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

ASKED & ANSWERED How tech can free up medical workers for other tasks

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SUBWAY SHOPS Transit riders hold the key to Turnstyle vendors’ fortunes PAGE 3

CRAINSNEWYORK.COM

NOVEMBER 29, 2021

TOURISM

How to fill 137,500 hospitality jobs? Robots Automation is replacing order-takers, servers, tour guides, prep cooks BY CARA EISENPRESS AND AMANDA GLODOWSKI

A SWERVE FITNESS now provides live cycling videos for gyms.

SMALL BUSINESS

WORKING IT OUT BUCK ENNIS

Boutique fitness studios are feeling the weight of adapting to a post-pandemic landscape BY ALEXANDRA WHITE

NEWSPAPER

VOL. 37, NO. 43

hen Swerve Fitness closed its doors in March 2020, the Flatiron District–based cycling studio rented out its bikes and hosted classes on Zoom. But its revenue was still down about 70%. After noticing the popularity of virtual fitness during the pandemic, co-founders Eric Posner and John Henry McNierney spent a year converting their business from a brick-and-mortar boutique fitness studio to a business-to-business company that provides live cycling videos to gyms. “We had to get creative,” Posner said. “It’s evolve or die.” Allowed to reopen in March, boutique fitness studios are still struggling to recover their 2019 membership and revenue levels as the pandemic leaves a lasting impact on consumer behavior. And as office employees largely continue to stay home, they See FITNESS on page 22

HOW BUILD BACK BETTER WILL AFFECT NEW YORK PAGE 16

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ll summer, when guests arrived at the Arlo Roof Top, a cocktail bar atop the Arlo SoHo hotel, servers performed many typical duties: greeted groups, answered their questions about drinks or food, and suggested second margaritas when the first round was nearly done. But up there on the sunny roof, the servers did not take customer orders. Instead, they helped customers order via their smartphones, with their selections feeding directly into point-of-sale systems behind the bar or in the kitchen. In early 2020, nearly half a million New Yorkers worked in the city’s sprawling leisure and hospitality sector, which includes restaurants, bars, hotels, sightseeing spots and arts institutions. Nearly two years later, one-third of the jobs—137,500—are still missing, according to an analysis of New York Department of Labor figures, compared to a pre-pandemic six-month average by Barbara Denham, an economist at Oxford Economics. Many other industries, from software publishing to investment banking, lost far fewer positions or recovered them quickly. In the place of workers are downscaled services and myriad forms of customer self-service. Many of the latter are powered by technology: tablets and QR code-enabled See ROBOTS on page 18

RESIDENTIAL SPOTLIGHT

A downtown home appeals to artists, authors PAGE 4

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POLITICS

BY BRIAN PASCUS

he City Council’s government operations committee voted last Monday to establish the Mayor’s Office of Not-for-Profit Organization Services. Sponsored by Brooklyn Councilwoman Farah Louis, the measure would take effect just months after Mayor-elect Eric Adams takes over. The committee passed the measure by a 7-0 vote; the bill is expected to get a full chamber vote Dec. 5. “We see a great future for this bill and this agency once it’s created,” said Clark Peña, legislative director for Councilman Fernando Cabrera, chairman of the committee. “Most of the individuals creating nonprofits help communities and communities of color, and we should be assisting them.” The new office would serve as a liaison to citywide nonprofits— which involve industries as diverse as technology and housing as well as immigration, banking and social services. The office would bridge the gap between varying advocacy

groups and city government by offering technical assistance on contracting, applications for funding and regulatory policy. The office would conduct outreach, maintain a central website and make referrals to state agencies. It would connect nonprofits with state funding while developing advisory committees to study challenges and recommend policies to the mayor. Louis’ and Cabrera’s offices were unable to estimate the head count or budget for the new office. “This bill is not the end-all, be-all. This is a step in the right direction toward addressing some of the more prevalent and critical shortcomings within this sector,” Louis said. “As a city, we recognize that running a nonprofit organization is never easy, and it can be difficult to navigate the checks and balances in place.”

FARAH LOUIS FOR CITY COUNCIL

City Council steps toward establishing office to connect nonprofits with government agencies

pay out $42 billion in wages per year to roughly one-fifth of the city’s private workforce, the report said. The new office would begin work 90 days after the bill’s passage—potentially March 5. The City Council finance division said it doesn’t expect any additional spending to go toward the office in the next fiscal year because the existing nonprofit resiliency committee will use available resources. Mayor Bill de Blasio formed that committee in 2016 to serve as an advisory group between the mayor’s office and the nonprofit human

Economic output A July 2020 report from city Comptroller Scott Stringer found that nonprofits were responsible for nearly a 10th ($77 billion) of the city’s economic output. Nonprofits

services sector. More than 100 nonprofits, including Bronxworks, the YMCA, the New York Urban LOUIS (second League and from left) the Chinese speaks with American some of her Planning constituents. Council, currently participate in the program, providing policy recommendations. Of the $30.4 billion in citywide procurement this year, 40%—$12 billion—went to nonprofit human services groups, according to the mayor’s office.

Level playing field Those in the city’s nonprofit sector say the new office would even the playing field between smaller nonprofits and larger, more established organizations, which have had an easier time obtaining city contracts.

“This is a big opportunity because sometimes nonprofits are viewed as something frozen in time, but they’re the folks who are most on the ground and best understand who they are serving,” said Esmeralda Herrera, director of programs at Communitas America, a nonprofit that offers business advice and capital to entrepreneurs. Herrera has held workshops for minority- and women-owned businesses regarding city contracting. She said she realized that her smaller nonprofit clients felt left out. “They ask, ‘How can we work with the Department of Education or the city on this?’ ” she said. “They really need the support of their local officials. We have to think about all different perspectives in the local economy.” The establishment of a new office within the mayor’s purview would add another element to New York’s sprawling bureaucracy—one that includes 46 mayoral agencies and commissions that vary in head count and budget. Adams will inherit the system from de Blasio when he takes office Jan. 1. ■

HEALTH CARE

City Council votes to approve rezoning for New York Blood Center transformation

he New York City Council voted last Tuesday to approve the New York Blood Center’s rezoning proposal for its Upper East Side research facility, clearing the nonprofit’s last major hurdle to transform the 1930s-era building into a life sciences hub. The 43-5 vote notably lacked the support of Councilman Ben Kallos, who represents the district containing the center—a rare instance of the legislative body bucking a longstanding tradition of voting in lockstep with the area's council member on rezoning proposals. The nonprofit is partnering with Longfellow, a Boston-based developer focused on the life sciences, on the project. Their current plan calls for a 13-story building that would stretch 233 feet high including a bulkhead and span 527,000 square feet. That is down from the original $750 million proposal to build 334 feet, or 16 stories, totaling 596,000 square feet. A project spokesperson said an updated cost estimate that reflects the height reduction is not yet available. The blood center, which owns the East 67th Street site, will put up the land and occupy about a third of the building. Longfellow will lease

the rest to life science companies and, in exchange, shoulder the construction costs. Under a deal, the blood center and Longfellow struck with City Council Speaker Corey Johnson, Manhattan Borough President Gale Brewer and City Council members Francisco Moya, Rafael Salamanca Jr. and Keith Powers, the nonprofit will give $2 million to the Julia Richman Educational Complex, which houses multiple schools, and $3.6 million to St. Catherine’s Park. It will also give $500,000 to community-based organizations for sickle cell research projects and campaigns to promote patient awareness. The city Department of Parks and Recreation will chip in an additional $7 million for the park. Opponents, including neighbors and Kallos, had voiced concerns about the impact of construction on the schools’ students and the building’s eventual height casting shadows on the park. Both are across the street from the blood center. The project is also expected to receive tax incentives “in the range of $100 million” from the city Economic Development Corp., pending an application and review, an agency spokesperson said. The blood center previously ap-

WEBCAST CALLOUT

DEC. 15 COURTESY OF ENNEAD ARCHITECTS/RENDERING BY DBOX

BY MAYA KAUFMAN

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 have been criminalized by marijuana laws have an opportunity to do business in the emerging industry?

plied for funding from the city’s $1 billion LifeSci initiative and was rejected but is planning to reapply, a spokesman for the nonprofit said.

Big business Although Mayor Bill de Blasio has the power to veto the council’s vote, he has publicly expressed support for the project, most recently in an interview last Monday night on NY1’s Inside City Hall. “We need to guarantee their physical future, their financial future,” he said of the blood center. The nonprofit has reaped success

turning blood from donors into big business by snapping up blood centers across the country, launching alternative revenue streams and doling out six-figure bonuses to its executives, Crain’s previously reported. It has a near-monopoly on the city’s blood supply, providing as much as 90% in a given year. Founded in 1964, the nonprofit now employs roughly 2,000 workers. It drew nearly $500 million in revenue during its most recently reported fiscal year, and its endowment now stands at $380 million. ■

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

CORRECTIONS ■ Fresh Goods Trading is a wholesale produce business in Long Island City owned by Tai Boo. The company’s name was incorrect in “Pandemic inspires second generation to revamp family businesses,” published Nov. 22. ■ Updated Most Powerful Women profiles for Nancy Hagans and Rashida Jones can be found at CrainsNewYork.com.

Vol. 37, No. 43, November 29, 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.

2 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 29, 2021

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RETAIL

BUCK ENNIS

THE DEL GALLEGOS serve Spain’s popular rice and seafood dish at EZ Paella.

Turnstyle Market looks to turn a corner

Fortunes for the subway retail hub, filled with homegrown stores and eateries, are largely tied to transit ridership BY GABRIEL POBLETE

Z Paella, a restaurant located in the Turnstyle Underground Market at the Columbus Circle train station, raked in $36,000 in sales in September, said co-founder Alex del Gallego. That’s very good news for the restaurant, which was originally set to open March 15, 2020—the day businesses across the city were forced to close because of the pandemic. Del Gallego, who opened the business with his wife, Lorena, said the restaurant had been forced to let go of six workers. Having already purchased $1,500 worth of food to make the famous Spanish rice plate typically made with a seafood medley, the del Gallegos ended up cooking it all and donating it to police and hospital workers. Until the restaurant officially opened in September 2020, the duo remained in business by selling their fare on the sidewalk near their home in Astoria and through Uber Eats, generating about $200 a day.

“If we survived what we survived, what’s coming is an easy trip,” del Gallego said in Spanish. Although the del Gallegos are optimistic about their future, their underground neighbors might be taking a more wait-and-see approach. The recovery of Turnstyle Underground Market, as with many other retail businesses in transit hubs, is tethered to the recovery of mass transit ridership. During the week of Nov. 8, ridership on weekdays trended about 40% below prepandemic levels. Before the crisis began, the subway averaged 5.5 million daily riders. And only 23% of Manhattan office employees had returned to the workplace as of late August, according to the business group Partnership for New York City. “I think the most optimistic thing I can say

is, it looks like, little by little, people are beginning to come back,” said Susan Fine, principal and developer of the market.

Distinct character Opened in the spring of 2016, the 325-footlong passageway in a station that serves as a major stop for the 1, A, B, C and D trains works under a unique public-private partnership with the Metropolitan Transportation Authority. Fine said she strives to have retail tenants who are either people of color or first-time business owners. She added that the market’s character is built on its distinct stores, such as Mandu Apparel, which sells K-pop merchandise; Dog & Co., which sells boutique dog apparel; and Criollas, an Argentine baked empanada shop.

“IT LOOKS LIKE, LITTLE BY LITTLE, PEOPLE ARE BEGINNING TO COME BACK”

“We have a handful of established brands that New Yorkers like,” Fine said. “But as a rule, we try to find the unexpected-but-popular food that appeals to many kinds of people.” Fine said Turnstyle’s vacancy rate is approximately 15%, with eight stores having opened within the past six months. Additionally, MTA CEO Janno Lieber has said the agency would provide underground retail tenants relief, but Fine said that is still being hashed out. However, Fine said Turnstyle itself has provided rent relief to businesses. For example, EZ Paella received six months of free rent while the business could not open, and then Turnstyle slashed its rent in half for a year. Ultimately, Fine said, businesses like Turnstyle might just be the spark that entices office workers and tourists to start heading back to Midtown. “The Turnstyles of New York are going to be what makes people come back to New York City and make people want to work in New York City,” she said. ■

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RESIDENTIAL SPOTLIGHT

A home for sculptors, authors and musicians Hollywood producer lists an artsy address in Lower Manhattan that offers commercial vibe and spacious rooftop BY C. J. HUGHES

ecades ago, before Brooklyn blew up as a hipster hangout, Lower Manhattan was the center of the city’s creative cool. Buildings such as 262 Mott St., a prewar condo near East Houston Street, could seem to be its bull’s-eye. The 19th-century arch-windowed structure, which in the early 1990s became one of the neighborhood’s first condo conversions, has housed sculptors, authors and musicians such as the electronica pioneer Moby. There also have been some Hollywood producers, such as Paul Simms, who recently listed his two-bedroom, two-and-a-halfbath duplex with a private roof deck for $8.5 million. Simms, who’s calling the shots on What We Do in the Shadows, a tongue-in-cheek TV series about Staten Island vampires, has not

$8.5M

LISTING PRICE for the two-bedroom, two-and-a-half bath duplex with a private roof deck

and fifth floors, showcases a steel staircase stretching to the 1,000-square-foot roof, where views of St. Patrick’s Old Cathedral are ample. Simms, whose résumé includes The Larry Sanders Show, NewsRadio and Atlanta, purchased the apartment in the non-doorman elevator building for $2.5 million in 2003, according to city records.

