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

ASKED & ANSWERED The case for assessing hospital needs during rezonings PAGE 6

GOOD EATS New exhibit explores African American foods PAGE 3

CRAINSNEWYORK.COM

FEBRUARY 7, 2022

INVESTIGATION

RED TAPE SNARES LOCAL CHARITIES

Nonprofits serving the most vulnerable wait months—even years—for the city to pay bills BY BRIAN PASCUS

nonprofit agency that provides critical services to homeless New Yorkers is owed $31 million by New York City. As the agency, Project Renewal, awaits payment—with some bills dating back three years—it has to rely on creative accounting measures and multimillion-dollar loans to meet its 1,000-person payroll and stay afloat. It’s a scenario that’s familiar to social service nonprofits across the city. Promised funds frequently lanAMOUNT guish for months in bureaucratic sign-offs; it’s been nonprofits generated in that way for years, across mayoral administrations, economic activity but slow payments are harder to carry during the last year pandemic as agencies struggle to meet demand. Project Renewal is a 54-year-old nonprofit that maintains shelters, food services, medical care and PERCENTAGE of employment training for homeless New Yorkers. With bills submitted a budget of $130 million, the organization uses a vafor payment to riety of independent programs and subcontractors to the comptroller that are six or operate different arms of its mission. Project Renewal more months old finances its social service programs largely through millions of dollars in contracts registered with New York City, which promises that payments will be delivered in a timely manner.

$78B

50%+

BUCK ENNIS

CITY BEET KITCHENS, part of Project Renewal, trains people coming out of the city’s shelter system as chefs and cooks.

See PAYMENT on page 19

HEALTH CARE

NoMad fertility startup hits unicorn status with acquisition BY MAYA KAUFMAN

oMad-based fertility startup Kindbody has signed a deal to acquire Vios Fertility Institute, doubling its national footprint of fertility clinics to 26 and propelling its valuation to almost $1.2 billion. Founder and CEO Gina Bartasi said last Tuesday’s announcement makes Kindbody the first fertility startup to become a unicorn.

NEWSPAPER

VOL. 38, NO. 5

P001_CN_20220207.indd 1

Bartasi declined to discuss the terms of the deal but said it would be immediately accretive to Kindbody’s revenue, because there is no crossover between the two companies’ clinic networks. Headcount will double from about 350 to nearly 700. Chicago-based Vios operates clinics in Illinois, Michigan, Missouri, Oregon, Washington and Wisconsin. Kindbody’s 13 clinics include two in the city and locations in New

Jersey, California, Georgia, Minnesota, Texas and Colorado. The two companies have collectively treated about 100,000 patients to date. Bartasi said the acquisition would help Kindbody double its employer business, which provides fertility-benefits packages to 78 clients, by 2023. “Twenty-six clinics across the country now gives us sufficient density to go to Fortune 500

employers,” she said. The combined company is set to expand to 40 locations by the end of the year, including a new clinic opening in Brooklyn in the next quarter, Bartasi said. She declined to disclose Kindbody’s annual revenue but said the acquisition would drive 500% revenue growth this year and shorten its time to profitability by about six months, to mid-2023. ■

GOTHAM GIGS

THE LIST

RESTAURANT INDUSTRY VET IS HUNGRY FOR MORE

Manhattan’s biggest retail leases

PAGE 23

PAGE 10

2/4/22 4:43 PM

HOSPITALITY

Maloney pushing for three restaurant relief bills, including more for industry revitalization fund

he specter of omicron hangs over a battered restaurant industry still struggling to maintain revenue and make payroll nearly two years into the pandemic. “Omicron wiped us out,” said James Mallios, owner of Amali on the Upper East Side and three other restaurants in the metropolitan area. “Whatever we made back after [a Paycheck Protection Program loan] and the economy reopened got completely wiped out after omicron.” Help may be on the way, though, through the work of Rep. Carolyn Maloney, who represents Manhattan’s East Side, Queens and Roosevelt Island. She is working to pass three federal bills tailored to aiding restaurants. The bills would send billions of dollars in relief directly to the restaurant industry, create protections in the form of business interruption insurance and rework the Paycheck Protection Program to extend the time frame. Maloney, a 14-term representative and chair of the House oversight committee, hopes to pass a bill replenishing the Restaurant Revitalization Fund, which ran out of its $28.6 billion almost as soon as

applications opened May 3. “People tell me all the time that they tried to apply on day one [of the fund opening], and it immediately ran out of money before they could get into it,” Maloney said. “These are not just big restaurants. These are the tiny little coffee shops and bodegas.” Roughly 65% of New York City restaurants that applied to the national fund were shut out when money was exhausted by mid-May, said Andrew Rigie, executive director of the New York Hospitality Alliance, a restaurant trade group. Maloney’s bill in the House of Representatives aims to place $60 billion into a fund that would award both new applications and honor the pending ones that weren’t paid out last year. “The minute you put that thing out, you’ll have so many people apply,” Maloney said. “They ask me all the time, ‘When am I getting my money?’ ” Rigie argued that refilling the Restaurant Revitalization Fund is critical to the overall economy, and every restaurant pushed to the brink of financial collapse potentially hurts other businesses. “No matter what industry you’re in, you’re probably connected to restaurants,” he said. “You have

farmers upstate who grow the vegetables, the truck drivers who deliver the food, the employees within the restaurant and the people that come in to fix the equipment.”

“You’re going to have to respond to the emergency—the government will go in anyway—so [you] might as well plan ahead and have a structure in place to protect [businesses] in the future,” Maloney said. “Think it through and work with the private sector.”

PPP extension Maloney is also co-sponsoring a bill with Upper West Side Rep. Jerry Nadler to create a sixmonth extension for small MALONEY businesses that received PPP money but remained closed and couldn’t put it to use between April 1 and Dec. 31, 2020. The bill, the Low-Revenue Recipient Paycheck Protection ate a federal Pandemic Risk ReinProgram Relief Act, would require surance Program to cover business no new federal spending; instead, it interruption insurance losses from simply shifts the coverage period of future pandemics. Modeled after the PPP loan to ensure small busi- the Terrorism Risk Insurance Act of nesses aren’t forced to pay back the 2002, which gave business owners funds to banks before they’ve had a and the insurance industry mutual protection in the event of a terrorist chance to use them. “What was intended to be a loan attack, the Pandemic Risk Insurthat was forgiven has turned into a ance Act would apply nationwide and backstop any future losses exdebt,” Rigie said. Lastly, Maloney is advocating for perienced by pandemic-induced her Pandemic Risk Insurance Act of shutdowns. To Maloney, it makes sense to set 2021. Using 75% public funds and 25% up a fund now rather than react in private money, the bill would cre- the heat of another emergency.

Cost could be astronomical

BLOOMBERG

BY BRIAN PASCUS

Maloney and her team said there’s no price estimate on what the Pandemic Risk Insurance Act would cost the federal government. It could be astronomical, however. Marc Dedman, an attorney with the Barton law firm and a business and insurance specialist, estimated last year that the commercial insurance industry took in $600 billion in premiums in 2019. Dedman said the estimated business interruption insurance losses of all United States companies are between $250 billion and $350 billion per month. Even with President Joe Biden in office and Democratic majorities in the House and Senate, Maloney recognizes her big ambitions for helping the city’s restaurants will need the power of her entire party in Congress. “Passing a bill is not easy. It’s hard, and it’s a lot of work,” she said. “Quite frankly, it’s hard to pass a big spending bill right now.” ■

BY CARA EISENPRESS

M CONFERENCE CALLOUT

MARCH 3 MOST POWERFUL WOMEN IN NEW YORK LUNCHEON Join Crain’s for an in-person lunch to celebrate the 2021 Most Powerful Women honorees. Katherine Farley of Lincoln Center, restaurateur Melba Wilson of the NYC Hospitality Alliance, Nancy Hagans of the New York State Nurses Association, Kimberly Godwin of ABC News and MaryAnne Gilmartin of MAG Partners will all take part in discussions during the event.

MANHATTAN MANOR 201 W. 52nd St. Time: Noon to 2:30 p.m. CrainsNewYork.com/ MPW2022

ore beer, fewer wings. That’s the order city restaurant and bar owners hope to see during the upcoming Super Bowl outings. Although the cost of poultry has soared, prices for beer have stayed relatively steady compared to a year ago, according to a Wells Fargo analysis of common Super Bowl fare. “We can’t pass it along entirely to the consumer, so we have to eat a good chunk of it,” said Jarrod Fox, founder of TailGate, an outdoor sports bar in Williamsburg. The cost of chickens is up 26% nationwide since this time last year, and prepared chicken wings increased by 14% for bone-in and 26% for boneless, said Michael Swanson, Wells Fargo’s chief agricultural economist. In the New York area, costs have risen even more, Swanson said, because of higher freight costs in a crowded, high-traffic city. Indeed, Fox said he was paying 50% more for wings than last year. In the region, the cost of food at home rose by 6% and eating at restaurants by

7% between December 2020 and December 2021, according to the Bureau of Labor Statistics’ Consumer Price Index. Meat, poultry, fish and egg prices jumped more dramatically—by 14.9% for New Yorkers since last year. In particular, as chicken wings have become a standard in football food spreads, they have developed a pronounced seasonal pattern, Swanson said, shooting up in cost around this time every year. This year’s big increase likely reflects supply-chain issues that resulted from staff shortages throughout the poultry industry. Also, last year’s parties were still relatively muted, perhaps featuring less food, because more Americans were following Covid-related gathering guidelines; that makes the annual jump even starker. Yet, there is only so much you can raise prices, Fox said: “If you are selling chicken wings at $12.99 for eight wings, you can’t go to almost $20 for the same eight.” The profit margin is almost nothing, he said. Yet he also can’t take them off the menu. “It is just what people want,” he said. TailGate is doing its best to in-

crease revenue on other fronts, such as with a new list of winter cocktail specials, developed by drink professionals and with more interesting ingredients. Still, Fox said, it’s hard to make up for the lost margin. Because of competition within the beer industry and since many consumers have turned to flavored spiked seltzer and alternative drinks in recent months, beer demand is down nationwide, Swanson said. That has led prices of the brew to increase only by 4%, a bit of relief for bars. TailGate is hosting both a pregame party early in the day and a Super Bowl viewing party Feb. 13, and reservations have been selling steadily, Fox said.

Good timing Larger operators also feel the pain of high prices and iffy supplies. “Chicken has been an issue for us over the course of the last six months,” said Tim Doherty, presi dent and chief operating officer of Doherty Enterprises, which fran-

ISTOCK

Super Bowl spikes chicken wing prices 50% for city restaurants, somewhat less nationwide

chises 140 locations of Applebee’s, Chevys Fresh Mex and Panera Bread in New York, New Jersey, Georgia and Florida. The Super Bowl is the biggest takeout event of the year, and according to Doherty’s projections, his locations will have enough chicken to get through the rush. Applebee’s has an online-only delivery brand called Cosmic Wings that is completely devoted to the dish. But because so many Super Bowl orders are for takeout, he said, he can’t make up for the smaller margins by selling booze. A bit of good timing is on his side, however. Because the football game is so late in the year, he expects it will be mixed in with on-premises Valentine’s Day dining on Saturday, Feb. 12 and Monday, Feb. 14. “My expectation for that weekend is very strong,” he said. ■

Vol. 38, No. 5, February 7, 2022—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for no issue on 1/3/22, 7/4/22, 7/18/22, 8/1/22, 8/15/22, 8/29/22, 11/28/22 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 2022 by Crain Communications Inc. All rights reserved.

2 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P002_CN_20220207.indd 2

2/4/22 4:17 PM

COURTESY OF MOFAD

HOSPITALITY

A RE-CREATION of the Ebony magazine test kitchen (top); Harris, the scholar behind the exhibit (below)

Harlem exhibit sets table for celebration of African American food The culinary journey is slated to kick off at the Africa Center Feb. 23 BY CARA EISENPRESS

ANGIE MOSIER

n the fall of 2019, a small Brooklyn museum had an idea: to mount the definitive exhibition about Black foodways in this country at the Africa Center in Harlem. “In today’s world, it seems obvious to do this show,” said Nazli Parvizi, president of the Museum of Food and Drink, located in Williamsburg and known as MOFAD. Back then Jessica Harris, the Queens-born scholar behind the exhibit, felt as though she had one shot to present the whole story of Black foodways to a museum audience. Harris is the driving force behind the exhibit, “African/American: Making the Nation’s Table.” “This was before the Black Lives Matter movement,” Parvizi said. It was also before Harris’ book High on the Hog: A Culi-

nary Journey From Africa to America became a Netflix documentary. Two and a half years later, tickets for “African/American,” which opens Feb. 23 in Harlem, have finally gone on sale. Between then and now, a group of advisers, curators and leaders in Black food and culture were able to shepherd their exhibit through Covid-19 pandemic cancellations and a giant cultural shift on race to get to the finish line. It began on Kickstarter. Because MOFAD is a relatively new institution, it often has turned to Kickstarter as a way to raise funds and build an audience. “We say food is culture, and as an extension of that, having

“WE ARE GIVING PEOPLE A TASTE OF THE STORY”

See EXHIBIT on page 22 FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 3

P003_CN_20220207.indd 3

2/4/22 4:41 PM

RESIDENTIAL SPOTLIGHT

Hedge-funder looking to flip this pad in a NY minute The window-lined three-bedroom in the West Village hits market with a 30% markup three weeks after $7.2M sale BY C. J. HUGHES

ven judged against the hectic pace of the current market, an attempt by a hedgefund manager to flip a downtown apartment appears remarkably fast. On New Year’s Eve, Harsh Padia, the chief executive officer of HAP Capital, said hello to 2022 by snapping up a three-bedroom condo, No. 5W at 601 Washington St. in the West Village, for $7.2 million, records show. Three weeks later, on Jan. 21, while the ink was still drying on the deed, Padia turned around and listed the property for $9.3 million, which could yield a return on investment of about 30%. The tall

$9.3M

LISTING PRICE for apartment 5W at 601 Washington St. A developer involved with both 24 Leonard and 601 Washington is Charles Dunne, a prolific downtown builder through the decades. Whether Padia has an even greater financial stake in the projects is unclear. Messages left with HAP Capital and Dunne’s current firm, Shibumi Development, were not returned. The land on which 601 Washington sits was purchased by a limited liability company tied to a SoHo address for $31 million in 2013. Dunne appears to be a managing member of that company, records show. For his part, Andrew Azoulay, the Douglas Elliman agent who is listing 601 Washington, declined to speak about his client. But Azoulay added that No. 601, a 10-unit, limestone-walled edifice that opened quietly during the pandemic “is one of the prettiest buildings in that corner of the West Village” and that he had shown Padia’s pad about dozen times in a week. Not all of Padia’s trades seem to have been lucrative. He sold a penthouse at 471 Washington St. for $17.6 million during the fall, according to city tax records. He paid about that much for it in 2012. ■

window–lined unit also boasts three and a half baths, 2,900 square feet and a small balcony. Padia, whose offices are in Hudson Square, appears to be a huge fan of the area’s new luxury condos. He picked up a six-bedroom unit at 150 Charles St. for $29 million, in 2016, and he snapped up the penthouse at 24 Leonard St. for about $24 million in 2019, records show. The penthouse, a six-bedroom apartment that has a fireplace and a private rooftop, was also listed in January, for $36 million, a 50% premium.

