Crain's New York Business

ASKED & ANSWERED: Merck innovation fund chief screens ‘next horizon’ ventures PAGE 6

CRAINSNEWYORK.COM

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CHASING GIANTS: Named for Ness monster, firm rewards rare wellness. PAGE 3

JUNE 27, 2022

SCOTUS

New York responds to seismic rulings

SUBWAY EXPANSION

FREE RIDE

The Q subway extension boosted nearby apartment values. Tax proceeds from the gains could help fund the next phase.

BY CRAIN’S STAFF

Abortion access Millions of people across the country will lose their legal right to abortion after the Supreme Court voted to overturn the 1973 Roe v.

Wade decision on Friday.

While 26 states are likely to ban almost all abortions, New York lawmakers and nonprofits have been developing new initiatives to lower barriers for abortion services for people in and out of the state, sparked by the leaked draft of the ruling in May. Assemblywoman Jessica González-Rojas of Queens and colleagues are working on legislation to establish an abortion access fund that New Yorkers can contribute to via their income tax. Meanwhile, nonprofits are ramping up efforts to help people from states where abortion is outlawed to travel to New York and receive services here.

Page 18

MTA is acquiring properties for phase 2 as congestion pricing stalls.

Page 17

Concealed carry

BUCK ENNIS

A day earlier, the Supreme Court overturned a century-old New York law that required residents to show “proper cause” to get a license to carry a concealed handgun.

In response, Mayor Eric Adams said his administration will review how the city defines “sensitive locations” where carrying a gun is banned, and strengthen the application process to get a carry license.

Adams recently told Crain’s that he is assembling a national working group to examine where cities can create no-carry zones where concealed carry still would be restricted, even after licensing approval.

“This decision may have opened a river feeding the sea of gun violence, but we will do everything we can to dam it,” Adams said. ■ Read our full coverage at CrainsNewYork.com.

NEWSPAPER

VOL. 38, NO. 25

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GOTHAM GIGS

THE LIST

GAY OWNER DISHES UP KORMA AND INCLUSION

Largest Architecture Firms

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6/24/22 4:57 PM

HEALTH CARE

BY MAYA KAUFMAN

F

or as long as eight years, some pregnant patients at Weill Cornell Medicine’s OB/ GYN practice received a letter warning them against preparing birth plans, the term for a list of preferences for the labor and delivery process.

Now the health care organization will stop disseminating the letter, which it said had been “erroneously placed” in patients’ information packets. The announcement earlier this month came directly after Bronx-based Ashé Birthing Services posted a copy on Instagram, drawing outrage from midwives, doulas and other birth workers.

“As your physicians, we feel that birth plans can be a detriment to our relationship,” the letter said, later adding, “We feel that the use of birth plans too frequently sets up unrealistic expectations and conditions for potential conflict.”

The letter also said that “giving our patients the best of care” may involve such procedures as episiotomies, which are incisions made at the opening of the vagina during childbirth. Research indicates the surgery should be used sparingly,

because it may increase the risk of tears and have long-term complications. The American College of Obstetricians and Gynecologists has recommended against its routine use dating back to 2006.

Weill Cornell Medicine spokeswoman Sarah Smith told Crain’s that the letter was originally drafted by a physician in 2014, who was dismissed sometime that year; Smith said specific information was not immediately available last Monday because of the holiday.

“Each doctor works individually with their patients to create a personal birth plan,” Smith said in a statement. “This letter does not represent our approach to patient care.”

Smith said the letter was not authored by the physicians whose names were appended to the version posted online. Crain’s reached out to all three providers individually with a request for comment; two did not respond before publication.

One of the three, Dr. Allison Boester said in an emailed statement that she did not write the letter and that it was old and “completely counter to how I care for my patients.

“In general, we review new pieces

to add to the information package.

It’s expansive, so it wasn’t our process to sort through the entire package,” Boester said. “Now we will review the entire set to make sure it’s current and reflects our collaborative approach. I hope we can repair the trust with patients because this letter is not how we practice.”

A critical tool Emilie Rodriguez, who works as a doula with Ashé Birthing Services and posted the letter online, said she helps her clients compile birth plans to help them feel empowered during the process.

Birth plans include preferences for labor, pain management and delivery. Rodriguez said the expectant patient might express a desire to walk around during labor or ask not to get an epidural. Birth plans may also set specific boundaries, which can help a survivor of sexual assault avoid retraumatization.

“People have autonomy, and they want autonomy over their birth experience,” Rodriguez said.

After hearing about the letter from multiple clients over time, Rodriguez said, she decided to share it publicly in the hopes of eliciting change. Historically, obstetricians

have not been trained to obtain informed consent from their patients, she said. Birth plans empower patients to start conversations with and ask questions of their providers, but Rodriguez said the culture among physicians has to change too.

“We have to put on this crazy armor every time we go into most hospitals to advocate for our clients, especially those that are Black and brown,” she said.

Dr. Laura Riley, chair of the department of obstetrics and gynecology at Weill Cornell Medicine, said New York-Presbyterian has for months been working on a birth plan template for patients who deliver at any of the system’s hospitals. She expects it will be rolled out within the next six months.

Riley said she had never seen the letter before, because it seemed to be distributed only in the Upper East Side office of the three obstetricians named on it; Weill Cornell Medicine has 29 OB/GYNs across various practices in the city.

“I was disgusted by it,” she said of the letter.

Riley said physicians need to engage in shared decision-making with patients, recognizing that

GETTY IMAGES

Weill Cornell says it unknowingly advised patients against preparing birth plans some have strong preferences for their labor and delivery.

Asked whether the practice has a policy of obtaining informed consent during labor and delivery, Riley said there is always time for providers to tell patients what they are doing and get input.

Riley said the practice’s current initiatives include implicit bias training and the rollout of condition-specific safety bundles, which she characterized as multidisciplinary checklists to standardize clinicians’ response to an emergency such as hemorrhage or sepsis.

She also noted research that shows episiotomies are often unnecessary and said her department is working to get its episiotomy rate as low as possible.

Weill Cornell practitioners handled about 960 deliveries last year at New York-Presbyterian/Weill Cornell Medical Center.

Rodriguez framed the moment as an invitation for change, saying that many hospitals in the city perpetuate a culture in which the patients giving birth are not heard or taken seriously.

“We’re saying this should be a conversation,” she said, “and the door should be open.” ■

DETAILS Time: 9 to 11 a.m.

Address: 450 E. 29th St. Tickets: CrainsNewYork.com/crypto

RAT SIGHTINGS in 2021, a 54% uptick from 2020. There have already been 12K sightings in 2022.

CREATED WITH DATAWRAPPER

IN 2021, RODENT SIGHTINGS WERE AT A TEN-YEAR HIGH ACROSS THE CITY. 2022 IS ON PACE TO REACH A SIMILAR HEIGHT 25,012 16,262

16,808

20K

17,353

Number of rat sightings

30K

12,308

RATS SPOTTED in Brooklyn so far in 2022, the highest of the boroughs.

SOURCE: 311

19,152

4.8K

Brooklyn 4,773

17,230

DECREASE in rodent inspections from 2019-2020, when the city paused inspections due to the pandemic.

Queens 1,753

Staten Island 325

12,617

69%

The Bronx 1,986

Manhattan 3,469

15,286

25K

SO FAR IN 2022, THE MOST RAT SIGHTINGS HAVE BEEN ON THE UPPER WEST SIDE AND CENTRAL BROOKLYN

10,739

New York has a once-in-a-lifetime opportunity to become the epicenter of the fast-growing digital assets space.

At Crain’s cryptocurrency breakfast event, featured speaker Adrienne Harris, superintendent of the state Department of Financial Services, will touch on what the new administration means for the expansion of crypto in New York and how the city and the state can promote a new crypto economy. After her remarks, a sponsored panel discussion will look at what politicians and leaders in business need to do to attract more crypto and blockchain companies to New York. The role private market investors play in the success of crypto startups also will be examined.

T

he number of rats scampering across city sidewalks has soared after two years of neglected rodent inspections from the Department of Health.

In response to the uptick, a group of council members have introduced legislation to mitigate rats specifically within New York City Housing Authority buildings. One bill introduced on Tuesday would require the Department of Health and Mental Hygiene to issue an annual report on the success of rat mitigation measures in designated areas, and for the department to report on the metrics that are being used to evaluate progress.

Another bill would mandate that before a permit authorizing building alterations is issued, the applicant must prove that rat mitigations have taken place. Other bills introduced set guidelines for trash collection, including times and receptacle material. The bills are going through the legislative process, but in the meantime, there are “bonanza festivities” of rodents occurring in the trash, said City Councilwoman Alexa Avilés, who represents District 38 in Brooklyn.

While the average number of inspections across the city tends to be around 163,000 annually, in 2020 there were just 75,000 and in 2021, 111,000.

If inspections continue on a similar pace as they have been through this year, more than 214,000 will have taken place by the end of the year, putting figures back in the ballpark of the years immediately before the pandemic.

QUICK STATS

10,643

FUTURE OF NEW YORK: CRYPTOCURRENCY

BY AMANDA GLODOWSKI

10,454

WEDNESDAY, JULY 20

Infestation inflation: city’s rat population soars as Brooklyn and Upper West Side lead the way

10,534

JOIN US

STATS AND THE CITY

10K

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

NOTE: 2022 data as of June 22

SOURCE: 311

Vol. 38, No. 25, June 27, 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 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 | JUNE 27, 2022

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CHASING GIANTS

COURTESY OF NESS

NESS From left: Kenneth So, Christina Gerdes, Derek Flanzraich and Katherine Lynch of Ness

Ness aims to make typical health insurance as elusive as its namesake Scottish monster The startup rewards healthy habits with wellness credit cards

D

The upstart: Ness

content site for millennials that was sold for an undisclosed uring the pandemic, Derek Flanzraich discovered amount in 2019. The team includes executives from Oscar he couldn’t get his insurance company to cover the Health, CityblockHealth and Uber.

“We think they’re uniquely qualified, because of their expecost of his therapy sessions. It’s a common experience that leaves many at a dead end. But Flanzraich rience, to pull this off,” Reilly says.

Launching a health insurance provider, however, is akin to got obsessed with finding a solution. launching a mission to Mars. So Ness, with its reThe result is Ness, a startup named after the Scotmote staff of 25, is starting small. It offered its tish sea monster that aims to realign the entire U.S. first product in May: an invite-only rewards prohealth care system by providing customers with a gram that credits members for making healthy suite of rewards programs that incentivize healthy choices. A wellness rewards credit card is next. habits and reduce the cost of wellness care.

“But it is all in order to scale this mountain that Digging into the problem, Flanzraich identified will eventually get us in front of the Everest that is what he believes is a fundamental misalignment beUnitedHealth and Aetna CVS,” Flanzraich says. tween the interests of health insurers and their customers. Most people get their insurance through an The reigning Goliath: UnitedHealth employer and jump plans every few years. The insurer has little incentive to cover wellness and preventa- ANNE KADET Minneapolis-based UnitedHealth, with its tive care to support a customer’s long-term health.

350,000 employees, provides health insurance to“If a health plan paid for you to see a therapist or more than 50 million individuals. Its 2021 revenues go to the gym, by the time any of that really makes a difference, topped $287 billion. not only are you no longer on their plan because you switched jobs, but now you’re probably on a competitor’s plan,” he says. How to slay the giant The result: Many can’t afford basic wellness and preventaThe company’s first product, the Ness Rewards App, has tive care. members earning points for healthy spending that they can He envisions a health insurance plan that customers main- redeem for healthy purchases. For example, $500 spent ontain for decades. It would cover preventive care and “well therapy and gym visits earns 500 points—enough for a salad care,” such as a nutritionist. Ness’ products will even reward at Sweetgreen. Soon, members will be able to earn points for participants for healthy behaviors, such as exercising, seeing a going for a run, meditating or getting a goodnight’s sleep. therapist and getting enough sleep.

Later this year Ness plans to combine the wellness rewards “He’s fundamentally rethinking how consumer health care program with a new credit card product. People often use the works,” says Brian Reilly, co-founder and managing partner of same credit card for decades, Flanzraich says. It’s a vehicle for Will Ventures, which lead Ness’ recent $15.5 million seed building long-term customer relationships. round.

A Ness health insurance program will come last, marketed The Ness team has a history in the wellness space, he adds. initially to Ness card holders and the growing number of inFlanzraich previously founded Greatist, a health and wellness dependent workers who can choose their own plan.

“Ness will exist as a brand that consumers know, and [will] go out of their way to buy on their own,” Reilly says.

Flanzraich, who launched Ness with three co-founders, says the biggest challenge so far has been assembling a great team. The Ness mission helps attract top candidates, but he’s also trying to build a workplace culture focused on the wellness of employees. The company launched fully remote and plans to continue that way.

“Every quarter we get the whole team together for an in-person NessFest, like a festival for Nessies, which—I’ll be honest—basically costs the same amount as an office space for three months,” Flanzraich says.

The added challenge The next hurdle will be building awareness and acquiring members for the rewards app. But Flanzraich says he knows the playbook—when Greatist sold, it had 15 million monthlyvisitors.

Ness has paired with more than 100 health and wellness influencers who are recommending the rewards program to their followers.

“That’s gone very well so far,” Flanzraich says.

But the key, he says, will be to connect with customers and build trust by providing useful wellness content—a thrice-weekly newsletter focused on affordable wellness and an online publication, The Ness Well, that provides objective product reviews of, say, the best mushroom coffee or home rowing equipment.

“Content has always been a calling card for me,” Flanzraich says. “I still believe it’s the most cost-effective form of marketing, if you do it right. ■ Anne Kadet is the creator of Café Anne, a weekly newsletter with a New York City focus. She previously was the city business and trends columnist for The Wall Street Journal.

JUNE 27, 2022 | CRAIN’S NEW YORK BUSINESS | 3

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WHO OWNS THE BLOCK 29-59 NORTHERN BLVD.

Megaproject Sven in Long Island City offers fresh insights on city’s rental, office markets Durst cut the ribbon on Sven in spring 2021 but didn’t market apartments until the fall, hoping rental landscape would improve

BY C. J. HUGHES

BUCK ENNIS, GOOGLE MAPS

W

as trying to wait out the pandemic a smart development strategy?

41-05 29TH ST. 41-15 29TH ST. That’s the question on Dena’s Coffee Shop stood on this flatiron-shaped site for years, the verge of getting answered at Sven, This 12-story art deco former office tower, which was once during a time when the neighborhood had stricter rules about how a massive new rental project in Long among Queens’ tallest buildings, has gone residential, as the tall developers could build. But in 2001 officials loosened the rules Island City from the Durst Organizaneighborhood sheds its business district past. Pearl Realty and upzoned 36 blocks so high-rises could sprout. Rising at this trition.

Management, a Brooklyn-based firm whose leaders are the faangular site is Nova, a 24-story, 86-unit luxury condo from SB DeRather than cut Sven’s ribbon in the ther-and-son team of Joshua and Jack Guttman, purchased the velopment Group that offers studios to three-bedroom units. Pricspring of 2021–and possibly end up tower for $12.8 million in 2010. The Guttmans then added 103 es start at $645,000 for a studio, and units average $1,400 per renting its apartments at less-thanrental units and a basketball court before selling the property square foot, StreetEasy found. New-development studios in Long ideal prices–Durst decided to delay for $47 million in 2019, according to property records. The buyIsland City sold for an average price of $1,560 per square foot in marketing until the fall in hopes of the er of the building, which also uses the address 29-28 41st Ave., the first quarter, according to a market report from the brokerage market improving by then. was a Manhattan-based limited liability company whose manModern Spaces, which is also handling Nova’s sales. Although no It’s still too soon to know whether ager is Aaron Lifshitz, records show. A three-bedroom apartclosings have occurred so far, Modern Spaces has signed contracts that was a wise bet. Sven, which offers ment with two baths there rented for $5,750 a month in June. for 40% of Nova’s units since April, said Eric Benaim, the firm’s 958 studios to three-bedrooms by the chief executive. SB bought the site from Gary and Cynthia Smoke Ed Koch-Queensboro Bridge, likely won’t be fully leased until the winter. for $5.8 million in 2016, and the developer borrowed $55 million And if a recession slams the city soon, in the spring of 2021 from an affiliate of Slate Property Group.

Durst might rethink its wait.

But early results seem 28-11 QUEENS PLAZA NORTH promising. Since November, Sven has leased about 40%, 29-59 NORTHERN BLVD. For decades the William Kaufman Organior 270, of its 670 market-rate zation owned this blockwide building, which This address, on a high-profile Queens Plaza corner, is for units for rents that start has 188,500 square feet across nine stories. the residential portion of the Sven megaproject, a mixedaround $3,000 per month, Kaufman, a family-owned firm, is perhaps use development from the Durst Organization. Of its 958 said Dan Mogolesko, a Durst best known for Executive Vice President apartments, which are tucked in a 71-story tower with a senior vice president. The Melvyn Kaufman, who added cartoonish curved facade, 670 units are priced at market rates, and firm has pulled it off without touches to many of his office buildings, such offering any of the free-rent 288 are priced at reduced rates for consumers in certain as the wall-mounted chess board at 767 Third incentives that developers income brackets. Special care was taken to make sure Ave. in Midtown. He died in 2012. No. 28-11, usually dangle to fill new windows were soundproofed to muffle the noise from the a building from 1921, is snazzy for different buildings, he added. elevated subway trains next door, Durst said. The firm reasons. It has a limestone base and a row “The response from the recycles wastewater on-site to irrigate landscaping and of arched windows near its cornice. A ghostly public has been exceptional,” feed washing machines. Sven, like Durst’s previous rental steel frame on its roof is a relic of when neon Mogolesko said. “Durst made projects, is named for a Durst family member. The project signs adorned the building, the Historic Disthe right decision.” wraps an adjacent 11-story 1927 landmark that’s offitricts Council said. Since New York purchased Of course, not every develcially called the Bank of the Manhattan Company tower, the building from Kaufman in 1974, it has oper can afford to wait until but it is more familiarly known as the Clock Tower buildhoused government offices for the Education market conditions are more ing. It’s being marketed as office space. The developand Transportation departments. New York’s favorable. Delays can cause ment includes 15,000 square feet of retail space, 4,000 traffic lights are controlled within it. costs to mount, and lenders of which was recently leased to Finback Brewery. A halfoften aren’t willing to alter acre public park will also be included. A previous plan project timelines. to develop the site’s multiple lots by the development But Durst, one of New team of Property Markets Group and Hakim Organization York’s largest developers, at went nowhere. Durst picked up the site for $173 million least seems to have kept its in 2016, and M&T Bank provided $360 million in debt.

29-09 QUEENS PLAZA NORTH project competitive. Average rents for studios in the Long When the Queensboro Bridge opened in Island City luxury building 1909, paving the way for a march of dewere $2,900 a month in the velopment in a rural borough, a small fifirst quarter, according to data nancial district sprung up at the bridge’s from the brokerage Modern foot in an area now known as Queens PlaSpaces.

DUTCH KILLS GREEN za. This 3-story, 13,900-square-foot brick Other aspects of Sven, building, a branch of the once-prevalent This 1.5-acre, 10-year-old park took shape as part though, could be worse off Corn Exchange Bank, was the first financial of a larger $45 million infrastructure-improvement now than they might have institution to open there in 1910. In 2012, effort by the Bloomberg administration to spruce been a year ago. The mixedat a time when hotel developers were 29-11 QUEENS PLAZA NORTH up the neighborhood and make it more hospitable use project includes an 11-stoflocking to create lower-cost alternatives to to development. The city kicked in $25 million to ry former bank building with a This 30-story angular glass high-rise is a mixed-use Manhattan, it became the hostel Q4 Hotel. the effort, and the federal government contributed soaring clock tower that Durst tower that stacks a luxury rental building, the 132Q4 opened with 30 rooms, according to a $20 million. The insurance company MetLife, which is redeveloping as office space. unit Aurora, atop a 160-room hotel, which operates certificate of occupancy, and many of them owns the Brewster Building at nearby 27-01 Queens But with the office market as a Courtyard by Marriott.

Both opened in 2016 and were packed with bunk beds. But accordstruggling, the clock-tower Plaza North, where JetBlue Airways is a tenant, was have side-by-side entrances. A one-bedroom at Auing to hostel rules, New York state residents building has yet to lease any of also a major sponsor. The park space at the foot rora rented for $3,650 a month in June, according could not stay there, and Q4 does not apits 30,000 square feet, Mogoleof the Ed Koch Queensboro Bridge was previously to StreetEasy’s fi gures.