Industrial vibe Where Simms is headed—Shadows is filmed in Toronto—is unclear. He was unavailable for comment, as was Mary Ellen Cashman, the Compass agent who has the listing, which has not discounted its price since it was put up for sale during the spring. It seems on par with the market: The average asking price of development apartments that are not new in NoLIta—North of Little Italy, that is—is $8.4 million, according to StreetEasy.com. Some credit for the apartment’s industrial vibe should go to its previous owner, Max Protech, the owner for years of a same-named art gallery on nearby Broadway.

shied away from the building’s Victorian-era structure. Exposed bricks are abundant, from the walls of the sunny living room to barrel-vaulted ceilings throughout. (Other brick sections are painted white.) The unit, which spans the fourth

COMPASS

SOME CREDIT FOR THE APARTMENT’S INDUSTRIAL VIBE SHOULD GO TO ITS PREVIOUS OWNER.

MAX PROTECH combined three units for the apartment, creating rooms with an almost factory-like airiness. Protech, an original buyer at 262 Mott St., combined three units to make No. PH410, records show, a move that created rooms with an almost factory-like airiness. Protech, seemingly fond of old

commercial buildings, once owned 214 Lafayette St., a former Con Edison electrical plant from 1922 that Protech transformed into an art gallery in the 1980s. The six-story structure, purchased in

1996 by horror-movie director Marcus Nispel, today boasts a stylish swimming pool and triplex apartment. It has become a popular venue for parties and photo shoots. ■

REAL ESTATE

Feil Organization reveals it’s planning a 43-story Downtown Brooklyn tower

he Feil Organization is set to add another massive project to Downtown Brooklyn’s booming residential market—one that represents the culmination of the firm’s years-long effort to piece together a Fulton Street presence.

be affordable. The project includes 73 parking spots and about 100,000 square feet of commercial space. Architects SLCE and MdeAS are designing it, according to the filing and the Feil Organization. Feil is still determining what will go in the commercial space. The firm has started demolition, and it will start foundation work early next year, said Executive Vice President Brian Feil. Construction should be finished in roughly three years, he said. Feil declined to share the estimated cost of the development.

“WE’RE JUST EXCITED ABOUT BROOKLYN AND NEW YORK CITY LONG TERM” The company has filed plans with the city Department of Buildings for a project spanning about 475,000 square feet at 356 Fulton St. The tower is designed to stand 43 stories—496 feet—tall, and include 421 apartments, 30% of which will

Buying spree The Feil Organization has spent years acquiring parcels along Fulton Street, a major Downtown

Brooklyn corridor. The company bought 356 Fulton in 2015 for $43 million, and it bought four parcels at 360–370 Fulton from Modell’s and Weinstein Enterprises earlier this year for $32.5 million—which Feil described as the final pieces of the puzzle. The company also owns 376 and 380 Fulton. Its overall presence on the roadway spans more than 500,000 square feet, and the planned project encompasses all the sites. “I think we’re just excited about Brooklyn long term and New York City long term,” Feil said. The company plans to take advantage of the state’s 421-a program, which is set to expire in June. It gives developers a tax break in exchange for making 30% of the units in their projects affordable. Supporters of the controversial program have long argued that it is essential to creating affordable hous-

ing in the city. Opponents have derided it as a giveaway to wealthy developers.

Lap of luxury The Feil Organization’s project would be the latest addition to Downtown Brooklyn’s skyline, which has changed dramatically in the past few years as the neighborhood has become a hotbed for luxury residential projects. Brooklyn Tower, led by JDS Development, recently reached its full height of 1,066 feet to become New York’s tallest non-Manhattan building. The 93-story project is expected to include about 400 rental apartments and 150 condos. Alloy Development recently closed on $240 million in financing to start construction on its Downtown Brooklyn project, known as Alloy Block. It is designed to include five buildings with about 850

FEIL ORGANIZATION

BY EDDIE SMALL

A RENDERING of 356 Fulton St.

apartments, 200,000 square feet of office space, 40,000 square feet of retail space and two schools. About 200 of the project’s apartments will be affordable, the developer said. ■

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TECHNOLOGY

City’s video game industry triples headcount in 12 years: report BY CARA EISENPRESS

could lead to a career in the industry.

REAL ESTATE

Construction still slow but showing signs of revival BY EDDIE SMALL

onstruction in the city has bounced back from its early-in-the-year doldrums, but building has still not returned to prepandemic levels. Developers filed plans for 486 new buildings during the third quarter of the year, a 37% increase quarter over quarter and a 10% increase year over year, according to a report from the Real Estate Board of New York. This was only slightly lower than the quarterly average of 502 new projects since the first quarter of 2008, the report says. The number of proposals for multifamily projects in particular saw a significant year-over-year increase, with developers filing plans for 6,187 housing units, a 20% jump compared to the third quarter of 2020. However, the third quarter projects only span about 8.1 million square feet overall, much lower than the historical average of about 11.2 million square feet per quarter. This was largely because only two of the new filings were for projects encompassing more than 300,000 square feet, according to REBNY.

Right direction The largest project for the quarter was a 14-story residential building with ground-floor retail spanning about 396,000 square feet at 11 Ocean Parkway in Windsor Terrace, Brooklyn, from JEMB Realty. The second-largest project, and the only other one to top 300,000 square feet, was a 23-story mixeduse project at 250 E. 83rd St. in Yorkville from the Torkian Group, totaling about 307,000 square feet, according to the report. “Time and again, it’s been the city’s building and construction industry that has stimulated the economic activity needed to recover from times of crisis,” said Gary LaBarbera, president of the Building and Construction Trades Council

of Greater New York. “While a full economic recovery will require time and substantial investment, it’s clear that, as a city, we’re headed in the right direction.” REBNY President James Whelan and multiple other construction leaders stressed that the federal infrastructure package President Joe Biden recently signed into law should provide a further boon to New York’s construction industry. Money in the law will go toward helping projects including the Second Avenue subway extension to East Harlem and Upper Manhattan and the Gateway tunnel between New York and New Jersey. “As we can see from this report, the new federal infrastructure legislation will provide a critical boost to New York’s recovery,” Whelan said. “Investment in infrastructure is key to our long-term economic success.”

Corporate culture The report comes out as the American gaming industry reckons with reports of sexual harassment and employee discrimination at Activision Blizzard, a publicly traded video game company in Santa Monica, California. During the summer, the California Department of Fair Employment and Housing sued the firm. That led to an investigation by the U.S. Securities and Exchange Commission and revealed apparent mishandling of the issues by the chief executive, Bobby Kotick, according to a Wall Street Journal report. In New York, the landscape of small studios could be a hedge against such behavior, according to the report. “Many indie game developers challenge the industry’s approach to issues of social equity, diversity and inclusion by weaving bold narratives and themes within their games,” it said. Still, the fact that the local gaming sector is so small “affirm[s] the need for the city to promote this growing industry that lives at the intersection of technology, art, small business and education,” said Anne del Castillo, commissioner of the Office of Media and Entertainment. ■

ISTOCK

BUCK ENNIS

he city’s digital games industry took flight during the past decade, tripling its employment numbers in 12 years, as creative and technology workers tried to style a place for themselves in the fast-growing, lucrative industry, according to a report issued by the Mayor’s Office for Media and Entertainment The local industry created $2 billion in economic output, supporting 7,600 full-time jobs and 18,000 affiliated freelancers and paying $762 million in wages. New York isn’t viewed as a center for gaming, with leading companies based elsewhere; however, smaller outfits are creating jobs, and city universities offer training. Around the world, consumer gaming has boomed as an industry with $180 billion in annual sales, according to the report. That is double the size of the film industry, whose 2019 revenue was $100 billion, according to the Motion Picture Association. Electronic Arts, Krafton, Microsoft, Nintendo, Sony, Tencent and other leading video game companies have their headquarters on the West Coast or in Asia or Europe. So recent college graduates eager to work in the industry do not tend to flock to New York the way they would if they wanted to work in investment banking or,

more recently, software engineering. New York City’s gaming world is made up of more than 200 development and publishing studios, most of them small and independent. Among the most established are Take-Two Interactive, which developed the game Rockstar, and an outpost of the Swedish Avalanche Studios, which created Just Cause 3. Grounding the industry here are institutions such as New York University’s Game Center, which offers bachelor’s and master’s degrees in gaming as well as programming for game creators and fans. The City University of New York’s Hostos College offers a game design associate degree, reportedly the only one in New York. There is also a program out of the Office for Media and Entertainment, The Animation Project, which seeks to help people ages 12 to 24 learn animation—which

Slow start Projects were off to their slowest start in more than a decade during the first quarter of this year, with 407 developments spanning about 5.4 million square feet overall. The number of new developments was even lower during the second quarter, at 356, although their total size was higher, at roughly 8.9 million square feet, thanks in part to companies filing plans for four projects encompassing more than 300,000 square feet. The number of residential units was also higher during the second quarter, at 7,850, according to the report. Queens was the most popular borough for new projects during the third quarter, at 160, followed by Brooklyn, at 151, the report says. Brooklyn came in first in terms of square footage, with projects in the borough comprising about 60% of the total, followed by Queens at about 21%. Brooklyn saw the most new residential units as well, at 3,721, followed by Queens, at 1,492, according to the report. ■

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IN THE MARKETS

Bank’s investors reject $26M parachute for CEO

But Investors Bancorp’s Kevin Cummings will still collect the cash since the investor vote on pay is non-binding

FIGHTS OVER PAY HAVE BEEN A LONG-RUNNING THEME AT THIS INSTITUTION. ceived overwhelming stockholder support” for the sale. His statement didn’t mention the majority vote against his pay and a spokesman for the bank had no immediate comment.

Client roster

Investors Bank has $27 billion in assets and 154 branches, including about 30 in New York City. Clients include Trump Organization for the Trump Park Avenue condominium on East 59th Street, where former Donald Trump lawyer Michael Cohen owns

an apartment. Former New York Giants star Eli Manning is one the bank’s pitchmen. Fights over pay have been a long-running theme at this institution, a depositor-owned thrift until 2014 and run by Cummings, a former KPMG executive, since 2008.

Track record Last year 54% of investors voted against his compensation. Pay became an issue after the bank awarded more than $50 million worth of shares and stock options to Cummings and other insiders. Shareholders claimed that was excessive and the bank settled a lawsuit by issuing new awards. But many didn’t hinge on meeting performance hurdles and many vested immediately. A shareholder filed another lawsuit alleging breach of fiduciary duty and a Delaware judge allowed the case to proceed. In a regulatory filing, the bank acknowledged last year’s “non-affirmative vote” on executive pay. “We continue to engage with stockholders regarding our executive compensation philosophy and to ensure that our executive compensation program aligns the interests of our stockholders with our [executives],” it said. ■

CUMMINGS

BUCK ENNIS

Because the investor vote on pay nvestors Bancorp Chief Executive Kevin Cummings will de- is non-binding under Securities part on a somewhat sour note and Exchange Commission rules, after shareholders rejected his the bank said Cummings and dep$26 million exit package, though uties will still collect their golden-parachute payments, he’ll still collect the monwhich nearly equal a ey. quarter’s worth of InvesNearly 70% of Investors’ tors’ net income. Presiinvestors voted against dent and Chief Operating Cummings’ golden paraOfficer Domenick Cama chute on Friday even as is in line for a $16 million they approved the $3.5 payout and another $15 billion sale of the New Jermillion will be shared by sey-based bank to Citithree Investors execuzens Financial Group. The fight over pay was the fiAARON ELSTEIN tives. Companies regularly nal battle in an ongoing hold so-called say-on-pay war between the CEO and votes and investors have voted shareholders. In a statement Cummings said, them down only 4% of the time this “We are very pleased to have re- year, according to consulting firm Semler Brossy. That is higher than last year’s 2.3% failure rate.

