOD

BY BRIAN PASCUS

BY MAYA KAUFMAN

ric Adams, newly elected as the city’s second Black mayor, told Crain’s he plans a return to community-centered policing and to squeeze waste from school budgets. Adams rose from poverty to police captain to the seat of power last Tuesday; he handily defeated Republican opponent Curtis Sliwa, according to unofficial returns from the city’s Board of Elections. The mayor-elect said his story should inspire “the dishwasher who hears there’s no future for him” and hinted at an agenda that includes: ● Broadening police promotion criteria to include recommendations from residents and

he advertisements beckon: “Just one pint of your healthy blood can save up to three lives.” “An hour of your time can mean a lifetime for someone else.” “If you’re looking for a sign, this is it! There’s a CRITICAL NEED.” The pleas present blood shortages as a constant crisis, made even worse during the Covid-19 pandemic. Blood and its derivatives—namely red blood cells, platelets and plasma—indeed are essential to modern medicine and routinely in short supply. And hospital consolidations LIST: Largest and cost-cutting measures THE New York–area have largely left the jobs of nonprofits collecting, processing and PAGE 13 distributing the precious resource to not-for-profit blood centers. NEW YORK BLOOD In an oft-overlooked CENTER and little-known industry, blood centers have become major businesses that depend on a steady stream of product—collected from altruistic donors—that is later sold to hospitals for hundreds of dollars per unit. One player in particular stands out for the way it has turned blood into big

See ADAMS on page 17

See BLOOD on page 26

VOL. 37, NO. 40

NEWSPAPER

A NEW YORK BLOOD CENTER employee prepares donated blood to have its white blood cells removed.

WHO OWNS THE BLOCK

Ritz-Carlton buys into high-end homesharing model PAGE 4

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BUCK ENNIS

PAGE 19

11/5/21 2:11 PM

WEBCAST CALLOUT

Crain’s New York Business builds out digital newsroom team with a promotion and 3 hires

A FAIR ROLLOUT FOR RECREATIONAL MARIJUANA With New York’s legalization of adultuse marijuana expected to be up and running by late 2022, the industry could generate north of $4 billion in overall sales. This translates to $350 million in tax revenue. How can the state ensure that communities that historically had been criminalized by marijuana laws have an opportunity to do business in the emerging industry?

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

BUCK ENNIS

DEC. 15

ARNOLD MILLER

rain’s New York Business has promoted Telisha Bryan to managing editor and hired three journalists from The Wall Street Journal as it invests in digital news and deeper on-the-ground reporting that helps explain how New York City works and how readers can get ahead. The new hires are Anne Michaud, a veteran political reporter, editor and author who will serve as assistant managing editor; Taylor Nakagawa, an editor and audience producer who joins as digital editor; and Brandon Sanchez, a reporter and newsletter curator who joins as a reporter covering climate change, among other beats. Bryan joined Crain’s as copy chief in 2017, following previous stints at Cosmopolitan, Glamour and HGTV Magazine and two years at Ralph Lauren. She most recently served as assistant managing editor and lead editor on the Crain’s digital Health Pulse product. Michaud’s appointment marks her return to Crain’s New York Business, where in the mid2000s she served as an editor and senior political reporter, wrote an influential newsletter and produced dozens of cover stories. She later served as an opinion columnist and editor at Newsday for more than a decade, and is author of Why They Stay: Sex Scandals, Deals, and Hidden Agendas of Eight Political Wives. At the WSJ, Michaud led a team of audience-facing report-

TELISHA BRYAN

ANNE MICHAUD

ers and managed member-retention projects. Nakagawa was an audience interaction producer at the Journal, developing stories and live events in new digital formats. His previous career stops include TechCrunch, where he was an audience analyst, and the Associated Press, where he was an emerging media fellow. Sanchez most recently curated the WSJ Notes on the News and Diversity+Business newsletters. His reporting credits at the Journal range from DNA-test surprises to lobbyists’ nostalgia for small talk during the pandemic to the difficulty of using paid time off. He previously covered politics, culture and religion for America magazine.

TAYLOR NAKAGAWA

BRANDON SANCHEZ

Editor-in-Chief Cory Schouten, who joined Crain’s in June from the WSJ, announced the promotion and new hires to the team last week. “Telisha is a creative and competitive journalist, a team player who elevates her colleagues’ work and an evangelist for our need to reflect and connect with new audiences across the city,” Schouten said. “And we are thrilled to welcome Anne, a savvy journalist and steady editor who knows New York politics as well as anyone; Taylor, an ideas-driven leader and whiz at building and engaging audiences; and Brandon, a thoughtful and resourceful reporter covering a critically important new beat.” — STAFF REPORT

Vol. 37, No. 40, November 8, 2021—Crain’s New York Business (ISSN 8756-789X) is published weekly,except for a combined issue on 1/4/21 and 1/11/21, 6/28/21 and 7/5/21, 7/12/21 and 7/19/21, 7/26/21 and 8/2/21, 8/9/21 and 8/16/21 and the last issue in December. 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. $140.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2021 by Crain Communications Inc. All rights reserved.

IT’S AN HONOR TO SERVE THOSE WHO SERVE US

2 | CRAIN’S NEW YORK BUSINESS | November 8, 2021

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BUCK ENNIS

REAL ESTATE

THE TRADITIONAL MODEL for renting apartments is “inefficient and broken,” said Mishin, seen in a unit his Flatiron District–based firm recently refurbished. He is looking to expand June Homes’ concept around the world.

Startup uncovers gems in tenements

June Homes profits by fixing up dilapidated apartments and renting them to short-term tenants BY ANNE KADET

aniel Mishin, founder and CEO of short-stay apartment rental platform June Homes, recently invited a visitor to see a unit in a Hell’s Kitchen walk-up that he was planning to renovate. “It’s super scary!” he promised. He wasn’t exaggerating. The fifth-floor two-bedroom in a 16-unit 1920s tenement featured peeling lime green paint, rusted radiators, plastic-covered windows and a good amount of trash. The place is typical of the apartments that a growing number of local, small-time landlords are turning over to the care of Mishin’s Flatiron District–based startup. June Homes rents dingy apartments from property owners and refurbishes them on its own dime. It then leases the units directly to tenants, using dynamic pricing to set rates. It main-

tains the units and collects rent from tenants. The landlords, who are often too cash-strapped to renovate the apartments themselves, retain ownership. June Homes guarantees the tenants’ rent to the landlord, retaining a share

AFTER STRIKING A DEAL WITH A LANDLORD, THE COMPANY INVESTS ABOUT $5,000 TO RENOVATE A TYPICAL UNIT of the monthly revenue, typically about 10%. Tenants who rent from June Homes, meanwhile, pay no broker fee or other upfront costs, and can select a rental term

from one to 18 months. They can rent the entire apartment or a single bedroom. They also can choose whether to take the unit unfurnished, fully furnished or something in between. The service caters to digital nomads who are working remotely and hopping from city to city, Mishin said. It also appeals to students and young professionals who are moving to a major city for the first time. About 95% of the units are rented on the basis of a video tour.

Niche markets There are several startups offering flexible, short-term rentals in New York City, but they typically offer luxury housing for high-income professionals. June Homes uses an algorithm to scan listings on StreetEasy and similar websites to find apartments that are renting at below-market rates See RENTALS on page 18 November 8, 2021 | CRAIN’S NEW YORK BUSINESS | 3

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WHO OWNS THE BLOCK

25 W. 28TH ST.

Hospitality sector bets condo-hotel concept in NoMad will help boost the bottom line City’s second Ritz-Carlton buys into high-end home-sharing model BY C.J. HUGHES

1250 BROADWAY This 39-story, block-long office tower, which occupies an angular plot of land, has had several lives. Upon being developed by Cooper-Bregstein Realty in 1970, it courted the garment companies that were once thick in the area. In the decades since, the building has changed identities several times. SL Green sold the glass-and-steel tower to the partnership of Jamestown Properties and Murray Hill Properties in 2008 for $310 million. Global Holdings Management, helmed by Eyal Ofer, shelled out $565 million for the building in 2016. An $85 million makeover that added a two-story amphitheater and other amenities—as well as a new name, NoMad Tower—followed. Roosting at No. 1250 today are Zillow and other tech companies.

1200 BROADWAY This sugar-white Second Empire confection is a 40unit cooperative known as Gilsey House. The 8-story cast-iron building, built in 1871 as a hotel, when the district was known as Tin Pan Alley, didn’t last too long as lodgings; it folded in 1911 and deteriorated afterward. But when city officials declared it a landmark in 1979, a conversion to residences began, creating one of the area’s first for-sale residential properties. Prices seem to be holding up. A two-bedroom penthouse with a private roof deck in the non-doorman building listed at $2.65 million in September 2020. It’s now in contract for what appears to be the same amount, according to StreetEasy.

1186 BROADWAY

1170 BROADWAY The NoMad Hotel, which won rave reviews in 2012 upon its opening in a 12-story former office building, has had a rocky go of it of late. Its rooms do not appear to have reopened during the Covid19 pandemic. The operators of the 168-room hotel, which include hospitality giant Yucaipa, have faced foreclosure twice, although records show Yucaipa signed a lease for $130 million in August with GFI Capital Resources, the hotel’s developer. There has been a turnover among other stakeholders. In late October the Haddad Organization, a New Jersey–based apparel company, sold its ground lease at the 1903 Beaux Arts landmark to Safehold, a ground-lease pioneer, for $77 million, property records show.

This large, corner berth belongs to the Ace Hotel chain. The building, formerly the Breslin Hotel, was a shoddily managed, single-room-occupancy structure in 2007 and owned by the Lillian Goldman estate, a holder of a vast network of properties. Back then, developer GFI Capital Resources leased the building for $40 million. A controversial $75 million renovation came next. Tenants of the 13-story 1905 landmark, some of whom were ill or indigent, sued to keep their apartments. Ultimately, about three dozen tenants were allowed to stay in the building’s top floors. In 2009 the 300-room Ace opened below them. Retailers in the building have come and gone. The Breslin restaurant became Breslin Burger during the summer. John Dory, an oyster restaurant, shuttered in 2019, to be replaced by a branch of the Milk Bar dessert chain.

FLAG LUXURY GROUP, GOOGLE MAPS

t can seem a tough time to be a 50 W. 30TH ST. hotel developer in New York. What Among the few new ground-up condominiums appeared to be a safe bet years ago in the neighborhood is the Noma, a 24-story, might feel risky now, as the pan55-unit building from a team that included demic continues to damage the hospiAlchemy Properties and the Carlyle Group. It tality sector. opened in 2018. Costume-jewelry shops once But some major projects are plowlined a single-story building on its corner site. ing forward, perhaps with few other The $100 million development, which expects choices, including several in NoMad, the neighborhood near Madison to make $125 million based on state filings, Square Park. Among them is the city’s has seemed to struggle to sell its units since second Ritz-Carlton, a 45-story tower marketing began three years ago, despite from developer Flag Luxury Group. aggressive discounting. A two-bedroom unit, The hotel’s high-end rooms will start one of two left, was listed for $2.6 million around $1,000 per night on weekends. last month, a 19% drop from the $3.2 million “New York is just in too many movsought in 2018. Alchemy had no comment. ies for people not to want to visit,” said Dayssi Olarte de Kanavos, Flag’s chief operating officer, although she anticipates that hotels won’t resemble their pre-pandemic selves until 2024. “Tourists will come back.” What might help pad the bottom line in the interim is a feature not 1225 BROADWAY found in many places other than New York: The new Ritz-Carlton NoMad is slowly becoming a major hotel district, will function as a condo-hotel. Sixalthough the hospitality sector remains depressed. teen apartments across the four Expected to arrive during the winter—about the same top floors will be sold as condos, time as the Ritz-Carlton, although catering to a more Flag said. But because the hotel middle-market crowd—is a new Virgin Hotel. The sits in a manufacturing zone, and 38-story, 463-room tower is being developed by the not a residential one, the owners of Lam Group, a prolific builder, which broke ground on those condos can live there for no the project in 2015 and originally projected a 2018 more than half the year. Owners opening. The reason for the delay is unclear; Lam did may rent out their home other not return a call for comment. But the pandemic likely months, like hotel rooms. played a part. A similar Virgin property in Las Vegas Finishes in those unique condos pushed back a fall 2020 opening until March. Plans include quartzite countertops and call for the NoMad address to have a cabana-lined marble baths. The hotel plans to outdoor pool. Another feature appears to be a large, offer two Mediterranean-themed round fireplace encircled by a catwalk for models. restaurants and a rooftop bar from chef José Andrés. Prices for one-bedroom units start at $3.5 million. Twobedrooms start at $6.6 million. The apartments were unveiled in 25 W. 28TH ST. September; Flag declined to say NoMad has gotten fancier and taller quickly. how many have sold. Among new Manhattan condos in the This new 45-story Ritz-Carlton replaces a third quarter, the average sale low-slung retail building that sold perfume price was $3.3 million, according and watches, plus a next-door parking lot. to figures from brokerage DougDeveloper Flag Luxury Group, which has built las Elliman. That was down from Ritz properties in Florida but has no previous $5.9 million in the year-ago holdings in New York, purchased the site for quarter, a 43% drop. $100 million in 2015. It’s the second Ritz in An earlier condo-hotel was the city; the other is on Central Park South. the Dominick, which was called Flag, which has developed hotels since 1947 the Trump SoHo when it opened and counts early Holiday Inns and Marriotts in 2008 in a Hudson Square among its holdings, almost always hangs on commercial zone; all of its 390 to its buildings as various operators run the rooms followed the condo-hotel properties. Business travelers to neighbormodel. The building faced lawhood tech companies are expected to be a suits from buyers, claiming fraud mainstay. “Ritz-Carlton gives a neighborover the units’ earning hood an approval stamp,” said Dayssi Olarte potential. de Kanavos, Flag’s chief operating officer. The concept might have improved with age, though. “People are now more into the sharing economy, sharing offices and evening gowns and cars,” de Kanavos said. At a similar Ritz condo-hotel in Bal Harbour, Fla., she said, owners of about 100 of the 124 condo-hotel units regularly sublet them, “and hotel staff will put all your pictures back for you.”■ 4 | CRAIN’S NEW YORK BUSINESS | November 8, 2021

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11/5/21 1:27 PM

SPONSORED CONTENT

The DOJ cracks down on white-collar crime. What that means for corporations and executives. T

he Department of Justice announced in October that it would redouble its efforts to curb white-collar crime. These efforts include a new squad of FBI agents embedded in the department’s fraud section and a combination of prosecutorial boldness and aggressive preventive measures.

Unwanted attention from the Justice Department can damage a company’s brand and impede business. It also poses personal risks for employees and company leaders, particularly following a 2015 memorandum that altered department policy to allow increased targeting of individuals. To learn how the DOJ’s new emphasis on white-collar crime is likely to affect businesses and individuals, Crain’s Content Studio spoke with Brad Simon, a partner at the law firm Windels Marx and a former assistant U.S. attorney for the Eastern District of New York.

flags, and whether there are sufficient reporting mechanisms in place. CRAIN’S: What specific malfeasance issues do you expect to receive the most scrutiny?