DOUGLAS ELLIMAN

IT “IS ONE OF THE PRETTIEST BUILDINGS IN THAT CORNER OF THE WEST VILLAGE”

NO. 5W at 601 Washington St., which is 2,900 square feet, boasts tall windows, three and a half bathrooms and a small balcony.

REAL ESTATE

East Village landlord banned from real estate for 5 years $3M

aphael Toledano, an East Village landlord found to have repeatedly harassed tenants and engaged in fraud, is banned from participating in the real estate industry for at least five years, according to a recent ruling by the state Supreme Court in Manhattan. An investigation into his practices by Attorney General Letitia

Toledano also engaged in deceptive business practices, the attorney general’s office found, by pretending to be a lawyer and advertising apartments with three or four bedrooms, when legally the apartments could have only one or two. “New York tenants can breathe more easily knowing that Rafi Toledano is no longer in the real estate business,” James said. “Through his deceptive and illegal actions, Toledano caused incredible pain and suffering to hundreds of vulnerable families, who are still feeling the effects of his harassment today.”

“THROUGH HIS DECEPTIVE ACTIONS, TOLEDANO CAUSED INCREDIBLE PAIN” James’ office determined that Toledano had harassed tenants at his bankrupt portfolio of 15 East Village buildings through coercive buyouts and illegal construction practices, and failed to provide his rent-regulated tenants with utilities, repairs and other necessary services.

In violation After coming to a settlement agreement with James in June 2019, Toledano was required to pay $3 million in damages and penalties, and his business had to be supervised by an independent moni-

tor to ensure he does not engage in fraud and tenant harassment. Nearly three years later, James found Toledano in violation of the agreement by failing to make penalty payments and maintain his remaining buildings, and moved to have him barred from the real estate business. He will be required to pay the attorney general’s office an additional $500,000 from the sales of his current properties to cover pastdue penalties, James announced last Monday. He can petition the court in five years to ask to rejoin the business. He was also banned from having direct contact with tenants and required to hire an independent management company for his buildings.

Lender settlement Last year Madison Realty Capital, a major real estate lender, was found by James to have knowingly originated more than $100 million in loans to Toledano, who had used

AMOUNT the landlord had to pay in damages and penalties as part of a 2019 settlement with the AG’s office

TOLEDANO

NUMBER of East Village buildings he had in his now-bankrupt portfolio

the money to buy the East Village buildings. As part of Madison’s settlement with James over the scandal, the lender was forced to take over the portfolio of buildings and assume $1 million in rent credits for tenants who were victimized by Toledano.

BY NATALIE SACHMECHI

The lending company was also required to register almost 200 of the units with the state Division of Housing and Community Renewal at or below a monthly rent of $2,000. Around 50 of them are registered at or below $1,000 per month. ■

4 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P004_CN_20220207.indd 4

2/4/22 4:22 PM

HEALTH TECH

Local health startups raised a record $9 billion, with the virtual care sector a significant winner BY MAYA KAUFMAN

ocal health and life sciences startups raised a record $9 billion in 2021, up 150% from the previous year, according to a report released Tuesday by the professional organization New York City Health Business Leaders. The capital went to 182 New York City-based startups, three of which raised more than $500 million by the end of the year: Cityblock Health, Noom and Ro. The report from Health Business Leaders, which was formed in 2009, found that 87% of last year's funding went to digital health startups. Only 13% went to biotech startups, despite the city's recent focus on cultivating and promoting the life sciences industry. Most of the proceeds were doled out in late-stage rounds, with mega-rounds of $100 million or more accounting for 60% of all funding, according to the report. Virtual care and coordination startups snagged 36% of the capital doled out in 2021, more than any

predicts that 2022 will outdo last year both in funding and innovation. The fund's portfolio includes local health startups Maven and Oula. "I don't think we'll see a plateau," she said. "There's too much opportunity."

Addressing inequity One such opportunity is for startups combating health inequities,

Samaniego said. She cited Hued, one of the fund's portfolio companies, which connects patients of color with culturally competent medical providers and health literacy resources. Entrepreneurs, investors, clinicians and professionals surveyed by Health Business Leaders agreed. The organization found that 46% of industry professionals believe health equity is the most under-

funded area of digital health, according to a survey conducted with early stage investor AlleyCorp and released as part of the funding report. Other areas ripe for growth and innovation, Samaniego said, include mental health, home care, elder care, chronic conditions and health care infrastructure, such as medical-billing solutions. To aid the continuing growth of

the city's health-startup economy, Ellerin said the city should help by launching talent accelerators or other training and recruitment initiatives. "One thing that does continue to surprise me is that more focus from the city is not paid to digital health," Ellerin said. City Hall didn’t respond to a request to comment on Mayor Eric Adams' plans to aid the sector. ■

Stronger Together.

“I DON’T THINK WE’LL SEE A PLATEAU. THERE’S TOO MUCH OPPORTUNITY.” other sector, the report found. Biotech, patient engagement and mental health were the next most popular sectors. Bunny Ellerin, co-founder and CEO of Health Business Leaders, said the findings echo skyrocketing funding numbers nationwide, in part because the pandemic accelerated innovation in digital health. The report does not break down funding to startups led by women or people of color, but Ellerin said six of the 30 companies that raised mega-rounds in 2021 are led by women. Women-led companies received $715 million of the $5.4 billion raised in those mega-rounds, or 13%.

Opportunities abound Looking ahead to this year, Ellerin said she anticipates a growing focus on virtual specialty care in the local startup scene. Examples include Summus Global, which announced a $22 million strategic investment round on Tuesday. "Medicine is still very much segmented by body part, so you're going to see more and more specialty-specific virtual care offerings," Ellerin said. The CEO said she expects some consolidation and vertical integration among startups in the space, given that many are competing for the same contracts. Adrianna Samaniego, an investor at Female Founders Fund, a Chelsea-based early stage venture fund,

We are pleased to announce that Marks Paneth LLP has joined CBIZ & MHM – together, one of the nation’s Top Ten accounting providers. While our name has changed, our personal approach to serving our clients has not. cbiz.com | mhmcpa.com

Effective January 2022 MHM (Mayer Hoffman McCann P.C.) is an independent CPA firm that provides audit, review and attest services, and works closely with CBIZ, a business consulting, tax and financial services provider. CBIZ and MHM are members of Kreston International Limited, a global network of independent accounting firms. © Copyright 2022. CBIZ, Inc. and Mayer Hoffman McCann P.C. All rights reserved.

FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 5

P005_CN_20220207.indd 5

2/4/22 4:12 PM

ASKED & ANSWERED

INTERVIEW BY MAYA KAUFMAN

WHO SHE IS City councilwoman representing District 29 in Queens (Forest Hills, Kew Gardens, Rego Park and parts of Richmond Hill)

ity Councilwoman Lynn Schulman, who in January was appointed health committee chair, has deep health care roots. She worked at HIV/AIDS nonprofit GMHC and spent a decade overseeing business affairs at Woodhull Medical Center. When she ran for City Council in 2021, she campaigned on a vision of increased hospital capacity in Queens. Her professional and personal lives collided when she was diagnosed with breast cancer during the campaign. She became an advocate for breast cancer patients who could not get their tumors removed due to pandemic restrictions on elective surgeries, working with Gov. Kathy Hochul to ensure future stoppages do not apply to cancer-related surgeries.

Expanding hospital capacity in Queens was a centerpiece of your campaign platform last year. What’s your elevator pitch? Over the last 20 years, 10 hospitals have been closed in Queens. Queens was the epicenter of the virus. Because of that, people died needlessly, just like in the HIV/AIDS crisis. There’s no reason for that. There was a commission many years ago under Gov. George Pataki that was put together to close hospital beds. That led, to some degree, to the lack of hospital capacity we have now. There are places in the city, particularly

2021

AGE 64 BORN Elmhurst, Queens RESIDES Forest Hills, Queens EDUCATION Bachelor’s in journalism and political science, New York University; J.D., Brooklyn Law School CANINE CARE Schulman owned a therapy dog named Elvis, a West Highland terrier who was the first nonhuman to win a volunteer award from NYC Health + Hospitals. He passed away in 2018. GANG GREEN She describes herself as a “long-suffering New York Jets fan who has eternal hope that they will someday be a great football team.”

in southeast Queens, where if you’re the victim of a shooting or some kind of trauma, it’s very difficult to get care. That creates a ripple effect to everybody else in Queens being able to get the hospital care that they need. That’s why I would push to not only add hospital capacity but make it part of the zoning application process, so that we know what’s needed before we build a lot of developments and then, when an emergency happens, there’s a lack of care.

How do you make that case to executives of large health systems?

A lot of them are experiencing the capacity issue with Covid now. They need to work with everybody on this. I want to build a coalition so that we can do things the right way and everybody is at the table having this discussion.

Are you worried that adding a hospital capacity assessment to the rezoning review process will slow down an already lengthy undertaking?

First of all, I want to work with the business community on this. I want to make that clear. In terms of slowing down, we already have to have an environmental impact assessment. That takes a very long time. I don’t think having them together is going to make the process any more complex than it is. The goal is to make sure that when people need emergency care, they have it.

Why is health equity so important to the city?

No matter what ZIP code you live in, you should be able to have access to quality, affordable health care. There are people who are not getting care right now during Covid because they’re afraid, because they don’t have information in their language. You need to know who’s in these communities. This is the most diverse City Council there has ever been. There’s an opportunity to make sure that we are investing in communities in the way where we meet people where they are and communicate with them in the language they speak. ■

BUCK ENNIS

LYNN SCHULMAN New York City Council

DOSSIER

2021 Show how far you’ve come since starting your career in New York City - submit yourself or someone you know for the honor of making our competitive 20 in their 20s list.

NOMINATIONS NOW OPEN! DEADLINE TO NOMINATE: February 25

NOMINATE TODAY: CrainsNewYork.com/20in20s

6 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P006_CN_20220207.indd 6

2/4/22 4:11 PM

IN THE MARKETS

America can blame the ‘structural issues’ in its safety net for the Great Resignation, Pimco finds

Both places have plenty of unvacabor markets are super stressed because America’s cinated people. In the U.S. 75% of the population has received a shot. safety net is full of holes. That sounds like a critique In Germany, it’s 76%, and in the from the Democratic Socialists of U.K., it's 78%. Inflation is soaring in America. In fact it’s the Europe too, according to a conclusion of Pimco, a fiJan. 28 report from the nancial institution that Federal Reserve Bank of manages $2.2 trillion in New York. Supply-chain client assets. disruptions are everyPimco economist Tiffawhere, and the global ny Wilding examined in a price of oil is 60% higher new report why U.S. labor than it was 12 months ago. markets are behaving so Then the differences differently from those in emerge. Foremost among Europe, even though both AARON ELSTEIN them, Europe isn’t seeing are equally stricken by the a Great Resignation. pandemic. She concludPimco observed that European ed that the economy here is affected by “several structural issues workers who lost their jobs in 2020 continued to get paid, thanks to unique to the U.S. labor market.” government subsidies that both Unique issues lasted longer and were more generBefore delving into how the U.S. is ous than the U.S. Paycheck Protecunique, let’s examine how our expe- tion Program. Some American companies ofrience with Covid has been similar fered furloughs, but on the whole to Europe’s.

the U.S. “relied more heavily on unemployment insurance,” Pimco said, meaning laid-off U.S. workers were on their own to get relief that could be maddeningly difficult to collect. This policy decision “likely result[ed] in lower job and labor market attachment.” You can certainly see why workers would feel that way. Another uniquely American phenomenon is the surge in retirements. This, Pimco said, happened in part because nearly half of all pension spending is drawn from private plans, such as 401(k)s, which workers can tap whenever they’re ready. In Europe 90% of pension spending comes from publicly funded plans with more rigid age requirements.

‘Great sadness’ Workplace statistics illustrate the toll Covid has taken on everyone, including those who haven’t tested positive.

ISTOCK

Many U.S. workers feel “lower job and labor market attachment” in face of inadequate pandemic financial relief

In a 2020 survey by the Commonwealth Fund, one-third of Americans reported stress, anxiety or “great sadness that was difficult to cope with,” a significantly higher reading than in other countries. Pimco said many workers have

been forced to leave their jobs because of “elevated caregiving needs as a result of less generous health care and child care social safety net systems in the U.S.” Alexandria Ocasio-Cortez couldn’t have said it better herself. ■

ON POLITICS

Adams stakes his mayoralty on crime trends that must be handled but may be outside his control Violent crime rates, particularly the number of murders, tend to rise and fall nationally, not city-by-city so-called broken windows policing—that cut the rate. In this narrative, Bloomberg’s post-9/11, hyper-militarized police built on this progress. But murders declined in many cities where broken windows policing, or other strategies credited with crime prevention, were not implemented. David Dinkins, retroactively, has been celebrated for boosting the city Police Department headcount before Giuliani took over, laying the groundwork for the 1990s decline. Yet it’s unclear whether the police headcount, which would remain relatively flat in the late 1990s and 2000s, has any direct link to the steady crime decline. Under de Blasio’s watch, stop-and-frisk, a favored Bloomberg crime-fighting tool, was quickly curtailed and murders still fell to historic lows.