Harry Gross, a developer who pear to have survived the pandemic. sko said. a commuter parking lot. The makeover of the busy frequently teams up with Marriott, bought the Queens “I think we’re all trying to area, which has a tangle of streets and subway lines, site for $10.4 million in 2006 using a limited liabilunderstand how the residenincluded new bike lanes and crosswalks. ity company, Granite Queens Plaza. The sellers were tial market can have rebounded from David and Michael Neklatov of Forest Hills, accordthe worst of Covid but not offices,” he ing to public records. Gross then carved up the site added. “But I think we’ve learned to into four commercial condos. Besides the hotel, the never bet against New York.” ■ apartments and a parking garage, the site is home to the Hudson Food Market, a gourmet grocery store.

4 | CRAIN’S NEW YORK BUSINESS | JUNE 27, 2022

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¬22 in 2022 We’ve increased our U.S. minimum hourly wage to ¬22 on the way to ¬25 by 2025.

Since 2017, Bank of America has raised the minimum rate of pay for all U.S. employees by more than 46%, bringing it to an annual rate of more than $45,000 for full-time employees.

It’s part of our commitment to being a great place to work and one way we help employees build a career with us. We’re also encouraging job growth and providing economic security for thousands of individuals who are supporting fellow teammates, our clients and the local communities where we live and work.

Offering competitive pay and benefits to support our employees and their families is critical to attracting and retaining the best talent. We’ll keep leading the way and doing more.

When you have a strong team, you want to take care of them the best way you can. Raising the minimum rate of pay is just one way for us to show that we care and value everyone’s commitment.

José Tavarez President, Bank of America New York City

What would you like the power to do?® Learn more at bankofamerica.com/metroNY

Bank of America, N.A. Member FDIC. Equal Credit Opportunity Lender © 2022 Bank of America Corporation. All rights reserved.

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ASKED & ANSWERED Merck’s Global Health Innovation Fund INTERVIEW BY MAYA KAUFMAN

P

rem Tumkosit serves as a managing director of Merck’s Global Health Innovation Fund, where he’s responsible for identifying investment opportunities in digital health, specifically “next horizon” technologies. The $500 million fund has made more than 60 digital health and health care IT investments. Tumkosit, who previously worked at Accenture Strategy and Credit Suisse, says his personal identities as a gay man and the son of Thai immigrants inform the kinds of ventures he chooses to back. That means startups that increase access to care among historically underserved communities.

What about health care motivates you?

There are two dimensions. One is growing up with immigrant parents. It was really hard for my parents to navigate the health care system as non-native speakers of English and people who weren’t fluent. And two is identifying as a gay man. Access to innovative medicines really transformed things like HIV/AIDS into manageable chronic conditions. The LGBT community has really witnessed the positive impact of health innovation.

How can startups expand access to LGBTQ health care and address disparities?

Our thesis in that space is that people will often engage with the health care system for very specific questions.

WHO HE IS Managing director, Merck’s Global Health Innovation Fund

for the industry. Having more people ask those hard questions of startup companies, and even more mature companies, will help the whole industry be a lot more sustainable.

How do you parse idealism in the health care space from what actually might make a difference?

BORN Denton, Texas RESIDES Bushwick

There is a seductive storyline that a lot of health care problems can be solved by tech.

While tech can be a helpful tool, it’s not the only thing that will win the day. Companies that have a good understanding of practice economics, provider culture, what patients are really looking for and how to build strong networks within their markets are the ones that we tend to gravitate toward.

AGE 39 EDUCATION Bachelor’s in biochemistry, University of Pennsylvania; MBA, Yale University ALUMNI CONNECTION He leads the LGBTQ New York alumni group for the Yale School of Management. “We continue to need those types of spaces—to be able to come together,” Tumkosit said.

PANDEMIC HOBBIES Tumkosit “embraced” the Brooklyn lifestyle during the pandemic, baking sourdough bread and building his own furniture.

In the case of the LGBTQ community, it’s often a question of sexual health. Our goal is to look at assets that can take that initial inquiry and connect individuals with the broader system.

How is the current state of the market affecting your decision-making processes?

We are being a bit more selective in how we look at some of those companies. It’s becoming increasingly important for us to see companies with revenue, with a path to profitability.

Is that becoming a permanent shift?

I hope this does become a more permanent rubric

Are there any subsectors within digital health that are overlooked?

It used to be that you were only a precision medicine company, only a diagnostic company or only a drug-development company. Now there’s a blur between some of those lines. It’s harder to tell a simple story for some of those companies, so there is a lack of investment in some of those spaces.

What does New York need to do to better compete with Boston and San Francisco?

I used to never have meetings with startup companies in New York when we started out investing in the space several years ago. Now I’m finding that there is increasingly a healthy ecosystem of companies based in New York City. We’re seeing more incubator activity and accelerator programs. It’s a matter of continuing and supporting those initiatives and making it easier for startups to afford to have space in the city. ■

BUCK ENNIS

PREM TUMKOSIT

DOSSIER

The MTA is pleased to release a revised Request for Proposal for “MS21001 Operation and Maintenance of Infrastructure and Structures Supporting Long Island Rail Road Access into Grand Central Madison Terminal: Passenger Facilities and Retail Development and Management”!

MTA Construction & Development Company (MTA C&D) is seeking proposals for one or more qualified service providers to (i) operate and maintain infrastructure and related structures supporting The Long Island Rail Road Access (LIRR) into the new Grand Central Madison (GCM), and (ii) perform retail development and management services for the new Madison Concourse.

Customers taking LIRR to Manhattan will arrive at the new 700,000-square-foot GCM Terminal which runs alongside Madison Avenue from 43rd Street to 48th Street, and the new Madison Concourse, which is one level below Grand Central Terminal’s Dining Concourse. Once fully completed, Grand Central Madison Terminal and the new Madison Concourse will have retail and restaurants, spacious waiting areas, free Wi-Fi and real-time departure information. The MTA expects about 45% of all LIRR passengers will use GCM. The two distinct scopes of work for this contract are: (i) the Retail Scope of Work (to be performed by a master lessee), and (ii) the Facilities Scope of Work (to be performed by a facilities maintainer). A third Scope of Work (related to rail facilities) was deleted and removed from the RFP. Prospective proposers may propose on one or both Scope of Work. Accordingly, proposers need not propose on both scopes.

The MTA has progressed the RFP to finality: it has reached agreement with labor representatives of all impacted crafts with respect to the scopes of work, and a Cooperation Agreement has been executed; and the MTA has created The MTA Grand Central Madison Concourse Operating Company, a new MTA agency to manage the contracts.

Additionally, in connection with the Facilities Scope of Work, MTA C&D solicited feedback from the contractor community and revised the RFP to make it more contractor friendly as set forth, in part, below: 1. The term of the Facilities O&M Agreement has been reduced to an initial five (5) year term, with two (2) three (3)-year options.

2. The cost of certain capital replacement work originally included in the Facilities Scope of Work has been shifted from the facilities maintainer to the MTA Group.

3. The ‘Facilities Maintenance Fee’ will automatically adjust annually based on increases to CPI. 4. Performance of the Facilities Scope of Work is now encouraged by monetary incentives and disincentives.

Detailed information about the RFP is available on the MTA web site at: http://mta.info/capconstr/procurement/cc_solicitations.htm. The MTA looks forward to working together!

6 | CRAIN’S NEW YORK BUSINESS | June 27, 2022

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100 luxury. th 1/8 the cost. %

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6/21/22 10:40 AM

T:14.5"

Second home ownership for 1/8 the cost

president & ceo K.C. Crain group publisher Jim Kirk publisher/executive editor

EDITORIAL

Frederick P. Gabriel Jr.

2 innovative funding ideas for the MTA couldn’t come at a better time than now property taxes, but that money is directed not toward the MTA but to city coffers in general.

This should be reconsidered.

Capturing the value of the new infrastructure to further fund the MTA makes sense, and it should be structured in a way that doesn’t leave the public at risk of covering bond payments, as the city did at Hudson Yards, or paying for cost overruns.

If there is anywhere on earth that can plumb its hometown financial ingenuity to remove these risks, it’s New York.

Congestion pricing is another promising funding mechanism for the MTA, but one the governor recently waved off into the future, saying its proposed 2023 launch was “not the right time.” Congestion pricing, as a bonus, would discourage driving into Manhattan— and that’s good for the environment and good for boosting transit rider numbers.

Big ideas such as these are what’s needed. The MTA’s needs are almost unfathomably large.

Congress passed an infrastructure bill in November that added $10

THE AUTHORITY’S FIVE-YEAR CAPITAL SPENDING PLAN HAS FOUND $51.5B IN NEEDS proportionally toward the cost of the service expansion.

Hughes’ skillful reporting shows that the properties along the new Q subway line on the Upper East Side grew in value by about a third on average. Higher values mean the owners will pay more in

editor-in-chief Cory Schouten,

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www.crainsnewyork.com/advertise BUCK ENNIS

A

nyone who’s lived in an area without mass transit would be hard-pressed to argue that the trains and buses of the Metropolitan Transportation Authority are not the economic engine of this region. But paying for the MTA upkeep and expansion always seems to be a struggle.

In this month’s Crain’s Forum, writer C.J. Hughes lays out one promising funding strategy: value capture. It’s the idea that those who benefit most from the new infrastructure—be it a subway stop, a tunnel under the Hudson River or a reconfigured Penn Station—should contribute

EDITORIAL

billion or more for mass transit in this state. The MTA’s five-year capital spending plan, however, has identified $51.5 billion in needs.

What’s more, MTA farebox revenue is depressed, as commuters work from home and as reports of subway crime deter riders. There’s doubt that rider numbers will rebound—but this

concern is exaggerated and fleeting. The city will always need healthy transit to flourish, to get workers to jobs and audiences to museums and shows. In short, to remain the humming, surging, pulsating stunner of a city that it is.

Let’s pursue innovative funding strategies to keep the city’s economic engine running. ■

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www.crainsnewyork.com/events manager of conferences & events

Ana Jimenez, ajimenez@crainsnewyork.com

OP-ED

senior manager of events Michelle Cast,

National Grid’s pipeline dream weakens state’s attempts to address climate change

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

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

Simone Pryce

BY LEE ZIESCHE

C

limate change has a day-today impact on the health and finances of working-class New Yorkers, from increasing utility bills as a result of extreme weather, to costly home repairs from storms and flooding, to medical bills from increased prevalence of asthma and cardiovascular disease.

New York leads the nation in premature deaths caused by the air pollution from burning fossil fuels in buildings, the largest source of greenhouse gas emissions in the state. To fight these financial and health threats, we must reduce emissions from buildings and utilities.

As we suffer from skyrocketing utility bills this summer, however, utility firm National Grid is pushing for policies that weaken our attempts to address climate change, further raising prices and polluting environment justice communities for years to come.

The irony is that just this month, National Grid sponsored an Equity in Energy Summit. As it has for years, National Grid continues to spend millions of dollars to deceive New Yorkers with promises such as “fossil-free gas” at the same time it is building harmful

technology.

National Grid recently presented this "vision" to Brooklyn Community Board 1, where its liquefied fracked gas storage depot in Greenpoint is. In more than an hour of questioning, Brooklyners exposed many false solutions in National Grid's plan.

National Grid dodged community questions on whether current pipelines and appliances can transport and use hydrogen. It dodged questions about how much it is costing us to replace old leaking pipelines and will cost us in the future. And it had no answers to where renewable natural gas will come from and how it can be transported without still leaking methane.

Because the truth is, keeping National Grid’s pipeline dream alive is already costing us ratepayers hundreds of millions of dollars

“WE UTILITY CUSTOMERS WILL BE ON THE HOOK TO PAY FOR ALL OF THIS UNPROVEN TECHNOLOGY” fracked gas projects in predominantly Black and brown neighborhoods.

National Grid claims its system will be used in the future to deliver a mix of hydrogen and renewable natural gas, but this a pipe dream desperate to keep fossil fuel pipelines in use.

What’s more? We utility customers will be on the hook to pay for all of this undeveloped and unproven

a year, and that will only go up as it bets on unproven technologies.

As New York’s Climate Leadership and Community Protection Act draft plan states, electrification of heat and hot water using highly efficient cold climate heat pumps run by renewable electricity is the equitable and real solution to mitigating climate change.

Extensive modeling shows electrification as the best and least costly solution for eliminating building sector emissions, carbon and air pollution emissions.

Stop the overreach At a time when we need real solutions based on science and community needs, National Grid will continue to spend money, like sponsoring their Equity in Energy Summit, to mislead and confuse New Yorkers, but we will not fall for its misinformation.■ Lee Ziesche is an organizer with the Sane Energy Project and the No North Brooklyn Pipeline Coalition.

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8 | CRAIN’S NEW YORK BUSINESS | JUNE 27, 2022

P008_CN_20220627.indd 8

6/24/22 5:02 PM

OP-ED

Gov. Hochul should veto cryptocurrency mining bill and embrace New York’s future as a crypto capital

N

ew York Democrats in the state Legislature recently voted to halt cryptocurrency mining operations in our state, and recent reports suggest that Gov. Kathy Hochul will look at the bill “very closely” before deciding whether to sign or veto it.

If the governor signs this bill, it will harm the growing cryptocurrency mining industry in upstate

any other financial sector or industry in New York) and ultimately kowtowing to far-left activists who love nothing more than to undermine our state economy in the name of their radical climate agenda. That’s the crux of this bill. It narrowly passed both houses, and it places a two-year moratorium on the issuance of new permits or renewal of existing permits for carbon-based electric generating facilities providing power to cryptocurrency mining operations.

If this becomes law, cryptocurrency mining firms will be forced to move their businesses and jobs out of state, which will further hurt our business sector.

These firms were attracted to upstate New York because of the cold weather, the abundance of cheaper and cleaner power, and the available industrial space. If forced to leave, these firms will likely head to other states where the power is not as clean and where they will need to use more energy to cool their equip-

IF THIS BILL BECOMES LAW, CRYPTO MINING FIRMS WILL BE FORCED TO MOVE. New York and the Empire State’s emerging blockchain technology development sector. Instead of blocking progress, state leaders should be focused on making New York the nation’s crypto capital.

Albany lawmakers are demanding that the cryptocurrency mining industry become carbon-free immediately (not the case for virtually

ment, thus increasing their carbon footprint.

An exciting new opportunity Anti-growth and poorly designed environmental policies are far too common in New York, yet this one seems particularly illtimed and ill-targeted. Stonewalling cryptocurrency mining operations is bad for the future of New Yorkers and our economy. New York state has long been the epicenter of the financial industry and new and emerging industries and technologies. Just because a few extremists passed it in the Statehouse does not mean the governor should scare away this exciting new opportunity that could have a positive impact on our economy.

And there’s a reason why this legislation hasn’t quickly become law.

The governor knows as well as anyone that New York cannot afford to be seen once again as the anti-business capital of America. That’s especially true as our economic recovery from the pandemic seems tenuous at best—and we continue

BLOOMBERG

BY ROBERT ORTT

to lead the nation in outmigration—thanks to the repeated taxand-spend policies of one-party rule in Albany.

New York should be the crypto capital of America just as we are the financial capital of the world. That means working with the crypto mining industry, instead of against it, so we can ensure better environ-

mental outcomes and protect needed private investment in upstate New York.

This is one area where New York City Mayor Eric Adams and I agree: Veto this bill, governor. ■ Robert Ortt, a Republican, is the minority leader in the New York state Senate.

OP-ED

BY JODY RUDIN

S

table, safe housing improves health outcomes. Given the dual mental and physical health crises and skyrocketing substance-use issues in the city, we should take advantage of Mayor Eric Adams’ just-announced Housing Our Neighbors plan and state-sponsored supportive and affordable housing developments coming online to improve people’s serious health problems.

A permanent home provides an opportunity to deliver whole health services that have an enormous impact on health. It’s something we’re beginning to see across our housing programs and it’s something we’re expanding to our newest housing development.

In our congregate housing and residential programs and through our Assertive Community Treatment teams, which deliver whole health in people’s homes, we are seeing significant reductions in mental health-related hospitalizations (83%); reductions in body mass index, an obesity indicator, between 15% and 23%; smoking cessation; and improved blood pressure.

Perhaps most important: Of our clients, 76% believe they can make changes to improve their physical

and mental health.

Our newest housing development, Nevins Street Apartments in Downtown Brooklyn, provides the perfect setting to up our whole health approach. The building, featuring 78 supportive housing units and 50 affordable units for community residents, is in a neighborhood with access to amenities such as grocery stores, transportation and child care, all key to supporting health and well-being.

It also has sustainability features that promote a better environment and amenities, such as a gym, a bike room and a computer lab and more. But it’s the services we offer that really up the game on housing as health.

A comprehensive approach At Nevins Street Apartments, counselors, case managers, employment specialists and literacy coaches provide around-the-clock whole health support to residents, including veterans with histories of post-traumatic stress disorder and other traumas, individuals diagnosed with serious mental illness and substance-use disorders, those with histories of street homelessness, and youth aging out of foster care.

These individuals struggle financially, are more likely to be unem-

ployed or underemployed, be isolated, be malnourished, and have unaddressed health problems. All of these factors significantly affect health and they are all things we are addressing at the building.

Counselors work to boost tenants’ economic security, including by providing employment and educational support services, budgeting, and assisting in accessing benefits and entitlements. Our partnership with LaGuardia Community College creates a pathway for residents to earn a degree, and we provide support to parents to further their young children’s early childhood education.

We also address food security by helping people shop, delivering emergency meals, connecting individuals with external resources, and providing group cooking classes and personal cooking instructions for those who have not learned to cook for themselves.

Regular classes and events are held in the building's community rooms, staff will visit tenants door to door to ensure their continued well-being, and counselors throughout the building will provide a friendly face and a willing ear to tenants who may not have a social network.

We will also support tenants’ basic health needs by connecting

NEW YORK STATE HOMES AND COMMUNITY RENEWAL

A permanent home provides an opportunity to deliver whole health services to the needy

WORKING MODEL At Nevins Street Apartments, counselors, case managers, employment specialists and literacy coaches provide around-the clock whole health support to residents. them with care when needed and by facilitating residents’ regular health checkups, including at our East New York Health Hub, where we offer integrated primary and behavioral health care through our partnership with the Community Healthcare Network.

To ensure we’re helping tenants improve health outcomes, we’re tracking and monitoring increased primary care use, cardiometabolic screening, tobacco use screening, and treatment and hospitalization rates.

By bringing all of these services under one roof we will be able to address the overwhelming majority of factors—the social determinants of health—that affect health. It’s the kind of effort needed to meet the moment on health, behavioral health and the substance-use needs of city residents. ■ Jody Rudin is CEO of the Institute for Community Living, a citywide nonprofit that provides health services and housing to people in need.

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.

June 27, 2022 | CRAIN’S NEW YORK BUSINESS | 9

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6/23/22 5:14 PM

THE LIST LARGEST ARCHITECTURE FIRMS Ranked by number of New York–area architects

AMANDA.GLODOWSKI@CRAINSNEWYORK.COM

9 1 1 1 1 1 21 31 41 15 1 6 2 72 8 2 9 12 12 12 12 12 12 12 13 1 1

RAN

(From left) LGA DELTA TERMINAL by Gensler (No. 1); NEW YORK-PRESBYTERIAN BROOKLYN METHODIST HOSPITAL: CENTER FOR COMMUNITY HEALTH and THE WILLOUGHBY APARTMENT COMPLEX by Perkins Eastman (No. 2); DISNEY’S 4 HUDSON SQUARE OFFICE by Skidmore, Owings & Merrill (No. 3) COURTESY OF GENSLER, PERKINS EASTMAN, SKIDMORE, OWINGS & MERRILL

RANK

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

NEW YORK–AREA ARCHITECTS 2022/ 2021

2022 WORLDWIDE ARCHITECTS WORLDWIDE ARCHITECTS 2021/

NEW YORK–AREA SERVICE MIX (% OF BILLINGS) 1 NOTABLE PROJECTS/CLIENTS 2

FIRM/ ADDRESS

PHONE/ WEBSITE

Gensler 1700 Broadway New York, NY 10019

212-492-1400 gensler.com

Rocco Giannetti, Molly Murphy, Joseph Lauro, Amanda Carroll Managing directors, NY office Robin Klehr Avia, Joseph Brancato Regional managing principals

308 279

1904 1,729

Architecture: 31% Engineering: 0% Interiors: 66% Planning: 3%

Deutsche Bank; Delta at LGA

Perkins Eastman 115 Fifth Ave. New York, NY 10003

212-353-7200 perkinseastman.com

Andrew Adelhardt, Shawn Basler, Nicholas Leahy Co-chief executives

270 260

504 486

Architecture: 67% Interiors: 29% Planning: 4%

The Willoughby; NewYorkPresbyterian Brooklyn Methodist Hospital: Center for Community Health

Skidmore, Owings & Merrill 7 World Trade Center New York, NY 10007

212-298-9300 som.com

Kenneth Lewis, Laura Ettelman Managing partners Mustafa Abadan, Chris Cooper, Colin Koop Design partners

178 185

381 405

Architecture: 87% Engineering: 6% Interiors: 4% Planning: 3%

Disney New York City; Lever House

HOK 5 Bryant Park New York, NY 10018

212-741-1200 hok.com

Carl Galioto President, managing principal

160 174

1341 1,115

Architecture: 60% Engineering: 15% Interiors: 20% Planning: 5%

Apollo Global Management

Kohn Pedersen Fox Associates 11 W. 42nd St. New York, NY 10036

212-977-6500 kpf.com

James von Klemperer President

132 137

239 239

Architecture: 100%

One Madison Ave.; 660 Fifth Ave.