BRAD SIMON Partner Windels Marx

CRAIN’S: What’s the context for the Justice Department’s recent announcement, and how do you expect corporations to respond?

SIMON: Foreign Corrupt Practices Act investigations, antitrust issues, securities fraud and environmental crimes are likely to be areas of intense DOJ focus. Companies should make sure that the compliance mechanisms in place can detect malfeasance in these areas effectively and early on. Significant money-laundering indictments have already been handed down this year, and I expect this will be an area of particular interest to the DOJ. CRAIN’S: Does the presence of a compliance program affect how the DOJ treats a specific company?

BRAD SIMON: It is intended to signal a return to more aggressive enforcement following the more hands-off policies of the prior administration. White-collar investigations and prosecutions had fallen precipitously during the Trump years, and the recent announcement was intended to send a clear message that corporate malfeasance will not be tolerated.

SIMON: The DOJ looks closely at the effectiveness of a company’s compliance program

I would expect that corporations, under the direction of outside counsel, will be re-examining their compliance programs to determine whether they will pass muster with the DOJ’s anticipated heightened scrutiny. Among the areas they should be examining are whether there is sufficient companywide training and communication with respect to compliance issues, whether the company’s written code of conduct is strong enough, whether sufficient resources are allocated to its compliance program, whether the program is effective enough to spot red

in determining whether to initiate criminal charges. Companies that have been under investigation and which have robust compliance programs in place have generally been successful in staving off indictments and obtaining much more favorable outcomes, such as deferredprosecution agreements.

SIMON: The DOJ, in its June 2020 Evaluation of Corporate Compliance Programs, encouraged companies to use data analytics to help monitor the effectiveness of their compliance mechanisms. The document directs companies to evaluate whether “compliance and control personnel have sufficient direct or indirect access to relevant sources of data to allow for timely and effective monitoring and-or testing of policies, controls and transactions.” Data analytics can monitor and flag suspicious transactions, such as possible bribes or kickbacks, often instantaneously. It remains to be seen to what extent corporations will invest in this technology.

emphasis on charging individual wrongdoers — i.e., corporate executives. Boeing is a perfect example. Earlier this year the company entered into a deferredprosecution agreement to resolve criminal charges, but a Boeing employee, Mark Forkner, was indicted in the Northern District of Texas [on charges of] fraud and wire fraud. CRAIN’S: What should executives who find themselves under investigation do? SIMON: Executives who find themselves under investigation should immediately obtain private counsel and not rely

on company counsel. The corporation’s counsel represents the corporation only, and not individual corporate executives. Corporations will be under intense pressure to report allegations of corporate wrongdoing. Thus, it’s essential that a corporate executive immediately obtain counsel to represent his or her interests— and his or her interests only. The DOJ has emphasized in recent years that it will pursue individual malfeasors and not just the corporate entity. The earlier an executive obtains counsel, the greater the chances of obtaining a satisfactory resolution.

CRAIN’S: Do you foresee a change in the DOJ’s use or enforcement of deferred-prosecution and nonprosecution agreements? SIMON: I believe we will continue to see the vast majority of criminal cases against corporations resolved

“The earlier an executive obtains counsel, the greater the chances of obtaining a satisfactory resolution.”

CRAIN’S: Does the department’s focus on data analytics in identifying potential wrongdoing put pressure on corporations to use the same methods to monitor themselves?

by deferred-prosecution and nonprosecution agreements. Since the demise of Arthur Andersen [following the Enron scandal], the DOJ is sensitive to the impact that a criminal indictment can have, not just on the corporation itself, but on scores of innocent employees who face the loss of their livelihood. A criminal indictment against a corporation is essentially a death knell. Since the 2015 Yates Memorandum promulgated by the Obama Justice Department, there has been an increased

November 8, 2021 | CRAIN’S NEW YORK BUSINESS | 5

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11/3/21 8:50 AM

TECHNOLOGY

Etsy bets its army of crafters will survive the supply-chain crunch, benefiting holiday shoppers

t is a tough time for any business that relies on shipping goods to consumers, but Etsy is betting the 5 million crafters and small businesses that sell on its website will be able to deliver this holiday season. The Brooklyn-based company reported its third-quarter earnings last week, revealing $532 million in revenue from July through September, up 17% from the same period last year. That added up to a roughly $90 million profit for the quarter. In the week before Etsy’s earnings were released, both Apple and Amazon reported that difficulty sourcing supplies and labor would hurt sales. But the supply-chain crunch, dubbed the “everything shortage,” could be an opportunity

with investors. “As a result,” Glaser said, “we believe Etsy sellers stand ready to serve the world in ways many others can’t.”

Local supplies The next couple of months will test that theory. Supplies purchased locally still likely arrived at local wholesalers or stores such as Michaels and Home Depot through the global supply chain. As evidence of Etsy’s ability to withstand supply shocks, CEO Josh Silverman cited the way that many of its independent sellers rapidly shifted to selling masks in the spring of 2020, a time when both the face coverings and the supplies to make them were difficult to find. Sellers cranked out and sold more than $700 million worth of masks last year. “Supply-chain challenges across traditional retail may prove to be a tailwind for Etsy, given the company’s distributed supplier base,” according to a report Thursday from research firm Evercore ISI. Etsy is forecasting up to $690 million in revenue for the fourth quarter—about 10% growth but below expectations from Wall Street. That

“SELLERS STAND READY TO SERVE THE WORLD IN WAYS OTHERS CAN’T” for Etsy, its executives say. Most Etsy sellers work from home, and about 90% report that they buy their supplies locally, Chief Financial Officer Rachel Glaser noted in a Wednesday call

ETSY’S marketplace is made up of 5 million small businesses.

BLOOMBERG

BY RYAN DEFFENBAUGH

raised a question from analysts on the earnings call: If Etsy does have a holiday advantage over other retailers, why not go higher on guidance? Silverman said there were still retail pandemic lockdowns in effect this time last year, and that undoubtedly helped Etsy double its sales compared with the 2019 holidays. Sales are still forecast to grow even against that tough compari-

son, but consumers are more likely to be comfortable shopping in malls and stores this year. How much they will do that is the question. “We live in a world of unknowns,” Silverman said. Etsy has mostly thrived on the unknown. Its annual revenue doubled to $1.7 billion last year, and revenue has been up each quarter this year, if not quite at 2020’s blistering pace. With a market cap of

$30.5 billion, it is the third-mostvaluable technology company to launch out of New York, behind cloud-monitoring firm Datadog and MongoDB, which provides database software for businesses. The company is growing without what became its signature product during the pandemic. Masks constituted just 2% of sales for Etsy last quarter, compared with 14% in the second quarter of last year. ■

REAL ESTATE

BY NATALIE SACHMECHI

mid a slew of recent bigname initial public offerings, including those of Rent the Runway and WeWork, is a publicmarkets milestone: A mixed-use Harlem building is getting its own listing, priced at $250 per share. The 4-story office building with retail on the ground floor at 286 Lenox Ave. became the first publicly traded commercial real estate asset in New York City when it got a ticker symbol last week. It is trading on the over-the-counter securities market. “We are creating a marketplace for investors who’d never have access to this,” said Jon Bren, a managing director at New York– based Lex Capital Markets, which is serving as the investment bank and underwriter for the offering. Investors are accustomed to purchasing shares in publicly traded real estate investment trusts, or REITs, but that means buying shares in multiple properties within an asset class, often diversified geographically. Investing in individual buildings usually requires lots of cash or access to credit. Lex, a marketplace for trading real estate assets, was founded in 2017 by Drew Sterrett, a former private-equity analyst, his brother Dean and former Google software

engineer Jesse Daugherty, who has sought to democratize real estate investing and make it available to the average investor. “Real estate is the oldest and largest asset class and one of the largest wealth creators,” Drew Sterrett said. “It didn’t make sense that most people couldn’t participate in an open and accessible commercial real estate securities market.”

Good deal or bad? Investors, especially inexperienced ones, should be careful with buying shares in an individual building, said David Eyzenberg, president of New York–based real estate investment bank Eyzenberg & Co. “If I’m not a sophisticated investor, I have no way of knowing whether this is a good deal or a bad deal,” Eyzenberg said. “I can see a lot of pitfalls for investors..” Investing in REITs is less risky, he said. “There’s this whole backdrop of an ecosystem propping up the valuation of SL Green. And it’s also diversified,” he said. “Even if SL Green screws up on one property, there’s 100 others to backstop it.” But for the people raising money, Eyzenberg said he believes the possibilities are endless. “Here, the world is your oyster. Your access to investors is substan-

tially wider,” he said. The owner of the Harlem building that’s going public, Regal Capital Acquisitions, hopes to raise nearly $2.2 million by selling 49% of an equity stake it values at $4.4 million so that it can return some money to its private investors. There will be 8,600 shares up for grabs, which at $250 apiece, plus debt, would value the property at $11.3 million. This way, the money that’s raised doesn’t have to be paid back to more investors, Bren said. “It’s permanent capital,” he said. Current tenants at the fully leased property include Wells Fargo, the Child Mind Institute and the Visiting Nurse Service of New York. The building’s financial reports, which were prepared according to U.S. Securities and Exchange Commission accounting rules, show losses at the property. Between March and December 2020, the property lost nearly $831,000 and saw further losses of more than $276,000 despite the building’s being fully leased. Sean Dainese, a director at Regal, said that’s because SEC accounting requirements call for the firm to report its 99-year ground lease in equal annual payments rather than with gradual rent increases called for in the agreement itself. For example, the building’s

BUCK ENNIS

In a first, a Harlem office building hits the stock market

THE 4-STORY BUILDING at 286 Lenox Ave. income statement shows that it spent $1 million on its ground lease in 2020 when it actually spent $336,452, Dainese said. “We’re actually cash flow–positive,” he said.

Jazzy past Before Wells Fargo became its anchor tenant, the address was home to the Lenox Lounge, an iconic Harlem jazz club where Miles Davis, Billie Holiday and other legends performed. In 2012 the site shuttered after more than 70 years of slinging cocktails to

music lovers. In 2016 the building’s previous owner, Real Estate Equities, purchased the site, demolished it and built the 4-story mixed-use office building with retail on the ground floor and office space above. Regal entered into a ground lease for the building in March 2020 for $10.2 million at the onset of the Covid-19 pandemic. But even while most of the city was shut down and landlords began receiving fewer rent checks, 286 Lenox’s tenants never missed a payment, Dainese said. ■

6 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 8, 2021

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

EDITORIAL

publisher/executive editor

Lopsided elections leave us with winners who’ve made only vague commitments

editor-in-chief Cory Schouten,

cory.schouten@crainsnewyork.com managing editor Telisha Bryan assistant managing editor Anne Michaud deputy digital editor, audience & analytics

people in the running to lead us. And so, on Jan. 1, New York City will welcome a Democratic mayor in Eric Adams whose positions have not been well defined, not placed on the record. He speaks about public safety as well as police reform. But how will he implement both equally? This city waits with hope. On the campaign trail, Adams emphasized his personal story in law enforcement and government as a sort of proxy. “My history has made me who I am,” he seemed to say. A stronger Republican opponent would have drawn a better conversation. Instead, in pre-election debates, GOP nominee Curtis Sliwa and Adams descended to personal insults. Such gotcha-style conversation is too common today, and it’s beyond useless. Assuming the city’s lopsided voter registration—7-to-1 in favor of Democrats—will inevitably result in largely contentless contests is too facile. Incumbent

Jennifer Samuels 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

ARIOLA

oped editor Jan Parr,

opinion@crainsnewyork.com executive assistant Brittany Brown to contact the newsroom:

editors@crainsnewyork.com

ELECTIONS ARE BIG, PUBLIC CONVERSATIONS ABOUT OUR VALUES voices to the elected officials in the rooms—without having an excellent idea of where they stand. Poorly contested elections rob us of the opportunity to elicit specific ideas and beliefs from the

EDITORIAL

JOANNARIOLA.COM

f there is not a great saying about how elections showcase the conversations we have about democracy, then someone should come up with one quickly. Our society has been rollicking from one affliction to another: protests and violent demonstrations, a viral pandemic, fatal police encounters, sexual coercion at work and dangerous doubt over secure and reliable elections. When we elect representatives to govern, we hand them influence over these ills. But we, as voters, should not be required to release that power—to cede our

Frederick P. Gabriel Jr.

New Jersey Democrat Gov. Phil Murphy barely squeaked out a win on Tuesday, demonstrating that the tristate area is politically diverse. In closer contests, such as for the 32nd City Council district in southeastern Queens, candidates were at pains to make their views known. The victor, Joann Ariola, for example, committed to

preserving and improving the city schools’ gifted and talented program. It will be a straightforward exercise to judge whether Ariola has kept that commitment when she runs for reelection. Elections are big, drawn-out, public conversations about our values and direction. As voters, we deserve more specific exchanges before we go to the polls. ■

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Sophia Juarez, sophia.juarez@crainsnewyork.com EVENTS

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OP-ED

It’s time to protect local car shoppers by passing reforms aimed at auto brokers

Managing Director, Marketing and Events

Jill Heise, jill.heise@crain.com marketing manager Jessica Botos,

jessica.botos@crainsnewyork.com manager of conferences & events

Ana Jimenez, ajimenez@crainsnewyork.com REPRINTS

ew Yorkers who want to buy a car deserve to know they’re not going to get ripped off or deceived. Unfortunately, when the state Senate left Albany during the summer, it failed to vote on legislation that would create accountability for the burgeoning auto broker business. The business is misleading consumers, killing jobs and nurturing a breeding ground for fraud and identity theft. Brokers in New York operate with virtually no oversight and openly flout the few laws that apply to them. Consumers, especially those who are not comfortable negotiating for themselves, hire brokers ideally to negotiate the best price for a vehicle. The problem is, that’s not how it normally works. Because current laws provide no accountability and have little guidance for enforcement agencies, consumers remain extremely vulnerable to getting ripped off. The lack of oversight has allowed criminal abuses. This year the Queens district attorney’s office

brought a litany of charges against an auto broker who exploited the unregulated business model, stealing private personal information from his New York customers and then using their identities to make false vehicle purchases. The auto broker lobby has done nothing to address the bad apples in the industry, including those who prey on non–English speaking clients. It’s part of a pattern. Nearly every auto broker in New York ignores state laws and regulations. For example, New York requires that brokers register with the state Department of Motor Vehicles. But while brokers have proliferated in recent years—there are about 800 downstate—fewer than half have registered or obtained necessary surety bonds. Consumers aren’t the only ones at risk. By operating without proper regulatory guidelines, brokers are jeopardizing thousands of union and nonunion jobs. Franchised new-car dealerships constitute the fourth-largest retail employer in the state, sustaining nearly 72,000 jobs downstate that annually generate more than $50

BLOOMBERG

director, reprints & licensing Lauren Melesio,

BY MARK SCHIENBERG AND BRIAN SCHNECK

billion in economic activity. According to DMV statistics, from 2013 to 2019 more than half a million new vehicles were sold to New Yorkers from dealers in adjoining states—favorite sources of cars by brokers. As a result, since 2017, 14 dealerships have gone out of business, taking with them 1,400 jobs.