CLIMATE CHANGE

BY BRANDON SANCHEZ

he Center for an Urban Future released a study last week that shows the city has made some progress toward mitigating the effects of severe rainstorms and preventing stormwater from carrying raw sewage into local waterways. The policy organization recommended that the city redouble its efforts to build green infrastructure—such as green roofs, rain gardens and permeable surfaces— with an eye toward influencing Mayor-elect Eric Adams. According to the report, the system annually discharges more than 20 billion gallons of raw sewage mixed with stormwater into the city’s waterways. September’s Hurricane Ida emphasized the need to accelerate construction in the face of more severe weather wrought by climate change. The report’s data show that the city has fallen short of state-mandated targets. From 2016 to September 2021, the number of green infrastructure assets (completed and in progress) increased from 3,859 to 11,205. However, only a fifth of post-2016

construction projects have actually been finished. “Though public roads and sidewalks make up 30% of the city’s impervious area, the vast majority of the city’s roadways—including nearly all of Manhattan and Staten Island—have no rain gardens, catch basins or permeable surfaces to capture stormwater,” the report read.

‘Not ambitious enough’ In 2012 the city and the state signed an agreement—a combined sewer overflow (CSO) consent order—geared toward the creation of more green infrastructure. Some contend it is outdated. “In some ways, the case for expanding green infrastructure has gotten substantially stronger,” said Danielle Spiegel-Feld, executive director of the Guarini Center on Environmental, Energy and Land Use Law at New York University. “When the consent order was reached, the city was primarily thinking of green infrastructure as a way to contain stormwater runoff in order to meet its Clean Water Act obligations,” Spiegel-Feld said. “Obviously, in the years since, we’ve suffered some catastrophic

storms that have made green infrastructure for resilience really essential as well. If anything, one could say that the targets that were set a decade ago are not ambitious enough to meet the growing threat of climate change.” The report calls on the incoming Adams administration to expand the city’s goals for green infrastructure development. “The next administration should increase the amount of green streets and encourage green roofs be implemented where possible, specifically large area roofs like the Javits Center,” said Thomas Abdallah, deputy vice president and chief environmental engineer for the MTA New York City Transit. “I think the issue is that historically New York City has paved over as much of its available land as possible going back a century. Streets, sidewalks, buildings, industrial facilities [and more] have prevented the natural infiltration of stormwater into the ground that nature intended.” The Adams administration will also face geographic gaps in infrastructure. The Center for an Urban Future report shows that most of the fully-constructed green infrastructure assets are located in

BLOOMBERG

A report card on New York City’s progress in using infrastructure to limit the effects of severe weather

Brooklyn and Queens. Meanwhile, the Bronx and Manhattan boast less than 10% of them. Julie Tighe, president of the New York League of Conservation Voters, said in a statement: “Modernizing our infrastructure means developing green in places at risk of flooding, investing in parks and reducing combined sewer overflows to protect our waterways.” Tighe said the league “is looking forward to working with Mayor-elect Eric Adams in this effort.” Asked about the report, Jainey Bavishi, director of the mayor's Office of Climate Resiliency, said that

in addition to existing green infrastructure initiatives, the city “has recently committed to implementing 10 additional cloudburst management projects that transform open space, streetscapes and recreational areas to store stormwater during heavy downpours, the daylighting of Tibbetts Brook to empty into the Harlem River, the implementation of three other priority wetlands projects in Queens and the Bronx identified in the NYC Wetlands Management Framework, and the expansion of green infrastructure on public housing campuses and parks.” ■

6 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 29, 2021

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The construction industry positions itself for post-pandemic growth New York City’s construction industry is starting to come back from the pandemic, and residential construction is driving much of the activity. Nevertheless, Covid-19 has had lingering effects on the industry, affecting everything from project planning to supply chain management. For insight into what’s ahead, Crain’s Custom Content spoke with construction and real estate attorney Jonathan Grippo, counsel at the law firm Goulston & Storrs. His clients include business owners, developers and institutions involved in the retail, hospitality, health care, education and construction industries.

announced for early 2022. As of early this year, the total new hotel construction pipeline in New York is 150 hotels with 25,640 rooms. CRAIN’S: How has the pandemic affected the negotiation and apportionment of risk in construction contracts?

JONATHAN GRIPPO Counsel Goulston & Storrs

CRAIN’S: What are the most important trends shaping the construction market today in New York City? JONATHAN GRIPPO: As a result of Covid, employment in the construction sector for New York City and surrounding areas has decreased by almost 13%. Total construction spending is expected to decrease to $174 billion by 2023, a $1.5 billion decline from 2017-19. With people fleeing Manhattan for the suburbs and outer boroughs, however, residential construction spending this year will increase by 21% compared to 2020, and by 2023, it is expected to reach more than $36 billion. It’s not surprising that multifamily construction is up 11% through the first six months of this year. Beyond this, the hospitality sector is seeing an uptick. The New York City market has 108 hotels with 19,439 guestrooms under construction, 14 of which (with 2,617 rooms) started construction in the last quarter of 2020. In addition, 20 hotels are to begin construction this year, and 22 hotel projects with 3,577 rooms have been

GRIPPO: Mitigating project delays and cost overruns is paramount. Covid, and its consequences, are leading drivers of both. Owners must think about how best to mitigate these risks while contractors should protect themselves from covering costs beyond their making. Parties have demonstrated a greater willingness to work together and act collaboratively to address the impacts of the pandemic. More than a year and a half into the pandemic, parties are now better equipped to anticipate

As vaccine rollouts accelerate, and depending on the location of the construction project, there is generally less concern about the Delta variant in the construction world. While Delta poses a new and additional risk, we have learned a lot about the pandemic and ways to blunt its impact. CRAIN’S: Many employers have been reducing their real estate footprint. Yet firms in other industries need more space. How are these trends affecting the construction industry in New York? GRIPPO: The tech industry has taken the leading role in filling space in New York City’s real estate. Facebook, Apple and Google all added office space in New York City in 2020. This leasing, in turn, leads to renovations to existing premises.

plans and updates to heating, ventilating and air-conditioning systems. CRAIN’S: Material shortages and supply chain disruption are placing intense pressure on owners and contractors. What creative solutions are you seeing? GRIPPO: Supply chain disruption has forced contractors and owners to be flexible. The ability to make both decisions and purchases early is a way to mitigate this disruption. Contractors have also embraced technology and coordination to combat supply

chain issues. Usage of building information modeling in designing projects has allowed contractors to prefabricate building components in controlled environments. Further, some are engaged in an extensive value-engineering process that, for example, allows for consideration of less expensive alternative materials. Contractors are also looking for domestic products, developing a project site logistics plan with owners and other stakeholders, retaining a logistics manager and assessing what materials are needed early. All of these efforts can help thwart supply chain issues.

The industrial sector has also seen a resurgence in purchasing

Boston | New York | Washington, D.C.

“Beyond tech and industrial tenants, go-to office tenants are changing their space to accommodate the impacts of Covid and, in turn, the expectations of their employees.” and avoid related delays and increased costs. Accordingly, contract provisions that require contractors to provide written and timely notice to owners advising of adverse impacts because of Covid are common. These effects must be unforeseen or uncontrollable. Impacts must affect the critical path of the construction schedule or milestone events that, if adversely affected, will delay the project. If a contractor complies, the contractor may be entitled to certain additional costs to cover the excused, Covid-related delays.

and renovating office space. Companies leased 864,000 square feet of industrial space in New York City during the third quarter of this year, up 47% compared to the second quarter.

At Goulston & Storrs, we are committed to achieving results for clients with no compromise to service. We are dedicated to professional excellence, exceptional personal service, and uncompromising ethical standards. We seek our clients' satisfaction and trust.

Beyond tech and industrial tenants, go-to office tenants are changing their space to accommodate the impacts of Covid and, in turn, the expectations of their employees. They are introducing perks and upgrades to entice employees back to the office, such as outdoor workspaces, open floor

goulstonstorrs.com

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

EDITORIAL

publisher/executive editor

City should fix affordable housing tax incentive, not abandon it entirely

Frederick P. Gabriel Jr. EDITORIAL editor-in-chief Cory Schouten,

cory.schouten@crainsnewyork.com managing editor Telisha Bryan assistant managing editor Anne Michaud

deputy digital editor, audience & analytics

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make sure they meet affordability, rent and application requirements. For example, building owners receiving the tax benefit would be held accountable for failing to register their units as rent-regulated with the state. Regular audits also would better ensure that the program is generating enough affordable units. In May the state Senate’s housing committee voted to advance a bill that would require all development projects using the city’s 421-a tax exemption to undergo an annual audit. The legislation, introduced by Sen. Brad Hoylman of Manhattan, would require the Homes and Community Renewal commissioner to oversee the process. The bill, which has the support of the Real Estate Board of New York, is awaiting a vote in the finance committee AN ADEQUATE SUPPLY before heading to the floor. OF AFFORDABLE HOUSING Senate The $1.7 billion subsidy is the city’s IS VITAL TO THE HEALTH largest property tax OF NEW YORK CITY expenditure, according to a report by the better option would be to improve Department of Finance. Under the it by requiring annual audits of the exemption, new construction of rental units must set aside 25% to program. The city should conduct 30% as affordable housing. frequent and comprehensive Proponents say the program is checks of the 421-a properties to omptroller-elect Brad Lander earlier this month declared his intention to use his power as the city’s chief fiscal officer to abolish 421-a tax exemptions on new construction of affordable multifamily rental housing. Lander joined a long list of progressives to argue that the 1970s-era abatement benefits developers more than New Yorkers. The program, which is set to expire in June and is also known as Affordable New York, is far from perfect. But now, as the city is struggling to rebound from the pandemic, is not the time to eliminate one of the most effective programs to spur the development of affordable units. Rather than eliminate the tax incentive or allow it to expire, a

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essential to incentivize the development of affordable housing by offsetting construction costs and an unfair property tax system that favors condominium development over the creation of rental housing. Critics argue that the tax-exemption program is little more than a giveaway to real estate developers. They blame it for gentrification and say it costs the city billions in lost tax revenue. But ending the program would jeopardize development. It would also lead to a reduction in rent-stabilized apartments. That’s

because the law requires that both affordable and market-rate units be rent-stabilized. Ending 421-a would also result in lower or lost wages for construction workers and building service employees, as the law in its current iteration contains wage-protection measures on large projects. The city cannot afford to end 421-a when it is struggling to recover from a global pandemic. The health and vitality of New York City depend on having an adequate supply of affordable housing for middle-class workers and their families. ■

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OP-ED

Ana Jimenez, ajimenez@crainsnewyork.com

Gov. Hochul should re-establish state’s defunded stem cell science program

REPRINTS director, reprints & licensing Lauren Melesio,

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BY JO WIEDERHORN

he pandemic clearly demonstrated the critical role science and scientists play in solving health threats. Across New York, our scientists quickly redirected existing lines of research to understand SARS-CoV-2, and they partnered with the private sector to launch vaccine trials. Against that backdrop, it’s troubling that in the spring, the state decided to eliminate its flagship biomedical research program: the New York State Stem Cell Science program. NYSTEM has been an annual investment by the state since 2007, but it was defunded, and all future stem cell research projects were canceled. Moreover, the state withheld funds from researchers who had paused their work early in the pandemic— either because labs were mandated to do so or because they had pivoted to Covid-related work.

I urge Gov. Kathy Hochul to reverse course and re-establish this critical research program

The power of science NYSTEM funding has supported innovative research, the discovery of potential new treatments that are in clinical trials, the launch of startup companies and training grants to develop the next generation of scientists. Research that began with NYSTEM has resulted in approximately $170 million in funding from other governmental and philanthropic sources. NYSTEM also has advanced the state’s objective of bringing more venture-capital funding to life sciences companies, with nearly $300 million in VC funding supporting businesses that NYSTEM scientists founded. NYSTEM funding has led to discoveries of potential treatments for critical diseases, including a clinical trial currently underway with

leukemia patients at NYU Langone Health, and a planned clinical trial for people with advanced Parkinson’s disease to be launched by Memorial Sloan Kettering Cancer Center with BlueRock Therapeutics and Weill Cornell Medicine. Other areas of study include diabetes, Alzheimer’s disease, macular degeneration, cancer and cardiovascular disorders. Without funding, though, projects with years of research behind them have no future in New York. Researchers pivoted much of their work during the pandemic to focus on treating and understanding Covid-19, like those at Weill Cornell Medicine who used their NYSTEM-funded lab to test about 1,200 drugs for their efficacy in blocking Covid-19 infection. By eliminating NYSTEM, the state loses all the momentum the program has fostered. Worse yet, researchers—especially young ones—will see the move as a sign

that they cannot count on New York to maintain its commitment to support stem cell research or other areas of science, while other states invest in it. (California recently approved an additional $5.5 billion for stem cell research). Our scientists will look elsewhere to conduct their work, taking with them their intellectual firepower, grant funding and jobs. If New York is to be a hub for life sciences, and benefit from the medical advances and economic development the sector provides, the state must invest in research. The power of science has never been clearer. Is New York going to abandon its commitments to its largest research program? The state must reconsider the impacts and revive NYSTEM as soon as possible. ■ Jo Wiederhorn is president and CEO of the Associated Medical Schools of New York.