Ennead Architects 1 World Trade Center New York, NY 10007

212-807-7171 ennead.com

Guy Maxwell, Kevin McClurkan, Molly McGowan, Richard Olcott, Tomas Rossant, Todd Schliemann, Peter Schubert, Don Weinreich, Thomas Wong Partners

94 103

104 112

Architecture: 100%

NYBC Center East Applied Life Sciences Hub; The David H. Koch Center for Cancer Care at Memorial Sloan Kettering Cancer Center

Hill West Architects 11 Broadway New York, NY 10004

212-213-8007 hillwest.com

David West, Stephen Hill Partners

82 76

82 76

Architecture: 98% Planning: 2%

Bankside at 101 Lincoln Ave. and 2401 Third Ave. in the Bronx; Olympia DUMBO

Robert A.M. Stern Architects 1 Park Ave. New York, NY 10016

212-967-5100 ramsa.com

Robert Stern Founder, senior partner

75 72

75 72

Architecture: 100%

FXCollaborative Architects 1 Willoughby Square Brooklyn, NY 11201

212-627-1700 fxcollaborative.com

Guy Geier Managing partner

60 78

60 78

Architecture: 60% Interiors: 25% Planning: 15%

1 Willoughby Square

Beyer Blinder Belle Architects and Planners 120 Broadway 20th Floor New York, NY 10271

212-777-7800 beyerblinderbelle.com

Elizabeth Leber Managing partner

59 56

83 81

Architecture: 88% Interiors: 2% Planning: 1%

The Brook; 92nd Street Y (92NY)

Dattner Architects 498 7th Ave, 20th floor New York, NY 10018

212-247-2660 dattner.com

Kirsten Sibilia Managing principal Beth Greenberg Principal

57 53

57 53

Architecture: 91% Interiors: 6% Planning: 3%

Lackawanna Plaza; Bronx High School of Science, The Stanley Manne Institute

SLCE Architects 1359 Broadway New York, NY 10018

212-979-8400 slcearch.com

Saky Yakas Managing partner

51 51

51 51

Architecture: 98% Interiors: 2%

TF Cornerstone; Jamestown

AECOM 605 Third Ave. New York, NY 10158

212-973-2900 aecom.com

Thomas Prendergast New York metro executive

45 72

1727 1,444

Architecture: 20% Engineering: 70%

Javits Extension; East Side Access, MTA

CannonDesign 360 Madison Ave. New York, NY 10017

212-972-9800 Richard Kahn cannondesign.com practice leaderEXCLUSIVE WANT MORE Office OF CRAIN’S

45

590

Architecture: 55%

Northwell Health; Richmond

10 | CRAIN’S NEW YORK BUSINESS | June 27, 2022

STV 225 Park Avenue South New York, NY 10003

212-777-4400 stvinc.com

HEAD(S) OF NEW YORK–AREA OFFICE

Greg Kelly President, chief executive

212-941-9801

Nancy Ruddy

Ne res n/d

44 530 Engineering: 15% University Medical Center DATA? VISIT CRAINSNEWYORK.COM/LISTS. Interiors: 15% Planning: 15%

45 58

90 101

P010_P011_CN_20220627.indd 10

CetraRuddy Architecture

Naftali Group and Rockwell Group; Claremont Hall

39

40

Architecture: 39% Engineering: 52% Interiors: 1% Planning: 8%

Newark Liberty International Airport Terminal One; South Beach Psychiatric Center New Residential Building 6/23/22

Architecture: 91%

Rose Hill; One Essex Crossing

4:37 PM

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9 10 11 12 13 113 213 316 417 18 5 19 6 20 721 8 22 9 23 10 23 11 25 12 25 13 27 13 28 13 29 16 30 17 18 19 RANK

FXCollaborative Architects 1 Willoughby Square Brooklyn, NY 11201

212-627-1700 fxcollaborative.com

Guy Geier Managing partner

60 78

60 78

Architecture: 60% Interiors: 25% Planning: 15%

1 Willoughby Square

Beyer Blinder Belle Architects and Planners 120 Broadway 20th Floor New York, NY 10271

212-777-7800 beyerblinderbelle.com

Elizabeth Leber Managing partner

59 56

83 81

Architecture: 88% Interiors: 2% Planning: 1%

The Brook; 92nd Street Y (92NY)

Dattner Architects 498 7th Ave, 20th floor New York, NY 10018

212-247-2660 dattner.com

Kirsten Sibilia Managing principal Beth Greenberg Principal

57 53

57 53

Architecture: 91% Interiors: 6% Planning: 3%

Lackawanna Plaza; Bronx High School of Science, The Stanley Manne Institute

SLCE Architects 1359 Broadway New York, NY 10018

212-979-8400 slcearch.com

Saky Yakas Managing partner

51 51

51 51

Architecture: 98% Interiors: 2%

TF Cornerstone; Jamestown

AECOM 605 Third Ave. FIRM/ New York, NY 10158 ADDRESS

212-973-2900 aecom.com

Thomas Prendergast New York metro executive

NEW YORK–AREA 45 ARCHITECTS 72 2022/ 2021

2022 WORLDWIDE ARCHITECTS 1727 WORLDWIDE 1,444 ARCHITECTS 2021/

Architecture: 20% NEW YORK–AREA Engineering: 70%

Javits Extension; East Side Access, MTA

Gensler CannonDesign 1700 Broadway 360 Madison Ave. New York, NY 10019 10017

212-492-1400 212-972-9800 gensler.com cannondesign.com

Rocco RichardGiannetti, Kahn Molly Murphy, Joseph Lauro, Amanda Carroll Managing directors, Office practice leaderNY office Robin Klehr Avia, Joseph Brancato Regional managing principals

308 45 279 44

1904 590 1,729 530

Architecture: 31% 55% Engineering:15% 0% Engineering: Interiors: 66% 15% Planning:15% 3% Planning:

Deutsche Bank; Delta at LGA Northwell Health; Richmond University Medical Center

Perkins Eastman STV 115 Ave. South 225 Fifth Park Avenue New York, NY 10003

212-353-7200 212-777-4400 perkinseastman.com stvinc.com

Andrew Adelhardt, Shawn Basler, Greg Kelly Nicholas President,Leahy chief executive Co-chief executives

270 45 260 58

504 90 486 101

Architecture: 67% 39% Interiors: 29% Engineering: 52% Planning: Interiors: 4% 1% Planning: 8%

The Willoughby; NewYorkNewark Liberty International Presbyterian Brooklyn Airport Terminal One; South Methodist Hospital:Center Center Beach Psychiatric for NewCommunity ResidentialHealth Building

Skidmore, & Merrill CetraRuddyOwings Architecture 71 World BatteryTrade Park Center Plaza New York, NY 10007 10004

212-298-9300 212-941-9801 som.com cetraruddy.com

178 39 185 37

381 40 405 38

Architecture: 87% 91% Engineering: Interiors: 6% 9% Interiors: 4% Planning: 3%

Disney New York City;Crossing Lever Rose Hill; One Essex House

NBBJ 140 Broadway HOK York,Park NY 10005 5New Bryant

212-924-9000 nbbj.com 212-741-1200

Kenneth Lewis, Laura Ettelman Nancy Ruddy Managing John Cetrapartners Mustafa Chris Cooper, FoundingAbadan, principals Colin Koop Design Timothypartners Johnson

37 31 160

243 240 1341

174

1,115

Architecture: 48% Engineering:60% 0% Architecture: Interiors: 15% 48% Engineering: Planning:20% 4% Interiors:

NYC Health + Hospitals, South Brooklyn Health, Ruth Apollo Global Management Bader Ginsburg Hospital; BlackRock Headquarters

Frederic Strauss James von Phillips James Klemperer Managing executives President

33 31 132

33 31 239

137

239

Alexander Jacobs Jennifer Cheuk Guy Maxwell,Astrachan Kevin McClurkan, Isaac-Daniel Molly McGowan, Richard Olcott, Principals Tomas Rossant, Todd Schliemann, Rick Ryan Peter Schubert, Don Weinreich, AssociateWong principal, New York office Director Thomas Partners

30 47 94 103

30 47 104 112

Architecture: 90% Interiors: 10% Architecture: 100%

27 18

220 192

Architecture: 89% Engineering: 0% Interiors: 11% Planning: 0% Architecture: 98% Architecture: Planning:77% 2% Interiors: 23%

PHONE/ WEBSITE

hok.com

HEAD(S) OF NEW YORK–AREA OFFICE

JoanGalioto Saba Carl Partners managing principal President,

New York, NY 10018 TPG Architecture 132 W.Pedersen 31st St. Fox Kohn New York, NY 10001 Associates 11 W. 42nd St. Stephen New York,B.NYJacobs 10036Group 381 Park Ave. South Ennead New York,Architects NY 10016 1 World Trade Center New York, NY 10007 Corgan 350 Fifth Ave. New York, NY 10118

212-768-0800 tpgarchitecture.com 212-977-6500 kpf.com 212-421-3712 sbjgroup.com 212-807-7171 ennead.com 212-490-2930 corgan.com

SERVICE MIX (% OF BILLINGS) 1 NOTABLE PROJECTS/CLIENTS 2

Planning:85% 5% Architecture: Interiors: 15% Architecture: 100%

Heidrick & Struggles; NHL One Madison Ave.; 660 Fifth Ave. Le Fouquet’s NYC Hotel; 3 Sutton Place NYBC Center East Applied Life Sciences Hub; The David H. Koch Center for Cancer JFK Terminal 6; CitiSloan Care at Memorial Kettering Cancer Center

Hill West Architects Stonehill Taylor 11 Broadway 31 W.York, 27thNYSt., 5th Floor New 10004 New York, NY 10001

212-213-8007 212-226-8898 hillwest.com stonehilltaylor.com

David West, Stephen Hill Paul Taylor Partners President

82 26 76 22

82 26 76 22

Robert A.M. Stern Architects Architects 1Urbahn Park Ave. 49 W.York, 37thNYSt.10016 New New York, NY 10018

212-967-5100 212-239-0220 ramsa.com urbahn.com

Robert Stern Donald Henry Founder, senior partner Principal

75 25 72 20

75 25 72 20

Architecture: 100% Architecture: 85% Interiors: 5% Planning: 10%

FXCollaborative Architects 1 Willoughby Square Brooklyn, NY 11201

212-627-1700 fxcollaborative.com

Guy Geier Managing partner

60 78

60 78

Architecture: 60% Interiors: 25% Planning: 15%

HWKN Architecture Beyer Blinder 1 Whitehall St,Belle 14th Floor Architects Planners Manhattan,and NY 10004 120 Broadway 20th Floor New York, NY 10271 NK Architects

212-625-2320 212-777-7800 hwkn.com beyerblinderbelle.com

Matthias Hollwich Elizabeth Leber Founder, principal Managing partner

24 59 19 56

1 831 81

Architecture: 100% Architecture: 88% Interiors: 2% Planning: 1%

212-982-7900 nkarchitects.com 212-247-2660

Paul Drago PrincipalSibilia Kirsten

24 20 57

24 20 57

dattner.com

Managing principal Beth Greenberg Principal Steven Davis, William Paxson,

53

53

Architecture: 80% Engineering:91% 5% Architecture: Interiors: Interiors:10% 6% Planning: 3% 5% Planning:

The Chapin School; The Brooklyn Hospital Lackawanna Plaza;Center Bronx Emergency High SchoolDepartment of Science, The 181 Mercer St., New York University; Irish Arts Center TF Cornerstone; Jamestown

233 Broadway, Suite 2150 Dattner Architects New 7th York,Ave, NY 10279 498 20th floor New York, NY 10018 Davis Brody Bond 1 NewArchitects York Plaza SLCE New York, NY 10004 1359 Broadway New York, NY 10018

212-633-4700 davisbrody.com 212-979-8400 slcearch.com

MBB Architects AECOM 48 W. 37th St, 14th Floor 605 Ave.10018 New Third York, NY New York, NY 10158

212-768-7676 212-973-2900 mbbarch.com aecom.com

Magnusson Architecture and CannonDesign Planning PC 360 Madison Ave. 42 W. 39th St. New York, NY 10017 New York, NY 10018

Bankside at 101 Lincoln Ave. The Graduate Roosevelt and 2401 Third Ave. in the Island; Olympia TWA Hotel & Connie Bronx; DUMBO Cocktail Lounge Naftali Group and Rockwell Outposted Therapeutic Group; Claremont Hall Housing Units at Bellevue and Woodhull Hospitals; College Nursing 1Lehman Willoughby Square Education & Research Practice Center Bushwick Generator; 351 The Brook; 92nd Street Y Marin Residence (92NY)

Stanley Manne Institute

22 24 51 51

22 24 51 51

Architecture: 100%

Mary Burnham Thomas Partner Prendergast New York metro executive

22 45 17 72

22 1727 17 1,444

Architecture: 35% Architecture: Engineering:20% 0% Engineering: Interiors: 70% 30% Planning: 35%

Trinity Church Wall St.; Eric H. Javits East HolderExtension; Jr. Initiative for Side Civil Access, MTA Rights at and Political Columbia University

212-253-7820 212-972-9800 maparchitects.com cannondesign.com

Christopher Jones, Fernando Villa, Richard Kahn Magnus Magnusson Office practice leader Principals

20 45 19 44

20 590 19 530

East Clarke Place Senior Northwell Health; Richmond Residence; The Corden University Medical Center

Fogarty Finger Architecture STV 69 Walker St. 225 Park Avenue South New York, NY 10013 New York, NY 10003

212-966-7450 212-777-4400 fogartyfinger.com stvinc.com

Chris Fogarty, Robert Finger Greg Kelly Founding partners President, chief executive

19 45 0 58

19 90 0 101

STUDIOS Architecture CetraRuddy Architecture 588 Broadway, Suite 702 1 Battery Park Plaza New York, NY 10012 New York, NY 10004

212-431-4512 212-941-9801 studios.com cetraruddy.com

Joshua Rider Nancy Ruddy Managing principal John Cetra Founding principals

18 39 18 37

87 40 85 38

Architecture: 93% Architecture: 55% Interiors: 2% Engineering: 15% Planning: 5% Interiors: 15% Planning: 15% Architecture: 35% Architecture: 39% Engineering: 0% Engineering: 52% Interiors: 65% Interiors: 1% Planning: 0% Planning: 8% Architecture: 46% Architecture: 91% Engineering: 0% Interiors: 9% Interiors: 50% Planning: 4%

FCA 3 NBBJ 40 Worth St. Suite 300 140 Broadway 10013 New York, NY 10005

646-315-7000 212-924-9000 fcarchitects.com nbbj.com

Anthony Johnson Colciaghi, Steven Stainbrook, Timothy Wan Leung, Joan Saba Kenneth Kramer, Mark Harbick Principals Partners

17 37 19 31

47 243 58 240

Architecture: Architecture:100% 48% Engineering: 0% Interiors: 48% Planning: 4%

TPG Architecture

212-768-0800

Frederic Strauss

33

33

Architecture: 85%

Stephen B. Jacobs Group 381 Park Ave. South New York, NY 10016

212-421-3712 sbjgroup.com

Alexander Jacobs Jennifer Cheuk Isaac-Daniel Astrachan Principals

30 47

30 JuneArchitecture: 90% LeNEW Fouquet’s Hotel; 3 | 11 27, 2022 | CRAIN’S YORKNYC BUSINESS 47 Interiors: 10% Sutton Place

212-490-2930 corgan.com

Rick Ryan Associate principal, New York office Director

27 18

Carl Krebs, Saky Yakas Christopher Grabé, David Williams Managing partner Partners

Architecture: 98% Interiors: 2%

The Dime; 141 Willoughby Newark Liberty International Airport Terminal One; South Beach Psychiatric Center New Residential Building Tribeca Associates; National Rose Hill; One Essex Crossing Basketball League Headquarters EisnerAmper York City NYC Health +New Hospitals, Headquarters South Brooklyn Health, Ruth Bader Ginsburg Hospital; BlackRock Headquarters Heidrick & Struggles; NHL

New York area Suffolk and WestchesterJames counties in New York and Bergen, Essex, Hudson and Union counties in New Jersey. a New15% York–area office. Crain's uses staff 132includes W. 31st New St. York City and Nassau, tpgarchitecture.com Phillips 31 To qualify for this list,31firms must have Interiors: research, extensive and the most current references available to produce its lists, but there is no guarantee that these listings are complete. In cases of ties in the number of New York–area architects, firms are listed alphabetically.

New York,surveys NY 10001 Managing executives n/d-Not disclosed. 1--Figures may not add up to 100% due to rounding. 2--Must be active projects in the New York area. 3--Formerly known as Francis Cauffman.

P010_P011_CN_20220627.indd 11 Corgan

350 Fifth Ave.

220 192

Architecture: 89% Engineering: 0%

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THE MIDDLE MARKET KEEPS AN EYE ON GROWTH The middle market has been on the rebound, with nearly 4 out of 5 businesses reporting revenue gains in 2021 and 57% of middle-market firms expanding the size of their workforce.* For insight to key trends in the marketplace, Crain’s Content Studio spoke with three experts: certified public accountant Kevin Burns, a partner at Citrin Cooperman Advisors; attorney Gene Barton, a director at the Goulston & Storrs law firm; and CPA Chris Noble, a partner and leader of the technology and professional services groups at Anchin.

KEVIN BURNS, CPA

Partner, Citrin Cooperman Advisors LLC Partner, Citrin Cooperman & Company, LLP

Kevin Burns is a partner at the firm’s New York City office with over a decade of experience providing a mix of accounting, audit, consulting, business advisory, and tax services to privately held businesses.

Kevin is a driven accounting professional that strives to assist emerging businesses and takes a proactive approach, focusing on strategic planning and preparation. He relies on his combination of attention to detail and prioritizing of risk to efficiently solve issues for clients.

CRAIN’S: In what ways did middle-market businesses use the time during the pandemic to shift strategies and improve their operations?

KEVIN BURNS: While the Paycheck Protection Program and Employee Retention Tax Credits, along with other benefits of the Cares Act and Consolidated Appropriations Act, assisted many companies and kept them afloat, these were only temporary and-or partial solutions. Companies really had to take a hard look at their business strategies and adjust them where necessary. These adjustments included shifts in their customer base, how products or services are sold, how they reach customers, how they acquire and retain talent, and how they adjust budgets and preserve cash flow. Companies without a large online presence quickly shifted to building one, and companies that did not have the infrastructure to work remotely quickly put one in place.

A remote environment allowed companies to compete for customers outside of their geographic markets.

This environment also allowed these

companies to identify and hire talent in other markets. With changes such as these, these middle-market businesses that may have previously considered themselves local or regional have now become national.

“THROUGH SOPHISTICATED STRATEGIC PLANNING AND OPERATIONAL ANALYSIS, MIDDLE-MARKET BUSINESSES CAN EXPAND SERVICE OFFERINGS AND USE TECHNOLOGY TO MAKE THEM MORE COMPETITIVE.”

In a remote environment, firms also significantly reduced certain expenses, such as travel, meals and entertainment.

Many companies reduced or subleased their office space and shifted to a hybrid or a fully remote model. As the impact from the pandemic started to subside and businesses gradually resumed normal operations, many companies maintained many of these changes. Companies, however, need to continue to evolve and consider that what worked during a shutdown is not necessarily indicative of what will work as they resume normal operations.

They need to find the right balance, which is something we work with our clients on.

— KEVIN BURNS, CITRIN COOPERMAN ADVISORS LLC

CRAIN’S: How are middlemarket companies handling the high inflation numbers we are experiencing?

KEVIN BURNS: Soaring costs for goods and services are affecting how middle-market businesses view their bottom line and the steps they need to take to succeed and grow. Our clients are addressing inflation through a combination of price increases and cost cutbacks. However, cost increases can only be made to the extent the market will bear. To remain competitive, many businesses will also reduce costs to preserve or sustain profitability. This creates an interesting dynamic because not all costs are ripe for trimming.