Needed legislation In June the state Assembly passed a bill directing oversight of auto broker businesses—which would prevent some of the worst abuses and provide accountability for bad actors. The bill passed overwhelmingly, with bipartisan support from Democrats and Re-

publicans alike. Legislators supported the basic consumer safeguards in the bill, which requires brokers to provide at least three offers to ensure buyers get the best price, forces brokers to disclose their fees and mandates them to comply with the same data-protection and privacy rules required at dealerships. Those safeguards would allow auto brokers who are genuinely interested in serving New York customers to thrive. At the same time, the law would provide customers assurance that the broker is working exclusively for them and not for someone who pays them the highest fee. When state senators return to Albany, they need to pass the bill to protect New Yorkers. ■ Mark Schienberg is president of the Greater New York Automobile Dealers Association. Brian Schneck is president of Local 259 of the UAW, AFL-CIO.

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8 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 8, 2021

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11/5/21 1:47 PM

OP-ED

BY T.R. LUDWIG AND DAVID SCHIEREN

ew York is a clean-energy leader. The state has made solar power affordable for thousands of businesses and homeowners who are saving money while doing their part to fight climate change. The state also has supported the growth of many local solar companies, employing more than 10,000 New Yorkers. Last month Gov. Kathy Hochul took the bold step of increasing New York’s minimum distributed solar energy goal to at least 10 gigawatts by 2030. Although we likely will need more than that to achieve 70% renewable electricity by 2030, as required under the

came to a sudden end. The program lapse happened despite advocacy for its extension by New York City, the solar industry, affordable housing providers and environmental organizations.

A new fee for solar

Community solar is a critical program that makes clean energy and utility bill savings accessible to renters and others who can’t afford to install solar panels on their own roof. Community solar is also the main driver of growth in the solar industry, creating green jobs for an increasingly diverse workforce. The Con Edison community solar program is not closing down because it achieved its goals—in fact, nearly half the funds were used to subsidize natural gas plants THE STATE IS NOW TAXING THE before the state closed a loophole SUN AND FINANCING NATURAL in the program. We were disapGAS INFRASTRUCTURE pointed to learn that the electric state’s Climate Leadership and ratepayer–funded New York Green Community Protection Act, it was Bank actually helped to finance a significant step. those fossil fuel systems. Natural Meanwhile, however, New York gas systems are now being built is working against itself to secure a instead of zero-emissions solar, solar future. Last month Con Edi- creating fewer green jobs and more son’s community solar program pollution.

Compounding the problem, the state Public Service Commission recently directed utilities to impose a new fee on homeowners and small businesses that install solar, starting Jan. 1. The fee is essentially a tax that will eat into solar savings and discourage New Yorkers from investing in solar. The New York Solar Energy Industries Association and its member companies acknowledge and appreciate that New York is working on a long-term plan for solar energy in New York, but right now there is a significant gap in what should otherwise be a flourishing market. The combined effect of imposing a statewide solar tax and ending the Con Edison community solar program in New York City and Westchester County will be less clean energy, fewer jobs and a slower transition to a sustainable future. The people of New York elected leaders who passed the Climate Leadership and Community Protection Act, a law to tax polluters

GETTY IMAGES

New York is working against itself in securing a solar future, but the governor can change that

and invest in clean-energy jobs. Instead, the state is now taxing the sun and financing natural gas infrastructure.

Leadership needed The governor should work with the Public Service Commission to replenish the community solar program in Con Edison territory (as requested by New York City in a March petition). Also, Hochul and the commission should postpone any new fees on businesses and

homeowners for installing solar fixtures until the full impact of imposing a solar tax is analyzed by an independent party and considered in the larger context of New York’s clean-energy progress. New Yorkers, and clean-energy businesses, need the governor’s leadership today. ■ T.R. Ludwig and David Schieren serve on the board of the New York Solar Energy Industries Association.

OP-ED

BY JOEL EPSTEIN

oHo is home to what has been called the greatest collection of cast-iron architecture in the world. Most of the neighborhood’s iron structures were constructed between 1840 and 1880. Ignoring the area’s storied history, the City Planning Commission recently voted unanimously in favor of a proposal to rezone SoHo and NoHo to allow the construction of affordable housing. That proposal had been rejected by the community board in July. The plan also was opposed by Manhattan Borough President Gale Brewer. According to city officials, the rezoning of SoHo and NoHo could mean the construction of as many as 3,500 apartments, including up to 900 subsidized apartments for low- and middle-income New Yorkers, through the city’s Mandatory Inclusionary Housing requirement. So instead of a world-class city for everyone, with a diversity of neighborhoods reflecting the architectural, cultural and economic history of the city, the one-

size-fits-alls want to make us all poorer by opening up SoHo to affordable housing development.

A rich architectural heritage Does the commission’s vote mean converting some of the landmark neighborhood’s historic castiron buildings from their current use to affordable housing? No. It means rezoning the community so that developers are “encouraged” to build out-of-scale buildings of affordable and mixed-use housing in one of New York’s last remaining architectural gems. At a difficult time in New York, it is hard to believe there are no more pressing land-use and planning issues than whether SoHo is doing its part for affordable housing residents. We all agree that inequality is bad. Still, the fight over affordable housing in SoHo is a classic case of the city once again cutting off its nose to spite its face. True, the long-ago affordable lair of artists is now home to lots of wealthy people. It is also a landmark neighborhood that should be preserved for its architectural heritage and historical significance.

With dozens, if not hundreds, of transit-rich office buildings gasping for breath as residential conversions, the last thing the city should be doing is disfiguring a beautiful Manhattan neighborhood with new construction. The neighborhood is listed on the National Register of Historic Places. It’s a National Historic Landmark featuring cast-iron architectural elements no one builds with anymore. SoHo is not particularly set up for serving low-income residents. It is not well served by transit. Yes, there are subway stations, bus stops and Citi Bike docks, but not when compared with large swaths of Midtown and the Financial District that still stand largely empty due to the Covid-19 pandemic. The subway stops that serve SoHo are by and large small, narrow-platform stations lacking elevators that would make them ADA-accessible. SoHo is also a park-poor community congested with bridgeand and-tunnel commuters tourists fouling the air with their cars. Affordable grocery shopping? Not unless you want to schlep to

BLOOMBERG

Rezoning landmarked, historic SoHo to make way for affordable housing development is a bad idea

Chinatown. Neighborhood public schools? If I counted right, there are only a few.

Well-meaning but wrong The city’s political leaders, well-meaning city officials and affordable housing advocates are so busy falling over themselves to show how woke they are about housing equity that they are again

ready to sacrifice one of New York’s landmark communities to the cause of a historical view of equity. ■ Joel Epstein advises local governments, businesses, foundations and public initiatives on communications, government affairs and corporate social responsibility.

Write us: Crain’s welcomes submissions to its opinion pages. Send letters to letters@CrainsNewYork.com. Send op-eds of 500 words or fewer to opinion@CrainsNewYork.com. Please include the writer’s name, company, address and telephone number. Crain’s reserves the right to edit submissions for clarity. November 8, 2021 | CRAIN’S NEW YORK BUSINESS | 9

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11/4/21 2:00 PM

TV & FILM PRODUCTION

After Rust shooting, Nassau County lawmaker floats bill looking to ban live ammo on NY film sets

state lawmaker wants New York to ban live ammunition on TV and film sets in response to the death last month of cinematographer Halyna Hutchins. She was killed by a gun fired by actor Alec Baldwin on a movie set in New Mexico. Possessing or using live ammunition on a film set in New York would be designated a felony offense under a bill filed last week by Sen. Kevin Thomas, a Democrat who represents parts of Nassau County. If the bill becomes law, all crew members would be required to undergo police-supervised training when prop guns firing blanks are used on a set. Thomas called the bill a commonsense measure in response to the fatal shooting, which occurred Oct. 21 on the set of Rust, an independent movie. “This is a preventative measure,” Thomas said. “I don’t want what happened on the Rust set to happen here in New York, given that we are involved in a lot of production.” Baldwin, also one of the movie’s

producers, was handed a revolver he reportedly was told was safe to use during a scene rehearsal. But when the gun was fired, a bullet killed Hutchins and wounded Joel Souza, the director. Investigators are still unraveling how that happened. The gun fired by Baldwin discharged a “suspected live round,” the Sante Fe County sheriff ’s office said. It remains unclear how live ammunition could have arrived on the set. Crew members had raised safety concerns before the incident, according to a Los Angeles Times report.

Safety standards Thomas said he became concerned when he found there is no clear law barring live ammunition on New York film sets. Most states defer to guidance negotiated by the industry’s unions and production companies, and that guidance states in its first line that live ammo should not be brought onto a studio or stage. “You’d never use live ammunition under any circumstances, and it should never, ever be on a movie set,” said Richard Gladstein, a pro-

said Gladstein, who in the summer of 2020 was named executive director of Brooklyn College’s Feirstein Graduate School of Cinema. “I don’t know if legislation can create safer sets or not. The buck stops with the producer.” Guidelines for weapons on set come from the Industry-Wide LaborManagement Safety Committee. It calls for regular safety meetings for crews when firearms are on set, bars guns from being pointed in any person’s direction and says guns should never be left unattended.

A SHERIFF’S DEPUTY talks with a security guard at the entrance to the Rust set in New Mexico.

AP PHOTO

BY RYAN DEFFENBAUGH

ducer whose credits include the Quentin Tarantino films Reservoir Dogs and Pulp Fiction. Productions commonly use blanks—cartridges fired from a working firearm but without metal-tip projectiles—to simulate gunfire. But even those can be dangerous, so Gladstein said productions adhere to a clear set of safety standards. They do not, for instance, rehearse with a blank or weapon that has any ability to discharge. A prop gun loaded with a blank has to be inspected multiple times before being fired. Everyone on set is made aware that a gun is about to be discharged, and it should be fired only when the camera is rolling. “What we need are safer sets,”

City regulations Filming in New York City is overseen by the Mayor’s Office of Media and Entertainment, which issued about 2,600 film permits in 2020—a down year because of the Covid-19 pandemic. Asked for comment on the bill, office representative Melanie Scharler said the city takes safety seriously. “If filming activity requires a real or simulated firearm, MOME regulations require the NYPD movie

and TV unit to be on set,” Scharler said. “NYPD experts inspect all theatrical firearms before use, and only properly deactivated firearms are allowed on sets.” A code of conduct for film shoots in the city published by the Mayor’s Office of Media and Entertainment prohibits the filming of exterior gunshots between 9 a.m. and 10 p.m. in residential neighborhoods. Film permits require a $300 application fee; police assistance is provided without charge. City Councilman Robert Holden, a Queens Democrat, said he planned to meet with film industry representatives to decide if the city needs additional safety rules. Holden heads the council’s technology committee, which has oversight of the film permitting process. The state Legislature does not return to session until January, so it is unlikely the bill from Thomas will move forward before then. It likely will be reviewed by the Senate’s rules committee. In California, where filmmakers are already required to apply for an entertainment firearms permit, a state lawmaker has proposed a ban on live weapons for all sets. ■

NOVEMBER 19, 2021 JOIN US ONLINE

7:30 - 10:00AM (ET)

KEYNOTE The 2021 NewYorkCIO of the Year® ORBIE® Awards Keynote is Raghu Raghuram, CEO of VMware.

RAGHU RAGHURAM

Raghu Raghuram joined VMware in 2003 and currently serves as the company’s CEO. He is an industry thought leader and has successfully steered the company’s strategy and technology evolution across VMware’s rich history. During his tenure at VMware, Raghuram has held multiple

leadership roles across several business units and even served as part of the leadership team that took the company through its initial IPO. Prior to VMware, Raghuram held product management and marketing roles at AOL, Bang Networks and Netscape. Join us on November 19 to recognize the finalists & winners of the 2021 NewYorkCIO of the Year ORBIE Awards.

CEO, VMware

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10 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 8, 2021

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SPONSORED CONTENT

Essential considerations for nonprofits in a postpandemic world

fter more than a year into the pandemic, nonprofits continue to experience both financial and programmatic challenges in this new world. Office and site closures, lost revenue, canceled fundraising events and changes in the need for certain services are just a few of the impacts on nonprofits. While these conditions continue to pose financial challenges to all nonprofits, certain subsectors saw a renewed increase in the demand for their assistance, especially in health care and social services. As a result, since the pandemic, nonprofits have needed to modify their operations and seek new and creative ideas to position themselves to survive and sustain their mission. Many organizations obtained economic assistance from federal funding, reduced their workforce, created alternative revenue streams, moved to virtual platforms for events, implemented strict cost-containment measures, and used other strategies to sustain programs and ensure the viability of their organizations. Nonprofits that were able to adapt to their changing environment and swiftly enact operational adjustments typically positioned themselves better than those that did not. As we enter the final three months of this year, a majority of boards and management executives remain cautiously optimistic about their organization’s future, but they also recognize that their work is not yet done. They need to develop and evaluate longer-term strategies and put them into action, irrespective of how successfully their organization maneuvered through obstacles earlier in the pandemic. We offer these considerations to assist your organization in its postpandemic strategic planning: BOARD ENGAGEMENT AND LEADERSHIP The pandemic has re-emphasized the importance of maintaining a close relationship between governing boards and executive management. Since the pandemic, boards and management have

P011_CN_20211108.indd 11

sought ways to stabilize their organizations while continuing to deliver on their programmatic missions. As the pandemic appears to decline and nonprofits re-emerge, boards and management should consider whether the shifts or operational tweaks made earlier in the pandemic should be kept for a longer term or even modified again to meet the ever-changing landscape. Board members and management will undoubtedly have a host of significant questions and matters to deliberate regarding the future of their organizations. As such, ensuring that they are properly equipped with the appropriate mix of resources, digital tools, education, and overall talent to guide them along the process will be necessary. Boards will need to continue to provide careful oversight in fulfilling their fiduciary duties by engaging in meaningful and timely discussions with management and executives regarding the organization’s strategy, vision, programmatic mission, and any changes that may be required going forward. STRATEGIC PLANNING A robust and flexible strategic plan is critical in enabling the advancement of a nonprofit’s priorities. Strategic plans should involve the ideas and thoughts of both management and board to gain mutual agreement on measurable goals, approved priorities and a commitment to continuously review the strategies. Planning involves carefully considering the various internal and external factors that organizations must contend with on a daily basis and how to navigate them successfully. Some considerations for approved strategic plans may include an assessment of the underlying assumptions, the budgets, the impact of societal changes (such as pandemics or natural disasters) and other matters that affect the overall landscape of the organization’s mission. Revisiting the plan periodically, making adjustments and adapting the plan is generally a best practice. Strategic planning yields more organizational resilience because it allows management and governance the flexibility to pursue large-scale goals and impacts while still being able to adjust for challenges and opportunities. LIQUIDITY One of the pandemic’s most significant impacts on nonprofits was the effect on their cash flow. The steady inflow of cash suddenly stopped as physical offices were closed and entities were unable to process even the most basic transactions. As a result, many

nonprofits started preparing cash-flow projections and modeling. The ability to generate an accurate projection was necessary for governance members and management to determine when cash shortages may occur and to plan for an appropriate response. The primary objective of cash-flow forecasting is to assist organizations in managing liquidity and to provide a vision as to whether the organization has the necessary cash to meet its obligations and avoid funding issues. In general, cash forecasting should be frequently evaluated, and models should be adjusted for new factors as they are encountered, even in a postpandemic world. Although the economy is moving to a new normal, major uncertainties remain with Covid-19. Entities should continue to monitor and manage cash flows. TECHNOLOGY The roles that digitalization and information technology play within nonprofits was steadily increasing before the pandemic. Many organizations often discussed the benefits of replacing antiquated systems with newer technology to become modern and stay competitive. The rapid shift in response to the pandemic lockdowns only reinforced and, in some cases, accelerated the need for further digital transformation at organizations. Even before the pandemic, nonprofits saw strong growth in online donations via various social media platforms and channels. These capabilities provided a more convenient channel to increase the rate of giving and a source to reach different donors and geographies. Technology provided another mechanism to showcase the nonprofit’s programmatic outcomes, successes and overall mission. For nonprofits that rely mainly on traditional revenues from in-person events, conferences or fundraising events, incorporating future virtual offerings and fundraising should be considered as an additional revenue stream. Covid-19 caused a significant shift in the way nonprofits conduct their operations with a workforce that had to adapt to working remotely and operating in a digitalized world. One of the latest issues facing organizations is the Great Resignation in which millions of employees have quit their jobs after reassessing their work-life balance since the pandemic. As nonprofits begin to bring their workforce back to the office, the need to embrace a new operating model will require organizations to assess technology tools aimed at supporting their staff.