Pandemic spike The new murder spike, coming at the beginning of the pandemic, is deeply troubling, threatening to undo the great urban revival of the 21st century. New York is not alone and nowhere near the worst off. In 2021 Philadelphia, a much smaller city, had a higher homicide count, breaking its previous record. Chicago had at least 800 homicides, far more than New York’s 485.

ADAMS

AP PHOTO

nlike his recent predeces- trend that he probably has little sors, Eric Adams has not control over. Crime rates, particularly the staked his mayoralty on any large social safety net number of murders, tend to rise and expansions or major policy shifts. fall nationally. The reasons remain Michael Bloomberg, tasked with hotly debated among criminololifting New York out of the ashes of gists and sociologists. Beginning in the late 1960s, cities across 9/11, moved on to draAmerica witnessed a troumatically reimagining the bling climb in murders streets—building pedesthat would not abate until trian plazas and bike the early 1990s. New York, lanes—and banning which saw just under 500 smoking in bars, kicking murders last year, was at off a public health revoluits most dangerous in tion. Bill de Blasio was the 1990, when 2,245 people mayor who created a were killed. much-heralded universal Various theories have pre-K program that will ROSS BARKAN been put forward to exprobably be with us for decades to come. plain the decades-long At best, Adams has tinkered surge, which seemed to affect large around the edges of each vision, cities everywhere. The crack epiand he has yet to introduce a 100- demic wreaked havoc. Handgun-reday agenda as promised. He has lated homicides became far more been slow to appoint agency heads common. The baby boom unand has even, at least temporarily, leashed a large, new cohort of young removed his campaign policy book men into society, and a significant from his website. majority of violent crimes are comBut Adams is attempting one mitted by those under 35. Lead exHerculean task: significantly lower- posure to children in the second ing the number of shootings and half of the 20th century may have murders in New York in a short fueled the spike too. In the 1990s, the crime drop-off amount of time. The challenge here is not necessarily in policymaking— was swift and continued into the Adams has ideas, many of which 2010s. In New York, Rudy Giuliani, the Republican mayor, was credited have been tried before. The hard part will be altering a with a tough-on-crime approach—

None of this means Adams should throw up his hands and walk away. The police, if present at a scene, can help stop crime. The flow of illegal handguns into New York must be checked, though laws at the federal level will have to, against all odds, change in some way. And the new mayor is right to emphasize an expansion in youth employment, which will help deter young men from joining gangs. There’s little evidence, though, that an alteration to bail-reform laws enacted in 2019 or charging teenagers as adults for gun crimes will suddenly lower crime to the levels of two or three years ago. One uncomfortable reality is that the pandemic has destabilized society—traffic deaths, drug overdoses,

and even incidents of unruly behavior on airplanes have spiked dramatically. Covid cases may simply have to fall far more before progress is made. Adams is right to care about crime. If murder rates are exceedingly high, greater social and policy aims become more difficult to achieve. Politically, he runs the risk of betting much of his first term on a goal that might be out of his control. Like Giuliani, Adams may get somewhat lucky, catching the end of a wave that is national in scope. Or he’ll struggle, becoming the lawand-order mayor who can’t deliver on the promised order. ■ Ross Barkan is an author and journalist in New York City.

FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 7

P007_CN_20220207.indd 7

2/4/22 4:10 PM

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

EDITORIAL

publisher/executive editor

As sports-gambling craze hits New York, we must hedge bets for public health

here won’t be a New York team in next week’s Super Bowl, but it’s a good bet plenty of Giants and Jets fans will start a new game-day tradition this year. Mobile sports betting has taken New York by storm in the few short weeks since the state legalized wagering on Jan. 8. New York is now the leading state for sports betting, thanks to more than $1.1 billion in bets, which so far have generated $89 million in revenue for sports books and $45 million in tax revenue for state coffers. Also bustling: local helplines for problem gamblers, underscor-

treatment and advocacy organizations. They would also do well to invest in statewide messaging that raises awareness of problem gambling. The messaging around online wagering should take into account the unique risk of putting such a vice readily at our fingertips—it’s easy to lose track of time and how much you’re spending when wagering is as convenient as checking your email or refreshing your Twitter feed. The state intends to use 1% of proceeds from the tax imposed on mobile sports wagering for problem gambling education and treatment. That’s likely to come up short as betting firms entice users with aggressive advertising campaigns, sign-up bonuses and one-time “risk-free” bets. The sports books also are borrowing tools from social media to drive repeat engagement, serving up a barrage of emails, offers and “free” bets once they get you in the door. Regulation of the aggressive promotional push falls under the purview of the New York state

managing editor Telisha Bryan assistant managing editor Anne Michaud

deputy digital editor, audience & analytics

Jennifer Samuels art director Carolyn McClain photographer Buck Ennis senior reporters Cara Eisenpress,

Aaron Elstein, Eddie Small reporters Ryan Deffenbaugh, Maya Kaufman,

Brian Pascus, Natalie Sachmechi, Shuan Sim op-ed editor Jan Parr,

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

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

www.crainsnewyork.com/advertise sales manager Courtney McCombs account executives Kelly Maier, Marc Rebucci, BUCK ENNIS

Laura Warren people on the move manager Debora Stein,

dstein@crain.com CUSTOM CONTENT associate director, custom content

Gaming Commission, which oversees regulations relating to sports-betting advertising. For its part, the agency would be wise to require more cautionary language in sports book sales pitches—encouraging gamblers to know their limits, elevating awareness of help options and destigmatizing

treatment for problem gamblers. A more balanced approach would help forestall a wave of problem gambling and ensure more New York sports fans can have fun placing parlays and straight bets, within their budgets. Nets in seven in the NBA Finals, anyone? ■

Sophia Juarez, sophia.juarez@crainsnewyork.com custom content coordinator Ashley Maahs,

ashley.maahs@crain.com EVENTS

www.crainsnewyork.com/events marketing manager Jessica Botos,

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

Ana Jimenez, ajimenez@crainsnewyork.com

Real estate programs like 421-a are critical for creating affordable units n 2007 I worked at the city Department of Housing Preservation and Development as director of the then-newly revamped Inclusionary Housing and 421-a Affordable Program. I ran a program that delivered affordable units in neighborhoods where, without it, only market-rate units would likely be built. As a lifelong New Yorker who spent my childhood facing housing insecurity and periods of homelessness, I understand that where you live often affects how you live. The 421-a program works by providing a tax abatement in exchange for the creation of affordable rental housing. It has been responsible for approximately 50% of all rental housing and approximately 30% of all below-market-rate rental housing created in the city since 2014. Programs like 421-a are critical for creating af-

editor-in-chief Cory Schouten,

cory.schouten@crainsnewyork.com

digital editor Taylor Nakagawa

OP-ED

BY ARDEN SOKOLOW

EDITORIAL

data editor Amanda Glodowski

ADS SHOULD CONSIDER THE UNIQUE RISK OF WAGERING AT OUR FINGERTIPS ing the risks of making sports wagering so easily accessible for anyone with a mobile phone, as Shuan Sim reports in a story this week on page 15. All that largesse should leave plenty of capacity for both the state and newly flush sports books to invest in gambling-addiction

Frederick P. Gabriel Jr.

fordable housing and increasing equity in neighborhoods across the city. I left public service in 2019 to join Douglaston Development, in part because of its unique portfolio composed of both market-rate and affordable housing projects. At Douglaston, I got the chance to see the impact of affordable housing programs on the real lives of residents. Miguel (tenant name has been changed) moved 11 years ago to the Ohm, a mixed-income building in Chelsea developed using the Inclusionary Housing and 421-a programs. Miguel was a bartender living near Whitestone, Queens. Since moving, he’s gotten married, attended City College, earned two degrees and now works as a data scientist. Both he and his wife have a 15-minute commute—less than half the time of those living in Whitestone, according to the Center for an Urban Future.

Another resident, whom I’ll call Caroline, moved to the Ohm from East Harlem while pregnant with her now 11-year-old son. He attends the local public school, where more than 64% of students score above grade level in reading (the citywide average is 48%). It is because of mixed-income housing that families like these can pay a stable, low rent and focus on their future.

Tangible benefits From health to education, living in high-opportunity areas can change the lives of low-income households. The Where We Live Report issued by New York City in 2020 found that in East Harlem and many parts of the Bronx, children are 15 times more likely to visit the emergency room because of asthma-related conditions than children living on the Upper East Side or in Greenwich Village. In certain neighborhoods in the

Bronx, only 60% of high schoolers graduate on time, as opposed to 96% in parts of Lower Manhattan, northeast Queens and Staten Island. There are real, tangible benefits to living in amenity-rich communities—and housing programs such as 421-a in combination with the inclusionary benefits play a critical role in increasing access to these neighborhoods. The need persists for smart housing policies that create mixed-income housing in high-opportunity neighborhoods to advance the goal of equity across our city. To quote Caroline, “I feel safer, and I’m getting more opportunities. This is something that I would have never thought was possible.” ■ Arden Sokolow is executive vice president of affordable housing at Douglaston Development. She was formerly chief of staff at the New York City Housing Authority.

senior manager of events Michelle Cast,

michelle.cast@crainsnewyork.com REPRINTS director, reprints & licensing Lauren Melesio,

212.210.0707, lmelesio@crain.com PRODUCTION production and pre-press director

Simone Pryce media services manager Nicole Spell SUBSCRIPTION CUSTOMER SERVICE

www.crainsnewyork.com/subscribe customerservice@crainsnewyork.com 877.824.9379 (in the U.S. and Canada). $140.00 one year, for print subscriptions with digital access. Entire contents ©copyright 2022 Crain Communications Inc. All rights reserved. ©CityBusiness is a registered trademark of MCP Inc., used under license agreement. CRAIN COMMUNICATIONS INC. chairman Keith E. Crain vice chairman Mary Kay Crain chief executive officer K.C. Crain senior executive vice president Chris Crain editor-in-chief emeritus Rance Crain chief financial officer Robert Recchia founder G.D. Crain Jr. [1885-1973] chairman Mrs. G.D. Crain Jr. [1911-1996]

8 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P008_CN_20220207.indd 8

2/4/22 5:26 PM

OP-ED

BY ANA CHAMPENY

ew York’s recovery, economic competitiveness and continuing capacity to support its most vulnerable depends on making sure city services are high quality, efficient and affordable. That is why Mayor Eric Adams was spot-on to instruct agencies to identify 3% budget savings through a Program to Eliminate the Gap. But PEGs are not the only strategy. Better management of citywide functions and working with labor to modernize work rules and benefits could provide more than a billion dollars in efficiency savings without sacrificing services. This way, the city can get the best value for what it spends and reduce the likelihood of future wrenching service cuts when a crisis does not allow time to plan or phase something in. PEGs were a routine feature of city budgeting and management from the 1970s fiscal crisis until eight years ago. During bad fiscal times, they identified needed savings. In good times, they served as management discipline, forcing agencies to regularly review priorities and improve operational efficiency. The recent lack of focus on efficiency has allowed some PEG muscle memory to wither. The preliminary budget in February will show how agencies meet the challenge—what savings are identified, how much is because of efficiency, and critically, how is recurring

spending after fiscal 2023 reduced. But PEGs are not the only tool. Opportunities abound to redesign time-consuming processes and leverage technology to reduce the cost and improve the quality of centralized city functions without cutting services.

Opportunities to streamline On Jan. 10, the Office of Management and Budget directed agencies to identify savings in the current and future fiscal years by reducing spending on underutilized services and streamlining operations while not cutting direct services, raising fees or laying off staff. Agencies also were instructed to rightsize their budgeted headcount by eliminating some of the city’s 20,000 vacant positions. In fiscal 2021, the city spent $1.3 billion to lease space, 72% more than in fiscal 2014. Not only may hybrid work reduce space needs, but the city lacks adequate data to manage space effectively, and its savings efforts, yielding less than $20 million annually, have been paltry at best. Furthermore, streamlining the lengthy and cumbersome procurement process to reduce the cost of large contracts by just 1% could save $160 million. Greater centralization of procurement could save an additional $80 million. Commendably, the administration recently announced it would downsize the city’s fleet, which increased 14%

from fiscal 2014 to fiscal 2018 before making efforts to reverse the growth. Labor negotiations offer more opportunities to streamline services and reduce costs, which would help protect jobs and provide resources to fund salary increases without opening budget gaps. More than half of the city’s budget, $53.6 billion, funds wages, health insurance and pensions, among other fringe benefits. In negotiating the next round of contracts, the administration and unions should modernize employee benefits, eliminate outdated salary differentials and change contractual work rules that impede efficient service delivery. New York City municipal employee and retiree health benefits are far more generous than those provided by New York state and other government and private employers. Nearly all city employees (95%) select a health insurance plan with no premium contributions; large state firms require contributions of around 20%, and state employees contribute from 12% to 31%. The city could save $675 million annually if city employees shared premium costs slightly below the level of state employees. Furthermore, consolidating the roughly 75 separate union welfare funds could save $160 million annually. The city and unions should modify some of the citywide agreement provisions for work hours, vacation and sick leave, overtime and other

BUCK ENNIS

To bolster its recovery, the city can save billions through better management and work rules

benefits common across nonuniformed collective-bargaining units. A thorough review would find opportunities to increase job assignment flexibility, extend the workweek to 40 hours for all employees (many work 35 hours or 37.5 hours), and alter vacation and sick leave accrual policies. Best this is done as the city considers other increasingly common benefit and work-life changes, possibly including hybrid work, family leave, tuition and training opportunities, and career paths. Specific operations can be more efficiently run by changing antiquated provisions within many of the 100-plus collective-bargaining agreements that the city renegoti-

ates every three to four years. The next round of collective bargaining should set a productivity savings target for all bargaining units. The PEG is only one of the strategies needed to put the city on sound fiscal footing. Now is the time for New York to modernize and streamline central processes, improve services and reduce costs in conjunction with labor. Improving fiscal stability, service quality, the capacity to protect our most vulnerable, and the city’s competitiveness is the grand slam New Yorkers need. ■ Ana Champeny is the deputy research director of the Citizens Budget Commission.