Rising wages, an unprecedented rate of employee resignations and an inability to find qualified talent are major issues aggravated by inflation. To combat this, companies are paying retention bonuses and-or giving significant raises to retain their workforce, which means they need to try to cut costs in other areas. We are working with our clients to identify those costs that can be cut and finding innovative ways to get more for less. For example, hedging commodity purchases, such as lumber for homebuilders.

CRAIN’S: How have middlemarket companies with international operations been affected by the war in Ukraine?

that the war has had on commercial enterprise. That said, from a business standpoint, many companies that previously had a presence in Russia have since cut ties to comply with established sanctions, as well as to show their support for Ukraine. Where possible, and in some cases where necessary, companies are moving their international operations into other countries, or at a minimum, exploring alternatives. The war has also contributed to the supply-chain issues, which has resulted in companies becoming more flexible and creative in managing their supplier relationships.

middle-market businesses are turning to? What are you seeing in the market?

CRAIN’S: Has there been a shift in the sources of capital

Private equity has also provided strategic direction. Through sophisticated

KEVIN BURNS: Private equity has definitely become a source of capital for middle-market firms. The level of private-equity investment that we are seeing is unprecedented and enables many of our clients to execute against aggressive growth strategies, including making strategic acquisitions; this has allowed them to expand their geographic footprints, grow their customer base and leverage operational synergies.

strategic planning and operational analysis, middle-market businesses can expand service offerings and product lines, identify and develop alternative processes, and use technology to make them more competitive.

Outside of private equity, many of our clients continue to work with middle market-friendly banks to access more traditional sources of financing, including lines of credit, term loans and asset-based loans, which will continue to be great sources of capital for the middle market.

FOCUS ON WHAT COUNTS

expansive resources

customized solutions

integrated approach

industry expertise

KEVIN BURNS: First and foremost, the humanitarian consequences of this war far exceed the negative impact

*National Center for the Middle Market.

entities, provide professional services in an alternative practice structure in accordance with applicable professional standards.

June 27, 2022 S1

THE MIDDLE MARKET KEEPS AN EYE ON GROWTH CRAIN’S: There have been an increasing number of transactions in which the working capital adjustment has been eliminated. Is this trend sustainable? When is it appropriate and what are the pros and cons?

GENE BARTON

Director Goulston & Storrs

Gene Barton is a corporate lawyer focusing on middlemarket merger and M&A transactions. His clients include private and public company sellers, private equity firms, strategic acquirers, entrepreneurs, and a broad range of technology companies.

Gene has over 30 years’ experience working with U.S. and international clients in a wide spectrum of industries including healthcare, technology, biotechnology, manufacturing, and retail. Gene has been lead counsel on more than $3 billion in M&A transactions over the past five years.

GENE BARTON: Eighty-seven percent of all merger-and-acquisition transactions over $30 million have working capital adjustments, according to the 2021 American Bar Association’s Deal Points Study.

Working capital adjustments ensure that the purchaser has sufficient working capital for successful company operations. Still, working capital provisions take an inordinate amount of time to fully negotiate.

Moreover, a significant portion of post-closing litigation involves working capital disputes. We have seen an increasing number of situations where the parties have agreed to forgo working capital adjustments altogether.

Buyers need to be careful as the absence of a post-closing adjustment could enable the seller to manipulate the timing of the payment of payables to its advantage. In many circumstances, the elimination of a working capital adjustment isn’t appropriate as the parties aren’t really in a position to settle on

“TRANSACTIONS IN WHICH THE SELLERS ROLL SOME OF THEIR EQUITY AND STAY ON IN MANAGEMENT ROLES ARE PARTICULARLY APPROPRIATE FOR INSURANCE, AS IT LESSENS THE CHANCE THAT THE NEW OWNER WILL HAVE POST-CLOSING CONFLICTS WITH THE MANAGEMENT TEAM.” — GENE BARTON, GOULSTON & STORRS important elements before closing. At a minimum, such an approach will only work when the target has a very consistent working capital profile.

Care should also be taken to put in place other contractual provisions that protect the buyer. In Europe, for example, buyers and sellers often agree upon the so-called lock box mechanism. In this scenario the parties agree to fix the target’s balance sheet and close on that basis with any downward variance treated as a reduction in purchase price.

CRAIN’S: How will the tightening economy affect buyers’ willingness to accept deals without indemnification and rely strictly on representation and warranty insurance?

GENE BARTON: Representation and warranty insurance is a type of insurance policy purchased in

Boston | New York | Washington, D.C.

connection with M&A transactions and covers breaches of certain representations and warranties in the purchase agreement. It is designed to provide flexibility by reducing or even eliminating the need for an indemnity escrow. It has now become fairly standard, particularly for private equity-backed sellers. Representing a seller, we almost always advocate for R&W insurance, particularly if the buyer is willing to pay the premiums.

There are some drawbacks for buyers using this approach, as R&W insurance does not cover known breaches, and it may be easier to recover from an escrow fund than it is from an insurance company. On balance, however, the market believes that the benefits of R&W insurance outweigh its costs. Transactions in which the sellers roll some of their equity and stay on in management roles are particularly appropriate for insurance, as it lessens the chance that the new owner will have post-closing conflicts with the management team.

R&W insurance is not a panacea, given increased premiums and some cases the absence of an insurer to offer coverage. In the tightening economy and M&A market, we anticipate private-equity firms will continue to push for R&W insurance while strategists and entrepreneurs become more wary of its costs. If the parties opt for R&W insurance, they need to make sure to fit the policy into the indemnification package of the purchase agreement and to make sure the target gets proper insurance with the correct coverages.

CRAIN’S: What is the market and consideration for noncompetition covenants? How deep into an organization should a buyer go?

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

goulstonstorrs.com

with may not have in place acceptable noncompetes. Companies that have been built through acquisitions may be particularly vulnerable as key managers from acquired businesses may be able to compete with the buyer.

Companies preparing for a transaction should study carefully their existing noncompetes and have in place a strategy for dealing with buyers.

CRAIN’S: Is the “no undisclosed liability representation” really necessary or is it the latest incarnation of the 10(b)-5 rep?

GENE BARTON: The 10(b)–5 rep in acquisition agreements died a slow, painful death in the past 10 years.

Representing a seller, it is difficult to accept such a broad representation, particularly in light of all of the other detailed representations contained in the purchase agreement that cover virtually all risks. Now the “no undisclosed liability representation” is taking on the same role as a 10(b)–5 rep, giving the buyer an essentially unbounded representation that all is good with the business. An increasing number of transactions have such a representation, so it is getting more difficult to oppose. With the market tightening, we expect the no undisclosed liability representation to become the norm.

If a seller does agree to such a representation, it should take care to use “ring fencing,” which means limiting specialized representation—in cases such as environmental matters, taxes or intellectual property—to the terms set forth in the representation.

Otherwise, a buyer can use the no undisclosed liability representation to get around specific limitations. .

GENE BARTON: An essential component of any merger or purchase agreement is getting noncompetition covenants from both the seller and shareholders who are receiving significant value in the transaction.

It is fairly well settled that such covenants are enforceable in the context of the sale of a business.

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Typically, going into a transaction, the target will have in place noncompetes with its senior management, but these will vary. This can present a significant dilemma to buyers: The people they might most be afraid of competing

S2 June 27, 2022 P013_015_CN_20220627.indd 14

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CHRIS NOBLE, CPA, CGMA

Partner, Leader of the Technology & Professional Services Groups Anchin

Chris Noble, CPA, is an Accounting and Advisory Partner at Anchin with 20+ years of experience. He is the Leader of the Technology Group and Professional Services Group and provides accounting, business and tax planning services to entrepreneurial, venture capital and private equity-backed businesses ranging from startups to growing and established companies. Chris works closely with companies and their founders, advising them on tax strategies, complex equity and debt considerations, M&A and transaction advisory and GAAP analysis.

CRAIN’S: As business valuations in many industries have leveled off and investors are sitting on dry powder, what are some ways companies can maximize their cash on hand and prepare for future funding?

CHRIS NOBLE: In the current climate, it is important for companies to effectively manage their cash flow, as valuations in the past year have endured a leveling off and have even seen stark declines in certain sectors.

As investors slow down funding and re-strategize their portfolio allocations, companies should focus on maintaining their cash runway for as long as they can, rather than reaching for growth. It is estimated that a downturn in the economy could last at least 12 to 18 months, which could result in a delay in funding opportunities.

Companies that want to manage their cash flow can take a number of steps.

They can manage processes, limit unnecessary software subscriptions, evaluate marketing campaigns and spend, and minimize nonessential variable costs. Working with both essential and nonessential vendors on extended payment terms can help.

They may want to lower labor costs by introducing flex-time or part-time

these companies do not want to manage such business operations.

Businesses want to focus on their core services and have found that outsourcing to high-level professionals to handle the “ancillary” operations allows for superior expertise and

method that requires two or more authentication factors to verify a user’s identity—can stop up to 80% to 90% of all attacks. Using secure passwords is essential to prevent network intrusions and makes it harder for a hacker to penetrate infrastructure. Upgrading

work schedules, making reductions in commission draws and eliminating internship programs. Some businesses may find it wise to seek alternative loans or bridge loans, providing a temporary cash flow until valuations improve.

As the pandemic carried on, many businesses began to invest in new technologies. We have seen a significant increase in research-anddevelopment initiatives, including a race for new proprietary software and the use of the blockchain. With

CRAIN’S: In 2021 America experienced an overwhelming number of people quitting their jobs, which is now being referred to as the “Great Resignation.” The shortage in the labor markets has brought on a unique set of challenges, including competition for talent, rising wages and a shift in benefits. What are some of the opportunities and possible benefits that have come out of this shift in employment?

“IN THE CURRENT CLIMATE, IT IS IMPORTANT FOR COMPANIES TO EFFECTIVELY MANAGE THEIR CASH FLOW, AS VALUATIONS IN THE PAST YEAR HAVE ENDURED A LEVELING OFF AND HAVE EVEN SEEN STARK DECLINES IN CERTAIN SECTORS.”

CHRIS NOBLE: The shift in the employment market has allowed businesses to re-evaluate their current landscape and strategize for a better, more resilient future. As the work environment has changed from inperson to virtual, employers are now focusing on transitioning to a hybrid model, which some find supports a better work-life balance. With a portion of the work done remotely, the talent pool has significantly expanded, with companies hiring outside of the states where they have offices and recruiting international talent. As a result, there is often an opportunity for a reduction in labor costs for certain functions.

Another advantage of the hybrid workplace is the opportunity to decrease workplace square footage, and institute a flexible seating model, which allows for a significant reduction in overhead costs. In addition, many companies are investing in satellite offices, allowing for them to field expanded teams in new markets, and providing them the opportunity to widen their customer base and revenues in those markets.

CRAIN’S: How has the adoption of technology grown in the past two years and how are companies using technology to expand their business models?

CHRIS NOBLE: It is no secret that the pandemic greatly accelerated the use of technology across every industry. As the workplace shifted from an in-person to a virtual environment, businesses were forced to adapt by using various software for everyday tasks, such as videoconferencing and webinars.

Workspaces were quickly transitioned online, and business operations started to eliminate manual processes and rely on automated ones.

— CHRIS NOBLE, ANCHIN the R&D tax incentive, companies are further incentivized to develop innovative products and services, such as software and applications to accelerate and boost their service offerings.

There has been a steady increase of large corporations, such as Cisco, adopting the blockchain to better manage and solve supply-chain challenges. This has forced middlemarket companies to bolster and upgrade their own internal processes and systems, including the adoption of blockchain technology.

In addition, many companies have begun to outsource services to human resource and payroll providers and CFO-accounting providers, because

a better-integrated technology experience all around.

CRAIN’S: There has been a tremendous uptick in cybersecurity breaches and unwarranted cyberattacks since the onset of the pandemic. How can companies proactively avoid attacks and breaches?

CHRIS NOBLE: Small and mediumsized businesses are typically the most vulnerable to cyber-attacks as they often have fewer resources and staffing to prepare for, defend against and recover from a ransomware attack.

Fortunately, there are many steps they can take to stay safe. Multifactor authentication—a security

legacy systems and patching can reduce a company’s vulnerability to attacks. Reducing and securing active directory—a set of privileged accounts and groups—can greatly enhance their security posture. And regularly simulating a cyberattack, a method known as a penetration test, can help them make sure their security solutions work if someone tries to get around them. .

When your financial future matters most, Anchin helps you meet your challenges and succeed with vision, insight and possibilities.

Scan here to learn more at anchin.com

Chris Noble CPA, CGMA

A C C O U N TA N T S & A D V I S O R S

Partner, Leader of the Technology & Professional Services Groups chris.noble@anchin.com C: 917-882-7684

June 27, 2022 S3 P013_015_CN_20220627.indd 15

6/23/22 10:42 AM

ON POLITICS

Wimpy primary shows Hochul amassing power The governor’s rivals appear slated to go down in defeat, which bodes ill for New York progressives

T

he question going into this lic advocate, entered the race with week is not whether Kathy much more fanfare. He is a favorite Hochul, the incumbent of progressive nonprofits and orgagovernor, will win her nizations such as the Working Democratic primary. It’s whether Families Party. He enjoys support she’ll be able to prove to her rivals— from both white liberals and Black progressive organizations and moderates, a rare combination in activists in particular—she doesn’t urban politics. While the Democratic Socialists of America aren’t have to fear them all that much.

Her fundraising and polling ad- supporting him (or anyone) for governor this time vantages appear enoraround, he is a mainstem mous enough to easily politician who has a dispatch her two chalwarm relationship with lengers, Jumaane Wilyoung leftists. Had he deliams and Tom Suozzi, on cided to enter the mayorJune 28. Suozzi, a Long al race in 2021, he might Island congressman, is have defeated Eric Adrunning at her from the ams. right, trying to seize a Instead, Williams took lane against the moderate another run at statewide governor that isn’t nearly ROSS BARKAN office. Four years ago, he wide enough to hand him ran against Hochul when a victory. He’s spent several million dollars on TV ads lam- she was Andrew Cuomo’s lieubasting Hochul for allegedly being tenant governor. At the time, Hosoft on crime, but it’s unclear how chul was a little-known politician much support he’ll have beyond from the Buffalo area riding the his suburban base. Democratic coattails of Cuomo’s juggernaut.

Party leaders urged him to drop his She won, but by less than 10 points, bid and run for re-election in the convincing Williams and the WorkHouse, to no avail. His political ca- ing Families Party she would be vulnerable if he ran again. reer might be over.

The problem was that Williams Williams, the New York City pub-

and the Working Families Party, the left-wing third party made up of activist groups and a number of labor unions, never assembled a viable campaign infrastructure to take on Hochul. The new governor, who took over for Cuomo after he resigned in disgrace in August 2021, quickly tapped his old donors to amass a huge campaign war chest.

Hochul has raised more than $20 million and has been flooding New York with TV and digital ads. Much of this was inevitable—a New York governor who is also a competent politician will raise money quickly—and the professional left appeared to have little in the way of an answer to this heavy spending.

How did the Left get here?

Like Suozzi, Williams appears slated to go down in defeat, despite his demographic advantages and obvious charisma. He is not raising nearly enough money, with less than $200,000 in the bank as of a few weeks ago. While he has faced serious personal challenges—his wife was diagnosed with cancer and he offered to drop out of the race, according to The New York Times—the Working Families Party

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ASKED & ANSWERED

sional service firms, led by accountants and management consultants.

In selecting the 86 honorees for this year’s list of Notable Women in Accounting and Consulting, Crain’s sought to spotlight the accomplished metropolitan area professionals and problem-solvers who keep businesses churning. The talented individuals presented here are a diverse group,

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

DOSSIER

PAT WANG Healthfirst

WHO SHE IS President and CEO, Healthfirst AGE 66 BORN Jersey City RESIDES Manhattan EDUCATION Bachelor’s in history and East Asian studies, Princeton University; J.D., New York University School of Law FAMILY MATTERS Wang is married and has one son who lives in Brooklyn.

GLOBAL TIES She has lived in Croatia, Taiwan as well as China, where she had more than 20 first cousins.

FLARE FOR FOOD Wang has become reacquainted with the joy of How does Healthfirst contribute to value-based care? cooking as a result of the What you understand as profit in another health insurance company’s balance pandemic. sheet at Healthfirst is contractually-driven surplus that goes back to the delivery EYE ON MEDICAID About system. Eighty percent of the premiums we get for medical services flows through three-quarters of value-based payment arrangements, which means that providers benefit when Healthfirst’s members are there is a surplus in the premium. If less money is spent on fee-for-service claims, Medicaid beneficiaries. The the surplus is part of the contractually-obligated payment stream. insurer’s initial response to the crisis included I SEPTEMBER 28, 2020 I CRAINSNEWYORK.COM What has that meant during the pandemic? having its care managers For April through June, we are distributing $250 million in those surpluses make sure members had [about double that of the same period last year], and we’ve expedited the medicine and durable medical calculation and reconciliation of those amounts to get them out the door faster equipment to stay at home because the delivery system really needs it. experts in tax regulation, audit, estate administration, forensic accounting, Few qualities are more vital to the health of any business safely. than financial Why are value-based payments vital now and in normal times?

BUDGET CUTS Wang says the organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency.

In the best of times, we have always been trying to push for this model because magnitude of the state’s has to thekeep value ofhealthy both and been more strongly Medicaid felt thancuts—instituted in recent structure. They represent an extraordinary group of professionals from it aligns the incentivesRarely around trying people avoiding unnecessary care. The providers are aligned with that goal because they benefit to pare back on spending firms of varying size and renown. months. From stress-tested balance sheets to fast-changing regulations, from it if they can reduce avoidable care. Consider Covid-19 to be like a war.

CRAINSNEWYORK.COM I SEPTEMBER 28, 2020 I growth—is devastating.

“Cuts In war times, the model been a lifesaver because there to is this artificial and has reconfigured supply chains “new normal” working arrangements, to us as a Medicaid plan are To find these honorees, Crain’s consulted with trusted sources in the depression of utilization, and that’s why the providers have lost so much cuts to ” business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest ofhospitals. businesses.

P

INTERVIEW BY JENNIFER HENDERSON

at Wang, president and CEO of Healthfirst, a nonprofit insurer formed by a group of health care systems, had been working to advance value-based care long before the pandemic. The concept involves paying hospitals and physicians based on their patients’ outcomes rather than on the volume of services they provide. Now, as health care providers face unprecedented financial strain due to the Covid-19 crisis, Wang says such payment arrangements are more critical than ever. Not only do they improve the quality of care for patients—including the 1.5 million plan members Healthfirst serves throughout the city, Long Island and surrounding areas—but they also generate fiscal benefit for the facilities, practices and health centers that serve them.

York metropolitan area were rigorously vetted. Ultimately, each of the accounting and consulting notables was chosen for her career achievements and involvement in industry and community organizations—and at times her efforts to help New York rebound from the coronavirus.

Read their biographies and learn how the members of this remarkable cohort keep the gears of business whirling.

money—their revenue has dried up. But because we have these risk contracts, the surplus that is there, that’s what gone out door to them.

Standing tallhaswithin thisthechaotic breach are the

foot soldiers of profes- particular. The nominations submitted by individuals and firms in the New Few qualities are more vital to the health of any business than financial experts in tax regulation, audit, estate administration, forensic accounting,

What happens when patients againfirms, begin seeking York metropolitan area were rigorously vetted. Ultimately, each of the acsional service led by services? accountants and management consultants. organizational transformation, advisory services, fundraising and business equilibrium and organizational We do see utilization coming back, and we have been encouraging our members to efficiency. get needed care because Instuff selecting the to86seehonorees forbounce this back year’s list of orNotable Women people have put a lot of off. We have whether the is gigantic it just brings thingsin back counting and consulting notables was chosen for her career achievements Rarely haspattern, the value ofregular both incentives been more strongly felt than in recent structure. They represent an extraordinary group of professionals from to a steady state. IfAccounting we go back toand a more normal utilization thento thespotlight of trying to align and involvement in industry and community organizations—and at times Consulting, Crain’s sought the accomplished around good preventive care and avoiding unnecessary just kick in. balance sheets to fast-changing regulations, firms of varyingI size and renown. months. care, Fromthey stress-tested CRAINSNEWYORK.COM SEPTEMBER 28, 2020 I

g Director and Communications, Media and Technology Northeast Business Leader

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metropolitan area professionals and problem-solvers who keep business-

LAURA PETERSON

To find these honorees, Crain’s consulted with trusted sources in the

es churning. The talented individuals presented here are a diverse group,

Read their biographies and learn how the members of this remarkable cohort keep the gears of business whirling.

LAURA PETERSONskilled at resourceful innovation and disruptive thinking. These women are Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved.