Technological investments in remote work can provide a means to retaining current talent by improving efficiencies through upskilling or reskilling employees in their daily tasks; such investments also function as a mechanism to attract top talent applicants from other geographical regions. Every nonprofit’s information technology transformation will be different, depending on its digital sophistication, capacity and ability to invest. Technology will continue to change the way nonprofits operate, and those that are more proactive in embracing new tools can better position themselves to be less reactionary to future challenges. ENTERPRISE RISK MANAGEMENT The pandemic made the need for enterprise risk management planning abundantly clear. When crises occur, having an appropriate ERM plan of action in place can assist in stabilizing and continuing your operations into the future. An ERM plan is a process wherein a nonprofit will outline its operations, goals and financial health before performing systematic planning for worst-case scenarios to avoid unwelcome surprises. An ERM plan should be a proactive, multidimensional process of identifying, assessing, documenting and preparing for potential negative outcomes. The goal of such an assessment should be to reduce business and reputational impacts and aid the organization in meeting its goals and mission. In addition, a well-designed ERM plan should include assessments of the organization’s people, operations, technology, asset safeguarding, and internal and external communications.

ABOUT THE AUTHOR

John Eusanio Partner & Not-For-Profit Practice Leader Citrin Cooperman jeusanio@citrincooperman.com

Reimagining your nonprofit in a postpandemic era should demonstrate the critical role your nonprofit plays in today’s world and how your services benefit society. The ability to navigate this ever-changing landscape will be imperative to ensure the long-term sustainability and financial health of your organization so you can focus on what counts: your mission.

Citrin Cooperman” is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients’ business needs. The two firms operate as separate legal entities in an alternative practice structure. Citrin Cooperman is an independent member of Moore North America, which is itself a regional member of Moore Global Network Limited (MGNL).

Our C-Suite Snacks webinar series provides the middle market with brief, strategic and tactical business improvement information for 30 minutes every week. Join Citrin Cooperman’s C-Suite Snacks live every Thursday at noon for snack-size insights for business executives. Sign up at https://rebrand.ly/ csuitesnacks for our weekly C-Suite Snacks invites.

11/4/21 9:52 AM

THE LIST LARGEST FOUNDATIONS New York–area charities ranked by total assets

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

2020 CONTRIBUTIONS (IN MILLIONS)/ % CHANGE FROM 2019

2020 NOTABLE GRANTS TO NYC ORGANIZATIONS

TOP EXECUTIVE(S)/ TITLE

The Ford Foundation 320 E. 43rd St. New York, NY 10017

212-573-5000 fordfoundation.org

Darren Walker President

$16,486.2 +15.9%

$916.6 n/d +76.6%

Civic engagement; government

1936

Open Society Foundations 1 224 W. 57th St. New York, NY 10019

212-548-0600 opensocietyfoundations.org

George Soros Chair Mark Malloch-Brown President

$16,277.0 2 +15.6%

$721.3 2 Support for Communities +57.3% United for Police Reform, $352,500; Alliance for Quality Education, $50,000

Justice; equity; expression

1993 3

Bloomberg Philanthropies 25 E. 78th St. New York, NY 10075

212-205-0100 bloomberg.org

Patricia E. Harris Chief executive

$11,114.7 +28.5%

Public health; environment; Black wealth creation

2006

Andrew W. Mellon Foundation 140 E. 62nd St. New York, NY 10065

212-838-8400 mellon.org

Elizabeth Alexander President

$8,218.0 +17.5%

$420.9 New York Community Trust, +32.4% $10 million; Jazz at Lincoln Center Inc., $2 million

Higher learning; arts and culture; public knowledge

1969

The Rockefeller Foundation 420 Fifth Ave. New York, NY 10018

212-852-8361 rockfound.org

Rajiv J. Shah President

$7,124.7 +44.5%

$279.7 National Domestic Workers +19.3% Alliance Inc., $2 million; Global Resilient Cities Network, $2 million

Equitable global health systems

1913

The Leona M. and Harry B. Helmsley Charitable Trust 230 Park Ave. New York, NY 10169

212-679-3600 helmsleytrust.org

Sarah E. Paul Chief executive

$5,911.8 -2.6%

$264.0 City Parks Foundation, -5.4% $1.7 million; Project Renewal Inc., $350,000

Severe chronic diseases; select place-based initiatives

1999 4

JPB Foundation 875 Third Ave. New York, NY 10022

212-935-9860 jpbfoundation.org

Barbara Picower President

$4,690.1 +7.0%

$359.4 The New York Public Library +37.2% Astor Lenox and Tilden Foundations, $1 million; New York Hall of Science, $500,000

Poverty; environmental; medical research

2011

Simons Foundation 160 Fifth Ave. New York, NY 10010

646-654-0066 simonsfoundation.org

David Spergel President

$4,324.8 +8.1%

$294.2 n/d -0.6%

Research in mathematics, physical sciences, computer science, life and autism sciences

1994

Carnegie Corp. of New York 437 Madison Ave. New York, NY 10022

212-371-3200 carnegie.org

Gov. Thomas Kean Chair, board of trustees

$3,564.0 +3.6%

$161.0 9/11 Memorial & +5.9% Museum, $300,000; New York Community Trust, $4 million

K-16 education; democracy; international peace and security

1911

The New York Community Trust 909 Third Ave. New York, NY 10022

212-686-0010 nycommunitytrust.org

Lorie A. Slutsky President

$3,148.0 +8.2%

$264.0 Community Tech New York, +52.6% $250,000; Public Good Projects, $125,000

Covid-19 response; education; arts and culture

1924

Alfred P. Sloan Foundation 630 Fifth Ave. New York, NY 10111

212-649-1649 sloan.org

Adam F. Falk President

$2,105.9 +7.9%

$76.5 Rockefeller University, $2.7 -21.4% million; Columbia University Center on Global Energy Policy, $1 million

Scientific research; tech development for research; public science engagement

1934

The Starr Foundation 399 Park Ave. New York, NY 10022

212-909-3600 starrfoundation.org

Florence A. Davis President

$1,560.0 +6.6%

$88.0 Weill Cornell Medicine, -13.3% $10 million; Starr Cancer Consortium, $10 million

Health and medicine; education; human needs

1955

Rockefeller Brothers Fund 475 Riverside Drive New York, NY 10115

212-812-4200 rbf.org

Stephen B Heintz President, chief executive

$1,460.3 +12.7%

$48.8 n/d +29.6%

Democratic practice; peacebuilding; sustainable development

1940

The Henry Luce Foundation Inc. 51 Madison Ave. New York, NY 10024

212-489-7700 hluce.org

Mariko Silver President Sean Buffington Vice president Staci Salomon Chief financial officer

$1,029.2 +11.6%

$43.9 American Council of +13.7% Learned Societies, $1.95 million; Institute of International Education, $700,000

Asia; American art; religion and theology

1936

The Commonwealth Fund 1 E. 75th St. New York, NY 10021

212-606-3800 commonwealthfund.org

David Blumenthal President

Health care coverage, access, tracking; delivery reform; international health policy and practice

1918

FOUNDATION

2020 ASSETS (IN MILLIONS)/ % CHANGE FROM 2019

PHONE/ WEBSITE

$754.9 -1.8%

$1,600.0 9/11 Memorial & -51.6% Museum, $3 million; NYU (for public service fellows program), $20 million

$21.0 n/d 0.0%

TOP GIVING AREAS

YEAR FOUNDED

To qualify for this list list, organizations must be headquartered in the New York area, which includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain's New York Business uses staff research, surveys and the most current references available to produce its lists, but there is no guarantee that the listings are complete. Information is from the foundations, foundation websites, Forms 990 and financial statements. Send feedback to researcher@crainsnewyork.com. 1--Previously listed as two separate entities: Foundation to Promote Open Society and Open Society Institute 2--Foundation estimate. 3--Date of earliest 501(c)(3). Open Society Foundations was established in 1984. 4--Active grantmaking began in 2008.

WANT MORE OF CRAIN’S EXCLUSIVE DATA? VISIT CRAINSNEWYORK.COM/LISTS. 12 | CRAIN’S NEW YORK BUSINESS | November 8, 2021

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11/4/21 3:56 PM

THE LIST LARGEST NONPROFITS New York–area organizations ranked by total operating expenses

PHONE/ WEBSITE

TOP EXECUTIVE/ TITLE/ 2020 COMPENSATION 1

International Rescue Committee Inc. 122 E. 42nd St. New York, NY 10168

212-551-3000 rescue.org

David Miliband President, chief executive

Jewish Communal Fund 575 Madison Ave. New York, NY 10022

212-752-8277 jcfny.org

New York Blood Center 310 E. 67th St. New York, NY 10065

% OF EXPENSES ALLOCATED TO PROGRAM SERVICES

% OF EXPENSES USED FOR FUNDRAISING

2020 TOTAL ANNUAL INCOME (IN MILLIONS)

% OF INCOME FROM PRIVATE SUPPORT

$806.8 $773.5

88%

6.0%

$825.6

68.0%

Susan Dickman Executive vice president, chief executive $726,954

$543.1 $466.5

98.9%

35.0%

$524.6

100.0%

212-570-3100 nybloodcenter.org

Christopher Hillyer President, chief executive $1,822,254 3

$469.7 4 $375.5

93.1% 4

0.0% 4

$483.5 4

Catholic Medical Mission Board Inc. 100 Wall St. New York, NY 10005

212-242-7757 cmmb.org

Mary Beth Powers President, chief executive

$464.1 $587.0

97.7%

1.3%

$473.3

97.0%

Leukemia & Lymphoma Society 3 International Drive Rye Brook, NY 10573

914-949-5213 lls.org

Louis DeGennaro President, chief executive $825,885

$394.0 $367.3

77.6%

11.4%

$496.2

100.0%

American Jewish Joint Distribution Committee Inc. 220 E. 42nd St. New York, NY 10017

212-687-6200 jdc.org

Darrell Friedman, Asher Ostrin $134,585, $598,729 Interim chief executives 5

$368.3 $328.5

91.2%

3.1%

$396.5

79.5%

The Metropolitan Museum of Art 1000 Fifth Ave. New York, NY 10028

212-535-7710 metmuseum.org

Daniel Weiss President, chief executive $1,369,394

$354.8 $387.2

61%

5.2%

$311.7

15.4%

The Legal Aid Society 199 Water St. New York, NY 10038

212-577-3300 legalaidnyc.org

Janet Sabel Attorney-in-chief, chief executive $281,854

$317.3 $294.1

92.5%

0.4%

$330.8

n/d

Delivering Good 226 W. 37th St. New York, NY 10018

212-279-5493 delivering-good.org

Lisa Gurwitch President, chief executive $378,122

$293.0 $139.4

99.5%

0.2%

$291.4

99.9%

Teach for America Inc. 25 Broadway New York, NY 10004

212-279-2080 Elisa Villaneuva Beard teachforamerica.org Chief executive $518,666

$292.0 $292.3

74%

10.0%

$298.2

66.0%

Institute of International Education 1 World Trade Center New York, NY 10007

212-883-8200 iie.org

Allan Goodman Chief executive $748,592

$272.0 $324.9

87.5%

0.6%

$363.9

42.3%

SCO Family of Services 1 Alexander Place Glen Cove, NY 11542

516-671-1253 sco.org

Keith Little President, chief executive $343,485

$263.8 $254.2

90.5%

0.9%

$251.2

3.8%

Public Health Solutions 40 Worth St. New York, NY 10013

646-619-6400 healthsolutions.org

Lisa David President, chief executive $367,836

$249.3 $240.1

96.7%

0.2%

$252.3

7.4%

UJA-Federation of New York 130 E. 59th St. New York, NY 10022

212-980-1000 ujafedny.org

Eric Goldstein Chief executive $1,113,416 6

$244.1 $246.0

75.8%

13.9%

$239.7

80.4%

Services for the UnderServed 7 463 Seventh Ave. New York, NY 10018

212-633-6900 sus.org

Donna Colonna Chief executive $416,498

$233.6 $229.8

99.7%

0.3%

$249.2

10.3%

ORGANIZATION

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

TOTAL OPERATING EXPENSES IN 2020/ 2019 (IN MILLIONS) 2

0.3% 4

To qualify for this list list, organizations must be tax-exempt 501(c)(3) nonprofits with headquarters in the New York area. This includes New York City and Nassau, Suffolk and Westchester counties in New York, and Bergen, Essex, Hudson and Union counties in New Jersey. Crain's New York Business uses staff research, extensive surveys and the most current references available to produce its lists, but there is no guarantee that the listings are complete. Universities, colleges, libraries, hospitals, health care institutions, medical practice groups and research institutions are excluded. Information is from the foundations, foundation websites, Forms 990 and financial statements. n/d-Not disclosed. Send feedback to researcher@crainsnewyork.com. 1--Includes compensation, contributions to employee benefit plans and deferred compensation. Compensation for recently hired executives is not listed. 2--Total functional expenses minus interest and depreciation. 3-Figure from 990 schedule J part II, column E. 4--Figure from 990. 5--Darrell Friedman served through Dec. 31, 2020. Asher Ostrin served through Sept. 30, 2020. 6--Includes accrued earnings on previously reported deferred compensation and deferred compensation not yet paid. 7--Includes data from 990s for two affiliated organizations.