OP-ED

BY MICHAEL BALBONI

hen the Covid-19 pandemic ripped through our state, it deepened a crisis that was already facing New York’s nursing homes. Prior to the pandemic, the state stopped investing in long-term care. This ill-advised decision made it harder for facilities to pay competitive wages, which in turn led to a hemorrhaging workforce. To make matters worse, under Gov. Andrew Cuomo, New York actually cut Medicaid funding right at the beginning of the pandemic. These short-sighted policies have created a catastrophic storm for nursing homes in the last two years. If Gov. Kathy Hochul has her way, this is all about to change. The governor’s executive budget reinvests in our health care workforce at levels not seen in decades: $10 billion in health care spending, the largest in the state’s history. It could be just the shot in the arm that long-term-care facilities need to rebuild and develop in a post-Covid era. And just in time too. The state is

facing its greatest shortage of health care workers in history, all while our population continues to age. New York nursing homes have a turnover rate of 94%, with most staff opting to work in retail in positions that have traditionally paid far less. Meanwhile, facilities across the state are holding their collective breath each week, praying they’ll have enough staff to provide care. This is particularly the case on the weekends, when ensuring adequate staffing has become next to impossible. The governor’s commitment to invest $1 billion in health care staffing bonuses and $1.6 billion in capital funding for nursing homes and hospitals will lay the foundation for a rebuilding of the workforce and improvement of the care and patient experience, while helping to slow the exodus of staff. This critical funding will ensure that long-term-care facilities can continue to provide exceptional care to seniors, many of whom qualify for Medicaid.

Important work But the real solution goes beyond

dollars and cents. Getting talented people to join this workforce will require convincing them that this is incredibly important work that can lead to a fulfilling future beyond the entry-level job. That’s why I’m encouraged to see additional initiatives proposed by Hochul that will support educational opportunities that lead to career advancement. It’s not enough to get new workers in the door; we have to keep them and develop a workforce with the experience to support New York’s growing ranks of seniors. In order to turn the staffing crisis around, the industry and the state need to partner together and get the message out about the importance of long-term care to our communities and the increased wages and career opportunities that come with this work. Failure to do so could result in a total collapse of the industry, leaving tens of thousands of

GETTY IMAGES

We must rebuild the long-term-care workforce

health care workers without jobs and vulnerable seniors without adequate care. Let us use the impact of Covid-19 as a lesson in why investment in long-term care must remain a priority. By promoting and supporting

long-term care in New York, we can make a strong long-term plan for tomorrow’s workforce. ■ Michael Balboni is executive director of the Greater New York Health Care Facilities Association.

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. FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 9

P009_CN_20220207.indd 9

2/3/22 1:25 PM

THE LIST TOP MANHATTAN RETAIL LEASES Biggest transactions in the second half of 2021, ranked by square footage

RETAIL LEASES HIGHLIGHTS

829K

The biggest retail leases happened in Q3 and Q4

SQUARE FEET of retail space was leased in the second half of 2021

STEADY DECREASE Asking rents for retail spaces in Manhattan dropped 1.2% from Q3 to Q4 2021 and 8.4% from the prior year as retail rents continued a years-long decline. 1,000

Retail corridor average asking rents, per square foot

700

$597

600 500 Q1/2017

Q4/2021

ON THE RISE After a record level of availabilities in Q2 of 2021, vacancies decreased in the last two quarters of the year. 300

Ground-floor availabilities 266

250

200

150

Q1/2017

92%

OF RETAIL LEASES were new leases, as opposed to renewals in the second half of last year

29 30 31 32 33 34 35 36 37 38 39

40 41

42 43

Q4/2021

SOURCE: CBRE

ADDRESS

SQUARE FEET TENANT

TENANT REPRESENTATIVE(S)

LANDLORD(S)

LANDLORD/SUBLANDLORD REPRESENTATIVE

NEIGHBORHOOD

DEAL TYPE

1 2

770 Broadway

82,490 Wegmans

Ripco Real Estate

Vornado Realty Trust

Greenwich Village

New Lease

1 Madison Ave.

55,780 Chelsea Piers Fitness

JLL

SL Green Realty; Hines; National Pension Service of Korea

Direct deal

Gramercy Park

New Lease

3 4 5 6

630 Fifth Ave.

47,652 Banana Republic

Newmark

Tishman Speyer

Direct deal

Midtown East

Renewal

500 Eighth Ave.

46,000 Pearl Space Studios

Direct Deal

Walter & Samuels

Garment District

New Lease

7 W. 21St. St.

34,328 Bathhouse

RDE Advisors

Friedland Properties

Newmark

Chelsea

New Lease

1915 Third Ave.

27,400 Caremax

Related Management Company

Ross & Ross

Winick Realty Group

Upper East Side

New Lease

145 W. 45th St.

26,200 Museum of Broadway

JLL; Cushman & Wakefield

Effy Jewelry

LSL Advisors

Times Square

New Lease

1 Manhattan Square

25,187 Brooklyn Fare Kitchen and Market

Lee & Associates

Extell Development

Ripco Real Estate

SoHo

New Lease

9 10 11 12 13

705 Columbus Ave.

24,598 Dwight School

Newmark

LeFrak

Newmark

Upper West Side

New Lease

510 Sixth Ave.

24,500 Exhibition Hub

Colliers

Mosbacher Properties Group

CBRE

Greenwich Village

New Lease

10 Columbus Circle

19,184 Williams-Sonoma

Newmark

The Related Cos.

Direct deal

Columbus Circle

Renewal

127 W. 43rd St.

18,920 Mermaid Inn

LB Realty Services

Project Find

LB Realty Services

Times Square

New Lease

450 Park Ave.

17,000 BankUnited

Mogull Realty

Oxford Properties; Crown Acquisitions

Direct deal

Midtown East

New Lease

14 15 16 17 18 19 20 21 22 23 24

681 Eighth Ave.

17,000 Second Stage Theatre

Avison Young

Trans World Equities

Direct deal

Times Square

New Lease

140 W 42nd St.

15,966 Planet Hollywod

Direct Deal

GLL Real Estate Partners

Newmark

Garment District

New Lease

1 Park Ave.

13,526 Citibank

Newmark

Vornado Realty Trust

Murray Hill

Renewal

85 Fifth Ave.

13,092 Piano Software

Molly Beal

SL Green Realty

Newmark

Gramercy Park

New Lease

444 Park Ave. South

12,300 Velvet Hospitality

Stonegate Real Estate

Moin Development

Winick Realty Group

Murray Hill

New Lease

138 Bowery

12,317 The Ghost Group

LSL Advisors

Selina Limited

Friedman-Roth Realty

SoHo

New Lease

150 Rivington St.

12,137 GoPuff

Newmark

Cogswell Realty

Lee & Associates

SoHo

New Lease

30-46 Third Ave.

12,114 USA Super Stores

Lee & Associates

East 9th Apartment Corp.

JLL

Greenwich Village

New Lease

360 Madison Ave.

12,000 The Men's Wearhouse

Newmark

Stawski Partners

Direct deal

Grand Central

Renewal

601 Madison Ave.

11,954 Ben Soleimani

Retail by MONA

J-2

Buchbinder & Warren

Midtown East

New Lease

100-114 E. 63rd St.

11,880 Solis Health

Circle Realty Group

Beekman Tenant Corp.

Circle Realty Group

Lenox Hill

New Lease

10 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P010_P011_CN_20220207.indd 10

25 26

900 800

BUCK ENNIS

etail leasing picked up in the second half of 2021, with the top five leases of the year closing in the third and fourth quarters. The sixth-largest space, a Mango at 711 Fifth Ave., at 28,335 square feet, was the largest to happen in the first half of the year. Crain’s published our top retail leases for the first half of 2021 in September. Of the top 100 deals, 91 were new leases, and just nine were 770 BROADWAY renewals. The largest renewal was the Banana Republic at 630 Fifth Ave., which closed in the third quarter and ranks third on our annual list. The second-largest renewal, the Williams-Sonoma at 10 Columbus Circle, also took place in the third quarter but ranks much lower on the annual list at No. 16. The largest deal of the year was a Wegmans (No. 1) at 770 Broadway, taking over the 82,490-square-foot space that was once Kmart. The top deal is 48% larger than the second deal on the list. SoHo reigned supreme as the top neighborhood for 2021’s retail leases with 17 of the top deals taking place in the area. Close behind were Midtown and Midtown East, with 11 leases each on the list. In all, more than 1.3 million square feet of retail space was leased throughout 2021. — Amanda Glodowski

AMANDA.GLODOWSKI@CRAINSNEWYORK.COM

2/3/22 1:45 PM

44 45 46 47 48 49 50

SOUR resea

FROM

COM

foot

2021

ADDRESS

SQUARE FEET TENANT

TENANT REPRESENTATIVE(S)

LANDLORD(S)

LANDLORD/SUBLANDLORD REPRESENTATIVE

NEIGHBORHOOD

DEAL TYPE

25 26

1843 Broadway

11,110 Capital One

Newmark

Global Holdings Management

Newmark

Columbus Circle

New Lease

37 E 50th St.

11,000 Simon Omen Restaurant Concept

Direct Deal

Lotte Hotels & Resorts

Cushman & Wakefield

Midtown East

New Lease

7 Times Square

10,519 Pink Taco

JLL

Boston Properties; Norges Bank Investment Management

Colliers; Cushman & Wakefield

Garment District

New Lease

2 Manhattan West

10,333 Montefiore Medical Center

Cushman & Wakefield

Brookfield Properties; Qatar Investment Authority

Newmark

Garment District

New Lease

29 30 31 32 33 34 35 36 37 38 39

446 Broadway

10,299 Rumi Group

Yang Realty

K Property Group

Ripco Real Estate

SoHo

New Lease

233-267 W. 42nd St.

9,871 Five Below

JLL

Tishman Real Estate Services

JLL

Times Square

New Lease

598 Broadway

9,700 Pharmacann

Meridian Capital Group

598 Broadway Realty Associates

Meridian Capital Group

SoHo

New Lease

20 W. 37th St.

9,400 Gorillas

Winick Realty Group

Northern Estates Corp.

CBRE

Garment District

New Lease

920 Broadway

9,249 Okta

CBRE

KLM Equities

Newmark; CBRE

Gramercy Park

New Lease

1231-1237 Third Ave.

9,240 Oxygen Fitness

CBRE

Chetrit Group

Winick Realty Group

Upper East Side

New Lease

310 E. 2nd St.

9,195 USA Super Stores

Lee & Associates

Kahen Properties

JLL

Greenwich Village

New Lease

547 Broadway

9,063 Arc'teryx

Newmark

547 Broadway Realty Inc.

ABS Real Estate Partners

SoHo

New Lease

156 Fifth Ave.

9,000 GAP

Newmark

HRC Corp.

Direct deal

Chelsea

New Lease

140 E. 41St. St.

8,835 Albert's

RPLRE

Cohen Brothers Realty

Newmark

Grand Central

New Lease

1501 Broadway

8,717 Raising Canes

JLL

Levin Management; Rosemark Management

Newmark

Times Square

New Lease

40 41

100 W. 33rd St.

8,566 Aeropostale

Direct Deal

Vornado Realty Trust

Garment District

New Lease

220 Fifth Ave.

8,457 Sol Cucina

JLL

Stellar Management; Imperium Capital

Cushman & Wakefield

Chelsea

New Lease

42 43

155-157 Wooster St.

8,250 Galia Lahav

Winick Realty Group

Centurion Realty

Sinvin Real Estate

SoHo

New Lease

689 Fifth Ave.

8,193 Canada Goose

Lantern Real Estate

Vornado Realty Trust; Crown Acquisitions

Vornado Realty Trust

Midtown East

New Lease

44 45 46 47 48 49 50

120 Fifth Ave.

8,186 Allbirds

Lantern Real Estate

The Bromley Companies

Cushman & Wakefield

Chelsea

New Lease

80 Wooster St.

8,095 The RealReal

Winick Realty Group

Jenel Management

Direct deal

SoHo

New Lease

443 Broadway

8,054 Blick Art Materials

Ripco Real Estate

Vornado Realty Trust

SoHo

New Lease

731 Lexington Ave.

8,000 Capital One

Newmark

Vornado Realty Trust

Midtown East

New Lease

648 Broadway

8,000 Bleecker Street Bar

Lee & Associates

S&M Realty

Lee & Associates

Greenwich Village

New Lease

1530 Broadway

7,911 I Love NY Gifts

Direct Deal

Bow-Tie Partners

Colliers

Times Square

New Lease

382 W. Broadway

7,900 Jonathan Adler

J. Liff Co.; Baker New York

The Hakim Organization

Sinvin Real Estate

SoHo

New Lease

SOURCE: CoStar Group with additional research by Amanda Glodowski. This list includes leases with terms of more than two years. In cases of ties, deals are listed with the same ranking number in alphanumeric order of address. CoStar Group conducts research to maintain a database of commercial real estate information. For more information, visit costar.com or call 800-204-5960.

PHOTOGRAPHY BUCK ENNIS

FROM LEFT 770 Broadway, 1 Madison Ave., 630 Fifth Ave., 500 Eighth Ave.

WANT MORE OF CRAIN’S EXCLUSIVE DATA? VISIT CRAINSNEWYORK.COM/LISTS.

FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 11

P010_P011_CN_20220207.indd 11

2/3/22 1:10 PM

CRAIN’S NEW YORK BUSINESS

B R E A KFAST Featuring Gregory Russ, Chair and CEO CRAIN’S NEW YORK BUSINESSof The New York City Housing Authority.

B R E A KFAST

April 6 8:00 - 9:30 a.m. New York Athletic Club

Be where news happens April 6 Crain’s Power Breakfast series connects news-makers with journalists, uncovering breaking stories live on stage.