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8 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 29, 2021

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OP-ED

BY REBECCA KARP

f you haven’t started your holiday shopping, you’re probably already too late. That’s the message we’re getting over and over again this season. Those hundreds of marooned ships we see waiting outside our nation’s biggest ports, including Newark and New York—not to mention the empty shelves at grocery stores and the struggle to buy common things such as pet food— testify to a confluence of strains on our global supply chain. The crisis started with the onset of the pandemic, as consumers increased demand while factories closed. Supply was constrained. Pre-Covid, however, our ports and supply chain were already in

disruption of our supply chain because of the pandemic but also the consequences of longer-term, systemic challenges. Taking the supply-chain crisis first: We need to create space at our ports to alleviate the pressure. There are thoughtful ways to approach that. For example, the Biden administration should mobilize the National Guard to construct temporary warehousing. And we can make shipping a 24/7 operation on the East and Gulf coasts, as the administration has proposed for major ports on the West Coast.

More made in the U.S. Our ports need more than quick fixes, however, and places such as Newark and New York, home to the nation’s second-largest port, need to invest in significant port upgrades, executed with an emphasis on ensuring the facilities are outfitted for the impacts of climate change. The good news is much of that work is underway. The Port Authority of New York and New Jersey has advanced harbor-deepening initiatives and continues to move forward on investments critical to port

INVESTING IN CORE INFRASTRUCTURE IS A GIFT THAT CAN KEEP ON GIVING precarious positions because of decades of offshoring U.S. manufacturing and underinvesting in our ports. Now we must simultaneously address not only the immediate

resilience. Ports across the country are making similar investments, and the bipartisan infrastructure package should offer some additional relief. But we need continued long-term capital investments in our ports to ensure our supply chain is resilient to the demands of our global economy. Strategic investments can create thousands of good jobs, support essential infrastructure for our country’s economic growth and recovery, and help protect our region’s coastal communities from the impacts of sea-level rise. But as I mentioned, there’s one additional slow-moving crisis we must contend with to safeguard our ports and supply chain against the blockages we see today: We must at least consider what it would take to change consumption patterns and perhaps even require corporations to produce more goods in America.

ALAMY

With supply-chain issues poised to impact Christmas, we need a game plan for our ports

Conversations between urban planners and local leaders are essential to understanding if and how the U.S. can eliminate supply chain obstacles by bringing back to this country manufacturing that went offshore decades ago. Immediate interventions combined with comprehensive, forward-thinking planning are necessary to meet the crisis at our ports in the supply

chain head-on. Although some Christmas presents might be canceled this year, investing in core infrastructure is a gift that can keep on giving for generations to come. This is the moment to commit to those investments. ■ Rebecca Karp is chief executive of Karp Strategies.

OP-ED

BY ALFREDO QUINTERO

ith the recent passage of the Infrastructure Investment and Jobs Act, the federal government is poised to make the largest single investment in our nation’s infrastructure since the creation of the interstate highway system. For states willing to think boldly, green bonds can be the key to maximizing the impact of those federal dollars while promoting environmentally friendly policies. Last year $451.2 billion in municipal bonds were sold by states, cities, schools and other issuers. A growing portion of that market—$51.1 billion in 2020—was

ronment, such as mass-transit systems or water-treatment plants.

Remove tax barriers Green bonds allow states and cities to leverage private investment for public good, which is increasingly attractive to a growing number of socially responsible investors. But right now, they are tapping only a small portion of what could be an even bigger market. That’s because municipal bonds are only tax exempt for investors in their state of residence. Without the tax incentive, out-of-state green bonds are less appealing. So when California looks to issue bonds to pay for a new solar power farm, the state is missing out on selling to New York investors—just as New York’s Metropolitan Transportation Authority is missing out on California investors who might be interested in bonds issued to pay for new electric buses. If California and New York could cut a deal to remove the tax barriers

GREEN BONDS OFFER A SHOT AT A MULTIPLIER EFFECT. THAT’S A WIN FOR ALL made up of green bonds. A green bond is issued by a municipality or public authority specifically to support projects that benefit the envi-

between the states, it would be a game changer for the green bond market. A broad tax reciprocity agreement would put green bonds on par with highly prized double and triple tax-exempt bonds. For the states with the two highest personal-income taxes in the nation, a new set of tax-exempt bonds would help soften the blow of the loss of the state and local tax deduction. The potential financial benefits would be tremendous. As out-ofstate investors look to take advantage of this new policy, demand will spike, leading to lower interest rates and reduced costs for green-bond issuers. That would make it cheaper for California to finance its next clean water project while helping to keep the New York City subway running. For two governors with ambitious environmental goals, the abil-

GETTY IMAGES

A bold proposal: Use tax-exempt green bonds to make the most of federal infrastructure dollars

ity to tap a new set of investors for critical projects could unlock a world of possibilities. That means more capital to put toward renewable energy, energy-efficient buildings, clean water, pollution prevention and sustainable land management. The Infrastructure Investment and Jobs Act has provided a oncein-a-lifetime opportunity to rethink how we shape the nation’s infra-

structure. As policymakers across the country are dusting off previously shelved plans for dream projects, green bonds offer a shot at a multiplier effect. That’s a win for state and local governments, the environment, investors and future generations. ■ Alfredo Quintero is a senior managing director at Samuel A. Ramirez & Co.., a securities firm.

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 29, 2021 | CRAIN’S NEW YORK BUSINESS | 9

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TRANSPORTATION

How New York City’s legacy of racism lives on in community-disrupting highway infrastructure BY BRIAN PASCUS

Cross Bronx Expressway The 6.5-mile Cross Bronx Expressway (Interstate 95 and Interstate 295), constructed between 1948 and 1972, is the central example cited by transportation experts linking racism to infrastructure. When Moses commissioned construction of the highway, he need-

BUCK ENNIS

he legacy of segregation and racism in New York City’s transportation system is under scrutiny following a tweet from Mayor-elect Eric Adams and the passage of a $1.2 trillion federal infrastructure bill. On Nov. 10 Adams wrote, “Racism is built into our infrastructure, and we need to confront and combat it,” referring to a previous statement he made about rolling back “the Robert Moses vision for our city.” By evoking Moses, the longdead city planner, Adams said he sought to highlight the ways prejudices held by 20th-century power brokers are ingrained in the physical transportation structures used by New Yorkers today. The federal infrastructure bill allocates more than $10 billion for New York City’s subway system and $11.5 billion for the state’s highways. An additional $7.5 billion in grant money could fund environmental upgrades to the city’s highways and mass transit lines. The talk of racism in infrastructure has fueled discussion on how these billions in federal dollars should be spent and which neighborhoods deserve a larger share of federal aid to combat the sins of the past. During a Nov. 9 news conference, Rep. Ritchie Torres, who hopes to use some of that federal money to reimagine the Cross Bronx Expressway, called the Moses-era highway “both literally and metaphorically a structure of racism.” The term “racism” is not traditionally applied to infrastructure, but Eddie Bautista, executive director of the New York City Environmental Justice Alliance, believes the layouts of New York City’s highways display a central characteristic of racism: using systems to enforce regulatory policies and legal constructs that yield discriminatory impacts. “The systems that use those components disproportionately favor white or higher-income communities over Black and brown and lower-income communities— that’s the term writ large,” Bautista said. “These communities were broken apart to increase the travel of suburban white workers through these communities to central business districts.” Here are two major infrastructure projects in New York City that transportation experts say showcase the ugly history of racism in 20th-century urban planning.

ed to buy the land and take the right of way to build through established communities. To complete his grand design, which includes the Bruckner Expressway (Interstate 278 and I-95) and Major Deegan Expressway (Interstate 87), he chose the South Bronx, home to a disproportionate share of lower-income city residents during the mid-20th century and today. “They drew lines on a map and looked to make lines go through communities that wouldn’t protest highways and where land was cheapest,” said Matt Carmody, vice

other legacy of the Cross Bronx. Because the route is a major trucking corridor, the toxicity of burning diesel fuel and tire dust into the air has contributed to higher asthma rates in the surrounding neighborhoods. A 2003 study from the city Department of Health found two areas bisected by the Cross Bronx— Pelham-Throgs Neck and the Crotona section of the South Bronx—have asthma rates of 8.2% and 7.1%, respectively. By comparison, Riverdale, and parts of the northeast Bronx closer to Westchester County and farther from the traffic, have asthma rates of 3.8% and 2.8%, respectively. “It’s not entirely due to highways, but it’s a huge piece of it,” said Dr. Rachel Weinberger, senior fellow of transportation at the Regional Plan Association, an urban planning think tank. “Who wants to move next to a highway like that? Only poor people can.” Senate Majority Leader Chuck Schumer, Torres and Adams all want to use the new pot of federal money to “cap” the Cross Bronx by building decks of park space above four sections stretching nearly 2.5 miles. The new park space would not replace the expressway or alter its direction, but it would increase the amount of urban green space to offset air pollution. The huge cost of the project will likely need to be shouldered by city and state funding, in addition to whatever New York can pull from the federal government. “It’s unrealistic to say we’re going to do it for $1 billion,” said Ni-

“WHO WANTS TO MOVE NEXT TO A HIGHWAY LIKE THAT? ONLY POOR PEOPLE CAN” president of traffic and transportation engineering at consulting firm AKRF. “They are communities of African Americans and Latinos. Those are the victims of this.” Thousands of middle-class and low-income families in the South Bronx have been negatively affected by the decades of construction around this triangular corridor and the wholesale shifts in neighborhoods that followed. Before the pandemic, an estimated 175,000 cars used the I-95 section of the highway daily, a quarter of them trucks. “All this interstate truck and highway traffic is allowed to drive through those three [sections], just so we can get our packages on time,” Carmody said. “People don’t think about who lives by those highways.” The impact of emissions is an-

cole Gelinas, senior fellow at the Manhattan Institute think tank. “It’s almost certainly a multibillion-dollar project.”

ON THE ROAD

Residents in Sunset Park also suffered from construction. The massive, elevated six-lane Gowanus Expressway section of the BQE cuts Brooklyn-Queens through the entire neighNUMBER of Expressway borhood along Third Avevehicles that nue in Sunset Park, home The Brooklyn-Queens crossed the BQE to a large community of Expressway (I-278), per day before the pandemic Chinese and Hispanic imbuilt under Moses’ dimigrants today, Gelinas rection in the late 1940s said. and early ’50s, is the “They live in the shadow main transportation arof the highway,” she said. tery between the two NUMBER of Urban planning experts boroughs. It carried cars that used argue the practice of roughly 150,000 vehithe I-95 section redlining—refusing to cles per day, including of the Cross grant mortgages to resi15,000 trucks, before Bronx per day dents from low-income the pandemic. prepandemic neighborhoods—fostered Construction of the a regrettable legacy that highway involved messy choices that altered two communi- left people of color stuck living in ties. Bautista pointed to the differ- neighborhoods dominated by ence in how the BQE flows between highways such as the BQE. “When you know the history of Red Hook and Brooklyn Heights. He noted that it bends through Red New York City and redlining, you Hook, dividing the neighborhood see how racism has absolutely difrom Carroll Gardens and Cobble vided our communities,” said Amy Hill, as it heads up toward Atlantic Chester, managing director at ReAvenue. But as it approaches afflu- build by Design, a nonprofit. ent Brooklyn Heights, “it loops,” he “There’s communities of haves and said, away from the community communities of have-nots.” Some influential city voices are and runs along the water. “That spoke volumes,” he said. calling for the BQE to be torn down “When Moses wanted to get to go and replaced with light rail. Carlo through Brooklyn Heights, that his- Scissura, CEO of the New York City torically privileged community Building Congress, which repblocked it and forced him to go resents 250,000 construction workers, called for its demolition at a around it and not through it.” Those other Brooklyn neighbor- recent breakfast hosted by the hoods weren’t so lucky. Red Hook Brooklyn Chamber of Commerce. “I have one mission in life with serves as home to the largest public housing development in Brooklyn infrastructure,” Scissura said. “It’s and is isolated by the highway from called knocking down, redesigning rebuilding the Brookits neighboring communities. The and area is a mass transit desert, mean- lyn-Queens Expressway for people ing it doesn’t have access to a near- and communities and all of us in our city.” ■ by MTA subway line.

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Your work-life balance is our work life.

ASKED & ANSWERED

DR. ALEXI NAZEM Nomad Health

DOSSIER

employees will return to the workforce. A lot will miss it and will come back.

INTERVIEW BY MAYA KAUFMAN

WHO HE IS Co-founder and CEO, Nomad Health

How do you attract new people to the field and get others to return?