• • •

November 8, 2021 | CRAIN’S NEW YORK BUSINESS | 13

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4 5 THE LIST 6 LARGEST NONPROFITS 7 8 91 10 2 11 3 12 4 13 5 14 6 15 7 8 9 10 11 CONGRATULATIONS TO THE 2021 NEW YORK CITY MAN & WOMAN OF THE YEAR TOP FUNDRAISERS 12 13 14 15 Catholic Medical Mission Board Inc. 100 Wall St. New York, NY 10005

212-242-7757 cmmb.org

Mary Beth Powers President, chief executive

$464.1 $587.0

97.7%

1.3%

$473.3

97.0%

Leukemia & Lymphoma Society 3 International Drive Rye Brook, NY 10573

914-949-5213 lls.org

Louis DeGennaro President, chief executive $825,885

$394.0 $367.3

77.6%

11.4%

$496.2

100.0%

American Jewish Joint Distribution Committee Inc. 220 E. 42nd St. New York, NY 10017

212-687-6200 jdc.org

Darrell Friedman, Asher Ostrin $134,585, $598,729 Interim chief executives 5

$368.3 $328.5

91.2%

3.1%

$396.5

79.5%

The Metropolitan Museum of Art 1000 Fifth Ave. New York, NY 10028

212-535-7710 metmuseum.org

Daniel Weiss President, chief executive $1,369,394

$354.8 $387.2

61%

5.2%

$311.7

15.4%

The Legal Aid Society 199 Water St. ORGANIZATION New York, NY 10038

212-577-3300 legalaidnyc.org PHONE/

Janet Sabel TOP EXECUTIVE/ Attorney-in-chief, chief executive TITLE/ 2020 COMPENSATION 1 $281,854

92.5% % OF EXPENSES ALLOCATED TO PROGRAM SERVICES

0.4% % OF EXPENSES USED FOR FUNDRAISING

2020 TOTAL $330.8 ANNUAL INCOME (IN MILLIONS)

n/d % OF INCOME FROM PRIVATE SUPPORT

Delivering Good International Rescue Committee Inc. 226 37th St. 122 W. E. 42nd New York, NY 10018 10168

212-279-5493 212-551-3000 delivering-good.org rescue.org

Lisa DavidGurwitch Miliband President, chief executive $378,122

$293.0 $806.8 $139.4 $773.5

99.5% 88%

0.2% 6.0%

$291.4 $825.6

99.9% 68.0%

Teach America Fund Inc. Jewishfor Communal 25 575Broadway Madison Ave. New York, NY 10004 10022

212-279-2080 Elisa Villaneuva 212-752-8277 Susan Dickman Beard teachforamerica.org Chief executive jcfny.org Executive vice president, chief executive $518,666 $726,954

$292.0 $543.1 $292.3 $466.5

74% 98.9%

10.0% 35.0%

$298.2 $524.6

66.0% 100.0%

Institute International New York of Blood Center Education 1 World TradeSt.Center 310 E. 67th New York, NY 10007 10065

212-883-8200 212-570-3100 iie.org nybloodcenter.org

Allan Goodman Christopher Hillyer Chief executive President, chief executive $748,592 $1,822,254 3

$272.0 $469.7 4 $324.9 $375.5

87.5% 93.1% 4

0.6% 0.0% 4

$363.9 $483.5 4

42.3% 0.3% 4

SCO Family of Services Catholic Medical Mission Board Inc. 1 Alexander 100 Wall St. Place Glen Cove,NY NY10005 11542 New York,

516-671-1253 212-242-7757 sco.org cmmb.org

Keith Mary Little Beth Powers President, chief executive $343,485

$263.8 $464.1 $254.2 $587.0

90.5% 97.7%

0.9% 1.3%

$251.2 $473.3

3.8% 97.0%

Public Health Solutions Society Leukemia & Lymphoma 40 Worth St. Drive 3 International New York, NY Rye Brook, NY10013 10573

646-619-6400 914-949-5213 healthsolutions.org lls.org

Lisa LouisDavid DeGennaro President, chief executive $367,836 $825,885

$249.3 $394.0 $240.1 $367.3

96.7% 77.6%

0.2% 11.4%

$252.3 $496.2

7.4% 100.0%

UJA-Federation NewDistribution York American JewishofJoint 130 E. 59thInc. St. Committee New York, NY St. 10022 220 E. 42nd New York, NY 10017 Services for the UnderServed 7 463 Seventh Ave. Museum of Art The Metropolitan New 10018 1000York, FifthNY Ave. New York, NY 10028

212-980-1000 212-687-6200 ujafedny.org jdc.org

Eric Goldstein Darrell Friedman, Asher Ostrin Chief executive $134,585, $598,729 $1,113,416 Interim chief 6executives 5

$244.1 $368.3 $246.0 $328.5

75.8% 91.2%

13.9% 3.1%

$239.7 $396.5

80.4% 79.5%

212-633-6900 sus.org 212-535-7710 metmuseum.org

Donna Colonna Chief Danielexecutive Weiss $416,498 President, chief executive $1,369,394

$233.6 $229.8 $354.8 $387.2

99.7% 61%

0.3% 5.2%

$249.2 $311.7

10.3% 15.4%

WEBSITE

$317.3 TOTAL OPERATING EXPENSES IN$294.1 2020/ 2019 (IN MILLIONS) 2

Legallist Aidorganizations Society 212-577-3300 Sabel $317.3 92.5% 0.4% in New York, and $330.8 n/d To qualifyThe for this list, must be tax-exempt 501(c)(3) nonprofits Janet with headquarters in the New York area. This includes New York City and Nassau, Suffolk and Westchester counties Bergen, Essex, Hudson and 199 Water St.Jersey. Crain's New York Business legalaidnyc.org chief $294.1 Union counties in New uses staff research,Attorney-in-chief, extensive surveys andexecutive the most current references available to produce its lists, but there is no guarantee that the listings are complete. Universities, colleges, libraries, hospitals, care institutions, medical practice groups and research institutions are excluded. Information is from the foundations, foundation websites, Forms 990 and financial statements. n/d-Not disclosed. Send feedback to New York, health NY 10038 $281,854 researcher@crainsnewyork.com. 1--Includes compensation, contributions to employee benefit plans and deferred compensation. Compensation for recently hired executives is not listed. 2--Total functional expenses minus interest and depreciation. 3-Figure from 990 schedule 990. 5--Darrell Friedman served through Dec. 31, 2020. Asher Ostrin served through on previously reported deferred compensation99.9% and Delivering Good J part II, column E. 4--Figure from 212-279-5493 Lisa Gurwitch $293.0Sept. 30, 2020. 6--Includes 99.5% accrued earnings0.2% $291.4 deferred compensation not yet paid. 7--Includes data from 990s for two affiliated organizations. 226 W. 37th St. New York, NY 10018

delivering-good.org

President, chief executive $378,122

$139.4

Teach for America Inc. 25 Broadway New York, NY 10004

212-279-2080 Elisa Villaneuva Beard teachforamerica.org Chief executive $518,666

$292.0 $292.3

74%

10.0%

$298.2

66.0%

Institute of International Education 1 World Trade Center New York, NY 10007

212-883-8200 iie.org

Allan Goodman Chief executive $748,592

$272.0 $324.9

87.5%

0.6%

$363.9

42.3%

SCO Family of Services 1 Alexander Place Glen Cove, NY 11542

516-671-1253 sco.org

Keith Little President, chief executive $343,485

$263.8 $254.2

90.5%

0.9%

$251.2

3.8%

Public Health Solutions 40 Worth St. New York, NY 10013

646-619-6400 healthsolutions.org

Lisa David President, chief executive $367,836

$249.3 $240.1

96.7%

0.2%

$252.3

7.4%

UJA-Federation of New York 130 E. 59th St. New York, NY 10022

212-980-1000 ujafedny.org

Eric Goldstein Chief executive $1,113,416 6

$244.1 $246.0

75.8%

13.9%

$239.7

80.4%

Services for the UnderServed 7 463 Seventh Ave. New York, NY 10018

212-633-6900 sus.org

Donna Colonna Chief executive $416,498

$233.6 $229.8

99.7%

0.3%

$249.2

10.3%

New York City Woman of the Year

Lahnie Strange

Susan Ryan

New York, NY The Estee Lauder Companies

New York, NY

The Leukemia & Lymphoma Society (LLS) would like to thank all of the 2021 Man & Woman of the Year participants. Because of their tireless efforts, LLS is able to continue advancing breakthrough blood cancer treatments and therapies.

For more information visit MWOY.org

14 | CRAIN’S NEW YORK BUSINESS | November 8, 2021

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POLITICS

Big Tech, Big Pharma, developers likely to face scrutiny if AG James becomes NY’s next governor BY BRIAN PASCUS

tis, a Swiss-American multibillion-dollar pharmaceutical giant, settled with James’ office in September 2020 over allegations of bribing doctors to induce patients to take its drug treatments. James referred to the allegations as “a fraudulent kickback scheme” and said the state’s Medicaid program was cheated out of millions. New York state collected nearly $23 million as part of the global settlement brokered by James’ office.

Real estate Protecting tenants has been the defining feature of James’ career. During her second term on the council, she helped pass the Safe Housing Act, which forced landlords to make improvements to some of the most dilapidated buildings in the city. “It was a pleasure and great to be able to work with Tish in the City Council,” said Councilman Daniel Dromm, who served with James from 2010 to 2014. “Saving affordable housing was at the top of her

Big Tech AP PHOTO

ttorney General Letitia James capped her career so far with the probe that brought down Gov. Andrew Cuomo. Now she’s running to replace him. James, 63, announced her 2022 candidacy Oct. 29, after building a national profile with lawsuits targeting the Trump administration, the National Rifle Association and Silicon Valley, all in her first term and with a year to go. “New Yorkers need a governor who isn’t afraid to stand up to powerful interests on behalf of the vulnerable,” James said in a statement. “Throughout my career, I’ve taken on big forces, and New Yorkers know I will never back down when it comes to fighting for them.” James, a Democrat whose investigation into claims of sexual harassment by Cuomo helped trigger his resignation in August and a misdemeanor sex charge on Oct. 28, could become the nation’s first Black female governor. She will face Gov. Kathy Hochul, among others in the Democratic primary. James’ career in elected office, which began in 2004, includes a decade as a City Council member in New York, five years as the city’s public advocate, and two years as the state’s first Black attorney general. In addition to the Cuomo investigation, James’ office is looking into the business practices of former President Donald Trump. “These are popular villains, especially to the Democratic electorate of New York state,” said John DeSio, a Democratic communications consultant at Risa Heller Communications. “She put New York into the mix on these national issues in a very serious way.” James’ business record holds the same levels of drama as her investigations of powerful figures. From the time she entered the City Council, during Michael Bloomberg’s first mayoral term, James has fought for tenants and stood up to corporations. In the past two years as attorney general, she has used her office to challenge Facebook’s growth and punish the Sackler family, founders of Purdue Pharma, in connection with the state’s opioid epidemic. Here’s a look at how James has engaged with powerful interests since she entered public office.

JAMES agenda, and that’s something she’s been an advocate of for years.” Her tenant advocacy continued downtown at 28 Liberty St. As attorney general, she instituted the Homeowner Protection Program, a mortgage-assistance mechanism that issued $20 million in grants to residents to help them avoid foreclosure on their home. Her office also established the Tenant Legal Assistance Program, which used nearly $750,000 to offer free legal advice to people facing eviction. James fought back against real estate development when she said it infringed on communities. During the mid-2000s, she opposed the massive Atlantic Yards development project in Downtown Brooklyn. Councilman Steven Levin, who served beside James from 2010 to 2014, said her yearslong opposition to Atlantic Yards brought increased affordable housing into the final project once it was pushed through. “From the beginning of my career through now, I have always led with one primary goal: to fight for and defend our most vulnerable communities,” James told Crain’s in May. “Throughout the years, I’ve used every resource at my disposal to work toward that objective and to carry out my duties to the best of my ability.”

Although Facebook is under fire these days following a whistleblower’s leak of questionable business practices, James’ office led a 48-state bipartisan coalition in a lawsuit against Facebook in December 2020. In her case against Facebook, James argued that the company uses a “buy and bury” approach to competition, using its huge financial power to purchase up-andcoming competitors, such as Instagram and WhatsApp, to fold them into itself before they can challenge the company’s social media domi-

nance. Google is subject to a separate multistate antitrust lawsuit that makes similar allegations. Like Facebook, Google is accused by James’ office of stifling competition through exclusionary methods. The methods are alleged to include shutting out companies from benefiting from its search engine and forcing competitors into exclusive contracts that limit their business options. “She’s made taking on Big Tech and Big Pharma top priorities and wielded the power of the office to make people’s lives better in a tangible way, not as a platform to promote herself,” said Zephyr Teachout, a lawyer who ran against James in 2018 for attorney general. Consumer and worker protection Throughout James’ public career, she has shown a repeated willingness to favor employees over their employers and consumers over corporations. As New York City’s public advocate, she helped the City Council pass a bill that banned employers from requesting potential employees’ salary history. Under her

guidance, the attorney general’s office sued the Trump administration to ensure an interest-rate cap remained in place. James obtained a court order to stop multiple gyms from charging customers late fees during Covid-19 lockdowns. She secured a settlement with Hillandare Farms after allegations of price gouging, and the corporation donated more than 1 million eggs to food banks across the state. During the pandemic, James’ office has worked to stop companies from raising prices on essential goods related to Covid-19, specifically hand sanitizer. The office has issued 1,900 cease-and-desist orders to companies accused of price gouging. “I serve as a check on power—in government, in the tech industry, in the pharmaceutical industry, on negligent landlords, against dangerous employers, against those committing fraud, and more—and have never shied away from the hardest fights,” James told Crain’s. ■ With reporting by Bloomberg.

LUXURY HOME OF THE WEEK Advertising Section

Big Pharma If James leaves the attorney general’s office for the governor’s mansion, she likely will be remembered for her victory over the Sackler family. Her office’s legal actions shut down Purdue Pharma during the summer and delivered a $4.5 billion payment from the Sacklers to communities affected by the spread of opioids. Since July, James has embarked on a HealNYC tour, aimed at increasing local prevention of and treatment efforts for opioid use. In August 2020 she filed a lawsuit to dissolve the National Rifle Association over allegations of fraud. “When you look at things like the lawsuits with the NRA, Trump and the Sackers, I think she used the office very adeptly to advance the interests of the people of the state, both policy-wise and politically,” DeSio said. James’ office also looked into multinational corporations. Novar-

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ASKED & ANSWERED McKissack & McKissack

WHO SHE IS President and CEO, McKissack & McKissack

INTERVIEW BY NATALIE SACHMECHI

BORN Nashville

group of developers is determined to make history by becoming the first majority-Black team ever to build a skyscraper in the city. Cheryl McKissack Daniel, the fifth-generation owner of construction firm McKissack & McKissack, is part of that consortium, along with developer Don Peebles, architect David Adjaye and Exact Capital Group. The team responded to a request for proposals from the city with its plans for the Affirmation Tower, to be located on a site next to the Javits Center. If successful, the building will have massive implications for diversity in New York City. As head of a minority- and women-owned business enterprise, McKissack Daniel sheds light on the downsides of bearing the MWBE designation— but why such programs are still necessary.