Sponsorship Opportunities:

Contact Crain’s New York Sales Manager courtney . m ccom b s@ crainsnewy ork. com

CN020617.indd 1

Event Questions:

Contact Crain’s New York Events crainsevents@ crainsnewy ork. com

2/3/22 4:16 PM

REAL ESTATE

Adams announces roster for affordable housing leadership team, lays out city’s major priorities

ayor Eric Adams has officially appointed his leadership team for one of the city’s most vexing and persistent issues: affordable housing. The team consists of Chief Housing Officer Jessica Katz, Department of Housing Preservation and Development Commissioner Adolfo Carrión Jr. and Housing Devel-

issues his affordable housing team will focus on. Katz will oversee the city’s affordable housing strategy and housing agencies, with a portfolio that includes HPD, HDC, the New York City Housing Authority, the Mayor’s Office to Protect Tenants and the Mayor’s Office of Housing Recovery Operations. She previously served as the executive director of the Citizens Housing & Planning Council, a housing and planning research and advocacy organization in New York dating back 80 years. She has also held several positions at HPD, including senior adviser to the commissioner and associate commissioner for new construction. Carrión is CEO and founder of real estate development and consulting firm Metro Futures and previously worked in the U.S. Department of Housing and Urban Development. He also served as Bronx borough president from 2002 to 2009 and as a member of the New York City Council from 1998 to 2001. “I said from day one of my cam-

“I SAID FROM DAY ONE THAT WE ARE GOING TO END THE AFFORDABILITY CRISIS” opment Corp. President Eric Enderlin, who will continue serving in the role he has held since October 2016. Adams reiterated his support for increasing New York’s affordable housing supply by rezoning areas with strong infrastructure and transit, legalizing basement apartments and converting underused hotels and offices into residential buildings, indicating that these are three

paign that we are going to end the housing affordability crisis, and this is the team of extraordinary leaders who will do just that,” Adams said in a statement. “This team has a clear mission: to create, preserve, and maintain safe, affordable housing that will build a more equitable city.”

NYCMAYORSOFFICE/FLICKR

BY EDDIE SMALL

Points of contention All three affordable housing issues Adams stressed his support for were major points of contention during former Mayor Bill de Blasio’s administration, particularly toward the end of his time in office. Rezonings were a struggle throughout de Blasio’s mayoralty, even as his administration consistently defended them as an essential tool to create more affordable housing. Efforts to rezone swaths of Bushwick and Southern Boulevard never got off the ground thanks to opposition from the local council members, and even the rezonings that were ultimately successful— namely efforts in Inwood, Gowanus and SoHo/NoHo—faced lawsuits and fierce community backlash before getting approved. Illegal basement apartments and

efforts to legalize them have been a longstanding problem for the city that flared up again at the beginning of September following Hurricane Ida, when multiple deaths from the storm happened in basements that had been illegally converted into apartments. These types of units generally come with risks such as a lack of ventilation, dangerous electrical and gas systems, and exit issues, according to the Department of Buildings. De Blasio described the issue as “one of the thorniest, toughest” ones he had faced.

Talk of converting underused hotel and office buildings into affordable housing ramped up once the pandemic hit and left many normally bustling commercial properties desolate thanks to sharp declines in tourism and commuters. The City Council held a hearing in November to discuss putting a plan together to convert offices into affordable housing, and the state passed a law last year establishing a framework for its $100 million plan to buy distressed hotels and offices and convert them into affordable units. ■

Submit your organization to be profiled in Crain’s New York Business’s Fast 50 list. This list highlights cutting edge companies making innovative discoveries, significant contributions to the city’s economy and who are transforming the way we do business. SUBMIT BY MARCH 18 TO BE CONSIDERED.

Submit your company today: Crainsnewyork.com/Fast50noms Questions?

jessica.botos@crainsnewyork.com

FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 13

P013_CN_20220207.indd 13

2/3/22 4:25 PM

REAL ESTATE

City Hall isn’t on board yet with governor’s plan to pay for Penn Station reconstruction

he administration of Mayor Eric Adams has pulled the brakes on Gov. Kathy Hochul’s plan to rebuild Penn Station—at least for now. Hochul wants to pay for the state’s share of redeveloping the despised commuter hub by having Vornado Realty Trust and other landlords build 10 new office towers near the train station, a devel-

resolved,” the City Planning Commission said in a letter to the Empire State Development Corp., it “cannot recommend its full support for the [plan] at this stage.” “There continue to be unanswered questions related to the financing … that must be addressed,” the city said, adding that it agrees Penn Station needs to be replaced, and it supports developing the neighborhood as long as development is accompanied by improvements to transit and public space. The city’s opposition means Hochul will have to come up with new ways to pay for the state’s estimated $10 billion share of the cost for a new Penn Station. “ESD has never approved a plan that wasn’t fully supported by the city. It has never happened. Never,” said Layla Law-Gisiko, chair of the land-use committee for Community Board 5, which covers Midtown. A spokesman said Empire State Development appreciates the city’s “thoughtful review.” “We are encouraged by the com-

HOCHUL WANTS TO PAY BY HAVING LANDLORDS BUILD 10 NEW OFFICE TOWERS opment that would be larger than Hudson Yards. But the new buildings may not generate enough tax revenue unless demand for commercial space in Midtown recovers, and the Adams administration is worried the city would be on the hook to cover shortfalls—as it did with Hudson Yards. Until financing for the Penn Station redevelopment is “concretely

mission’s support for our collective goal: the long-overdue revitalization of the area around Penn Station,” he said.

Concerns over congestion In addition to concerns over financing, the city said the governor’s plan to add up to 20 million square feet of office space could worsen congestion in the neighborhood. But the biggest concern is over money, with the Adams administration noting the governor’s plan has “significant economic implications and impacts on the city.” That appears to be an allusion to how the city dug into its pocket and paid $359 million to Hudson Yards bondholders after revenue from the 18 million-square-foot development came in short of projections. The city payments were 40 times higher than initially projected, according to a 2019 study by the New School’s Schwartz Center for Economic Policy Analysis, and came on top of $1.4 billion in property-tax breaks and $400 million in cost overruns paid for by the city. The rebuilding of Penn Station is part of a broader plan to expand railroad capacity and build new

TAYLOR CALLERY

BY AARON ELSTEIN

tunnels underneath the Hudson River. The total bill is expected to reach up to $40 billion, with federal authorities ponying up 50% while New York and New Jersey split the rest.

The letter was signed by CPC Chair Anita Laremont, who was appointed by former Mayor Bill de Blasio. Adams has nominated former City Councilman Dan Garodnick to replace her. ■

CRAIN’S NEW YORK BUSINESS 2022

DIVERSE LEADERS IN BANKING AND FINANCE Celebrate select and exceptional executives and mentors leading the banking and finance profession in New York City by nominating them to be profiled in our print and digital publications.

S CrainsNewYork.com/DiverseBanking

Submissions Close e . 14 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P014_CN_20220207.indd 14

2/3/22 4:32 PM

HOSPITALITY

Nonprofit culinary training program expands at Chelsea Market, and Google covers the rent

nonprofit that promotes economic mobility through training in the food industry has a new, central location and a deal on rent. Fourteen-year-old Hot Bread Kitchen has taken over a 10,000-square-foot space in Chelsea Market that used to be the Food Network test kitchen. Google, a longtime partner, will cover the rent for the next three years. The move from its previous location in Harlem will allow Hot Bread “to focus our resources more directly on our programs and expansion, or, more plainly, to invest in breadwinners rather than rent,”

literacy to child care. There is also an entrepreneurship program, which provides a framework for participants to open their own small businesses, and many have done so. In more than a decade, the organization has helped nearly 300 program participants get jobs in the food industry, and it has supported 250 small businesses that developed through the entrepreneurship program. One of them is Nafissatou Bande, a bakery at Colson Patisserie in Brooklyn. Bande, who is from Burkina Faso, went through the Hot Bread Kitchen training program in 2016. When she first came to the United States, she ran into a catch-22: no one would hire her without any experience. Eventually, she took a job as a cashier, before hearing about the culinary program. “I wanted to learn something that would benefit me later,” she said. Equipped with culinary skills, she was able to find a work as a baker. When she had a baby and left that position, she said that Hot Bread Kitchen helped support her and later hired her at its in-house kitchen. By the time she was ready to apply for different jobs, she had enough experience that she received several offers, including the one at Colson, where she now

THE ORGANIZATION HAS HELPED MORE THAN 300 PARTICIPANTS GET JOBS said Leslie Abbey, the CEO. Abbey said the new space would allow Hot Bread Kitchen to work with 1,000 women and expand into the other four boroughs. At its core, Hot Bread Kitchen is a culinary training and job-placement program. Women, mostly immigrants and people of color, enroll in a short program to enhance skills and get help with job placement and other support, from financial

bakes bread and croissants that are considered some of the best in the city.

Building on trust Google and Chelsea Market have existing relationships with the nonprofit. Google has been both a donor and an employer for program graduates. The tech firm also used to purchase Hot Bread Kitchen’s baked ABBEY is now goods for its cafeteria. investing in It sponsored a kiosk in breadwinners Chelsea Market for rather than Hot Bread Kitchen the rent. participants to sell their wares. “We have been working with them to On a fast timeline, Google helped create a stronger partnership,” said Angela Pinsky, head of government turn the idea into a reality, Borok affairs and public policy for Google. said, an example of how the tech Conversations between Google firm was thinking creatively about and Hot Bread have continued, said its support of nonprofits. Now, with rent taken care of, Hot Abbey, who joined recently as CEO. Last year Google came to the orga- Bread Kitchen said it would be able nization and asked if it was again to expand its offering to more wominterested in the Chelsea Market en throughout the city. There are 18 stations for learning stall. At the same time, word was out in the Chelsea Market space, as well that Food Network was leaving its as an empty studio that will now test kitchen, said Kristine Borok, house some of the supplementary chief operations officer. “We said, programs, such as personal fi‘Wouldn’t it be great if we could nance. The old location had about 3,000 square feet for the culinary move in?’ ” she said.

BUCK ENNIS

BY CARA EISENPRESS

programs, in addition to a bakery that sold bread at markets and through wholesale.

Planning for expansion In addition, Abbey said that Hot Bread Kitchen would treat Chelsea Market as a hub, adding smaller spaces in the other four boroughs. That will help with outreach. That expansion comes because of the huge expense now taken off the table: paying for space. “We’re not paying rent in Chelsea!” said Borok. “We’re extremely grateful.” ■

HEALTH CARE

Gambling addiction helplines ramp up services as New York state crosses $1B in online sports betting

hen online sports betting became legal in New York state this month, sportsbooks recorded unprecedented volumes of bets placed, revenue and access. As betting firms entice users with aggressive advertising campaigns, sign-up bonuses and one-time “risk-free” bets, entities addressing gambling problems have underscored the need to invest in support systems. The state, which legalized online sports betting Jan. 8, has seen record-breaking activity. As of Jan. 23, New Yorkers placed more than $1.1 billion in bets, generating nearly $89 million in revenue for the sportsbooks and $45 million in tax revenue. Local helplines for problem gamblers have been busy. “We’ve seen an uptick in calls, and we assume that trend will continue,” said Brandy Richards, team leader of the Problem Gambling Resource Center's Northeast region. When Pennsylvania launched its

online sports betting program in 2019, helpline call volumes surged 285% within the first year, Richards said, adding, “I anticipate that trend of us, especially with the 24/7 accessibility of online sports-betting messaging.”

Risky business Sportsbooks such as Caesars and FanDuel have offered “risk-free” bets of up to $1,000, and matching deposits up to $1,500. Such digital exposure could influence a younger generation of new bettors and pose a threat to people recovering from their gambling addiction, Richards said. From Jan. 8 to 17, there were 1.2 million accounts opened for GeoComply, a location validator required to access sportsbooks, with 878,000 unique players. That's more than the number of active accounts in New Jersey and Pennsylvania combined during that time period, according to the Vancouver-based company. Of those accounts, nearly 771,000, or 88%, were new to online sports betting. The ease of access through a

BLOOMBERG

BY SHUAN SIM

smartphone app—combined with a cashless system of betting— makes it easier to lose track of the time and amount you're spending with online betting, compared with a traditional casino, Richards said. With demand for assistance already climbing, there’s a need to organize support resources, according to the New York Council on Problem Gambling, a nonprofit advocating for treatment for people with gambling addictions. The organization recommended to the state Office of Addiction Services and Supports at least $25 mil-

lion be dedicated annually to establishing support systems from this year through 2026. Key priorities this year, the organization said, are a stand-alone gambling helpline, an improved voluntary self-exclusion program, a credentialed clinical network for treating gambling addiction, peer support programs, 15 additional full-time staff members to oversee the programs, a problem gambling– specific inpatient treatment facility and campaigns to reduce the stigma around treating the addiction. Those programs could be funded with at least $6 million derived from sports betting tax revenue this year, the recommendations said.

High alert A spokesman for OASAS said the agency will be closely monitoring the impact of mobile sports betting and will continue to focus its efforts on prevention, treatment and recovery supports, adding that the New York State Gaming Commission will oversee regulations relating to sports betting advertising The state intends to use 1% of tax

imposed on mobile sports wagering for problem gambling education and treatment purposes, the OASAS spokesman said. The agency will also run a responsible play media campaign specific to mobile sports betting prior to the Super Bowl, and it will run through the NCAA Basketball championships. Additionally, OASAS will work with the state Education Department to educate teachers and staff on the risks of underage gambling, as well as develop publications for parents and families on problem gambling awareness and prevention, the spokesman added. Sports betting can exist healthily alongside the other gambling operations in the state, Richards said. “After all,” she said, “there are many people who know their limits when it comes to gambling.” What's key is elevating awareness of help options and destigmatizing treatment for problem gambling, she said. “It will take collective ownership to ensure safeguards are in place, from the individual to the gambling industry to the state,” she said. ■

FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 15

P015_CN_20220207.indd 15

2/3/22 1:30 PM

REAL ESTATE

BY EDDIE SMALL

onstruction in New York came back with a vengeance during the last quarter, with the number and size of new projects hitting highs not seen since the mid-2010s. Developers filed plans for 665 buildings during the fourth quarter of 2021, a 37% increase quarter over quarter and a 22% increase year over year, according to the latest construction pipeline report from the Real Estate Board of New York. This is the largest quarterly number of new project filings since the second quarter of 2016 and a 32% spike from the average of 503 projects per quarter that dates back to the beginning of 2008. The projects filed during the fourth quarter spanned about 31.7 million square feet overall, massive increases of 290% quarter over quarter and 180% year over year. This is the greatest amount of total square footage since the third quarter of 2014 and 173% higher than the historical average of about 11.6 million square feet. The huge spike in total square footage was because of the large

number of projects spanning more than 300,000 square feet. There were 26 such projects last quarter, which was also the greatest amount since the third quarter of 2014, according to the report. New project plans totaled about 54 million square feet for all of 2021, a 26.5% increase over 2020 and higher than the annual average since 2008 of about 46.3 million square feet. The total number of projects filed for the year was 1,914, a 10.5% increase over 2020 and comparable to activity in 2019.