What’s the situation with health care staffing?

We are seeing levels of demand that we haven’t seen previously—even greater than at any other time in the pandemic. The other thing you’re seeing is that the cost of hiring temporary staff right now is phenomenally high. It is double what it was prepandemic.

What’s causing this staffing issue?

Early retirements and burnout. Because there’s so much demand and early retirements, it’s creating a tighter market, which requires paying more for temporary positions. That draws more people away from full-time positions, because temporary positions are financially attractive, which then exacerbates the problem.

AGE 39 GREW UP Upper East Side RESIDES Brooklyn Heights EDUCATION Bachelor’s in molecular biophysics and biochemistry, Yale University; MBA, Harvard Business School; doctor of medicine, Yale University School of Medicine FAMILY LIFE Nazem has a 1-year-old son, Rumi, with his wife, a group product manager at Google. LIFESAVING CAMPAIGN He was a national field manager for the Institute for Healthcare Improvement’s 100,000 Lives Campaign, an initiative to reduce patient harm and prevent avoidable deaths within the health care system. TENNIS, ANYONE? Nazem is an avid tennis player and fan. He’s attended every US Open since 1988.

What’s the solution?

Some of this is just catching up. We’re working through a large backlog of care needs. There are people who didn’t get their surgeries or didn’t have their colonoscopy. I think some medical

The ability to work flexibly is a real way out of this—saying, “Hey, you can go be a traveling nurse and work 10 months out of the year.” In terms of bringing more people into the profession, one of the silver linings of this pandemic is it really demonstrated how meaningful health care work is. It’s drawn so many more nursing and medical school applicants. But we have to have other solutions, most of which I think will be technology-derived.

What kinds of jobs can technology replace?

Actually, that’s not the way to think about it. The way to think about it is, there are some things that can be done by technology that don’t need to be done by a person. Let’s let technology do all those things and let people do that which only people can do. There’s a way to enable somebody to do more with the time that they have—see more patients, administer more care. Telemedicine is a perfect example.

So we’re not talking robots at the bedside?

Well, not exactly, but I do believe that a lot of care can be very well rendered by smart systems. Will there be a robot at the bedside? No. But can a lot of the routine things in health care be automated? Absolutely. Think birth control pill refills. There are very clear clinical pathways that can be automated, and they should be, because we can’t have our highly trained clinicians doing that work at the expense of other work that only they can do. ■

BUCK ENNIS

r. Alexi Nazem co-founded Nomad Health, a digital marketplace helping health care workers find temporary job placements, in 2015 to address a problem he’d experienced firsthand. The process of landing a short-term assignment at a hospital was arduous and haphazard, relying on cold calls and applications the length of a novella. Then the Covid-19 pandemic made health care staffing shortages a national hot topic, and the Midtownbased startup went full speed ahead. It raised $63 million in a Series D round in September, taking in $100 million to date, and now staffs all 50 states with a roster of 150,000 travel nurses.

CRAIN’S NEW YORK BUSINESS 2022

BLACK LEADERS & EXECUTIVES

Nominate Notable Black BLACK LEADERS & EXECUTIVES Leaders & Executives

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Crain’s New York Business is proud to announce Crain’s 2022 Notable Black Leaders and Executives, a special print and digital editorial feature on Monday, February 21, 2022 that will profile notable black leaders within the New York City business community. Help us determine 2022’s honorees who are making an impact on our business landscape.

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CrainsNewYork.com/NotableBlackLeaders Nominations close on January 7, 2022 12 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 29, 2021

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PEOPLE ON THE MOVE

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

ACCOUNTING

FINANCIAL SERVICES

LAW

REAL ESTATE

The Bonadio Group

TD Bank

Foley Hoag LLP

Sterling Project Development

The Bonadio Group, a nationally ranked Top 50 CPA firm announces the appointment of Casey Ganer CPA, as office managing partner of its New York City location. Casey joins The Bonadio Group upon the completion of the firm’s merger with the New York City-based accounting firm, Ganer + Ganer where the firm will now be operating under The Bonadio Group name. In this role, Casey will lead the growth strategy for the region, including management of clients, employees and financial strategy.

The Bonadio Group, a nationally ranked Top 50 CPA firm announces the appointment of Terry Ganer CPA, to Partner. Terry joins The Bonadio Group upon the completion of the firm’s merger with the New York City-based accounting firm, Ganer + Ganer where the firm will now be operating under The Bonadio Group name.

TD Bank is proud to introduce Marcus Gonzales as their inaugural Community Business Development Officer in NYC. Marcus brings over 17 years of commercial banking experience, community advocacy, and the passion to positively impact diverse business communities. His drive and focus is to support the financial milestones and opportunities of all New Yorkers; connecting clients, colleagues, and our culturally rich and diverse communities. This has led him to become a trusted advisor with local business leaders and community organizations, partnering on financial empowerment and access to capital programs, that fuel the success of our diverse business community.

Lynn Neils, former Chief of the Complex Fraud/ Cyber Security Unit in the United States Attorney’s Office for the Southern District of New York, has joined Foley Hoag LLP as a partner in the White Collar & Government Investigations practice group. She is resident in the firm’s New York office and will help expand the firm’s white collar criminal defense, internal investigations, regulatory enforcement, corporate compliance and complex commercial litigation capabilities.

Joelle Byrer has a diverse professional background in both design and project management. Her 23- year career includes working as a project designer for Robert A.M. Stern Architects and the landscape designer, Deborah Nevins & Associates. She also served as Managing Editor of Architecture Magazine. Prior to SPD, Joelle was Director of Design and Construction for Capital projects for the Borough of Queens at the City of New York’s Parks and Recreation Department. Projects with SPD include the relocation of St. Francis College and MCC Theatre and interior fit out of Poster House on 23rd St. Joelle holds a Master’s in Architecture from the Rhode Island School of Design and a degree in Art History from the University of Vermont.

ACCOUNTING

The Bonadio Group The Bonadio Group, a nationally ranked Top 50 CPA firm announces the appointment of Maxine Ganer CPA, MBA, to Partner. Maxine joins The Bonadio Group upon the completion of the firm’s merger with the New York City-based accounting firm, Ganer + Ganer where the firm will now be operating under The Bonadio Group name.

CONSULTING ENGINEERING

JB&B Environmental Al Barba has joined the team as the President of the newly formed JB&B Environmental, focused on Quality and Compliance for Water + Air. Barba comes to JB&B with over 30 years of experience in chemical and environmental engineering and will play a critical role in JB&B Environmental, providing consulting and testing services that will support clients with both essential maintenance and monitoring as well as necessary compliance and oversight in water and air-related consulting.

ANNOUNCE

YOUR BIG NEWS IN CRAIN’S!

ACCOUNTING

The Bonadio Group The Bonadio Group, a nationally ranked Top 50 CPA firm announces the appointment of Robert Ganer CPA, MBA, to Senior Counsel. Robert joins The Bonadio Group upon the completion of the firm’s merger with the New York Citybased accounting firm, Ganer + Ganer where the firm will now be operating under The Bonadio Group name.

PROMOTE. Why not?

CRAINSNEWYORK.COM I SEPTEMBER 28, 2020 I

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

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

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

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

LAURA PETERSON

Laura Peterson’s résumé lists a whopping 10 positions she’s held at the multinational professional services company Managing Director and Communications, Media and Technology Northeast Business Leader Accenture since joining the firm in 2000. In her current role as Accenture the Northeast business lead for communications, media and technology, the enterprising ladder climber presides over a team Laura Peterson’s résumé lists a whopping 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held at the multinational professional services company andinCommunications, Media and Technology Northeast Business Leader million profit-and-lossManaging statementDirector for clients the Accenture since joining the firm in 2000. In her current role as aforementioned sectors as well as the high tech sector. Peterson Accenture the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Laura Peterson’sstructure. résumé lists a whopping within Accenture’s global management Since 2017, she 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held the multinational professional company has been a board adviser to at Fairygodboss, an online platformservices that million profit-and-loss statement for clients in the since joining the firm in 2000. In her current role as seeks to elevate womenAccenture in the workplace. aforementioned sectors as well as the high tech sector. Peterson the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. #NB20073 Since 2017, she within Accenture’s global management structure. of 3,000 professionals. Peterson is charged with managing a $750 has been a board adviser to Fairygodboss, an online platform that nt fo nt ffor or client ccl clients liients ts iin ts n the tth he he million profit-and-loss statement seeks to elevate women in the workplace. entioned sectors as well as as the th he high gh tech sector. Peterson Peterson aforementioned aam m mo on o ng m more ree tth tha than ha h han aan n 4400 cl clients cli li t aand nd nd works with key business leaderss amo among Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. gem empermission ent struct cttu ure. rreee. Since Siince ince ce 2017, ce 220 201 2017 01777,, she she sh h within Accenture’s global management structure. Further manag duplication without is prohibited. #NB20073 n a board adviser to Fairygodboss, Fairr yg yggod go o od dboss, an online on onl nlline inee platform platf pla latfo tth hat has been that work orkp place. seeks to elevate women in the workplace.

LAURA PETERSON

Reprinted with permission permissi ssion from f m Crain’s rain’s New York Bu Busi Business. in ness ess.. © 2020 Crain Co Communicati Communications ons Inc. All rights hts rreserved. eserved. F urth her duplication without without permission with permission is prohibited. prohibited. ##NB20073 Further

CRAINSNEWYORK.COM I OCTOBER 26, 2020 I

ASKED & ANSWERED

PAT WANG Healthfirst

INTERVIEW BY JENNIFER HENDERSON

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

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

What happens when patients again begin seeking services? We do see utilization coming back, and we have been encouraging our members to get needed care because people have put a lot of stuff off. We have to see whether the bounce back is gigantic or it just brings things back to a steady state. If we go back to a more normal utilization pattern, then the regular incentives of trying to align around good preventive care and avoiding unnecessary care, they just kick in. How can the city safely bounce back from the pandemic? Continue doubling down on the public health measures already in place: wearing masks, social distancing and hand sanitation. We know what to do. But I think a singular focus on getting the schools open for full learning should top the list of what we are aiming for. We should measure our success against that goal. As an employer, I can tell you that we will not be able to get fully back to work until the thousands of employees with school-age children can gget their kids back into school. It’s of course better for all children and particularlyy critical for poorer children. The city’s economic recovery is going to hinge on how quickly and how well we can get that done so that parents can resume their normal lives too. As a longtime resident of the city who has watched us recover from recession, Hurricane rece re reces ecession e cession, ssi ssion, s sion, ion, 9/11 /11 1 and a an n nd d Hurr icane Sandy, I believe in the city’s ability to bounce back against the odds. But this time e is going ng test te t all all of al of us, and we should be sober about the need for everyone to contribute to the solution. What challenges es face face the broader insurance industry? needs Balancing ncing g the tth he h e need ds and expectations of consumers who need and deserve good health care coverage, expandds ingg access s however howeve o er we er we can can and doing it within an increasingly constrained economic environment. This is Medicaid, especially ttrue rue with th hM edicaid, where the state’s budget situation is dire at the same time as people’s needs increasing. impact of the state’s are increasin ng. Given Giv iven ve ven ve en n that th that at Healthfirst has over 1 million Medicaid members, member memb embers, s, the potential p p state s especially budget is se es sp s pe p e ecial a lyy con cconcerning. oncerning. cerning For me, me our priority priority has to be enabling enabl enab bling b blin ling in ngg as many people as possible n po ble to have full possi access to high-quality higggh-qua h - alitttyy ccare, h-qua are, and it’s going to be are be a challenge to figure ure e out ou ut how to do that in this this economic environneed of the provider delivery system. ment. Insurers Insurre errs also al n eed to be mindful of the hurt being experienced nced d by by so o much m strongg doctors, hospitals Balancing The value of of our ourr products pro pro prod od ducts relies on havingg stron als and an nd d commun community co communi om om resources. Ba lancing all of financially this in a finan ncially allyy viable al vvia iable way is going to be a challenge. h ll ■ Reprinted with permission ission sssiion io on ffrom on rom ro rom om Crains Crain’s rai rains aiins ains in n’s ns’s New ew w York Y Yo k Bu Busin Business Bus B Busi Business. usin ine n . © 2020 20 2020 02 02200 Crain Cra C Crrraaain in n Communications Communications Inc. All rights reserved. reserveed. Further without #NB20080 Furthe rther ther th herr duplication her duplicati du d dupl uplication pl caaation attion tiion ion n withou w wit witho with ithout out permission ermission rmission missi m mission i io ission ion on is is prohibited. pro proh pr prroh

ENGINEERING / ARCHITECTURE

AECOM AECOM announced the appointment of Tom Prendergast as New York Metro Executive for its Design & Consulting Services business. Mr. Prendergast will be responsible for leading more than 3,000 staff within the states of New York and New Jersey. He will also focus on delivering seamless solutions for AECOM’s clients that leverage its integrated delivery platform of architecture, building engineering, transportation, water and wastewater, and program and project management.