Further duplication without permission is prohibited. #NB20080

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

CRAINSNEWYORK.COM I OCTOBER 26, 2020 I

ASKED ANSWERED DOSSIER Laura & Peterson’s résumé lists a whopping 10 positions she’s

LAURA PETERSON WHO SHE IS President and CEO, PAT WANG held at theHealthfirst multinational professional services company Healthfirst

P

Managing Director and Communications, Media and Technology Northeast Business Leader

66 her current role as Accenture since joining the firm in 2000.AGEIn BORN Jersey City at Wang, president and CEO of Healthfirst, a nonprofit Accenture insurer formed by a business group of health care systems, the Northeast lead forhadcommunications, RESIDES Manhattan media and been working to advance value-based care long before the EDUCATION Bachelor’s in history pandemic. The concept involves paying hospitalsladder and physi- climber technology, the enterprising over a team and East presides Asian studies, Princeton cians based on their patients’ outcomes rather than on the University; J.D., New York University Laura Peterson’s résumé lists aof Law whopping 10 positions she’s volume of servicesprofessionals. they provide. Now, as health care providers face Schoolwith of 3,000 Peterson is charged managing a $750 unprecedented financial strain due to the Covid-19 crisis, Wang says FAMILY MATTERS Wangservices is married and company held at the than multinational professional such payment arrangements are more criticalManaging ever. Not only do Director and Communications, Media and Technology Northeast Business Leader million profit-and-loss statement for clients inwho the has one son lives in Brooklyn. they improve the quality of care for patients—including the 1.5 milAccenture since joining theGLOBAL firmTIESinShe2000.

InCroatia, her current role as has lived in lion plan members Healthfirst serves throughout as the city, Long Island aforementioned sectors well as the high Taiwan tech as well assector.

China, wherePeterson she Accenture and surrounding areas—but they also generate fiscal benefit for the more than 20 first cousins. the Northeast business leadhadfor communications, media and facilities, practices and health that serve leaders them. works with key centers business amongFLARE more than clients and FOR FOOD Wang40 has become the joy of technology, the enterprisingreacquainted ladderwithclimber presides over a team How does Healthfirst contribute to value-based care?

Laura Peterson’s résumé within Accenture’s global management structure.

Since 2017, she 10 positions she’s cooking as a resultlists of the a whopping What you understand as profit in another health insurance company’s balance pandemic. of 3,000 professionals.

Peterson is charged with managing a $750 sheet at Healthfirst surplus that goes tothe the delivery held at multinational professional company has beenis contractually-driven a board adviser toback Fairygodboss, online that EYE ONan MEDICAID About platformservices system. Eighty percent of the premiums we get for medical services flows through three-quarters of millionmeans profit-and-loss value-based payment arrangements, that providers benefit when statement for clients in the Accenture since joining the firm in 2000. In her current role as seeks to elevate which women in the workplace.

Healthfirst’s members are there is a surplus in the premium. If less money is spent on fee-for-service claims, Medicaid beneficiaries. The aforementioned the surplus is part of the contractually-obligated payment stream.sectors as well as the high tech sector. Peterson insurer’s initial response media and the Northeast business lead for communications, to the crisis included What has that meant during the pandemic? works with key business leaders among more than 40 clients and having its care managers For April through June, we are distributing $250 million in those surpluses from technology, the enterprising ladder climber presides over a team Reprinted with permission Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. make sure members had [about double that of the same period last year], and we’ve expedited theFurther duplication without permission is prohibited. #NB20073 Since 2017, she within Accenture’s global management structure. medicine and durable medical calculation and reconciliation of those amounts toof get them out the professionals. door faster 3,000 equipment Peterson to stay at home is charged with managing a $750 because the delivery system really needs it. has been a board adviser tosafely.

Fairygodboss, an online platform that million Why are value-based payments vital now and in normal times? profit-and-loss statement for clients in the BUDGET CUTS Wang says the In the best of times, we have always been to push for this model becausein the workplace. seeks totrying elevate women magnitude of the state’s it aligns the incentives around trying to keep people healthy and avoiding aforementioned sectors as well as the high tech sector. Peterson Medicaid cuts—instituted unnecessary care. The providers are aligned with that goal because they benefit to pare back on spending from it if they can reduce avoidable care. Considerworks Covid-19 to be like a war. with key business leaders growth—is devastating.

“Cuts among more than 40 clients and In war times, the model has been a lifesaver because there is this artificial to us as a Medicaid plan are depression of utilization, and that’s why the providers have lost so much Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. cuts global to hospitals. within Accenture’s Further”management duplication without permission structure. is prohibited. #NB20073Since 2017, she money—their revenue has dried up. But because we have these risk contracts, the surplus that is there, that’s what has gone out the door to them. has been a board adviser to Fairygodboss, an online platform that What happens when patients again begin seeking services?

We do see utilization coming back, and we have been encouraging our members to get needed care because seeks to elevate women in the workplace. people have put a lot of stuff off. We have to see whether the bounce back is gigantic or it just brings things back

INTERVIEW BY JENNIFER HENDERSON

Rarely has the value of both been more strongly felt than in recent structure. They represent an extraordinary group of professionals from ccounting and Consulting, Crain’s sought to spotlight the accomplished and involvement in industry and community organizations—and at times and renown. months. From stress-tested balance sheets to fast-changing regulations, firms of varyingI size 28, 2020 I to help New York rebound SEPTEMBER from the coronavirus. etropolitan area professionals and problem-solvers who keep business- her effortsCRAINSNEWYORK.COM To find these honorees, Crain’sInc.consulted with trusted sources in the and reconfigured supply chains to “new normal” arrangements, Reprinted working with permission Crain’s New York Business.

2020 Crain rights reserved.

Readfrom their biographies and©learn howCommunications the members ofAllthis remarkable s churning. The talented individuals presented here are a diverse group, duplication without permission is prohibited. #NB20073 business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest of Further businesses. killed at resourceful innovation and disruptive thinking. These women are cohort keep the gears of business whirling.

The nominations by individuals andadministration, firms in the New Standing tall within thisqualities chaoticare breach soldiersofofany profesexperts insubmitted tax regulation, audit, estate forensic accounting, Few moreare vitalthetofoot the health businessparticular. than financial York metropolitan organizational area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management transformation, advisory services, fundraising and business equilibrium and organizational efficiency.consultants. counting and consulting notables chosenan forextraordinary her career achievements In selecting the 86 honorees for this list been of Notable structure.

They was represent group of professionals from Rarely has the valueyear’s of both more Women stronglyinfelt than in recent andregulations, involvement infirms industry and community organizations—and at times Accounting and Consulting, Crain’s sought to spotlight the accomplished of varying size and renown. months. From stress-tested balance sheets to fast-changing efforts to help New from theCrain’s coronavirus. metropolitan area and professionals andsupply problem-solvers businessTo York find rebound these honorees, consulted with trusted sources in the reconfigured chains to who “newkeep normal” working her arrangements, Read their biographies learn how theand members this remarkable es churning. The talented individuals presented here are aeven diverse group, of businesses. businessand world in general in the of accounting and consulting realms in the Covid-19 pandemic has challenged the strongest cohort the gears of business whirling. submitted by individuals and firms in the New skilled at resourcefulStanding innovationtalland disruptive thinking.

Theseare women aresoldiers particular.

The nominations within this chaotic breach the foot of keep profes-

URA PETERSON

and reconfigured supply chains to “new normal” working arrangements,

What challenges face the broader insurance Read their biographies learn how theand members this remarkable esindustry? churning. The talented individuals presented here are aeven diverse group, of businesses. businessand world in general in the of accounting and consulting realms in the Covid-19 pandemic has challenged the strongest Balancing the needs and expectations of consumers who need and deserve good health care coverage, expandcohort the gears of business whirling. submitted by individuals and firms in the New skilled at resourceful innovation disruptive thinking.

Theseare women aresoldiers particular.

The nominations ing access however we can and doing it within an increasingly constrained economic environment. is Standing talland within this This chaotic breach the foot of keep profesespecially true with Medicaid, where the state’s budget situation is dire at the same time as people’s needs York metropolitan area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management consultants. are increasing. Given that Healthfirst has over 1 million Medicaid members, the potential impact of the state’s budget is especially concerning. For me, our priority has to be enabling many people possible to havefor full this year’s list of Notable Women in counting and consulting notables was chosen for her career achievements Inasselecting theas86 honorees access to high-quality care, and it’s going to be a challenge to figure out how to do that in this economic environAccounting Crain’s sought to spotlight the accomplished and involvement in industry and community organizations—and at times ment. Insurers also need to be mindful of the hurt being experienced by so muchand of theConsulting, provider delivery system.

The value of our products relies on having strong doctors, hospitals and communityarea resources.

Balancing all of problem-solvers who keep businessher efforts to help New York rebound from the coronavirus. metropolitan professionals and this in a financially viable way is going to be a challenge. ■

LAURA PETERSON

sional service firms, led by accountants and management consultants.

In selecting the 86 honorees for this year’s list of Notable Women in Accounting and Consulting, Crain’s sought to spotlight the accomplished metropolitan area professionals and problem-solvers who keep businesses churning. The talented individuals presented here are a diverse group, skilled at resourceful innovation and disruptive thinking. These women are

her efforts to help New York rebound from the coronavirus.

To find these honorees, Crain’s consulted with trusted sources in the andpandemic? reconfigured supply chains to “new normal” working arrangements, How can the city safely bounce back from the Read their biographies and learn how the members of this remarkable es churning.

Thehealth talented individuals here are social a diverse group, Continue doubling down on the public measures already inpresented place: wearing masks, distancing and business world in general and in the accounting and consulting realms in the Covid-19 pandemic has challenged even the strongest of businesses. hand sanitation. We know what to do. But I think a singularand focus on getting the schoolsThese open for full learning skilled at resourceful innovation disruptive thinking. women are cohort keep the gears of business whirling. should top the list of what we are aiming for. WeStanding should measure our Few success against are that goal. are As anthe employer, The nominations by individuals andadministration, firms in the New tall within thisqualities chaotic breach soldiersofofany profesexperts insubmitted tax regulation, audit, estate forensic accounting, more vital tofoot the health businessparticular. than financial I can tell you that we will not be able to get fully back to work until the thousands of employees with school-age York metropolitan organizational area were rigorously vetted. Ultimately, each of the acsional service firms,allled by accountants and management consultants. transformation, advisory services, fundraising and business and organizational children can get their kids back into school. It’s of course better forequilibrium children and particularly critical forefficiency. poorer children. The city’s economic recovery is going to on howthe quickly and how well we getyear’s that done counting and consulting notables chosenan forextraordinary her career achievements Inhinge selecting 86 honorees forcan this listsobeen ofthat Notable structure.

They was represent group of professionals from Rarely has the value of both more Women stronglyinfelt than in recent parents can resume their normal lives too. As a longtime resident of the city who has watched us recover from andregulations, involvement infirms industry and community organizations—and at times Accounting Consulting, Crain’s sought to spotlight the accomplished recession, 9/11 and Hurricane Sandy, I believe in the city’sand ability to bounce back against the odds.

But this sheets of varying size and renown. months.

From stress-tested balance to fast-changing time is going test all of us, and we should bemetropolitan sober about thearea needprofessionals for everyone to contribute to the solution. who keep businessher efforts to help New York rebound from the coronavirus. and problem-solvers

eterson’s résumé lists a whopping 10 positions she’s he multinational professional services company Managing Director and Communications, Media and Technology Northeast Business Leader e since joining the firm in 2000. In her current role as Accenture heast business lead for communications, media and gy, the enterprising ladder climber presides over a team Laura Peterson’s résumé lists a whopping 10 positions she’s professionals. Peterson is charged with managing a $750 held at the multinational professional services company andinCommunications, Media and Technology Northeast Business Leader rofit-and-lossManaging statementDirector for clients the Accenture since joining the firm in 2000. In her current role as ntioned sectors as well as the high tech sector. Peterson Accenture the Northeast business lead for communications, media and th key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Laura Peterson’sstructure. résumé lists a whopping ccenture’s global management Since 2017, she 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held the multinational professional company a board adviser to at Fairygodboss, an online platformservices that million profit-and-loss statement for clients in the since joining the firm in 2000. In her current role as elevate womenAccenture in the workplace. aforementioned sectors as well as the high tech sector. Peterson the Northeast business lead for communications, media and SEPTEMBER 28, 2020 I works with key business CRAINSNEWYORK.COM leaders amongI more than 40 clients and technology, the enterprising ladder climber presides over a team Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved.

Further duplication without permission is prohibited. #NB20073 Since 2017, she within Accenture’s global management structure. of 3,000 professionals. Peterson is charged with managing a $750 in tax regulation, audit, estate administration, forensic accounting, Few has qualities are more to the health of any business than financial experts been a vital board adviser to Fairygodboss, an online platform that million profit-and-loss statement for clients in the organizational transformation, advisory services, fundraising and business quilibrium and organizational efficiency. seeks to elevate women in the workplace. represent an sector. extraordinaryPeterson group of professionals from Rarely has the value aforementioned of both been more strongly sectors felt than in as recent wellstructure. as theTheyhigh tech onths. From stress-tested balance sheets to fast-changing regulations, firms of varying size and renown.

CRAINSNEWYORK.COM I SEPTEMBER 28, 2020 works with key business leaders among more than 40 Iclients and To find these honorees, Crain’s consulted with trusted sources in the nd reconfigured supply chains to “new normal” working arrangements, Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. within Accenture’s structure.

Since 2017, she realms in business world in general #NB20073 and in the accounting and consulting e Covid-19 pandemic has challenged even the strongestglobal of businesses.

Further management duplication without permission is prohibited. particular. The nominations submittedplatform by individuals and firms in the New Standing tall within this chaotic breachaare the foot adviser soldiers of profeshas been board tobusiness Fairygodboss, online that experts in tax regulation, audit, estate administration, forensic accounting, Few qualities are more vital to the health of any than financial an York metropolitan area were rigorously vetted. Ultimately, each of the aconal service firms, led by accountants and management consultants. organizational transformation, advisory services, fundraising and business equilibrium organizational efficiency. seeksand in the counting and consulting notables was chosen for her career achievements In selecting the 86 honorees forto thiselevate year’s list ofwomen Notable Women in workplace.

York metropolitan area were rigorously vetted. Ultimately, each of the accounting and consulting notables was chosen for her career achievements and involvement in industry and community organizations—and at times her efforts to help New York rebound from the coronavirus.

Read their biographies and learn how the members of this remarkable cohort keep the gears of business whirling.

naging Director and Communications, Media and Technology Northeast Business Leader

LAURA PETERSON

to a steady state. If we go back to a more normal utilization pattern, then the regular incentives of trying to align around good preventive care and avoiding unnecessary care, they just kick in.

enture

LAURA PETERSON

ura Peterson’s résumé lists a whopping 10 positions she’s d at the multinational professional services company Managing Director and Communications, Media and Technology Northeast Business Leader enture since joining the firm in 2000. In her current role as Accenture Northeast business lead for communications, media and hnology, the enterprising ladder climber presides over a team Laura Peterson’s résumé lists a whopping 10 positions she’s 000 professionals. Peterson is charged with managing a $750 held at the multinational professional services company andinCommunications, Media and Technology Northeast Business Leader ion profit-and-lossManaging statementDirector for clients the Accenture since joining the firm in 2000. In her current role as ementioned sectors as well as the high tech sector. Peterson Accenture the Northeast business lead for communications, media and ks with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Laura Peterson’sstructure. résumé lists a whopping hin Accenture’s global management Since 2017, she 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held the multinational professional company been a board adviser to at Fairygodboss, an online platformservices that million profit-and-loss statement for clients in the since joining the firm in 2000. In her current role as ks to elevate womenAccenture in the workplace. aforementioned sectors as well as the high tech sector. Peterson the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved.

Further duplication without permission is prohibited. #NB20073 Since 2017, she within Accenture’s global management structure. of 3,000 professionals. Peterson is charged with managing a $750 has been a board adviser to Fairygodboss, an online platform that million profit-and-loss statement for clients in the seeks to elevate women in the workplace. aforementioned sectors as well as the high tech sector. Peterson works with key business leaders among more than 40 clients and Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. within Accenture’s global Further management duplication without permission structure. is prohibited. #NB20073Since 2017, she has been a board adviser to Fairygodboss, an online platform that seeks to elevate women in the workplace.

LAURA PETERSON

Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved.

Further duplication without permission is prohibited. #NB20073

spent months in 2021 raising money and building up name recognition, even Delgado may have been beatable. Instead, she’s an underdog, and the Hochul-Delgado ticket may feel little reason to fear the left in the near future. Top priorities like good cause eviction and legislation to create new sources of renewable energy may die on the vine again. Elections always have consequences.

Quick takes ● The cuts Mayor Eric Adams and the City Council enacted to the Department of Education aren’t very large, but they constitute terrible optics for a new mayor who is quickly losing support. ● Can Adams get his job approval rating back up? Mayor Bill de Blasio was probably never as popular as he was in his first year. The road may only get harder for the former Brooklyn borough resident. ● It’s good that outdoor dining appears here to stay. New York City is joining Europe on that front, as it should have a while ago. ■

Ross Barkan is an author and journalist in New York City.

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

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s

PROMOTE. Why not?PROMOTE.

CRAINSNEWYORK.COM I OCTOBER 26, 2020 I

CRAINSNEWYORK.COM I SEPTEMBER 28, 2020 I

lities are more vital to the health of any business than financial experts in tax regulation, audit, estate administration, forensic accounting, organizational transformation, advisory services, fundraising and business m and organizational efficiency. has the value of both been more strongly felt than in recent structure. They represent an extraordinary group of professionals from om stress-tested balance sheets to fast-changing regulations, firms of varying size and renown.

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

The nominations by individuals andadministration, firms in the New Standing tall within thisqualities chaoticare breach soldiersofofany profesexperts insubmitted tax regulation, audit, estate forensic accounting, Few moreare vitalthetofoot the health businessparticular. than financial York metropolitan organizational area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management transformation, advisory services, fundraising and business equilibrium and organizational efficiency.consultants. counting and consulting notables chosenan forextraordinary her career achievements In selecting the 86 honorees for this list been of Notable structure.

They was represent group of professionals from Rarely has the valueyear’s of both more Women stronglyinfelt than in recent andregulations, involvement infirms industry and community organizations—and at times Accounting and Consulting, Crain’s sought to spotlight the accomplished of varying size and renown. months. From stress-tested balance sheets to fast-changing efforts to help New from theCrain’s coronavirus. metropolitan area and professionals andsupply problem-solvers businessTo York find rebound these honorees, consulted with trusted sources in the reconfigured chains to who “newkeep normal” working her arrangements, Read their biographies learn how theand members this remarkable es churning. The talented individuals presented here are aeven diverse group, of businesses. businessand world in general in the of accounting and consulting realms in the Covid-19 pandemic has challenged the strongest cohort the gears of business whirling. submitted by individuals and firms in the New skilled at resourcefulStanding innovationtalland disruptive thinking.

Theseare women aresoldiers particular.

The nominations within this chaotic breach the foot of keep profes-

has not stepped in to buoy his campaign. For an institutional left that has competed statewide before, there is just no good reason for Williams to be coming into a primary with so little cash. It speaks, ultimately, to a lack of organization and political will.

The lieutenant governor’s race offers more hope. Ana Maria Archila, a high-profile activist, was recruited into the race in March to take on Hochul’s damaged running mate, Brian Benjamin. Benjamin resigned after being indicted on corruption charges and Archila, who is a close ally of Alexandria Ocasio-Cortez's, appeared to have a clear shot at a primary victory. Hochul, however, had the state Legislature change the election law so Benjamin could be dumped from the ballot and replaced with Antonio Delgado, a congressman from the Hudson Valley. Delgado has run a low-key, unimpressive campaign thus far, but he banked more than $2 million and has won competitive elections before. Archila has her work cut out for her.

If Delgado easily brushes away Archila, it’s worth asking why she entered the race so late. Had she

Why not?

For more information contact: Lauren Melesio For more information contact: Director, Reprints & Licensing Lauren Melesio lmelesio@crain.com •Why (212) 210-0707 not?

Director, Reprints & Licensing lmelesio@crain.com • (212) 210-0707 For more information contact: CRAINSNEWYORK.COM I OCTOBER 26, 2020 I

ASKED & ANSWERED

PAT WANG Healthfirst

P

INTERVIEW BY JENNIFER HENDERSON

at Wang, president and CEO of Healthfirst, a nonprofit insurer formed by a group of health care systems, had been working to advance value-based care long before the pandemic. The concept involves paying hospitals and physicians based on their patients’ outcomes rather than on the volume of services they provide. Now, as health care providers face unprecedented financial strain due to the Covid-19 crisis, Wang says such payment arrangements are more critical than ever. Not only do they improve the quality of care for patients—including the 1.5 million plan members Healthfirst serves throughout the city, Long Island and surrounding areas—but they also generate fiscal benefit for the facilities, practices and health centers that serve them.