Residential projects Plans for new residential projects saw a particularly dramatic spike last quarter. These developments included 24,834 residential units, a record dating back to the beginning of 2008 and almost 50% higher than the prior record from the third quarter of 2014, according to the report. The number is also a more than 300% increase quarter over quarter and a 240% increase year over year. Developers filed plans for 42,207 new residential units in the city throughout 2021, the highest total since 2014 and a 54% increase from

2020, according to the report. NUMBER of The need for buildings for more housing which developers in the city, filed plans in Q4 however, still far outpaces the amount of housing being built in the city, according to REBNY. Another report the organization recently commissioned found that New York needs 560,000 new homes by 2030 to keep pace with projected job and population growth, but the city’s development pipeline covers only about 14% of this need. “This significant quarterly increase in large-scale construction is creating good jobs and much-needed housing at a critical moment in the city’s path to full economic recovery,” REBNY President James Whelan said in a statement. “But we can’t take our eye off the ball— and we still have a long way to go toward meeting our city’s longterm needs.” The largest amount of residential units last quarter was in Brooklyn, which had 11,125 across 137 prop-

BLOOMBERG

Construction industry comes roaring back with record high project numbers to close out 2021 665

erties. This was the highest number of new residential units proposed for a borough since the first quarter of 2008. Brooklyn also had the highest number of new projects overall, at 206, followed very closely by Queens, at 203, the report said.

Big buildings The largest project in Manhattan last quarter was a 26-story mixeduse building at 1440 Amsterdam Ave. in West Harlem, spanning about 1.7 million square feet, and the largest in Queens was a 46-story

mixed-use building at 30-05 Queens Blvd. in Forest Hills, which was about 1.3 million square feet. Brooklyn’s largest project was a 22-story mixed-use building at 477 Smith St. in Carroll Gardens, spanning about 733,000 square feet, and the Bronx’s largest was a 17-story mixed-use building at 320 W. Fordham Road in University Heights, which was about 582,000 square feet. The largest project on Staten Island was a commercial storage facility at 1 Nassau Place that was about 332,000 square feet. ■

CRAIN’S NEW YORK BUSINESS 2022

HEALTH CARE LEADERS Nominate a leader in healthcare administration, clinics, research and testing, nursing and more. Honor their accomplishments and mentorship, published in Crain’s print and digital editions April 18.

NOMINATE NOW! Deadline is Feb. 25 Nominate at CrainsNewYork.com/NotableHCLeaders

16 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P016_CN_20220207.indd 16

2/3/22 4:26 PM

ECONOMY

What businesses should know about the new city law that will require salaries in job ads BY RYAN DEFFENBAUGH

WHAT ABOUT REMOTE WORK?

The City Council voted in favor of the legislation in December, and Mayor Eric Adams opted not to veto the bill before a deadline earlier this month. It is set to become part of city law on May 15. Companies with four employees or more that don't provide a “good faith” salary range in ROSENTHAL job listings could face fines. Former Councilwoman Helen Rosenthal, a Democrat who sponsored the bill, told Crain’s ahead of its passage that greater transparency could address pay inequality. Workers typically have little awareness of what their employer pays for similar roles. Business groups have pushed back, however, calling the bill overly broad and difficult to apply. Kathryn Wylde, president and CEO of the Partnership for New York City, told The Wall Street Journal that the business group plans to push the city to delay the law’s implementation.

The bill was authored in 2018, before Covid-19 brought a huge increase in jobs that are remote or hybrid (some days in the office, some days not). The existing standard for the Human Rights Law is that it applies to any job where the work is performed in the city. A local law barring employers from asking job applicants about their salary history, for example, has been applied to remote and hybrid positions. But will that be clear enough to avoid the headaches similar efforts have faced? A comparable law in Colorado led to residents being essentially blacklisted by employers for remote work, according to Melissa Camire, a partner in the New York office of employment law firm Fisher Phillips, who wrote an analysis of the bill. Rather than post the salary range for a remote job that could employ a Coloradan, as the state law required, some national employers opened up their remote job postings to residents of anywhere “except the state of Colorado.” While that practice "was subsequently declared to be illegal by the Colorado Department of Labor, it is unclear whether NYC officials want to walk down that same path," Camire wrote.

HOW WILL IT BE ENFORCED? The city’s Commission on Human Rights enforces such human rights laws, which include protection against employment discrimination. Last year the commission filed nearly 1,200 separate discrimination claims (840 related to employment) and collected a record $9.7 million in damages and civil penalties, according to its annual report. Alicia McCauley, a representative for the Commission on Human Rights, said the agency wants to work as a “partner with businessTHE NUMBER es” and provide a fair chance to act on violaof employmenttions before pursuing punitive measures, related such as fines. discrimination The commission will publish guidance and claims filed by a frequently-asked-questions post about the the city last year law closer to its effective date.

840

NEW YORK CITY COUNCIL

THE BACKGROUND

ISTOCK

AP PHOTO

big change is coming: New York City employers have until midMay to prepare for a local law that requires all job postings to include a salary range. The law could provide a boost for the cause of pay transparency in the United States, bringing salary disclosure to millions of private-sector jobs and some of the world’s largest companies. "This is a fairly seismic change," said Mark Goldstein, an employment lawyer with Reed Smith in Midtown. "I don't have that many clients, frankly, who are already putting the salary range in job postings —it is often dependent on a whole host of factors." The bill has prompted a flurry of calls from clients looking to better understand the rules, Goldstein said. His firm is among several that have published client notes about what to expect. Here is a guide to what we know so far about the law and its enforcement.

WHAT’S THE RANGE?

GOLDSTEIN

Employers are required under the law to provide good-faith estimates of the minimum and maximum salary for each job, but it does not give direction about setting a range. Goldstein said his office had heard from employers questioning that provision. How should they calculate the minimum and maximum salary when such matters are often negotiated? Also, how should employers post the ranges for sales and other commission-driven jobs? Those are questions, he said, that employers will seek clarity on as the law gets closer to taking effect.

HOW CAN EMPLOYERS PREPARE? Employers should begin reviewing salary ranges for all positions and start reworking job posting templates ahead of May 15, according to guidance from law firm Morgan Lewis. This is also an important time to audit existing pay structures. “At best . . . anomalies could lead to discontent and employee attrition once you must start including salary information on job listings,” Camire of Fisher Phillips wrote. "At worst, they could lead to an equal pay lawsuit if pay differentials appear to be based on a protected characteristic such as race or gender." Questions that businesses have about the law can be sent to Commission on Human Rights: policy@ cchr.nyc.gov. FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 17

P017_CN_20220207.indd 17

2/4/22 3:55 PM

2022 LIVE EVENTS

Apr. 6

Crain’s Power Breakfast

Jul. 13

Crain’s Power Breakfast

Apr. 27

Commercial Real Estate

Sept. 8

Best Places to Work

May 5

Crain’s Forum

Sept. 21

Crain’s Power Breakfast

May 11

Crain’s Power Breakfast

Nov. 3

Hall of Fame

Jun. 9

Fast 50 Awards

Nov. 9

Crain’s Power Breakfast

Jun. 16

Diversity & Inclusion Awards

Dec. 8

Crain’s Forum

Tickets: CrainsNewYork.com/Events

Questions:

Contact Crain’s New York Business Events: crainsevents@crainsnewyork.com

Sponsorship:

Contact Crain’s New York Sales Manager: Courtney.McCombs@crainsnewyork.com

* Live events are subject to change to virtual options dependent upon New York City’s public health guidelines and COVID risks. All in-person events will follow CDC recommended health and safety protocols.

CN020615.indd 1

2/3/22 4:17 PM

FROM PAGE 1

On the surface, with its long track record of social work and substantial budget, Project Renewal appears financially healthy. The nonprofit reported revenue of $98 million for the year ending June 2020, with $78 million coming from government grants. But today only an $8.5 million Paycheck Protection Program loan, together with a $5 million line of credit, has kept the operation afloat. “If we had not gotten a federal PPP loan, we would be in dire straits right now. None of the other sources would’ve prevented us from being out of cash,” said president and CEO Eric Rosenbaum. The delays have been a long-running problem. A 2018 report by former city Comptroller Scott Stringer’s office found that nearly 91% of contracts were submitted late by city agencies to his office for approval or registration. Stringer said half of those bills were six or more months old. Project Renewal cited the Department of Homeless Services and the Department of Health and Mental Hygiene as the two agencies primarily responsible for the $31 million owed from the city. Crain’s asked the agencies to confirm Project Renewal’s outstanding balance contentions, and as this story went to press spokespeople said they were still looking into it. Mayor Eric Adams and Comptroller Brad Lander have acknowledged the problem. But their main policy prescription so far is to study data from the city’s online contracting system, PassPort, to identify roadblocks in the contract registration process. Other solutions are focused on rooting out fraud.

to string out our own vendors.”

Fiscal pain flows downhill Among those left out to dry are independent arms of Project Renewal’s social service units. One, City Beet Kitchens, is a $7.4 million culinary arts training program with 55 employees. Since the early 1990s, it has trained people coming out of the city’s shelter system to become chefs and cooks. But as City Beet Kitchens waits for $2 million in delayed payments to other nonprofits they work with— including parent company Project Renewal—to trickle down into its coffers, the agency finds it increasingly difficult to pay its own vendors. “We deal with a couple of vendors who are large, so we can put them off a bit,” said Barbara Hughes, founder of City Beet Kitchens. “But for a small company like our bread company, where we spent $7,000 a week on bread, a few thousand dollars really matters to them.” Instead of managing her kitchen, Hughes said, she spends most of her day on the phone either haggling with the city for an update or holding off angry vendors demanding payment. “It’s a constant circle that we’re going around, and we never can quite get ahead,” she said.

Chronic problem The city’s inability to honor contracts in a timely manner goes back multiple administrations, longtime nonprofit executives say. “What we have is a system that’s been broken for a while now,” said Lisa Sorin, president and CEO of the Bronx Chamber of Commerce, a nonprofit that contracts with the city. “There’s a lack of communication between departments and agencies. Our contracts are floating somewhere between the Department of Small Business Services, [Department of Legal Services] or they haven’t touched the comptroller's office yet.” Sorin described a “frustrating” process. A nonprofit is typically given a city contract shortly after the fiscal year begins on July 1, with the expectation of carrying on the programs without funding until November or December. It’s a costly endeavor usually backstopped by the hope of having the contract entered into the system for billing by January—at the earliest. “Some nonprofits cannot afford to carry on the programs that long,” Sorin said. “We’re on the bigger side, and we’re struggling to get our payments and contracts moving. We can carry our own, but smaller nonprofits are just trying to do their jobs.” The delay can prove detrimental. In June the New York City Alliance Against Sexual Assault, a 20-year-old agency, abruptly dismissed its 23-person staff and shut down operations, leaving behind a cryptic message on its website. Reporting from Crain’s uncovered a liquidity crisis of nearly $2 million and admissions from board members that the nonprofit suspended operations because of “delayed reimbursements” from state and lo-

“I’M BANKROLLING THE CITY OF NEW YORK, AND THAT JUST DOESN’T SEEM FAIR” Lagging payments, which in Project Renewal’s case stretch as far back as fiscal 2019, are the crux of the matter, however, because the delays put an extra burden on organizations that provide care. City agencies contacted for this report in some cases said their records showed the bills paid in full. The gap between what the city says it owes, and what nonprofits argue they are owed, is likely because of delays by the city in processing, said Anat Gerstein, a representative for Project Renewal. She said contracts are sometimes not registered for months or a year after an agency has started to provide services. Project Renewal is required to pay employees every two weeks. To make this bottom line, Rosenbaum and his team must shift money around, hold off paying different businesses and find ways to make ends meet each month as they wait for city reimbursements. “If we’re not getting paid, one of the only ways we can survive from a cash standpoint is not paying the people we owe who are our vendors,” Rosenbaum said. “When we get strung out by the city, we have

A CITY BEET Kitchens manager shows where deferred maintenance is creating a mess.

cal entities. The lag in payments left the organization unable to satisfy future payroll obligations.

Essential employers The nonprofit community is an essential element of the city’s economy. It generated nearly $78 billion in economic activity last year and employs almost 20% of the workforce across the five boroughs, according to a recent op-ed penned by Adams and Lander. The new leaders formed a joint transition task force in December to address what Lander called “obscene delays in payments” to human services providers. “We’re already digesting quite a bit of information from focus groups. Getting that moving is a priority,” Lander said. “These are folks providing meals to homebound seniors and after-school programs. These nonprofits are often waiting a year, a year and a half to get paid for their work.” Sheena Wright, Adams’ deputy mayor of strategic initiatives, is the former CEO of powerhouse nonprofits Abyssinian Development Corp. and United Way of New York City. Wright and Lisa Flores, director of the mayor’s Office of City Contracts, will lead the task force. It has held three meetings and is expected to release recommendations in the weeks ahead.