HOSPITALITY / TOURISM

Vinson & Elkins Hy Pomerance has joined Vinson & Elkins in New York as Chief Talent Officer, bringing more than 25 years of experience in human resources and leadership development in a variety of financial and professional services firms. Pomerance will oversee all aspects of global legal talent and HR functions, including recruitment and advancement, professional development, diversity and inclusion, and benefits. He earned his Ph.D. in psychology from Albert Einstein College of Medicine in the Bronx.

Ease Hospitality David Smith has joined Ease Hospitality as the Chief Hospitality Officer, responsible for continuing to enhance and expand the company’s diverse portfolio of venues, clients, tenants and workforce through the opening of @Ease 605. A business development and brand management expert, David is an award-winning pioneer in the hospitality space, recognized for his progressive, driven, and down-to-earth approach with a record of exceeding and redefining operational and strategic goals.

RECOGNIZE INDUSTRY ACHIEVERS IN CRAIN’S For more information contact: Lauren Melesio, Director, Reprints & Licensing lmelesio@crain.com • (212) 210-0707

LAW

TECHNOLOGY

Honcho Honcho, the first AI-powered communications protection software that proactively trains employees as they type, has announced the appointment of Tom Bubeck as CEO. Bubeck brings strong strategic leadership and compliance experience to the role of leading the company through its next phase of growth. Top brands count on Honcho to foster inclusive, compliant and fair business communications.

REAL ESTATE

Sterling Project Development Sandra Polsak is a highly respected owner’s representative and project management executive with 40+ years of experience who has provided collaborative, comprehensive management for some of the most complex and iconic civic and cultural projects in NYC. She has worked on projects such as the Samuel Friedman Theatre on Broadway and The Shed in Hudson Yards. Prior to joining SPD, Ms. Polsak was a founding principal of 74West Project Management in addition to being a Senior Project Executive at Levien & Company for 17 years. She also spent nine years at The New York Public Library and seven at Lincoln Center. Ms. Polsak is a licensed architect with a Bachelor of Architecture degree from Cornell University.

Listing opportunities: Debora Stein at dstein@crain.com or submit directly to CRAINSNEWYORK.COM/PEOPLEMOVES NOVEMBER 29, 2021 | CRAIN’S NEW YORK BUSINESS | 13

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HOSPITALITY

When it comes to checking proof of vaccination, restaurateurs find themselves in a tough spot BY CARA EISENPRESS

Executive orders

ISTOCK

The city put Key to NYC in place as an incentive for adults who were not yet vaccinated. It is kept in place by two executive orders, which Mayor Bill de Blasio renews every five days, arguing that the

AN EMPLOYEE at Katz’s Delicatessen checks a patron’s Covid vaccine card.

of weekly Covid-19 deaths occurred among those already vaccinated, according to data published by the city. Eighty-seven percent of New York City adults have had at least one dose of a Covid-19 vaccine. Mitch Schwartz, a representative for the mayor, did not say when de Blasio would stop renewing the orders. The executive orders set out fines that begin at $1,000 and creep up past $5,000 for a third offense. But of 50,200 inspections, only 23 violation notices have been issued. The city declined to break down inspections and warnings by neighborhood. Restaurants in residential Manhattan and Brooklyn seemed more enthusiastic about the Key to NYC mandate and accepting of the hiccups around its start. “The clients do not mind at all,” Eric Ripert of high-end Le Bernardin said in September. “Nobody has complained.” But for others, the unintended consequences around implementing the rule were “shocking,” hospi-

“I’M NOT THE ONE PUTTING THEM OUT OF WORK. THE MAYOR IS” city is still in an emergency. The average daily number of deaths from suspected and confirmed Covid-19 cases has dropped to six per day, and since the beginning of October, an average of 25%

AP PHOTO

fter a violent standoff between guests and a host over the city’s Covid-19 vaccine proof requirement at Carmine’s, the eatery hired dedicated security staff. The owner wanted to relieve the hosts, who are hired to manage waitlists and seat guests, of the brunt of customer inquiries about the policy. “We serve a lot of people—600 to 1,800 a day,” said Jeffrey Bank, owner of the Italian restaurant, which attracts locals and out-oftowners alike to its Upper West Side and Times Square locations. “You can’t do anything of that nature without people questioning it.” Bank said that his business was largely unchanged two months into the vaccine mandate, but that compliance did add a burden to operations. The mandate, called the Key to NYC, requires that unvaccinated customers and employees stay out of dining rooms and kitchens. To avoid confrontations with customers, many restaurants have opted for takeout-only or alfresco service. The mandate has led restaurant owners to shift some staff to office jobs or to let them go entirely. Thorny legal questions about accommodating unvaccinated staff and customers have not yet played out, lawyers and consultants say.

COVID CASES

or medical grounds. That tality attorney Lee Jacobs accommodation, howevtold Crain’s. Almost every er, cannot include invitsingle one of his restauing an unvaccinated perrant clients ran into an son—employee or issue, he said. One closed customer—inside a dinindoor dining completeing room or kitchen. ly, Jacobs said, returning PERCENTAGE of New Yorkers who What the accommodato takeout only. have had at least tion discussion does is “They didn’t want to be one dose of a cover the restaurant’s levaccine enforcers,” JaCovid-19 vaccine gal risk if a pregnant emcobs explained. ployee or disabled cusWhen asking for proof tomer barred from entry of vaccination, another tries to sue. set of restaurants discov“If there is a reasonered that some workers PERCENTAGE of able accommodation, had lied about their imweekly Covid-19 then you must give it,” migration status, using deaths that have said Brian Klein, a hospiborrowed names and Sooccurred among tality adviser at Weincial Security numbers to the vaccinated since October stein and Klein. “But the make it through the hirresult is the same.” ing process, Jacobs said. For Mallios, there was When these staff members presented their real proof of not really a reasonable accommovaccination, the names didn’t dation to make. “She is either tendmatch—an employment liability ing bar or not,” he said. He called the firing “lousy.” for the business. Jacobs said that several restauAt Bar Marseille, in Rockaway, the hardest moment of the imple- rants had offered noncompliant mentation for partner James Mal- servers a position as an off-site reslios was firing a pregnant bartend- ervationist or digital marketing coer. He said his office called the ordinator. But once a business city’s Human Rights Office five makes an accommodation for a times before getting an answer single employee, it has to offer the about whether it was legal to let go same accommodation to anyone of an employee whose status would with a vaccine exemption; one restaurant can have only so many ordinarily be protected. “I can’t imagine that she has a lot reservationists. It has become easier to blame de of other income floating around,” Mallios said. “That one was really Blasio and sever ties with anyone who will not show their vaccinahard.” Key to NYC rules are clear that tion proof, said restaurateurs such employers and hosts must engage as David Burke, owner of David in a dialogue with anyone asking Burke Tavern. “I’m not the one putting them for an accommodation on religious

87% 25%

out of work,” he said. “The mayor is.” The bartender and most of Jacobs’ clients declined to speak on the record because of the sensitive nature of personnel issues.

Outdoor dining The city’s outdoor dining provision has saved restaurateurs from many tense negotiations with customers; the restaurateurs may offer an alfresco table to guests who do not wish to share vaccine information or have a legitimate exemption. This is defined as a reasonable accommodation, but it could change as the weather continues to cool down. “On a rainy evening, you’d have to explain that ‘I can’t let you in except to use the bathroom, because I’m prohibited, but I’d be pleased to deliver the food to your door,’ ” said John Egan, an attorney who specializes in Americans with Disabilities Act cases at Seyfarth Shaw. The city’s rules do address one form of discrimination. Hosts or bouncers cannot more closely examine the vaccine passport of someone whom they perceive to be from a less-vaccinated group. That provision caught the attention of Hawk Newsome, a local Black Lives Matter leader, who brought a group to protest outside of Carmine’s following the violence between the host and the customers, who were Black. “My fear is there will be issues where hosts doubt the integrity of the cards when it comes to Black people,” he said. ■

14 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 29, 2021

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POLITICS

How Build Back Better would affect New York, from affordable housing policy to climate change BY BRIAN PASCUS

REP. RITCHIE TORRES calls the bill “a social contract for the 21st century.”

BLOOMBERG

ew York stands to gain a lot if President Joe Biden's $2.1 trillion Build Back Better bill becomes law. Congressional Democrats in the House of Representatives passed Biden’s expansive social policy package on Nov. 19 in a nearly unanimous party-line vote. While its fate remains uncertain in an evenly divided Senate, there are elements in the legislation’s present form that would affect New Yorkers from all parts of the city and state. The bill touches nearly every element of the economy—from taxation to housing to green energy, health care, child care and education—and would radically alter the relationship between the federal government and families because of expanded government services and new federal benefits. Rep. Ritchie Torres, who represents the Bronx, called the bill, “a social contract for the 21st century,” in an interview with Crain’s. Here are four elements that would affect New Yorkers most.

Affordable housing policy The bill includes one of the largest investments of public housing ever made at a nationwide level. It calls for $63 billion in spending to either rebuild or repair public housing; $25 billion is aimed at helping low-income tenants make rent payments; and a $15 billion trust fund would be used to fund grants and loans for more affordable housing down the road for the neediest families. Billions of dollars more would be allocated for low-income housing tax credits, homeowner support and funding to spur the purchase or rent of affordable housing. Overall, roughly $166 billion would go toward public housing spending or rental assistance in some form. The money would be a boon for the New York City Housing Authority, which has seen its needs sky-

More than half a million New Yorkers—or 1 in 15 city residents— live in the city’s public housing, which numbers nearly 2,300 buildings and almost 178,000 apartment units. NYCHA said this year that it needs $40 billion in major repairs and that it has seen a “steady decline” in federal and state funding for operations and capital projects since 1998.

The SALT deduction The state and local tax deduction allows individuals to deduct certain local taxes from their federal returns, including property tax, sales tax and income tax. But in the 2017 Tax Cuts and Jobs Act signed by former President Donald Trump, SALT deductions were capped at $10,000. The Build Back Better bill would raise the SALT deduction cap from $10,000 to $80,000 for 10 years. The cap has turned into a big headache for New Yorkers, who previously were able to write off higher state income-tax amounts from their federally taxable income, and a political albatross for national Democrats, who are divided on how to adjust a cap whose proposed repeal benefits a limited number residents in blue states. Democrats from states with high local taxes, such as New York, New Jersey and California, have criticized the SALT cap because their constituents have borne the brunt of the losses from the lowered write-off amount, which was previously unlimited. These criticisms by coastal Democrats have spilled into the heart of the Build Back Better bill and ignited debate over

THE BILL WOULD RAISE THE SALT DEDUCTION CAP FROM $10,000 TO $80,000. rocket over the years from a combination of necessary repairs to aging buildings—some of which were constructed in the 1930s—and sudden damage caused by weather events such as Superstorm Sandy and Hurricane Ida. “This is critically needed money for NYCHA,” said Moses Gates, vice president of Housing and Neighborhood Planning for the Regional Plan Association, an urban planning nonprofit. “It’s not a complete solution for NYCHA getting back to a state of good repair, but it will take a giant chunk out of the capital repairs budget.”

whether a social policy package aimed at working-class families should include provisions that help the relatively wealthy, who were the primary beneficiaries of an uncapped deduction. The Brookings Institute estimated that the top 1% of households would average $35,000 per year in deductions on their federal taxes if a full SALT repeal went into effect, while other families would get back just $37 per year on average. The fate of Build Back Better could hinge on how the SALT deduction is framed in the Senate. Senate Democrats such as Bernie Sanders of Vermont and Michael Bennett of Colorado are examining if they can create an income threshold that would limit the wealthiest earners from qualifying for the deduction. That policy, however, may not sit well with the majority of New York’s congressional delegation, who would vote on any revised Senate bill. Sixteen members from the Empire State signed a letter in April calling for a full repeal of the cap. The letter concluded with the threat, “No SALT, no deal.”

Expanded child tax credit The Build Back Better bill would formalize expansions made to child tax credit policy established under the American Rescue Plan Act, signed by Biden in March. That bill saw the child tax credit increase this year from $2,000 to a maximum amount of $3,600 for each child under 6 years old. The Build Back Better bill would extend the maximum $3,600 credit for another year. Under the new bill, children ages 6 to 17 could also receive $3,000 into 2022, or $250 per month. Before the pandemic

16% of children under the age 18 in New York lived in poverty, according to White House figures. As recently as 2017, the Child Tax Credit paid a maximum amount of $1,000 per year, per child. The structure of the previous child tax credit was regressive, Torres said, because it excluded onethird of American children and two-thirds of children in the South Bronx because their parents didn’t earn enough to file income tax returns. Under the present expansion, nearly every child in the Bronx would warrant a child tax credit, Torres said. “I think of it as Social Security for families with children,” Torres said. “As a country we have to invest in social and human infrastructure.”