How does Healthfirst contribute to value-based care?

What you understand as profit in another health insurance company’s balance sheet at Healthfirst is contractually-driven surplus that goes back to the delivery system. Eighty percent of the premiums we get for medical services flows through value-based payment arrangements, which means that providers benefit when there is a surplus in the premium. If less money is spent on fee-for-service claims, the surplus is part of the contractually-obligated payment stream.

What has that meant during the pandemic?

For April through June, we are distributing $250 million in those surpluses [about double that of the same period last year], and we’ve expedited the calculation and reconciliation of those amounts to get them out the door faster because the delivery system really needs it.

Why are value-based payments vital now and in normal times?

In the best of times, we have always been trying to push for this model because it aligns the incentives around trying to keep people healthy and avoiding unnecessary care. The providers are aligned with that goal because they benefit from it if they can reduce avoidable care. Consider Covid-19 to be like a war.

In war times, the model has been a lifesaver because there is this artificial depression of utilization, and that’s why the providers have lost so much money—their revenue has dried up. But because we have these risk contracts, the surplus that is there, that’s what has gone out the door to them.

DOSSIER

WHO SHE IS President and CEO, Healthfirst AGE 66 BORN Jersey City RESIDES Manhattan EDUCATION Bachelor’s in history and East Asian studies, Princeton University; J.D., New York University School of Law FAMILY MATTERS Wang is married and has one son who lives in Brooklyn.

GLOBAL TIES She has lived in Croatia, Taiwan as well as China, where she had more than 20 first cousins.

FLARE FOR FOOD Wang has become reacquainted with the joy of cooking as a result of the pandemic.

EYE ON MEDICAID About three-quarters of Healthfirst’s members are Medicaid beneficiaries. The insurer’s initial response to the crisis included having its care managers make sure members had medicine and durable medical equipment to stay at home safely.

BUDGET CUTS Wang says the magnitude of the state’s Medicaid cuts—instituted to pare back on spending growth—is devastating. “Cuts to us as a Medicaid plan are cuts to hospitals.”

What happens when patients again begin seeking services?

We do see utilization coming back, and we have been encouraging our members to get needed care because people have put a lot of stuff off. We have to see whether the bounce back is gigantic or it just brings things back to a steady state. If we go back to a more normal utilization pattern, then the regular incentives of trying to align around good preventive care and avoiding unnecessary care, they just kick in.

PROMOTE.

How can the city safely bounce back from the pandemic?

Continue doubling down on the public health measures already in place: wearing masks, social distancing and hand sanitation. We know what to do. But I think a singular focus on getting the schools open for full learning should top the list of what we are aiming for. We should measure our success against that goal. As an employer, I can tell you that we will not be able to get fully back to work until the thousands of employees with school-age children can get their kids back into school. It’s of course better for all children and particularly critical for poorer children. The city’s economic recovery is going to hinge on how quickly and how well we can get that done so that parents can resume their normal lives too. As a longtime resident of the city who has watched us recover from recession, 9/11 and Hurricane Sandy, I believe in the city’s ability to bounce back against the odds. But this time is going test all of us, and we should be sober about the need for everyone to contribute to the solution.

What challenges face the broader insurance industry?

Balancing the needs and expectations of consumers who need and deserve good health care coverage, expanding access however we can and doing it within an increasingly constrained economic environment. This is especially true with Medicaid, where the state’s budget situation is dire at the same time as people’s needs are increasing. Given that Healthfirst has over 1 million Medicaid members, the potential impact of the state’s budget is especially concerning. For me, our priority has to be enabling as many people as possible to have full access to high-quality care, and it’s going to be a challenge to figure out how to do that in this economic environment. Insurers also need to be mindful of the hurt being experienced by so much of the provider delivery system.

The value of our products relies on having strong doctors, hospitals and community resources. Balancing all of this in a financially viable way is going to be a challenge. ■

Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved.

Further duplication without permission is prohibited. #NB20080

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

CRAINSNEWYORK.COM/PEOPLEMOVES

Lauren Melesio Director, Reprints & Licensing lmelesio@crain.com • (212) 210-0707 For more information contact Lauren Melesio

How can the city safely bounce back from the pandemic?

Reprinted with permission from Crain’s New York Business.. © 2020 Crain Communications Inc. All rights reserved.

Continue doubling down on the public health measures already in place: wearing masks, social distancing and Further duplication without permission is prohibited. #NB20073 hand sanitation. We know what to do. But I think a singular focus on getting the schools open for full learning should top the list of what we are aiming for. We should measure our success against that goal. As an employer, I can tell you that we will not be able to get fully back to work until the thousands of employees with school-age children can get their kids back into school. It’s of course better for all children and particularly critical for poorer children. The city’s economic recovery is going to hinge on how quickly and how well we can get that done so that parents can resume their normal lives too. As a longtime resident of the city who has watched us recover from recession, 9/11 and Hurricane Sandy, I believe in the city’s ability to bounce back against the odds. But this time is going test all of us, and we should be sober about the need for everyone to contribute to the solution.

What challenges face the broader insurance industry?

Balancing the needs and expectations of consumers who need and deserve good health care coverage, expanding access however we can and doing it within an increasingly constrained economic environment. This is especially true with Medicaid, where the state’s budget situation is dire at the same time as people’s needs are increasing. Given that Healthfirst has over 1 million Medicaid members, the potential impact of the state’s budget is especially concerning. For me, our priority has to be enabling as many people as possible to have full access to high-quality care, and it’s going to be a challenge to figure out how to do that in this economic environment. Insurers also need to be mindful of the hurt being experienced by so much of the provider delivery system.

The value of our products relies on having strong doctors, hospitals and community resources. Balancing all of this in a financially viable way is going to be a challenge. ■

Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved.

Further duplication without permission is prohibited. #NB20080

lmelesio@crain.com • (212) 210-0707

16 | CRAIN’S NEW YORK BUSINESS | JUNE 27, 2022

P016_CN_20220627.indd 16

6/23/22 5:33 PM

Subway dilemma: How do we pay for it?

SUBWAY EXPANSION

BUCK ENNIS

COMMUTERS exit a shiny new station on the Second Avenue line

Second Avenue subway steams forward amid funding questions Delays to congestion pricing implementation may throw a wrench into the up to $7B project’s funding formula

T

HERE ARE two topics New Yorkers are always ready to talk about: real estate and the subway. We are bringing them together in this month’s Crain’s Forum as we tackle a big question with implications for the city’s economy and business community.

Several months ago, we asked veteran real estate reporter C. J. Hughes (the author of our ever-popular Who Owns The Block feature) to take a deeper look at the Second Avenue subway extension, particularly its impact on property values, and how those numbers might influence how MTA finances the nearly $7-billion second phase of the massive project.

Apartment values in the path of the phase 1 extension rose by about a third on average, controlling for broader market factors. But those millions of dollars of newly created value did not contribute proportional financial support toward the costs. Instead, taxpayers as a whole, and commuters who use the trains, shouldered the bulk of the cost.

Please turn the page to read C. J.’s story, where he explains the math and caveats that a so-called “value capture” approach also has its flaws.

The Crain’s analysis is the first of its kind, and, as StreetEasy economist Nancy Wu noted, “I’m always a bit wary of comparing different places, but I wasn’t expecting to see such clear results.”

Meantime, our transportation reporter Caroline Spivack provides a comprehensive update (at left) on the MTA’s next steps for the Second Avenue subway and how Albany’s slow walking on congestion pricing may be a setback to the agency’s plans.

We’re eager to hear your thoughts at CrainsNewYork.com/forum.

— Cory Schouten, Editor-in-Chief

BY CAROLINE SPIVACK

A

fter decades of being on the local track, landing billions of dollars in federal funding is finally within reach for a much-anticipated extension of the Second Avenue Subway. The financial injection would mean the Metropolitan Transportation Authority could at last deliver on transit officials’ promise to better serve the residents and businesses of East Harlem.

In January the project gained steam when it entered the engineering phase of the federal grant process and Gov. Kathy Hochul pledged to finish the 1.5-mile subway extension within a decade. Two months later the Biden administration included a $400 million grant toward the effort in its budget. Transit officials are still working to secure property in the project’s path, but they have said they hope to begin construction by year’s end. The ball, albeit incrementally, is rolling.

But as the MTA works to advance the up to $7 billion project, precisely how the agency will fund the expansion remains an open question.

The MTA is on the hook to pay for half of the extension’s price tag and must demonstrate to the Federal Transit Administration that it will have its

share in place to leverage dollars from the feds.

Plunging fare revenue because of Covid-19 has complicated the MTA’s finances, and now a new threat lurks: yet another delay to congestion pricing.

The tolls would apply to motorists driving south of 60th Street in Manhattan and are expected to be a financial lifeline for the MTA. Transit officials estimate congestion pricing would generate $1 billion each year—revenue the agency plans to sell $15 billion in bonds against. It represents the single largest financing component of the MTA’s $51 billion 2020-24 capital plan, which would fund vital infrastructure projects, including signal upgrades, accessibility work, new buses and service expansion.

Originally, the program was to launch in 2021.

Delays pushed that timeline to 2023, and now MTA officials say a deluge of technical questions from the FTA are slowing things down. Hochul, perhaps hesitant to roll out tolls during an election year, has said that the pricing “is not going to happen in the next year under any circumstances” because of FTA-induced delays. She has since stressed that she is committed to the idea, but she has not offered an updat-

HOW THE AGENCY WILL FUND THE EXPANSION REMAINS AN OPEN QUESTION

See SUBWAY on page 22

INSIDE RACHEL FAUSS: “Value capture” is a seductive idea. But real capital dollars are better. PAGE 20

ELLIOTT SCLAR: Tax-increment financing rarely works as planned.

PAGE 20

TOM WRIGHT: Let’s ensure value increases help fund essential infrastructure.

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Too much of a free r A Crain’s analysis found the Second Avenue subway extension has boosted nearby apartment values by a third. Capturing tax proceeds from such gains could help fund the up to $7 billion cost of the next phase

A

s officials prepare to break ground in East Harlem for the next leg of the Second Avenue subway, a big question looms: Is there enough money to pay

for it?

After all, revenues at the Metropolitan Transportation Authority, which is on the hook for more than half of the nearly $7 billion cost, have plummeted during the Covid-19 pandemic as remote work and crime concerns have depressed ridership.

The MTA is forecasting a budget deficit of $1.4 billion in 2025, a date by which construction of the new subway—a continuation of the Upper East Side’s Q line—is supposed to be in full swing.

One promising funding strategy worth a look, often described as “value capture,” has a simple enough premise: Those who benefit the most from newly arrived subway service should pay the most. The biggest winners from subways are often building owners and developers, who calculate the value of their property based in part on ease of transit access.

That premise is borne out by a new Crain’s analysis comparing price patterns in buildings along the new Q corridor with similar ones along the 1 line on the Upper West Side. Values rose by about a third on average, controlling for broader market factors.

But those millions of dollars of newly created value did not contribute proportional financial support toward the cost of service expansion, according to critics of

the existing financing model, which often instead asks taxpayers as a whole, and commuters who use the trains, to shoulder the bulk of the cost.

“We know there is a real relationship between increased transportation access and increased property values. We just need to be more intentional about how we can capture that value,” said Thomas Wright, president of the Regional Plan Association, an advocacy group, which found that every minute saved in drives to New Jersey train stations was worth an extra $3,000 in home value in the Garden State—and that was based on prices at the time of the study, in the early 2000s.

There are two main ways to get landlords to chip in more, according to economists, transit advocates and urban planners.

Under the first model, developers would pay explicitly for the privilege of building in subway-served zones, similar to the approach used by the city’s business-improvement districts, which charge landlords fees for sidewalk cleaning and other services.

That fee model, which has been used to pay for transit projects overseas, might be controversial, however, because it can be hard to calculate which buildings actually benefit from a new subway stop. Are you on the hook if your building is four blocks away?

The second option likely is more appealing: Don’t charge landlords fees. Instead, harvest the extra tax revenue the subway helps bring in (when it boosts property val-

“WE NEED TO BE INTENTIONAL ABOUT HOW WE CAPTURE THAT VALUE”

YORKVILLE PROPERTIES HAVE LARGELY GONE UP IN VALUE, WHILE PROPERTIES ON THE UPPER WEST SIDE DEPRECIATED Change in median closing price from 2014–2016 to 2017–2020.

Year over year median price change Indicates Yorkville properties Indicates Upper West Side properties

SOURCE: Crain’s analysis

500 West End Ave.

220 W. 93rd St.

255 W. 90th St.

3%

305 E. 88th St.

5%

225 W. 83rd St.

7%

345 E. 80th St.

200 E. 89th St.

222 E. 82nd St.

2250 Broadway

225 E. 86th St.

203 E. 89th St.

2373 Broadway

300 W. 72nd St.

-100%

345 E. 81st St.

-50%

20% 19% 17% 14% 12% 12% 9%

225 E. 79th St.

0

309 E. 87th St.

50%

205 W. 89th St.

86%

1760 Second Ave.

100%

203 W. 81st St.

150%

263 West End Ave.

200% 187%

-4% -5% -6% -9% -13% -18% -20% -78%

BUCK ENNIS

BY C. J. HUGHES

ues) to underwrite a project’s cost.

As the value of transit-adjacent properties goes up, so do property taxes. But instead of pouring that newfound money into the typical all-purpose pot, officials would funnel it to one specific place: paying off debt from the subway’s construction, likely by retiring bonds.

That kind of “tax-increment financing,” or TIF, which emerged in California in the 1950s, was used to extend the 7 train to the Hudson Yards development in 2015, and it might be the key to finally finishing the Second Avenue subway, a project first proposed a century ago.

The approach is not always considered a win-win, because TIF essentially siphons away money that officials want to spend on other priorities. The structure also can be risky. A market-crushing pandemic, say, could depress real estate values to the point where the financial upside of the new buildings evaporates.

Before focusing on worst-case scenarios, it would be helpful to quantify just how much value a train can add. There’s not a lot of research about the exact size of property gains, and what does exist does not seem to have been conducted methodically.

Part of the problem is that New York so rarely builds subway lines. And when it does, as in 2017 with the Q in Yorkville, analysts often study only gains in prices in buildings along the line. But it stands to reason that prices in Yorkville, as in other parts of the city, might have improved in the past decade for reasons that have little to do with the subway.

Without having a control group—a

neighborhood with similar characteristics that already had subway service in place— it can be tough to know if Yorkville’s gains were merely the product of a booming real estate market.

So, a new Crain’s analysis took a broader look, comparing price patterns in the Q corridor to those along the 1 line on the Upper West Side—making sure to look at a similar lineup of buildings in both places.

Relying on statistics over anecdote, the never-before-attempted study concludes that value is indeed tightly tied to subway proximity. And when that value goes up, it’s significant: by about a third, on average.

Breaking it down The results seem clear and convincing.

Along the new Q’s path—a 28-block stretch in Yorkville from East 68th to East 96th streets, and from First to Third avenues—values jumped an average of 32% after the subway opened, according to the analysis, which relied on sales data compiled by StreetEasy, a residential real estate listings website. (Office buildings hug subway lines too, but the Crain’s study was interested in costs on the residential side.

Most of what lies along the Q are apartments.)

In some cooperatives and condominiums, the gains were even more striking. At 225 E. 79th St., a prewar cooperative near Second Avenue where units had been trading at a median price of $470,000 in the years leading up to the Q’s debut, the median shot up to nearly $1.4 million. At 345 E. 81st St., a 1960s, 20-story high-rise, the pre-subway median was $508,000, com-

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COMMUTERS WAIT on the train platform for the Q line at Second Avenue and 96th Street.

pared with a post-subway median of $942,500.

All told, median sales prices increased at eight of the 10 apartment buildings in the time frame period analyzed by Crain’s, while values declined at two buildings.

The West Side, which had similar traits but existing subway service, fared much differently. Prices mostly declined there from 2014 to 2020. Median prices in apartment buildings in the 24-block corridor between West 72nd and West 96th streets, between Amsterdam and West End avenues, were down by an average of 8%, according to the data.

Within that group, some decreases were notable. At 220 W. 93rd St., a tawny-brick prewar condominium at Broadway, for instance, the median sale price in the pre-Q period was $2.6 million. After 2017 the median tumbled to almost $2.1 million—a 20% loss. At 255 W. 90th St., a brick-andlimestone prewar cooperative at Broadway, the median tumbled from roughly $2.6 million to about $2.1 million.

Of the 10 buildings along the 1 train corridor, medians declined in six and increased in four—a scenario that might have befallen Yorkville had the Second Avenue subway never been built.

“I’m always a bit wary of comparing different places, but I wasn’t expecting to see such clear results,” StreetEasy economist Nancy Wu said. “This is the most compelling cut we can have of this kind of data.”

In defining the “before” time, Crain’s chose the span from 2014 to 2016 because it represented a time when the subway went from being a project that seemed capable of failing to more of a sure thing.

There had been reasons to be doubtful.

The Second Avenue subway broke ground several times since being proposed in 1929, but none of the earlier efforts were seen through to completion. Even the most recent go-around was clouded by doubt.

Soon after the Q’s 2007 groundbreaking ceremony came the Great Recession, which delayed the project while sapping its budget.

For the “after” period, the analysis went with the period from 2017 to early 2020, in order to exclude the pandemic, which scrambled property values.

It also was important to ensure the selected buildings were reflective of their market—which produced a broad cross-section: co-ops and condos; prewar and postwar units; apartments in boutique buildings and units in amenity-rich high-rises; apartments on busy avenues and units on quiet side streets. But there was a constant: Every building had to have at least some sales activity before the Q came along.

To be fair, not every building in Yorkville, whose previous closest subway was the 6 line on Lexington Avenue, benefited from having a closer train stop. At 1760 Second Ave., a skinny condominium that opened about two decades ago, the median sales price between 2014 and 2020 actually sunk, from $1 million to $952,500.

Conversely, not all the Upper West Side experienced downsides. At 2373 Broadway, a large 1990s building, the median climbed from $963,000 to about $1.2 million.

Some of the selected buildings turned out to have little in the way of sales, for

-20%

220 W. 93RD ST.

-18%

255 W. 90TH ST.

PHOTOS: BUCK ENNIS

stics ce— ains real

187%

WELCOME ARRIVAL: The median residential sale price rose for buildings that gained convenient subway service with the Q extension but leveled off for those with existing service on the Upper West Side. whatever reason. Those addresses got less attention in the overall results.

For people who have watched Yorkville be energized by the Q, the positive correlation between proximity and value makes sense.

“The subway has brought better accessibility but also a better vibe,” said John Patrick Hanley, 33, who bought his apartment on East 81st Street, near First Avenue, in 2015, when tunnels for the Q were still being bored.

For morning commutes back then, Hanley, a consultant, would hike seven blocks to Lexington Avenue and East 77th Street to catch a 6 train to Midtown, a trip that could take 45 minutes. But since 2017, he has been able to grab a Q at Second Avenue and East 83rd Street, cutting his commute in half.

That time savings might have given a boost to his apartment, a two-bedroom coop with a balcony. In 2015 it cost $620,000.

But today it might fetch $835,000, based on an appraisal done in 2020. To wit: In seven years, his apartment is about 35% more valuable.

“It used to be taboo to be all the way east,” said Daniella Leon, an agent with Compass who has worked frequently in Hanley’s building. “Now you are paying a premium to live here.”

Pushing back Although few might begrudge a longtime resident profiting from an apartment sale because of a new subway line, some could object to developers being able to pocket millions of dollars.

To make the system fairer, then, officials should undertake more detailed cost-benefit analyses, to let the public know just how much landlords stand to gain, said Constantine Kontokosta, an associate proSee FUNDING on page 20 JUNE 27, 2022 | CRAIN’S NEW YORK BUSINESS | 19

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SUBWAY EXPANSION The reality, some of them say, is the opposite: Their buildings provide upsides that the city basically gets free of charge.

“I am creating a beautiful building, and I am bringing people to spend money in the area,” said Miki Naftali, chief executive of the Naftali Group, which is putting the finishing touches on 200 E. 83rd St., an 86unit luxury condominium at Third Avenue near the Q line. In 2019, a couple years after the subway opened, Naftali bought the site for $93 million. He will realize a $544 million haul by selling all the condos in the building, according to its offering plan.

“Maybe I should get paid for all of the clients I bring to the dry cleaners and coffee shops and stores,” he said.

FROM PAGE 19

fessor of urban planning at New York University. Once people know the facts, Kontokosta said, they might push to change the way subways are paid for, so those who use them more will essentially shell out more for the privilege.