Why has it taken so long for a team like this to come together in New York City?

Just telling someone that Don Peebles and two other Black developers including a woman are looking to build one of the tallest buildings in Manhattan is just a buzz because it’s never happened before. I think timing is everything, and right now the timing is perfect after all that has happened with respect to Covid-19 shedding

BE WHERE

RESIDES Armonk, Westchester County EDUCATION Bachelor’s and master’s in civil engineering, Howard University TEE TIME When she isn’t working, McKissack Daniel enjoys golfing and the occasional cigar. BIG DREAMS McKissack Daniel’s aspirations extend beyond her work at her family’s company. She wants to win the Nobel Peace Prize as an engineer. HISTORY LESSON McKissack & McKissack is the oldest minority-owned construction firm in the country. It was started in 1905 by the grandsons of a slave, who learned the construction trade from his owner. His grandsons earned the first architectural licenses by African Americans in Tennessee in 1922.

light on the inequalities of people of color. And if New York doesn’t do it, then when is it going to happen?

You’re a Black woman running a construction firm. What obstacles do you face? One obstacle that we deal with constantly is that we’re just not considered contractors or developers—we’re considered MWBEs. We are like a subcategory that brings on its own connotations

that people don’t talk about. A lot of times we’re considered to be inferior, that we don’t have the capital, that we don’t have the expertise, that we’re going to cost more—which always drives me nuts. I look forward to that day where I don’t get that comment of “We’re so glad to have McKissack & McKissack on our team because it’s owned by a Black woman or it’s an MWBE.”

Are the city’s MWBE programs helpful? Or do they put firms like yours in a bubble?

The programs absolutely are needed. It’s imperative to have MWBE programs or there would not be any MWBE business ever. People in general continue with the status quo. They work with the people they know unless they want to be innovative. When we look at developments like Hudson Yards or any high-rise around Midtown, there is minimal MWBE involvement. So the private sector is just now getting involved.

What happens if your team doesn’t win the bid for this project?

It would be terrible for New York City. I’m sure other opportunities will present themselves, but this is the best time for this to happen. If it doesn’t happen, it has gotten so much attention that I have gotten inquiries from other cities about it. Do we really want other cities to do this before New York? No, we don’t, but there are other cities that will do it that have the funding and the capital. We’re not asking for a bunch of subsidies—this is straight out of our pockets. This is not just a development. This is a huge statement for New York City. ■

BUCK ENNIS

CHERYL MCKISSACK DANIEL

DOSSIER

BUSINESS HAPPENS

BE IN THE BOOK OF LISTS

Source: BOL- Subscribers – NY, May 1, 2019

Year after year the Book of Lists has been your trusted resource. 95% of readers reference Crain’s Book of Lists again and again throughout the year – guaranteeing wherever business happens, you’ll be right there too. Publishes Dec. 13 | Secure Ad space by Nov. 11 Contact Courtney McCombs at Courtney.McCombs@crainsnewyork.com

16 | CRAIN’S NEW YORK BUSINESS | November 8, 2021

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ADAMS

WORKING THE STREETS: Adams campaigns with a man-of-thepeople touch.

communities. ● Paring down budgets by looking for waste, with an early eye on the city public school system. ● Instituting a 3% to 5% savings program across every city agency, to avoid layoffs while cutting expenses. The former state senator and Brooklyn borough president ran a mayoral campaign that was light on specifics about his priorities if elected. In an Election Day interview with Crain’s, he offered more detail, including an approach to public safety that contrasts significantly with that of his predecessor, Mayor Bill de Blasio. “Immediately, I’m changing the tone,” he said. “I’m going to visit the precincts—I’m going to do this after the election—and have a oneon-one roll call with the officers to tell them that I have their backs to do their jobs.” That type of commitment requires reciprocation that officers must honor, Adams said: New York City police officers must maintain their dignity and treat residents with respect. Improving the relationship between the Police Department and the city’s communities lies at the top of Adams’ public safety agenda. He wants to alter the way advancements within the Police Department are made, so rather than just passing exams and making arrests, officers in an Adams administration will receive promotions for starting a local Little League, forming a basketball camp, interacting with residents and earning recommendations from communities. “I want to promote officers who prevent crime by interacting with their community,” he said. “That should be a pathway to promotion also. That will foster the trust that’s needed.” Throughout the campaign, Adams repeated the mantra: “Public safety is the prerequisite to prosperity.” Political experts say Adams’ appeal rests on his two decades as a city police officer and experience dealing with transit violence. Adams also committed to cutting spending from the city’s education budget, which he argued is skyrock-

BUCK ENNIS

FROM PAGE 1

The city faces additional public policy challenges. New York’s economy remains fragile following nearly two years of various social restriction measures intended to combat the pandemic. Unemployment in the city has remained high—hitting 9.8% in September— and many commuters have yet to return to offices full time. Retail vacancies across Manhattan’s central business districts have soared, and many Midtown business owners have complained about growing homelessness near their stores and restaurants.

General and personal battles Adams said his past struggles have given him the strength to lead. “All of us have general battles, fighting for people, but if we’re honest with ourselves, we also have personal battles,” Adams said. “I’m saying it’s not where you are; it’s who you are.” Adams’ ascent to Gracie Mansion caps a remarkable climb. He was born into poverty in Brownsville, Brooklyn, and raised in South Jamaica, Queens, where he grappled with a learning disability and battled the pull of gang violence. A violent confrontation with police, he has said, led to his career in law enforcement. Rather than hate the officers who hurt him, Adams decided to join them. He graduated second in his class from the New York City Police Academy in 1984, at age 24, and spent the next 22 years serving as an officer for the Transit Police and the city Police Department, eventually rising to the rank of captain. During this time, Adams received a bachelor’s degree from the John Jay College of Criminal Justice and a master’s in public administration from Marist College. He noted that all his adult life he fought feelings of inferiority stemming from living with a learning disability, being called a D student, being arrested, and going to school at night and working menial jobs until he became a police officer. He

“I WANT TO PROMOTE OFFICERS WHO PREVENT CRIME, TO FOSTER TRUST” eting to unsustainable levels. “We’re going to zero in on the Department of Education,” he said. “I think that’s the heart of waste and mismanagement.” Adams said existing contracts across the department are leaving the city with an inferior product and bloated payroll. He said it’s “unimaginable” that with a $38 billion budget, the city’s education system still leaves a majority of Black and brown children failing to meet reading proficiency. “We need to bring back the joy of learning and give the resources to the classrooms,” he said. “Other mayors talk about it, and we’re going to do it.”

said that during the campaign, he shared “these series of stories that defined the dark places of my life” to inspire New Yorkers who find themselves tracing a similar path. “The subtext of this race," he said, was “about the dishwasher who hears there’s no future for him. Then he hears about me and he starts to walk differently and think differently. It may be small steps, but he’s thinking, I’ll start taking those steps to where Eric went.” Adams never shied away from taking steps into politics, even as a police officer. He co-founded 100 Blacks in Law Enforcement Who Care, an organization that merged officers into neighborhood community groups and argued with police brass for greater racial justice. He ran for a congressional seat in 1994, at age 33, but failed to make the ballot. He spoke out against the Police Department’s controversial stop-and-frisk policy and demanded greater accountability for officers accused of police brutality, years before these views became national rallying cries.

Political foundations By the mid-2000s, Adams exchanged his Police Department blues for blue blazers and slacks. He ran for and won a state Senate seat in 2006, where he represented a diverse collection of Brooklyn neighborhoods that included Crown Heights, Flatbush, Park Slope and Prospect Heights. During his seven years in Albany, Adams made friends in high places and courted controversy. Two of his closest allies in the state Senate— Hiram Monserrate and former Minority Leader John Sampson— served time in prison soon after they were expelled from the chamber. He requested a pay raise for his colleagues in 2007 and helped foster a compromise during a bitter Senate leadership crisis in 2009. After winning election in 2013 to the Brooklyn borough presidency, Adams kept a lower profile and began laying the groundwork for his mayoral run by attending local events, giving facetime to neighborhoods and appointing leaders to district community boards.

“He was all over the place,” said Randy Peers, president of the Brooklyn Chamber of Commerce. “He’s a true Brooklynite. He walked the beat as a cop, and he saw it through that lens. And when he was borough president and state senator, he saw it through a different lens.” Adams’ investment in Brooklyn paid off in this year’s Democratic

primary. In an election where New York City used ranked-choice voting for the first time, he won a close one over former de Blasio attorney Maya Wiley and former Department of Sanitation chief Kathryn Garcia. Adams ended up with just 7,197 votes more than Garcia—50.4% to 49.6%—but he dominated in Brooklyn, with more than 36% of first-place votes in the borough. His general election campaign against Sliwa was never competitive. Adams’ fundraising machine leaned into members of the city’s business community—one PAC of billionaires raised $6.9 million for him during the primary—and he owned a nearly 4-to-1 fundraising advantage over the eccentric Republican. Adams’ election comes with a nod to the past: He is only the second Black mayor in New York City’s history, following David Dinkins, a former assemblyman and Manhattan borough president who held office from 1990 to 1993 and lost a close re-election campaign to Rudy Giuliani. Dinkins died in November 2020 at 93. On election night, before celebrating with friends and allies at the Marriott in Downtown Brooklyn, Adams made a bold prediction: “On Jan. 1, if New Yorkers start walking differently and thinking differently and believing in themselves, then we will have won this race and we will have won it for the city,” he said. ■

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RENTALS because they are in rough shape. After it strikes a deal with the landlord, the company invests about $5,000 to renovate a typical unit, a process that takes about five days. The company sends an inspector and a photographer to create a 3D tour of the apartment. The tour is uploaded to a designer, who spends an hour selecting from a menu of color palettes, appliances, floor treatments, furniture and fixtures that suit the unit. The fifth-floor apartment at hand, for example, will get a paint job, new flooring and a new bathroom and kitchen with stainlesssteel appliances, along with a thorough disinfection and patch job, Mishin said. “That means no bedbugs, no rats, no spiders,” he said.

Attractive amenities A two-bedroom unit down the hall that June Homes just finished

ern furniture, recessed lighting, a big-screen BEFORE each unit television and a shower is renovated, an with a profusion of coninspector and a trols. It will rent for about photographer are $1,700 per bedroom, sent to the scene. Mishin said, or $3,350 for the entire apartment. The company said that since its 2017 launch, it has maintained a 98% retention rate with landlords. Property owner Caroline Heimo Massart, for example, said she is satisfied so far renting an apartment in her West Harlem she’s earning more off the apartb r o w n s t o n e ment than she did when she and through June her husband served as the unit’s Homes. The com- superintendent. “It’s much less work,” she said. pany added a wall to create an extra bedroom Tenant concerns and brought in Tenants have written critical two grad students who are “per- online reviews of June Homes, fectly lovely,” she said. reporting that the company is slow Although June Homes takes care to respond to problems. of everything, Heimo Massart said, Mishin acknowledged a rough

“THIS MODEL IS GOOD FOR 150 CITIES GLOBALLY, AND WE WANT TO BE IN ALL OF THEM” refurbishing had the sleek look of a boutique hotel room, sporting gray laminate flooring, white linen curtains, a washer and dryer, mod-

BUCK ENNIS

FROM PAGE 3

patch during the summer, when the company expanded its customer service team from seven to 27. “When we have so much growth … we made mistakes,” he said, adding that the average ticket is now resolved in less than 25 hours. Demand has been high, as people have been moving back to cities. June Homes increased its inventory this year from 800 to 1,900 units across six cities, while

maintaining an occupancy rate above 90%, it said. The company received $27 million in a Series B funding round in September. Mishin said it will use the money to continue its growth. The old-school rental market June Homes is challenging is “inefficient and broken,” Mishin said. “We think this model is good for 150 cities globally,” he said, “and we want to be in all of them.” ■

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HONOR, COURAGE, COMMITMENT Leading an organization is challenging in the best of times. As the country emerges from the pandemic, leadership has become even more complicated, demanding and necessary. Some leaders find their military training and service a powerful asset in today’s unpredictable business environment. Increasingly, leaders need to know how to think on their feet and keep their teams inspired to embrace a spirit of service, no matter what circumstances their organizations face.

ISTOCK

Crain’s Notable Veteran Executives list will introduce readers to some of the remarkable leaders in New York City who have brought the best of their military experience and training to their work. Nearly 750,000 veterans live in New York state, and a substantial portion of them live in the New York metropolitan area. They have made and continue to make significant contributions to local organizations in industries such as construction, entertainment, financial services, health care, law and real estate. Find inspiration in their stories on this and the pages that follow. 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, honorees had to be employed within New York City or the surrounding counties and be a U.S. veteran according to the Veterans Administration, serving in a senior level role at their company, with an annual revenue of at least $10 million. Honorees had to show significant contributions to advancing the issues that affect veterans, or have served as a role model or mentor for veterans.

JOSE ABREU

BRAD ARNER

Jose Abreu, a 14-year veteran of Turner Construction Co., started his career as a superintendent and worked his way up the ranks, working with high-profile clients such as Lincoln Center Development, New York University Medical Center and Stony Brook University. Abreu is the co-lead and a founding member of Veterans Network Employee Resource Group, which focuses on the career development of veterans who work for Turner, and he has helped to expand the program to locations outside of New York City. Abreu was an aviation support equipment technician in the U.S. Navy.

Brad Arner, an expert in full-stack software development, is the engineering lead for Unite Us, a platform that connects health care and social care providers. Under his guidance, the platform has shifted into longitudinal care coordination that makes it easier for community-care organizations to get paid for services and allows for better tracking of data used in decision-making. Arner has led the growth of the company’s technology team during a period when the company has raised $150 million in Series C funding. He has built software for startups since he left the U.S. Army, where he served in Iraq and Africa.

Project manager Turner Construction Co.

Vice president, engineering Unite Us

MORE THAN 9,000 FIRMS HAVE NEW YORK CITY CERTIFICATION AS VETERAN-OWNED BUSINESSES. —CITY DEPARTMENT OF VETERANS SERVICES

ROBERT BAZAN

KRYSTYNA BLAKESLEE

Senior vice president, operations Chelsea Lighting

Partner Willkie Farr & Gallagher LLP

Robert Bazan, who has had a 29-year career in lighting at four lighting manufacturers, has helped Chelsea Lighting improve minority representation in the firm’s workforce by 10% and women’s representation by 20%, and he has driven a 200% increase in the hiring of military veterans. Bazan was the firm’s first veteran hire, in 2016. He retired from a 30-year career in the U.S. Navy in 2016 as a captain. Although Bazan served in the Navy, he was a commanding officer of a ground forces base in northern Afghanistan. He received his bachelor’s degree in engineering from the U.S. Naval Academy. Bazan is past commander and board chairman of American Legion Post 336 in Glenwood Landing, New York.