Green energy investments The bill would make the largest investments in renewable energy in the nation’s history: $555 billion would be set aside to combat climate change and prepare America to transition to a green energy economy through a combination of tax credits, grants and investments, among other incentives. By comparison, former President Barack Obama’s $757 billion stimulus package in 2009 spent $80 billion on green energy policies. The Biden bill includes $150 billion for clean electricity tax incentives, $105 billion in resiliency investments, $25 billion in clean energy loans, and $110 billion in investments for clean energy technology such as solar batteries. The bill features both production and investment tax credits for electric vehicles. Companies that sell electrical vehicles would receive permanent tax credits, while consumers who buy them could expect

to see their costs per vehicle decline by $12,500, according to the White House's figures. Households and businesses that install solar panels onto their roofs could see a 30% reduction in costs through tax credits. Biden’s recently passed $1.2 trillion infrastructure bill, which also features green energy investments, includes $7.5 billion in funding for new electrical vehicle charging stations nationwide. All this adds up to a lot for New York, which has been victim of some of the worst consequences of climate change. From 2010 to 2020, New York state experienced 31 extreme weather events, costing $100 billion in damages, according to the White House's figures. “Climate change doesn’t care about boundaries,” Gates said. “I think the investments will really help us move in the right direction.” New York has been a leader in transitioning to a green economy. Gov. Kathy Hochul signed legislation this year mandating that auto dealers sell or lease only zero-emission new vehicles by 2035. Former Gov. Andrew Cuomo announced in 2019 plans to reduce statewide carbon emissions 85% by 2050. The New York City Council’s Local Law 97 places strict carbon emissions caps on commercial and residential buildings over a period of years, with the goal of reducing emissions by 80% by 2050. But those ambitious policies have been handicapped by a lack of federal dollars, Torres said. “There can be no clean energy transition without federal investment,” Torres said. “There’s no evidence that we can have widespread electrification without federal incentives or mandates.” ■

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menus, automated kitchen prep robots and pre-recorded audio tours. That has left hospitality companies in the city opting to do more with less for the long term—or even forever—indelibly changing the face of hospitality in New York City. “In the future, hospitality might not be me looking you in the eye and giving you your meal,” said Steve Zagor, a restaurant consultant. “It might be a great website, or a great gift in the take-out bag I find when I get home. We have to expand the relationships in hospitality to compensate for how the world is now.” Business owners deployed this technology to guard customer and employee safety when Covid-19 precautions seemed temporary. But the changes have become entrenched as the labor shortage has morphed into a years-long story. Though New York City has put all its cards on the table for a hospitality recovery—restaurants require proof of vaccination under the promise of safety, outdoor dining is being made permanent and international tourists can now visit—the city’s recovery is still trailing the nation’s, and the big hospitality jobs gap between early 2020 and now seems stickier than imagined, in part because many operators are finding that tech tools and automation bring in more money while cutting compensation costs. In surveys like the American Customer Satisfaction Index, he pointed out, the company that consumers feel most warmly about is a firm that manufactures glass and titanium gadgets—Apple. “They have hospitality,” Zagor argued.

Fast food leads ‘human-free’ Walk into Shake Shack, McDonald’s, Starbucks or some Sweetgreen locations: if you haven’t placed your order online already, you can do so with your finger on a tablet mounted on a central table. For fast-casual restaurants, where orders are placed with a cashier at the counter, adopting technology has moved fastest. Customers who use Starbucks’ reward program, which is optimized in its digital-ordering app, account for half of all U.S. sales. That’s one way that the company expects to return margins to

shiers, according to Katie Fogerty, its chief financial officer. Shifts to human-free ordering were underway pre-pandemic, led by large companies like McDonald’s, which had installed kiosks in some city locations as early as 2015. At restaurants with table service, replacing servers with tablets has not been as swift. Instead, there have been some cuts to service, which customers say they miss. “The attention and attentiveness of the staff makes me feel special,” said Grace Ann Sweeney. Sweeney, 30, works in client services at a tech company, and prior to the pandemic would dine out with clients several times a week. “I definitely ask a lot of questions, because I value the staff ’s opinions,” she said. “You lose part of the experience if you're not taking the time to talk to someone.” But certain casual sitdown establishments are adopting technology permanently, said Steve Simoni, CEO of restaurant tech firm Bbot, which enables QR code ordering and payment—popular at spots with crowded bars. Where dozens of people used to wave uselessly at busy bartenders, who might take half an hour before turning to them, Bbot speeds the service. Well before Covid, Simoni said that owners of such bars tried out Bbot’s product in order to reduce the pressure on existing staff members. The problem was acceptance by staff, who were reluctant to have to fulfill both in-person and app orders. Servers’ concern for their health during the pandemic changed their tune. “The staff wanted to be safer so they said ok,” he said. Guest acceptance followed, and owners thrived because they were able to sell far more than before. Bbot now has about 300 customers in New York City. Arlo SoHo is one of them. Gary Wallach, the hotel’s food and beverage director, has used Bbot to add more revenue without so many staff members. He said his 70-person staff is now the right size. Pre-pandemic, he employed about 90. One venue, the hotel lobby bar, is still closed; Wallach said opening it would reinstate a few more shifts. Meanwhile, revenue from newly placed QR codes come with no extra investments beyond some stands for the signs. “We still have the staff greet guests,” Wallach said. “They teach [customers] to use the technology.” Like Arlo, “the majority of food halls and bars, they are not going back,” Simoni said. “It’s too good for their business.” That does not mean that

COMPANIES DO MORE WITH LESS, INDELIBLY CHANGING THE FACE OF HOSPITALITY pre-pandemic levels in 2022, even while pushing up the average wage of human retail employees to nearly $17 by next summer. Starbucks president and CEO Kevin Johnson said in his fourth-quarter earnings call that investment in ultra-efficient espresso machines and an artificial intelligence platform were among the “training improvements designed to replace complexity” in stores. At New York-based Shake Shack, orders placed in the app or at in-store kiosks are larger, on average, than those placed with ca-

comeback as pandemic restrictions ease. The hedge fund Citadel ordered sushi to serve 1,200 recently, for example, to be delivered by 10:30 a.m. With the rice automation and nine workers, MakiMaki’s team was done with time to spare. “Without the machines, there is no way we would be able to do that,” Takarada said. The sushi machines, which he orders from Japan, are now on a sixmonth backorder. He said so many mom-and-pop sushi spots that had previously eschewed automation are breaking down and trying it, thanks to the labor shortage. As he opens stores in the future, Takarada said he will consider installing automatic kiosks instead of cashiers, which can be the hardest positions to fill. However, he worries that may be an automation bridge too far. “That could result in a negative experience,” he admitted. “People want that traditional way of interacting with the restaurant, but unfortunately we have to look into what else we can automate.”

SUSHI MACHINES allow for faster production in a smaller space

Turning from tablets ASAP

BUCK ENNIS

ROBOTS

tech-empowered ordering will become permanent at higher-end spots, according to Simoni.. “I think it’s very American, the act of ordering from another human,” said Simoni. “People like that experience of being out, maybe ordering for the table. There is a psychological element—it’s a power thing.” In more casual settings, the interaction is more transactional, he said, giving a lift to Bbot and other forms of technology.

Pre-recorded tourism guides On the city’s tour buses, a preCovid turn towards technology has also heralded a smaller workforce but, argues one tour bus company, a better hospitality experience. In 2016, that company, TopView, invested in a GPS-triggered audio system that runs in 11 languages to cater to non English-speaking tourists, according to Jennifer Li, the company’s head of marketing. “Our decision to not have live tour guides has to do with user preference and our company’s vision for standardizing our product, so that all our customers experience the best possible service,” she said. “The current labor shortage is a really huge problem for companies our size, and industry and automation is crucial in being able to provide services and stay afloat.” She said that Gov. Kathy Hochul’s new plan to reimburse tourism companies for bringing back workers in advance of demand would

allow TopView to rehire bus drivers, maintenance workers, customer service staff and dispatchers. However, Li said, TopView does not plan to bring back human tour guides because customers have been happy with the recordings. Earlier this month, an out-ofwork tour guide called into the Brian Lehrer Show to complain about the trend of replacing guides with recordings. His complaint inspired Mayor Bill de Blasio to advance a bill, introduced to the City Council in 2018, that would require an employee to occupy the top deck of double-decker buses, according to the mayor’s representative, Mitch Schwartz.

Prep cook sushi robotics At MakiMaki, a fast-casual sushi joint with two locations and one more on the way, owner Kevin Takarada uses four robots to enable faster production in a smaller space with fewer employees. “Our robots don’t replace, they assist,” he said. Automating routine tasks like measuring, rinsing, cooking and shaping the rice for sushi rolls changes who he hires, Takarada said. Rather than look for hard-tofind sushi chefs, he simply hires “good people, with good personalities,” as he put it. Because he adopted automation when he opened in 2017, he has been able to fulfill enormous orders that have helped with MakiMaki’s

At Wild East Brewing Co. in Gowanus, a safety-motivated shift to tablet ordering was a “lifesaver,” said co-owner Lindsay Steen. But she won’t rely on the tablets in the future. The experience eroded a key portion of her vision: educating customers about beer, especially the more unique concoctions offered at the site, such as the Prescience Pearl, a farmhouse blonde brewed with black tea, tapioca and taro root. Steen says that forcing patrons to have their phones out reduces person-to-person interaction, the very thing that "having a beer and going to a brewery is all about." Though Steen hasn’t yet been able to hire at the pace she wanted to and has cut shifts, she has maintained all five of her original hires. And though their hours haven’t grown, their responsibilities have evolved. “Everybody started as a bartender,” said Steen, “but now one manages distribution and deliveries. Another was interested in brewing, so she got trained in the back and now is full-time brewing and kicking ass. We have a lot of workers who help on canning and bottling days, and another bartender who is now a salesperson. A few are getting our private event space going.”

‘Back of the house’ is ideal Hospitality professionals who worry about losing personable service say that behind-the-scenes tech may provide a happy medium between humans and robotics. “What design can do relative to technology is help support the human interaction,” said David Rockwell, who has designed dozens of hotel, restaurant and theatre spaces in New York City over several decades. For example, he created the hotel rooms at a recent project, the Civilian Hotel on W. 48th Street, to be easy to maintain, meaning fewer staff would be hired to clean. “None are substitutions for the need for human connection,” he said. “But there is a way that back of house can support being efficient.” ■

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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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ŚƚƚƉƐ͗ͬͬƚĞĂŵƐ͘ŵŝĐƌŽƐŽĨƚ͘ĐŽŵͬůͬŵĞĞƚƵƉͲ ũŽŝŶͬϭϵйϯĂŵĞĞƚŝŶŐͺEt&ŵE sŝ ŵYƚEǌEŬ ŝϬϬDϮ Ś>t/ǌzũ ƚD ĚŚDdDϮ YϱzdDǇйϰϬƚŚƌĞĂĚ͘ǀϮͬϬ͍ĐŽŶƚĞǆƚсйϳďйϮϮdŝĚйϮ ϮйϯĂйϮϮϮϬĞϮϳϳϬϬͲďϲϳϬͲϰϱϱϯͲĂϮϳĐͲĚϴĞϮϱϴϯďϯϮϴϵйϮϮйϮĐйϮϮKŝĚйϮϮйϯĂйϮϮϴϭďĞϵĞϯĂͲϬϲϱϲͲϰĞϵϰͲϵϮϰϱͲ ĨĂϮϭϰĞďϮϬĂďϮйϮϮйϳĚ

dŽ ŽďƚĂŝŶ ĨƵƌƚŚĞƌ ŝŶĨŽƌŵĂƚŝŽŶ ĂďŽƵƚ ĐŽŶƚƌĂĐƚŝŶŐ ŽƉƉŽƌƚƵŶŝƚŝĞƐ ĂŶĚͬŽƌ ƚŚĞ ƉƌĞƋƵĂůŝĨŝĐĂƚŝŽŶ ƉĂĐŬĂŐĞ ĂŶĚ ďŝĚ ƐŽůŝĐŝƚĂƚŝŽŶ ƉĂĐŬĂŐĞͬƐ͕ ƉůĞĂƐĞ ĐŽŶƚĂĐƚ ŽůŽƌĞƐ tŽŽĚĞŶ͕ tŽŽĚĞŶΛƚĐĐŽ͘ĐŽŵ ϮϬϭͲϵϱϰͲϵϬϵϮ͘ dŚĞ ĚĂƚĞ ĨŽƌ ƚŚĞ ǀŝƌƚƵĂů ƉƵďůŝĐ ŽƉĞŶŝŶŐ Ăƚ ƚŚĞ dƵƌŶĞƌ ŽŶƐƚƌƵĐƚŝŽŶ ŽŵƉĂŶǇ ŽĨĨŝĐĞ ůŽĐĂƚĞĚ Ăƚ ϯϳϱ ,ƵĚƐŽŶ ^ƚƌĞĞƚ͕ EĞǁ zŽƌŬ͕ EĞǁ zŽƌŬ͕ ŝƐ :ĂŶƵĂƌǇ ϭϭƚŚ͕ ϮϬϮϮ ϭWD >ŝŶŬ͗ WůĞĂƐĞ ũŽŝŶ ƚŚŝƐ ŽƉĞŶŝŶŐ ŵĞĞƚŝŶŐ ĨƌŽŵ ǇŽƵƌ ĐŽŵƉƵƚĞƌ͕ ƚĂďůĞƚ Žƌ ƐŵĂƌƚƉŚŽŶĞ͘