“Let’s quantify the net benefit of the subway,” he said. “Once we do that, we can come up with a way to pay back into the system to account for that benefit. It would allow us to answer questions like ‘Where does a city find funds to make infrastructure projects possible?’ and ‘Who should bear the burden for them?’ ” But in a city where neighborhood Similar scene? boundaries can be vague, and where peoThe new Q, which will stop at East 106th, East 116th and East 125th ple who don’t live in an area streets and include a jog to the can still benefit from a new line west so it can meet up with there, it might not be easy to Harlem’s Metro-North station, clearly identify the beneficiarumbles through a low-slung ries of subway service. area of tenement houses where With the 7 line extension, new development has been which cost $3.5 billion, the calESTIMATED COST to complete the rare. On paper, it would seem culation was simpler, in a way. next phase of the like a magnet for development.

The once-industrial Hudson Second Avenue But there might be less of a Yards area was largely razed, subway, which stampede than some expect. meaning any of the buildings is planned to New building permits in the there now are probably benefigo through East area are so far limited. And ciaries of the new train. And it’s Harlem sweeping across several blocks a mostly commercial district, in the corridor are large pubso far—which means developers there can’t wipe their hands lic-housing developments inof the projects once they’re cluding Thomas Jefferson, AVERAGE built, as they could with resiWashington Houses and WagINCREASE in ner Houses; their blocks predential buildings. (Whether property values sumably would be off-limits to they pass on the costs to resiafter new parts of construction. dents, though, remains an the Q line opened open question.)

Plus, some developers are alThe Hudson Yards project ready in, meaning there are shows what can go wrong. Delays brought even fewer sites to go around on Second on by the Great Recession postponed tax Avenue, much of which was rezoned in collection—which forced the city to pony 2017 so buildings could rise to 175 feet. up funds to cover bond payments for years.

In August tenants are expected to begin The 7 extension did require taxpayer funds, moving into 1998 Second Ave., a 12-story, and millions of dollars of them, despite 164-unit building at East 103rd Street planners’ rosy predictions. where studio rents start at $2,400 per TIF also can be controversial in that it month. About a third of the apartments are diverts money away from local govern- considered affordable and cost less.

In 2018 Peter Fine, managing member of ments. And that redirection—to the MTA, in this case—can be a double whammy. Bolivar Development, purchased the site, New developments made possible by the which contained some empty lots, for subway usually require extra amounts of nearly $9 million, records show. He broke garbage-collection, policing and firefight- ground in July 2020.

Fine says that the new subway, which ing. But by giving away tax revenue, New York would have less money to pay for the will have an entrance a block from his building, will be an asset for his entire municipal services.

Another issue: Second Avenue in East working-class neighborhood, so any speHarlem, the site of the new Q leg, has zon- cial funding mechanisms would be mising that mandates affordable housing in guided.

“Traditionally, subways and public exchange for tax abatements. So officials couldn’t capture much in the way of tax transportation have been community benrevenue from the properties until the efits,” he said. “It’s pretty hard to establish abatements phase out, which takes years. a one-to-one relationship.”

Mayor Eric Adams, the Real Estate Board Ultimately, the costs to build the new of New York trade group and the MTA all subway—nearly $7 billion, as of this declined to comment on a TIF approach to spring, an increase from earlier projecextend the Q line. But officials have sung tions—can seem daunting. The federal the praises of alternate ways of financing government, by way of last fall’s major intransit before. When Andrew Cuomo was frastructure package, is covering $3.4 bilgovernor, he said he supported TIF for the lion of the cost. The MTA will have to come new East Harlem Q leg. up with rest.

In 2018 Cuomo called for 75% of the exObservers point out that almost all intra assessment from the Second Avenue frastructure projects end up going over subway project to flow to the MTA, while budget, so the local share is likely to be New York City would collect the remaining even steeper than $3.5 billion. And alquarter. though subway ridership has bounced Gov. Kathy Hochul, who also supports back significantly since the depths of the the new East Harlem line, has not publicly pandemic, this spring it was still 60% of spoken about the financing particulars. 2019 levels.

Her office had no comment.

“Value capture is something we are goSome developers say the proposals miss ing to have to do more of,” Wright of the the mark because they suggest that devel- RPA said. “We have to be more intentional opers are getting something for nothing. about it.” ■

KEY STATS

$7B

32%

OP-ED

FUND BETTER TRANSIT WITH REAL CAPITAL DOLLARS, NOT SCHEMES TAX-INCREMENT FINANCING, or TIF, is a type of “value capture”

being touted as a cost-free panacea for financing transit megaprojects in New York City. But TIFs are not free money; they are a diversion of future property taxes from the city’s general fund to dedicated financing for transit improvements.

TIFs, like most “free money” schemes, are a seductive idea. Why shouldn’t the Metropolitan Transportation Authority get back some of the value a new subway line adds to surrounding real estate?

For a start, it is hard to figure out how much value new RACHAEL FAUSS transit adds to an already developed area versus an upzoning for an area with no new transit.

For instance, Penn Station has been a major transit hub for more than a century. Why would refurbishing Penn Station add substantially more value to its environs rather than a gigantic proposed upzoning? Does the math showing this even exist? If it does, why hasn’t the public or the City Council had a chance to check the sums and assumptions?

The biggest example of value capture in New York City is Hudson Yards, which is near Penn Station. There the city allowed real estate developers to make payments in lieu of taxes, or PILOTs, exempting them from much more expensive IF VALUE CAPTURE FAILS, property taxes. The PILOTs pay the interest on bonds TAXPAYERS ARE LEFT the city borrowed to pay for HOLDING THE BAG the extension of the 7 train line.

Hudson Yards’ developers will reap more than $1 billion in tax breaks, according to the Schwartz Center for Economic Policy Analysis, that will no longer go to fund city services including education and sanitation.

The problem with using PILOTs to pay for government bonds is that the taxpayer is forever on the hook for the borrowed money.

When the Great Recession hit, Hudson Yards’ developers could not make the promised payments, and city taxpayers paid $374 million in debt payments, according to the city’s Independent Budget Office.

If value-capture schemes fail, taxpayers are left holding the bag. This is really important because megaprojects are prone to cost overruns. Take the MTA’s East Side Access project, which has ballooned to an unfathomable $11 billion.

If PILOTs are pegged to initial cost estimates that are set too low, someone is going to have to make up the difference—and it won’t be developers.

Rac tran York

OP-ED

TAX-INCREMENT FINANCING RARELY WORKS AS PLANNED VALUE CAPTURE HOLDS out the promise that government

can recover the costs of major infrastructure improvements through taxes on the added value created for nearby real estate holdings. Intuitively appealing as theory, it often is difficult to realize in practice. Taxincrement financing rarely works as planned.

When TIF disappoints, as it often does, failure is explained away as the result of bad timing vis-à-vis the real estate market or unexpected cost overruns in creating the new infrastructure. Such rationales encourage state ELLIOTT SCLAR and local governments to continually resort to the TIF approach despite disappointing outcomes.

Two large mid-Manhattan redevelopment projects—one completed and one still in the planning stages—illustrate the policy conundrum. The first phase of Hudson Yards is now largely completed; the anticipated rebuilding of Penn Station is still in its planning phase. Hudson Yards, termed by its developers as “the largest mixed-use private real estate venture in American history,” is in truth far from an entirely private venture.

It would not exist but for the fact that New York City committed almost $4 billion of its own money to extend infrastructure and public services, mainly subway access, to the otherwise out-of-the-way edge of Manhattan’s central business district. The promise was that new, high tax yields from the surrounding area would cover the costs.

To date the city is still more than $2 billion in arrears. Now the Empire State Development agency, a government organization, is proposing to take titles to eight sites surrounding Penn Station and allow private developers to build greater density than city zoning currently permits, bypassing the

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The MTA has sought ongoing authorization to use value capture to pay for future transit projects, which they won in the state budget.

Why can’t we just fund transit projects with traditional capital grants from the state or the city? Then there would be real honesty about exactly who is paying and who is benefiting. ■

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ly

Rachael Fauss is a senior research analyst at Reinvent Albany, which advocates for transparent and accountable New York government and increased transparency in New York City.

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city’s normal landuse processes. ESD intends to use the new property tax revenues to fund the Penn Station upgrade.

One problem, though: The site PENN STATION of that massive value-capture redevelopment is directly east of Hudson Yards. Moreover, its regional transport access is far superior, and it is closer to the heart of Midtown.

Can both work to self-fund, especially post-Covid? Given the close proximity between the two sites, how much will the second TIF-based development, with its more convenient regional transport access, begin to cannibalize the existing TIF-financed development at Hudson Yards? We await the answer.

That does not mean such developments are undesirable. What it does mean is the real costs and benefits of these public expenditures should be more honestly considered, then weighed against all the other urgent demands on public-sector budgets in this time of great change. ■ Elliott Sclar is co-director of the Center for Sustainable Urban Development at Columbia University and professor emeritus of urban planning at the Columbia Graduate School of Architecture, Planning and Preservation.

EVEN UNDER THE MOST PESSIMISTIC ASSUMPTIONS about growth and how many workers will return to the office, we are seeing high demand for mass transit. New research from the Regional Plan Association projected that transHudson travel—to take one important and vulnerable piece of the regional commutation market—would increase from pre-Covid levels by at least 15% by 2050, and possibly by as much as 32%.

That’s why it is so important that we build the Gateway tunnels, which will double capacity under the Hudson TOM WRIGHT River, and renovate and expand Penn Station. Thankfully, our elected leaders are on the same page and are partnering to deliver these projects.

The federal government—thanks largely to Senate Majority Leader Chuck Schumer—and New Jersey will both contribute to these investments. But New York will still need to contribute its share. To pay for something as grand and complicated as a new Penn Station, we should use a funding mechanism that leverages the increased value of the surrounding properties that will naturally occur once these improvements are made.

The good news is we have an effective model for doing this: by enabling the state to receive a share of the increase in property values that follows major public capital improvements and use that “found” money to pay for the infrastructure.

This funding mechanism, “value capture,” has proved effective for building recent large-scale projects in the city, including the extension of the 7 subway line to Manhattan’s West Side, which generated new development and revenues for the city —and improved the daily commutes for thousands of riders.

The value increases generated by these projects can cover a substantial portion of the cost of the capital investments, such as renovating and expanding Penn Station, by covering a portion of the debt service on the funds borrowed to pay for the capital investment. That’s why it is important to institute a framework that ensures a proper share of the funding is going to support the cost of essential infrastructure. Otherwise New York would need to find other ways—such as raising fares or taxes—to pay for the improvements.

In the case of Penn Station, New York state’s economic development agency is developing a General Project Plan to control development of the neighborhood around Penn Station. Real estate owners will be given permission to build larger buildings than those that exist—it makes sense, after all, to allow greater density around North America’s most heavily-used transit hub.

Before the developers can build anything, property owners will enter into an agreement with the state to make increased payments over time.

Some of that money will go back to the city, to replace the property taxes it previously received, and the remaining funds will be used to pay for the infrastructure improvements.

It is a complicated plan, and many elected leaders have raised legitimate questions that still need to be answered. In particular, the plans for the neighborhood anticipate major improvements to the public realm— including pedestrian spaces and better connections to the surrounding neighborhoods—and both the renovation of Penn Station and an expansion to the south to accommodate the new trains coming under the Hudson River.

Engineering studies have concluded that Penn Station cannot handle all the new trains and passengers that the Gateway tunnels will deliver without building new tracks and platforms. The public needs to be part of the process to decide what the neighborhood will look like. And these plans need to be integrated so there is a single, inspiring, powerful vision for how Penn Station will become a modern, expanded transit hub surrounded by beautiful buildings, amenities and public spaces.

A better Penn Station and true regional connectivity are within our reach after decades of false promises and broken plans. This is our moment to solve the mistakes of the past and bring the Penn District forward as so many other parts of New York have improved in the past generation. ■

BUCK ENNIS

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Tom Wright is CEO of Regional Plan Association, an independent metropolitan research, planning and advocacy organization.

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ed timeline.

That could spell trouble for the Second Avenue Subway.

“Congestion pricing—that’s the big dark cloud that’s hanging over the MTA’s head at the moment,” said Lisa Daglian, the executive director of the Permanent Citizens Advisory Committee to the MTA. “We need to make sure that’s available, otherwise the state is going to need to find another $1 billion dollars to bond to $15 billion, and it’s going to need to do it fast, and nobody wants to have to be in that pickle.”

Tunneling forward Many residents of East Harlem have a long trek to the train. Phase two of the Second Avenue Subway would plug that gap by constructing three subway stations on the Q line at East 106th, East 116th and East 125th streets.

Some 71% of residents in the working-class neighborhood commute to work on public transit—much higher than the citywide average of 56%, according to U.S. Census data.

Given the project’s history of delays, community leaders say there’s plenty of skepticism among residents and business owners that the subway extension is on the fast track but also a recognition that greater access to mass transit could be a boon to not just riders but the local economy.

“There’s a sense that this is costs. But larger still looms a really going to inject a lot of lack of locked-in funds. energy and vibrancy into the Securing funds area,” said Carey King, execuThe project is in the engitive director of Uptown Grand neering phase of the FTA’s Central, formerly known as the New Harlem East MerCapital Investment Grants Number of program—an important milechants Association. “This is parcels MTA one of the most underserved, stone that indicates the govhopes to acquire most transit-dependent popuernment’s support—and the along the route; MTA says it expects to apply lations in the city. It will be it will need 42 for that grant by the end of this greatly transformative.” more during year. Once those federal dolOf course, not everyone is construction on board with the idea. The lars are in place, the MTA said, MTA is in the process of acit can begin utility work to clear the way for construction. quiring dozens of properties Larry Penner, a transit historian who along the route, and if it is unable to negotiate with owners, the agency will worked at the FTA for 31 years, said the move to seize lots, either completely or MTA is likely to secure that grant in in part, through the state’s eminent do- 2023, at the earliest. Critically, however, main law. The project has inspired mul- transit officials have to spell out that tiple lawsuits, including from the Durst they will have their half of the budget in Organization over three properties at place and that they have the capacity to pay for overages. With the somewhat Park Avenue and East 125th Street.

In July 2020 the MTA board made nebulous timeline of congestion pricmoves to permanently buy 15 properties ing, that could get tricky, Penner said. on the route. As recently as May, transit “Sooner or later the MTA is going to officials greenlighted plans to temporar- have to face the music that it has a $15 ily—from three to five years—use 42 billion shortfall in the capital program properties to support excavation work [without congestion pricing],” said Penon the project, according to MTA docu- ner, who fears the agency will put the ments. Other temporary leases, the re- project on the backburner in favor of cords said, will likely be needed for addi- other pressing upgrades the longer it takes for toll money to materialize. “I tional support work.

MTA CEO and Chairman Janno Liber would argue you got to maintain safety has said one big takeaway from the first and [a] state of good repair before sysphase of the Second Avenue Subway is tem expansion,” he said. to move as speedily as possible on propJohn McCarthy, the chief of external erties to avoid delays and mounting relations for the MTA, in a statement

BUYING PROPERTY

15

called congestion pricing “essential” for the funding of the Second Avenue Subway and other major projects, and said the agency is aggressively working through the federal process to implement the plan. Neither the MTA nor the governor has put forward a new timeline for the new tolling, although their comments indicate that 2024 is a possibility. “If it doesn’t happen, at some point we can’t award contracts that are dependent on having capital, the cash, a couple of years later,” Lieber said during a recent public event. “We need that $15 billion.”

In fairness, several other funding sources come into play for the MTA’s capital plan, including city and state dollars, and a variety of federal grants.

But congestion pricing is inarguably a big slice of the pie for what represents a particularly ambitious five-year capital plan, and continued delays could force the MTA to make hard decisions, said Rachael Fauss, a senior research analyst at the watchdog group Reinvent Albany.

“I do think there is a risk that because of congestion pricing delays it will take longer to do all of this,” Fauss said.

“Choices will have to be made. Is the MTA going to build the Second Avenue Subway or is it going to upgrade its signals or buy new buses?” Fauss added.

“All of these things have been promised to the public, and I think where you don’t have full funding either from secured federal grants or congestion pricing, something’s got to give.” ■

IN THE MARKETS

FOHO replaces FOMO as bear market tightens grip Our moment’s new acronym, “Fear of holding on,” joins HODL, TINA, NINJA

“THE BULL MARKET REACHED DEEP INTO THE MIDDLE CLASS.”

with FOHO can take care of themselves. But over its 13-year run the bull market reached deep into the middle class. A study from Pew Research last year showed that Black, Hispanic and Asian investors were more likely to have speculated in crypto than white investors. Bitcoin has lost two-thirds of its value since November.

Crypto crash In 2021, 95 million Americans had accounts at one of the seven largest brokerage firms, according to The Economist, up from 59 million two years before. The new kids on the block came late to the party, like their ancestors in 1928, 1986 and 1999. By 2020 everyone knew someone who couldn’t stop talking about bitcoin.

Donald Trump owes his rise at least in part to the public’s disappointment with the Obama administration for declining to prosecute the business leaders whose reck-

AP PHOTO

P

ayPal welcomed a new chief older brands like PayPal. financial officer last week FOMO’s dance partner in the with a pep talk that sounded past few years was TINA, which rather like a mantra or cre- stood for “there is no alternative.”

With interest rates near do: “The work we are dozero, cash yielded nothing ing together has never and bonds yielded next to been more important,” nothing, making stocks CEO Dan Schulman the only logical investwrote.

The market isn’t so ment. sure. PayPal’s stock price TINA was preceded by has lost 76% of its value in NINJA, a term of subthe past year and Venmo’s prime-lending art for “no owner trades at levels last income, no job or assets.” seen five years ago. The more recently there AARON ELSTEIN isAndHODL, market has vaporized “hold on for about $275 billion worth dear life,” which sums up of Paypal value. the bitcoin fever in four letters and Why did the market miscalculate is a mantra enthusiastic holders so badly? What we have here is a have adopted as they cope with classic case of fear of missing out, or drastic pricing swings.

For the bear market of 2022, our new acronym is FOHO. “We have moved from fear of missing out to fear of holding on,” Peter Tchir, head of macro strategy at AcadeFOMO. The acronym, coined in my Securities, wrote in a report last 2004, describes the impulse that in- week.

FOHO: It rolls off the tongue like flated the value of startups, special-purpose acquisition compa- SoHo. Most SoHo residents afflicted nies, cryptocurrencies and even

lessness led the country into the Great Recession. One imagines the Biden administration will handle things differently.

Officials might take a look at the brewing crisis at Celsius Network.

The crypto lender that offered customers 18% yields froze withdrawals last week, depriving those with FOHO of exercising the power to

take their lumps and move on. In a new statement last Sunday, Celsius said no one would see their money soon and the Hoboken, New Jersey-based firm is silencing itself on Twitter so it can “focus on navigating these unprecedented challenges.”

The acronym for that, of course, is FONTUC. ■

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REAL ESTATE: THE CLOSER

The art of leasing: This broker secures space for the city’s creative sector Jeffrey Rosenblatt sees tremendous demand for real estate in the arts and entertainment sector

J

effrey Rosenblatt honed his dealmaking chops growing up in East New York, Brooklyn, in the 1960s and ’70s.

Rosenblatt’s first real job was as a bike messenger while he was in high school—which is how he learned about buildings and addresses around the city. After college, he began selling insurance.

“I didn’t know what else to do,” he said. “I just wanted to make money.” A friend of his suggested going into commercial real estate.

For the first six months he canvassed landlords to make deals.

“I’d knock on doors and make no money,” he said. “But when I went to a real estate function I noticed that the brokers had nice cars, and I thought there must be something there.”

Today he represents tenants in the arts and entertainment indusNATALIE tries including theaters SACHMECHI and dance companies.

Why do your clients choose you?

I make sure they get a fair deal, but it’s also important to get a fair deal for both sides.

The tenant has to live with the landlord for a long time, and you want them to have a good relationship. You’re not buying a product at the store and walking out. It’s not about killing the landlord over every penny. And in the long run it works better for the tenant as well.

A client is about to walk out the door. What’s your Hail Mary move to keep the deal intact?

You know the scene in A Bronx Tale when the guy at the bar locks the door and says, “Now youse can’t leave”? And therefore, they have to sign the lease. Just kidding.

When people are about to close a deal, they are nervous, like anyone would be. You try to calm them down and make them realize why they came this far in the deal. They didn’t come this far to walk away. Remind them of the positives of the deal and to ignore any emotions they may be feeling, because they made this decision a long time ago.

BUCK ENNIS

What’s your secret sauce for getting clients?

They have to feel like you’re their doctor and have full faith in you, because what they’re about to embark on is one of the biggest expenses of their life.

I’m not a big lunch and dinner guy. I’m a very boring eater. I eat a lot of eggs. I pick up the phone and say, “I’m from East New York.

I got a lot of connections.”