Krystyna Blakeslee, who joined Willkie Farr & Gallagher LLP in 2020, guides global banks and other large lenders through complex real estate financings. She recently led a $500 million CMBS loan secured by a portfolio of 86 industrial properties across the U.S., $490 million mortgage loan secured by real property in the Northeast, and $500 million forward purchase facility for a global lender to provide acquisition financing to properties. Blakeslee, a former U.S. Marine Corps sergeant, leads the firm’s Veterans Affinity Group. She has represented veterans honorably discharged because of post-traumatic stress disorder in pro bono cases in which they sought improved disability coverage or benefits.

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BROCKTON BOSSON

DANIEL CARACCIO

Brocton Bosson leads international compliance matters for WeWork and the asset manager Brookfield. Bosson represented Tesla after Elon Musk’s 2018 tweets about taking the company private. He helped successfully conclude Department of Justice and Securities and Exchange Commission investigations of Walmart and its subsidiary operations. Bosson, a U.S. Army veteran, founded and leads Cahill’s Veterans New Business Initiative, a program that has assisted veterans from the Vietnam era, the Persian Gulf War and the global war on terrorism in starting businesses. Through the initiative, the firm’s attorneys work as early-stage general counsel, supporting the veterans as they transition into the private sector.

Daniel Caraccio helps clients, including municipalities, reduce their environmental footprint. Caraccio is responsible for all waste transfer stations in New York City, which account for 1.1 million tons of waste per day. The company’s sales and operations planning program also fall under his purview. He recently led a major restructuring of the firm’s team while serving customers under pandemic-related protocols. Caraccio, a graduate of the U.S. Military Academy and a former infantry officer in the U.S. Army, is executive sponsor of the firm’s military employee resource group, which is dedicated to hiring veterans. He is active in Covanta’s Flags Across America program and U.S. Flags Disposal Program. These initiatives seek to dispose of wreaths on veterans’ graves sustainably, safely and respectfully.

Partner Cahill Gordon and Reindel LLP

Vice president, general manager Covanta Sustainable Solutions

JAMES CARR

Senior director, enterprise information technology services, infrastructure services NYC Health + Hospitals

James Carr has played a pivotal role in keeping the information technology infrastructure of the largest public health care system in the world humming. Carr has been involved in projects ranging from setting up Covid-19 vaccination areas to upgrading computers in an outpatient clinic. He is former national vice president, national fundraising director and five-time past chapter president of the Montford Point Marine Association. Carr is vice president, operations, of the New York Committee of the Marine Corps Scholarship Foundation. He was instrumental in creating “Veterans in Focus,” a dedicated page on the organization’s intranet site. Carr was a master gunnery sergeant in the U.S. Marine Corps, stationed in Afghanistan, Iraq and Kuwait.

DEAN CHAMBERLAIN

Chairman, chief executive officer Mischler Financial Group

In 2011 Dean Chamberlain became chief executive officer of Mischler Financial Group, the nation’s oldest diversity-certified investment bank, which is owned and operated by service-disabled veterans. This step in Chamberlain’s career came after senior roles at major investment banks. He has doubled the size of the company’s team; greatly expanded its equity, debt and municipal underwriting businesses; and transformed the company’s market trade execution platform. Chamberlain, a graduate of the U.S. Military Academy, was a captain in the U.S. Army. He received service-disabled veteran certification following mission-related injuries. Chamberlain serves in a variety of charitable positions with a focus on disabled veterans and disadvantaged children.

MICHAEL CZUMAK

Vice president, chief information security officer Memorial Sloan Kettering Cancer Center

As Memorial Sloan Kettering Cancer Center’s first information security officer, Michael Czumak came up with a comprehensive enterprise security strategy to manage risk. His team led pandemic-response efforts to provide quick and secure remote access to 12,000 employees, and it partnered with human resources to introduce the center’s first remote new-employee onboarding process. Czumak is executive sponsor of the Veteran Employee Resource Group. In New York, he has led a toiletries drive for homeless veterans and a care package drive for veterans. Czumak, a keynote speaker at the organization’s veteran events, received a master’s degree as a distinguished graduate of the Air Force Institute of Technology.

IN NEW YORK STATE, 855 CERTIFIED SERVICE-DISABLED VETERAN-OWNED BUSINESSES ARE ACTIVE. LAST YEAR 178 WERE CERTIFIED. —STATE OFFICE OF GENERAL SERVICES

JOHN FITZSIMMONS Senior director, head of commercial property management Lefrak

John Fitzsimmons, a 20-year veteran of New York City’s real estate industry, is responsible for the day-today operations and management of Lefrak’s commercial office and retail real estate portfolio. Fitzsimmons, previously regional director of property management for CIM, has worked for Tishman Speyer, CBRE and APF Properties. He is the founder of the Military Initiative at Tuesday’s Children, a nonprofit that provides programs and support to the widows and children of deceased veterans. Fitzsimmons spent five years in the U.S. Marine Corps, and he continues his service in the Marine Corps Reserve. He served tours of duty in Iraq, and he was deployed to Kuwait, Mongolia, Japan, Norway and countries in Africa.

ROBERT “BOBBY” FORLOINE Construction manager, Manhattan construction management, gas Con Edison

After joining Con Edison in 2010, Robert “Bobby” Forloine has risen through the ranks to become construction manager. He was recognized for leading his team in finishing a major portion of the Manhattan gas main and service installations. Forloine, known as an advocate for reservists and National Guard members, is co-lead of Veterans of Con Edison Inc. With 600 employees, it’s the largest staff resource group across the Con Edison family of companies, and he has been on its executive board since it started. Forloine has been pivotal in shaping the company’s policies, community volunteer efforts and mentoring programs for veterans. Forloine is on the board of VetsEDU, a not-for-profit that educates veterans and their families on the home loan process. He served four years in the U.S. Marine Corps.

PATRICK HANLEY

Section manager, Bronx/ Westchester electric overhead Con Edison

Patrick Hanley became manager of Con Edison’s Bronx/ Westchester overhead construction service this year. Hanley, who joined the company in 2006, previously worked in several other roles. He led Con Edison’s response to Hurricane Ida in Jackson, Mississippi, and Ponchatoula, Louisiana. His team safely replaced more than 8 miles of electric lines and restored power to more than 600 homes. Hanley was an early member of the company’s Veterans Steering Committee, which morphed into its employee resource group for veterans, which he co-leads. He has a leadership role in the veterans’ support ministry of his local church, where he works with those suffering from post-traumatic stress disorder. Hanley was selected to represent his company at the upcoming Vets Indexes conference on employing U.S. veterans. He is a commander in the U.S. Coast Guard Reserve.

JONTÉ HARRELL

Head of equity capital markets Drexel Hamilton

In addition to his role at Drexel Hamilton, a 100% military-owned investment bank, Jonté Harrell is the founder and managing partner of Ossian Capital, an early-stage “venture catalyst” that focuses on underrepresented minorities and veterans. He is chief financial officer in residence of Columbia Startup Lab. Hamilton previously was global head of financial planning and analysis for Amazon’s Prime Now Business, where he streamlined the integration of grocery delivery when Whole Foods was acquired. He is a graduate of the U.S. Military Academy, where he played on the Division 1 basketball team, and a former U.S. Army captain. Hamilton was awarded the Bronze Star medal for combat leadership during the Iraq War.

RICHARD JONES

Executive vice president, general tax counsel, chief veteran officer ViacomCBS

At ViacomCBS, Richard Jones leads the worldwide tax practice, overseeing tax planning, strategy, operations, risk management litigation, government relations and legislative initiatives. Jones also leads the ViacomCBS Veterans Network, which he founded more than 10 years ago at CBS Corp. The group, known as Vet Net, has grown to more than 2,000 members and supporters. It has organized more than 6,000 hours of free legal counsel to veterans and military families, mentored more than 1,000 veteran interns and mentees, and partnered on more than 3,100 veteran-related public service announcements. In addition, Vet Net has provided feedback from veterans to ensure the military is accurately and respectfully portrayed in more than 150 television episodes. Jones is on the board of Wounded Warriors, among several other veteran service organizations. He is a retired Army ranger.

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VIACOMCBS IS PROUD TO SALUTE

RICHARD M. JONES CONGRATULATIONS ON BEING NAMED ONE OF CRAIN’S 2021 NOTABLE VETERAN EXECUTIVES

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VANYA KASANOF

Managing director, consumer and retail group, investment banking division Goldman Sachs

Vanya Kasanof of Goldman Sachs advises consumer and retail companies as they consider transactions. In addition, Kasanof advises companies on mergers and acquisitions and going public. He is chief operating officer of the Goldman Sachs American Veterans Network, where he advocates transitioning veterans into civilian life and financial services. On behalf of veterans, he has led a mentorship program; an initiative involving service opportunities for military spouses; and after the recent U.S. withdrawal from Afghanistan, a “safe space” roundtable for veterans. Kasanof was an officer in the U.S. Marine Corps, and he worked on Capitol Hill in the New York governor’s office.

DANIEL MOORE President, CEO Rockefeller Group

Daniel Moore joined the Rockefeller Group, a 100-yearold organization, in 2016 as head of urban development. Moore has helped strengthen the group’s core office portfolio in New York—which now includes 6 million square feet in Rockefeller Center—and expand the brand into the Washington, D.C., and Rocky Mountain regions for the first time. Since rising to chief executive officer in 2018, he has steered the company to record profitability on its development projects, among them the 2020 sale of 10 Edison, a 900,022-square-foot speculative distribution center in New Jersey. The company repositioned 1271 Sixth Ave., a 48-story skyscraper, via a $650 million redevelopment, bringing it from a 100% vacancy rate to full occupancy in five years. Moore is a former U.S. Air Force captain.

SEVENTYFIVE PERCENT OF CERTIFIED VETERAN-OWNED BUSINESSES HAVE WON CONTRACTS WITH NEW YORK CITY AGENCIES —CITY DEPARTMENT OF VETERANS SERVICES

MARTIN MURPHY

Engineering manager; mechanical, electrical and plumbing Turner Construction Co.

Martin Murphy is a 33-year-veteran of the New York City construction industry. He started out with Turned in 2002 as a mechanical-electrical-plumbing superintendent for the Brookfield Financial Properties’ 300 Madison Ave. Project. His specialty is building complex facilities in the health care, commercial and cultural markets. The projects he has worked on include the Oxford Properties Group’s development at 550 Washington St. in New York City and the designing and building of a field hospital at the Stony Brook University Alternative Care Facility on Long Island. He is a founding member of Turner’s Veterans Network Employee Resource Group. Murphy spent eight years in the U.S. Army Reserve as a heavy-equipment mechanic.

MATTHEW NOLTY

S W

Founder, CEO Greenway USA

Matthew Nolty rose through the ranks at Skanska USA and STV Construction before he started Greenway USA, a construction management, general-contracting-facilities management firm. Nolty grew Greenway from a one-person business to a $9 million firm, juggling this with several recalls to active duty in the U.S. Navy, including a full-year deployment in 2012-13 in Afghanistan. Nolty began his military career as an ensign after graduating from the State University of New York Maritime College. He spent 30 years as an active duty and reserve officer and retired in May of this year as a surface warfare officer with a captain’s rank.

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22 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 8, 2021

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t W i

R r s w s c s A a t a p m w a r s N m s c

DIEGO RUBIO

THOMAS SCAZZAFAVO

Diego Rubio leads teams in the risk-management space at Wells Fargo, providing expertise in performance improvement; change management; and audit, training and enhancing regulatory programs at financial institutions. Rubio joined Wells Fargo’s risk-management group as senior vice president. Earlier he was a manager in advisory services at Ernst & Young. Rubio came to corporate America after serving as an officer in the U.S. Army, where he was senior adviser for logistics and operations support in Afghanistan. In addition, he led a training program that brought together military personnel to consider ways to work with the Afghan army and the police in the region. Rubio participates in several veterans initiatives in New York City. He is a board member of several veteran service organizations in the country.

Thomas Scazzafavo advises global financial institutions on anti-money-laundering regulatory compliance, risk assessments, sanctions compliance, fraud prevention and IT transformation. Scazzafavo joined EY in 2012 and rose quickly to become senior manager, consulting. He started his military service in college as a member of Navy ROTC. After graduation, he became a Navy surface warfare officer; he was deployed to the Persian Gulf as part of Operation Enduring Freedom in Afghanistan and Operation Iraqi Freedom in Iraq. He later oversaw maritime operations and worked on intelligence analysis focused on terrorist financing done through smuggling and money laundering. Scazzafavo has taught leadership and ethics courses in the Department of Seamanship at the U.S. Naval Academy.

Senior vice president Wells Fargo

Senior manager, consulting EY

THE UNEMPLOYMENT RATE FOR U.S. VETERANS WAS 3.9% IN SEPTEMBER. —U.S. DEPARTMENT OF LABOR

COLIN SCHMITT

CROFT YOUNG

Colin Schmitt, elected to the New York Assembly in 2018 and re-elected in 2020, serves parts of Orange and Rockland counties. Schmitt has focused many of his efforts on constituent services. He has created a small business of the month appreciation program, the 99th Assembly District Art Showcase and the Veterans Hall of Fame initiative. Schmitt, a sergeant in the U.S. Army National Guard, was activated for the Covid-19 relief mission. He is a licensed commercial real estate broker. Before he was elected to the Assembly, Schmitt was chief of staff for the Orange County town of New Windsor. After college, he joined the staff of state Sen. Greg Ball as director of operations for the state Senate’s Veterans, Homeland Security and Military Affairs committee.

While in the U.S. Marine Corps from 2002 through 2006, Croft Young was deployed twice to Iraq. As a captain, he led a reconnaissance platoon near Fallujah. After receiving his master’s degree in business administration at the University of North Carolina at Chapel Hill in 2009, Young joined Morgan Stanley, where he works in real estate, gaming, lodging and investment banking. Young is a founding board member and a treasurer of the Travis Manion Foundation, a nonprofit that empowers veterans and the families of fallen service members to develop the mind, body and character of young people. The foundation’s mission is to create a diverse, equitable and inclusive community.

Assemblyman, New York

Managing director Morgan Stanley

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Notice of Formation of SIZZLES & BERNS, LLC. Arts of Org. filed with Sec’y of State of NY (SSNY) on 8/9/21. Office Loc: NY County. SSNY designated as agent upon whom process may be served. SSNY shall mail process to the LLC, 471 Central Park West, 5D. New York, NY 10025. Purpose: Any lawful activity. Notice of Qualification of Mami Pi, LLC. Authority filed with Secy. of State of NY (SSNY) on 09/09/21. Office location: NY County. LLC formed in Delaware (DE) on 09/03/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Steve Bills, 16633 Ventura Blvd., Ste. 815, Encino, CA 91436. Address to be maintained in DE: 1013 Centre Rd., Ste. 403S, Wilmington, DE 19805. Arts of Org. filed with the Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities. Notice of Formation of SALT 154, LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/19/21. Office location: NY County. Princ. office of LLC: 154 W. 120th St., NY, NY 10027. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Andre Adams at the princ. office of the LLC. Purpose: Real estate.