ŚƚƚƉƐ͗ͬͬƚĞĂŵƐ͘ŵŝĐƌŽƐŽĨƚ͘ĐŽŵͬůͬŵĞĞƚƵƉͲ ũŽŝŶͬϭϵйϯĂŵĞĞƚŝŶŐͺE &ŵEǌhϰEǌDƚE ŐǁEŝϬϬ dĚů>dŐϮ d ƚ ŵ:ŝ ũŚũEdůŚzd ũйϰϬƚŚƌĞĂĚ͘ǀϮͬϬ͍ĐŽŶƚĞǆƚсйϳďйϮϮdŝĚйϮϮйϯĂй ϮϮϮϬĞϮϳϳϬϬͲďϲϳϬͲϰϱϱϯͲĂϮϳĐͲĚϴĞϮϱϴϯďϯϮϴϵйϮϮйϮĐйϮϮKŝĚйϮϮйϯĂйϮϮϴϭďĞϵĞϯĂͲϬϲϱϲͲϰĞϵϰͲϵϮϰϱͲĨĂϮϭϰĞďϮϬĂďϮйϮϮйϳĚ

PUBLIC & LEGAL NOTICES

Vice President, Portfolio Management

Notice of formation of PECUNIAM LLC, file with SOS of NY on 7/22/2021 Loc. in NYC, designed as agent upon whom process may be served SSNY, shall mail process to 2 Pinehurst Ave. Apt F7, NY, NY 10033. Purpose: Any lawful activity.

/ New York, NY) – Dvlp & maintain a

stable & robust portfolio using statsticl arbitrage stratgs; anlyze & combine predctve mathmtcl models (alphas)

produced by resrchrs & dvlp optmzatn

algorithms in order to generate statsticly signfcnt returns. Reqs Bach in Math, Comp Sci, Comp Engrg, Electrical

Engrg, Electronic Engrg, Physics, Stats, or Operations Research & 2 yrs of

exp in job offrd or 2 yrs of exp as VP,

Research, and/or Sr. Quant Researcher, &/or Quant Researcher or in smilar positn(s). Bkgd in educ, traing or exp

must incl mathmtcl maturity, incldg the

undstdg of anlysis, linear algbra, logic, problity, & stats; dmstrtd undstdg of

basic optmzatn concpts; strong pro-

gramg exp, incldg knwldge of C, C++,

NOTICE OF FORMATION of NYCNCC SUB-CDE 15, LLC ( the “LLC”) filed with the Secretary of State of the State of New York (“SSNY”) on 07/ 16/2021. Office location: New York County. The principal business address of the LLC is: One Liberty Plaza, New York, New York 10006. SSNY has been designated as the agent of the LLC upon whom process against it may be served. SSNY shall mail service of process to c/o New York City Economic Development Corporation, One Liberty Plaza, New York, New York 10006, Attention: General Counsel. Purpose: any lawful purpose.

& Python. Send resumes to Sandra.

DiCairano@worldquant.com; ref job title in subjct line.

PUBLIC & LEGAL NOTICES NOTICE OF FORMATION OF M-DESIGN BUILD, LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 09/12/2021. Office location: NEW YORK County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/ her is: MICHAEL MAHAL, 440 WEST END AVE., NEW YORK, NY 10024 Purpose: any lawful act or activity.

Notice of formation of Jason Pang, DDS, PLLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 08/30/21. Office location: NY County. SSNY designated as agent of LLC upon whom process may be served. SSNY shall mail a copy of process to: 501 5th Ave, #703, NY, NY 10017. Purpose: Dentistry.

NOTICE OF FORMATION of GENEALLELE LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/03/2021. Office location: NY County. SSNY designated as agent upon whom process may be served. SSNY shall mail copy of process to: GeneAllele LLC, 82 Nassau St #60941, New York, NY 10038. Purpose: any lawful purpose.

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.

Notice of Formation of 9 VANDAM LP JV LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/18/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Arch Companies, 15 West 27th St., 6th Fl., NY, NY 10001. Purpose: any lawful activities.

NOTICE OF FORMATION of PrettySub Cosmetics LLC. Arts of Org filed with Secy. of State of NY (SSNY) on 9/8/21. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 35 W 31st St. Frnt 1. NY, NY 10001. R/A: US Corp Agents. Inc. 7014 13th Ave. #202, BK, NY 11228. Purpose: any lawful act. NOTICE OF FORMATION OF : Javier Jr Bike Shop 2 LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 05/06/2021 Office location: New York County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 1774 Amsterdam Ave New York, NY 10031 The principal business address of the LLC is 1774 Amsterdam Ave New York, NY 10031. Dissolution date: N/A Purpose: any lawful act or activity.

Contact Claudia Hippel at 312-659-0076 or

POSITION AVAILABLE (w/ Specialization) (WorldQuant, LLC

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 Goddard Real Estate Development LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/22/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Goddard Riverside Community Center, 593 Columbus Ave., NY, NY 10024. Purpose: any lawful activities.

141 Development LLC, Art. of Org. filed with SSNY 10-28-21. Office Location: NY County. SSNY designated as agent of the LLC for service of process. SSNY shall mail a copy of any process to c/o the LLC, 6 W. 14th St., NY, NY 10011. Purpose: Any lawful act or 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 Qualification of FBG ENTERPRISES OPCO, LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/12/21. Office location: NY County. LLC formed in Delaware (DE) on 09/21/21. Princ. office of LLC: 205 Hudson St., 5th Fl., NY, NY 10013. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. NOTICE OF FORMATION OF : Javier Jr Bike Shop LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 11/02/2020 Office location: New York County. SSNY has been designated as agent upon whom process against it may be served. The Post Office address to which the SSNY shall mail a copy of any process against the LLC served upon him/her is: 5025 Broadway New York, NY 10034. The principal business address of the LLC is 5025 Broadway New York, NY 10034. Dissolution date: N/A Purpose: any lawful act or activity.

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 FANATICS SPV, LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 11/12/21. Office location: NY County. LLC formed in Delaware (DE) on 0 3/11/21. Princ. office of LLC: 205 Hudson St., 5th Fl., NY, NY 10013. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. Notice of Formation of FJM INTERNATIONAL LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/09/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Franck Moison, 993 Park Ave., NY, NY 10028. Purpose: Any lawful activity.

Notice of Formation of Greenstein Family Legacy LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 10/21/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 240 West 40th St., NY, NY 10018. Purpose: any lawful activities.

SUBMIT SUBMIT YOUR YOUR BUSINESS BUSINESS CLASSIFIEDS CLASSIFIEDS TODAY TODAY Get your message in front of New York’s influential business community with Crain’s New YorkBusiness - Classified Ads • Public and Legal Notices • Request For Proposals • Job Openings • Real Estate • Business Opportunities • Event Listings and More! Advertising Section Contact Hippel To placeClaudia a classified ad,

at 312-659-0076 Call 212-210-0189 or Email: or email: jbarbieri@crainsnewyork.com claudia.hippel@crain.com

Notice of formation of Manhattan Pain Medicine Provider, PLLC. Arts. of Org. filed w/ Secy. of State of NY (SSNY) on 08/02/2021. Off. loc.: New York Cnty. SSNY designated as agent upon whom process may be served. SSNY shall mail process to: 2 Fifth Ave., Ste 7 , New York, NY 10011. Purpose: Any lawful activity.

20 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 29, 2021

P020_CN_20211129.indd 20

11/23/21 6:02 PM

EVENT

The 2021 Most Powerful Women in New York list has been announced!

Tickets now on sale for the 2022 event!

MARCH 3, 2022 12 - 2 p.m. Register Today:

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Event Questions:

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11/24/21 11:00 AM

FROM PAGE 1

are not returning to their post-work workouts. Some studios have closed, and the survivors have tried to remain afloat by adopting new revenue streams, including virtual and outdoor workouts. But not every studio can recoup enough from such new business models to afford the rent, and some that had become part of the New York City experience may be benched for good.

Recovery mode Local boutique studios were thriving before the pandemic, representing a fitness-market share of about 40%, according to the International Health, Racquet & Sportsclub Association, a trade group that represents the industry. But since the pandemic began, and as of this past July, 31% of fitness clubs in the state have closed, according to a report by the association. According to ClassPass data, 17% of New York City studios have shut their doors. “We’re just not going back to March 15, 2020,” said Julian Barnes, chief executive of Boutique Fitness Solutions, a consulting firm for small gyms and fitness studios. At Swerve, the company has partnered with Crunch Fitness to offer live cycling videos to its Union Square and 34th Street locations. Posner said he expects to partner

with gyms nationwide. The company is still in the early stages of its new business model, so it does not yet know the full financial picture. However, consumer feedback has been strong, the company says. “We remain very positive and bullish,” Posner said. “The shift in business model has created a more efficient business that has reduced our overhead.” Many studios are starting to cater to corporate clients. Kari Saitowitz, owner of Fhitting Room, a Manhattan-based fitness studio, created a sales team to provide wellness services to businesses. It also offers in-person and virtual live classes as well as on-demand videos—but its revenue is still down. Virtual workouts have not filled in the gaps from missing customers. “We’re at about 50% of our prepandemic revenues,” Saitowitz said. “That’s really based on the number of clients coming through the doors.” Dance cardio studio 305 Fitness, which has two locations in Manhattan and one in Washington, D.C., launched a virtual platform with 3,000 subscribers and a certification program that has trained over 1,000 instructors in the 305 brand nationwide, but its revenue is also still depressed. Sadie Kurzban, the brand’s owner, said her business has been able to recover only 30% to 50% of its 2019 customer base. “We’re still in an in-between phase,” Kurzban said. “We’re not quite out. We’re not quite in.”

For both Fhitting Room and 305 Fitness, the revenue from their virtual platforms is not nearly as much as they were making overall from in-person classes prepandemic. Fhitting Room said its virtual classes this year bring in roughly the same amount of revenue on a monthly basis as one of its smaller studios. At 305 Fitness, the annual revenue from virtual classes amounts to the annual revenue from just one studio. Both Saitowitz and Kurzban expect their business to get a boost when people return to the office. In the meantime, they are searching for new customers. Finding new patrons can be an uphill climb, however. Studios are finding that many New Yorkers either have returned to big gyms or have left town. Then there is the competition from trendy at-home fitness products such as the Mirror and Peloton. “Fitness is a habit,” said Charles Cassara, president of the U.S. Fitness Coalition. “What we did by closing for 18 months is we took people out of their habit and we gave them a new one.”

Some gains Some local studios have been able to capitalize on the current environment. After Leigh Burton was furloughed from her job at Monster Cycle, she launched NuSweat, a yoga and strength-training studio, with her business partner, Ky Digregoriohas. NuSweat offers virtual and in-person classes at a pop-up

SAITOWITZ SAID Fhitting Room is making about 50% of its prepandemic revenue.

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in East Williamsburg. “Had we not been forced into this situation, I don’t know if I personally would have felt the need to leave what I was doing,” Burton said. BYKLYN, a Brooklyn cycling studio, was able to transition its business into an outdoor cycling location. By doing so, founder Amy Glosser noted, the company’s revenue has returned to prepandemic levels. “I’m unusual,” she said. “I found a way to stay open and build a business given the pandemic craziness.” But success stories like these are the exception and not the rule. “Let’s be clear: That’s a small percentage of the market,” Barnes pointed out, “probably no more

than 15% to 20%.” To make matters worse, many gyms and studios still owe landlords back rent, and the New York eviction moratorium expires Jan. 15. “Most gyms won’t make [it through] the winter months,” Cassara said. “Winter is our slowest [season].” The U.S. Fitness Coalition, along with more than 300 companies including Barry’s and CrossFit, are lobbying the U.S. Senate to provide $30 billion for affected gyms and studios in the upcoming budget reconciliation bill. “There might be some funding coming our way,” Casara said, “but that’s probably not going to be until summer of 2022 if we’re lucky.” ■