Excessive stress, added cost But some nonprofits need results, not recommendations. They’re overextending themselves to provide necessary resources to at-risk populations. The Kingsbridge Heights Community Center in the Bronx is a collection of settlement houses operating since 1974, with 165 staff members and a budget of $11 million. Kingsbridge provides counseling for expectant mothers and early childhood education; children participate in after-school activities and leadership development, and high-schoolers take courses in college counseling. Payments owed from the city have grown to $550,000 and exceed the center’s payroll. Kingsbridge

BUCK ENNIS

PAYMENT

has resorted to taking out loans and dipping into its fundraising chest. “The delays force us to pay for interest rates on our line of credit,” said Margaret Della, CEO of the community center. “We’re paying fees that are not allowed to be reimbursed by the city out of fundraising dollars. The city bureaucracy is causing excessive stress on our systems.” Another settlement house, BronxWorks, is a $100 million multiple-service nonprofit founded in 1972. Through its work, South Bronx neighborhoods are provided food, shelter and education by a staff of more than 1,000 workers. Some 90% of its funding is backed by the city, and more than half of that comes from the Department of Homeless Services. BronxWorks has had to stretch itself thin to make up the $3.3 million owed and unpaid by the city since June 2020. “Staff need to be paid. Health insurance provider fees need to be paid. Pensions need to be paid,” said Eileen Torres, CEO of BronxWorks. “We need to make sure we keep up with all the benefits we promised, and we’ve laid out all these funds and can’t seem to get what’s owed to us from the city.” The city has pushed back on some of the claims. The mayor’s Office of Criminal Justice, which Della said serves the nonprofit’s trauma therapy program, said the amount invoiced for the city’s fiscal 2021 contract with Kingsbridge is $141,880 and has been paid in full. “There are currently no outstanding invoices from this provider,” said Camille Adolphe, a representative for the mayor’s Office of Criminal Justice. BronxWorks only recently submitted a request for $3.3 million in Covid expense amendments it contends is owed, said a spokesperson for the Department of Homeless Services, adding that BronxWorks has not expressed any challenges in receiving payment.

Byzantine process Another problem, Torres said, is that nonprofits are unable to learn

where payments stand before the contract enters the comptroller’s office for registration because the city does not provide a clear timeline. Gordon Miller, CFO for BronxWorks, said that after a contract is registered with the comptroller, it goes through another process of reregistration with the city agency in charge of funding the work. The budgeting for this contract needs to be approved or revised by both the city Finance Department and the Office of Management and Budget. Even if the contract is approved and enters the city’s accelerator system, the billing process has yet to begin, as that requires another round of review and approval from the funding agency before the fiscal side is broken down. “It’s really when you submit a bill for a budget, you don’t know where it is,” Miller said. “You have to contact several people to find where the budget for your bill even sits.”

‘The city’s bankers’ Nonprofits are not the only ones hurt. Private business owners also find themselves footing bills they never expected to pay. Mike Berman is the CEO of Day and Night, a New Hyde Park–based repair service specializing in refrigeration, heating, ventilation and air conditioning, and kitchens. Berman contracts with large and small clients across the metropolitan area, including Project Renewal, and finds his nonprofit clients the hardest to invoice. “Nonprofits have been the slowest, most difficult to get funds [from] out of all of them,” he said. Berman is absolutely committed to his nonprofit clients, as he recognizes the value they provide to needy populations, but he said he’s also grown increasingly frustrated with their delayed payments. “We are the city’s bankers and that just doesn’t seem to be fair,” Berman said. “The city of New York is supposed to provide the cash flow to meet these obligations, but I’m bankrolling the city of New York. I’m covering my own expenses and not getting paid for it.” ■

FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 19

P019_CN_20220207.indd 19

2/4/22 3:39 PM

CLASSIFIEDS CLASSIFIEDS INVITATION TO BID

Invitation to Prequalify and to Bid Rehabilitation and Flood Mitigation of the New York Aquarium, Brooklyn, NY: Turner Construction Company, an EEO Employer, is currently soliciting bids for the Rehabilitation and Flood Mitigation of the New York Aquarium from subcontractors and vendors for the following bid packages: BP #057– Existing Conditions Scan to BIM Services (Bid, Payment & Performance Bond Required) BP #053 – Security/Fire Watch Services (Bid, Payment & Performance Bond Required) BP #058 – Temporary Sanitary Facilities (Bid, Payment & Performance Bond Required) BP #047 – Tile Flooring (Bid, Payment & Performance Bond Required) BP #049 – Mirrors & Glazing (Bid, Payment & Performance Bond Required) Only bids responsive to the entire scope of work will be considered and, to be successful, bidders must be prequalified by Turner. Certified M/WBE and Small Business (13 CFR part 121) companies are encouraged to submit. In order to receive the bid packages, potential bidders either (1) must initiate the prequalification process by submitting a Subcontractor/Vendor Prequalification Statement to Turner, or (2) must be prequalified based on a prior submission to Turner. (Note: Prior prequalification submissions that remain current will be considered as previously submitted or may be updated at this time.) All bidders must be prequalified by the bid deadline: March 7th, 2022 and initial submission of a prequalification statement not later than March 7th, 2022 is strongly encouraged. All bidders must have an acceptable EMR, and will be subject to government regulations such as 44 CFR and Federal Executive Order 11246. Successful bidders will be required to use LCP Tracker compliance verification software. Note that while this is a New York City prevailing wage project, union affiliation is not required for BP #057, #053, #058, #0447 or #049. A Webcast about the above Bid Package/s will be held on February 11, 2022. Attendance is optional for all; the Webcast is designed to assist potential M/WBE subcontractors/vendors. Link: Please join this meeting from your computer, tablet or smartphone.

https://teams.microsoft.com/l/meetupjoin/19%3ameeting_NDJmNmIxYjktODNiOC00NjZjLTllZDMtZjhhMDdjNDUwNmM5%40thread.v2/0?context=%7b%22Tid%22%3 a%2220e27700-b670-4553-a27c-d8e2583b3289%22%2c%22Oid%22%3a%22732a90ce-24b7-42eb-bf78-d638e2a629ac%22%7d

To obtain further information about contracting opportunities and/or the prequalification package and bid solicitation package/s, please contact Dolores Wooden, lspangel@tcco.com 646-842-1659.

Advertising Section Advertising Section

To place a classified ad, Call 212-210-0189 Contact Claudia Hippel at 312-659-0076 or email: claudia.hippel@crain.com or Email: classifieds@crainsnewyork.com

POSITION AVAILABLE Associate (Citadel Americas Services LLC – New York, NY); Mult pos avail: Conduct differentiated, bottom-up fundamental fin res & analysis of companies, bus models & industries. F/T. Reqs a Bach degree (or foreign equiv) in Fin, Econ, Engin, CS or a rel field. Edu, train, or exp must include the follow’g: perform’g sell-side equity res, invstmnt banking, or invstmnt mngmnt; maintain’g detailed income statement models & relevant market data spreadsheets in MS Excel or sim; build’g, assess’g & manipulat’g models & communicat’g them to internal mngmnt & cross-functional stakeholders; analyz’g info in SEC docs, earn’gs transcripts & sell side res reports; conduct’g res projects that examine industry growth & competitive dynamics, includ’g regulatory & tax dvlpmnts; &, conduct’g meet’gs & phone calls to communicate with senior management of companies under coverage. Resumes: citadelrecruitment@citadel.com JobID: 6109217.

PUBLIC & LEGAL NOTICES

Notice of Qualification of J26 LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/02/21. Office location: NY County. LLC formed in Delaware (DE) on 06/26/20. 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, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

Notice of Formation of 136 WINCHESTER LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/06/21. Office location: NY County. Princ. office of LLC: 98 Anderson Rd., Kent, CT 06757. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, Attn: Lewis Hart at the princ. office of the LLC. Purpose: To purchase, own and sell real estate in New York.

The date for the virtual public opening at the Turner Construction Company office located at 375 Hudson Street, New York, New York, is March 8th, 2022 9 AM Link: Please join this opening meeting from your computer, tablet or smartphone.

https://teams.microsoft.com/l/meetupjoin/19%3ameeting_MDI0Mzk3MWUtYmE0Mi00Y2MxLTg0ZmQtYWIyYWMyNjgwZjli%40thread.v2/0?context=%7b %22Tid%22%3a%2220e27700-b670-4553-a27c-d8e2583b3289%22%2c%22Oid%22%3a%22732a90ce-24b7-42ebbf78-d638e2a629ac%22%7d

INVITATION TO BID

Shawmut Design and Construction on behalf of our client is currently soliciting sealed bids for furnish and installation of security related enhancements(eg cameras, access control, alarms,etc). The selection criteria will be based on knowledge of surveillance and security, adherence to projected work schedule, prior experience, references, and cost. Only bids responsive to the entire scope will be considered and to be successful the bidders must be pre-qualified by Shawmut Design and Construction. Certified MWBE and Small businesses are encouraged to submit. Potential bidders can procure instructions to bidders, bid documents, specifications, project schedule and pre-qualification paperwork by contacting us at pdoni@shawmut.com Bids will be accepted until Friday, February 21st 2022 at 5pm. The bid submission details will be included in the instructions to bidders.

A nonprofit organization in Far Rockaway is seeking sealed bids for sales and installation of security related enhancements. The project Perimeter Fencing and Security Personnel. The election criteria will be based on knowledge of surveillance and security, adherence to work schedule, prior experience, references and cost. Specifications and bid requirements can be obtained by contacting us at hsgfarrockaway@gmail.com. All interested firms will be required to sign for the proposal documents and provide primary contact, telephone and email address. Bids will be accepted until February 28th and work is to commence by March 1, 2022 and completed by August 31st, 2022.

PUBLIC & LEGAL NOTICES Notice of Formation of CAPE GRAVITY, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 11/19/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Brian Orlando, 350 Bleecker St., Apt. 6X, NY, NY 10014, regd. agent upon whom and at which process may be served. Purpose: Any lawful activity.

ESRT MV Swap Victory Owner, L.L.C. Authority filed SSNY 11/29/21. Office: NY Co. LLC formed DE 9/28/21. Exists in DE: c/o Corporation Service Company, 251 Little Falls Dr., Wilmington, DE 19808. SSNY designated agent upon whom process against the LLC may be served & mail to: c/o Corporation Service Company, 80 State St., Albany, NY 12207. Cert of Formation Filed: Jeffrey W. Bullock, DE Secy. of State, Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901. General Purpose.

PUBLIC & LEGAL NOTICES

ESRT Victory Owner, L.L.C. Authority filed SSNY 11/29/21. Office: NY Co. LLC formed DE 9/28/21. Exists in DE: c/o Corporation Service Company, 251 Little Falls Dr., Wilmington, DE 19808. SSNY designated agent upon whom process against the LLC may be served & mail to: c/o Corporation Service Company, 80 State St., Albany, NY 12207. Cert of Formation Filed: Jeffrey W. Bullock, DE Secy. of State, Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901. General Purpose.

Notice of formation of Limited Liability Company. Name: Nathan Galinsky Apartments Development LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on December 6, 2021. NY office location: New York County. The SSNY has been designated as agent of the LLC upon whom process against it may be served. The SSNY shall mail a copy of any process to Nathan Galinsky Apartments Development LLC, 641 Lexington Avenue, 15th Floor, New York, NY 10022. Purpose/character of LLC is to engage in any lawful act or activity.

ESRT MV Swap Chesapeake Owner, L.L.C. Authority filed SSNY 11/29/21. Office: NY Co. LLC formed DE 9/28/21. Exists in DE: c/o Corporation Service Company, 251 Little Falls Dr., Wilmington, DE 19808. SSNY designated agent upon whom process against the LLC may be served & mail to: c/o Corporation Service Company, 80 State St., Albany, NY 12207. Cert of Formation Filed: Jeffrey W. Bullock, DE Secy. of State, Townsend Bldg., 401 Federal St., Ste. 3, Dover, DE 19901. General Purpose.

Notice of Qualification of 400 CAPITAL ASSET BASED ONSHORE TERM FUND III L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/30/21. Office location: NY County. LP formed in Delaware (DE) on 05/18/21. Princ. office of LP: 510 Madison Ave., 17th Fl., NY, NY 10022. Duration of LP is Perpetual. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Name and addr. of each general partner are available from SSNY. DE addr. of LP: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of LP filed with Secy. of State of the State of DE, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Notice of Formation of CPG CSA PRESERVATION PARTNERS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/08/21. Office location: NY County. Princ. office of LLC: 116 E. 27th St., 11th Fl., NY, NY 10016. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207. Purpose: Real estate.

Notice of Qualification of CITY WINERY GRAND CENTRAL, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/13/21. Office location: NY County. LLC formed in Delaware (DE) on 11/08/21. Princ. office of LLC: 25 11th Ave., 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. (CSC), 80 State St., Albany, NY 12207. 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., Dover, DE 19901. Purpose: Any lawful activity.

Notice of formation of Konisan (NY), LLC, file with SOS of NY on 12/13/21. Loc in NY County, designed as agent upon whom process may be served SSNY, shall mail process to 600 Mamaroneck Ave #400, Harrison, NY 10528. Purpose: any lawful activity.

Notice of Qualification of 83LEONIS LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/07/22. Office location: NY County. LLC formed in Delaware (DE) on 11/29/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Ajaypal Singh Banga, 875 5th Ave., Apt. 19A, NY, NY 10065. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

20 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P020_P021_CN_020722.indd 21

2/2/22 5:04 PM

CLASSIFIEDS CLASSIFIEDS

Advertising Section Advertising Section

To place a classified ad, Call 212-210-0189 Contact Claudia Hippel at 312-659-0076 or email: claudia.hippel@crain.com or Email: classifieds@crainsnewyork.com

PUBLIC & LEGAL NOTICES Notice of formation of Limited Liability Company. Name: Nathan Galinsky Apartments Preservation Management LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on December 6, 2021. NY office location: New York County. The SSNY has been designated as agent of the LLC upon whom process against it may be served. The SSNY shall mail a copy of any process to Nathan Galinsky Apartments Preservation Management LLC, 641 Lexington Avenue, 15th Floor, New York, NY 10022. Purpose/character of LLC is to engage in any lawful act or activity.

Notice of Qualification of Fulton RE Holdings LLC. Authority filed with Secy. of State of NY (SSNY) on 12/14/21. Office location: NY County. LLC formed in Delaware (DE) on 12/01/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Ilyse Dolgenas, Esq., Withers Bergman LLP, 430 Park Ave., 10th Fl., NY, NY 10022. Address to be maintained in DE: 1209 Orange St., Wilmington, DE 19801. Arts of Org. filed with the DE Secy. of State, Division of Corporations, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities.