Also, I am told that I’m funny. I had a two-second cameo on Curb Your Enthusiasm that I didn’t get paid for. The show thought I was one of the extras, and I sat down with my son while they were filming on 77th Street and Central Park—the episode with Mister Softee ice cream. I’m behind the ice cream truck. I tell everyone this story.

ROSENBLATT

I once had a guy who had a bad experience making a deal with a landlord. He said, “I’m done with this guy and the deal.” I calmed him down and got him to get over the fact that the landlord was an ass.

What’s the most complicated deal you worked on recently?

Right now I’m working with a dance company that needs column-free space with very high ceilings and a low budget—which is basically impossible to find in Manhattan. However, we found a space where we are discussing the possibility of removing columns and slabs to create the high ceilings.

But the issue is: Who is going to pay for this?

We think it’ll add value to the building.

Whether the landlord agrees is another story.

A year later I’m working for Newmark in the bullpen. The phone rings and the FBI is calling me to ask me how long I’ve been friends with the guy. I said, “Friends?” I told them I made a warehouse deal with him and that was it.

Bottom line is: He probably took the warehouse right away so he could store drugs, bodies, inventory, etc. I never had a deal that easy again.

“YOU TRY TO CALM THEM DOWN AND MAKE THEM REALIZE WHY THEY CAME THIS FAR IN THE DEAL”

How did you celebrate your first big deal?

I was working at a Brooklyn real estate firm, Filmore. I’m in the business for 10 minutes and this guy calls me and tells me he’s interested in an East New York warehouse. I go there and I show it to him, and he says it’s what he wants. He came and signed the lease.

How did you first start working with arts tenants?

When I started canvassing the West Side in Times Square, that brought me to a lot of those kinds of tenants. In the 1980s I represented the arts publication Backstage.

It’s the Crain’s of the theater world. I think getting involved with them and loving arts led me to a lot of those tenants.

A couple of years ago I represented Open Jar Studios, one of the largest rehearsal studio spaces for Broadway shows. They have 51,000 square feet here.

What’s it like brokering deals for arts institutions and nonprofits after a pandemic?

I think landlords are more positive about

having these tenants now. Even as the office market goes down, theater people still need space. The demand for that type of space is tremendous. Broadway and TV will always be here.

I think for landlords it’s a positive because those people do have to be in person. You also feel like you’re helping the industry expand. They’re not the rich hedge-fund guy spending $300 a foot. Some of them are nonprofits, and that makes it more challenging because you have to find the right landlord.

What’s the most difficult part of brokering deals for the arts sector?

The prices and use of the space. Use, of course, because there is a lot of noise: tap dancing, piano-playing, etc. That can interfere with other tenants in the building. Also, traffic into the building can be a lot.

It has to be the right landlord who understands and accepts this business. If you had a Class A building with a guy spending $200 per foot on rent, they don’t want to hear people playing music next door while they’re working. It doesn’t mix. ■ Know a New York City broker who should be featured in Crain’s? Contact Natalie Sachmechi at natalie.sachmechi@ CrainsNewYork.com.

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CLASSIFIEDS CLASSIFIEDS

Advertising Section Advertising Section

Contact Suzanne Janik at 313-446-0455 or email: To place a classified ad,sjanik@crain.com Call 212-210-0189 or Email: classifieds@crainsnewyork.com

POSITIONS AVAILABLE Vice President, Research (WorldQuant, LLC / New York, NY) – Engage in quant research to find stat signals (alphas) which predict movmnts of fincl instrmnts in global mkts; leverage in-depth kwlg of stat & math mthds to tackle practcl quant invstmt research problems. Reqs Bach or higher in Applied Math, Math, Comp Sci, Comp Engineering, or clsly rlatd field & 2 yrs of exp in job offered or 2 yrs of exp as Sr. Quant Researcher, &/or Quant Researcher, &/or Quant Research Intern or in smilar positn(s). Bkgd in educ, traing or exp must incld strong bkgd in stat modelg concpts (incldg time series anlysis, regression, hypothesis testing, & Bayesian inferencing); dmnstratd effcncy in usage of libraries & tools built for data sci & anlysis; knwlg of various machine learng technqs used to gain quant insights into data; adv programmg skills in C++ & Python; excelnt applied math problem solvg capabilties. Less than 5% intl trvl to visit co sites & attend confrnces; no telecommutg benefit, no alt wrk or residence locatn avail.

Send resumes to Sandra.DiCairano@worldquant.com; ref job title in subjct line.

Principal, Global Corporate Credit (Apollo Management Holdings – New York, NY) Mult. pos. avail.

Provide subject-matter analytical & prjct supt for all investment rel. activities. Responsible for both sourcing new & monitoring existing investments across all subsectors of TMT. F/T. Apply w/ resume to dhorton@apollo.com.

Ref. JobID: 6254597.

Platform Engineer (Citadel Enterprise Americas Services LLC – New York, NY); Mult. Pos. Avail.

Collab w/ data-driven team of sftwr dvlprs, quan. Rsrchrs, ntwk engs, system admin, & data scientists to drive tech innovation across org, serving all aspects of electronic trading globally. F/T. Reqs a Bachelor’s degree (or foreign equivalent) in Comp Sci, Comp Eng, Sftwr Eng, or related tech. field & 5 yrs exp w/ comp progrmmng paradigms inclu: stream processing, dataflow prgrmmng, event stream processing, reactive prgrmmng or similar. Stated exp must incl: prgrmmng lngs incl Python, Bash, or similar; Applying sftwr eng princ to the ops problem-space; Working in Linux/Unit environ; Communicating complex tech concepts in busi. Terms to stakeholders/sr mgmt. thru written reports & presentations. Exp may be gained concurrently. Resumes: citadelrecruitment@citadel.com.

JobID: 6173955

Customer Solutions Manager, Americas - Commercial Excellence (Inpeco NA, Inc., New York, NY) Responsible for the development & implementation of consulting strategies, organizational development, multi-national cross collaboration globally w/internal solutions & R&D teams, business operations, service, procurement, & post-market surveillance w/in quality management compliance w/FDA & ISO standards. Apply w/resume to: Marcia Kozera, Inpeco NA, Inc., 50 Broad Street, Suite 1904, New York, NY 10034. No relo. avail.

No 3rd party responses. EOE.

Senior Product Designer (Citadel Enterprise Americas Services LLC – New York, NY); Mult. Pos. Avail.

Conduct research w/ internal users to uncover problems & opportunities.

F/T. Reqs a Bachelor’s degree (or foreign equivalent) in HCI, Interaction Design, Graphics Design or a relat’d field plus 5 years in job offered or in UX or product design. Educat’n, train’g, or exp must include the follow’g: design tools include’g Figma, Sketch, or similar; front-end tech include’g HTML, CSS, Javascript, or similar; data visualizat’n tools, such as Tableau or similar; distributed Comput’g, Natural Language Process’g, Machine Learn’g, Platform Develop, Network’g, Systems Design, or Web Develop techniques.

Resumes: citadelrecruitment@citadel.com.

JobID: 6357242.

The Wildlife Conservation Society, RFP for High Ambition Fund for Nature Climate and Peoples Issued 6-24-2022 Bronx Zoo, 2300 Southern Blvd.

Bronx NY 10460 Solicitation Due 7-15-22 at 5:00 p.m. bids@wcs.org To request the Solicitation Email Allan Howell ahowell@wcs.org

PUBLIC & LEGAL NOTICES Notice of Formation of NORTHCREST GARDENS PRESERVATION, L.P. Cert. of LP filed with Secy. of State of NY (SSNY) on 05/04/22. Office location: NY County. Princ. office of LP: 30 Hudson Yards, 72nd Fl., NY, NY 10001. Latest date on which the LP may dissolve is 12/31/2121. 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. Purpose: Any lawful activity.

PUBLIC & LEGAL NOTICES Notice of Qualification of LITTLE ROOKIES BASEBALL, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 05/17/22. Office location: NY County. LLC formed in Delaware (DE) on 12/21/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with Secy. of State, 401 Federal St., #4, Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Formation of 274 WEST 71ST STREET LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 05/11/22.

Office location: NY County. Princ. office of LLC: 260 W. 71st St., NY, NY 10023. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC at the addr. of its princ. office.

Purpose: To purchase, own and sell real estate in New York.

Notice of Formation of LAME FILMS, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 04/19/22.

Office location: NY County. Princ. office of LLC: 225 Cherry St., Apt. 12A, NY, NY 10002. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Evan Patterson at the princ. office of the LLC. Purpose: Any lawful activity.

Notice of Qualification of BEACON SOFTWARE PARTNERS I B, L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 04/28/22.

Office location: NY County. LP formed in Delaware (DE) on 04/22/22. Princ. office of LP: 233 Wilshire Blvd., Ste. 800, Santa Monica, CA 90401. 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 DE Secy. of State, 401 Federal St., #4, Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Qualification of TRUVVO GOLDEN LP Appl. for Auth. filed with Secy. of State of NY (SSNY) on 06/06/22.

Office location: NY County. LP formed in Delaware (DE) on 04/21/22. NYS fictitious name: TRUVVO GOLDEN L.P. Duration of LP is Perpetual. SSNY designated as agent of LP 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. Name and addr. of each general partner are available from SSNY. DE addr. of LP: c/o CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of LP filed with Jeffrey W. Bullock, DE Secy. of State, John G. Townsend Bldg., 401 Federal St., Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Qualification of BEACON SOFTWARE PARTNERS GP, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 04/28/22.

Office location: NY County. LLC formed in Delaware (DE) on 04/22/22. Princ. office of LLC: 233 Wilshire Blvd., Ste. 800, Santa Monica, CA 90401. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 122072543. DE addr. of LLC: 251 Little Falls Dr., Wilmington, DE 19808.

Cert. of Form. filed with DE Secy. of State, 401 Federal St., #4, Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Qualification of LYTICAL VENTURES CI II QP, LP Appl. for Auth. filed with Secy. of State of NY (SSNY) on 05/11/22.

Office location: NY County. LP formed in Delaware (DE) on 04/26/22. Princ. office of LP: 250 W. 55th St., 37th Fl., NY, NY 10019. NYS fictitious name: LYTICAL VENTURES CI II QP, L.P. Duration of LP is Perpetual.

SSNY designated as agent of LP 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. Name and addr. of each general partner are available from SSNY. DE addr. of LP: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of LP filed with Jeffrey W. Bullock, Secy. of State - State of DE, Div. of Corps., John G. Townsend Bldg., 401 Federal St. Ste. 4, Dover, DE 19901.

Purpose: Any lawful activity.

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24 | CRAIN’S NEW YORK BUSINESS | JUNE 27, 2022

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Advertising Section Advertising Section Advertising Section

CLASSIFIEDS CLASSIFIEDS

Contact Suzanne Janik at 313-446-0455 or email: To place a classified ad,sjanik@crain.com Call 212-210-0189 or Email: classifieds@crainsnewyork.com

PUBLIC & LEGAL NOTICES Notice of Qualification of CAROUSEL (NEW YORK) HOLDINGS LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 04/29/22.

Office location: NY County. LLC formed in Delaware (DE) on 02/05/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 599 Broadway, 8th Fl. East, NY, NY 10012. DE addr. of LLC: 3500 S. Dupont Hwy., Dover, DE 19901.

Cert. of Form. filed with Secy. of State, John G. Townsend Bldg., 401 Federal St., Dover, DE 19901.

Purpose: Any lawful activity

Notice of Formation of SMD INVESTOR GROUP LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 06/08/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Stuart Romanoff, c/o Romanoff Equities, 833 Washington St., 2nd Fl., NY, NY 10014.

Purpose: Any lawful activity

Notice of Qualification of TIGONDEROGA NYC LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 05/20/22.

Office location: NY County. LLC formed in California (CA) on 02/22/22. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to the LLC, 3535 Inland Empire Blvd., Ontario, CA 91764. CA addr. of LLC: 23300 Ventura Blvd., Ste. 200, Woodland Hills, CA 91364. Cert. of Form. filed with Secy. of State, 1500 11th St., Sacramento, CA 95814.

Purpose: Any lawful activity.

Notice of Formation of VANADIS HOLDINGS LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 06/07/22.

Office location: NY County. Princ. office of LLC: 829 Park Ave., Apt. 5D, NY, NY 10021. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543.

Purpose: Any lawful activity.

Notice of Qualification of 180 REMSEN LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 05/05/22.

Office location: NY County. LLC formed in Delaware (DE) on 04/08/22. Princ. office of LLC: 909 Third Ave., #686, NY, NY 10150.

SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to c/o Corporation Service Co. (CSC), 80 State St., Albany, NY 12207-2543. DE addr. of LLC: CSC, 251 Little Falls Dr., Wilmington, DE 19808. Cert. of Form. filed with DE Secy. of State, Div. of Corps., John G. Townsend Bldg., 401 Federal St., Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Formation of 200E79TH9C HOLDING LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 05/09/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to M. Nader Ahari, 200 Park Ave. South, Ste. 1608, NY, NY 10003.

Purpose: Any lawful activity.

Notice of Formation of NORWALK NORTH PRESERVATION, L.P. Cert. of LP filed with Secy. of State of NY (SSNY) on 05/04/22. Office location: NY County. Princ. office of LP: 30 Hudson Yards, 72nd Fl., NY, NY 10001. Latest date on which the LP may dissolve is 12/31/2121. 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. Purpose: Any lawful activity.

Notice of Qualification of THREE PILLARS INSURANCE SERVICES, LLC Appl. for Auth. filed with Secy. of State of NY (SSNY) on 06/07/22.

Office location: NY County. LLC formed in Delaware (DE) on 05/16/22. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to National Registered Agents, Inc., 875 Ave. of the Americas, Ste. 501, NY, NY 10001. DE addr. of LLC: 1209 Orange St., Wilmington, DE 19801. Cert. of Form. filed with Secy. of State of DE, Div. of Corps., 401 Federal St., Ste. 4, Dover, DE 19901.

Purpose: Any lawful activity.

Notice of Formation of ROC TENANT, LLC Arts. of Org. filed with Secy. of State of NY (SSNY) on 05/24/22.

Office location: NY County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Brian J. Beller, Esq., c/o Tarter Krinsky & Drogin LLP, 1350 Broadway, NY, NY 10018.

Purpose: Any lawful activity.

Notice of formation of Amani Luxxe Wax Lounge, LLC, a domestic LLC. Articles of Organization filed with Secretary of State of New York (SSNY) on April 8, 2022 . Office location: Bronx County. SSNY is designated as agent upon whom process against the LLC may be served. SSNY shall mail process to: 856 E 221st Apt 2, Bronx, NY 10467.

Purpose: Any lawful purpose.

2022

NOMINATIONS OPEN! Crain’s New York Business is looking to celebrate influential business professionals under 40 years old.

Submit a nomination to be a part of this list of remarkable honorees.

CrainsNewYork.com/Nominate40 Nomination Deadline is Friday, July 1

JUNE 27, 2022 | CRAIN’S NEW YORK BUSINESS | 25

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DIVERSITY & INCLUSION HONORS

Crain’s honors city business leaders for their D&I commitment

BY JENNIFER SAMUELS

L

eaders from the city’s business community gathered June 16 at Manhattan Manor to celebrate their peers’ achievements at the second annual Crain’s Excellence in Diversity and Inclusion event.

Cheryl McKissack Daniel, president and CEO of McKissack and McKissack, the country’s oldest minority-owned construction firm, was honored with a Lifetime Achievement Award.

She was the obvious choice for the award, said Fred Gabriel, Crain’s publisher and executive editor.

“Her success as a Black female in a white male–dominat-

ed profession would be reason enough,” Gabriel said. “But we are also here to honor her lifelong efforts to lift up other minority- and woman-owned businesses.”

In her acceptance speech, McKissack Daniel said knowledge is power when it comes to moving the needle.

“More than a hashtag, more than a trend, D&I is a matter of survival,” she said. “We must push back to press forward.

If you’re clear what you’re up against, you can be strategic about breaking barriers.”

Winners also were announced for other Excellence in Diversity and Inclusion Awards. Business leaders and firms were chosen from among 30 finalists honored for improving the city’s work culture.

Categories Showing the Way Award: Corporation for Supportive Housing Top D&I Officer Award: Jonathan Simon, Apollo Global Management ● Emerging Leader Award: Francilia Wilkins Rahim, R.F. Wilkins Consultants ● Diversity Champion Award (small firm): Fragomen, Del Rey, Bernsen & Loewy ● Diversity Champion Award (medium firm): The Floating Hospital ● Diversity Champion Award (large firm): Horizon Media ● ●

PHOTOS BY BUCK ENNIS

Horizon Media won the Diversity Champions Award (large firm).

Cheryl McKissack Daniel accepts the Lifetime Achievement Award.

Emerging Leader winner Francilia Wilkins Rahim (second from left) with Adeola Adejobi (third from left), a finalist for the award.

The Corporation for Supportive Housing won the Showing the Way Award.

Lisa Koenig (left), and Carmita Alonso, partners at Fragomen, Del Rey, Bernsen & Loewy.

The firm won the Diversity Champions Award (small firm).

26 | CRAIN’S NEW YORK BUSINESS | June 27, 2022

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GOTHAM GIGS

MANEESH GOYAL BORN Dallas, Texas LIVES Union Square EDUCATION Bachelor’s in comparative culture, Duke University; master’s in public health, Yale University NEW DADS Goyal and his husband just adopted a 1-yearold boy. “We’d been in the process for a long time, and then suddenly we got a phone call,” he said. “It’s been a whirlwind, but it’s amazing.”

TABLE SETTER Goyal loves hosting dinner parties and coming up with the table settings.

He used to run the Instagram account Tabletop by Maneesh dedicated to his designs.

NONPROFIT PLANS Goyal got his master’s in public health because he’d planned on having a long career in the nonprofit world. Although he ultimately took a different road, he does sit on the national board of Planned Parenthood.

A welcoming place for everyone

BUCK ENNIS

GOYAL’S father owned what he says was the first Indian restaurant in Texas.

Manhattan restaurateur makes Indian spot a haven for the LGBTQ community

BY EDDIE SMALL

I

t is fairly easy to find an Indian restaurant almost anywhere in the country these days, but this was not the case in 1975, when Maneesh Goyal’s father opened what he says was the first Indian restaurant in Texas.

The restaurant, called India House, was open for about nine years when Goyal was a child. Although he was too young to actually work there, he still found himself in the eatery very often.

“My playpen would be behind the bar,” he said. “I spent a lot of time there because that is just where we were on the weekends and at nights. I distinctly remember the smell of the space.”

Goyal now runs an Indian restaurant of his own, Sona, which he opened in March 2021 at 36 E. 20th St. In another sign of how much times have changed since 1975, he is extremely upfront and

proud about wanting to make his eatery a welcoming place for everyone, namely members of the LGBTQ community.

This goes for the restaurant’s employees as well as its customers.

Goyal tries to set the tone of openness himself as a gay man who lives his life “pretty out and proud,” and he wants to make sure this accepting atmosphere filters down to the cooks and waitstaff as well.

“There aren’t a lot of Indian restaurants that have historically or traditionally done a drag brunch. If there’s ever an Indian restaurant that makes sense to have drag queens at brunch, it would be Sona,” he said. “Oftentimes, restaurant cultures can be toxic, or they can be chauvinistic, or they can be very hierarchical. I’m trying to indicate that there’s another way.”

Sona was Goyal’s first foray into the restaurant business following a career in marketing, which he described as an industry with a strong

LGBTQ community. This has not been his experience in the food industry so far, where he says he has not encountered many other gay restaurant owners. He is not sure why this is the case but noted it can be intimidating to deal with some of the old-fashioned firms restaurateurs need to work with to secure financing and space.

“Thankfully, we’re in New York City. There’s a general sense that being open-minded in business dealings is the way of the city,” he said. “But I can imagine if you’re in other parts of the country, it is a little off-putting because people are questioning your concept or questioning, if you’re going to do it, what kind of crowd you’re going to bring in.”

It was also intimidating to open a new restaurant during the pandemic. Goyal broke ground on Sona in January 2020, but Covid brought the process to a screeching halt soon after, forcing him to re-

evaluate how to keep the project alive.

The team was ultimately still able to open the restaurant, but its debut was not what Goyal had initially hoped for.

“You’re super ecstatic to open a restaurant, but when we opened, we could only have 30% indoor occupancy. Nobody could sit at the bar,” he said. “It wasn’t the restaurant that we had dreamed about opening in terms of the experience.”

Goyal is happy that he jumped into the hospitality industry with an Indian restaurant, and although it is not the first one in New York, it does pay tribute to his father’s former restaurant in Texas.

“We honor it with a dish on our menu: Our buttered chicken is named India House’s buttered chicken,” he said. “It’s been mighty personal, the experience of being a first-time restaurateur and being a gay restaurateur.” ■

JUNE 27, 2022 | CRAIN’S NEW YORK BUSINESS | 27

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