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PUBLIC & LEGAL NOTICES Notice of Qualification of Brilliant Earth, LLC. Authority filed with Secy. of State of NY (SSNY) on 06/14/21. Office location: NY County. LLC formed in Delaware (DE) on 11/29/12. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 26 O’Farrell St, 10th Fl., San Francisco, CA 94108. Address to be maintained in DE: 3500 S DuPont Hwy., Dover, DE 19901. Arts of Org. filed with the Secy. of State, 401 Federal St #4, Dover, DE 19901. Purpose: any lawful activities.

Notice of Formation of Limited Liability Company (LLC). NAME: ROOXY LLC - Articles of Organization filed with the Secretary of State of New York (SSNY) on 08/23/2021. Office location: NEW YORK County. SSNY shall mail a copy of process to: The LLC, 98 E BROADWAY STE 309, NEW YORK NY 10002. Purpose: Any lawful purpose.

Notice of Qualification of STORMFIELD CAPITAL FUNDING I, LLC. Authority filed with Secy. of State of NY (SSNY) on 09/08/21. Office location: NY County. LLC formed in Connecticut (CT) on 06/01/15. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 200 Pequot Ave., Southport, CT 06890, also the address to be maintained in CT. Arts of Org. filed with the Secy. of State, 165 Capitol Ave., Ste. 1000, Hartford, CT 06106. Purpose: any lawful activities.

Notice of Qualification of CityRock Venture Partners II, L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/04/21. Office location: NY County. LP formed in Delaware (DE) on 07/16/21. Duration of LP is Perpetual. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Name and addr. of each general partner are available from SSNY. DE addr. of LP: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of LP filed with Secy. of State of the State of DE, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Qualification of ASTER AND HONEY, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 09/24/21. Office location: NY County. LLC formed in Delaware (DE) on 09/23/21. Princ. office of LLC: 300 E. 56th St., Apt. 28C, 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 princ. office of the LLC. DE addr. of LLC: c/o Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Formation of FRANK ROMOFF PARTNERS LLCArts. of Org. filed with Secy. of State of NY (SSNY) on 08/02/21. Office location: NY County. Princ. office of LLC: 77 Charlton St., Ste. 10E, NY, NY 10014. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Lawrence Spielman, SKP, LLP, 1675 Broadway, 20th Fl., NY, NY 10019. Purpose: Investment rental property.

Notice of Formation of 900 AFFORDABLE GP, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 09/23/21. Office location: NY County. Princ. office of LLC: 30 Hudson Yards, NY, NY 10001. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Purpose: Any lawful activity.

Notice of Qualification of CSC GP, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/06/21. Office location: NY County. LLC formed in Delaware (DE) on 04/06/06. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 55 E. 52nd St., 34th Fl., NY, NY 10055. DE addr. of LLC: Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., #4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of BROOKFIELD PROPERTIES (USA) LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/05/21. Office location: NY County. LLC formed in Delaware (DE) on 10/13/17. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St. - Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Formation of NEXT GENERATION SIMULATORS LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/14/2020. Office location: New York County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 883 AVENUE OF THE AMERICAS, Fl 3, NEW YORK, NY 10001 Purpose: Any lawful activity.

Notice of Formation of FIVE IRON GOLF SEATTLE LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 5/28/2021. Office location: New York County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 883 AVENUE OF THE AMERICAS, Fl 3, NEW YORK, NY 10001 Purpose: Any lawful activity.

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NEW YORK BLOOD CENTER processes blood donations in a 75,000-square-foot laboratory in Long Island City that it THE HEART OF THE PROCESS THE leases for a little less than $2 million per year. There are 203 employees based there.

PHOTOGRAPHY BUCK ENNIS

BAGS OF whole blood are spun in a centrifuge to separate the red blood cells and plasma into layers (1). A machine squeezes the plasma into its own bags (2). Once samples from each bag test negative for infectious

dise

BLOOD

hun Th efits size hos lots

FROM PAGE 1

business, by snapping up blood centers across the country, launching alternative revenue streams and doling out six-figure bonuses to its executives: the New York Blood Center, which provides as much as 90% of the city’s supply. The nonprofit has spent the past decade building an empire that now spans five blood centers serving 17 states, a genomics lab, a research institute and a number of clinical-services programs that collectively employ roughly 2,000 workers. Its annual revenue surged 24% in the most recently reported fiscal year, to nearly $500 million. The federal government has defined blood as an economic commodity subject to U.S. trade laws, and blood industry executives say a corporation-style playbook is well suited for managing the valuable product. It’s a booming business, according to interviews with a dozen industry experts, including current

blood typing and storage. New York City’s rich academic medical ecosystem was particularly fertile ground for the burgeoning field. It was at Mount Sinai Hospital where a doctor first used blood types to match donations to recipients. At New York–Presbyterian, where doctors experimented with storing blood rather than immediately transfusing it, a new industry model was born. The Blood Transfusion Betterment Association of New York City, founded in 1929 with funding from John Rockefeller Jr., pioneered a professional donor-vetting process to tame what was then a fly-bynight industry. Blood centers, which are regulated by the U.S. Food and Drug Administration and local health departments, “manufacture” the blood they collect and test it for infectious diseases and possible contaminants. The lofty expense is financed largely by the fees that hospitals pay them for transfusable blood. The New York Blood Center uses a 75,000-square-foot laboratory in Long Island City that it leases for a little less than $2 million per year. (It has a similar facility in Westbury on Long Island.) By 2009, two years after the center moved in, the builtout space in Long Island City and its equipment were valued at more than $50 million, according to tax filings. More than 200 employees are based there. Every aspect of the manufacturing process is deliberate and subject to some form of regulation or testing, even the cardboard boxes used to transport blood—which cost $25 to $30 apiece. The process can take days. The blood center spent more than $256 million on processing in fiscal 2020, when it reported nearly $269 million in revenue, according to tax filings. Every year in the past decade, the center reported a surplus in its blood-services division,

“IT’S NOT COST-EFFECTIVE TO HAVE A HOSPITAL-BASED BLOOD BANK” and former executives and employees of blood centers in New York and elsewhere, as well as a review of hundreds of pages of nonprofit tax filings. Prices are rising, and a frenzy of mergers and acquisitions is creating hospital behemoths with huge market share and even greater supply needs. Meanwhile, hospital-based blood banks are growing scarcer, and the pandemic is accelerating demand.

Expensive and complex Transfusing blood is a complex, expensive and time-consuming process that’s possible only because of scientific advances in the 19th and 20th centuries related to

which collects, processes and sells blood products to hospitals. The center spends that surplus on other expenses including research ($22 million in fiscal 2020) and salaries and benefits ($178 million). In fiscal 2020 the blood center paid its chief executive, Dr. Christopher Hillyer, more than $1.8 million, including benefits and a $600,000 bonus. That’s more than twice what the Red Cross’s CEO made in its most recently reported fiscal year. Chief Financial Officer Jay Mohr declined to disclose the blood center’s budget thresholds for triggering bonuses, but a 2009 tax filing states Hillyer’s compensation was set using an “initial contract exception,” meaning compensation surveys and data used to set other executives’ pay were not used for Hillyer’s contract. Hillyer is not the only highly paid executive at the center; nine others were paid north of $400,000 in fiscal 2020, a year in which there were three different CFOs on the payroll. Mohr joined just after that, in the summer of 2020.

Bad blood The New York Blood Center’s monopoly is a remnant of a longstanding turf war and decades of mutual animosity between the American Red Cross and the American Association of Blood Banks, a national membership organization. The Red Cross formed the country’s first blood-center network during World War II to support Allied troops but closed its centers after the war ended. Independent blood centers started popping up to fill the vacuum. The Red Cross soon declared plans to not only re-enter blood banking but to become the nation’s “total” supplier. It started in communities where local blood banks had not yet put down roots, but the independents preempted any encroachment on their territory by forming their association in 1947. Eventually the country was roughly evenly divided between Red Cross turf and the indepen-

dents, which prevailed in New York. “It was as if two fundamentalist churches were competing—each energetically proselytizing and each proclaiming its righteousness over the other,” journalist Douglas Starr wrote in the 1998 book Blood: An Epic History of Medicine and Commerce. By the 1950s, New York City had more than 150 blood centers—and the result was as chaotic as it sounds. Untrained profiteers formed their own blood blanks to exploit rising demand driven by new medical advances that consumed tons of it. To get blood, they solicited paid donations from a largely down-and-out crowd at higher risk of infectious diseases. At least 42% of the city’s supply came from paid donors by the decade’s latter half, compared with a national average of 10%. Dr. Aaron Kellner, a reformer, launched a $9.2 million campaign in 1963 to remedy the city’s “deplorable” blood-procurement conditions. He opened what would become the New York Blood Center on the Upper East Side the following year. As the blood center built a reputation for medical expertise and a focus on research, the Red Cross could not gain a foothold in the city. Still, the air of competition lingered. The blood center used to test blood itself, but it shut down its screening lab in 1997, after federal prosecutors filed criminal charges over improper testing procedures. It initially outsourced testing to the Red Cross, sending samples to Boston and Philadelphia, but switched to a company in Arizona to avoid giving business to its fiercest competitor, said Donna Strauss, the center’s vice president of laboratories. It now conducts testing at the Rhode Island Blood Center, which it acquired in 2017. The organization’s only challenger these days is Metro Blood Service, a nonprofit in Yonkers with 27 employees that nonetheless does tens of millions of dollars in business with major hospitals, includ-

ing Mount Sinai. It essentially operates as an intermediary, buying excess blood products from centers in other parts of the country and selling them to hospitals in the city. Metro President Larry Kelleher declined to be interviewed, and the nonprofit does not appear to have a website, but publicly available tax filings shed some light on the enterprise. Its revenue more than doubled to $12.3 million in fiscal 2019, the most recent year for which records were available, while expenses decreased. It ended up with a $6.5 million surplus. Hospital consolidations have all but ensured monopolies in the blood-banking industry. Large health systems need more blood, so they turn to large blood centers that can offer them a reliable supply. The New York Blood Center has responded with a recent acquisition spree, stretching from Rhode Island to Kansas. Don Berglund, who was CEO of Innovative Blood Resources in Minneapolis–Saint Paul when the blood center acquired it in 2017, said the deal “really turned the tide for some big customers that we hadn’t been serving that we do now.” The consolidation coincides with hospitals closing their own blood banks and donor rooms. Hospitals cite the high costs to process blood and the difficulty of attracting enough donations to meet their demands. “It’s not cost-effective to have a hospital-based blood bank,” said Dr. Jeffrey Jhang, director of the blood bank and transfusion services at Mount Sinai Health System. “We’re not going to be able to do it cheaper than the blood centers.” Representatives from national blood-industry groups say hospital consolidation and the corresponding increase in bargaining power have stabilized or driven down prices for blood products. Jhang said that is not Mount Sinai’s experience, however. Its blood costs have been increasing about 3% per year, he said, a matter of at least

WHERE THE BLOOD CENTER’S MONEY FLOWS

$256M

AMOUNT the New York Blood Center spent on processing blood in fiscal 2020

$22M

AMOUNT spent on research expenses

$178M

MONEY spent on salaries and benefits for its 1,749 employees

$1.8M

COMPENSATION for CEO Dr. Christopher Hillyer, including a $600,000 bonus

SOURCES: Fiscal year 2020 tax filings, New York Blood Center

26 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 8, 2021

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diseases, the bags are labeled by blood type (3). Bags are wheeled into a refrigerator and sorted by blood type (4). The processed blood products are packed into boxes to be delivered to hospitals (5). hundreds of thousands of dollars. The New York Blood Center benefits from the relationship between size and bargaining power; it is city hospitals’ only option if they need lots of blood quickly.

Courting controversy The blood center’s expansion aspirations now extend vertically—in the form of a $750 million proposal with Boston-based developer Longfellow to turn its Upper East Side research facility into a 16-story life sciences hub. The blood center would occupy about a third of the tower, and Longfellow, in exchange for paying for construction costs, would lease the remaining space to

academic and startup companies in the life sciences. If their rezoning application prevails, it will be despite vehement opposition from neighbors and local elected officials, including City Councilman Ben Kallos, who has derided it as a ruse to “print money.” “I’ve never seen a project like this that is being this hostile to the elected officials,” Kallos told Crain’s in May. The center has spent roughly $1 million since 2019 to develop and promote the proposal, city lobbying records show. The center’s ambitions to squeeze more from its site are decades old, former employees said. Richard

Bonomo, a former center researcher who patented a process to deactivate viruses in plasma, recalled a “brief flirtation” in the 1980s with selling the building’s air rights to bring in additional revenue. Norman Selby, who was chief operating officer at the time, said it was no more than talk, but he said executives considered Center East an underutilized piece of valuable real estate and posed many ideas on how to better use the space or add to it. Selby, who was brought over from McKinsey in the late 1980s to lead a financial turnaround at the center, said the nonprofit had to be financially self-sufficient to cover its high fixed costs, especially because little

of its revenue comes from monetary donations. “We had to make money,” Selby said. The center has long chased alternative revenue streams. Royalties from its researchers’ inventions, like the one Bonomo helped conceive, used to bring in millions in revenue each year. Starting in 2018, that revenue stream dwindled; Mohr, the CFO, attributed the drop to patents expiring. Another of its creations, a software platform for managing blood center operations, spawned the Boss Solutions Group, a consulting and IT spinout, which it sold in 2010 for an undisclosed sum. The center also invests surplus

cash in private-equity funds— which has proved lucrative. The center’s endowment now stands at $380 million. Recent acquisitions helped push its annual revenue from $391 million in fiscal 2019 to $483.5 million the following year. Mohr said he is prioritizing an expansion of the licensing department to commercialize researchers’ discoveries, a division he said had been deprioritized during the past decade. He also is projecting massive growth in the center’s cell-therapy business. And the blood center is continuing to push into new markets. Last week it opened a new donor center in Connecticut. ■

CRAIN’S NEW YORK BUSINESS 20 202 22

MINORITY EXECUTIVES IN COMMERCIAL BANKING

Honor Minority Executives in Commercial Banking This is a special print and digital editorial feature within Crain’s January 17, 2022 issue that will recognize minority leaders and executives who are currently serving in a Vice President or senior level role in commercial banking for at least 10 years. Nominees must also serve as role models or mentors to others and/or promote inclusive practices in the workplace. We are welcoming nominations to help us determine those recognized in this feature.

SUBMIT TODAY:

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enter

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A FAIR ROLLOUT FOR RECREATIONAL MARIJUANA With New York’s legalization of adult-use marijuana

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