SUBMIT YOUR BUSINESS CLASSIFIEDS TODAY Get your message in front of New York’s influential business community with Crain’s New YorkBusiness Classified Ads Advertising Section

Contact Claudia Hippel at 312-659-0076 or email: claudia.hippel@crain.com

Notice of Qualification of RADIO RESTAURANT, LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/27/21. Office location: NY County. LLC formed in Delaware (DE) on 12/02/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Youngwoo & Associates, LLC, 545 W. 25th St., 8th Fl., NY, NY 10001. DE addr. of LLC: c/o Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Notice of Application for Authority of FLLC: Tinicum Venture Partners I GP LLC Application for Authority of FLLC filed with SSNY: 12/10/2021. The jurisdiction of the co. is DE, it was formed on 11/22/2021. Office location in NYS, NY County is 800 3rd Ave. 40th flr, NY, NY 10022. SSNY desig. as agent of the FLLC upon whom process against it may be served. SSNY can mail process to c/o Tin. Enter. Inc. 990 Stewart Ave, Ste 580, Garden City, NY 11530. The address of the principal office of the Co. in DE is 1209 ORANGE STREET, WILMINGTON, DE 19801. Name & address of the auth. officer in DE where a copy of the Articles of Organization of the FLLC is filed at SOS JEFFREY W. BULLOCK, 401 FEDERAL STREET, STE 4 DOVER, DE 19901. Purpose of company is any lawful activity.

Notice of Qualification of ESNY BEACON LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/05/22. Office location: NY County. LLC formed in Florida (FL) on 08/29/19. Princ. office and FL addr. of LLC is: 900 5th Ave. South, Ste. 202, Naples, FL 34102. 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. Cert. of Form. filed with FL Secy. of State, 500 S. Bronough St., Tallahassee, FL 32399. Purpose: Investments for profit of a general nature, including real estate, land, closely held business entities, and any other lawful business activity allowed by law.

Notice of formation of Limited Liability Company. Name: Nathan Galinsky Apartments Preservation LLC (“LLC”). Articles of Organization filed with the Secretary of State of the State of New York (“SSNY”) on December 6, 2021. NY office location: New York County. The SSNY has been designated as agent of the LLC upon whom process against it may be served. The SSNY shall mail a copy of any process to Nathan Galinsky Apartments Preservation LLC, 641 Lexington Avenue, 15th Floor, New York, NY 10022. Purpose/character of LLC is to engage in any lawful act or activity.

Notice of Qualification of 400 CAPITAL JSIF IV GP LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/30/21. Office location: NY County. LLC formed in Delaware (DE) on 06/11/21. Princ. office of LLC: 510 Madison Ave., 17th Fl., NY, NY 10022. 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 of the State of DE, 401 Federal St., Dover, DE 19901. Purpose: Any lawful activity.

Notice of Qualification of DERBY BLISS 68, LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/14/22. Office location: NY County. LLC formed in Delaware (DE) on 11/24/21. Princ. office of LLC: 41 Madison Ave., 40th Fl., NY, NY 10010. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., Dover, DE 19901. Purpose: Investing.

Notice of formation of Limited Liability Company name: Walker 89, LLC Art. Of Org. Filed Sec. of State of NY 05/19/2016. Off. Loc.: Richmond Co. SSNY designated as agent upon whom process against it may be served. SSNY to mail copy of process to The LLC, 209 Granite Ave Staten Island NY. Purpose: Any lawful act or activity.

Notice of Formation of Gomez Personal Custom Prints LLC. Arts of Org filed with Secy of State of NY (SSNY) on 10/10/21. Office location: NY County. SSNY designated as agent upon whom process may be served and shall mail copy of process against LLC to 429 Orchard St, Englewood, NJ 07631. R/A: NY Registered Agent LLC, 90 State St, Ste 700, Ofc 40, Albany, NY 12207. Purpose: any lawful act.

Notice of Formation of CLAMPETT PHYSICAL THERAPY (NY), PLLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 12/06/21. Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: C T Corporation System, 28 Liberty St., NY, NY 10005. Purpose: to practice the profession of Physical Therapy.

NOTICE OF FORMATION OF Eugene Business Consulting, LLC. Articles of Organization filed with the Secretary of State of NY (SSNY) on 09/27/2021. 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: 8711 92nd Street, Woodhaven NY 11421. The principal business address of the LLC is: 8711 92nd Street, Woodhaven NY 11421. Purpose: any lawful act or activity.

Notice of Qualification of Impactive Solutions, LLC. Authority filed with Secy. of State of NY (SSNY) on 12/14/21. Office location: NY County. LLC formed in Georgia (GA) on 02/09/18. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: Registered Agent Solutions, Inc., 99 Washington Ave. Ste. 1008, Albany, NY 12260. Principal office address: 301 E Lamar St #6, McKinney, TX 75069. Arts of Org. filed with the Secy. of State, State of GA Secy. of State Corporate Division, 313 West Tower, 2 Martin Luther King, Jr. Dr., Atlanta, GA 30334-1530. Purpose: any lawful activities.

Notice of formation of Limited Liability Company name: Walker 5, LLC Art. Of Org. Filed Sec. of State of NY 06/07/2017. Off. Loc.: Richmond Co. SSNY designated as agent upon whom process against it may be served. SSNY to mail copy of process to The LLC, 209 Granite Ave Staten Island NY. Purpose: Any lawful act or activity.

Off The Rip LLC Arts. of org. filed with NY Secy. of State (SSNY) on 9/16/20. Office location: NY County. SSNY designated as agent of LLC upon whom process may be served. SSNY shall mail process to:105 West 125th Street #1048 NY, NY 10027. Purpose: any lawful activity.

NOTICE OF FORMATION OF ANNA WEISS, P.L.L.C. Arts. of Org. filed with Secy of State of NY (SSNY) on 2/7/19. Office: NY County. SSNY designated as agent upon whom process may be served. SSNY shall mail copy of process against PLLC to 200 Rector Pl 12B, NY, NY 10280. Purpose: Any lawful act.

Notice of Qualification of YONKERS PORTFOLIO MEMBER LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/22/21. Office location: NY County. LLC formed in Delaware (DE) on 05/13/21. Princ. office of LLC: 116 E. 27th St., 11th Fl., NY, NY 10016. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilimington, DE 19808. Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Real estate owner.

Notice of Qualification of DOUP PARTNERS LLC. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 01/13/22. Office location: NY County. LLC formed in Delaware (DE) on 09/17/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co., 80 State St., Albany, NY 12207-2543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., Ste. 3, Dover, DE 19901. Purpose: Any lawful activity. Notice of Qualification of KINOKO LOGISTICS, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 12/02/21. Office location: NY County. LLC formed in Delaware (DE) on 02/04/14. Princ. office of LLC: 100 Ave. of the Americas, 16th Fl., NY, NY 10013. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the princ. office of the LLC. DE addr. of LLC: c/o Corporation Service Co., 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, John G. Townsend Bldg., 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity.

FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 21

P020_P021_CN_020722.indd 22

2/2/22 5:04 PM

FROM PAGE 3

the community be a part of the exhibit before it comes out helps us enforce that culture,” said Letti Campo, development manager at MOFAD. The reaction was big: MOFAD raised more than $150,000 in three weeks. Supporters were eager to become a part of the exhibit, Campo said.

Rethinking the plan The exhibit was originally set to open April 3, 2020. Its centerpiece is the Legacy Quilt, 400 handmade blocks that tell the story of African American luminaries in the world of food. They include Edna Lewis, a stalwart of the farm-to-table movement, and Leah Chase, who ran Dooky Chase in New Orleans, which became a gathering spot for civil rights activists. In addition, the test kitchen from Chicago-based Ebony magazine has been re-created. A “movement table” lets guests experience the migration of the African diaspora through an interactive virtualreality meal. In early March 2020, the MOFAD team pushed back the opening date as news of the novel coronavirus arrived in New York. Because of the Kickstarter campaign, the exhibit coordinators were able to stay in contact with backers. They sent out some of the

rewards, such as block prints from the quilt. Many of the artifacts already set up at the Africa Center went back into climate-controlled storage, said Parvizi, who joined MOFAD about a year ago. During the hiatus, MOFAD created some pop-up events related to the exhibit, such as oyster tasting inspired by the Black oyster farmers of Staten Island, one of the New York groups that show up in “African/American.” At one point, the oyster farmers were among the wealthiest Black communities, and they helped to fund the Underground Railroad, Parvizi said. Other aspects of the exhibit were rethought. Because Harris is a scholar, many of the exhibit’s panels were text-heavy, Parvizi said, as Harris tried to convey a great deal of history in a small space. As the team considered the layout through the lens of a healthier Covid-era air flow, it realized that the long blocks of text might lead to overcrowding as groups lingered to read. “We cut out about 30% of the text,” Parvizi said. Black Lives Matter public interest gave Harris a chance to share her work in other venues, including through the Netflix documentary, which debuted last year.

Shoebox lunch Originally, food tastings were slated to be part of the museum program, with visitors gathering around the table to share meals

COURTESY OF HARLEM NEEDLE ARTS AND ADRIAN FRANKS.

EXHIBIT

LEGACY QUILT: A square featuring Thomas Downing, who built a city business around oysters

made by Black chefs. “That’s a tool we had taken away from us,” Parvizi said. Now guests can purchase a “shoebox lunch,” a meal inspired by the lunches Black men ate when they headed north from the segre-

gated South. They knew they would not be served at restaurants along the way. The original intent was that guests could take their shoebox lunches and eat at communal tables. Now the meals are to-go—as

they were during the Jim Crow era. After the long hiatus, ticket sales began to trickle in last week, as the long-planned exhibit becomes reality. “We are giving people a taste of the story,” Parvizi said. ■

Lead the Conversation

Spotlight your expertise and elevate your company

ROUNDTABLE DISCUSSIONS Interested in participating? Email: Sophia.Juarez@crainsnewyork.com

2022 Roundtable themes: • • • • • • •

22 | CRAIN’S NEW YORK BUSINESS | FEBRUARY 7, 2022

P022_CN_20220207.indd 22

2/4/22 3:38 PM

GOTHAM GIGS

BUCK ENNIS

FIREMAN at Trattoria Dell’Arte, where some of his art is displayed

SHELLY FIREMAN BORN Belmont, the Bronx LIVES Fireman splits his time between Bedford in Westchester County, Lincoln Square in Manhattan and Camaiore, Italy. EDUCATION Bachelor’s in marketing, Hartwick College FAMILY LIFE Fireman and his wife, Marilyn, have one son, John. BROADWAY BOUND He has multiple restaurants in the Times Square area and said Broadway show openings can provide a big bump for them. “We had a boost in business when Mrs. Doubtfire opened,” he said, “and then it closed.” TRIAL AND ERROR One piece of career advice from the longtime businessman is to make a list of the different things you think could be interesting to pursue. “Write down 20 things you might like to do,” he said. “Once you do them, you may not like them.”

Restaurant vet is hungry for more Fireman Hospitality chief has two sites on the way, about four in the works BY EDDIE SMALL

hen Shelly Fireman was trying to open a restaurant near Lincoln Center in the mid-1970s, he came up with a simple plan to make it happen: get to the building before the landlord in the morning and repeat. “It took a year to convince the landlord to allow me to go into the building,” he said. “He showed up at 8:30 in the morning. I was there at a quarter to eight for one year.” Fireman’s efforts eventually resulted in the Italian restaurant Café Fiorello, which remains a Manhattan staple to this day. It is one of seven restaurants in the city for the Fireman Hospitality Group— founded in 1974, when Café Fiorello opened—and has held up reasonably well amid the pandemic’s challenging circumstances. And despite the problems the pandemic has caused for the local

restaurant industry, Fireman, president of the company, said he is still looking to expand. The hospitality magnate plans to open a Brooklyn Delicatessen in Times Square, at 1501 Broadway—the Paramount Building—this summer, and his 502-employee company plans to open a Brooklyn Diner at LaGuardia Airport in the spring. The firm is also discussing potential new locations with about four other New York landlords, he said, but those talks are still relatively informal. “We’re thinking positively because it’s better than sitting around sucking your thumb,” said Fireman. “So, do we believe in the city of New York? Yes. Can we hang in? We’re trying hard.” Fireman grew up in a family of trained cooks on his mother’s side but still describes his entry into the restaurant business as a total accident. He was hanging out with some friends in Greenwich Village in the 1960s, and they started

talking about trying to make bagels a trendier thing to eat. He thought the idea was worth pursuing and spent a few months going to the library to study all the books he could find about the restaurant business. He ultimately opened Hip Bagel on MacDougal Street in 1963. “I stupidly sold it, but it was very successful. It was great,” he said. “Maybe someday I’ll bring it back. “By the way, it may have been the wrong approach,” Fireman added, referring to the time he spent learning about eateries at the library. “Maybe I should have gotten a job in a restaurant.” In addition to being a restaurateur, Fireman is a sculptor. He will sometimes combine the two by putting his sculptures in his restaurants, including Trattoria Dell’Arte—but only if they’re a good fit. “I make the sculptures for myself,” he said. “I put them in the restaurant if it’s apropos. I don’t force them.” ■

“DO WE BELIEVE IN THE CITY OF NEW YORK? YES. CAN WE HANG IN? WE’RE TRYING HARD”

FEBRUARY 7, 2022 | CRAIN’S NEW YORK BUSINESS | 23

P023_CN_20220207.indd 23

2/4/22 3:52 PM

NOMINATION

PROGRAMS

2021 identify the best of the best in New York City business by submitting yourself or a YOU can help Crain’s colleague for the chance to be featured in our hand-selected editorial lists, published in print and online.

Deadline to nominate: February 25 Published: June 20

2021 2022

Deadline to nominate: March 18 Published: June 13

Deadline to nominate: July 1 Published: November 7

2022

Nominate at CrainsNewYork.com/nominations

CN020611.indd 1

2/3/22 4:49 PM